Fortischem (source: Fortischem)
The chemical company Fortischem, a major employer in central Slovakia, may be about to lay off hundreds of its employees.
Fortischem, located in the mining town of Nováky, Trenčín Region, says that it is in a difficult economic situation due to the increasing prices of utilities and the sanctions against Russia. The company, which had been in financial difficulties already last year, is complaining about missing government compensation system for businesses.
362 job positions are at risk due to the critical situation.
“The different approach to the regulation of energy prices in Europe does not allow our company to translate energy costs into the prices of our products, making our company uncompetitive," noted chairman of the company’s board, Jan Křička, as quoted by the TASR newswire.
Major role in pandemic
Fortischem is based in the central-Slovak town of Nováky in the Trenčín Region, mainly known for coal mining. It produces raw chemical materials, and played a crucial role during the Covid-19 disease as Slovakia's only producer of chlorine used for water purification and as a disinfectant, TASR wrote.
The chemical company is one of the largest employers in the region. However, it has been experiencing problems for a long time. Since 2021, Fortischem has been controlled by the Prague-based CM-CREDIT company of the KAPRAIN financial group.
Last year, Fortischem ended up in the red with a loss of more than 9.9 million euros, and is currently under temporary protection due to the threat of bankruptcy, TASR reported.
The war in Ukraine exacerbated the company's problems. The Dennik N daily reported in April this year that Fortischem cut production down to 30 percent.
"Our company's existence is at risk due to the extremely high energy demand of our production and our dependence on eastern markets," the company told the daily back in April.
Major players in employment out
Several production companies have already reported difficulties due to increasing energy prices and missing state support.
In early July, the Orava-based metallurgical company OFZ announced lay-offs of about 150 employees. About 200 more employees are currently on vacation leave. With energy prices increasing, the company said that it could not compete with other EU companies.
In the same month, the aluminium manufacturer Slovalco, based in Žiar nad Hronom, Banská Bystrica region, laid off hundreds of employees in response to increasing energy prices, emissions restrictions and decreasing aluminium prices. The company is considering a complete shutdown of its plant, the only aluminium manufacturing facility in Slovakia. Slovalco is of strategic importance for Slovakia, since it supplies car companies with products.
Earlier this week, the Košice plant of the American steelmaker U. S. Steel started the planned temporary shutdown of a blast furnace. However, USSK insisted that the temporary shutdown is not linked to the current situation on the market. The company did not specify how many of their employees were affected by the shutdown. On the other hand, the company’s representatives called for the Slovak government to react in relation to increasing energy prices. At the same time, U.S. Steel Kosice unveiled what it calls its “motivation programme” for employees to file resignations by agreement.
