Voestalpine to Announce Decision on Expansion Into North America (US)

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Voestalpine

Voestalpine Headquarter (Credit Photo @ VoestAlpine)

The Austrian steel group plans a major investment in North America. According to voestalpine´s CEO Wolfgang Eder, the decision will be announced in February.

In the next years, voestalpine builds a new steelworks in the U.S or in Canada. The new mill will enable voestalpine to produce high quality iron concentrate at lower costs. The concentrate will be shipped to the Austrian steel processing plants. In the first expansion stage, the investment is expected to have a size € 550m. In the last months, voestalpine´s CEO Wolfgang Eder explained that the U.S. is among voestalpine´s most important growth markets. Above all, the biggest locational advantages are the lower energy costs and the modern infrastructure. At the moment, about 60% of voestalpine´s costs are raw materials. As a result, voestalpine must retain its competitiveness, CEO Eder explained. With the new plant, the consumption of steel would reduce by up to 15%. The final decision will be announced in February, Eder says. However, voestalpine´s considerations have not changed in the last months, Eder explains. The production should be started in 2016. According to rumors, voestalpine´s preferred production location is a southern state with a high-capacity sea-port. Initially, voestalpine considered to build a major steelworks in Romania. Due to the financial crisis in 2008/09, the project was postponed. Now, the U.S. project will replace the initial one.

Source : FriedlNews

 

 

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