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2. Strategic Direction of the Group
The Group strategy is geared towards sustaining its independence and profitability, as well as selective
growth, and is designed to deliver a continuous increase in the shareholder value. Consequently, there
are no plans to change the business policy of the Group in the years ahead. In this context, organizational
development, above all in respect of proven effective and profitable structures, enjoys a higher
priority than external growth through acquisitions which, still in most cases, is only realizable at an
extremely high price.
This is the reason why we are focusing on pursuing the Profitability Improvement Program aimed at
improving productivity, product qualification and quality assurance.
Initially, the business activities of the companies in the various divisions will fundamentally concentrate
on established sales markets. In doing so, there may be a shift in the focus at a regional or sectoral
level. The shape that this will take will ultimately depend on short-term responsiveness and the positioning
of the companies. Opportunities on markets not frequented to date are being reviewed and
exploited if there is commercial or technical potential.
Along with the customer proximity so characteristic of a group of our dimensions, the balanced
customer and sector structure is one of our key success factors when compared with other steel
companies.
The use of fundamentally new technological processes and techniques has not been planned for the
period under review here. However, in order to reinforce their market share as manufacturers of market
high-grade rolled steel products and steel tubes, the companies of the Steel and Tubes Divisions
intend to invest in modernizing the various production stages. The primary aim, alongside cutting
costs, is product qualification and quality enhancement, tenets also valid for the Technology Division.
To this extent, the portfolio of the Salzgitter Group in the coming two years will comprise numerous
“new” products that offer a qualitative step forwards and additional application possibilities through
new further developments. In this context, we refer to the section on “Research and Development”.
The Steel Division is concentrating first and foremost on organic development, with the focus on
productivity and product quality. Its secondary focus is on external growth. The beams segment
envisages a successive expansion of its product spectrum to include special profiles, while the plate
mills will progressively focus on higher value grades, as it can be assumed that stable demand at
attractive prices will continue, especially for these products.