Q:
A:
Esmark sole valid bidder for Zelezara privatisation
Belgrade,
9 January 2015
Chair of the Commission for the implementation of the Strategic Partnership model for the privatisation of the Zelezara Smederevo steelworks said that a total of three bids arrived in a tender for the privatisation of Zelezara Smederevo and only one bid, by US company Esmark Inc., is valid.
Author:
Tanjug
He said that Esmark should acquire an 80.01% stake in the steelworks and the contract should be signed no later than 31 January.
He also expects negotiations with Esmark to be completed by 15-17 January, so that the contract could be signed on 30 January, or on the last day of the month at the latest.
Esmark complied with all the terms of the tender, and the Commission will review this offer in detail during the day, said Bojkovic.
The state will keep a 19.99% stake in Zelezara’s ownership structure, he added.
Letters of interest for the privatisation of Zelezara Smederevo were sent by ten companies, and six of them filed requests for the purchase of privatisation documents.
The buyer will have to start production in the second blast furnace at the steelworks that will work with at least 50% of capacity by the end of 2016, and to maintain full production of furnace 1.
Minister of Finance Dusan Vujovic said today that the sale of the Smederevo steelworks is an attempt to provide a new life to the plant, and expressed the hope that the company Esmark will reach a production of a maximum of two million tonnes of steel a year, and maybe more.
Vujovic said at the opening of bids for the privatisation of steel mill that he expects the process of privatisation to contribute a rise of 1.2% to 1.5% of GDP.
According to Vujovic, the Smederevo steel plant could be one of the major exporters of raw materials and be competitive in the region.
He also expects negotiations with Esmark to be completed by 15-17 January, so that the contract could be signed on 30 January, or on the last day of the month at the latest.
Esmark complied with all the terms of the tender, and the Commission will review this offer in detail during the day, said Bojkovic.
The state will keep a 19.99% stake in Zelezara’s ownership structure, he added.
Letters of interest for the privatisation of Zelezara Smederevo were sent by ten companies, and six of them filed requests for the purchase of privatisation documents.
The buyer will have to start production in the second blast furnace at the steelworks that will work with at least 50% of capacity by the end of 2016, and to maintain full production of furnace 1.
Minister of Finance Dusan Vujovic said today that the sale of the Smederevo steelworks is an attempt to provide a new life to the plant, and expressed the hope that the company Esmark will reach a production of a maximum of two million tonnes of steel a year, and maybe more.
Vujovic said at the opening of bids for the privatisation of steel mill that he expects the process of privatisation to contribute a rise of 1.2% to 1.5% of GDP.
According to Vujovic, the Smederevo steel plant could be one of the major exporters of raw materials and be competitive in the region.
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