M.T. Abraham Group, which rents the plants of the Aluminij company in Mostar, southern Bosnia and Herzegovina, will build solar power plants together with the Israeli company Big SC to reduce the costs of electricity production.

According to a statement issued on Wednesday by Aluminij Industrija, a newly-formed company that has restarted production at Mostar, a strategic agreement has been signed with the Israeli company, which has experience in building solar systems, to ensure stable and affordable power supply at a lot more favourable prices.

The Mostar company had found itself in trouble because of high electricity prices.

The use of solar energy will result in considerable savings and will reduce emissions from energy produced by using fossil fuels as well as environmental pollution. The Herzegovina region has an average of 280 sunny days a year and large open spaces suitable for installing solar power plants, the company said.

A technical team from Big SC is expected to visit Mostar already this month, while construction work should start this summer.

Aluminij ceased operating in the summer of 2019 because of accumulated debts and losses that exceeded €220 million. It employed about 900 workers then. Production was restarted last November with about 200 workers.

The Croatian government has a 12% stake in the company.