Location weakens

What the Voestalpine boss wants from the government

Voestalpine General Herbert Eibensteiner: "Austria is even weaker than Germany."

(Bild: Krone KREATIV/Daniel Scharinger, Foto Kerschi)

Voestalpine boss Herbert Eibensteiner is calling for the new government in Austria to "get going quickly". Austria and Europe have lost their attractiveness as business locations. This must be improved again quickly with a few concrete measures.

The main problems for industry in Austria are the high energy and labor costs. Natural gas and electricity cost four to five times as much as in other regions. Eibensteiner therefore expects electricity price compensation to be extended until 2030.

"Dismantling trade barriers and excessive bureaucracy"
There are also issues that cost nothing but would bring a lot: Firstly, if bureaucracy in Austria could be reduced and, secondly, that applies all the more to the EU's excessive regulations in recent years. In order to comply with the data collection, separate business areas are required.

Eibensteiner: "We want to continue to achieve sustainable growth, and reducing trade barriers and excessive bureaucracy would be beneficial for this." After all, the company is active in 50 countries. It is hoped that Austria will soon have a new government with an economic program that strengthens the location again, i.e. no tax increases and extra burdens.

Voestalpine focuses on a green future
Voestalpine has already made a number of cost savings, including the sale of the loss-making Buderus stainless steel plant in Germany. The company will implement the largest climate protection program in Austria with EUR 1.5 billion, and from 2027 there will be "green steel" from Linz and Donawitz. This will 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, with 23,600 of its 51,600 employees working in Austria. Eibensteiner: "With 1040 apprentices, we are also the largest industrial apprentice trainer in the country, spread over 30 apprenticeships and 16 locations."

Thanks to these measures, Voestalpine continues to operate profitably, the most important concern being the major investment in future "green steel". Political support for this was rather modest at EUR 90 million; other countries were more proactive. The company itself has invested 310 million euros to date.

High-quality products ensure competitiveness
As a listed company, Voestalpine specialized in high-quality steel products in good time. Although deliveries for the struggling European automotive industry are stagnating, business with high-bay warehouses and high-speed turnouts is booming (for example, production is already underway for a new line in Egypt).

Eibensteiner is unperturbed by the new US President's announcements: "We have been operating several plants in the USA for a long time, we know the scene quite well. But of course: Europe's competitiveness has suffered, and everyone is feeling it."