Three bids were received for the international public call for lease of the steel and blacksmith facilities within EPCG Željezara - the company "8B Capital SA" from Lugano, Switzerland, and two consortia, "Universal Energy" (China), "Energy& Industrial Management Advisory Services" (Czech Republic) and "Neksan" (Montenegro), as well as "Kvalitets Bygg-Uber Nordic" from Sweden, while a letter from the representative of the company "Wiesinger" from Austria arrived at the EPCG e-mail address, for which, during the opening of bids, it was judged that the same cannot be counted as an application for a public invitation.
The bid opening was attended by Miodrag Daka Davidović from the company "Neksan", the representative of the consortium consisting of companies from China, the Czech Republic and Nikšić, and the representative of the Swedish consortium Hadži Radoslav Perović.
And while Davidović told the journalists, after the tender opening procedure was completed, that if he wins, production at Željezara will start in one day, Perović said that if the offer from the consortium from Sweden is declared the best, it will happen in four months and this is the first phase, while complete production would begin in two years.
"Our offer is such that it will be difficult for anyone to surpass it. It is a combination of three wonderful companies - an American company, a Chinese company and a Montenegrin one, and I am sure that we will be able to withstand the competition. We start production in one day," said Davidović.
The consortium is offering slightly more than 35 euros for a monthly lease for a period of 30.000 years, and they are planning an investment of 40 million euros in five years, with the possibility of additional ones, as well as the production of green steel and electricity.
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The Swedish consortium "Kvalitets Bygg-Uber Nordic", according to their representative, Hadži Radoslav Perović, plans an investment of 100 million euros, complete decarbonization of production, transition to the production of so-called of green steel and to turn the Nikšić factory into a European one - following the example of certain Swedish steel factories.
"Our goal is to build a European factory in the true sense of the word, to have all the accompanying facilities that European steel factories have - kindergartens, a swimming pool for workers, a cultural and educational center, sports fields," said Perović.
According to his words, the assessment of their engineers and experts is that it would take 2-3 years, and maybe up to five, for production at full capacity, and that the story of starting the Ironworks in three-four months is an impossible mission.
"The first phase implies that after four to five months, we will put the steel mill and the blacksmith shop into operation, using the existing energy sources. The second phase would be after a year, when they would order the construction of mechanical vacuum pumps in order to expel the existing energy sources and to reduce CO2, that is, for total decarbonization in the Ironworks. After 24-26 months, Čeličana, Kombinova, Blooming could be put into operation at full capacity," Perović told reporters.
The Swedish consortium plans to invest 100 million euros in Željezara. According to Perović, this is about dedicated equipment and facilities that would be completed in two years. Their intention is to lease Željezara for 15 years.
"The ironworks is a complex system. Completely new equipment should be installed there when it comes to Cont liv, Combined and Blooming rolling mills and oxygen mills. It is an investment that remains with the state of Montenegro, the city of Nikšić. It is planned that the first phase will attract between 150 and 200 workers, the second phase over 200-250, and when it is released in full capacity after 24 months, some 500-600 workers will surely go, and every year that number increases and the maximum that would be reached is 1.500–2.000 workers, which is not small. This is the projection of our engineers and experts," Perović said.
There was no representative of the company "8B Capital SA" from Switzerland at the bid opening, and the letter of intent, signed by Igor Shamiz, states that they have long-term partnerships with several companies in the world, and financial assistance from a fund from the United Arab Emirates. They believe that by reducing costs by five percent, they would increase production by 30 percent, and that they would initially try to achieve a continuous production cycle in three shifts and the production of 2.500 finished products per month.
"In the first phase, they would perform a technical-technological review and determine the necessary investments in order to prepare production and auxiliary equipment for a continuous production process. "Based on the contract with the previous owners and the determination of the state of the equipment for the last ten years, the level of necessary investments to restore the existing equipment and meet the conditions for restarting production in the mentioned two companies amounts to EUR 5,5-6 million", is the plan of 8B Capital.
In the second phase of development, they plan to invest in the Forge in order to increase the capacity and thus the volume of production of forged carbon steel and alloys up to 5.000 tons per month, which would imply an increase in annual production from 30 tons of forged steel to 60 tons. In the third phase, annual production, according to their plan, would be 60.000 tons of finished products, and they would invest in continuous casting equipment and combined rolling mills, which would allow them to produce 120.000 tons of reinforced concrete and 60.000 tons of "special steel metals". .
Production would start with 25 hired workers, and in the sixth month of the lease, that number would be 150, and the number of production workers would gradually increase.
Their condition is that, if they are chosen as the best bidder, the contract should state that in addition to the advertised lease for a period of five years, they are looking for five more, and that if they show that they have achieved the plan in three or four years, they will be able to purchase the ironworks.
During the bid opening, Davidović asked whether it would be determined which guarantees would be needed and to what extent, as well as which criteria would be prioritized and how they would be scored. Perović asked that the decision not be made "over the knee" and that the negotiations, if necessary, last several months, but that the best bidder be chosen, because Željezara "is not a toy" and the money of all citizens is at stake, as well as that in the entire process the government and the president will be involved.
The financial adviser to the executive director of EPCG, Miro Vračar, promised that he would not hurry with the decision, that it would be the product of the cooperation of several entities, as well as that in the coming period the criteria, method of scoring and guarantees would be defined.
"After the first phase and the opening of bids, the negotiation process will continue in a very short time, about which everyone will be informed in a timely manner. A date will be determined for the submission of amended offers, which will be the subject of a negotiation procedure. Special attention should be focused on the timing of the start of production in Željezara, in terms of the preparation period and focus on the lease period, on the lease price as well as the volume of investments in the lease period," Vračar pointed out, among other things.
DON'T MISS IT
According to the public invitation to lease, which must be for no less than five years, among other things, the furnace, foundry, colliery and annealing hall in the Steel Plant, and the mechanical and construction workshop in the Blacksmith's Plant, the use of the parking space, and the workshop for vehicle servicing and maintenance will be given. , warehouse space...
It was not possible to start production in the Steel Plant and Kovčnica plants under the auspices of EPCG, due to strict rules on state aid.
The committee for the opening of bids was composed of representatives of the Ministry of Energy and Mining, EPCG and EPCG of Nikšić Ironworks.
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