voestalpine began thoroughly exploring the potential consequences of such measures on its business in the USA and its relationships with the USA some time ago. Over a year ago, the Group established a “Taskforce USA” currently consisting of eleven employees from the USA and Austria to monitor developments in the United States.
voestalpine activities at a total of 49 locations in the USA contribute significantly to value creation in their respective regions. The Group has specifically invested USD 1.4 billion in the production of high-tech products in the country in recent years, creating around 3,000 highly skilled local jobs which make a sustained and positive impact. As a result, the company generates around two thirds of its US revenue of around EUR 1.2 billion (2017) as a local manufacturer in the USA, and therefore these operations will not be directly affected by the planned measures. The extent to which the remaining revenue will be impacted by the import restrictions has been undergoing detailed examination for some time, while at the same time alternative options are also being considered.
In addition, over the past months voestalpine companies which will be directly impacted by the tariffs have already submitted extensive applications for exemptions from the punitive tariffs on their products. As far as we know, to date the US administration has not processed any of these applications, either from voestalpine, our partners, or customers.