ZDK Government: Uncertainty in Željezara threatens thousands of jobs – reaction from FBiH and state needed

(Patria) - The Government of Zenica-Doboj Canton, led by Prime Minister Nezir Pivić, is monitoring information coming from Nova Željezara Zenica with serious concern, especially considering that neither the Canton nor the citizens have yet received clear answers about the company's future operations and the status of employees.

Prime Minister Pivić and Minister of Economy Samir Šibonjić held a meeting today with the co-owners of Nova Željezara Zenica, Gordan Pavlović and Ahmed Hamzić, who is also the company's general director, to get firsthand information about the current situation and business challenges.

The ZDK Government emphasizes that it has no direct jurisdiction over the operations of Nova Željezara Zenica, as this is primarily the responsibility of the Federation of Bosnia and Herzegovina, which also holds an 8% ownership stake in the company. However,
due to the strategic importance of Željezara for Zenica and the Zenica-Doboj Canton, a company that directly employs about 1,900 workers, indirectly engages about 12,000 people, contributes about 2.5% to BiH's GDP, and pays
over 32 million KM annually – the ZDK Government considers it its obligation to actively monitor the situation and insist on the protection of workers and the economic interests of the canton.

The focus of today's meeting was on key issues: the future status of employees, concrete measures planned by management in case of a worsening situation, the realization of announced investments, modernization and transformation
of production, as well as information the company has regarding the obligations and reactions of competent institutions of the FBiH and BiH. The discussions were held in a constructive atmosphere, with an open presentation of all relevant data and the biggest problems the company is facing. The co-owners expressed the need for stronger support from institutions at all levels of government, especially regarding the establishment of mechanisms for the protection of domestic production – in line with European Union practices.

Additional problems include high ore transportation costs, the relationship between Željeznice Federacije BiH and Željeznice Republike Srpske, a 6% increase in electricity prices, which has been around 20% more expensive for a long time
compared to the price in the other BiH entity, and unresolved issues related to the Rača metallurgical waste landfill and the use of its own property.

The ZDK Government states that the protection of workers and the preservation of the economic system of the Zenica-Doboj Canton are an "absolute priority", but points out that higher levels of government are directly responsible for concrete decisions and solutions, including the Government of the Federation of BiH as a co-owner of the company, and the Council of Ministers of BiH.

Therefore, the ZDK Government calls on the Government of the Federation of BiH and the Council of Ministers of Bosnia and Herzegovina to react urgently and actively engage in resolving the situation, in order to prevent severe consequences for the workers, their families, and the overall economy of the canton.

Nova Željezara Zenica has been a pillar of economic life in Zenica and the wider region for decades, and any uncertainty in its operations has direct consequences for thousands of families and for the economic development of ZDK and Bosnia and Herzegovina.

The Government of Zenica-Doboj Canton remains committed to protecting the interests of workers and citizens and will insist on urgent, effective, and coordinated solutions with the full participation of higher levels of government.