Press release

Acting in the CEE region, COGNOR will focus on the distribution of finished products such as: long- and flat products, reinforced steel and special qualities. The division will operate in: Austria, Poland, Bosnia and Herzegovina, Croatia, Czech Republic, Hungary, Romania, Slovakia and Slovenia.

The name change is the next, crucial step in the process of creating the distribution division. After the purchase of the majority stake in voestalpine Stahlhandel by Złomrex S.A., the Polish company has placed this stake in the specially founded company - Złomrex Steel Services S.A. - which is currently responsible for forming the new division. All companies from the voestalpine Stahlhandel Group involved in the process are now to submit their applications for changing into COGNOR to the registry courts. The legal procedures are to be finalized by the end of March 2009.

The process in Poland will be initialized by a formal merge between belonging to the Złomrex Group: Złomrex Steel Services S.A. and Centrostal S.A. Then, the Extraordinary Shareholders Meeting of the joined companies will vote a resolution allowing for changing the name to COGNOR. Subsequently, the applications for a similar change in names will be submitted by all other companies from the Centrostal Group. This whole process is scheduled to conclude in Autumn 2009.

 

The new name COGNOR originates from the Latin word “cognosco” and means knowledge, experience and cognition. It expresses the stride for the new quality on the Central European market. Quality represented in all aspects of activities and operations.

 

Alongside the new name, the whole Group will adopt a new motto: Together Reach More. The phrase that on one hand expresses the advantages of operating as a one, consolidated division and on the other shows the new philosophy toward clients. ? COGNOR will not only meet the clients needs, but offer them new interesting and profitable projects. This will not be a simple service only; this is the way to the bilateral gain  ? says Mr. Krzysztof Walarowski, President of the Management Board of Złomrex Steel Services S.A. ? By becoming COGNOR we gain new potential and so we create new possibilities. COGNOR’s scale and synergies within the group make it a future leader not only on one national or two national markets but in the whole Central European region – he adds.

 

COGNOR will enjoy crucial advantages right from the very beginning. The main of them are:

·         relation to two leading groups specializing in metallurgical and steel industries: Złomrex Capital Group in Poland and voestalpine Capital Group in Austria and in Central and Eastern Europe,

·         unique market position due to its presence on numerous markets in the Central and Eastern European region, predicted to grow much faster comparing to the “old” EU countries,

·         experienced management team and well-qualified employees,

·         significant economies of scale gained by the Group, which should translate into a stronger negotiation position on the market, and consequently into better commercial conditions and the possibility to establish more stable margins.

 

 

The Polish market is seen as one of the most perspective for COGNOR. Taking advantages from the higher growth potential and the economy of scale, the division aims to significantly increase its local position. - We are changing for COGNOR to be always ahead of the competitors. We will increase our scale of operations, achieve cost and logistic synergies and strengthen our position on the market, what should result in higher and more stable trade margins .