History of the voestalpine group (1.37 MB)

History of the voestalpine Group 

voestalpine AG 

www.voestalpine.com

The Group from 1938 up to the Present 

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1938-1945: The Linz Site of Reichswerke AG „Hermann Göring“ Berlin 

1945-1973: VÖEST 

1973-1987: VOEST-ALPINE AG 

1988-1995: VOEST-ALPINE STAHL AG up to the Beginning of Privatization 

1996-2001: Restructuring of the Group. From VOEST-ALPINE STAHL AG to 


voestalpine from 2001 up to the Present 


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1938-1945: The Linz Site of Reichswerke AG 

„Hermann Göring“ Berlin 

Beginning with 1938 an iron and steelworks – a subsidiary of the Reichswerke founded in 

Berlin in 1937 – was established in Linz as part of the national-socialist war industry. 

The approximately 4,500 inhabitants of St. Peter/Zizlau, the site for the Hermann Göring 

works, were relocated to other parts of the city. 

In 1939 Reichwerke Linz and Alpine Montangesellschaft merged to form Alpine Montan 

Aktiengesellschaft „Hermann Göring“ Linz. 


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Southern Harbor Side towards Blast Furnaces

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Hermann Göring works comprised at the Linz site five large companies, among them 

Eisenwerke Oberdonau, which was given highest priority, because it was an armaments 

factory. 

From 1941 onward the complex of companies in Linz successively began production. 

It would not have been possible to build the plants in Linz and to produce armaments 

without the use of foreign labor. In summer 1938 foreign civilian workers arrived. Later, 

from 1940/1941, forced laborers, prisoners of war and, beginning at the end of 1942, also 

concentration camp prisoners were used. 



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In the summer of 1944 allied bombing 

attacks on Linz and the site began. 

The number of laborers reached its 

highest point in 1944. At that time the 

percentage of foreign laborers (not 

counting prisoners of war and 

concentration camp prisoners) averaged 

two-thirds. In some particular sections of 

production the figure was more than 90 

percent. 

Somewhat more than 10 percent of the 

foreign workers at the Linz site were 

women. 



Laborers for Production, Eisenwerke 

Oberdonau, January 1941 to May 1942

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VÖEST 1945-1973 

May 5, 1945 – US troops reached Linz. The plants in the city were confiscated as German 

assets. 

In July, respectively, in October they were renamed „Vereinigte Österreichische Eisen- 

und Stahlwerke AG“ (United Austrian Iron and Steelworks AG) or VÖEST. In addition, they 

were separated from Alpine Montan AG. 

Vehement differences of opinion on the question of whether the plants should continue in 

existence. The decision to continue operating the plants in Linz also led to a significant 

alteration of the regional economic structure. 

Summer 1946 – The commanding American officer, General Mark W. Clark, turned 

VÖEST over to the Republic of Austria in trust. Ten days later VÖEST was nationalized on 

the basis of the First Nationalization Act. 

Iron and Steel Plan 1948 – The production of commercial sheet steel was concentrated in 

Linz. The same year saw the beginning of an expansion program with foreign capital made 

available through the Marshall Plan of the USA.

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The success story of VÖEST began with 

the managing of the post-war chaos and 

the reconstruction. 

An important step was the development of 

the LD process. After a long period of 

preliminary work in Austria and other 

countries, scientists in Linz made the 

breakthrough. The world‘s first LD 

steelmaking plant was constructed in Linz. 

From 1952 onward the LD process 

revolutionized steel production. 

Conclusion of the State Treaty in 1955. 

VÖEST took over management of the 

Krems steelworks. 



VÖEST 1945-1973 

LD Steel Making Plant 1

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VÖEST 1945-1973 

In 1957 VÖEST began constructing seagoing vessels in order to prove that plates of LD 

steel were fully suitable for shipbuilding and also to achieve a degree of stabilization in the 

shipping costs of VÖEST‘s substantial overseas acquisitions of raw materials. In total, four 

seagoing freighters were launched by 1967 (Linzertor, Wienertor, Kremsertor und 

Buntentor). 

In 1958 entry into the construction of industrial plants on an international level. In 

cooperation with the Fried. Krupp company in Essen, Germany, VÖEST began 

construction in Rourkela (India) of the first steelmaking plant outside of Austria. 

In 1959 the public management of VÖEST, which had been in effect since the end of the 

war, was replaced by customary organizational bodies (Management Board, Supervisory 

Board and Annual General Meeting).

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In the 1960s VÖEST became, by Austrian 

standards, a huge and multi-faceted 

conglomerate. 

In 1963 the reorganization of VÖEST 

began. 

Beginning with the mid-1960s a special 

investment program aimed at the 

modernization of finishing operations 

(among other things the first slab 

continuous caster at LD Steelmaking Plant 

2). 

In 1973 VÖEST, Linz, merged with the 

operations of Österreichisch-Alpine 

Montangesellschaft, Wien, to form 

VÖEST-ALPINE AG. 



VÖEST 1945-1973 

Assembly works on the steel structure of Europabrücke (1962)

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VOEST-ALPINE AG 1973-1987 

The effects of the merger coincided with 

the international economic crisis. From 

1975 the repercussions also reached 

Austria. 

Until 1976 various other companies were 

consolidated to form new companies and 

were integrated into VÖEST-ALPINE AG 

(among others the companies of the 

Edelstahlindustrie (Böhler, Schoeller- 

Bleckmann and Steirischen 

Gussstahlwerke), which were 

consolidated to form Vereinigte 

Edelstahlwerke AG (VEW). 

1977 – A new form of organization was 

instituted. The group was broken down 

into four business segments: steelworks, 

processing, finished products and 

industrial plant construction. 


Commissioning of Blast Furnace A (1977)

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In 1980 a comprehensive diversification strategy was initiated. 

Since 1981 VOEST-ALPINE Group had been operating at a big deficit. 

1985 – Crash of VOEST-ALPINE 

Constant exertion of political influence, the misuse of the company as a national labor 

pool, changes in international framework conditions, the erosion of individual companies, 

failures in diversification, in foreign projects and in finished products as well as enormous 

losses of the trading subsidiary Intertrading led to the crash 

which set in motion a far-reaching restructuring process for Austrian industry. The 

conglomerate was broken-up. 


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1986 – VOEST-ALPINE NEW: A new organizational structure was developed, a 

streamlining program was agreed upon and an investment program was authorized. 

The Stahlstiftung (Steel Foundation) was founded in 1987 to provide support for 

employees who had lost their jobs. 

1987 – The Group approved an investment package promoting environmental protection. 


1988-1995: VOEST-ALPINE STAHL AG up to the 

Beginning of Privatization 

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1988 – A fundamental reorganization of 

the ÖIAG Group led to the formation of six 

holding companies, one of them was 

VOEST-ALPINE STAHL AG. 

It encompassed six controlling companies: 

VOEST-ALPINE Stahl Linz GmbH, 

VOEST-ALPINE Stahl Donawitz GmbH, 

Böhler GmbH Kapfenberg, Böhler AG 

Düsseldorf, VOEST-ALPINE Stahlhandel 

AG and VOEST- ALPINE Rohstoffhandel 

GmbH. 



Coil Coating Plant (COLOFER)



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In 1989 the most important holding companies of ÖIAG, among them VOEST-ALPINE 

STAHL AG, were placed under Industrie- und Beteiligungsverwaltungs-GesmbH (IBVG), a 

wholly owned subsidiary of ÖIAG. In 1990 IBVG was converted into Austrian Industries 

AG (AI). 

1990 – Acquisition of the Swedish Uddeholm Group, which in the following year merged 

with the companies of the Böhler Group to form Böhler-Uddeholm. 

In 1993 AI was dissolved. Three groups were created from AI with the goal of privatization: 

VA Technologie AG, Böhler-Uddeholm AG and VOEST-ALPINE STAHL AG. 





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In order to optimize the portfolio, in 1994 

business segments that either lay outside 

core competences or possessed too little 

synergy potential for the group were 

divested (e.g., VOEST-ALPINE Stahl 

Judenburg GmbH). 

In 1995, one year earlier than originally 

planned, VOEST-ALPINE STAHL AG 

went public and got a new ownership 

structure. 



Dedusting system for Sinter Belt 5 (1993)

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1996-2001: Restructuring of the Group. From 

VOEST-ALPINE STAHL AG to voestalpine AG 

A number of acquisitions were made 

during these years (e.g., the British 

company METSEC plc., the Dutch 

Polynorm N.V., the German TSTG 

(Thyssen Schienen Technik GmbH). 

Up to 1998 the product portfolio of the 

Group was further enhanced through an 

extensive expansion program and the 

processing percentage was increased 

even further. 

In mid-1997 a facility to manufacture 

laser-welded blanks (sheet steel blanks 

for the automotive industry) began 

operation after a record construction time 

of only one year. 



Roller leveler and rail cooling bed (120 m) in Donawitz

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In 1997 VOEST-ALPINE SCHIENEN GmbH & Co KG in Donawitz started a remodeling 

and expansion program to ensure the continuation of ist technological leadership. 

In 1998 at VOEST-ALPINE STAHL LINZ GmbH the continuous annealing line in Cold 

Rolling mill 2 – a milestone in continuous annealing technology in Europe – started 

production, followed in 1999 by Secondary Dedusting 2 and in 2000 by a new vacuum 

system in LD Steelmaking Plant 3. 

In 2001 voestalpine Grobblech GmbH achieved an important success with the product 

launch of its innovative sour service plates for tubes. 

The Donawitz site received a modernization boost. In 2000 this included the conversion of 

the LD steel mill into a LD compact steelmaking plant incorporating state-of-the-art 

technology and in 2001, the decision to invest in the modernization and expansion of rail 

production. 

Beginning in 2001 the employee shareholding scheme was implemented on the group 

level. Employees at the Austrian sites held approximately 4 percent of the shares of their 

company. 



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2001 – Alteration of the corporate structure. Instead of the typical steel structure of flat 

products and long products a breakdown into the divisions of Steel, motion (from 2005 

onward Automotive), Railway Systems and Profilform was introduced. 

„More out of steel“ – Constant extension of the value chain. 

High-tech-company and market niche provider – Clear orientation towards processing, 

upgrading, manufacturing of components and provider of specific and complete solutions. 

At this time, the name of the Group was changed to voestalpine AG and pursued an 

umbrella brand strategy under the brand voestalpine. 



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In 2002 the 45.3 percent share of VAE 

held by Vossloh AG were acquired. With 

that and the acquisition of the remaining 

9.4 percent free-float shares in January 

2003 voestalpine Bahnsysteme GmbH 

became the sole owner of the world‘s 

leading manufacturer of turnouts. 

2002 – Beginning of the Investment 

program „Linz 2010“: Relining and 

expansion of Blast Furnace A. Associated 

facilities were aligned with the new 

capacity (among others, the sintering 

plant, the power plant, LD Steelmaking 

Plant 3, the rolling mills and the coil 

coating lines). This project was originally 

scheduled for the year 2010 and entered 

its last stage in 2007 – and therefore 

distinctly earlier than planned. 


Plastic Injection Tower at Blast Furnace A in Linz

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Follow-up-project „L 6“, in which „L“ stands for the Linz site and „6“ for the increase of the 

crude steel production of approximately 5.4 million tons to more than 6 million tons per 

year. 

In 2003 the employee shareholding scheme of voestalpine AG increased to around 10.5 

percent. 

In 2003 voestalpine was fully privatized and a convertible bond for the remaining 15% of 

government-owned shares was issued. 

The bond was converted on August 31, 2005, which meant that voestalpine was then fully 

in private ownership. 

The Group‘s international presence was further enhanced through expansion up to 2008. 

Among others Eastern Europe, India, China, Brasil, Great Britain. 


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2007/2008 - 100 percent acquisition of the 

BÖHLER-UDDEHOLM-Group and 

integration as the Special Steel Division. 

A unique economic success story so far 

with constant new all-time highs regarding 

turnover, results and workforce. 

R&D and Environment – According to EU 

statistics voestalpine has been the most 

research-intensive industrial company. 

Numerous environment and safety 

awards. 


BÖHLER-UDDEHOLM: Kapfenberg site, old works

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In fall 2008 the economic downswing due to the world-wide banking and financial crisis 

also reached voestalpine. The demand started spiraling downward. 

The swiftly implemented crisis management of the Group reacted comprehensively to the 

deterioriating situation and a cost-cutting and efficiency improvement program was 

implemented with the objective of achieving optimization across the entire group. 

The business year 2009/10 was characterized by the big economic crisis and was the 

toughest and most difficult in decades. 

However, during the first nine months of the business year 2010/11 voestalpine Group 

was again able to achieve a very significant growth in turnover and results compared to 

the previous year. 

The employees currently hold approximately 13.3% of voestalpine AG‘s shares. 

At the end of 2010 voestalpine Group employs approximately 40,000 staff throughout the 

world, thereof 53% at international locations.

History of the voestalpine group (1.37 MB)

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