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Serbian factory actively interested in Russian companies

Despite the fact that the plant «Zelezara Smederevo» steelmaking, owned by Serbia, has long been a loss-making enterprise, the interest of Russian investors it does not disappear. After the «Uralvagonzavod» his attention to the asset company demonstrated «Red October» — however, this company is primarily interested in the issue of rolling special steels, and because we are talking about sharp production cuts. The project in this reading makes analysts doubt as fraught with layoffs, for which Belgrade is unlikely to look with approval. That did not stop the Volgograd Steel Works to apply for the tender for the sale of «Zelezara Smederevo», to be held this month.

According to the general director of «Red October» Dmitry Gerasimenko, the plant sends to European exports about 30% of produced in the year 400 000 tonnes of special steels, the acquisition of the «Zelezara Smederevo» provides an excellent opportunity to expand the range and increase market power. Especially that the company is equipped with mills for the production of hot-rolled and cold-rolled sheet in the amount of more than 50 000 tonnes per month. These facilities can be converted freely for rental of special steels in the processing of workpieces from the «Red October». Already today, the power of the Russian enterprises are able to produce 60,000 tons per month, of which at least 20 000 tonnes the company plans to send to the «Zelezara Smederevo», while reducing costs in Russia.

During this period «Zelezara Smederevo» is a classic iron and steel, loss-making due to high raw material costs and lower cost of the final product. Head of «Red October» believes that the situation greatly improve the complete rejection of the blast furnace production of special steels in favor of release. However, the company management is not inclined to accept the idea enthusiastically.

Annual production capacity of the Serbian factory is more than 2 million. Tons of hot and cold rolled, but the last 4 years, the company is losing money and stays afloat only through government funding. In 2012, the plant was purchased for Serbia at the «US Steel», while in the previous year, the loss amounted to 100 million. USD. The upcoming tender for the bank is the third.

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