From the FBiH Government: Consolidation of Nova Željezara Zenica Instead of Closure

(Patria) - Federal Prime Minister Nermin Nikšić held a meeting today on the situation at Nova Željezara Zenica with representatives of various ministries and institutions that can help overcome and stabilize the situation.

The meeting resulted in a clear confirmation of the FBiH Government's commitment to stop the further collapse of this industrial system and to address the problems through a coordinated and institutionally supported approach.

Instead of bankruptcy, the FBiH Government is initiating a process of consolidation and restructuring, with the aim of preserving production, jobs, and the stability of the domestic industry.

Nova Željezara Zenica represents an important segment of the economic chain in the Federation of Bosnia and Herzegovina, with direct links to the Railways of the Federation of Bosnia and Herzegovina, Elektroprivreda BiH, Energoinvest, and other companies whose operations depend on the stability of this sector.

Its potential closure would have significant negative consequences for the economy and a large number of employees.

In the past two months, the relevant ministry and the Government of Bosnia and Herzegovina have continuously monitored the activities of the new owners, and within their competences, provided appropriate support.

However, the company's obligations to public enterprises, including Elektroprivreda BiH, Energoinvest, and Željeznice FBiH, continued to grow, without clearly defined plans from the owners regarding the company's survival, for which bankruptcy proceedings have already been announced.

In this regard, the FBiH Government has prepared a set of measures aimed at supporting companies of special importance to the Federation, including Nova Željezara Zenica, regardless of ownership structure.

Within these activities, Energoinvest has been recognized as the operational holder of the potential consolidation process, considering the company's experience in managing complex industrial systems and recent results in stabilizing its own operations with institutional support.

On this basis, the management of Energoinvest has received approval from the Supervisory Board to initiate the process of strategic partnership and commence discussions with the owners of Nova Željezara Zenica, with the support of the FBiH Government for a potential takeover, under clearly defined and responsible conditions.

The FBiH Government expects a constructive approach from the owners and a willingness to open space for discussions with partners who possess the necessary knowledge, interest, and capital, and have a serious intention to stabilize the company and return it to a sustainable development path.

The approach is based on the active role of domestic companies in the restructuring of strategic systems. The goal is to ensure the continuity of production, preserve jobs, and achieve long-term industrial sustainability.

The FBiH Government remains committed to preserving the industrial base and protecting jobs, and will not allow the closure of strategically important companies if there are realistic possibilities for their stabilization and further development, announced the FBiH Government's Public Relations Office.