Voestalpine resumes steel production in Linz

In early September, the Voestalpine Group will restart its small blast furnace in Linz, Austria, which has been temporarily shut down since March this year following a sharp drop in consumer demand caused by the coronavirus (COVID-19).

The steel division of the voestalpine group produces high-quality steel products in Linz for all premium car manufacturers and their suppliers, as well as for European household appliances, mechanical engineering and energy.

The company explained that the gradual recovery in demand, reportedly most noticeable in the automotive, electrical and manufacturing industries, has led to an increase in demand for high quality steel grades. The first signs of recovery are also reported to be evident in the mechanical engineering and energy sectors, for which the Linz plant also produces steel products.

The small blast furnace in Linz, in combination with two other blast furnaces at this site, has an annual pig iron production capacity of about five million tonnes and is expected to be restarted to bring about almost normal steel production. Two more blast furnaces are located in Donavits; one of them is scheduled for interim repairs until October and will only be restarted at the request of the customer.

The group clarified that economic growth and the degree of recovery it sees vary by region and market segment. Its rail systems and high-bay warehouse technology sectors are believed to be performing well, while the aerospace and oil and gas industries are particularly hard hit by the pandemic.

In the 2019/20 financial year, the voestalpine Group generated revenues of € 12.7 billion, an operating result of € 1.2 billion, and a global headcount of approximately 49,000.