Voestalpine Secures Landmark Contract for Automated Logistics Hub

Voestalpine AT0000937503

The Metal Forming Division of Austrian steel and technology group Voestalpine has landed the largest single project in its corporate history. This record order for automated high-bay warehouse systems arrives as the company navigates a challenging European steel landscape, highlighting a strategic shift toward specialized, high-value engineering solutions.

Voestalpine confirmed on Thursday that it has been awarded a major contract to construct a new logistics center in Istanbul, Turkey, for a leading logistics service provider. The facility will be dedicated to handling sporting goods.

Key Project Specifications:
* Contract Value: Approximately €41 million
* Dimensions: The structure will stand nearly 40 meters high, stretching 222 meters in length and 86 meters in width.
* Technology: Designed as a hybrid high-performance center, it will combine a conventional high-bay warehouse with an automated small-parts storage system (Miniload).

In company communications, CEO Herbert Eibensteiner emphasized that technological expertise was the decisive factor in winning the bid. The project is slated for completion by April 2027.

This Turkish contract follows other recent international successes for the division, including the recent completion of two 45-meter-high warehouses for retailer JYSK in the Netherlands and the ongoing construction of a fully automated pallet racking system in the United Kingdom.

Strategic Importance Beyond Core Steel

While a €41 million order appears modest against Voestalpine's total group revenue of €15.7 billion (FY 2024/25), it carries significant weight for the Metal Forming Division.

The division's recent financial performance provides context:
* Revenue: €3.1 billion
* EBITDA: €169.3 million

This project underscores the division's evolution into a provider of complex infrastructure solutions, moving beyond traditional bulk steel operations. It enhances the division's visibility in the project business with revenue secured through 2027.

The timing is notable. The European steel sector faces pressure from the Carbon Border Adjustment Mechanism (CBAM) and exhausted import quotas. While competitors like Thyssenkrupp negotiate job cuts and divestments, Voestalpine is demonstrating operational stability through new project wins.

Furthermore, a recent market study identifies Voestalpine as a key player in the global electrical steel market. Analysts project this segment could grow to nearly $70 billion by 2032, positioning the company favorably in future-oriented fields like electromobility and energy applications, in addition to logistics infrastructure.

Share Performance and Project Outlook

Voestalpine shares have advanced 4.82% since the start of 2026. On Thursday, the stock closed at €39.60 in Vienna, posting a slight daily and weekly decline of approximately 0.75%. From a chart perspective, the €39.00 to €39.50 range is currently acting as a consolidation zone following previous gains.

The new Turkish order, coupled with the ongoing expansion of the company's site in Kentucky, USA, strengthens the Metal Forming Division's medium-term revenue base. The crucial factor for earnings contribution will be the margin development of these large-scale projects as they progress toward their planned 2027 completion, given that the revenue stream over the long timeline is already clearly defined.