Železara Smederevo

Železara Smederevo
Native name
 Железара Смедерево
LLC
Industry Steel
Predecessor U.S. Steel Serbia (2003–12)
Founded Smederevo, Serbia (25 August 2003)
First founded on 20 February 1913
Founder Government of Serbia
Headquarters Smederevo, Serbia
Area served
 Worldwide
Key people
 Ivan Milošević (Director)
Products Flat-rolled steel
Production output
 2.000.000 t
(full annual capacity)
Revenue Decrease €186.45 million (2013)[1]
Profit Decrease -€130.55 million (2013)[1]
Total assets Increase €218.07 million (2013)[1]
Total equity Decrease €17.98 million (2013)[1]
Owner Government of Serbia (100%)
Number of employees
 5,036[1]
Divisions Šabac tin plate facility
Kučevo limestone quarry
Website www.zelsd.rs

The Železara Smederevo (full legal name: Privredno društvo za proizvodnju i preradu čelika "Železara Smederevo" d.o.o.), is a Serbian steel manufacturing conglomerate based in Smederevo, Serbia. It operates with facilities in Smederevo (steel plant, hot and cold mill), Šabac (tin mill) and Kučevo (limestone mining facility). From 2003 to 2012 it was part of the U.S. Steel corporation.

History

On February 20, 1913, the company was founded under the name SARTID. In the beginning, mainly foreign investors were shareholders of the company. During the period from 1945 to 1992, the Government of Socialist Federal Republic of Yugoslavia operated the steel plant. Many new factories were opened in that period, while Železara Smederevo was seen as a pillar of the Yugoslav metallurgy.[2]

During 1990s, the company's value has declined significantly, mainly due to the sanctions which were put in effect due to people's suffering in Yugoslav War. The loss of market and suppliers caused the later bankruptcy of the company.

In April 2003, two weeks after the assassination of the Serbian PM Zoran Đinđić, the bankrupted company was sold to American steel company U.S. Steel for $23 million.[3] U.S. Steel also pledged to invest $150 million in plant modernization. Following the company's acquisition, the owners changed its name from Sartid d.o.o. to U.S. Steel Serbia. Over the years, while being owned by U.S. Steel Corporation, the company formed an important part of the Serbian GDP, and also was the biggest Serbian exporter during the period from 2003 to 2012.[4][5][6][7]

On January 31, 2012, U.S. Steel sold the company to the Government of Serbia for $1, leaving it with 5,400 employees and amounted liabilities due to dropped global steel prices.[8] With the departure of U.S. Steel, the company plunged into even greater problems. By the end of June 2012, it shut down both of its two large furnaces, while the remaining 5,000 workers were sent on paid leave.[9] Since April 22, 2013, it started operating again with reduced operation.[10] Since then, the Government of Serbia was looking for the strategic partner. However, several public tenders were canceled due to lack of valid bids.[11]

On December 5, 2014, a Serbian Privatization Agency issued a public tender for the purchase of 80.01 percent of the company.[12] On January 12, 2015, an American company Esmark Steel Group was confirmed by the Government of Serbia as a sole valid bidder, and thus began negotiations on takeover of the company.[13] On February 17, 2015, after month of negotiations, a Serbian PM Aleksandar Vučić announced that the Government of Serbia has decided to reject Esmark's offer for the purchase of the company. The decision was made mostly because the Government hasn't received assurances from Esmark that the factory won't be shut down after few years of service.[14]

On March 21, 2015, a Management Service contract was signed between Železara Smederevo and the Dutch company HPK Engineering. Signing this contract, Government of Serbia elected HPK Engineering as a company to manage Smederevo steel plant for the next three years. HPK Engineering will be responsible for creating the conditions for Železara Smederevo becoming profitable within the next 6 months while maintaining the current size of the labor force.[15]

Market and financial data

Financial data in millions of euro [16][17][18][19]
2007 2008 2009 2010 2011 2012 2013
Revenue 907 970 488 765 697 187 186
Net income 28 5 -153 -142 -149 -28 -131
Total assets 403 474 419 638 697 205 218
Total equity 130 119 0 0 0 144 18
Staff 5 766 5 723 5 614 5 400 5 429 5 225 5 036
Sales[20] NA 44 36 38 41 33 28

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 Основни подаци из годишњег финансијског извештаја за обвезника ревизије за 2013. годину. Agencija za privredne registre Srbije (in Serbian). Retrieved 22 August 2013.
  2. ↑ "Istorija". zelsd.rs (in Serbian). Retrieved 15 January 2015.
  3. ↑ Tavernise, Sabina (2 April 2003). "COMPANY NEWS; U.S. STEEL TO BUY SERBIAN COMPANY FOR $23 MILLION". nytimes.com. Retrieved 15 January 2015.
  4. ↑ Šćepanović, Bojan (4 June 2013). "NAJVEĆI IZVOZNICI U SRBIJI ZA 2011 GODINU". mcb.rs (in Serbian). Retrieved 15 January 2015.
  5. ↑ "Pola izvoza u Srbiji prave stranci". b92.net (in Serbian). Retrieved 15 January 2015.
  6. ↑ "Srbija: Ju-Es stil najveći izvoznik". b92.net (in Serbian). Retrieved 15 January 2015.
  7. ↑ "Srbija, Najveći izvoznici po vrednosti robe od 01.01.2004. do 31.12.2004. godine". ekapija.com (in Serbian). Retrieved 15 January 2015.
  8. ↑ "Serbia buys U.S. Steel plant; Price: $1". cbsnews.com. AP. 31 January 2012. Retrieved 15 January 2015.
  9. ↑ "Železara će 1. jula ugasiti i drugu peć". novosti.rs (in Serbian). Retrieved 15 January 2015.
  10. ↑ "Ponovo radi "Železara"". rts.rs (in Serbian). 22 April 2013. Retrieved 15 January 2015.
  11. ↑ "Poništava se tender za Železaru". rts.rs (in Serbian). Retrieved 15 January 2015.
  12. ↑ "Objavljen tender za Železaru Smederevo". rts.rs (in Serbian). 5 December 2015. Retrieved 15 January 2015.
  13. ↑ Boselovic, Len (12 January 2015). "Esmark wins bid for Serbian mill once abandoned by U.S. Steel". post-gazette.com. Retrieved 15 January 2015.
  14. ↑ "Vučić: Nema dogovora s Esmarkom". b92.net (in Serbian). 17 February 2015. Retrieved 17 February 2015.
  15. ↑ "Contact with new Zelezara management signed". tanjug.rs. March 21, 2015. Retrieved 16 April 2015.
  16. ↑ Основни подаци из консолидованог финансијског извештаја за 2008. годину. apr.gov.rs (in Serbian). Agencija za privredne registre. Retrieved 15 January 2015.
  17. ↑ Основни подаци из консолидованог финансијског извештаја за 2010. годину. apr.gov.rs (in Serbian). Agencija za privredne registre. Retrieved 15 January 2015.
  18. ↑ Основни подаци из консолидованог финансијског извештаја за 2012. годину. apr.gov.rs (in Serbian). Agencija za privredne registre. Retrieved 15 January 2015.
  19. ↑ Основни подаци из консолидованог финансијског извештаја за 2013. годину. apr.gov.rs (in Serbian). Agencija za privredne registre. Retrieved 15 January 2015.
  20. ↑ Yearly liabilities for net salaries and fringe benefits

External links