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Company News, 2001-07-13, 02:00 AM

First privatization project in Macedonia in collaboration with ThyssenKrupp - ThyssenKrupp Metallurgie accepts raw materials to the value of 40 million US dollars yearly

The ThyssenKrupp Metallurgie GmbH, Essen, and a company of ThyssenKrupp Materials AG, was instrumental in arranging the takeover of the Macedonian ferro-nickel metallurgy company Feni Industries through the French materials distributor Société Commerciale de Métaux et Minerais SA., (SCMM-René Aumas), Paris. The privatization project is considered to be the largest in the region currently.

With Feni Industries, seated in Kavadarci, 100 kilometers southeast of Skopje, ThyssenKrupp Metallurgie has an exclusive agreement to accept the complete output with a volume of 40 million US dollars yearly for the next five years. Ferro-nickel is an important raw material for the production of high-grade steel. ThyssenKrupp Metallurgie saw to financing arrangements and provided technical advice in the acquisition process. In addition, for the next five years the company is responsible for further onsite consulting as well as supplying management know-how.

"The name ThyssenKrupp and the services we rendered convinced the government here. SCMM`s long-standing know-how and their professional handling of investment funds in the Balkan States was reason enough to bring both sides together. Feni and SCMM now have the opportunity to make use of the production, distribution as well as plant engineering and supply of our entire group", explains Dr. Todor Vlajcic, managing director at ThyssenKrupp Metallurgie.

The project was initiated as a result of the World Bank`s demand on the Macedonian government to shut down or privatize the country`s ten largest loss-bringers. Among other things, the financial support that has been promised to the country is dependent upon the successful fulfillment of this requirement.

After the current takeover of Feni Industries through SCMM, with approximately 700 employees, it is one of Macedonia`s largest employers and counts among the country`s leading export companies. Previously, operations were shut down for a year. The company has its own mine, smelting plant and two production lines.

The biggest buyer and processor of the company`s output is the high-grade steel producer AST in Italy and Krupp Thyssen Nirosta in Germany. Both belong to ThyssenKrupp. Smaller amounts go onto the open market.

SCMM is the first Western European company to get involved in Macedonia as an investor. Founded in 1921, today the company is a leading operator of mines and supplier of raw materials such as aluminum, zinc, nickel, cobalt and copper.

ThyssenKrupp Metallurgie, which came into existence with the 1999 fusion of Thyssen and Krupp, belongs to the business unit "Special Materials" (sales: 1.1 billion euro/ Sept. 30) of the ThyssenKrupp Materials AG. ThyssenKrupp Metallurgie is a specialist in the distribution of all ferroalloys, metals and minerals.

Claudia Zimmermann
Public Relations
Tel. +49 211 967-39232
Fax +211 967-35483

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