US Steel announces sale of Serbian unit to the Republic of Serbia

Tuesday, 31 January 2012 02:08:14 (GMT+2)

Pittsburgh, Pennsylvania-based US Steel announced Monday finalized plans to sell its Serbian unit back to the Republic of Serbia for a nominal price. US Steel had purchased the steel plant in 2003 after the ousting of President Slobodan Milosevic for US$33 million. Due to the economic crisis Serbia is facing, US Steel entered talks with government officials on January 26 to discuss the future of the plant. The Serbian government's main concern was saving the plant because it was a large employer and exporter for a country facing high unemployment numbers.

US Steel reported that they expect to record a total non-cash charge of between US$400 and US$450 million in the Q1 of 2012, which includes the expected loss on the sale and a charge of approximately US$50 million to recognize the cumulative currency translation adjustment related to the company's net investment in Serbia. The expected closing date of the sale is January 31, 2012.

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