Voestalpine puts off €5.5 mln investment decision to 2010

The first three countries have already signed memoranda with the group, promising several benefits, while a feasibility study is still ongoing in Turkey. Voestalpine initially said that a decision would be made by December, but last month indicated it would postpone this to the beginning of 2009, due to the crisis and low demand for steel. “The group’s representatives met members of the government commission Wednesday night, and announced it would delay a decision until 2010, at the earliest, when it estimates that the steel market will revive,” Silaghi said. Sources close to negotiations indicated that Voestalpine has spent some €10 million in Romania so far for land purchase options from several land owners close to the southeastern town of Agigea in Constanta County. They added that a decision could be put off as late as 2011. “The Agigea project is frozen because Voestalpine officials realized that the group is more affected by the international crisis than they thought. There are no further land acquisitions there and everything is on hold until further notice, although Voestalpine has so far pre-contracted 70-80 percent of the land [it needs] from private owners,” sources said. Voestalpine requires some 600 hectares of land for the investment. Of this, 170 hectares are provided by the Romanian state, while the remainder is to be purchased from private owners. (I.E., S.D.)