Prime Minister and Minister of Finance Mirko Cvetkovic said January 27th that the government had bought off the steelworks Zelezara Smederevo from U.S. Steel for $1, it was announced on the Serbian government's website.
Cvetkovic said that U.S. Steel was leaving Serbia because of the global economic crisis.
- We have no intention to run the Smederevo steelworks in the long run, but we will seek a strategic partner - he said, adding that Zelezara Smederevo was one of the largest exporters from Serbia.
He said that the Serbian government had acquired all fixed assets and net working capital worth €100 million.
- The company has no debts and has not taken out any loans from banks - the Prime Minister said, adding that no plans to change the status of workers existed at the moment.
The Prime Minister said that there would be no layoffs and that a joint management would be formed.
Cvetkovic said that the government had had regular contacts with the management of U.S. Steel in the previous three years.
U.S. Steel complained about difficulties in business operations, which is why it decided to leave Serbia, he said.
The Prime Minister announced that an agreement on Zelezara Smederevo acquisition would be signed on January 31st.
The Smederevo steelworks employs about 5,500 workers, makes 5% of the total Serbian production and about 14% of Serbian exports.
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