The voestalpine Success Story

From the War to the LD Steelmaking Process

voestalpine has come a long way. The iron and steelmaking plant, originally built in 1938 as part of the defense industry of the National Socialist regime, became United Austrian Iron and Steelworks (VÖEST) in 1945. The success story of voestalpine began when the company overcame post-war vicissitudes and entirely rebuilt the plant.

One of the most important steps in the history of voestalpine was the development of the LD (Linz-Donawitz) process that revolutionalized the steel industry in 1952. Today more than 60% of steel worldwide is produced using the LD process.

From VÖEST to VOEST-ALPINE

In 1973, the company merged with the Austrian Alpine Montangesellschaft in Donawitz to form VOEST-ALPINE AG in 1978. In 1985 the public enterprise verged on bankruptcy, but the company remained solvent with subsidies from the government. The conglomerate with nearly 70,000 employees was later broken up into a number of different companies. In the course of reconstruction of important parts of the state-owned industry, VOEST-ALPINE STAHL AG emerged as a forerunner of the present voestalpine AG.

From State-owned Company to Corporation

In October 1995, VOEST-ALPINE STAHL AG was partially privatized when it sold 31.7% of the government shares on the stock exchange. In 2001, the company was divided into four operative units (divisions) built on the a solid-steel basis and strategically streamlined with downstream growth along the value-added chain in defined processing areas. The new organization is named voestalpine AG, and a corporate umbrella brand is created.

New Dimensions

The decision to fully privatize voestalpine AG was made in September 2003. The state fully withdrew from the company ownership structure and a convertible bond for the remaining 15% of the government-owned shares was issued. The bond was converted on 31 August 2005 and is considered a starting point of the tremendous growth that continues today.

The 2007/2008 business year was the most successful year in the history of the Group and is a token of gigantic success experienced by voestalpine AG.

After acquiring a majority of the shares in Böhler-Uddeholm AG in the summer of 2007, the corporate structure was expanded by a fifth division and achieved new dimensions with respect to company size, now with a total of more than 40,000 employees.

• 1938 Iron and steelmaking plant as part of the defense industry of the National Socialist regime became Vereinigte Österreichische Eisen- und Stahlwerke AG (VÖEST). 
• 1945 Founding of United Austrian Iron and Steelworks in Linz. In the same year it was renamed United Austrian Iron and Steelworks AG (VÖEST). 
• 1946 State ownership of VÖEST. 
• 1973 Company merged with ALPINE MONTAN AG (Leoben/Donawitz) to form VÖEST-ALPINE AG.

The company with all its disadvantages became a synonym for state-owned industry, and the Management Board resigned in 1985. In retrospect, this year actually marked the beginning of the modernization that was necessary to create what was to become Austria’s largest ever privatization and of what had become an internationally recognized company. The history of voestalpine is an impressive success story.

From State-owned Company to Corporation

• 1993 VOEST-ALPINE STAHL AG was divided into the three divisions of flat-rolled products, long products and trade. 
• 1995 Privatization of VOEST-ALPINE STAHL AG. Within a few hours, the initial offering was oversubscribed several times over. The privatization process reduced the state’s holding to below 40%. 
• 2001 The company, now known as voestalpine AG, decided to pursue a new company strategy with a vision of not producing more steel but making more out of steel.

Success since Flotation

• 2003 Decision to successively fully privatize voestalpine AG: After the state fully withdrew from company ownership, the corporation was in the hands of private shareholders. This was the starting point of value growth in voestalpine shares that continues today. 
• 2007 Acquisition of Böhler-Uddeholm AG (integrated as the new Special Steel Division) 

New Dimensions

• 2007/08 The voestalpine Group achieved new dimensions in this business year in terms of company size, internationalization and record figures. It was by far the most successful year in the history of the company.