Ruqayyah Snyder
The Austrian steel industry has a long history, with smelting in the Leoben region, an industrial suburb of Vienna, dating back to the 1400s. The industrialisation of the Habsburg Empire, which included Austria, began in the 1830s, later than in Western Europe. The construction of the railway system played a significant role in this industrialisation, with the development of the first mountain railway in Europe, the Semmeringbahn, forming one section of the Southern Line. During World War II, the Nazis gained control of Austrian iron reserves and state-owned Reichswerke Hermann Göring acquired a majority share in Alpine Montan, a significant player in the Austrian steel industry. In the post-war years, the Austrian steel industry experienced a surge in research and development, with the development of 30-ton oxygen converters by VÖEST and ÖAMG in the 1950s, enhancing Austria's competitiveness in steel production.
| Characteristics | Values |
|---|---|
| Year the steel industry began in Austria | 1946 |
| First steel company in Austria | VÖEST (Vereinigte Österreichische Eisen und Stahlwerke) |
| Location of first steel company | Upper Austria |
| Year VÖEST built its first 30-ton oxygen converters | 1949 |
| Year VÖEST's first 30-ton oxygen converters were put into operation | 1952 and 1953 |
| Year VÖEST merged with Österreichisch-Alpine Montangesellschaft | 1970s |
| Year Austria's industries were nationalized | 1988 |
| Year the steel mill in the village of Leoben was built | 1930s |
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What You'll Learn
Steel research in Austria
Voestalpine's research and development efforts have led to significant improvements in steel products across various sectors, including automotive, railway, aerospace, and energy. The company aims to reduce its emissions by up to 30% starting in 2027 by transitioning from coal-based blast furnaces to electric arc furnace technology powered by green electricity. This transition is part of the company's Greentec Steel initiative, which represents Austria's largest climate protection programme, accounting for almost 5% of the country's annual CO2 emissions reduction.
To support Voestalpine's sustainability goals, the European Investment Bank (EIB) has provided a €300 million loan for their research and development programme. This funding will be utilised over a four-year period to optimise manufacturing processes, increase energy and raw material efficiency, and extend product life. The EIB's support extends beyond research, as they have also signed deals for new green steel plants in Sweden and Belgium, contributing to the development of innovative and sustainable steel production across Europe.
Voestalpine's commitment to research and development has positioned them as a global leader in the steel industry, enabling them to compete with non-European competitors like China. By investing in new products and processes, Voestalpine secures its position as a key player in demanding product segments, delivering high-end, resource-saving products to the market. The company's efforts align with Austria's and Europe's broader sustainability goals, demonstrating the crucial role of research in driving the steel industry towards a greener future.
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Austrian steel companies
The Austrian steel industry has a long history, with the Alpine Montangesellschaft (Alpine Mining Society) being founded in Vienna in 1881 as a means of consolidating Austrian iron and steel assets. The company was chaired by Karl Wittgenstein and, at its peak in 1912, owned four coal mines, two iron ore mines, and six metallurgical plants.
Over the years, the company's assets changed hands several times, with the Nazi leadership taking control of the company in 1937 and the Reichswerke acquiring a majority share in 1939, changing the name to Alpine Montan AG Hermann Göring. In 1946, following the end of World War II, the company was nationalized and became known as VÖEST (Vereinigte Österreichische Eisen und Stahlwerke).
VÖEST played a crucial role in the development of the LD (Linz-Donawitz) process, which reduced processing time and capital costs per ton of steel, giving Austrian steel a competitive advantage. However, mismanagement of licensing technology led to a loss of competitive edge by the end of the 1950s.
Today, one of the most prominent Austrian steel companies is Voestalpine AG, a steel-based technology and capital goods group based in Linz, Austria. Voestalpine is active in various industries, including steel, automotive, railway systems, and tool steel. It is one of the few profitable steel companies in Europe and is responsible for 10% of all Austrian CO2 emissions. The company has several important plants in Austria, including in Leoben, Styria, and Krems in Lower Austria.
According to recent statistics, the Austrian iron and steel industry employed 15,601 people in 2023, with a production volume of over 138,000 tons. The metal-working technology industry in Austria also has a significant export percentage of 21% in overall Austrian foreign trade.
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Steel production in Austria during WWII
Steel production in Austria has a long history, dating back to the early 20th century when the Austro-Hungarian Empire was the second-largest producer of steel among the Axis powers in Europe. During World War II, Austria's steel industry became crucial for the war effort, and here is how it unfolded:
The Build-Up to WWII
Before World War II, Germany was the largest producer of steel among Europe's Axis powers. In the 1930s, Germany's trade with Eastern European countries, including Austria, significantly impacted their economic structure. However, Germany's military production relied on resources beyond its control, putting it at a disadvantage compared to the Allies.
Steel Production During WWII
As the war progressed, Austria became a critical contributor to steel production for the Axis powers. Between 1943 and 1944, when the Ruhr region in Germany faced heavy bombing, Adolf Hitler demanded a sharp increase in steel production in Austria. Hermann Göring, a high-ranking Nazi official, launched an aggressive and costly expansion campaign to boost Austrian steel output. Unfortunately for the Nazi regime, the Allied bombers also targeted Linz, a major Austrian industrial centre, causing significant damage.
Post-WWII Developments
After the war, in 1945, Allied-occupied Austria was divided into four occupation zones, with the heavy industries of the former Reichswerke concentrated in the American (Linz) and British (Erzberg) zones. The reconstruction of Linz was debated, with some, like the local government of Styria and the British, objecting due to its distance from coal and ore reserves and its massive scale.
In the post-war era, Austria's steel industry underwent significant changes. VÖEST, an Austrian steel company, became a major recipient of the Marshall Plan aid from the United States, receiving financial support and technical expertise. However, there were controversies and delays in the Marshall Plan financing due to political battles within Austria and opposition from the Pentagon, which feared VÖEST products could end up in the Soviet bloc. Eventually, the issues were resolved, and VÖEST's hot and cold strip mills became operational in 1953.
Today, Austria's steel industry continues to evolve, with companies like voestalpine AG, based in Linz, leading the way in steel-based technology and capital goods. voestalpine has plants in various locations in Austria, including Leoben, Krems, and Liezen, and is responsible for a significant portion of the country's CO2 emissions.
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Austrian steel exports
The metal-working technology industry in Austria has a significant impact on the country's foreign trade, with an export percentage of 21%. This industry encompasses a vast network of 1,200 companies, contributing to the employment of 15,601 individuals in the iron and steel sector as of 2023. These companies are involved in the production and export of various metal products, including iron and steel casting, which saw a production volume of over 138,000 tons in the same year.
Austria's steel industry is a significant contributor to the country's economy, with its products reaching international markets. The industry's export focus is evident in the high export percentage, indicating that a substantial portion of its production is destined for foreign countries. This contributes to Austria's overall trade balance and generates valuable foreign exchange.
The 1,200 companies operating in the metal-working technology industry are key players in this export success. They range from large, established corporations to smaller, specialised firms, each contributing to the industry's dynamism and adaptability. These companies cater to diverse market demands, producing a wide array of metal products, including steel, for various applications.
The high export percentage suggests that Austrian steel products are in demand internationally. This could be attributed to the industry's reputation for quality and expertise in metalworking technology. The combination of skilled labour, advanced technology, and a strong industry foundation has likely contributed to the competitiveness of Austrian steel in the global market.
Austria's steel exports play a crucial role in the country's economic growth and development. By leveraging its steel industry, Austria gains a foothold in the international market, fostering trade relationships and promoting its domestic capabilities. The revenue generated from steel exports contributes to the country's GDP, creating a positive ripple effect on the economy as a whole.
In summary, Austrian steel exports are a significant aspect of the country's metal-working technology industry, driving foreign trade and economic prosperity. With a substantial export percentage, a dedicated workforce, and a robust network of companies, Austria has established itself as a notable player in the global steel market. The industry's focus on exports and its ability to meet international demands contribute to its success, solidifying Austria's position as a trusted supplier of steel and metal products worldwide.
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Austrian steel industry employment
The Austrian steel industry has undergone significant changes in recent years, with increasing automation leading to a decline in employment. While steel remains a crucial material, the industry's role as a major employer is diminishing.
The history of the Austrian steel industry can be traced back to the 1400s, when smelting iron became established in the Leoben region near Vienna. The area, known for its industrial heritage, once boasted plants that employed thousands of workers. However, the steel industry in Austria, much like the coal industry, has been undergoing rapid changes over the last decade.
In 2017, Bloomberg reported on the highly automated nature of the steel industry in Austria, highlighting a plant in Leoben that required only 14 employees to produce 500,000 tons of steel wire annually. This shift towards automation has resulted in a significant decrease in the industry's capacity to provide employment. The plants in Donawitz, for instance, which once employed around 1,000 people, now have a workforce of fewer than 20.
Voestalpine, a prominent Austrian steel company, exemplifies the changing nature of the industry. As of 2017, Voestalpine was one of the few profitable steel companies in Europe, and 45% of its workforce was based in Austria. The company operates key plants in Leoben, Styria, and Krems in Lower Austria, contributing to Austria's metalworking technology industry, which comprised 1,200 companies in 2023.
While the steel industry in Austria may have provided a significant number of jobs in the past, it is unlikely to be a major source of employment in the future. The industry has experienced a radical shift, and the traditional labour-intensive methods have given way to highly automated processes. As a result, the Austrian steel industry is expected to contribute less to job creation, despite the ongoing importance of steel in various sectors.
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Frequently asked questions
The Austrian steel industry has its roots in the 1400s when the village of Leoben, an industrial suburb of Vienna, began smelting iron.
During World War II, the Nazis controlled Austrian iron reserves at Erzberg. The state-owned Reichswerke Hermann Göring acquired a majority stake in Alpine Montan, a significant Austrian steel company, and renamed it Alpine Montan AG Hermann Göring. The Reichswerke controlled around half of Austria's heavy industries, with steel sales peaking in 1944.
After the war, Allied-occupied Austria was divided into four occupation zones, with the heavy industries of the former Reichswerke concentrated in the American and British zones. The future of steel production in Linz, a major industrial centre, was debated, and the state provided generous subsidies for the completion of a steel mill.
In the post-war years, the Austrian steel industry underwent significant changes. VÖEST and ÖAMG, two major Austrian steel companies, pioneered the use of 30-ton oxygen converters in the 1950s, which reduced processing time and costs. However, they failed to license their technology effectively, leading to a loss of competitive advantage by the end of the decade. The industry also faced challenges in the late 20th century, with a shift towards automation and a decline in employment.
