AGP Executive Report

Slovalco Restart: Slovakia’s aluminium sector gets a boost as Slovalco begins the gradual restart of primary production at Žiar nad Hronom, aiming for 75,000 tonnes in the first phase and backed by at least €100m investment, with electrolysers coming online and emissions-compensation measures to keep output competitive. Cybersecurity & Industry: Slovak firm ESET reports a Russia-aligned attack technique (“GuardBreaker”) used to disrupt AI-assisted analysis by inserting nuclear-weapon bait into malicious scripts, targeting Ukraine-linked sectors. Defence Supply Chains Under Strain: Poland launches a terrorism probe into a fire at WB Electronics that makes drone components for Polish and Ukrainian militaries, with prosecutors suspecting sabotage tied to foreign intelligence; the incident follows a wider pattern of suspicious fires at defence-linked sites across Europe. EU Policy Watch: A new EU proposal could let Cyprus restrict short-term rentals in “areas of housing stress,” but only after authorities prove where pressure exists and how much short lets contribute. Energy/Geopolitics: EU foreign ministers kick off talks on financing Ukraine for the coming year, with sanctions and funding set to dominate the autumn agenda. Local Business & Jobs: Slovalco’s restart is framed as job protection and industrial competitiveness, while broader EU energy and emissions rules keep shaping investment decisions.

Slovak Industry Restart: Slovalco has ceremonially restarted aluminum production at its Žiar nad Hronom smelter, with Fico saying full capacity could reach 17% of Europe’s primary aluminum output, after energy-price and compensation hurdles were addressed via a government deal covering emissions compensation, nuclear fund relief and electricity supplies for 10 years. Defense Supply Chain Under Strain: Poland is investigating a suspicious fire at WB Electronics in Skarżysko-Kamienna, where drone components are made; masked entry was reportedly caught on camera and arson is not ruled out, adding to a wider pattern of incidents at defense-linked sites across Europe. Industrial Adoption in Manufacturing: Reinforce3D and 3Dees are teaming up to push CFIP additive reinforcement across Central and Eastern Europe, with 3Dees acting as a regional sales and technical partner for Slovakia and the Czech Republic. Energy-Heavy AI Push: An LSUS professor proposes an independent geospatial and environmental research institute tied to the surge in data centers, aiming to study impacts on air and water quality alongside industrial development. EU Macro Watch: Slovakia’s 2026 growth forecast was slightly revised down to 0.8% in a National Bank of Slovakia survey, while inflation is held at 3.7%.

Extreme Heat & Drought: Central Europe’s rivers and fish farms are taking a beating as record heat dries waterways, with losses running into millions and restocking expected to take years. Ukraine Trade Pressure: Ukraine’s grain exports are being squeezed by Black Sea port blockades, raising fears of a wider economic shock for farmers and logistics. Slovakia Macro Outlook: Bank analysts have nudged Slovakia’s 2026 growth forecast down to 0.8%, while inflation expectations stay at 3.7%. Industrial Tech Adoption: Reinforce3D and 3Dees are teaming up to make Continuous Fiber Injection Process (CFIP) reinforcement easier to deploy in Central Europe, with 3Dees taking on sales and technical support for Slovakia. Energy-Heavy Industry: Slovalco’s aluminium plant in Žiar nad Hronom is restarting furnaces, framed by PM Fico as a strategic win for Europe’s primary aluminium supply. Security for Industry: Slovak prosecutors say arsonists tried to burn a Ukrainian drone-maker’s plant (Skyeton), with suspects detained and extradition steps underway. Water & Infrastructure Risk: A magnet fisher on the Danube pulled up a 1,500-pound WWII mine near Virt, a reminder that drought can expose dangerous wartime remnants.

Defence & Security: Slovak police and ÚBOK foiled an arson plot targeting the Skyeton drone factory near Prešov, detaining three foreign suspects (two in Slovakia, one in Germany) and seizing an incendiary mix described as napalm, tools and a plan; Slovakia’s President Pellegrini urged stronger protection for defence-industry firms after the attempt. Energy & Industry: Prime Minister Robert Fico marked the restart of Slovalco’s aluminium production in Žiar nad Hronom, saying full capacity could account for 17% of Europe’s primary aluminium, backed by state-aid reform and a long-term electricity supply deal plus €100m owner investment. Manufacturing: Jindal Stainless is expanding coin blanks capacity by 20% to 12,000 tonnes, supplying mints including Slovakia’s, as demand for non-paper currency grows. Climate & Supply Chains: New reporting highlights persistent PBDE flame-retardant contamination across Europe, with detections even in Slovakia, while broader coverage warns heat and drought are already hitting crops and fodder and could raise insurance costs. Infrastructure & Tech: Orange Slovakia signed a 10-year solar PPA and Enery/Orange struck a green power deal, as digital identity and post-quantum security continue to spread across digital services. Trade & Geopolitics: A US sanctions bill on Russia’s oil and finance is gaining momentum in Congress, with potential spillover effects for major trading partners.

Defence & Security: Slovak police, with SIS and Military Intelligence input, foiled an arson plot targeting the Ukrainian drone maker Skyeton’s eastern Slovakia plant near Prešov; three foreign suspects (two Latvians and a Ukrainian) were detained, one arrested in Germany, and prosecutors say the group had prepared an incendiary mix described as napalm—Slovak President Pellegrini is now pushing for stronger protection of defence-industry sites. Industrial Production: Slovalco’s aluminium furnaces are restarting in Žiar nad Hronom; Prime Minister Fico calls it “good news” for Slovakia and Europe, citing state-aid reform and a long-term electricity contract, with €100m investment pledged by owners. Manufacturing Expansion: Jindal Stainless is boosting coin-blank output capacity by 20% to 12,000 tonnes to meet demand from multiple mints, including Slovakia’s. Energy & Infrastructure: NATO approved up to 101 Slovak troops to support Eastern Sentry airspace monitoring and NATINAMDS in Poland and Romania, including testing new 3D radars. Climate & Water Risk: A magnet fisher recovered a WWII-era 1,500-pound unexploded mine from the Danube near Virt, exposed by extreme low water—another reminder of how drought can surface dangerous relics and disrupt shipping. Digital Trust: Biometrics and post-quantum security are moving deeper into digital identity infrastructure, with vendors rolling out quantum-resistant protection across credentials and platforms.

Defence Industry Security: Slovak police and ÚBOK foiled a planned arson attack on the Skyeton drone factory near Prešov, detaining three foreign suspects (including a 26-year-old Latvian arrested in Germany) and seizing an incendiary mix described as napalm, tools and attack plans; President Pellegrini urged tighter protection for defence-linked firms. Industrial Output & Energy: Prime Minister Robert Fico hailed the restart of Slovalco’s aluminium production in Žiar nad Hronom, saying full capacity could supply 17% of Europe’s primary aluminium, backed by state-aid reform and a long-term electricity contract plus €100m owner investment. NATO Readiness: Slovakia approved deploying up to 101 soldiers to Poland and Romania for NATO’s Eastern Sentry monitoring and air defence mission, including testing new 3D radar capabilities against drone threats. Digital Trust & Identity: Biometric and digital identity coverage highlights post-login fraud pressure and the rollout of post-quantum cryptography across identity infrastructure. EU Energy Costs: Reports say EU sanctions and low gas storage are pushing energy prices well above US/China levels, raising pressure on European industry competitiveness. Climate & Risk: OECD and insurer-focused reporting links worsening drought and heat to higher operational and insurance costs, with water scarcity emerging as a key risk for data centres.

Defence Industry Security: Slovak police and ÚBOK foiled an alleged arson plot targeting the Ukrainian drone maker Skyeton’s plant near Prešov, seizing an incendiary mix (gasoline plus polystyrene), tools and a plan; three foreign suspects were charged, with one arrested in Germany and two detained in Slovakia, while the “Global Citizens Against War 1984” group claimed responsibility. Industrial Output & Energy: Prime Minister Robert Fico hailed the restart of production at the Slovalco aluminium plant in Žiar nad Hronom, saying full capacity would produce about 17% of Europe’s primary aluminium, supported by state-aid reform and a long-term electricity supply contract plus €100m owner investment. EU Energy Costs: Reports say EU sanctions on Russian energy are pushing European gas and power prices far above the US and China, with worst-in-15-years gas storage levels raising winter pressure on industry. EU Finance for Industry: The EIB approved €9.2bn in financing, including €4.3bn for companies via local banks across sectors like security/defence, space, energy and agriculture, plus grid and heating infrastructure support. Slovakia Inflation Watch: Slovak industrial producer prices rose 2.7% year-on-year in July, led by coke/oil products, electric appliances and metals.

Aluminium Restart: Slovakia’s Slovalco plant in Žiar nad Hronom has ceremonially restarted furnaces, with PM Robert Fico calling it “good news” for Europe and saying full capacity could cover 17% of EU primary aluminium. Security for Defence Industry: Slovak police and intelligence units foiled an alleged arson plot against Ukrainian drone maker Skyeton near Prešov, seizing an incendiary mix described as napalm; three foreign suspects were charged, with one arrested in Germany and extradition sought. Presidential Push: President Peter Pellegrini urged the government to tighten protection for defence-related firms and assess risks of further sabotage. NATO Airspace Role: Slovakia approved deploying up to 101 soldiers to Poland and Romania for NATO’s Eastern Sentry monitoring and air defence, including testing new 3D radar capabilities. Industrial Costs Watch: Slovakia’s industrial producer prices rose 2.7% year-on-year in July, led by coke and oil products, electric appliances and metals. Energy Finance: The EIB approved €9.2bn for EU competitiveness and energy autonomy, including support routed via local banks for SMEs in security/defence, space, energy and agriculture across Slovakia and other countries. EV Production Angle: Kia’s new EV2 is built in Žilina, Slovakia, positioning the model as a more affordable European-made electric SUV.

NATO Air Defence Boost: Slovakia approved sending up to 101 soldiers to Poland and Romania for the “Eastern Sentry” mission, with new 3D radars meant to spot drone threats up to 350 km away. Defence Industry Under Pressure: Slovak police and SIS/Military Intelligence foiled a planned arson attack on the Ukrainian drone maker Skyeton near Prešov; three foreign suspects were detained (one in Germany), and prosecutors say the plot was carried out “on commission.” EU Energy & Industry Finance: The EIB greenlit €9.2bn for EU competitiveness, with major support for SMEs in Slovakia and other countries, plus funding for grids, renewables and district heating to cut fossil dependence. Slovakia’s Factory Prices: Industrial producer prices for the domestic market rose 2.7% year-on-year in July, led by coke and oil products, electric appliances and metals. Regional Security Signals: Slovakia’s foreign minister urged Europe to strengthen security and competitiveness, while NATO planning increasingly treats the Arctic, Baltic and Black Sea as one theatre. Cross-Border Trade Talk: A business group says Pakistan’s trade with Eastern Europe, including Slovakia, is still far below potential—pushing for more investment links.

EIB Funding Push: The European Investment Bank approved €9.2bn to back European competitiveness, with €4.3bn routed via local banks to SMEs in sectors including security and defence, space, energy and agriculture—covering countries such as Slovakia, and also supporting grids, solar and district heating. Slovak Industry Signals: Slovakia’s industrial producer prices rose 2.7% year-on-year in July, led by coke and oil products (+17.5%), electric appliances (+8.4%) and metals (+3.5%), while food manufacturing was the only sector down (-2.8%). Security for Drones: Slovak prosecutors say police foiled a planned arson attack targeting Ukrainian-owned drone maker Skyeton near Prešov; three foreign suspects were arrested, with charges filed and extradition steps underway. EU Budget Tension: EU “frugal” states again failed to agree on how much to cut the 2027–2034 budget, as talks enter a key phase ahead of October compromise drafts—while Slovakia backs energy-security provisions. Energy Pressure in Region: Russia warned it could suspend oil and gas to Hungary after Budapest labelled Moscow a security threat, underlining how quickly energy policy can turn geopolitical. Heat Hits Agriculture: A European Commission JRC bulletin warns heat and drought are stressing summer crops and fodder supply across western and central Europe, including Slovakia.

Arson Plot Foiled: Slovak police and prosecutors say three suspects planned to burn down drone maker Skyeton’s eastern Slovakia facility; investigators seized an incendiary mixture and a plan, with charges filed against foreign nationals. Energy & Industry Security: Ukrposhta is setting up an aviation security service with Ukraine’s customs to screen hazard cargo and cut international shipping delays, including X-ray checks at sorting hubs. EU Defense Financing: Italy has formally asked the EU for €8bn in cheaper loans under the SAFE defense program to speed up military spending and bolster the defense industrial base. EU Budget Talks: European Council President António Costa’s “tour of capitals” continues, with Slovakia backing strong cohesion and agriculture funding while negotiations shift toward competitiveness, industrial transformation and defense. Heat Hits Agriculture: A new EU JRC bulletin warns drought and heat are stressing summer crops and fodder across western and central Europe, with impacts flagged for Slovakia and nearby regions. Wind Power Governance: Slovakia’s government says local authorities will have the final say on wind farm projects, tying compliance to Recovery and Resilience Plan funding. Food & Manufacturing Pressure: FirstFarms cuts its outlook after drought in Slovakia and weak pig and milk prices, while Nordzucker plans to end sugar production at Nakskov after 2026/27. Logistics & Trade Risk: Analysts highlight Europe’s tightening gas position ahead of winter, with low storage levels raising price pressure if conditions worsen.

EU Budget Talks: European Council President António Costa kicked off his “tour des capitales” in Bratislava with PM Robert Fico, pushing a deal on the 2028–2034 long-term budget with priorities like competitiveness, industrial transformation, defence and security. Local Energy Governance: Fico’s government says local authorities will have the final say on wind farm projects, while warning it must protect Recovery and Resilience Plan funding. Agriculture Under Pressure: A new EU JRC MARS bulletin flags heat and drought hurting summer crops and fodder across western and central Europe, with Slovakia among the hardest hit. Security for Industry: Slovak police and UBOK thwarted an arson plot targeting a drone manufacturing facility, seizing incendiary materials and charging three foreign nationals. Defence Trade & Industry: Lockheed Martin and SIG SAUER will debut at Azerbaijan’s ADEX 2026, alongside Slovakia’s expected national pavilion. Business & Jobs: FirstFarms cut its profit outlook after drought in Slovakia and weak pig and milk prices. Banking Oversight: Sense Bank added a new independent supervisory board member, Peter Novak, as Ukraine’s regulator moves ahead with inspections and sale plans. Regional Cooperation: Montenegro’s president met Fico in Bratislava, highlighting energy, infrastructure, tourism, agriculture and IT/digitalisation ties.

Drone Industry Security: Slovak police say they foiled a planned arson attack on a Skyeton drone manufacturing facility in eastern Slovakia, seizing incendiary materials and tools and detaining three foreign nationals (two in Slovakia, one in Germany), with the target valued at tens of millions of euros and about 70 workers potentially inside. EU Budget & Industry Policy: European Council President António Costa kicked off a “tour des capitales” in Bratislava with PM Robert Fico, pushing agreement on the 2028–2034 EU budget and stressing competitiveness, defence, enlargement and support for Ukraine, while Fico urged preserving cohesion and agricultural funding. EU–China Stance: Fico told EU leaders to pursue “friendly competition” with China rather than treat it as an enemy or add barriers, arguing competitiveness shouldn’t rely on tariffs. Energy Procurement: Orange Slovakia signed a 10-year physical power purchase agreement with Austrian Enery for 125,030 MWh from a 12.5MW solar plant near Banská Bystrica, aiming to lock in renewable supply and cost visibility. Agriculture Under Heat: The EU warns drought and extreme heat are hitting summer crops and fodder across western and central Europe, with impacts including Slovakia, and points to CAP support for irrigation and climate-resilient farming. Labour Costs: Slovakia’s minimum wage will rise from January to 972 euros, after tripartite talks failed, while employers argue the system links wage thresholds and bonuses too tightly to the minimum. Sugar Restructuring: Nordzucker plans to stop sugar production at its Nakskov plant after the 2026/27 campaign, keeping it as a packaging centre and potentially affecting up to 150 jobs.

EU Budget Talks: European Council President António Costa kicked off a capital tour starting in Bratislava to line up national positions on the 2028–2034 EU budget, with Slovakia pushing to protect cohesion and agricultural funding while defence, competitiveness and enlargement stay central. Energy & Industry: Orange Slovakia signed a 10-year physical solar power PPA with Austrian Enery for 125,030 MWh from a 12.5 MW plant near Banská Bystrica, aiming for 2027 commissioning and long-term cost visibility. Security for Manufacturing: Slovak police thwarted an alleged arson plot targeting a Ukrainian-owned drone factory (Skyeton), detaining three foreign nationals and seizing incendiary materials and site plans; authorities say the facility is worth tens of millions of euros. Agriculture Under Pressure: The EU’s JRC MARS bulletin reports heat and drought hitting summer crops and fodder across western and central Europe, with Slovakia among the hardest affected, raising stress on irrigation and livestock feed. Labour Costs: Slovakia’s minimum wage rises from January to 972 euros, after tripartite talks failed, with employers warning the automatic link to wage thresholds and bonuses could raise costs beyond productivity. Automotive Logistics: Croatia’s Port of Rijeka handled the first major shipment of Chinese cars, positioning the port for more automotive logistics growth as capacity limits expansion plans. Renewables & Procurement: Orange’s deal adds to a broader push for corporate renewable supply agreements across Europe, reinforcing long-term contracting as a hedge against volatile energy prices.

EU Budget Talks: European Council President António Costa has started a capital-by-capital tour, beginning in Bratislava, to shape the EU’s 2028–34 long-term budget before positions harden—focusing on defence, competitiveness, enlargement and support for Ukraine, with Slovakia pushing to protect cohesion and agricultural funding. Heat & Farming Pressure: The EU Commission’s JRC warns prolonged heat and low rainfall are hitting summer crops and fodder across western and central Europe, with the strongest impacts flagged for Austria, Czechia, Slovakia, Hungary and parts of Italy and Germany. Slovakia’s Security Tech: Slovakia’s National Security Authority warns some connected road speed cameras could expose vehicle data and enable remote access, after vulnerabilities were found in specific camera lines linked to Cyprus and Russia. Ukraine Defence Supply: The EU approved another €6.1bn for Ukraine air defence procurement under the €90bn Ukraine Support Loan, as leaders meet in Kyiv amid a growing Patriot missile and interceptor shortage. Industrial Supply Chains: A packaging rules backlash is growing among micro-businesses, with new PPWR/EPR registration and paperwork burdens pushing small sellers to stop shipping into the EU. Energy Deal in Slovakia: Enery signed a 10-year green power PPA with Orange Slovensko, backed by a new solar plant planned for 2027.

Slovak Nuclear Power Overhaul: Prime Minister Robert Fico says a new independent review will be carried out of EY’s valuation of CEZ’s stake in JESS, while the government pushes to move JESS under full state control to enable a new nuclear plant and target 100% ownership. EU Defence Procurement: The European Commission approved another €6.1bn for Ukraine air defence—missiles, ammunition and radars—under the €90bn Ukraine Support Loan, with delivery plans tied to increased production and destocking. Cyber Safety for Infrastructure: Slovakia’s NBÚ warns that connected road speed cameras could leak vehicle data and enable remote access, urging operators to identify affected camera systems. Energy & Renewables Deal: Enery signed a 10-year green power PPA with Orange Slovensko, supplying 125,030 MWh from a new 12.5 MW solar plant due in 2027. EU Rules Hit Small Industry: New EU packaging waste rules (PPWR) are triggering heavy compliance costs for micro-firms, with some small sellers reportedly stopping shipments into Europe. Food Security Pressure: Black Sea disruptions plus weaker harvests and higher energy/fertiliser costs are squeezing wheat flows and pushing prices, raising near-term risk for exporters. Construction Slowdown: Eurostat reports June construction production fell 1.3% in the euro area and 1.0% in the EU, with Slovakia down 4.6% month-on-month.