July 2006 — ThyssenKrupp Steel is focusing its construction elements group more strongly on target markets in Western and Eastern Europe.

Under the plan, production of steel sandwich panels in Germany will be concentrated at the Kreuztal-Eichen location in the Siegerland area and the Oldenburg location in Holstein. These facilities will take over almost all the production volume of the two other plants in Hof and Leipzig, which will be shut down in 2007. The 53 affected employees will be offered new jobs in the construction elements group or the ThyssenKrupp Group, or other socially acceptable solutions.

The measures will make the remaining Kreuztal-Eichen and Oldenburg locations much more efficient in supplying the core market of Western Europe, with logistical advantages playing a major role. In Eichen, relocation of equipment from Leipzig to a site close to ThyssenKrupp Steel’s Color Profit Center will create a production and competency center with three sandwich lines for innovative construction products. Oldenburg will take on the lucrative production volumes of the Hof plant, enabling it to better utilize existing capacities. Economies of scale and synergies will create secure jobs at both locations.

A forward strategy is planned for Eastern Europe based on a new location in this region with a favorable cost structure and short distances to customers. Utilizing equipment no longer needed in Hof, the new plant will be established in Hungary or Romania to exploit growth opportunities in the region. Starting material is to be supplied by ThyssenKrupp Steel’s Color Profit Center.

Against a background of difficult market conditions in the construction sector, ThyssenKrupp Steel says this plan will further strengthen the competitiveness of its construction elements group, which with 831 employees in Germany, Austria, Belgium and France generated sales of €334 million in fiscal 2004/2005.