TK Stainless

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