Stock Markets May 1, 2026 11:06 AM

Workers in Zenica Demand Reopening of Century-Old Steel Plant After Shutdown

Protesters say closure of Bosnia’s last major steelworks threatens thousands of jobs; regional leaders consider intervention

By Ajmal Hussain
Workers in Zenica Demand Reopening of Century-Old Steel Plant After Shutdown

Several hundred workers staged a march through Zenica to protest the recent closure of the 130-year-old Zenica Steel Factory, Bosnia’s last major steel mill. Protesters warned the shutdown endangers thousands of jobs across the sector and follows a February closure of a Lukavac coke plant. The plant’s current owner cited logistical difficulties, cheaper imported steel and insufficient government protections as reasons for the halt in operations. The regional government has expressed interest in taking over the facility, while a related iron ore supplier has filed for bankruptcy, affecting nearly 600 workers.

Key Points

  • Hundreds marched in Zenica demanding the reopening of the 130-year-old Zenica Steel Factory after last weeks closure.
  • Owners, Pavgord Group, cited logistical issues, cheaper imported steel and lack of government protective measures as reasons for the shutdown.
  • The regional government has expressed interest in assuming ownership to help sustain production; a key iron ore supplier has filed for bankruptcy, affecting nearly 600 workers.

Several hundred demonstrators marched through the central Bosnian city of Zenica on Friday, voicing opposition to the shutdown of the country’s last major steel mill and urging authorities and owners to reopen the facility. The procession took place against the backdrop of the May Day public holiday, with protesters sounding whistles, waving union flags and chanting demands for the plant to resume production.

Protesters said last week’s stoppage at the historic Zenica Steel Factory, which has operated for roughly 130 years, puts thousands of jobs in the wider steel sector at risk. The closure follows the earlier shutdown in February of the Lukavac coke factory, another facility that feeds the industry.

"Zenica does not exist without the Zenica steel factory," marcher Avdija Halilovi07 told reporters as he marched with colleagues and union representatives. The demonstrators framed the factory as central to the citys identity and to local employment.

The plant is owned by Bosnias Pavgord Group, which acquired the site last year from ArcelorMittal. Company officials attributed the recent halt in operations to a combination of logistical problems, competition from cheaper imported steel and what they described as the government's failure to introduce measures to shield the domestic industry. The owner was not available for further comment on Friday.

Regional political leaders have signaled possible involvement. Nermin Niksic, prime minister of the Bosniak-Croat federation, said the regional government was interested in taking ownership and supporting continued operations, according to a report on the N1 news website.

Pressure on the supply chain intensified this week when Nova Ljubija, an iron ore mine that supplies the steel mill, filed for bankruptcy. The bankruptcy filing affects nearly 600 mine workers and represents another strain on the mill's sourcing and employment base.


Context and implications

The protests underscore tensions between industrial employers, workers and regional authorities as the plant's closure ripples through related businesses and local employment. With the owner citing both market and logistical pressures, the situation raises questions about continuity of production, supply chains and the willingness or ability of public authorities to assume ownership or provide protective measures.

Risks

  • Job losses across the steel sector due to the plant shutdown and related closures - impacting employment and local incomes.
  • Supply chain disruption as a key ore supplier files for bankruptcy - affecting raw material availability for steel production.
  • Competitive pressures from cheaper imported steel and logistical problems that may prevent an immediate resumption of operations - affecting industry viability.

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