March 29 (Bloomberg) -- Danieli SpA, Italy’s biggest steel-mill engineering company, signed an accord with Serbia to set up a 500 million-euro ($664 million) steel plant that may produce some 750,000 tons a year by 2015.
The investment will probably begin soon and “it could take three years to reach the full output capacity,” said Bozidar Laganin, head of Serbia’s Investment and Export Promotion Agency, after Danieli’s Executive Director Franco Alzetta signed the agreement with Serbian officials in Belgrade today.
Clients of the future plant, near the western town of Sabac, will include Fiat SpA’s car factory in Serbia, said President Boris Tadic. The Danieli plant may become the steel-sheets supplier of Fiat’s Serbian unit in three years, Antonio Ferrara, the head of Fiat Serbia, which will start making the new 500L model next month, said in an interview yesterday.
Danieli signed the document with Serbia after more than nine months of talks, Alzetta said. The Italian company sought to ensure steady supplies of electricity and gas, Laganin said, without disclosing the agreed terms.
To contact the reporter on this story: Misha Savic in Belgrade at firstname.lastname@example.org
To contact the editor responsible for this story: James M. Gomez at email@example.com