Israel's M.T. Abraham Group and its Bosnian arm Aluminij Industries signed a deal with China Nonferrous Metal Industry’s Foreign Engineering & Construction Co., Ltd. (NFC) to revamp and upgrade the facilities of Bosnia's ailing aluminum producer Aluminij, SeeNews reported on October 12.
The project aims to restore Aluminij's position as one of the global leaders in the industry, public broadcaster BHRT reported, citing information from Aluminij Industries.
With the deal, the strategic partners are joining forces to provide knowhow, expertise, and resources to improve the process of log castings at Aluminij.
NFC covers the whole spectrum of implementing non-ferrous metals projects, including engineering, advisory, equipment supply and installation, and technical support across the world.
In April, Aluminij Industries - the newly established subsidiary of M.T. Abraham Group, and its partners China Machinery Engineering Corporation (CMEC) and NFC, signed an agreement with Aluminij for a long-term lease of the Bosnian company's production assets, opening the way for a restart of its production.
Aluminij halted operations in July 2019 after its power supply was cut off due to swelling unpaid bills. Following the shutdown, Bosnia's Federation government decided that Aluminij should continue to operate and come up with a rescue plan by the end of 2019.
The Federation government controls 44% of Aluminij, followed by the government of neighbouring Croatia with 12%, with the remainder owned by smaller shareholders.