M Aleksandar Vucic PM of Serbia has met in Belgrade with representatives of Russia’s steel producer Krasny Oktyabr to discuss possible privatization of Zelezara Smederevo. Both sides agreed to work together to find possible models of cooperation.
The Serbian government will launch a procedure to privatize Zelezara and expects Krasny Oktyabr to be one of the bidders in a transparent privatization process aimed at finding the best solution for Zelezara.
Vucicstressed the importance of preserving jobs and ensuring the continuity of operation of the sole producer of steel and steel alloys in Serbia.
Krasny Oktyabr is one of the biggest producers of high-quality special type rolled steel for automotive, aerospace, chemical, oil, energy and machine building industries. It is part of the Uralvagonzavod corporation, which has been one of the candidates to take over the Serbian steelworks in the past.
The Russian company’s director met with Serbian President Mr Tomislav Nikolic in April and on this occasion expressed interest in the Serbian steelworks.
The Volgogradskiy Metallurgicheskiy Zavod Krasny Oktyabr Closed Joint Stock Company is one of the biggest producers of steel for the automotive and aerospace industries and for chemical, energy and oil facilities in Russia.