Ljubljana, September 6 2022 - Electricity and natural gas account for the majority of SIJ Group's energy costs. As an energy-intensive industry, we are naturally hit hard by disproportionately high energy prices. In the first half of 2022, we were able to manage the increase in energy and raw material prices through sales prices, which is unfortunately no longer possible in all production programmes. Given the extremely high energy prices and the uncertainty of our customers in accepting such price conditions, we have decided to optimise our production volumes, which will be reduced by around a third in September, and we anticipate around a 40% reduction in production volumes in the fourth quarter.
At the same time, we expect the Government to deliver on its forecasts and to proceed as soon as possible with the preparation of concrete measures to help companies in the face of high electricity and gas prices and to find solutions to help the energy-intensive economy in the coming months and next year. We are convinced that a cap on energy prices is the only measure that could adequately address the challenges we are already facing and those that lie ahead in the coming months.
SIJ Group is Slovenia’s largest vertically integrated metallurgy group which incorporates circular economy principles in its operations, allowing its products to maintain leading market positions in European and global niche steel markets. SIJ Group is among Slovenia’s top exporters and is considered a key employer in the Gorenjska and Koroška regions.
Find out more at:
SIJ – Slovenska industrija jekla, d.d.
Katja Krumpak, Head of Corporate Communications
Phone: +386 1 242 98 59
Mobile: +386 41 814 041