Zenica Steel Plant Owner Rejects Government Rescue Plans, Workers Remain Protected

Owners of Nova Željezara Zenica met with officials of the Federation of Bosnia and Herzegovina and rejected two concrete proposals offered by the government. The first proposal called for the state to purchase the majority shareholder’s stake; the second would have the government finance and manage the plant while preserving its legal status, assets, permits and workforce.

The government, represented by federal minister Vedran Lakić, emphasized that both models included withdrawing any bankruptcy filing, conducting independent legal, financial, technical and environmental assessments, and using the emergency administration law to safeguard the plant’s integral steel production and jobs. Lakić said the workers would not be left behind and that legal action would continue before the Federation’s Supreme Court.

The owners argued the proposals lacked a viable financial plan, called them populist promises, and asserted that integral steel production is no longer sustainable, urging the state to fund any restart with its own resources rather than using the plant’s capital.