Illustrative image. (source: TASR)
Slovmag Lubeník is one of the key companies in the Revúca district, a region with above than average unemployment rate. Due to the ongoing European steel crisis, it has found itself in big trouble. The company thus joins Želieziarne Podbrezová and US Steel Košice steel makers who have also been experiencing difficult times, reports the Denník N daily.
In the last two years, Slovmag Lubeník has laid off 200 employees out of 500, lost half of its sales, and is in the red. Not even big savings that began in 2023 helped. The company, owned by German magnesite processor Intocast, produces refractory magnesite materials used for furnace linings in steel mills, cement plants and lime production.
Over the past two years, the company's sales have fallen from €62 million to €30 million. Sales of basic building materials fell by as much as 36 percent last year and sales of refractory materials by 29 percent.
More expensive energy and materials did not help the situation either. Although during the recent energy crisis solar power plants were installed on the roofs of the halls, they only cover five percent of electricity consumption.
The company also had to significantly reduce investments, spending only €110,000 on the most necessary repairs last year.
However, the company also states in its annual report that this year could be better, thanks to new business opportunities and product innovations.
Until recently, it exported heavily to Russia as it was controlled by Russian Magnezit Group. They sold Slovmag Lubeník to the Germans shortly before the war in Ukraine started in 2022. Due to the war, the export to Russia was gradually reduced. It is expected that turning to Western countries could help.
Slovmag Lubeník sells refractory materials mainly in Slovakia and exports only a third of the production. It sells basic construction materials all over the world.
