Zelezara Smederevo to temporarily halt production between July 10th and September 1st

Zelezara Smederevo steelworks will temporarily halt production from July 10th until September 1st, by putting the second blast furnace into hibernation, Minister of Economy and Regional Development Nebojsa Ciric said Monday.

The minister told journalists that a temporary discontinuation of production had been discussed at a meeting with representatives of the trade unions and management of the steel mill, who had agreed that, given the circumstances, that would be the best possible solution.

In that period, a certain number of workers will go on a paid leave, while others will take a vacation, the minister said, stressing that Zelezara Smederevo was strategically important for the Serbian economy, and therefore would not be closed.

Last week the company's management announced that in the first week of July, the second blast furnace would be put into hibernation because of the need to change the way the company was funded.

On April 18th, the government invited tenders to choose a strategic partner for the iron maker. The deadline for bids was May 4th, and it was extended until June 10th and later until September 10th at the request of potential buyers, B92 reports.