The Voestalpine Group, Austria, has opened a direct iron reduction plant in Corpus Christi, Texas, at a cost of $740 million, the largest investment ever made in the United States by an Austrian company. Each year it will produce two million metric tons of high-quality HBI (Hot Briquetted Iron, or sponge iron), a sophisticated pre-material used in steel production. The plant is already regarded as an environmental benchmark and is an important first step on Voestalpine’s path of reducing CO2 emissions in steel production.
Voestalpine is continuing to systematically drive forward its expansion in the NAFTA region. In accordance with Group Strategy 2020, it is intended to increase revenue generated in this region from its current level of $1.4 billion to $3.4 billion by the business year 2020/21.
“Today’s opening of the direct reduction plant in Corpus Christi is an important step for the future and into the future of our company,” says Wolfgang Eder, Chairman of the Management Board. “The new plant will not only secure the Austrian Voestalpine sites by supplying premium pre-materials for steel production, but also it will contribute significantly to further strengthening our position in the NAFTA region. Furthermore, over the long term it offers us new technological options for decarbonizing steel production.”
From the business year 2017/18 onwards, Voestalpine Texas LLC, a company in the Steel Division of the Voestalpine Group, will use natural gas to produce two million metric tons of premium HBI (Hot Briquetted Iron-sponge iron) each year, 40% of which (800,000 metric tons) will cover internal requirements. The remaining 60% of the production volume goes to external partners, with the corresponding offtake agreements already having ensured full capacity utilization for the next four years.
