Ceepackaging

Corporate

KHS confirms acquisition

After fulfillment of the necessary conditions, notably approval by the EU Commission, Salzgitter AG acquired 78% of Klöckner’s shares on July 5, 2007, giving it, along with the 5% share it already held, an 83% share of capital.

The connection of the company to the new majority shareholder, the profitable and globally active Salzgitter group, will create future synergy for both companies. Klöckner-Werke AG will be a core element of the new Technology
Division of Salzgitter AG.

Klöckner-Werke AG acts as a holding group, with subsidiaries successful on the global market.

The focus of its business activity is in KHS AG in Dortmund. KHS AG, headquartered in Dortmund, Germany, is an internationally active manufacturer of filling and packaging equipment for the beverage, food, and non-food industries, which will profit greatly from the new constellation. The KHS mission that “KHS is a global market leader and preferred supplier of the packaging industry, with focus on beverage applications and complete systems” will be supported to the fullest extent in the context of this reorientation.

Due to its highly international orientation, KHS is of great interest as a service provider for globally active customers. Today, KHS has more than sixty sales and service bases, and is present on all continents. Production sites are located in Germany, the U.S.A., Brazil, Mexico, India, and China, with a total of fourteen production facilities.

In 2006, the 4600 employees of the KHS Group realized sales of about 750
million euros. The number of employees and the sales figures have increased steadily in recent years. For 2007, another significant increase in sales is anticipated, which shows among other things that KHS has a great deal of future potential.

Valentin Reisgen, Chief Executive Officer of KHS AG, “We welcome this new constellation greatly. With Salzgitter AG, our parent company Klöckner-Werke AG has gained a successful, stable partner, so that an extremely positive path into the future for KHS is as good as certain. We are already seeing comprehensive support with respect to KHS’ corporate strategies and vision for the future.”