Following media reports indicating that Serbia plans to halt production at the loss-making Zelezara Smederevo steel plant, formerly US Steel Serbia, Serbian economy minister Nebojsa Ciric has stated he is not aware of such a government decision, while asserting that the government will not allow a complete closure, as reported by Serbian and international media sources.
Media reports had claimed that the Serbian government will shut down the last of the two blast furnaces at Zelezara. As SteelOrbis previously reported, at the end of May there were similar rumors about the suspension of another blast furnace, which were denied by the government. US Steel, the former owner of the steel plant, had halted the first furnace last year. The US steel producer sold the plant to the Serbian government for a symbolic $1 in late January this year.
Earlier this month, the deadline for binding offers for the sale of the plant was extended until September 10 this year. Ukraine-based Donetskstal Group, Luxembourg-based United Pilsen and Russian company Ural Mining and Metallurgical Company have already made bids for the plant.