Chief Executive Officer (Chairman of the Management Board), voestalpine AG
voestalpine talk with CEO Herbert Eibensteiner
On July 3, 2019, Herbert Eibensteiner officially took over the function of the Chairman of the Management Board of voestalpine AG ...
About Herbert Eibensteiner
Herbert Eibensteiner, CEO of voestalpine, spoke at the 2024 Industriekongress about the geopolitical challenges facing European industry. He stated that European regulation has prioritized the Green Deal over industrial policy and competitiveness, and argued that the European Central Bank’s interest rate measures have been effective in slowing the economy. He also noted that the war in Ukraine and instability in the Middle East have disrupted energy supplies and shipping routes, increasing costs and delivery times for European companies. In earlier appearances, Eibensteiner discussed the company’s strategy of adapting to external pressures through efficiency programs and investment in innovation. He described voestalpine’s focus on digitalization, artificial intelligence, and electric mobility as growth areas, and emphasized the importance of flexibility and speed in responding to market changes. During the COVID-19 pandemic in 2020, he reported that the company had taken impairment losses and provisions of 480 million euros, leading to a negative EBIT, and forecast an EBITDA between 600 million and 1 billion euros.
Transcript (39 segments)
I
Interviewer0:12
Welcome to the voestalpine talk. Today we have a very special guest, the new CEO, Dipl.-Ing. Herbert Eibensteiner. Welcome, Mr. Eibensteiner. You are a sporty person, and as a sportsman, one likes to ask at the beginning of an interview, for example, how you feel. What predominates: nervousness or anticipation for what is to come? I would also like to ask you this question. After all, you are at the beginning of a great, challenging activity in the international economic crisis. Maybe we should stick with sports.
H
Herbert Eibensteiner0:49
Wolfgang Eder and I had a good handover, and everything is perfectly prepared. I admit, I am looking forward to getting started.
I
Interviewer1:02
What fascinates you about voestalpine AG?
H
Herbert Eibensteiner1:04
voestalpine has grown incredibly internationally in recent years and has developed from a steel company towards a technology group. Personally, I am fascinated by this successful path: how we have driven innovations, how we have convinced customers to go this way with us. That is what makes this group so interesting.
I
Interviewer1:37
Is there actually something like a voestalpine spirit?
H
Herbert Eibensteiner1:41
Yes, I believe there is a voestalpine spirit. It is this will to succeed. We don't just want to convince our customers of our products, we want to surprise them.
I
Interviewer1:55
In past interviews, you have repeatedly spoken of a winner mentality as a central strength of the voestalpine Group. What exactly do you mean by that?
H
Herbert Eibensteiner2:03
Winner mentality means having this joy in success. We are in international competition, and you want to win against competitors. I believe that means for us to bring the best innovations, have the most efficient processes, be solution-oriented with customers, and quickly adapt to new challenges. The employees are well-trained, motivated, and move in the right direction.
I
Interviewer2:38
The tasks of a CEO of such a large, internationally positioned group like voestalpine AG are naturally diverse. If you had to decide, what would you say is the most important task you will dedicate yourself to?
H
Herbert Eibensteiner2:55
Yes, the most important task is always to have success. It is essential that we further develop the group to increase its value, that we continue on this path towards technology, that we strengthen the technology-strong sectors, and develop them. Those would be the essential things.
I
Interviewer3:18
Now, you are not a stranger in voestalpine AG, but still, at this point where you are at the top, there is naturally curiosity among many employees about how you will approach things.
H
Herbert Eibensteiner3:32
I understand that employees are curious about what the new person will do. But I already know many employees; I have worked in two divisions. I believe the essential thing is that I am consistent, clear, and fair. What characterizes me is, I think, the joy of being able to move things in the right direction. And I believe that is a decision-making quality that I also wish for from the employees.
I
Interviewer4:09
What is it that you expect from the employees? Which qualities?
H
Herbert Eibensteiner4:11
The thirst for knowledge and also the joy of top performance is very important in order to drive forward exactly those innovations that make us successful in the market.
I
Interviewer4:31
In an earlier interview with you, I found a quote that stuck with me. You said, 'The fast will win, not the big.' Now I understand what is meant by that, but on the other hand, one could see a contradiction. voestalpine AG is big, yes, but I believe it's about adaptability.
H
Herbert Eibensteiner4:51
I think you are right. Many large corporations have difficulties adapting to new circumstances. With us, it is important, and this is also due to the decentralization that we actually live organizationally, it is very important to adapt quickly to new circumstances. I believe that is a great strength of ours.
I
Interviewer5:19
About four-fifths of the employees or the voestalpine workforce are men. That naturally has a lot to do with the industry itself. How do you want to increasingly attract women to the group and promote those who are already there?
H
Herbert Eibensteiner5:33
We have taken and compiled a bundle of measures and now see that more and more women are working in the plants, out in production. But we also see that the number of women in leadership positions, in management, top management, and executive boards is actually increasing. It is very, very important that we continue to accompany and promote this.
I
Interviewer6:05
voestalpine AG has successfully mastered the transformation from a pure steel group to a high-tech technology company in the past. This path is to be continued, you have made that clear. What role do digitalization, artificial intelligence, and so on play in this context when it comes to bringing the company into the future?
H
Herbert Eibensteiner6:26
The fact is that through digitalization we can improve our processes and services extremely, make them efficient. AI planning or artificial intelligence are topics we deal with daily. This also creates new interesting jobs for new or existing employees. I think this path must clearly be continued, and it is our daily business. We view this path from the perspective of opportunities.
I
Interviewer7:11
The fact is that the number of employees at voestalpine has not decreased anywhere. Now it is the case that in the automotive industry and the supplier industry, the course is set for electromobility. Can voestalpine AG benefit from this, and if so, how?
H
Herbert Eibensteiner7:29
We are hardly represented in the current powertrain. That means a new opportunity for us to actually develop further with new products, for example the electric motor or the battery case. For us, electromobility is clearly a growth segment. It is an entry into Formula E, which should also be seen from this perspective. Yes, I believe Formula E shows the technological peak of what is actually possible with electromobility, and we orient ourselves by that. We want to show that. There we meet not only our automotive customers, we also want to show people what we are working on.
I
Interviewer8:17
We live in turbulent times. But let's move on to the challenges that lie ahead. Many changes are coming. Which changes need to be managed?
H
Herbert Eibensteiner8:28
First of all, I think it will be important to be able to increase the value of the group and further develop it in these times and in the times to come. We want to specifically let the technology-strong sectors grow stronger. We have to create the framework conditions ourselves, remain successful, create financial leeway. And there are also current challenges, such as the trade disputes, which are very difficult for the whole world.
I
Interviewer9:11
What answers do we find there?
H
Herbert Eibensteiner9:14
We also have to continue to adapt to changes in the mobility sector. We have already talked about e-mobility today, but there are also challenges in the aircraft and railway sectors. And clearly, the technologies for CO2-reduced steel production also need to be developed. There are also great unknowns.
I
Interviewer9:39
You have already mentioned the trade conflicts. The global political tensions between the USA and China, Russia and Europe are intensifying, that is clear. How do you want to position your internationally positioned company in such an environment?
H
Herbert Eibensteiner9:56
Yes, we are increasingly influenced by external factors in our economic activities. As you said, trade disputes are being provoked, trade agreements are being broken. But we also have political changes, such as climate legislation. The essential thing will be not to complain, but to adjust and adapt to these circumstances. We have a clear strategy, we have our opportunities, and we should use and implement them.
I
Interviewer10:36
This clear strategy also includes that internationalization will continue to play an important and major role in the future. Are there priorities in the expansion of international locations? Will new ones be added, and if so, which? And will there be acquisitions under your leadership?
H
Herbert Eibensteiner10:52
We have invested a lot in recent years: in Texas, wire works in Leoben, also in Linz in the steel plant. We built our automotive plants in the USA and China. We are currently building in Kapfenberg. We will have to digest these investments in the near future. But at the same time, we naturally want to grow in areas such as the aircraft industry, rail manufacturing, or railway infrastructure, also through acquisitions. But as I said, we have to create the framework to remain successful. We have to generate financial leeway. This will also lead to us investing somewhat less in traditional areas, focusing more on cash flow, and then we will be able to take larger steps on the acquisition side again.
I
Interviewer12:01
Because you just mentioned Kapfenberg: the most modern steel plant in the world is being built there, a clear commitment to the location in Austria and Europe.
H
Herbert Eibensteiner12:09
Europe is still our most important market, our largest market. The decision for Kapfenberg was made back then also because of the good qualifications of the employees. That is part of the framework conditions for us. That is why, at the end of the day, it is crucial for our success what the framework conditions in Austria and especially in the EU actually are. And we do speak up again and again.
I
Interviewer12:46
The economic outlook is clouding over again at the moment. What does that mean for voestalpine AG, and how do you intend to counteract it specifically?
H
Herbert Eibensteiner12:52
We have always done quite well in such situations in the past. We will naturally intensify our efficiency programs, we will scrutinize our cost structures and adjust them. We can do that; we can switch quickly into a different mode very, very well. But we will certainly not forget to continue developing our investments, and we will naturally continue to supply our customers with perfect products and perfect service.
I
Interviewer13:31
Let's come to the conclusion. You are now responsible for 52,000 employees. That is a lot, a considerable challenge, but at the same time also part of the foundation of success. What do you wish for from your employees?
H
Herbert Eibensteiner13:50
Continue to have this will to succeed, this flexibility and adaptability, this joy in innovation, and also the joy of being able to help shape the future of voestalpine.
I
Interviewer14:04
One usually can't choose, but if you could choose, by what would you like to be measured?
H
Herbert Eibensteiner14:13
I think executives are always measured by success.
I
Interviewer14:15
Then I say many thanks for this conversation and may I wish you all the best for your work. Thank you very much. voestalpine – one step ahead.