The annual production in the Nikšić Ironworks Tosčelik is about 50 thousand tons, of which 30 tons of liquid steel (ingot) and about 20 thousand of the final product, and although last year the turnover increased by 25 percent compared to the previous year and a gross growth of eight percent was achieved , the former giant ended 2018 with a loss. This was announced by the executive director of the factory, Erkut Alkaya, at the press conference, not specifying how much of a loss it is with the explanation that it will be known after the ongoing audit.
Such business performance, according to Alkay, is the result of a difficult market situation for producers of special alloy steels caused by unfair competition from Asia, especially China. According to him, turnover in 2017 was around 17,5 million euros, and he will try to keep it at the same level this year, with a possible growth of ten percent, both in production and sales. He pointed out that the tonnage of products is not an indicator of success, but rather the method of production and the final products.
"Chinese manufacturers place very cheap products on the European market thanks to subsidies from the Chinese government, which amount to up to 13,5 percent of the value of the material sold. Because of this, most manufacturers from Eastern Europe are bankrupt and this is our biggest challenge. If the EU in the near future introduces additional protections or subsidies to producers of alloy steel, we expect the situation to be better," said Alkaya.
According to him, the Turkish company Tosyali, which took over Željezara in 2012, has so far invested more than ten million euros in investments, and the largest ones are the purchase of a rotary furnace in the Kovačnica plant and a system for dedusting gases, which significantly reduced environmental problems.
The factory has a steel plant, a blacksmith shop and facilities for machining, energy, traffic and quality control, and raw materials are mainly purchased in Montenegro, while the missing quantities arrive from Europe.
Željezara employs 302 workers, of whom 200 are permanent, and the rest are temporary, and the management's intention is to transform fixed-term contracts into indefinite contracts for all those who deserve it by the end of next year, as in the previous two months done for eight employees. The executive director of the factory said that they pay salaries and contributions regularly, that the average salary of production workers is at the level of the national average, and that their priority is the highest possible safety of employees.
"Our biggest challenge is to deal with unfair competition and to eventually become the largest producer of alloy steels in Europe. Željezara does not deserve its current position," said Alkaya.
Journalists also had the opportunity to tour the Kovačnica plant, the second time after Tosyali bought Željezara out of bankruptcy for 15,1 million euros.
The Tosyali Group, which includes 23 companies in Turkey, Montenegro and Algeria, ended 2017 with a turnover of 2,8 billion dollars and a net profit of 493 million dollars. Production has increased by 31 percent compared to the previous year, they have around 8.000 workers, and they are currently focused on the North African market.
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