Hesteel Group has acquired the Zelezara Smederevo steel mill for €46 million from the Government of Serbia.
The mill has two blast furnaces and produces 2.2 million tonnes a year. It employs over 5000 people. Hesteel has agreed to invest $300 million in the plant following the deal.
The Serbian Government bought the mill from US Steel in 2012 when it was threatened with closure.
The deal is part of the Serbian government's wider strategy of privatisations.
HeSteel Group (Hebei Iron & Steel Group) is a Chinese steel producer and the second largest producer of crude steel in the world.