Government of Zenica-Doboj Canton writes to FBiH Government and Council of Ministers of BiH: Ensure conditions for preserving steel production in Zenica

(Patria) - The Government of the Zenica-Doboj Canton calls on the Government of the Federation of Bosnia and Herzegovina and the Council of Ministers of Bosnia and Herzegovina to do everything in their power to preserve the steel production in Nova Željezara Zenica, it was announced from the Press Service of the Government of ZDK.

"Preserving steel production is a strategic interest of Bosnia and Herzegovina. Nova Željezara Zenica is the largest domestic exporter and a company that directly employs more than 2,000 workers, and halting production would have unforeseeable consequences for our country's economy, as the entire chain of over 500 subcontractors and suppliers, employing more than 11,000 workers according to some estimates, is linked to production", the letter states.

It is added that the shutdown of production would have chain and long-term consequences for energy, mining, rail and road transport, ports, industrial services, and pension and health funds would also suffer damage.

"Estimates are that direct financial flows of Nova Željezara to suppliers and customers alone amount to about 1.578 billion KM annually, while they further generate new financial flows through their own employees, subcontractors, and partners.

Due to the strategic importance of Nova Željezara for the domestic economy, higher levels of government have an obligation to use all available mechanisms to ensure conditions for the continuation of production, either through direct subsidies to the only steel producer in Bosnia and Herzegovina or through mechanisms for protecting domestic production, which is common in European and other industrially developed countries. After all, the Government of the Federation of BiH has an additional obligation, as it owns 8 percent of the capital of Nova Željezara Zenica", it was stated in the letter.

The Government of ZDK concludes: "Unfortunately, the Government of the Zenica-Doboj Canton does not have direct jurisdiction over issues related to the business operations of Nova Željezara Zenica, but we are fully aware of the company's importance for the domestic economy.

The Government of the Zenica-Doboj Canton stands in defense of strategic steel production, especially its employees who are citizens of our canton, and we are ready to do everything in our power and jurisdiction to ensure a stable and certain future for steel production in Zenica".