U.S. Steel Corporation (USS) announced today the sale of its U.S. Steel Serbia facility—“for a nominal purchase price”—to the Republic of Serbia.

U.S. Steel Kosice in Slovakia will also receive payment of “certain intercompany balances owed by U.S. Steel Serbia for raw materials and support services, subject to adjustment.”

“Our efforts to improve the operation’s cost structure and shift our commercial focus towards more valued-added products have been unable to offset the particularly difficult economic conditions in Southern Europe,” USS Chair and CEO John Surma said.

“As mentioned last quarter, in response to sustained operating losses at our Serbian operations, we have been pursuing all options to improve the situation there,” Surma added. “The option that proved to be in the best interest of our shareholders is this sale to the Republic of Serbia. The sale will allow U.S. Steel to exit the operations quickly, avoid further losses in Serbia, which were in excess of $200 million in 2011, and redirect our capital to other operations.”

USS expects to record a total non-cash charge of $400-$450 million in the first quarter, which includes the loss on the sale and the charge of approximately $50 million to recognize the cumulative currency translation adjustment related to the company’s net investment in Serbia.

Posted 1/31/2012