Voestalpine AG Announces Strategic Divestiture and Business Reorganization in Germany with Anticipated One-off Write-downs

Voestalpine AG has made a significant announcement regarding its strategic decisions aimed at optimizing its operational efficiency amidst changing economic scenarios. The company is planning to sell Buderus Edelstahl and reorganize its Automotive Components business in Germany, which will lead to one-off write-downs totaling approximately EUR 410 million. This decision comes as part of Voestalpine’s strategy to concentrate on high-quality material segments and expand in lucrative global markets.

The divestiture of Buderus Edelstahl, positioned within the High Performance Metals Division, marks a shift toward focusing on high-tech special materials, moving away from standard grade tool and engineering steel. The process is expected to incur negative one-off effects on earnings of about EUR 340 million, impacting both EBIT and EBITDA numbers.

Furthermore, in the Metal Forming Division, Voestalpine is adjusting its Automotive Components segment in Germany. This strategic realignment involves a consolidation of its production network and is projected to result in impairment losses of around EUR 70 million. These changes underscore the company’s commitment to adapting to the structural challenges within the German automotive supply industry.

As a result of these measures, Voestalpine has revised its EBITDA expectations for the Business Year 2023/24 from approximately EUR 1.7 billion down to EUR 1.6 billion. These adjustments are seen as bolstering the group’s future earnings potential, particularly within a challenging economic and regulatory landscape.

Voestalpine's approach towards structural optimization and portfolio adjustment is reflective of its broader strategy to focus on high-quality materials and expand its downstream business globally. This includes significant advancements in areas like automated warehouse technology and strategic investments in the railway infrastructure segment.