Voestalpine warned of possible job cuts at two plants in Austria

Austrian steel group Voestalpine AG may reduce production capacity at two of its plants in the country – voestalpine Tubulars in Kindberg and BÖHLER Bleche in Mürzzuschlag. This is stated in the company’s financial report.

The document states that the voestalpine Tubulars plant in Kindberg has seen a significant decline in sales due to the impact of US tariffs on imports of pipe products and the prolonged decline in oil prices. In this regard, the company announced that it may need to adjust its production capacity, with a final decision to be made by the end of 2025.

The BÖHLER Bleche division is also continuing a strategic project to review its business model and processes in order to ensure profitability in difficult market conditions. The company stressed that further capacity adjustments within the group cannot be ruled out, which indicates possible staff reductions.

At the same time, Voestalpine reported solid financial results, with pre-tax profit up 12% year-on-year to €278 million and net profit up 8.6% to €199 million. The positive results are explained by market diversification and stable demand for railway infrastructure and aerospace products.

Despite this, the company acknowledges that the economic environment remains challenging due to weak growth in Europe and trade restrictions. The impact of US tariffs has already affected the profitability of certain divisions, and Voestalpine is forced to continue its restructuring program in the coming months.

As a reminder, construction of Hy4Smelt, the world’s first industrial-scale demonstration steel plant combining hydrogen direct reduction technology with an electric arc furnace, recently began in Linz, Austria. The project is being implemented at voestalpine’s facilities in cooperation with Primetals Technologies and the international mining group Rio Tinto.