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voestalpine Takes the Next Step in Its Expansion Strategy in the U.S.
08/23/2012 - In the next several years, voestalpine will be investing more than €100 million in new plants in China, the U.S., South Africa, Romania, and Germany as part of a comprehensive globalization strategy in the automotive sector. Now the first concrete step is being taken overseas. A production facility is being erected in the U.S., with a construction budget of €50 million.
In the next several years, voestalpine will be investing more than €100 million in new plants in China, the U.S., South Africa, Romania, and Germany as part of a comprehensive globalization strategy in the automotive sector. Now the first concrete step is being taken overseas. A production facility is being erected in the U.S., with a construction budget of €50 million. Cartersville, Ga., is about 60 kilometers northwest of Atlanta and is in the center of a cluster of automobile factories. Production is slated to begin by mid-2013. When fully developed, this facility will have created 220 jobs.
voestalpine, a steel processing and technology Group, is continuing to forge ahead with its internationalization plans. Currently, existing voestalpine production sites are being expanded or new plants being erected on four continents. All of these sites are/will be in close proximity to the production facilities of well-known premium manufacturers. The already existing global presence in other business sectors will be expanded to include the automotive sector of the Metal Forming Division.
“We are following the automobile manufacturers, especially the European ones, to the markets of the future and will be expanding our presence there dramatically,” stated CEO Wolfgang Eder.
In the past business year 2011/12, the voestalpine Group generated around 44% of its revenue of €12.1 billion in the mobility sector, with two thirds coming from the automobile industry.
Herbert Eibensteiner, voestalpine Management Board member and head of the Metal Forming Division, confirms the plans for the near future.
“In the next 24 months, we will be launching new automotive activities in China, the USA, and South Africa. We have landed a number of major orders for sophisticated automobile components for leading manufacturers. Business in the high quality segment is continuing at a very high level,” Eibensteiner said.
The first plant to be built overseas will be in the U.S., with a construction budget of €50 million. Production is slated to begin by mid-2013. “Cartersville is centrally located in a southern ‘automotive cluster’ in close proximity to our customers. Once the site has been fully developed, we will have 220 employees,” states Eibensteiner. Cartersville is currently building an industrial park and is anticipating that the voestalpine activities will provide an additional push. Georgia’s governor, Nathan Deal, is pleased about the technology leader from Europe: “We can guarantee voestalpine not only our full support but also outstanding infrastructure and well-trained employees. We are proud of this new partnership.”
The voestalpine Group’s Metal Forming Division, which has a global presence, generated revenue in the amount of €2.5 billion in 2011/12 and EBIT of €185 million. The EBIT margin was at 7.5%. The division has more than 11,000 employees and produces products for all of Europe’s premium automotive manufacturers. The division, with its five business segments, is a leading global supplier of top quality metal processing solutions, particularly, special sections, precision steel strip as well as special components for the automobile industry. Tubes & Sections is a global top manufacturer of innovative, high-quality tubes, sections, and precision steel tube products. Automotive Body Parts directly supplies the automobile industry with innovative, high quality body-in-white components. Cold-rolled stainless steel strips, which have a high degree of dimensional stability and excellent surface qualities, are supplied by the Precision Strip business segment, while the Material Handling segment provides sophisticated product solutions for high bay warehouse systems and storage racks. Flamco produces high-quality components for heating and drinking water installations, focusing on the Benelux markets.
The voestalpine Group is a steel, processing, and technology group that is operating worldwide and manufacturing, processing, and developing high-quality steel products. With its 400 production and sales companies in more than 60 countries on five continents, the Group has been listed on the Vienna Stock Exchange since 1995.
With its top-quality flat steel products, the Group is one of the leading partners of the automobile, white goods, and energy industries in Europe as well as of the oil and gas industries worldwide. Furthermore, the voestalpine Group is a world market leader in turnout technology, tool steel, and special sections.
