Pandemic pushes Štore Steel into the red

Štore – Štore Steel, a leading Slovenian steel producer, returned to loss in 2020 as a result of the pandemic after operating with a profit for eight years. Its loss reached EUR 2.5 million, which compares to a profit of EUR 2.8 million in 2019. Revenue dropped by 24% to EUR 85.7 million.

The loss resulted from lower activity of the global automotive industry due to the pandemic, the company’s director Jani Jurkošek told the STA.

With an epidemic declared in Slovenia, the company’s production was at half capacity from May until the end of September.

However, demand for Štore Steel’s products significantly changed in October, buttressed the bottom line.

The situation is more encouraging this year as demand outstrips supply, while there are some problems in the supply of raw materials, which are becoming more expensive.

“Our original plan was to get back to the 2019 level, but given the market situation, we’ll surpass it,” Jurkošek said, adding the plan is almost EUR 105 million in net sales revenue and EUR 2.5 million in net profit.

The company, which has 480 workers, sold almost 112,000 tonnes of steel last year, a drop of nearly 16% over 2019 and nearly 18% below plans. Investments reached EUR 893,500.

Between May and August, the bulk of the employees were put on furlough, while the company carried out its annual overhaul and tested some new technologies.

Štore Steel’s largest owners are tool maker Unior, which holds almost 30%, followed by Kovintrade and Dinos, each holding just over 15%.

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