Serbia to Restart Its Sole Steel Plant After Sale Fails
Mar. 4, 2013
Serbia plans to restart one furnace at Zelezara Smederevo d.o.o., its sole steel producer, after NPO Uralvagonzavod OAO of Russia dropped plans to buy the state-owned company, Bloomberg reports.
The Balkan country isn’t “giving up the idea of finding a strategic partner for Zelezara,” Finance Minister Mladjan Dinkic said in a phone interview today.
Dinkic met today with Prime Minister Ivica Dacic and President Tomislav Nikolic to discuss the future of the company after Uralvagonzavod, the only investor to have expressed interest in the Smederevo-based plant, placed no bid by yesterday’s deadline.
Serbia has been looking for a strategic partner for the unprofitable steel producer since last January, when U.S. Steel Corp. (X) sold it back to the government for $1. The government will use Zelezara proceeds from previous product sales to buy raw materials from companies willing to offer favorable payment conditions, Dinkic said before meeting with unions today…