Q:
A:
Government buys off Smederevo steelworks from U.S. Steel
Belgrade,
27 January 2012
Prime Minister and Minister of Finance Mirko Cvetkovic said tonight that the government has bought off steelworks Zelezara Smederevo from U.S. Steel for $1.
Cvetkovic said that U.S. 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.
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.
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