voestalpine Calls for Continued Electricity Price Compensation to Protect Austria’s Energy-Intensive Industry
(IN BRIEF) voestalpine AG has urged the Austrian federal government to ensure fair competition for Austria’s energy-intensive industries by continuing to use electricity price compensation, a measure already utilized by many EU countries. The company emphasizes that this compensation is a crucial factor for competitiveness, investment, and the maintenance of 23,600 jobs in Austria. While other EU countries, including voestalpine’s major competitors, have extended this compensation until 2030, Austria currently only offers a temporary solution. The company is also facing significant energy cost challenges due to its transition to electric arc furnaces, which require more electricity, and is investing EUR 1.5 billion in its greentec steel project. However, voestalpine is receiving minimal subsidies for this effort and faces over EUR 1 billion in CO₂ penalty taxes, further putting its competitiveness at risk.
(PRESS RELEASE) LINZ, 7-May-2025 — /EuropaWire/ — voestalpine AG, a leading global steel and technology group, has called on the Austrian federal government to ensure a fair competitive environment for Austria’s energy-intensive industries by continuing the use of the electricity price compensation program. This measure, a key instrument for boosting the competitiveness of energy-intensive sectors, has been implemented in 14 EU countries, with many extending it until 2030. However, Austria has not yet committed to maintaining this critical support, placing the country’s industries at a significant disadvantage compared to its European competitors.
Herbert Eibensteiner, CEO of voestalpine AG, emphasized the importance of electricity price compensation for ensuring the future of the company and the 23,600 jobs it supports in Austria. “For companies like voestalpine, this compensation is an essential factor in maintaining our competitiveness, securing investment, and protecting jobs,” Eibensteiner said. “We contribute significantly to the Austrian economy, generating an annual production value of EUR 21.5 billion and paying EUR 2.4 billion in taxes and social contributions. In return, we need assurance that the government will create a stable, competitive framework for our industry.”
The failure to adopt long-term electricity price compensation is already having a detrimental impact on Austria’s energy-intensive industries, particularly voestalpine. “We are losing customers, especially in Europe, as they are unwilling to bear the additional costs,” said Eibensteiner. “The situation is critical, and we urge Austrian politicians at both the federal and regional levels to work with the industry to develop sustainable solutions for electricity price compensation.”
As part of its ongoing transformation, voestalpine is investing EUR 1.5 billion in the development of greentec steel, Austria’s largest climate protection initiative. However, the company is receiving less than EUR 100 million in subsidies for this effort, while paying over EUR 1 billion in carbon certificate costs over the past four years. By 2030, these costs are expected to rise by more than EUR 2 billion. Eibensteiner described these costs as a “punitive tax” because they are not earmarked for climate or environmental protection.
voestalpine’s transition from blast furnaces to electric arc furnaces, which require significantly more electricity, makes the company even more vulnerable to rising energy costs. “The high energy prices in comparison to non-European competitors and even within Europe put us at a disadvantage,” said Eibensteiner. “We need trust and collaboration with the government to foster growth, economic strength, and prosperity for Austria.”
The call for continued electricity price compensation aligns with the EU’s recent recommendations to its member states to use effective measures, such as price brakes, to enhance the competitiveness of energy-intensive companies.
voestalpine remains committed to its transformation and to Austria’s long-term economic prosperity, but the company is calling for immediate action to ensure that the government maintains a level playing field for Austria’s energy-intensive industries.
The voestalpine Group
voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. voestalpine, which operates globally, has around 500 Group companies and locations in more than 50 countries on all five continents. The voestalpine Group has been listed on the Vienna Stock Exchange since 1995. With its premium products and system solutions, voestalpine is a leading partner to the automotive and consumer goods industries, as well as to the aerospace and energy industries. The company is also the global market leader in railway systems, tool steel, and special sections. voestalpine is committed to the global climate goals and has a clear plan for transforming steel production with its greentec steel program. In the business year 2023/24, the Group generated revenue of EUR 16.7 billion, with an operating result (EBITDA) of EUR 1.7 billion; it has around 51,600 employees worldwide.
Media Contact:
Peter Felsbach
Head of Group Communications & Spokesman
mediarelations@voestalpine.com
+43/50304/15-2090
SOURCE: voestalpine AG
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