ArcelorMittal announced that it has decided to sell two important facilities covering its operations in Bosnia and Herzegovina. According to the announcement, ArcelorMittal Zenica, an integrated steel production plant, and ArcelorMittal Prijedor, an iron ore mining operation that provides raw materials for the plant, will be transferred to Pavgord Group.
The company stated that significant investments and efforts have been made in recent years to keep these two plants within the group. However, the company explained that after a comprehensive evaluation, it was concluded that the sale was the most appropriate solution for both the future of the business and the development of employees.
According to the sale agreement, ArcelorMittal's shares in both companies will be transferred to Pavgord Group and all employees will continue to work for the new employer. The company expects to record a non-cash loss of approximately $0.2 billion as a result of the proceeds from the sale.
The sale is expected to be completed in the third quarter of 2025 after obtaining the necessary approvals from the competition authority. During this process, existing operations will continue uninterrupted, supported by local management and company leadership.
Sanjay Samaddar, CEO ArcelorMittal Europe - Long Products and Vice President of ArcelorMittal, commented: "We would like to thank the governments for their support during our 21 years in Bosnia and Herzegovina. We are grateful to all our employees at ArcelorMittal Zenica and ArcelorMittal Prijedor for their hard work and wish them and the Pavgord Group every success in this new era."
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