Type LLC Area served Worldwide Founder Government of Serbia Revenue 240.8 million EUR (2014) Total assets 228.9 million EUR (2014) | Industry Steel Headquarters Belgrade, Serbia Founded 25 August 2003 Key person Ivan Milošević Parent organization Hesteel Group | |
Native name Хестил Србија
Hestil Srbija Predecessor SARTID a.d. (1913–2003)
U.S. Steel Serbia d.o.o. (USS Serbia d.o.o.) (2003–12)
Železara Smederevo (2012–16) Key people Ivan Milošević (Director) | ||
The Hesteel Serbia (Serbian: Хестил Србија / Hestil Srbija) is a Serbian steel manufacturing conglomerate with the headuarters in Belgrade. It operates with facilities in Radinac (steel plant, hot and cold rolling mill), Smederevo (harbor), Šabac (tinplate) and Kučevo (limestone mining).
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1913–2003: SARTID
On 20 February 1913, the company was founded under the name SARTID a.d. (Srpsko akcionarsko rudarsko topioničarsko industrijsko društvo a.d.). In the beginning, mainly foreign investors were shareholders of the company. During the period from 1945 to 1992, the Government of Socialist Federal Republic of Yugoslavia operated the steel plant. Many new factories were opened in that period, while Železara Smederevo was seen as a pillar of the Yugoslav metallurgy.
During 1990s, the company's value has declined significantly, mainly due to the sanctions which were put in effect due to people's suffering in Yugoslav War. The loss of market and suppliers caused the later bankruptcy of the company.
2003–12: U.S. Steel
In April 2003, two weeks after the assassination of the Serbian PM Zoran Đinđić, the bankrupted company was sold to American steel company U.S. Steel for $23 million. U.S. Steel also pledged to invest $150 million in plant modernization. Following the company's acquisition, the owners changed its name from SARTID a.d. to U.S. Steel Serbia d.o.o. (USS Serbia d.o.o.). Over the years, while being owned by U.S. Steel Corporation, the company formed an important part of the Serbian GDP, and also was the biggest Serbian exporter during the period from 2003 to 2012.
On January 31, 2012, U.S. Steel sold the company to the Government of Serbia for $1, leaving it with 5,400 employees and amounted liabilities due to dropped global steel prices.
2012–16: Privatization process
With the departure of U.S. Steel, the company plunged into even greater problems. By the end of June 2012, it shut down both of its two large furnaces, while the remaining 5,000 workers were sent on paid leave. Since April 22, 2013, it started operating again with reduced operation. Since then, the Government of Serbia was looking for the strategic partner. However, several public tenders were canceled due to lack of valid bids.
On December 5, 2014, a Serbian Privatization Agency issued a public tender for the purchase of 80.01 percent of the company. On January 12, 2015, an American company Esmark Steel Group was confirmed by the Government of Serbia as a sole valid bidder, and thus began negotiations on takeover of the company. On February 17, 2015, after month of negotiations, a Serbian PM Aleksandar Vučić announced that the Government of Serbia has decided to reject Esmark's offer for the purchase of the company. The decision was made mostly because the Government hasn't received assurances from Esmark that the factory won't be shut down after few years of service.
On March 21, 2015, a Management Service contract was signed between Železara Smederevo and the Dutch company HPK Engineering. Signing this contract, Government of Serbia elected HPK Engineering as a company to manage Smederevo steel plant for the next three years. It was stated that HPK Engineering will be responsible for creating the conditions for Železara Smederevo becoming profitable within the next 6 months while maintaining the current size of the labor force.
2016–present: Hesteel
In April 2016 Hesteel Group acquired the business, bidding €46 million. Initially stated plans were to invest $300million over 2 years into the plant including installation of galvanisation equipment, and raise production to 2.1 million tons from 0.875 million.