Hesteel makes first profit in Smederevo in December 2016 – Production of 2 million tons of steel and earnings of EUR 20 million planned in 2017

Smederevo’s steel mill Hesteel Serbia will make its first profit in December, said Prime Minister Aleksandar Vucic during his tour of the hot rolling plant at the steel mill.

– This is a huge thing, and I’ve just been told by the president of the Hesteel Group, Yu Yong, that they stopped losing money in November, and that they expect to make the first profit in December – Vucic said and pointed out that the steel mill was doing increasingly better.

Hesteel Smederevo plans to produce two million tons of steel next year and will influence the GDP of Serbia by 1%, probably more, the prime minister said.

The president of the Hesteel Group, Yu Yong, stated that Hesteel had invested USD 120 million in 2016, and that it would invest just as much in the renovation and procurement of equipment and technology in 2017.

He added that, thanks to the investment, the production would be modernized and that, based on that, a profit of EUR 20 million would be made in 2017. He specified that the total production of the steel mill in Smederevo in 2017 would amount to around USD 800 million.

He said that Hesteel would turn Smederevo’s steel mill into a profitable enterprise and that all the company’s resources and experts had been directed to Smederevo. He specified that more than 200 of their experts had visited the steel mill in the previous period to the end of improving the production.

Let us remind that the Government of Serbia and China’s Hesteel signed a sales and purchase agreement on Zelezara Smederevo in April 2016, by which the Chinese company took over 98 property units of Zelezara for EUR 46 million. It was announced at the time that the investment in Zelezara would amount to at least EUR 300 million and that all employees would be kept.

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

Železara Smederevo d.o.o.

Vlada Republike Srbije

Hesteel Serbia

steel mill in Smederevo

Zelezara Smederevo

Aleksandar Vucic

hot rolling plant

Yu Yong

Hesteel

Hesteel profit

steel manufacture

privatization of Zelezara

blast furnace