The ongoing economic crisis is also becoming increasingly noticeable in the Voestalpine factories in Upper Styria. Personnel packages are being put together for Böhler Bleche in Mürzzuschlag and Böhler Edelstahl in Kapfenberg and a reduction in permanent staff cannot be ruled out.
Just a year ago, the opening of the new stainless steel factory in Kapfenberg was celebrated, an “investment of the century” for the city. Production (up to 205,000 tons of stainless steel per year) will be fully underway by the end of the year. Measures are now needed at the location, Voestalpine spokesperson Peter Felsbach explains in an interview with ‘Krone’.
Discussions with the works council have started. Just as at Böhler Aerospace in Kapfenberg (where the strike at Boeing is causing concern), it is mainly about reducing overtime and holidays, but also about temporary staff. There are currently no plans to reduce the permanent workforce, but such a move cannot be ruled out.
A little further on you are at Böhler Bleche in Mürzzuschlag. This is a negotiated package that mainly includes a reduction in overtime and the introduction of part-time models. A single-digit number of permanent employees have already had to leave the company. A second package will probably follow.
The difficult economic climate in Europe, but especially in Germany, is also felt by Austria’s largest industrial company. Speaker Felsbach specifically mentions three issues that are problematic in Europe and that a new federal government must address: strong regulations, high labor costs (the recent KV increase alone cost the group 100 million euros) and high energy costs. Both natural gas and electricity prices are many times higher than US rates, and the gap is currently widening again.
The factory of German car suppliers is closing
The European car industry in particular is under pressure, now that the VW crisis is making headlines. Voestalpine responds by closing the car suppliers’ factory in Birkenfeld. The subsidiary Buderus Edelstahl in Germany is also sold to an investment company. The tool steel activities have now largely been taken over by Asian suppliers. In any case, Kapfenberg will specialize even further in the high-quality segment.
Construction of a replacement blast furnace has started
Business is currently going well at other Voestalpine locations in Styria, such as Donawitz (steel), Zeltweg (railway components) and Kindberg (high-tech pipes). The construction of the first electric arc furnace in the Leoben-Donawitz steel factory is on schedule. The intention is that it will replace a classic blast furnace from 2027. Together with a second electric arc furnace in Linz, five percent of Austrian CO₂ emissions should be saved from 2029. The assembly of the hall and the crane tracks has already started and APG is building a substation on the site to guarantee the supply of sustainable electricity.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
