ThyssenKrupp Steel AG will strengthen ThyssenKrupp Acciai Speciali Terni with an investment of €124 million in stainless steel production by 2006. The investment will feature a new €30 million cold-rolling mill, which is scheduled to start production as early as 2006.

The investment will help to raise overall stainless steel capacity at the Terni plant from the current level of 1.2 million tonnes to 1.4–1.5 million tonnes by fiscal year 2008/2009. Half of the expansion will be in high-grade cold-rolled products. The investments were expected to be approved by the supervisory bodies by early to mid March.

A 12-point plan has been drawn up for ThyssenKrupp Acciai Speciali Terni in collaboration with the Italian trade unions at the location of the company. Based on current plans, job numbers in Terni are to be maintained at the present levels until 2008/2009. This means that 634 employees with temporary contracts will be taken on permanently. All employees in the electrical steel activities, which are to be phased out by the end of 2005 at the latest, will be given alternative employment in the company.

Under the deal, ThyssenKrupp Acciai Speciali Terni has agreed to support site and infrastructure improvements in the region in dialogue with the government, unions and local institutions. The company will also investigate the possibility of cooperating with institutions and companies on research, development and scientific projects.