Serbia Govt takes over US Steel facility to prevent job losses

Metal Stocks  |  2012-01-30 03:13:22   |   By

U.S. Steel complained about difficulties in business operations, which is why it decided to leave Serbia, he said. The Prime Minister announced that an agreement on Zelezara Smederevo acquisition will be signed on 31 January.

BELGRADE (Scrap Monster): Serbian Government has taken over the facility of US Steel in Serbia for a symbolic $1 to ensure the plant is not shut down and to help prevent job losses.

Announcing the decision ,Serbia Prime Minister and  Finance Minister Mirko Cvetkovic said that US Steel is leaving Serbia because of the global economic crisis.

“We have no intention to run the Smederevo steelworks in the long run, but we will seek a strategic partner, he said, adding that Zelezara Smederevo is one of the largest exporters from Serbia.”

He said that the Serbian government has acquired all fixed assets and net working capital worth €100 million. The company has no debts and has not taken any loans from banks, the Prime Minister said, adding that so far there are no plans to change the status of workers.

The Prime Minister said that there will be no layoffs and that a joint management will be formed. Cvetkovic said that the government has had regular contacts with the management of U.S. Steel in the last three years. 

U.S. Steel complained about difficulties in business operations, which is why it decided to leave Serbia, he said. The Prime Minister announced that an agreement on Zelezara Smederevo acquisition will be signed on 31 January.

The Smederevo steelworks employs about 5,500 workers, makes 5% of total Serbian production and about 14% of Serbian exports.

Headquartered in Pittsburgh, Pa., US Steel is an integrated steel producer with major production operations in the United States, Canada and Central Europe and an annual raw steelmaking capability of 31.7 million net tons. The company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries.