News Feed Item

voestalpine Invests More Than a Half Billion Euros in a Direct Reduction Plant in the U.S.

LINZ, Austria, April 23, 2014 /PRNewswire/ --

After about a year of preparation, Wolfgang Eder, CEO of voestalpine, broke ground today for the construction of a direct reduction plant in Texas (USA). This EUR 550 million investment is the largest foreign investment in the history of the Austrian Group. The voestalpine Texas LLC plant is being constructed at the La Quinta Trade Gateway Terminal in close proximity to the City of Corpus Christi. Starting in 2016, the plant will produce two million tons of HBI (Hot Briquetted Iron) and DRI (Direct Reduced Iron) annually and will supply Austrian locations, such as Linz and Donawitz, with "sponge iron" as a premium raw material. With the new facility, voestalpine can significantly reduce production costs in Europe. The highly automated plant will create 150 jobs. 

voestalpine, a steel-based technology and capital goods group headquartered in Linz, Austria, has pursued a consistent strategy of international growth and is constantly looking for new opportunities to establish sustainable cost and technology optimization models. "We investigated 17 locations in eight countries for this project. In the end, Texas was the most promising on all key criteria, such as logistics, energy supply, well-trained employees, and political environment," said Wolfgang Eder, CEO of voestalpine AG and Head of voestalpine's Steel Division on the decision to choose a location. The property is superbly located right on Corpus Christi Bay, covers an area of about two square kilometers, and provides direct sea access for large ships. "With our investment in Corpus Christi, we are significantly enhancing the efficiency of the use of raw materials by our company and at the same time demonstrating that this is possible while being responsible with the environment," stated Eder. The Austrian plants in Linz and Donawitz will obtain access to high-quality, environmentally friendly primary materials (HBI and DRI), and the competitiveness of the European locations will thereby be ensured over the long term.

Direct reduction provides security for the Austrian sites and creates growth options  

The direct reduction plant will use iron ore pellets to produce high-quality DRI/HBI ("sponge iron") comparable to the highest quality scrap or pig iron, which is an excellent primary material for the production of crude steel. In contrast to the coke- and coal-based pure blast furnace route, only natural gas is used as a reduction agent in direct reduction, which is more environmentally friendly. The price of natural gas in the U.S. is about a half of what it is in Europe. The plant - with its 150 employees - will produce two million tons of DRI/HBI annually, of which about half will be shipped by sea to the steel plants in Linz and Donawitz. The other half will be used as a strategic reserve and sold to long-term partners. "We can supply ourselves with competitively priced energy in the U.S. in a politically stable, reliable environment," stated Eder. "Moreover, this investment also creates an additional long-term growth option in North America for the voestalpine Group." The construction of the plant is a heavy construction project in the truest sense. The EUR 550 million investment covers 20,000 tons of constructional steel and 13,000 tons of mechanical equipment. Construction of the plant will employ about 1,000 people for a period of one and a half years.

Direct reduction as an important step toward a "low-carbon economy" 

The use of natural gas instead of coke and coal in the reduction process makes a significant contribution to improvement of the CO2 balance and is an important step in achieving the very demanding internal energy and climate goals. "In the USA as well, we invest in higher than average environmental and safety standards as well as the consistent use of best available control technologies to minimize air, noise, and dust emissions. This also includes being careful with water, which is in short supply in Texas," said Eder. In the USA, there are strict environmental requirements, as in Europe, but with CO2 "Texas takes a different path." A sophisticated logistics concept with round-trip shipping, which uses large eco-ships for transport, reduces costs to a minimum and further relieves the environment. The storage of primary materials in a completely enclosed environment eliminates dust emissions. A progressive seawater cooling system preserves scarce freshwater resources and adds to the sustainable design of the plant.  

"The open and professional collaboration with all the participants on site is exemplary," stresses Eder. "This impressively demonstrates the USA's efforts at rapid and sustainable reindustrialization. The fact that we, as a future-oriented industrial company, were welcomed with open arms was a factor in selecting this location," said Eder.

voestalpine in North America: 2,500 employees and revenues of EUR 1 billion (USD 1.3 billion) 

In the business year 2012/13, the voestalpine Group generated 8 percent of its total revenues of EUR 11.5 billion (USD 15.8 billion) at its 68 locations in North America with about 2,500 employees - this corresponds to about EUR 1 billion (USD 1.3 billion). In the USA alone, 2,000 employees generated revenues of EUR 840 million (USD 1.1 billion). The largest single company, voestalpine Nortrak, with about 1,000 employees and seven production and distribution sites, is a market and technology leader in North America in the sector of railroad switch technology. The Group is also strongly represented in the automotive, stainless steel, energy, and aviation industries. The Metal Forming Division recently opened a plant for ultra-high strength body-in-white components in Cartersville/Georgia with an investment of EUR 50 million (USD 69 million). As part of its long-term globalization strategy, the voestalpine Group will rapidly expand its already strong local presence in the growth market of the United States in the coming years. In other respects, North American investors hold about 10% of voestalpine shares.

The voestalpine Group  

The voestalpine Group is a steel-based technology and capital goods group that operates worldwide. With around 500 Group companies and locations in more than 50 countries and on all five continents, the Group has been listed on the Vienna Stock Exchange since 1995. With its top-quality products, the Group is one of the leading partners to the automotive and consumer goods industries in Europe and to the oil and gas industries worldwide. The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections. In the business year 2012/13, the voestalpine Group reported revenue of EUR 11.5 billion and an operating result (EBITDA) of EUR 1.45 billion; it had around 46,400 employees worldwide.

Please direct your inquiries to

voestalpine AG
Peter Felsbach

voestalpine-Strasse 1
4020 Linz
Phone: +43-50304-15-2397
[email protected]

SOURCE voestalpine AG

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve fu...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...