Aluminij works on assignments from the Conclusion of the Government of the FB&H

Aluminij Mostar

Yesterday afternoon Aluminij d.d. Mostar received officially delivered the Conclusion of the Government of FB&H from the session held on October 19th, related to the crisis at the factory. Out of a total of 12 items and accompanying liabilities for Aluminij, the Ministry of Energy, Mining and Industry, as well as to the Ministry of Finance of the FB&H Government, six of them relate to the assignments given by the Government to the Management Board and Aluminium Supervisory Board.

- Having in mind findings since Friday, and I think of the public addressing of the Government’s leaders, we have not been sitting with our arms crossed. Besides procuring an overhead for the supply of electricity and raw materials for this week, and the fact that we will continue to work day after day, we have launched a series of measures under this Conclusion, not waiting for its official receipt - commented Acting Director of the Company, Dražen Pandža.

Namely, the Management of Aluminij is already in contact with the Elektroprivreda HZHB d.d. Mostar, in principle agreed on the direction and the way of reprogramming the old debts in the amount of KM 184 million, as well as the new one in the amount of KM 23.9 million.

- Again, I thank our colleagues from EPHZHB on the patience and willingness to cooperate, despite such a serious situation on our side. What we finally find as a realistic and feasible option for the reprogramming of our debts will go to the FB&H Government. Furthermore, by the end of the present day, we will submit to the Government the requested request to initiate the Aluminij’s financial consolidation process, regarding the item of finding an audit house, we have already contacted several renowned international houses and expect the completion of the selection by the beginning of next week – added Acting Director of Aluminij.

He also commented on the Government's mandate to draft and implement internal savings measures.

- Aluminij has been working on this for months. With a few drops of personal incomes to our employees, starting from the first recession years onwards, the last reduction of the salary was at the end of last year by signing a new Collective Agreement with our Trade union organization. Furthermore, we maximally increased the premium level on our products, at the same time negotiating the lowest available pricing for strategic raw materials. The next step, according to the Conclusion, is the plan of internal reorganization measures, which is already ongoing, and will deal with necessarily reducing the number of employees in non-productive activities – said Pandža.

The issue of putting Aluminij in the so-called a warm working regime stays unclear, on which the Factory has already gave the opinion to the Government.

- This solution exists in theoretical considerations, but it has never been implemented in practice. In the event of a sudden shortage of some of the key raw materials, it is possible theoretically to bring the electrolytic cells into a hibernation state to remain in such condition for fifteen days. However, the key is that the cell, in hibernation, consumes enormous amounts of electricity, up to 40 percent of the volume consumed in full capacity. This means that we would then create millions of obligations for the electricity we use, and we would not produce metal, that is, we would not have the raw material for sale. In translation, this mode of operation is not feasible – said clearly the member of the Aluminij’s Management Boris Vican, Acting Executive Director for Technical Affairs and Development, who has already presented this issue to the FB&H Government.

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