Company News, 2006-01-17, 09:05 AM
ThyssenKrupp Steel's construction element activities return to profit
In the fiscal year to September 30, 2005, ThyssenKrupp Steel's construction element activities achieved a turnaround. The building construction unit returned a profit in a difficult market following losses in the preceding years. The cold room construction unit also returned a significantly higher profit than the prior year. Both units expect this positive trend to continue in the current fiscal year.
With construction spending in Germany and Western Europe in decline for years, the turnaround is the result of a radical reorganization of the construction elements group at ThyssenKrupp Steel. The building and cold room construction businesses were split and allocated to separate, clearly focused units. Unprofitable locations were closed, leading to improved capacity utilization at the remaining facilities. The job cuts necessary as part of the restructuring were organized along socially compatible lines. In the area of building construction, the company exited the housing construction business, and last fiscal year Hoesch Contecna Systembau GmbH - active in the design and installation of steel roof and wall cladding elements - was sold to Franzen Holding GmbH & Co. KG. The remaining building construction operations managed by ThyssenKrupp Hoesch Bausysteme GmbH generated sales of 161 million euros in fiscal 2004/2005, while cold room construction sales were 173 million euros.
The building construction activities are now focused exclusively on business with steel roof, wall and facade elements. At the 2006 Deubau show from January 17 to 21 in Essen, ThyssenKrupp Hoesch Bausysteme GmbH's exhibits will include construction elements with an anti-graffiti coating which allows spray paint to be wiped off easily using just water. ThyssenKrupp Hoesch Bausysteme is Germany's only supplier of this product.
Other show highlights will include roof and wall sandwich elements which are classified as non-combustible. Using these elements, firewalls can be erected in buildings more quickly and at lower cost than conventional brick or concrete solutions. Also on show will be innovative color coatings which create new visual accents in industrial and commercial construction.
This press release is also available on the internet at: www.thyssenkrupp-steel.de