One of the two blast furnaces at Serbia's only steelmaker, Zelezara Smederevo, formerly US Steel Serbia, became operational on Monday, April 22, restoring the company's production after nine months, according to local media reports.
Minister of Finance and Economy Mladjan DInkic said that the Serbian government has decided to help the Smederevo steel mill in a difficult period of economic crisis, and start up production during a bad period for the steel industry.
The entire quantity of this year's output of the steel mill has already been sold, Dinkic said, adding that contracts have already been signed for half of the output, while contracts for the sale of the other half will be signed by April 31.
The minister stressed that the government is now running the plant, but that this is not a long-term solution, but rather a forced one, adding that serious strategic partners are still being sought.
"We are currently negotiating with one of the biggest steel producers in Europe and are trying to conclude a contract on long-term business and technical cooperation with them, in order for the steel mill to get raw materials necessary to work in favorable conditions, but we would like this to grow into a strategic partnership," Dinkic said.
The minister also announced that a deal on signing a preliminary agreement on supplies of sheet metal for car bodies with Kragujevac-based car factory Fiat is planned.
