As part of the restructuring, the company will cut around 9% of its workforce
The Slovenian steel producer SIJ Group has launched a transformation programme in response to significant changes in the European steel industry and its own operational challenges. This is stated in a company press release.
The programme includes a change in business model, improving business efficiency and implementing industry best practice standards.
In particular, as part of the restructuring, the company plans to reduce its workforce by approximately 300 employees (9% of the total workforce) this year.
The staff reductions will mainly affect roles in shared services and production administration. It is expected that the workforce adjustment will be gradual and achieved through softer measures, such as natural attrition, retirement and limited replacement hiring.
“It is expected that the improvement in the financial situation, together with increased resilience and competitiveness, will help to preserve the majority of the group’s current 3,500 jobs,” the company stated.
At the same time, the transformation will be based on a redesign of the business model, which involves decentralisation and the organisation of operations around value chains, with a focus on two production sites – in Ravne na Koroškem and Jesenice. These efforts will be led by the group companies SIJ Acroni, SIJ Metal Ravne and SIJ Ravne Systems. Each will coordinate business activities within its own chain – from raw material and steel production to delivery to customers.
The new business model also involves a shift from the previous focus on production volumes to a stronger customer orientation and the creation of greater business value.
SIJ will also implement integrated production and sales planning.
“This will improve capacity utilisation, increase the share of higher-margin orders, enhance customer service quality and provide greater predictability for employees in their day-to-day work. All these measures will have a direct positive impact on business performance indicators,” the group notes.
The company expects to strengthen its sales in niche markets such as energy, aerospace and defence, whilst optimising its portfolio with a focus on profitability and further directing research and development towards steel grades with higher added value.
As Christian Bauer, a member of the board and chief restructuring officer of SIJ Group, noted, this is the largest transformation programme currently underway in Slovenia, supported by both the company’s banking partners and shareholders. The immediate priority is to improve cash flow, followed by enhancing operational efficiency, restoring profitability and creating a solid foundation for the future, including the search for a strategic partner.
It should be noted that, in 2025, SIJ Group reduced steel production by 5.2% year-on-year – to 433,100 tonnes.
