The new customs suspension is the beginning of state concern for its strategic companies

Aluminij Mostar

The decision of the Council of Ministers of B&H, with the aim of stimulating the growth of production and increasing international competitiveness for as many as 250 domestic companies, which suspended a range of customs duties, faced an unexpected attack on the part of the media space aimed at suspending the import duty on unalloyed aluminum. The relevant rate of duty is suspended at the initiative of Aluminij d.d. Mostar, which over the past year has been thoroughly broken down at all levels of government and ultimately supported by ministers from both the federal and state levels, recognizing excellent economic potential and no harm to the state's interest.

Aluminij Mostar has three plants: Anodes, Electrolysis and Foundry. In Electrolysis has the capacity to produce 130,000 t of primary metal annually, and how the electrolytic cells are powered exclusively by el. energy, this plant consumes up to 20 percent of total consumption of el. energy in the whole B&H, while the plant machinery in the Anodes and the Foundry are generated by gas, which accounts for only 2 percent of the total Aluminij’s cost per annum. Electrolytic cells cannot be run on gas!

Apart from the production of primary metal, Aluminij annually recats an additional 30 thousand tons in the Founding furnaces, which therefore are run by the gas, and the fastest way to significantly raise Aluminij production capacities is to increase the amount of this recast, which would slightly increase gas consumption and, with a total of 160,000 tons (primary and prefabricated aluminum), the factory production would increase to record 184,000 tons per year, in full capacity.

The raw material for this is the unalloyed aluminum that Aluminij has a recasting capacity of over 2000 tons a month, which no one in the EU and CEFTA countries produces, while the existing customs rate for import from other markets made the business completely unprofitable. By abolishing this duty, Aluminij, through Swiss and US companies, is embarking on the import of this metal supplied by the co-operators from the Asian and African markets. This job will lead to a yearly increase in exports of BH in the amount of US $ 55 million, which will have an automatic positive impact on the balance of B&H, the state tax and pension system, as well as employment growth and public spending.

Therefore, Aluminij has no direct contact with any Russian company, and even if it had it remains unclear why a certain market is more acceptable to the circles than the other, so why does not it come to question how the Russian gas has been used in almost whole Bosnia for 40 years, including Sarajevo (which is totally acceptable and normal thing for Aluminij).

Furthermore, since none other than Aluminij in B&H needs and does not use non-alloyed aluminum, this Decision of the Council of Ministers has made no damage to anyone, and the inactive rate of duty has become a powerful mechanism of economic upswing with almost unimaginable positive effects. That is why this initiative is supported by the Council of Ministers of B&H, the Government of FB&H, the Indirect Taxation Authority of B&H, the Foreign Trade Chamber of B&H and the FB&H Chamber of Commerce.

Also, since the media attack on Aluminij mentioned the EP B&H, we are warning that the term a harmful contract is legal qualification and that unlawful use of this term entails responsibility. Aluminij signed the contract with EP B&H last year under market conditions from the referent Hungarian Stock Exchange for el. energy, but Aluminij doesn’t cooperate with EP B&H since June 30th this year, due to market disturbances. But all invoices of the EP B&H were paid in advance! Furthermore, we particularly emphasize that Aluminij's debt to Elektroprivreda HZ Herceg-Bosna have not been cancelled, but is a subject to the ongoing restructuring of inherited liabilities!

Aluminij has neither the mechanisms nor the will for world conspiracies, Aluminij has its 900 employees and even 40,000 people who depend on it. Aluminij has its own commitments, it participates with 6 percent of GDP in B&H. Aluminij has overflowing problems with which it is struggling, and even if it would be good to have cheap Russian and Chinese and American and Arabian gas in the cells, it's simply not possible technologically!

Aluminij would want a normal price of el. energy and a clear state strategy of subsidizing the industry. Aluminij would be happy for B&H not to export its surpluses of energy while Aluminij is forced to import (more expensive) electricity! Aluminij wants to be recognized and treated as the country's strongest power system stabilizer, and above all not have to pay absurd 22 million KM per year for networking, while power companies are exempt from this charge when exporting electricity. Aluminij stands for B&H to stimulate the development of higher levels of industrial processing rather than export of raw materials...But all of this is unfortunately not the case!

Suspension of the customs tariff on the import of unalloyed aluminum is at the start of the state care for its economic operators of strategic importance, and the media's undermining of these truly positive moves cannot lead to any good. Aluminij leaves its doors open to the media and refuses to participate in politicizing the economy. Aluminij is a global company that has a globally recognized product, and every capital is welcome, with no distinction and prejudice.

Corporate Communications