voestalpine AG — M&A Activity 1999

Apr 29, 1999

News Details

Ad-hoc | 29 April 1999 16:56

Ad hoc-Service: VOEST-Alpine Stahl AG englisc

Ad hoc-Mitteilung verarbeitet und übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist der Emittent verantwortlich. —————————————————————————— GRANT PRIDECO to become 50% partner of VOEST-ALPINE STAHLROHR KINDBERG Kindberg’s long-term future secured GRANT PRIDECO, a division of the New York stock exchange listed WEATHERFORD INTERNATIONAL INC., is to take a 50% holding in VOEST-ALPINE STAHLROHR KINDBERG GmbH & Co. KG, a company of the listed VOEST-ALPINE STAHL AG. The purchase price for this half-share is ATS 400 m. GRANT PRIDECO is one of the world’s leading suppliers of drilling strings with a global market share of 70% and 300 locations in 50 countries. The company supplies the large Western oil and gas production companies, further processing the special, high-quality oil-field pipes manufactured by VOEST-ALPINE STAHLROHR KINDBERG. The company, which is based in Houston/Texas, has no interest in entering the oil-field pipe production area itself and therefore, Kindberg will remain a full part of the Long Products Division of the VOEST-ALPINE STAHL Group. This partnership means that the future of the Kindberg plant is secure. The agreements incorporate long-term supply contracts, which will ensure a sustained improvement in production levels. As Franz Struzl, the responsible VOEST-ALPlNE STAHL AG Managing Board member, stresses, “GRANT PRIDECO has guaranteed a minimum purchase of 45,000 t of pipes for the first twelve months. During subsequent years, this quantity is to rise to a maximum of 80,000 t from an annual technical capacity of 320,000 t. This means that the current low levels of production can be raised.” The Donawitz steelworks, which delivers the raw materials for the pipes, will also benefit from the higher future requirement from Kindberg. As a consequence of the GRANT PRIDECO investment, the VOEST-ALPINE STAHL Group can anticipate a positive effect on results amounting to tens of millions of schillings. Due to the reduction in its ownership share, in future VOEST-ALPINE STAHL AG will no longer fully consolidate VOEST-ALPINE STAHLROHR KINDBERG, but rather at equity. Following the signing of the contracts, Bernard J. Doroc- Danner, the WEATHERFORD President, stated that, “The fully modernised VOEST-ALPINE KINDBERG plant has a reputation for outstanding product quality and adherence to exact tolerances. The partnership, with VOEST-ALPINE KINDBERG guarantees us reliable, top class supply. In addition, the location in Austria provides us with an opportunity to capture new markets in Eastern Europe.” Kindberg/Houston, April 29,1999 Ende der Mitteilung