Nova Zeljezara Zenica ends integral steel production amid financial losses

According to the company statement, all activities are being conducted following a predetermined schedule, prioritizing the safety of employees, property, and the environment. The management emphasized that their request for the protection of domestic steel production had been under consideration for six months, receiving positive feedback from various levels of government. However, the Council of Ministers of Bosnia and Herzegovina rejected the proposed regulation twice in March, and subsequent initiatives have reportedly received no concrete response.

The Board concluded that continuing integral production is no longer sustainable due to extreme market non-competitiveness. While the factory is not closing entirely, the management could not rule out a reduction in the workforce.

"The company will exert all efforts to ensure a new business model while preserving jobs in accordance with the financial situation and legal constraints. Consequently, a reorganization and possible reduction in the number of employees, both direct and indirect, will occur," the company stated.

The suspension of operations carries significant economic weight, as previously noted that up to 11,000 jobs could be at risk. The scope of work for both entity railways and approximately 500 private companies remains dependent on the factory's output.

In response to the crisis, the Government of the Federation of Bosnia and Herzegovina (FBiH) entity held a meeting where it was announced that the management of Energoinvest has received Supervisory Board approval to initiate a strategic partnership process. Supported by the FBiH Government, Energoinvest intends to open talks with the owners of Nova Zeljezara Zenica regarding a potential takeover under clearly defined conditions. The FBiH Government expressed its expectation for a constructive approach from the current owners to allow partners with the necessary capital and expertise to stabilize the company and return it to a sustainable path.