voestalpine worldwide 3 minutes spent reading
Innovation

voestalpine worldwide

Viktoria Steininger
Redaktionell verantwortlich für die Themen am Blog, recherchiert und schreibt Viktoria Steininger auch selbst und gibt mit Geschichten Einblicke in den voestalpine-Konzern.

As a global leading technology and capital goods group, voestalpine is consistently following its internationalization strategy. The focus lies in expansion in markets outside Europe, particularly in the NAFTA region and China.

voestalpine has around 500 Group companies and locations in more than 50 countries on all five continents, and in the business year 2015/16 had a workforce of around 48,500 employees worldwide, with 52% outside Austria. In the business year 2015/16 the Group generated revenue of EUR 11.1 billion and an operating result (EBITDA) of EUR 1.6 billion. According to current plans, revenue should increase to EUR 15 billion by 2020. The strategy is being realized in part by driving expansion in global growth markets. In the previous business year (2015/16) the revenue generated by region was as follows:

  • 70% European Union (of which Austria: 8%)
  • 11% NAFTA
  • 8% Asia
  • 8% Rest of world
  • 3% South America

At regional level, voestalpine is continuing its internationalization strategy with a focus on the NAFTA region (Canada, the USA, and Mexico) and Asia, with the aim of increasing the share of revenue generated outside the EU to 40%.

voestalpine wordwide

 voestalpine is a global leader

The voestalpine Group is intensifying its activities particularly in segments with the most demanding technological and quality requirements. The top industries by revenue in the business year 2015/16 were:

  • 32% Automotive
  • 16% Energy
  • 13% Other
  • 13% Railway Systems
  • 9% Building/Construction
  • 9% Mechanical Engineering & Steel Construction
  • 5% White Goods/Consumer Goods and
  • 3% Aerospace

 

voestalpine is the global market leader or a leading supplier in all four divisions:

  • Steel Division: 33% of Group revenue
    The Steel Division is a global quality leader for highest-quality steel strip and a leading supplier of heavy plate for highly sophisticated applications, and casings for large turbines.
  • Special Steel Division: 23% of Group revenue
    The Special Steel Division is the global leader in the tool steel segment and a leading supplier of high-speed steel and special forgings.
  • Metal Engineering Division: 25% of Group revenue
    Companies around the world in the Metal Engineering Division are global market leaders in turnout technology, and European market leaders in rails and specially treated wire. They are also leading suppliers of seamless tubes for special applications, and high-quality welding consumables.
  • Metal Forming Division: 19% of Group revenue
    Companies in the Metal Forming Division are leading global providers of high-quality metal processing solutions in the segments of customized and special sections, precision steel strip, and special components for the automotive engineering and aviation industries.

Global investments and orders

In line with its strategy of expansion, the Group has succeeded in securing numerous major international orders over the past years. The Steel Division, for example, is supplying heavy plate for the Nord Stream 2 pipeline project. In the railway infrastructure sector there are numerous orders for the Metal Engineering Division in the suburban transport segment, for major cities including New York, Los Angeles, San Jose, Seattle, Baltimore, Toronto, and San Francisco. An automotive order worth almost USD 600 million has just been secured by the Metal Forming Division, with investment now going into the construction and expansion of sites in Mexico, Germany, Romania, and China needed to fulfil this order.

The growth strategy is also being driven by additional investments. One highlight is the new direct reduction plant in Corpus Christi, Texas. At over EUR 550 million, the plant represents the largest foreign investment made by voestalpine or any Austrian company in the USA to date. There is also strong investment in the automotive sector, with the automotive components plant in Cartersville, Georgia, entering its third phase of expansion, and a new automotive site being established in Birmingham, Alabama.

Numerous new sites have also been opened in Asia, including CNTT Chinese New Turnout Technologies Co., Ltd. in Qinhuangdao (fully-consolidated since BY 2015/16), voestalpine Wire (Suzhou) Co., Ltd., various acquisitions in Shanghai (Bohler Special Steels (Shanghai) Co., Ltd. and Advanced Tooling Tek, ATT), as well as a new automotive components plant in Shenyang.

voestalpine global investments

 

Viktoria Steininger