Voestalpine to withdraw from rail business by end of 2012

Austria-based steel producer Voestalpine has announced that it will shut down its rail mill TSTG Schienentechnik (TSTG) in Duisburg, Germany at the end of 2012, due to inability to operate cost-effectively.
 
TSTG has been struggling with declining capacity utilization levels over the past years, resulting in significant losses. Excess capacity in the market made it impossible for TSTG to produce rails competitively, also leading to lower price levels. The company has decided to withdraw from the rail business altogether.
 
Voestalpine stated that all existing customer orders will be fulfilled as contracted, adding that they are exploring all possible opportunities to transfer employees to other group companies.