Volgograd company Krasny Oktyabr wants to buy Zelezara Smederevo

Loss-making steel plant Zelezara Smederevo, which belongs to the Government of Serbia, continues to attract Russian investors. Following Uralvagonzavod, Krasny Oktyabr has been interested in the asset. But it offers to radically reduce production, keeping only capacities for special steels rolling. Analysts doubt that Belgrade will agree, as it will lead to layoffs.

The Volgograd metallurgical plant Krasny Oktyabr, which produces special steel, has applied for a tender for the sale of the Serbian steel plant Zelezara Smederevo (should be held in September), the company’s general director Dmitry Gerasimenko told the Kommersant. According to him, the plant exports about 30% of the 400 thousand tons per year to Europe, and the purchase of Zelezara will expand the range and increase its presence on the market. The plant has rolling mills for the production of flat cold-rolled and hot-rolled steel (over 50 thousand tons per month), they can be adapted for special steels rolling from Krasny Oktyabr’s billets. The Volgograd plant’s steel capacities can produce 60 thousand tons per month, not less than 20 thousand tons will be supplied to Zelezara. According to the top manager, this will reduce the costs in Russia.