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U.S. Steel Serbia Cutting Output

Serbia subsidiary of Pittsburgh-based U.S. Steel Corp. will substantially reduce production early next year due to the global economic crisis, a company official said Friday.

BELGRADE, Serbia (AP) -- The Serbia subsidiary of Pittsburgh-based U.S. Steel Corp. will substantially reduce production early next year due to the global economic crisis, a company official said Friday.

The company will put its two blast furnaces in Smederevo, about 40 kilometers (24 miles) southeast of Belgrade, on standby in January, said spokesman Nemanja Brkovic.

Brkovic said the decision was made because of falling demand caused by the global crisis. He said the company is not planning layoffs for now.

U.S. Steel Serbia is owned by Pittsburgh-based U.S. Steel Corp., which bought Serbia's biggest, but bankrupt, steelmaker, Sartid Co., in 2001.

The factory has since become Serbia's biggest exporter, with sales reaching nearly euro700 million ($975 million) in 2006. It employs some 6,000 workers.

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