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Groupwide Investment Volume 1996/1997 – 2012
1996/1997– 2001 0.7 0.2 0.9
2002 – 2006 0.7 0.4 1.1
2007– 2012 1.7 0.3 2.0
0 0.5 1.0 1.5 2.0
in € billion Steel Division Other Divisions
In tandem with the phase of consolidation and realignment of the divisions, we have also extensively
reviewed the options for external growth over the course of the year. Of the various options which
were of interest we have successfully concluded three projects.
The first of these was the acquisition of Vallorec’s precision steel tubes segment.
This transaction comprises the wholly owned subsidiary Vallourec Précision Etirage S.A.S. (VPE), St. Florentin
(France), which is specialized in the production of cold-drawn precision steel tubes. VPE generated
sales of around € 220 million in the course of the financial year. Two thirds of this volume was
attributable to the automotive industry, one third to other special industrial applications. The five production
plants of VPE in France have a workforce of around 1,200 employees.
The VPE plants supplement our existing activities in the precision tubes segment, which are operated
by the German Salzgitter subsidiary Mannesmann Präzisrohr (MHP) and the Dutch subsidiary
Mannesmann Robur (ROB). The combined companies are set to assume a leading role in the European
market. The integration of VPE into Salzgitter’s existing precision tube activities enhances the future
potential of the companies thus combined. Whereas the customer base of MHP in Germany is strong,
VPE holds an excellent market position in France. Moreover, the transaction will unleash considerable
industrial and R&D-related synergies.
Moreover, in order to ensure the supply of input materials for the precision tubes companies, we took
over a mill for hot-rolled tubes in Zeithain (Saxony) from Vallourec. This has enabled companies MHP,
VPE and ROB to attain independence for the most part in the supply of the seamless tubes needed as
primary material for production. The plant which is located in Saxony has 423 employees (as per
December 31, 2007) and a medium-term annual production target of more than 200 ktons. Zeithain
was already supplying the three companies with semi-finished goods.
The second undertaking, which is closely connected with the first, concerns a precision tubes mill
in Mexico:
In October 2007, Salzgitter AG acquired the Mexican Bresmex Tuberia S.A. de C.V. The company
produces welded and drawn precision tubes for the automotive industry with a workforce of
98 employees. The focus is on tubes for shock absorbers. The annual capacity of the mill, which is
equipped with leading edge facilities, is currently around 12 ktons. Since its acquisition, the company,
located in Guadalajara in the federal state of Jalisco, has been trading under the name of Mannesmann
Precisión Mexico S.A. de C.V. and is part of the Salzgitter Mannesmann Precision Group.