Esmark reaffirms interest in Železara Smederevo

Esmark Chairman and CEO James P. Bouchard announced that despite the recent efforts to reach a definitive agreement with the Republic of Serbia for the restructuring and revitalisation of the Železara Smederevo Steel Works, Esmark continues to believe its comprehensive business plan and management team provide the best possible future for the mill.

Bouchard said, “As we stated at the conclusion of the negotiations in Pittsburgh last month, we remain committed to moving forward with the Republic of Serbia, and Esmark is fully prepared to enter into a management services agreement to revitalise Železara Smederevo, with the ultimate goal to acquire the facilities on or before 1 January 2016.”

Photo courtesy of Esmark, Inc.

“Esmark incurred more than USD 3M in due diligence and business planning expenses at no cost to the Serbian government during this process, as well as placing our expert management team on the ground in Zelezara and activating our global raw materials procurement and commercial sales operations. Together with our global network of European, Asian and North American steel partners, we’re confident that no other potential third-party partner or company understands these steel-making assets or how to manage them better than we do.”

Bouchard said his management team would commit to remaining at the plant for at least eight more months under Serbian ownership while working on a definitive agreement to assume operating and ownership control of the facility on or before January 2016.

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