Serbia published its plan B with respect to Zhelezara Smartyovo

The Serbian government intends to resume the production of steel at a metallurgical plant in Smeridovo after the Russian NGO Uralvagonzavod abandoned the acquisition of Zelezara Smederevo D.O.O. This was announced by Bloomberg by telephone Minister of Finance Serbia, Dinkich.

Serbia will resume the work of one of the domain furnaces of the Ironero Smereudovo, Rolosaro Minemine.
Ready to return to jobs, employees of the plant are offered 80% of their full wage. The purchase of metallurgical raw materials will be provided by the government of the republic, Mr. Dinkich said at a meeting with trade unions on Friday.

“Given the situation that has developed throughout the world and in the region in particular, this proposal is the most acceptable,” said the Minister of Finance of Serbia.

The raw materials for the Metallurgical Plant in Smeridovo, which, 25 kilometers east of Belgrade, volunteered to supply Rinat Akhmetov, the owner of the Ukrainian group Metinvest. In addition to him, Donetskstal and the Duferco SA mining company made such a proposal, Dinkich said.

In the implementation of its plans, the government of Serbia will not spend the money of its taxpayers. “The idea is to optimize the costs of the metallurgical plant and create a special working capital to finance wages and purchases of raw materials,” Dinkich emphasized.

Restation of production in Zhelezaro Smartyovo will cost Serbian officials about 20 million euros per month, which they expect to pay more than to pay for the sale of steel for export.

Zhelezaro Smeridovo, before his stop, was the largest employer in the region, providing employment of more than 5 thousand people and generated more than 15% of the annual export of Serbia. The metallurgical capacities of the enterprise allow you to produce 2 million 200 thousand tons per year.