Engineering

2.4 Management report on the Group Financial position
Investments at the Gelsenkirchen site focused on promising, high-quality electrical steel grades; the third
expansion phase has now begun. With demand for imported coal expected to rise, work commenced on
extending the coal terminal at the port of Rotterdam.
Steel Americas – Steel Americas spent €1,369 million with depreciation of €391 million. The main
investments in Brazil were for the completion of coke battery B, the start-up of the second blast furnace and
the second melt shop line, as well as pollution control measures. Capital expenditures at the US plant
related primarily to the construction of a pickling line and four hot-dip galvanizing lines.
Materials Services – Capital expenditures for property, plant and equipment and intangible assets
amounted to €95 million at Materials Services, while depreciation came to €134 million. Investments were
mainly used to maintain existing operations and expand our steel mill services in America and Europe.
Elevator Technology – The business area spent €93 million on property, plant and equipment and
intangible assets; depreciation was €74 million. In addition to replacement capital expenditure, Elevator
Technology completed the new elevator plant in Madrid, optimized production in the USA and invested in
customer-oriented IT solutions.
Plant Technology – Capital expenditures of €44 million mainly went toward maintaining and expanding
production capacities, as well as the use of new technologies. Depreciation came to €36 million. In the area
of base chemicals, the business area acquired the high-temperature Winkler coal gasification process, which
ideally complements the existing gasification processes. Also in the area of coal gasification, a joint venture
was established with South Korea’s largest energy utility KEPCO. The joint company KEPCO-Uhde Inc. aims
to promote the commercial use of PRENFLO-PSG technology for coal gasification. The investment in a
multipurpose biotechnology plant to produce lactic acid marks our entry into the production of bioplastics. In
addition, Plant Technology expanded its strategically important locations in China and India.
Components Technology – Components Technology spent €361 million on property, plant and equipment
and intangible assets, with depreciation at €285 million. The main investments were made in Europe, China,
the USA, Brazil, and India. For example, camshaft production capacities were increased, and the production
facilities for advanced electromechanical steering systems expanded. Work started on construction of a new
crankshaft plant in the Chinese city of Nanjing: From October 2012 the plant will employ around 650 people
and produce more than 360,000 truck crankshafts per year. In Chengdu, China, and in São Paulo, Brazil, we
expanded our spring and stabilizer manufacturing operations. With the market for wind turbines also
favorable, we continued our investment program for the production of slewing bearings.
Marine Systems – With depreciation at €19 million, spending amounted to €14 million; this was mainly
replacement capital expenditure.
Stainless Global – The discontinued business area Stainless Global invested €266 million in property, plant
and equipment and intangible assets in the reporting year; depreciation amounted to €175 million. The new
integrated stainless mill at the Calvert site in the USA was officially opened on December 10, 2010. In the
Nirosta group, a skin-pass mill was replaced at the Dillenburg cold rolling plant, while VDM expanded bar
production capacities at its Reno/USA facility. Stainless Global continued to implement its fire protection
programs. Beyond this, most capital expenditures were aimed at maintaining existing operations and
upgrading individual equipment items.
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