Agreement by February 13 - Negotiations on Zelezara with Esmark will continue in USA

(Photo: zelsd.rs)

President of the Government of Serbia, Aleksandar Vucic, has said today that by Friday, February 13, final agreement is expected with the American company Esmark with respect to majority stake takeover at Zelezara Smederevo.

Vucic said to journalists on a break of the "Belgrade dialogues" meeting that the minister of finance of Serbia, Dusan Vujovic, should tomorrow travel to USA for final negotiations with Esmark representatives.

- Vujovic will go tomorrow for final talks, either we will reach agreement or no – Vucic said.

Negotiations with the management of American Esmark started January 27. "Esmark" was the only one which delivered the offer for the acquisition of 80, 01% capital at Zelezara, at the tender released January 9.

There have been discussions with Esmark about 30 elements important for the contract and they refer to both parties and guarantees to continue production and employability at Zelezara.

In case they agree with Esmark, the Government of Serbia will be the owner of the remaining capital portion which it bought in February 2012 for one dollar from American U.S. Steel which withdrew due to losses. In line with tender terms, state trustees will write off the debt to Zelezara with the situation on December 31, 2013. Zelezara hires 5.000 people, it currently produces 340.000 and 350.000 tons of steel, and its production capacities are 2,2 million tons.