Voestalpine is expanding its environmental modernisation programme at its plant in Donawitz

The Austrian steel and technology group voestalpine has unveiled plans for the next phase of modernisation at its plant in Donawitz (Styria). The project forms part of the greentec steel programme — Austria’s largest climate initiative. This is according to a company statement.

Key milestones and investments:

1. Commissioning in 2027. In less than a year, the first electric arc furnace (EAF), powered by ‘green’ electricity, will be commissioned at the Donawitz site. This will enable the combination of electric steelmaking with the traditional blast furnace process. Initial capacity will be around 850,000 tonnes of low-carbon steel per year.
2. Reduction in blast furnace production. As early as 2029, the company plans to shut down one of its blast furnaces. At this stage, the group’s total CO₂ emissions will fall by 30 per cent compared with 2019 levels, equivalent to almost 4 million tonnes of CO₂ annually (around 5 per cent of Austria’s total emissions). The budget for the first phase is around €1.5 billion.
3. Full transition by 2030. Provided that financing issues are resolved, voestalpine will invest a further €100 million or so in expanding the capacity of the new electric arc furnace. This will enable a complete switch to electrified steel production in Donawitz by 2030. Production capacity will rise to 1.5 million tonnes of green steel per year, and the total reduction in CO₂ emissions at the site will exceed 90% compared with 2019.

The additional investment of €100 million, which has already been approved by the supervisory board, will be directed towards modernising the power supply system, constructing a third secondary metallurgy line and expanding scrap logistics. The full technological transition will enable the two blast furnaces and the sintering plant to be permanently decommissioned.

“Thanks to the greentec steel programme, we are setting new global standards for the next generation of steel production. We are progressing strictly on schedule and within budget,” said Herbert Eibensteiner, CEO of voestalpine AG.

He also added that this transformation will indirectly help to safeguard more than 5,000 jobs at the Metal Engineering division’s plants in Styria.

Construction and technical work is currently proceeding according to plan. Last year, the EDP building was completed and the infrastructure for the supply of electricity and raw materials was put in place. The main tasks for 2026 are the installation of the main equipment in the autumn, as well as the commissioning of the power supply and scrap supply systems.

As reported by GMK Center, voestalpine is to modernise its 5 million metric tonnes per annum hot rolling mill in Linz (Austria). Primetals Technologies has been selected as the partner for the modernisation. The modernisation of the cooling line will enable the production of new steel grades for the automotive industry.