Steel mill tender extended by another two months

The deadline for submitting offers for a strategic partner for Železara Smederevo steel mill, which expires today, will be extended by two more months.

Izvor: Tanjug

Wednesday, 26.12.2012.

10:41

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BELGRADE The deadline for submitting offers for a strategic partner for Zelezara Smederevo steel mill, which expires today, will be extended by two more months. According to Radio Television of Serbia (RTS), the deadline will be extended for the second time, now until February 28. Steel mill tender extended by another two months The government had approved the previous deadline extension at the request of the only bidder, Russia's Uralvagonzavod (UVZ), as the company asked to be given more time to make an offer. In March 2003, the steel mill, which then went by the name of Sartid, was sold to U.S. Steel for USD 23mn. The Serbian government bought back Zelezara Smederevo from the U.S. company U.S. Steel, since the company was withdrawing from the business due to losses and falling prices of steel on the global market. The government initially issued the public invitation for the selection of a strategic partner on April 18, amending the invitation later to extend the deadline for the submission of binding bids to December 26. Uralvagonzavod was the sole bidder. A ten-member expert delegation of the Chermet Institute of Iron and Steel Industry, from Russia, tasked with inspecting the state of the Serbian steelworks on behalf of the potential strategic partner Uralvagonzavod, and also with collecting information concerning the legal and financial side of the business, visited Zelezara Smederevo at the beginning of December. The majority of the 5,000 employees in Zelezara are on paid leave, receiving about 60 percent of the regular earnings, while a smaller number are working at the facilities as maintenance staff. Experts agree that the steel mill needs a new owner as it is unsure for how long the Serbian government will be able to manage funding the factory whose production was suspended at the beginning of July. A view of Smederevo steel mill (file) Tanjug

Steel mill tender extended by another two months

The government had approved the previous deadline extension at the request of the only bidder, Russia's Uralvagonzavod (UVZ), as the company asked to be given more time to make an offer.

In March 2003, the steel mill, which then went by the name of Sartid, was sold to U.S. Steel for USD 23mn.

The Serbian government bought back Železara Smederevo from the U.S. company U.S. Steel, since the company was withdrawing from the business due to losses and falling prices of steel on the global market.

The government initially issued the public invitation for the selection of a strategic partner on April 18, amending the invitation later to extend the deadline for the submission of binding bids to December 26.

Uralvagonzavod was the sole bidder.

A ten-member expert delegation of the Chermet Institute of Iron and Steel Industry, from Russia, tasked with inspecting the state of the Serbian steelworks on behalf of the potential strategic partner Uralvagonzavod, and also with collecting information concerning the legal and financial side of the business, visited Železara Smederevo at the beginning of December.

The majority of the 5,000 employees in Železara are on paid leave, receiving about 60 percent of the regular earnings, while a smaller number are working at the facilities as maintenance staff.

Experts agree that the steel mill needs a new owner as it is unsure for how long the Serbian government will be able to manage funding the factory whose production was suspended at the beginning of July.

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