In response to moves to privatize Serbia's cement industry, Holcim Ltd. submitted an offer for a majority shareholding in the Novi Popovac plant in December 2001. The bid was accepted by the Serbian privatization ministry shortly before the end of the year. At Novi Popovac's first general meeting on April 11, 2002, shareholders voted in favor of transforming the former state-run company into a stock corporation, paving the way for Holcim to acquire 70% of the share capital from the Republic of Serbia at a price of US$7 million. Before closing the transaction, Holcim successfully negotiated a debt-restructuring plan with Novi Popovac's principal creditors. Accordingly, the new company, Novi Popovac AG, has debts of only US$7 million. The cement plant, located approximately 150 km south of Belgrade, has an installed annual cement capacity of more than 1 million mt.