Bosnia's only aluminium producer, the Mostar-based 'Aluminij', has relaunched production after its 16-month-long closure, the factory's management said on Tuesday.

The smelter now operates as part of the MT Abraham Group from Israel.

Production was relaunched following several months of preparation and examinations of furnaces and plants in the section of the Aluminij factory that MT Abraham has leased. In the first two months, about 3,000 tonnes of metal is expected to be produced at the plant and next year already it expects to produce more than 3,500 tonnes of aluminium logs. By the end of 2021, production should be increased to 50,000 tonnes.

At least 90 former employees at Aluminij should be rehired by the end of the year which would increase the total number employed to 170.

“I had no doubts regarding its production capacities and that is exclusively thanks to our workers. Our main aim is to maintain stability and sustainability,” said the Chairman of the MT Abraham Group and Director of Aluminij Industries, d.o.o., Amir Gross Kabiri.

Earlier this year, the company’s management signed a strategic agreement with the China Nonferrous Metal Industry’s Foreign Engineering & Construction Co., Ltd. (NFC), on modernising the plant. A deal was achieved as well as with the Advait Group, which will be selling half of Aluminij’s products.

The government of the Federation of Bosnia and Herzegovina entity holds 44% of shares in Aluminij while the Croatian government has a 12% interest. The plant stopped production in July 2019 due to losses of more than €220 million, most of which were debts for electricity.