China's Hebei Ironand Steel Group Co. Ltd. has offered €46 million for the loss-making,state-run Zelezara Smederevo steel mill in Serbia, Reuters reported April 5, citingSerbia's Economy Ministry.

The group also pledged to invest US$300 million to expand theproduction line into galvanization, increase capacity to up to 2.1 million tonnesper annum and improve the facility's environmental performance.

The US$300 million represents a "minimum investment overthe next two years," said Bojan Bojkovic, CEO of the Serbian firm.

There are no plans to lay off any of the plant's 5,050 workers,the ministry added.

Zelezara Smederevo posted a net loss of US$113 million in 2015.

The contract will be signed after receiving approval from thestate commission against money laundering.