May 10, 2017 / 7:56 AM / a year ago

Austria's Voestalpine says Texas plant cost more than $1 billion

VIENNA (Reuters) - Steelmaker Voestalpine (VOES.VI) said on Wednesday the final cost of its direct reduction plant in the United States amounted to $1.012 billion (929 million euros), more than the $990 million estimated at the beginning of the year.

The logo of Austrian specialty steel maker Voestalpine is seen on top of its headquarters in Linz, Austria September 7, 2016. Picture taken September 7, 2016. REUTERS/Heinz-Peter Bader

The Austrian group in 2013 announced plans to invest 550 million euros in the state-of-the-art plant in Corpus Christi, Texas, its largest foreign investment so far.

In January, it said the cost of the plant would rise to about $990 million. That prompted Austria’s Financial Market Authority (FMA) to investigate whether Voestalpine had complied with a requirement to immediately publish information relevant to its share price. The FMA found no wrongdoing.

“The increase in investment expenditure is essentially due to delays caused by a longer period of critical weather conditions during the first phase of the project, significant cost inflation as a result of the unforeseen construction boom in the Corpus Christi area starting 2014, as well as additional investments, technical optimization, and environmental measures,” the company said in a statement.

Reporting by Kirsti Knolle; editing by Francois Murphy

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