For the 2012-13 business year just begun, Austrian steelmaker voestalpine is increasing research and development (R&D) expenditure to a record level of €132 million, up €10 million compared to the business year ended on March 31. The company's CEO Wolfgang Eder stated that over the past decade expenditure in this key area has increased by 11 percent per annum on average.
Mr. Eder stated that in his opinion voestalpine's steel business will pick up in the first half of the 2012/2013 business year. "I'm confident enough to say that the first half of the new business year will be markedly better than the second half of 2011-12," Eder told a gathering in Vienna.
Voestalpine's steel business, which represents more than a third of group sales, should benefit from price hikes as business conditions improve, Eder said.
The Linz, Austria-based group concludes around a quarter of its sales in emerging markets outside of Europe, and this share could double to 45-50 percent over the next 10 years, Eder said. The producer of special steels used in tools, turbines and cars also expects to make progress in the US market over the next two years, while growth rates in Europe will be limited.