On July 23, the Board of Directors of EPCG AD Nikšić officially notified the company 8B Capital SA of the unilateral termination of the lease agreement for the production facilities of Nikšić Steelworks, citing multiple breaches of contractual obligations.
EPCG stated that the termination was due to repeated non-compliance by the lessee, including failure to regularly pay the lease fee and to meet financial obligations related to the transfer of employees. Despite EPCG’s repeated willingness to resolve issues through dialogue, the agreed conditions were not fulfilled, prompting the contract’s termination.
EPCG emphasized that its priority now is to protect its contractual and property rights within legal frameworks, while also responsibly planning the future of the key production units, especially the Steel Plant and Forge. The company aims to identify a sustainable and strategic model to revive production and support the broader Montenegrin economy.
The lessee was required to pay a monthly lease of €31,000 starting October 1, and to employ 150 workers within six months. However, no workers were hired, and salaries continued to be paid by EPCG, with employees engaged in other EPCG projects like solar plants and concrete block production.
The original 50-year lease agreement with Swiss-based 8B Capital was signed in July last year. The company committed to investing €7.75 million within one year of starting production, and a total of €36.85 million over five years—none of which has been fulfilled so far.
