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Company News, 2006-06-23, 11:01 AM

ThyssenKrupp Services continuing its growth drive

ThyssenKrupp Energostal S.A. (Torún), materials services provider at ThyssenKrupp Services AG (Düsseldorf), is branching out further within the growth market of Poland. At Dabrowa Górnicza, this company is now opening its third Warehousing & Service Center (following Poznań and Warsaw). The emphasis will be on rolled steel, stainless steel, steel pipes & tubes, and nonferrous metals. With a storage area of some 70,000 square meters, the new site is the biggest warehousing & service center in Eastern Europe.

Some 8,000 customers from industry, the craft trades and building/construction will benefit from this complex with its ultramodern facilities.

ThyssenKrupp Energostal's around 650 employees currently generate sales in the region of EUR400 million. The company has 14 branches throughout Poland.

EUR 27 million investment; three corporate segments under one roof

The Dabrowa Górnicza location is being developed in three phases: in the course of the presently inaugurated first and second construction phases, some 50,000 square meters of storage area are being created, representing an investment of EUR14 million on the part of ThyssenKrupp Energostal. Then within the framework of an already mapped-out third phase, further indoor areas of 20,000 square meters are planned. One-third of this area will be available to ThyssenKrupp Energostal for once again expanding its product range and materials processing capacities. For this third stage, the company has already been given the go-ahead for expenditures in the region of EUR13 million.

With as many as three companies of the corporate segments Services, Stainless, and Steel, all accommodated within the complex, synergies are in abundance: a part of the buildings completed in the first and second construction phases will be used by ThyssenKrupp Stainless Poland (Stainless segment) for operating a Stainless Steel Service Center. A further area of buildings from the third construction phase will, on completion, be used by ThyssenKrupp Stal Serwis Polska (Steel segment) for a service center dedicated to slitting flat sheet steel.

In all, the project will give rise to 400 new jobs at Dabrowa Górnicza, 150 of these at ThyssenKrupp Energostal. Says Joachim Limberg, Executive Board member at ThyssenKrupp Services heading the Materials Services unit: "The new Warehousing & Service Center is part of our growth thrust strategy for Eastern Europe and a mainstay of future business in Poland. Since the start of 2001, ThyssenKrupp Energostal has graduated into our most significant Eastern European operation. During this period sales have quadrupled, thus underscoring this trend. On a worldwide scale, the company is also high ranking.

Services: in the medium term, a workforce of 1,500 and sales of one billion euros in Eastern Europe

For some time now, ThyssenKrupp Services has been pursuing a highly successful expansion strategy within Eastern Europe. In fact, this Services segment of ThyssenKrupp is already successfully positioned with companies in Hungary, Poland, the Czech Republic, Russia, Bulgaria, and Ukraine.

The business outlook is bright throughout: sales of EUR650 million budgeted for the present fiscal year 2005/06 are likely to grow beyond the billion euro mark with probably around 1,500 employees over the coming years. Joint ventures are presently being negotiated in several other countries. Potential target markets are the Baltic nations, Romania, Croatia, and Slovenia.

Limberg: "We will continue to flexibly take into account the dynamic markets of Eastern Europe and further expand our network in the interest of our customers. Our product range, warehousing and services lineup are continuously being upgraded. Our goal is quite clear: materials availability, logistics and services of the highest quality!" Here in the Polish city of Dabrowa Górnicza the seeds have been sown to sprout further growth.

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