Serbia sells steel plant to Chinese company for EUR 46M

After several failed attempts, Serbia has managed to sell its loss-making steel plant in Smederevo to Chinese company Hebei Iron & Steel Group .

The contract worth 46 million-euro was signed Monday by Serbian Economy Minister Zeljko Sertic on behalf of the Serbian government and the Chinese company  president Ju Jong.

"Today is a great day for all of all and for the workers of the Smederevo steel plant," Serbian Prime Minister Aleksandar Vucic said. The Serbian government had struggled for years to find a buyer.

The ceremony was broadcast live on Serbian state television, days ahead of an early general vote. 

The Serbian government on April 5 accepted the Chinese offer for the purchase of the steel plant.

The new owner is expected to fully take over the Smederevo steelworks "Zelezara" after a two-month transitional period.

Zelezara is the main employer in the area of the town of Smederevo, some 50km north of Belgrade on the Danube River.

Last update: Mon, 18/04/2016 - 18:59

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