Voestalpine has opened a new plant in the Metal Forming Division in Shenyang, China, which will produce ultra-high strength body-in-white parts for premium automotive customers.
A total of around EUR25m (US$27.5m) has been invested to date constructing the plant, which will employ around 70 staff during the first phase, with further expansion planned.
The Voestalpine Group currently generates around 32% of its revenue (BY 2014/15) in the automotive industry and for several years has been expanding its capacity in the sector, also outside Europe.
As well as the additional plant in China, further significant investment is also currently being made in phase two and three of construction at the production site for ultra-high strength body-in-white parts in Cartersville, US, which opened last year.
“With the new international sites, particularly in the automotive sector, we are following our premium customers into growth markets,” said Voestalpine chairman, Wolfgang Eder.
“The technologies we have developed to produce ultra-high strength automotive components are in increasing demand worldwide.“
The Metal Forming Division achieved sales of EUR2.3bn during 2014/15 and an operating result (EBITDA) of EUR331m. The division employs around 10,500 staff members and carries out business with almost all European car manufacturers.
Within the Group, it constitutes the centre of competence for highly refined sections, tubes, and precision steel strip products as well as ready-to-install components made of pressed, stamped and roll-formed parts in steel and in aluminium, with a focus on the automotive industry.
In China, the Voestalpine Group most recently generated revenue of more than EUR300m at a total of 26 sites with more than 2,200 employees, including its joint ventures.