"Sirmium Steel" to have steel smelter built in Sremska Mitrovica – investment worth 50m EUR

Company "Sirmium Steel" is going to invest about 50m EUR in development of steel smelter built in Sremska Mitrovica, which should be finished in the third quarter of year 2009. According to the words of Gordan Jaćimović, the Project Manager, company "Sirmium Steel" is currently collecting necessary documentation. According to the plan, the first works should commence in April 2009.

The smelter will have production capacity of 240,000 tons of steel per year, its maximum power will be 50MW, maximum water consumption will amount to 230 cubic meters per hour, while the maximum consumption of old iron will be about 276,000 tons per year.

The production will be primarily intended for existing steel mill "Metalfer Steel Mill", which operates within Metalfer group. This group and Italian company STG have formed company "Sirmium Steel" and, thanks to that partnership, the announced investments in the smelter will be reduced to aforementioned amount. According to the words of Jaćimović, "STG" is in charge of production and procurement of the entire equipment, and they are also the creators of the preliminary solution for future smelter, which will be built at the lot of 51,300 square meters.

- The smelter is designed for production of steel beams (dimensions - 120x120 (130x130) x 6,000 (12,000) mm) and it will be the main supplier of raw materials (steal beams) to the existing steel mill. The production will substitute import of beams, so that the transportation costs will be reduced since the smelter and the mill will be very close to each other – says Gordan Jaćimović for eKapija.

The infrastructure is optimally developed, which enables efficient transportation of raw materials. The location of the future factory is in the vicinity of Belgrade-Zagreb highway, the port of Leget on the Sava and main railway route Belgrade-Šid. There is also a substation near this location and it has sufficient power capacity for the smelter, which is situated in industrial zone Istok in Sremska Mitrovica.

According to the words of Jaćimović, the factory will be finished about 5 months after the license is obtained. The contractors have already been selected.

- Company "Srem plan" from Sremska Mitrovica is the contractor for concrete works, Novi Sad-based “Mikom” is the contractor for steel structures, while "ABS Minel" will be delivering electric equipment. Also, the negotiations with the local suppliers of old iron are underway.