Investments
In the 2025/26 business year, voestalpine implemented key growth initiatives in its processing segments. Numerous projects were launched or further advanced at international locations. At the Austrian steel sites in Linz and Donawitz, investment activity focused on the implementation of the greentec steel transformation project. Furthermore, with the official groundbreaking for the Hy4Smelt demonstration plant in the autumn of 2025, another development project in the field of climate-friendly steel production was initiated in collaboration with international partners. Business units responding to challenging market conditions during the reporting period with comprehensive reorganization measures, however, limited their investment activities to necessary replacement and maintenance expenditures. In total, the voestalpine Group invested EUR 1,069.2 million in the 2025/26 business year, which is 14.0% less than in the previous year (EUR 1,243.1 million).
The Steel Division made investments totaling EUR 536.9 million in the 2025/26 business year. Compared to the previous year (EUR 535.0 million), this represents an increase of 0.4%. In the 2025/26 business year, the focus of investments was on implementing the first phase of the greentec steel transformation project. Construction of the hall for the new electric steel plant proceeded according to plan. Key plant components for the electric arc furnace (EAF) were manufactured subject to ongoing quality and schedule monitoring. The project remains within budget and on schedule. Initial assembly steps for the EAF have already begun, with the majority of the assembly for the core unit scheduled for the 2026/27 business year. To ensure the required product qualities, investments are also being made in a new secondary metallurgy plant, including vacuum treatment and a ladle furnace. In the current business year, the procurement process for key components was completed. Commissioning is planned for spring 2027. Furthermore, as part of the expansion of the scrap yard, two of four new scrap handling machines have already been installed.
With the start of construction of the Hy4Smelt demonstration plant in the autumn of 2025, a key research project aimed at further developing climate-friendly steel production was advanced. voestalpine will operate the project in collaboration with the international plant manufacturer Primetals Technologies and Rio Tinto, one of the world’s largest mining groups. The Hy4Smelt research collaboration combines hydrogen-based direct reduction for ultrafine iron ores with an electric smelting process, thereby combining two innovative methods. With projected total costs of around EUR 170 million, Hy4Smelt is Austria’s largest research project for climate protection.
The new power plant unit 08, with an electrical output of approximately 45 megawatts, was successfully commissioned in the 2025/26 business year to replace unit 06. Further important milestones were achieved in the 2025/26 business year regarding the upgrade of the hot-dip galvanizing facilities; the “Transver” project will be implemented over several years until 2030.
The High Performance Metals Division’s investments in the 2025/26 business year amounted to EUR 81.8 million, representing a decrease of 35.1% compared to the previous year’s figure of EUR 126.1 million. A key investment project for the division involves the construction of a fully automated high-bay warehouse at the BÖHLER Edelstahl site in Kapfenberg, Austria. The goal of the project is to achieve a sustainable increase in the efficiency of logistics processes through the use of high-performance logistics hubs.
At the Villares Metal site in Sumaré, Brazil, investment activity focused on the construction of a new metallurgical plant for the decarburization of special steel using argon and oxygen. In the 2025/26 business year, all plant components were delivered and initial construction work was carried out. Investments at the BÖHLER Aerospace production site in Kapfenberg and at Uddeholms in Hagfors, Sweden, primarily comprised replacement and maintenance measures.
The Metal Engineering Division’s investment volume amounted to EUR 293.2 million in the 2025/26 business year. Compared to the previous year’s figure of EUR 381.9 million, this represents a decrease of 23.2%. Investment activities focused on measures related to the greentec steel transformation project. Significant progress was made in building the power supply infrastructure as well as in the steel construction work on the furnace and scrap hall. In addition, the foundations for the electric arc furnace were laid during the 2025/26 business year.
In the summer of 2025, assembly of the first components of the core unit began. At the same time, construction of the dust removal and heat recovery systems was initiated, and work on the power supply was progressed further. The building for the new substation was also completed by the end of the 2025 calendar year.
In the Railway Systems business unit, new switch transport cars were purchased for the European railway market, and initial expansion measures were implemented at the Knoxville site, which was acquired the previous year. The Welding product segment invested in the expansion of the Italfil site in Italy.
The Metal Forming Division made investments totaling EUR 147.8 million in the 2025/26 business year, representing a decrease of 15.5% compared to the 2024/25 business year (EUR 174.9 million). In the 2025/26 business year, the Automotive Components business unit focused its activities on consolidating production sites as part of its organizational and strategic realignment and made selective replacement investments.
The Tubes & Sections business unit, on the other hand, represents a strategic growth area for the division. At the Jeffersonville, U.S., site, the North American company Rollforming Corporation continued to advance the expansion of production capacities. The first expansion phase was ramped up toward the end of the 2025/26 business year. Once fully operational, the site’s production capacity is planned to double. The investment volume for the additional roll forming and finishing equipment amounts to approximately EUR 70 million. In addition, the Brazilian site Meincol in Caxias do Sul invested in the expansion of production capacities. The project is scheduled for completion in the 2026/27 business year. In Belgium, the company voestalpine Sadef enhanced its technological capabilities by acquiring a new coating line.