ArcelorMittal will sell its business operations in Bosnia and Herzegovina to the national holding company Pavgord Group for an undisclosed amount, the company announced on Friday June 20.
The steelmaker said in a press release on Friday June 20 that it has signed a sale and purchase agreement for its integrated steel plant, ArcelorMittal Zenica, and its iron ore mining business, ArcelorMittal Prijedor.
According to the statement, ArcelorMittal made “considerable investments and efforts” to enhance the two facilities, but ultimately concluded that the sale was “the best solution for the development of the business and its people.”
ArcelorMittal has held operations in Bosnia for 21 years. In 2017, ArcelorMittal invested €12.4 million ($14 million) to upgrade its Zenica steel plant by cutting carbon emissions while also incorporating new technologies aimed at modernizing the plant’s steel production.
According to the company’s latest annual report, ArcelorMittal Zenica produced 500,000 tonnes of crude steel in 2024, down from 600,000 tonnes in the previous year.
The deal, which is subjected to merger control clearance, is expected to close in the third quarter of 2025.
ArcelorMittal declined Fastmarkets’ request for comment at the time of publication.
According to the agreement, ArcelorMittal will sell its shares in both facilities to the Pavgord Group, while also transferring all its employers to the new owner.
“We believe the company will continue to be a major contributor to the economy of Bosnia and Herzegovina,” ArcelorMittal’s vice president Sanjay Samaddar said in a statement.
The steelmaker estimates a loss $200 million following the closure of the deal, excluding sale proceeds.
The Luxemburg-based steelmaker has ceased operations in some of its Bosnian facilities before. In 2024, the company closed its coke plant in Zenica, citing rising production costs and lower demand for finished steel.
