The director of “HBIS Serbia” Song Sihai, says that this year’s production in Smederevo based “Zelezara” will reach the level of one million and eight hundred thousand tons, and production of cast steel slabs will amount to one million and seven hundred thousand tons.
This will be, as he has stated with RTS, the company’s all-time record.
He has also said that great progress has been made when it comes to export, if we compare the level of last year’s and this year’s exports.
“Exports reached the level of 560,000 tons in the period from January to May, which is 43.6 percent more than in the same period last year and represents a big step forward,” Song has said.
Song notes, however, that if the European Union introduced quotas for the market that covers “HBIS Serbia” as well, it would have an impact on the production, as well as on Serbia’s entire economy.
“We hope that the Government of the Republic of Serbia can help with quotas through its engagement, because market of the European Union is still important for our “Zelezara”, while monthly amount in the Serbian market is less than 20,000 tons,” he has said.
He says that a major job has been done in two years since HBIS has taken over “Zelezara Smederevo.”
He says that EUR158 million has been invested in order to support the entire production and modernization of the equipment, and a lot has been invested in the technology through various projects: from upgrading the equipment, overhaul and reconstruction of agglomeration, the blast furnace, in the steel mill, in casting machinery and in hot and cold rolling. Furthermore, he says, a complete reconstruction of the blooming train, as well as automation of the first and the second level of the rolling line have been completed.
“We earned US$750 million from last year’s production, which is a great contribution to Serbian economy as well. At the same time we paid US$39 million worth of tax, all this being the result of these investments,” says Song.
Speaking about further investment plans, he says they will invest EUR150 million by June 2020, because new equipment is needed in the entire plant.