Slovak OFZ aims to move part of production to Uzbekistan

By Muzaffar Ismailov in Tashkent July 13, 2023

Metallurgical company OFZ plans to transfer part of its production from Slovakia to Uzbekistan, The Slovak Spectator has reported.

The ferroalloy production company from Oravsky Podzamok has recently faced a sharp increase in energy costs. Insufficient state support has pushed the company to transfer production outside the EU, management noted.

During the year, representatives of the company visited different countries in search of the most suitable place for new production. Top managers considered moves to India, Brazil, Egypt, Azerbaijan and several other countries before settling on Uzbekistan.

"According to our calculations, electricity in Uzbekistan will be about five times cheaper than the price we are currently paying in Slovakia," said OFZ CEO Branislav Klochok.

The company plans to start operations in the new market on the basis of the Uz-Shindong Silicon joint venture. It expects to install a first furnace at the new location and start production in October.

Due to energy cost problems, OFZ had to lay off two-thirds of its employees and stop production for 10 months. Other Slovak enterprises are also complaining about hiked energy costs, blaming this factor, among others, on the transition to green energy being "too fast".

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

How Ukrainian grain wrecked the Polish grain market

The Polish grain market has been thrown into disarray by cheap Ukrainian grain that sent prices plummeting in April, causing Warsaw to impose a five-month ban, backed up by the European Commission. ... more

EBRD 2023: EBRD, EU and ILX to co-operate to boost private-sector finance in Emerging Europe

The European Bank for Reconstruction and Development (EBRD), the European Union, and ILX Management, an emerging market asset manager, have joined forces to enhance private-sector finance in Emerging ... more

EU ban on Russian LNG could backfire

Momentum is building behind calls for the EU to impose a ban on Russian LNG, even though doing so could make it harder for the bloc to stock up on gas supplies before next winter. The EU has ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    7 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    10 days ago
  4. The models are wrong, climate change is accelerating faster than predicted
    2 days ago
  5. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    28 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    30 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    17 days ago

Reports

Dismiss