Profit of Zelezara to exceed EUR 20 million at the end of 2017 – Hesteel planning new investments and employments

Zelezara Smederevo has good results and will have a profit exceeding the planned EUR 20 million at the end of 2017, stated Yu Yong, chairman of Hesteel Group, which owns the Serbian steel mill.

Yong, who has just arrived to Serbia, says in an exclusive interview for Tanjug that a large number of problems have been solved in Zelezara Smederevo in the past year and that the steel mill is now back on its feet and turning from a regional company into a global one.

Yu Yong says that the two reasons for his visit to Serbia are to look more deeply into Zelezara’s six-month operations in 2017 and the visit to Serbia of the president of the Resident Committee of the 12th National People’s Congress of China, Zhang Dejiang.

– Since June 2016, when Hesteel took over the Serbian steel mill, big changes have been made, a profit has been made and the losses have been reduced, all thanks to the great efforts of the Government of Serbia and the employees – Yu emphasized.

According to him, Hesteel would not have been able to achieve such results without the great help provided by the Government of Serbia, especially the current president, Aleksandar Vucic, who had paid great attention to Zelezara.

The operating indicators of Zelezara Smederevo have improved, as has the efficiency, and Yu adds that Hesteel had positive results last year and that it continued making profit in the first half of 2017 as well.

– We are quite convinced that we will achieve our goals in 2017. The situation now is quite different from that of a year ago, for example. Our employees are very optimistic and they believe that we will reach those goals. The Serbian factory has transformed from a regional factory to a global one, being competitive globally – emphasized the president of Hesteel Group.

Hesteel aims, he says, to invest EUR 120 million in the steel mill this year in order to have a production of two million tons, worth around USD 800 million.

Since June 2016, Hesteel has been trying to increase the production and the energy efficiency, the supply system and customer relations, and progress has been made in all these segments.

More young and professional people in Zelezara

As he says, this year’s investment of USD 120 million will lead to an improvement in equipment and the implementation of new technology, but also to a further improvement of the production process, and Hesteel is planning new employments as well.

– We pay great attention to human resources and we are planning to introduce more young, professional and talented people to Zelezara – Yu emphasized.

The president of Hesteel points out that he sees positive changes in Serbia each time and that he is very optimistic regarding the country’s future.

– We will continue investing here in the future in order to develop along with the progress of the Serbian economy – Yu said.

When asked how he sees protectionist measures the EU is planning to implement in the steel market in order to protect its countries from low prices, Yu says that it could possibly have a negative impact on Serbian steel mills as well, but that he believes that the most important thing is to develop one’s own efficiency and ability to face challenges.

Although changes in the market happen every day, he is convinced that the Serbian steel mill has a great future and that the European market needs Hesteel’s products.

Železara Smederevo d.o.o.

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

Vlada Republike Srbije

Zelezara Smederevo

Hesteel

Yu Yong

National Peoples Congress of China

Zhang Dejiang

Government of Serbia

Aleksandar Vucic

EU steel price protective measures