Ravne na Koroškem, 21 October 2021 _ With an investment of EUR 6.8 million, SIJ Metal Ravne has taken possession of a new ESR4 Electro Slag Remelting plant that will enable an increase of more than 60% in the production of high-quality ESR steels, which are in great demand by the most demanding sectors, e.g. the energy, oil, gas and aviation industries.
SIJ Metal Ravne, the second largest company in the SIJ Group and the third largest producer of tool steels in the European Union, has taken possession of a state-of-the-art 20-ton ESR4 Electro Slag Remelting plant, which will meet the growing demand for ESR steels. The investment worth a total of EUR 6.8 million, of which EUR 3.7 million is earmarked for the ESR4 plant, enables greater production of purer steels with better malleability, and ingots of up to 20 tons, thus further expanding sales and consolidating the position of SIJ Metal Ravne in the demanding niche market for tools and special steels. With the investment, SIJ Metal Ravne will strengthen its position on the tool steel market and enter even more decisively into the field of exceptionally demanding, stainless and other special steels, the final consumers of which are some of the most demanding sectors, such as the energy, oil and gas industries. Last year, with its ISO 9100 certification, SIJ Metal Ravne entered the intensively developing market of the aviation industry.
"The investment in ESR4 will enable SIJ Metal Ravne to increase production and sales of high-quality products in the higher price range for approximately 60%. These are purer steels with better malleability, as well as improved mechanical, anti-corrosion, electrical, magnetic and other properties, for which there is growing demand in the energy, oil, gas, aviation, and other industries," said Borut Urnaut, CEO of SIJ Metal Ravne. The new ESR4 plant differs from the other three both in its construction concept and mode of operation. It has two static melting points, which enable work on two ingots at the same time.
"With the new ESR4 plant, SIJ Metal Ravne has completed the first phase of a 100 million euro investment cycle – this spring they launched a new, fully automated forge heat treatment line, the investment for the dedusting device is coming to an end while that for the rolling mill automation continues," said Tibor Šimonka, Chief Vice President of the SIJ Group, emphasising that: "The SIJ Group will allocate approximately 300 million euros for new steel production and processing technologies by 2025."
Minister of Economic Development and Technology Zdravko Počivalšek: “The fact is that development cannot be stopped. We can only decide - will we step on this train of development or will we follow it? This applies to both companies and countries. Today, more than ever, development is linked to the green transition and digitalisation, which is so much more challenging in energy-intensive industries, but also brings more benefits. As the saying goes, the best steel is made in the hottest fire. In order for this fire not to go out, it is necessary to constantly update and transform, which is also the key purpose of the new Slovenian Industrial Strategy 2021-2030, which was adopted by the Government of the Republic of Slovenia in June this year. Together in dialogue with the economy, we realized that we need an industry that will be green, creative and smart, and I am happy that we will be able to rely on the SIJ Group on our way to a climate-neutral Europe. "
Ravenska železarna, the predecessor of today's SIJ Metal Ravne, was one of the pioneers of the ESR process, when in 1972 it was one of the first in the world to introduce this advanced method of steel processing into its production programme.
The SIJ Group is the largest Slovenian vertically integrated metallurgical group. Its products occupy leading positions in European and global niche steel markets. It is among the ten largest business groups in Slovenia, among the largest Slovenian exporters and among the most important employers in Slovenia.
According to unaudited business data, in the first half of 2021, the SIJ Group generated EUR 451.6 million in sales revenue (24.4% more than during the same period last year) and EBITDA of EUR 43.6 million (91% more than during the same period last year). In the first half of 2021, the Group allocated EUR 29.1 million for investments (EUR 10 million more than during the same period last year). In the first six months of 2021, the SIJ Group operated positively and generated a profit of EUR 10 million.
SIJ – Slovenska industrija jekla, d.d.
Katja Krumpak, Head of Corporate Communications
Phone: +386 1 242 98 59
Mobile phone: +386 41 814 041