ArcelorMittal Zenica resumed production at its integrated steel plant in Bosnia on Thursday, after halting output for 10 days due to declining demand. The steelmaker’s coking coal unit remained operational throughout the pause.
The company began operating the plant at full capacity starting Thursday. ArcelorMittal Prijedor, the Omarska-based mine that supplies iron ore to the steelmaker’s European subsidiaries, also ceased operations during the break. It will remain shut until further notice, the company indicated.
The steel mill took measures to cut costs, obtain protective equipment and renegotiate gas and electric prices with sellers. It also proposed a wage cut of 10-20pc for managerial positions, however that recommendation was rejected by the company’s unions, according to media reports.
ArcelorMittal employs about 3,200 workers in the Zenica plant and Omarska mine in northwest Bosnia. The company mentioned in July 2019, it would cut production and jobs at Omarska, but has put those plans on hold for now.
The steel industry in Bosnia that comprises about one-third of its exports, faced an 18pc drop in exports from January to April, due to lack of demand in European markets.
ArcelorMittal Zenica has steel production capacity of almost 1mn mt per year. Annual iron ore production at the company’s Prijedor mine stands around 1.5-2mn mt of concentrate.