Voest Alpine Industrieanlagenbau GmbH (VAI) received a contract from Posco, South Korea, to modernize a Pickling and Oiling Line in their Kwangyang works. The upgraded line will have an annual capacity of 800,000 tonnes of high quality sheet for direct sale in local and international markets.

Start-up of the new line is scheduled for July 2006.

The modernization will be executed by VAI’s daughter company, VAI Clecim, France, which will supply engineering and core equipment consisting of the process section with polypropylene tanks and strip accumulators.

This project follows three similar pickle line upgrades that VAI has conducted for Posco over the last ten years.

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. Pursuant to IAS, during the 2004 financial year the Group achieved sales of EUR 1,160 million with a work force of 3,434.

Following the announcement on December 10, 2004, by Siemens AG Österreich of a takeover bid for VA Tech, the extended period of acceptance terminated on February 25, 2005. The total of own and tendered shares to Siemens amounts to 97.15%. Consequently, one precondition for a takeover by Siemens has been fulfilled. However, until the anti-trust authorities in the EU and Canada approve the takeover, both VA Tech and Siemens are subject to a prohibition on the concentration process.