The steel plant project on the Black Sea with the code name “Edelweiss” was discontinued due to the economic downtrend and the dramatically deteriorating economic expectations in the Black Sea region.
During the economic boom, in 2007, voestalpine contemplated the construction of an integrated metallurgical facility on the Black Sea. The “Edelweiss” project was supposed to help cover the Group’s long-term steel needs and help it attain leadership in the Eastern European steel market, which was seen as a future steel market.
Taking advantage of economic boom times
“Edelweiss” was supposed help meet booming demand and almost double the Group’s steel production by 2013. The choice of site was a particular challenge for the planning team with not only the logistics but also the tricky question of political stability needing to be taken into consideration. In order to optimize costs, the Management Board wanted to take advantage of a foreseeable economic turnaround. Production was scheduled to start in 2012/13, timed to coincide with a hoped-for economic recovery.
With the economic crisis expanding to fully unexpected dimensions in 2008, the estimated EUR 7 billion project was stopped. The ATX mirrored the continuing economic situation: by falling. Too many of the framework conditions had significantly shifted, leaving CEO Eder with the only option of announcing the cancelation of the “Edelweiss” project. Instead, just a few years later, a steel mill in Corpus Christi, Texas (USA), would take its place.
Two decades ago voestalpine AG started out on its path to becoming a privatized and exchange-listed company. The ‘IPO 1995—20 years on the stock exchange’ series describes key events on the path to becoming an internationally successful steel-based technology and capital goods group.
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