Voestalpine's greentec steel program is moving ahead with a 1.5 billion euro electric arc furnace at Donawitz, targeting 850,000 tonnes of CO2 reduced steel by 2027 and 1.5 million tonnes by 2030. The company aims to cut overall emissions by 30% by 2029. The EU's Carbon Border Adjustment Mechanism and reduced steel import quotas give low emission producers like Voestalpine a pricing edge. But the company warns that without ETS reforms, steel production costs in the bloc could rise by roughly 50% by the early 2030s. On the financial side, Voestalpine proposed a 75 cent dividend per share, up 25% from last year, backed by doubled net profit of 424 million euros. US tariffs on steel and weak European auto demand remain headwinds. The stock trades near 44.50 euros, about 9% below its 52 week high. The central risk for investors is whether EU policymakers deliver on ETS cost support while the company spends heavily on its green steel transition.
