Apr 3 2003
US Steel, through its wholly owned subsidiary US Steel Balkan have agreed to purchase bankrupt Sartid a.d. and six of its subsidiaries for $23 million.
The acquisition of the Serbian-based Sartid a.d. is scheduled for completion in the third quarter of 2003, but is dependent on the approval from governing bodies.
Sartid’s primary production facilities include:
- An integrated mill with raw steel capacity of 2.4 million net tons
- A tinning facility with capacity of 130,000 net tons
US Steel have also committed to spending a further $150 million over the next five years on repairs and upgrades. In addition to this, they have agreed not to lay off any of the workforce.
US Steel is confident that it can turn around the fortunes of Sartid and use them to enhance the level of service they can offer to their European client base.
In a further US Steel development, they have moved a step closer to purchasing the assets of bankrupt National Steel, with the Department of Justice Antitrust Division clearing the way for the acquisition to occur. However, AK Steel is still recognised as the lead bidder to acquire the assets of National Steel.
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