Voestalpine to sell German special steel unit

Voestalpine’s management has decided to change the planned strategic repositioning of Buderus Edelstahl into the sale of the subsidiary. It says it is doing this in reaction to the economic conditions for industrial manufacturing companies in Germany.

Buderus is part of voestalpine’s High Performance Metals division. Following its divestment, the division will concentrate its product portfolio on the high-tech segment of special materials, and reduce the production share of tool steel and engineering steel in the standard grade area. The resulting optimisation of the product portfolio will strengthen the High Performance Metals division’s competitive position, management believes.

In the Automotive Components unit – part of the Metal Forming Division – voestalpine is maintaining its internationalisation strategy. However, it will make targeted adjustments in response to the structural underutilisation of capacity in the automotive supply industry in Germany. Management has already responded by consolidating the production network, including the sale of the production site in Nagold, Germany, it says.

The above-mentioned measures will result in negative one-off effects on the group’s Ebitda of about €90 million ($98m) and on Ebit of about €410m, Kallanish understands. This means an adjustment to the Ebitda expectation for the business year 2023/24 from around €1.7 billion to around €1.6 billion.

In terms of other customer sectors targeted, the group notes that significant progress has been made, for example, in the area of automated warehouse technology. The promising railway infrastructure segment is also continuously expanding through strategic investments, it adds.

Christian Koehl Germany