The venture was suspended in November 2023 due to a weak market
ArcelorMittal, one of the world’s largest steel producers, plans to reopen its steel plant in Zenica, Bosnia and Herzegovina (ArcelorMittal Zenica) this month. This was reported by Reuters.
The company suspended its rolling mills and High Oven blast furnace in November 2023 due to weak market conditions. It was planned to resume normal operations as soon as demand returned to a level that would ensure the stable operation of the enterprise.
ArcelorMittal Zenica also plans to resume iron ore production at its Prijedor mines in northern Bosnia.
«Production at the plant, including the blast furnace, will be resumed in the coming days,» commented the head of the ArcelorMittal Zenica trade union.
Zenitsa steel plant produces about 700,000 tons of steel per year and employs 2,200 people. Its main product range includes rebar in bars and coils, wire rod, mesh and grating.
The main reasons for the plant’s suspension included a decline in demand in the European steel market amid the war in Ukraine; a jump in energy prices and production costs; and inflation. In addition, the company emphasized that European steel producers are forced to compete with cheaper imported products, particularly from Turkiye.
As GMK Center reported earlier, European division of ArcelorMittal in January-September 2023 decreased steel production by 11% compared to the same period in 2022 – to 22.2 million tons. Steel shipments for January-September decreased by 7.8% y/y – to 21.56 million tons.