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Serbian President Aleksandar Vučić praised the success and progress of the Serbian Smederevo Steel Plant

2018-07-11 | 0 Comments

On July 5, Serbian President Vučić made the remarks during a ceremony to celebrate the Second anniversary of the official takeover of the Smederevo Steel Plant by the Chinese “Hegang Serbia” company.


“Thank you for your contribution to this steel mill, thank you for your contribution to Serbia, and thank you for your contribution to the friendship between our two countries”, president Vučić said to local workers during the ceremony.


Founded in 1913, Smederevo Steel Plant is a well-known 100-year-old Serbian factory. Due to fierce competition in the international market and poor management, previously  factory was in trouble and faced bankruptcy.


In April 2016, China’s “Hegang Group” signed a contract with the Serbian government to acquire the “Smederevo Steel Plant” for 46 million Euros, retaining 5,000 employees and establishing “Hegang Serbia Co., Ltd.,”.


At the end of the same year, the Smederevo Steel Plant was back to profitability and reversed the loss for the last seven consecutive years.


Mr. Song Weihai, Executive Director of “Hegang Serbia Co., Ltd.,” said that company “after its establishment, did not only ensured that the original employees of the factory had stable jobs, but also provided 200 new jobs each year and invested a large amount of funds for technical upgrading and equipment renovation.


“Last year, the Smederevo Steel Plant completed 1.46 million tons of steel output, with an value of 750 million and paid taxes to the government in amount of 39 million US dollars, he added.


“In 2018, the Steel Plant plans to produce 1.8 million tons of steel, which will set a new historical record since the steel mill was built, and achieve operating income of more than 1 billion US dollars. Looking on the first half of the year, we can achieve this goal”, emphasized Mr. Song.

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