Austrian steel producer Voestalpine has suspended production and distribution of tubes for a week at the Voestalpine Rotec GmbH plant located in Krieglach in southeastern Austria. The interruption, which will last up to and including Sunday, October 13, was discussed by the company management last August. There have been no layoffs in Krieglach, though about a third of the nearly 380 employees have been put on "forced leave".
Voestalpine cited the difficult global economic situation as the reason behind its decision. Operations at Krieglach should resume on Monday, October 14, though in the coming weeks the company could take new measures depending on the market situation.
At the Krieglach plant, up to 35,000 metric tons of precision steel tubes are produced per year. Customers mainly belong to the automotive sector. Furthermore, highly complex production facilities have been built and put into operation at the company's "Technology Center".
Voestalpine Rotec GmbH achieved sales of approximately €94 million in the financial year 2018-19 (ended March 31). Its pre-tax profit for the year was €7.65 million.