Signed contract: Swiss company leased Kovačnica and Steelworks for 50 years

The company '8B Capital' has shown great persistence in managing the plants in Željezara, and I wish with all my heart that at least part of that persistence will turn into a significant and valuable business result, and that will be enough for the quality and progress of Elektroprivreda and the economy of Montenegro. I am filled with satisfaction and pride that a great effort is behind us, filled with hope that this contract will bring good. However, I also have a certain amount of caution because the previous privatizations of this collective were not so successful, at least not to the extent that we wished for, said Minister of Energy Saša Mujović during the signing of the contract between the Electric Power Industry of Montenegro (EPCG) and the Swiss company "8B Capital" on the lease of production facilities of the Nikšić Ironworks, Forge and Steelworks.

The contract was signed for a period of 50 years, and the company "8B Capital" undertook to invest 7,75 million euros within a year from the date of signing the contract and starting production, while in five years, as they stated in the offer, they will invest 36,85, XNUMX million.

Mujović pointed out that his satisfaction will be complete on the day when the employees of Željezara feel the full benefits of the contract and when Nikšić regains the epithet of the city of steel.

"There is no ironworks without the Steelworks and the Forge, and this is an attempt to revive those plants and restore the soul to this company. I hope and deeply believe that Elektroprivreda has chosen a good partner who will respect the contract and who will show us very quickly that we have done a historic thing in Montenegro", said Mujović with the wish that Željezara would be proud of Montenegro.

The representative of the company "8B Capital" Igor Šamis reminded that the process lasted seven months, and said that he is grateful to Minister Mujović, the President of the Board of Directors of EPCG Milutin Đukanović and the entire team, because for the first time in his life he encountered such professionalism.

"This is the first time I am dealing with work at the state level, and therefore I want to thank you for your support and professionalism. This is a moment of glory for me, and now I have a hard and tiring job ahead of me. I hope that our relations will remain at a high business level and be successful. I have more than 30 years of experience from a professional point of view, I can guarantee that I can prove and show that I know how to work", said Shamis and added that a clearly defined strategy is very important.

President of the Board of Directors of EPCG Milutin Đukanović said that the contract is the only way to finally start steel production in the former "heart of Nikšić".

"What we have on paper works more than well, but we have to move from paper to action. I call on all participants in the process of restoring steel production to work hard, to be maximally dedicated in order to do good for Nikšić and Montenegro", said Đukanović.

According to him, certain processes will continue to function in the Ironworks, such as construction, and it is possible that they will quickly start with the project of energy efficiency, locksmithing, and the production of concrete pillars is also planned.

"There are big challenges ahead of us. "Wherever it is possible to install a solar or wind power plant in Željezara, that remains exclusively within the competence of Elektroprivreda", said Đukanović and added that it is good news that the lessee will invest almost 37 million euros in five years.

According to the CEO of Elektroprivreda, Ivan Bulatović, the signing of the contract is a significant step for EPCG, because, he hopes, it will significantly facilitate the operations of both Elektroprivreda and Željezara, as well as the entire EPCG group.

"What is particularly important for EPCG is that the solar potential in Željezara remains the property of Elektroprivreda, we will continue with the construction of solar panels, and that all this will provide, I hope, in the end the production of green steel, which is the main activity of Željezara and that the conditions for workers in Željezara will be slightly better than they were," Bulatović pointed out.

Member of the Parliamentary Privatization Monitoring Committee Uglješa Urošević pointed out that no irregularities were noted in the procedure.

"The ironworks was a symbol of Nikšić, and as such, of course, the people of Nikšić and the whole of Montenegro expect this to be a successful and long-term cooperation", said Urošević.

The company "8B Capital SA" was the only one to submit a lease offer and pay a deposit in accordance with the public invitation. The Swiss company's offer states that they need six months for the preparatory period for starting production, and that they would hire 152 workers for the first half of the year. The company "8B Capital" offered to pay a monthly rent of 31.000 euros.