The repair and quick geometrical changes of components and tools are currently the most important applications of laser build-up welding. Advanced laser technology permits the integration of the main process steps into one machining center for a very efficient and flexible manufacturing process. The solution presented in this paper consists of a 3axes CNC milling machine, in which a 3 kW Nd: YAG laser, a coaxial powder nozzle, and a digitizing system are integrated. All functions (data processing, laser process, powder feeding, and milling) are controlled by one CNC controller using specially developed software. In the first step the workpiece needs to be adjusted to the machine table. Then the contour of the damaged surface is determined by either an optical or mechanical digitizing system. Using the resulting data, a software system generates automatically the laser build-up strategy and the CNC programs for the laser and the milling processes. After laser free-forming, a raw piece with an oversize of 0.3 to 0.6 mm is made. From this geometry the end contour is milled with an accuracy of some 10 microns. This way the machine produces a completely finished tool.