May 25, 2011
- Strategic expansion in growth market Russia
- Full revenues and earnings contribution as of 2012
- Significant potential for future capacity increases
Unterneukirchen (Germany). SDAX-quoted specialty-chemicals Group SKW Metallurgie consequently continues its global expansion strategy. In that context, it opened, in the Russian City of Kolomna in the District of Moscow, on May 24, 2011 a production facility for high-end Affival cored wire. Thereby the number of production sites of the SKW Metallurgie Group increases to 16 – thereof seven for cored wire production. From the new plant is Russia, cored wire is going to be sold to the Russian steel industry as of H2 2011. That market, which is going to grow significantly in the years to come, could so far only be served to a very limited extent from Affivalâ€™s main plant in France due to high transportation costs and import duties. In the year of 2012, the new Russian plant of the SKW Metallurgie Group is going to contribute to revenues and earnings for the first full year.
â€žBy inaugurating our plant in Russia, we achieved a further significant step in the growth strategy towards the BRIC countries. We see Russia and also the adjacent countries as important future markets of the SKW Metallurgie Group due to their high steel production and their continuing focus on quality steelâ€ś, says the SKW Metallurgie Groupâ€™s CEO, Ines Kolmsee.
Significant potential for further expansion of capacitiesThe SKW Metallurgie Group considers the Russian market for high-end cored wire as strongly growing in the medium term. Additional potential has also been identified in the adjacent countries. Production at the new facility in Kolomna can meet even such growing demand without difficulties, since the Group-owned industrial real estate offers sufficient space for short-term capacity expansions; hence, production capacity may be adjusted to increasing sales volume with relatively minor additional investments.
The SKW Metallurgie Group commands, already now, good contacts to leading steel plants in the region. The increased presence on the Russian cored wire market will sustainably strengthen those client relationships and open new sales potential also for other products of the Group, in particular in hot metal desulphurization.
SKW Stahl-Metallurgie Holding AG
Head of IR and Corporate Communications
Phone: +49 8634-62720-0
Direct line IR/Press: +49 89 5998923-22
Fax: +49 8634-62720-16
About SKW Stahl-Metallurgie Holding AG
SKW Metallurgie is the global market leader for chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Groupâ€™s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world’s leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The companyâ€™s operating business is broken down into the two core segments â€śCored Wireâ€ť and â€śPowder and Granulesâ€ť, and the â€śOtherâ€ť segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US (6), Canada, Mexico, Brazil, South Korea, Sweden, Bhutan, the Peoples’ Republic of China (2) and India (2 via joint ventures). As described in this press release, an additional plant is being opened in Russia. In addition, a plant expansion in Brazil is under construction.Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange’s Prime Standard since December 1, 2006 with ISIN DE000SKWM013, and have been included in the SDAX index from June 23, 2008.Â DISCLAIMERThis press release contains statements on future developments that are based on currently available information and involve risks and uncertainties that could cause the actual results to differ from these forward-looking statements. These risks and uncertainties include, for example, unpredictable changes in political and economic conditions, particularly in the steel and paper industry, the competitive situation, interest and currency risks, technological development as well as other risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and its Group companies accept no obligation to update such forward-looking statements.