Swiss company 8B Capital, led by Igor Šamiza, which leased the forging and steel plant at Nikšić Steelworks, has been given a deadline until mid-July to settle its accumulated debt for rent and workers’ wages, as per the contract they have violated since the start.
Svetozar Golubović, Chairman of the Board of EPCG Željezara Nikšić, said that except for one company representative, no one else is showing up and all their activities have been halted.
They were given until mid-July to pay the outstanding debt of approximately €650,000 to €700,000. The contract was terminated on May 26, according to EPCG’s parent company. If 8B Capital pays the debt by the deadline, discussions about a new contract may follow.
If the debt is not paid, both parties will try to resolve the dispute amicably, but the contract states that all disputes will be settled by arbitration under the International Chamber of Commerce rules in Geneva, Switzerland.
Currently, the steelworks operates according to EPCG’s established plan and meets current obligations despite the large debts.
Golubović explained that the total debt increased because some include liabilities from both 2023 and 2024 — €3.5 million in 2023 and €2.1 million last year. Debt decreased by 40% last year compared to 2023.
Currently, 95% of production serves EPCG, with no capacity for other suppliers. The priority is to maintain or increase production levels to regularly service debts and employee wages.
8B Capital was the only persistent bidder for leasing the steel and forging plant, signing a 50-year contract in July 2024. The company committed to investing €7.75 million within one year of starting production and €36.85 million over five years.
