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voestalpine is Producing Ultra-High Strength Automotive Components in the USA

The voestalpine Group’s 17thproduction site in the United States began operation today. voestalpineAutomotive Body Parts Inc., a subsidiary of the Metal Forming Division, ismanufacturing ultra-high strength body-in-white components for premium carmanufacturers in Cartersville/Georgia. This EUR 50 million investment (aboutUSD 70 million) will create 220 jobs. It completes the first phase of theGroup’s extensive internationalization program in the automotive sector. Since2012, voestalpine has invested over EUR 100 million (USD 140 million) in newplants in China, Germany, Romania, South Africa, and the USA. Additional plantsand expanded capacity are in the planning stage.

 

The steel-basedtechnology and capital goods group voestalpine has consistently expanded itsinternationalization program. In recent months, new facilities and expandedproduction capacity went into operation close to the production facilities ofwell-known premium car manufacturers on four continents. The global presencethat already exists in other divisions was thus extended to the automotivesector of the Metal Forming Division. “We are following the automotivemanufacturers, particularly the European ones, into the markets of the futureand massively expanding our presence there,” said Wolfgang Eder, CEO ofvoestalpine AG. “With our new materials, we have managed to produce componentsthat have absolutely unique selling points on a global level. We are only atthe beginning of our development in the processing area and are thereforeaccelerating our internationalization program.” In the business year 2012/13,the voestalpine Group generated 44 percent of its revenue of EUR 11.5 billion(USD 15.8 billion) in the mobility area, with about two-thirds of that comingfrom the automotive industry.

 

Long-termcontracts as the basis for future growth

 

In his speech of October last year,President Obama lauded the U.S. activities of voestalpine as one of the topforeign investments in the USA. The production facility in Cartersville has nowbeen inaugurated. “Cartersville is centrally located in the southern automotivecluster close to our customers. When fully operational, we will employ 220persons,” said Herbert Eibensteiner, member of the voestalpine AG ManagementBoard and head of the Metal Forming Division. For the time being, the Group’scustomers will be European, primarily German automotive manufacturers.Eibensteiner provided specifics about the company’s growth plans. “We havelanded several long-term contracts for sophisticated automotive components withwell-known manufacturers. Our components are in high demand by all of theautomotive manufacturers worldwide.”

 

“The U.S. market is of particularstrategic importance to the voestalpine Group and is a central element in thepursuit of our goal of increasing Group revenue in North America to EUR 3billion, or about USD 3.9 billion, by 2020,” stated Eder. In all, the MetalForming Division with its high-quality metal processing solutions contributesabout one-fifth of the Group’s total revenue. In turn, complex components forthe automotive industry make up about half of that.  

 

Georgia: a location for well-knownautomotive manufacturers and suppliers

 

Several European and Asian automotivemanufacturers have chosen the southern parts of the USA for productions sites.The city of Cartersville is located in the State of Georgia about 60 kilometers(about 37 miles) northwest of Atlanta. In the future, it will be the center ofvoestalpine’s automotive activities in North America in terms of maximum siteefficiency. phs-ultraform components and stamped pressparts will be assembled at the new plant. Laser-welded blanks and other spareparts for OEMs (Original Equipment Manufacturers) will also be produced therein the future.

 

Metal Forming Division 

 

The voestalpine Group’s Metal FormingDivision is active worldwide; in 2012/13, it generated revenue of EUR 2.3billion and an operating result (EBITDA) of EUR 258 million. The division hasround 11,000 employees and produces on behalf of almost all of Europe’sautomotive manufacturers. The Metal Forming Division is a leading globalprovider of high-quality metal processing solutions, in particular specialtubes and sections, precision strip steel as well as complex components for theautomotive industry. It has five business units: Tubes & Sections is aleading global manufacturer of highest quality tubes, profiles, and precisionsteel tube products; Automotive Body Parts is a direct supplier of innovative,high quality pressed parts in the body-in-white segment to the automotiveindustry; Precision Strip manufactures cold-rolled precision strip steel with ahigh degree of dimensional stability and excellent surface qualities; MaterialHandling offers sophisticated product solutions in the high-bay warehouses andsystem racks segments, and Flamco produces high quality components for heatingand portable water installations with a focus on the market in the Beneluxcountries.

 

The voestalpine Group

 

Thevoestalpine Group is a steel-based technology and capital goods group thatoperates worldwide. With around 500 Group companies and locations in more than50 countries and on all five continents, the Group has been listed on theVienna Stock Exchange since 1995. With its top-quality products, the Group isone of the leading partners to the automotive and consumer goods industries inEurope and to the oil and gas industries worldwide. The voestalpine Group isalso the world market leader in turnout technology, special rails, tool steel,and special sections. In the business year 2012/13, the voestalpine Groupreported revenue of EUR 11.5 billion and an operating result (EBITDA) of EUR1.45 billion; it had around 46,400 employees worldwide.

 

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