Austria’s Voestalpine Scraps Plans To Secure Land In Romania

"As already announced, Voestalpine has frozen the evaluation project for examination of a new steel site on the Black Sea. The decision regarding the possible location has been deferred indefinitely in view of the recessive development anticipated in 2009 and beyond this the uncertainty for the cyclical trend for subsequent years," the steelmaker said in a statement. It said the possible four locations in Romania, Bulgaria, Turkey and Ukraine will be examined again on project's reactivation. In October, Voestalpine said it deferred until 2009 the decision on the EUR5 billion greenfield investment for a steel mill in the Black Sea region, due to the international financial turmoil and the uncertainty on the further development of the world economy. The Romanian Government and representatives of Voestalpine signed in October a memorandum of understanding on the construction of the steel mill.Voestalpine operates in Romania via its British unit Elmsteel, which owns a plant in Satu Mare county, northern Romania, since 2004.Voestalpine reported revenue of EUR10.5 billion in the 2007/2008 fiscal year, up 51% from nearly EUR7 billion a year ago, and a 31% increase in its net profit, to EUR1 billion.

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