SARAJEVO (Bosnia and Herzegovina), September 13 (SeeNews) – Bosnian aluminum smelter Aluminij said on Thursday it is in serious financial trouble and needs the help of the government of Bosnia's Federation entity to stay afloat.
Aluminij, which employs 10,000, is suffering due to the state's neglect coupled with the trade war between the US and the EU which has shaken the metals market, the company said in a statement, quoting its general director Drazen Pandza.
The company is also impacted by disturbances in Russia's Rusal overseas supply chain which have lifted the price of raw materials.
Aluminij is urging the Federation's government, which holds a 44% stake in the company, to step in.
"We have come to a crucial moment when we no longer have room for maneuver, and the involvement of the government is our only option," Pandza said.
Although the price of aluminium on the London Metal Exchange in July was $195 (167.9 euro) higher than in the same month of last year, the disproportionately high price of Aluminij's key raw materials caused the Mostar-based factory to lose 5.2 million marka ($3.1 million/2.7 million euro) instead of recording profits.
Aluminij is based in the Federation, one of the two autonomous entities that form Bosnia. The other is the Serb Republic.