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Innovations

In the competition for the future, our key factor is knowledge. Our ambitious and innovative researchers and developers work close to customers to find new ways of further optimizing our products and processes. Many people join forces in the Group to improve existing products and services and develop new ones.

Strong innovative capabilities

As a technology-oriented group, ThyssenKrupp once again placed a strong emphasis on research and development work in the reporting period, increasing its total spending on innovation by almost 10% from the previous year to €815 million. €257 million was spent on basic research and development projects – including capitalized development costs; a third of this was for projects outside Germany. Customer-related development projects accounted for €294 million. That represents a 17% increase in R&D spending from the previous year. Expenditure for technical quality assurance was €264 million.

Innovaton spending in million €

		2002/2003		2003/2004		2004/2005		2005/2006		2006/2007
Basic research and development		183		191		186		241		257
Customer-related development*		156		182		266		230		294
Technical quality assurance		290		275		281		272		264
Total		629		648		733		743		815

In 2006/2007, there were more than 3,300 people working at the Group's 85 development centers and departments around the world to improve our products and processes. To exploit existing synergy potential in the Group even more systematically, ThyssenKrupp AG as holding company has intensified cross-segment R&D collaboration by providing funding for projects in key areas. Also of great importance were cooperative projects with third parties. In this way we ensured that our development work was closely aligned to the wishes and requirements of our customers. In addition, cooperation with external scientists enables us to keep up with the very latest developments in science and engineering. That was the reason behind our involvement in the establishment of the Interdisciplinary Centre for Advanced Materials Simulation (ICAMS), a research institute based at the Ruhr University in Bochum.

Public-private partnership in leading-edge research

ICAMS is being set up by ThyssenKrupp in conjunction with the state of North Rhine-Westphalia and six other business and scientific partners. This leading-edge research institute, the only one of its kind in Europe, will mainly work on the development of high-tech materials tailored to customer requirements and the needs of advanced production processes. For this, ICAMS will employ innovative simulation processes which hold the promise of faster, resource-friendly material and product developments with a stronger market focus.

Research and development as the basis for successful innovations

High-level research and development work in all the Group's segments has produced innovative products and processes which will contribute to our market success in the coming years.

Research offensive for innovative automotive solutions

InCar, our wide-ranging research and development offensive for innovations in automotive construction, was unveiled to the public at the 2007 Frankfurt Motor Show (IAA). This cross-segment project brings together the full automotive expertise of the Steel and Technologies segments. InCar is designed as a solutions and ideas pool for body, chassis and powertrain products. Whether customers require parts, assemblies or systems, they can choose from several alternatives to meet their exact needs.

Steel: new lightweighting steel grades developed

The Steel segment has developed two new dual-phase steels with strengths of 800 and 980 Megapascals (MPa) for automotive lightweighting. Unlike conventional advanced ultrahigh-strength steels, the new materials will be available with hot-dip galvanized surfaces to meet strong demand from OEMs. Normally, the high alloy content of advanced ultrahigh-strength steels makes hot-dip galvanizing difficult. We have improved not only the alloying concept for our new steels but also the coating technology used with the result that the new materials can be supplied not only hot-dip galvanized but also galvannealed. With the galvannealed finish, an annealing treatment provides improved weldability.

In collaboration with Japan's second-biggest steel producer JFE Steel Corporation we have developed a new multiphase steel for automotive applications. It has a similar strength to that of the advanced ultrahigh-strength steels CP-W 800 from Steel and NANO 780 from JFE. But with up to 40% higher elongation it possesses significantly improved forming properties. Initial parts have confirmed the advantages of this new steel.

TRIP steels were launched successfully several years ago. A new variant with reduced carbon content has now been developed which is more readily weldable and thus easier to process. The material has already been successfully tested under production conditions. TRIP (Transformation Induced Plasticity) steels are multiphase steels which achieve their ultimate strength during forming into finished parts.

In the area of tailored products, Steel has developed tailored blanks which are suitable for hot stamping. Automotive OEMs are making increasing use of hot stamping technology, in particular for the production of crash-relevant components; it permits the manufacture of extremely strong, thin-walled parts which enhance crash performance and at the same time meet demanding requirements for weight reduction. The use of tailored blanks made up of different steel grades makes it possible for the first time to produce hot-stamped parts which offer not only extremely high strength but also display sufficient elongation in defined areas to absorb crash energy.

Composites and surfaces with high potential

The DOC® Dortmunder OberflächenCentrum, one of the world's leading surface engineering centers, has started development work on an innovative sandwich product for large car body panels. It comprises two 0.2 mm to 0.3 mm thick face sheets made of steel and a 0.5 mm to 1.5 mm core layer of thermoplastic resin. The sandwich sheet has a considerably lower weight per unit area than common body panel sheets. Combined with its high flexural strength, the new material offers good lightweighting potential.

Successful trials have been carried out on the production use of an innovative surface coating developed at the DOC®. The new zinc-magnesium coating is applied by hot-dip coating and offers significantly greater corrosion protection than conventional hot-dip galvanized coatings. The laboratory findings were confirmed in production use. Customer-oriented processing tests were also successful.

Successful ideas for vehicle construction

Engineers from our Metal Forming unit developed a further highlight – an innovative lightweight steel rear axle beam. The new lightweight steel chassis costs around half as much as a benchmark aluminum design from an executive class car, and is only 10% heavier. Tailored blanks and an innovative joining technology which requires no welding flanges contribute to the outstanding properties of this development.

In conjunction with Johnson Controls, auto experts from our Technologies and Steel segments came up with an improved automobile cockpit structure. Their innovative solution is not only 20% lighter than the production benchmark, it also costs less to produce. At the same time it takes up less space, offering additional design possibilities for the front passenger area. One of the key innovations in this cockpit assembly is a so-called T3 profile. Developed by ThyssenKrupp, this profile varies in cross section over its length and is shaped in such a way as to be able to provide all the necessary support despite weighing less and having only half the length of a conventional beam. Steel's T3 profiling technology was awarded third prize in the 2007 ThyssenKrupp Innovation Contest.

Collaboration between ThyssenKrupp Steel and auto industry partner Webasto has resulted in the Multipurpose Tailgate, a concept for a flexible tailgate module with a variety of additional functions including an integrated rack system for bicycles, snowboards or an additional luggage box. The use of bake-hardening steels allows reduced sheet thickness and thus lower weight even in the basic version.

Extended construction elements portfolio

"Hoesch Matrix" is an innovative steel sandwich element developed by our construction element specialists for high-class, representative facades. It meets design standards which were previously the preserve of curtain wall solutions. As well as an attractive design, the new element provides the insulation and fire protection properties required of a facade. All key facade functions are combined in one element, which reduces construction times.

Stainless: strategic innovations

Strategic innovations in applications, materials, processes and products were at the center of Stainless' activities. Computer simulations played an increasingly important role in speeding up development work.

Stainless steel flat products conserve raw materials

With prices for the alloying elements nickel and molybdenum fluctuating sharply and occasionally very high, our efforts focused in particular on offering lower-cost alternatives and supporting our customers in switching to these new materials. One example is steel grade 1.4607, which has a 19% chromium content and excellent corrosion resistance, allowing it to be used as a substitute for the common chromium-nickel steel 1.4301 with no loss of performance. As this new material contains neither nickel nor molybdenum, it is ideal for use in automotive exhaust systems, where it will help reduce NO_x emissions.

Another material concept relates to high-performance steels with a high (24%) chromium content. They are being developed as a substitute for nickel- and chromium-alloyed steels in chemical and general plant construction as well as in energy and environmental engineering in areas requiring excellent corrosion resistance.

In close cooperation with customers, we have developed the first nickel-free stainless steel for use in drinking water pipes. The new material is market-ready and has met with universal acceptance. To meet rising demand we have further optimized the production technology for this material.

The collaborative project "NGV - Next Generation Vehicle" launched in late 2004 by leading stainless steel manufacturers and auto producers has now produced its first results: they demonstrate the potential of stainless steel for use as an auto construction material. The automotive OEMs participating in the project were Audi, BMW, DaimlerChrysler, Fiat, General Motors/Saab and Ford/Volvo, while the stainless steel producers involved were ThyssenKrupp, Outokumpu and ArcelorMittal Stainless. The findings from the NGV project have been compiled in design and processing guidelines. It was shown that the use of stainless steel in vehicle construction can be especially beneficial in crash-relevant structural parts. A cost model was also developed in collaboration with the Boston MIT (Massachusetts Institute of Technology). It allows the use of different production methods and materials to be compared and the optimum stainless steel solution determined.

Progress on high-performance nickel and titanium materials

New nickel alloys for the growing aviation, power generation, oil and gas markets were a key area of our development work on high-performance materials. Certification is expected shortly for our aerospace alloy 718. Development activities focused in particular on optimizing production routes.

In the highly promising area of material developments for efficient 700 degree power plant technology, we collaborated with power utilities and boiler manufacturers on the development of a nickel grade alloyed with boron which allows thinner tube walls compared with the standard material. This variant is now undergoing trials on a pilot plant.

A nickel-tungsten alloy has been developed for use in high-temperature superconductor technology. Superconducting layers can be chemically applied to foils of this alloy in the laboratory. The objective is to develop this material for commercial production.

There were also product improvements and new developments in the area of titanium. Colored large-size sheets were developed further for architectural applications. The focus here was on color stability and the possibility of mass production. The sheets are to be used on the new buildings of the planned ThyssenKrupp Quarter in Essen.

Funded by the German Ministry of Economics and Technology, the Aviation Research Program 2007 to 2012 aims to reduce costs for aircraft turbines. For this, the turbine disk and blades are to be produced as a compact component. That means that the titanium alloy used must satisfy additional demands on material and testing properties. For this reason our engineers are currently determining the forming properties with a view to simulating a suitable forging process.

Technologies: plant construction as a driver of innovation

Plant construction has developed into an important driver of innovation in the Technologies segment. Development work was carried out in many areas to ensure we can continue to offer customized, high-tech solutions in the future. Environmental protection plays a major role in this. Eco-friendliness and efficiency are key characteristics of the new HPPO process developed in collaboration with Degussa to produce propylene oxide, a feedstock for foam production. For its cost-efficiency and high customer value, this new process was rewarded with second prize in the 2007 Group Innovation Contest. Its first industrial-scale use will be for a customer in South Korea. Further international customers are expressing an interest.

Equally important for the environment is the EnviNOx® process, which is already on the market and was significantly enhanced in the last year. It removes environmentally harmful nitrous oxides from the tail gases of chemical plants, including in particular laughing gas (N₂O), which is roughly 30 times more harmful than CO₂. Under the Kyoto Protocol, EnviNOX® is a recognized technology carrying an entitlement to emission allowances. As the EnviNOX® process has established a new standard not only for the elimination of N₂O but also for the reduction of NO_x emissions, it was recently adopted as "Best Available Technique" for official approval procedures in the European Union.

Resource conservation through innovative automotive components

A major area of research by scientists and engineers in the automotive supply operations of the Technologies segment focuses on further reducing weight, consumption and emissions for cars and trucks. To this end we have developed an innovative integrated concept which is being offered to automotive OEMs as an "automotive component kit to reduce CO₂ and NO_x emissions". It includes lightweighting through the use of high-strength materials and alternative manufacturing processes which can achieve weight savings of 10% to 30% for crankshafts, camshafts, differentials and dampers. It also addresses ways of lowering fuel consumption through innovative camshaft concepts and by using new bearing designs to reduce friction in the engine.

Combining our springs and dampers activities generated considerable development synergies. Our module capabilities have been extended: spring-damper modules integrating several components offer lower weight, noise and friction plus longer lifetimes. This gives us a significant lead over competitor products.

New container ships launched

Our newly developed family of container ships for 3,100 to 3,700 standard containers offers shipping companies around the world exceptional price-performance ratios for maritime transportation. In addition to the basic ship, several variants have been developed and the design, engineering and production processes for this type of ship optimized.

High-quality components for wind turbines

Wind turbines are subject to high operating loads which place great demands on the components used – a major challenge for our engineers and technicians. Reliability and wear resistance are key factors. One good example is the use of our large-diameter slewing bearings in the rotors of wind turbines. A newly developed hardening process for these bearings improves the hardening of the bearing raceways at comparatively low cost and thus makes a significant contribution to economic and ecological energy generation.

Elevator: high speed with TurboTrack

TurboTrack, a groundbreaking new passenger transportation product, was launched in the reporting period. In the entry and exit sections of the moving walk, the system moves at a speed that allows passengers to step on and off in comfort. The central section of the TurboTrack accelerates smoothly to 2 m per second. This innovative technology can transport more people at higher speed and without waiting over distances of up to one and a half kilometers. With a continuously moving pallet walkway and three speed zones, the TurboTrack is an attractive product for numerous areas of application.

The first two systems have been put into operation at Toronto International Airport in Canada. TurboTrack also offers significant advantages in public transit systems. It can be used to link neighboring stations, opening up new potential routes and connections. The practical benefits for passengers – shorter distances, more direct connections – significantly enhance the attractiveness of city subway systems. TurboTrack was awarded first prize in the 2007 ThyssenKrupp Innovation Contest.

TWIN: the success story continues

Our TWIN elevators are already in use throughout the world. Now they are to be installed for the first time in a hospital. As part of the expansion of the renowned Royal London Hospital, TWIN systems – with two cabs running independently in one shaft – will be designed as bed elevators. Larger cabs with a payload capacity of up to 2,500 kg and increased passenger capacity will provide fast and comfortable transportation for patients. The use of our elevators frees up valuable space for patient care.

In the Federation Tower in Moscow, all 11 TWIN elevators in Tower B are now operating successfully. Covering a rise of 180 meters, they travel for the first time at speeds of up to 7 meters per second. Another 10 TWIN elevators will be installed in Tower A in 2008.

Maximum elevator travel comfort thanks to laser technology

Modern buildings are getting taller and taller. For the high-performance elevators installed in such buildings, utmost precision in the guide rails is a key quality factor, not least because of the high speeds such elevators move at. Conventional methods of rail alignment are no longer adequate. The Elevator segment has developed a completely new laser alignment system which guarantees accuracy in the micrometer range. It was first used in the 492 meter high Shanghai World Financial Center, where our double-deck elevators – combining two cabs in a joint frame – run at 10 meters per second.

Services: environmental protection and customer benefit as innovation drivers

Innovation and development work in the Services segment was focused on new processes and systems related to the environment. We succeeded in increasing the efficiency of conventional power plants and modernizing steam generators of all kinds. In this, our engineers and technical experts seek new ways of reducing emissions and enhancing efficiency through innovative power plant technologies. For example, a modernization project in Würzburg combines the use of a low-emission fuel with efficient gas and steam turbine technology in a combined heat and power plant. When generating only power, this improves plant efficiency by up to 47%. If heat is also to be produced, the fuel is utilized even more effectively. Overall, primary energy consumption is reduced by at least 10% and CO₂ emissions by 50,000 tons per year.

A further innovation relates to the area of rail technology. We have developed a new slab track system in which a prefabricated concrete frame is placed on drilled piles as a support for the rails. This greatly simplifies the earthwork required both when laying new tracks, e.g. for high-speed trains, and when replacing existing ballasted tracks. Construction and maintenance costs are significantly reduced.

Successful innovation contest

There was once again a considerable response to our 2007 Innovation Contest, with 74 high-quality projects entered by experts from all the Group's segments. The contest aims to further improve the climate for innovation and promote the translation of ideas into promising products and services. Key criteria used to assess the innovations are customer value, customer retention, achievable production cost savings, degree of innovation and market potential.

The contest was launched in 2000 to underline the importance of continuous innovation activities. Over eight years to date it has attracted 353 entries and awarded prizes to 33 projects. Contributions from scientists and engineers outside Germany are growing in importance. A new Innovation Contest will be held in 2008. In recognition of the importance of environment and climate protection, resource conservation, energy efficiency and lower CO₂ emissions, a special innovation prize will be awarded for the first time this year to the best project from these areas.