[REVISION HISTORY]

Zenica steel plant enters official bankruptcy proceedings

Updated 6 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-15 00:05 UTC → 2026-08-25 13:44 UTC · added ~~removed~~

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. ~~In August 2026 the~~ The owners ~~again met federal minister Vedran Lakić and~~ rejected two concrete rescue proposals, citing a lack of a viable financial plan. Following these rejections, the plant implemented a temporary work reorganization from 11 to 17 August 2026, allowing remote work for eligible staff to ensure safety and property protection. Zeničko-dobojski Canton Prime Minister Nezir Pivić criticized the FBiH government, accusing Nikšić and Lakić of failing to act calling them ‘populist promises’ and ~~missing opportunities to exercise the right of first refusal.~~ arguing that integral steel production is no longer sustainable. On 12 August 2026, the Zenica Municipal Court officially opened bankruptcy proceedings for Nova Željezara Zenica due to long-term ~~insolvency.~~ insolvency, appointing Jasmin Hadžirašidović as administrator. Management characterized the bankruptcy as a strategic reorganization to transform the facility into a ‘modern industrial-logistics park’. Following the filing, approximately 1,190 workers were declared redundant. Political scrutiny has intensified, with allegations that the FBiH Government may have misled Parliament regarding the legal deficiencies of the emergency administration law.

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