Saw wire production has been unprofitable for several years, despite restructuring efforts and capacity investments
Austrian steel producer Voestalpine plans to stop production of special wire products in Fürstenberg, Austria, by the end of 2023. Kallanish reports about it with the reference to company’s data.
The company is part of voestalpine Wire Rod Austria GmbH, a subsidiary of the Metal Engineering Division of voestalpine AG with production facilities in Donawitz, Bruck an der Mur and Fürstenfeld. Since 2012, the company in Fürstenberg has specialized in sawing wire for the photovoltaic industry. Other special wire products are also produced at the facilities.
The production of saw wire has been unprofitable for several years, despite restructuring efforts and capacity investments. In particular, among the reasons are the migration of the European photovoltaic industry to China and a significant increase in electricity prices after the Russian invasion of the territory of Ukraine.
Thus, part of the plant’s products will be produced at the plant in Bruck an der Moor. For the 53 employees who work at the plant, the company has offered alternative positions in Bruck, Leoben, Kindberg and Kapfenberg.
As GMK Center reported earlier, in 2021/2022 financial year Voestalpine increased revenue by 36.9% compared to the previous year – up to €14.9 billion. EBITDA for the year doubled compared to the previous year – €2.3 billion.
In the near future, the company plans to invest almost €100 million in expansion of hot-dip galvanizing lines at the plant in Linz. Investments will make it possible to improve the quality of production of galvanized and uncoated cold-rolled products, as well as to meet the future growing demand for high-quality products.