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Company News, 2007-11-02, 03:00 PM

ThyssenKrupp Breaks Ground on the Site of its Steel and Stainless Steel Facility

ThyssenKrupp Steel USA, LLC, and ThyssenKrupp Stainless USA, LLC, today broke ground on the site of its $3.7 billion carbon and stainless steel processing facility in Calvert, Alabama. The groundbreaking marks the beginning of construction of the 3,500-acre plant.

Permit applications required to begin construction were approved by State and Federal agencies, allowing ThyssenKrupp to remain on schedule for the commencement of operations in March 2010.

“The global steel industry is undergoing a dynamic consolidation process. We are taking our own individual approach, with a clear forward strategy to further position ourselves as a global player in the steel markets of Europe and North America,” Ekkehard D. Schulz, Chairman of the Executive Board of ThyssenKrupp AG, said. “This is the type of project that represents a very long-term commitment. We will be in Alabama for decades to come, providing good jobs for many generations.”

Karl-Ulrich Koehler, Chairman of the Executive Board of ThyssenKrupp Steel and member of the Executive Board of ThyssenKrupp AG, added, “This new processing facility will allow us to strengthen our position in North America. It will create major advantages in terms of quality, costs, and access to a customer base with a demand greater than current supply.”

“Our investment in Alabama is a central element of the ThyssenKrupp Stainless strategy. The NAFTA stainless steel market has great potential and we are committed to significantly expanding our business in this growth region,” noted Juergen H. Fechter, Chairman of the Executive Board of ThyssenKrupp Stainless and member of the Executive Board of ThyssenKrupp AG.

The facility will include a hot strip mill which will be used primarily to process slabs from ThyssenKrupp’s new steel plant in Brazil. It will also feature cold rolling and hot-dip coating capacities for high-quality end products of flat carbon steel. The facility will have an annual capacity of 4.1 million metric tons of carbon steel end products. In addition, a stainless steel melt shop will be built with an annual capacity of up to one million metric tons of slabs, which will also be processed on the hot strip mill. A cold rolling facility is to be built, which will be designed initially to produce 350,000 tons of cold strip and 125,000 tons of pickled hot strip. In addition, the stainless steel plant will provide ThyssenKrupp Mexinox in San Luis Potosi (Mexico) with its required pre-material (340,000 metric tons of hot band).

In May, ThyssenKrupp announced that it will build a new state-of-the-art carbon and stainless steel processing facility in Alabama. Since that time, the company has opened a project office in Mobile, awarded several site preparation contracts to Alabama-based companies and placed an order for the hot strip mill and cold rolling complex. ThyssenKrupp has also held four Community open house meetings throughout the Mobile area to inform approximately 2,000 residents about the new plant.

Along with construction, the company’s next focus will be on developing a first-rate workforce to help operate the facility – producing 5.1 million metric tons of high-end products each year. ThyssenKrupp will work together with the Alabama Industrial Development Training office (AIDT), to train and recruit workers for the facility. When fully operational, 2,700 permanent jobs will be created, including opportunities in management, engineering, equipment operations, logistics, production, maintenance and administration.

Throughout the construction and operation of the new facility, ThyssenKrupp is committed to meet the most stringent environmental protection standards. The plant will employ the most technologically advanced protection measures. It will use clean-burning natural gas and electricity - not coal - to fire its process heaters and furnaces. The process equipment will also be designed with extensive energy recovery and re-use technologies.

Once operational, the new facility will process carbon and stainless steel for high-value applications by manufacturers in the United States and throughout North America. The plant will serve industries including automotive, construction and household appliances.

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