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SZFG’s investments are connected with those of ILG, where we are running several projects in the
plate mill that enable larger weights per meter to be produced on the basis of thicker slabs and which
improve the qualitative execution of the products.
We will set up a second electric furnace in Peine to raise the production capacity of this location to
around 2 million tons of crude steel per year. A continuous casting plant at PTG has been set up for
the production of slabs, and the performance of the heavy section mill is improving. UMIT is to be
converted so that it can produce special profiles, for forklift trucks among other things. To this end,
considerable investments are being made in logistical processes, with the aim of managing larger
volumes of materials in the future, such as scrap, semi-finished products and finished products. It is
planned for PTG to have implemented the set of measures by 2010 and for SZFG by 2012.
The introduction of “belt strip technology” into industrial practice is a major step forward in promoting
a new type of a rolled steel production. We will construct a pilot plant for continuous strip casting
in Peine where the knowledge gained by SZMF in cooperation with the Clausthal University of Technology
can be applied. In the belt strip technology process, steel that is still liquid is cast directly out of
the ladle horizontally as a thin strip, which is immediately rolled into finished hot-rolled strip. This
gives rise to major advantages: entire production steps are omitted, and new types of steel products,
such as HSD ® steels (High Strength and Ductility), can be produced.
As part of the Trading Division, the SMHD Group concentrated its investments on the expansion of
its Eastern European warehouse facilities. A warehouse operation was set up in Southern Poland in
order to secure further growth. It will go into operation during the first few months of 2008. To ensure
that the Romanian market is better supplied the SMHD Group has acquired a piece of land near
Bucharest where warehousing operations will also start in spring 2008. Additional investment activity
at the German warehouse sites was primarily aimed at expanding our current market position through
modernizing existing facilities.
The Tubes Division focused its investment in 2007 on optimizing manufacturing safety and boosting
product quality. In some cases, this also entails efforts committed to raising sales and developing new
markets.
For instance, the EP Group invested in substitution, rationalization and modernization projects in
2007, with the aim of maintaining and further developing the technical standard of its production
plants, which is outstanding in a peer comparison. However, most of the funds invested this year
relate to the creation of a new spiral tube plant in the USA.
The focus at MRM was on the installation of a new cold plate leveler. This will allow the company to
stabilize and expand its leading position in the global market in the higher grades spectrum.