Serbian steel industry revitalized after Chinese acquisition

The workshop of Smederevo Steel Mill, recently acquired by a Chinese firm. (Photo: Ren Yan from People’s Daily)

After the acquisition of the Smederevo Steel Mill by China’s steel giant HeSteel Group (HBIS) this April, the only steel factory in the Central and Eastern European country now is back in the full swing.

“The mill had been in bad shape for a long time. Workers were concerned about its future,” said DaliborIgnoatovi, an engineer that has been with the factory for 33 years.

Founded in 1913, Smederevo Steel Mill was on the edge of bankrupcy due to fierce competition in global steel market and poor management. In this April, the Chinese firm acquired the mill for 46 million euros.

“If the company was bought by a Western company, they would simply just downsize the factory during hard time, but Chinese companies won’t do that. They truly care about the rights of us employees,” he told People’s Daily.

“As we promised in the acquisition agreement, after the buyout, we will not lay off a single employee and carry out localized management,” Song Sihai, the HBIS representative in Serbia, reiterated.

According to Song, HBIS will invest $300 million in the next five years for technological upgrade to improve production efficiency while meeting local environment standard.

“The continued production of Smederevo Steel Mill is crucial to the economic development of Serbia,” said Slobodanka Susa, head of the Serbia Steel Association.

Peter Kamaras, CEO of Smederevo Steel Mill, is very confident of the factory’s prospects. Speaking highly of the rapid development of HBIS and the Chinese economy, Kamaras believed the factory will become the most competitive steel enterprise in Europe.

“Under the ‘16+1’ cooperation mechanism and the ‘Belt and Road’ initiative, Chinese enterprises will bring more capital and opportunities to the economic development of Serbia and even the whole of Europe,” said JasminkaSimeunović, senior journalist of Radio Television of Serbia.