As of December 31, 2004, the Andritz Group had a total of 5,314 employees (2003: 4,771). This 11.4% increase, mainly due to the acquisition of Bird Machine, the NETZSCH Filtration business, VA TECH WABAG’s fluidized bed drying systems Business Area, and Otto Kaiser, was partly offset by staff adjustments in some Business Areas.

Of the total, 1,205 are Andritz AG employees (2003: 1,173) and 4,109 work for Andritz Group companies (2003: 3,598).

During 2004, the staff in the Chinese locations increased steadily as Andritz continued its strategy to establish a strong local organization in this fast growing market.

All vacancies in managerial and other functions were filled with highly qualified candidates. To secure staffing for future projects, the Group has been actively recruiting for positions to be filled in 2005.

To attract well-educated personnel, the Group intensified its contacts with universities in Austria and Finland, and participated in job fairs organized by those universities.

Activities in 2004

During the year under review, the implementation of the Group-wide management training program was continued with success. Twenty-two employees from tewelve different Andritz Group Companies participated in the second module of the Andritz Management Challenge Programme, organized in cooperation with the Management Centre of St. Gallen, Switzerland. Participants were impressed by the program and gave very good feedback. After some minor adjustments to the program, another session was conducted in October 2004, with 20 managers from ten different locations participating.  Managers from new subsidiaries were invited to participate in order to assist with a quick and smooth integration in the post-acquisition phase.

Approximately 25 employees participated in a Group-wide Conflict Resolution Management program.

In addition to Group-wide training activities, local training programs were held in all major Group companies.

Human Resources activities with a Group-wide impact were coordinated globally, with a focus on major projects involving employees from departments and Divisions in different geographic locations.

Human Resources activities were conducted in accordance with the Group’s Quality Management system.

Employees by region 2004 (2003) %