UralVagonZavod (UVZ) from Russia will decide by mid-February if and how it is going to take over Zelezara Smederevo, the Serbian Ministry of Finance and Economy told Tanjug on Wednesday.
The ministry hopes the invitation for tenders will be successful and stresses that UVZ has two options for taking over Zelezara Smederevo.
One option is for UVZ to buy all 100 percent of the company, while the other is to buy a majority share and run the company in a strategic partnership with the government, which would own 25 to 30 percent of the company, the ministry explained.
The government has been assured that UVZ is committed to the project and that the tender procedure will succeed, but the government always has a plan B, the ministry pointed out.
Head of Russia’s trade office in Serbia Alexander Khripunov said last week the matter regarding the purchase of Zelezara Smederevo could turn out successful.
The final decision, however, rests on UVZ, which follows its economic interest, he added.
Smederevo Mayor Jasna Avramovic expects good news concerning the arrival of a strategic partner at Zelezara Smederevo, and stresses that the company supports the whole city, which lies 46 km east of Belgrade, and is a strategic resource for the entire country.
“There is hope that UVZ will come to Smederevo and get the steel company going,” the mayor said, emphasizing that the financial situation in the city was difficult and that the standard of life had dropped because many of the Zelezara Smederevo workers were not getting paid in full.
The government will not allow the steel company, which celebrates its 100th anniversary in May, to die and everyone expects the situation with the Russian partner to be resolved positively, she noted.
U.S. Steel bought Zelezara Smederevo in 2003, but withdrew from Serbia in 2011 because of poor financial results, selling Zelezara Smederevo to the government for a symbolic sum of USD 1.
The government invited tenders to choose a strategic partner for the first time back in April 2012. The invitation was extended multiple times, the last time until February 28 this year. UVZ submitted its offer.
Source Tamjug
