The suspension of production at the steel mill in Bosnia and Herzegovina has disrupted supply chains

The suspension of steel production at the Nova Željezara Zenica plant (Bosnia and Herzegovina) has sent shockwaves through the industrial sectors of both the country and neighboring Croatia. This is disrupting rail freight transport, port operations, and regional supply chains, which could become one of the most significant economic disruptions in the Western Balkans in recent years. This is reported by Intellinews.

On April 23, Nova Željezara Zenica completed the shutdown of its integrated production process. The immediate cause—competition from cheaper imported steel—reflects global pressure on energy-intensive industries in Europe. However, in Bosnia’s case, industry leaders argue that the situation was exacerbated by failures in government policy: the lack of protective measures, delays in decision-making, and the absence of a coordinated industrial strategy left companies vulnerable.

Rail operators in Bosnia and Herzegovina have reported an immediate and sharp drop in revenue following the closure of key enterprises linked to the steel value chain. These include the metallurgical plant in Zenica, the coke plant in Lukavac, and the Lubija iron ore mine near Prijedor. The consequences are already being felt in logistics networks that have depended for decades on a steady flow of raw materials and finished steel products. Even before the shutdown, management at the “Railways of the Federation of Bosnia and Herzegovina” warned that this could lead to the layoff of 2,500 employees.

The domino effect is spreading beyond Bosnia’s borders. Croatian port operator Luka Ploče—a key logistics hub for bulk cargo linked to the steel industry—stated that it expects a decline in transshipment volumes following its Bosnian partner’s decision to suspend production.

While supply chains are being restructured, the long-term consequences of this crisis remain uncertain.

As a reminder, the authorities of Bosnia and Herzegovina planned to impose a 30% import duty on steel and steel products for a period of 200 days. The Ministry of Foreign Trade and Economic Relations prepared the proposal at the request of Nova Željezara Zenica.