Uralvagonzavod steels itself for Serbian expansion

According to Kommersant, state-owned machine-building company UralVagonZavod is considering the acquisition of another foreign asset, holding negotiations with the Serbian government over the purchase of steel manufacturer Zelezara Smederevo.

Analysts believe that the purchase could become an albatross around the company’s neck, as the steel manufacturer is loss-making and has outdated assets. Zelezara Smederevo was sold back to Serbia by US Steel for a symbolic 1 dollar in January 2012, as it had incurred losses of USD 100 million in 2011.

For this reason analysts assume that the negotiations with the Serbian government are a political move.

 

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