Kočevje, 24 April (STA) - The chemical company Melamin returned to profit in 2023 after it was hit with a deadly explosion in 2022 and subsequently recorded its first annual loss in decades. By the end of 2023, the company has restored 70% of its production capacities.
The Kočevje-based company has said in a press release that it ended 2023 with nearly EUR 1.1 million in profit, after it recorded a EUR 1.8 million loss in 2022. Sales revenue reached EUR 45.4 million in 2023, down 24% year-on-year.
Melamin said its business was affected by the war in Ukraine, the situation in the Middle East and cargo transport difficulties. It also noted the increasing prices of key raw materials.
In May 2022 there was a massive explosion in the plant after a chemical substance was pumped into the wrong tank from a truck. Seven people died as the result of the explosion and several more were injured.
The blast also damaged production capacities, which the company has been working to restore. By the end of 2023 it was able to restore 70% of the capacities.
The company is planning to move part of production to a different location and has performed a preliminary study, the results of which will be presented this year.
It is likely that changes to the national spatial plan will be required to set up the new facilities, which will require additional effort, time and the support of the state and municipality, the company said.
Melamin expects to restore 80% of its production capacities by the end of this year. In the next two years it aims to restore the remaining 20% by launching the production of environmentally-friendly resins to make up for the lost production of epichlorohydrin resins.
By the end of the year, the company expects to launch production of highly resistant melamine fleece. Additional investments will be needed to optimise production so it could significantly contribute to the company's results in the coming years.
