Project number: 639 Project acronym: trAILs Project title: Alpine Industrial Landscapes Transformation

DELIVERABLE D.T1.3.2

Pilot profile Styrian Iron Route

Work package: T1

Activity: T1.3.2

Organization: Registered association Styrian Iron Route (VESTE)

Deliverable date: Nov 2018

Version: final

Dissemination level:

Dissemination target:

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space programme

CONTENT

1 INTRODUCTION ...... 3

1.1 REGIONAL PPS AND LOCAL STAKEHOLDER NETWORK ...... 3 1.2 OVERVIEW OF THE REGION ...... 4

2 REGIONAL PROFILE ...... 6

2.1 NATURAL CONDITIONS AND LANDSCAPE ...... 6 2.2 TECHNICAL INFRASTRUCTURE AND TRAFFIC ...... 12 2.3 SPATIAL STRUCTURE AND SETTLEMENTS ...... 13 2.4 POPULATION AND SOCIAL INFRASTRUCTURE ...... 14 2.5 ECONOMIC SITUATION ...... 18 2.6 ACTORS AND NETWORKS ...... 20 2.7 CULTURAL ASPECTS ...... 20

3 SITE PROFILE ...... 21

3.1 OLD BLAST FURNACE SITE MÜNICHTAL / ...... 21 3.2 BACKGROUND ...... 27

4 CHALLENGES AND EXPECTATIONS ...... 29

4.1 PRESENT AND FUTURE CHALLENGES IN THE DEVELOPMENT OF THE REGION ...... 29 4.2 PRESENT AND FUTURE CHALLENGES IN THE DEVELOPMENT OF THE SITE...... 32

5 ANNEX 1: MAP OF SITE ...... 34

6 ANNEX 2: SWOT ANALYSIS STYRIAN IRON ROUTE / STEIRISCHE EISENSTRASSE ...... 35

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1 INTRODUCTION

1.1 REGIONAL PPS AND LOCAL STAKEHOLDER NETWORK

The NGO “Registered association Styrian Iron Route” (Verein Steirische Eisenstrasse / VESTE) is a development agency comprising 18 municipalities in the industrial & mining in the Alpine part of the Austrian state of . As a key player for regional development it can build on more than 30 years of experience. The topics covered are urban revitalization, industrial culture & heritage and economic development. In the past decades more than 20 million of euros for regional development investments have been undertaken triggered by VESTE.

The members of VESTE are the region´s municipalities (including Leoben, Styria´s second biggest town) and the state of Styria. Chairman is Mario Abl, the mayor of the city of . This constellation provides a good backup for all activities (including involvement of stakeholders, funding for implementation of the outcome of studies + knowledge transfer).

The main stakeholders are therefor on one hand the municipalities and their mayors. Second the cultural players are important partners (e.g. the museum association Styrian Iron Route / “Museumsverbund Steirische Eisenstrasse”, led by Susanne Leitner-Böchzelt / Leoben, which is a cooperation of 13 regional industrial-heritage-related museums). Touristically the touristic association “Hochsteiermark”, managed by Claudia Flatscher, is responsible for bundling the activities in the whole region East. It is supported by regional/local touristic associations such as “Erzberg-Leoben”. Last not least the regions´ companies are major stakeholders, starting with the steel processing plants of /Böhler and the VA Erzberg, Central Europe´s last active iron ore mine.

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1.2 OVERVIEW OF THE REGION

Facts & Figures Östliche Obersteiermark (Upper Styria East) + 6 Pilot region adjoining municipalities in the district of Country Location North-Eastern part of the state of Styria Area (in sq. 3.963,6 sq. km km) Inhabitants 170.438 41; main towns: Leoben, Trofaiach, Eisenerz, Municipalities Bruck/, , Mürzzuschlag Heavy industry in the Mur-Mürz-Valley, which is also Characteristics the major settlement area, and beyond that thinly populated typical Alpine valleys

Image 1: The region "Östliche Obersteiermark" is situated around the triangle Eisenerz - Leoben - Kapfenberg

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Image 2: The pilot area covers 41 municipalities (the municipalities of the districts Leoben and Bruck- Mürzzuschlag + some adjoining municipalities in the district of Liezen)

The Styrian Iron Route (the Western part of “Östliche Obersteiermark”) has a 1300 year long history of mining. The “Erzberg” (“ore mountain”) in Eisenerz with its open-cast iron ore mine is one of the impressing remains. Over the centuries the mining led to a prospering and still on-going steel industry in the whole region Östliche Obersteiermark and beyond (as far as , and the upper Mur valley). The leading steel company voestalpine, with 10.000 employees in the region and 50.000 worldwide, has its roots in Eisenerz (former Alpine Montan Gesellschaft), and is centered in the Mur-Mürz-Valley (between , , Leoben, Kapfenberg and Mürzzuschlag). voestalpine has also other outstanding further industrial global players such as AT&S and RHI in its wake.

Mining & industry region also created a typical industrial & mining culture in the “cradle of Austria´s industrialisation”. Industrial monuments such as the extraordinary blast furnace museum Radwerk IV and the Erzbergbahn are of international reputation. The mining university of Leoben is nowadays one of the leading universities in the international ranking.

Apart from the Erzberg the region offers rugged summit trails in the Eisenerzer and the Hochschwab and gentle nature in the valley, the Palten-Liesing-valley and around . The city of Leoben, being the capital of Upper Styria, has developed a highly attractive young and urban flair in recent decades. The Gösser brewery with more than 500 years of history is also an important industrial ambassador of the region.

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Image 3: Erzberg in Eisenerz - Austria´s cradle of industrialisation and the last iron ore mine in Central Europe

Image 4: The metallurgic industry in the Mur-Mürz valley processes the ore from „Erzberg“ (picture: arial view of voestalpine steel plant in Leoben)

2 REGIONAL PROFILE

2.1 NATURAL CONDITIONS AND LANDSCAPE

The west of “Östliche Obersteiermark” consists of the district of Leoben and some adjoining municipalities in the district of Liezen. The region is commonly known as Styrian Iron Route (“Steirische

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Eisenstrasse”), and forms a geographically, historically and economically homogeneous region. The region has a high proportion of forest areas (over 75%), with grassland use predominating in agricultural areas. The permanent settlement area is very low by comparison at 15 % (Styria: 30 %). The area can be roughly divided into following zones: . Leoben including as the urban core zone along the main river Mur . The rural valleys Vordernberger Tal (capital: Trofaiach) and Palten-Liesingtal along the A9/Pyhrn highway; both situated on the southern side of the Eisenerzer Alps, gentle Alpine landscape with agriculture and extensive tourism . The region around the Erzberg in the centre of the steep Eisenerzer Alps and the Hochschwab mountain range . The "Eisenwurzen" in the northern Eisenstrasse, reaching as far as the Lower Austrian border, characterized by rugged gorges and white water.

Image 5: View from Hochschwab to Eisenerz/Erzberg and Eisenerzer Alps

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Image 6: The gentle Vordernberger valley with Eisenerzer Alps in the background

The district of Bruck/Mürzuschlag (Eastern part of “Östliche Obersteiermark”) is characterised by the rivers Mur and Mürz and by settlements in narrow valleys and basins. It´s northern part can be described as a peripheral rural development area, with Hochschwab as the major mountain range. The southern part of the region along the big rivers belongs to the old industrial areas of Austria and reaches from Bruck/Kapfenberg as far as the mountain pass Semmering, Styria´s natural boarder with the state of .

Image 7: St. Marein in the central heavy populated Mürztal

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Image 8: Heavy industry in the Mur-Mürz valley (e.g. in Kapfenberg)

Image 9: Landuse in Östliche Obersteiermark is dominated by forests (green: forests, yellow: cultivated alnd, red: building areas, purple: mining/industry

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Image 10: Gentle Vordernberger valley at the base of Eisenerzer Alps & Hochschwab; bottom right: "industrial capital" Leoben (2nd largest city of the state of Styria, population: 25.000)

The climate is cold and temperate, and rough in the peripherical mountain valleys, where winters are long, with much snow especially around Eisenerz. Natural hazards are a growing problem: Floodings and landslides occur more and more often in the major settlement areas (e.g. around the Mürz valley) as well in the peripherical regions. In the centre of the mountains, especially around the mountain pass Präbichl, Eisenerz and the valley, avalanches have to be dealt with as well and roads can be closed for days. Due to the natural hazards, more and more sites are declared as danger zones, where building or industrial activities are prohibited. Danger zone maps have been created for several areas (such as around Eisenerz/Vordernberg/Radmer), but not all necessary protective measures have been implemented so far.

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Image 11: Average temperatures and precipitation in Leoben (source: www.meteoblue.com)

Image 12: Average temperatures and precipitation in Eisenerz (source: www.meteoblue.com)

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2.2 TECHNICAL INFRASTRUCTURE AND TRAFFIC

Traffic connections:

The next airports are Thalerhof (and (approx. 45/90 minutes by car from Leoben/Bruck). The airport of Vienna has direct train connections with the region by “Südbahn”. The Semmering tunnel – due to open in 2026 - will cut the travel time by 30 minutes.

Leoben and Bruck/Mur are major railway hubs, with direct connections to all major Austrian cities as well as to international destinations (North, South, East, West). Within the region and to Graz an interurban railway system has been installed with trains running at least half-hourly. Beyond the Mur-Mürz valley buses are the main means of public transport. Not all peripheral municipalities are served frequently though.

St. Michael (5 kms west of Leoben) is a motorway junction (A9 Phyrn highway = North/South connection to //Graz, and S6/S36 East to Bruck/Mürzzuschlag/Vienna and to Judenburg and in the West). The B115 Bundesstrasse connects Eisenerz and Eisenwurzen with the South. In winter the Präbichl pass can be difficult to pass in times of heavy snowfall, and the road is regularly closed for heavy transport (sometimes even for all transport, if there´s the danger of avalanches). The major cable cars and lifts can be found at Präbichl, Stuhleck/Mürztal, and Mariazell.

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Image 13: The major roadnetwork in "Östliche Obersteiermark"

The region boasts huge water reservoirs and is the main source for drinking water for Vienna (the Hochquellenwasserleitung starts in ). A gas pipeline through the Mur-Mürz and the Palten- Liesing valley provides natural gas to the region´s main settlement and industrial areas. Sufficient waste disposal facilities, dumps and recycling plants have been established. Broadband internet is available in the major settlement axis, but internet is still of poor quality a few kilometres beyond.

2.3 SPATIAL STRUCTURE AND SETTLEMENTS

The average population density in Eastern Upper Styria is 43 inhabitants/sq.km (district Leoben: 57) and is lowest in Eisenwurzen ( Wildalpen: 2).

That means that the region can be divided in two zones: a) The main settlement area is the Mur-Mürz valley (from Trofaiach to Mürzzuschlag). The urban and heavy populated core area reaches from Trofaiach/Leoben to Kapfenberg. Here you find already a lack of building land and housing, though there are still enough dedicated land resources for industry and enterprises.

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Image 14: The densely populated zones are centered in the Mur-Mürz-valley

b) Beyond that the settlement is very sparse and dispersed. The loss of population is immense (e.g. Eisenerz had 13.500 inhabitants in the 1950s, now 4.200). Vacancies are a huge problem, also in regard to the infrastructure costs for the municipalities. In Eisenerz several pilot studies for shrinking cities have been carried out and the so-called “re-design Eisenerz” process started (aiming to downsize the city and to find new use for vacant buildings). The regional development programmes of the two LEADER regions LAG Steirische Eisenstrasse and LAG Mariazeller-Land–Mürztal and of the “Regionalmanagement Obersteiermark Ost” also support change processes.

2.4 POPULATION AND SOCIAL INFRASTRUCTURE

The population is stable in the Mur-Mürz-Valley. Beyond that it has been decreasing rapidly in the past years. For example Eisenerz is the “oldest” city of Austria (in regard to the age structure, has the lowest birth rate and the highest percentage of retirees.

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Image 15: Popolulation change 2015-2030 in Styria (LE - district of Leoben; BM - district of Bruck- Mürzzuschlag; source: Landesstatistik Steiermark)

Development of the age structure in the district of Leoben shows an aging society (source: Landesstatistik Steiermark):

2005 2010 2014 2015 2016 2017 2018 < 20 years 18,0% 16,9% 15,9% 15,6% 16,0% 15,9% 15,7% 20 - 65 years 60,2% 58,9% 59,3% 59,5% 59,3% 59,4% 59,3% > 65 years 21,8% 24,3% 24,8% 24,9% 24,6% 24,7% 25,0%

General population data (1.1.2018, source: Landesstatistik Steiermark):

District of District of Bruck- Leoben Mürzzuschlag Population 60.451 99.437 Gender Male 29.779 48.670 Female 30.672 50.767 Age distribtion < 20 years 15,7% 16,8% 20 - 65 years 59,3% 58,6%

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> 65 years 25,0% 24,6% Natural population decrease (2017) -302 -428

The percentage of foreign nationals is 9,5 %; higher in the major cities (e.g. 16,1 % in Leoben, 16,9 % in Kapfenberg), next to zero in the very rural areas.

Education offers are comprehensive, with a focus on technical orientation:

. Mining university of Leoben (> 4000 students)

Image 16: The traditional mining university of Leoben, one of the leading mining universities worldwide

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Image 17: The mining university of Leoben offers a broad range of technologic studies

. Joanneum Kapfenberg (advanced technical college)with following full time and part time degree programmes: o Internet Technology o Mobile Software development o Software design o IT & mobile security o IT Law & management o Energy, mobility & environmental management o Energy & transport management o Electronics & computer engineering o Industrial management o International supply management

. HTL Leoben (technical college) with following specialisations: o Raw material and energy technology o Metallurgy and environmental technology o Technical Logistics and Management o Information Technology and Smart Production

. [50 km from Leoben the university and the technical offer a whole range of studies.]

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. Gymnasium Leoben (high school) . Gymnasium Bruck/Mur (high school) . HBLA Leoben (college for commercial professions) . BHAK Mürzzuschlag (college for commerce) . BHAK / BORG Eisenerz (college for commerce)

For additional “on the job” training or retraining, the bfi (Leoben and Kapfenberg) and the WIFI provide various offers in different professions (from industry-related and technical to other professions).

Cultural, sports and recreational facilities are abound. The USP of the region is “Industry in the middle of nature” (“Industrie im Grünen”) – with an easy access from the industrial centres to mountains, skiing slopes, lakes, bicycle trails, rivers etc.

Mission Statement of the region “Östliche Obersteiermark”: "Upper Styria East is the materials region (Werkstoffregion) of the future. Here people live in an urban area and in a cultural landscape with nature and mountains. The combination of technology, culture and sport links industry and quality of life".

2.5 ECONOMIC SITUATION

Regarding the GDP per capita the district of Leoben is Nr. 2 in the Styrian ranking (behind Graz).

GDP in € / capit 2015 District of Leoben 35.800 Eastern Upper Styria 36.200 State of Styria 35.500 Austria 39.900

Source: Statistik Austria, adapted by Landesstatistik Steiermark

Unemployment rate: District of Leoben: 7,1 % (National: 8,5 % Styria: 7,3 %)

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Gross value added of economic sectors in % (2015):

primary sector secondary tertiary sector sector Eastern Upper 2,3 49,1 48,6 Styria State of Styria 2,1 33,5 64,4 Austria 1,2 28,1 70,7

Source: Statistik Austria, adapted by Landesstatistik Steiermark

- Primary sector: Agriculture, forestry, fishing and fish farming - Secondary sector: mining, material production, energy and water supply, construction. - Tertiary sector: Wholesale and retail trade, repair of motor vehicles and personal and household goods, hotels and restaurants, transport, storage and communication, financial intermediation, real estate, renting of movable property, business services, education, health, veterinary and social work, other public and personal service activities, private households

National and regional number of registered companies (2017): Austria: 506.145 Styria: 75.609 District of Leoben: 3.293 Source: https://www.wko.at/service/stmk/zahlen-daten-fakten/WKO_Daten.pdf

The main industry is highly specialised steel processing (voestalpine and Böhler are major global players, e.g. the voestalpine plant in Leoben produces the longest rail of the world). Other modern industries such as AT&S in Leoben (microchips) are of importance as well.

Tourism is relatively “low key” in comparison with regions such as /Dachstein or Southern Styria, but it´s still an important economic niche. At the moment the touristic region “Hochsteiermark” (identic with Östliche Obersteiermark) provides 11.500 beds and generates more than 800.000 overnight stays per year (district of Leoben: appr. 200.000) with about 330.000 guests. Especially in the cities, “industrial tourism” (visitors on business or of the mining university) are a major source of overnight stays. Apart from that the major attractions are mountains & nature (summer & winter offers), and in addition the region´s landmarks “Erzberg” (about 50.000 visitors per year) and Mariazell.

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2.6 ACTORS AND NETWORKS

Actors:  Mayors (+ the heads of the building authorities) of the municipalities, especially of the cities of Trofaiach, Eisenerz, Leoben, Bruck, Kapfenberg and Mürzzuschlag

 District commission (Bezirkshauptmannschaft): Heads of the building authorities (Baubezirksleitung) of the districts Leoben and Bruck-Mürzzuschlag  Forest Engineering Service in Torrent and Avalanche Control (Lawinen- und Wildbachverbauung) – regional head office in Bruck/Mur  Government of Styria – department A17 (regional development)- www.landesentwicklung.steiermark.at  LAG Steirische Steirische Eisenstrasse (Leader programme for regional developement)- www.steirische-eisenstrasse.at  LAG Mariazellerland-Mürztal (Leader programme for regional developement)- www.leader-mm.at  Regionalmanagement Obersteiermark Ost www.obersteiermark.at  WIL – Wirtschaftsinitiativen Leoben (industrial and business settlement for Leoben) - www.leoben.at/wirtschaft/staedtische- betriebe-beteiligungen/wil/  AREA m Styria (industrial and business settlement for Leoben, Trofaiach, Kapfenberg, Bruck/Mur, ) - www.areamstyria.com

2.7 CULTURAL ASPECTS

In October 2018 the intangible cultural heritage of the region Styrian Iron Route (“Customs of the miners and steel workers along the Styrian Iron Route”) were recognized by the Austrian UNESCO commission as UNESCO cultural heritage.

Festivals such as the “Rostfest” (rust festival, www.rostfest.at) in Eisenerz and eisenerZ*ART (www.eisenerz-art.at) have achieved nationalwide attention and help to position the region also as an innovative cultural region. There has been lots of media covering in the past years in Austria´s most important media supporting a general image change of the region.

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3 SITE PROFILE

3.1 OLD BLAST FURNACE SITE MÜNICHTAL / EISENERZ

Facts & Figures Site name Old blast furnace site Münichtal Area (ha or Appr. 150.000 sqm m²) Status Part in use Use in past: Iron blast furnace, 100 year old gas Type of power station (gas from furnace), automotive glass industry factory, aluminium recycling factory/smeltery; still ongoing: metal recycling Different owners of whole site:  Raiffeisen Impuls Vermietungsgesellschaft mbH: most of the parts which are not in use (former Pilkington and Alumelt companies; 61.000 sqm) Owner  Primaras Handels GmbH: Scrap metal recycling  Sylvia Ebert: Old gas power station  Hochofen Schlacke Verwertungs GmbH: iron blast furnace slap heap

Image 18: Areal view of old blast furnace site Münichtal / Eisenerz

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The site, located in the north of the city of Eisenerz (district “Münichtal”), was the location of the old iron blast furnaces processing the iron ore from the Erzberg mine (5 km south), which is also the regional landmark (www.abenteuer-erzberg.at). It is situated at an altitude of approx. 730 meters in the narrow valley between the “Eisenerzer Alps” and “Hochschwab”. The surrounding mountains reach altitudes of approx. 2200 meters and are densely forested.

Image 19: The pilot area is situated at the base of Eisenerzer Alps and Hochschwab On the right side of right photo: Leopoldersteiner Lake (It was voted 2014 most beautiful Styrian lake)

Image 20: The pilot site (bottom right) is located about 5 km north of Erzberg (“Iron mountain”)

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Image 21: Eisenerzer Alps rising behind the pilot site

Short historical overview:

 1899/1900: Construction of first iron blast furnace by the local “Alpine Montan Gesellschaft” (predecessor of today´s largest Austrian steel company voestalpine); hand in hand the iron blast furnace slap heap in the northernmost corner of the site grew  1911: Construction of second blast furnace  1920: Construction of gas power station (still ) powered by blast furnace gas  1923: Construction of adjacent relay station

Image 22: Iron blast furnace Münichtal (1920)

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Image 23: Iron blast furnace Münichtal (1925)

 1939 – 1945: “Münichtalsiedlung” (huge housing project for miners/industrial workforce directly north of the site) was built  1945: shut-down of plant  1945 – early 1980s: Central workshop (“Hauptwerkstätte”) for Erzberg mine  1970s Blasting of blast furnace chimneys, but old production halls remain  1984: Voestalpine Glas (later: Pilkington Automotive Austria) starts production (windowsheds)  2008: Pilkington plant shut-down  2010 - 2012: Alumelt (smeltery and foundry for recycled aluminium / “Schmelze mit Gießerei für Sekundäraluminium”) at former Pilkington site goes bankrupt soon after opening  Primaras: Scrap metal recycling company opened in the central part of the site around 2012, built some new buildings on the old site and uses some old remaining buildings

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Image 24: Blast furnace gas power station (left), remains of old blast furnace plant (right); 2018

Status quo Pilkington/Alumelt (southern part of pilot site:

 Appr. 60.000 m²  Built in the late 80s  Used for automotive industry and secondary aluminium recycling  Modern production halls  Shut down 2012  Since then some parts have been used for minor purposes (storage etc.)  Owners are highly interested in new usage

Image 25: Former Pilkington and Alumelt plant (closed 2012) - main hall: 14.000 sqm, area 61.000 sqm

Status quo “Old gas power station”(central part of pilot site)

 Old gas power station: Owned by small recycling company in Graz.  Some minor use (storage).

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 Owner is strongly interested in re-use (best option: sale of property…)

Image 26: Old gas power station

Status quo “Primaras company” (central part of site)

 Primaras: Scrap metal recycling company  Bought and uses several old halls and build some new ones. Business is ok but future uncertain.

Image 27: Old & new infrastructure used by Primaras company

Status quo – slag heap („Schlackenberg“) - northern part of site

 Used here and there (building material for road construction)  Another ownership (company in Graz)

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Image 28: Slag heap in the north

Interesting but challenging mix on site

 Mix of old and new (buildings more than 100 years old and modern industrial halls)  Quality of buildings varies  Mix of used and unused buildings  Mix of different owners

3.2 BACKGROUND

Accessibility: The site is connected to the railway system with a direct connection to the site.

Supply infrastructure: Energy & water supply is existing, but de-activated for the Pilkington/Alumelt site. Could be activated at short notice (municipality of Eisenerz has a ready concept)

Economic impact: 70 employees lost their work with the closure of Pilkington; 34 employees with the closure of Alumelt. For the shrinking city of Eisenerz this was a major setback. A new usage of the site would be of great importance for the labour market in Eisenerz.

Conservation status and historic value of buildings The quality of the buildings varies. Of historical value is the still existing gas power station. The newer buildings (former Pilkington/Alumelt) are modern factory halls.

Natural hazards

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The site itself can be regarded as safe in regard to avalanches, mud slides and floodings. But natural hazards are a big topic in the region. Just a few 100 meters further to the north parts of the land are “red zone”. A “natural hazard plan” was developed a couple of years ago with support of the EU LEADER programme for the micro- region Eisenerz-Vordernberg-Radmer-, which is available.

Surroundings The site is situated next to a resident area. Neighbouring in the north (right beyond the slag heap) is the old miners´ housing quarter “Münichtal”. Most of this quarter has been bought by a private investor in 2015 who is developing a tourist resort (Alpine resort, www.alps-residence.com/erzberg-alpin-resort) on its premises. Approximately 75 apartments have already been refurbished, the aim is to have finally 1000 beds available.

Image 29: A tourist resorts is developed step by step in the north of the site (slag heap on the very left)

Shrinking city Eisenerz Eisenerz is one of the most dramatically shrinking cities in Austria. From 13.500 inhabitants in the 1950s, only a little bit more than 4000 people remain now in the city (numbers still falling). This causes heavy financial problems for the municipality, as costs are extremely high to maintain the necessary infrastructure (sewage, water, roads etc.). In addition a lot of buildings have been abandoned in the recent years and vacancy is high (about 1000 empty apartments).

Industrial tourism offers in the region  Show mine + tours on Erzberg (Iron mountain): www.abenteuer- erzberg.at  Copper show mine in Radmer: www.kupferschaubergwerk.at  Blast furnace museum in Vordernberg: http://www.radwerk- vordernberg.at/

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 Regular tours of voestalpine in Leoben  Museums association Styrian Iron Route: www.eisenstrassenmuseen.at

4 CHALLENGES AND EXPECTATIONS

4.1 PRESENT AND FUTURE CHALLENGES IN THE DEVELOPMENT OF THE REGION

Based on a comprehensive SWOT analysis, the region “Östliche Obersteiermark” (Upper Styria East) lists 4 strategic goals, 12 key themes and 3 cross-cutting themes for the development of the region in the forthcoming years in its regional development concept.

Objective 1: To further develop the industrial-commercial core competence This goal builds on the economic core competences of the region as an industrial location with high adaptability. The established structures for location development and location marketing, existing impulse centres, the high quality of specific training offers coupled with high research and development competence must be further strengthened and expanded. R&D infrastructures in particular improve the international attractiveness of the location. This objective is particularly important in the context of strengthening the industrial base as an important EU objective and in view of global competition. The activities to achieve this goal are developed in the three key themes "Site development and marketing AREA m styria", "Research & Development" and "Qualified workforce".

Objective 2: Develop the central area and make the centres attractive The central region of Upper Styria East (Trofaiach - Leoben - Bruck/Mur - Kapfenberg - Kindberg - Mürzzuschlag) is home to the region's growth poles, which are well equipped with cultural and social infrastructure, sports infrastructure, training and further education facilities and good connections to the high-ranking transport infrastructure. The attractiveness of this central area and its urban centres determines to a large extent the region's attractiveness for companies and workers. These include lively centres as places to shop and stay, a qualitatively and quantitatively sufficient range of housing offers and a variety of

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cultural, sports and leisure activities. This goal is not only about the Upper Styrian central region, but also about strengthening the sub-regional centres, which are of essential importance as places of work and supply for rural and peripheral areas. Activities in the three key themes "lively city and town centres", "urban region development" and "services & creative workshop" support the achievement of this goal.

Objective 3: To bring sustainable value to the region's natural and cultural resources The region is rich in natural and cultural resources (landscape, energy resources, pilgrimage centre Mariazell, world cultural heritage Semmeringbahn, Erzberg, etc.). However, there is a lack of tourist centres, high quality accomodation, capital resources and a developed culture of cooperation. The proximity to the conurbations of Vienna and Graz and the traditional affinity for Hungarian and Slovakian guests continue to offer good opportunities as a leisure, recreation and tourism location away from mass tourist destinations. Better value-adding can be achieved by establishing cross-sectoral value-added partnerships (e.g. agriculture - cuisine - culture - tourism) and value chains (e.g. wood, energy). This is linked to the further development of brands (e.g. “Hochsteiermark”). Activities to achieve this goal are bundled in the following three key themes: "Value-added partnerships and chains", "Brands & Marketing" and "Culture and Sports".

Goal 4: Managing demographic change The demographic change in the region is multi-faceted and associated with very different challenges. In the Upper Styrian central region and its urban growth poles, the aim is to trigger immigration from Austria and abroad, to improve the framework conditions for the employment of women and to offer attractive offers for young people that increase their loyalty to the region. In the rural and peripheral areas (areas of emigration), the question is how to organise services of general interest (shops for daily needs, elementary schools, medical care, childcare, care, public transport, etc.) in such a way that their attractiveness as a residential location does not diminish any further. Supporting non-profit organisations and voluntary activities can also be an important aspect of this. It is all about quality of life, especially for young people and their future in the region. The three guiding themes for this goal are "Services of General Interest", "Integration & inclusion" and "Youth".

The cross-cutting themes of "education", "transport & mobility" and "regional networks / cooperation, regional structures, regional image" are pursued horizontally to all objectives. This means that

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projects should take up these aspects or that own projects on these topics can be pursued.

Additional information including descriptions of the key themes:  „Regionales Entwicklungsleitbild Obersteiermark Ost“ (Download: www.obersteiermark.at/regionalentwicklung-2/regionsleitbild

 In addition, the two LEADER regions „LAG Steirische Eisenstrasse” (www.steirische-eisenstrasse.at) and “LAG Mariazeller Land – Mürztal” (www.leader-mm.at) offer even more detailed strategies and SWOTs for regional development even more locally.

SWOT analysis of “Styrian Iron Route”: see Annex 2

 For Eisenerz a detailed concept “redesign Eisenerz” is available.

Image 30: The "redesign Eisenerz" concept deals with the challenges of a shrinking city, including the deconstruction of unnecessary infrastructure

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4.2 PRESENT AND FUTURE CHALLENGES IN THE DEVELOPMENT OF THE SITE

Eisenerz – being Austria´s cradle of industrialisation – has a century-long history of mining and industry, which led to a strong identity of the local population with industry. Due to globalisation and new technologies many jobs got lost in the past, so skilled labour-force is still available in the city and its vicinity.

On the other hand the location of Eisenerz – in the middle of the Alps and not directly connected with the major transit routes (especially road traffic) – is a major disadvantage for the settlement/founding of new industrial companies. The pilot site “Münichtal” is next to a settlement area (including a tourist resort some 100 meters away). That means that any possible industrial use (creating emissions – dust, smell, noise etc.) must be coordinated with the residents.

The site “Münichtal” offers a range of opportunities for further development: Modern vacant factory halls of substantial size with direct rail access as well as old remains, which are now partly used by a recycling company.

The challenge is to find attractive ways of usage for the site and suitable solutions for 21st century companies. The environment (strong industrial identity, skilled workers, F&E competence of the mining university and the region´s focus/branding as “materials cluster” – core competence from recycling to production) are assets that should be valuable in this context.

Short summary of advantages & disadvantages for development of the site:

Advantages:  Eisenerz – being Austria´s cradle of industrialisation – has a century-long history of mining and industry, which led to a strong identity of the local population with industry.  Due to globalisation and new technologies jobs got lost in the past, so skilled labour-force is still available in the city and its vicinity.  The site “Münichtal” offers a range of opportunities for further development: Modern vacant factory halls of substantial size with direct rail access as well as old remains.  Direct rail access

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 Further assets: F&E competence of the mining university Leoben and the region´s focus/branding as “materials cluster” – core competences from recycling to production

Disadvantages:  Being not directly connected to major transit routes (especially road traffic) is a major disadvantage for the settlement/founding of new industrial companies around Eisenerz. Especially in winter road conditions can be rough.  Demographic change: population loss. Depopulation of region around Eisenerz due to its location far away from “city life”  The pilot site “Münichtal” is next to a settlement area (including a tourist resort some 100 meters away). That means that any possible industrial use must be coordinated with the residents (emissions – dust, smell, noise etc.) . [This was one of the reasons why the “pilot test plant” Alumelt had do be closed.]

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5 ANNEX 1: MAP OF SITE

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6 ANNEX 2: SWOT ANALYSIS STYRIAN IRON ROUTE / STEIRISCHE EISENSTRASSE

Economy, innovation, industry, location (incl. SMEs and EPUs)

strengths weaknesses  Core competence "materials and recyclable  Lack of economic and industrial-related materials" along the three pillars of services and modern creative and social business, science and education services.  Core competence "Raw Material/Mining"  Low attractiveness for managers and with the Erzberg and the mining highly qualified employees (housing university offer, urbanity)  Globally competitive leading  Lack of awareness of the region companies with high adaptability  Lack of space for start-ups outside  Developed location infrastructure the montanistic sector (IT, creative, (technology and business parks) social...)  Good technology cooperation and know-how  Old industrial, regional and transfer between the University of Leoben professional profiles still predominant and companies  Thinning out of the sector mix in the centres and on the periphery and resulting Strong trading location Leoben (7th place  vacancies in the ranking of Austrian shopping cities) chances threats  Global demand for high-quality and  Companies invest in more competitive resource-efficient products of the locations outside the region (wage costs, materials industry energy costs, etc.). Increasing pressure  Leoben-Donawitz steel plant is on local investments in export markets and located near important markets emerging countries (automotive industry in Graz, Germany)  Increasing competence in global competition  Demand for wood as a material  High density of high-quality R&D and educational/training facilities in the technical sector

Tourism, nature and ecosystems

strengths weaknesses  Good natural potential (from gentle to  Weak identification of the region with high alpine, from lake to wild water) tourism  Attractive extreme sports offers with USP:  Lack of cooperation between small white water, via ferrata, paragliding, regional tourism associations diving etc.  The column "montan" as one of the  High competence in Nordic winter sports columns of the touristic association  Awareness of the "Erzberg, Präbichl" “Hochsteiermark” is neglected brands/hotspots  Little entanglement between business and  Large USP of the Erzberg as one of the tourism very few publicly accessible open-cast  Structural deficits in tourism: partly mining operations in Europe outdated infrastructure, lack of leading  Cultural environment of touristic interest companies in the hotel industry, etc.  Eisenwurzen as an intact  Lack of willingness to invest in tourism ecosystem chances threats  Proximity to large urban areas  No successors of small businesses and (especially Vienna / Graz / private landlords Bratislava)  Declining support for investments by the  20 million euro investment in the Nordic public sector winter sports infrastructure in Eisenerz imminent  Tourist demand for low-cost offers away

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from intensive tourist areas  Ring incl. Formula 1 establishes itself with radiance on the neighbouring regions

Culture

strengths weaknesses  Nationwide image of Leoben as a cultural  With the exception of Leoben (and city recently Eisenerz), the region's cultural image is relatively weak  Museum association as an established organisational structure for 13  Few youth work and intergenerational montanhistoric museums incl. Erzberg cultural activities adventure  Lack of links between culture and  Well-founded cultural concepts industry/economy available  No professional cultural management for  Innovative, committed new cultural actors the region and little networking of  Some recognized artists with (inter- cultural actors )national reputation living in the region  Traditional culture (miners' culture):  Mining traditions and customs as USP lack of ideas for transformation in the  Folk culture is practiced and lived in high present and the future quality  Styrian Iron route culture very "masculine" in orientation, does not reflect social diversity chances threats  There are plenty of vacancies as a  Declining support (subsidies) from the resource for new uses by artists and public sector creatives  Demographic development with ever fewer  Trend: Art and culture as catalyst for young people makes youth culture more and economic and social transformation more of a niche  Economically successful and potent  Weak mobility makes access to cultural (industrial) companies in the region as events difficult for people from the potential cultural partners periphery

Cuisine, diversification in agriculture and forestry, energy production, handicrafts

strengths weaknesses  A successful network ("GenussReich rund  Weak image as a food-producing, um Reiting und Eisenstraße") with 50 culinary or tourist region producers, restaurants, local suppliers  Insufficient gastronomic offerings, and shops was established especially in the Erzberg adventure  Variety of high-quality regional foods region and for the target group of young people  Great forestry expertise in large forest  The supply of regional food is limited in “holdings” quantity, with the exception of deer  Biomass only occasionally used as an energy source  Lack of willingness to valorize forests due to ownership structures  Traditional region-specific craftsmanship and mining knowledge is continuously getting lost chances threats

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 Megatrends in consumer behavior: Demand  Successor problems in the gastronomic, for regional products, organic agricultural and handicraft sectors products, slow food, etc. (possible weakness)  Change in travel behaviour: Trend  Lack of willingness to invest / lack towards proximity and regionality in of equity in the catering trade fields of culinary and crafts  Declining agricultural subsidies  Trend in marketing: cooperation  Ever higher requirements in direct instead of competition and symbiotic agricultural marketing management  Biomass has become competitively priced as an energy source in recent years  Large biomass resources in the forests

Demography - youth - women incl. development of the active population

strengths weaknesses  Good training and further education  Unilateral, technology-oriented training opportunities for young people in offers technology and industry  Unfavourable demographic structure  Extensive leisure, sports and (ageing) and brain drain, especially among recreation facilities for young people women  Increasing presence of women in previously  Inadequate offers for young people male- dominated fields (materials (culture, housing), especially outside industry, mining university) Leoben/Trofaiach  Mobility problem for young people living on the periphery  Insufficient involvement and participation of young people chances threats  Opening of the European labour market  Above-average emigration, especially of offers opportunities for positioning as young people and women from the an immigrant region within Austria and periphery to agglomeration areas from the EU (skilled workers)  Well-paid industrial jobs for young  New fields of social work/ care for women people unattractive due to high workload and men and shift work (megatrend)  Breaking up of traditional role models  Brain drain of youth after education in (Equality Strategy 2020 ) region  Increase of the unequal development between the central area (Leoben and surrounding area) and the periphery

Public welfare, social affairs, services of general interest, quality of life, housing and local supply

strengths weaknesses  Good social structures, well-  Less attractive and affordable living established clubs and societies space for young people & lack of land  Strong institutional partners for people plots in urban areas with disabilities  Residential attractiveness in peripheral locations low due to lack of Increased activation of personal  infrastructure and modernisation initiative. Creative local projects to maintain community and participatory  There are insufficient resources structures were developed in the last available for the urban redevelopment Leader period. process in Eisenerz ("redesign Eisenerz").  High quality of life in the central Leoben-Trofaiach area and the surrounding  Thinning out of the sector mix in the area through the interaction of quality entire region with the exception of jobs, social standards, nature and Leoben leisure facilities  Lack of integration of people with a migration background

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chances threats  Strong future demand for social services  General demographic development and ageing such as care for the elderly in the  Endangered maintenance of public region infrastructures and financial viability  New fields of social work/ care for men and of services of general interest women  Rising rents/real estate prices in good locations

Mobility within and to other regions

strengths weaknesses  Lack of intra-regional mobility with the greatest weakness outside core hours for people without cars (mainly affects young people, and secondly women and seniors)

chances threats  Central location with regard to  Further thinning out of the peripherical important economic areas (Vienna, Linz, valleys due to further reduction of Graz, Bruck-Kapfenberg) public transport services  Good traffic connection raod/reail (S 6, S  Poorer public transport service in 35, A 9, south and Pyhrnbahn) the region after completion of the

Labour market, education and training, lifelong learning and knowledge management

strengths weaknesses  High-quality technical training, further  High commuter rate but shortage of skilled education and research facilities with workers university, FH, HTL (metallurgy, raw Not enough people are trained to meet materials, mining, logistics)  the needs of industry and enterprises  Eisenerz as a school location is of great Lack of activation of young people & importance for the region beyond the  migrants for technical professions Präbichl. (low diversity culture)  Nursing school in Leoben  Young people often have the wrong idea  Good cooperation between the University of (modern) technical professions. of Leoben and companies, between Young people who do NOT (want to) businesses and schools  orientate themselves technically feel  Integration of women in male-dominated that they don´t face good opportunities factories and professions is beginning to within the regional labour market. work.  Further education offers take place mainly  Comparatively low unemployment rate in Leoben, the distance to the  Relatively balanced employment rate educational offers represents a men/women substantial barrier.  Good environmental education (Eisenwurzen Nature Park)  Museumsverbund Steirische Eisenstrasse as a committed player in the field of knowledge management chances threats  Expansion of the University of Leoben  School closures in peripheral communities with strong partners (OMV, PCCL etc.)  Further job losses in industry due to  Demand for qualified full-time jobs in global competition industry  Aggravation of the labour market to  Mobility of workers in the EU and related highly qualified employees/technicians opportunities for immigrants (with bottlenecks) (professionals )  Shortage of skilled workers (since more  New fields of social work/ care for men than 50% of young people already attend and women. Diversity as an increasingly secondary schools and do not complete an social trend i apprenticeship, and because too few young

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people live in the region due to demographic developments).

 Increasing importance of knowledge management as a resource in regional development .

Regional marketing, regional communication and regional governance

strengths weaknesses  Competence map of Upper Styria East  Low level of awareness of the Styrian Iron  Effective national marketing and PR of the Route University of Leoben  Strong image problem both externally  High-quality culture has developed into and internally (self-conception as a an important regional marketing factor crisis region with collective on the Styrian Iron Route depression, beginning in early youth)  Lack of target group communication (women, young people, migrants, etc.)  "The"urban-rural" relationship (Leoben - surrounding area) remains weak.  Cross-community forms of financing and coordination (culture, housing, etc.) only at the beginning chances threats  Increasing importance of urban regions  Thinning budgets for regional, (central areas) in spatial development location and city marketing

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