Montenegro state-owned power company Elektroprivreda Crne Gore (EPCG) is preparing to start production at its newly acquired Zeljezara Niksic plant, Kallanish notes.
Last week, EPCG president Milutin Đukanovic reiterated there is a business plan for Zeljezara Niksic, which foresees that 300 workers will be hired at first. He also however pointed out he will not be satisfied until there are 1,000 workers at the plant.
“We have often said that Zeljezara is the soul of Niksic, but when we put these emotional components aside, this property is worth €54 million ($57m) according to the last estimate, and we paid €20m for it,” he noted during the mill’s reopening ceremony. Production will resume shortly, he added.
“I am extremely proud that we have removed the chains from the gates of Zeljezara and that we are returning the plant to the path of glory,” noted Montenegro Prime Minister Dritan Abazovic.
In January, EPCG concluded the purchase of Zeljezara Niksic plant from Tosyali Holding (see Kallanish passim).
According to EPCG, it will transfer to a newly formed subsidiary the property acquired through the purchase agreement. Its aim is to provide additional support for the development of solar and other types of renewable energy sources, which represent the future of the Montenegrin energy sector.
The business plan foresees the new company will consist of several production units – solar, substructure and construction.
Tosyali acquired Zeljezara Niksic in 2012 for €15.1m at a public auction. The company then invested in the plant to improve and modernise production technology, and achieve high product quality.
However, in early 2021, the plant suspended production due to falling orders caused by the Covid-19 pandemic, leading to Tosyali’s decision to sell the unit.
Niksic specialises in the production of alloy and non-alloy steel, roller bearing tool steel and heat-resistant steel.
Svetoslav Abrossimov Bulgaria
