Austrian steelmaker Voestalpine has announced that it is currently in negotiations to sell 80 percent of its shares in Voestalpine Texas to stabilize the business model of its direct reduction plant in Corpus Christi, Texas. The company only needs part of the hot briquetted iron (HBI) production capacities at the plant.
Part of Voestalpine’s further participation is to be an agreement on the long-term securing of the HBI volume required in the future for the first decarbonization step at the sites in Linz and Donawitz. A successful conclusion of the sales project may lead to an accounting profit, as well as a significant reduction in Voestalpine’s net financial debt.
Meanwhile, the European Council has decided to impose a fifth package of sanctions on Russia, prohibiting coal imports from Russia into the EU as from August 2022, as SteelOrbis previously reported. As a result, Voestalpine may consider replacing Russian coal, diverting supply to existing or new suppliers in order not to face a coal supply shortage.
