Smederevo steel mill to start production in April

BELGRADE The Zelezara Smederevo steel mill will start up production within 30 days, in the second half of April. This was announced on Tuesday by State Secretary with the Ministry of Economy and Finance Aleksandar Ljubic, who spoke for Tanjug. Smederevo steel mill to start production in April According to Ljubic, first shipments of raw materials are expected at the mill within days. All experts and technical capacities at the factory have been engaged in the process of restarting the blast furnace which is a very technically demanding job, he said. "As far as production itself, everything will happen on schedule," said Ljubic. The Smederevo-based factory - called Sartid at the time - was sold to U.S. Steel in March 2003 for USD 23 million. In January 2012, the American company sold it back to the Serbian government for USD 1 due to accumulated losses and the drop in the price of steel on the world market. In April the same year, the government issued a tender for a strategic partner for Zelezara Smederevo, which was extended four times. The last tender expired on February 28, and the only potential buyer Uralvagonzavod from Russia backed out, after which Serbian Minister of Economy and Finance Mladjan Dinkic proposed a plan B, which involves starting up production with government funds. Under the plan, one blast furnace will become operational in April, but according to union representatives at the steel mill, the second one will not be fired up by the end of this year. (file) Tanjug

Smederevo steel mill to start production in April

According to Ljubić, first shipments of raw materials are expected at the mill within days.

All experts and technical capacities at the factory have been engaged in the process of restarting the blast furnace which is a very technically demanding job, he said.

"As far as production itself, everything will happen on schedule," said Ljubić.

The Smederevo-based factory - called Sartid at the time - was sold to U.S. Steel in March 2003 for USD 23 million. In January 2012, the American company sold it back to the Serbian government for USD 1 due to accumulated losses and the drop in the price of steel on the world market.

In April the same year, the government issued a tender for a strategic partner for Železara Smederevo, which was extended four times.

The last tender expired on February 28, and the only potential buyer Uralvagonzavod from Russia backed out, after which Serbian Minister of Economy and Finance Mlađan Dinkić proposed a plan B, which involves starting up production with government funds.

Under the plan, one blast furnace will become operational in April, but according to union representatives at the steel mill, the second one will not be fired up by the end of this year.