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Reading: There is a Possibility of ArcelorMittal withdrawing from BiH
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Sarajevo Times > Blog > BUSINESS > There is a Possibility of ArcelorMittal withdrawing from BiH
BUSINESS

There is a Possibility of ArcelorMittal withdrawing from BiH

Published November 18, 2023
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In the shadow of the daily political turmoil, the problems of the citizens pass rather unnoticed, as well as those that can have a significant impact on the domestic economy as a result.

One such problem is present in the company ArcelorMittal Zenica, where integral production has been interrupted and a general strike is certain, which will directly cause problems in the functioning of the company ArcelorMittal Prijedor, and indirectly in the Republika Srpska (RS) Railways and the Railways of Federation of Bosnia and Herzegovina (FBiH), of which ArcelorMittal is the most important partner.

Next Monday, the general strike of ArcelorMittal Zenica workers begins. The trade union carried out all the activities provided by law for the start of the strike, and even the last round of negotiations between the union and the management of ArcelorMittal did not result in an agreement.

A general strike and interruption of production at ArcelorMittal in Zenica can cause numerous negative consequences for the BiH economy. The events at the factory in Zenica have already had a negative impact on ArcelorMittal in Prijedor, where ore production has been suspended, and 780 workers are waiting in uncertainty for the company’s official position and instructions.

In addition to the 3.000 ArcelorMittal workers in Zenica and Prijedor, the problems in the work of one of the largest exporters from BiH will also be indirectly felt by the RS Railways, which have already been informed about the suspension of ore transport from Prijedor to Zenica.

The company ArcelorMittal confirmed that there was an interruption of integral steel production in Zenica.

“The company ArcelorMittal Zenica has temporarily suspended production, due to the bad conditions prevailing in the steel market. After careful consideration and evaluation of all available options, on November 11th, 2023, we temporarily suspended the operation of the Blast Furnace, after which production was successively suspended in other facilities as well,” the company announced.

ArcelorMittal also announced that a number of factors in the international steel market influenced the decision to stop production. The company did not announce the most important thing, and that is the estimate for how long the steel production in Zenica will be suspended, Biznis Info reports.

E.Dz.

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