Serbia to open new tender to sell former US Steel unit this week.

By bne IntelliNews October 2, 2012
Serbia will open this week a new tender to find a strategic partner for troubled steel maker Zelezara Smederevo, economy and finance minister Mladjan Dinkic was quoted as saying by news agency Beta. Dinkic said that the negotiations for the sale of 75% of the company to a large Russian company are going to be wrapped up soon. The remaining 25% will stay in the hands of the Serb government. Dinkic said that the state will open a tender for Zelezara because of the strong interest expressed by the unnamed Russian investor to acquire the Serbian steel maker and even build some new capacities that at present do not exist at the Smederevo-based company. He added he believes the production at Zelezara will be restarted by end-2012. Zelezara has a 12% share in Serbia's exports and accounts for 5% of the country's industrial output but its production has been halted since July 10 because the company was unable to cope with the unfavourable global market prices and the lack of raw materials. According to Dinkic, the halt in production will have a negative impact on Serbia's trade balance, raising the current account deficit to a record 10% of GDP this year, he said. The government made an attempt to sell the company earlier this year after buying it back from US Steel for a token price of USD 1 at end-January. The tender, however, failed as none of the three interested companies filed an offer within the deadline. Russia's Ural Mining and Metallurgical Company, Luxemburg-based metallurgy holding United Pilsen and Ukrainian steel producer Donetskstal have indicated they are interested in Zelezara.

Related Articles

Serbia's external debt up 4.7% y/y to EUR 25.4bn at end-Feb 2013.

Serbia's foreign debt rose an annual 4.7% y/y to EUR 25.4bn at end-February after climbing 6.6% on the year in January, central bank data showed. In monthly terms, however, the external ... more

Vip Mobile Serbia signs five-year managed services deal with Ericsson.

Swedish company Ericsson said it has signed a five-year managed services contract with Vip Mobile - the Serbian arm of Telekom Austria Group. The agreement includes field maintenance services for ... more

Telenor and Societe General possible buyers of Serbia's KBC Banka - report.

Norwegian telecommunications firm Telenor and France's Societe General are seen as possible buyers of the Serbian unit of Belgium's KBC Group, which has been on sale for several years now, a ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss