A Slovakian manufacturer of innovative building materials is facing potential insolvency, a sign of growing economic headwinds in the European construction sector. VST Production, based in Nitra and once employing 130 people, is now struggling with a drastically reduced workforce of 30 as creditors pursue liquidation proceedings. The company, known for its cement-wood composite panels used in high-profile projects across Europe, has seen its fortunes decline following the COVID-19 pandemic and subsequent economic challenges.
A formerly successful Slovakian manufacturer of innovative cement-wood composite building panels is facing potential bankruptcy, highlighting the economic pressures impacting European construction firms. VST Production, which once employed 130 people, is now struggling to survive with a workforce of just 30 as creditors push for liquidation.
VST Production gained prominence through its unique building panels, composed of cement and wood chips, which allowed for faster construction times and reduced labor costs. The company, owned by a Austrian firm, contributed to several award-winning projects across Western Europe, emphasizing environmentally conscious wood processing.
The company’s fortunes began to decline with the onset of the COVID-19 pandemic. Subsequent inflation, a slowdown in construction activity, and a drop in orders created significant financial difficulties for VST. The firm accumulated debt, leading to a change in ownership from the Austrian VST Verbundschalungstechnik to a Slovakian entrepreneur. Denník E first reported on the company’s struggles.
Court Initiates Bankruptcy Proceedings
Despite the change in ownership, the company’s financial situation did not improve. The District Court of Nitra began bankruptcy proceedings this month, following a petition filed by several dissatisfied employees represented by the Cimrák Law Firm. If VST Production cannot demonstrate its ability to meet its financial obligations to the court, it faces liquidation and the sale of its assets.
VST Production’s panels were previously used in high-profile projects, including the Clarion Sign hotel in Stockholm, Scandinavia’s largest hotel with 558 rooms, where the company supplied 43,000 square meters of walls and ceilings. Its components are also featured in a residential complex on Universumstraße in Vienna, which received an Austrian state award for architecture and sustainability in 2012.
Company Faces Mounting Debt
Prior to the pandemic, the Nitra-based factory generated nearly 9 million euros in annual revenue and maintained modest profits. However, by 2022, revenue had fallen to 4.4 million euros, and the company reported combined losses of 4.5 million euros for 2021 and 2022. The company has not submitted financial statements for 2023 and 2024. As a result, debts have accumulated, with 364,000 euros owed to the state in social contributions and an additional 172,000 euros in taxes.
The new owner, Bratislava-based developer Martin Keszocze, who took over the company in 2022 after the departure of the Austrian owner, is attempting to rescue the business. Keszocze was previously a customer of VST, purchasing panels for his own projects. Despite his efforts, the company continues to face challenges.
Management Remains Optimistic
Production manager Vladimír Novák stated that management is still working to prevent bankruptcy. “We are trying to turn things around, and since we still have orders, it might be possible. We are doing everything we can to prevent a complete collapse,” he said.
VST Production currently supplies its systems primarily to Germany, Austria, Scandinavia, the United Kingdom, and the Netherlands. Whether this will be enough to ensure the company’s survival as its future is decided remains to be seen.
