The coronavirus pandemic and its consequences are facing voestalpine with major economic challenges. As a result of massive reductions in capacity and current production shutdowns in the automotive, aerospace, mechanical engineering, and oil & natural gas industries, in just a few days demand in the key voestalpine customer segments has collapsed. In order meet the required level of flexibility over the next weeks and to secure jobs at the Group as far as possible during this difficult situation, currently short-time work is being registered in around 50 European Group companies (in Austria as well as in Germany, Belgium, and France).
The coronavirus and its direct consequences are having a severe impact on the global economy. Consequently, voestalpine will immediately fall back on the short-time work model in Austria, introduced by the Federal Government in response to the corona crisis and which enables a temporary reduction in normal working hours, for almost all the Group companies in Austria, and, depending upon the respective regulations, will take advantage of similar models being offered right across Europe. The actual extent of short-time work will become clear over the next weeks, and will be determined by the levels of capacity utilization in production. voestalpine will implement alternative measures as appropriate in countries where no such short-time work models are available. Several sites in countries including France, Italy, Peru, Brazil, and the USA have already been temporarily closed. The Management Board is using these measures to minimize the negative impact on employees and voestalpine as far as possible. From the current viewpoint, the impact on the results for the current business year 2019/2020 cannot be sufficiently determined.