TK Stainless
TK Stainless
TK Stainless
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<strong>Stainless</strong> + Alloys<br />
Our materials are shaping the future<br />
---<br />
Annual Report<br />
07<br />
08<br />
<strong>TK</strong> <strong>Stainless</strong>
<strong>Stainless</strong> + Alloys<br />
Our materials are shaping the future<br />
---<br />
The research laboratories of ThyssenKrupp <strong>Stainless</strong><br />
work intensely to develop new and improved materials.<br />
Our material innovations provide less expensive<br />
alternatives to previous materials, allow our customers<br />
to move forward and expand their business, and open<br />
up new uses for our materials. <strong>Stainless</strong> steel and<br />
high-performance alloys from the <strong>Stainless</strong> group offer<br />
solutions to the questions of tomorrow and are actively<br />
shaping our future life worlds.
Contents<br />
03 --- ThyssenKrupp <strong>Stainless</strong> in figures (leaflet)<br />
07 --- Letter from the Executive Board Chairman<br />
08 --- Executive Board<br />
10 --- ThyssenKrupp <strong>Stainless</strong> portrait<br />
01<br />
Strategic focus<br />
13 --- Strategy<br />
03<br />
Employees<br />
25 --- Measures to build the<br />
ThyssenKrupp <strong>Stainless</strong> USA location<br />
25 --- Health & safety<br />
27 --- Securing young talent<br />
27 --- Training<br />
05<br />
Research<br />
and development<br />
37 --- New reduced-nickel and<br />
nickel-free materials<br />
38 --- VOD unit at<br />
ThyssenKrupp Acciai Speciali Terni<br />
38 --- New high-performance nickel<br />
and titanium alloys<br />
07<br />
Operating companies/<br />
Further information<br />
49 --- Operating companies<br />
56 --- ThyssenKrupp Group shareholdings<br />
58 --- Supervisory Board<br />
02<br />
04<br />
ThyssenKrupp sTainless aG Contents<br />
Market environment/<br />
Business performance<br />
17 --- Market environment<br />
19 --- Business performance<br />
Capital expenditures<br />
31 --- <strong>Stainless</strong> flat products<br />
34 --- High-performance materials<br />
06<br />
Sustainability/<br />
Environmental protection<br />
43 --- Sustainability<br />
45 --- Environmental protection<br />
Magazine<br />
Materials for tomorrow<br />
60 --- Working at the limits<br />
70 --- Searching for the material of the future<br />
80 --- Scientists with an eye for the practical<br />
88 --- The path to High-Performance materials<br />
92 --- Weight reduction with titanium<br />
5
6<br />
Jürgen Fechter<br />
Executive Board Chairman of<br />
ThyssenKrupp <strong>Stainless</strong> AG and<br />
Executive Board Member of ThyssenKrupp AG<br />
---
To the business partners,<br />
friends and employees of our company<br />
ThyssenKrupp sTainless aG Letter from the Executive Board Chairman Brief<br />
The stainless steel industry has had to contend with an extremely difficult market environment in recent<br />
months. Increasing energy prices, high and volatile raw material prices and cheap imports of stainless flat<br />
products to Europe from Asia in particular have created uncertainty among our customers, leading to a<br />
weaker market and falling revenues. The global financial crisis beginning in the late summer also impacted<br />
the real economy, resulting in a further collapse in orders. These unfavorable conditions significantly<br />
affected the performance of the <strong>Stainless</strong> group in the past fiscal year and continue to overshadow our<br />
business. In view of the global financial crisis and its serious effects on the real economy, ThyssenKrupp<br />
<strong>Stainless</strong> AG will increase its efforts to respond to unforeseeable consequences with adequate steps.<br />
Within the <strong>Stainless</strong> group we are working hard to improve the unsatisfactory situation. This includes<br />
pressing ahead with the measures launched in connection with the strategic development of the <strong>Stainless</strong><br />
segment. Thanks to large capital investment ThyssenKrupp Acciai Speciali Terni with its integrated mill<br />
in Terni will improve its competitive position significantly. The construction of the <strong>Stainless</strong> plant in Alabama<br />
is proceeding well on schedule. Despite exceeding the investment budget, we continue to believe that<br />
ThyssenKrupp <strong>Stainless</strong> USA will play a major role on the North American stainless market and make<br />
its contribution to the earnings of the <strong>Stainless</strong> group. With ThyssenKrupp Nirosta we have stepped up<br />
our customer focus drive. The expansion of our service center operations, like at EBOR Edelstahl in<br />
Sachsenheim, allows us to increase value added and respond more effectively to customer needs. In the<br />
high-performance alloys area we have significantly improved our market position with the startups of the<br />
open-die forge at ThyssenKrupp VDM in Unna and the electron beam furnace at ThyssenKrupp Titanium<br />
in Essen.<br />
A central element in securing and strengthening our position on the market is the development of new<br />
and improved materials. Continuously expanding our research activities in this area and widening the range<br />
of uses of our materials is a major priority within the ThyssenKrupp Group and at ThyssenKrupp <strong>Stainless</strong><br />
in particular. The importance of this is demonstrated by the establishment of a new Executive Board<br />
directorate for strategic product development at ThyssenKrupp Nirosta, which will also coordinate the<br />
development of stainless steel grades and applications within the <strong>Stainless</strong> group.<br />
This year’s ThyssenKrupp <strong>Stainless</strong> annual report contains a series of outstanding examples of new and<br />
improved products from the research laboratories of ThyssenKrupp <strong>Stainless</strong>. These provide less expensive<br />
alternatives to previous materials, allow our customers to move forward and expand their business, and<br />
open up new uses for our materials.<br />
The ThyssenKrupp <strong>Stainless</strong> 2007/08 annual report gives you an insight into our global business and<br />
strategic investments. By reading it you will learn more about the world of our materials.<br />
Yours<br />
JürGen FechTer<br />
Executive Board Chairman of ThyssenKrupp <strong>Stainless</strong> AG<br />
7
8<br />
Executive Board
03 01<br />
02<br />
01 --- Jürgen H. Fechter<br />
Member of the Executive Board of ThyssenKrupp AG<br />
Chairman of the Executive Board of ThyssenKrupp <strong>Stainless</strong> AG<br />
Jürgen Fechter, born 1962 in Namibia, began his career in<br />
1981 as an assistant auditor at Price Waterhouse. He qualified<br />
as a Chartered Accountant in South Africa in 1986. In 1989<br />
Mr. Fechter joined Middelburg Steel & Alloys <strong>Stainless</strong> (Pty)<br />
Ltd in Middelburg/South Africa, initially as controller for R&D<br />
projects and later as sales controller. When Columbus <strong>Stainless</strong><br />
(Pty) Ltd. was founded in 1991, he was appointed to the board<br />
of the operating company with responsibility for controlling<br />
and accounting. In 1994 he was promoted to the board of<br />
the Columbus holding company. At the beginning of 1997,<br />
Mr. Fechter moved to the <strong>Stainless</strong> unit of the ThyssenKrupp<br />
Group, initially as President (sole managing director) of the<br />
<strong>Stainless</strong> subsidiary ThyssenKrupp Mexinox S.A. de C.V. in<br />
San Luis Potosí, and from October 1998 as member of the<br />
Executive Board of ThyssenKrupp <strong>Stainless</strong> AG. At the<br />
beginning of 2000 he was appointed Chairman of the Executive<br />
Board of ThyssenKrupp Nirosta GmbH with responsibility<br />
for sales and purchasing. In 2002 Mr. Fechter also assumed<br />
responsibility for worldwide sales within the <strong>Stainless</strong> group<br />
and a year later was appointed Vice Chairman of the Executive<br />
Board of ThyssenKrupp <strong>Stainless</strong> GmbH. Since April 1, 2004<br />
Jürgen H. Fechter has been Chairman of the Executive Board<br />
of ThyssenKrupp <strong>Stainless</strong> AG and Member of the Executive<br />
Board of ThyssenKrupp Steel AG. In connection with the<br />
restructuring of the steel operations of ThyssenKrupp AG<br />
and the dissolution of the intermediate holding company<br />
ThyssenKrupp Steel AG he was appointed Member of the<br />
Executive Board of ThyssenKrupp AG on October 1, 2005.<br />
In addition, Jürgen H. Fechter is a member of the board of<br />
Stahlinstitut VDEh and a member of the board of directors<br />
of the International <strong>Stainless</strong> Steel Forum (ISSF).<br />
02 --- Dr. Michael Rademacher<br />
Vice Chairman of the Executive Board of<br />
ThyssenKrupp <strong>Stainless</strong> AG<br />
ThyssenKrupp sTainless aG Executive Board<br />
After studying economics at the Ruhr University in Bochum,<br />
Dr. Michael Rademacher (born 1955) began his career working<br />
as a management consultant, mainly in the field of financial<br />
and investment controlling. From 1985 to 1988 he worked as<br />
a research assistant in the faculty of industrial manufacturing<br />
at the Ruhr University, Bochum. In 1988 he joined Thyssen<br />
Industrie AG, Essen, performing various duties within the<br />
ThyssenKrupp Group until 2002, ultimately as head of the<br />
Corporate Controlling department at ThyssenKrupp AG.<br />
Effective May 01, 2002 he was appointed to the Executive Board<br />
of ThyssenKrupp <strong>Stainless</strong> GmbH. On April 1, 2005 he moved<br />
to the Executive Board of ThyssenKrupp Automotive AG before<br />
being appointed Vice Chairman of the Executive Board of<br />
ThyssenKrupp <strong>Stainless</strong> AG on October 1, 2006. Dr. Rademacher<br />
is head of the Schmalenbach Gesellschaft’s “Integrated<br />
Corporate Planning” task force. Since May 2006 he has been a<br />
guest lecturer at Ruhr University Bochum.<br />
03 --- Klaus-Peter Hennig<br />
Chief Human Resources Officer/Labor Director<br />
of ThyssenKrupp <strong>Stainless</strong> AG,<br />
Member of the Executive Board and Labor Director of<br />
ThyssenKrupp Nirosta GmbH<br />
Klaus-Peter Hennig (born 1948) trained as an industrial clerk<br />
at the firm of Gildemeister in Bielefeld, Germany before going<br />
on to study business administration and social economy at the<br />
University of Bielefeld. From 1977 to 1990 Klaus-Peter Hennig<br />
worked in various capacities for the North Rhine Westphalia<br />
district of the German Trades Union Federation (DGB). From<br />
1990 to 1994 he was head of department in the Düsseldorf office<br />
of the executive committee of IG Metall (metalworkers’ union).<br />
In 1994 he was appointed member of the Executive Board and<br />
labor director of ThyssenKrupp Nirosta GmbH. Since October 01,<br />
2002 Klaus-Peter Hennig has additionally been a member of the<br />
Executive Board of ThyssenKrupp <strong>Stainless</strong> AG.<br />
9
10<br />
ThyssenKrupp <strong>Stainless</strong> in brief<br />
ThyssenKrupp <strong>Stainless</strong> is an independent segment of the ThyssenKrupp Group. The segment holding<br />
company ThyssenKrupp <strong>Stainless</strong> AG brings together all ThyssenKrupp’s activities in stainless steel<br />
flat-rolled products and high-performance materials, i.e. nickel alloys and titanium. It carries out<br />
management and coordination functions for the globally active business units allocated to it.<br />
The business units allocated to ThyssenKrupp <strong>Stainless</strong> AG in the area of stainless steel are:<br />
ThyssenKrupp Nirosta in Germany, ThyssenKrupp Acciai Speciali Terni in Italy, ThyssenKrupp Mexinox in<br />
Mexico and the joint venture Shanghai Krupp <strong>Stainless</strong> in China. Since 2007 ThyssenKrupp <strong>Stainless</strong> USA<br />
has been building a new stainless plant in the US state of Alabama. ThyssenKrupp <strong>Stainless</strong> International<br />
is responsible for all stainless distribution and service activities of the <strong>Stainless</strong> group where these are<br />
not directly covered by the production companies. Operations in the area of high-performance materials<br />
include ThyssenKrupp VDM, a producer of nickel materials, and ThyssenKrupp Titanium – part of the<br />
ThyssenKrupp Acciai Speciali Terni group – a leading European producer of titanium and titanium alloys.<br />
The <strong>Stainless</strong> group is world market leader in stainless flat-rolled products and holds leading positions<br />
on the markets for high-performance materials. The materials produced in the <strong>Stainless</strong> group meet the<br />
most exacting requirements in terms of properties, quality and precision. The operating companies in the<br />
<strong>Stainless</strong> group see themselves as dependable partners to their global customers in, for example, the<br />
automotive, appliance, electronics and aerospace industries. To serve these customers efficiently with<br />
high-quality products and services close to their production sites, ThyssenKrupp <strong>Stainless</strong> already has<br />
production sites, service centers and sales bases worldwide and will continue to expand this network.<br />
Research and development activities focus on finding solutions to specific customer problems through<br />
improved material properties, attractive and resistant surfaces and process innovations with the aim of<br />
continuously improving quality, minimizing the use of resources, and reducing the environmental impact<br />
of production processes. Constant optimizations help ThyssenKrupp <strong>Stainless</strong> continuously improve the<br />
efficiency of its production and the high quality of its products.<br />
KEY INDICATORS THYSSENKRUPP STAINLESS AG<br />
2006/2007 2007/2008<br />
Order intake million € 7,684 7,460<br />
Sales million € 8,748 7,420<br />
EBITDA million € 1,034 363<br />
EBIT million € 871 214<br />
EBT million € 777 126<br />
Capital expenditures million € 327 387<br />
ROCE in % 22,75 5,79<br />
ThyssenKrupp Value Added (<strong>TK</strong>VA) million € 507 – 119<br />
Crude steel production 1,000 t 2,522 2,493<br />
<strong>Stainless</strong> cold-rolled production 1,000 t 1,688 1,664<br />
Employees (September 30) 12,182 12,212<br />
Note: The above key indicators relate to ThyssenKrupp <strong>Stainless</strong> as a segment of<br />
the ThyssenKrupp Group.
01<br />
Strategic focus<br />
sTainless sTraTeGy<br />
One pillar is the expansion of our position on the NAFTA market<br />
and associated construction of the plant in Alabama.<br />
---
01<br />
Strategic focus<br />
ThyssenKrupp <strong>Stainless</strong> AG is focused on the goal of further<br />
cementing and expanding its market position. To achieve this,<br />
both the stainless steel business and the high-performance<br />
alloy business are being expanded.
Strategic focus<br />
The goal of ThyssenKrupp <strong>Stainless</strong> AG is to further cement and expand<br />
its excellent market position by constantly developing new applications for<br />
its materials. Our growth strategy is based on three main pillars:<br />
In the stainless steel business the emphasis is on securing competitiveness<br />
in our core European market.<br />
Our position as a global stainless producer is to be strengthened by further<br />
penetration of the attractive NAFTA market.<br />
In the area of high-performance alloys, we intend to expand our business<br />
in nickel alloys and titanium.<br />
ThyssenKrupp sTainless aG Strategic focus<br />
To achieve these growth targets, ThyssenKrupp <strong>Stainless</strong> is modernizing and expanding its existing<br />
operations and building a new integrated stainless production facility in the USA. In addition to<br />
systematically further developing our performance enhancement programs, we are also investing<br />
heavily in optimizing and expanding capacity at our operating companies. At the group’s European<br />
companies alone, investment projects with a total volume of several hundred million euros are<br />
currently under way.<br />
At ThyssenKrupp Acciai Speciali Terni, the aim is to concentrate production on the Terni location<br />
after the closure of the Turin plant. The relocation of production to Terni is already well advanced. With<br />
the recommissioning of relocated and modernized equipment from Turin, the ramp-up of new production<br />
lines and the further expansion of the finishing department, the Terni plant will be developed into a<br />
world-class integrated stainless mill. At the other stainless companies of the group, too, significant<br />
investment has been made in modernizing the plants and in particular expanding processing capacity.<br />
In the area of high-performance alloys, the expansion of remelting capacity and the commissioning of<br />
an in-house forging line at the Unna plant of ThyssenKrupp VDM has further optimized the production<br />
structure and improved operating performance. This has given us access to demanding and attractive<br />
segments such as aviation and plant construction. A state-of-the-art electron beam furnace has gone<br />
into operation at the Essen location of ThyssenKrupp Titanium.<br />
A central element of the segment’s strategy is the construction of a new stainless mill as part of a<br />
joint project with ThyssenKrupp Steel, work on which began in autumn 2007. The <strong>Stainless</strong> segment’s<br />
direct entry in the USA will permit the sustained expansion of its business in North America. The group<br />
is already active on the North American stainless market, with a market share of around 12 percent<br />
in the USA alone. The market is primarily served by our Mexican subsidiary ThyssenKrupp Mexinox,<br />
backed by imports from our mills in Germany, Italy and China. Marketing is carried out via our Chicagobased<br />
sales company, which is already well established.<br />
ThyssenKrupp <strong>Stainless</strong> aims to gain increased recognition as a supplier of a wide range of highquality<br />
materials, from stainless steel to nickel alloys to titanium, and as a service provider for all<br />
aspects of these materials through its global network of production and sales companies and service<br />
centers. That means supplying customers with solutions for diverse applications, offering product<br />
support services - for example through various forms of processing - and being an effective local<br />
13
14<br />
partner. The aim of our service offensive is to improve our value added and thus increase our sales<br />
and earnings potential. To achieve this and cement our leading market position, all companies of the<br />
segment are expanding their processing capacities, building further service centers and optimizing<br />
their operating performance.<br />
THYSSENKRUPP STAINLESS BUSINESS UNITS AND SUBSIDIARIES:<br />
ThyssenKrupp Nirosta<br />
(Germany)<br />
ThyssenKrupp<br />
Nirosta<br />
Präzisionsband<br />
(D)<br />
—<br />
EBOR<br />
Edelstahl<br />
(D)<br />
—<br />
smb<br />
Chromstahl<br />
(D)<br />
—<br />
ThyssenKrupp<br />
Nirosta North<br />
America<br />
(USA)<br />
ThyssenKrupp Acciai Speciali Terni<br />
(Italy)<br />
Terninox<br />
(I)<br />
—<br />
Tubificio<br />
di Terni<br />
(I)<br />
—<br />
ThyssenKrupp<br />
Titanium<br />
(I/D)<br />
—<br />
Società delle<br />
Fucine<br />
(I)<br />
—<br />
ThyssenKrupp<br />
AST USA<br />
(USA)<br />
ThyssenKrupp Mexinox<br />
(Mexico)<br />
ThyssenKrupp<br />
Trading<br />
(MEX)<br />
—<br />
ThyssenKrupp<br />
Mexinox USA<br />
(USA)<br />
ThyssenKrupp <strong>Stainless</strong> USA<br />
(USA)<br />
ThyssenKrupp <strong>Stainless</strong> International<br />
(Germany)<br />
ThyssenKrupp<br />
Silco Inox<br />
(HU)<br />
—<br />
ThyssenKrupp<br />
<strong>Stainless</strong> UK<br />
(GB)<br />
—<br />
ThyssenKrupp<br />
<strong>Stainless</strong><br />
France<br />
(F)<br />
—<br />
ThyssenKrupp<br />
<strong>Stainless</strong> DVP<br />
(E)<br />
—<br />
ThyssenKrupp<br />
Eurinox<br />
(TR)<br />
—<br />
ThyssenKrupp<br />
<strong>Stainless</strong><br />
Guangzhou<br />
(CN)<br />
—<br />
ThyssenKrupp<br />
<strong>Stainless</strong><br />
Polska<br />
(PL)<br />
—<br />
ThyssenKrupp<br />
<strong>Stainless</strong><br />
Benelux<br />
(NL)<br />
Shanghai Krupp <strong>Stainless</strong><br />
(PR China)<br />
ThyssenKrupp VDM<br />
(Germany)<br />
ThyssenKrupp<br />
VDM USA<br />
(USA)
02<br />
Market environment/<br />
Business performance<br />
QualiTy<br />
The high demands of our customers<br />
are the benchmark for our work.<br />
---
02<br />
Market environment/<br />
Business performance<br />
The market environment for stainless steel flat products has<br />
become more difficult lately due to various factors. This has<br />
impacted our business performance. ThyssenKrupp <strong>Stainless</strong> is<br />
therefore focused on working towards volume and structural<br />
improvements.
Market environment<br />
ThyssenKrupp sTainless aG Market environment<br />
At the beginning of the last year the worldwide demand for rust-, acid- and heat-<br />
resistant stainless steel flat products was stable. Finally the world economy as well<br />
as the price fluctuation in the commodity markets damped down demand and<br />
subsequently orders. According to preliminary estimates the global consumption<br />
slightly decreased in 2008.<br />
On the European market, demand was initially stable in 2008. After orders and deliveries dropped to<br />
a very low level in the prior year due to massive imports from Asia, high inventories at stock-holding<br />
distributors and sharp fluctuations in the price of the alloying element nickel, the situation improved<br />
perceptibly in the 4th calendar quarter 2007, only to deteriorate again significantly from the middle<br />
of the 2nd calendar quarter 2008. This was mainly due to the recovery in demand from distributors,<br />
gradually rebuilding the inventories they had run down due to the declining nickel price. European<br />
producers succeeded in raising base prices again through to the 2nd calendar quarter 2008. After that,<br />
however, the traditionally weak summer months and the clouding of the economic outlook resulted in<br />
a renewed sharp decline in base prices, and order intake decreased significantly.<br />
On average, third-country imports were lower than a year earlier, mainly due to a decrease in<br />
imports from Asia, particularly China, Taiwan and Korea. However, imports from these countries<br />
started to rise again continuously from the beginning of the 2nd quarter 2008, gaining momentum<br />
later as a result of the increasing underutilization of Chinese production capacities.<br />
MARKET FORECAST COLD-ROLLED STAINLESS FLAT PRODUCTS in 1,000 t<br />
2005 2006 2007 2008* 2009*<br />
Western Europe 2,929 3,618 3,170 3,147 3,075<br />
Eastern Europe 227 303 319 341 349<br />
NAFTA 1,664 1,918 1,606 1,393 1,366<br />
China 3,747 4,500 5,033 4,753 5,240<br />
Rest of Asia 3,816 4,044 4,033 4,319 4,257<br />
Rest of world 1,046 1,203 1,239 1,329 1,369<br />
Total 13,430 15,586 15,399 15,282 15,655<br />
Source: CRU December 2008, *estimate<br />
17
18<br />
Alloy prices again significantly affected customer behavior. Having reached an all-time high in<br />
mid-2007, the nickel price declined sharply and by mid-March 2008 had stabilized at a relatively low<br />
level of 27,000 – 33,000 US dollars per ton, which initially had a positive impact on demand. A renewed<br />
downward trend from early May caused stainless customers to once again adopt a wait-and-see<br />
approach. By contrast, chromium prices climbed substantially due to the scarcity of global supply.<br />
Whereas for chromium-nickel steels (austenitics) this increase was offset by the lower nickel price, the<br />
rising price of both chromium and steel scrap had a noticeable impact on chromium steels (ferritics).<br />
The alloy surcharge for these grades increased by more than 100% in the reporting year.<br />
In the NAFTA region, the general weakness of the economy subdued demand for stainless steel,<br />
leading to a decline in volumes and base prices. In China and other Asian markets, demand for stainless<br />
steel products remained high, but high inventories and overcapacities at producers prevented an<br />
improvement in prices, which were down from the prior year.<br />
In the market for nickel alloys, the initial rise in alloy prices and the strength of the euro against<br />
the US dollar negatively impacted the competitiveness of European producers. In addition, competitors<br />
with production facilities in the US dollar zone increasingly forced their way onto the European<br />
markets. Demand in the European chemicals industry remained stable to slightly positive in line with<br />
expectations. In the oil and gas industry, the previously lively level of inquiries dropped sharply and<br />
planned projects were slow to get off the ground.<br />
Increasing capacities at titanium producers and a temporary decline in demand for titanium<br />
products, especially in the aerospace sector, led to a marked change in the situation on the market.<br />
The supply problems of aircraft manufacturers Boeing and Airbus and the oil price situation also had<br />
a negative impact. By contrast, the market for industrial applications is relatively stable.<br />
<strong>Stainless</strong> steel scrap is fed back<br />
into the production process.<br />
EBOR Edelstahl in Sachsenheim delivers products<br />
tailored to customer requirements.
Business performance<br />
In fiscal 2007/2008 the volume of orders received by the <strong>Stainless</strong> segment<br />
increased by around a quarter to 2.3 million tons. The prior-year period was<br />
marked by a pronounced reluctance to buy on the part of distributors and<br />
users. This was caused by extremely high imports from Asia, high inventory<br />
levels at distributors and service centers, and drastic fluctuations in the<br />
nickel price. Due to low base and nickel prices, the value of orders received<br />
decreased slightly. The value of new orders for nickel alloys also fell as a<br />
result of the low nickel price. The value of orders for titanium mill products<br />
likewise decreased.<br />
ThyssenKrupp sTainless aG Business performance<br />
At 2.3 million tons, total <strong>Stainless</strong> deliveries in the reporting period were 3% up from the prior year.<br />
Shipments of nickel alloys were down slightly, while deliveries of titanium increased. Sales decreased<br />
by 15% to €7.4 billion, mainly as a result of lower selling prices.<br />
Following the record earnings of the prior year, the <strong>Stainless</strong> segment saw its profits slump by<br />
€651 million to €126 million. The main reasons for this were significantly lower average base prices and<br />
partial underutilization of capacity in the first and fourth fiscal quarters. Thanks to the slight market<br />
recovery at the end of 2007, earnings improved initially but this improvement came to a halt at the end<br />
of the 3rd fiscal quarter, mainly as a result of weaker demand from distributors. This led to falling base<br />
prices and corresponding production cutbacks through to the end of the fiscal year.<br />
Due to the dramatic price falls for nickel and alloyed scrap and the above-mentioned price<br />
developments on the selling markets, earnings were down significantly from the previous year.<br />
The drop in earnings was mitigated by successful inventory management and income from the fair<br />
value measurement of derivatives used to hedge against commodity price risks from outstanding<br />
purchasing transactions and inventories. In addition, the continuing strength of the euro weakened the<br />
competitiveness of our exports to the US dollar region. Higher electricity costs, particularly in Italy and<br />
Germany, also weighed on earnings.<br />
ThyssenKrupp Nirosta<br />
The ThyssenKrupp Nirosta business unit benefited in Europe from improved demand from distributors<br />
and still relatively stable sales to end customers in the reporting period. The generally positive trend<br />
was reflected in a strong increase in the volume of orders received. However, at €3.2 billion the sales of<br />
the business unit were down from the prior year due to lower prices. The significant decline in earnings<br />
was mainly caused by a much weaker price level.<br />
19
20<br />
ForGinG operaTions<br />
ThyssenKrupp Acciai Speciali Terni<br />
At ThyssenKrupp Acciai Speciali Terni, too, the weakening of demand for stainless steel products over<br />
the year, above all from service centers and distributors, was reflected in order intake. This demand<br />
weakness was caused among other things by high volumes of imports coming into Europe, which<br />
impacted the Italian stainless market in particular. The sales of the Italian business unit slipped to<br />
€2.7 billion due to lower shipments and decreased transaction prices. In addition, there were<br />
production losses at the Turin plant after the accident in December 2007. ThyssenKrupp Acciai Speciali<br />
Terni posted a loss for 2007/2008. The drastic decline in earnings was mainly due to a weaker Italian<br />
stainless steel market. Earnings were additionally impacted by the extra costs associated with the<br />
decision by the EU Commission not to extend energy compensation payments. In addition, costs were<br />
incurred by the commenced relocation of production from Turin to Terni and from the fire in Turin in<br />
December 2007. The forging operations exceeded their prior-year earnings thanks to a stable market<br />
environment. At ThyssenKrupp Titanium the volume of new orders increased strongly. Shipments were<br />
also higher, while sales fell slightly.<br />
ThyssenKrupp Mexinox<br />
ThyssenKrupp Mexinox held its own in a difficult market environment in the NAFTA region. Orders were<br />
up slightly from the prior year in terms of volume but decreased in value terms due to lower prices.<br />
Sales fell to €591 million. The substantial drop in profits was due to the weak state of the US market.<br />
However, the stable situation on the Mexican market weakened these negative effects.<br />
Shanghai Krupp <strong>Stainless</strong><br />
At Shanghai Krupp <strong>Stainless</strong> order volumes were down from the prior year. Sales were lower at €284<br />
million, and profits also fell significantly. The deterioration was due to a continuing weak and difficult<br />
market environment in China - caused by increasing overcapacities.<br />
ThyssenKrupp <strong>Stainless</strong> International<br />
The ThyssenKrupp <strong>Stainless</strong> International business unit recorded a fall in the volume and value of<br />
new orders due to the difficult market environment and low transaction prices. Sales decreased to<br />
€1.2 billion. Following a profit in the prior year, the business unit made a loss. The significant drop in<br />
earnings resulted from the generally weak state of the international stainless steel markets, which led<br />
to a decrease in margins and shipments and from inventory depreciation due to strong commodity<br />
prices.<br />
ThyssenKrupp VDM<br />
In the nickel alloy business of ThyssenKrupp VDM order intake and sales were lower than a year earlier.<br />
Wire production was successfully relocated from Bärenstein to Werdohl. With the construction of the<br />
new forge, which began operation in May 2008, ThyssenKrupp VDM widened its range of products in<br />
particular for the aerospace industry. The business unit was unable to maintain its prior-year profit<br />
level. On the European markets, increased exports by US suppliers - favored by the weak US dollar<br />
- resulted in high price pressure. In addition, the strong euro meant that prices for exports to the US<br />
dollar region were no longer competitive.
innovaTive maTerials<br />
New applications, innovative products<br />
and process technologies are<br />
being developed to optimize<br />
our market position<br />
Risk management<br />
ThyssenKrupp sTainless aG Business performance<br />
In addition to the usual cyclical risks, the <strong>Stainless</strong> segment faces risks associated with the way the<br />
markets respond to existing or anticipated overcapacities at stainless producers in Asia. The supply<br />
and demand situation in China in particular represents a risk.<br />
Numerous measures are in place to counter these risks. We have extended our value chain towards<br />
the higher-margin end-customer business, further intensified customer relationships, expanded<br />
our custom services, and improved our quality and delivery performance. We are also countering<br />
increasing competitive pressure by developing new applications for stainless steels and nickel alloys,<br />
by developing innovative products made from these materials, and by using modern, cost-saving<br />
process technologies.<br />
In the construction of the stainless steelmaking and processing plant in Alabama, USA, the costs<br />
are being strictly controlled to minimize the risk of further budget overruns. The implementation of this<br />
project will also help increase our market penetration in the USA.<br />
The risks associated with the availability and prices of raw materials, particularly nickel, chromium<br />
and alloyed scrap, are minimized by corresponding contracts and hedging mechanisms. <strong>Stainless</strong><br />
is preparing for the risk of substitution of stainless flat-rolled products in response to high alloying<br />
element prices by developing alternative material concepts. In addition, the continuous development<br />
and introduction of technical and organizational measures ensures that potential sources of risks in the<br />
production process are eliminated or reduced.<br />
In view of the risk of fire and natural phenomena such as storms, hail and flooding, the segment<br />
significantly expanded its risk management activities in the area of property insurance. In cooperation<br />
with the insurance companies, joint, binding risk provision standards were drawn up, compliance with<br />
which is reviewed in regular audits. We developed measures to minimize the risk of fire in cooperation<br />
with the insurance companies and external experts. The implementation of these measures is under<br />
way.<br />
On November 20, 2007, the EU Commission ruled that a law adopted by the Republic of Italy in 2005<br />
granting ThyssenKrupp Acciai Speciali Terni among other companies certain benefits in the purchase<br />
of electricity was inadmissible state aid. Together with the Republic of Italy we filed a complaint against<br />
this decision with the court of first instance. If the Commission’s ruling is upheld, this could have a<br />
material effect on the consolidated financial statements of ThyssenKrupp.<br />
Outlook<br />
In the market for stainless flat products, inventories at distributors and service centers have been<br />
decreasing for some months. However, our customers’ inventories of finished products have been<br />
increasing due to the weaker level of consumption. As prices for our raw materials fall, i.e. scrap and<br />
the main alloying metals such as chromium, nickel and molybdenum, and the fear of a recession grows<br />
as a result of the global financial crisis, the level of new orders is significantly lower than expected. The<br />
weak order intake will result in production cutbacks at most of our operations. In addition, falling base<br />
prices due to the weak market will weigh heavily on earnings.<br />
The world economy will be in a phase of recession in 2009. The financial crisis will have a negative<br />
effect on consumption and capital spending. How far the rescue programs introduced by the<br />
governments of many countries will stimulate the economy cannot be judged at the present time.<br />
21
22<br />
Efficiency improvement programs<br />
In fiscal year 2007/08 all companies of the <strong>Stainless</strong> segment worked on implementing and further<br />
developing their improvement programs.<br />
The <strong>Stainless</strong> segment significantly increased the number of improvement projects carried out<br />
under the <strong>TK</strong> best program. In the course of the fiscal year over 160 new projects were launched,<br />
with the result that the project landscape now comprises over 650 projects. The largest share of new<br />
projects was registered under the “Operations & Quality” and “Sales & Service” initiatives. The <strong>TK</strong> best<br />
program makes significant contributions to earnings at ThyssenKrupp <strong>Stainless</strong>.<br />
The “Sales & Service” initiative launched in the second half of fiscal 2006/07 was successfully<br />
implemented at all business units of the <strong>Stainless</strong> segment thanks to the activities of two experts.<br />
The experts supported the companies with operating project work on site and tailored workshops<br />
and training sessions in Germany and abroad. As a result, the companies had the benefit of practical<br />
methodology and know-how transfer.<br />
The “Value Driven Mobilization” program (VDM) initiated by ThyssenKrupp VDM verifiably met its<br />
targets in the course of the fiscal year - a year ahead of schedule.<br />
The introduction of the Six Sigma project management tool in the ThyssenKrupp <strong>Stainless</strong><br />
segment was accelerated, initially in the German-speaking region. ThyssenKrupp <strong>Stainless</strong> currently<br />
has altogether 31 certified employees. These activities strengthen the employees’ problem-identifying<br />
and problem-solving competences and enable them to conduct strict project management.<br />
ThyssenKrupp Mexinox<br />
maintained its market position.<br />
For Shanghai Krupp <strong>Stainless</strong> the market environment<br />
in China remains difficult.
03<br />
Employees<br />
services<br />
In our service centers our products are processed<br />
according to customer requirements.<br />
---<br />
23
03<br />
Employees<br />
The number of employees in the <strong>Stainless</strong> group fell slightly<br />
year-on-year. As the new production location in the US state of<br />
Alabama is expanded, the workforce will gradually grow again.<br />
In summer 2008 the first employees from the USA came to<br />
Germany for training.
Employees<br />
ThyssenKrupp sTainless aG Employees<br />
At September 30, 2008 ThyssenKrupp <strong>Stainless</strong> AG had 12,212 employees worldwide,<br />
30 more than at the end of the 2006/07 fiscal year. The workforce will grow further as<br />
work on the new plant in Alabama progresses.<br />
Measures to build the ThyssenKrupp <strong>Stainless</strong> USA location<br />
Numerous measures are under way to recruit and train new employees for the ThyssenKrupp <strong>Stainless</strong><br />
USA production location in Calvert (Alabama). The local agency AIDT has been called in to help with<br />
the recruitment of blue collar workers. Altogether more than 15,000 applications have been received so<br />
far. Up to September 30, 2008 over 650 candidates had been invited to take part in training. The first<br />
six training classes have completed their final examinations.<br />
After the theory, the core team (approx. 120 employees) will spend several months undergoing<br />
practical training. These courses are being held at ThyssenKrupp <strong>Stainless</strong> locations in Germany,<br />
Italy and Mexico. The employees take part in shift work on site. They have the support of a mentor<br />
who passes on his experience and expertise to promote the transfer of best practices. Since mid-<br />
July 2008 groups of US maintenance employees have been traveling to Germany to complete four<br />
months of training at ThyssenKrupp Nirosta’s cold-rolling mills in Krefeld and Düsseldorf-Benrath<br />
and Dillenburg.<br />
Health and safety<br />
Occupational safety is a key priority in the <strong>Stainless</strong> segment. In the past fiscal year numerous new<br />
projects and measures were implemented to support the “zero accidents” strategy.<br />
SAFE-Award<br />
The SAFE Award (Safety At-Work For Employees) was launched in the <strong>Stainless</strong> segment in fiscal<br />
year 2007/08. The first award was presented at the end of the contest. The aim of the contest is to<br />
acknowledge the contributions made by all ThyssenKrupp <strong>Stainless</strong> employees to improve occupational<br />
safety and to promote the development of a sustained safety culture. Groups of employees had the<br />
opportunity to nominate completed or ongoing projects. An independent panel of judges and health<br />
and safety experts from the business units selected the ten best projects, for which prizes were<br />
awarded. In addition, the overall winners - a team from ThyssenKrupp VDM in Altena - also received a<br />
trophy. At the start of the new calendar year the second safety contest will be launched.<br />
25
26<br />
“Zero accidenTs”<br />
Under this Group initiative,<br />
numerous managers took part<br />
in a series of seminars on<br />
health and safety<br />
EMPLOYEES BY COMPANY<br />
2006/2007 2007/2008<br />
ThyssenKrupp <strong>Stainless</strong> AG 62 59<br />
ThyssenKrupp Nirosta 4,665 4,682<br />
ThyssenKrupp Acciai Speciali Terni 3,354 3,180<br />
ThyssenKrupp Mexinox<br />
ThyssenKrupp <strong>Stainless</strong> USA<br />
Shanghai Krupp <strong>Stainless</strong> 546 522<br />
ThyssenKrupp <strong>Stainless</strong> International 436 453<br />
ThyssenKrupp VDM 1,772 1,801<br />
ThyssenKrupp <strong>Stainless</strong> 12,182 12,212<br />
“Health and safety for executives” seminars<br />
Under the Group initiative “zero accidents” aimed at further improving health and safety in the<br />
ThyssenKrupp Group, managers from all levels of the segments’ German operations have and will<br />
continue over the next few years to take part in a series of seminars on health and safety. To ensure that<br />
the specific requirements of the <strong>Stainless</strong> segment are taken sufficiently into account, managers must<br />
complete defined health and safety training modules developed in association with the employers’<br />
insurance associations. So far more than 100 executives from ThyssenKrupp <strong>Stainless</strong> have taken part<br />
in the one-and-a-half day basic training seminar.<br />
Further initiatives in the business units<br />
At Shanghai Krupp <strong>Stainless</strong> promoting communication about safety at work is a key element of<br />
the health and safety improvement process. Following the example of ThyssenKrupp Mexinox, an<br />
electronic information board displaying current “Health, Safety and the Environment” activities and<br />
an update on the number of accident-free days has been installed. In addition, a poster campaign<br />
has been launched in the production plant to illustrate safe work conduct, with a different subject<br />
being featured each month. The system is based on the so-called “SOAR Card program”, a process<br />
in which each employee can use cards to register and report unsafe conduct they have observed at<br />
work. Recommended changes are entered on the cards which are then collected in specially provided<br />
mailboxes and evaluated. So far around 10,000 SOAR cards have been submitted and recorded.<br />
Fire in Turin<br />
On December 6, 2007 a tragic fire occurred in the Turin plant of ThyssenKrupp Acciai Speciali Terni<br />
which claimed the lives of seven employees. ThyssenKrupp expressed its sympathy and condolences<br />
to the victims’ families, among other things by attending all four funeral services. ThyssenKrupp Acciai<br />
Speciali Terni undertook various measures to support the bereaved families. This included immediate<br />
financial assistance and the establishment of an education fund for the children.<br />
Within ThyssenKrupp <strong>Stainless</strong> work to improve health and safety in the plants is an ongoing<br />
process. A global taskforce has been set up to address fire protection. In addition, numerous new<br />
measures have been introduced at ThyssenKrupp Acciai Speciali Terni.<br />
1,347<br />
–<br />
1,361<br />
154
ThyssenKrupp sTainless aG Employees<br />
Terni health and safety initiative<br />
Following the tragic accident in Turin, representatives of ThyssenKrupp Acciai Speciali Terni in Italy<br />
together with national and local authorities signed a safety protocol. On the basis of this agreement,<br />
contractors are being closely integrated into ThyssenKrupp Acciai Speciali Terni’s health and safety<br />
strategy; among other things their employees are obligated to take part in health and safety training<br />
measures. Furthermore, additional investment has been carried out to optimize fire protection. For<br />
example, the plant fire service fleet has been expanded and additional fire prevention equipment<br />
installed. In cooperation with the local fire department, fire drills are being carried out at all operations.<br />
To promote accident prevention, all new employees at ThyssenKrupp Acciai Speciali Terni take part in<br />
a training week focusing on health and safety and fire protection. This training course far exceeds the<br />
requirements of Italian law. In particular, training focuses on the use of personal protective gear and<br />
on learning about the general and specific risks in the workplace.<br />
Securing young talent<br />
The options for the strategic recruitment of new employees are determined by the interplay between<br />
conditions on the recruitment market and the attractiveness of an employer. <strong>Stainless</strong> technology<br />
is highly specialized, which means that the number of experts available is limited. To increase<br />
ThyssenKrupp <strong>Stainless</strong>’s attractiveness as an employer, we are intensifying our existing collaborations<br />
with schools and expanding our fellowship programs. In addition to participating in the Group’s<br />
“Recruiting” initiative, intensive university marketing and the consistent pursuit of our networking<br />
policy are further key aspects of our strategy. ThyssenKrupp Nirosta’s program to secure young talent<br />
is a prime example. Under the heading “Iron man wanted”, graduates were specifically recruited to<br />
junior management positions. On completion of a selection procedure, a number of engineers and<br />
economics graduates gained an unlimited employment contract.<br />
Training<br />
Strategic personnel development to promote sustained employee support is a key priority within the<br />
ThyssenKrupp <strong>Stainless</strong> segment. In the past fiscal year around 37,000 days were invested in training<br />
over 21,000 people. As well as communicating methodology and international competencies, key<br />
areas were technical seminars and courses relating to occupational safety, health management and<br />
environmental protection.<br />
Apprenticeship training makes a key contribution to securing young talent at ThyssenKrupp<br />
<strong>Stainless</strong>. On September 30, 2008 a total of 422 young men and women were undergoing apprenticeship<br />
training at the German companies of the <strong>Stainless</strong> group. Compared with the year before the training<br />
rate of the German subsidiaries increased from 6.1 to 6.5 percent. The increased recruitment of industrial<br />
In mid-2008 the first new employees from the USA<br />
came to Germany for training.<br />
Advanced training of the<br />
teams (here in Poland) is a<br />
major priority.<br />
27
28<br />
younG and old aT nirosTa<br />
The JAN project resulted in<br />
measures which are now being<br />
implemented<br />
and commercial trainees is also an expression of our proactive approach to demographic change. In<br />
response to the increased number of employees entering retirement and the reduced number of young<br />
employees, ThyssenKrupp Nirosta has launched the “JAN” program, which stands for “Young and<br />
Old at Nirosta”. The program comprises ten projects, reflecting its integrated approach, which focus<br />
among other things on knowledge management, workplace design and personnel development. The<br />
implementation phase (“JAN AKTIV”) for the 80 individual measures developed from 35 operating<br />
goals since the project was launched in November 2005 began in March 2008.<br />
Personnel development programs at ThyssenKrupp <strong>Stainless</strong><br />
Under a module of the segment-wide personnel development process initiated in fiscal 2005/06, an<br />
introductory event is held to prepare junior executives from all companies for work in an international<br />
group. The aim of this event is to motivate newcomers to the <strong>Stainless</strong> group to show commitment in<br />
their work not just for their own company but also with and for ThyssenKrupp <strong>Stainless</strong>. Plant tours,<br />
workshops, presentations on the segment and an evening get-together with members of the Executive<br />
Board help participants gain an all-round impression of the segment.<br />
Six Sigma training<br />
To enhance project management and problem-solving capabilities, “Six Sigma” methodology has<br />
been taught in the ThyssenKrupp Group for many years and is increasingly used in practical projects.<br />
“Six Sigma” is a quality management strategy aimed at eliminating defects from business processes<br />
as far as possible. Requirements are defined from the customer’s point of view. Since training began,<br />
16 employees initially in Germany have qualified as “greenbelts” and 15 as “blackbelts”.<br />
University program<br />
The above measures are supplemented by programs tailored to the specific needs of individual<br />
companies under the personnel development activities in the business units. For example, ThyssenKrupp<br />
Mexinox runs a “Bachelor Program” to support employees in their efforts to gain a university degree.<br />
The company provides employees taking part in distance learning programs with study rooms and<br />
computers for their e-learning courses. The study fees are paid by the employees themselves. The<br />
company is currently providing support for 50 employees who are studying for degrees in engineering<br />
and economics.<br />
Training of production employees<br />
To be able to adapt to short-term production fluctuations, production workers in the annealing, rolling<br />
and finishing shops at Shanghai Krupp <strong>Stainless</strong> are being trained to operate all facilities within the<br />
plant. After training, an employee is able to work on any of the various lines. In the medium and long<br />
term this will allow enhanced utilization of existing personnel capacities.
04<br />
Capital expenditures<br />
compeTiTiveness<br />
With an extensive investment program, ThyssenKrupp <strong>Stainless</strong> is<br />
pursuing a future-oriented corporate policy.<br />
---
04<br />
Capital expenditures<br />
With an extensive investment program, ThyssenKrupp <strong>Stainless</strong><br />
is implementing its strategic goals step by step. In the stainless<br />
flat-rolled area our investment program is focused on securing<br />
and further expanding our market position in Europe and<br />
North America. In the high-performance materials area<br />
ThyssenKrupp <strong>Stainless</strong> has optimized existing production<br />
structures and further expanded capacities.
Capital expenditures<br />
ThyssenKrupp sTainless aG Capital expenditures<br />
Altogether, ThyssenKrupp <strong>Stainless</strong> invested some 387 million euros in property,<br />
plant and equipment and intangible assets in fiscal 2007/08. Key areas of investment<br />
were the establishment of the fully integrated production location ThyssenKrupp<br />
<strong>Stainless</strong> USA in Calvert (Alabama) and the systematic continuation of our strategic<br />
investment in the sites of ThyssenKrupp Acciai Speciali Terni and ThyssenKrupp VDM.<br />
The growth of the Terni location of ThyssenKrupp Acciai Speciali Terni into a worldclass<br />
integrated stainless mill was taken a step further with the first and second stages<br />
of the capacity expansion. In the area of high-performance materials, the investment<br />
measures centered on the expansion of the remelting capacities for nickel alloys and<br />
titanium and closing the technological gap in the production of nickel alloy long<br />
products through the construction of a forging plant in Unna.<br />
To enhance safety in our facilities on an ongoing basis, in addition to the business units’ individual<br />
projects the fire protection program initiated in previous years was systematically continued at<br />
segment level. This investment program is focused on further reducing potential fire hazards in our<br />
operations, installing fire alarms and fire extinguishing systems and building fire walls.<br />
<strong>Stainless</strong> flat-rolled: Securing competitiveness<br />
in our core markets<br />
ThyssenKrupp Nirosta<br />
Investment activity in the past fiscal year focused on increasing business with end customers by<br />
expanding the EBOR service center operations in Sachsenheim, building an acid regeneration plant at<br />
the Krefeld location, and also on various measures to maintain operations and modernize equipment.<br />
With the expansion of the EBOR service center operations, ThyssenKrupp Nirosta continued its<br />
successful policy of expanding processing capacities and increasing value added in the area of highquality<br />
finished flat-rolled stainless products.<br />
In a further step towards securing environmentally friendly technologies, ThyssenKrupp Nirosta is<br />
building an acid regeneration plant at the Krefeld location. The new plant will further reduce the nitrate<br />
content of the wastewater.<br />
In the Krefeld and Bochum steelmaking shops the extensive modernization of the AOD furnaces<br />
will be continued in the coming years to ensure production at all ThyssenKrupp Nirosta locations<br />
meets the highest requirements.<br />
ThyssenKrupp Acciai Speciali Terni<br />
The strategic goal of developing the Terni operation of ThyssenKrupp Acciai Speciali Terni step-bystep<br />
into a benchmark production site is being implemented by a series of measures. Some of the<br />
individual projects began in fiscal 2006/07 but will not be completed until fiscal 2008/09.<br />
The growth of Terni into a world-class production location continued after the decision to close<br />
the Turin plant and the relocation of individual facilities to the Terni location.<br />
An additional investment program will increase the hot- and cold-rolled capacities of ThyssenKrupp<br />
Acciai Speciali Terni while widening the product portfolio. This will improve the balance between<br />
31
32<br />
new vod converTer<br />
in operaTion<br />
This has expanded the company’s<br />
portfolio of ferritic steels to include<br />
special grades<br />
steelmaking and hot/cold rolling capacities and enable the <strong>Stainless</strong> group with its European coldrolled<br />
capacity to meet increasing demand in the region. The investment program mainly involves<br />
replacing the thin-slab caster with a conventional continuous caster to enhance hot-rolled quality<br />
and better utilize existing steelmaking capacity. In addition, the installation of two inline cold-rolling<br />
roll stands in the entry section of the new hot-rolled line will create the conditions for increasing<br />
cold-rolled capacity and widening the product portfolio. The investment package also includes the<br />
creation of further capacity in the anneal/pickle area and the expansion of the finishing and shipping<br />
departments in Terni.<br />
To expand the product portfolio to include ferritic grades with high chromium and low carbon<br />
contents and to optimize operating procedures, a VOD furnace was installed in the melt shop which<br />
began regular operation in spring 2008. In the VOD (Vacuum Oxygen Decarburization) process, the<br />
carbon/hydrogen and nitrogen content of high-alloy heats is reduced to a minimum under vacuum.<br />
This technology is therefore also used to improve the quality of the forging ingots produced by<br />
ThyssenKrupp Acciai Speciali Terni’s subsidiary Società delle Fucine. With the VOD furnace it will<br />
be possible to minimize the hydrogen content of ingots weighing up to 500 t. This innovative VOD<br />
technology will allow ThyssenKrupp Acciai Speciali Terni to expand its portfolio of ferritic steels to<br />
include special grades which can be used in place of conventional chromium nickel steels in some<br />
application areas.<br />
ThyssenKrupp Mexinox<br />
In addition to various individual measures to maintain operations, investment at ThyssenKrupp Mexinox<br />
focused on the modernization of Sendzimir mill 1. The project is necessary because following the<br />
construction of the bright annealing line the production bottleneck at ThyssenKrupp Mexinox shifted<br />
from finish annealing and pickling to the Sendzimir mills. The project will continue over the next two<br />
fiscal years and on completion will secure the sustainable operation of the mill which was built in 1976.<br />
In addition, the installation of a flatness measuring unit will further optimize the facility.<br />
Shanghai Krupp <strong>Stainless</strong><br />
Investment in the cold-rolling mill of Shanghai Krupp <strong>Stainless</strong> in fiscal 2007/08 focused on projects<br />
to round off previous investments. In particular, measures were carried out to expand processing<br />
capacity and improve differentiation from the competition. A key component was the commissioning<br />
of a circle cutting machine which significantly increases value added in the processing operations<br />
of Shanghai Krupp <strong>Stainless</strong> and therefore serves the needs of end customers. This supports the<br />
expansion of our strategically important end customer business.<br />
ThyssenKrupp <strong>Stainless</strong> International<br />
To reflect the growing importance of the Turkish market for the <strong>Stainless</strong> group the investment project<br />
launched the previous year with the aim of relocating the existing service center operations to newly<br />
built premises in the greater Istanbul area was continued. The new location will replace the existing<br />
operation in Kartal and will open in the 1st half of 2009.<br />
As at Shanghai Krupp <strong>Stainless</strong>, a circle stamping machine is being built in the service center<br />
in Poland which will meet the rising requirements of end customers in the white goods industry. The<br />
investment significantly strengthens ThyssenKrupp <strong>Stainless</strong> International’s competitive position by<br />
clearly increasing value added and minimizing scrap. Thanks to its central location, the service center<br />
can respond quickly to the requirements of customers throughout Europe.
The construction of the ThyssenKrupp <strong>Stainless</strong> USA<br />
plant in Alabama is proceeding to schedule.<br />
ThyssenKrupp sTainless aG Capital expenditures<br />
ThyssenKrupp <strong>Stainless</strong> USA<br />
Construction of the new joint steelmaking and processing plant for the Steel and <strong>Stainless</strong> segments in<br />
Calvert (Alabama) is on schedule. Startup is planned for early 2010. Due to the tight supply situation in<br />
the global plant construction sector, which has increased the cost of individual projects, the investment<br />
volumes for <strong>Stainless</strong> are currently expected to be around 30 percent higher than the 1.1 billion US<br />
dollars originally planned. This will have no material impact on the profitability of the projects.<br />
The project in the USA is a major part of ThyssenKrupp <strong>Stainless</strong>’s growth strategy. The direct<br />
entry of the <strong>Stainless</strong> group in the USA will further strengthen its existing market position in North<br />
America. The <strong>Stainless</strong> group is already active on the North American stainless market through the<br />
cold-rolling mill of ThyssenKrupp Mexinox in San Luis Potosí (Mexico) and through imports from the<br />
mills in Germany, Italy and China. Marketing is carried out via a sales company based in Chicago.<br />
The new plant will allow ThyssenKrupp <strong>Stainless</strong> to sustain its high market share in the fast growing<br />
Mexican market and significantly further strengthen its position in the USA and Canada.<br />
Orders have been placed for most of the production facilities. The main production lines and<br />
various auxiliary units for the cold-rolling mill have been ordered. These include hot strip and cold<br />
strip annealing and pickling lines, three cold-rolling stands, a skin-pass mill, several finishing units<br />
and a large share of the cranes. Orders for the electric arc furnace, AOD converter and continuous<br />
caster, the core units of the melt shop, were placed in May. Negotiations are under way in respect of<br />
the ancillary equipment. An order has also been placed for the core unit of the hot-rolling mill, the<br />
wide hot strip facility.<br />
Piling work in the area of the cold-rolling mill has been completed. Work on the construction of<br />
the cold-rolling mill buildings began at the end of August. Further milestones planned for 2009 are the<br />
completion of the cold-rolling mill, installation of the equipment and start of the ramp-up phase.<br />
33
34<br />
High-performance materials:<br />
Optimization of production structures<br />
ThyssenKrupp VDM<br />
The investment projects under way at ThyssenKrupp VDM will support the forward strategy to<br />
strengthen and expand the market segments aerospace and oil & gas. The largest single project is<br />
the construction of a complete forge at the Unna plant, consisting of a forging press, the necessary<br />
preheat furnaces and two forging manipulators. This will considerably strengthen and expand the<br />
bar product unit. The open-die forge will also process material from ThyssenKrupp Titanium. The<br />
new forge, which went into operation in spring 2008, closes a gap in the value chain and makes it<br />
possible to end the contracting out of work to third parties. In addition, the range of services has been<br />
significantly expanded. ThyssenKrupp VDM can now offer to process material for customers in the<br />
new forge.<br />
The service center operations at the Werdohl location have also been augmented. In September 2008<br />
a new service center for the Chinese market was opened on the ThyssenKrupp <strong>Stainless</strong> International<br />
site in Guangzhou.<br />
Investment in the sheet product unit focused on technical upgrading, including the ability to supply<br />
12 meter long sheet in the future. The concentration of wire production at one location was completed<br />
in early 2008.<br />
ThyssenKrupp Titanium<br />
Available ingot capacity at the Essen location of ThyssenKrupp Titanium has been more than doubled<br />
in two steps to keep pace with growth on the titanium market. A VAR remelting unit was commissioned<br />
in October 2006. The group’s first electron beam furnace went into operation in autumn 2008.<br />
With the new electron beam furnace – installed in a specially built shop at the Essen site –<br />
ThyssenKrupp Titanium now has the most modern furnace in Europe. With a capacity of 1,200 kilograms<br />
of titanium per hour, the new furnace can produce up to two slabs per day. Instead of the standard 7.5<br />
tons, the new slabs weigh up to 15 tons. The furnace can process both titanium sponge and titanium<br />
scrap in various mixtures, and thus makes us less dependent on supplies of titanium sponge from<br />
outside Europe. With this addition, ThyssenKrupp Titanium can meet increasing demand on the global<br />
market for titanium products in the medium and long term and guarantee reliable supplies of titanium<br />
products to its customers.<br />
The new forge in Unna will<br />
expand the product portfolio.<br />
With the innovative electron beam furnace,<br />
larger titanium slabs can now be produced in Essen.
05<br />
Research<br />
and development<br />
maTerial innovaTions<br />
Developing new and enhanced materials is the number one priority<br />
of the <strong>Stainless</strong> group.<br />
---
05<br />
Research<br />
and development<br />
Developing new and enhanced materials is a key element in<br />
cementing and expanding our position on the market. Steadily<br />
widening our research activities and developing new applications<br />
for our materials are a major priority in the ThyssenKrupp Group<br />
and in particular at ThyssenKrupp <strong>Stainless</strong>.
Research and development<br />
ThyssenKrupp sTainless aG Research and development<br />
Increasing raw material costs, higher customer requirements and extended<br />
applications are among the challenges facing the <strong>Stainless</strong> segment. Various material<br />
innovations in the areas of stainless steel, nickel alloys and titanium are providing<br />
successful solutions and strengthening our position in the global marketplace.<br />
ThyssenKrupp <strong>Stainless</strong> is exploring new paths to increase the performance potential<br />
of the materials and at the same time optimize their use.<br />
New reduced-nickel and nickel-free materials from ThyssenKrupp<br />
represent low-cost alternatives for our customers<br />
To make us less dependent on the nickel price and allow us to offer a broader range of low-cost<br />
materials, we have developed various materials which are either nickel-free or have a much smaller<br />
nickel content:<br />
In times of high nickel prices, Nirosta 1.4640 is a low-cost alternative to the standard material<br />
1.4301 offering equally good properties in terms of corrosion resistance, formability, weldability and<br />
aesthetics. Thanks to a new combination of copper, nitrogen and manganese as alloying additions, the<br />
developers were able to reduce the nickel content of the stainless steel. The similarity of properties<br />
to material 1.4301 means that customers - applications lie mainly in the “white goods” sector but also<br />
all other areas in which Nirosta 1.4301 is used - can continue using the same processing technologies<br />
when they change to the new material. With this new development, the company won second prize in<br />
the Group’s 2008 Innovation Contest.<br />
A further innovation in austenitic stainless steels is Nirosta 4618. Here, too, the company has<br />
succeeded in developing a material with significantly lower nickel content but similar forming<br />
properties to Nirosta 1.4301, allowing it to be used as a substitute in many applications. Its properties<br />
make Nirosta 1.4618 particularly suitable for domestic appliances, commercial kitchens, sinks and<br />
interior architecture.<br />
With Nirosta 1.4607 the company has developed to production maturity a material especially<br />
designed to meet the requirements of auto manufacturers. A traditional user of stainless steel -<br />
particularly for exhaust systems - the auto industry faces increased cost pressure due to the price<br />
of nickel. Nirosta 1.4607 is completely nickel- and molybdenum-free, highly resistant to corrosion<br />
and can be used in applications requiring the formability of a ferrite material. It is very resistant to<br />
high temperatures and therefore suitable for new generations of engines with elevated corrosion and<br />
thermal loads in which it minimizes NOx emissions.<br />
That existing materials can find new applications through modification was proved by ThyssenKrupp<br />
Nirosta with the nickel-free stainless steel 1.4521. Up to now, expensive nickel-containing steels have<br />
been used for drinking water pipes. Working closely with customers, our specialists improved this<br />
37
38<br />
steel such that it can be readily formed and does not corrode even under unfavorable conditions. The<br />
material is already being successfully used for drinking water pipes in Switzerland and has now also<br />
been approved for use in Germany. At the same time we have optimized the manufacturing technology<br />
in order to handle the increasing volume of orders.<br />
VOD unit at ThyssenKrupp Acciai Speciali Terni<br />
To expand the product portfolio to include ferritic grades with high chromium and low carbon contents<br />
and to optimize operating procedures, a VOD furnace was installed in the melt shop of ThyssenKrupp<br />
Acciai Speciali Terni which began regular operation in spring 2008. This VOD furnace will also help<br />
improve the quality of the forging ingots produced by ThyssenKrupp Acciai Speciali Terni’s subsidiary<br />
Società delle Fucine. The innovative VOD technology will allow ThyssenKrupp Acciai Speciali Terni<br />
to expand its portfolio of ferritic steels to include special grades which can be used in place of<br />
conventional chromium nickel steels in some application areas. In this connection, ThyssenKrupp<br />
Acciai Speciali Terni developed the materials 460LI-21 Cr and 470LI-24 Cr.<br />
New high-performance nickel and titanium alloys contribute<br />
to climate protection<br />
The development and modification of materials is also a high priority at ThyssenKrupp VDM. In<br />
particular in new areas of application such as the transportation of liquefied gas or in power plants<br />
operating at temperatures of 700°C, the special properties of nickel alloys can be used to improve<br />
specific processes or even make them possible in the first place. Where these materials are already in<br />
use, targeted modification of the alloys helps reduce costs.<br />
For many years the US appliance industry has used heating element wire made of Cronifer II from<br />
ThyssenKrupp VDM. However, due to its high nickel content the material is no longer competitive for<br />
this application. By increasing the chromium content and accurately adjusting the balance of various<br />
elements, the company has succeeded in developing a new material - Cronifer 40 B - with only 37.5<br />
percent nickel compared with Cronifer II’s 60 percent. Despite significantly lower metal costs, Cronifer<br />
40 B meets the high shape stability and service life requirements of this application. The material is<br />
now being produced on a commercial scale.<br />
Innovations in materials increasingly hold the key to efficient climate protection and resource<br />
conservation. New generations of fossil-fired steam power plants are being introduced which can<br />
achieve higher efficiencies as a result of higher temperatures and pressures of the steam. Together with<br />
power plant operators and manufacturers of power plant boilers, ThyssenKrupp VDM has developed<br />
Sink manufacturers are<br />
among our most important<br />
customers.<br />
For the appliance industry ThyssenKrupp Nirosta<br />
has developed two new reduced-nickel materials.
ThyssenKrupp sTainless aG Research and development<br />
a material - Nicrofer 5520 Co B - which meets the increased thermal and corrosive requirements of<br />
these power plants; suitability for operating temperatures of 700°C has already been successfully<br />
demonstrated. Our engineers are now working on using this alloy for the manufacture of longitudinalwelded<br />
thick-wall pipes and large forgings.<br />
The transportation of liquefied gas offers an important source of alternative energy for the future.<br />
The VDM alloy Pernifer 36 is now to be used for the innermost coating of the longitudinal-welded<br />
pipe through which the gas flows to prevent major shrinkage of the pipes when cooling. The pipes<br />
are subject to high pressures and any defects could have fateful consequences. ThyssenKrupp VDM<br />
has therefore developed the welding filler metal Pernifer S 36 CrAl, an alloy containing additional<br />
elements to enhance strength and ensure good weldability. With low thermal expansion, the new<br />
material increases the strength of the weld.<br />
The use of nickel alloys is also paying dividends in wind turbines. Turbines with so-called hightemperature<br />
superconductors operate with much higher efficiency than conventional systems.<br />
Together with a development partner, ThyssenKrupp VDM has developed a production route for nickel<br />
W14 which can be used in superconductors, e.g. in generators, and provides mechanical stability<br />
and long service life. The findings gained in the laboratory were successfully transferred to largescale<br />
production; a patent has already been filed. This development opens up a new opportunity to<br />
participate in the growth of the wind power market.<br />
In the area of fuel cells, further progress was made in the development of a material for<br />
interconnector plates. The new material Crofer 22 H - like Crofer 22 APU, developed jointly with the<br />
Jülich Research Center - was produced for the first time on a commercial scale. Crofer 22 H is a<br />
material with much greater elevated-temperature strength than Crofer 22 APU. This is achieved by<br />
additions of niobium, tungsten and silicon. Samples of this new material are currently being supplied<br />
to customers working on developing the next generation of SOFC stack technology.<br />
ThyssenKrupp Titanium developed the titanium alloy Ti-X containing the relatively inexpensive<br />
main constituents of iron and silicon especially for use in auto exhaust systems. In contrast to pure<br />
titanium, which cannot be used at high temperatures, the new material is a high-temperature alloy<br />
which is oxidation-resistant and can be used at temperatures up to 750°C. To enable the material to be<br />
used at even higher temperatures up to 1,000°C, the company developed a special protective coating<br />
in the form of a thin aluminum cladding applied to the alloy. The test material is now available, further<br />
tests will follow shortly. The advantage of volume use of this material in auto manufacturing lies in its<br />
significantly lower weight which reduces CO2 emissions in vehicle operation.<br />
Aluminum seat rails, used mainly in damp areas of aircraft, are exposed to particularly heavy<br />
wear. In addition, the mechanically stressed rails are subject to corrosion damage. The solution: a<br />
low-weight composite material consisting of titanium and aluminum developed by ThyssenKrupp<br />
The new VOD unit will improve the quality of large<br />
ingots, e.g. for power plants.<br />
High-temperature<br />
superconductors are used<br />
in wind turbines.<br />
39
40<br />
Titanium in association with ThyssenKrupp DAVEX. The use of a special joining technology (Davex<br />
technology) allows the manufacture of simple, low-cost material combinations which cannot be<br />
produced conventionally or only at very high cost. In the new seat rails made in this way, only those<br />
parts which are directly exposed to corrosion are made from titanium.<br />
In the BliDes-HDV project (Blisk design for high-pressure compressors), ThyssenKrupp Titanium is<br />
optimizing the production of ingots of alloy Ti-6Al-4V. This will permit the manufacture of an extremely<br />
fine-grained, low-texture material which can be used by jet engine manufacturers to produce titanium<br />
components for high-pressure compressors used in turbines. Unlike conventional materials, the new<br />
alloy can be subjected to high-sensitivity ultrasonic testing to eliminate even the smallest material<br />
defects. The material’s enhanced quality and potential additional savings (e.g. shorter testing times)<br />
give the company a significant competitive advantage. In parallel with the project, further process and<br />
microstructure simulations are being carried out at RWTH Aachen college of technology.<br />
In association with the Institute of Metallurgical Process Technology and Metal Recycling of RWTH<br />
Aachen college of technology, ThyssenKrupp Titanium is carrying out special melting tests on the<br />
titanium alloy Ti-6Al-4V to identify potential process improvements. In the tests, the evaporation rates<br />
of the alloying elements and the adhesion of undesired deposits on the walls are being examined. The<br />
results will help extend the service life of ThyssenKrupp Titanium’s new electron beam furnace, which<br />
went into operation in autumn 2008, and optimize the quality of the slabs.<br />
Aircraft construction would be<br />
unthinkable without titanium.<br />
Various materials of the <strong>Stainless</strong> group are used in<br />
seawater desalination units.
06<br />
Sustainability/<br />
Environmental protection<br />
responsibiliTy<br />
Protecting the interests of the environment is part of our corporate philosophy –<br />
as here on the site of our new plant in the USA.<br />
---
06<br />
Sustainability/<br />
Environmental protection<br />
The <strong>Stainless</strong> group pursues a sustainable corporate policy<br />
in which protection of the environment plays a central role.<br />
This includes advanced production facilities and process<br />
technologies, the almost 100 percent recyclability of our materials<br />
and the use of our products in eco-friendly applications.
Sustainability<br />
ThyssenKrupp <strong>Stainless</strong> pursues a sustainable corporate policy in which<br />
the interests of the environment play a key role. This is reflected not only in<br />
our production plants and processes, which are based on state-of-the-art<br />
technology, but also in our materials, which are increasingly used in pollution<br />
control applications such as vehicle exhaust systems, new generations of<br />
power plants, and fuel cells.<br />
Sustainability<br />
ThyssenKrupp sTainless aG Sustainability<br />
Our sustainable corporate policy is aimed at securing the future for coming generations taking<br />
economic, ecological and social aspects into account. However, in this field of tension it is economic<br />
success that determines the room for maneuver in the other two areas. ThyssenKrupp <strong>Stainless</strong> offers<br />
intelligent and sustainable solutions.<br />
Economic aspects<br />
Economic solidity and long-term success based on value-oriented management are central to<br />
ThyssenKrupp <strong>Stainless</strong>’s understanding of sustainability, but non-economic aspects are also<br />
systematically taken into account. Six factors are key to the success of our sustainability strategy:<br />
effectiveness, efficiency, resources, impact, solidarity and justice. In an environment shaped by global<br />
competition, these factors have to be constantly reexamined together with customers, suppliers,<br />
capital providers, employees and other central stakeholders.<br />
Materials<br />
Longevity and 100% recyclability are two of the most important arguments for the materials of<br />
ThyssenKrupp <strong>Stainless</strong>. For manufacturers and customers alike, products made from stainless<br />
materials are an investment in the future. Because they are infinitely recyclable with no loss of quality,<br />
stainless steel, nickel alloys and titanium are particularly kind to the environment. Recyclability is<br />
therefore an important property of these materials. These properties and their ever widening range of<br />
applications make these materials indispensable now and in the future.<br />
43
44<br />
Employees<br />
With their motivation, knowledge and experience, our employees are a central resource for the<br />
sustainability of our company. We strive to strengthen this potential with training, skill upgrading,<br />
and personnel development and marketing programs and through our ideas management. At all<br />
sites, ThyssenKrupp <strong>Stainless</strong> and its subsidiaries are regarded as reliable employers offering secure<br />
jobs and apprenticeships. ThyssenKrupp <strong>Stainless</strong> also strengthens the regions in which it operates<br />
through active involvement in social initiatives.<br />
Innovations<br />
Innovations create the conditions for future business success. The R&D activities of ThyssenKrupp<br />
<strong>Stainless</strong> are therefore aimed at constantly improving our products and offering better value for<br />
money. Since all activities are centered on the customer, development work is linked to marketing<br />
requirements from a very early stage. In the same way, product development goes hand-in-hand with<br />
process development, because when new products are introduced, new manufacturing technologies<br />
have to be mastered. To estimate the success of sustainable innovations early on, it is essential to<br />
be close to the market, i.e. to have a deep understanding of customers’ requirements and thorough<br />
knowledge of the competition. After development tasks have been identified, they are implemented at<br />
the <strong>Stainless</strong> group’s centers of excellence. Work involving forward-looking themes and outstanding<br />
customer segments is carried out in cross-company cooperative projects with other companies of<br />
ThyssenKrupp AG. Research institutes and universities and in some cases other steel companies from<br />
all over the world are also naturally involved in the development process.<br />
Environmental protection –<br />
as pictured here in the USA –<br />
is a key priority.<br />
The catalytic waste-air purification plant at<br />
ThyssenKrupp Nirosta in Krefeld.
Environmental protection<br />
ThyssenKrupp sTainless aG Environmental protection<br />
ThyssenKrupp <strong>Stainless</strong> attaches great importance to environmental protection.<br />
Responsible environmental management, minimizing emissions and waste materials<br />
together with the economic use of raw materials and energy are important goals for all<br />
plant employees. Environmental management means systematically and continuously<br />
monitoring environmental aspects – and this is done right from the design stage for<br />
production processes at our plants worldwide. At all ThyssenKrupp <strong>Stainless</strong> locations,<br />
the production systems used are gentle on the environment and resources. As a result,<br />
considerable success has been achieved in the reduction of dust emissions, noise,<br />
water and energy consumption as well as in waste recycling. However, our materials<br />
are also indispensable in this regard, since they make possible the types of processes<br />
called for by the demands of environmental protection.<br />
ThyssenKrupp <strong>Stainless</strong> has achieved a great deal in the field of environmental protection. With<br />
environment-friendly production facilities, a high proportion of recycled material and above all the<br />
100% recyclability of our products, we make an above-average contribution to protecting the global<br />
environment. Water and air pollution control and an almost 100% recycling system are integral parts<br />
of our operating processes.<br />
ThyssenKrupp Nirosta<br />
At the Bochum steel plant, further measures have been implemented to reduce noise from the dust<br />
collection stacks. At the company-owned landfill site Blücherstrasse, the penultimate phase of building<br />
to secure and restore this landfill was carried out under the approved overall plan.<br />
At the Krefeld melt shop and in the slag processing area, further measures were carried out to<br />
reduce dust emissions to further improve the overall emissions situation in the vicinity of the plant.<br />
In addition, in the framework of the project to modernize the converter units, work began on erecting<br />
a new wrecking and rebricking stand for converter vessels and ladles, on which the dust emissions<br />
occurring when tipping the removed refractory material are additionally extracted and collected.<br />
At the Krefeld cold strip mill, the catalytic waste air purification plant designed to reduce nitrogen<br />
oxide emissions from the mixed acid pickling units of the two lines concerned went into operation.<br />
In addition, work began on the construction of an acid regeneration unit for the plant’s entire waste<br />
acids, with which acids can be recovered and the level of hazardous substances in the waste water<br />
significantly reduced.<br />
At the Düsseldorf-Benrath plant, pickling line 1300 was optimized in both economic and ecological<br />
terms. The existing continuous rinsing unit was replaced by a new closed-loop rinsing system, allowing<br />
the volume of waste water to be reduced by 25 cubic meters per hour. In addition, the pickling tanks<br />
were equipped with modified collection chambers in line with current safety standards.<br />
At the Dahlerbrück plant, extensive noise-protection measures, including the insulation of the<br />
cooling towers, were carried out. Furthermore, the modernization of the company-owned canal network<br />
in line with statutory requirements was completed.<br />
45
46<br />
hiGh environmenTal sTandards<br />
In the future, the plant in Alabama<br />
will have an advanced acid<br />
regeneration unit to reduce the<br />
nitrate content of the wastewater<br />
At the Dillenburg plant, the construction of a retardation unit further reduced the level of nitrate in<br />
the waste water. In addition, nitrogen oxide emissions of the bright annealing line 1550 were minimized<br />
with the installation of low-nitrogen oxide FLOX burners.<br />
ThyssenKrupp Mexinox<br />
ThyssenKrupp Mexinox, which is based in a region with limited water resources, further reduced<br />
water consumption to protect the local environment by optimizing its waste water treatment and acid<br />
regeneration facilities. In April and May 2008, 350 trees were adopted by volunteers. The trees were<br />
planted by their adopters on the Mexinox site and provided with a name plaque. Each adopter pledged<br />
to tend and water their own particular tree, and they have all fulfilled this commitment. In addition, a<br />
further 525 trees were planted. Further improvements were achieved through the extensive recycling of<br />
consumables used in production, for example the large volumes of paper needed for process reasons.<br />
Almost 10 tons of paper was collected for recycling, saving around 120 trees and 952,000 liters of<br />
water.<br />
ThyssenKrupp <strong>Stainless</strong> USA<br />
The new steel mill in the USA is being built to the most stringent environmental standards. The most<br />
technologically advanced pollution control measures will be employed at the site. Clean-burning natural<br />
gas and electricity will be used to fire the process burners and furnaces. In addition, the processing<br />
equipment will be fitted with extensive energy recovery and re-use systems. The new plant in Alabama<br />
will also have an advanced acid regeneration unit which will greatly reduce nitrate levels in waste<br />
water. Acids from the annealing and pickling lines will be processed extremely effectively. This is the<br />
best technology currently available in terms of both economy and ecology and will make an effective<br />
contribution towards protecting Mobile Bay.<br />
Shanghai Krupp <strong>Stainless</strong><br />
The business unit received two major environmental awards in the past fiscal year: the Shanghai<br />
Advanced Health Business Unit Award and the Shanghai Municipal Water Saving Business Unit Award.<br />
In addition, Shanghai Krupp <strong>Stainless</strong> was certified to ISO 14001 and ISO 18001 environmental, health<br />
and safety standards.<br />
ThyssenKrupp VDM<br />
In the planning of the new forging press at ThyssenKrupp VDM’s Unna plant, the main environmental<br />
aspects to be considered were covered by compliance with the statutory provisions regarding noise<br />
emissions, vibrations and air pollutants. By meeting the appraiser’s requirements concerning noise<br />
insulation for the planned buildings and noise levels from external sources, local emissions are well<br />
below the permissible limits.<br />
Based on the results of vibration measurements, structure-borne noise requirements were<br />
defined for the forge. Further vibration measurements were carried out during trial operation of the<br />
forge to ensure optimum results in terms of technology and environmental protection when the forge<br />
is in regular operation.<br />
To assess air pollutant emissions occurring during operation of the forge, the requisite stack height<br />
was calculated – based on the construction planning – and the relevance of a pollutant dispersion<br />
calculation was reviewed. Thanks to the technical parameters, it was possible to comply with emission<br />
limits below the statutory limits.
07<br />
Operating companies/<br />
Further information<br />
cusTomer Focus<br />
For the operating companies of the <strong>Stainless</strong> group,<br />
the focus is always on the customer.<br />
---
07<br />
Operating companies/<br />
Further information<br />
The operating companies in the <strong>Stainless</strong> group are active<br />
on the market and offer our customers tailor-made solutions,<br />
products and services.
Operating companies<br />
ThyssenKrupp nirosTa Gmbh<br />
Oberschlesienstraße 16<br />
47807 Krefeld/Germany<br />
Telephone: +49 (0) 2151 83 01<br />
Fax: +49 (0) 2151 83 2022<br />
marketing.nirosta@thyssenkrupp.com<br />
www.nirosta.de<br />
ThyssenKrupp Nirosta’s plant in Krefeld.<br />
ThyssenKrupp Nirosta<br />
ThyssenKrupp sTainless aG Operating companies<br />
ThyssenKrupp Nirosta GmbH is one of the world’s leading manufacturers of stainless flat products<br />
and offers a wide range of grades, sizes and finishes. The largest single entity within ThyssenKrupp<br />
<strong>Stainless</strong> AG, the company has several sites in Germany. Crude steel production is carried out in the<br />
Bochum and Krefeld plants. The slabs produced there are converted into hot-rolled coils on the hot<br />
strip mill of ThyssenKrupp Steel in Bochum. From these, ThyssenKrupp Nirosta produces treated<br />
(pickled) hot-rolled and cold-rolled coil in various finishes, forms and sizes at its plants in Dillenburg,<br />
Düsseldorf-Benrath and Krefeld.<br />
ThyssenKrupp Nirosta is a major manufacturer with high-performance, highly specialized stateof-the-art<br />
production facilities. In recent years, further processing of the hot-rolled and in particular<br />
cold-rolled products has become increasingly important. This has allowed the company to extend its<br />
range of services and strengthen customer retention. The company provides these services both from<br />
its modern mill finishing departments in Krefeld and Dillenburg and via its own service centers NSC<br />
in Wilnsdorf, EBOR Edelstahl GmbH in Sachsenheim (near Stuttgart) and smbChromstahl GmbH in<br />
Langenhagen (near Hanover). To meet growing demand for its services, EBOR is currently being further<br />
expanded as part of a wide-ranging investment program.<br />
Subsidiary ThyssenKrupp Nirosta Präzisionsband GmbH is located in Dahlerbrück and produces<br />
stainless steel precision strip in thicknesses of 0.05 to 1.5 millimeters and widths of 3 to 650 millimeters<br />
meeting special demands on material properties, dimensional tolerances and edge quality.<br />
The company also has its own sales company, ThyssenKrupp Nirosta North America in Bannockburn<br />
(Illinois) near Chicago, in the important US sales market.<br />
THYSSENKRUPP NIROSTA IN FIGURES<br />
2006/2007 2007/2008<br />
Order intake million € 2,694 3,037<br />
Sales* million € 3,839 3,234<br />
Deliveries* 1,000 t 1,067 1,087<br />
Employees (September 30) 4,665 4,682<br />
* unconsolidated<br />
49
50<br />
ThyssenKrupp acciai speciali<br />
Terni s.p.a.<br />
Viale B. Brin 218<br />
05100 Terni/Italy<br />
Telephone: +39 (0) 7 44 490 1<br />
Fax: +39 (0) 7 44 490 752<br />
info@acciaiterni.it<br />
www.acciaiterni.it<br />
ThyssenKrupp Acciai Speciali’s plant in Terni.<br />
ThyssenKrupp Acciai Speciali Terni<br />
ThyssenKrupp Acciai Speciali Terni, Italy’s only producer of stainless flat products, is based in Europe’s<br />
second largest stainless market. The Terni plant is a fully integrated mill and has a melt shop with a<br />
stainless capacity of around 1.5 million tons per year. The slabs produced there are rolled into hotrolled<br />
coil on the company’s own hot strip mill and in future will be finished exclusively at the Terni<br />
plant. Under an extensive program of measures, production in Turin is being relocated step by step<br />
to Terni. The Terni site is being expanded and its competitiveness further improved. With the aid of<br />
ongoing three-digit million investment, ThyssenKrupp Acciai Speciali Terni is currently modernizing its<br />
production equipment, increasing its capacity and expanding the mill finishing department. Quality at<br />
the plant will also be further enhanced.<br />
Terninox S.p.A., a subsidiary of ThyssenKrupp Acciai Speciali Terni, is an efficient service center. Based<br />
in Ceriano Laghetto (Milan), the company combines all the stainless service activities not covered<br />
by the mill finishing departments. The mill finishing department in Terni was recently modernized<br />
and expanded. This included expanding finishing capacities as well as building a coil coating line.<br />
The US export market is served via the sales company ThyssenKrupp Acciai Speciali Terni USA in<br />
Bannockburn. ThyssenKrupp Acciai Speciali Terni owns several production subsidiaries:<br />
• Società delle Fucine S.p.A. has a long history of producing very large open-die forgings and operates<br />
the largest forging press in Europe (12,600 ton capacity). The business is currently being expanded<br />
to allow the production of higher-quality products as well as larger forgings with weights up to 250<br />
tons (500 ton ingot weight).<br />
• Tubificio di Terni S.p.A. is a leading producer of welded stainless steel tubes, in particular for the<br />
auto industry.<br />
• Terni-based ThyssenKrupp Titanium S.p.A. and its German subsidiary ThyssenKrupp Titanium<br />
GmbH are the only producers of titanium in Western Europe, and supply titanium flat and long<br />
products. Titanium ingot and bar are mainly produced in Germany and converted into titanium sheet<br />
and cold-rolled strip in Italy. A new remelting furnace and an innovative electron beam furnace have<br />
begun operation in Essen.<br />
THYSSENKRUPP ACCIAI SPECIALI TERNI IN FIGURES<br />
2006/2007 2007/2008<br />
Order intake million € 2,951 2,983<br />
Sales* million € 3,245 2,689<br />
Deliveries* 1,000 t 1,122 1,120<br />
Employees (September 30) 3,354 3,180<br />
* unconsolidated
ThyssenKrupp mexinox,<br />
s.a. de c.v.<br />
Av. Industrias No. 4100<br />
Zona Industrial 1a Sección<br />
78395 San Luis Potosí/S.L.P., Mexico<br />
Telephone: +52 (0) 444 826 51 00<br />
Fax: +52 (0) 444 824 06 42<br />
mexinox@thyssenkrupp.com<br />
www.mexinox.com.mx<br />
ThyssenKrupp Mexinox’s plant in San Luis Potosí.<br />
ThyssenKrupp Mexinox<br />
ThyssenKrupp sTainless aG Operating companies<br />
The ThyssenKrupp Mexinox cold-rolling operation in San Luis Potosí is Mexico’s only producer of<br />
cold-rolled stainless products. The company was established in 1976, and ThyssenKrupp <strong>Stainless</strong> AG<br />
acquired a majority interest in 1997. Since then, the plant has been continuously expanded. In August<br />
2006 a bright annealing line went into operation which had been relocated to Mexico from Italy and<br />
modernized. It allows ThyssenKrupp Mexinox to offer the market an additional high-quality finish.<br />
Processing capacity has also been further expanded.<br />
ThyssenKrupp Mexinox has a cold-rolled capacity of around 250,000 metric tons per year. Most of<br />
the plant’s starting material is hot-rolled coil from the group’s European plants. ThyssenKrupp Mexinox<br />
primarily serves the North American market. Distribution on the domestic Mexican market is carried<br />
out via a network of seven warehouses, while exports to the important US market are handled via the<br />
sales company ThyssenKrupp Mexinox USA in Bannockburn (Illinois), and a warehouse in Brownsville<br />
(Texas).<br />
ThyssenKrupp <strong>Stainless</strong> has established an outstanding position in the NAFTA region. The<br />
company is the leading supplier in Mexico and has a market share of more than ten percent in Canada<br />
and the USA.<br />
THYSSENKRUPP MExINOx IN FIGURES<br />
2006/2007 2007/2008<br />
Order intake million € 707 592<br />
Sales* million € 707 591<br />
Deliveries* 1,000 t 271 275<br />
Employees (September 30) 1,347 1,361<br />
* unconsolidated<br />
51
52<br />
ThyssenKrupp sTainless usa, llc<br />
1087 Downtowner Boulevard, Suite 200<br />
Mobile, AL 36609/USA<br />
Telephone: +1 251 544 3600<br />
Fax: +1 251 544 3502<br />
mary.mullins@thyssenkrupp.com<br />
www.thyssenkruppnewusplant.com<br />
The site of ThyssenKrupp <strong>Stainless</strong> USA in Calvert, Alabama (Nov. 2008).<br />
ThyssenKrupp <strong>Stainless</strong> USA<br />
ThyssenKrupp <strong>Stainless</strong> USA, LLC, was created from the project company set up jointly with sister<br />
segment ThyssenKrupp Steel to build a plant in the USA. From this evolved an independent company<br />
which began operation in 2007. ThyssenKrupp <strong>Stainless</strong> USA is an independent company within the<br />
<strong>Stainless</strong> group.<br />
ThyssenKrupp <strong>Stainless</strong> USA is currently building a new integrated mill for stainless steel<br />
flat products in Calvert in the US state of Alabama. The project in the USA is a key element in the<br />
growth strategy of ThyssenKrupp <strong>Stainless</strong>. The direct entry of the <strong>Stainless</strong> group into the USA will<br />
significantly expand our business in the NAFTA market. The capital investment for the <strong>Stainless</strong> part<br />
of the greenfield project is around 840 million euros.<br />
After the new plant starts production, expected in 2010, ThyssenKrupp <strong>Stainless</strong> USA will supply<br />
its direct customers in North America in association with ThyssenKrupp Mexinox, which will later also<br />
begin receiving hot-rolled coil from the new plant in the USA. Product marketing will also be handled<br />
by the existing sales company ThyssenKrupp <strong>Stainless</strong> North America in Bannockburn (Illinois).<br />
ThyssenKrupp <strong>Stainless</strong> USA is expected to make a major contribution to the success of the <strong>Stainless</strong><br />
group at operating level in the future.
shanGhai Krupp sTainless<br />
co. lTd.<br />
101 Xueye Road West<br />
Pudong New Area<br />
Shanghai 20012/PR China<br />
Telephone: +86 (0) 21 38 87 48 87<br />
Fax: +86 (0) 21 68 70 20 25<br />
customerservice@skschina.com<br />
www.skschina.com<br />
The Shanghai Krupp <strong>Stainless</strong> plant.<br />
Shanghai Krupp <strong>Stainless</strong><br />
ThyssenKrupp sTainless aG Operating companies<br />
Shanghai Krupp <strong>Stainless</strong> is a joint venture 60 percent owned by ThyssenKrupp <strong>Stainless</strong> and 40<br />
percent by Shanghai Pudong Iron & Steel Co, part of the Baosteel group. Based in the Shanghai<br />
Pudong industrial zone (People’s Republic of China) the company was established in 1998 to set up<br />
one of the world’s most advanced facilities for the production of stainless steel flat products.<br />
The plant started operation in November 2001 as a cold rolling mill with a capacity of around<br />
80,000 metric tons per year. Since then it has been expanded in phases to its current capacity of<br />
around 300,000 tons. The plant procures part of its starting material from the <strong>Stainless</strong> group’s<br />
European plants and part in the form of locally sourced hot-rolled coil.<br />
SHANGHAI KRUPP STAINLESS IN FIGURES<br />
2006/2007 2007/2008<br />
Order intake million € 345 273<br />
Sales* million € 454 284<br />
Deliveries* 1,000 t 173 155<br />
Employees (September 30) 546 522<br />
* unconsolidated<br />
53
54<br />
ThyssenKrupp sTainless<br />
inTernaTional<br />
Oberschlesienstraße 16<br />
47807 Krefeld/Germany<br />
Telephone: +49 (0) 2151 83 3503<br />
Fax: +49 (0) 2151 83 3999<br />
info.stainless-international@<br />
thyssenkrupp.com<br />
www.thyssenkrupp-stainlessinternational.com<br />
ThyssenKrupp <strong>Stainless</strong> International’s service center in Hungary.<br />
ThyssenKrupp <strong>Stainless</strong> International<br />
ThyssenKrupp <strong>Stainless</strong> International (Krefeld) is a wholly owned subsidiary of ThyssenKrupp <strong>Stainless</strong><br />
AG. With two business units, it supports the direct sales of the plants of ThyssenKrupp Nirosta in<br />
Germany and ThyssenKrupp Acciai Speciali Terni in Italy. ThyssenKrupp <strong>Stainless</strong> International sells<br />
stainless steel cold-rolled and hot-rolled products in all markets worldwide with the exception of North<br />
America.<br />
ThyssenKrupp <strong>Stainless</strong> International currently has service centers in the United Kingdom, France,<br />
Spain, Poland, Hungary and Turkey, a sales company in the Benelux countries and a warehouse with<br />
processing facilities in southern China. ThyssenKrupp <strong>Stainless</strong> International also has sales offices in<br />
Hong Kong, Shanghai, Beijing, Brazil, Singapore and Vietnam. The service centers have cut-to-length<br />
and slitting equipment and can supply various surface treatments such as grinding and brushing.<br />
ThyssenKrupp <strong>Stainless</strong> International is not just a materials supplier but a true service provider:<br />
in cooperation with the production companies it supplies customers with solutions for diverse<br />
applications, offers product support services and operates close to customers thanks to an ever<br />
growing global distribution and service center network.<br />
THYSSENKRUPP STAINLESS INTERNATIONAL IN FIGURES<br />
2006/2007 2007/2008<br />
Order intake million € 1,538 1,198<br />
Sales* million € 1,570 1,187<br />
Deliveries* 1,000 t 707 642<br />
Employees (September 30) 436 453<br />
* unconsolidated
ThyssenKrupp vdm Gmbh<br />
Plettenberger Straße 2<br />
58791 Werdohl/Germany<br />
Telephone: + 49 (0) 2392 55 0<br />
Fax: + 49 (0) 2392 55 2217<br />
vdm@thyssenkrupp.com<br />
www.thyssenkruppvdm.com<br />
ThyssenKrupp VDM’s plant in Werdohl.<br />
ThyssenKrupp VDM<br />
ThyssenKrupp sTainless aG Operating companies<br />
ThyssenKrupp VDM (Werdohl) is a leading international supplier of high-performance materials.<br />
Operating from four sites in Germany, the company supplies these nickel and cobalt alloys as well<br />
as specialty steels in the form of sheet, strip, bar and wire to customers in the energy, oil, gas, plant<br />
construction, aerospace and electronics sectors.<br />
The ThyssenKrupp VDM plants in Germany and the two plants of ThyssenKrupp VDM USA (New<br />
Jersey, Nevada) employ the latest technologies, particularly in the area of melting and remelting. New<br />
materials for complex applications are developed in close collaboration with customers. The company<br />
has its own sales offices in North America, Asia and Australia.<br />
At the Unna site, the company has expanded its remelting capacities and built a modern forging<br />
line, which went into operation in April 2008. This will allow ThyssenKrupp VDM to grow in highly<br />
profitable segments of the nickel alloy market. These include above all the so-called superalloys, i.e.<br />
high-performance materials with special corrosion and heat-resisting properties. The new forging line<br />
will add to ThyssenKrupp VDM’s range of products for the aerospace industry in particular.<br />
THYSSENKRUPP VDM IN FIGURES<br />
2006/2007 2007/2008<br />
Order intake million € 1,464 1,068<br />
Sales* million € 1,463 1,177<br />
Deliveries* 1,000 t 49 43<br />
Employees (September 30) 1,772 1,801<br />
* unconsolidated<br />
55
56<br />
ThyssenKrupp Group shareholdings<br />
A. CONSOLIDATED SUBSIDIARIES as at September 30, 2008<br />
ThyssenKrupp <strong>Stainless</strong> Corporate<br />
Currency<br />
Capital stock<br />
in €1,000<br />
or foreign<br />
currency<br />
Share of<br />
capital %<br />
ThyssenKrupp <strong>Stainless</strong> AG, Duisburg 110,000 99.61<br />
ThyssenKrupp Nirosta<br />
EBOR Edelstahl GmbH, Sachsenheim 511 100.00<br />
smbChromstahl GmbH, Hannover-Langenhagen 277 100.00<br />
ThyssenKrupp Nirosta GmbH, Krefeld 60,000 100.00<br />
ThyssenKrupp Nirosta Präzisionsband GmbH, Krefeld 1,000 100.00<br />
ThyssenKrupp Nirosta North America, Inc., Wilmington, DE 19808, USA USD 2,000 100.00<br />
ThyssenKrupp Acciai Speciali Terni<br />
ThyssenKrupp Titanium GmbH, Essen 1,534 100.00<br />
Aspasiel S.r.l., Rome, Italy 260 100.00<br />
Società delle Fucine S.r.l., Terni, Italy 7,988 100.00<br />
Terninox S.p.A., Terni, Italy 20,800 100.00<br />
ThyssenKrupp Acciai Speciali Terni S.p.A., Terni, Italy 159,682 100.00<br />
ThyssenKrupp AST USA, Inc., Albany, New York 12207 - 2543, USA USD 30 100.00<br />
ThyssenKrupp Titanium S.p.A., Terni, Italy 5,000 100.00<br />
Tubificio di Terni S.p.A., Terni, Italy 5,944 97.00<br />
ThyssenKrupp Mexinox<br />
Mexinox Trading S.A. de C.V., Mexico D.F., Mexico MXN 129,258 2) 100.00<br />
Mexinox USA Inc., Brownsville/Texas, USA USD 2,000 100.00<br />
ThyssenKrupp Mexinox S.A. de C.V., San Luis Potosí, Mexico MXN 4,621,499 2) 100.00<br />
ThyssenKrupp <strong>Stainless</strong> USA<br />
ThyssenKrupp <strong>Stainless</strong> USA, LLC, Wilmington, DE 19808, USA USD 1 100.00<br />
Shanghai Krupp <strong>Stainless</strong><br />
Shanghai Krupp <strong>Stainless</strong> Co., Ltd., Pudong New Area/Shanghai, PR China CNY 2,618,815 2) 60.00<br />
ThyssenKrupp <strong>Stainless</strong> International<br />
ThyssenKrupp <strong>Stainless</strong> International GmbH, Krefeld 26 100.00<br />
ThyssenKrupp Eurinox Paslanmaz Çelik Servis Merkezi A.S., Istanbul, Turkey 1,049 100.00<br />
ThyssenKrupp SILCO-INOX Szervizközpont Kft, Bátonyterenye, Hungary HUF 765,980 100.00<br />
ThyssenKrupp <strong>Stainless</strong> Benelux B.V., Rotterdam, Netherlands 18,151 100.00<br />
ThyssenKrupp <strong>Stainless</strong> DVP, S.A., Barcelona, Spain 5,344 100.00<br />
ThyssenKrupp <strong>Stainless</strong> France S.A., Paris, France 4,864 100.00<br />
ThyssenKrupp <strong>Stainless</strong> International (Guangzhou) Ltd., Guangzhou, PR China USD 9,500 100.00<br />
ThyssenKrupp <strong>Stainless</strong> International (HK) Ltd., Hongkong, PR China HKD 5 2) 100.00<br />
ThyssenKrupp <strong>Stainless</strong> Polska Sp.z o o., Dabrowa Gómricza, Poland PLN 33,499 100.00<br />
ThyssenKrupp <strong>Stainless</strong> UK Ltd., Birmingham, United Kingdom GBP 100 100.00<br />
1) included under IFRS rules<br />
2) end of year not September 30
A. CONSOLIDATED SUBSIDIARIES as at September 30, 2008<br />
ThyssenKrupp VDM<br />
ThyssenKrupp VDM GmbH, Werdohl<br />
ThyssenKrupp (Guangzhou) Nickel Metal Trading Ltd., Guangzhou, PR China<br />
ThyssenKrupp VDM Australia Pty. Ltd., Mulgrave, Victoria, Australia<br />
ThyssenKrupp VDM Austria Gesellschaft m.b.H., Vienna, Austria<br />
ThyssenKrupp VDM Benelux B.V., Dordrecht, Netherlands<br />
ThyssenKrupp VDM Canada Ltd., Markham, Canada<br />
ThyssenKrupp VDM Hongkong Ltd., Hongkong, PR China<br />
ThyssenKrupp VDM Italia S.r.l., Sesto San Giovanni, Italy<br />
ThyssenKrupp VDM Japan K.K., Tokyo, Japan<br />
ThyssenKrupp VDM Korea Co. Ltd., Seoul, Korea, Republic<br />
ThyssenKrupp VDM Mexico S.A. de C.V., Naucalpan de Juárez, Mexico<br />
ThyssenKrupp VDM S.A.R.L., Rueil-Malmaison, France<br />
ThyssenKrupp VDM (Schweiz) AG, Basel, Switzerland<br />
ThyssenKrupp VDM UK Ltd., Claygate, Esher, United Kingdom<br />
ThyssenKrupp VDM USA, Inc., Reno/Nevada, USA<br />
B. NON-CONSOLIDATED SUBSIDIARIES as at September 30, 2008<br />
ThyssenKrupp Acciai Speciali Terni<br />
ThyssenKrupp sTainless aG ThyssenKrupp Group shareholdings<br />
Currency<br />
AUD<br />
CAD<br />
HKD<br />
JPY<br />
KRW<br />
MXN<br />
CHF<br />
GBP<br />
USD<br />
Capital stock<br />
in €1,000<br />
or foreign<br />
currency<br />
31,620<br />
470<br />
2,000<br />
50<br />
51<br />
300<br />
10 2)<br />
10<br />
30,000<br />
100,000<br />
550<br />
120<br />
100<br />
60<br />
600<br />
Share of<br />
capital %<br />
Terni - Società per l'Industria e l'Elettricità s.r.l., Terni, Italy 10 100.00<br />
ThyssenKrupp VDM<br />
VDM-Unterstützungskasse GmbH, Werdohl 26 100.00<br />
C. EQUITY INTERESTS VALUED BY THE EQUITY METHOD (*=JOINT VENTURE) as at September 30, 2008<br />
ThyssenKrupp Acciai Speciali Terni<br />
Euroacciai S.r.l., Sarezzo (BS), Italy<br />
Ilserv S.r.l., Terni, Italy<br />
Terni Frantumati S.p.A., Terni, Italy<br />
ThyssenKrupp Mexinox<br />
Fischer Mexicana S.A. de C.V., Puebla, Mexico* MXN 108,544 2) 50.00<br />
D. NON-CONSOLIDATED SUBSIDIARIES (*=JOINT VENTURE) as at September 30, 2008<br />
ThyssenKrupp VDM<br />
MOL Katalysatortechnik GmbH, Merseburg 77 2) 20.12<br />
1) included under IFRS rules<br />
2) end of year not September 30<br />
1,500 2)<br />
1,924 2)<br />
930 2)<br />
98.04<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
99.98<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
100.00<br />
30.23<br />
35.00<br />
21.00<br />
57
58<br />
Supervisory Board<br />
Dr. Ulrich Middelmann, Bochum Chairman of the Supervisory Board<br />
Vice Chairman of the Executive Board<br />
of ThyssenKrupp AG<br />
Markus Bistram 1) , Dinslaken Vice Chairman of the Supervisory Board<br />
Trade Union Secretary IG Metall Executive Committee,<br />
Düsseldorf office<br />
Ingo Adomat, Krefeld Vice Chairman of the Works Council<br />
of ThyssenKrupp Nirosta GmbH, Krefeld<br />
Gerd Bendiks, Unna Chairman of the General Works Council<br />
of ThyssenKrupp VDM GmbH, Unna<br />
Prof. Dr.-Ing. Wolfgang Bleck, Aachen Chair and head of the institute for metallurgy,<br />
Aachen College of Technology<br />
Dr. Jürgen Claassen, Essen Executive Vice President and Head<br />
of Corporate Communications and Strategy at ThyssenKrupp AG<br />
Manfred Grein, Diez Director Corporate Development, Public Relations<br />
and Executive Bureau, ThyssenKrupp <strong>Stainless</strong> AG<br />
Ralf Heppenstiel, Eschenburg Chairman of the Works Council of ThyssenKrupp Nirosta GmbH,<br />
Dillenburg plant/Vice Chairman of the General Works Council<br />
of ThyssenKrupp Nirosta GmbH<br />
Ulrich Hocker, Düsseldorf Manager-in-Chief of Deutsche Schutzvereinigung<br />
für Wertpapierbesitz e.V.<br />
Andreas Hügelow 2) , Frankfurt Trade Union Secretary IG Metall Executive Committee, Frankfurt<br />
Bernd Kalwa, Krefeld Chairman of the General Works Council<br />
of ThyssenKrupp Nirosta GmbH,<br />
Vice Chairman of the Group Works Council of ThyssenKrupp AG,<br />
Chairman of the Works Council<br />
of ThyssenKrupp Nirosta GmbH, Krefeld<br />
Ralf Klose, Neuenrade Chairman of the Works Council and Vice Chairman<br />
of the General Works Council of ThyssenKrupp VDM GmbH, Werdohl<br />
Dr. Karl-Ulrich Köhler, Mülheim an der Ruhr Chairman of the Executive Board of ThyssenKrupp Steel AG<br />
and member of the Executive Board of ThyssenKrupp AG<br />
Prof. Dr. Reiner Kopp, Aachen Professor emeritus, chair and institute for plastic deformation,<br />
Aachen College of Technology<br />
Marcello Malentacchi, Genf, Switzerland Secretary General of the International Metal Workers Federation<br />
Michael Pieper, Hergiswil, Switzerland Chairman of the Executive Board of Franke Holding AG<br />
Prof. Dr. Michael Pohl, Bochum Executive director of the institute for materials – materials testing,<br />
Ruhr University Bochum, faculty for mechanical engineering<br />
Dieter Pützhofen, Krefeld Former Lord Mayor of the City of Krefeld<br />
Karl-Heinz Salm, Monheim Chairman of the Works Council<br />
of ThyssenKrupp Nirosta GmbH, Düsseldorf<br />
Nikolaus Schmidt 3) , Frankfurt a. M. IG-Metall Executive Committee Frankfurt,<br />
Economy/Technology/Environment Dept.<br />
Dr. Bernd Thiemann, Kronberg im Taunus Partner of management consultancy Leonardo & Co. GmbH & Co. KG<br />
1) Appointed by resolution of Duisburg local court of October 1, 2007.<br />
2) Appointed by resolution of Duisburg local court of September 18, 2008.<br />
3) Died on August 14, 2008.
Magazine<br />
for the 2007–2008 Annual Report<br />
of ThyssenKrupp <strong>Stainless</strong> AG<br />
---<br />
07<br />
08<br />
Materials for<br />
the future<br />
<strong>Stainless</strong> steel and high-performance materials<br />
from the <strong>Stainless</strong> group are helping shape the future<br />
in many areas.<br />
---
60 MaGaZine<br />
stainless steel<br />
Working<br />
at the liMits<br />
ThyssenKrupp nirosTa Materials development<br />
at thyssenkrupp nirosta is a combination of experience,<br />
calculation and vision.<br />
---
stainless steel<br />
MaGaZine<br />
sTainLess sTeeL parTs are immersed in<br />
different-colored solutions to test their properties.<br />
---<br />
61
62 MaGaZine stainless steel<br />
sTainLess sTeeL FroM GerMany DeCoraTes<br />
The WorLD’s TaLLesT BuiLDinG<br />
---<br />
The curtain-wall facade of the building covers an area equivalent<br />
to 17 soccer pitches. To ensure the necessary strength, it features<br />
420 millimeter wide stainless steel strips from ThyssenKrupp<br />
Nirosta, which are fitted on the faces of the story platforms<br />
where they frame the countless glass windows in the building’s<br />
skin. The total of roughly 400 tons of material was produced<br />
by ThyssenKrupp Nirosta, rolled at its Dillenburg plant and<br />
processed by German partner company Strukturmetall.<br />
When selecting the material, the engineers and<br />
designers were guided by several special requirements, such<br />
as resistance to environmental influences, especially given the<br />
high temperatures in the region. It was also important that the<br />
material would not reflect the sun too strongly and disrupt air<br />
traffic at Dubai Airport. “Guaranteeing consistently high surface<br />
quality for this huge facade was a particular challenge,” says Gert<br />
Weiß, head of product service at ThyssenKrupp Nirosta. “The<br />
requirements set by the project developer Emaar in Dubai were<br />
very high. That’s why the client insisted on material and knowhow<br />
from Germany,” adds Helmut Baumgartl, managing director<br />
of Strukturmetall. “German companies enjoy a strong reputation<br />
in the United Arab Emirates for their products, on-time delivery<br />
and subsequent customer service,” confirms chief engineer<br />
Greg Sang.<br />
The WorLD reCorD for the tallest skyscraper has<br />
been held since 2008 by the Burj tower in Dubai, which<br />
is over 800 meters high. Chief engineer greg sang (left) is<br />
one of the key figures in this mammoth project.<br />
---<br />
Construction started in January 2004. If all the concrete<br />
used in the building were shaped into a cube, it would have an<br />
edge length of 61 meters and a weight equivalent to 100,000<br />
elephants. Upon completion, the Tower will have 54 elevators<br />
and offer living and office space to 35,000 people. The Burj Tower<br />
is already being described as a global landmark. And that’s quite<br />
something for the Emirates, where one mammoth project after<br />
another is being realized, such as Waterfront City – a square-
stainless steel<br />
shaped island surrounded by canals housing a city in which<br />
1.5 million people will live and work. Burj Dubai is more than<br />
just a stand-out feature on the skyline. “It’s part of a vision for<br />
this city which stands for the creation of icons, icons which will<br />
demonstrate our ability to construct world-class buildings –<br />
through strong teamwork and innovativeness,” says Sang.<br />
However, the final height of the Tower is still unknown.<br />
During construction work, this is a question that the developers<br />
MaGaZine<br />
have never answered. But there are already postcards in<br />
circulation which allow us to make an estimate – they put the<br />
height of the Tower, compared with the previous tallest buildings<br />
in the world, at over 800 meters. According to official sources,<br />
only two people know what the exact final height will be. One of<br />
them is thought to be the ruler of Dubai, Sheikh Mohammed Bin<br />
Rashid Al Maktoum. ---<br />
63
64 MaGaZine stainless steel<br />
KiTChens are an area where<br />
stainless steel features heavily.<br />
---<br />
MaTeriaLs WiTh reDuCeD niCKeL ConTenT as an<br />
aLTernaTiVe For WhiTe GooDs<br />
---<br />
Nowadays, stainless steel – including the popular NIROSTA 4301<br />
– is an indispensable material in the white goods and sinks sector.<br />
To play an active part in developments on this market and provide<br />
optimum solutions for customers from the household appliance<br />
industry, experts from ThyssenKrupp Nirosta are constantly<br />
researching into new material generations. With costs for some<br />
alloys increasing dramatically, there is an increasing need for lowcost<br />
alternatives. Even though prices, particularly for nickel, eased<br />
significantly toward the end of the reporting period, ThyssenKrupp<br />
Nirosta has developed new, raw material-efficient materials with<br />
which to actively counter future price fluctuations.<br />
One of them is NIROSTA 4640, which offers the same<br />
good properties as the familiar standard material NIROSTA<br />
4301 but has a lower nickel content. Over the decades, NIROSTA<br />
4301 became established as the optimum combination of price,<br />
processability and anti-corrosion properties. Any change in<br />
composition made the material more expensive or completely<br />
altered its properties. Our developers and technicians have now<br />
come up with a solution to this challenge: NIROSTA 4640. Thanks<br />
to an innovative combination of copper, nitrogen and manganese<br />
together with a high chromium content, it was possible to lower<br />
the nickel content from eight or nine percent to 6.5 percent and<br />
thus reduce production costs. At the same time it offers the same<br />
corrosion resistance, formability, weldability and elegance that<br />
customers have admired in NIROSTA 4301 for so long. These<br />
properties open up a wide range of applications: NIROSTA 4640<br />
can be used in appliances, sinks, commercial kitchens, household<br />
goods, cutlery, interior architecture, claddings, motor vehicles<br />
and chemical processing equipment. “As both materials offer the<br />
same properties, customers changing over to the new material<br />
can retain their optimized processing methods while profiting<br />
from the lower material costs. The new material is exactly what<br />
our customers were looking for, and ThyssenKrupp Nirosta is<br />
the sole supplier,” emphasizes Dr. Gabriele Brückner, head of<br />
materials technology at ThyssenKrupp Nirosta.<br />
Another innovation in the field of austenitic stainless<br />
steels is NIROSTA 4618, which has an even lower nickel content<br />
of just 4.5 percent. NIROSTA 4618 also performs convincingly in<br />
areas that were previously the preserve of the standard material<br />
1.4301: Both display comparable levels of tensile strength, yield<br />
strength and elongation. In the case of NIROSTA 4618 this is<br />
made possible by a significantly higher manganese content<br />
and the addition of copper, providing forming behavior which is<br />
comparable to NIROSTA 4301 in terms of both deep drawing and<br />
stretch forming. Due to its chromium content of 16.5 percent, the<br />
anti-corrosion performance of NIROSTA 4618 does not match that<br />
of NIROSTA 4301. With these properties, NIROSTA 4618 is also an<br />
attractive alternative for household goods, commercial kitchens<br />
and sinks.<br />
“Whether it’s 1.4640 or 1.4618 – with these new developments<br />
ThyssenKrupp Nirosta is meeting rising customer demand<br />
for high-quality, cost-efficient materials,” says Gert Weiß, head<br />
of product service at ThyssenKrupp Nirosta: “For example,<br />
NIROSTA 4640 is a low-cost universal steel which matches the<br />
tried-and-tested NIROSTA 4301 in terms of performance. The<br />
price advantage comes to bear in particular when nickel prices<br />
are high. And NIROSTA 4618 offers similar forming properties to<br />
1.4301 and can replace it in many applications.” ThyssenKrupp<br />
Nirosta has developed the new materials to production maturity,<br />
and they are currently being launched. Successful tests have<br />
already been carried out with leading manufacturers of<br />
dishwashers and sinks. ---
stainless steel<br />
neW MaTeriaLs from thyssenkrupp nirosta<br />
provide attractive alternatives to customers from<br />
the white goods sector.<br />
---<br />
MaGaZine<br />
65
66 MaGaZine stainless steel<br />
The appLiCaTions TeChnoLoGy DeparTMenT<br />
at thyssenkrupp nirosta develops new materials for<br />
exhaust systems.<br />
---
stainless steel<br />
speCiaL sTainLess sTeeL MeeTs risinG DeManDs For<br />
eXhausT sysTeMs<br />
---<br />
MaGaZine<br />
“With NIROSTA 4607, ThyssenKrupp Nirosta is meeting increasing customer<br />
demand for high-quality yet cost-efficient materials,” says Stefan Schuberth,<br />
head of technical product service at ThyssenKrupp Nirosta. “With nickel<br />
prices very high at times, manufacturers of auto exhaust systems, who already<br />
make extensive use of stainless steel, have been under severe price pressure.”<br />
The solution: As part of an extensive innovation strategy aimed at saving<br />
raw materials, experts from the company developed a new ferritic material<br />
(NIROSTA 4607) that displays equivalent corrosion resistance properties to the<br />
previous standard material NIROSTA 4301, which contains nickel. Thanks to its<br />
specific composition, the new material costs significantly less. ThyssenKrupp<br />
Nirosta developed this product to market maturity and is now offering it for the<br />
first time on the European market.<br />
“The new material contains no nickel,” explains Schuberth. “So<br />
unlike the nickel-containing stainless steels in widespread use it is completely<br />
independent of nickel prices.” What also makes NIROSTA 4607 so special is<br />
that it is the first European ferritic stainless steel that can match the corrosion<br />
resistance of NIROSTA 4301, which it achieves not only without nickel but also<br />
without molybdenum, another very expensive alloying element. “This allows<br />
our end customers to make major cost savings,” says Schuberth. The new<br />
material can be used wherever the formability of a ferritic stainless steel is<br />
adequate.<br />
But as well as being cost-efficient, this new material has to satisfy<br />
increased requirements: In particular, new engine generations with advanced,<br />
higher-efficiency exhaust technologies generate far higher corrosive and<br />
thermal loads than their predecessors. “The challenge lay in making the<br />
material cost-efficient for our customers while still meeting their high quality<br />
requirements,” says Dr. Gabriele Brückner, head of materials technology at<br />
ThyssenKrupp Nirosta in Düsseldorf-Benrath. “The good solution we have come<br />
up with is primarily down to the expertise and experience of our development<br />
department.” The material delivers not only high corrosion resistance which is<br />
the equal of many commonly used higher-priced materials, but also good hightemperature<br />
strength comparable with the proven high-temperature material<br />
NIROSTA 4509.<br />
These properties make it particularly suitable for use in the hot frontend<br />
areas of the exhaust system. Thanks to the addition of other chemical<br />
elements, the material is also weldable by all methods. “The combination<br />
of high-temperature strength and corrosion resistance is ideal for exhaust<br />
systems with long service lifetimes,” says Dr. Gabriele Brückner. In developing<br />
the material, the company demonstrated its ability to respond quickly and<br />
effectively to changing demands. Weiß: “Thanks to its properties and costefficiency,<br />
we expect our new material to meet with wide acceptance by the<br />
market.“ ---<br />
67
68 MaGaZine<br />
The neW MaTeriaL nirosTa 1.4521<br />
is suitable for drinking water pipes.<br />
---<br />
The riGhT MaTeriaL For DrinKinG WaTer pipes:<br />
neW appLiCaTion For niCKeL-Free sTainLess sTeeL<br />
---<br />
For example, drinking water pipes have traditionally been made from copper,<br />
and in many cases also nickel-bearing stainless steel. With the price of nickel<br />
fluctuating sharply, some manufacturers started to look at alternatives,<br />
such as plastic. “In this situation, we examined the use of lower-priced<br />
stainless steels for these applications,” explains Manfred Buckel, head of<br />
product service at ThyssenKrupp Nirosta. The material needs to satisfy the<br />
following requirements: The steel must not rust, even in unfavorable conditions,<br />
it must have a high-quality surface and be amenable to forming into pipes.<br />
Joints between pipe sections must be secure.<br />
The ferritic stainless steel 1.4521 from ThyssenKrupp Nirosta is a<br />
perfect match for these properties. Although it contains molybdenum, which<br />
is important for corrosion resistance, the material is free of nickel. This grade,<br />
which has been in ThyssenKrupp Nirosta’s portfolio for quite some time, has<br />
now been developed further in collaboration with customers. “The material<br />
was gratefully accepted by the companies. As well as securing the future of<br />
stainless steel drinking water pipes, this also opens up additional market<br />
potential,” says Manfred Buckel from the technical customer advice department<br />
at ThyssenKrupp Nirosta. “For example, the material is also suitable for use in<br />
sprinkler systems and fire extinguisher pipes.”<br />
stainless steel
stainless steel<br />
preVious pipes containing nickel can<br />
now be replaced by the nickel-free stainless steel.<br />
---<br />
MaGaZine<br />
In summer 2007, the Swiss authorities approved the ThyssenKrupp<br />
Nirosta material for use in drinking water pipes. According to Buckel, the lowprice<br />
material is already in widespread and successful use in Switzerland.<br />
Approval has now also been granted in Germany, and ThyssenKrupp Nirosta is<br />
ready: “We adapted our production technology in good time to be able to meet<br />
the rising demand,” says Buckel. ---<br />
69
70 MaGaZine<br />
searChing<br />
for the<br />
Material of<br />
the future<br />
ThyssenKrupp nirosTa how today’s<br />
developers and technicians “design“<br />
high-performance steels.<br />
---<br />
stainless steel
stainless steel<br />
MaGaZine<br />
in The researCh LaBs at<br />
the Düsseldorf-Benrath plant, our specialists<br />
test the different materials.<br />
---<br />
71
72 MaGaZine stainless steel<br />
MaTeriaLs TesTinG<br />
the mechanical properties of the materials<br />
are tested.<br />
WeLDinG poinT<br />
Welding properties are an important criterion<br />
in materials development.<br />
SELECTION<br />
numerous new or improved materials<br />
undergo tests.<br />
roBoT arM<br />
advanced technologies are used<br />
in the tests.
stainless steel<br />
MaGaZine<br />
MaTeriaLs DeVeLopMenT is a CoMBinaTion oF eXperienCe,<br />
CaLCuLaTion anD Vision<br />
---<br />
Success on the market means always coming up with something new. That’s<br />
true of many sectors, and none more than the stainless steel industry. New or<br />
improved materials are a must to meet rising demands in processing and use,<br />
to keep pace with new products and technologies – quite simply to stay ahead<br />
of the competition.<br />
BuT hoW are neW MaTeriaLs DeVeLopeD?<br />
---<br />
Far removed from the alchemy of the Middle Ages or the trial-and-error approach<br />
to the earliest stainless steel metallurgy around 100 years ago, nowadays<br />
knowledge of the mechanisms of modern steels is an exact science. When<br />
today’s materials experts design new steels with outstanding properties, they<br />
do it on a solid scientific basis, using computer-aided processes and advanced<br />
research techniques which permit a detailed insight into the complex inner<br />
workings of today’s high-performance materials.<br />
Modern stainless steel materials need to meet a wide variety of<br />
requirements: fracture-proof at very low temperatures e.g. for liquid gas<br />
transportation, resistant to temperatures up to 1,000 degrees in combustion<br />
engines, non-corrosive to withstand aggressive media, glossy, hygienic and<br />
elegant for aesthetic requirements in kitchens and bathrooms – and at the same<br />
time formable into the most demanding shapes, readily weldable or polishable<br />
for mirror finishes.<br />
Materials experts have to be able to provide the most suitable and most<br />
cost-efficient stainless steel for each requirement. Their extensive knowledge<br />
of material structures and profiles is invaluable in this.<br />
Where do the ideas for new developments come from? Gert Weiß, head<br />
of technical product service at ThyssenKrupp Nirosta, provides the answer:<br />
“Thanks to our presence on the market and our direct contact with customers,<br />
we know what projects they are working on and what contribution we as<br />
materials manufacturers are expected to make. A stainless steel structure is to<br />
be made lighter yet at the same time stronger; the lifetime of a heat-resistant<br />
stainless steel in an exhaust manifold close to the engine is to be extended; the<br />
cycle speeds of highly automated sheet forming processes are to be increased:<br />
These are examples of requirements and inquiries which often push the<br />
materials to their limits.“ ---<br />
73
74 MaGaZine<br />
To Their LiMiTs anD BeyonD –<br />
the materials are subjected to extreme loads.<br />
---<br />
In the next step, the engineers and scientists use computer programs<br />
to identify the ideal composition of a new steel that will deliver the required<br />
extended properties.<br />
“For areas beyond the capacity of the human brain, we have computer<br />
simulation models which can accurately reproduce the complex interactions<br />
of steel structure and steel properties,” says Dr. Gabriele Brückner, head of<br />
materials technology at ThyssenKrupp Nirosta: “We focus not only on the<br />
required end product, but also on environmental, safety and health aspects of<br />
the products and not least economic targets for future marketing efforts.”<br />
Using modern scientific methods and their own experience, our materials<br />
experts can generate predictions and designs that are very close to the<br />
development objective . “It’s a great feeling, and really exciting,” is how Dr.<br />
Gabriele Brückner describes the “birth” of a new stainless steel. “Developers<br />
often drive to the production plant to see how their ‘baby’ is faring in initial<br />
large-scale trials.”<br />
This is where the material shows whether it is suitable for use in<br />
industrial-scale production. ThyssenKrupp Nirosta uses modern, high-performance<br />
production processes which are largely automated, and for reasons<br />
of safety and cost-efficiency it is essential that they run perfectly smoothly.<br />
“Even the most fantastic materials are of no use if they can’t be manufactured<br />
reproducibly and without faults,” says Dr. Gabriele Brückner: “The art of<br />
developing an alloy in such a way that it fits in with production processes calls<br />
for close collaboration with production engineers and the integration of their<br />
know-how from an early stage.”<br />
A material development can finally be regarded as a success if<br />
customers have successfully processed trial deliveries and are convinced that the<br />
innovation will deliver sustained added value. “As well as commercial success<br />
for steel producer and customer, new developments have a further effect,”<br />
says Stefan Schuberth, head of applications technology at ThyssenKrupp<br />
Nirosta: “They also demonstrate our credentials as an innovative, competent<br />
cooperation partner to our customers and cement our position as the Number 1<br />
on the market.”<br />
The time required from initial idea to market launch varies greatly.<br />
“Development time depends to a very large extent on the type of innovation<br />
involved, and of course on the complexity and the commercial aspects of the<br />
stainless steel
stainless steel<br />
The welding properties of the materials are<br />
reviewed in the laboratory.<br />
---<br />
MaGaZine<br />
task at hand,” says Dr. Gabriele Brückner: “If we or the customer are looking for<br />
quick results, for a superior new material for today’s market, then everything<br />
simply has to be done quickly.”<br />
Naturally, the experts at ThyssenKrupp Nirosta also address future<br />
scenarios, the technologies and materials for tomorrow’s market and beyond.<br />
“Then of course we need visions, we have to formulate hypotheses and<br />
constantly hone them, and in these cases development work obviously takes<br />
longer,” says Weiß. “But today’s market becomes yesterday’s market quicker<br />
than you would think.” ---<br />
75
76 MaGaZine stainless steel<br />
inDusTriaL pLanTs<br />
provide applications for the<br />
new superferritic steels.<br />
---<br />
neW VoD ConVerTer aLLoWs proDuCTion oF<br />
hiGh-sTrenGTh speCiaL GraDes<br />
---<br />
As well as developing innovative materials, ThyssenKrupp <strong>Stainless</strong> also<br />
attaches great importance to using the very latest plant technology. As part of<br />
this strategy, a VOD (Vacuum Oxygen Decarburization) converter was put into<br />
operation at ThyssenKrupp Acciai Speciali Terni in the past fiscal year. This<br />
latest-generation unit, which in contrast to conventional AOD (Argon Oxygen<br />
Decarburization) converters operates in a vacuum for greater efficiency,<br />
constitutes a quantum leap in terms of technology and in many ways represents<br />
a global milestone for this type of equipment. For example, in the interests<br />
of the environment the converter in the Terni meltshop is fitted among other<br />
things with an additional burner which burns the CO gas created during the<br />
decarburization process into CO 2 – which is far less hazardous – before it enters<br />
the atmosphere.<br />
In the vacuum oxygen decarburization process, the carbon/hydrogen<br />
and nitrogen content of high-alloy molten metals is reduced to a minimum<br />
under vacuum. That’s why this technology is also used to improve the quality<br />
of large ingots for Società delle Fucine, a subsidiary of ThyssenKrupp Acciai<br />
Speciali Terni. Forgings up to 500 tons in weight are processed in the VOD<br />
converter to minimize their hydrogen content.
stainless steel<br />
The neW VoD ConVerTer in terni<br />
started operation in spring 2008.<br />
---<br />
MaGaZine<br />
The innovative VOD technology enables ThyssenKrupp Acciai<br />
Speciali Terni to extend its product portfolio in line with market requirements<br />
to include, for example, superferritics, duplex steels and superalloys. In this<br />
context, the Terni plant has developed superferritic steels such as the 470LI<br />
-24Cr which represent a competitive alternative to nickel-bearing steel grades<br />
with high corrosion resistance. Applications for this material include restaurant<br />
equipment, household appliances, industrial plant and shipbuilding. In<br />
applications which do not require very high formability, superferritic steels can<br />
offer a cost-efficient alternative to conventional austenitic grades and enable<br />
customers to plan with greater security with more stable long-term costs. ---<br />
77
78 MaGaZine stainless steel<br />
CoMMerCiaL KiTChens are<br />
a major area of application for<br />
the new materials from italy.<br />
---<br />
superFerriTiC sTainLess sTeeLs FroM Terni<br />
---<br />
An extended product portfolio thanks to the use of innovative technology: In<br />
2008 ThyssenKrupp Acciai Speciali Terni invested in a VOD converter to provide<br />
new ways of exploiting market potential. Work processes have been optimized,<br />
and in particular the company’s portfolio of ferritic steels has been expanded to<br />
include special grades. For example, the Terni plant has been producing new<br />
superferritic steels since mid-2008.<br />
Two of the latest material innovations are 470LI-24 Cr and 460LI-21 Cr.<br />
Potential applications include commercial kitchens, oven hobs, industrial<br />
washing machines, restaurant equipment, inner paneling for elevator cabs,<br />
street furniture and boilers. “Thanks to their unique production process and<br />
their special chemical composition, they offer greater corrosion resistance<br />
than austenitic stainless steels,” says Dr. Alfred Otto, ThyssenKrupp Nirosta<br />
Executive Board member responsible for strategic product development and<br />
thus for product development in the entire <strong>Stainless</strong> group. The 470LI-24 Cr and<br />
460LI-21 Cr grades are produced as flat-rolled steel. Both deliver outstanding<br />
yield and tensile strengths, good elongation and deep-drawing properties as<br />
well as a uniform and homogeneous microstructure. Dr. Harald Espenhahn,<br />
Executive Board Chairman of ThyssenKrupp Acciai Speciali Terni, emphasizes<br />
the additional advantage of the new AST production route: “By dispensing with<br />
the use of nickel and thanks to the higher yield strength that allows thinner<br />
gauges, the two innovations 470LI-24 Cr and 460LI-21 Cr offer economically<br />
attractive alternatives to the standard materials 316(1.4301) and 304(1.4401).”<br />
Market studies carried out by ThyssenKrupp Acciai Speciali Terni<br />
show significant potential for the new material types on the European market.<br />
Additional demand is expected from the Asian market.<br />
The two newly developed materials were produced for the first time<br />
in the late summer of 2008. In September 2008 ThyssenKrupp AST launched<br />
a national and international advertising campaign to present the two new<br />
innovative materials and other superferritic steels produced in the VOD converter<br />
and market them successfully. ---
stainless steel<br />
eLeVaTor CaBs are a possible area of application<br />
for the new superferritics.<br />
---<br />
MaGaZine<br />
79
80 MaGaZine high-performance materials<br />
sCientists<br />
With an eYe for<br />
the PraCtiCal<br />
ThyssenKrupp VDM the aim of researchers is<br />
to find customized solutions.<br />
---
high-performance materials<br />
MaGaZine<br />
MiLLiMeTer preCision is applied to sheet processing,<br />
such as here in the altena plant.<br />
---<br />
81
82 MaGaZine high-performance materials<br />
enhanCeD perForManCe for power plants<br />
(here in scholven) thanks to the new material from<br />
thyssenkrupp VDM.<br />
---
high-performance materials<br />
MaGaZine<br />
speCiaL aLLoy For The eCo-FrienDLier poWer pLanT<br />
GeneraTions oF The FuTure<br />
---<br />
As part of a team of power plant operators, boiler manufacturers and component<br />
producers, ThyssenKrupp VDM has developed a material which helps boost<br />
the performance of power plants. Modern plants have an energy conversion<br />
efficiency (ratio of energy input to energy output) of around 43 percent.<br />
Increasing temperatures and pressure permits higher conversion efficiencies<br />
which in turn reduce CO2 emissions. Attention is focusing in particular on<br />
so-called 700 degree technology, which will operate at temperatures of 700<br />
degrees and a pressure of 350 bar. “This new power plant generation needs<br />
materials capable of meeting the extremely high requirements involved,” says<br />
Dr. Jutta Klöwer, head of research and development at ThyssenKrupp VDM in<br />
Werdohl. “We have developed an alloy which has already proved its suitability<br />
in extensive testing.”<br />
Nickel-based superalloys are already an established part of the gas<br />
turbines used in combined cycle power plants. The development of 700°C<br />
technology means they must now also be used in the boilers and steam<br />
turbines of coal-fired power plants. In collaboration with power plant operators<br />
and manufacturers, ThyssenKrupp VDM developed the special alloy Nicrofer<br />
5520CoB-alloy 617b specifically for use in power plant boilers. It is based on<br />
the gas turbine material Nicrofer 5520Co-alloy 617. “By adding boron and<br />
controlling the content of strength-enhancing elements such as aluminum,<br />
titanium and cobalt, we succeeded in increasing the permissible mechanical<br />
stresses by 20 percent,” says Dr. Jutta Klöwer. “That allows engineers to use<br />
thinner-walled parts.”<br />
Pipes and components made from this alloy are already being used<br />
in a test plant in North Rhine-Westphalia – construction work on the first 700<br />
degree power plant is scheduled to start in 2010. “The next step is to validate<br />
the cost-effective production of standard components from this alloy,” says<br />
Dr. Jutta Klöwer. “This will focus in particular on the extremely high quality<br />
requirements made by power utilities on boiler materials.” But research work<br />
is continuing: Engineers are already working on materials for the next-butone<br />
generation of coal-fired power plants. And not without reason: By the year<br />
2030, global demand for electricity is expected to double. Innovations in the<br />
technology and materials of fossil-fueled power plants will play a key role in<br />
protecting the environment and conserving resources. ---<br />
83
84 MaGaZine high-performance materials<br />
CLean enerGy in the form<br />
of heat and electricity is supplied<br />
by fuel cells.<br />
---<br />
enerGy sourCe oF The FuTure<br />
---<br />
Fuel cells, the innovative energy source of the future, supply<br />
clean energy in the form of heat and electricity. Extremely<br />
energy-efficient, these ‘mini-power plants’ are on the advance.<br />
The German hydrogen and fuel cell association DWV expects fuel<br />
cells to be used ‘very soon’ in portable electronic devices such<br />
as laptops, phones and chargers, and predicts a breakthrough in<br />
the auto industry ‘before the turn of the decade.’ Crofer 22 H, a<br />
new material from ThyssenKrupp VDM, is a key material in this<br />
promising technology.<br />
The best known form of fuel cell is the polymer fuel<br />
cell, which uses pure hydrogen and atmospheric oxygen. A<br />
second variant, the solid oxide fuel cell (SOFC), also known as<br />
high-temperature fuel cell, can be operated both with hydrogen<br />
and with diesel. “The advantage of this technology is obvious:<br />
Hydrogen is not yet available everywhere, but diesel fuels are,”<br />
says Dr. Heike Hattendorf, project manager at ThyssenKrupp<br />
VDM. “Applications include auxiliary units to provide additional<br />
electricity in cars, trucks, ships and mobile homes as well as<br />
household power supplies and power plants.”<br />
SOFC technology places great demands on the hightemperature<br />
strength of the materials used: Unlike polymer<br />
fuel cell technology, where operating temperatures are only<br />
between 80 and 100 degrees Celsius, temperatures in SOFC fuel<br />
cells can climb as high as 900 degrees. This is where Crofer 22 H<br />
comes in, as it can provide the required strength at these high<br />
temperatures. It displays considerably higher strength than the<br />
proven alloy Crofer 22 APU – a joint success developed by experts<br />
from ThyssenKrupp VDM and the Jülich Research Center.
high-performance materials<br />
neW GeneraTions of fuel cells have been developed<br />
in collaboration with the Jülich research Center.<br />
---<br />
In the fuel cells, Crofer 22 H is used in the so-called<br />
interconnectors. These are layers between the individual cells that<br />
connect them into efficient “stacks”. “The ‘H-Type’ interconnectors<br />
allow the use of thinner material in the fuel cells which cuts costs.<br />
In addition, the SOFC stacks are more robust, as the more stable<br />
H-interconnectors prevent bulging during heating and cooling,”<br />
says Robert Steinberger, fuel cell project manager at the Jülich<br />
Research Center. “Bulging can lead to short-circuits or blockages<br />
in the gas channels which would render the fuel cell inoperative.<br />
Crofer 22 H combines the advantages of Crofer 22 APU with<br />
greater strength and thus robustness.”<br />
MaGaZine<br />
The full list of requirements for interconnector materials<br />
is a long one. “In addition to high-temperature strength they<br />
need to be electrically conductive, corrosion-resistant, easy to<br />
process, and have high mechanical stability and load capacity.<br />
In addition there must be no mechanical stresses between<br />
the interconnectors and the individual cells,” says Dr. Heike<br />
Hattendorf. “So the steel used in the interconnectors needs to<br />
have a similar coefficient of expansion to the ceramic materials<br />
the individual cells are made of.” Crofer 22 H meets all these<br />
challenges and has now been produced for the first time as coil<br />
and sheet. ---<br />
85
86 MaGaZine high-performance materials<br />
in The heaTinG ConDuCTor LaB<br />
in Werdohl, the new material is put to<br />
the test.<br />
---<br />
sMaLL Wire ConVerTs enerGy inTo heaT<br />
---<br />
Clothes dryers, air conditioning systems, kettles and hair dryers all have one<br />
thing in common: They all need heating conductors to convert electricity from<br />
the wall socket into thermal energy. These conductors are used wherever heat<br />
is required quickly, i.e. without lengthy warm-up times. Though small, they<br />
have to withstand high loads: For example, when a clothes dryer is switched<br />
on, the electricity inside the unit passes through the conductor and heats<br />
it. When the machine is switched off, the conductor cools again to room<br />
temperature – and that makes great demands on the material. Dr. Heike<br />
Hattendorf, project manager at ThyssenKrupp VDM: “In the lab we work with<br />
temperatures up to 1,200 degrees Celsius to accelerate lifetime testing. In later<br />
use, the temperatures are generally lower and so the conductors have a longer<br />
lifetime.” With the newly developed Cronifer 40B, ThyssenKrupp VDM now has<br />
another material in its portfolio which is ideal for use in heating conductors.<br />
The length of time a heating conductor “survives” in an electrical<br />
device depends on the material it is made of, the kind of device and the way<br />
it is used. A good heating conductor material needs to deliver a high lifetime<br />
and high electrical resistivity. That means the material must offer the highest<br />
possible resistance to the flow of electricity through it, forcing the energy<br />
to make more “effort” to get through the wire – the greater the “effort”, the<br />
hotter the wire becomes. At the same time, the material must not melt when<br />
it heats up.<br />
Some applications also call for high shape stability. The US household<br />
appliance industry is a good example. Unlike in Europe, clothes dryers and<br />
air conditioning systems in America use so-called “open heating elements”<br />
consisting of suspended wires which are only supported at a few points. It is<br />
important that these wires do not sag during operation as this could cause a<br />
short circuit.<br />
Heating conductors are manufactured from wire, ribbon or foil<br />
strip and then processed into heating elements. Wires, for example, are coiled<br />
into spirals. However, they should not be confused with the filaments used
high-performance materials<br />
The heaT of the wire is essential for<br />
many household appliances.<br />
---<br />
MaGaZine<br />
in light bulbs. Though they have the same shape, they perform different<br />
functions: In light bulbs, the objective is to convert the electrical energy into as<br />
much white light as possible.<br />
Suitable materials for heating conductor wires include nickelchromium<br />
alloys with added silicon and iron-chromium-aluminum alloys.<br />
“Heating conductor alloys like Cronifer II first became available in the 1930s<br />
and have been developed continuously ever since,” explains Jürgen Webelsiep,<br />
head of quality assurance in the wire product unit at ThyssenKrupp VDM.<br />
“With Cronifer 40B we have developed a further heating conductor material<br />
which delivers top performance in terms of lifetime and dimensional stability<br />
but costs less than the previously used Cronifer II as it has a significantly lower<br />
nickel content.”<br />
This is a major triumph for the company’s researchers. Cronifer II<br />
comprises 60 percent nickel. In the new Cronifer generation, the nickel content<br />
has been reduced to only 37.5 percent yet lifetimes are still four-fifths those<br />
of Cronifer II. “This development was made possible by the recognition that<br />
lifetime and shape stability are influenced not only by the nickel content but<br />
also by other elements such as chromium, silicon, carbon and nitrogen. So<br />
while reducing the nickel content of Cronifer 40B, in parallel we fine-tuned<br />
the ratios of various other elements, “ says Dr. Heike Hattendorf.<br />
Cronifer 40B is patent pending. The material has already been<br />
produced in large volumes. Manufacturers of heating elements have been sent<br />
specimens of Cronifer 40B wire and are currently performing their own tests on<br />
the new material. ---<br />
87
88 MaGaZine<br />
high-performance materials<br />
the Path to<br />
high-PerforMan<br />
Materials<br />
ThyssenKrupp VDM is researching today to develop<br />
the materials of tomorrow.<br />
---
Ce<br />
high-performance materials<br />
MaGaZine<br />
in The WeLDinG LaB TesTs<br />
are CarrieD ouT on The MaTeriaL’s<br />
proCessinG properTies.<br />
---<br />
89
90 MaGaZine high-performance materials<br />
in The researCh LaB in altena,<br />
the materials are tested in caustic fluids<br />
for resistance to wet corrosion.<br />
---<br />
ThyssenKrupp VDM is researChinG ToDay To<br />
DeVeLop The MaTeriaLs oF ToMorroW<br />
---<br />
“One of ThyssenKrupp VDM’s most popular products is Nicrofer<br />
5923 hMO, which is mainly used in the chemical industry and in<br />
environmental technology. It’s a top-quality high-performance<br />
material that gives corrosion processes no chance.” Dr. Jutta<br />
Klöwer, head of research and development at ThyssenKrupp VDM,<br />
points to a glass jar in the chemical lab filled with a bright green<br />
fluid. “That’s ‘Green Death’,” she says. “A solution that destroys all<br />
materials. Except Nicrofer 5923 hMo.”<br />
Green, blue, yellow and red: material death by wet<br />
corrosion has many colors in the ThyssenKrupp VDM lab.<br />
Chemical lab worker Sebastian Maus stands in front of a row of<br />
plastic canisters, taps the required amounts of the caustic fluids<br />
into a flask and submerges a small metal plate in the solution. In<br />
consultation with the respective project managers from the R&D<br />
department, Maus decides which solutions should be used and<br />
whether the materials are to be tested in them for 24 hours or a<br />
whole month. The project managers are involved in all stages of<br />
the research process, which for a major new development lasts an<br />
average of two years.<br />
The process always starts with intensive discussions<br />
with customers. “We define the exact requirements a new material<br />
has to meet in advance – for example what kind of acid it must<br />
be resistant to or in what gas and at what temperature it is to be<br />
used,” says Dr. Heike Hattendorf, project manager in the R&D<br />
department at ThyssenKrupp VDM. “The aim is always to find a<br />
tailored solution that meets our customers’ requirements.”<br />
Discussions and contract negotiations are followed by<br />
extensive literature and patent searches. “After sifting through all
high-performance materials<br />
The eXperTs from thyssenkrupp VDM<br />
need a great deal of experience to assess welding<br />
properties.<br />
---<br />
the information already available on the market, we have an initial<br />
idea for a new alloy composition,” Dr. Hattendorf continues.<br />
And then the computer comes into play. “We simulate<br />
the manufacture of a new material to be ideally prepared for real<br />
production,” explains Dr. Jutta Klöwer.<br />
The success of the computer simulations shows that this<br />
is the right approach. Thanks to the computer, there are no more<br />
“total flops” during laboratory-scale melting. “But we still get the<br />
odd surprise,” continues Dr. Klöwer. “Basically we are trying to add<br />
to existing knowledge rather than reinvent the wheel. But we work<br />
with 40 different alloying elements, so it’s impossible to predict<br />
absolutely everything in advance. Sometimes a test series delivers<br />
completely unexpected results. On occasions we’ve discovered<br />
previously unknown material properties in this way.”<br />
On average it takes six months of theory before the first<br />
series of laboratory melts can be carried out and the new materials<br />
tested in the corrosion labs. Once the right alloy composition has<br />
been confirmed, things get really exciting.<br />
“To optimize our knowledge pool, we also cooperate<br />
closely with the Fraunhofer and Max-Planck Institutes, the<br />
universities of Aachen, Braunschweig and Freiberg as well as<br />
other German universities with activities in materials technology,”<br />
says Dr. Jutta Klöwer. One positive side-effect of this cooperation<br />
is that the company establishes contact with young talents who<br />
can be tied to ThyssenKrupp VDM at an early stage as interns or<br />
undergraduate employees.<br />
MaGaZine<br />
ThyssenKrupp VDM is currently working on around<br />
30 research projects, in which it also profits from the knowledge<br />
available at other ThyssenKrupp companies. “We make increasing<br />
use of synergies. Just now we are working with Uhde on a crosssegment<br />
project for a material to be used in coal gasification,<br />
and in our colleagues from ThyssenKrupp Nirosta we have found<br />
partners in the area of research into flue gas desulfurization,”<br />
explains Dr. Klöwer.<br />
Customers appreciate ThyssenKrupp VDM’s creativity.<br />
“In Europe in particular we have a very strong position,” says<br />
Dr. Bernd de Boer from the applications technology department<br />
at ThyssenKrupp VDM. “Another of our strengths is that we are<br />
always very close to our customers and establish direct contacts<br />
very quickly. One service that is very well received is the sending<br />
of specimens. We can have a selection of ThyssenKrupp VDM<br />
material specimens sent to customers for initial test purposes<br />
within two days. The customers then get back to us with their<br />
additional requirements.”<br />
“We are scientists with an eye for the practical and are<br />
proud of every development that comes onto the market,” adds Dr.<br />
Heike Hattendorf.<br />
The next major practical challenge? Together with the<br />
Max-Planck Institute in Düsseldorf, the research department<br />
at ThyssenKrupp VDM is already working on an alternative to<br />
Nicrofer 5923 hMo. ---<br />
91
92 MaGaZine<br />
high-performance materials<br />
Weight reDuCtio<br />
With titaniuM<br />
ThyssenKrupp TiTaniuM environmental requirements<br />
are widening the range of applications for this<br />
high-performance material.<br />
---
n<br />
high-performance materials<br />
MaGaZine<br />
in The TurBines of modern jumbo jets,<br />
titanium is now an essential material.<br />
---<br />
93
94 MaGaZine high-performance materials<br />
in eXhausT sysTeMs for motor vehicles,<br />
titanium helps reduce weight.<br />
---<br />
MaTeriaLs FroM ThyssenKrupp TiTaniuM<br />
MaKe Cars eCo-FrienDLier<br />
---<br />
The future limits to be placed on CO 2 emissions are forcing auto manufacturers<br />
to rethink their designs. They have recognized that particular improvements<br />
can be achieved by reducing body weight. “There’s an increasing acceptance<br />
that more has to be invested in lightweight construction,” says Dr. Jürgen<br />
Kiese, head of research and development at ThyssenKrupp Titanium in Essen.<br />
“The advantages offered by titanium are so great that it is worth using the<br />
material in cars despite its higher costs.” Exhaust systems made of titanium<br />
can frequently cut weight by tens of kilograms. Specially for this application,<br />
ThyssenKrupp Titanium has developed the alloy Ti-X which includes the<br />
relatively low-cost elements iron and silicon.<br />
“Unlike commercially pure titanium, which cannot be used at very<br />
high temperatures, the new material is a high-temperature alloy that is also<br />
resistant to oxidation and can be used at temperatures up to 750 degrees<br />
Celsius,” explains Kiese. To enhance the alloy for use at higher temperatures<br />
up to 1000 degrees Celsius, ThyssenKrupp Titanium developed a thin aluminum<br />
cladding which is applied to the alloy as a special protective layer. “This<br />
layer protects the material against oxidation under high thermal loads and<br />
makes it suitable for use in the hot parts of exhaust systems close to the<br />
engine,” says Kiese.<br />
Titanium has the same strength as steel, so the advantage of<br />
production use in auto construction would be its significantly lower weight,<br />
which in turn helps reduce emissions. For manufacturers of exhaust systems,<br />
who are currently testing the new material, this opens up unprecedented<br />
opportunities. That’s why Kiese is positive about the future: “As the material is<br />
also particularly low in price, we see great opportunities to increase its use in<br />
automotive applications.“ --
high-performance materials<br />
in airCraFT new materials from<br />
thyssenkrupp titanium provide added safety.<br />
---<br />
MaGaZine<br />
speCiaL aLLoys For airCraFT TurBines<br />
proViDe aDDeD saFeTy<br />
---<br />
A new development from ThyssenKrupp Titanium is contributing to greater<br />
safety in aircraft: Production routes for ingots of the special titanium alloy Ti-<br />
6Al-4V have been improved under a research project. This has made it possible<br />
to produce a particularly fine-grained and low-textured – i.e. homogeneous –<br />
material for use in the high-pressure compressors of aircraft turbines. These<br />
parts, which are located in the center of a turbine and are used to compress the<br />
air, have to withstand severe loads. “Compared with conventional materials,<br />
the optimized structure of the alloy delivers significantly improved mechanical<br />
properties,” explains Dr. Jürgen Kiese, head of research and development at<br />
ThyssenKrupp Titanium in Essen. “Strength and formability are particularly<br />
enhanced.” Both attributes serve to make the material more robust, for it is<br />
vital that these critical parts never fail.<br />
“The material is also easier to test, which is a further boost to safety,”<br />
says Kiese. “Ultrasound testing can identify even the smallest defect in the<br />
alloy.” This is a major step forward for ThyssenKrupp Titanium in the aerospace<br />
industry, where all materials and parts are subjected to lengthy test phases.<br />
Customers are also showing great interest. One of them is MTU Aero<br />
Engines, a leading German manufacturer of jet engine components whose<br />
products are to be found in one in three passenger aircraft, be they Airbus or<br />
Boeing. The company is currently carrying out tests on the titanium alloy. In<br />
parallel with this, the various steps such as heating and forming are being<br />
examined by computer simulation at the RWTH technical university in Aachen.<br />
Upon completion of the project, it will be possible to produce titanium forgings<br />
using the new material in the near future. Kiese: “We’re pleased to be able to<br />
contribute to making aircraft even safer, and we’re confident that there will be<br />
a big market for the material.“ ---<br />
95
96 MaGaZine high-performance materials<br />
enerGy By TanKer<br />
---<br />
Rising gas prices and dependency on a handful of exporting<br />
nations are impacting European energy supplies. The search<br />
for alternatives is in full swing. And that’s why in recent years<br />
one segment of the global gas industry in particular has been<br />
gaining in importance: Liquefied Natural Gas (LNG). By 2020,<br />
the volume of trade in LNG is expected to have doubled to<br />
around 350 million tons per year. By 2030, LNG will account for<br />
around 25 percent of total gas consumption – in 2007 the figure<br />
was just 4 percent. Unlike normal gas, which is transported by<br />
pipeline over distances of up to 3,200 kilometers, ocean tankers<br />
are used to ship LNG over longer distances. This expands the<br />
group of possible exporters to include the Middle East, North and<br />
West Africa and Australia. As the importance of LNG grows, so<br />
in TerMinaLs the gas is regasified.<br />
---<br />
too do requirements for materials which can meet the special<br />
conditions of LNG transportation. ThyssenKrupp Titanium and<br />
ThyssenKrupp VDM have recognized the potential of this growth<br />
market and can supply special materials which are suitable<br />
for use in the pipes for loading and unloading the tankers with<br />
liquefied gas, in chemical liquefaction equipment and also in the<br />
coolers for the tankers’ diesel engines.<br />
Before LNG can be shipped by sea, the natural gas first<br />
has to be liquefied. This is done by cooling the gas to minus 163<br />
degrees Celsius in special coolers up to 60 meters high, in which<br />
the gas is reduced to one six-hundredth of its original volume for<br />
transportation. Around 250 tons of titanium are used for various<br />
items of equipment in these coolers. The next step is to pump
high-performance materials<br />
speCiaL FreiGhTers transport the liquefied<br />
natural gas across the oceans. the plant and pipes for<br />
lng technology require titanium and nickel alloys.<br />
---<br />
the liquefied gas into tankers with capacities of up to 140,000<br />
cubic meters, which ship it to the importing countries. Plate heat<br />
exchangers are used to cool the oil of the ships’ diesel engines<br />
during transportation. “20 tons of titanium per ship are used for<br />
this,” explains Helmut Jost, head of marketing at ThyssenKrupp<br />
Titanium in Essen. “Titanium’s special resistance to seawater<br />
corrosion makes it the only material suitable for use in these<br />
coolers.” At the port of destination the LNG is unloaded in special<br />
terminals, after which the liquid gas is regasified and fed into the<br />
supply grid. “The draft of the big tankers makes it impossible for<br />
them to move right up to the shore,” explains Dr. de Boer, head<br />
of applications technology at ThyssenKrupp VDM in Werdohl.<br />
“So pipelines several kilometers long extend out to sea from<br />
the land.” Unlike conventional pipes, which rest on supports<br />
above sea level, new developments make it possible to lay the<br />
pipes either below or on the sea bed. Compared with the raised<br />
structures, these pipelines are more environment-friendly, lower<br />
in cost and offer greater safety.<br />
The pipelines comprises a combination of various<br />
materials in several “layers”: The outer pipe is a concrete-clad<br />
steel pipe, while the inner pipe is made from the VDM material<br />
Pernifer 36. Depending on the pipe diameter, ThyssenKrupp VDM<br />
supplies up to 200 tons of plate for one kilometer of pipeline,<br />
and some export terminals require pipeline lengths of over 15<br />
MaGaZine<br />
kilometers. Various stainless steel processors then produce<br />
longitudinal-welded pipes from the material in diameters of 24<br />
to 36 inches. “The material is ideal for this application,” says Dr.<br />
de Boer. “Its combination of extremely high cryogenic toughness<br />
and very low coefficient of thermal expansion ensure that long<br />
pipelines can be laid without the need for bends or expansion<br />
bellows.” The latter would normally be necessary because the<br />
temperature of the outer pipe is always close to the ambient<br />
temperature, while that of the inner pipe varies between ambient<br />
temperature and minus 165 degrees Celsius. To avoid heat losses,<br />
there is an additional insulating layer between the two pipes.<br />
ThyssenKrupp VDM has also addressed the specific requirements<br />
of these applications and has developed special production routes<br />
and a welding filler metal which allow the production of extremely<br />
long pipe segments. This meets the high safety requirements of<br />
the terminal operators and reduces production costs.<br />
Experts predict that LNG’s share of the global gas<br />
industry will rise significantly over the next 25 years. “There are<br />
currently 146 tankers under construction,” says Jost. “Demand<br />
for corresponding terminals and gas liquefaction plants is also<br />
growing continuously. This is a future market for our material and<br />
our company.” Dr. de Boer is also optimistic: “We expect a steady<br />
increase in customer orders and are pleased to be making a contribution<br />
to the development of alternative energy sources.“ ---<br />
97
98<br />
ThyssenKrupp sTainLess:<br />
VieW ThrouGh an eLeCTron MiCrosCope<br />
---<br />
This unusual view from the laboratories of ThyssenKrupp VDM in Unna shows<br />
acid residues on a metallic surface.
Contact<br />
Publisher<br />
ThyssenKrupp <strong>Stainless</strong> AG<br />
Kaiser-Wilhelm-Straße 100<br />
47166 Duisburg / Germany<br />
Telephone: +49 (0) 203 52 0<br />
Fax: +49 (0) 203 52 45132<br />
Central Division<br />
Public Relations / Executive Affairs<br />
Telephone: +49 (0) 203 52 45130<br />
Fax: +49 (0) 203 52 45132<br />
E-Mail: stainless@thyssenkrupp.com<br />
Design<br />
CCS Werbeagentur GmbH<br />
Photos<br />
Ralf Bauer, Emanuel Bloedt,<br />
Karsten Enderlein, Rainer Kaysers,<br />
Manos Meisen, Tania Reinicke a. o.<br />
This report can also be downloaded<br />
from the internet at<br />
www.thyssenkrupp-stainless.com
<strong>TK</strong> <strong>Stainless</strong> AG<br />
Kaiser-Wilhelm-Straße 100<br />
47166 Duisburg / Germany<br />
www.thyssenkrupp-stainless.com