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US Esmark only bidder for Serbia sole steel plant
(MENAFN- The Peninsula) -US steel group Esmark was the only bidder to buy a majority stake in Serbia's sole steel plant Smederevo, the national privatisation agency said on Friday.
The negotiations with Esmark on acquiring the 80.81-percent stake in Zelezara Smederevo should be concluded within the next few days and a purchase deal signed by the end of the month, it added.
The Serbian government, which is to retain the remaining 20 percent, has been looking for a strategic partner for the plant since US Steel withdrew in 2012.
The US steel giant, which bought the bankrupt plant for 33 million dollars in 2003, decided to pull out because of the global economic downturn.
The government then bought the plant, 40 kilometres (25 miles) east of Belgrade, from US Steel in January 2012 for the symbolic price of one dollar.
At the time, the government said its move to buy back the plant was aimed at preventing the shedding of about 5,500 jobs and to keep it operating while a new long-term strategic partner was sought.
Since then, three previous tenders failed as none of the three initially interested companies - Luxembourg-based United Pilsen, the Donetsksteel Group from Ukraine and Russia's Ural Mining and Metallurgical Company - had made a formal bid.
Zelezara Smederevo, with annual capacity at about two million tonnes, is the Balkan country's main exporter.
It accounts for 14 percent of Serbia's overall exports.
Currently, only two of its three blast furnaces are operating.
The negotiations with Esmark on acquiring the 80.81-percent stake in Zelezara Smederevo should be concluded within the next few days and a purchase deal signed by the end of the month, it added.
The Serbian government, which is to retain the remaining 20 percent, has been looking for a strategic partner for the plant since US Steel withdrew in 2012.
The US steel giant, which bought the bankrupt plant for 33 million dollars in 2003, decided to pull out because of the global economic downturn.
The government then bought the plant, 40 kilometres (25 miles) east of Belgrade, from US Steel in January 2012 for the symbolic price of one dollar.
At the time, the government said its move to buy back the plant was aimed at preventing the shedding of about 5,500 jobs and to keep it operating while a new long-term strategic partner was sought.
Since then, three previous tenders failed as none of the three initially interested companies - Luxembourg-based United Pilsen, the Donetsksteel Group from Ukraine and Russia's Ural Mining and Metallurgical Company - had made a formal bid.
Zelezara Smederevo, with annual capacity at about two million tonnes, is the Balkan country's main exporter.
It accounts for 14 percent of Serbia's overall exports.
Currently, only two of its three blast furnaces are operating.
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