Destilacija Teslic recovering – Production at 75% capacity, new investments announced

After a difficult last year when it lost a significant part of its income due to the suspension of operations of its main customers from the ferrosilicon industry, Destilacija Teslic is recording a recovery in business, increasing production and investing in automation, while for the coming period it is also announcing the development of new products in the field of household and automotive chemicals.

The shutdown of three large charcoal buyers in Europe last year reduced the company’s income by about 20 to 30 percent, which is why it took Destilacija almost a year to find new markets. Company director Zoran Skrebic told “Glas” that the situation was now stabilizing, that production had reached about 75 percent of capacity, and that he expected the year to end with profit.

Last year extremely difficult

– Last year was extremely difficult. Ferrosilicon producers, who were our main charcoal buyers, in Europe have mostly all stopped operating. We worked with three manufacturers, namely Ferosilicon from Mrkonjic Grad, BSI from Jajce and RWE Silicon from Pocking in Germany. These companies stopped production – said Skrebic.

That is why, as he says, it took the company almost a year to find new markets.

New markets

– This year we are working with Lidl, Kaufland, Spar, Fortenova Group and many other, smaller retail companies. We are slowly returning to stabilization – emphasized Skrebic.

Last year, the number of employees was reduced, but there were no layoffs of workers with permanent contracts.

– Those who met the conditions for retirement left, as well as workers who had temporary contracts. Last year, we did not even work with all the plants, but with approximately one third of the capacity – said Skrebic, adding that this company currently had about 275 employees, while in 2024 there had been about 320.

Automation of production processes one of priorities

Improvements are planned in two key segments:

• Wood preparation - automation of the process before wood enters the production plants.
• Packaging - new lines should increase the packaging capacity of finished products.

In addition to finding new markets, the biggest challenge for the company is the growth of operating costs, while buyers on the European market are simultaneously looking for lower prices.

– We have constant pressure on cost growth, while, on the other hand, there is a constant demand for price reductions in the European market. Our competitors are companies from all over the world, including Asia and Africa, where business costs are often lower – said Skrebic.

That is why one of their priorities is the automation of production processes.

– We are trying to automate all production processes from preparation to packaging of finished products. The goal is to make work easier, more profitable and more efficient so that we can withstand costs that are constantly growing – said Skrebic.

Around 85 percent of the company’s total costs are wood, wages and energy, and costs, as he states, have grown in all three segments. Automation will primarily relate to the preparation of wood and the packaging of finished products.

– Wood must be prepared so that it can enter the plants. We want automation here, as well as in the segment of packaging of finished products, where certain lines would increase packaging capacity – said Skrebic.

Certain projects have already started and should be completed by the end of this year or early next year, while larger investments will probably have to wait. The company also plans to increase the production of charcoal briquettes, for which there is a high demand.

– We could sell more if we are able to produce it. We have a demand for higher sales, but we need to increase capacity – said Skrebic.

According to him, the company has not given up on plans for new products, mainly in the field of household and automotive chemicals, but their implementation will depend on new investments.

– We have identified certain products that we could produce here, but first we have to return basic production to normal, and only then can we continue to expand certain capacities – said Skrebic, adding that, when it came to business results, he expected the company to end the year in the plus.

Destilacija Teslić

Ferosilicon

Zoran Škrebić

ferrosilicon industry

recovery of operations

increase of production

new markets