Investments
In the 2024/25 financial year, investment activities focused both on the project transformation of steel production “greentec steel” and on the implementation of the international growth strategy in processing operations, particularly in North and South America and Asia. In addition, key investments were made to further enhance technical differentiation in product quality and to replace aging equipment.
In total, the voestalpine Group invested EUR 1,243.1 million in the 2024/25 business year, which is approximately the same amount as in the previous year (EUR 1,233.0 million). By the end of March 2025, around one third of the total EUR 1.5 billion budget for phase 1 of the greentec steel transformation project had already been invested.
The Steel Division accounted for EUR 535.0 million of total investment in the 2024/25 financial year, which is 2.1% below the previous year’s figure of EUR 546.4 million. In summer 2024, the site clearance for greentec steel was completed with the relocation of the pig iron solidification plant and the ladle tilting stand. In October 2024, a contract was awarded for the construction of steelwork halls for the new electric steel plant, including the hall for Secondary Metallurgy 5. Initial work began in the fourth quarter of 2024/25 with the installation of the hall support foundations.
During the current reporting period, the basis for the future power supply of the electric arc furnace was established. In June 2024, following the Federal Administrative Court’s approval of the environmental impact assessment (EIA), Austrian Power Grid (APG) began implementing the 220 kV power line project. As part of this effort, drilling commenced on a 1,700-meter-long microtunnel at the voestalpine site to connect the power line to the South substation. Investments are being made in a new secondary metallurgy facility with ladle furnace and vacuum treatment to cover the anticipated increase in capacity requirements for the post-treatment of high-quality steel grades via the new electric arc furnace route.
In August 2024, the relining of Blast Furnace 6 (8-meter furnace) began on schedule. After a repair period of less than three months, operations resumed at the end of October 2024. The second 8-meter blast furnace at the Linz site, Blast Furnace 5, had already undergone a scheduled refractory relining the previous year. This unit will be replaced by an electric arc furnace in 2027.
In January 2025, the first melt took place at Secondary Metallurgy 1, following the commissioning of Vacuum Treatment Plant 1. This unit had been completely overhauled and updated to the latest state-of-the-art standards over a period of around five months. As part of the secondary metallurgical treatment, unwanted elements such as sulfur, nitrogen or carbon are removed, which prevents the formation of bubbles and inclusions in the steel.
The High Performance Metals Division invested EUR 126.1 million in the 2024/25 financial year. Compared to the previous year (EUR 189.9 million), this represents a decrease of 33.6%. At the new special steel plant in Kapfenberg, Austria, the focus during the financial year was on implementing and optimizing the certification process.
Strategic site investments were also made in new vacuum arc furnaces at both Kapfenberg and Villares Metals in Sumaré, Brazil. These investments expanded the division’s remelting capacity, supporting its continued global leadership as a supplier to the aerospace industry.
In Shanghai, China, ASSAB Tooling Technology set new standards in the heat treatment of tool steel. The Value Added Services business segment invested in the world’s largest vacuum furnace at this site, enhancing the integrated value chain and offering a new level of quality and capability in heat treatment. This development further strengthens voestalpine’s market position in machining, heat treatment and coating technologies.
The Metal Engineering Division invested EUR 381.9 million in the 2024/25 financial year, which represents an increase of 31.2% compared to the previous year’s figure of EUR 291.1 million. As part of the technology transition from coal-based to electric steel production, preparatory work for connecting the power supply to the new substation was completed in summer 2024, and the construction site was handed over to Austrian Power Grid (APG). Civil engineering work on the construction site for the electric arc furnace (EAF) in Donawitz, Austria, was completed and steel construction for the hall began at the end of the 2024 calendar year. Assembly of the EAF plant and associated ancillary facilities is scheduled to begin in the 2025/26 financial year. During the current reporting period, the contract for constructing the steel structure for the alloy and scrap hall was also awarded.
In Donawitz, the interim repair of Blast Furnace 4 was successfully completed in less than three months and concluded in November 2024. This blast furnace will be replaced by an electric arc furnace in 2027.
The flood retention basin, built to protect the high-tech wire rod mill in Donawitz from flooding, was also completed by the end of the first half of 2024/25.
The Metal Forming Division recorded investments of EUR 174.9 million in the 2024/25 financial year (previous year: EUR 188.2 million). The Tubes & Sections business segment, a strategic growth market for the division, remained a focus of investment in the past reporting period. At the Vyskow site in the Czech Republic, production capacity was expanded by extending the production hall and installing a new roll forming line. At the Brazilian facility in Caxias do Sul, Meincol invested in the construction of an additional production hall and the acquisition of a new slitting line. voestalpine Sadef also enhanced its expertise by installing a new coating plant. The division’s most extensive project in terms of volume is the expansion of Rollforming Corporation in Jeffersonville, Indiana, USA. Here, the production potential for side members is being expanded on the basis of long-term customer contracts with renowned global truck manufacturers. Production is scheduled to start in spring 2026, with full capacity of 40,000 tons per year targeted for the following year. The investment in the new roll forming and processing facilities amounts to around EUR 70 million.
As in the previous year, the Automotive Components business segment focused on restructuring in response to changes in the German automotive industry. As a result, only a limited number of replacement investments were made during the reporting period.