Ljubljana, Wednesday, 29 July 2015 – Publication of information of intent to strategically diversify SIJ Group operations and enter into the food industry
SIJ – Slovenska industrija jekla, d.d., announces that the company's management has prepared a strategy for the gradual diversification of the Group's operations. This was presented to the company's supervisors at the most recent supervisory board meeting and unanimously approved. The strategy envisages a long-term ownership entry into the food industry.
Among other concrete projects, the supervisory board discussed and confirmed the management's proposal for collaboration in the ownership restructuring and a capital increase in Perutnina Ptuj, d.d.. The offer for a EUR 40 million capital increase in Perutnina Ptuj was discussed by its supervisory board at a meeting held on 28 July 2015 and unanimously approved. The decision still needs further approval by the General Assembly of Perutnina Ptuj. If the General Assembly confirms this offer for the increase in capital by the SIJ Group, this will be the first step toward realizing the strategic business diversification of the SIJ Group and its important long-term investment. The middle-term goal of the SIJ Group is to acquire a majority stake in Perutnina Ptuj, and to actively manage the company in accordance with the Group's corporate governance guidelines.
Ever since the entry of the majority strategic owner in 2007, the SIJ Group has been demonstrating its firm affiliation to the Group's sustainable development strategy, including the preservation of jobs in Slovenia and an all-round development of its employees. In the 2007-2014 period, the Group carried out an extensive investment cycle of more than EUR 400 million, thus significantly improving its competitiveness on the international markets and increasing added value per employee by 30% (to around EUR 55,000 in 2014). Considering the developmental potential of the Slovenian food industry, and Perutnina Ptuj in particular, the SIJ Group will, in the case of a successful capital increase in the largest meat processing company in Slovenia, continue to ensure its further development and expansion of operations.
Due to contractual limitations and the protection of business secrets, SIJ d.d. will not provide detailed explanations connected with this business investment until further notice. The plans connected to the strategic diversification of operations will be further presented by the company's management at a special press conference after the finalization of the procedures connected with the capital increase.
The SIJ Group is the largest Slovenian vertically integrated metallurgist group, ranking among the top market positions on the European and world niche steel markets. The Group comprises five business areas, has 22 affiliated companies in Europe and the USA, and employs around 3,200 people.
In 2014, the SIJ Group created EUR 707.8 million in revenue, a 7% increase in comparison with 2013. Profitability also significantly increased, since the EBITDA increased by 91% , reaching EUR 77.8 million. The 11% EBITDA margin that we achieved puts the SIJ Group among the most successful world steel producing groups in 2014. The EBIT amounted to EUR 39.6 million and increased 18 times in comparison with 2013, and net profit was slightly less than EUR 25 million.
Dr. Denis Mancevič, Director for Corporate Communications