Austrian steel giant is planning to sell its plant in Germany

Austria-based Voestalpine AG plans to sell Buderus Edelstahl as a response to the negative economic conditions prevailing in Europe, the company announced in a press release, adding that it is considering restructuring its auto parts production facilities in Germany.

"This step will be a consistent implementation of the Voestalpine Group's strategy to focus its materials business on the highest quality range and expand its downstream activities into promising global segments," Voestalpine commented, noting that it is reducing the share of tool and structural steel produced in standard grades.

SteelRadar sources anticipate that the company is considering selling its production facility in Nagold, Germany, which would result in a value loss of around €70 million. In this context, the loss of sales volumes will lead to a one-time reduction in the company's EBITDA of around EUR 90 million, and the company's EBITDA guidance for this year has been reduced from EUR 1.7 billion to around EUR 1.6 billion.

Sources pointed out that the company is on a positive upswing in the field of automated warehouse technology, while its rail infrastructure business is being developed.