Železara Smederevo

Prime Minister Aleksandar Vucic has received CEO of Zelezara Smederevo steelworks Hesteel Serbia Sihai Song.

According to the Serbian government, the meeting was also attended by Ambassador of China to Serbia Li Manchang.

BELGRADE - Over 50 percent of the world steel market is in the hands of the Chinese and they in their long-term calculations have a reason or coming to our market, Serbian Minister of Economy Zeljko Sertic said Tuesday.
    

Serbia has put the troubled giant up for a sale after it spent a year under the management of a Dutch-based company HPK Engineering BV and unsuccessful privatization talks with US company Esmark.The government earlier said it was negotiating with China's HBIS Group, the world's second largest steel producer, which has reportedly expressed interest in investing some 300 million euro in the mill.

A call for tender has been issued for Serbia's sole steel mill Zelezara Smederevo, setting the starting price in the privatization process at EUR 45.7 million.

The invitation, published in the Politika daily, says the estimated market price of the assets on December 31, 2015 was EUR 91.3 mllion, the initial price being 50 percent of this sum.

A memorandum will be signed in late November with the Chinese company HBIS, which is interested in acquiring the Zelezara Smederevo steel plant.

Minister of Economy Zejko Sertic made the announcement on Tuesday, according to the government website, and added that the memorandum will be signed during the visit of Prime Minister Aleksandar Vucic to China.

After four years, the second blast furnace in the Zelezara Smederevo steel mill was fired up on Friday.

The police on Wednesday morning started checking the business activities of Zelezara Smederevo steel factory's former management.

B92 has received confirmation for this, and learned that inspectors are checking documents related to transportation of goods, on suspicion there were "irregularities."

Contract signed with new Zelezara management

SMEDEREVO -- Aleksandar Vucic has said that the signing of the contract with the new Zelezara Smederevo management "will directly impact the country's GDP."

The government will have no additional costs, the prime minister said on Saturday, adding that the new management will enter Zelezara as of Monday.

SMEDEREVO - Head of Zelezara Smederevo Bojan Bojkovic has said that the steel company's profit will be divided with HPK Engineering, which will take no more than 30 percent.

SMEDEREVO - The contract with HPK Engineering BV as the new management of Zelezara Smederevo was signed in Smederevo on Saturday.