SERBIA STEEL FACTORY SMEDEREVO IN ECONOMIC TROUBLE

SERBIA US Steel owned SMEDEREVO plant has reported big losses in the first nine months of 2011 and big production cuts are announced with very negative consequences on the region employement and in Serbia export balance.

SMEDEREVO plant was sold to US Steel as other countries in Europe did in the past selling the state owned unproductive production facilities to private holdings. The global economic crisis we are facing since 2008 is showing that there is no solution when markets depressed to unexpected levels.

The european steel industry is facing a very difficult situation and its survival will not be possible if China continuous subsidizing their steel industry , keeping also a below valueYuan exchange rate.

The consequences for Europe of such a policy in terms of unemployment and industry destruction will be similar to the ones of a conventional war in the pass century.