HPK engineering to manage Zelezara - There are no layoffs, USD 20 m to be poured in production

Zelezara Smederevo (Photo: zelsd.rs)

As the governmental Office for media relations announced, the Government accepted the decision of the Commission for selection of the most favorable bidder and delegated respobility to the Ministry of trade to implement necessary activities for conclusion of the Contract on providing services of managing and advising with the company.

Dutch company is presented by John Goodish who was managing previously U.S. Steel in Kosice and Peter Karamash and KMPG privatization advisor was proposed to manage the steel plant. Forecast on this selection for new management was published by Politika last week.

HPK Engineering committed that in six months, the steel plant will be profitable, that it will keep headcount and invest USD 20 m to boost production, the Prime Minister, Aleksandar Vucic said.

In the short-listed competition for management of Zelezara, there were two companies: USA-based Esmark and HPK Engineering from the Netherlands..

The Government of Serbia announced it will try again to privatize Zelezara.