Three companies left in race for Zelezara

(Photo: zelsd.rs)

Five companies which are potential candidates for managing Zelezara Smederevo , delivered good offers, it was confirmed for RTS RTS, in Nemanjina 11. However, negotiations will continue with three bidders which have the best program in line with the requirements the Government set.

All five companies, Slovakian Pikaro, Austrian-Swedish consortium INTEKO-EMLOG, "Monaco Resources Group" from Monaco, American Esmark, HPK Engineering from the Netherlands and one German company which are potential candidates for management in Zelezara Smederevo, delivered good offers, it was confirmed for RTS in the Government.

The Government will, however, continue negotiations with three bidders, it was confirmed for RTS and these would be American Esmark, then Dutch HPK Engineering with Slovakian-American capital, John Goodish and Petar Kamaras and Austrian-Swedish consortium, INTEKO-EMLOG.

Negotiations will continue in the next week, RTS found out at the Government of Serbia.

The Government will not discuss with the remaining two candidates. Although Monaco-based Monaco Resources Group provided excellent business plan the problem is that they need different furnaces than the ones Zelezara has and layoffs for 2.500 people. German company also does not fit into all requirements the Government set.

Professional management is expected to increase sale and production at the level of no less than 1,5 million tons of steel annually, to implement new technologies and conquer new markets.

Management will be obliged to deliver initial and indicative plan which, among other things, should contain strategy of sale of Zelezara, forecast of prices for key final products, forecast of production plan, procurement strategy, funding plan and new hires forecast.

Zelezara employs 5.000 people, it currently produces 340.000 and 350.000 tons of steel and its production capacities are approximately 2,2 million tons..