ArcelorMittal will divest its Bosnia-Herzegovina operations—including the Zenica steelworks and Prijedor iron ore mine—to the locally based Pavgord Group.
A press release said that the company cited ongoing global steel market volatility and years of investment as key reasons behind the sale. The company has operated in Bosnia for 21 years and has invested significantly in the facilities. A Reuters report said that the Bosnian operations have faced challenges, including losses in 2023 and 2024 due to declining steel demand in Europe. The company closed its coke plant in Zenica in 2024, citing rising production costs and lower demand.
The transaction will see roughly 2,700 employees, across both facilities, retained by Pavgord. The agreement is scheduled to close in the third quarter of 2025.
ArcelorMittal Zenica operates with an annual production capacity close to 1 million tons and employs over 2,000 people. The factory is an integrated facility with steelmaking and finishing operations, supplying billets, wire rods, and wires, among other products
Of note, Zenica was described as the largest producer of long products in the Balkans. It set a wire rod production record in January 2023 when it produced 43,200 tons, topping the prior record in March 2022 of 41,700 tons.
