ANNUAL REPORT 2007

On the contrary, an improvement is expected as regards investments in public works, a market in which the division has invested and in which it has successfully penetrated with its own product in particular as regards the segment relating to anti-noise barriers in concrete cement thereby confìrming its national leadership in the fìeld of the manufacture of railway sleepers. Moreover, testing of a new railway strengthening system has been concluded, to be used for the construction of railways and subways as well as in the new railway tunnels. This system is part of the policy of expansion of the division in the field of the infrastructural sector.
The restructuring works relating to the Lucignano (AR) and Ponte Taro (PR) plants are continuing and will be completed during current year as regards Lucignano and in the middle of 2009 as regards Ponte Taro, As regards the Ponte Taro plant, some of the renewed departments are already working and these will bring about the first increases in production during 2008. As far as the new structural products in the prefabrication sector are concerned, in July 2008 Lucignano will commence the production of a new type of flooring irom which the division is expecting an important contribution in terms of increase in production, in particular in the field of buildings destined to large scale distribution.
The S. Nicola di Melfi (PT) plant is managed and controller by Traversud; the recently founded company ìs sustaining significant investments for the purpose of achieving the strategie objective relating to the creation of a technologically advanced manufacturing plant able to satisfy the demand for products relating to railway infrastructures for the Southern Italy market.
The significant reduction in investments by RFI, connected to its lack of liquid fiinds, have delayed the expected times necessary for achieving the break-even; as mentioned above, the expectations are for an increase in investments relating to maintenance and new buildings by RFI already during 2008; thanks to the technological and commercial positioning achieved, Traversud will benefit from this investment. * In the meantime we would point out that Traversud has registered into the RFI qualification system for an amount that is greater than the one held previously, thereby reaching the category up to 8 millions of Euro.