|
Sartid gets a strategic partner |
| |
 |
| |
Smederevo, metals producer Sartid |
Smederevo, March 8, 2002 - The Serbian government, Smederevo-based metals producer Sartid and US Steel Kosice (USSK) company will sign a letter of intent on strategic partnership in Smederevo today.
This partnership should lead to full use of Sartid capacities, significant improvement in management, better quality products, higher productivity and successful sales of Sartid products on the world market.
The letter of intent will enable the Smederevo metals producer to have the major central European steel producer, a subsidiary of US Steel, as its partner in the process of restructuring. US Steel is the world's leading steel producer, with headquarters in Pittsburgh. The US company took over the Slovak Kosice factory in 2000, and in a short time turned the poor performer into a leading central European and international company.
The letter will give USSK an opportunity to actively participate in the restructuring process and gain a much more
favorable position through investment and social programmes before it enters the
privatization process. By investing in the state owned Sartid company, USSK will become owner of a stake in the company, through a block of shares whose value will be determined on the basis of investment and social programmes.
Sartid is a joint-stock company which produces iron and steel. It is composed of 52.75 percent social capital, 41.25 percent state capital and 6 percent capital belonging to shareholders. Sartid has 9,200 employees.
A contract will also be signed today in Smederevo on cooperation between USSK and the Tin Plate Factory in Sabac, whose majority owner is Sartid. The contract envisages the processing of slabs into hot rolled sheets, as well as processing of rolled full hard into tin plate products. USSK will provide raw materials from its Kosice factory, and is committed to place these tin plate products on world markets. The contract envisages USSK supervision over the work of the Sabac factory.
By signing these documents, the Serbian government has again showed its firm resolution to attract major names in the world of business, following previous similar contracts with Microsoft and IBM, sending a signal to other investors that the country is safe for foreign capital investment.
|
|
Source:
|
|
|