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5. The Divisions
As the management holding company, Salzgitter AG coordinates the five divisions Steel, Tubes,
Trading, Services and Technology.
The following section is dedicated to outlining the performance of these divisions in 2007 on
the basis of the financial statements prepared in accordance with International Financial Reporting
Standards (IFRS).
Steel Division
The companies assigned to the Steel Division are listed in the section on “Group Structure and Operations”.
In 2007, the healthy employment levels in the most important steel processing sectors once again
drove the use of steel in Germany. Similar to the customer markets of other European countries, the
German market showed a gratifying receptiveness to the products of our Steel Division, particularly in
the first half-year. Nonetheless, over the course of the year, imports from countries outside the EU,
especially China, expanded so strongly that supply outstripped demand, especially in the flat steel
product segment. In spite of the sustained high consumption, stockholding traders’ inventories
reached critical levels at times due to an oversupply of the market. To contribute to averting greater
destabilization of selling prices in the flat steel sector SZFG curbed production volumes in the fourth
quarter.
Moreover, the European manufacturers prepared the filing of an anti-dumping law suit against the
background of unfair trade practices by the Chinese steel industry influenced by government policy.
The order intake of the Steel Division attained a satisfactory 5,259 ktons following on from
a record figure of 5,728 ktons in 2006 (–469 ktons, –8%). The volume of orders concluded by
SZFG declined by –280 ktons. ILG recorded excellent order intake, albeit with order intake somewhat
lower than the previous year’s figure (–85 ktons), whereas the orders placed with PTG and HSP
rose. At the end of the financial year, the order book fell against the previous year (1,269 ktons) to
982 ktons (–23%).
Order Intake in the Steel Division
0 1,000 2,000 3,000 4,000 5,000 6,000
in kt FY 2007 FY 2006
The production of crude steel, which stood at 5,663 ktons, fell marginally short of the previous year’s
figure (5,692 ktons). Owing to the relining of Blast Furnace B, the LD mill of SZFG did not attain the
production of 2006 (–83 ktons), while the electrical steel plant of PTG raised the volume of crude steel
as against 2006 (+54 ktons).
5,259
5,728