Revenues of the Russian-owned steel industry group SIJ shrank 13% year-on-year in the first quarter of 2013 due to a bad situation on the European markets. Employing just over 3,000 workers, the group generated revenues of EUR 179m and a profit of EUR 1.38m.
In addition to the poor market environment, the figures were also impacted by production shortfall associated with the installation of a new steel rolling machine at steel maker Acroni, SIJ Group has said.
The group sold 99,000 tonnes of products in the January-March period, down 15% year-on-year.
The group continues to invest in technology updates as well as in sales and processing centres in demanding markets.
"This year we want to focus on the US and purchase or build a centre there and we have similar plans for Asian markets in the future," SIJ boss Tibor Šimonka told the STA.
The group does not plan to lay off workers although intensive cost-cutting efforts are being made.
But the group is being affected by rising electricity and gas prices and additional contributions for renewable energy sources, which puts the Slovenian steel industry into an unfavourable competitive position compared to other European producers.
SIJ sees a way out in extensive investment in research and technology for which it invested over EUR 400m since 2007.
"Our only option is to be highly skilled and have the latest equipment in order to be able to produce high value added products in areas where large steel companies lack interest or flexibility," Šimonka said.
Source: The Slovenia Times
