[REVISION HISTORY]

Zenica steel plant under state control, rescue stalled

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-05 13:24 UTC → 2026-08-05 17:34 UTC · added ~~removed~~

Zenica steel plant under state control, ~~production paused~~ rescue stalled

The Federation of Bosnia and Herzegovina continues to wrestle with the future of the state‑owned Nova Željezara Zenica. After unions pressed for an emergency administration law in May, the federal parliament convened an emergency session in early June and passed the legislation intended to prevent bankruptcy and safeguard roughly 1,800 jobs. In late June a gas‑oxygen transfer accident at the Energetika unit injured three workers and heightened concerns about the plant’s viability. The same week the Zenica Municipal Court issued a temporary order suspending any bankruptcy filing to allow the extraordinary‑administration proposal to be examined. A Cantonal Court hearing on emergency administration was scheduled for early July, but on 16 July the municipal court rejected the government’s request to appoint an administrator and the plant offered a free lease of its facilities to the Federation, conditional on job guarantees and a restart of production. The Cantonal Court upheld this decision on 23 July, reiterating that insolvency alone does not meet the legal threshold for emergency management. Premier Nermin Nikšić reaffirmed the government’s rescue plan, including secured iron‑ore and coke supplies and increased budget support, while the majority owner declined the state’s purchase and management proposals on 5 August. Production remains halted as the high furnace undergoes routine maintenance, and the plant stays under state control pending further legal and financial negotiations. In August 2026 the owners again met federal minister Vedran Lakić and rejected two concrete rescue proposals – a state purchase of the majority stake and a state‑financed management model – citing lack of a viable financial plan and calling the offers populist. The government reiterated that the proposals would withdraw any bankruptcy filing and that legal action will continue before the Federation’s Supreme Court, while the plant remains idle under state control.

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