The Montenegro government has given permission to state-owned electric power distribution company Elektroprivreda Crne Gore (EPCG) to start negotiations with the Turkish steelmaker Tosyalı Holding for the acquisition of the latter’s Montenegro-based subsidiary Toscelik Special Steel’s Zeljezara Niksic steel plant, according to media reports.
The plant has shut down or reduced production in some units in March last year due to market recessions as a result of pandemic, and then the plant’s divestment process has begun.
Earlier this year, Montenegro-based Neksan offered Toscelik €15.1 million for the acquisition of the plant, however this offer was not accepted as Toscelik requested €20 million for the sale.
In 2012 Tosyalı Holding acquired the plant for €15 million, committed to invest €35 million in three year and employ up to 550 workers. However, the company has not been successful in fulfilling its commitments.