The engineering company Ostroj from Opava will be in the red again this year after four years of losses. At the same time, the Moravian-Silesian company managed to conclude agreements with important companies in the USA, which will help Ostroja expand into the local market with equipment for coal miners.
“In terms of sales, we will definitely be significantly above last year. And on top of that, we will get into the black again,” said Ostroje CEO Aleš Martínek in an interview with SZ Byznys.
Ostroj produces a wide range of engineering products. For example, it supplies mobile formwork for the construction of the Prague metro D, makes conveyors for transporting material, frames for electric motors, also produces mining machines for coal mining or loading platforms for airports. The total turnover of Ostroj last year was 1.4 billion crowns. In the same year, the company lost 92 million crowns.
“But if we look, for example, at EBITDA (profit before interest, taxes and depreciation, editor’s note), the company has always been in the black. This clearly shows that she is healthy and manages well,” emphasized Martínek.
In past years, the company struggled with the consequences of the covid pandemic, high energy prices, the sharp increase in the price of input materials and the effects of the war in Ukraine. The company previously supplied equipment, for example, to miners in Russia and in the Ukrainian Donbas, a large part of which is now occupied by Russia. But the war changed everything.
“In 2022, we canceled our branch in Russia in Siberia, and until then we are not supplying anything to Russia,” noted the CEO of Ostroj.
Instead of eastern markets, the Opava company began to look more for opportunities in, for example, Australia or the United States. That is, in countries where, despite the tightening of conditions, coal mining is still expected in the coming years.
“A number of companies in the United States are planning relatively large investments in the renewal of mining facilities in the next five years. That’s why we entered the market there at the right time,” said Aleš Martínek.
Photo: Oysters
Ostroje’s journey to the USA will be facilitated by the contract signed this year with the large local company Swanson Industries. The two companies have already jointly developed and tested a prototype of mechanical reinforcements adapted to the American market.
“We adapt our products to the requirements of American customers, who place great importance on the robustness and high reliability of mining equipment. The required service life of mechanized reinforcements in the USA is sixty thousand work cycles, which is one hundred percent more than the European standard,” explained Marek Čmiel, director of the Mining and Industrial Technology Division of Ostroje.
According to the annual report, Ostroj employed 735 people last year. The owner of the company is businessman Vladimír Trochta.
Ostroj’s Rocky Road to Recovery: A Cheeky Commentary
The engineering company Ostroj from Opava has once again found itself in a precarious position. After four glorious years of losses—it’s like they were trying to win the ‘Company with the Most Red Ink’ award—they are back at it with more red ink this year. But fear not! They’ve managed to land some big fish in the USA to help with their grand plan; it’s as if they watched a motivational video and decided to branch out into coal mining equipment!
CEO Aleš Martínek says sales are “definitely significantly above last year.” That’s the engineering equivalent of saying “Trust me, the check is in the mail.” But hey, at least they’ve found a way to make a few bucks while they’re at it! One can only hope they don’t trip over the paperwork again like they did with the Russian branch—talk about an awkward breakup!
With a turnover of 1.4 billion crowns last year, Ostroj somehow managed to lose a staggering 92 million crowns. It’s like hosting a dinner party and realizing you’ve burnt every dish. Not to worry! Martínek assures us that, “If we look at EBITDA, we’ve always been in the black.” Well, at least the company has a good side, even if it’s not the one that faces the customers.
It’s been a rough few years for Ostroj. Between the pandemic, soaring energy prices, and all the chaos in eastern Europe, it sounds like they’ve been playing corporate whack-a-mole. Closing down their Siberian branch is one way to trim the fat! Meanwhile, they’re now setting their sights on the land of opportunity—Australia and the USA, which could be filled with golden nuggets if they play their cards right.
They’ve struck gold (or at least they’re hoping to) with a contract from Swanson Industries. They’re adapting their products to meet the hefty standards of American mining—where everything is just a bit bigger, both in terms of machinery and, let’s be honest, expectations. Sixty thousand work cycles? Crikey! British engineering sounds like an artisanal tea shop by comparison!
Considering Ostroj employs 735 people, here’s hoping they can all look forward to not just survival, but perhaps some well-deserved Christmas bonuses for a change. But for now, there’s still a long road ahead. We all love a triumphant comeback story, but let’s not forget: it would be just like watching the last season of *Game of Thrones*—filled with some questionable decisions and a few tragic losses.
So, here’s to Ostroj! May they navigate the coal mines of corporate chaos with the grace of a gazelle—preferably one that knows how to avoid pitfalls and does a little jig when they finally make it into the black!
After weathering four years of financial difficulties, the engineering powerhouse Ostroj, based in Opava, is projected to experience its first profitable year since before the pandemic. In a significant turn of events, the Moravian-Silesian company has successfully negotiated partnerships with key players in the United States, positioning itself to penetrate the local market with advanced equipment tailored for coal mining operations.
“In terms of sales, we will definitely be significantly above last year. And on top of that, we will get into the black again,” emphasized Aleš Martínek, CEO of Ostroj, during an enlightening interview with SZ Byznys. The optimism surrounding sales is palpable as the company anticipates a turnaround this fiscal year.
Ostroj boasts a diversified portfolio of engineering solutions, ranging from mobile formwork designed for the construction of the Prague metro D to sophisticated conveyors for material transportation. The company also manufactures electric motor frames and specialized mining machinery tailored for coal extraction, along with loading platforms essential for operations at airports. Last year, the company posted a total turnover of 1.4 billion crowns, albeit with a concerning loss of 92 million crowns.
“But if we look, for example, at EBITDA (profit before interest, taxes, and depreciation, editor’s note), the company has always been in the black. This clearly shows that she is healthy and manages well,” Martínek asserted, emphasizing the company’s financial stability at an operational level despite its prior losses.
The past years have posed formidable challenges for Ostroj, including grappling with the lingering effects of the COVID-19 pandemic, soaring energy costs, and a steep rise in input material prices exacerbated by the ongoing war in Ukraine. Previously, Ostroj supplied essential equipment to miners operating in Russia as well as those in the Ukrainian Donbas region, much of which is currently under Russian control, making these markets untenable.
“In 2022, we canceled our branch in Russia in Siberia, and until then we are not supplying anything to Russia,” noted the determined CEO, reflecting on a strategic pivot in response to global geopolitical changes.
With eastern markets now off the table, Ostroj is actively exploring new horizons, seeking opportunities in countries like Australia and the United States, where coal mining is poised to remain viable for years despite tightening regulations and market pressures.
“A number of companies in the United States are planning relatively large investments in the renewal of mining facilities in the next five years. That’s why we entered the market there at the right time,” added Martínek, underlining the timely nature of this strategic expansion.
Facilitating Ostroje’s entry into the U.S. market is a recent contract with Swanson Industries, a prominent local firm. Together, the two companies have collaboratively developed and rigorously tested a prototype of mechanical reinforcements uniquely adapted for American operational standards.
“We adapt our products to the requirements of American customers, who place great importance on the robustness and high reliability of mining equipment. The required service life of mechanized reinforcements in the USA is sixty thousand work cycles, which is one hundred percent more than the European standard,” explained Marek Čmiel, director of the Mining and Industrial Technology Division of Ostroje, highlighting the superior demands in the U.S. market.
According to the annual report, Ostroj employed 735 people last year, showcasing its commitment to providing stable employment in the region. The helm of the company is held by businessman Vladimír Trochta, whose leadership has guided Ostroj through turbulent times toward potentially lucrative new ventures.
Esponse to the shifting geopolitical landscape.
Now, instead of focusing on eastern markets, Ostroj has turned its gaze to opportunities in Australia and the United States—nations that are still committed to coal mining operations despite evolving energy landscapes. “A number of companies in the United States are planning relatively large investments in the renewal of mining facilities in the next five years. That’s why we entered the market there at the right time,” Martínek commented, highlighting the company’s strategic timing and foresight.
This pivotal transition to the American market is underscored by a recent contract with Swanson Industries, a significant local player. Together, they have been developing and testing a prototype for mechanical reinforcements, specifically designed to meet the rigorous needs of the American mining sector. “We adapt our products to the requirements of American customers, who place great importance on robustness and high reliability of mining equipment,” explained Marek Čmiel, director of the Mining and Industrial Technology Division of Ostroj. Notably, the US standard requires an impressive sixty thousand work cycles, representing a significant increase compared to European standards.
With a workforce of 735 employees and led by owner Vladimír Trochta, Ostroj is on a hopeful path toward recovery. If they continue to adapt and innovate, there’s a good chance that this year’s financial outlook might not just be optimistic rhetoric—perhaps it’s the beginning of a successful recovery story, indeed!
So, as the team at Ostroj aims to navigate these tumultuous corporate waters, all eyes will be on their ability to maintain momentum, diversify effectively, and, of course, finally transition from losses into long-term profitability. Let’s hope they can solve their operational puzzle without too many more twists and turns!
Welcome to the wonderful world of Ostroj, where every year feels like Groundhog Day in reverse—losing money like it’s going out of style, but hey, they’re planning on getting back in the black soon! That’s like saying, “I plan on shedding those pounds before next Christmas.” Spoiler alert: The Christmas pudding can be a tough opponent!