Voest-Alpine Industrieanlagenbau GmbH & Co. (VAI) recently signed a contract with Alchevsk Iron and Steel Works (Ukraine), for the supply of a new steel plant. The facility will incorporate two 300-tonne LD converters, each capable of producing 5.4 million tonnes of steel per year.

Valued at approximately 150 million Euro, this contract is regarded as one of the most significant contracts to be awarded this year in the Ukraine and represents a major milestone in the modernization process of the Alchevsk plant. VAI’s state-of-the-art environmental systems will also significantly reduce the air pollution in the region that is related to the steelmaking.

After start-up of the new plant, which is scheduled for January 2007, Alchevsk will be able to shut down parts of the Siemens-Martin Process route. The Alchevsk Iron and Steel Works will then be capable of producing up to 6.4 million tonnes of steel per year that will be cast at the two Continuous Slab Casters, the second of which is scheduled for commissioning by the end of 2006.

The new steel plant will be equipped with VAI’s latest developments in the area of converter technology and automation.

This contract follows VAI’s supply of Continuous Slab Caster No. 1 in 2003 and Continuous Slab Caster No. 2 in May 2005.

Alchevsk Iron and Steel Works, Ukraine, is a company of the Industrial Union of Donbass (IUD).

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 million EUR in 2004 and employs approximately 3,400 people worldwide.

The listed VA Technologie AG (VA Tech) is a focused Technology and Service Company, which creates value for its customers throughout the entire plant life cycle. Leading international positions are held in Metallurgy, Power Generation, Transmission and Distribution and Infrastructure. In the financial year 2004, the Group, with 16,562 employees, attained total sales of 4,073 million EUR.

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%. Thus, one precondition for a take-over by Siemens is fulfilled. However, until the anti-trust authorities in the EU and Canada approve the takeover, both VA Tech and Siemens are subject to a restraining order.