voestalpine opens 22nd production site in China

Linz, Austria, 16-5-2014 — /EuropaWire/ — The voestalpine Group’s 22nd production site in China will be officially opened today. voestalpine Profilform (China), a subsidiary of the Metal Forming Division, produces and processes high-quality steel pipes and sections for agricultural and construction machinery manufacturers and for international automobile manufacturers and automotive suppliers. The plant, which will create 50 new jobs, represents an investment of EUR 20 million. The voestalpine Group already has 2,200 employees in China and generates revenue of EUR 220 million.

voestalpine, the steel-based technology and capital goods Group, is continuing to consistently implement its internationalization strategy. With the opening of the new site, the Metal Forming Division is again going where its international customers are, in order to be able to supply them locally with the quality products they are accustomed to.

“We follow our customers who operate globally into growth markets and, jointly with them, we consistently expand our presence. Using new, innovative materials and forming concepts, we have been able to manufacture components, which have absolutely unique selling points on the global market.”

Wolfgang Eder, CEO and Chairman of the Management Board of voestalpine AG

By 2020, around 15 new plants will be built In China

In the business year 2012/13, the voestalpine Group already generated EUR 710 million (6 percent of the Group’s revenue) in Asia. The Group anticipates that by the end of 2020, this figure will triple to around EUR 2 billion. The planned investment volume is between EUR 400 and 500 million. The main customer sectors are mobility (railway infrastructure/turnout technology, automobile components) and energy (turbines, power plant components). voestalpine is already a market leader in the high-tech segments of these sectors.

In addition to supplying international premium customers with plants in China, the local market is becoming increasingly significant. Negotiations with the largest Chinese manufacturer of excavators and with major bus manufacturers have almost been concluded.

“Our Asian customers also value our expertise in materials and processing that is unique worldwide.”

Herbert Eibensteiner, member of the Management Board and head of the Metal Forming Division

Three crucial core processes can be carried out at the new plant: roll forming, bending, and 3-D laser cutting. Additionally, precision tube components for passive safety elements in passenger cars will be manufactured here. The location was primarily chosen because of its proximity to customers and the already existing plant of the voestalpine Böhler Welding Group.

Metal Forming Division

The Metal Forming Division of the voestalpine Group generated revenue of EUR 2.3 billion and an operating result (EBITDA) of EUR 257.6 million in 2012/13. The division has around 11,000 employees and produces components for almost all European automobile manufacturers. It constitutes the competence center of the voestalpine Group for highly refined sections, tubes, and precision strip steel products as well as 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 make the division the preferred partner to customers who are looking for innovativeness and quality. The Metal Forming Division is comprised of the following Business Units: “Tubes & Sections,” a global manufacturer of customer-tailored special tubes and sections, “Automotive Body Parts,” a direct supplier of innovative automotive body parts for future-oriented lightweight solutions, “Precision Strip,” which offers industry-leading expertise in precision strip steel for demanding applications, “Warehouse & Rack Solutions,” which provides intelligent rack system solutions for complex logistics challenges, and “Heating & Installation Components,” which produces state-of-the-art components heating and installation purposes.

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 2012/13, the voestalpine Group reported revenue of EUR 11.5 billion and an operating result (EBITDA) of EUR 1.45 billion; it had around 46,400 employees worldwide.

Peter Felsbach

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