Voest Alpine steel mill plans threaten domestic industry

Austrian steel concern Voest Alpine Stahl is planning to start production of hot-rolled sheet metal in Poland, a potential threat to the domestic sector. Unofficial sources claim that Voest Alpine is simply awaiting the decision of the Economy Ministry before starting its $720 million investment. The company claims it will produce 1.2 million tons of sheet metal after the first phase of the project is completed. "The whole industry is going to start mergers. This puts Voest in a losing situation vis a vis European markets, so its only chance is to find new markets," said an anonymous source. If the investment succeeds, it will be more difficult to find investors for domestic steel mills. Voest Alpine has already tried to participate in the privatization of the Poland steel sector, but withdrew, declaring a loss of interest. Voest Alpine would like to build the plant near Szczecin or Gdansk. Industry representatives claim that if the Austrians do not receive the go-ahead for production in Poland, they will locate in Latvia or Lithuania, and would nevertheless remain fierce competition. (Puls Biznesu, pp.1,4)