60 Years of the Linz-Donawitz Process: Legacy and Challenge

• Record EUR 132 million budget for voestalpine R&D

Despite economic crises and cost reduction programs, over the past decade expenditure in this key area has increased by 11% p.a. on average. 60 years have passed since the Linz-Donawitz (basic oxygen) process was developed, and the group intends to continue to extend its technological advantage.

The record budget of EUR 132 million once again represents a EUR 10 million increase on the year before. This clear commitment reflects an ongoing progressive R&D strategy. "Specialization, technology and quality leadership have been and continue to create a solid basis for our future. Innovation, research and development therefore have top priority within the group. Every euro spent in this area is well spent," comments voestalpine-CEO Wolfgang Eder. "It is only a matter of time before the high R&D investment makes a significant contribution to strengthening the group's leading market position in high-quality and margin-enhancing segments. The Linz-Donawitz process, a once-in-a-century invention, was the original basis for voestalpine's leading position in metallurgy and ensured that the group continued to be oriented to quality and technology. It is both a legacy and a challenge for subsequent generations."

Today, the voestalpine Group is a global high-tech player with international technology and quality leadership in demanding product segments. Maintaining this leadership position requires intensive ongoing innovation. Accordingly, voestalpine is Austria's most research-intensive company with 670 employees in R&D alone (not including IT and quality assurance).

voestalpine also plays an important role as an employer of well-qualified university graduates and in providing ongoing supervision of over 150 university theses and dissertations.

60 years since it was developed in Linz, the Linz-Donawitz process continues to be of enormous significance. In 2011 the world produced 1.5 billion tons of steel; around 1 billion tons of this were produced using technologies based on the Linz-Donawitz process.

In the years ahead the group will continue to maintain its clear strategic orientation to cutting-edge technology, superior quality products and an added value chain longer and more comprehensive than those of competitors. "The group will continue to push ahead in expanding R&D capacity, and in future will position itself even more clearly as a global driving force in technology, particularly in the areas of mobility and energy," says Eder.