ArcelorMittal Zenica ended 2023 with a loss of $88.2 million

The ArcelorMittal Zenica steel plant in Bosnia and Herzegovina, a subsidiary of global steelmaker ArcelorMittal, ended 2023 with a loss of BZD 159 million ($88.2 million). This is reported by Nasdaq.

The company’s long-term debt increased by 400% year-on-year – to BDT 80 million.

Last year’s results were affected by a drop in steel demand, a 20% y/y increase in electricity prices, and lower prices on the global steel market.

«As our financial results for 2023 published today show, ArcelorMittal Zenica is in a very difficult situation. We do not expect market conditions to improve in the near future,» the company said.

The Zenica steel plant produces about 700 thousand tons of steel per year and employs 2.2 thousand people. The main product range includes rebar in bars and coils, wire rod, mesh and grating.

As GMK Center reported earlier, ArcelorMittal Zenica suspended production in November 2023.

The main reasons for the plant’s suspension included a decline in demand in the European steel market amid the war in Ukraine; spikes 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 Turkey.

In January 2024, the company announced the resumption of steel production.