Hesteel to buy Kosice steel mill – Slovakia wants part of shares to belong to the state

The Chinese company Hesteel is beginning due diligence of the Slovakian Kosice-based steel mill US Steel in February, as the American owner had rejected all offers for sale except for that of the Chinese company and signed a memorandum last week.

– The government was notified by the American owner directly. They were quite fair. It's very important to us for the production to remain in Kosice, as this is an important strategic company on which thousands depend, and not just directly. This is a company which impacts numerous other companies and the totality of the cultural, sports and social life in Kosice – Prime Minister Robert Fico commented on the American strategic partner's leaving the Slovakian steel mill.

Fico announced that, when concrete sale negotiations start, he will try to work it out so that the state of Slovakia gets a share package.

– No one will give us a majority package, but we will at least try to put our foot in the door – Fico said and added that such a large company couldn't operate without the state.

US Steel Kosice is a subsidiary of the American metalworking giant from Pittsburgh, which is operating with losses, but the Slovakian steel mill, which generates 20% of the corporation's total revenues, has been profitable for the past few years.

Last year, Hesteel (Hebei Iron and Steel Group Co), a Chinese company with 130,000 employees, took over Zelezara Smederevo, which has been owned by US steel until 2012.

The Slovakian government hopes that the potential new owner will put a stop to past years' layoffs and keep the number of employees at the current 10,000.

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

U. S. Steel Košice, s.r.o.

U. S. Steel Corporation Pittsburgh

Urad vlady Slovenskej republiky Bratislava

Hesteel

US Steel

US Steel Kosice

Government of Slovakia

Robert Fico

Hebei Iron and Steel Group Co

Zelezara Smederevo