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BUSINESS DEVELOPMENT

The Business Area’s Sales amounted to 408.0 MEUR, which is a decrease of 9.4% compared to 2006 (450.5 MEUR). Many large orders have been in their initial processing stages, especially during the Second Half of 2007, thus making low Sales contributions. Despite the decline in Sales, EBITA, at 29.7 MEUR in 2007, was practically unchanged compared to last year (2006: 30.6 MEUR). As a result, EBITA margin surged to 7.3% (2006: 6.8%).

Order Intake in 2007 developed very favorably.  At 636.4 MEUR, it surged by 58.3% compared to 2006 (401.9 MEUR), thus reaching a new record level. Orders were received from customers in all major steel producing regions, confirming the strong competitive position of Andritz as a leading global supplier to the international steel industries.

During the reporting period, the following important projects were successfully finalized:

• Andritz successfully finished the rebuilding and rehabilitation of the stainless steel annealing and pickling lines of ThyssenKrupp Nirosta, Krefeld, Germany. These lines, supplied and installed by Andritz in 2003, had been damaged in a fire. Rebuilding was finished six weeks ahead of schedule and with even better technological parameters. By placing the order with Andritz, ThyssenKrupp Nirosta has confirmed its satisfaction with the installations and underlying services provided by Andritz.

• Wuhan Iron and Steel (WISCO) signed the final acceptance certificate for the hydrochloric acid regeneration plant supplied by Andritz. The scope of supply consisted of two regeneration plants, one silica reduction plant, and one waste acid purification plant. The total capacity is 15,200 l/h. The customized technology meets all the contractual guarantee figures for the highest quality of purified iron oxide on the market.

• Vacuumschmelze GmbH (VAC) in Hanau, Germany signed the final acceptance certificate for the engineering, erection, and commissioning of a 20-high mill, which was delivered on a turnkey basis including all necessary hydraulic, coolant circulation, and filtration systems. The customized mill technology meets all the contractual guarantee figures for the highest operational reliability and productivity of the mill as well as flatness, thickness, and quality of the product.

• Taiyuan Iron and Steel (Group) Co. (TISCO), China’s largest stainless steel producer, signed the final acceptance certificate for one of the world’s largest annealing and pickling lines for cold-rolled strip supplied by Andritz. The line processes stainless steel in the thickness range from 0.3 to 3.0 mm and up to 1,320 mm wide, with an annual capacity of 500,000 metric tons. In addition, Andritz received the acceptance certificate for a tension levelling line from the same customer. The strip to be treated with the tension levelling line is stainless steel in the thickness range from 0.2 to 2.0 mm and up to 1,300 mm wide; annual capacity is 200,000 metric tons.

• From voestalpine, Linz, Andritz received the acceptance certificate for an inspection line, dimensioned for a strip width of 700 – 1,759 mm. The line is equipped with two uncoiler sections, a rotating cut-to-length line in the entry section, a laser welder, side trimmer and center-cut shear, and a strip oiling system in the exit section, as well as a horizontal strip inspection cabin.