Sunday, June 9, 2013

Aluminij d.d. Mostar in BiH entirely shuts down its production facilities




Aluminij can no longer continue to operate in conditions of current prices of electricity and primary aluminium, and therefore starting as of 17 June it starts with shutting down process of the entire smelter - this is a today’s  Decision of the Supervisory Board of the Company, based on  the proposal of CEO Ivo Bradvica, which  was unanimously adopted  after thorough review of the Business Report in the first four months of the current year, which shows that the Mostar smelter realizes  KM 9,7 KM of  loss per month, as of 1 January.

All provisions of the existing Code of Conduct of Aluminij have been suspended which are related to salaries and all other benefits, and the Legal Services Department has been instructed to create the Employee Redundancy Program and to prepare a proposal on the amount of personal income in the company for the next Supervisory Board session, scheduled for 20 this month.
Production under these conditions no longer makes sense. Our only way out is in a complete turnaround of the existing relations of both Governments towards Aluminij (FBiH Government and the Croatian Government) and, given that I am unable to even get in touch with the Government of FBiH in relation that the agreement which would ultimately consolidate our capital structure, with which we only can seek for necessary working capital, which was scheduled for  18 April, and which has not yet  been signed  by  the Prime Minister of the Federation BiH, I have personally urged  the Croatian President, Mr. Ivo Josipović, to try to  rise the Aluminij issue on the level of two governments. Unfortunately we run out of time and this is the only reasonable decision that I could propose to the members of the Supervisory Board since I am not prepared to allow plunging of the Company into the abyss that is getting into galloping losses of which would lead to an uncontrolled bankruptcy - said CEO Bradvica, with the crisis management wording, that the company came to the point of no return.
The session was attended by the entire leadership of the Independent Trade Union of employees of Aluminij who realized that there is no alternative and supported the viewpoint of the Board of Directors, as well as the very decision of the Supervisory Board, but they also bitterly said that they will immediately start with extreme radical steps, which will be duly addressed in the public and in front of the relevant state authorities, as it is required by the law.
This is a stroke that Herzegovina will not be able to endure, and we are ready to respond through direct impact of our 900 employees, along with thousands of those who are going to lose their jobs with shutting down of Aluminij - was the focal message of the Aluminij Trade Union members who have been trying twice to make an appointment, over the past ten days (together with the leadership of the Trade Union of former employees Aluminij) with  the President of the Government of FBiH Nermin Nikšić, without any response.
Public Relations Office

Source: aluminij.ba

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