Serbia to Keep Zelezara Open to Save Jobs as Esmark Talks Fail

Serbia’s government wants to turn around the country’s sole steelmaker Zelezara Smederevo DOO after failing to sell it to Esmark Inc., putting at risk a loan agreement with the International Monetary Fund.

Serbia will look for another partner for the state-owned steel plant, Prime Minister Aleksandar Vucic said. The state will now change managers, cut costs and boost sales to end Zelezara’s more-than $100 million annual drain on the public finances. The steelmaker is one of the biggest of 500 companies the state needs to sell or close to narrow the budget gap and rein in public debt.