When was BÖHLER-UDDEHOLM founded?
The BÖHLER Group in Austria and the UDDEHOLM Group in Sweden merged to form the BÖHLER-UDDEHOLM Group in the spring of 1991. The result was the largest tool steel manufacturer in the world, with a wide-reaching sales and distribution network concentrating on special steel. The Group’s parent company, BÖHLER-UDDEHOLM AG, was established (with headquarter) in Austria in the same year. The new Group’s component companies - BÖHLER and UDDEHOLM - both have a manufacturing tradition stretching back several centuries.
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Where are BÖHLER-UDDEHOLM's facilities?
The main production facilities are in Austria (Kapfenberg, Mürzzuschlag, Ybbstal, Traismauer), Sweden (Hagfors, Munkfors), Brazil (Sumaré), Germany (Hamm, Wetzlar), Belgium (Seneffe), Turkey, USA and Mexico and heat treatment operations worldwide. BÖHLER-UDDEHOLM also has an international sales and distribution network comprised of approximately 100 sales companies in 50 countries covering all five continents.
Under the site "Group Links" you will find addresses, telephone and fax numbers of the BÖHLER-UDDEHOLM production companies and sales and distribution companies all over the world.
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What are BÖHLER-UDDEHOLM's core business areas?
The BÖHLER-UDDEHOLM Group is organized in four core businesses:
- (tool steel, high speed steel, valve steel, special engineering steel and specialty steels)
- (welding materials for joining, repair and cladding, solid wire, filler wire, stick electrodes, brazing and soldering materials)
- (Strip steels for the production of saws to cut wood, stone, plastics, metals and foodstuffs; Strip steels (rule die steel, cutting and creasing rules) to punch cardboard, paper, plastics, leather and textiles; Strip steels (hot and cold rolled strip steel) for the automobile industry (rule dies) as well as the production of ball bearings and special strip steel for the manufacture of watches; Special cold rolled strip steel in very thin widths for valves, razor blades, scalpels, needles, weave reed, crepping coater blades and printing coater blades
- (structural components for the aerospace and utility vehicle industries, turbine blades for gas- and steam turbines, marine motors and valves, cutting rings for tunnel drilling machinery, special forgings for construction
of agricultural machinery, crud oil exploration and tunnel drilling)
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What contribution do the core businesses make to overall sales?
In 2006, High Performance Metals Division contributed 69.2%, Welding Consumables Division 13.4%, Precision Strip Division 9.9%, Special Forgings Divison 7.5% for overall sales of 3,090.2 m€.
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Who are the end-users of BÖHLER-UDDEHOLM products?
 Automotive 36%, Consumer goods 22%, Power generation 11%, Mechanical engineering 10%, Aircraft 6%, Electronics 5%, Petrochemical 5% and other 5%.
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What is the primary product of BÖHLER-UDDEHOLM?
The most important product in the BÖHLER-UDDEHOLM special steel group is tool steel, which is subdivided into cold work steel, hot work steel and plastics moulding steel and special grades. Cold work steels are used in manufacturing tools for punching, stamping and cutting. Hot work steels are used in manufacturing tools for cutting, die-casting and metal bar extrusion. Plastics moulding steels are used in manufacturing tools for pressing, extruding and injection moulding plastics.
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How is tool steel manufactured?
The raw material for tool steel is pre-sorted scrap, which is purchased from scrap dealers and the metal-working industry, or recycled from our own production. This high-grade scrap is melted at temperatures of 1600° C in electric arc furnaces with a capacity of 25, 50, 70 and 100 t in Sumaré (Brazil), Kapfenberg (Austria), Hagfors (Sweden) and Wetzlar (Germany). Induction furnaces are available for smaller quantities.
The liquid steel is then poured into so called ladles, where all secondary metallurgical processes are carried out and the final alloy is adjusted. The most important alloying elements are vanadium, chromium, nickel, tungsten, cobalt and molybdenum. The melting process is controlled by state-of-the-art computer systems and the chemical composition of each charge is verified in our own laboratories. Tool steels have an average alloy content of 5% to 15%, but this figure can range up to 50% for high-alloy steel, thus the term high-grade or special steel
The charge is then cast into blocks weighing between 0.6 and 100 tonnes. These blocks are hot-rolled in the Group's rolling mills, or forged using high-performance machinery. End products range from large blocks, bars, and profiles to wire made of tool steel and are therefore referred to as long products (in contrast to flat products). Our rolling mill in Mürzzuschlag produces sheets and plates.
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Who buys tool steel?
The Group supplies roughly 100,000 customers throughout the world, whereby the most important consumers of tool steel are tool builders. These companies receive not only high quality tool steel from BÖHLER-UDDEHOLM but also advice, know-how and a wide range of services (machining, surface treatment, heat treatment, etc.) to guarantee selection of the right grade and processing for their specific needs. Average sales to an individual tool builder total roughly 110 kg of tool steel.
Tool builders use our products to construct a large range of industrial tools and forms for cutting, punching milling or forming metals and plastics, and supply these tools to a wide variety of manufacturers. Their customers include subcontractors to the automotive industry as well as manufacturers of household goods, electronics, plastics, toys and the food industry.
BÖHLER-UDDEHOLM is the world’s leading manufacturer of tool steel, with a market share of approximately 34% (based on value) and an annual crude steel production of above 800,000 tonnes. This special steel is a classic niche product, where not quantity, but rather quality, durability, wear and corrosion resistance, polishing characteristics - is of primary importance. Tool steel is therefore considerably more expensive than carbon, construction or stainless steels.
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What about the world market for tool steel?
The worldwide use of tool steel equals roughly 0.1% of total annual steel demand of roughly 1.2 billion tons.
By far the largest single market for tool steel is Germany. The most important global consumers are the automobile industry (approx. 40%) and the household appliances industry (approx. 25%).
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How is BÖHLER-UDDEHOLM positioned in the world market for tool steel?
BÖHLER-UDDEHOLM is the world’s leading manufacturer of tool steel, with a market share (by value) of about 34%. Annual crude steel production by the Group amounts to roughly 800,000 tonnes. This special steel is a classic niche product, where it is quality that counts (durability, strength, corrosion resistance, polishing characteristics) rather than quantity. For this reason, tool steel is considerably more expensive than carbon steels, structural or stainless steels.
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What are BÖHLER-UDDEHOLM's principal markets?
 A regional analysis of sales for the reporting year shows the following picture: the EU countries ranked first as the most important market
for BÖHLER-UDDEHOLM with a 60% share of sales, followed by America with 20%, Asia with 13%, other European countries with 4%, Australia with 2% and Africa with 1%.
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What are BÖHLER-UDDEHOLM's competitive advantages?
- Steep barriers to entry
- Global market leader in the important product segments
- No mass-produced goods – high price and value per kg
- High prices permit profitable, global exports
- Global sales and distribution network
- Strong customer loyalty to the "BÖHLER", "UDDEHOLM", "VILLARES METALS" and " BUDERUS" brands
- Lower level of dependence on economic cycles compared to carbon steel or stainless steel
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What are the business drivers for BÖHLER-UDDEHOLM?
The main business driver for BÖHLER-UDDEHOLM is the replacement of models in the automobile industry and in the domestic and electronic appliances sector. Our business is not driven by the number of cars, hair dryers or mobile phones manufactured, but by frequent changes in the design and shape of the end products. This creates a demand for new production tools, with a corresponding increase in the demand for tool steel.
In the automobile industry in particular – in spite of there being fewer platforms - there is a pronounced trend towards more frequent new models (roadster, saloon, van, city car, SUV, fun car, etc.) with the consequent changes in design. With all manufacturers, the models are being replaced in shorter and shorter cycles. Hundreds of tools are required to manufacture a new car model at a cost of about 175 m€. Twenty percent of this spending is on tool steel.
The growing purchasing power in the Asian countries is fostering a demand for tool steel to manufacture domestic appliances, toys, sporting products and entertainment electronics. The boom in the IT sectors is also shortening the product cycles of mobile phones, telephones and computers.
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What strategic direction is BÖHLER-UDDEHOLM following?
In BÖHLER-UDDEHOLM, "core business” is defined as an area in which the company occupies position one, two or three in the world. If it is not possible to reach this market position in an area, the business is disposed of. As a result, BÖHLER-UDDEHOLM has withdrawn from seven areas in recent years, leaving it to concentrate on four core businesses - High Performance Metals Division, Welding Consumables Division, Precision Strip Division and Special Forgings Division.
From a strategic point of view, BÖHLER-UDDEHOLM plans to further intensify down-stream activities. Specific actions include investments in and acquisitions of local steel traders and strengthening of the heat treatment and machining activities.
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When was BÖHLER-UDDEHOLM AG privatized?
The Austrian State Holding Company ÖIAG reduced its 100%-stake in BÖHLER-UDDEHOLM AG through three public offerings via the stock market (1995, 1996, 2003) down to 0%. The final privatization step took place in November 2003, in which ÖIAG sold its remaining 25%-stake via the stock market. Since 25 November 2003, BÖHLER-UDDEHOLM is a fully privatized company.
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Where is BÖHLER-UDDEHOLM listed?
BÖHLER-UDDEHOLM’s shares were first listed on 10 April 1995 on the Vienna Stock Exchange. The Share ist listed in the Prime Market Segment.
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Who owns BÖHLER-UDDEHOLM AG?
The share capital of BÖHLER-UDDEHOLM AG consists of 51 million shares after a stock split in June 2006. In 2007, BU Industrieholding GmbH sold its 20.95% stake in BÖHLER-UDDEHOLM to voestalpine AG. Subsequently voestalpine launched a voluntary public takeover bid for BÖHLER-UDDEHOLM. As a consequence, a majority of 90.24% of BÖHLER-UDDEHOLM AG is now held by voestalpine AG and the other 9.76% remain free floating.
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What is BÖHLER-UDDEHOLM's position on shareholder value?
The management of BÖHLER-UDDEHOLM AG has declared commitment to increasing shareholder value. By concentrating on profitability and prosperity in this way, the management can better guarantee the long-term healthy growth of the company, which is in the interests of all stakeholders including employees, customers and suppliers.
The management of BÖHLER-UDDEHOLM AG regard themselves as trustees of the capital made available by the owners in order to generate profits.
In order to focus the minds of senior managers in the BÖHLER-UDDEHOLM Group on profitability, salaries are structured with a performance-related component of between 20% and 100%. All employees in the production and sales companies are entitled to rewards that are dependent on their particular company achieving specified earnings before tax (EBT).
Investment decisions within the four core businesses of the BÖHLER-UDDEHOLM Group are made primarily on the basis of whether they involve a long-term increase in value for the company.
In order to guarantee an increase in value for the shareholders, BÖHLER-UDDEHOLM aims for an EBIT Margin of 8-12% over an economic cycle, an equity ratio of 40% and a return on capital employed after tax (ROCE) of 9-11% over an economic cycle.
In order to make the accounting system even more transparent, especially for foreign investors, BÖHLER-UDDEHOLM has followed International Accounting Standards (IFRS) since 1998.
In the past years, BÖHLER-UDDEHOLM pursued a shareholder-friendly dividend policy, aiming for a payout ratio between 40 and 50%.
The company has a dedicated Investor Relations Department that provides proactive, open and regular information to the investment community.
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What are the Financial Targets (Ranges) for BÖHLER-UDDEHOLM?
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Financial Targets |
Target/Range |
2006 |
| EBITDA margin: |
12-16% |
15.4% |
| EBIT margin: |
8-12% |
12.2% |
| Equity ratio: |
30-40% |
42.8% |
| Dividend payout ratio |
40-50% |
42.6%1) |
| Gearing excl. acquisitions |
30-40% |
42% |
| Gearing incl. acquisitions |
100% |
42% |
| Net working capital as a % of sales: |
38-42% |
41% |
| ROCE after tax |
10-14% |
13.6% |
1) subject to approval by the Annual General Meeting |
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Who is on the management board of BÖHLER-UDDEHOLM AG?
- Claus J. Raidl, Chairman of the Management Board (responsible for Strategy, Communications, Human Resources, Legal and Investments)
- Horst Königslehner, Deputy Chairman of the Management Board
(responsible for Finance, Accounting, Controlling, Treasury, IT)
- Franz Rotter, Member of the Management Board
(responsible for the Precision Strip Division)
- Heimo Stix, Member of the Management Board
(responsible for High Performance Metals Division)
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How do I contact BÖHLER-UDDEHOLM?
To contact BÖHLER-UDDEHOLM AG:
Telephone: (+43 1)798 69 01
Fax: (+43 1) 798 69 01 22713
E-Mail: office@bohler-uddeholm.com
If you have specific questions about production, products or sales and distribution, the "Group Links" button on our home page takes you to the addresses of our production and sales companies.
If you have any difficulty opening or downloading a document from our web site, please send an e-mail to our webmaster  susanne.wenger@bohler-uddeholm.com.
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When was BÖHLER-UDDEHOLM founded?