The closure of the Nova Željezara Zenica integrated production facility in the Western Balkans on April 23 caused significant economic instability across Bosnia and Herzegovina and Croatia. Cheap imports and energy costs drove the decision, which halted activity at the Lukavac coke plant and Lubija iron ore mine. As a result, regional rail operators face a sharp revenue collapse and approximately 2,500 potential layoffs.

The disruption extends to Croatia’s Luka Ploče, where port authorities anticipate a drop in cargo volumes. Industry leaders blame the crisis on a lack of government protective measures and a missing national industrial strategy for the Western Balkans.

As logistics networks lose decades of steady raw material flow, the long-term stability of regional supply chains remains at risk. Authorities now face pressure to address these systemic failures in the metallurgical sector.