Viennese steel retailer Pisec bankruptcy: Ukraine war meets industry hard!

Viennese steel retailer Pisec bankruptcy: Ukraine war meets industry hard!

Vienna, Österreich - The Austrian steel industry is experiencing a dramatic setback. The traditional steel dealer Pisec is bankrupt, as was announced on April 17, 2025. The Pisec Group Austria GmbH as well as the Pisec Group Holding GmbH . The bankruptcy was officially confirmed by the AKV and KSV creditor protection associations. In view of the high liabilities of around 209 million euros, the KSV assumes that the company's continuation cannot be displayed.

The origins of bankruptcy are complex. The Ukraine War, coupled with global faults on the raw material markets, led to a sharp decline in demand, especially in the USA. In addition, many inventory and traditional trade relationships, such as those with the Belarusian steelworks BMZ, have been significantly restricted by sanctions. Ultimately, this means that a total of 26 employees and 59 creditors are affected by the bankruptcy.

global challenges for the steel industry

The problems of the Pisec Group are part of a larger, global trend. steel company in Germany increasingly warn of the business risks that result from the Ukraine War. The steel giant Salzgitter even spoke of “barely quantifiable forecasting forecasts” with regard to the economy and the exploding energy prices. These difficulties are also reflected in the Austrian situation, where the prices for steel increase sharply, while the production of many manufacturers is severely restricted.

The shift in steel production and the restrictions by the war also led to an increase in costs for raw materials and transport. This applies not only to manufacturers in Europe, but also steelworks, but also steelworks, such as ArcelorMittal in Ukraine, which suffer despite high warehousing, with considerable logistical problems, Especially when it comes to carbon procurement.

The effects on the market

Due to the crisis, steel prices could stabilize at a high level, while the premia for German corporations could potentially increase thanks to the increasing demand for auto suppliers and other industries. One example is the decline in the imported steel quantities from regions such as Russia and Ukraine, which has a dramatic effect on prices.

The long-term effects of the Ukraine war on the steel industry draw a dark picture. Although the reconstruction of Ukraine plays a role in the future, the industry is currently looking for stabilizing factors. The plant managers in Kriwi RiH have to work with reduced performance as far as the entire European steel supply is concerned.

Finally, it can be said that the bankruptcy of Pisec Group Austria GmbH and Holding GmbH is not only an isolated event, but also a significant warning of the major challenges that affect the entire steel industry in Europe. The markets remain tense and many companies have to prepare for further uncertainties.

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OrtVienna, Österreich
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