“We must look carefully at the financing,” added Schiefer. The company’s CEO, Wolfgang Eder, declared yesterday that Voestalpine could postpone its decision regarding the plant, due to the effects of the financial crisis. Schiefer also quashed the rumor yesterday that Voestalpine is experiencing financial or liquidity problems, after the Austrian Der Standard daily reported that the steelmaker had applied for €300 million in assistance from the Upper Austria Land to finance the acquisition of the Boehler Uddeholm competitor. The company further indicated that it is maintaining its targets for this year.
The Austrian group’s steel plant could produce an annual 5.5 million tons of steel, and the countries being considered for the Voestalpine investment are Romania, Bulgaria, Ukraine and Turkey. According to the international press, the value of the investment is some €5.5 billion.
According to a Reuters quote of Raiffeisen Centrobank (RCB) Analyst, Klaus Kueng, yesterday’s announcement by Voestalpine’s CEO could signal that the steel maker is considering an exit strategy in terms of this project.
