After Zenica’s “Arcelor Mittal” was recently sold and renamed “Nova Željezara”, thus announcing the boom of the steel industry in Zenica, the future of this important industrial facility seems to have become questionable. The new owners say they are faced with numerous problems that they cannot solve without government support. They are also announcing a possible bankruptcy.
“Nova Željezara”, although it has only recently started operating in Zenica, after purchasing the plants from “Arcelor Mittal”, sees the declaration of bankruptcy as one of the possible epilogues if there is no concrete help from the state and federal authorities. For more than 1,900 employees, as well as thousands of external contractors, “Nova Željezara”, from pompous announcements, has become “a new uncertainty”.
“After only 26 days, we are talking about bankruptcy. I absolutely cannot believe it. With the arrival of new owners, visits to workers, positive stories, and now we are in a position where we need to tell the workers that if we do not have state support, it is the end,” says Rašid Fetić from the Workers’ Union of “Nova Željezara”.
And all this is due to problems inherited from the former owners. Excessive debts, technical unsustainability of the plant, limited availability of ore from Prijedor, announced increase in electricity prices… The list is long. This situation is also contributed to by the movements of steel on the world market, wars, customs duties – in addition, the lack of adequate state protection of the domestic industry.
“Since the beginning of the year until today, the price of steel in Turkey has fallen by 90 euros. We have to follow this because these goods come here freely, without any restrictions. Our costs are rising, not falling,” warns Saša Božić, director of sales and marketing of “Nova Željezara” Zenica.
“Another regulation will have to be passed, we hope we will be able to push it through. It is a regulation that would define quality standards and close the entry of materials, or steels that are of unsatisfactory quality, and would be a wind in the back of domestic producers,” said Almin Mališević from the Chamber of Commerce of the Federation of Bosnia and Herzegovina.
With all the problems, plans for the transition to green steel production are in jeopardy. However, eco-activists point out that this current method of production is a thing of the past and that responsibility should not be placed on the state. As a reminder, the Federation Government has an eight percent stake in the Zenica Steelworks.
“The state could have given that amount and had 100% ownership of steel production. It is obvious that it has no interest in that. The announcements we heard yesterday are not ‘green’. If you buy electric excavators to pollute the environment with less exhaust gases, why isn’t that money invested, for example, in maintaining the gas treatment plant or filters in the agglomeration, which are not working well and are causing pollution?” asks Professor Samir Lemeš from the Zenica Eco Forum.
The Zenica-Doboj Canton, known as the backbone of the Federation’s economic development, could weaken. Therefore, the Cantonal Government has appealed to the Federal Government.
“There is a danger that over 12 thousand people will directly lose their jobs, and all suppliers will lose their jobs, which could consequently have far-reaching consequences,” warns the Prime Minister of the Zenica-Doboj Canton, Nezir Pivić.
The operations of many businesses depend on the operation of the Zenica Steel Plant, primarily the Coke Plant in Lukavac and the entity railways. Whether the transition is possible and whether Zenica will lose another symbol of the city – it is still too early to say. However, what worries citizens is the future of heating the city, which is directly dependent on “Nova Željezara”.
