Montenegro may be forced to sell EPCG Zeljezara

“The preferred option is to find a strategic partner, but the sale of Zeljezara is not excluded either, though only as a last resort,” Mujovic said last week as seen in a video posted by Montenegro’s government.

“We will talk again about leasing these facilities, but maybe under different conditions. The tender conditions were very strict. Some companies expressed an interest in including the possibility to build a solar power plant within the steel mill, which would be a big advantage,” Mujovic said.

Last week, EPCG rejected the sole bid in the second tender for leasing the steelmaking and forging facilities of EPCG Zeljezara submitted by Swiss-registered company 8B Capital S.A.

EPCG launched the second tender for EPCG Zeljezara's lease at the end of March. following the first unsuccessful tender earlier in March after 8B Capital failed to provide bank guarantees. Prior to that, EPCG had rejected the preliminary proposals of a consortium made up of local company Neksan, China’s Universal Energy and Czech Energy & Industrial Management Advisory Services, and a Swedish tie-up comprising Kvalitetsbygg Gruppen and Uber Nordic, inviting 8B Capital only for further negotiations.

EPCG acquired Zeljezara Niksic from Turkey's Toscelik for 20 million euro ($21.3 million) in December 2022.

Located in the western city of Niksic, EPCG Zeljezara has two 60-tonne electric arc furnaces that can produce an estimated 300,000 metric tonnes of crude steel per year.

$ = 0.9391 euro