The Nikšić Steelworks and Forge in Montenegro has seen limited interest for its lease, with Swiss company 8B Capital emerging as the sole applicant for individual negotiations. After two failed tender attempts, the state-owned energy company, Elektroprivreda (EPCG), opted for one-on-one talks with interested parties from previous tender rounds.
Negotiations are ongoing, pending approval from the Board of Directors, the Ministry of Energy and Mining, and the Government. Meanwhile, EPCG continues its operational plan for the Steelworks, focusing on maintenance and solar power installations on surrounding dams.
8B Capital’s bid in response to the second tender call was the only one received. However, it was deemed inadequate due to the absence of a bank guarantee and deposit payment. The public call required a €1.5 million guarantee, subject to negotiation.
During the first tender, multiple applicants submitted bids, but most were excluded due to unattainable conditions. Ultimately, only 8B Capital remained, though their offer was also rejected over technical shortcomings.
In their proposal, 8B Capital outlined plans for significant investments to revitalize production, starting with technical assessments and refurbishments estimated at €5.5 to €6 million. They envision increasing production capacity and expanding product lines, aiming for significant output growth within a few years.
Their proposal includes workforce expansion and extended lease terms, with an option to purchase if performance targets are met.
The fate of the Nikšić Steelworks remains uncertain as negotiations continue, highlighting the challenges of revitalizing industrial assets and attracting investment in Montenegro’s evolving economic landscape.
