Investments
As in previous years, one focus of the voestalpine Group’s investments in the first half of 2025/26 was on implementing the first stage of the greentec steel transformation project. The measures at the two steel sites in Linz and Donawitz, Austria, continued to proceed according to plan – on schedule and within budget. In addition, growth concepts were successfully implemented, programs to consolidate the Group’s technological leadership were advanced, and necessary replacement investments were made. Overall, the voestalpine Group’s investment volume in the current reporting period amounted to EUR 409.6 million, representing a decrease of 18.2 % compared to the previous year’s figure of EUR 500.7 million.
The Steel Division made investments of EUR 215.3 million in the first half of 2025/26. Compared to the previous year (EUR 229.0 million), this represents a decrease of 6.0 %. The division achieved further important milestones in the first phase of the greentec steel transformation project. At the beginning of the business year, work began on expanding the scrap storage area. The solid construction and steel construction work for the hall that will house the new electric steel plant in the future proceeded as planned. In addition, the award process for key components of the new secondary metallurgy plant was completed during the current reporting period. This plant will be used for the post-treatment of high-quality steel grades. Construction of the Hy4Smelt plant began at the end of September 2025. This is the world's first industrial demonstration plant to combine two innovative processes: hydrogen-based direct reduction for ultra-fine iron ores and electric melting. In addition to voestalpine, the international plant manufacturer Primetals Technologies and Rio Tinto, one of the world's largest mining companies, are also involved in the project. Commissioning of the plant, with an estimated total cost of around EUR 170 million, is planned for the end of the 2027 calendar year. The general overhaul of hot-dip galvanizing line 4 was successfully completed in the first half of 2025/26. Construction of Block 8 of the company's own power plant also proceeded according to plan.
The High Performance Metals Division's investment activity in the first half of 2025/26 was characterized by comprehensive cost-cutting measures. Against this backdrop, only essential maintenance work and selective quality-improvement projects were carried out. Overall, the division invested EUR 27.7 million, representing a –51.3 % decrease compared with the previous year’s figure of EUR 56.9 million. As part of the consolidation of its distribution warehouses in Europe, the High Performance Metals Division is currently focusing on expanding two fully automated high-bay warehouse systems at its Kapfenberg site in Austria. The first half of 2025/26 was largely devoted to detailed planning for the hall expansion. At the Villares production site in Sumaré, preparatory measures were also carried out for the planned investment in a decarburization plant for special steel using argon and oxygen.
The Metal Engineering Division's investment volume amounted to EUR 106.3 million in the first half of 2025/26, 30.5 % lower than the previous year's level of EUR 153.0 million. Project progress on the conversion of steel production from blast furnace technology to electric furnace technology continued as planned during the reporting period remaining on schedule and within budget. The ongoing construction and steelwork has laid the foundation for the assembly of the first core components of the electric arc furnace to begin later in the 2025/26 business year. This will be followed by piping installation and electrical cabling. With respect to the “substation east” investment project, which will replace “substation south”, construction of the building is already well advanced. The next steps include installing electrical equipment and relocating cables. In the first half of the 2025/26 business year, the Railway Systems business unit invested in expanding the Knoxville, Tennessee, turnout plant, which was acquired in the previous year as part of an asset deal. In the Industrial Systems business unit, investments focused primarily on expanding production capacity at Itafil, the division’s Italian premium welding wire manufacturer.
Investments by the Metal Forming Division amounted to EUR 55.7 million in the first half of 2025/26, 13.6 % lower than the previous year's figure of EUR 64.5 million. The Automotive Components business unit focused primarily on reorganization measures, resulting in moderate investment activity in this area. In contrast, the Tubes & Sections business unit implemented targeted growth projects. The Meincol company in Caxias do Sul, Brazil, expanded its capacity by constructing an additional production hall and installing a new slitting line. voestalpine Sadef enhanced its production capabilities in France with the purchase of a new coating line. The most significant project involves the expansion of Rollforming Corporation in Jeffersonville, Indiana, USA. Based on long-term contracts with major global truck manufacturers, the site is currently expanding its production to include longitudinal beams.