Ukrainian steel producer Donetskstal Group is continuing talks for the acquisition of the Zelezara Smederevo steel mill in Serbia, as stated by the company to Kiev-based Ukrainian news agency Interfax-Ukraine.
"Information on the stoppage of talks that appeared in media reports are rumors which are not true. At present, the Serbian government is considering the possibility of participating in the process," Donetskstal officials said.
Earlier media reports has stated that Donetskstal had suspended talks on the acquisition of the Serbian company due to expected difficulties in returning it to profitable operation.
Zelezara Smederevo is one of the largest Serbian companies, with 5,500 employees. The previous owner US Steel had planned to shut the plant down due to its inability to make a profit amid difficult global economic conditions. The Serbian government opposed this, returned the mill to state ownership and announced a tender to attract an investor. Bids will be accepted up to April 27.