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Russian and Chinese suitors eye US Steel Kosice-The 18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
8/4/2016 金属展-冶金展-钢铁展-steel expo-metal &metallurgy expo |
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Intelli News reported that amid the European Commission''s announcement on July 28 that it will impose anti-dumping duties of up to 22.5% on Chinese steel imports, speculation about an impending sale of Slovakia’s US Steel Kosice is heating up.
As the largest employer in eastern Slovakia with some 10,000 employees, control of the steelplant has traditionally translated into significant political clout. Hence, speculation that Chinese and Russian bidders are eyeing the asset is raising no little concern.
For now, the Slovak government looks to be holding back, keen to see if private buyers are willing to keep the plant afloat. However, the likelihood of a bid from the east could push Prime Minister Robert Fico into action.
The PM has illustrated in the past just how strategic he considers the plant. In 2013, his government stepped in at the eleventh hour, as it fought the plans of parent US Steel to either implement severe cutbacks or sell. Bratislava eventually handed over a package of �15mn in incentives over 15 years.
Although US Steel Kosice still holds symbolic political weight, low global steel prices and new employers in the region — including IBM and AT&T — leave the region and country less exposed in real terms than they were just a few years ago. Yet a buyer from the east would still prove tricky to sell politically.
South Korea''s Posco is speculated to be mulling a bid, as is Moravia Steel, led by Prague-based Slovak mogul Tomas Chrenek. But it is the potential Chinese and Russian investors that remain the focus of intrigue.
-The
18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
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