AP reported that Serbia's government will try to avert the closure of its main exporter US Steel Serbia despite its poor financial results.

The government said that it will form a special team to help the Pittsburgh based giant maintain production and keep its work force of over 5,000 people in its factory in Smederevo, some 60 kilometers southeast of Belgrade.

Ms Kalanovic said “Certainly, the government cannot silently watch the shutting down of such a big system that is so important for thousands of its workers, the town and the state
She indicated that Serbia, which itself is going through deep financial crisis, would help by covering some of the plant’s losses with funds from its budget.

Some Belgrade media reports even suggested that the state was willing to buy back the plant from the Americans.

US Steel had purchased the plan from the state for USD 33 million in 2003. The Smederevo plant, which is operating far bellow its annual capacity of 2.4 million tonnes, recorded losses of USD 73 million for the first nine months of last year.

US Steel Serbia, which accounts for about 10% of the country's exports, is mulling turning off the second of the two blast furnaces in Smederevo because of mounting losses amid the global economic crisis. The decision will be made on January 31st 2012.

(Sourced from Associated Press)