American company CMC that owns the steel mill in the central Croatian town of Sisak has announced it would sell the plant or close it down in the absence of new owners.

The news comes as a shock to over 1,000 of the company’s workers who fear layoffs.

Steelworkers union official Mato Somic says he hopes the mill would find a new owner soon as much investment has been made to modernise the plant, even though the parent company has not been able to increase the profitability so far.

CMC has invested a billion kunas (134 million Euros) so far, but believes making the plant profitable would require a lot more money they would prefer to invest somewhere else.

CMC would continue production for now until all current orders have been fulfilled. It would take no more new orders, daily Jutarnji List writes.

One of the potential candidates for the takover is Petar Pripuz's CIOS, as well as companies from India and Switzerland.