Austrian group Voestalpine recently inaugurated its EUR 20 million factory near Giurgiu, in Romania, and plans to expand its activity in Eastern Europe. With an estimated production of 130,000 tonnes of processed steel products, 70 percent of which will be exported.

“We want to benefit from the potential of markets in this area, such as Bulgaria, Serbia or Turkeys, the markets where we will mainly focus,” said Gernot Schwarzhuber, member of the board with Voestalpine Steel center Romania.

The investment in the Romanian factory was of EUR 20 million and was co-financed with EU funds, With construction work started in 2010, the recently inaugurated factory currently employs 50 people, with the possibility to increase the number when the factory will work according to business plan and to the real market volumes, according to the company.

Raw materials will be brought in from Linz, Austria. The factory covers some 9,500 sqm and it was a greenfield project.

In Romania, Voestalpine controls Bohler Welding and Bohler Udelholm, as well as Vae Apcarom, which provides turnout systems for railways, and Voestalpine Steel Service.

editor@romania-insider.com

(photo source: Voestalpine)