TK Stainless

Stainless + Alloys
Our materials are shaping the future
---
Annual Report
07
08
TK Stainless

Stainless + Alloys
Our materials are shaping the future
---
The research laboratories of ThyssenKrupp Stainless
work intensely to develop new and improved materials.
Our material innovations provide less expensive
alternatives to previous materials, allow our customers
to move forward and expand their business, and open
up new uses for our materials. Stainless steel and
high-performance alloys from the Stainless group offer
solutions to the questions of tomorrow and are actively
shaping our future life worlds.

Contents
03 --- ThyssenKrupp Stainless in figures (leaflet)
07 --- Letter from the Executive Board Chairman
08 --- Executive Board
10 --- ThyssenKrupp Stainless portrait
01
Strategic focus
13 --- Strategy
03
Employees
25 --- Measures to build the
ThyssenKrupp Stainless USA location
25 --- Health & safety
27 --- Securing young talent
27 --- Training
05
Research
and development
37 --- New reduced-nickel and
nickel-free materials
38 --- VOD unit at
ThyssenKrupp Acciai Speciali Terni
38 --- New high-performance nickel
and titanium alloys
07
Operating companies/
Further information
49 --- Operating companies
56 --- ThyssenKrupp Group shareholdings
58 --- Supervisory Board
02
04
ThyssenKrupp sTainless aG Contents
Market environment/
Business performance
17 --- Market environment
19 --- Business performance
Capital expenditures
31 --- Stainless flat products
34 --- High-performance materials
06
Sustainability/
Environmental protection
43 --- Sustainability
45 --- Environmental protection
Magazine
Materials for tomorrow
60 --- Working at the limits
70 --- Searching for the material of the future
80 --- Scientists with an eye for the practical
88 --- The path to High-Performance materials
92 --- Weight reduction with titanium
5

6
Jürgen Fechter
Executive Board Chairman of
ThyssenKrupp Stainless AG and
Executive Board Member of ThyssenKrupp AG
---

To the business partners,
friends and employees of our company
ThyssenKrupp sTainless aG Letter from the Executive Board Chairman Brief
The stainless steel industry has had to contend with an extremely difficult market environment in recent
months. Increasing energy prices, high and volatile raw material prices and cheap imports of stainless flat
products to Europe from Asia in particular have created uncertainty among our customers, leading to a
weaker market and falling revenues. The global financial crisis beginning in the late summer also impacted
the real economy, resulting in a further collapse in orders. These unfavorable conditions significantly
affected the performance of the Stainless group in the past fiscal year and continue to overshadow our
business. In view of the global financial crisis and its serious effects on the real economy, ThyssenKrupp
Stainless AG will increase its efforts to respond to unforeseeable consequences with adequate steps.
Within the Stainless group we are working hard to improve the unsatisfactory situation. This includes
pressing ahead with the measures launched in connection with the strategic development of the Stainless
segment. Thanks to large capital investment ThyssenKrupp Acciai Speciali Terni with its integrated mill
in Terni will improve its competitive position significantly. The construction of the Stainless plant in Alabama
is proceeding well on schedule. Despite exceeding the investment budget, we continue to believe that
ThyssenKrupp Stainless USA will play a major role on the North American stainless market and make
its contribution to the earnings of the Stainless group. With ThyssenKrupp Nirosta we have stepped up
our customer focus drive. The expansion of our service center operations, like at EBOR Edelstahl in
Sachsenheim, allows us to increase value added and respond more effectively to customer needs. In the
high-performance alloys area we have significantly improved our market position with the startups of the
open-die forge at ThyssenKrupp VDM in Unna and the electron beam furnace at ThyssenKrupp Titanium
in Essen.
A central element in securing and strengthening our position on the market is the development of new
and improved materials. Continuously expanding our research activities in this area and widening the range
of uses of our materials is a major priority within the ThyssenKrupp Group and at ThyssenKrupp Stainless
in particular. The importance of this is demonstrated by the establishment of a new Executive Board
directorate for strategic product development at ThyssenKrupp Nirosta, which will also coordinate the
development of stainless steel grades and applications within the Stainless group.
This year’s ThyssenKrupp Stainless annual report contains a series of outstanding examples of new and
improved products from the research laboratories of ThyssenKrupp Stainless. These provide less expensive
alternatives to previous materials, allow our customers to move forward and expand their business, and
open up new uses for our materials.
The ThyssenKrupp Stainless 2007/08 annual report gives you an insight into our global business and
strategic investments. By reading it you will learn more about the world of our materials.
Yours
JürGen FechTer
Executive Board Chairman of ThyssenKrupp Stainless AG
7

8
Executive Board

03 01
02
01 --- Jürgen H. Fechter
Member of the Executive Board of ThyssenKrupp AG
Chairman of the Executive Board of ThyssenKrupp Stainless AG
Jürgen Fechter, born 1962 in Namibia, began his career in
1981 as an assistant auditor at Price Waterhouse. He qualified
as a Chartered Accountant in South Africa in 1986. In 1989
Mr. Fechter joined Middelburg Steel & Alloys Stainless (Pty)
Ltd in Middelburg/South Africa, initially as controller for R&D
projects and later as sales controller. When Columbus Stainless
(Pty) Ltd. was founded in 1991, he was appointed to the board
of the operating company with responsibility for controlling
and accounting. In 1994 he was promoted to the board of
the Columbus holding company. At the beginning of 1997,
Mr. Fechter moved to the Stainless unit of the ThyssenKrupp
Group, initially as President (sole managing director) of the
Stainless subsidiary ThyssenKrupp Mexinox S.A. de C.V. in
San Luis Potosí, and from October 1998 as member of the
Executive Board of ThyssenKrupp Stainless AG. At the
beginning of 2000 he was appointed Chairman of the Executive
Board of ThyssenKrupp Nirosta GmbH with responsibility
for sales and purchasing. In 2002 Mr. Fechter also assumed
responsibility for worldwide sales within the Stainless group
and a year later was appointed Vice Chairman of the Executive
Board of ThyssenKrupp Stainless GmbH. Since April 1, 2004
Jürgen H. Fechter has been Chairman of the Executive Board
of ThyssenKrupp Stainless AG and Member of the Executive
Board of ThyssenKrupp Steel AG. In connection with the
restructuring of the steel operations of ThyssenKrupp AG
and the dissolution of the intermediate holding company
ThyssenKrupp Steel AG he was appointed Member of the
Executive Board of ThyssenKrupp AG on October 1, 2005.
In addition, Jürgen H. Fechter is a member of the board of
Stahlinstitut VDEh and a member of the board of directors
of the International Stainless Steel Forum (ISSF).
02 --- Dr. Michael Rademacher
Vice Chairman of the Executive Board of
ThyssenKrupp Stainless AG
ThyssenKrupp sTainless aG Executive Board
After studying economics at the Ruhr University in Bochum,
Dr. Michael Rademacher (born 1955) began his career working
as a management consultant, mainly in the field of financial
and investment controlling. From 1985 to 1988 he worked as
a research assistant in the faculty of industrial manufacturing
at the Ruhr University, Bochum. In 1988 he joined Thyssen
Industrie AG, Essen, performing various duties within the
ThyssenKrupp Group until 2002, ultimately as head of the
Corporate Controlling department at ThyssenKrupp AG.
Effective May 01, 2002 he was appointed to the Executive Board
of ThyssenKrupp Stainless GmbH. On April 1, 2005 he moved
to the Executive Board of ThyssenKrupp Automotive AG before
being appointed Vice Chairman of the Executive Board of
ThyssenKrupp Stainless AG on October 1, 2006. Dr. Rademacher
is head of the Schmalenbach Gesellschaft’s “Integrated
Corporate Planning” task force. Since May 2006 he has been a
guest lecturer at Ruhr University Bochum.
03 --- Klaus-Peter Hennig
Chief Human Resources Officer/Labor Director
of ThyssenKrupp Stainless AG,
Member of the Executive Board and Labor Director of
ThyssenKrupp Nirosta GmbH
Klaus-Peter Hennig (born 1948) trained as an industrial clerk
at the firm of Gildemeister in Bielefeld, Germany before going
on to study business administration and social economy at the
University of Bielefeld. From 1977 to 1990 Klaus-Peter Hennig
worked in various capacities for the North Rhine Westphalia
district of the German Trades Union Federation (DGB). From
1990 to 1994 he was head of department in the Düsseldorf office
of the executive committee of IG Metall (metalworkers’ union).
In 1994 he was appointed member of the Executive Board and
labor director of ThyssenKrupp Nirosta GmbH. Since October 01,
2002 Klaus-Peter Hennig has additionally been a member of the
Executive Board of ThyssenKrupp Stainless AG.
9

10
ThyssenKrupp Stainless in brief
ThyssenKrupp Stainless is an independent segment of the ThyssenKrupp Group. The segment holding
company ThyssenKrupp Stainless AG brings together all ThyssenKrupp’s activities in stainless steel
flat-rolled products and high-performance materials, i.e. nickel alloys and titanium. It carries out
management and coordination functions for the globally active business units allocated to it.
The business units allocated to ThyssenKrupp Stainless AG in the area of stainless steel are:
ThyssenKrupp Nirosta in Germany, ThyssenKrupp Acciai Speciali Terni in Italy, ThyssenKrupp Mexinox in
Mexico and the joint venture Shanghai Krupp Stainless in China. Since 2007 ThyssenKrupp Stainless USA
has been building a new stainless plant in the US state of Alabama. ThyssenKrupp Stainless International
is responsible for all stainless distribution and service activities of the Stainless group where these are
not directly covered by the production companies. Operations in the area of high-performance materials
include ThyssenKrupp VDM, a producer of nickel materials, and ThyssenKrupp Titanium – part of the
ThyssenKrupp Acciai Speciali Terni group – a leading European producer of titanium and titanium alloys.
The Stainless group is world market leader in stainless flat-rolled products and holds leading positions
on the markets for high-performance materials. The materials produced in the Stainless group meet the
most exacting requirements in terms of properties, quality and precision. The operating companies in the
Stainless group see themselves as dependable partners to their global customers in, for example, the
automotive, appliance, electronics and aerospace industries. To serve these customers efficiently with
high-quality products and services close to their production sites, ThyssenKrupp Stainless already has
production sites, service centers and sales bases worldwide and will continue to expand this network.
Research and development activities focus on finding solutions to specific customer problems through
improved material properties, attractive and resistant surfaces and process innovations with the aim of
continuously improving quality, minimizing the use of resources, and reducing the environmental impact
of production processes. Constant optimizations help ThyssenKrupp Stainless continuously improve the
efficiency of its production and the high quality of its products.
KEY INDICATORS THYSSENKRUPP STAINLESS AG
2006/2007 2007/2008
Order intake million € 7,684 7,460
Sales million € 8,748 7,420
EBITDA million € 1,034 363
EBIT million € 871 214
EBT million € 777 126
Capital expenditures million € 327 387
ROCE in % 22,75 5,79
ThyssenKrupp Value Added (TKVA) million € 507 – 119
Crude steel production 1,000 t 2,522 2,493
Stainless cold-rolled production 1,000 t 1,688 1,664
Employees (September 30) 12,182 12,212
Note: The above key indicators relate to ThyssenKrupp Stainless as a segment of
the ThyssenKrupp Group.

01
Strategic focus
sTainless sTraTeGy
One pillar is the expansion of our position on the NAFTA market
and associated construction of the plant in Alabama.
---

01
Strategic focus
ThyssenKrupp Stainless AG is focused on the goal of further
cementing and expanding its market position. To achieve this,
both the stainless steel business and the high-performance
alloy business are being expanded.

Strategic focus
The goal of ThyssenKrupp Stainless AG is to further cement and expand
its excellent market position by constantly developing new applications for
its materials. Our growth strategy is based on three main pillars:
In the stainless steel business the emphasis is on securing competitiveness
in our core European market.
Our position as a global stainless producer is to be strengthened by further
penetration of the attractive NAFTA market.
In the area of high-performance alloys, we intend to expand our business
in nickel alloys and titanium.
ThyssenKrupp sTainless aG Strategic focus
To achieve these growth targets, ThyssenKrupp Stainless is modernizing and expanding its existing
operations and building a new integrated stainless production facility in the USA. In addition to
systematically further developing our performance enhancement programs, we are also investing
heavily in optimizing and expanding capacity at our operating companies. At the group’s European
companies alone, investment projects with a total volume of several hundred million euros are
currently under way.
At ThyssenKrupp Acciai Speciali Terni, the aim is to concentrate production on the Terni location
after the closure of the Turin plant. The relocation of production to Terni is already well advanced. With
the recommissioning of relocated and modernized equipment from Turin, the ramp-up of new production
lines and the further expansion of the finishing department, the Terni plant will be developed into a
world-class integrated stainless mill. At the other stainless companies of the group, too, significant
investment has been made in modernizing the plants and in particular expanding processing capacity.
In the area of high-performance alloys, the expansion of remelting capacity and the commissioning of
an in-house forging line at the Unna plant of ThyssenKrupp VDM has further optimized the production
structure and improved operating performance. This has given us access to demanding and attractive
segments such as aviation and plant construction. A state-of-the-art electron beam furnace has gone
into operation at the Essen location of ThyssenKrupp Titanium.
A central element of the segment’s strategy is the construction of a new stainless mill as part of a
joint project with ThyssenKrupp Steel, work on which began in autumn 2007. The Stainless segment’s
direct entry in the USA will permit the sustained expansion of its business in North America. The group
is already active on the North American stainless market, with a market share of around 12 percent
in the USA alone. The market is primarily served by our Mexican subsidiary ThyssenKrupp Mexinox,
backed by imports from our mills in Germany, Italy and China. Marketing is carried out via our Chicagobased
sales company, which is already well established.
ThyssenKrupp Stainless aims to gain increased recognition as a supplier of a wide range of highquality
materials, from stainless steel to nickel alloys to titanium, and as a service provider for all
aspects of these materials through its global network of production and sales companies and service
centers. That means supplying customers with solutions for diverse applications, offering product
support services - for example through various forms of processing - and being an effective local
13

14
partner. The aim of our service offensive is to improve our value added and thus increase our sales
and earnings potential. To achieve this and cement our leading market position, all companies of the
segment are expanding their processing capacities, building further service centers and optimizing
their operating performance.
THYSSENKRUPP STAINLESS BUSINESS UNITS AND SUBSIDIARIES:
ThyssenKrupp Nirosta
(Germany)
ThyssenKrupp
Nirosta
Präzisionsband
(D)
—
EBOR
Edelstahl
(D)
—
smb
Chromstahl
(D)
—
ThyssenKrupp
Nirosta North
America
(USA)
ThyssenKrupp Acciai Speciali Terni
(Italy)
Terninox
(I)
—
Tubificio
di Terni
(I)
—
ThyssenKrupp
Titanium
(I/D)
—
Società delle
Fucine
(I)
—
ThyssenKrupp
AST USA
(USA)
ThyssenKrupp Mexinox
(Mexico)
ThyssenKrupp
Trading
(MEX)
—
ThyssenKrupp
Mexinox USA
(USA)
ThyssenKrupp Stainless USA
(USA)
ThyssenKrupp Stainless International
(Germany)
ThyssenKrupp
Silco Inox
(HU)
—
ThyssenKrupp
Stainless UK
(GB)
—
ThyssenKrupp
Stainless
France
(F)
—
ThyssenKrupp
Stainless DVP
(E)
—
ThyssenKrupp
Eurinox
(TR)
—
ThyssenKrupp
Stainless
Guangzhou
(CN)
—
ThyssenKrupp
Stainless
Polska
(PL)
—
ThyssenKrupp
Stainless
Benelux
(NL)
Shanghai Krupp Stainless
(PR China)
ThyssenKrupp VDM
(Germany)
ThyssenKrupp
VDM USA
(USA)

02
Market environment/
Business performance
QualiTy
The high demands of our customers
are the benchmark for our work.
---

02
Market environment/
Business performance
The market environment for stainless steel flat products has
become more difficult lately due to various factors. This has
impacted our business performance. ThyssenKrupp Stainless is
therefore focused on working towards volume and structural
improvements.

Market environment
ThyssenKrupp sTainless aG Market environment
At the beginning of the last year the worldwide demand for rust-, acid- and heat-
resistant stainless steel flat products was stable. Finally the world economy as well
as the price fluctuation in the commodity markets damped down demand and
subsequently orders. According to preliminary estimates the global consumption
slightly decreased in 2008.
On the European market, demand was initially stable in 2008. After orders and deliveries dropped to
a very low level in the prior year due to massive imports from Asia, high inventories at stock-holding
distributors and sharp fluctuations in the price of the alloying element nickel, the situation improved
perceptibly in the 4th calendar quarter 2007, only to deteriorate again significantly from the middle
of the 2nd calendar quarter 2008. This was mainly due to the recovery in demand from distributors,
gradually rebuilding the inventories they had run down due to the declining nickel price. European
producers succeeded in raising base prices again through to the 2nd calendar quarter 2008. After that,
however, the traditionally weak summer months and the clouding of the economic outlook resulted in
a renewed sharp decline in base prices, and order intake decreased significantly.
On average, third-country imports were lower than a year earlier, mainly due to a decrease in
imports from Asia, particularly China, Taiwan and Korea. However, imports from these countries
started to rise again continuously from the beginning of the 2nd quarter 2008, gaining momentum
later as a result of the increasing underutilization of Chinese production capacities.
MARKET FORECAST COLD-ROLLED STAINLESS FLAT PRODUCTS in 1,000 t
2005 2006 2007 2008* 2009*
Western Europe 2,929 3,618 3,170 3,147 3,075
Eastern Europe 227 303 319 341 349
NAFTA 1,664 1,918 1,606 1,393 1,366
China 3,747 4,500 5,033 4,753 5,240
Rest of Asia 3,816 4,044 4,033 4,319 4,257
Rest of world 1,046 1,203 1,239 1,329 1,369
Total 13,430 15,586 15,399 15,282 15,655
Source: CRU December 2008, *estimate
17

18
Alloy prices again significantly affected customer behavior. Having reached an all-time high in
mid-2007, the nickel price declined sharply and by mid-March 2008 had stabilized at a relatively low
level of 27,000 – 33,000 US dollars per ton, which initially had a positive impact on demand. A renewed
downward trend from early May caused stainless customers to once again adopt a wait-and-see
approach. By contrast, chromium prices climbed substantially due to the scarcity of global supply.
Whereas for chromium-nickel steels (austenitics) this increase was offset by the lower nickel price, the
rising price of both chromium and steel scrap had a noticeable impact on chromium steels (ferritics).
The alloy surcharge for these grades increased by more than 100% in the reporting year.
In the NAFTA region, the general weakness of the economy subdued demand for stainless steel,
leading to a decline in volumes and base prices. In China and other Asian markets, demand for stainless
steel products remained high, but high inventories and overcapacities at producers prevented an
improvement in prices, which were down from the prior year.
In the market for nickel alloys, the initial rise in alloy prices and the strength of the euro against
the US dollar negatively impacted the competitiveness of European producers. In addition, competitors
with production facilities in the US dollar zone increasingly forced their way onto the European
markets. Demand in the European chemicals industry remained stable to slightly positive in line with
expectations. In the oil and gas industry, the previously lively level of inquiries dropped sharply and
planned projects were slow to get off the ground.
Increasing capacities at titanium producers and a temporary decline in demand for titanium
products, especially in the aerospace sector, led to a marked change in the situation on the market.
The supply problems of aircraft manufacturers Boeing and Airbus and the oil price situation also had
a negative impact. By contrast, the market for industrial applications is relatively stable.
Stainless steel scrap is fed back
into the production process.
EBOR Edelstahl in Sachsenheim delivers products
tailored to customer requirements.

Business performance
In fiscal 2007/2008 the volume of orders received by the Stainless segment
increased by around a quarter to 2.3 million tons. The prior-year period was
marked by a pronounced reluctance to buy on the part of distributors and
users. This was caused by extremely high imports from Asia, high inventory
levels at distributors and service centers, and drastic fluctuations in the
nickel price. Due to low base and nickel prices, the value of orders received
decreased slightly. The value of new orders for nickel alloys also fell as a
result of the low nickel price. The value of orders for titanium mill products
likewise decreased.
ThyssenKrupp sTainless aG Business performance
At 2.3 million tons, total Stainless deliveries in the reporting period were 3% up from the prior year.
Shipments of nickel alloys were down slightly, while deliveries of titanium increased. Sales decreased
by 15% to €7.4 billion, mainly as a result of lower selling prices.
Following the record earnings of the prior year, the Stainless segment saw its profits slump by
€651 million to €126 million. The main reasons for this were significantly lower average base prices and
partial underutilization of capacity in the first and fourth fiscal quarters. Thanks to the slight market
recovery at the end of 2007, earnings improved initially but this improvement came to a halt at the end
of the 3rd fiscal quarter, mainly as a result of weaker demand from distributors. This led to falling base
prices and corresponding production cutbacks through to the end of the fiscal year.
Due to the dramatic price falls for nickel and alloyed scrap and the above-mentioned price
developments on the selling markets, earnings were down significantly from the previous year.
The drop in earnings was mitigated by successful inventory management and income from the fair
value measurement of derivatives used to hedge against commodity price risks from outstanding
purchasing transactions and inventories. In addition, the continuing strength of the euro weakened the
competitiveness of our exports to the US dollar region. Higher electricity costs, particularly in Italy and
Germany, also weighed on earnings.
ThyssenKrupp Nirosta
The ThyssenKrupp Nirosta business unit benefited in Europe from improved demand from distributors
and still relatively stable sales to end customers in the reporting period. The generally positive trend
was reflected in a strong increase in the volume of orders received. However, at €3.2 billion the sales of
the business unit were down from the prior year due to lower prices. The significant decline in earnings
was mainly caused by a much weaker price level.
19

20
ForGinG operaTions
ThyssenKrupp Acciai Speciali Terni
At ThyssenKrupp Acciai Speciali Terni, too, the weakening of demand for stainless steel products over
the year, above all from service centers and distributors, was reflected in order intake. This demand
weakness was caused among other things by high volumes of imports coming into Europe, which
impacted the Italian stainless market in particular. The sales of the Italian business unit slipped to
€2.7 billion due to lower shipments and decreased transaction prices. In addition, there were
production losses at the Turin plant after the accident in December 2007. ThyssenKrupp Acciai Speciali
Terni posted a loss for 2007/2008. The drastic decline in earnings was mainly due to a weaker Italian
stainless steel market. Earnings were additionally impacted by the extra costs associated with the
decision by the EU Commission not to extend energy compensation payments. In addition, costs were
incurred by the commenced relocation of production from Turin to Terni and from the fire in Turin in
December 2007. The forging operations exceeded their prior-year earnings thanks to a stable market
environment. At ThyssenKrupp Titanium the volume of new orders increased strongly. Shipments were
also higher, while sales fell slightly.
ThyssenKrupp Mexinox
ThyssenKrupp Mexinox held its own in a difficult market environment in the NAFTA region. Orders were
up slightly from the prior year in terms of volume but decreased in value terms due to lower prices.
Sales fell to €591 million. The substantial drop in profits was due to the weak state of the US market.
However, the stable situation on the Mexican market weakened these negative effects.
Shanghai Krupp Stainless
At Shanghai Krupp Stainless order volumes were down from the prior year. Sales were lower at €284
million, and profits also fell significantly. The deterioration was due to a continuing weak and difficult
market environment in China - caused by increasing overcapacities.
ThyssenKrupp Stainless International
The ThyssenKrupp Stainless International business unit recorded a fall in the volume and value of
new orders due to the difficult market environment and low transaction prices. Sales decreased to
€1.2 billion. Following a profit in the prior year, the business unit made a loss. The significant drop in
earnings resulted from the generally weak state of the international stainless steel markets, which led
to a decrease in margins and shipments and from inventory depreciation due to strong commodity
prices.
ThyssenKrupp VDM
In the nickel alloy business of ThyssenKrupp VDM order intake and sales were lower than a year earlier.
Wire production was successfully relocated from Bärenstein to Werdohl. With the construction of the
new forge, which began operation in May 2008, ThyssenKrupp VDM widened its range of products in
particular for the aerospace industry. The business unit was unable to maintain its prior-year profit
level. On the European markets, increased exports by US suppliers - favored by the weak US dollar
- resulted in high price pressure. In addition, the strong euro meant that prices for exports to the US
dollar region were no longer competitive.

innovaTive maTerials
New applications, innovative products
and process technologies are
being developed to optimize
our market position
Risk management
ThyssenKrupp sTainless aG Business performance
In addition to the usual cyclical risks, the Stainless segment faces risks associated with the way the
markets respond to existing or anticipated overcapacities at stainless producers in Asia. The supply
and demand situation in China in particular represents a risk.
Numerous measures are in place to counter these risks. We have extended our value chain towards
the higher-margin end-customer business, further intensified customer relationships, expanded
our custom services, and improved our quality and delivery performance. We are also countering
increasing competitive pressure by developing new applications for stainless steels and nickel alloys,
by developing innovative products made from these materials, and by using modern, cost-saving
process technologies.
In the construction of the stainless steelmaking and processing plant in Alabama, USA, the costs
are being strictly controlled to minimize the risk of further budget overruns. The implementation of this
project will also help increase our market penetration in the USA.
The risks associated with the availability and prices of raw materials, particularly nickel, chromium
and alloyed scrap, are minimized by corresponding contracts and hedging mechanisms. Stainless
is preparing for the risk of substitution of stainless flat-rolled products in response to high alloying
element prices by developing alternative material concepts. In addition, the continuous development
and introduction of technical and organizational measures ensures that potential sources of risks in the
production process are eliminated or reduced.
In view of the risk of fire and natural phenomena such as storms, hail and flooding, the segment
significantly expanded its risk management activities in the area of property insurance. In cooperation
with the insurance companies, joint, binding risk provision standards were drawn up, compliance with
which is reviewed in regular audits. We developed measures to minimize the risk of fire in cooperation
with the insurance companies and external experts. The implementation of these measures is under
way.
On November 20, 2007, the EU Commission ruled that a law adopted by the Republic of Italy in 2005
granting ThyssenKrupp Acciai Speciali Terni among other companies certain benefits in the purchase
of electricity was inadmissible state aid. Together with the Republic of Italy we filed a complaint against
this decision with the court of first instance. If the Commission’s ruling is upheld, this could have a
material effect on the consolidated financial statements of ThyssenKrupp.
Outlook
In the market for stainless flat products, inventories at distributors and service centers have been
decreasing for some months. However, our customers’ inventories of finished products have been
increasing due to the weaker level of consumption. As prices for our raw materials fall, i.e. scrap and
the main alloying metals such as chromium, nickel and molybdenum, and the fear of a recession grows
as a result of the global financial crisis, the level of new orders is significantly lower than expected. The
weak order intake will result in production cutbacks at most of our operations. In addition, falling base
prices due to the weak market will weigh heavily on earnings.
The world economy will be in a phase of recession in 2009. The financial crisis will have a negative
effect on consumption and capital spending. How far the rescue programs introduced by the
governments of many countries will stimulate the economy cannot be judged at the present time.
21

22
Efficiency improvement programs
In fiscal year 2007/08 all companies of the Stainless segment worked on implementing and further
developing their improvement programs.
The Stainless segment significantly increased the number of improvement projects carried out
under the TK best program. In the course of the fiscal year over 160 new projects were launched,
with the result that the project landscape now comprises over 650 projects. The largest share of new
projects was registered under the “Operations & Quality” and “Sales & Service” initiatives. The TK best
program makes significant contributions to earnings at ThyssenKrupp Stainless.
The “Sales & Service” initiative launched in the second half of fiscal 2006/07 was successfully
implemented at all business units of the Stainless segment thanks to the activities of two experts.
The experts supported the companies with operating project work on site and tailored workshops
and training sessions in Germany and abroad. As a result, the companies had the benefit of practical
methodology and know-how transfer.
The “Value Driven Mobilization” program (VDM) initiated by ThyssenKrupp VDM verifiably met its
targets in the course of the fiscal year - a year ahead of schedule.
The introduction of the Six Sigma project management tool in the ThyssenKrupp Stainless
segment was accelerated, initially in the German-speaking region. ThyssenKrupp Stainless currently
has altogether 31 certified employees. These activities strengthen the employees’ problem-identifying
and problem-solving competences and enable them to conduct strict project management.
ThyssenKrupp Mexinox
maintained its market position.
For Shanghai Krupp Stainless the market environment
in China remains difficult.

03
Employees
services
In our service centers our products are processed
according to customer requirements.
---
23

03
Employees
The number of employees in the Stainless group fell slightly
year-on-year. As the new production location in the US state of
Alabama is expanded, the workforce will gradually grow again.
In summer 2008 the first employees from the USA came to
Germany for training.

Employees
ThyssenKrupp sTainless aG Employees
At September 30, 2008 ThyssenKrupp Stainless AG had 12,212 employees worldwide,
30 more than at the end of the 2006/07 fiscal year. The workforce will grow further as
work on the new plant in Alabama progresses.
Measures to build the ThyssenKrupp Stainless USA location
Numerous measures are under way to recruit and train new employees for the ThyssenKrupp Stainless
USA production location in Calvert (Alabama). The local agency AIDT has been called in to help with
the recruitment of blue collar workers. Altogether more than 15,000 applications have been received so
far. Up to September 30, 2008 over 650 candidates had been invited to take part in training. The first
six training classes have completed their final examinations.
After the theory, the core team (approx. 120 employees) will spend several months undergoing
practical training. These courses are being held at ThyssenKrupp Stainless locations in Germany,
Italy and Mexico. The employees take part in shift work on site. They have the support of a mentor
who passes on his experience and expertise to promote the transfer of best practices. Since mid-
July 2008 groups of US maintenance employees have been traveling to Germany to complete four
months of training at ThyssenKrupp Nirosta’s cold-rolling mills in Krefeld and Düsseldorf-Benrath
and Dillenburg.
Health and safety
Occupational safety is a key priority in the Stainless segment. In the past fiscal year numerous new
projects and measures were implemented to support the “zero accidents” strategy.
SAFE-Award
The SAFE Award (Safety At-Work For Employees) was launched in the Stainless segment in fiscal
year 2007/08. The first award was presented at the end of the contest. The aim of the contest is to
acknowledge the contributions made by all ThyssenKrupp Stainless employees to improve occupational
safety and to promote the development of a sustained safety culture. Groups of employees had the
opportunity to nominate completed or ongoing projects. An independent panel of judges and health
and safety experts from the business units selected the ten best projects, for which prizes were
awarded. In addition, the overall winners - a team from ThyssenKrupp VDM in Altena - also received a
trophy. At the start of the new calendar year the second safety contest will be launched.
25

26
“Zero accidenTs”
Under this Group initiative,
numerous managers took part
in a series of seminars on
health and safety
EMPLOYEES BY COMPANY
2006/2007 2007/2008
ThyssenKrupp Stainless AG 62 59
ThyssenKrupp Nirosta 4,665 4,682
ThyssenKrupp Acciai Speciali Terni 3,354 3,180
ThyssenKrupp Mexinox
ThyssenKrupp Stainless USA
Shanghai Krupp Stainless 546 522
ThyssenKrupp Stainless International 436 453
ThyssenKrupp VDM 1,772 1,801
ThyssenKrupp Stainless 12,182 12,212
“Health and safety for executives” seminars
Under the Group initiative “zero accidents” aimed at further improving health and safety in the
ThyssenKrupp Group, managers from all levels of the segments’ German operations have and will
continue over the next few years to take part in a series of seminars on health and safety. To ensure that
the specific requirements of the Stainless segment are taken sufficiently into account, managers must
complete defined health and safety training modules developed in association with the employers’
insurance associations. So far more than 100 executives from ThyssenKrupp Stainless have taken part
in the one-and-a-half day basic training seminar.
Further initiatives in the business units
At Shanghai Krupp Stainless promoting communication about safety at work is a key element of
the health and safety improvement process. Following the example of ThyssenKrupp Mexinox, an
electronic information board displaying current “Health, Safety and the Environment” activities and
an update on the number of accident-free days has been installed. In addition, a poster campaign
has been launched in the production plant to illustrate safe work conduct, with a different subject
being featured each month. The system is based on the so-called “SOAR Card program”, a process
in which each employee can use cards to register and report unsafe conduct they have observed at
work. Recommended changes are entered on the cards which are then collected in specially provided
mailboxes and evaluated. So far around 10,000 SOAR cards have been submitted and recorded.
Fire in Turin
On December 6, 2007 a tragic fire occurred in the Turin plant of ThyssenKrupp Acciai Speciali Terni
which claimed the lives of seven employees. ThyssenKrupp expressed its sympathy and condolences
to the victims’ families, among other things by attending all four funeral services. ThyssenKrupp Acciai
Speciali Terni undertook various measures to support the bereaved families. This included immediate
financial assistance and the establishment of an education fund for the children.
Within ThyssenKrupp Stainless work to improve health and safety in the plants is an ongoing
process. A global taskforce has been set up to address fire protection. In addition, numerous new
measures have been introduced at ThyssenKrupp Acciai Speciali Terni.
1,347
–
1,361
154

ThyssenKrupp sTainless aG Employees
Terni health and safety initiative
Following the tragic accident in Turin, representatives of ThyssenKrupp Acciai Speciali Terni in Italy
together with national and local authorities signed a safety protocol. On the basis of this agreement,
contractors are being closely integrated into ThyssenKrupp Acciai Speciali Terni’s health and safety
strategy; among other things their employees are obligated to take part in health and safety training
measures. Furthermore, additional investment has been carried out to optimize fire protection. For
example, the plant fire service fleet has been expanded and additional fire prevention equipment
installed. In cooperation with the local fire department, fire drills are being carried out at all operations.
To promote accident prevention, all new employees at ThyssenKrupp Acciai Speciali Terni take part in
a training week focusing on health and safety and fire protection. This training course far exceeds the
requirements of Italian law. In particular, training focuses on the use of personal protective gear and
on learning about the general and specific risks in the workplace.
Securing young talent
The options for the strategic recruitment of new employees are determined by the interplay between
conditions on the recruitment market and the attractiveness of an employer. Stainless technology
is highly specialized, which means that the number of experts available is limited. To increase
ThyssenKrupp Stainless’s attractiveness as an employer, we are intensifying our existing collaborations
with schools and expanding our fellowship programs. In addition to participating in the Group’s
“Recruiting” initiative, intensive university marketing and the consistent pursuit of our networking
policy are further key aspects of our strategy. ThyssenKrupp Nirosta’s program to secure young talent
is a prime example. Under the heading “Iron man wanted”, graduates were specifically recruited to
junior management positions. On completion of a selection procedure, a number of engineers and
economics graduates gained an unlimited employment contract.
Training
Strategic personnel development to promote sustained employee support is a key priority within the
ThyssenKrupp Stainless segment. In the past fiscal year around 37,000 days were invested in training
over 21,000 people. As well as communicating methodology and international competencies, key
areas were technical seminars and courses relating to occupational safety, health management and
environmental protection.
Apprenticeship training makes a key contribution to securing young talent at ThyssenKrupp
Stainless. On September 30, 2008 a total of 422 young men and women were undergoing apprenticeship
training at the German companies of the Stainless group. Compared with the year before the training
rate of the German subsidiaries increased from 6.1 to 6.5 percent. The increased recruitment of industrial
In mid-2008 the first new employees from the USA
came to Germany for training.
Advanced training of the
teams (here in Poland) is a
major priority.
27

28
younG and old aT nirosTa
The JAN project resulted in
measures which are now being
implemented
and commercial trainees is also an expression of our proactive approach to demographic change. In
response to the increased number of employees entering retirement and the reduced number of young
employees, ThyssenKrupp Nirosta has launched the “JAN” program, which stands for “Young and
Old at Nirosta”. The program comprises ten projects, reflecting its integrated approach, which focus
among other things on knowledge management, workplace design and personnel development. The
implementation phase (“JAN AKTIV”) for the 80 individual measures developed from 35 operating
goals since the project was launched in November 2005 began in March 2008.
Personnel development programs at ThyssenKrupp Stainless
Under a module of the segment-wide personnel development process initiated in fiscal 2005/06, an
introductory event is held to prepare junior executives from all companies for work in an international
group. The aim of this event is to motivate newcomers to the Stainless group to show commitment in
their work not just for their own company but also with and for ThyssenKrupp Stainless. Plant tours,
workshops, presentations on the segment and an evening get-together with members of the Executive
Board help participants gain an all-round impression of the segment.
Six Sigma training
To enhance project management and problem-solving capabilities, “Six Sigma” methodology has
been taught in the ThyssenKrupp Group for many years and is increasingly used in practical projects.
“Six Sigma” is a quality management strategy aimed at eliminating defects from business processes
as far as possible. Requirements are defined from the customer’s point of view. Since training began,
16 employees initially in Germany have qualified as “greenbelts” and 15 as “blackbelts”.
University program
The above measures are supplemented by programs tailored to the specific needs of individual
companies under the personnel development activities in the business units. For example, ThyssenKrupp
Mexinox runs a “Bachelor Program” to support employees in their efforts to gain a university degree.
The company provides employees taking part in distance learning programs with study rooms and
computers for their e-learning courses. The study fees are paid by the employees themselves. The
company is currently providing support for 50 employees who are studying for degrees in engineering
and economics.
Training of production employees
To be able to adapt to short-term production fluctuations, production workers in the annealing, rolling
and finishing shops at Shanghai Krupp Stainless are being trained to operate all facilities within the
plant. After training, an employee is able to work on any of the various lines. In the medium and long
term this will allow enhanced utilization of existing personnel capacities.

04
Capital expenditures
compeTiTiveness
With an extensive investment program, ThyssenKrupp Stainless is
pursuing a future-oriented corporate policy.
---

04
Capital expenditures
With an extensive investment program, ThyssenKrupp Stainless
is implementing its strategic goals step by step. In the stainless
flat-rolled area our investment program is focused on securing
and further expanding our market position in Europe and
North America. In the high-performance materials area
ThyssenKrupp Stainless has optimized existing production
structures and further expanded capacities.

Capital expenditures
ThyssenKrupp sTainless aG Capital expenditures
Altogether, ThyssenKrupp Stainless invested some 387 million euros in property,
plant and equipment and intangible assets in fiscal 2007/08. Key areas of investment
were the establishment of the fully integrated production location ThyssenKrupp
Stainless USA in Calvert (Alabama) and the systematic continuation of our strategic
investment in the sites of ThyssenKrupp Acciai Speciali Terni and ThyssenKrupp VDM.
The growth of the Terni location of ThyssenKrupp Acciai Speciali Terni into a worldclass
integrated stainless mill was taken a step further with the first and second stages
of the capacity expansion. In the area of high-performance materials, the investment
measures centered on the expansion of the remelting capacities for nickel alloys and
titanium and closing the technological gap in the production of nickel alloy long
products through the construction of a forging plant in Unna.
To enhance safety in our facilities on an ongoing basis, in addition to the business units’ individual
projects the fire protection program initiated in previous years was systematically continued at
segment level. This investment program is focused on further reducing potential fire hazards in our
operations, installing fire alarms and fire extinguishing systems and building fire walls.
Stainless flat-rolled: Securing competitiveness
in our core markets
ThyssenKrupp Nirosta
Investment activity in the past fiscal year focused on increasing business with end customers by
expanding the EBOR service center operations in Sachsenheim, building an acid regeneration plant at
the Krefeld location, and also on various measures to maintain operations and modernize equipment.
With the expansion of the EBOR service center operations, ThyssenKrupp Nirosta continued its
successful policy of expanding processing capacities and increasing value added in the area of highquality
finished flat-rolled stainless products.
In a further step towards securing environmentally friendly technologies, ThyssenKrupp Nirosta is
building an acid regeneration plant at the Krefeld location. The new plant will further reduce the nitrate
content of the wastewater.
In the Krefeld and Bochum steelmaking shops the extensive modernization of the AOD furnaces
will be continued in the coming years to ensure production at all ThyssenKrupp Nirosta locations
meets the highest requirements.
ThyssenKrupp Acciai Speciali Terni
The strategic goal of developing the Terni operation of ThyssenKrupp Acciai Speciali Terni step-bystep
into a benchmark production site is being implemented by a series of measures. Some of the
individual projects began in fiscal 2006/07 but will not be completed until fiscal 2008/09.
The growth of Terni into a world-class production location continued after the decision to close
the Turin plant and the relocation of individual facilities to the Terni location.
An additional investment program will increase the hot- and cold-rolled capacities of ThyssenKrupp
Acciai Speciali Terni while widening the product portfolio. This will improve the balance between
31

32
new vod converTer
in operaTion
This has expanded the company’s
portfolio of ferritic steels to include
special grades
steelmaking and hot/cold rolling capacities and enable the Stainless group with its European coldrolled
capacity to meet increasing demand in the region. The investment program mainly involves
replacing the thin-slab caster with a conventional continuous caster to enhance hot-rolled quality
and better utilize existing steelmaking capacity. In addition, the installation of two inline cold-rolling
roll stands in the entry section of the new hot-rolled line will create the conditions for increasing
cold-rolled capacity and widening the product portfolio. The investment package also includes the
creation of further capacity in the anneal/pickle area and the expansion of the finishing and shipping
departments in Terni.
To expand the product portfolio to include ferritic grades with high chromium and low carbon
contents and to optimize operating procedures, a VOD furnace was installed in the melt shop which
began regular operation in spring 2008. In the VOD (Vacuum Oxygen Decarburization) process, the
carbon/hydrogen and nitrogen content of high-alloy heats is reduced to a minimum under vacuum.
This technology is therefore also used to improve the quality of the forging ingots produced by
ThyssenKrupp Acciai Speciali Terni’s subsidiary Società delle Fucine. With the VOD furnace it will
be possible to minimize the hydrogen content of ingots weighing up to 500 t. This innovative VOD
technology will allow ThyssenKrupp Acciai Speciali Terni to expand its portfolio of ferritic steels to
include special grades which can be used in place of conventional chromium nickel steels in some
application areas.
ThyssenKrupp Mexinox
In addition to various individual measures to maintain operations, investment at ThyssenKrupp Mexinox
focused on the modernization of Sendzimir mill 1. The project is necessary because following the
construction of the bright annealing line the production bottleneck at ThyssenKrupp Mexinox shifted
from finish annealing and pickling to the Sendzimir mills. The project will continue over the next two
fiscal years and on completion will secure the sustainable operation of the mill which was built in 1976.
In addition, the installation of a flatness measuring unit will further optimize the facility.
Shanghai Krupp Stainless
Investment in the cold-rolling mill of Shanghai Krupp Stainless in fiscal 2007/08 focused on projects
to round off previous investments. In particular, measures were carried out to expand processing
capacity and improve differentiation from the competition. A key component was the commissioning
of a circle cutting machine which significantly increases value added in the processing operations
of Shanghai Krupp Stainless and therefore serves the needs of end customers. This supports the
expansion of our strategically important end customer business.
ThyssenKrupp Stainless International
To reflect the growing importance of the Turkish market for the Stainless group the investment project
launched the previous year with the aim of relocating the existing service center operations to newly
built premises in the greater Istanbul area was continued. The new location will replace the existing
operation in Kartal and will open in the 1st half of 2009.
As at Shanghai Krupp Stainless, a circle stamping machine is being built in the service center
in Poland which will meet the rising requirements of end customers in the white goods industry. The
investment significantly strengthens ThyssenKrupp Stainless International’s competitive position by
clearly increasing value added and minimizing scrap. Thanks to its central location, the service center
can respond quickly to the requirements of customers throughout Europe.

The construction of the ThyssenKrupp Stainless USA
plant in Alabama is proceeding to schedule.
ThyssenKrupp sTainless aG Capital expenditures
ThyssenKrupp Stainless USA
Construction of the new joint steelmaking and processing plant for the Steel and Stainless segments in
Calvert (Alabama) is on schedule. Startup is planned for early 2010. Due to the tight supply situation in
the global plant construction sector, which has increased the cost of individual projects, the investment
volumes for Stainless are currently expected to be around 30 percent higher than the 1.1 billion US
dollars originally planned. This will have no material impact on the profitability of the projects.
The project in the USA is a major part of ThyssenKrupp Stainless’s growth strategy. The direct
entry of the Stainless group in the USA will further strengthen its existing market position in North
America. The Stainless group is already active on the North American stainless market through the
cold-rolling mill of ThyssenKrupp Mexinox in San Luis Potosí (Mexico) and through imports from the
mills in Germany, Italy and China. Marketing is carried out via a sales company based in Chicago.
The new plant will allow ThyssenKrupp Stainless to sustain its high market share in the fast growing
Mexican market and significantly further strengthen its position in the USA and Canada.
Orders have been placed for most of the production facilities. The main production lines and
various auxiliary units for the cold-rolling mill have been ordered. These include hot strip and cold
strip annealing and pickling lines, three cold-rolling stands, a skin-pass mill, several finishing units
and a large share of the cranes. Orders for the electric arc furnace, AOD converter and continuous
caster, the core units of the melt shop, were placed in May. Negotiations are under way in respect of
the ancillary equipment. An order has also been placed for the core unit of the hot-rolling mill, the
wide hot strip facility.
Piling work in the area of the cold-rolling mill has been completed. Work on the construction of
the cold-rolling mill buildings began at the end of August. Further milestones planned for 2009 are the
completion of the cold-rolling mill, installation of the equipment and start of the ramp-up phase.
33

34
High-performance materials:
Optimization of production structures
ThyssenKrupp VDM
The investment projects under way at ThyssenKrupp VDM will support the forward strategy to
strengthen and expand the market segments aerospace and oil & gas. The largest single project is
the construction of a complete forge at the Unna plant, consisting of a forging press, the necessary
preheat furnaces and two forging manipulators. This will considerably strengthen and expand the
bar product unit. The open-die forge will also process material from ThyssenKrupp Titanium. The
new forge, which went into operation in spring 2008, closes a gap in the value chain and makes it
possible to end the contracting out of work to third parties. In addition, the range of services has been
significantly expanded. ThyssenKrupp VDM can now offer to process material for customers in the
new forge.
The service center operations at the Werdohl location have also been augmented. In September 2008
a new service center for the Chinese market was opened on the ThyssenKrupp Stainless International
site in Guangzhou.
Investment in the sheet product unit focused on technical upgrading, including the ability to supply
12 meter long sheet in the future. The concentration of wire production at one location was completed
in early 2008.
ThyssenKrupp Titanium
Available ingot capacity at the Essen location of ThyssenKrupp Titanium has been more than doubled
in two steps to keep pace with growth on the titanium market. A VAR remelting unit was commissioned
in October 2006. The group’s first electron beam furnace went into operation in autumn 2008.
With the new electron beam furnace – installed in a specially built shop at the Essen site –
ThyssenKrupp Titanium now has the most modern furnace in Europe. With a capacity of 1,200 kilograms
of titanium per hour, the new furnace can produce up to two slabs per day. Instead of the standard 7.5
tons, the new slabs weigh up to 15 tons. The furnace can process both titanium sponge and titanium
scrap in various mixtures, and thus makes us less dependent on supplies of titanium sponge from
outside Europe. With this addition, ThyssenKrupp Titanium can meet increasing demand on the global
market for titanium products in the medium and long term and guarantee reliable supplies of titanium
products to its customers.
The new forge in Unna will
expand the product portfolio.
With the innovative electron beam furnace,
larger titanium slabs can now be produced in Essen.

05
Research
and development
maTerial innovaTions
Developing new and enhanced materials is the number one priority
of the Stainless group.
---

05
Research
and development
Developing new and enhanced materials is a key element in
cementing and expanding our position on the market. Steadily
widening our research activities and developing new applications
for our materials are a major priority in the ThyssenKrupp Group
and in particular at ThyssenKrupp Stainless.

Research and development
ThyssenKrupp sTainless aG Research and development
Increasing raw material costs, higher customer requirements and extended
applications are among the challenges facing the Stainless segment. Various material
innovations in the areas of stainless steel, nickel alloys and titanium are providing
successful solutions and strengthening our position in the global marketplace.
ThyssenKrupp Stainless is exploring new paths to increase the performance potential
of the materials and at the same time optimize their use.
New reduced-nickel and nickel-free materials from ThyssenKrupp
represent low-cost alternatives for our customers
To make us less dependent on the nickel price and allow us to offer a broader range of low-cost
materials, we have developed various materials which are either nickel-free or have a much smaller
nickel content:
In times of high nickel prices, Nirosta 1.4640 is a low-cost alternative to the standard material
1.4301 offering equally good properties in terms of corrosion resistance, formability, weldability and
aesthetics. Thanks to a new combination of copper, nitrogen and manganese as alloying additions, the
developers were able to reduce the nickel content of the stainless steel. The similarity of properties
to material 1.4301 means that customers - applications lie mainly in the “white goods” sector but also
all other areas in which Nirosta 1.4301 is used - can continue using the same processing technologies
when they change to the new material. With this new development, the company won second prize in
the Group’s 2008 Innovation Contest.
A further innovation in austenitic stainless steels is Nirosta 4618. Here, too, the company has
succeeded in developing a material with significantly lower nickel content but similar forming
properties to Nirosta 1.4301, allowing it to be used as a substitute in many applications. Its properties
make Nirosta 1.4618 particularly suitable for domestic appliances, commercial kitchens, sinks and
interior architecture.
With Nirosta 1.4607 the company has developed to production maturity a material especially
designed to meet the requirements of auto manufacturers. A traditional user of stainless steel -
particularly for exhaust systems - the auto industry faces increased cost pressure due to the price
of nickel. Nirosta 1.4607 is completely nickel- and molybdenum-free, highly resistant to corrosion
and can be used in applications requiring the formability of a ferrite material. It is very resistant to
high temperatures and therefore suitable for new generations of engines with elevated corrosion and
thermal loads in which it minimizes NOx emissions.
That existing materials can find new applications through modification was proved by ThyssenKrupp
Nirosta with the nickel-free stainless steel 1.4521. Up to now, expensive nickel-containing steels have
been used for drinking water pipes. Working closely with customers, our specialists improved this
37

38
steel such that it can be readily formed and does not corrode even under unfavorable conditions. The
material is already being successfully used for drinking water pipes in Switzerland and has now also
been approved for use in Germany. At the same time we have optimized the manufacturing technology
in order to handle the increasing volume of orders.
VOD unit at ThyssenKrupp Acciai Speciali Terni
To expand the product portfolio to include ferritic grades with high chromium and low carbon contents
and to optimize operating procedures, a VOD furnace was installed in the melt shop of ThyssenKrupp
Acciai Speciali Terni which began regular operation in spring 2008. This VOD furnace will also help
improve the quality of the forging ingots produced by ThyssenKrupp Acciai Speciali Terni’s subsidiary
Società delle Fucine. The innovative VOD technology will allow ThyssenKrupp Acciai Speciali Terni
to expand its portfolio of ferritic steels to include special grades which can be used in place of
conventional chromium nickel steels in some application areas. In this connection, ThyssenKrupp
Acciai Speciali Terni developed the materials 460LI-21 Cr and 470LI-24 Cr.
New high-performance nickel and titanium alloys contribute
to climate protection
The development and modification of materials is also a high priority at ThyssenKrupp VDM. In
particular in new areas of application such as the transportation of liquefied gas or in power plants
operating at temperatures of 700°C, the special properties of nickel alloys can be used to improve
specific processes or even make them possible in the first place. Where these materials are already in
use, targeted modification of the alloys helps reduce costs.
For many years the US appliance industry has used heating element wire made of Cronifer II from
ThyssenKrupp VDM. However, due to its high nickel content the material is no longer competitive for
this application. By increasing the chromium content and accurately adjusting the balance of various
elements, the company has succeeded in developing a new material - Cronifer 40 B - with only 37.5
percent nickel compared with Cronifer II’s 60 percent. Despite significantly lower metal costs, Cronifer
40 B meets the high shape stability and service life requirements of this application. The material is
now being produced on a commercial scale.
Innovations in materials increasingly hold the key to efficient climate protection and resource
conservation. New generations of fossil-fired steam power plants are being introduced which can
achieve higher efficiencies as a result of higher temperatures and pressures of the steam. Together with
power plant operators and manufacturers of power plant boilers, ThyssenKrupp VDM has developed
Sink manufacturers are
among our most important
customers.
For the appliance industry ThyssenKrupp Nirosta
has developed two new reduced-nickel materials.

ThyssenKrupp sTainless aG Research and development
a material - Nicrofer 5520 Co B - which meets the increased thermal and corrosive requirements of
these power plants; suitability for operating temperatures of 700°C has already been successfully
demonstrated. Our engineers are now working on using this alloy for the manufacture of longitudinalwelded
thick-wall pipes and large forgings.
The transportation of liquefied gas offers an important source of alternative energy for the future.
The VDM alloy Pernifer 36 is now to be used for the innermost coating of the longitudinal-welded
pipe through which the gas flows to prevent major shrinkage of the pipes when cooling. The pipes
are subject to high pressures and any defects could have fateful consequences. ThyssenKrupp VDM
has therefore developed the welding filler metal Pernifer S 36 CrAl, an alloy containing additional
elements to enhance strength and ensure good weldability. With low thermal expansion, the new
material increases the strength of the weld.
The use of nickel alloys is also paying dividends in wind turbines. Turbines with so-called hightemperature
superconductors operate with much higher efficiency than conventional systems.
Together with a development partner, ThyssenKrupp VDM has developed a production route for nickel
W14 which can be used in superconductors, e.g. in generators, and provides mechanical stability
and long service life. The findings gained in the laboratory were successfully transferred to largescale
production; a patent has already been filed. This development opens up a new opportunity to
participate in the growth of the wind power market.
In the area of fuel cells, further progress was made in the development of a material for
interconnector plates. The new material Crofer 22 H - like Crofer 22 APU, developed jointly with the
Jülich Research Center - was produced for the first time on a commercial scale. Crofer 22 H is a
material with much greater elevated-temperature strength than Crofer 22 APU. This is achieved by
additions of niobium, tungsten and silicon. Samples of this new material are currently being supplied
to customers working on developing the next generation of SOFC stack technology.
ThyssenKrupp Titanium developed the titanium alloy Ti-X containing the relatively inexpensive
main constituents of iron and silicon especially for use in auto exhaust systems. In contrast to pure
titanium, which cannot be used at high temperatures, the new material is a high-temperature alloy
which is oxidation-resistant and can be used at temperatures up to 750°C. To enable the material to be
used at even higher temperatures up to 1,000°C, the company developed a special protective coating
in the form of a thin aluminum cladding applied to the alloy. The test material is now available, further
tests will follow shortly. The advantage of volume use of this material in auto manufacturing lies in its
significantly lower weight which reduces CO2 emissions in vehicle operation.
Aluminum seat rails, used mainly in damp areas of aircraft, are exposed to particularly heavy
wear. In addition, the mechanically stressed rails are subject to corrosion damage. The solution: a
low-weight composite material consisting of titanium and aluminum developed by ThyssenKrupp
The new VOD unit will improve the quality of large
ingots, e.g. for power plants.
High-temperature
superconductors are used
in wind turbines.
39

40
Titanium in association with ThyssenKrupp DAVEX. The use of a special joining technology (Davex
technology) allows the manufacture of simple, low-cost material combinations which cannot be
produced conventionally or only at very high cost. In the new seat rails made in this way, only those
parts which are directly exposed to corrosion are made from titanium.
In the BliDes-HDV project (Blisk design for high-pressure compressors), ThyssenKrupp Titanium is
optimizing the production of ingots of alloy Ti-6Al-4V. This will permit the manufacture of an extremely
fine-grained, low-texture material which can be used by jet engine manufacturers to produce titanium
components for high-pressure compressors used in turbines. Unlike conventional materials, the new
alloy can be subjected to high-sensitivity ultrasonic testing to eliminate even the smallest material
defects. The material’s enhanced quality and potential additional savings (e.g. shorter testing times)
give the company a significant competitive advantage. In parallel with the project, further process and
microstructure simulations are being carried out at RWTH Aachen college of technology.
In association with the Institute of Metallurgical Process Technology and Metal Recycling of RWTH
Aachen college of technology, ThyssenKrupp Titanium is carrying out special melting tests on the
titanium alloy Ti-6Al-4V to identify potential process improvements. In the tests, the evaporation rates
of the alloying elements and the adhesion of undesired deposits on the walls are being examined. The
results will help extend the service life of ThyssenKrupp Titanium’s new electron beam furnace, which
went into operation in autumn 2008, and optimize the quality of the slabs.
Aircraft construction would be
unthinkable without titanium.
Various materials of the Stainless group are used in
seawater desalination units.

06
Sustainability/
Environmental protection
responsibiliTy
Protecting the interests of the environment is part of our corporate philosophy –
as here on the site of our new plant in the USA.
---

06
Sustainability/
Environmental protection
The Stainless group pursues a sustainable corporate policy
in which protection of the environment plays a central role.
This includes advanced production facilities and process
technologies, the almost 100 percent recyclability of our materials
and the use of our products in eco-friendly applications.

Sustainability
ThyssenKrupp Stainless pursues a sustainable corporate policy in which
the interests of the environment play a key role. This is reflected not only in
our production plants and processes, which are based on state-of-the-art
technology, but also in our materials, which are increasingly used in pollution
control applications such as vehicle exhaust systems, new generations of
power plants, and fuel cells.
Sustainability
ThyssenKrupp sTainless aG Sustainability
Our sustainable corporate policy is aimed at securing the future for coming generations taking
economic, ecological and social aspects into account. However, in this field of tension it is economic
success that determines the room for maneuver in the other two areas. ThyssenKrupp Stainless offers
intelligent and sustainable solutions.
Economic aspects
Economic solidity and long-term success based on value-oriented management are central to
ThyssenKrupp Stainless’s understanding of sustainability, but non-economic aspects are also
systematically taken into account. Six factors are key to the success of our sustainability strategy:
effectiveness, efficiency, resources, impact, solidarity and justice. In an environment shaped by global
competition, these factors have to be constantly reexamined together with customers, suppliers,
capital providers, employees and other central stakeholders.
Materials
Longevity and 100% recyclability are two of the most important arguments for the materials of
ThyssenKrupp Stainless. For manufacturers and customers alike, products made from stainless
materials are an investment in the future. Because they are infinitely recyclable with no loss of quality,
stainless steel, nickel alloys and titanium are particularly kind to the environment. Recyclability is
therefore an important property of these materials. These properties and their ever widening range of
applications make these materials indispensable now and in the future.
43

44
Employees
With their motivation, knowledge and experience, our employees are a central resource for the
sustainability of our company. We strive to strengthen this potential with training, skill upgrading,
and personnel development and marketing programs and through our ideas management. At all
sites, ThyssenKrupp Stainless and its subsidiaries are regarded as reliable employers offering secure
jobs and apprenticeships. ThyssenKrupp Stainless also strengthens the regions in which it operates
through active involvement in social initiatives.
Innovations
Innovations create the conditions for future business success. The R&D activities of ThyssenKrupp
Stainless are therefore aimed at constantly improving our products and offering better value for
money. Since all activities are centered on the customer, development work is linked to marketing
requirements from a very early stage. In the same way, product development goes hand-in-hand with
process development, because when new products are introduced, new manufacturing technologies
have to be mastered. To estimate the success of sustainable innovations early on, it is essential to
be close to the market, i.e. to have a deep understanding of customers’ requirements and thorough
knowledge of the competition. After development tasks have been identified, they are implemented at
the Stainless group’s centers of excellence. Work involving forward-looking themes and outstanding
customer segments is carried out in cross-company cooperative projects with other companies of
ThyssenKrupp AG. Research institutes and universities and in some cases other steel companies from
all over the world are also naturally involved in the development process.
Environmental protection –
as pictured here in the USA –
is a key priority.
The catalytic waste-air purification plant at
ThyssenKrupp Nirosta in Krefeld.

Environmental protection
ThyssenKrupp sTainless aG Environmental protection
ThyssenKrupp Stainless attaches great importance to environmental protection.
Responsible environmental management, minimizing emissions and waste materials
together with the economic use of raw materials and energy are important goals for all
plant employees. Environmental management means systematically and continuously
monitoring environmental aspects – and this is done right from the design stage for
production processes at our plants worldwide. At all ThyssenKrupp Stainless locations,
the production systems used are gentle on the environment and resources. As a result,
considerable success has been achieved in the reduction of dust emissions, noise,
water and energy consumption as well as in waste recycling. However, our materials
are also indispensable in this regard, since they make possible the types of processes
called for by the demands of environmental protection.
ThyssenKrupp Stainless has achieved a great deal in the field of environmental protection. With
environment-friendly production facilities, a high proportion of recycled material and above all the
100% recyclability of our products, we make an above-average contribution to protecting the global
environment. Water and air pollution control and an almost 100% recycling system are integral parts
of our operating processes.
ThyssenKrupp Nirosta
At the Bochum steel plant, further measures have been implemented to reduce noise from the dust
collection stacks. At the company-owned landfill site Blücherstrasse, the penultimate phase of building
to secure and restore this landfill was carried out under the approved overall plan.
At the Krefeld melt shop and in the slag processing area, further measures were carried out to
reduce dust emissions to further improve the overall emissions situation in the vicinity of the plant.
In addition, in the framework of the project to modernize the converter units, work began on erecting
a new wrecking and rebricking stand for converter vessels and ladles, on which the dust emissions
occurring when tipping the removed refractory material are additionally extracted and collected.
At the Krefeld cold strip mill, the catalytic waste air purification plant designed to reduce nitrogen
oxide emissions from the mixed acid pickling units of the two lines concerned went into operation.
In addition, work began on the construction of an acid regeneration unit for the plant’s entire waste
acids, with which acids can be recovered and the level of hazardous substances in the waste water
significantly reduced.
At the Düsseldorf-Benrath plant, pickling line 1300 was optimized in both economic and ecological
terms. The existing continuous rinsing unit was replaced by a new closed-loop rinsing system, allowing
the volume of waste water to be reduced by 25 cubic meters per hour. In addition, the pickling tanks
were equipped with modified collection chambers in line with current safety standards.
At the Dahlerbrück plant, extensive noise-protection measures, including the insulation of the
cooling towers, were carried out. Furthermore, the modernization of the company-owned canal network
in line with statutory requirements was completed.
45

46
hiGh environmenTal sTandards
In the future, the plant in Alabama
will have an advanced acid
regeneration unit to reduce the
nitrate content of the wastewater
At the Dillenburg plant, the construction of a retardation unit further reduced the level of nitrate in
the waste water. In addition, nitrogen oxide emissions of the bright annealing line 1550 were minimized
with the installation of low-nitrogen oxide FLOX burners.
ThyssenKrupp Mexinox
ThyssenKrupp Mexinox, which is based in a region with limited water resources, further reduced
water consumption to protect the local environment by optimizing its waste water treatment and acid
regeneration facilities. In April and May 2008, 350 trees were adopted by volunteers. The trees were
planted by their adopters on the Mexinox site and provided with a name plaque. Each adopter pledged
to tend and water their own particular tree, and they have all fulfilled this commitment. In addition, a
further 525 trees were planted. Further improvements were achieved through the extensive recycling of
consumables used in production, for example the large volumes of paper needed for process reasons.
Almost 10 tons of paper was collected for recycling, saving around 120 trees and 952,000 liters of
water.
ThyssenKrupp Stainless USA
The new steel mill in the USA is being built to the most stringent environmental standards. The most
technologically advanced pollution control measures will be employed at the site. Clean-burning natural
gas and electricity will be used to fire the process burners and furnaces. In addition, the processing
equipment will be fitted with extensive energy recovery and re-use systems. The new plant in Alabama
will also have an advanced acid regeneration unit which will greatly reduce nitrate levels in waste
water. Acids from the annealing and pickling lines will be processed extremely effectively. This is the
best technology currently available in terms of both economy and ecology and will make an effective
contribution towards protecting Mobile Bay.
Shanghai Krupp Stainless
The business unit received two major environmental awards in the past fiscal year: the Shanghai
Advanced Health Business Unit Award and the Shanghai Municipal Water Saving Business Unit Award.
In addition, Shanghai Krupp Stainless was certified to ISO 14001 and ISO 18001 environmental, health
and safety standards.
ThyssenKrupp VDM
In the planning of the new forging press at ThyssenKrupp VDM’s Unna plant, the main environmental
aspects to be considered were covered by compliance with the statutory provisions regarding noise
emissions, vibrations and air pollutants. By meeting the appraiser’s requirements concerning noise
insulation for the planned buildings and noise levels from external sources, local emissions are well
below the permissible limits.
Based on the results of vibration measurements, structure-borne noise requirements were
defined for the forge. Further vibration measurements were carried out during trial operation of the
forge to ensure optimum results in terms of technology and environmental protection when the forge
is in regular operation.
To assess air pollutant emissions occurring during operation of the forge, the requisite stack height
was calculated – based on the construction planning – and the relevance of a pollutant dispersion
calculation was reviewed. Thanks to the technical parameters, it was possible to comply with emission
limits below the statutory limits.

07
Operating companies/
Further information
cusTomer Focus
For the operating companies of the Stainless group,
the focus is always on the customer.
---

07
Operating companies/
Further information
The operating companies in the Stainless group are active
on the market and offer our customers tailor-made solutions,
products and services.

Operating companies
ThyssenKrupp nirosTa Gmbh
Oberschlesienstraße 16
47807 Krefeld/Germany
Telephone: +49 (0) 2151 83 01
Fax: +49 (0) 2151 83 2022
marketing.nirosta@thyssenkrupp.com
www.nirosta.de
ThyssenKrupp Nirosta’s plant in Krefeld.
ThyssenKrupp Nirosta
ThyssenKrupp sTainless aG Operating companies
ThyssenKrupp Nirosta GmbH is one of the world’s leading manufacturers of stainless flat products
and offers a wide range of grades, sizes and finishes. The largest single entity within ThyssenKrupp
Stainless AG, the company has several sites in Germany. Crude steel production is carried out in the
Bochum and Krefeld plants. The slabs produced there are converted into hot-rolled coils on the hot
strip mill of ThyssenKrupp Steel in Bochum. From these, ThyssenKrupp Nirosta produces treated
(pickled) hot-rolled and cold-rolled coil in various finishes, forms and sizes at its plants in Dillenburg,
Düsseldorf-Benrath and Krefeld.
ThyssenKrupp Nirosta is a major manufacturer with high-performance, highly specialized stateof-the-art
production facilities. In recent years, further processing of the hot-rolled and in particular
cold-rolled products has become increasingly important. This has allowed the company to extend its
range of services and strengthen customer retention. The company provides these services both from
its modern mill finishing departments in Krefeld and Dillenburg and via its own service centers NSC
in Wilnsdorf, EBOR Edelstahl GmbH in Sachsenheim (near Stuttgart) and smbChromstahl GmbH in
Langenhagen (near Hanover). To meet growing demand for its services, EBOR is currently being further
expanded as part of a wide-ranging investment program.
Subsidiary ThyssenKrupp Nirosta Präzisionsband GmbH is located in Dahlerbrück and produces
stainless steel precision strip in thicknesses of 0.05 to 1.5 millimeters and widths of 3 to 650 millimeters
meeting special demands on material properties, dimensional tolerances and edge quality.
The company also has its own sales company, ThyssenKrupp Nirosta North America in Bannockburn
(Illinois) near Chicago, in the important US sales market.
THYSSENKRUPP NIROSTA IN FIGURES
2006/2007 2007/2008
Order intake million € 2,694 3,037
Sales* million € 3,839 3,234
Deliveries* 1,000 t 1,067 1,087
Employees (September 30) 4,665 4,682
* unconsolidated
49

50
ThyssenKrupp acciai speciali
Terni s.p.a.
Viale B. Brin 218
05100 Terni/Italy
Telephone: +39 (0) 7 44 490 1
Fax: +39 (0) 7 44 490 752
info@acciaiterni.it
www.acciaiterni.it
ThyssenKrupp Acciai Speciali’s plant in Terni.
ThyssenKrupp Acciai Speciali Terni
ThyssenKrupp Acciai Speciali Terni, Italy’s only producer of stainless flat products, is based in Europe’s
second largest stainless market. The Terni plant is a fully integrated mill and has a melt shop with a
stainless capacity of around 1.5 million tons per year. The slabs produced there are rolled into hotrolled
coil on the company’s own hot strip mill and in future will be finished exclusively at the Terni
plant. Under an extensive program of measures, production in Turin is being relocated step by step
to Terni. The Terni site is being expanded and its competitiveness further improved. With the aid of
ongoing three-digit million investment, ThyssenKrupp Acciai Speciali Terni is currently modernizing its
production equipment, increasing its capacity and expanding the mill finishing department. Quality at
the plant will also be further enhanced.
Terninox S.p.A., a subsidiary of ThyssenKrupp Acciai Speciali Terni, is an efficient service center. Based
in Ceriano Laghetto (Milan), the company combines all the stainless service activities not covered
by the mill finishing departments. The mill finishing department in Terni was recently modernized
and expanded. This included expanding finishing capacities as well as building a coil coating line.
The US export market is served via the sales company ThyssenKrupp Acciai Speciali Terni USA in
Bannockburn. ThyssenKrupp Acciai Speciali Terni owns several production subsidiaries:
• Società delle Fucine S.p.A. has a long history of producing very large open-die forgings and operates
the largest forging press in Europe (12,600 ton capacity). The business is currently being expanded
to allow the production of higher-quality products as well as larger forgings with weights up to 250
tons (500 ton ingot weight).
• Tubificio di Terni S.p.A. is a leading producer of welded stainless steel tubes, in particular for the
auto industry.
• Terni-based ThyssenKrupp Titanium S.p.A. and its German subsidiary ThyssenKrupp Titanium
GmbH are the only producers of titanium in Western Europe, and supply titanium flat and long
products. Titanium ingot and bar are mainly produced in Germany and converted into titanium sheet
and cold-rolled strip in Italy. A new remelting furnace and an innovative electron beam furnace have
begun operation in Essen.
THYSSENKRUPP ACCIAI SPECIALI TERNI IN FIGURES
2006/2007 2007/2008
Order intake million € 2,951 2,983
Sales* million € 3,245 2,689
Deliveries* 1,000 t 1,122 1,120
Employees (September 30) 3,354 3,180
* unconsolidated

ThyssenKrupp mexinox,
s.a. de c.v.
Av. Industrias No. 4100
Zona Industrial 1a Sección
78395 San Luis Potosí/S.L.P., Mexico
Telephone: +52 (0) 444 826 51 00
Fax: +52 (0) 444 824 06 42
mexinox@thyssenkrupp.com
www.mexinox.com.mx
ThyssenKrupp Mexinox’s plant in San Luis Potosí.
ThyssenKrupp Mexinox
ThyssenKrupp sTainless aG Operating companies
The ThyssenKrupp Mexinox cold-rolling operation in San Luis Potosí is Mexico’s only producer of
cold-rolled stainless products. The company was established in 1976, and ThyssenKrupp Stainless AG
acquired a majority interest in 1997. Since then, the plant has been continuously expanded. In August
2006 a bright annealing line went into operation which had been relocated to Mexico from Italy and
modernized. It allows ThyssenKrupp Mexinox to offer the market an additional high-quality finish.
Processing capacity has also been further expanded.
ThyssenKrupp Mexinox has a cold-rolled capacity of around 250,000 metric tons per year. Most of
the plant’s starting material is hot-rolled coil from the group’s European plants. ThyssenKrupp Mexinox
primarily serves the North American market. Distribution on the domestic Mexican market is carried
out via a network of seven warehouses, while exports to the important US market are handled via the
sales company ThyssenKrupp Mexinox USA in Bannockburn (Illinois), and a warehouse in Brownsville
(Texas).
ThyssenKrupp Stainless has established an outstanding position in the NAFTA region. The
company is the leading supplier in Mexico and has a market share of more than ten percent in Canada
and the USA.
THYSSENKRUPP MExINOx IN FIGURES
2006/2007 2007/2008
Order intake million € 707 592
Sales* million € 707 591
Deliveries* 1,000 t 271 275
Employees (September 30) 1,347 1,361
* unconsolidated
51

52
ThyssenKrupp sTainless usa, llc
1087 Downtowner Boulevard, Suite 200
Mobile, AL 36609/USA
Telephone: +1 251 544 3600
Fax: +1 251 544 3502
mary.mullins@thyssenkrupp.com
www.thyssenkruppnewusplant.com
The site of ThyssenKrupp Stainless USA in Calvert, Alabama (Nov. 2008).
ThyssenKrupp Stainless USA
ThyssenKrupp Stainless USA, LLC, was created from the project company set up jointly with sister
segment ThyssenKrupp Steel to build a plant in the USA. From this evolved an independent company
which began operation in 2007. ThyssenKrupp Stainless USA is an independent company within the
Stainless group.
ThyssenKrupp Stainless USA is currently building a new integrated mill for stainless steel
flat products in Calvert in the US state of Alabama. The project in the USA is a key element in the
growth strategy of ThyssenKrupp Stainless. The direct entry of the Stainless group into the USA will
significantly expand our business in the NAFTA market. The capital investment for the Stainless part
of the greenfield project is around 840 million euros.
After the new plant starts production, expected in 2010, ThyssenKrupp Stainless USA will supply
its direct customers in North America in association with ThyssenKrupp Mexinox, which will later also
begin receiving hot-rolled coil from the new plant in the USA. Product marketing will also be handled
by the existing sales company ThyssenKrupp Stainless North America in Bannockburn (Illinois).
ThyssenKrupp Stainless USA is expected to make a major contribution to the success of the Stainless
group at operating level in the future.

shanGhai Krupp sTainless
co. lTd.
101 Xueye Road West
Pudong New Area
Shanghai 20012/PR China
Telephone: +86 (0) 21 38 87 48 87
Fax: +86 (0) 21 68 70 20 25
customerservice@skschina.com
www.skschina.com
The Shanghai Krupp Stainless plant.
Shanghai Krupp Stainless
ThyssenKrupp sTainless aG Operating companies
Shanghai Krupp Stainless is a joint venture 60 percent owned by ThyssenKrupp Stainless and 40
percent by Shanghai Pudong Iron & Steel Co, part of the Baosteel group. Based in the Shanghai
Pudong industrial zone (People’s Republic of China) the company was established in 1998 to set up
one of the world’s most advanced facilities for the production of stainless steel flat products.
The plant started operation in November 2001 as a cold rolling mill with a capacity of around
80,000 metric tons per year. Since then it has been expanded in phases to its current capacity of
around 300,000 tons. The plant procures part of its starting material from the Stainless group’s
European plants and part in the form of locally sourced hot-rolled coil.
SHANGHAI KRUPP STAINLESS IN FIGURES
2006/2007 2007/2008
Order intake million € 345 273
Sales* million € 454 284
Deliveries* 1,000 t 173 155
Employees (September 30) 546 522
* unconsolidated
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54
ThyssenKrupp sTainless
inTernaTional
Oberschlesienstraße 16
47807 Krefeld/Germany
Telephone: +49 (0) 2151 83 3503
Fax: +49 (0) 2151 83 3999
info.stainless-international@
thyssenkrupp.com
www.thyssenkrupp-stainlessinternational.com
ThyssenKrupp Stainless International’s service center in Hungary.
ThyssenKrupp Stainless International
ThyssenKrupp Stainless International (Krefeld) is a wholly owned subsidiary of ThyssenKrupp Stainless
AG. With two business units, it supports the direct sales of the plants of ThyssenKrupp Nirosta in
Germany and ThyssenKrupp Acciai Speciali Terni in Italy. ThyssenKrupp Stainless International sells
stainless steel cold-rolled and hot-rolled products in all markets worldwide with the exception of North
America.
ThyssenKrupp Stainless International currently has service centers in the United Kingdom, France,
Spain, Poland, Hungary and Turkey, a sales company in the Benelux countries and a warehouse with
processing facilities in southern China. ThyssenKrupp Stainless International also has sales offices in
Hong Kong, Shanghai, Beijing, Brazil, Singapore and Vietnam. The service centers have cut-to-length
and slitting equipment and can supply various surface treatments such as grinding and brushing.
ThyssenKrupp Stainless International is not just a materials supplier but a true service provider:
in cooperation with the production companies it supplies customers with solutions for diverse
applications, offers product support services and operates close to customers thanks to an ever
growing global distribution and service center network.
THYSSENKRUPP STAINLESS INTERNATIONAL IN FIGURES
2006/2007 2007/2008
Order intake million € 1,538 1,198
Sales* million € 1,570 1,187
Deliveries* 1,000 t 707 642
Employees (September 30) 436 453
* unconsolidated

ThyssenKrupp vdm Gmbh
Plettenberger Straße 2
58791 Werdohl/Germany
Telephone: + 49 (0) 2392 55 0
Fax: + 49 (0) 2392 55 2217
vdm@thyssenkrupp.com
www.thyssenkruppvdm.com
ThyssenKrupp VDM’s plant in Werdohl.
ThyssenKrupp VDM
ThyssenKrupp sTainless aG Operating companies
ThyssenKrupp VDM (Werdohl) is a leading international supplier of high-performance materials.
Operating from four sites in Germany, the company supplies these nickel and cobalt alloys as well
as specialty steels in the form of sheet, strip, bar and wire to customers in the energy, oil, gas, plant
construction, aerospace and electronics sectors.
The ThyssenKrupp VDM plants in Germany and the two plants of ThyssenKrupp VDM USA (New
Jersey, Nevada) employ the latest technologies, particularly in the area of melting and remelting. New
materials for complex applications are developed in close collaboration with customers. The company
has its own sales offices in North America, Asia and Australia.
At the Unna site, the company has expanded its remelting capacities and built a modern forging
line, which went into operation in April 2008. This will allow ThyssenKrupp VDM to grow in highly
profitable segments of the nickel alloy market. These include above all the so-called superalloys, i.e.
high-performance materials with special corrosion and heat-resisting properties. The new forging line
will add to ThyssenKrupp VDM’s range of products for the aerospace industry in particular.
THYSSENKRUPP VDM IN FIGURES
2006/2007 2007/2008
Order intake million € 1,464 1,068
Sales* million € 1,463 1,177
Deliveries* 1,000 t 49 43
Employees (September 30) 1,772 1,801
* unconsolidated
55

56
ThyssenKrupp Group shareholdings
A. CONSOLIDATED SUBSIDIARIES as at September 30, 2008
ThyssenKrupp Stainless Corporate
Currency
Capital stock
in €1,000
or foreign
currency
Share of
capital %
ThyssenKrupp Stainless AG, Duisburg 110,000 99.61
ThyssenKrupp Nirosta
EBOR Edelstahl GmbH, Sachsenheim 511 100.00
smbChromstahl GmbH, Hannover-Langenhagen 277 100.00
ThyssenKrupp Nirosta GmbH, Krefeld 60,000 100.00
ThyssenKrupp Nirosta Präzisionsband GmbH, Krefeld 1,000 100.00
ThyssenKrupp Nirosta North America, Inc., Wilmington, DE 19808, USA USD 2,000 100.00
ThyssenKrupp Acciai Speciali Terni
ThyssenKrupp Titanium GmbH, Essen 1,534 100.00
Aspasiel S.r.l., Rome, Italy 260 100.00
Società delle Fucine S.r.l., Terni, Italy 7,988 100.00
Terninox S.p.A., Terni, Italy 20,800 100.00
ThyssenKrupp Acciai Speciali Terni S.p.A., Terni, Italy 159,682 100.00
ThyssenKrupp AST USA, Inc., Albany, New York 12207 - 2543, USA USD 30 100.00
ThyssenKrupp Titanium S.p.A., Terni, Italy 5,000 100.00
Tubificio di Terni S.p.A., Terni, Italy 5,944 97.00
ThyssenKrupp Mexinox
Mexinox Trading S.A. de C.V., Mexico D.F., Mexico MXN 129,258 2) 100.00
Mexinox USA Inc., Brownsville/Texas, USA USD 2,000 100.00
ThyssenKrupp Mexinox S.A. de C.V., San Luis Potosí, Mexico MXN 4,621,499 2) 100.00
ThyssenKrupp Stainless USA
ThyssenKrupp Stainless USA, LLC, Wilmington, DE 19808, USA USD 1 100.00
Shanghai Krupp Stainless
Shanghai Krupp Stainless Co., Ltd., Pudong New Area/Shanghai, PR China CNY 2,618,815 2) 60.00
ThyssenKrupp Stainless International
ThyssenKrupp Stainless International GmbH, Krefeld 26 100.00
ThyssenKrupp Eurinox Paslanmaz Çelik Servis Merkezi A.S., Istanbul, Turkey 1,049 100.00
ThyssenKrupp SILCO-INOX Szervizközpont Kft, Bátonyterenye, Hungary HUF 765,980 100.00
ThyssenKrupp Stainless Benelux B.V., Rotterdam, Netherlands 18,151 100.00
ThyssenKrupp Stainless DVP, S.A., Barcelona, Spain 5,344 100.00
ThyssenKrupp Stainless France S.A., Paris, France 4,864 100.00
ThyssenKrupp Stainless International (Guangzhou) Ltd., Guangzhou, PR China USD 9,500 100.00
ThyssenKrupp Stainless International (HK) Ltd., Hongkong, PR China HKD 5 2) 100.00
ThyssenKrupp Stainless Polska Sp.z o o., Dabrowa Gómricza, Poland PLN 33,499 100.00
ThyssenKrupp Stainless UK Ltd., Birmingham, United Kingdom GBP 100 100.00
1) included under IFRS rules
2) end of year not September 30

A. CONSOLIDATED SUBSIDIARIES as at September 30, 2008
ThyssenKrupp VDM
ThyssenKrupp VDM GmbH, Werdohl
ThyssenKrupp (Guangzhou) Nickel Metal Trading Ltd., Guangzhou, PR China
ThyssenKrupp VDM Australia Pty. Ltd., Mulgrave, Victoria, Australia
ThyssenKrupp VDM Austria Gesellschaft m.b.H., Vienna, Austria
ThyssenKrupp VDM Benelux B.V., Dordrecht, Netherlands
ThyssenKrupp VDM Canada Ltd., Markham, Canada
ThyssenKrupp VDM Hongkong Ltd., Hongkong, PR China
ThyssenKrupp VDM Italia S.r.l., Sesto San Giovanni, Italy
ThyssenKrupp VDM Japan K.K., Tokyo, Japan
ThyssenKrupp VDM Korea Co. Ltd., Seoul, Korea, Republic
ThyssenKrupp VDM Mexico S.A. de C.V., Naucalpan de Juárez, Mexico
ThyssenKrupp VDM S.A.R.L., Rueil-Malmaison, France
ThyssenKrupp VDM (Schweiz) AG, Basel, Switzerland
ThyssenKrupp VDM UK Ltd., Claygate, Esher, United Kingdom
ThyssenKrupp VDM USA, Inc., Reno/Nevada, USA
B. NON-CONSOLIDATED SUBSIDIARIES as at September 30, 2008
ThyssenKrupp Acciai Speciali Terni
ThyssenKrupp sTainless aG ThyssenKrupp Group shareholdings
Currency
AUD
CAD
HKD
JPY
KRW
MXN
CHF
GBP
USD
Capital stock
in €1,000
or foreign
currency
31,620
470
2,000
50
51
300
10 2)
10
30,000
100,000
550
120
100
60
600
Share of
capital %
Terni - Società per l'Industria e l'Elettricità s.r.l., Terni, Italy 10 100.00
ThyssenKrupp VDM
VDM-Unterstützungskasse GmbH, Werdohl 26 100.00
C. EQUITY INTERESTS VALUED BY THE EQUITY METHOD (*=JOINT VENTURE) as at September 30, 2008
ThyssenKrupp Acciai Speciali Terni
Euroacciai S.r.l., Sarezzo (BS), Italy
Ilserv S.r.l., Terni, Italy
Terni Frantumati S.p.A., Terni, Italy
ThyssenKrupp Mexinox
Fischer Mexicana S.A. de C.V., Puebla, Mexico* MXN 108,544 2) 50.00
D. NON-CONSOLIDATED SUBSIDIARIES (*=JOINT VENTURE) as at September 30, 2008
ThyssenKrupp VDM
MOL Katalysatortechnik GmbH, Merseburg 77 2) 20.12
1) included under IFRS rules
2) end of year not September 30
1,500 2)
1,924 2)
930 2)
98.04
100.00
100.00
100.00
100.00
100.00
99.98
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
30.23
35.00
21.00
57

58
Supervisory Board
Dr. Ulrich Middelmann, Bochum Chairman of the Supervisory Board
Vice Chairman of the Executive Board
of ThyssenKrupp AG
Markus Bistram 1) , Dinslaken Vice Chairman of the Supervisory Board
Trade Union Secretary IG Metall Executive Committee,
Düsseldorf office
Ingo Adomat, Krefeld Vice Chairman of the Works Council
of ThyssenKrupp Nirosta GmbH, Krefeld
Gerd Bendiks, Unna Chairman of the General Works Council
of ThyssenKrupp VDM GmbH, Unna
Prof. Dr.-Ing. Wolfgang Bleck, Aachen Chair and head of the institute for metallurgy,
Aachen College of Technology
Dr. Jürgen Claassen, Essen Executive Vice President and Head
of Corporate Communications and Strategy at ThyssenKrupp AG
Manfred Grein, Diez Director Corporate Development, Public Relations
and Executive Bureau, ThyssenKrupp Stainless AG
Ralf Heppenstiel, Eschenburg Chairman of the Works Council of ThyssenKrupp Nirosta GmbH,
Dillenburg plant/Vice Chairman of the General Works Council
of ThyssenKrupp Nirosta GmbH
Ulrich Hocker, Düsseldorf Manager-in-Chief of Deutsche Schutzvereinigung
für Wertpapierbesitz e.V.
Andreas Hügelow 2) , Frankfurt Trade Union Secretary IG Metall Executive Committee, Frankfurt
Bernd Kalwa, Krefeld Chairman of the General Works Council
of ThyssenKrupp Nirosta GmbH,
Vice Chairman of the Group Works Council of ThyssenKrupp AG,
Chairman of the Works Council
of ThyssenKrupp Nirosta GmbH, Krefeld
Ralf Klose, Neuenrade Chairman of the Works Council and Vice Chairman
of the General Works Council of ThyssenKrupp VDM GmbH, Werdohl
Dr. Karl-Ulrich Köhler, Mülheim an der Ruhr Chairman of the Executive Board of ThyssenKrupp Steel AG
and member of the Executive Board of ThyssenKrupp AG
Prof. Dr. Reiner Kopp, Aachen Professor emeritus, chair and institute for plastic deformation,
Aachen College of Technology
Marcello Malentacchi, Genf, Switzerland Secretary General of the International Metal Workers Federation
Michael Pieper, Hergiswil, Switzerland Chairman of the Executive Board of Franke Holding AG
Prof. Dr. Michael Pohl, Bochum Executive director of the institute for materials – materials testing,
Ruhr University Bochum, faculty for mechanical engineering
Dieter Pützhofen, Krefeld Former Lord Mayor of the City of Krefeld
Karl-Heinz Salm, Monheim Chairman of the Works Council
of ThyssenKrupp Nirosta GmbH, Düsseldorf
Nikolaus Schmidt 3) , Frankfurt a. M. IG-Metall Executive Committee Frankfurt,
Economy/Technology/Environment Dept.
Dr. Bernd Thiemann, Kronberg im Taunus Partner of management consultancy Leonardo & Co. GmbH & Co. KG
1) Appointed by resolution of Duisburg local court of October 1, 2007.
2) Appointed by resolution of Duisburg local court of September 18, 2008.
3) Died on August 14, 2008.

Magazine
for the 2007–2008 Annual Report
of ThyssenKrupp Stainless AG
---
07
08
Materials for
the future
Stainless steel and high-performance materials
from the Stainless group are helping shape the future
in many areas.
---

60 MaGaZine
stainless steel
Working
at the liMits
ThyssenKrupp nirosTa Materials development
at thyssenkrupp nirosta is a combination of experience,
calculation and vision.
---

stainless steel
MaGaZine
sTainLess sTeeL parTs are immersed in
different-colored solutions to test their properties.
---
61

62 MaGaZine stainless steel
sTainLess sTeeL FroM GerMany DeCoraTes
The WorLD’s TaLLesT BuiLDinG
---
The curtain-wall facade of the building covers an area equivalent
to 17 soccer pitches. To ensure the necessary strength, it features
420 millimeter wide stainless steel strips from ThyssenKrupp
Nirosta, which are fitted on the faces of the story platforms
where they frame the countless glass windows in the building’s
skin. The total of roughly 400 tons of material was produced
by ThyssenKrupp Nirosta, rolled at its Dillenburg plant and
processed by German partner company Strukturmetall.
When selecting the material, the engineers and
designers were guided by several special requirements, such
as resistance to environmental influences, especially given the
high temperatures in the region. It was also important that the
material would not reflect the sun too strongly and disrupt air
traffic at Dubai Airport. “Guaranteeing consistently high surface
quality for this huge facade was a particular challenge,” says Gert
Weiß, head of product service at ThyssenKrupp Nirosta. “The
requirements set by the project developer Emaar in Dubai were
very high. That’s why the client insisted on material and knowhow
from Germany,” adds Helmut Baumgartl, managing director
of Strukturmetall. “German companies enjoy a strong reputation
in the United Arab Emirates for their products, on-time delivery
and subsequent customer service,” confirms chief engineer
Greg Sang.
The WorLD reCorD for the tallest skyscraper has
been held since 2008 by the Burj tower in Dubai, which
is over 800 meters high. Chief engineer greg sang (left) is
one of the key figures in this mammoth project.
---
Construction started in January 2004. If all the concrete
used in the building were shaped into a cube, it would have an
edge length of 61 meters and a weight equivalent to 100,000
elephants. Upon completion, the Tower will have 54 elevators
and offer living and office space to 35,000 people. The Burj Tower
is already being described as a global landmark. And that’s quite
something for the Emirates, where one mammoth project after
another is being realized, such as Waterfront City – a square-

stainless steel
shaped island surrounded by canals housing a city in which
1.5 million people will live and work. Burj Dubai is more than
just a stand-out feature on the skyline. “It’s part of a vision for
this city which stands for the creation of icons, icons which will
demonstrate our ability to construct world-class buildings –
through strong teamwork and innovativeness,” says Sang.
However, the final height of the Tower is still unknown.
During construction work, this is a question that the developers
MaGaZine
have never answered. But there are already postcards in
circulation which allow us to make an estimate – they put the
height of the Tower, compared with the previous tallest buildings
in the world, at over 800 meters. According to official sources,
only two people know what the exact final height will be. One of
them is thought to be the ruler of Dubai, Sheikh Mohammed Bin
Rashid Al Maktoum. ---
63

64 MaGaZine stainless steel
KiTChens are an area where
stainless steel features heavily.
---
MaTeriaLs WiTh reDuCeD niCKeL ConTenT as an
aLTernaTiVe For WhiTe GooDs
---
Nowadays, stainless steel – including the popular NIROSTA 4301
– is an indispensable material in the white goods and sinks sector.
To play an active part in developments on this market and provide
optimum solutions for customers from the household appliance
industry, experts from ThyssenKrupp Nirosta are constantly
researching into new material generations. With costs for some
alloys increasing dramatically, there is an increasing need for lowcost
alternatives. Even though prices, particularly for nickel, eased
significantly toward the end of the reporting period, ThyssenKrupp
Nirosta has developed new, raw material-efficient materials with
which to actively counter future price fluctuations.
One of them is NIROSTA 4640, which offers the same
good properties as the familiar standard material NIROSTA
4301 but has a lower nickel content. Over the decades, NIROSTA
4301 became established as the optimum combination of price,
processability and anti-corrosion properties. Any change in
composition made the material more expensive or completely
altered its properties. Our developers and technicians have now
come up with a solution to this challenge: NIROSTA 4640. Thanks
to an innovative combination of copper, nitrogen and manganese
together with a high chromium content, it was possible to lower
the nickel content from eight or nine percent to 6.5 percent and
thus reduce production costs. At the same time it offers the same
corrosion resistance, formability, weldability and elegance that
customers have admired in NIROSTA 4301 for so long. These
properties open up a wide range of applications: NIROSTA 4640
can be used in appliances, sinks, commercial kitchens, household
goods, cutlery, interior architecture, claddings, motor vehicles
and chemical processing equipment. “As both materials offer the
same properties, customers changing over to the new material
can retain their optimized processing methods while profiting
from the lower material costs. The new material is exactly what
our customers were looking for, and ThyssenKrupp Nirosta is
the sole supplier,” emphasizes Dr. Gabriele Brückner, head of
materials technology at ThyssenKrupp Nirosta.
Another innovation in the field of austenitic stainless
steels is NIROSTA 4618, which has an even lower nickel content
of just 4.5 percent. NIROSTA 4618 also performs convincingly in
areas that were previously the preserve of the standard material
1.4301: Both display comparable levels of tensile strength, yield
strength and elongation. In the case of NIROSTA 4618 this is
made possible by a significantly higher manganese content
and the addition of copper, providing forming behavior which is
comparable to NIROSTA 4301 in terms of both deep drawing and
stretch forming. Due to its chromium content of 16.5 percent, the
anti-corrosion performance of NIROSTA 4618 does not match that
of NIROSTA 4301. With these properties, NIROSTA 4618 is also an
attractive alternative for household goods, commercial kitchens
and sinks.
“Whether it’s 1.4640 or 1.4618 – with these new developments
ThyssenKrupp Nirosta is meeting rising customer demand
for high-quality, cost-efficient materials,” says Gert Weiß, head
of product service at ThyssenKrupp Nirosta: “For example,
NIROSTA 4640 is a low-cost universal steel which matches the
tried-and-tested NIROSTA 4301 in terms of performance. The
price advantage comes to bear in particular when nickel prices
are high. And NIROSTA 4618 offers similar forming properties to
1.4301 and can replace it in many applications.” ThyssenKrupp
Nirosta has developed the new materials to production maturity,
and they are currently being launched. Successful tests have
already been carried out with leading manufacturers of
dishwashers and sinks. ---

stainless steel
neW MaTeriaLs from thyssenkrupp nirosta
provide attractive alternatives to customers from
the white goods sector.
---
MaGaZine
65

66 MaGaZine stainless steel
The appLiCaTions TeChnoLoGy DeparTMenT
at thyssenkrupp nirosta develops new materials for
exhaust systems.
---

stainless steel
speCiaL sTainLess sTeeL MeeTs risinG DeManDs For
eXhausT sysTeMs
---
MaGaZine
“With NIROSTA 4607, ThyssenKrupp Nirosta is meeting increasing customer
demand for high-quality yet cost-efficient materials,” says Stefan Schuberth,
head of technical product service at ThyssenKrupp Nirosta. “With nickel
prices very high at times, manufacturers of auto exhaust systems, who already
make extensive use of stainless steel, have been under severe price pressure.”
The solution: As part of an extensive innovation strategy aimed at saving
raw materials, experts from the company developed a new ferritic material
(NIROSTA 4607) that displays equivalent corrosion resistance properties to the
previous standard material NIROSTA 4301, which contains nickel. Thanks to its
specific composition, the new material costs significantly less. ThyssenKrupp
Nirosta developed this product to market maturity and is now offering it for the
first time on the European market.
“The new material contains no nickel,” explains Schuberth. “So
unlike the nickel-containing stainless steels in widespread use it is completely
independent of nickel prices.” What also makes NIROSTA 4607 so special is
that it is the first European ferritic stainless steel that can match the corrosion
resistance of NIROSTA 4301, which it achieves not only without nickel but also
without molybdenum, another very expensive alloying element. “This allows
our end customers to make major cost savings,” says Schuberth. The new
material can be used wherever the formability of a ferritic stainless steel is
adequate.
But as well as being cost-efficient, this new material has to satisfy
increased requirements: In particular, new engine generations with advanced,
higher-efficiency exhaust technologies generate far higher corrosive and
thermal loads than their predecessors. “The challenge lay in making the
material cost-efficient for our customers while still meeting their high quality
requirements,” says Dr. Gabriele Brückner, head of materials technology at
ThyssenKrupp Nirosta in Düsseldorf-Benrath. “The good solution we have come
up with is primarily down to the expertise and experience of our development
department.” The material delivers not only high corrosion resistance which is
the equal of many commonly used higher-priced materials, but also good hightemperature
strength comparable with the proven high-temperature material
NIROSTA 4509.
These properties make it particularly suitable for use in the hot frontend
areas of the exhaust system. Thanks to the addition of other chemical
elements, the material is also weldable by all methods. “The combination
of high-temperature strength and corrosion resistance is ideal for exhaust
systems with long service lifetimes,” says Dr. Gabriele Brückner. In developing
the material, the company demonstrated its ability to respond quickly and
effectively to changing demands. Weiß: “Thanks to its properties and costefficiency,
we expect our new material to meet with wide acceptance by the
market.“ ---
67

68 MaGaZine
The neW MaTeriaL nirosTa 1.4521
is suitable for drinking water pipes.
---
The riGhT MaTeriaL For DrinKinG WaTer pipes:
neW appLiCaTion For niCKeL-Free sTainLess sTeeL
---
For example, drinking water pipes have traditionally been made from copper,
and in many cases also nickel-bearing stainless steel. With the price of nickel
fluctuating sharply, some manufacturers started to look at alternatives,
such as plastic. “In this situation, we examined the use of lower-priced
stainless steels for these applications,” explains Manfred Buckel, head of
product service at ThyssenKrupp Nirosta. The material needs to satisfy the
following requirements: The steel must not rust, even in unfavorable conditions,
it must have a high-quality surface and be amenable to forming into pipes.
Joints between pipe sections must be secure.
The ferritic stainless steel 1.4521 from ThyssenKrupp Nirosta is a
perfect match for these properties. Although it contains molybdenum, which
is important for corrosion resistance, the material is free of nickel. This grade,
which has been in ThyssenKrupp Nirosta’s portfolio for quite some time, has
now been developed further in collaboration with customers. “The material
was gratefully accepted by the companies. As well as securing the future of
stainless steel drinking water pipes, this also opens up additional market
potential,” says Manfred Buckel from the technical customer advice department
at ThyssenKrupp Nirosta. “For example, the material is also suitable for use in
sprinkler systems and fire extinguisher pipes.”
stainless steel

stainless steel
preVious pipes containing nickel can
now be replaced by the nickel-free stainless steel.
---
MaGaZine
In summer 2007, the Swiss authorities approved the ThyssenKrupp
Nirosta material for use in drinking water pipes. According to Buckel, the lowprice
material is already in widespread and successful use in Switzerland.
Approval has now also been granted in Germany, and ThyssenKrupp Nirosta is
ready: “We adapted our production technology in good time to be able to meet
the rising demand,” says Buckel. ---
69

70 MaGaZine
searChing
for the
Material of
the future
ThyssenKrupp nirosTa how today’s
developers and technicians “design“
high-performance steels.
---
stainless steel

stainless steel
MaGaZine
in The researCh LaBs at
the Düsseldorf-Benrath plant, our specialists
test the different materials.
---
71

72 MaGaZine stainless steel
MaTeriaLs TesTinG
the mechanical properties of the materials
are tested.
WeLDinG poinT
Welding properties are an important criterion
in materials development.
SELECTION
numerous new or improved materials
undergo tests.
roBoT arM
advanced technologies are used
in the tests.

stainless steel
MaGaZine
MaTeriaLs DeVeLopMenT is a CoMBinaTion oF eXperienCe,
CaLCuLaTion anD Vision
---
Success on the market means always coming up with something new. That’s
true of many sectors, and none more than the stainless steel industry. New or
improved materials are a must to meet rising demands in processing and use,
to keep pace with new products and technologies – quite simply to stay ahead
of the competition.
BuT hoW are neW MaTeriaLs DeVeLopeD?
---
Far removed from the alchemy of the Middle Ages or the trial-and-error approach
to the earliest stainless steel metallurgy around 100 years ago, nowadays
knowledge of the mechanisms of modern steels is an exact science. When
today’s materials experts design new steels with outstanding properties, they
do it on a solid scientific basis, using computer-aided processes and advanced
research techniques which permit a detailed insight into the complex inner
workings of today’s high-performance materials.
Modern stainless steel materials need to meet a wide variety of
requirements: fracture-proof at very low temperatures e.g. for liquid gas
transportation, resistant to temperatures up to 1,000 degrees in combustion
engines, non-corrosive to withstand aggressive media, glossy, hygienic and
elegant for aesthetic requirements in kitchens and bathrooms – and at the same
time formable into the most demanding shapes, readily weldable or polishable
for mirror finishes.
Materials experts have to be able to provide the most suitable and most
cost-efficient stainless steel for each requirement. Their extensive knowledge
of material structures and profiles is invaluable in this.
Where do the ideas for new developments come from? Gert Weiß, head
of technical product service at ThyssenKrupp Nirosta, provides the answer:
“Thanks to our presence on the market and our direct contact with customers,
we know what projects they are working on and what contribution we as
materials manufacturers are expected to make. A stainless steel structure is to
be made lighter yet at the same time stronger; the lifetime of a heat-resistant
stainless steel in an exhaust manifold close to the engine is to be extended; the
cycle speeds of highly automated sheet forming processes are to be increased:
These are examples of requirements and inquiries which often push the
materials to their limits.“ ---
73

74 MaGaZine
To Their LiMiTs anD BeyonD –
the materials are subjected to extreme loads.
---
In the next step, the engineers and scientists use computer programs
to identify the ideal composition of a new steel that will deliver the required
extended properties.
“For areas beyond the capacity of the human brain, we have computer
simulation models which can accurately reproduce the complex interactions
of steel structure and steel properties,” says Dr. Gabriele Brückner, head of
materials technology at ThyssenKrupp Nirosta: “We focus not only on the
required end product, but also on environmental, safety and health aspects of
the products and not least economic targets for future marketing efforts.”
Using modern scientific methods and their own experience, our materials
experts can generate predictions and designs that are very close to the
development objective . “It’s a great feeling, and really exciting,” is how Dr.
Gabriele Brückner describes the “birth” of a new stainless steel. “Developers
often drive to the production plant to see how their ‘baby’ is faring in initial
large-scale trials.”
This is where the material shows whether it is suitable for use in
industrial-scale production. ThyssenKrupp Nirosta uses modern, high-performance
production processes which are largely automated, and for reasons
of safety and cost-efficiency it is essential that they run perfectly smoothly.
“Even the most fantastic materials are of no use if they can’t be manufactured
reproducibly and without faults,” says Dr. Gabriele Brückner: “The art of
developing an alloy in such a way that it fits in with production processes calls
for close collaboration with production engineers and the integration of their
know-how from an early stage.”
A material development can finally be regarded as a success if
customers have successfully processed trial deliveries and are convinced that the
innovation will deliver sustained added value. “As well as commercial success
for steel producer and customer, new developments have a further effect,”
says Stefan Schuberth, head of applications technology at ThyssenKrupp
Nirosta: “They also demonstrate our credentials as an innovative, competent
cooperation partner to our customers and cement our position as the Number 1
on the market.”
The time required from initial idea to market launch varies greatly.
“Development time depends to a very large extent on the type of innovation
involved, and of course on the complexity and the commercial aspects of the
stainless steel

stainless steel
The welding properties of the materials are
reviewed in the laboratory.
---
MaGaZine
task at hand,” says Dr. Gabriele Brückner: “If we or the customer are looking for
quick results, for a superior new material for today’s market, then everything
simply has to be done quickly.”
Naturally, the experts at ThyssenKrupp Nirosta also address future
scenarios, the technologies and materials for tomorrow’s market and beyond.
“Then of course we need visions, we have to formulate hypotheses and
constantly hone them, and in these cases development work obviously takes
longer,” says Weiß. “But today’s market becomes yesterday’s market quicker
than you would think.” ---
75

76 MaGaZine stainless steel
inDusTriaL pLanTs
provide applications for the
new superferritic steels.
---
neW VoD ConVerTer aLLoWs proDuCTion oF
hiGh-sTrenGTh speCiaL GraDes
---
As well as developing innovative materials, ThyssenKrupp Stainless also
attaches great importance to using the very latest plant technology. As part of
this strategy, a VOD (Vacuum Oxygen Decarburization) converter was put into
operation at ThyssenKrupp Acciai Speciali Terni in the past fiscal year. This
latest-generation unit, which in contrast to conventional AOD (Argon Oxygen
Decarburization) converters operates in a vacuum for greater efficiency,
constitutes a quantum leap in terms of technology and in many ways represents
a global milestone for this type of equipment. For example, in the interests
of the environment the converter in the Terni meltshop is fitted among other
things with an additional burner which burns the CO gas created during the
decarburization process into CO 2 – which is far less hazardous – before it enters
the atmosphere.
In the vacuum oxygen decarburization process, the carbon/hydrogen
and nitrogen content of high-alloy molten metals is reduced to a minimum
under vacuum. That’s why this technology is also used to improve the quality
of large ingots for Società delle Fucine, a subsidiary of ThyssenKrupp Acciai
Speciali Terni. Forgings up to 500 tons in weight are processed in the VOD
converter to minimize their hydrogen content.

stainless steel
The neW VoD ConVerTer in terni
started operation in spring 2008.
---
MaGaZine
The innovative VOD technology enables ThyssenKrupp Acciai
Speciali Terni to extend its product portfolio in line with market requirements
to include, for example, superferritics, duplex steels and superalloys. In this
context, the Terni plant has developed superferritic steels such as the 470LI
-24Cr which represent a competitive alternative to nickel-bearing steel grades
with high corrosion resistance. Applications for this material include restaurant
equipment, household appliances, industrial plant and shipbuilding. In
applications which do not require very high formability, superferritic steels can
offer a cost-efficient alternative to conventional austenitic grades and enable
customers to plan with greater security with more stable long-term costs. ---
77

78 MaGaZine stainless steel
CoMMerCiaL KiTChens are
a major area of application for
the new materials from italy.
---
superFerriTiC sTainLess sTeeLs FroM Terni
---
An extended product portfolio thanks to the use of innovative technology: In
2008 ThyssenKrupp Acciai Speciali Terni invested in a VOD converter to provide
new ways of exploiting market potential. Work processes have been optimized,
and in particular the company’s portfolio of ferritic steels has been expanded to
include special grades. For example, the Terni plant has been producing new
superferritic steels since mid-2008.
Two of the latest material innovations are 470LI-24 Cr and 460LI-21 Cr.
Potential applications include commercial kitchens, oven hobs, industrial
washing machines, restaurant equipment, inner paneling for elevator cabs,
street furniture and boilers. “Thanks to their unique production process and
their special chemical composition, they offer greater corrosion resistance
than austenitic stainless steels,” says Dr. Alfred Otto, ThyssenKrupp Nirosta
Executive Board member responsible for strategic product development and
thus for product development in the entire Stainless group. The 470LI-24 Cr and
460LI-21 Cr grades are produced as flat-rolled steel. Both deliver outstanding
yield and tensile strengths, good elongation and deep-drawing properties as
well as a uniform and homogeneous microstructure. Dr. Harald Espenhahn,
Executive Board Chairman of ThyssenKrupp Acciai Speciali Terni, emphasizes
the additional advantage of the new AST production route: “By dispensing with
the use of nickel and thanks to the higher yield strength that allows thinner
gauges, the two innovations 470LI-24 Cr and 460LI-21 Cr offer economically
attractive alternatives to the standard materials 316(1.4301) and 304(1.4401).”
Market studies carried out by ThyssenKrupp Acciai Speciali Terni
show significant potential for the new material types on the European market.
Additional demand is expected from the Asian market.
The two newly developed materials were produced for the first time
in the late summer of 2008. In September 2008 ThyssenKrupp AST launched
a national and international advertising campaign to present the two new
innovative materials and other superferritic steels produced in the VOD converter
and market them successfully. ---

stainless steel
eLeVaTor CaBs are a possible area of application
for the new superferritics.
---
MaGaZine
79

80 MaGaZine high-performance materials
sCientists
With an eYe for
the PraCtiCal
ThyssenKrupp VDM the aim of researchers is
to find customized solutions.
---

high-performance materials
MaGaZine
MiLLiMeTer preCision is applied to sheet processing,
such as here in the altena plant.
---
81

82 MaGaZine high-performance materials
enhanCeD perForManCe for power plants
(here in scholven) thanks to the new material from
thyssenkrupp VDM.
---

high-performance materials
MaGaZine
speCiaL aLLoy For The eCo-FrienDLier poWer pLanT
GeneraTions oF The FuTure
---
As part of a team of power plant operators, boiler manufacturers and component
producers, ThyssenKrupp VDM has developed a material which helps boost
the performance of power plants. Modern plants have an energy conversion
efficiency (ratio of energy input to energy output) of around 43 percent.
Increasing temperatures and pressure permits higher conversion efficiencies
which in turn reduce CO2 emissions. Attention is focusing in particular on
so-called 700 degree technology, which will operate at temperatures of 700
degrees and a pressure of 350 bar. “This new power plant generation needs
materials capable of meeting the extremely high requirements involved,” says
Dr. Jutta Klöwer, head of research and development at ThyssenKrupp VDM in
Werdohl. “We have developed an alloy which has already proved its suitability
in extensive testing.”
Nickel-based superalloys are already an established part of the gas
turbines used in combined cycle power plants. The development of 700°C
technology means they must now also be used in the boilers and steam
turbines of coal-fired power plants. In collaboration with power plant operators
and manufacturers, ThyssenKrupp VDM developed the special alloy Nicrofer
5520CoB-alloy 617b specifically for use in power plant boilers. It is based on
the gas turbine material Nicrofer 5520Co-alloy 617. “By adding boron and
controlling the content of strength-enhancing elements such as aluminum,
titanium and cobalt, we succeeded in increasing the permissible mechanical
stresses by 20 percent,” says Dr. Jutta Klöwer. “That allows engineers to use
thinner-walled parts.”
Pipes and components made from this alloy are already being used
in a test plant in North Rhine-Westphalia – construction work on the first 700
degree power plant is scheduled to start in 2010. “The next step is to validate
the cost-effective production of standard components from this alloy,” says
Dr. Jutta Klöwer. “This will focus in particular on the extremely high quality
requirements made by power utilities on boiler materials.” But research work
is continuing: Engineers are already working on materials for the next-butone
generation of coal-fired power plants. And not without reason: By the year
2030, global demand for electricity is expected to double. Innovations in the
technology and materials of fossil-fueled power plants will play a key role in
protecting the environment and conserving resources. ---
83

84 MaGaZine high-performance materials
CLean enerGy in the form
of heat and electricity is supplied
by fuel cells.
---
enerGy sourCe oF The FuTure
---
Fuel cells, the innovative energy source of the future, supply
clean energy in the form of heat and electricity. Extremely
energy-efficient, these ‘mini-power plants’ are on the advance.
The German hydrogen and fuel cell association DWV expects fuel
cells to be used ‘very soon’ in portable electronic devices such
as laptops, phones and chargers, and predicts a breakthrough in
the auto industry ‘before the turn of the decade.’ Crofer 22 H, a
new material from ThyssenKrupp VDM, is a key material in this
promising technology.
The best known form of fuel cell is the polymer fuel
cell, which uses pure hydrogen and atmospheric oxygen. A
second variant, the solid oxide fuel cell (SOFC), also known as
high-temperature fuel cell, can be operated both with hydrogen
and with diesel. “The advantage of this technology is obvious:
Hydrogen is not yet available everywhere, but diesel fuels are,”
says Dr. Heike Hattendorf, project manager at ThyssenKrupp
VDM. “Applications include auxiliary units to provide additional
electricity in cars, trucks, ships and mobile homes as well as
household power supplies and power plants.”
SOFC technology places great demands on the hightemperature
strength of the materials used: Unlike polymer
fuel cell technology, where operating temperatures are only
between 80 and 100 degrees Celsius, temperatures in SOFC fuel
cells can climb as high as 900 degrees. This is where Crofer 22 H
comes in, as it can provide the required strength at these high
temperatures. It displays considerably higher strength than the
proven alloy Crofer 22 APU – a joint success developed by experts
from ThyssenKrupp VDM and the Jülich Research Center.

high-performance materials
neW GeneraTions of fuel cells have been developed
in collaboration with the Jülich research Center.
---
In the fuel cells, Crofer 22 H is used in the so-called
interconnectors. These are layers between the individual cells that
connect them into efficient “stacks”. “The ‘H-Type’ interconnectors
allow the use of thinner material in the fuel cells which cuts costs.
In addition, the SOFC stacks are more robust, as the more stable
H-interconnectors prevent bulging during heating and cooling,”
says Robert Steinberger, fuel cell project manager at the Jülich
Research Center. “Bulging can lead to short-circuits or blockages
in the gas channels which would render the fuel cell inoperative.
Crofer 22 H combines the advantages of Crofer 22 APU with
greater strength and thus robustness.”
MaGaZine
The full list of requirements for interconnector materials
is a long one. “In addition to high-temperature strength they
need to be electrically conductive, corrosion-resistant, easy to
process, and have high mechanical stability and load capacity.
In addition there must be no mechanical stresses between
the interconnectors and the individual cells,” says Dr. Heike
Hattendorf. “So the steel used in the interconnectors needs to
have a similar coefficient of expansion to the ceramic materials
the individual cells are made of.” Crofer 22 H meets all these
challenges and has now been produced for the first time as coil
and sheet. ---
85

86 MaGaZine high-performance materials
in The heaTinG ConDuCTor LaB
in Werdohl, the new material is put to
the test.
---
sMaLL Wire ConVerTs enerGy inTo heaT
---
Clothes dryers, air conditioning systems, kettles and hair dryers all have one
thing in common: They all need heating conductors to convert electricity from
the wall socket into thermal energy. These conductors are used wherever heat
is required quickly, i.e. without lengthy warm-up times. Though small, they
have to withstand high loads: For example, when a clothes dryer is switched
on, the electricity inside the unit passes through the conductor and heats
it. When the machine is switched off, the conductor cools again to room
temperature – and that makes great demands on the material. Dr. Heike
Hattendorf, project manager at ThyssenKrupp VDM: “In the lab we work with
temperatures up to 1,200 degrees Celsius to accelerate lifetime testing. In later
use, the temperatures are generally lower and so the conductors have a longer
lifetime.” With the newly developed Cronifer 40B, ThyssenKrupp VDM now has
another material in its portfolio which is ideal for use in heating conductors.
The length of time a heating conductor “survives” in an electrical
device depends on the material it is made of, the kind of device and the way
it is used. A good heating conductor material needs to deliver a high lifetime
and high electrical resistivity. That means the material must offer the highest
possible resistance to the flow of electricity through it, forcing the energy
to make more “effort” to get through the wire – the greater the “effort”, the
hotter the wire becomes. At the same time, the material must not melt when
it heats up.
Some applications also call for high shape stability. The US household
appliance industry is a good example. Unlike in Europe, clothes dryers and
air conditioning systems in America use so-called “open heating elements”
consisting of suspended wires which are only supported at a few points. It is
important that these wires do not sag during operation as this could cause a
short circuit.
Heating conductors are manufactured from wire, ribbon or foil
strip and then processed into heating elements. Wires, for example, are coiled
into spirals. However, they should not be confused with the filaments used

high-performance materials
The heaT of the wire is essential for
many household appliances.
---
MaGaZine
in light bulbs. Though they have the same shape, they perform different
functions: In light bulbs, the objective is to convert the electrical energy into as
much white light as possible.
Suitable materials for heating conductor wires include nickelchromium
alloys with added silicon and iron-chromium-aluminum alloys.
“Heating conductor alloys like Cronifer II first became available in the 1930s
and have been developed continuously ever since,” explains Jürgen Webelsiep,
head of quality assurance in the wire product unit at ThyssenKrupp VDM.
“With Cronifer 40B we have developed a further heating conductor material
which delivers top performance in terms of lifetime and dimensional stability
but costs less than the previously used Cronifer II as it has a significantly lower
nickel content.”
This is a major triumph for the company’s researchers. Cronifer II
comprises 60 percent nickel. In the new Cronifer generation, the nickel content
has been reduced to only 37.5 percent yet lifetimes are still four-fifths those
of Cronifer II. “This development was made possible by the recognition that
lifetime and shape stability are influenced not only by the nickel content but
also by other elements such as chromium, silicon, carbon and nitrogen. So
while reducing the nickel content of Cronifer 40B, in parallel we fine-tuned
the ratios of various other elements, “ says Dr. Heike Hattendorf.
Cronifer 40B is patent pending. The material has already been
produced in large volumes. Manufacturers of heating elements have been sent
specimens of Cronifer 40B wire and are currently performing their own tests on
the new material. ---
87

88 MaGaZine
high-performance materials
the Path to
high-PerforMan
Materials
ThyssenKrupp VDM is researching today to develop
the materials of tomorrow.
---

Ce
high-performance materials
MaGaZine
in The WeLDinG LaB TesTs
are CarrieD ouT on The MaTeriaL’s
proCessinG properTies.
---
89

90 MaGaZine high-performance materials
in The researCh LaB in altena,
the materials are tested in caustic fluids
for resistance to wet corrosion.
---
ThyssenKrupp VDM is researChinG ToDay To
DeVeLop The MaTeriaLs oF ToMorroW
---
“One of ThyssenKrupp VDM’s most popular products is Nicrofer
5923 hMO, which is mainly used in the chemical industry and in
environmental technology. It’s a top-quality high-performance
material that gives corrosion processes no chance.” Dr. Jutta
Klöwer, head of research and development at ThyssenKrupp VDM,
points to a glass jar in the chemical lab filled with a bright green
fluid. “That’s ‘Green Death’,” she says. “A solution that destroys all
materials. Except Nicrofer 5923 hMo.”
Green, blue, yellow and red: material death by wet
corrosion has many colors in the ThyssenKrupp VDM lab.
Chemical lab worker Sebastian Maus stands in front of a row of
plastic canisters, taps the required amounts of the caustic fluids
into a flask and submerges a small metal plate in the solution. In
consultation with the respective project managers from the R&D
department, Maus decides which solutions should be used and
whether the materials are to be tested in them for 24 hours or a
whole month. The project managers are involved in all stages of
the research process, which for a major new development lasts an
average of two years.
The process always starts with intensive discussions
with customers. “We define the exact requirements a new material
has to meet in advance – for example what kind of acid it must
be resistant to or in what gas and at what temperature it is to be
used,” says Dr. Heike Hattendorf, project manager in the R&D
department at ThyssenKrupp VDM. “The aim is always to find a
tailored solution that meets our customers’ requirements.”
Discussions and contract negotiations are followed by
extensive literature and patent searches. “After sifting through all

high-performance materials
The eXperTs from thyssenkrupp VDM
need a great deal of experience to assess welding
properties.
---
the information already available on the market, we have an initial
idea for a new alloy composition,” Dr. Hattendorf continues.
And then the computer comes into play. “We simulate
the manufacture of a new material to be ideally prepared for real
production,” explains Dr. Jutta Klöwer.
The success of the computer simulations shows that this
is the right approach. Thanks to the computer, there are no more
“total flops” during laboratory-scale melting. “But we still get the
odd surprise,” continues Dr. Klöwer. “Basically we are trying to add
to existing knowledge rather than reinvent the wheel. But we work
with 40 different alloying elements, so it’s impossible to predict
absolutely everything in advance. Sometimes a test series delivers
completely unexpected results. On occasions we’ve discovered
previously unknown material properties in this way.”
On average it takes six months of theory before the first
series of laboratory melts can be carried out and the new materials
tested in the corrosion labs. Once the right alloy composition has
been confirmed, things get really exciting.
“To optimize our knowledge pool, we also cooperate
closely with the Fraunhofer and Max-Planck Institutes, the
universities of Aachen, Braunschweig and Freiberg as well as
other German universities with activities in materials technology,”
says Dr. Jutta Klöwer. One positive side-effect of this cooperation
is that the company establishes contact with young talents who
can be tied to ThyssenKrupp VDM at an early stage as interns or
undergraduate employees.
MaGaZine
ThyssenKrupp VDM is currently working on around
30 research projects, in which it also profits from the knowledge
available at other ThyssenKrupp companies. “We make increasing
use of synergies. Just now we are working with Uhde on a crosssegment
project for a material to be used in coal gasification,
and in our colleagues from ThyssenKrupp Nirosta we have found
partners in the area of research into flue gas desulfurization,”
explains Dr. Klöwer.
Customers appreciate ThyssenKrupp VDM’s creativity.
“In Europe in particular we have a very strong position,” says
Dr. Bernd de Boer from the applications technology department
at ThyssenKrupp VDM. “Another of our strengths is that we are
always very close to our customers and establish direct contacts
very quickly. One service that is very well received is the sending
of specimens. We can have a selection of ThyssenKrupp VDM
material specimens sent to customers for initial test purposes
within two days. The customers then get back to us with their
additional requirements.”
“We are scientists with an eye for the practical and are
proud of every development that comes onto the market,” adds Dr.
Heike Hattendorf.
The next major practical challenge? Together with the
Max-Planck Institute in Düsseldorf, the research department
at ThyssenKrupp VDM is already working on an alternative to
Nicrofer 5923 hMo. ---
91

92 MaGaZine
high-performance materials
Weight reDuCtio
With titaniuM
ThyssenKrupp TiTaniuM environmental requirements
are widening the range of applications for this
high-performance material.
---

n
high-performance materials
MaGaZine
in The TurBines of modern jumbo jets,
titanium is now an essential material.
---
93

94 MaGaZine high-performance materials
in eXhausT sysTeMs for motor vehicles,
titanium helps reduce weight.
---
MaTeriaLs FroM ThyssenKrupp TiTaniuM
MaKe Cars eCo-FrienDLier
---
The future limits to be placed on CO 2 emissions are forcing auto manufacturers
to rethink their designs. They have recognized that particular improvements
can be achieved by reducing body weight. “There’s an increasing acceptance
that more has to be invested in lightweight construction,” says Dr. Jürgen
Kiese, head of research and development at ThyssenKrupp Titanium in Essen.
“The advantages offered by titanium are so great that it is worth using the
material in cars despite its higher costs.” Exhaust systems made of titanium
can frequently cut weight by tens of kilograms. Specially for this application,
ThyssenKrupp Titanium has developed the alloy Ti-X which includes the
relatively low-cost elements iron and silicon.
“Unlike commercially pure titanium, which cannot be used at very
high temperatures, the new material is a high-temperature alloy that is also
resistant to oxidation and can be used at temperatures up to 750 degrees
Celsius,” explains Kiese. To enhance the alloy for use at higher temperatures
up to 1000 degrees Celsius, ThyssenKrupp Titanium developed a thin aluminum
cladding which is applied to the alloy as a special protective layer. “This
layer protects the material against oxidation under high thermal loads and
makes it suitable for use in the hot parts of exhaust systems close to the
engine,” says Kiese.
Titanium has the same strength as steel, so the advantage of
production use in auto construction would be its significantly lower weight,
which in turn helps reduce emissions. For manufacturers of exhaust systems,
who are currently testing the new material, this opens up unprecedented
opportunities. That’s why Kiese is positive about the future: “As the material is
also particularly low in price, we see great opportunities to increase its use in
automotive applications.“ --

high-performance materials
in airCraFT new materials from
thyssenkrupp titanium provide added safety.
---
MaGaZine
speCiaL aLLoys For airCraFT TurBines
proViDe aDDeD saFeTy
---
A new development from ThyssenKrupp Titanium is contributing to greater
safety in aircraft: Production routes for ingots of the special titanium alloy Ti-
6Al-4V have been improved under a research project. This has made it possible
to produce a particularly fine-grained and low-textured – i.e. homogeneous –
material for use in the high-pressure compressors of aircraft turbines. These
parts, which are located in the center of a turbine and are used to compress the
air, have to withstand severe loads. “Compared with conventional materials,
the optimized structure of the alloy delivers significantly improved mechanical
properties,” explains Dr. Jürgen Kiese, head of research and development at
ThyssenKrupp Titanium in Essen. “Strength and formability are particularly
enhanced.” Both attributes serve to make the material more robust, for it is
vital that these critical parts never fail.
“The material is also easier to test, which is a further boost to safety,”
says Kiese. “Ultrasound testing can identify even the smallest defect in the
alloy.” This is a major step forward for ThyssenKrupp Titanium in the aerospace
industry, where all materials and parts are subjected to lengthy test phases.
Customers are also showing great interest. One of them is MTU Aero
Engines, a leading German manufacturer of jet engine components whose
products are to be found in one in three passenger aircraft, be they Airbus or
Boeing. The company is currently carrying out tests on the titanium alloy. In
parallel with this, the various steps such as heating and forming are being
examined by computer simulation at the RWTH technical university in Aachen.
Upon completion of the project, it will be possible to produce titanium forgings
using the new material in the near future. Kiese: “We’re pleased to be able to
contribute to making aircraft even safer, and we’re confident that there will be
a big market for the material.“ ---
95

96 MaGaZine high-performance materials
enerGy By TanKer
---
Rising gas prices and dependency on a handful of exporting
nations are impacting European energy supplies. The search
for alternatives is in full swing. And that’s why in recent years
one segment of the global gas industry in particular has been
gaining in importance: Liquefied Natural Gas (LNG). By 2020,
the volume of trade in LNG is expected to have doubled to
around 350 million tons per year. By 2030, LNG will account for
around 25 percent of total gas consumption – in 2007 the figure
was just 4 percent. Unlike normal gas, which is transported by
pipeline over distances of up to 3,200 kilometers, ocean tankers
are used to ship LNG over longer distances. This expands the
group of possible exporters to include the Middle East, North and
West Africa and Australia. As the importance of LNG grows, so
in TerMinaLs the gas is regasified.
---
too do requirements for materials which can meet the special
conditions of LNG transportation. ThyssenKrupp Titanium and
ThyssenKrupp VDM have recognized the potential of this growth
market and can supply special materials which are suitable
for use in the pipes for loading and unloading the tankers with
liquefied gas, in chemical liquefaction equipment and also in the
coolers for the tankers’ diesel engines.
Before LNG can be shipped by sea, the natural gas first
has to be liquefied. This is done by cooling the gas to minus 163
degrees Celsius in special coolers up to 60 meters high, in which
the gas is reduced to one six-hundredth of its original volume for
transportation. Around 250 tons of titanium are used for various
items of equipment in these coolers. The next step is to pump

high-performance materials
speCiaL FreiGhTers transport the liquefied
natural gas across the oceans. the plant and pipes for
lng technology require titanium and nickel alloys.
---
the liquefied gas into tankers with capacities of up to 140,000
cubic meters, which ship it to the importing countries. Plate heat
exchangers are used to cool the oil of the ships’ diesel engines
during transportation. “20 tons of titanium per ship are used for
this,” explains Helmut Jost, head of marketing at ThyssenKrupp
Titanium in Essen. “Titanium’s special resistance to seawater
corrosion makes it the only material suitable for use in these
coolers.” At the port of destination the LNG is unloaded in special
terminals, after which the liquid gas is regasified and fed into the
supply grid. “The draft of the big tankers makes it impossible for
them to move right up to the shore,” explains Dr. de Boer, head
of applications technology at ThyssenKrupp VDM in Werdohl.
“So pipelines several kilometers long extend out to sea from
the land.” Unlike conventional pipes, which rest on supports
above sea level, new developments make it possible to lay the
pipes either below or on the sea bed. Compared with the raised
structures, these pipelines are more environment-friendly, lower
in cost and offer greater safety.
The pipelines comprises a combination of various
materials in several “layers”: The outer pipe is a concrete-clad
steel pipe, while the inner pipe is made from the VDM material
Pernifer 36. Depending on the pipe diameter, ThyssenKrupp VDM
supplies up to 200 tons of plate for one kilometer of pipeline,
and some export terminals require pipeline lengths of over 15
MaGaZine
kilometers. Various stainless steel processors then produce
longitudinal-welded pipes from the material in diameters of 24
to 36 inches. “The material is ideal for this application,” says Dr.
de Boer. “Its combination of extremely high cryogenic toughness
and very low coefficient of thermal expansion ensure that long
pipelines can be laid without the need for bends or expansion
bellows.” The latter would normally be necessary because the
temperature of the outer pipe is always close to the ambient
temperature, while that of the inner pipe varies between ambient
temperature and minus 165 degrees Celsius. To avoid heat losses,
there is an additional insulating layer between the two pipes.
ThyssenKrupp VDM has also addressed the specific requirements
of these applications and has developed special production routes
and a welding filler metal which allow the production of extremely
long pipe segments. This meets the high safety requirements of
the terminal operators and reduces production costs.
Experts predict that LNG’s share of the global gas
industry will rise significantly over the next 25 years. “There are
currently 146 tankers under construction,” says Jost. “Demand
for corresponding terminals and gas liquefaction plants is also
growing continuously. This is a future market for our material and
our company.” Dr. de Boer is also optimistic: “We expect a steady
increase in customer orders and are pleased to be making a contribution
to the development of alternative energy sources.“ ---
97

98
ThyssenKrupp sTainLess:
VieW ThrouGh an eLeCTron MiCrosCope
---
This unusual view from the laboratories of ThyssenKrupp VDM in Unna shows
acid residues on a metallic surface.

Contact
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47166 Duisburg / Germany
Telephone: +49 (0) 203 52 0
Fax: +49 (0) 203 52 45132
Central Division
Public Relations / Executive Affairs
Telephone: +49 (0) 203 52 45130
Fax: +49 (0) 203 52 45132
E-Mail: stainless@thyssenkrupp.com
Design
CCS Werbeagentur GmbH
Photos
Ralf Bauer, Emanuel Bloedt,
Karsten Enderlein, Rainer Kaysers,
Manos Meisen, Tania Reinicke a. o.
This report can also be downloaded
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TK Stainless AG
Kaiser-Wilhelm-Straße 100
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