The Donetskstal Group is in talks on the acquisition of Zelezara Smederevo (ZS) steel mill in Serbia, the company’s press service told Interfax-Ukraine on April 17.
“Information on the stoppage of talks that appeared in media reports are rumors that are not true. At present, the Serbian government is considering the possibility of participating in the procedure,” the press service of private joint-stock company Donetskstal Metallurgical Plant said.
Earlier media reports said that Donetskstal had suspended talks on the acquisition of the Serbian company due to difficulties with returning it to profitable operation.
Zelezara Smederevo is one of the largest Serbian companies, where 5,500 people work. Earlier, U.S. Steel owned the company, and it planned to shut it down due to its inability to make a profit under conditions of global crisis. The Serbian government opposed this, returned the mill to state ownership and announced a tender to attract an investor.
Bids are accepted by April 27, 2012 and offers can be submitted by May 4, 2012.
Private joint-stock company Donetskstal metallurgical plant was established on the basis of DMZ. It produces metal goods (60% of gross revenues) and sells coke (40%).
