Crisis talks convened as Zenica steelworks prepares for production shutdown

Ahead of these sessions, representatives from the cantonal and company unions are meeting today with management and bankruptcy trustee Jasmin Hadzirasidovic. The primary objective is to clarify the labour-law status of approximately 1,900 employees. Mujkanovic noted that all staff will remain employed until a formal redundancy care programme is adopted, adding that several proposals are currently under consideration.

Tuesday’s government-level discussions are expected to involve FBiH Prime Minister Nermin Niksic and the Minister of Energy, Mining and Industry, Vedran Lakic. While management will attend, it remains unconfirmed if union representatives will be included in these talks.

The technical decommissioning process is slated to begin on Wednesday with the shutdown of the Agglomeration department. The extinguishing of the Blast Furnace is scheduled for 3 pm that afternoon. By Thursday morning, 23 April, the final ladle of molten steel will be delivered to the Steel Plant, which is expected to conclude all billet production by midnight.

This cessation of integrated production will immediately impact approximately 600 workers across the three affected plants. However, the broader economic consequences are far-reaching. The shutdown poses a significant threat to the entity railways, the Ljubija Iron Ore Mine near Prijedor, and various supply chains. Industry estimates suggest that up to 12,000 jobs across both entities could be at risk.

Management at the steelworks has spent recent months lobbying authorities for protective measures to safeguard domestic production. Despite the urgency, the Council of Ministers of Bosnia and Herzegovina has twice failed to pass a decision on the matter.