Montenegro’s state energy company EPCG has not yet decided on the future of the steelworks and foundry units at the Nikšić plant following the unilateral termination of a lease agreement with Swiss firm 8B Capital.
The Nikšić complex is already largely used for energy projects, while the industrial lease, intended to further valorize the site, did not yield the expected results. EPCG is currently analyzing production capacity utilization and evaluating whether a new tender or alternative management model is justified.
The lease, signed in July last year, required 8B Capital to pay a monthly fee of 31,000 euros and to employ 150 workers within six months. The company failed to meet these obligations, leaving EPCG to cover salaries and resulting in an outstanding debt of nearly 1 million euros by the end of July, including unpaid rent, employee costs, and property taxes.
EPCG has not initiated legal debt recovery yet, pending a decision on whether to pursue another lease or alternative management for the site. The original lease was set for 50 years, with planned investments of 7.75 million euros in the first year and 36.85 million euros over five years.
The steelworks employs 249 permanent staff and 11 on contracts. EPCG acquired the plant from Turkey’s Tosçelik for 20 million euros and officially restarted operations in February 2023, after several failed privatization attempts. Plans for EPCG to directly resume production in the steel and foundry units were blocked by Montenegro’s competition agency due to state aid rules.
