Nova Željezara Zenica (New Zenica Steelworks) has begun preparations to suspend integrated steel production. Other companies in the industrial sector may gradually follow.
Steel production will continue until between April 20 and 25, after which, Željezara will suspend operations at the Blast Furnace, Agglomeration Plant, and Sinter Plant. The Government of the Federation of Bosnia and Herzegovina, as a co-owner with 8% of shares, must respond by April 8.
“Aware of possible distrust toward private capital and our activities, the Administration expressed readiness to offer the Government of the Federation of Bosnia and Herzegovina a share of ownership to further strengthen the state interest and create preconditions for developing and implementing measures to protect jobs at Nova Željezara Zenica,” the company announced.
Željezara has been requesting protective measures on steel imports for months, without success. The workers have held protests, but there is no solution, and their future remains uncertain.
“You work here for 36 years and come on June 15 to learn there is no paycheck. There are people here who pay for their children’s education, and many children of these parents who work here became doctors, and only God knows how many people have retired from here,” said Hanas Isaković, an employee of the company, on March 24.
The collapse of Željezara would put at risk over 11,000 jobs in other companies. On the other hand, the Chairwoman of the Council of Ministers, Borjana Krišto, said that 28 enterprises opposed the implementation of protective measures.
“I wonder how many employees those 28 companies have, and whether it is close to 11,000. If we multiply that by four per family, that is around 50,000 people who depend on it. Based on some mysterious 28 companies, for which we do not know who they are, what they are, or whether an increase in prices would put their business at risk – it is one thing if the price of raw materials increases, but it is completely different if, like Željezara, they are forced to shut down their machinery and suspend operations,” said Representative Mia KaramehićAbazović.
This would be a final blow to an already struggling industrial sector. The shutdown of Koksara Lukavac (Coke Plant Lukavac) means a loss of 20 million BAM for the federation and 5 million for the Railways of Republika Srpska. The transport of ore from Omarska is also in question due to the crisis at the Nova Ljubija mine. The government of Republika Srpska secured 6 million BAM for workers, and the mine can operate for another two to three years.
“We have already seen this coming, as for some time now, mine assets have been sold and people are gradually leaving. This is a major problem for us. These people are of a certain age, and nothing else is functioning – you have no company, no economy. Where will all these people find employment? The younger ones will go abroad, which is a significant blow for Prijedor,” said Maja Dragojević Stojić, an SDS MP in the NSRS.
