SIJ Acroni opens a new line worth EUR 32 million for the heat treatment of quarto plates

26.09.2016

Jesenice, Friday, 23 September 2016 – SIJ Acroni opens a new line worth EUR 32 million for the heat treatment of quarto plates

At today's ceremony, SIJ Acroni presented an investment worth EUR 32 million for a new HTL (Heat Treatment Line), for the heat treatment of quarto plates. With a new, modern line that combines three processes for the treatment of quarto plates that have, until now, been separated – sand-blasting, hardening, and tempering, and enables efficient production of products for the most demanding applications, with which SIJ Acroni will enter new markets. The guest of honor at the inaugural ceremony for the investment was dr. Milan Brglez, President of the National Assembly of Slovenia, who also toured a part of the production line in SIJ Acroni and held a meeting with the management of the SIJ Group.

SIJ Acroni today presented a new investment worth EUR 32 million – the HTL (Heat Treatment Line), for the heat treatment of plates. The SIJ Acroni company has worked extensively to update its product range in recent years – reducing the production of simple products, expanding its portfolio of new, demanding steel products, and the expansion of market share in new and niche segments for the most demanding products. The new line will facilitate a great leap in this endeavor – its low-temperature furnace and cooling system will enable integration of three, hitherto separate, processes for the treatment of quarto plates – sand blasting, hardening, and tempering. The low-temperature furnace will precisely control the technologically optimal temperature. The advanced cooling system will provide cooling of the most demanding nickel alloys to all types of special steel varieties.

The additional capacity will allow SIJ Acroni to enter new markets and to meet the increased demand for special quarto plates, especially in the segment of advanced high-strength steel and tool steel for cold work. Mag. Peter Čas, the Managing Director of SIJ Acroni, said, "The new heat treatment line will, at its peak production, enable the increase of annual production and sales of special quarto plates for 80,000 tons, while the direct result of the first year of operation is estimated at forty to fifty million Euros in increased revenue. This way we will be able to meet the needs of the most demanding customers in the automotive, chemical, energy, and gas industries and, at the same time, significantly increase the value of sales. The new line will also create twenty-five professionally demanding new positions."

"Specialization in the segment of demanding steel products with high added value, which are less dependent on cyclical fluctuations, finalization of products, and the synergy of the cooperation of all companies in the SIJ Group are all building blocks of success and further growth of the Group. Continued investment is crucial in order to meet these objectives. Today's opening of the new line for the heat treatment of plates is one of the largest investments in the investment cycle of 2014-2020, with which we will widen out position in this very interesting technological market segment," said Chairman of the Board of the SIJ Group, Anton Chernykh.

President of the National Assembly of the Republic of Slovenia, Dr. Milan Brglez said that the SIJ Group generates more than 87% of its total revenue in foreign markets, making it one of the most internationalized Slovenian companies. The management has vision and the SIJ Group manufactures outstanding products distinguished by high quality, which makes it competitive in the global marketplace. "Innovation, investment in research and development, and a competitive edge are qualities that are missing in many companies today, but are qualities this company possesses, and, which make it remarkable and successful. You have a vision and a need to grow. Not just for today, but for the future."

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The SIJ Group is the largest Slovenian vertically integrated metallurgical group and as such occupies a leading position in niche steel markets in Europe and worldwide. In addition to it metallurgical work (its principal activity), the SIJ Group is also invested in the food industry (Perutnina Ptuj), which, together, employ about 7,000 people in Slovenia and abroad. In the first half of 2016 the SIJ Group recorded revenue of EUR 413.9 million, an operating profit before depreciation and amortization (EBITDA) of EUR 60.1 million, and a net profit of EUR 24.6 million. The SIJ Group is present on more than 80 global markets with its products, and ranks as one of the largest Slovenian exporters.

For more information:
Dr. Denis Mancevič, Director of Corporate Communications
Email: denis.mancevic@sij.si