Serbia said on Thursday it was looking into ways to improve performance at a key U.S. Steel-owned steel mill, saying it hoped to avert the potential closure of a major exporter and employer for the Balkan country.
“We hope there will be no closure, after all we are talking about 5,500 employees,” Serbian Economy Minister Nebojsa Ciric told reporters after a business forum in Belgrade.
“We are seeking a solution and we are in constant contact with the company,” he said.
Ciric’s comments came after U.S. Steel Corp chief executive John Surma said last week that the company was looking at ways to improve operations at its underperforming Serbian unit.
Surma said the operating loss in U.S. Steel’s European business — which includes plants in Serbia and Slovakia — increased to $50 million in the third quarter from an $18 million loss in the second, mainly due to high raw materials costs, pressure from imports and the economic crisis.
On Thursday, U.S. Steel Serbia said its troubles in the country were linked to its complete reliance on purchased coke, a less favorable product mix, a slower recovery in the Balkan region and pressure from lower-priced imports.
“In response to reduced spot market prices and weak demand, a blast furnace in Serbia that was idled during the second quarter remained idled throughout the third quarter,” the company said in a statement.
“We will continue to closely follow market conditions and to adjust our operations in accordance with our customer demand,” it said.
