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The Government of the Republic of Serbia

In the service of citizens

Smederevo steelworks will not shut down

Belgrade, 27 June 2012

Minister of Economy and Regional Development Nebojsa Ciric today stated that Smederevo steelworks will not be shut down and that the second blast furnace will not stop operating for the time being.

Following a meeting with representatives of the steelworks’ unions, Ciric said that this, however, might happen in the period ahead because of the difficult situation at the global steel market.

He announced that talks with the management of the steelworks will resume tomorrow regarding a huge potential deal which should be closed within the next ten days or so.

If the second blast furnace is switched off to silent mode, a possibility remains to continue the production at a reduced rate, he said.

Ciric noted that agreement has been reached to hold regular meetings between representatives of the government and unions of the steel plant because the steelworks is of strategic importance to Serbia.

State Secretary of Finance and Coordinator for the Smederevo steelworks Dusan Nikezic stressed that the government will try to find a solution and secure finances to keep the plant operational for the next two months.

Nikezic said that the plant will definitively continue operating at full pace in September, adding that the steelworks is the future of the Serbian economy, which is why the government will continue endorsing it.