Hesteel Group €46 million acquisition of Zelezara Smederevo steel mill

Overview:

• Hesteel Group has acquired the Zelezara Smederevo steel mill for €46 million from the Government of Serbia.
• The mill has two blast furnaces and produces 2.2 million tonnes a year. It employs over 5000 people. Hesteel has agreed to invest $300 million in the plant following the deal.
• The Serbian Government bought the mill from US Steel in 2012 when it was threatened with closure.
• The deal is part of the Serbian government's wider strategy of privatisations.
• HeSteel Group (Hebei Iron & Steel Group) is a Chinese steel producer and the second largest producer of crude steel in the world.

Sam Duke - Editor