PREPARATION OF A TURNAROUND PLAN

Ljubljana, 17 December 2025 – At a time when constructive negotiations with banks on a comprehensive refinancing solution are still ongoing, SIJ Group is actively entering the restructuring process. Strengthened by the support of experts from the steel industry, engaged under the auspices of the consulting firm Kearney, it is commencing the preparation of a restructuring plan. The objective of both activities is to ensure the long-term sustainability of SIJ Group’s financial and business model.

SIJ Group is entering an important period of strategic change, aimed at achieving long-term stability and turning the current situation into improved business performance. Under the auspices of the global consulting firm Kearney, SIJ Group will be strengthened by experts coming directly from major steelmaking groups. With its extensive experience and specialists from the steel industry, Kearney helps companies develop sustainable strategies, optimise business models, and successfully implementing restructuring programmes.

Within SIJ Group, I see a great deal of knowledge, experience and a strong commitment among employees to contribute through their work to successful business performance. The situation we have found ourselves in is challenging, but I believe strongly in the company’s considerable potential. We have high-quality niche products and are a modern, sustainability-oriented steel company of the kind supported by the European Union. I am confident that, with the support of consultants from Kearney and through constructive cooperation among employees and all stakeholders, we will in the coming months define and implement key activities that will enable a turnaround toward stable and improved operations. The months ahead will be intensive, and we view them as an investment in the future of SIJ Group,” said Dr. Kristijan Bauer, Management Board Member responsible for restructuring, upon announcing the start of the preparation of the restructuring plan.   

The result of the in-depth work of SIJ Group and the support of all stakeholders will be SIJ Group restructuring plan, to be prepared by the end of March 2026. This will be followed by the implementation of the restructuring plan, with the key objective of transitioning SIJ Group to a more competitive and long-term sustainable business model. This will be possible with the support of all key stakeholders—employees, trade unions, banks, owners, business partners, as well as measures taken by the European Union and its Member States. The EU and the Member States are already adopting measures that can significantly contribute to improving industrial competitiveness, including, among other things, ensuring competitive electricity prices and better trade conditions, etc. At the same time, a comprehensive refinancing solution and the search for a strategic partner with the assistance of a consulting firm will also be important steps for SIJ Group. Such a comprehensive approach, which in addition to the activities carried out to date includes both new internal efforts by the company and external activities, will open new opportunities for SIJ Group and enable a stable future.

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Introduction of Dr. Kristijan Bauer, Member of the Management Board responsible for restructuring, SIJ Group:

Dr. Kristijan Bauer holds a PhD and a bachelor’s degree in mechanical engineering from RWTH Aachen University. He has also completed executive education programs at the Kellogg School of Management at Northwestern University and at INSEAD Business School. He has more than 30 years of leadership experience in industry and extensive experience in managing complex restructurings under challenging circumstances. For twenty years, he held executive positions at Continental AG in Europe, the United States, and South America, and later assumed global management and operational roles at the industrial companies Festo and Rosenberger.

On 1 December 2025, he was appointed as a Management Board Member of SIJ d.d., responsible for restructuring.

Introduction of Kearney:

Kearney is a global management consulting firm distinguished by top-tier expertise and extensive experience in industry, including the steel sector. The firm helps companies develop sustainable strategies, optimise business models, and successfully implement restructuring programmes.

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SIJ – Slovenian Steel Group is one of Europe's leading producers of stainless steel and special steels. We are committed to global and European climate goals and operate in line with circular economy principles. With our steel and steel products, we are the right partner for facilitating the green transition in Europe. We confirmed our sustainability credentials by achieving certification to the stringent ResponsibleSteel standard in 2024. This positions us as one of the world's most responsible and sustainable steel producers. Our two largest companies are modern recycling steelworks, and our steel is recycled because it is made from steel scrap. With more than 3,600 employees, we are one of the largest employers in Slovenia and a pillar of the Slovenian steel sector. We are one of Slovenia's leading exporters. About 85% of our revenue is generated in foreign markets.

For more please contact:

SIJ – Slovenska industrija jekla, d.d.

Mag. Sara Wagner, Head of Corporate Communications

Corporate Communications

Phone: +386 1 242 98 27

Mobile: +386 41 313 532

E-mail: sara.wagner@sij.si