Marchers demand reopening of Bosnia's last steel mill
Finance

Marchers demand reopening of Bosnia's last steel mill

Published by Global Banking & Finance Review

Posted on May 1, 2026

2 min read

· Last updated: May 1, 2026

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Protests Erupt After Bosnia's Last Steel Mill Shuts Down in Zenica

Closure of Zenica Steel Factory Sparks Outrage and Economic Fears

ZENICA, Bosnia, May 1 (Reuters) - Hundreds of workers marched through Bosnia's central city of Zenica on Friday, protesting against the closure of the country’s last steel mill which they said marked the end of an era of heavy industry.

Impact on Workers and the Local Economy

Last week's shutdown of the 130-year-old Zenica Steel Factory put thousands of jobs at risk across the sector, protesters said, and followed on the heels of the closure of Lukavac coke factory in February.

Voices from the Protest

"Zenica does not exist without the Zenica steel factory," marcher Avdija Halilović told Reuters as demonstrators blew whistles, carried union flags and shouted slogans demanding the reopening of the plant.

Reasons Behind the Closure

Bosnia's Pavgord Group, which bought the plant from ArcelorMittal last year, blamed the closure last month on logistical problems, cheaper imported steel and what it said was the government's failure to bring in measures to protect the industry.

Company Response

It was not immediately available for more comment on Friday, the May Day public holiday.

Government and Industry Reactions

Government Intervention

Bosnia's Bosniak-Croat federation prime minister, Nermin Niksic, said on Thursday the regional government was interested in taking over ownership of the plant and helping it continue production, the N1 news website reported.

Broader Industry Challenges

Bankruptcy of Nova Ljubija Iron Ore Mines

Further pressure came this week when the Nova Ljubija iron ore mines, another key supplier to the steel mill, filed for bankruptcy, affecting nearly 600 workers.

(Reporting by Amel Emric; Writing by Ivana Sekularac; Editing by Andrew Heavens)

Key Takeaways

  • Zenica Steelworks, founded 1892, halted integrated production—including blast furnace and sinter plant—between April 20–25, jeopardizing about 11,000 jobs across 550 companies, including rail and energy sectors (raditi.eu)
  • Nova Ljubija iron‑ore mine, a key supplier with around 600 employees, filed for bankruptcy after liquidity strains caused by unpaid dues from Nova Željezara Zenica (minexforum.com)
  • The Federation government, led by PM Nermin Nikšić, is pursuing restructuring: initiating strategic talks via Energoinvest, and exploring partial takeover to preserve industry and jobs (sarajevotimes.com)

References

Frequently Asked Questions

Why did the Zenica steel mill close?
The Zenica steel mill closed due to logistical problems, cheaper imported steel, and a lack of government protection measures.
How many jobs are at risk after the mill's closure?
Thousands of jobs in Bosnia's steel sector are at risk following the closure.
Who owns the Zenica Steel Factory now?
The Zenica Steel Factory is owned by Bosnia's Pavgord Group, which bought it from ArcelorMittal last year.
What action is the government considering?
The Bosniak-Croat federation government is considering taking over the plant to help resume production.
What is the impact of the Nova Ljubija iron ore mines bankruptcy?
The bankruptcy of Nova Ljubija, a key supplier, affects nearly 600 workers and adds pressure to the steel industry.

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