The rapid growth of steel production in China presents substantial opportunities for Foseco. In particular, the recent installation of new steel making plants has created a demand for high performance products. In response to this, Foseco has opened a new Deltek manufacturing facility in Tianjin, China. This new investment, coupled with the Deltek plants in the US and Scotland means that Foseco is well positioned to respond to the continuing global development of the market for its Deltek product ranges.

Historically, the former Soviet-Bloc countries, which account for over 10 per cent. of global production, have not been attractive markets for the Group. However, the quality of steel being produced in these countries is improving to meet market requirements and, consequently, there is a growing need for Foseco’s high performance products. The Group intends to target this area, and is planning to build a hot top plant in the Moscow area. In addition to the specific actions taken by the Board to facilitate growth, Foseco is well placed to benefit from the changes that are taking place within the steel industry. In the regions targeted by Foseco, steel production has risen from 900 million tonnes in 2005 to an expected 1.1 billion tonnes in 2008 and is forecast to rise another 100 million by 2010. At the same time, the drive for increased productivity and higher quality steel requires increased use of the high performance consumables in which Foseco specialises and creates an environment in which the Group expects to flourish.