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Voestalpine establishes Trump-monitoring taskforce

Steel News - Published on Fri, 17 Feb 2017

Image Source: Reuters
Reuters reported that Austrian steelmaker Voestalpine has set up a "Taskforce USA" to monitor the effects of President Donald Trump's decisions on its business, which includes a new USD 1 billion sponge-iron plant in Texas.

The team consists of eight members representing the company's four divisions, equally split between Austria and the United States, and includes legal, treasury and international trade experts.

CEO Mr Wolfgang Eder said “Developments for the next six, 12 or 24 months are very hard to estimate. The team members, who are still doing their regular jobs, hold phone conferences and give concise briefings to management.”

Mr Eder said about a third of Voestalpine's production in Mexico, much of which is for international carmakers' plants there, is destined for the United States.

The plant in Corpus Christi, Texas, is the largest investment in the United States by an Austrian company. Voestalpine picked the United States mainly for its access to cheap energy.

Voestalpine generated annual revenue of about 1.2 billion euros ($1.3 billion) in the NAFTA free trade area of the United States, Mexico and Canada in its 2015/16 business year and aims to reach 3 billion euros by 2020. North America currently accounts for around 11 percent of total sales.

Trump has said he wants to renegotiate NAFTA and has proposed a border tax on imports from Mexico, aiming to attract manufacturing jobs from there to the United States.

Source :

Posted By : Rabi Wangkhem on Fri, 17 Feb 2017
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