For the purpose of overcoming the effects of the global crisis effects, US Steel Serbia is considering making further output cuts at its plant in Smederevo in central Serbia, as recently reported by international media sources. No specific details have been given for the new output cutbacks. US Steel Serbia already turned off one of the two blast furnaces at Smederevo in the second quarter this year.
US Steel Serbia has been working far below its designed capacities and news about planned dismissals has leaked from Pittsburgh, Pennsylvania, US, the headquarters of US Steel. Some 5,000 workers live in fear of dismissal or of the closing down of the factory. The management in Serbia are considering measures that could be taken in order to improve the position of US Steel Serbia. The Serbian government is also making efforts to ensure employees at the steel works keep their jobs. Serbian Economy and Regional Development Minister Nebojąa Ćirić said it was very important for the state that all the 5,000 work jobs should be kept as they represent the main source of income for many families. The companies is facing difficulties in its work due to the present situation in the world steel market.
An agreement has been reached mostly due to state intervention and a reduction in local and municipal fees. In addition, the company's annual ecology and environment protection fees have been reduced from 100 million dinars to two and a half million dinars.
US Steel Serbia employs some 5,400 workers, with 5,000 of those in Smederevo. Before its 2006 redundancy program, the company had 8,500 workers. Last year, production was reduced to 1.2 million metric tons, whereas its capacities are twice that figure.