US Steel purchases Serbian mill Sartid

US Steel purchases Serbian mill Sartid

As per the announcement made today by United States Steel Corp., its wholly owned subsidiary US Steel Balkan d.o.o. of Serbia agreed to purchase the financially troubled Serbian steel producer Sartid a.d. and its six subsidiaries against $23 million. The purchase is aimed to complete by the third quarter of 2003, after having received necessary approvals from the anti-monopoly authorities. US Steel officials expressed that they aim to convert the existing Sartid facilities into a profitable and competitive operation and thus to contribute in the economic development of the country in long term. Such acquisition will also give US Steel the opportunity to sell its products to especially the Balkan region and other European markets. US Steel Balkan will invest $150 million to Sartid over five years for working capital and restructuring, under an associated agreement. US Steel Balkan will spend at least $1.5 million for economic development activities.