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Reading: New Steelwork Zenica will not shut down completely, reorganization will follow
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Sarajevo Times > Blog > BUSINESS > New Steelwork Zenica will not shut down completely, reorganization will follow
BUSINESS

New Steelwork Zenica will not shut down completely, reorganization will follow

Published: April 25, 2026
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In Nova Željezara Zenica, integral steel production has been suspended, ending a decades-long production cycle that was the foundation of the industrial development of Zenica and the wider region, and Nova Željezara has outlined further plans.

Nova Željezara Zenica emphasizes that the suspension of integral production does not mean the closure of the factory.

The company will, as they state, work on establishing a new business model in accordance with financial capabilities and the applicable legal framework.

This process involves the reorganization of operations and a possible reduction in the number of employees, both among directly and indirectly engaged workers.

Speaking about workers who could lose their jobs, General Manager Ahmed Hamzić emphasizes the personal and professional responsibility of the Management.

– We are ready to provide money from the group so that people can be paid the severance pay that is their legal right and that they deserve as soon as possible. These are people who earn their bread with their own blood and who deserve to be treated fairly and responsibly. I would not like people to be sent home without the ability to cover basic expenses until they find a new job. I hope that we will find an adequate legal model that will provide the best solution and respect these workers – said Hamzić.

He added that there are certain difficulties due to the pre-bankruptcy procedure and that all possible models are being sought to pay the workers as soon as possible because he is aware of the situation they are in.

– In order to protect the rights of the workers and at the same time ensure full legal security for both the Management Board of the Company and the temporary bankruptcy administrator, we have sent an official request to the competent Court for a statement, requesting a clear legal opinion and guidelines for further action on this issue – concluded Hamzić.

The statement that was published states that the General Manager of Nova željezara Zenica Ahmed Hamzić monitored the final activities in the blast furnace with the workers and that this was the most difficult day for the entire collective.

– I still cannot believe that the state did not protect the domestic producer in time and that it allowed the entire economic system of Bosnia and Herzegovina to be endangered. I see all the reactions that followed as the last attempts to seek justification and shift the blame to those of us who spent months investing, reducing losses and had a clear vision of how to bring this giant to the green branch. I am grateful to the workers for their trust, dedicated and professional work. I did everything I could and gave it my best, but it’s obvious that without real institutional support and strong involvement of the local community we didn’t succeed, and frankly, I’m still not aware that this is the scenario we’re living in today. It is unfortunate that the state failed in the most important step – says Hamzić.

He noted that the Administration previously sent an official letter to the Government of the Federation of Bosnia and Herzegovina, the Federal Ministry of Energy, Mining and Industry and the Council of Ministers of Bosnia and Herzegovina about the decision to suspend production.

Considering that the Government of the Federation of Bosnia and Herzegovina is a co-owner of Nova željezara Zenica with an 8 percent share in the founding capital, as well as possible distrust of private capital, a willingness was expressed to offer an additional ownership share in order to strengthen the interest of the state and the Federation of Bosnia and Herzegovina and create conditions for the adoption and implementation of measures aimed at protecting and preserving jobs in the Company and related companies.

However, the company states that they have not received an official statement or proposal, while the proposals of the Government of the Federation of Bosnia and Herzegovina were presented through the media without prior consultations with the majority owners of the Company. Neither Prime Minister Nikšić nor the competent Minister Lakić were present at the meetings held in recent days with representatives of Energoinvest.

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