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Management Board of voestalpine AG agrees reserves of EUR 205 million in the rails segment

2012-03-13 | 

Today, Tuesday, the Management Board of voestalpine AG agreed to set aside EUR 205 million in reserves to cover any risks relating to the antitrust proceedings relative to rails deliveries in Germany, as well as the planned closure of TSTG Schienentechnik GmbH & Co KG (“TSTG”), part of the voestalpine Group.

The reserve will be reflected in the annual financial report as of March 31, 2012. From today’s perspective, this reserve will cover all costs related to the closure of rail production in Duisburg, as well as all risks associated with the antitrust proceedings.

TSTG is being closed as a consequence of the site’s lack of economic viability which makes it impossible to sustain competitive production of rails. Closure is subject to the participation and co-determination rights of the employee representatives and will be effected by the end of 2012 at the earliest.

The voestalpine Group

voestalpine is a globally active group with a number of specialized and flexible companies that produce, process and further develop high-quality steel products. The Group is represented by 360 production and sales companies in more than 60 countries. With its highest quality flat steel products, voestalpine is one of Europe's leading partners to the automotive, white goods, and energy industries. Furthermore, voestalpine is the world market leader in turnout technology, tool steel, and special sections, as well as number one in Europe in the production of rails. In the business year 2010/11, the voestalpine Group generated revenues of around EUR 11 billion, and achieved an operating result (EBIT) of almost EUR 1 billion; the Group has around 47,000 employees worldwide.