Salzgitter AG acquires Hydroform unit from SCHMOLZ + BICKENBACH

Expansion of own activities in this innovative technology field

Salzgitter AG is to acquire the hydroforming activities of the SCHMOLZ + BICKENBACH Group. Salzgitter’s own business in this innovative field of technology has recently been growing sharply, and this move marks a substantial expansion.

In the current financial year, Salzgitter Hydroforming GmbH and SCHMOLZ + BICKENBACH will together produce over 4.5 million components. Among other purposes, these parts are used in automobile manufacturing, where they make a decisive difference in reducing chassis and body weight. Hydroformed exhaust and heating system components also help to cut emissions.

"The acquisition of these ultramodern production facilities, together with a highly motivated work-force, will strengthen our business activities in this field. It also underscores the considerable contribution that our steel products make to the automotive industry in reducing fuel consumption and emissions,” explained Salzgitter AG Executive Board member Hans Fischer.

Benedikt Niemeyer, Chairman of the Management Board of SCHMOLZ + BICKENBACH KG and CEO of SCHMOLZ + BICKENBACH AG, was delighted: "SCHMOLZ + BICKENBACH is very happy to have found a responsible, growth-oriented partner for its hydroforming business in the form of the Salzgitter Group.”

Approval has already been granted by the anti-trust authorities, clearing the way for the business activities to transfer to Salzgitter effective January 1, 2008.

Both sides have agreed to keep the purchase price for the transaction confidential.

Salzgitter Hydroforming GmbH
Salzgitter Hydroforming harnesses some of the most modern equipment in Europe to manufacture mass-produced components. Customers include the principal European carmakers and their suppliers. The two companies together employ a workforce of more than 200 in Crimmitschau (Saxony) and Brumby (Saxony-Anhalt).

The hydroforming process uses high internal pressure to transform tubes into lightweight, precision components for the automotive industry.

SCHMOLZ + BICKENBACH
The SCHMOLZ + BICKENBACH Group is the world’s largest manufacturer, processor and distributor of stainless steel long products. With a workforce of over 11,000, the Group generates sales of around EUR 4 billion. SCHMOLZ + BICKENBACH is the Number 1 manufacturer of stainless long steels and tool steels in the global market.

Salzgitter AG
With around EUR 10 billion in external sales, an output of over 7 million tons of crude steel and a workforce of around 24,000, Salzgitter AG is one of Europe's leading steel and technology corporations. In the field of high-quality sections and flat rolled products, Salzgitter AG ranks among the top 5 in Europe. In medium line pipes and precision tubes the company holds the number one position in Europe, and is the world market leader in large-diameter pipes.