The Serbian government has found a potential strategic investor in Russia for flat-rolled steel producer Zelezara Smederevo (ZS), according to the Balkan states ministry for economy and finance, American Metal Market reported.

Final talks between the Russian company and Serbian authorities will take place over the next several weeks, and the mill is likely to start operating again before year-end, the ministry reported in a statement sent to AMM sister publication Steel First.

The Russian company has annual revenues of $6 billion and employs 70,000, the company added, declining to specify further.It was not clear whether ZS is already operating, either for steelmaking or rolling. The plant was due to restart operating in early September after a decision was made to idle it in July due to poor market conditions (amm.com, July 3).

ZS can produce as much as 2.2 million tonnes per year of crude steel for casting into slabs, from which it can produce hot- and cold-rolled coil. The plant also has a tinplating line at Sabac.

The Serbian government purchased the mill from former owner U.S. Steel Corp. at the start of the year, citing at the time plans to locate a strategic partner.

Source: bne