The 3 percent of Group revenue potentially impacted by the punitive tariff of 25% is primarily high-tech steel which is largely, or completely, unavailable in the USA and used to produce sophisticated semi-finished and finished products. This includes high-quality steel strip imported from Austria which is processed into ultra-high-strength lightweight body parts and automotive components in the USA. With its phs technology, the Group company responsible, voestalpine Automotive Components in Cartersville, Georgia, is one of the leading manufacturers of ultra-high-strength lightweight components in the NAFTA region, supplying renowned automotive manufacturers in the region, particularly those from Europe. The pre-material for these highly specialized products is otherwise not available in the USA in this quality.
Advanced seamless tubes, especially for oil & gas exploration, are also semi-finished in Austria (Kindberg) according to the same organizational system, and processed into special products in the USA. Production involves both joint venture partners as well as customers in the USA. Other materials and special parts for the oil & gas industry, as well as ultra-high-strength aircraft components produced in the High Performance Metals division, also have their origin in voestalpine’s European and Brazilian plants. Moreover, as the global market leader for tool steel, the division is an important partner to the US tool industry, making it a key factor in the industry’s competitiveness.