How much does a blast furnace cost
The Steel Division of the voestalpine Group produces high-quality steel products in Linz for all premium automobile manufacturers and their suppliers, for the European household appliance and mechanical engineering and energy industries. With the restart of the small blast furnace, steel production at the site - together with the two other blast furnaces - will almost return to normal after the capacity reduction caused by Covid-19.
The economic development and the extent of the recovery vary within the voestalpine Group according to regions and market segments. The technology areas of rail infrastructure and high-bay warehouses are also developing very solidly, but the aviation and oil and gas industries are particularly hard hit by the effects of the pandemic. The company voestalpine Tubulars, which specializes in the production of seamless tubes for the oil and gas industry, has been confronted with additional competitive disadvantages in its most important market, the USA, due to protective tariffs on steel products (Section 232) since 2018.
Steel production at the voestalpine locations in Linz and Donawitz
Voestalpine produces its high quality steel products at two locations. The Steel Division of voestalpine operates one large and two small blast furnaces at the Linz location, which together have an annual pig iron capacity of around five million tons. At the headquarters of the Metal Engineering Division in Donawitz there are two further blast furnaces that produce a total of around 1.5 million tons of pig iron per year. One of the two blast furnaces in Styria will undergo intermediate repairs from June to October and will only be restarted when there is a corresponding customer demand.
The voestalpine group
Voestalpine is one of the world's leading steel and technology groups in its business areas, with combined material and processing expertise. The globally active group of companies has around 500 group companies and locations in more than 50 countries on all five continents. It has been listed on the Vienna Stock Exchange since 1995. With its high-quality product and system solutions, it is one of the leading partners in the automotive and household appliance industries as well as the aviation and oil & gas industries and is also the world market leader in rail infrastructure systems, tool steel and special profiles. Voestalpine is committed to global climate goals and is working intensively on technologies for decarbonisation and long-term reduction of their CO2Emissions. In the 2019/20 financial year, the group achieved sales of EUR 12.7 billion, an operating profit (EBITDA) of EUR 1.2 billion and employed around 49,000 people worldwide.
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