Slovenia's SIJ to cut production amid high energy prices

LJUBLJANA (Slovenia), September 7 (SeeNews) - Slovenian steel producer Slovenska Industrija Jekla (SIJ) plans to reduce its monthly output by 40% in the fourth quarter of 2022 due to high energy prices, it said.

The company plans to cut production by one-third in September, it said in a filing with the Ljubljana Stock Exchange on Tuesday.

"Electricity and natural gas account for the majority of SIJ Group's energy costs. As an energy-intensive industry, it therefore strongly feels the disproportionately high prices of energy products. In the first half of the year, the group still managed to regulate the price increases of energy products and raw materials with sales prices, which unfortunately is no longer possible for all production programmes," SIJ said.

SIJ expects that the Slovenian government will introduce concrete measures to help companies cope with the high prices of electricity and gas, the company noted.

"At the same time, the SIJ Group assesses that limiting the prices of energy products is the only measure that could adequately address the upcoming business challenges," it added.

The SIJ Group is the largest vertically integrated metallurgical group in Slovenia, occupying with its products leading positions on European and global niche steel markets.