By Jenny Busche
FRANKFURT--Voestalpine AG (VOE.VI), the Austrian specialty steel
and technology company, will invest around a quarter of this year's
investments outside of Europe, the head of the company said late on
Monday.
Voestalpine plans to invest around 250 million euros ($283
million) annually over the next two years in the U.S., Chief
Executive Officer Wolfgang Eder said. Most of the investments will
go toward the company's specialty steel business but acquisitions
are also possible, he added. Over the long term, Voestalpine plans
to invest EUR50 million to EUR100 million annually in the U.S,
compared with investments of between EUR5 million to EUR10 million
a year at present.
Voestalpine is also looking to expand in China, where it is
building three factories to produce automobile parts. One factory
is already complete. The company is also due to decide on a EUR180
million investment in China to build a factory which would make
stainless steel for the auto and machinery industries.
Voestalpine's growing focus outside of Europe can be traced back
to the difficult business environment in the region and the high
cost of energy.
"Industry is on the retreat in Europe," said Mr. Eder, who is
also chairman of the World Steel Association. "If nothing is done
in Europe on the energy side in the foreseeable future, we won't be
able to be competitive," he added.
Voestalpine intends to keep its headquarters in Austria over the
long term, he added.
(Nicole Lundeen in Vienna contributed to this article.)
Write to Jenny Busche at jenny.busche@dowjones.com
