ZeleZara Smederevo llC Smederevo · Capital structure (in%) Republic of Serbia 100 General...

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ZELEZARA SMEDEREVO LLC Smederevo

Transcript of ZeleZara Smederevo llC Smederevo · Capital structure (in%) Republic of Serbia 100 General...

  • ZeleZara SmederevollC Smederevo

  • Capital structure (in%)

    Republic of Serbia 100

    General Information

    Full legal name Company for steel production and processing Zelezara Smederevo LLC SmederevoAddress Radinac, 11300 Smederevo

    Identification Number 07342691

    Core activity Manufacture of basic iron and and steel and of ferro-alloys

    Foundation Year 1913, founded as Serbian Joint Stock Mining and Smelt-ing Company “SARTID”

    Number of Employees4996 (total number of employees with Company for processing and coating of metals “SERBIAN ROLL SERVICE COMPANY” LLC RADINAC – 50% owned by Zelezara: 5007)

  • Pan-European Transport Corridors

    SMEDEREVO

    Smederevo is positioned at 40.39° northern latitude and 20.57° eastern longitude. It is located in the northeast part of the Republic of Serbia, on the second largest European river Danube. It is only 45 kilometers far from the capital, Belgrade. Main potential of the City of Smederevo is its very characteristic micro position, that is, exceptionally favorable geographic location between two European corridors – the land one X – the highway, and the water one – VII – the Danube. This advantage should be exploited to the maximum from the local viewpoint.

    General Information

  • distance form the Company to:

    General Information

    Belgrade 45 km

    Regional Center 7 km

    Main road 0.1 km

    Port 10 km

    Railway 0.1 km

    Smederevo /Tin Mill Plant – Head Office Building

  • Short History

    The Company was founded in 1913, and this Plant

    at the current location was built from year 1971

    thru 1979. In March 2002, at the Plant’s premises,

    Government of the Republic of Serbia, US Steel

    and SARTID a.d. had signed the Letter of Intention

    and Strategic Partnership.

    On September 12th, 2003, US Steel acquired

    SARTID a.d. in bankruptcy and its four affiliated

    companies.

    U. S. Steel Serbia, d.o.o. was registered. Having

    bought 100% of U. S. Steel Serbia, d.o.o. shares,

    as of January 31st, 2012 Republic of Serbia

    become the owner of the company which currently

    operates as “Železara Smederevo” d.o.o.

  • Company locations & productions

  • Smederevo (radinac) - Plant• Surface - 293.5ha

    • Within the fence - 283ha (under facilities 726.340m2)

    • Outside the fence - 10.5ha (under facilities 18.767m2)

    Šabac - Tin mill• Surface - 6.9ha

    • under facilities 39.255m2

    Kučevo - Limestone production• Surface - 71ha

    • under facilities 10.365m2

    oLd PorT Smederevo• Surface - 4.4ha

    • under facilities 1.049m2

    new PorT Smederevo• Surface - 15ha

    • under facilities 213m2

    Land and Buildings

    Facilities are in working order, owned by the company.ZELEZARA SMEDEREVO LLC is spread across vast area of land. Some of the most important facilities include Agglomeration plant and machinery, Industrial Steel Plant building, Exhaustor hall etc.

  • Capital investments 2004 - 2011

    Total investments2004 – 2011313,8 milion USd

    Year milion USd

    2004 36,0

    2005 43,2

    2006 16,7

    2007 65,4

    2008 58,1

    2009 15,6

    2010 22,8

    2011 56,0

    inveSTmenT STrucTure

    i infrastructure ..........................…… 37,3 million uSd

    • Information Technology 17,4

    • Security and Fire protection 10,4

    • Energetics infrastructure 4,4

    • Transportation 5,1

    ii Productivity and Savings ............ 167,6 million uSd

    • BF1 34,0

    • BF2 43,2

    • PCI 46,0

    • Steel making 26,8

    • Cold Rolling Mill - Tandem DCR 10,2

    • Sabac 3,9

    • New Port 3,5

    iii improving Quality ....................... 28,4 million uSd

    iv environmental ............................ 80,5 million uSd

  • Quality Assurance

    Quality assurance certificate iSo 9001Company owns quality assurance certificate ISO 9001.

    ISo 9001:2008Valid from June 6, 2013 to April 1, 2016

    2016 HaCCP Codex alimentariusValid from April 18, 2014 to April 17, 2017

    For ProducTS:

    TUv Nord Qa System acc to Pressure equipment directive 97/23/eC and ad 2000- merklblatt WoValid from April 2012, to April 2015

    TUv Nord of factory production control acc todIN eN 10025 -1:2005 and dIN eN 10025 - 2:2005 (for Ce)Valid from July 1, 2012 to June 30, 2017

  • Environmental

    ecologyAccording to applicable regulations, the requirements for environment protection are fulfilled.

  • Environmental

    air Quality water quality

    There are 48 stacks at the location, controlled on regularly basis in accordance with valid decree• Five air cleaning

    systems are build or totally reconstructed

    • Four stacks are equipped with continuous device for emission measuring

    • Reporting to State officials in accordance with actual law regulative

    • Process, storm and sanitary waters are discharged through collectors #1 and #2

    • Five facilities for waste water treatment, per one after each production unit including sanitary waste water

    • Internal control of discharged water quality is made by sampling at the key locations every working day

    • External controlling of discharged water quality is made by licensed company in accordance to the law regulative.

    • Every discharging location is equipped with flow meter

    • Reporting to officials is based on actual low regulative

  • Environmental

    waste management

    The amount of generated waste• Non hazardous waste – 650 000 t/year• Hazardous waste – 30 000 t/year

    1. Facility for waste management- Disposal of non hazardous waste- Disposal of solid hazardous waste

    2. disposal of liquid hazardous waste- Abroad; Zelezara pays the service- Total cost: 143. 500 EUR in 2011- Data for years 2012 and 2013 YTD are not relevant due to a

    lack of production

    3. recycling inside the plant

    4. Selling to the third party

  • 1. leGalISaTIoN(Legal requirement, Construction and Planning Law and IPPC Law)Deadline: before issuing IPPC permit, what is, according to the Law 2015Total estimated cost for projects for location Smederevo: 13.050.000 $(location Sabac obtained IPPC permit in March 2014)

    2. SYSTemS For CoNTINUoUS STaCK aIr moNITorING(Legal requirement, Official Gazette 71/2010)Dead line: end of 2015Total estimated cost: 1.100.000 $

    3. rePlaCING aNd dISPoSal oF eQUIPmeNT WITH PCB(Legal requirement, Official Gazette 37/2011)Dead line: end of 2015Total estimated cost for replacement (buying new equipment: 2.852.000 $Estimated cost for PCB disposal: 915.000 $

    4. laCK oF INdUSTrIal WaSTe WaTer dISCHarGe PermIT For Smederevo loCaTIoNEstimated investments for Water Treatment Projects: 26.100.000 $.IPPC permit for location Smederevo can not be issued without this permit previously.In contact with the Ministry investigating possibility to obtain waste water discharge permit without capital investments.

    environmental protection according to the Law obligations

    Environmental

  • Summary from iPPc permit request for location Smederevo which talks about harmonization between existing equipment and best available techniques. Achieving best available techniques must be economically feasible and that is something that has to be negotiated with the competent Ministry.

    1. Recirculation of waste gases in sinter plant

    2. “Catching” and using of the heat from sinter cooling and sinter screening

    3. Collecting energy from gas pressure from the top of the blast furnace when there is possibilities for that

    4. Recycling or burning of cleaned gasses from steel shop

    5. Minimization of NOx in sinter plant

    6. Minimization of emission from blast furnace cast floors and gas evacuation from emission sources, and it is necessary to clean the gasses by filtration

    *there is suggestion for Law change, and suggestion is in the procedure for discussion in the Government to extend the dead line for IPPC until 2020. It that case all dead line mentioned above will be moved from 2015 to 2020.

    Environmental

  • Safety and Industrial Hygine

    SigniFicanT SucceSSeS

    • 228 consecutive days without OSHA recordable injury

    • 630 consecutive days without DAFW injury

    Programs, instructions, procedures

    • Energy control

    • Confined space

    • Fall protection

    • Handling with hazardous gases

    • Hot metal

    • Mobile equipment

    • Internal rail - way

    • Safe activity at the cranes

    • 2 min. huddle

    • PPE

    • Hot works

    • Purging and blanking of hazardous fluids gas-lines

    • Laceration prevention

    • No hands on the lift

    • Arc flash protection

    • Excavation program

    • Safety of the Contractors

    • Traffic rules

    • Investigation of the incidents

  • Production facilities

    Smederevo PLanT

    • Sinter plant, two Blast furnaces and PCI facility

    • Steel shop

    • Hot srip mill

    • Cold rolling mill

    • Two industrial river ports at the Danube river, Industrial

    water supplying channel and industrial land – 165,9 ha

    Šabac• Tin mill facility

    Kučevo• Lime stone quarry and lime production facility

    ProdUCTIoN

    CaPaCITY IS

    2 mIllIoNS oF ToNS

    oF FINal

    ProdUCTS

  • Sinter lines no. 1 i 2 – working capacity 75m2

    Sinter lines no. 3 i 4 – working capacity 90m2

    Sinter line no. 1 is out of work since 2010 / Reason - unadjusted with the Law on Environmental Protection of the Republic of Serbia /

    Smederevo Plant

    iron ProducTion

  • blast furnace no. 1

    Started with work in 1971

    /Idled in 1987/

    Modernized in 2005

    Total volume: 1146m3

    Working volume: 948m3

    Capacity: 2500t /day

    blast furnace no. 2

    Started with work in 1987

    Modernized in 2007

    Total volume: 1735m3

    Working volume: 1455m3

    Capacity: 3300t/day

    Pci - Pulverized coal injection

    Started with work in 2011

    Smederevo Plant

    iron ProducTion

  • Three converters / vessels

    Projected heat weight: 100t

    Total volume: 73.5m3

    Biggest heat weight: 106t

    Two continuous casting machines

    Slab width: 1050 – 2080mm

    Slab length: 6 – 12m

    Max speed: 1,30m/min

    Capacity: 6200t/day

    / 2,2 million tones annual capacity /

    STeeL ShoP

    Smederevo Plant

  • Pushing furnaces 1 and 2

    Capacity: 250t/hour, each

    Slab dimensions:

    lenght 4800 – 12000mm

    width 720 – 2080mm

    reversible rougher mill

    5 -9 pass

    Slab tickness180 - 250mm

    6-stand finishing mill

    Strip thickness: 1,5 – 15mm

    Coilers 1 and 2up to 2200mm / weight: to 35t

    Hot shears and slitting lineup to 2200mm / weight: to 35tThickness: 3 – 20mm

    hoT STriP miLL

    Smederevo Plant

  • PICKle lINe 1Width: 700-1550mm, thickness: 1.5-6mm Coil weight: 15t, OD of coil: do 1800mm Capacity 300.000t/annual

    PICKle lINe 2Width: 675-1600mm, thickness 1,2-6,0mm Coil weight: 35t, OD of coil: do 2500mm Capacity: 750.000t/annual

    5-STaNd TaNdem mIllEntry thickness: 1,8-5.7mmExit thickness: 0.17-3.0mmWidth: 660-1515mmSpeed: 2000m/min / Coil weight: 35t maxCapacity: 750.000t/annual

    CoNTINUoUS CleaNINGWidth: 600-1270mmThickness: 0.15-1.20mmSpeed: 610m/minCoil weight: 18tOD of coil: to 1800mm

    CoNTINUoUS aNNealINGWidth: 600-1050mmThickness: 0,15-0.50mmSpeed: 366m/minCoil weight: 18tOD of coil: to1800mm BaTCH aNNealING

    BA 1 14 furnaces 40 bases

    BA 2 20 furnaces 40 bases

    Total capacity: 600.000t/annual

    coLd STriP miLL

    Smederevo Plant

  • SHear lINe 1Capacity: 600t/dailyStrip thickness: 0,5-1,0mmCoil weight: 15t max

    SHear lINe 2Capacity: 600t/dailyStrip thickness: 1,0-4,0mmCoil weight: 35t max

    TemPer mIllCapacity: 200.000 t/annualMax speed: 500m/min Strip width: 680-1550mm Coil weight: 20t max

    SlITTING lINeCapacity: 200.000 t /annualDimensions 0,4 – 4,0mm

    dCrCapacity: 400.000 t /annual Max speed: 2000 m/min Strip width: 600 -1350 mm Coil weight: 35t max

    coLd roLLing miLL

    Smederevo Plant

  • Šabac

    eleCTrolYTIC TIN CoaTING lINe

    Strip thickness: 0,14-0,50 mmStrip width: 680-1025 mm Speed: max. 400 m/min Coil weight: 17t max Capacity: 200.000 t. /annual

    lINeS For CUTTING aNd PaCKaGING oF TIN PlaTe

    Plate length: 500-1150 mm Coil weight: 17t max Capacity: 120.000t annual at both lines

    Tin miLL FaciLiTy

  • Energetics

    • Four boilers disigned capacity: 75t/h of steam

    • Three turbo blowers /Support work of both Blast

    furnaces /

    • Two turbo-generators – 12MW

    • Three compressors – 45000m3/h

    • Four main power stations (GTS) - 444MVA

    • Twelve pump stations

  • Kučevo

    lUmP ProdUCTIoN

    lIme SToNe ProdUCTIoN 0-4mm For SINTer PlaNT Capacity: 12500 t /monthly

    lIme SToNe ProdUCTIoN 30-60mm For BlaST FUrNaCeSCapacity: 1500 t /monthly

    TWo KIlNS For PoWder aNd CalCITe lIme Capacity: 150 t /daily (out of work)

    LimeSTone ProducTion

  • Port Smederevo

    new port - Smederevo

    Two Ganz cranesCapacity: 260.000t/monthly of bulk material, annual

    old port - Smederevo

    One crane capacity 2000t of coke/dailyOne crane 40t – for shipment

  • assortment of products per finishing facilities

    Product thickness (mm) width (mm) length (mm)

    Hot rolled material 1.5 - 15.0 720 - 2050 2000 - 12000

    Cold rolled material 0.35 - 3.0 700 - 1500 1000 - 4000

    Tin material 0.14 - 0.50 685 - 990 500 - 1150

    Products

  • Plant retreatment rate

    Plant diversion rate Percent of acecepted claims %

    2012 goal 0,50% • 2013 goal 0,50%

    2012 goal 1,42 Euro/mt • 2013 goal 1,42 euro/mt

    2003 - 2013

    2013 Plan 0,77%

    2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

    39.6

    97t

    22.7

    37t

    12.5

    54t

    12.6

    52t

    12.2

    56t

    12.1

    46t

    12.4

    33t

    13.3

    23t

    12.6

    07t

    2.27

    9t

    1.89

    6t

    6.03%

    2.07%

    0.97% 0.74% 0.73% 0.74%1.10% 0.91% 1.02% 0.69% 0.51%

    2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

    2005 2006 2007 2008 2009 2010 2011 2012 201352.7

    61t

    75.8

    54t

    48.2

    54t

    52.7

    61t

    50.5

    82t

    47.7

    80t

    40.6

    66t

    25.0

    64t

    37.8

    27t

    47.0

    20t

    5.03

    2t

    8.02%6.91%

    3.47%2.96% 2.84% 2.48% 2.22%

    2.59%

    3.80%

    1.51% 1.37%

    1.281.02 0.97

    0.59 0.59 0.53 0.53 0.450.27

    2013 Plan 2,11%

    Coeficient accepted claimes

    2005 2006 2007 2008 2009 2010 2011 2012 2013

    claim cost €/mt

    1.74 1.59 1.51 1.50 1.47

    2.41 2.40

    0.810.35

  • Logistics

    by rail 790.857mt

    by danube2.656.972 mt

    77%

    23%

    deLivery oF STraTegic raw maTeriaLS 2011-2013

    row material type Type of delivery

    29%

    33%

    38%

    cokeand coal

    oreas

    Pellets1.003.648 mt

    1.142.410 mt

    1.302.154 mt

  • Izmail

    Constanza

    Cop

    dabowa Garnicza

    Budapest

    lukavac

    BarBurgas

    Logistics

    SuPPLy channeLS 2011-2013

    danube upstream 166.286 mtrail, North 213.460 mtrail North Corp 123.076 mtrail Bosnia 435.715 mtrail Bulgaria 18.606 mtdanube downstream 2.490.698 mt

    5%6%

    4%

    13%

    0%72%

  • Izmail

    Constanza

    Cop

    dabowa Garnicza

    Budapest

    lukavac

    BarBurgas

    Logistics

    TranSPorT coST 2011-2013

    danube downstreamIzmail, Constanza 18 - 21 $/mt

    rail Bosnia 21.45 $/mt

    rail Nort 14 $/mt

    rail Crop 36.4 $/mt

    29%12%

    2%

    57%

    Port Plant$ 2.47

    rail $ 11.41

    danube $ 11.41

    average cost 19.98 $/mt

    other$ 0.41

  • Logistics

    ShiPmenT oF FinaL ProducTS 2011-2013

    13% 8%

    27%

    32%21%

    distributive centres

    eXw

    directly to a customer

    Sea Ports

    danube

    by rail606.000mt

    by trucks562.932 mt

    waterways458.501 mt

    126.133

    513.624

    430.724

    342.774

    203.698

    Shipmentfrom the plantper type ofdevlivery

    Shipment from the plantper type of transportation

    Total: 1.616.953 mt

    28%

    35%

    37%

  • Logistics

    diSTribuTion chaneLS 2011-2013

    Smederevo

    ex YU by railWest europeby trucks

    5%

    27%

    7% 6% 5%

    4%

    16%

    5%

    23%others

    Italy directby rail

    danubedownstream

    SerbiaeXW / FCa

    danubeupstream

    Bar / Italy

    Central europeby trucks

    waterways9.23 $/mt

    other8.32 $/mt

    Trucks8.27 $/mt

    rail16.11 $/mt22%

    20% 28%

    38%

    Serbia eXW/FCa 0 $/mtBar / Italy 48 $/mtItaly direct by rail 56 $/mtCentral europe by trucks 45 $/mtWest europe by trucks 84 $/mteX Yu by rail 22 $/mtdanube downstream 20 $/mt

    average cost 41.93 $/mt

  • • Structural steels for general range of application

    • Low-carbon steel products for cold rolling

    and direct application

    • Steel for shipbuilding industry

    • Fine -grained micro-alloyed steels

    • Steels for boilers

    hoT roLLed ProducTS

    HrC• Thickness range 1.5 – 15.0 mm

    /checkered 3,0 – 10,0 mm / P&O 1,5 – 6,0 mm

    • Width range 720 – 2050 mm

    /checkered 720 - 1550 mm/ P&O 720 – 1500 mm

    • Coil weight 6 – 28 t

    HrSH• Thicknes range 3.0 – 15.0 mm / checkered 3.0 – 10.00 mm

    • Width range 720 – 2050 mm / checkered 720 – 1550 mm

    • Length 2000 – 12000 mm / checkered 2000 – 8000 mm

    • Bundle weight max 15 t

    Production program

  • • Low - carbon steels

    • Products from structural steels

    • Enameling steels

    coLd roLLed ProducTS

    CrC• Thickness range 0.35 – 3.0 mm

    • Width range 700 – 1500 mm

    • AM / BM surface, oiled

    / un oiled, ID 508 / 610, mill / trimmed edges

    • Coil weight 5 – 24 t

    CrSH• Length 1000 – 4000 mm

    • Bundle weight 2-6 t

    CrSC• Width range 200 – 700 mm

    Production program

  • Tin ProducTS

    Production capabilities are for BA and CA

    material and both kind in Single reduced and

    Double reduced

    Sr - material• Thickness range 0.17 – 0.49 mm

    • Width range 700 – 990 mm

    • Coil weight 4 –18 t

    dr - material• Thickness range 0.14 – 0.29 mm

    • Width range 700 – 990 mm

    Cutted tin plate – sheets,for both Sr & dr material• Length 500 – 1150 mm

    • Bundle weight 0.5 - 2 t

    Production program

  • HR&CR Product - TOP 15 destination

    2011 2012

    2013

  • Sales - Product type

    2011

    ToTaL1.135 ToTaL367 ToTaL348

    2012 2013

  • Production and Capacity

    Product Unit Quantity Value in 000 EUR

    2011 2012 2013 2011 2012 2013

    Hot Rolled products MT 675,235 218,894 271,489 415,771 111,420 122,239

    Pickled MT 151,622 30,771 15,884 96,678 16,106 7,894

    Cold Rolled products MT 160,770 34,554 29,609 115,374 20,894 16,385

    Tin Mill MT 149,562 45,290 38,781 141,638 37,854 31,728

  • Production and Capacity

    Machine (Production line) Unit Installed capacity Real capacity % of utilization

    2011 2012 2013

    Blast Furnace 1 t 750,000 675,000 36.52 0 0

    Blast Furnace 2 t 1,100,000 990,000 83.60 28.75 33.10

    Steel Mill t 2,200,000 2,000,000 41.80 15.85 18.13

    HR rolling line t 2,200,000 2,000,000 56.32 15.11 16.99

    HR sheers t 600,000 540,000 24.23 6.28 5.11

    HR Sliter t 300,000 270,000 10.84 1.80 1.42

    Pickling line 1 t 300,000 270,000 25.44 0 0

    Pickling line 2 t 750,000 675,000 59.24 15.75 12.64

    Tandem t 750,000 675,000 47.49 11.95 10.38

    Conti cleaning t 120,000 108,000 71.81 22.23 13.62

    Conti annealing t 120,000 108,000 76.92 22.30 23.08

    ZCNK1 + ZCNK2 t 500,000 450,000 50.39 12.79 9.34

    DCR t 450,000 405,000 54.44 16.45 10.80

    Tempering t 300,000 270,000 31.65 4.67 4.41

    Sheer 1 t 100,000 90,000 3.56 1.69 1.21

    Sheer 2 t 100,000 90,000 25.47 8.05 8.76

    Sliter t 200,000 180,000 38.00 6.36 6.31

    ETL t 180,000 162,000 81.83 26.61 21.43

    Sheer 1 Sabac t 60,000 54,000 2.19 0 0

    Sheer 2 Sabac t 60,000 54,000 78.52 24.76 25.41

    capacity utilization

  • Realization

    movement in sale volume

    Product/service Quantity sold Value in 000 EUR

    Unit 2011 2012 2013 2011 2012 2013

    HR products MT 671,745 233,000 267,934 413,622 118,601 120,638

    Pickled products MT 146,213 34,305 15,472 93,230 17,956 7,689

    CR products MT 148,444 41,228 27,655 106,529 24,930 15,304

    Tin Mill MT 148,357 58,643 36,776 140,497 49,015 30,077

    ToTal : 753,878 210,501 173,708

    Sales structure in % 2011 2012 2013

    Domestic market 21.03 43.28 28.38

    Foreign market 78.97 56.72 71.62

    ToTal : 100.00 100.00 100.00

    Sales structure distribution channels

    Distribution channels % of share

    Direct sale 76.22

    Wholesale 0

    Retail 0

    Intermediaries 23.78

  • OrganizationEMPLOYEES

    number of employeesWorking 4,033

    Paid leave 151

    Unpaid leave 1

    Other (sick leave, vacation, etc.) 841

    ToTaL number oF emPLoyeeS 4,996

    age structure of employeesAge -25 25-35 35-40 40-45 45-50 50-55 55+

    Number 118 561 512 648 738 1,003 1,416

    average salaries in eur(gross and net) in 2011, 2012 and 2013

    Year Gross Net

    2011 818 586

    2012 684 488

    2013 609 436

  • Assets Overview

    A) Information contain in this document is based on the data reciev ed from the company, and as such has not been veryfied by the Privatization Agency. Accordingly, the Privatization Agency shall have no liability with respect to the accuracy and validity of the information contained here in.

    B) Pursuant to the law, enterprises from the Republic of Serbia were obliged as of 2004 to prepare Financial Statements in accordance with the International Standards of Financial Reports (ISFR).

    Value in 000 EUR

    31/12/2012 31/12/2013

    CURRENT ASSETS 68,728 95,313

    FIXED ASSETS 136,011 122,758

    OPERATING REVENUES 188,440 188,926

    TOTAL EQUITY 144,356 17,980

  • SWOT Analysys

    STrengThS: Good production capacity, except VP 1

    (requires masonry) and agglomeration machines; Competitive dimensional range, especially in hot-rolled products; Working and technological discipline according to

    the highest standards in the steel industry; number of employees adjusted to the current

    organization and technological equipment.

    oPPorTuniTieS:Expanding product portfolio by investing in new facilities, primarily galvanizing and

    coating plates; Two large car manufacturers close to or within a reasonable distance from

    the town of Smederevo; Good geographic position, assuming the recovery of industry

    and construction in southeastern Europe.

    weaKneSS:High transportation costs of raw materials, regardless of the route of delivery; High energy prices (electricity and natural gas); No coke plant within Zelezara increases the cost of coke and energy; reduced capacity to produce sinter due to reconstruction of Agglo machines undertaken in order to reduce emissions of particles in atmosphere; unfinished process of legalization of buildings.

    ThreaTS: Numerous staff is going to keep leaving due to retirement, not enough young workers who would be trained to take over the work; Uncertain perspective is moreover affecting the outflow of qualified personnel; high cost of production and low domestic and ex-Yu market lead to losses even with a smalest l disturbances in the market of raw materials and / or finished products; problems in the legalization of objects reduce the ability for credit support.

    s

    o

    w

    t

  • Advantages of Investing in Serbia

    Favorable geographic position, owing to which any shipment can reach any location in Europe within 24 hours

    Highly educated and cheap labor force

    Restructured and stable financial system

    Simple procedures for a company start–up and registration

    Simple procedures for foreign trade transactions and foreign investments

    Several free trade agreements have been signed, ensuring supply of goods to nearly 800 million consumers:

    • In March 2012 Serbia was granted the candidates status by the EC

    • CEFTA

    • Agreement with the EFTA members

    • Autonomous trade preferences granted by the EU in December 2000, and implementation of the Interim Trade Agreement with the EU started in February 2010

    • Agreement with the Russian Federation, Belarus and Kazakhstan

    • Agreement with Turkey

  • Contact

    Privatization agency republic of SerbiaAdress: 23 Terazije, 11000 Belgrade, SerbiaPhone: +381 11 / 3020-800Fax: +381 11 / 3020-828Email: [email protected]

    www.priv.rs

    ministry of economy republic of SerbiaAddress: 20, Kneza Milosa Street, 11000 Belgrade, Serbia

    www.privreda.gov.rs