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Stainless in figures
Stainless continued all activities * before taxes and minority interest
			2003/2004		2004/2005
Order intake	million €		5,068		5,573
Sales	million €		4,990		5,568
EBITDA	million €		586		499
Income*	million €		385		282
Employees (September 30)			11,811		12,201

ThyssenKrupp Stainless and the segment's operating companies regard themselves as reliable partners to their customers, particularly global manufacturers in the automotive, appliance and electronics industries. To serve these customers efficiently with high-quality products and service close to their production sites, we have our own production plants in Germany, Italy, China and Mexico. There and in other important consumption centers throughout the world we are systematically expanding our global market presence through local sales bases, service centers and distribution warehouses.

Europe: Focus on technology, costs and service

Our highly efficient plants in Germany and Italy offer state-of-the-art equipment and outstanding service capabilities, allowing them to supply customers in Europe with high-quality products and customized services. To meet these demands even better in the future, the segment is investing in Europe to improve product quality, extend the service offering and expand the distribution and service center network.

In the past fiscal year, a €124 million investment program was approved to strengthen our stainless activities at the Terni plant in Italy. Central to this program is a new 20-high cold rolling stand, which is scheduled to start operation in 2006 and will significantly increase the share of high-grade cold-rolled products.

In Germany and Italy we are also focusing on improving our service center structure, increasing our processing capacities and expanding our range of services. This will allow us to respond to the continually changing requirements of the market with even greater flexibility. A new paint line being installed in the new finishing center of ThyssenKrupp Acciai Speciali Terni will make the Stainless segment the only producer in Europe capable of meeting increasing demand for cold-rolled products with colored or transparent paint coatings (anti-fingerprint).

Processing capacities have also been expanded in Germany. EBOR Edelstahl in Sachsenheim near Stuttgart, a subsidiary of ThyssenKrupp Nirosta, has significantly increased its capacities for ground and brushed stainless steel finishes. EBOR is a major supplier to the appliance industry among others.

The fast-growing stainless market in Eastern Europe is becoming increasingly important. We are developing this market through an existing service center in Hungary and a new service center currently being built in Poland.

High-end products from Mexico for the NAFTA market

The Stainless segment is also strongly positioned in North America. Our plant in San Luis Potosi in Mexico serves the fast-growing Mexican market as well as a large number of customers in the USA and Canada. As a pure reroller, it obtains most of its hot-rolled coil from the European mills of the Stainless group. The range mainly includes high value-added products for end customers. A bright annealing line for high-end cold-rolled products is currently being installed and will start operation in the second half of fiscal 2005/2006.

Good position in China

China's high growth rates have made it the world's biggest national market for flat-rolled stainless products. Consumption there has increased six-fold in the past ten years. This upward trend is likely to continue in the coming years, albeit at a slower pace. However, domestic production capacities are growing even faster than consumption, so China will likely become a net exporter shortly. Given the fact that the main competitors with their large capacities are mainly focused on the less demanding volume end of the market, our subsidiary Shanghai Krupp Stainless is increasingly concentrating on the upper end of the market – mainly end-customer business – with high surface quality and delivery performance requirements. There are also good opportunities for exports of high-finish stainless steels to the USA.

Following the startup of two cold rolling mills and an anneal/pickle line for cold-rolled strip, capacity will be ramped up to around 250,000 tons per year by the end of 2005. The new anneal/pickle line for hot-rolled strip, due to start up in mid-2006, will enable us to buy part of our starting material as unpickled hot-rolled strip from local producers, allowing us to react more flexibly to market and price changes.

Our sales network in Asia has been widened by a new stainless distribution center that has just begun operation. Thanks to its location in Guangzhou, China, it has direct access to the high-consumption regions of South China and will act as a bridgehead to Southeast Asia.

Nickel-base alloys and titanium at the tip of the materials pyramid

When even stainless steels hit their technical limits, our high-performance nickel-base alloys and titanium materials can provide the answer. They represent the tip of the materials pyramid in the ThyssenKrupp Group and are used whenever extreme material properties are required. As well as conventional equipment, the Stainless segment uses the latest melting furnaces, capable of producing high-alloy stainless steels, nickel alloys, superalloys and titanium. These materials can withstand extreme mechanical and thermal loads and are used in demanding applications in the aerospace, energy, oil and gas sectors as well as for special applications in electrical and electronic equipment.