economy

April 25, 2026

Furnaces Extinguished at Zenica Ironworks

Warnings and fears of the Zenica ironworks employees are beginning to come true

Furnaces Extinguished at Zenica Ironworks

TL;DR

  • The Zenica ironworks has begun shutting down its integral production, including its blast furnace, a process that could end steel manufacturing in Bosnia and Herzegovina.
  • Management attributes the closure to market pressures and a lack of institutional protection, with the Council of Ministers reportedly rejecting proposed protective measures for domestic steel production.
  • The shutdown affects around 2,000 direct employees and an estimated 10,000 jobs in related sectors, including railways and mining.
  • The company's majority owner is 'H&P' from Zvornik, part of the 'Pavgrod' group, while the Government of the Federation of BiH holds an 8% stake.
  • The Federation of BiH government states that bankruptcy and closure are not options and is proposing potential solutions.
  • The Union of Metalworkers of the Federation of BiH has announced protests to demand action from government bodies.

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