Engineering

Management report on the Group
2.7 Management report on the Group Expected developments and associated opportunities and risks
Pages 108–119
Pages 50–54
106 | 107
In pursuing our Strategic Way Forward, we will use our leading engineering expertise in the application areas
“Materials”, “Mechanical” and “Plant” and expand our business in the growth markets of the world, for
example Asia. However if the global economy were to weaken, it would take us longer to utilize these
opportunities. The associated risks are addressed in the risk report.
In parallel with our strategic growth we will evolve our organizational structure and further improve our
internal structures and processes. The corporate program impact will increase the Group’s efficiency and
reduce costs. Together with business area-specific programs this will contribute to the sustainable success
of the Group. Detailed information on our corporate strategy including impact is provided in the section
“Strategic Way Forward”.
Operating opportunities of the continuing business areas
Steel Europe – The increasing urbanization and mobility of societies and the modernization of the energy
infrastructure offer a wide range of opportunities for the use of high-quality steel products. Steel Europe’s
portfolio of products and services is already geared to this. In addition, the business area is further
optimizing its cooperation with Steel Americas. With the extensive program of measures “Steel in Transition
– Managing the Triangle” the implementation of the transatlantic steel strategy is being driven forward in
close cooperation with Steel Europe. Key points of contact here are in knowledge transfer and joint raw
materials purchasing. The main aim of the program is to transfer Steel Europe’s successful premium
business model to the North American Market and to build a global supply chain network for slabs in the
Brazil-USA-Europe triangle.
Steel Americas – Improving production and logistics processes, in particular through the “Steel in
Transition” program, and enhancing market penetration are the approaches identified for Steel Americas.
Continuous market monitoring, global key account management and intensive technical customer support
should help us utilize new market and sales opportunities. Our attractive product mix and service portfolio
can open up promising prospects for accessing the North American market. As major US steel users
increasingly set up new plants in the south of the USA, this could expand our customer base.
Materials Services – As producers and fabricators continue to concentrate increasingly on their core
activities, services from Materials Services will gain further in importance. Our advantages lie in our strong
customer focus, specific knowledge of markets and sectors, global connections and wide-ranging project
management expertise.
Elevator Technology – The Elevator Technology business area has been a leading player on the world
market for elevators, escalators, moving walks, passenger boarding bridges and stair and platform lifts for
many years. This market will continue to offer potential for growth and profit in the future. To tap into this we
are further expanding our range of products – for standard installations, customized solutions as well as
service and modernization packages. Key to this is our tight-knit sales and service network with more than
900 locations around the globe.