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R&D expenses
by Division
Steel 47%
Technology 10%
Services 3%
Tubes 40%
5. Research and Development
Direction of R&D Activities
Research and Development (R&D) paves the way for sharpening the Group’s competitive edge
and securing sustained growth. In this respect, we are in the same boat as our customers: only when
our products are actually put to use can they show what they can do. Close contact to the market hallmarks
the R&D guidelines of the company, which is also reflected in the R&D structure. In its role as
central R&D coordinator, our subsidiary Salzgitter Mannesmann Forschung GmbH combines market
requirements and production and process know-how with the latest trends. The company shapes new
developments in association with leading universities, research institutes, start-up companies and
industrial partners in application of its knowledge.
Long-standing development partnerships in the Technology Division enable the exclusive use of
new developments of original equipment manufacturer (OEM) partners. Our preference is towards
practising research cooperations throughout the Group in this way rather than buying in know-how;
accordingly, no expenses for know-how outsourced were incurred in this financial year.
The Technology Division supports proximity to the product by having a Competence Center specialized
in the respective product family. Along with development and contract processing, functions
also include active product management and product support, which is critical for Sales operations. In
this way, technology is able to contribute to projects at an early stage. Centralized departments, which
operate independently from contracts, have been created to coordinate the individual activities,
ensure a uniform presence in the market and address standards issues.
Within the Salzgitter Group, research and development activities are focused on new products,
processes and procedures. Furthermore, we place importance on aspects such as the efficient use of
resources and ecological compatibility. Product development activities are concentrated on the areas
of ultrahigh-strength steel strip, plate, pipelines and large-diameter tubes, as well as precision steel
tubes. We also develop new machines and systems in our Technology Division.
Salzgitter Group companies have a current stock of over 2,200 active commercial patents rights.
R&D Expenses
In 2007, the Salzgitter Group spent € 69 million on R&D activities and on R&D relevant and related
quality management projects, including € 9 million for external customers. The amount was
allocated as follows within the Group: 47% to the Steel Division,
40% to the Tubes Division, 10% to the Technology Division and
3% to the Services Division. Moreover, Salzgitter AG works with
other market participants and research institutes in cooperation
projects where the total budget comes to € 95 million. In the
financial year 2007, Salzgitter AG disclosed first-time capitalized
investment costs of € 11.6 million. Capitalization relates
solely to the Technology Division. Of this amount, € 1.6 million
affected income in the financial year. Value-added R&D
applications came to 2.2% for the Group as a whole.