Feronikeli Layoffs: 358 Workers Dismissed as Kosovo’s Largest Nickel Producer Shuts Down Operations Due to Rising Energy Costs

 Kosovo’s largest metallurgical company, NewCo Ferronikeli Complex L.L.C., has officially announced the dismissal of 358 workers, marking one of the biggest collective layoffs in the country’s industrial sector in recent years. The company cited the halt of production activities and the skyrocketing cost of electricity as the main reasons behind this drastic decision.

NewCo Ferronikeli Complex L.L.C.

According to the company’s official statement, the layoffs are being implemented in full compliance with the Kosovo Labor Law, as Ferronikeli faces what it described as an “unsustainable operational environment.” The management noted that despite continuous efforts to maintain production and preserve jobs, prolonged production stoppages and market instability have forced the company to restructure its workforce as part of a broader plan to ensure long-term financial and operational stability.

“This decision comes after more than two extremely difficult years of trying to maintain operations and preserve all jobs since the complete shutdown of production in October 2023,” Ferronikeli stated. “During this period, fixed operating costs, salaries, and maintenance of the complex have been entirely funded by the parent company.”

The Energy Crisis and Global Market Pressures

Over the past 24 months, Ferronikeli has been closely monitoring fluctuations in global metal markets, as well as the sharp increase in electricity prices across Europe — both external factors that have dramatically raised production costs. The company said these conditions have undermined its financial sustainability and made it impossible to continue operating at full capacity.

“Despite serious efforts to reduce costs, scale down operations, shorten working hours, and keep the main furnace in warm standby mode, the prolonged lack of revenue has made the company’s financial situation untenable,” the statement continued. “After careful evaluation, management has concluded that maintaining the current workforce without production has become impossible. Therefore, Ferronikeli has no alternative but to proceed with collective redundancies in full compliance with the law.”

Workers’ Rights and Legal Procedures

The company confirmed that all affected employees will receive their full legal rights and compensation up to their termination date. Individual notifications are being issued in accordance with labor law procedures.

“Ferronikeli remains committed to a fair, transparent, and respectful process toward every employee,” the management emphasized. “The company remains deeply committed to Kosovo and its people. Once market conditions allow the resumption of production, affected workers will be given priority for re-employment.”

A limited number of essential staff will continue to work to maintain the company’s structural integrity, manage mining licenses, and meet legal obligations.

Investigation by Labor Inspectorate

The Central Labor Inspectorate of Kosovo has confirmed that it is currently reviewing a formal complaint from a Ferronikeli employee regarding the collective dismissals. The worker alleged that employees are being pressured to sign termination agreements under duress.

The Inspectorate issued a statement saying:

“We inform the public that on November 4, 2025, we initiated an inspection procedure in full compliance with applicable legislation.”

This investigation will determine whether Ferronikeli’s layoffs adhere to the provisions of the Labor Law and whether the rights of the affected employees have been fully respected.

A Troubled Industrial Legacy

Founded as one of Kosovo’s largest industrial complexes, Feronikeli has faced multiple shutdowns and ownership changes since its privatization in 2006. The company has historically been a key player in Kosovo’s economy, both as a major exporter and as one of the largest private employers in the country.

In June 2022, the Yildirim Group, a multinational conglomerate based in Turkey, signed an agreement to acquire NewCo Ferronikeli from the BALFIN Group, which had previously owned all its shares. Since then, the company has been struggling to restart production amid market turbulence and rising operational costs.

Despite periods of profitability in the past, Ferronikeli has repeatedly faced challenges linked to volatile nickel prices, energy market instability, and domestic infrastructure limitations. The ongoing energy crisis in Europe — intensified by geopolitical tensions and reduced supply — has made energy-intensive industries like nickel production particularly vulnerable.

The Broader Impact on Kosovo’s Economy

The shutdown of Ferronikeli’s production and the dismissal of 358 workers are likely to have significant socio-economic implications for Kosovo. The company not only contributed to exports and industrial output but also supported hundreds of families in the surrounding municipalities.

Economic experts warn that this development reflects a larger structural problem in the region’s energy and industrial policy. Rising electricity prices, dependence on imports, and lack of energy diversification have placed heavy pressure on manufacturing companies.

Unless energy costs stabilize and industrial infrastructure improves, Kosovo risks losing other key industries facing similar challenges.

Outlook: Hope for Recovery Amid Uncertainty

While Ferronikeli’s management has expressed a commitment to resuming production once market conditions improve, no clear timeline has been announced. Industry analysts note that restarting such a complex metallurgical operation requires substantial investment, steady power supply, and favorable global metal prices — all of which remain uncertain.

For now, the story of Ferronikeli serves as a warning for other industrial sectors in Southeast Europe: without structural energy reform and competitive operating conditions, even the region’s strongest industrial giants can fall victim to global market shocks.