economy
April 25, 2026
Furnaces Extinguished at Zenica Ironworks
Warnings and fears of the Zenica ironworks employees are beginning to come true
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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