Chinese company buys unprofitable Serbian metallurgical plant

The Chinese company Hebei Iron and Steel Group (HBIS) has signed an agreement to purchase a steel plant in Serbia in the town of Smederevo. On Monday, a $ 52 million deal was signed with the Serbian government, which has struggled for years to find a buyer.

HBIS President Yu Yong says that the Group's planned investments in the next five years should make the plant one of the most competitive in Europe. “We are delighted to secure investment for this metallurgical company using our new technologies in production. I am confident that we are competent enough to turn Smederevo into a new complex for the production of steel with improved equipment and improved product quality. We will build a modern facility in Smederevo for international cooperation between China and the countries of Central and Eastern Europe. "

Serbian Prime Minister Vucic says the deal is important for his country, which is in dire need of foreign investment. US Steel operated the company during 2002-2012, reselling it to the Serbian state for a symbolic price of $ 1 due to losses.

HBIS plans to invest at least € 300 million in a steel plant in Serbia.