Aluminij Mostar Aluminum reached an agreement with the Bosnian government to continue production
Sarajevo June 17 news: Bosnia official Monday signed an agreement, in order to avoid the country's largest aluminum smelter and exporters - Aluminij Mostar shut down production capacity, the agreement becomes effective, the Bosnian government holds 44% equity interest in the smelter.
The smelter will start on Monday closed the previously announced production capacity, due to high electricity costs and lower aluminum prices, if the plant shut down, will lose thousands of jobs, and the already weak Bosnian economy a heavy blow,)
Bosnian Government and Aluminij shareholders will each hold 44% of the equity interest in the smelter, and the government will provide subsidies to sustain production plant. The agreement also provides for the smelter to attract small investors the possibility of investing.
Aluminij is the southern city of Mostar region's major companies providing jobs, the plant has 900 employees, while thousands of people dependent on the plant's operations. The smelter is the mainstay of Bosnia metals industry, aluminum production accounts for more than half of the country's total output,mining aluminum,.
Bosnian Prime Minister Nermin Niksic, said: "Through this agreement agreed upon, we will affect the 17 years of our problems are solved."
The agreement establishes ownership between the government and Aluminij problem, clear the smelter will be registered securities registration agency registered in Bosnia.
Niksic, said: "This makes Aluminij may apply're unable to apply for a more substantial financial funds for further operations."
Officials did not provide information detailing how the government will give subsidies.
After the war in Bosnia, the smelter's management will be distributed to key employees equity as compensation for unpaid wages and a 12% stake sold to Croatian companies TLM.
Aluminij's management has repeatedly urged the Government to subsidize electricity for the plant to be. The aluminum smelter electricity costs account for over 60% of production costs, and its annual production of about 160,000 tons of aluminum,.
The smelter said last week that its monthly losses from 9.7 million since the beginning of the Bosnian Amazonian cards, 2012 loss of 65.8 million Marca.
Aluminij General Manager Ivo Bradvica said: "We will solve the problem, which is not only conducive to business, but also help the government and the entire region."
The smelter will start on Monday closed the previously announced production capacity, due to high electricity costs and lower aluminum prices, if the plant shut down, will lose thousands of jobs, and the already weak Bosnian economy a heavy blow,)
Bosnian Government and Aluminij shareholders will each hold 44% of the equity interest in the smelter, and the government will provide subsidies to sustain production plant. The agreement also provides for the smelter to attract small investors the possibility of investing.
Aluminij is the southern city of Mostar region's major companies providing jobs, the plant has 900 employees, while thousands of people dependent on the plant's operations. The smelter is the mainstay of Bosnia metals industry, aluminum production accounts for more than half of the country's total output,mining aluminum,.
