Italy’s Danieli Plans 500 Million Euro Steelworks in Serbia
Stock Chart for Danieli & C Officine Meccaniche SpA (DAN)
Danieli SpA (DAN), Italy’s biggest steel- mill engineering company, plans to open a 500 million-euro ($667 million) plant in the western Serbian town of Sabac.
Danieli representatives and Serbian officials will sign a memorandum of understanding in Belgrade tomorrow on developing the steelworks, the office of Serbia’s President Boris Tadic said in an e-mailed statement today.
Danieli’s Serbian unit plans to produce at least 750,000 tons of steel a year, aiming for annual turnover of 1 billion euros, according to the statement. The factory, which is expected to employ 1,000 people, will be exporting four-fifths of the output. Buyers will include Fiat SpA (F), which will start making its new 500L model in Serbia, and its local suppliers.
The company will invest in speciality steel production and plans to expand its initial 110,000 square-meter unit by additional 80,000 square meters at a later stage, according to the statement.
The Italian company arrives in Serbia two months after U.S. Steel Corp. sold back to the government its unprofitable steel plant in the eastern city of Smederevo for a token $1 in January. Its plant was producing one million metric tons of steel compared with annual capacity of 2.2 million tons.
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