Sij steel group undergoes major transformation after energy crisis

Slovenia's largest steel conglomerate, Sij, is on the cusp of a profound metamorphosis, driven by the lingering effects of the 2022 energy crisis. The company, which employs over 3,500 people, is moving beyond temporary setbacks to fundamentally reshape its operations.

In February, Sij reached a crucial agreement with its creditor banks, securing a long-term refinancing solution for its gross debt, estimated at around 330 million euros. This financial stabilization has paved the way for a more ambitious strategic overhaul.

The company has now embarked on an extensive restructuring program. This initiative is designed to overhaul its business model, foster leaner operations, and significantly enhance overall business efficiency. Sij, historically a niche producer of special steels, had long been considered resilient to the challenges posed by unfair competition from Chinese steel manufacturers.

However, in the last three years, like many other steel producers globally, Sij has felt the impact of intense competition in the international market. The current restructuring aims to equip the company to navigate these global pressures more effectively and ensure its long-term viability.