Italian group Danieli, a leading producer of plant equipment and machinery for the metalmaking industry, has inked a memorandum of understanding (MoU) for the construction of a special steel production facility in Serbia, in order to enhance its presence in the special steel market. Danieli, which already owns the Italy-based special steel mill Acciaierie Bertoli Safau (ABS), inked the agreement with Serbia's economy minister Nebojsa Ciric and with the mayor of Sabac, the town which will host the planned production facility.
The town of Sabac has been chosen due to its strategic position, lying directly on the Sava river, not far from Belgrade and from the Pan-European Corridor X between Austria and Greece. According to the MoU, Danieli's investment will amount to €500 million and the mill will have an annual production capacity of 800,000 mt. The business will be mainly focused on exports of special steel products used in the energy, mechanical and automotive industries, directed to central European countries.
Speaking to the Italian news agency Ansa, Danieli CEO Franco Alzetta stated, "The company has decided to invest in Serbia because of the country's work culture, energy and disposition to accept new challenges."