SARAJEVO, Nov 1 (Reuters) - Steel and metal producers in Bosnia, including ArcelorMittal, warned on Monday they will have to lay off workers and close some production plants if the government doesn't intervene to curb soaring electricity prices.

Nikhil Mehta, the general manager of ArcelorMittal's steel-making plant in the central town of Zenica, said a 125% hike in electricity prices, along with a 400% price rise for key input coking coal, would make production unprofitable.

"We really cannot survive with such kind of increases," Mehta told a news conference in the Bosnian capital of Sarajevo.

ArcelorMittal Zenica uses around 500,000 megawatts (MW) of electricity annually.

In its new contract proposal, power utility EPBiH has offered ArcelorMittal Zenica a price increase of 70 euros/MW, equating to an extra 35 million euros ($41 million) a year, Mehta said.

He said losses would be lower if the company halted production and laid off workers rather than continued trying to operate under such prices.

ArcelorMittal employs 2,300 people at its Zenica plant, with around 10,000 more jobs linked to it directly or indirectly.

Since early September, EPBiH has been offering new contracts to companies with price hike ranging from 50% to 150%, said Adnan Smailbegovic, the president of the employers' association in Bosnia's autonomous Bosniak-Croat Federation.

Smailbegovic said the government should intervene over the price hikes in export-oriented industries, such as makers of car parts.

"With this price hike, we will all go bankrupt," said Adem Hanic, the director of TDM Group, which employs around 800 people producing steel components for the transport industry.

Mehta noted that electricity prices in neighbouring Serbia, where ArcelorMittal faces competition, have not been increased.

Serbia operates one steel mill owned by HBIS Group Serbia, an arm of Hesteel, China's biggest steelmaker.

($1 = 0.8629 euros) (Reporting by Daria Sito-Sucic in Sarajevo and Aleksandar Vasovic in Belgrade Editing by Mark Potter)