Hesteel to start overhauling Zelezara in spring – Beginning of Chinese investments in Smederevo

Chinese Hesteel is planning to overhaul Zelezara Smederevo in spring, which will also mark the beginning of promised investments in the factory, Politika learns unofficially. The activities will last for about six weeks, following which the production is to increase.

Minor repair works have been in progress at the hot rolling mill since Monday and they should be completed by the beginning of the next week. This hasn't stopped the primary production or the preparation of rolls.

Hesteel is planning to first renew the used up equipment and to increase the production to as many as two million tons following the overhaul. The unofficial estimates so far are that the manufacture of 170,000 tons of finished products a month is planned. Let us remind that this was the maximum capacity of US Steel Serbia as well. However, as Politika learns, the Chinese owners won't stop there. Their plan is to reach the maximum production of 2.1 million tons.

The plans are accompanied by changes in the business policy. Hesteel plans to employ more than 200 production workers by the new year. As Politika reported earlier, the factory believes that the number of employees in the administration will be reduced in the foreseeable future, i.e. that a number of them will be offered jobs at the facilities.

Since Hesteel's arrival, the production has been gradually increasing. Plans for November and December amount to 120,000 tons each, Politika learns.

On the occasion of taking over Zelezara Smederevo, Hesteel announced investments worth EUR 300 million.

The Chinese owner is honoring its obligations towards the employees and the salaries are being paid regularly. In August, thanks to successful production, salaries were raised by 10% for production workers and by 5% for administrative workers. A new collective contract was recently signed with the unions, following which the Autonomous Trade Union of Metal Workers said that the employees had gained the most by it, as they were looking at serious jobs, announced investments guaranteeing the full employment of capacities, work safety and quality, sustainable earnings. There is no official information from Hesteel, as the Chinese management never addressed the media.

HBIS GROUP Iron & Steel d.o.o. Beograd

Železara Smederevo d.o.o.

Hesteel

Zelezara Smederevo

Zelezara overhaul

hot rolling mill

US Steel Serbia

Autonomous Trade Union of Metal Workers