voestalpine extends its market presence in the USA through acquisition

2015-11-04 |

The voestalpine Group is once again driving forward its activities in North America. voestalpine Precision Strip GmbH, a company in the Metal Forming Division, is acquiring the Wickeder Steel Company, based in Pleasant Prairie, Wisconsin (US). The enterprise has a staff of 50 employees and generated revenue of around EUR 13 million in 2014. This acquisition strengthens the voestalpine product portfolio of hardened special steel strip for sophisticated applications such as band saw blades for the food industry.

By the beginning of November 2015, voestalpine Precision Strip GmbH, based in Böhlerwerk, Lower Austria, will have acquired 100% of the US Wickeder Steel Company, now renamed voestalpine Precision Strip WI, Inc., in Wisconsin, from its former owner Wickeder Westfalenstahl GmbH. The Wickeder Steel Company is specialized in heat treating and hardening carbon steels for the manufacture of saws, hand tools, and flapper valves, and is one of the top five companies in this sector in the USA.

The Wickeder Steel Company product and technology portfolio is a perfect match for our US growth strategy and our core competencies. After opening the new automotive components plant in Shenyang, China, last week, this is a further step in our internationalization strategy.

Peter Schwab, Member of the Management Board of voestalpine AG and Head of the Metal Forming Division

The Wickeder Steel Company and the voestalpine Precision Strip Group, with its production sites in Sweden and Austria, can both look back on a long tradition of heat treating and hardening special steel strip to meet exacting customer requirements. As well as continuing to run existing production facilities, a strategic goal is to further strengthen the local site in Wisconsin. The acquisition is also intended to boost and complement the position of the voestalpine Precision Strip Group in a series of product segments, such as saws for the food industry.

Metal Forming Division

The Metal Forming Division of the voestalpine AG achieved a total sales volume during 2014/15 of 2.3 billion and an operating result (EBITDA) of 331 million euros. The division employs roughly 10,500 staff members and does business with almost all European car manufacturers. Within the Group, it constitutes the center 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 aluminum, with a focus on the automotive industry. Its combination of material expertise and processing competence is unparalleled throughout the industry, and its global presence makes the division the preferred partner to customers who are looking for innovativeness and quality.

The voestalpine Group

The voestalpine Group is a steel-based technology and capital goods group that operates worldwide. With around 500 Group companies and locations in more than 50 countries and on all five continents, the Group has been listed on the Vienna Stock Exchange since 1995. With its top-quality products, the Group is one of the leading partners to the automotive and consumer goods industries in Europe and to the oil and gas industries worldwide. The voestalpine Group is also the world market leader in turnout technology, special rails, tool steel, and special sections. In the business year 2014/15, the voestalpine Group reported revenue of EUR 11.2 billion and an operating result (EBITDA) of EUR 1.5 billion; it had around 47,500 employees worldwide.