Steel Mills

Esmark Bidding for Serbian Steel Mill

Written by Sandy Williams

October 30, 2014

Esmark Inc has confirmed its interest in acquiring all the assets of Serbian government-owned steel facility Zelezara Smederevo, a producer of steel, hot-rolled and cold-rolled products, and tin plate-coated products serving customers in Central Europe. Esmark Inc. has formed Esmark Europe to lead mill operations, finance, and commercial sales if the bid is successful.

During a meeting in London Tuesday with Serbian Prime Minister Alexander Vucic, Bouchard said that he and the Prime Minister, “Had an extremely productive and fruitful discussion and Prime Minster Vucic advised us of the Serbian government’s intentions to announce a public tender process within the next few days,” said Bouchard. “We’re very thankful to the Prime Minister and all the Serbian government officials for their cooperation during the pre-tender and due diligence process, and we committed to Prime Minister Vucic that Esmark would submit an offer for Zelezara Smederevo during the tender process.”

The management team for Esmark Europe includes:

• Mark Whalen, Chief Executive Officer. Whalen was formerly Vice President of Operations for U.S. Steel Kosice and former General Manager of Operations for ArcelorMittal U.S.;

• Karl Csensich, Executive Vice President and Chief Financial Officer. Csensich served as CFO of U.S. Steel Europe and also Vice President of Finance for U.S. Steel Kosice;

• Michael P. DiClemente, Executive Vice President of Finance and Treasurer for Esmark Europe and Esmark, Inc., respectively. DiClemente previously served as Treasurer of Wheeling-Pittsburgh Steel Corporation and became Treasurer of Esmark, Inc. when Wheeling-Pitt merged with Esmark, Inc. in 2007.

• David Luptak, Executive Vice President and General Counsel. Luptak formerly served as President and Chief Operating Officer of Wheeling-Pittsburgh Steel Corporation, Vice President of U.S. Steel Kosice, and General Counsel for U.S. Steel Europe;

• Michael Ogrizovich, Executive Vice President. Ogrizovich, who currently serves as President of Esmark Steel Group, previously served as Manager of Commercial for both Inland Steel and ArcelorMittal U.S.;

• Steve Powers, Vice President of Commercial. Powers previously served as Executive Vice President of Strategic Planning and Development for Wheeling-Pittsburgh Steel Corporation, and General Manager of Strategic Planning for both U.S. Steel Kosice and U.S. Steel Europe; 

• John Davis, Vice President of Engineering and Purchasing. Davis formerly served as Vice President of Engineering and Purchasing for Wheeling-Pittsburgh Steel Corporation and held management positions at U.S. Steel Corporation;

• Diane Powers, General Manager of Commercial Sales. Powers previously served as General Manager of Non-Prime products for Wheeling-Pittsburgh Steel Corporation, and as Manager-Commercial for U.S. Steel Kosice; and

• Paige Polumbo, Vice President of Logistics. Polumbo previously served as General Manager of Customer Service and Transportation for U.S. Steel Kosice and Manager of Logistics for U.S. Steel Corporation.

Zelezara Smederevo was sold to US Steel in March 2003 for $23 million and was repurchased by the Republic of Serbia in January 2012 for one dollar.

The flat rolled mill has two blast furnaces and three basic oxygen convertors for a potential production capacity of 2.2 million tonnes of crude steel that is rolled into hot and cold-rolled coils. The company also produces tin plate at its facility in Sabac. Until 2012, Zelezara accounted for 13 percent of Serbian exports according to news source InSerbia.  Zelezara Steelworks uses the Port of Smederevo to unload raw materials delivered by the Danube River, as well as for loading the barges intended for river transportation of products to customers. 

 

Sandy Williams

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