In 2015, Zelezara Smederevo does not generate profit - Steel price fall spoils plans of management

(Photo: zelsd.rs)

- We are still making final accounts for 2015, but we are not generating profit. No one has profit. All companies in the world lost funds for low steel prices at the world market– Kamaras said for B92.

In early 2015, HPK Engineering, with the support of Serbian government, took over management of Smederevo-based steel plant. It was then expected that six months after new management is appointed at Zelezara that it starts operating profitable.

No one, however, could not assume that price of world steel will fall for 35%. The offer of steel in the world is double compared to demand. Only a ton of hot rolled belts produced in Smederevo-based Zelezara as of the beginning of 2015 is cheaper for USD 160 USD.

In the meantime, 5.000 employees in Smederevo receive salary every month and the government and management promise it will stay like this.