On the innovation front, we hold the world record for the Thin Slab Caster following its start-up a few months ago at POSCO, Korea; at Tokyo Steel, Japan, we are assembling the world's largest EAF. We roll straight bars at 180 km/h and wire rod coils at 430 km/h. To be more competitive in turnkey plants and to better limit costs and development time, Danieli Construction International (DCI) has successfully expanded into building the civil works portion of plants.
In search of greater competitiveness for our products as far as quality is concerned, we are proud to say that the productivity of the DFE plant in Thailand and especially the quality of the machines produced are practically the same as those attained at our Buttrio (Italy) locations, which are recognized as among the world front runners in manufacturing. These results allow us to better honor our motto -"We do not shop around for noble equipment"- while still raising competitiveness.
As for steelmaking, the business has suffered from the decline of the European market, with demand down by 40-50%. We do not expect 2010 to be a good year either for steelmakers in the U.S. and Europe, unlike what will happen in the BRIC countries, where business is already looking up.
Under these circumstances, plant making should also see a drop in revenue and orders for the next years, in part because in the most important growth market, China, 95 to 98% of plants are built locally. So the situation will be of partial benefit only to Danieli's factories in China.
We will be as committed as ever to improve innovation and customer service to face this market change and we feel comfortable to succeed because Danieli is a unique expression of the best international cultures and skills in the steel industry, having on board Wean United (USA), Davy Distington (UK), Morgårdshammar and Sund Birsta (Sweden), Rotelec (France), Fröhling and W+K IndustrieTechnik (Germany), and Hoogovens Technical Services -now Corus (The Netherland).
The Board of Directors thanks the Danieli Team for its dedication, pride, and determination and for the enthusiasm it continued to show this year. This helps the Board reinvest 88% of profits in the company, interpreting the will of the majority of the shareholders, who consider this a good investment, of course, but also a way to take an active role in the challenge of being a front runner and “the reliable and innovative partner in the steel industry, backing the customers’ competitiveness”.

Gianpietro Benedetti
Chairman and CEO