- Sales in 2023 reached historically low levels, due to weak demand
- Significant increase in the cost of electricity, natural gas, and logistics
- City heating system in Zenica to remain intact
- Coke plant shutdown will lead to positive environmental impact
Zenica, March 28, 2024 –ArcelorMittal Zenica announces its intention to close its coke battery as a result of rising costs, reduced demand.
The coke battery, which first opened more than 40 years ago, did not operate between 1992 and 2008. ArcelorMittal Zenica brought it back into operation in 2008. A decade-long series of substantial maintenance efforts have not been enough to extend its lifespan and the company has concluded that further upgrading is not feasible and would not satisfy environmental standards. The deteriorating condition of the coke battery means that continued operation of the asset would also carry an increased safety risk for coke plant employees.
“This is a difficult day for the company. ArcelorMittal Zenica will make every effort to ensure that the closing of the coke battery has a limited impact on the local economy” Chief Executive Officer Nikhil Mehta said today. “There will be challenges, but we will make every effort to preserve the maximum number of jobs. The plan is to try to relocate many of the employees from the coke battery to other departments in Zenica. I also want to emphasize that the heating system for Zenica city will continue.”
“We are committed to stabilizing the company’s operation,” Nikhil Mehta said. “We would like to continue to contribute to the economy of Bosnia and Herzegovina. Everything will be done in close cooperation with the government, which is a shareholder in ArcelorMittal Zenica, and in consultation with employee representatives. Our objective is to bring sustainability to our operations so that our employees and all our stakeholders can continue to remain engaged with our business.”
The company will continue to produce steel via the blast furnace route, purchasing coke from external sources.