Published by Global Banking & Finance Review®
Posted on June 20, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleArcelorMittal plans to sell its Bosnia steel mill and iron ore mine to Pavgord Group, affecting 2,700 employees. The sale is set to complete by Q3 2025.
SARAJEVO (Reuters) -ArcelorMittal , the world's second-largest steelmaker, said it signed a deal on Friday to sell its operations in Bosnia and Herzegovina, comprising a steel mill and an iron ore mine, to the Bosnia-based Pavgord Group.
The Luxembourg-based company owns the steel mill in the central town of Zenica and the iron ore mine in the northwestern town of Prijedor, which together employ about 2,700 people.
The new owner will take over all employees, according to the deal, which is expected to be completed in the third quarter of 2025, after all conditions for its implementation have been fulfilled, ArcelorMittal said in a statement.
It is expected the company will register an accounting loss of $0.2 billion, excluding the revenue from the sale, according to the statement.
"Over the years the company has invested significant funds and efforts to keep ArcelorMittal Zenica and ArcelorMittal Prijedor within its group," it said in the statement.
"But after a detailed strategic analysis, it was concluded that the sale is the best solution for the further development of the operation and employees," it added.
ArcelorMittal, which has operated in Bosnia for 21 years, reported losses of 276.3 million Bosnian marka ($162.6 million) in 2023 and 2024 due to a drop in steel demand in Europe.
In Bosnia, Pavgord Group owns local aluminium producer Alumina, Bosnia's largest exporter last year, and a majority stake in Bosnian bauxite mining company Boksit.
(Reporting by Daria Sito-Sucic; Editing by Jan Harvey and Susan Fenton)
ArcelorMittal is selling its steel mill located in Zenica and an iron ore mine in Prijedor, Bosnia and Herzegovina.
The sale is expected to be completed in the third quarter of 2025, pending the fulfillment of all conditions.
ArcelorMittal is expected to register an accounting loss of $0.2 billion, excluding revenue from the sale.
The new owner will take over all employees, which number around 2,700 at the steel mill and iron ore mine.
After a detailed strategic analysis, ArcelorMittal concluded that selling the operations was the best solution for their further development and for the employees.
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