The second blast furnace at the Serbia-based Zelezara Smederevo steel mill is to be idled from July 10 to September 1, as reported by Serbian media sources. The announcement was made by Serbian economy minister Nebojsa Ciric and was confirmed by company spokesperson Tijana Koprivica, who commented, "At this moment, it is economically justified and the best solution."
Minister Ciric told journalists that a temporary halt in production was discussed at a meeting between representatives of trade unions and management of the steel mill who agreed that, given the circumstances, the idling of the blast furnace would be the best possible solution in order to avoid new losses.
As previously reported by SteelOrbis, only last week the Serbian government had denied rumors stating that the company would be idled anytime soon.
US Steel, the former owner of the steel plant, had halted the first blast furnace at Smederevo last year. The US steel producer sold the plant to the Serbian government for a symbolic $1 in late January this year.
In early June, the deadline for binding offers for the sale of the Smederevo 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.