ArcelorMittal Zenica has suspended production at its steel plant and mines in Bosnia until further notice due to lower demand amid the lockdown aimed at preventing the spread of the coronavirus.
Since the initial days of the coronavirus pandemic, ArcelorMittal Zenica has taken some measures such as reducing costs, providing protective equipment and renegotiating gas and power prices with its suppliers. Also, the steelmaker said that it had discussed with the company’s unions regarding a wage reduction of 10-20 percent for administrative staff, but the proposals were refused. Despite all these efforts, the company has had to halt the production. The company has also had to temporarily lay off its workers at the Omarska iron ore mines in Bosnia due to the crisis.
On the other hand, union head Zuhdija Kapetanovic stated that the company had already furloughed 800 out of a planned 1,000 workers and that it would reduce their wages by almost half.
ArcelorMittal Zenica, which employs around 1,400 workers in Zenica and 800 at Omarska, has an annual production capacity of 1 million mt.