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Serbia to Temporarily Close Former U.S. Steel Plant, Tanjug Says

Zelezara Smederevo, the Serbian steel plant the government bought back last week from U.S. Steel Corp., will suspend production for at least 10 days, the state Tanjug newswire reported, citing general manager.

The unprofitable steelworks, already working at less than half of its annual capacity of 2.2 million tons of steel, is not getting the coke and ore it needs because heavy snowfall and freezing temperatures are disrupting traffic along the Danube river, the report quoted Vukoica Scekic as saying.

U.S. Steel sold the plant for $1 and the government took it back saying it would have to subsidize production to prevent the loss of some 5,400 jobs there.

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