Austria’s voestalpine AG will invest about €1.5 billion in the construction of two electric arc furnaces, the steelmaker said in a statement.
Construction will start in 2024. The facilities will be commissioned in Linz and Donavitz, Austria, in 2027.
The new equipment will replace two blast furnaces and will run on green electricity, which could allow the company to reduce its carbon dioxide emissions by 30%. Voestalpine plans to replace two more blast furnaces after 2030.
The combined capacity of the two new electric furnaces is about 2.5 million tons of steel per year.
Voestalpine shares are down 0.5 percent in trading in Vienna on Wednesday.
