SMS Demag AG, Germany, is selling the blast furnace, coking plant and direct reduction activities of SMS Demag SpA of Genoa, Italy, to Paul Wurth SA of Luxembourg, effective June 30, 2005.

According to Burkhard Dahmen, the Member of the Board responsible for Steelmaking/Continuous Casting Technology at SMS Demag AG, “This unites the strengths of the Ironmaking Division of SMS Demag, which lie in project management and mechanical engineering, with the technological fortes of Paul Wurth SA in the ironmaking field.”

Following completion of the purchase, Paul Wurth will be capable of supplying a full range in the blast furnace, coking plant and direct reduction business areas.

“Due to the takeover of activities and staff from SMS Demag SpA, the Paul Wurth group will substantially increase its capabilities, above all in plant construction. Furthermore, it will improve its closeness to customers and efficiency on a global level,” is how Marc Solvi, Chairman of Paul Wurth SA, summed up the agreement.

Responding to customer wishes, Paul Wurth and SMS Demag will work in a strategic partnership whenever joint projects are viable.

SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology. In the year 2004 some 9,500 employees worldwide generated a turnover of about EUR 2.20 billion.