December 6 (SeeNews) - Czech industrial engineering group ZK-Termochem said on Tuesday it plans to invest 100,000 euro ($107,421) in an upgrade of its steel structures factory in Niksic, Montenegro, by the end of 2016.
The company, operating in Montenegro through local subsidiary Metalac Termochem, has invested 300,000 euro in the Niksic factory since taking control over it in July and expects the staff of the plant to reach 70 by the end of the year, Montenegrin media quoted the executive director of the unit, Zivorad Krsmanovic, as saying on Monday. ZK-Termochem quality manager, Anna Rosenberg, confirmed the information to SeeNews in an e-mail.
Contractual obligations to the Montenegrin state are settled, and the repayment of debt to former employees has started. The repayment is divided into four instalments, with the first three, or a total of 600,000 euro, already settled, local broadcaster PINK M TV quoted Krsmanic as saying on Monday.
Metalac Termochem is currently carrying out a 700,000 euro project for the prefabrication of electrostatic precipitators, he added.
Termochem was the only bidder in the tender for the acquisition of the Niksic factory, carried out in July 2016. The Czech company offered 330,000 euro for the acquisition of the assets of insolvent Montenegrin metal products maker Metalac.
The factory covers 16,000 sq m of indoor area and includes units for the production of 400 tonnes of steel structures and 40 tonnes of machine spare parts monthly. The outdoor storage area of the factory stands at 2,000 sq m.
($ = 0.930918 euro)