Ljubljana, 26 October (STA) - The Czech-owned hydro turbine manufacturer Litostroj Power suffered a net loss of EUR 10.78 million at group level in 2018 after it had still ended 2017 EUR 742,000 in the black.
The Ljubljana-based company, which was bought from the state by the Czech energy giant Energo-Pro in 2014, saw net sales revenue drop by 27.9% to under EUR 46 million, shows Litostroj's business report.
The core company of the group, which also has subsidiaries in Canada and the Czech Republic while it sold its subsidiary in Turkey at the end of last year, accounted for EUR 36 million of the net sales revenue, down 19.5% on 2017. It suffered a EUR 10.21 million net loss, after it was EUR 190,000 in the black in 2017.
Litostroj attributes the poor results to ineffective production, the wrapping up of old projects, US sanctions against Iran and delays in the construction of the Mokrice hydro power plant, which was to start this year.
It also mentioned strong competition from China, India and elsewhere, including stepped up competition in Europe.
The company has moreover failed to win any new project in recent years in what used be its traditional markets, including the former Yugoslav region and the Canadian market.
Its future focus is meant to be on development and research and on preserving own production of components with the highest added value, as well as on new markets.
Litostroj Power had a 397-strong workforce at the end of 2018, down 18 on the end of 2017. While confirming that further lay-offs occurred this year, the company would not comment on unofficial reports that between 100 and 150 workers were laid off in March.