Aluminij was a Bosnian

aluminium Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...

manufacturing company with headquarters in

Mostar Mostar () is a city and the administrative centre of Herzegovina-Neretva Canton of the Federation of Bosnia and Herzegovina, an entity of Bosnia and Herzegovina, and the historical capital of Herzegovina. Mostar is situated on the Neretva Riv ...

, Bosnia and Herzegovina. It operated from 1975 until 2020, when it was leased to the Israeli M.T. Abraham Group and since then has been operating as its subsidiary Aluminij Industries. In 2021, Aluminij Industries was the second largest exporter in Bosnia and Herzegovina, as well as the largest importer, while in 2022, Aluminij Industries became the largest exporter, and was the second largest importer.

History

The history of Aluminij began in the first years of the 20th century, with the discovery of

bauxite Bauxite () is a sedimentary rock with a relatively high aluminium content. It is the world's main source of aluminium and gallium. Bauxite consists mostly of the aluminium minerals gibbsite (), boehmite (γ-AlO(OH)), and diaspore (α-AlO(OH) ...

ore deposits in Herzegovina and the subsequent exploitation of the resource. After the end of

World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...

in 1945, a new company was created, Bauxite Mines Mostar, with the goal of exploring, exploiting and transporting bauxite commercially. It was this first company that carried out the initial construction studies for

smelters were conducted, the birth of the aluminium industry that was to come. In 1969, the

Mines Mostar Company merged with Energoinvest Sarajevo to form a new organisation focused on aluminium production. The Government of the Socialist Republic of

Bosnia and Herzegovina Bosnia and Herzegovina, sometimes known as Bosnia-Herzegovina and informally as Bosnia, is a country in Southeast Europe. Situated on the Balkans, Balkan Peninsula, it borders Serbia to the east, Montenegro to the southeast, and Croatia to th ...

tasked the group with maximizing the potential of the resources in the region and develops a new facility that could turn

into a global aluminium producer. This was achieved by 1975, as regular aluminium production began in the new Alumina Factory. This successful development was based on cooperation between Energoinvest and the French company Pechiney. Aluminij was established in 1975 in

. It soon emerged as one of the largest aluminium manufacturing companies in former

Yugoslavia , common_name = Yugoslavia , life_span = 1918–19921941–1945: World War II in Yugoslavia#Axis invasion and dismemberment of Yugoslavia, Axis occupation , p1 = Kingdom of SerbiaSerbia , flag_p ...

. The company's facilities were largely destroyed during the 1992–1995

war in Bosnia and Herzegovina The Bosnian War ( / Рат у Босни и Херцеговини) was an international armed conflict that took place in Bosnia and Herzegovina between 1992 and 1995. Following several earlier violent incidents, the war is commonly seen as ha ...

and were later rebuilt. By the end of June 2002, an extensive modernization project for Aluminij Factory had been completed. At a cost of 250 million Euros it brought new technologies and introduced production upgrades that increased output, efficiency and quality, this allowed Aluminij Factory to remain competitive on the world stage, matching the global leading producers for quality. In 2007, the Government of Bosnia and Herzegovina aimed to privatise Aluminij. Among the companies who placed a bid were; Alcoa, Alcan Inc., Rusal, Norsk Hydro and Swiss-based metals trader Glencore International. The Government of Bosnia and Herzegovina blocked the selloff and decided to annul the tender. , the company was owned 44% by the government, 44% by workers and former workers and 12% by the Croatian Privatization Fund. The government's and workers' shares are to be sold to international investors.

2020 M.T. Abraham Group takover

In April 2020, M.T. Abraham Group took the factory under a lease for a duration of 30 years by an agreement with the

Government of the Federation of Bosnia and Herzegovina The Government of the Federation of Bosnia and Herzegovina, commonly abbreviated to the Federal Government, is the main executive branch of government in the Federation of Bosnia and Herzegovina, one of the two entities of Bosnia and Herzegovina ...

, together "with its partners

China Machinery Engineering Corporation China Machinery Engineering Corporation (CMEC) is a construction and engineering company, forming one part of the China National Machinery Industry Corporation (Sinomach) group of companies. A specialization of CMEC is the construction of power p ...

(CMEC) and China Nonferrous Metal Industry’s Foreign Engineering & Construction Co., Ltd. (NFC). In October 2020, Aluminij entered into a partnership with Advaita Group under which half of Aluminj's production would be sold to Advaita for the next ten years. In December 2020, Aluminj signed a five-year agreement with

Glencore Glencore plc is an Anglo-Swiss Multinational corporation, multinational commodity trading and mining company with headquarters in Baar, Switzerland, Baar, Switzerland. Glencore's oil and gas headquarters are in London, London, England as well a ...

for the supply of aluminium billets. In March 2022, M. T. Abraham Group announced plans to build a solar power plant for electricity supply to Aluminij Industries. On May 4, 2023, M.T. Abraham Group's Aluminij signed $141.2 million worth of deals with Glencore and Duferco. The agreements consisted of building a solar power plant, aluminium recycling facility, and a new factory for green aluminium production.

Community

Mostar area alone receives an income of 40 million euros annually from Aluminij. That kind of development trend enabled investments in cultural institutions, among which are: the construction of the little scene of the

Croatian National Theatre in Mostar The Croatian National Theatre in Mostar () is a theatre located in Mostar, home to the largest population of Croats in Bosnia and Herzegovina Bosnia and Herzegovina, sometimes known as Bosnia-Herzegovina and informally as Bosnia, is a co ...

and Aluminij Gallery. (one of the most important for the city of Mostar and the wider region).

Partnerships

The partners with which Aluminij does business are renowned global companies, of which the most important are: Venture Coke Company L.L.C. (Venco-Conoco joint Venture) from the US, Glencore International AG from Switzerland, Debis International Trading GmbH, Daimler-Chrysler,

Norsk Hydro Norsk Hydro ASA (often referred to as just ''Hydro'') is a Norway, Norwegian aluminium and renewable energy company, headquartered in Oslo. It is one of the largest aluminium companies worldwide. It has operations in some 50 countries around th ...

ASA from Norway,

Fiat Fiat Automobiles S.p.A., commonly known as simply Fiat ( , ; ), is an Italian automobile manufacturer. It became a part of Fiat Chrysler Automobiles in 2014 and, in 2021, became a subsidiary of Stellantis through its Italian division, Stellant ...

from Italy, TLM-Šibenik from Croatia,

, an
China Nonferrous Metal Industry's Foreign Engineering And Construction Co., Ltd

Market and financial data

In 2017, Aluminij had a revenue of 249.41 million euros and exported goods worth 171.01 million euros.

Footnotes

References

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External links

Aluminij IndustriesM.T. Abraham Group
{{Authority control Aluminium companies of Bosnia and Herzegovina Multinational companies Companies based in Mostar 1975 establishments in Bosnia and Herzegovina Brands of Bosnia and Herzegovina Aluminium Manufacturing companies established in 1975 Aluminium smelters Smelters of Yugoslavia