ArcelorMittal has signed an agreement to sell its operations in Bosnia and Herzegovina to Pavgord Group. The deal includes ArcelorMittal Zenica, an integrated steel plant, and ArcelorMittal Prijedor, an iron ore mining operation that supplies the Zenica facility.
Despite significant investment and efforts to retain the assets, ArcelorMittal concluded after a strategic review that a sale would better support the businesses’ future growth and employees.
Under the agreement, all employees will transfer to the new owner. The company expects to record a non-cash disposal loss of around USD 0.2 bln, including accumulated foreign exchange losses.
The transaction is expected to close in the third quarter of 2025, pending regulatory approval and other closing conditions. Operations will continue as normal in the interim with support from local and corporate management.
ArcelorMittal Zenica has an annual production capacity of 1 mln tons of long steel products.