Montenegro, EPCG to decide on Zeljezara Niksic takeover on 3 October

, SEE Energy News

President of the Board of Directors of Montenegrin power utility EPCG Milutin Djukanovic said that the company’s shareholders will vote on the possible acquisition of steel mill Zeljezara Niksic at the next meeting scheduled for 3 October.

In August, Prime Minister Dritan Abazovic said that the Government has given the green light to state- owned power utility EPCG to start negotiations with Turkish Toscelik for the takeover of Zeljezara Niksic steel mill. He said that EPCG assumes the commitment to negotiate the sale price and the way to execute the acquisition of Zeljezara Niksic with the Turkish company.

Djukanovic said that the steel mill has a huge potential for the installation of rooftop solar panels, adding that up to 60 MW in capacity could be installed. He also said that EPCG is considering converting part of the steel mill into a plant for the production of equipment for solar power plants, namely construction parts, adding that the company will seek a partner for such endeavor. Djukanovic also said that he believes that the Montenegrin state will help EPCG to finance the takeover of Zeljezara Niksic by purchasing EPCG’s own shares. Last week, Montenegrin state purchased 2.8 % of EPCG’s shares for 15 million euros.

Toscelik acquired Zeljezara Niksic in 2012, at the tender for 15.1 million euros. Toscelik suspended production activities at Zeljezara Niksic in March 2021, due to a drop in orders caused by the coronavirus pandemic. Last year, the Turkish company said it is in talks for the sale of the steel mill.