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A Group Management Report and Management Report on Salzgitter AG I. Business and the Environment 58 59
Growth Strategy
Our growth strategy which accords with the goals we have set ourselves is based on both internal and
external components.
The internal components include:
■ Optimizing quality
■ Raising productivity
■ Rounding off the product program
■ Eliminating bottlenecks
■ Reducing our dependency on external suppliers
The external components comprise:
■ Building up regional market positions on a selective basis
■ Supplementing and extending the product range
■ Closing the gaps in the value chain
■ Making attractive acquisitions in areas associated with steel
With sales totaling more than € 10 billion in the financial year 2007, the Group shows strong growth
compared with the situation at the end of the 90’s. This growth was achieved externally through acquisitions
and internally through investments in plants, equipment and processes.
Successful growth story ...
Consolidated sales in 2007 vs 1998/1999 in € billion: + 278%
2.7 (98/99) 3.3 (99/00) 4.6 4.7 4.8 5.9 7.2 8.4
Growth
strategy
Growth/
acquisition
Integration/
strategy
check
Consolidation/
internal growth
1999 2000 2001 2002 2003 2004 2005 2006
GDP(D)*: +2.0% +3.2% +1.2% +0.0% –0.2% +1.2% +0.9% +2.9% +2.5%
... to be continued
10.2
Internal
and external
growth!
These dimensions mean that we have reached the limits of organic growth. Further relevant growth is
therefore only possible through investments and acquisitions which promote growth, in particular in
the core businesses of steel, tubes and trading, but also in sectors associated with steel and technology,
a prime example being the acquisition of KWAG.
To foster internal growth within the Group there are currently projects with an investment volume of
€ 2.0 billion which are either planned, under way or already completed.
2007
*German Federal
Statistical Office
Business and
the Environment