The United States Steel Corporation will not be selling its U.S. Steel Košice (USSK) plant for now. This is because the Chinese company, the He Steel Group, the third biggest steel producer in the world, has interrupted negotiations for the takeover of the plant, the public broadcaster RTVS informed.
China has halted all investments abroad because it has problems with its own economy.
“The Chinese government has curbed the export of investments of especially large companies in a very strict way,” Peter Baláž from the Faculty of Commerce at the University of Economics in Bratislava told RTVS, adding that it may be that the situation is financially so complicated that investments were halted to stabilise the situation in China.
The He Steel Group is a state company owned by the regional government of the province of Hebei in the north of the country.
USSK has refused to comment about any information on its possible sale.
They had already signed a memorandum of understanding with He Steel in late January, according to information obtained by the financial daily Hospodárske Noviny. He Steel reportedly offered to pay €1.4 billion for USSK, promising to invest an additional €1 billion into the modernisation of its production technologies in order that the plant could compete with modern European steel makers.
During negotiations between USSK and He Steel the Regional Court in Košice blocked the sale of most of the land under the premises of USSK, due to a long-lasting dispute with the American letter box company Adams &Co worth about $50 million.
10. Jul 2017 at 23:21 | Compiled by Spectator staff