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EUR 350 million order for voestalpine in the automotive safety sector

2015-08-31 | 

voestalpine currently generates around a third of the Group’s EUR 11.2 billion in revenue in the automotive sector. Its key customers in this sector are premium brand automobile manufacturers and suppliers, and now on the global scale. Safety is the overriding concern in automotive manufacturing, and the Metal Forming Division plays an important role by producing automotive safety components. The voestalpine Rotec Group, a subsidiary in this division, has now secured a framework agreement with a global automotive supplier for a total order value of EUR 350 million. The agreement guarantees capacity utilization in this sector through to mid-2022.

In fulfilling this framework agreement the voestalpine Rotec Group, based in Krieglach, Styria, will supply up to 350 million seat belt tensioner components and around 120 million airbag components to be built into cars around the globe, starting from summer 2015 through the first half of 2022.

Dr. Peter Schwab, responsible Member of the Management Board of voestalpine AG and Head of the Metal Forming Division

Safety is a key concern in the automotive industry, and one which we have focused on intensively for years. By driving forward research and development the voestalpine Group has achieved an international, pioneering role in the production of highest-quality and visionary product solutions for automotive safety systems.

Dr. Peter Schwab, responsible Member of the Management Board of voestalpine AG and Head of the Metal Forming Division

Full capacity utilization and additional production capacity

With a staff of around 900 employees, the voestalpine Rotec Group produces high-quality precision steel tubes and tube components for the automotive and mechanical engineering industries at seven production locations on three continents. The company is the global market leader in the automotive safety components sector for seat belt tensioner components, and the third largest supplier of airbag components. Its customers include the world’s largest automotive manufacturers who rely on these parts for seat belt systems, front, side, and knee airbags, seating systems and integrated child seats. “Working closely with its customers, the voestalpine Metal Forming Division is constantly setting new standards in advanced automotive components. Our internationalization strategy, paired with highly innovative solutions, has resulted in this major EUR 350 million order. This long-term contract not only means that existing plants in Austria, Germany, the USA, and China will be operating at full capacity, but also involves expanding production capacities,” says Peter Schwab.

Simultaneously, other customers are also demanding additional production capacities at the worldwide unique plants being built by voestalpine Rotec’s own development and tool construction departments. As a result, in future the production location in Styria will focus more strongly on the production of seat belt tensioner components.

Metal Forming Division

The Metal Forming Division of the voestalpine Group achieved a total sales volume during 2014/15 of 2.3 billion and an operating result (EBITDA) of around 331 million euros. The division employs roughly 10,500 staff members and does business with almost all European car manufacturers. Within the Group, it constitutes the center of competence for highly refined sections, tubes and precision steel strip products and ready-to-install components made of pressed, stamped, and roll-formed parts. Its combination of material expertise and processing competence is unparalleled throughout the industry, and its global presence makes the division the preferred partner to customers who are looking for innovativeness and quality.

The voestalpine Group

The voestalpine Group is a steel-based technology and capital goods group that operates worldwide. With around 500 Group companies and locations in more than 50 countries and on all five continents, the Group has been listed on the Vienna Stock Exchange since 1995. With its top-quality products, the Group is one of the leading partners to the automotive and consumer goods industries in Europe and to the oil and gas industries worldwide. The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections. In the business year 2014/15, the voestalpine Group reported revenue of EUR 11.2 billion and an operating result (EBITDA) of EUR 1.5 billion; it had around 47,500 employees worldwide.