Voestalpine plans to create a production site for the production of pipes and profiles in Indus, its executives said during a virtual press conference on the results of the third quarter.
They identified India as one of the three main areas of activity, along with its railway systems and enterprises producing warehouse and shelving solutions. At the moment, the Austrian concern operates five factories in India, employing 1,000 people, with revenue of about 190 million euros ($225 million). He does not yet have a schedule for the construction of a new plant and the planned location has not been indicated.
"We are looking for a building with an area of 15-16,000 square meters," CEO Herbert Eibensteiner said at the conference. "We will start with three machines, and then we will gradually increase production over five years, as we did in the USA or Brazil," he told Callanish. He noted that the plant will produce special pipes and profiles, but not commercial grades.
Eibensteiner also announced the possibility of additional acquisitions in the segments of railway systems and warehouse and shelving solutions. He did not name the goals, but said that "we have long and short lists," suggesting that the acquisition could happen soon.
In the third quarter, the company's revenue decreased by 5.1% year-on-year to 11.1 billion euros due to large-scale reorganization measures. This was most affected at the group's plant in Kindberg, Austria, partly due to reduced business opportunities following the introduction of its protective measures by the United States.
According to chief financial officer Gerald Mayer, voestalpine is losing double-digit millions of dollars due to US sanctions, partly due to duties, but also due to loss of business. Eibensteiner added that this also affects his activities in Brazil, where appropriate measures are being taken.
Operating profit (EBIT) increased by 20.9% year-on-year to 473 million euros, while profit after taxes increased by 25.1% to 259 million euros. The Group confirmed that by the end of the 2025/26 financial year, it still expects Ebitda in the range of 1.4-1.55 billion euros.
Author: Christian Kel Germany
Kallanish.com
