The Bank of China has approved a 600 million dollar loan to the Hesteel Group in order to invest in the Smederevo steel mill, the daily newspaper Politika has learned.
The Hersteel Group has published a plan on its website to make the Smederevo steel mill the most competitive steel and iron mill in Europe. They also have other major investments planned in the facilities and are working to improve quality and environmental protection.
Previously, it was announced that the Chinese would invest 130 million Euro in the steel mill. Later, this sum was increased to 300 million Euro, and at one point before the conclusion of the contract, the figure 900 million Euro was mentioned. Prime Minister Aleksandar Vucic announced that Hesteel will invest 300 million Euro, but in the real estate acquisition contract, the total sum is not indicated.
On the other hand, representatives of the European steel industry are protesting the arrival of the Chinese in Europe and the large quantities of low-cost Chinese steel available on the market.
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