ArcelorMittal, the world’s second-largest steel producer, has agreed to sell its operations in Bosnia and Herzegovina to local conglomerate Pavgord Group, marking the end of a 21-year presence in the Balkan nation. The deal includes ArcelorMittal’s steel mill in Zenica and its iron ore mine in Prijedor, which collectively employ approximately 2,700 workers.
The sale, announced Friday, is expected to close in the third quarter of 2025 once all regulatory and contractual conditions are satisfied. Under the terms of the agreement, Pavgord Group will retain all employees, aiming to ensure operational continuity.
ArcelorMittal anticipates a $200 million accounting loss from the transaction, not including any income from the sale itself. The company cited ongoing financial challenges—specifically, €162.6 million in losses over the past two years—as the reason for divesting. A sustained drop in steel demand across Europe heavily impacted the viability of its Bosnian operations.
“Despite significant investment and efforts to sustain the business, a detailed strategic analysis led us to conclude that a sale is the most viable path forward for the development of the operations and the welfare of the employees,” the company stated.
Pavgord Group, the buyer, is already a major force in Bosnia’s industrial landscape, owning Alumina, the country’s top exporter last year, and a controlling stake in Boksit, a leading bauxite mining firm.
