Toscelik Special Steel in Montenegro, which stopped production in some units last year due to the stagnation in the markets and the market’s inability to meet production, is now in the sale process, Kallanish learns.
Zaljezara Niksic, which was established more than 70 years ago and is known as the oldest and largest iron and steel factory in Yugoslavia, has been owned by the Turkish company Tosyalı Holding since 2012. Toscelik acquired Zeljezara Niksic in 2012 for €15 million ($14.96m) and invested €35m. The target was primarily to increase the production from 120,000 tonnes to 400,000t.
The plant, which continues to operate as Toscelik Special Steel, stopped production in some units last year due to the market recession as a result of the pandemic and the market’s inability to meet production. With the beginning of the sales process, two important suitors came to the fore. The first of these was Neksan, one of the largest companies in Montenegro, earlier this year. According to the news in the Montenegrin press, these negotiations did not result in positive results and no sales were made.
Now the state-owned power company Elektroprivreda Crne Gore AD Nikšić (EPCG) has stepped in. The Montenegrin government has given permission to EPCG to start negotiations with Tosyalı Holding for the purchase of the Zeljezara Niksic plant.
Burcak Alpman Turkey
