Voest-Alpine Industrieanlagenbau (VAI), has officially opened a new workshop — VAI Manufacturing (Taicang) Co. Ltd. — in China.

Located in the Shanghai region, the company will be staffed with 30 local and overseas engineers by the end of 2005. The facility was established for the purpose of supplying high quality equipment and components manufactured in China for a wide range of VAI’s production lines equipment for both Chinese and overseas companies. The company foresees facility expansion with a future second development phase.

Steve Beswick, the Managing Director of VAI Manufacturing (Taicang) Co. Ltd., was quoted as saying “This is an exciting new development for VAI and shows its commitment to the Chinese market and its intention to improve the service offered in China. VAI is now an integral part of the supply chain based in China to support the local metals producers. By utilizing a combination of local skills supported by training and expertise from Europe we can offer high class and cost effective performance”.

The company initiated operation of the new VAI company in December 2004 with the manufacture and assembly of equipment for long rolling mills. The first equipment completed was a VAI-Pomini coil compactor completely manufactured in China for Shougang. This order was the first of its type to be manufactured in the region.

The first overseas delivery was shipped to Malaysia in March 2005 for a VAI-Pomini customer as part of a larger supply contract. The equipment supplied included shears, pinch rolls and additional cooling equipment for a Long Products Mill line.

Voest-Alpine Industrieanlagenbau (VAI), a company of the listed VA Technologie AG, is one of the world’s leading engineering and plant-building companies for the iron, steel and aluminum industries with a multinational company structure and special focus on technology, automation and services. VAI achieved total sales of 1,160 millions EUR in 2004 and employs approximately 3,400 people worldwide.

Following the announcement on December 10, 2004, by Siemens AG Österreich of a takeover bid for VA Tech, the general period of acceptance terminated on February 9, 2005. Over 90% of VA Tech stock was sold to Siemens at a price of EUR 65. Consequently, one precondition for a takeover by Siemens has been fulfilled. However, until the anti-trust authorities in the EU, USA and Canada approve the takeover, both VA Tech and Siemens are subject to a prohibition on the concentration process.