Slovenia’s SIJ Group will reduce production by the end of 2022

The largest integrated steel company in Slovenia, SIJ Group, announced a decision to adjust production due to high energy tariffs. SteelOrbis reports about it.

In September 2022, the company plans to reduce its capacity by a third, and in the fourth quarter – by 40%.

“The increase in electricity and gas prices had a negative impact on our company. We can no longer sell products profitably with these levels of prices for energy resources and finished steel,” SIJ Group reports.

The Slovenian government is expected to introduce concrete measures to help companies and energy-intensive industries in the coming months and next year. In the SIJ Group’s opinion, limiting energy prices is the only measure that can adequately solve current and future problems.

As GMK Center reported earlier, European steelmakers have recently experienced difficult times. Due to the high gas and electricity cost in Europe, companies are forced to reduce capacity or temporarily stop production.

Since the beginning of the September, ArcelorMittal Corporation has temporarily stopped two blast furnaces at the plant in Dunkirk. From October 2022, the furnaces in Bremen, Hamburg and Asturias will be also stopped. Also the company postponed the launch of the blast furnaces at the Acería Compacta de Bizkaia plant in Spain.

Low prices and weak demand for finished steel, combined with very high energy prices, have caused a wave of steel shutdowns in Europe. Following ArcelorMittal, US Steel Kosice, Dunaferr, Liberty Ostrava, Ferroatlántica, Ferriere Nord and other have decided to reduce or stop capacity.