Public call for participation in privatization of Zelezara released

(Photo: zelsd.rs)

The Agency for privatization has announced today public call for investors to deliver their letters of interest to participate in privatization of Zelezara Smederevo until December 1.

The Agency invited all the interested investors to deliver a letter which should contain indicative price proposal, investment program, business plan framework and headcount apart from basic company information, it was stated in the advertisement published in Politika.

A few companies is interested in participation in privatization Zelezara. Three days ago, in London, the Prime Minister of Serbia talked about the privatization of Zelezara with the president of the American Esmark, Jim Bouchard whose company confirmed it is interested in takeover of Serbian steel plant and that it will participate in the tender.

According to media, the state should remain an owner with 20% stake in Zelezara and th Americans are planning to start both high furnaces and increase current production from 400.000 tons to 2,2 million tons. During takeover of Zelezara, none out of 5000 people should be fired.

Since February 2012, the Government of Serbia has been an owner of Zelezara for one dollar when it bought it from American US Steel which withdrew due to losses. The first tender for its sale was released in April 2012 and Russian Uralvagonzavod was the only one expressing interest but did not deliver the committing offer.

The production value of Zelezara Smederevo is some EUR 340 m and the full capacity would reach EUR 1,5 billion.

The state provides 8,5-10 m to Zelezara per month and the company owns EUR 260 m to banks, EUR 120 m o suppliers and EUR 145 m more for raw materials. The state will most likely take over debts.