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January 25, 2022
BUSINESS

Voestalpine, enterprise adapted to recession

The company will not resume its project to build a steel plant on the Black Sea shore but will instead build a steel parts plant in Giurgiu. Works are set to start next month.

Voestalpine, Austria’s largest producer of equipment for the steel industry has given up on its project to build a huge EUR 5 bln steel plant on the Black Sea shore, choosing to invest EUR 20 M in building a steel processing plant in Giurgiu. The group’s representatives had announced as early as December 2008 the decision to freeze the EUR 5 bln project because of the financial crisis. Wolf-Dieter Hohl, general manager Voestalpine Steel Service Centre Romania, pointed out in a press conference yesterday that the project remains frozen, not abandoned. Thus, the Austrian group is making another endeavor by building from June 2010 to June 2011 a steel parts plant in Giurgiu. The investment is estimated at EUR 20 M and is co-financed through the “Enhancing Economic Competitiveness” Operational Program. Voestalpine announced this investment back in 2007. The Austrians analyzed several locations for the new plant, with Rosiorii de Vede and Bulgaria’s Ruse being scrutinized alongside Giurgiu.


“Of the co-financing funds that total RON 18.5 M, RON 15.9 M represent EU funds and RON 2.6 M represent the Romanian government’s contribution,” Stefan Einfalt, general manager and project coordinator Voestalpine Steel Service Centre Romania, underlined. The steel processing plant will span 4 hectares; will have an annual production capacity of 130,000 tons of steel sheets and the possibility of doubling that capacity. The raw materials will be brought mainly from the plant in Linz, Austria. The target markets are the auto, home appliances and industrial sectors in Romania, Serbia and Turkey.


Romania will be the steel parts plant’s main market, with Gernot Schwarzhuber, general manager Voestalpine Steel Service Centre Romania, stating: “Through our production we want to contribute to the success of Dacia Pitesti and Ford Craiova. (…) The city’s main trump card is its strategic location. Giurgiu is a city on the Danube and it has a very good link with Bucharest and neighboring regions, particularly with Bulgaria, a country we also see as another market alongside Turkey.”

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