M.T. Abraham Goup and its member, Aluminij Industrija, have signed a strategic agreement on cooperation with the Chinese giant China NFC, the purpose of which is to reactivate and upgrade production in that faltering company, based in Mostar, southern Bosnia and Herzegovina.
Aluminij Industrija said on Monday that it would cooperate with Nonferrous Metal Industry's Foreign Engineering&Construction Co. (NFC) in the exchange of know-how and resources to increase and optimise the production of aluminium logs in the company's foundry, which is expected to start operating in early November.
The Israeli M.T. Abraham Group, which leads the group whose aim is to relaunch production in the Mostar company, recently hired 82 workers who had worked for Aluminij Industrija.
An overhaul of the foundry is underway as is work on removing damage caused by a 15-month-long stoppage caused by the company's having incurred debts.
In the first two months after it relaunches production, Aluminij Industrija is expected to produce 3,000 tonnes of finished products, logs, and in 2021 it expects to produce 50,000 tonnes of logs.
By the end of January the company is expected to hire back at least another 90 workers, which would increase the number of workers to 170.
After suffering extensive property destruction during the war in the early 1990s, Aluminij Industrija resumed operation in 1997 with the support of the Croatian government but stopped production in July 2019 after incurring a debt of €220 million.
The government of Bosnia and Herzegovina's Federation entity and workers each hold 44% of shares in the company, while the remaining 12% is held by Croatia's government.
In spring this year, the Federation government approved a business cooperation agreement with the Israeli-Chinese consortium, led by M.T. Abraham Group, to lease the Mostar-based aluminium smelter.