Preface

The clock turns back to the year 2012, a time when the global economy was in a slump, and Serbia, a country on the Balkan Peninsula, was also going through the pangs of transformation. The once economic backbone of the country, the Smederevo Steel Mill, was at this moment like an elderly person in the twilight of their life, staggering and without hope.

This factory, with a century of history, was once a source of pride for the Serbian people. It not only contributed a significant amount of tax revenue to the nation but also provided stable jobs for more than 5,000 local workers, indirectly driving more than 1,600 surrounding suppliers and supporting countless families.

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However, with the global steel market in decline and coupled with poor management, the Smederevo Steel Mill gradually lost its former glory, sliding step by step into the abyss of losses.

In an attempt to save this enterprise on the brink of bankruptcy, in 2003, the Serbian government placed its hopes across the ocean in the United States.

At that time, the United States held an absolute dominant position on the global economic map, and their businesses represented advanced technology and management experience. The Serbians believed that the arrival of the Americans could revive the Smederevo Steel Mill and restore its former splendor.

However, reality dealt them a harsh blow.

The United States Steel Alliance acquired the Smederevo Steel Mill for $33 million. This transaction seemed like a win-win situation at the time.

However, after the Americans took over, they did not fulfill their promises to bring substantial changes to the steel mill. The old equipment continued to operate inefficiently, the management model remained stuck in the past, with low efficiency, and instead of solving the loss problem, it intensified.For Americans, the Smederevo Steel Mill was merely a "pawn" that could be discarded at will. They sought short-term gains rather than long-term development. When they realized that this "pawn" could not bring the expected returns, they unhesitatingly abandoned it.

Nine years later, the Americans "dumped" the Smederevo Steel Mill to the Serbian government for a symbolic price of 1 dollar. This figure deeply hurt the Serbian people's self-esteem and made them see the ruthlessness of American capital.

After the news of the "1 dollar sell-off" spread, the international community was in an uproar. Some mocked the Serbian government's incompetence, while others questioned the moral bottom line of American companies.

But for the Serbian people, it was more like a public humiliation. They watched helplessly as their former "national pride" became a victim of international capital games, and the bitterness and anger in their hearts can be imagined.

However, did the Americans really profit from this? The answer is obviously no. They not only lost an investment of 33 million dollars but also lost their reputation and reputation in Serbia.

Although the Serbian people experienced the humiliation of the "1 dollar sell-off", they did not give up hope. They believe that one day, the Smederevo Steel Mill will stand up again and once again become the pride of the country.

Dawn of hope

After the Americans left, the fate of the Smederevo Steel Mill once again became uncertain. Although the Serbian government took over the steel mill, they also seemed powerless in the face of huge losses and a complex market environment.

In order to maintain the operation of the steel mill, the Serbian government had to invest a large amount of funds for subsidies every year, but this was nothing more than a drop in the bucket and could not fundamentally solve the problem.

Helpless, the Serbian government could only turn its gaze to the international community again, seeking new partners. However, with the "lesson" of the Americans before them, many countries and companies were discouraged, fearing to repeat the Americans' mistakes and end up "losing both the wife and the soldiers".Just as the Serbian government was at a loss, the spring breeze of the "Belt and Road" initiative blew onto the Balkan Peninsula.

In 2016, the Chinese Hesteel Group, a steel giant from the distant East, extended an olive branch to Serbia. They were willing to acquire the Smederevo Steel Mill for 460 million euros and promised to help it turn losses into profits and regain its former glory.

In response, some Western media sneered, believing that Chinese companies were "foolish and money-rich," taking over the mess left by Americans. They did not believe that a company that even Americans could not save could be revived by Chinese companies. Some even asserted that Chinese companies would ultimately follow in the footsteps of Americans, potentially suffering even greater losses.

Faced with doubts and ridicule, Hesteel Group did not back down. They were well aware that this acquisition was not just a business investment but also an opportunity to showcase the strength and responsibility of Chinese enterprises.

They wanted to prove to the world that Chinese companies not only have the ability to manage overseas businesses well but also have the capability to help developing countries develop their economies and improve people's livelihoods.

In April 2016, Hesteel Group officially signed the acquisition agreement with the Serbian government. When the news reached Smederevo, the entire city was in an uproar. For the locals, the arrival of Hesteel Group was like a beam of hope, illuminating their uncertain future.

More than 5,000 steel mill employees were also overjoyed. Many of them had worked at the steel mill for their entire lives and had deep feelings for it.

They believed that under the leadership of the Chinese, the Smederevo Steel Mill would definitely be able to regain its former glory, and they would continue to contribute their strength to the steel mill.

After taking over, Hesteel Group did not rush to make drastic reforms to the steel mill but started by understanding the situation. They sent an experienced management team deep into the production front line, communicated face-to-face with workers, and listened to their opinions and suggestions.They found that the workers at the Smederevo Steel Mill were highly skilled and enthusiastic about their work, but the mill had long suffered from a lack of scientific management and advanced technical support, leading to low production efficiency and inconsistent product quality.

In response to these issues, Hesteel Group formulated a "Chinese solution" by deciding to introduce advanced technology and management experience from China's steel industry to the Smederevo Steel Mill. This was aimed at helping the mill to increase production efficiency, reduce production costs, and improve product quality.

Hesteel Group upgraded and transformed the mill's production equipment, introducing advanced production lines and automated control systems, which enhanced production efficiency and product quality.

They also reformed the management model, implementing lean management practices, optimizing production processes, reducing production costs, and focusing on employee training. Regularly organizing employees to study advanced technology and management experience in China improved the skill levels and management capabilities of the workforce.

To better integrate into the local community, Hesteel Group actively fulfilled social responsibilities, participated in local public welfare activities, donated money and materials to the local community, and improved local livelihoods.

Reborn and Creating Brilliance Again

Under the leadership of Hesteel Group, the Smederevo Steel Mill has been revitalized with vigorous vitality. Within just eight months, the mill achieved a turnaround from loss to profit, creating an industry miracle.

In 2018, the annual output of the Smederevo Steel Mill exceeded 1.77 million tons, setting the highest record since the mill's establishment. The mill's operating income broke through one billion US dollars, making it the largest exporting company in Serbia and making a significant contribution to Serbia's economic development.

The rebirth of the Smederevo Steel Mill not only made Serbians proud but also made the world look at Chinese enterprises with new respect.

The voices of doubt and ridicule that once existed have now turned into admiration and respect. Western media have used terms like "Chinese speed" and "Chinese miracle" to describe the tremendous changes at the Smederevo Steel Mill, acknowledging the competitiveness of Chinese enterprises in the international market as formidable.The success of the Smederevo Steel Mill is a paragon of win-win cooperation between China and Serbia, and also a bountiful outcome of the "Belt and Road" initiative.

The rebirth of the Smederevo Steel Mill is but a microcosm of a broader trend. In recent years, an increasing number of Chinese enterprises have ventured abroad, actively participating in the construction of the "Belt and Road" initiative. They have engaged in extensive cooperation with countries along the route in areas such as infrastructure construction, energy development, and manufacturing, achieving significant results.

Throughout the process of overseas investment, Chinese enterprises have always adhered to the concept of win-win cooperation. They focus not only on their own economic benefits but also on the development of the local economy and the improvement of people's livelihoods.

They actively fulfill their social responsibilities by creating job opportunities, improving infrastructure, and promoting local economic and social development, earning widespread praise from local governments and people.

The "Belt and Road" initiative has not only provided a vast stage for Chinese enterprises to "go global" but has also brought development opportunities to the countries along the route.

In conclusion, under the impetus of the "Belt and Road" initiative, cooperation between China and the countries along the route continues to deepen, trade exchanges become increasingly close, and cultural exchanges become more frequent, injecting strong momentum into the construction of a community with a shared future for mankind.

In the future, with the joint efforts of the people of China and Serbia, the Smederevo Steel Mill is bound to achieve even more brilliant success, becoming a symbol of China-Serbia friendship and a model of win-win cooperation under the "Belt and Road" initiative.