Voestalpine invests 1.5 billion euros in green steel transition

Voestalpine is advancing its decarbonization strategy through the ‘greentec steel’ project, which involves a 1.5 billion euro investment to modernize steel production in Austria. A key component of this initiative is the construction of a new electric arc furnace (EAF) at the company’s Linz facility. Unlike traditional blast furnace methods that rely on coke, coal, and gas, the EAF uses electricity to melt scrap or directly reduced iron, significantly reducing greenhouse gas emissions.

The construction of the new furnace is taking place amidst ongoing plant operations. The project includes the installation of a 220-kilovolt power line and a new laboratory for testing liquid steel samples. Approximately 550 companies are involved in the project, with 90 percent based in Austria.

Financially, voestalpine reported a strong start to the 2026/27 fiscal year. The company’s EBIT rose by 78.8 percent to 307 million euros, while EBITDA reached 495 million euros. These results include special effects of approximately 100 million euros from the sale of the Böhler Profil subsidiary and reorganization measures. The company expects to begin operating the new electric arc furnaces in Linz and Donawitz in the first half of 2027.