The Aluminij aluminium smelter in Bosnia has filed for bankruptcy and dealt a heavy blow to the region

Published: Jul 12, 2019 13:52

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Despite offers from companies such as (EGA), a global aluminium company in the United Arab Emirates, Aluminij Mostar, a Bosnian aluminium smelter, decided on Wednesday to close its plant and file for bankruptcy. The closure of Aluminij, the only aluminium smelter in Bosnia, will affect about 10, 000 jobs. So on Tuesday night, hundreds of workers protested and were eventually dispersed by the police.

SMM7, 12 / 12-despite offers from (EGA) and other companies, the Bosnian aluminium smelter Aluminij Mostar decided on Wednesday to close its plant and file for bankruptcy.

But it is not clear whether to restructure the debt or liquidate the company.

The company said it was unable to pay its electricity bill because of high raw material and electricity prices and weak aluminum prices.

The closure of Aluminij, the only aluminium smelter in Bosnia, will affect about 10, 000 jobs.

So on Tuesday night, hundreds of workers protested and were eventually dispersed by the police.

Founded in 1975, Aluminij is Bosnia's third largest exporter. The plant has a capacity of 106500 tons and operating income of 249.41 million euros in 2017.

While the plant's closure has had little impact on the global aluminium market, it has been a heavy blow to dozens of metalworking plants in places such as Bosnia and Croatia, which depend on its supplies.

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