Investments
In the first half of the 2026/27 business year, the voestalpine Group made significant progress on key projects. Investment activities in the Steel Division and the Metal Engineering Division during the first half of the 2026/27 business year were primarily driven by the implementation of the first phase of the greentec steel transformation projects in Linz and Donawitz. During the reporting period, the focus was on the assembly of key components for the electric arc furnaces. In the Metal Forming Division, a strategic growth initiative was advanced with the ramp-up of expanded production capacity in the U.S. Investments by the High Performance Metals Division focused on optimizing operational processes and achieving lasting improvements in product quality. In total, the voestalpine Group’s investment volume in the first half of the 2026/27 business year amounted to EUR 530.4 million, representing an increase of 29.5% compared with the same period last year (EUR 409.6 million).
The Steel Division invested a total of EUR 307.8 million in the first half of the 2026/27 business year, representing an increase of 43.0% compared with the prior-year figure of EUR 215.3 million. The largest investment project in the Steel Division involves the implementation of the first phase of the greentec steel transformation project. During the reporting period, the steel construction and facade work for the new electric arc furnace were completed. Assembly of the main unit also progressed according to schedule. The manufacture of key plant components was carried out under close quality and schedule monitoring. The connection to the power grid is scheduled as the next milestone for fall 2026. Despite logistical challenges, the project remains on track, both in terms of schedule and budget. The electric arc furnace in Linz is still scheduled to begin operations in the first half of the calendar year 2027.
In the first half of the 2026/27 business year, construction of the Hy4Smelt demonstration plant1 continued as part of efforts to further develop climate-friendly steel production. The project, carried out in collaboration with Primetals Technologies and Rio Tinto, reached another milestone with the start of assembly of the grinding and drying equipment.
The High Performance Metals Division made investments totaling EUR 28.3 million in the first half of the 2026/27 business year. Compared with the previous year (EUR 27.7 million), this represents an increase of 2.2%. A key project during the reporting period was the expansion of the fully automated high-bay warehouses in Kapfenberg, Austria, as part of the consolidation of European warehouse locations. In addition to the physical expansion, extensive optimization of operational processes is also underway to achieve lasting efficiency gains and strengthen competitiveness.
At the Villares Metals site in Sumaré, Brazil, construction of a new metallurgical plant for the decarburization of stainless steel using argon and oxygen continued to advance. Part of the installation work on the main plant was completed during the reporting period. In addition, the procurement of electrical and automation technology was initiated. The investment aims to improve efficiency and enhance product quality.
The Metal Engineering Division’s investment volume in the first half of the 2026/27 business year totaled EUR 135.9 million, representing an increase of 27.8% compared with the prior-year level of EUR 106.3 million. Progress on the greentec steel transformation program continued as planned in the first half of the 2026/27 business year. Construction of the electric arc furnace at the Donawitz site in Austria remains on schedule and within budget. Significant progress was made on structural steelwork and assembly work during the reporting period. In addition to the well-advanced construction of the furnace and scrap hall, the focus was on the assembly of key components of the electric arc furnace and the implementation of the scrap logistics, dust extraction, and heat recovery systems. These were completed by the end of September 2026. Commissioning of the electric arc furnace is still scheduled for the first half of calendar year 2027.
In the first quarter of the 2026/27 business year, subject to the approval of corresponding funding commitments, the decision was made to proceed with the second expansion phase. This marks a further step in the transformation of steel production. The first expansion phase alone will convert approximately 60% of steel production in Donawitz to greentec steel technology. The second expansion phase lays the groundwork for far-reaching decarbonization of the site by 2030 (a 90% reduction in CO2 emissions compared with the 2019 baseline) and supports the strategic development toward a minimill concept.
As planned, the interim repair of Blast Furnace 1 in Donawitz began in August 2026 and was successfully completed in October 2026. Due to further expansion plans for greentec steel in Donawitz, this blast furnace is expected to be decommissioned from 2030 onward, thereby fully converting the site to electrified steel production.
Investments by the Metal Forming Division totaled EUR 51.0 million in the first half of the 2026/27 business year, representing a decrease of 8.4% compared with the prior-year figure of EUR 55.7 million. Investment activity in the first half of the 2026/27 business year focused on the Tubes & Sections business unit. In Jeffersonville, USA, new equipment was installed and production capacity doubled to 80,000 tons. The facility manufactures truck frames for Class 6, 7, and 8 trucks relating to long-term supply contracts with leading truck manufacturers. At Meincol in Brazil, the replacement of existing longitudinal rolling mills continued. The project is scheduled for completion at the beginning of the 2027/28 business year due to permitting and weather-related delays. At voestalpine Sadef in Belgium, the new coating plant went into operation as scheduled in October 2026. Furthermore, the new customer center is scheduled for completion in the first quarter of the 2027/28 business year. In Mexico, a facility is also being built to manufacture sophisticated precision tube components for safety-critical applications in the automotive industry.
Acquisitions & divestments
In the first half of 2026/27, the voestalpine Group did not make any acquisitions. However, a divestment was completed in the High Performance Metals Division during the current reporting period.
As part of the reorganization of the High Performance Metals Division, the division’s management decided to sell voestalpine BÖHLER Profil for strategic reasons. The contract with the buyer, Kadant Inc., was signed at the end of January 2026. voestalpine BÖHLER Profil, located in Bruckbach, Austria, supplies specialty profiles to various industrial sectors and is also one of the leading producers of profiles for industrial knives. The company, with approximately 150 employees, generated revenue of EUR 48.4 million in the 2025/26 business year. The transaction was successfully completed in the first quarter of the current business year, with the closing taking place at the end of April 2026 following approvals from the relevant authorities.
1 A technical facility on a pilot or industrial scale used to test, evaluate, and demonstrate a new technology under real-world conditions.