Israeli company M.T. Abraham Group, which leases the plants of the bankrupt state-owned aluminum manufacturer Aluminij in Bosnia's southern city of Mostar, announced plans to build a solar power system to reduce the costs of electricity used at the plant.

According to a statement issued on Wednesday by Aluminij Industrija, a newly-formed company that had restarted production at the bankrupt plant, a strategic agreement has been signed between M.T. Abraham and another Israeli company, Big S.C., which has experience in building solar systems, to ensure stable and affordable power supply at much favorable prices.

“The use of solar energy will result in considerable savings and will reduce emissions from energy produced by using fossil fuels as well as environmental pollution. The Herzegovina region has an average of 280 sunny days a year and large open spaces suitable for installing solar power plants,” the company said.

A technical team from Big SC is expected to visit Mostar this month, while construction work should start this summer.

Once a major industrial powerhouse, Aluminij had ceased operating in the summer of 2019 after years of difficulties because of accumulated debts totaling more than €220 million. It had employed about 900 people. Production was restarted last November with about 200 workers.

The Croatian government has a 12 percent stake in the company.