Austrian steelmaker voestalpine, has announced its decision to sell its German subsidiary, Buderus Edelstahl, to an investment firm, Mutares. Buderus Edelstahl is considered the High Performance Metals Division of voestalpine that is concentrating its product portfolio on the technologically demanding high-performance materials segments. This decision was made to support the future growth of Buderus Edelstahl.
The CEO of voestalphine AG Herbert Eibensteiner said in a statement released by the company, “We searched intensively for investors, spoke with many companies, and explored a variety of options. With Mutares, we have found a prestigious investor with vast experience in managing companies during periods of transformation to take over Buderus Edelstahl. The sale is aimed at optimizing the High Performance Metals Division product portfolio, thereby strengthening its position in the global marketplace over the long term.”
Johannes Laumann, CIO of Mutares, commented, “With the acquisition of Buderus Edelstahl, we are further strengthening our Engineering & Technology segment in the area of steel components and securing our own steel base. Buderus Edelstahl will also benefit from our existing product range and broad customer structure in the future, reducing its dependence on individual market risks and positioning itself more broadly for future growth within the Mutares Group.
voestalpine, over the years, has worked on building a strong, creating solid foundation with restructuring and investment for the future success of Buderus Edelstahl. The company has almost 300 years of history and has been a part of voestalpine AG since 2007. They are also specialized in steels primarily used in vehicle manufacturing, plant and mechanical engineering, and tool and mold construction. The company generated a revenue of EUR 362 million and has a current workforce of 1,130 employees (FTE) between 2023 and 2024.
On the other hand, Mutares said it would negotiate a social plan with employees if it becomes necessary to reduce the workforce without providing further details about any potential job cuts.
Reuters reported that Voestalpine board member Reinhard Noebauer says, “We are confident that, despite the current economic climate, the overwhelming majority of employees will have a long-term future at this location.”
Altogether, both companies are expecting to benefit from this investment with a positive outlook for Mutares, investing in the steel industry, and Buderus Edelstahl, finding a position in the global market.