Serbia will halt production next month at Zelezara Smederevo d.o.o., the country’s sole and unprofitable steel plant, to cut losses amid low demand, Vecernje Novosti reported, citing the chairman of the shareholders assembly.

U.S. Steel Corp. (X) halted one of the two furnaces last year while the government, which took over the plant in January, will idle the other one on July 5 and shut down a roll mill, the report quoted Predrag Umicevic as saying. Some 5,000 workers will be sent home receiving 60 percent of their wages.

Production may not be restored before September, when the latest deadline expires in a sale tender for Zelezara, according to the report.