02.11.2005 – 10:47

Schoeller-Bleckmann Oilfield Equipment AG

euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG
other / Schoeller-Bleckmann Oilfield Equipment: Massive Expansion of Capacity in Ternitz - Largest investment program in the history of the companyy - 20 additional jobs

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02.11.2005

Schoeller-Bleckmann Oilfield Equipment AG (SBO) has initiated an
expansion drive designed to achieve a massive increase in production
capacity. The 15 million Euro investment program will begin this year
and is expected to be completed at the beginning of 2007.The core of
the planned expansion of production capacity is a new long-product
and forging plant, which will double the company’s forging
capabilities. Within the framework of this investment program, the
downstream machinery will also be respectively upgraded. The
large-scale investments at Schoeller-Bleckmann Oilfield Equipment’s
headquarters and manufacturing facility in Ternitz will create 20 new
jobs for the region.

This capacity expansion effort represents the largest single
investment in the history of  Schoeller-Bleckmann Oilfield Equipment
in Ternitz. It is a key part of SBO’s comprehensive,  100 million
Euro strategic investment program, which will be implemented over the
next two years.

"With this investment in Ternitz, we will be able to optimally take
advantage of the increased demand for high-precision components for
the oilfield service industry," says Gerald Grohmann, Chairman of the
Executive Board of Schoeller-Bleckmann Oilfield Equipment in
justifying the expansion of production capacity. The forging plant in
Ternitz is a key industrial aggregate for the entire Group. The
investments represent a long-term measure designed to safeguard the
important role Ternitz plays as a manufacturing location within the
SBO Group. "By means of a special processing step implemented here,
the particularly highly-resistant features of steel are manufactured,
which are absolutely essential for our high-tech drillstring
components", Mr. Grohmann adds.

The new long-product and forging facility will also incorporate a new
kind of forging technology to be applied in the production process in
Ternitz. The replacement of the forging plant currently in use by a
long-product forging facility not only provides SBO with more
capacity, but also gives the company sufficient flexibility to
exploit capacities in line with the prevailing market environment.
"And the neigbours will be happy that, in comparison to the
technology being used at present, the new long-product and forging
installation will result in a much lower level of acoustic
emissions", Mr. Grohmann concludes in emphasizing an additional
advantage of the project.

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader
in high-precision components for the oilfield service industry. The
business focus is on non-magnetic drillstring components for
high-performance direction drilling. SBO employs a work force of 848
people worldwide. 221 people are employed at company headquarters in
Ternitz, Lower Austria, and 450 in North America (including Mexico).

end of announcement                               euro adhoc 02.11.2005 10:11:40

Further inquiry note:

Gerald Grohmann, Chairman of the Executive Board
Schoeller-Bleckmann Oilfield Equipment AG
Hauptstraße 2
A-2630 Ternitz, Austria
Tel: +43 2630/315 DW 110, Fax: DW 101
E-Mail: sboe@sbo.co.at

Mick Stempel, Hochegger|Financials
Tel: +43 1/504 69 87 DW 85
E-Mail: m.stempel@hochegger.com

Branche: Oil & Gas - Upstream activities
ISIN: AT0000946652
WKN: 94665
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official dealing

Original content of: Schoeller-Bleckmann Oilfield Equipment AG, transmitted by news aktuell