SKW Stahl-Metallurgie Holding AG / Miscellaneous
15.10.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Press release
Cored wire production in Mexico inaugurated Ideal starting point for growing Mexican steel market Further expansion in BRIC nations continues on schedule Business in third quarter confirms strong profitable growth in
2008
Unterneukirchen (Germany), October 15, 2008. The SDAX-listed SKW
Stahl-Metallurgie Holding AG has consistently continued the group's global
expansion in high-growth emerging nations by starting cored wire production
in Mexico. The new plant is located in the harbor town of Manzanillo in the
state of Colima, and will initially supply cored wire for Mexican steel
producers. After starting production in Q3 as scheduled, the new plant of
the SKW Metallurgie Group was formally inaugurated on October 14, 2008. In
business year 2008, as a result of the start-up phase, revenues of approx.
USD 1 million have been forecast; however, in 2009 revenues are already
forecast to total several million USD. The new cored wire facility is
characterized by a sound cost structure and good logistics thanks to its
direct proximity to the harbor. In addition, the new location offers the
opportunity to upscale capacity within the shortest timeframe, and is
therefore ideally positioned to profit from the significant growth in the
Latin American steel industry. SKW Metallurgie has succeeded in setting up
the facility with a very low investment volume in the low single-digit
million euro range.
'Our new plant in Mexico enables SKW Metallurgie to profit from the
fast-growing steel market in Latin America with a manageable investment
amount. We are thus consistently pursuing our expansion strategy
additional steps in other high-growth regions will follow in the near
future,' commented SKW Metallurgie's CEO, Ines Kolmsee.
Further expansion in BRIC nations continues on schedule
By far the most important customer industry for SKW Metallurgie, the steel
sector, continues to grow in terms of quantity according to estimates by
the World Steel association (formerly International Iron and Steel
Institute). Despite regional variation, growth above GDP growth is expected
for 2009. Demand for steel in the BRIC states of Brazil, Russia, India and
China is to continue to grow, from which effect SKW Metallurgie will
benefit. SKW Metallurgie builds its own plant to produce calcium
carbide-based desulfurization mixtures as part of ThyssenKrupp's
construction of a major steel production complex in Brazil. This plant is
scheduled to go live in 2009. In Russia, a cored wire production facility
is in construction. Operating business is scheduled to commence at this
plant close to Moscow around the turn of the year 2008/2009. SKW
Metallurgie has already had a presence in India for hot metal
desulfurization for several years via the joint venture Jamipol. During the
current business year, the foundations were laid in Bhutan for a further
facility. This plant will also be used to supply the Indian cored wire
market. SKW Metallurgie has already had a successful presence in China
since 2007 with two facilities.
Excellent Q3 business confirms confidence in business year
A first estimate of operating business in the just completed third quarter
has confirmed the positive trend of the first six months of 2008. SKW
Metallurgie is correspondingly confident that it will meet its guidance for
the year as a whole that it increased in August. This includes revenues of
330 350 million (previous year: 239.0 million), and operating EBITDA
of between 28 - 30 million (previous year: 21.1 million).
Further information on SKW Metallurgie can be found online at:
www.skw-steel.com
Contact:
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of Investor Relations and Corporate Communications
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634-617594
E-Mail: schunck@skw-steel.com
Internet: www.skw-steel.com
About SKW Stahl-Metallurgie Holding AG
SKW Metallurgie is the global market leader for chemical additives for hot
metal desulfurization, and for cored wire used in secondary metallurgy. The
Groups products enable steel-makers to efficiently manufacture
high-quality steel products. Clients include the world's leading companies
in the steel industry. The SKW Metallurgie Group has more than 50 years of
metallurgical know how, and currently operates in more than 40 countries.
Approximately 44% of revenues are recorded in Europe and approx. 42% in the
NAFTA region (2007; ESM revenues included as of initial consolidation).
What is more, the Group is a leading supplier of Quab specialty chemicals,
which are mainly used in the global production of industrial starch for the
paper industry. SKW Metallurgies operations are structured into the three
business segments 'Cored Wire', 'Powder and Granules', and 'Quab'. The SKW
Metallurgie Group is headquartered in Germany with production facilities in
France, the US (6), Canada, Mexico, South Korea, the Peoples' Republic of
China (2) and India (2 via joint ventures).
Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt
Stock Exchange's Prime Standard since December 1, 2006 with ISIN
DE000SKWM013. SKW Stahl-Metallurgie Holding AG's shares have been included
in the SDAX (German stock exchange index for small caps) since June 23,
2008.
DISCLAIMER
This press release contains statements on future developments that are
based on currently available information and involve risks and
uncertainties that could cause the actual results to differ from these
forward-looking statements. These risks and uncertainties include, for
example, unforeseeable changes to political and economic conditions, in
particular in the steel and paper production industry, the competitive
situation, changes in interest rates and exchange rates, technological
developments and other risks and unexpected circumstances. SKW
Stahl-Metallurgie Holding AG and its Group companies accept no obligation
to update such forward-looking statements.
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of Investor Relations and Corporate Communications
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634-617594
E-Mail: schunck@skw-steel.com
Internet: www.skw-steel.com
DGAP 15.10.2008
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Language: English
Issuer: SKW Stahl-Metallurgie Holding AG
Fabrikstrasse 6
84579 Unterneukirchen
Deutschland
Phone: +49 (0)8634 61 7596
Fax: +49 (0)8634 61 7594
E-mail: info@skw-steel.com
Internet: www.skw-steel.com
ISIN: DE000SKWM013
WKN: SKWM01
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: SKW Stahl-Metallurgie Holding AG: Cored wire production in Mexico inaugurated
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