CMC announced on Friday it was leaving CMC Sisak, formerly Sisacka Zeljezara, either by selling or closing down the steel mill, which brings into question 1,130 jobs.

"We agreed to cooperate with the unions on all the next steps, because we want to make sure the jobs are saved, that production is maintained, and we will seek solutions with the current owner," Popijac said after a meeting.

He said CMC had still not directly stated what it intended to do, adding that this would become clear in the next couple of days, after a meeting with the management.

"The ministry and the government will certainly do everything to prevent any disruptions," said Popijac.

Asked to comment on media speculations that CMC's announcement had to do with its inability to contact the economy ministry, he said many talks were held with the company in Croatia to discuss problems and demands as well as help it with key energy partners - the HEP power company and the INA oil and gas company - adding that CMC should have no complaints about that.

Asked if it was possible to lower energy prices for CMC as a big consumer, Popijac said HEP leaders told him that the Sisak steel mill paid the lowest electricity price possible, adding that the gas price was reduced to 2.1 kuna per cubic metre.

The president of the metalworkers' union, Vedran Dragicevic, said the economy ministry could not allow 1,100 people to be laid off just like that and that Croatian laws did not allow it either.

He said the company's order book was full for the next eight weeks and that production would continue.