The new government in Austria must ‘get to work quickly’, says Voestalpine boss Herbert Eibensteiner. Austria and Europe have become less attractive as locations. This must be improved quickly with some concrete measures.
The main problems for the industry in Austria are high energy and labor costs. Natural gas and electricity cost four to five times as much as in other regions. Eibensteiner therefore expects that the electricity price compensation will be extended until 2030.
“Reducing trade barriers and excessive bureaucracy”
There are also concerns that cost nothing but gain a lot: firstly, whether bureaucracy in Austria can be reduced, and secondly, this applies in particular to the EU’s excessive regulation in recent years. Separate business areas are required for data collection.
Eibensteiner: “We want to continue to achieve sustainable growth; reducing trade barriers and excessive bureaucracy would be beneficial.” It is hoped that a new government in Austria will soon come with an economic program that will strengthen the location again, so no tax increases or additional charges.
Voestalpine is committed to a green future
Voestalpine has already made a number of changes on the cost side, including the sale of the loss-making Buderus stainless steel factory in Germany. The company will implement the largest climate protection program in Austria with 1.5 billion euros. From 2027 there will be “green steel” from Linz and Donawitz. This can save up to 30 percent of CO₂ emissions compared to 2019.
Despite the weakening economy (“Austria is even weaker than Germany”), the Voestalpine Group has held up well; 23,600 of the 51,600 employees work in Austria. Eibensteiner: “With 1,040 students, we are also the largest industrial student trainer in the country, spread over 30 apprenticeships and 16 locations.”
Thanks to these measures, Voestalpine continues to operate profitably; the main concern is the large investment in the future “green steel”. The political support for this was rather modest at 90 million euros; other countries were more aggressive. The company itself has invested 310 million euros in this so far.
High quality products ensure competitiveness
As a listed company, Voestalpine specialized in high-quality steel products in a timely manner. Deliveries for the ailing European car industry are stagnating, but the trade with high-bay warehouses and high-speed switches is booming (for example, production for a new route in Egypt is already underway).
Eibensteiner calmly takes note of the announcements of the new American president: “We have been running several factories in the US for a long time and know the scene quite well. But of course: Europe’s competitiveness has suffered, everyone feels that.”
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.
