In the array of gifts that Chinese President Xi Jinping has received from foreign dignitaries throughout the years, one item stands out — a commemorative plaque crafted from steel. This remarkable memento serves as a testament to China's unwavering commitment to a steadfast ally.
This circular plaque, adorned with a delicately etched depiction of a steel mill, captures the intricate outlines of blast furnaces, exhaust chimneys and workshops. It was painstakingly fashioned by skilled workers at the renowned Smederevo Steel Mill, using their very own steel. Presented to President Xi during his visit in 2016, this gift serves as an expression of heartfelt gratitude.
A group of Chinese management staff on regular inspection at Hesteel Serbia, previously known as Smederevo Steel Mill, in Serbia in this 2018 file photo. Xinhua
Situated in the city of Smederevo by the Danube, the Smederevo Steel Mill, Serbia's largest steel factory dates back to 1913.
Local workers cherish its long history, harkening back to the days when it was a symbol of national pride — a state-owned enterprise that contributed a substantial 40% of the city's fiscal revenue and employed nearly one-third of its inhabitants.
The mill's fortunes took a dire turn during the late 1990s, as declining competitiveness and inadequate management pushed the plant close to closure. In the following two decades, it endured bankruptcy, privatization, a government buyback for a mere dollar, and even foreign management. Yet, none of these endeavors seemed to revive the company.
In 2016, China's HBIS Group acquired the Smederevo Steel Mill for 46 million euros (US$48.64 million) under the Belt and Road Initiative (BRI). This investment marked a turning point for the mill, subsequently rebranded as Hesteel Serbia.
Beyond bringing forth advanced technology and implementing efficient management systems, HBIS Group streamlined the procurement process for raw materials while paving the way for European market penetration. Within a matter of months, the rejuvenated steel mill began to yield profits, setting a course for remarkable growth. By 2018, it boasted a track record of delivering superior products to over 30 countries and regions. It has been Serbia's leading exporter for three consecutive years since 2020.
Two months after the Chinese acquisition, President Xi visited the factory.
Reflecting on Xi's visit, Vladan Mihailovic, the chief operating officer of the steelworks, recalled, "I assured President Xi that each and every one of us here would dedicate ourselves wholeheartedly to ensure the success of this project, drawing upon the rich experience accumulated throughout the factory’s more than 100-year history."
Following the acquisition, the HBIS Group formulated a development plan that placed the interests of the workers and local residents at the forefront. The plan also focused on cultivating supportive industries such as cement and glass.
Hesteel Serbia, not content with pursuing profits, also makes an effort to fulfill its social responsibility. In recent years, the company has donated over US$1 million to improve the welfare of the local population, aiding in infrastructure development, supporting education initiatives, and providing clean drinking water to rural villages.
"The resurgence of the Smederevo steel plant serves as compelling evidence of the positive impact of the Belt and Road Initiative, leading to job creation and economic growth in Serbia," proclaimed Serbian President Aleksandar Vucic during his meeting with Xi in 2018.
Echoing Vucic's sentiments, Xi emphasized the unshakable friendship between China and Serbia during their meeting in 2022. He stressed the need to advance high-quality Belt and Road cooperation, maximizing the economic and social advantages offered by projects such as Hesteel Serbia.