Serbian Prime Minister Mr Mirko Cvetkovic signed the agreement on the purchase of the Smederevo based steel factory. The document was also signed by representatives of the US Steel, who acquired the factory in 2003 for USD 23 million.

The American company decided to leave Serbia due to the economic crisis. The agreement was, on the behalf of the company, signed by US Steel Vice President for European Operations Mr David Rintoul.

Mr Cvetkovic pointed out that the government did not plan to own the company for a prolonged period of time, but would instead seek a strategic partner. He added that "The government will put in maximum efforts to maintain the production, find a strategic partner and a way for the plant to start doing business with profit after the crisis."

Mr Cvetkovic also said that "With the example of the steel factory the severity of the global crisis and its effect on Serbia has been proved to the full extent."

He pointed out that the government also decided that buying the factory was better than closing it and added that the measure had a social character, since it saves jobs and takes care of the country's economy.

The Serbian government bought back the factory for a symbolic price of USD 1, with the aim of maintaining production and preserving jobs for over 5,000 employees.

According to Mr Cvetkovic's statement made last week, the factory was debt free at the time of the takeover.

(Sourced from www.b92.net)