Hesteel takes over Zelezara Smederevo – The state gets EUR 46 million

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- The process has been successfully finalized and I wish them luck and success – said Prime Minister at the press conference at the Government of Serbia and added that the EUR 46 million had been paid.

Vucic wished for the Chinese company to increase the production in Zelezara and to make Smederevo an even stronger, richer and more successful industry which would help Serbia progress even faster.

The Government of Serbia signed the agreement on the sale of Zelezara Smederevo for EUR 46 million with Hesteel, the sole bidder, on April 18.

Hesteel plans to invest EUR 300 million in Zelezara, to reach the maximum production of 2.1 million tons and to keep all 5,050 employees.

Director of Hesteel Serbia Iron & Steel Song Sihai said that the company had a long-term plan for the Serbian factory.

He emphasized that Hesteel would give its best to protect the employees’ interests, and that the advanced technology brought over from China and the investments in the employees and the environment would improve its operations in the coming years.

Song also expressed his gratitude to all the parties which had aided the successful takeover of the factory in the transitional period.

The new chairman of Zelezara also said that the company wished to establish a fund for the most socially deprived employees and so show that it took care of each one of them.