Bloomberg, April 20, 2012
Donetskstal Says Takes Part in Tender for Serbian Steel-Mill
“Donetskstal is participating in the tender,” Olga Medvedovskaya, a Donetskstal spokeswoman said in an e-mail today.
Serbia announced last week it is seeking offers for the plant and set May 4 as the deadline for binding bids. The government is looking for a “strategic partner” for the mill, southeast of Belgrade, after buying it back from the U.S. steelmaker for a token amount of $1 in January. The plant works at half capacity of 2.2 million tons of crude steel a year.
“Donetskstal is a serious candidate, considering their size, the large resource base and the huge quantities of coke they have,” Serbia’s Deputy Premier Jovan Krkobabic said in a phone interview in Belgrade, adding that the Ukrainian steelmaker will also have good access to Smederevo by the Danube river from the Black Sea.
Other contenders for Zelezara Smederevo may include United Group SA, a Luxembourg-based holding company comprising Pilsen Steel Sro and Baummash OJSC, said the Serbian government which held talks with United Group last month.