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Chinese investor to present plan for Bosnia's ailing Aluminij on Friday - report

Author Iskra Pavlova
Chinese investor to present plan for Bosnia's ailing Aluminij on Friday - report Photo: All Rights Reserved

SARAJEVO (Bosnia and Herzegovina), September 19 (SeeNews) - An unnamed Chinese investor reportedly carrying out due diligence at Bosnia's struggling Aluminij will present its plans regarding the future of the ailing aluminium producer on Friday, local media reported.

The Chinese investor should present a business plan to the management of Aluminij which is expected to throw light on the direction in which the troubled company will be heading, news daily Dnevni List reported on Wednesday.

The daily did not give the name of the interested Chinese investor but said it is acting together with an Israeli partner.

Earlier this month, Bosnian news portal reported that the company conducting due diligence at Aluminij is China Machinery Engineering Corporation (CMEC). also reported that UK-headquartered industrial and metals group Liberty House was also interested in the Mostar-based aluminium producer.

Aluminij shut down operations on July 10 after its power supply was cut off due to swelling unpaid bills. Following the shutdown, the government of Bosnia's Federation entity decided that Aluminij should continue to operate and come up with a rescue plan by the end of 2019.

In July, prior to Aluminij's shutdown, British-Swiss company Glencore terminated its talks with the Federation government for taking over the aluminium smelter after failing to agree on the future electricity price.

The Federation government controls 44% of Aluminij, followed by the government of neighbouring Croatia with 12%, with the remainder held by smaller shareholders.

The Federation is one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Serb Republic.