US Steel and the Serbian government enter talks about the Smederevo plant

Friday, 27 January 2012 00:57:47 (GMT+2)

Pittsburgh, Pennsylvania-based US Steel has entered talks with the Serbian government over the future of the plant in Smederevo, Serbia. SteelOrbis reported on January 10, 2012 that US Steel had to cut back the work week to four days in order to reduce costs. It was reported again on January 25, 2012 that the Serbian government was willing to step in and help US Steel in order to stop the shutdown of the plant altogether.

The two entered talks that entailed details about a potential buy back of the company. The current administration for the Serbian government is facing a reelection and would be hurt if they let one of the country's largest employers and exporters close its doors. The US$1.3 billion (€1 billion) deal has been postponed for review by the International Monetary Fund (IMF) because Serbia's budget didn't meet the terms of the deal.

While the Serbian government is interested in saving the steel plant, they have made it clear that this is not a permanent purchase but rather a technique to save the plant and then continue to look for future investors.

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