Montenegro’s state-owned energy company EPCG will acquire the Toscelik Niksic steel mill from Turkey’s Tosyali Holding for Eur20 million ($21 million), EPCG’s Advisor to the Board President Goran Djukanovic told S&P Global Commodity Insights Dec. 8.
Djukanovic confirmed that an agreement between EPCG and Turkey’s Tosyali Holding was due to be signed on Dec. 20.
An initial payment of Eur15 million will be made by Jan. 15, followed by Eur5 million on Feb. 15 after EPCG takes over the full ownership of the mill.
Tosyali acquired Zeljezara Niksic in 2012 for Eur15.1 million through a government auction and renamed it Toscelik Niksic.
Since then, it has invested in the mill to improve and modernize production technologies and achieve high product quality.
Tosyali, however, suspended production at the plant at the beginning of 2021 due to falling orders caused by the coronavirus pandemic, leading to discussions for the sale of the mill.
Tosyali didn’t respond to S&P Global’s request for additional information about the sale.
Niksic produces alloy steel, non-alloy steel, roller-bearing steel, tool steel, and heat-resistant steel.
Platts, part of S&P Global, assessed European medium sections at Eur985/mt delivered Dec. 7, down Eur265/mt since mid-September.
— Cenk Can