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Serbia Resumes Sale of Sole Steel Producer Zelezara Smederevo

Serbia invited bids for Zelezara Smederevo d.o.o., its only steel plant, renewing its attempts to sell the unprofitable mill nine months after the U.S. Steel Corp. sold it back to the state for $1.

Bidders from mining, iron and steel industries have until Oct. 26 to submit offers, including a business plan to restart Zelezara’s two idled furnaces and a four-year investment plan of at least $50 million, according to the details of the sale published in Belgrade newspaper Politika today.

Investors seeking to buy the plant need to have assets of at least $2.5 billion and annual revenue of $2 billion in 2011, the Finance Ministry said.

The government is close to agreeing the sale to a Russian investor, Prime Minister Ivica Dacic said on Sept. 26, without naming the company.

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