Montenegrin state-owned power utility EPCG and Turkish company Tosyali Holding have signed an agreement on the purchase of property of former steel mill Zeljezara Niksic at the price of 20 million euros.
The property will be transferred to a new company – Zeljezara Solar, which is 100 % owned by EPCG. The newly established company will be engaged in the business of solar panels installation for another EPCG subsidiary – Solar Gradnja. The company will keep the steel mill equipment, but it is highly unlikely that steel production will ever be restarted.
In August, Montenegrin 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 earlier 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.
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.
