SIJ – Slovenian steel group´s strategy

The long term strategy behind the sustainable development of SIJ – Slovenian Steel Group by 2025 assumes somewhat more considerable changes in the production mix and consolidation of the Group, as well as centralization of key support business processes. The latter would allow the implementation of numerous business synergies within the Group, as well as the optimization of production and other functions, which should have a positive effect on business profitability. Accordingly, the existing vertical integration of the Group will be promoted, mainly through the development and widening of the Group´s own service and sales network in key markets, such as the EU and USA. Together with the production of progressively more demanding kinds of steel, that strategy should open the door to new market segments with a higher added value. 

The strategy includes the following SIJ – Slovenian Steel Group development guidelines:

  • Vertical integration of the Group: institution of the Group´s own division for waste collection, widening of the Group´s own service and sales network, also in rapidly-growing markets. 
  • Production of highly technological tailor-made steel products: investment in new equipment to expand the range of strategic products. SIJ – Slovenian Steel Group intends to become the most successful specialized producer of steel products within the European area.
  • We will come closer to end users through our own sales network, comprising sales and processing centers, which will serve to provide direct feedback about market conditions and clients´ needs.
  • Highly qualified and motivated employees.

Key strategic goals for the period 2014 – 2025:

  • Optimization of the production mix and expansion of production capacities for the production of products with a high added value (key investments in 2015 and 2016, which have been realized from 2014 onwards), which should ensure the long term growth of EBITDA.
  • A long term reduction in net financial debt and optimization of an NFD/EBITDA ratio (lower than 3.0).
  • Consolidation of the Group and centralization of central support business processes.
  • Major development of competences at all levels.
  • Advances in research and development in new types of steel as well as setting market trends in niche segments (development of our own steel trade marks).
  • Cost and production-related optimization, moving to lean production.
  • Entering new markets (rapidly-developing markets), preservation of European market share (stainless thick sheets, tool steel) as well as the expansion of market share in new specialized segments (special thick sheets, steel with specific performance). 

"SIJ Group aims to become the most successful niche manufacturer of steel products in Europe."