Strategic divestment of Bosnia-Herzegovina assets
ArcelorMittal will sell its Bosnia-Herzegovina operations, including the Zenica steelworks and Prijedor iron ore mine, to locally based Pavgord Group. The decision follows more than two decades of operation and significant investment in the country.
The company cited ongoing global steel market volatility and years of capital spending as key reasons for the divestment. Zenica’s business also faced losses in 2023 and 2024 as European steel demand declined, leading ArcelorMittal to close its coke plant in 2024 due to rising costs and weaker orders.
Transaction details and employment impact
Under the agreement, about 2,700 employees across the Zenica and Prijedor sites will transfer to Pavgord Group, ensuring continued local employment. The parties expect the transaction to close in the third quarter of 2025, subject to customary approvals.
ArcelorMittal notes that the sale will allow the Bosnia-Herzegovina operations to continue developing under new ownership while it refocuses its broader European portfolio.
Zenica’s role in the regional steel market
ArcelorMittal Zenica operates with an annual production capacity close to 1 million tons of long steel products and employs more than 2,000 workers. The integrated facility covers steelmaking and finishing, supplying billets, wire rod and wire, among other products, to markets across the Balkans and beyond.
Zenica ranks as the largest producer of long products in the Balkans, reflecting its strategic importance to regional construction and infrastructure projects.
Record production achievements at Zenica
The Zenica plant set a wire rod production record in January 2023, reaching 43,200 tons and surpassing its previous record of 41,700 tons set in March 2022. These results underscored the mill’s operational capabilities despite challenging market conditions.
Even as ownership changes, Zenica’s production base and workforce position the facility to remain a key supplier of long products in Southeast Europe under Pavgord’s direction.
For more about ArcelorMittal’s global operations, visit the company’s corporate site at https://corporate.arcelormittal.com