VoestAlpine Stahl & BMW to develop new steel grades

VoestAlpine Stahl & BMW to develop new steel grades

The VoestAlpine Stahl Group, a major Austrian crude steel producer that specialises in the development, production and processing of high-quality flat and long steel products, celebrated the delivery of 1.5 millionth ton to BMW. The company supplies electrolytically galvanized sheets to BMW since 1985. The trade relations were initiated first with cold rolled sheet supply back in 1955. Voast-Alpine has been the source of hot dipped galvanized material since 1994 to BMW. Today, BMW Group spends a total of $775 million on production metals and 5% of this purchasing volume is coming from Austria where Voest Alpine is their largest supplier. BMW Group's total purchasing amounts to $2.3 billion. Almost 9% of the group's automotive product sales are directed to BMW and sales are planned to be increased by 50% in the coming year. The company officials believe this cooperation helps promoting of product quality. Both companies are co-jointly working on developing new grades of steel, higher strength light weight products which are seen as a must for automobile manufacturers. Voest-Alpine trades in domestic Austrian market as well as neighbouring European states, a European supplier of light and special sections electrical sheet. The company has a roughly 10% share of the European automotive industry market and is ranked third among the suppliers. In the white products area the company has a 20% market share both locally and in the European market. Company facilitates in flat steel production up to coated coil, including all Steel Service Center activities. By means of Steel Service Centers, steel trading and logistics services, the Voest-Alpine Stahl Division can offer its customers a complete range of products and services, from production, processing and finishing, to the provision of a complete logistics chain, on a one-stop shopping basis. VoestAlpine has recently decided to repurchase its shares that correspond to a 2.52% its nominal capital.