ArcelorMittal sells plants in Bosnia and Herzegovina to Pavgord Group

Global mining and metals company ArcelorMittal has signed an agreement to sell its assets in Bosnia and Herzegovina – the ArcelorMittal Zenica steel plant and the ArcelorMittal Prijedor mining company. This is stated in the company’s press release.

The Bosnian company Pavgord Group will become the new owner of both companies. The deal is expected to close in the third quarter of 2025 after all necessary approvals are received and the preliminary conditions are met.

The company notes that it has made considerable efforts to keep the businesses within the group, but after a strategic review, it concluded that the sale is the best solution for further business and staff development.

As a result of the transaction, all employees of Zenica and Prijedor will be transferred to the new owner. ArcelorMittal expects to record a non-cash loss on the sale of approximately $200 million, including foreign exchange losses accumulated since the acquisition of the assets.

Until the transaction is completed, both companies will operate as usual with the support of local management and ArcelorMittal’s management.

«We believe the company will continue to be a major contributor to the economy of Bosnia and Herzegovina. We thank all our employees at ArcelorMittal Zenica and ArcelorMittal Prijedor for their hard work and passionate engagement during all these years and wish them all the best for the future,  as well as to Pavgord Group in this new phase,» said Sanjay Samaddar, Vice President of ArcelorMittal and CEO of ArcelorMittal Europe – Long Products.

As GMK Center repored earlier, ArcelorMittal’s European division increased steel production by 8.3% in 2024 compared to 2023, to 31.2 million tons. Steel production in blast furnaces increased by 10.8% y/y – to 25.7 million tons, while electric arc furnaces decreased by 1.8% y/y – to 5.5 million tons. In particular, ArcelorMittal Zenica produced 0.5 million tons of steel (-16.7% y/y).