Zinkarna Celje in the first half with a 28% drop in profit

Cinkarna Celje reported a 28 percent drop in profit for the first half of the year, according to local media reports. The company, based in Slovenia, has faced declining demand and rising costs amid economic challenges. The financial results were released following a routine earnings update, with officials noting the impact of global market conditions on the steel industry. The decline in profitability was primarily attributed to lower sales volumes and increased production expenses. According to internal documents reviewed by journalists, the company recorded revenues of approximately €160 million during the period, compared to €205 million in the same timeframe last year. This represents a decrease of around 22 percent. The cost of raw materials, particularly iron ore and coal, rose significantly, squeezing margins. Additionally, energy prices surged, further pressuring operational costs. Cinkarna Celje operates two main facilities in Celje, focusing on steelmaking and metal processing. The plant employs over 1,200 workers, many of whom have been affected by reduced output. Management stated that efforts are underway to improve efficiency through modernization projects and process optimization. However, these initiatives require substantial investment, which could delay recovery in the near term. Industry analysts suggest that the downturn reflects broader trends within the European steel sector. Many companies have struggled with weak demand from construction and manufacturing sectors, both of which have slowed due to inflation and supply chain disruptions. A recent report from the Slovenian Association of Metal Industries highlighted that the sector as a whole saw a 15 percent contraction in activity during the first six months of the year. Employees at Cinkarna Celje have expressed concerns over job security, with some reporting reduced hours and others facing potential layoffs. Unions have called for dialogue with management to address the situation, emphasizing the need for stability in employment. While no formal restructuring plans have been announced, rumors of possible workforce reductions persist among staff. Looking ahead, the company’s leadership has indicated that it will continue to monitor market conditions closely and adjust strategies accordingly. A spokesperson noted that the second half of the year presents opportunities for improvement, especially with the anticipated easing of energy price volatility. Investors remain cautious, however, given the uncertain outlook for industrial demand in the region. For now, the focus remains on maintaining operations while exploring ways to enhance long-term competitiveness.