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Mostar's aluminum plant shutting down, loss exceeds EUR 52 mln

Autor: half
MOSTAR, June 6 (Hina) - The Aluminij company in Mostar, Bosnia will begin gradually shutting down its aluminum plants as of June 17 because its losses exceed EUR 52 million and in this year's first four months it posted the worst results in its 30-year operation because of the high cost of electricity, the company said.

A decision to that effect was made by the supervisory board at the proposal of director Ivo Bradvica.

A business report shows that the company, in which the Croatian government has a 12 per cent stake, generated EUR 5 million in losses every month.

Aluminij closed 2012 with a loss of EUR 33 million and the loss exceeded EUR 52 million at the end of this past April.

Bradvica told the supervisory board he had asked Croatian President Ivo Josipovic for assistance and mediation between the governments of Croatia and Bosnia and Herzegovina's Federation entity so that the entity government would agree to changing the capital structure, which would enable Aluminij to ask for the necessary current assets.

Bradvica said Federation Prime Minister Nermin Niksic had still not signed an agreement whereby the entity government would get a 44% stake in the company, the workers another 44% and the Croatian government retain its 12%.

(Hina) ha

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