Bosnian steelmaker ArcelorMittal Zenica, a subsidiary of global steel giant ArcelorMittal, is expected to return to pre-crisis production levels in the current year, sooner than previously thought, with a further boost anticipated for 2012.
"This year we will reach an output of 650,000 metric tons of steel, increasing this by 10 percent in 2012," company official Seid Kapetanovic told Reuters on the sidelines of a metal industry fair on Wednesday, October 5. ArcelorMittal Zenica produced 590,000 metric tons of steel in 2010 after lower demand in 2009 forced it to cut both output and sales to around 300,000 metric tons. In 2008, ArcelorMittal Zenica had an output of close to 634,000 metric tons of steel.
The steelmaker, based in the central Bosnian town of Zenica, had previously said it did not expect to return to pre-crisis production levels before 2012, despite some signs of recovery in the market. Mr. Kapetanovic said steel consumption in the domestic market has increased 50 percent this year after a 35 percent gain last year, and that it has remained healthy in North Africa.
The company produces steel mainly for the construction and infrastructure sectors that were hit hard by the global economic crisis but have shown some signs of recovery this year. Its partner, iron ore miner ArcelorMittal Prijedor, last year produced 1.4 million metric tons of iron ore concentrate and has planned to increase output by a quarter this year.
Steel demand in Bosnia in the medium-to-long term could get a boost from expected investments in infrastructure projects such as the construction of a north-to-south highway, energy and railway network reconstruction.