MAN Ferrostaal not quitting steel business

MAN Ferrostaal not quitting steel business

In a statement by the Board of MAN Ferrostaal AG, released on December 21, 2005, the change of business procedures in the Ferrostaal division of German engineering group MAN has been clarified in details. The company reported that their statement was misunderstood and the division was not leaving the steel industry. Accordingly, the company is actually going through a re-structuring which will just affect the balance sheet. With the restructuring, Ferrostaal will be acting more like a broker rather than a trader. The company will neither record the steel purchases for the customers as an expense, nor the sales as an income. Now, the company will only book the commission fees obtained from the deals into the balance sheet. In fact MAN Ferrostaal AG will strengthen its position in steel business and is reviewing further acquisition of hard assets in order to provide additional value added services to producers and consumers of steel products.