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Press report, 11-03-2008

MOBILE, ALABAMA [November 2, 2008] 

On the first anniversary of groundbreaking ceremonies for their new Calvert, Alabama, development, ThyssenKrupp Steel USA and ThyssenKrupp Stainless USA, today announced some key performance measures in the construction of the new world class complex they are jointly building 30 miles north of Mobile. The facilities will process carbon steel and stainless steel for high-value applications by manufacturers in the U.S. and throughout North America.  ThyssenKrupp Stainless USA and ThyssenKrupp Steel USA are scheduled to begin operations in 2010.

The project is believed to be the largest private industrial investment in the U.S. over the next decade and is a rare case of in-sourcing:  The project will create an estimated 2,700 permanent jobs domestically when it becomes fully operational in 2010.  During the construction phase, the project is expected to generate approximately 29,000 jobs, and between 38,000-52,000 jobs over a 20-year period, according to independent economic studies.

Both segments are pleased to announce the following milestones and achievements in construction at the new site:

Site Preparation, May 2007 (site selection)-October 2007 
 Tree harvesting—more than 1,740 truck loads (~ 35 loads/day)
 Clearing and grading—1,450 acres, more than 780 soccer fields
 Soil testing—26,850 feet drilled for geotechnical testing

November 2007 (groundbreaking)-Present
 Grading and filling—over 10 million cubic yards of earth moved 
 115 pieces of large equipment on site
 Engineering for infrastructure, pilings, and foundations completed
 36,000 piles driven
 Foundations for buildings completed or underway
 Foundations for equipment underway
 Power substations completed; electrical buildings and switchrooms underway
 Unique colour design completed for interior and exterior buildings
 Majority of steel hung for the Stainless segment’s Cold Rolling Mill [see photo], with about 50% hung for its Cold Annealing and Pickling Line; structural steel erection underway in one of the Steel segment’s storage areas.
 Grading for Stainless segment’s Meltshop completed with grading contracts coming to a close
 Construction begun on wastewater treatment plant
 Barge terminal designed, contracted and under construction
 More than 2,000 temporary construction employees are on site each day and their number will increase

On the employment front, Andy Ritter, Vice President of Human Resources for ThyssenKrupp Steel USA and David Scheid, Vice President of Human Resources for ThyssenKrupp Stainless USA, announced that, since January 2008:
 25,228 applications and resumes had been received for both salaried and hourly positions for the project
  A total of 304 permanent project team members have been hired in both segments
 82 ThyssenKrupp Stainless USA team members are currently at other ThyssenKrupp Stainless facilities in Germany undergoing training at operating facilities
 The Alabama Industrial Development Training program is set to break ground on a state-of-the-art training center at the project site
 Workers interested in salaried employment may see available opportunities and apply online at www.thyssenkruppnewusplant.com ; those interested in hourly positions should apply at www.jobs.aidt.edu/steel.

Procurement for the mega-project is proceeding at a swift pace with a large percentage of contracts awarded to vendors in Alabama and the U.S. Gulf Coast region.  Both segments announced that:
 Roughly 25% of the bidding process has been completed (primarily construction related)
 Volume of contracts awarded to date exceeds $750 million
 More than 90% of production equipment has been ordered
 Supply contracts for energy, natural gas and media (e.g., water and technical gases) have been awarded
 Alabama suppliers account for roughly 50% of contracts executed to date, excluding specialty equipment not available through U.S. companies.

“I could not be more pleased with the team we have assembled here for our new project or the people and resources we have found to work with in Alabama and in the South,” said Dr. Ulrich Albrecht-Frueh, CEO of ThyssenKrupp Stainless USA. “We are following ambitious targets and are confident they will be realized.  This is the sort of ‘can do’ attitude we were impressed with in Alabama during the site selection process and it is proving true.  We are pleased to be a partner here.” 

Bob Soulliere, President and CEO of ThyssenKrupp Steel USA echoed Albrecht-Frueh’s comments, “From the cooperation we continue to receive from all levels of government, the hospitality that’s been extended to us by our new neighbors in Alabama and especially in the Mobile area, we absolutely remain convinced we made the right decision to make Alabama our home.”

Next on the construction horizon for the Stainless facilities is installation of the equipment and commissioning and testing, leading toward the opening of the segment’s Cold Rolling Works late next year. These will be key roles for trainees who will begin returning from Germany this month.  An upcoming milestone for the Steel facilities is the erection of structural steel in the segment’s hot strip mill. 
In May 2007, ThyssenKrupp announced that it would build the new state-of-the-art steel and stainless steel processing facility in Alabama after a highly competitive site selection process in the U.S.  The site covers approximately 3,500 acres of land and approximately 7 million square feet of building space with a 1,200-acre building footprint.  Once operational, the facilities will operate 24 hours per day, 365 days per year, and will provide jobs for approximately 2,700 people on the company payroll excluding on-site contractors. For transportation access, the facilities will require 580 railroad cars per week, a sea vessel every three days with raw materials, and outgoing shipments via rail, barge and truck.

Additional information can be found at http://www.ThyssenKruppNewUSplant.com, the project’s Web site dedicated to sharing information with stakeholders and the general public.

The ThyssenKrupp Group, based in Duesseldorf, Germany, is a global technology company which consists of five business segments – Steel, Stainless, Technologies, Elevator and Services. The company has annual sales of approximately €47 billion (US$61 billion) and employs 198,033 employees in over 70 countries worldwide.

ThyssenKrupp Steel, based in Duisburg, Germany, is the holding company for the carbon steel activities of the Group. It is the largest single entity of ThyssenKrupp. Last year, it produced approximately 14 million metric tons of crude steel and generated sales of €13.2 billion (US$17.5 billion). This business segment is focused on high-quality carbon steel flat products and is one of the world’s leading producers, ranking second in Europe. The segment employs approximately 39,600 people. Its subsidiaries are active in processing, coating and steel services. Subsidiaries include Rasselstein GmbH, the world’s largest tinplate production site in Andernach, Germany, and Duisburg-based ThyssenKrupp Tailored Blanks GmbH, world market and technology leader in laser-welded blanks for the auto industry.   

ThyssenKrupp Stainless is the holding company of the Stainless segment. Based in Duisburg, Germany, it brings together all of ThyssenKrupp’s activities in the areas of stainless steel flat-rolled products, nickel alloys and titanium. Thanks to its innovation potential, the segment has achieved leading market positions worldwide. ThyssenKrupp Stainless has annual sales of €6.4 billion (US$8.3 billion) and 12,037 employees around the globe. Operating companies include German-based ThyssenKrupp Nirosta, Italy’s ThyssenKrupp Acciai Speciali Terni, ThyssenKrupp Mexinox in Mexico, Shanghai Krupp Stainless in China and ThyssenKrupp VDM, a producer of nickel materials with plants in Germany and the United States. ThyssenKrupp Stainless International is responsible for all stainless sales, distribution and service activities of the Stainless segment where these are not directly allocated to the production companies. The Stainless segment serves global customers in the appliance, electronics, automotive and aerospace industries.

ThyssenKrupp operations can be found in every state in the U.S.  There are 70 ThyssenKrupp companies in more than 400 locations accounting for 25,000 employees and more than US$9.7 billion in annual sales. Through its predecessor companies, ThyssenKrupp has been part of the U.S. historical landscape for 170 years, dating back to 1837 when Alfred Krupp, founder of predecessor company Krupp, provided coin minting machine prototypes to the U.S.

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