During a recent visit to the Nikšić Steel Plant, Prime Minister Milojko Spajić highlighted that the collective is experiencing the initial signs of sustainable production, which they take great pride in. Notably, electricity production has increased from 0.8 megawatts (MW) to 3.4 MW.

“Is the Steelworks problem fully resolved? Absolutely not. A significant effort is still required to entirely activate the Steelworks and utilize its full capacity. However, we must believe in our capabilities. Belief in our potential to improve, to overcome the evident challenges, is crucial,” remarked Spajić, who engaged with the management team and union representatives while touring the factory facilities.

He noted that the European Union is actively pursuing the SAFE program, which has generated a substantial demand for steel intended for dual-use applications, benefitting the Steel Plant significantly.

“We have introduced the Steel Plant as a production center for dual-use products to meet the needs of the entire European Union, thereby enhancing state participation beyond what is common within a market economy,” stated the Prime Minister.

Spajić expressed confidence in the healthy workforce of the Steelworks, emphasizing the commitment of its employees and the support they will receive from the Government.

“We are fortunate to have a state-owned company able to assist and be integral to this initiative, which serves its own interests. Nonetheless, we must prioritize the human element. A steel mill without its workers is not truly a steel mill, and that is the crux of the matter. We will find a market, but it is a challenge to achieve a competitive workforce, management, and business model,” he stated.

Ivan Vujović, president of the Steelworks Union, underscored that workers are keen to work and support their families, assuring that the Prime Minister has ensured that there are no “idle workers and hooligans” remaining at the factory.

“We are confident in our capabilities and assured that this factory will not face bankruptcy as long as we are in charge. A steelworks cannot exist without its workforce, and Nikšić would not be itself without the steelworks. Anyone visiting Nikšić without visiting the steelworks hasn’t truly experienced the city, as it embodies our history and pride,” said Vujović, stressing that support from the parent company and the Government is paramount.

Vujović emphasized that the Union solely backs the Steel Plant’s operations and regular salaries to prevent workers from seeking livelihoods elsewhere, asserting that friends of the workers are always welcome at the Steel Plant.

Svetozar Golubović, Chairman of the Board of Directors of the EPCG Nikšić Steel Plant, remarked that the company lacks sufficient support from its parent company, Elektroprivreda, which he described as “generous,” but insists that more help from the Government and state is needed for upcoming activities.

“Particularly in locating potential, quality investors to commence operations at the metallurgical segment of Željezava. We require a solid investor,” Golubović stressed, adding that they have seen good results over the past five to six months.

According to him, based on the ambitions of the parent company and Elektroprivreda’s projects for the next four to five years, it is assured that the Steel Plant’s workers will have jobs.

The Steel Plant currently employs 249 full-time workers alongside 11 on temporary contracts.

The investor has not met any lease agreement conditions.

The Prime Minister stated he has not engaged with representatives from the Swiss company 8B Capital, which leased the Steelworks’ production facilities and has failed to meet any conditions thereof. However, the state administration has reached out to company representative Igor Šamiz.

“Efforts were made to ignite some cooperation, but we all recognize that it hasn’t materialized. Despite warnings and various measures taken toward the concessionaire, no positive advancements have been noted so far. This is concerning; however, a contract outlines what can happen in such situations, and we will utilize all legal avenues as the state of Montenegro to ensure obligations are met. Should they remain unmet, we are aware of the consequences. Ultimately, we will not tie the future of this collective to any investor or partner. It is vital to believe in ourselves first, which is fundamental for acquiring the faith of others and achieving success,” Spajić concluded.

Miloš Nikolić, executive director of the Steel Plant, pointed out that 8B Capital has not fulfilled its lease agreement obligations and has not hired the agreed number of workers; however, all current workers remain employed as per existing arrangements.

“While the investor has not taken on any workers, we are meeting the requirements set by our parent company and fulfilling our commitments,” Nikolić affirmed, thanking the Government, Elektroprivreda, and, importantly, the Steel Plant workers for “believing in this endeavor,” as only through unity can they restore the factory to its former glory.

Golubović also highlighted the non-compliance of 8B Capital, noting that the lessee has significantly failed to meet obligations outlined in the business and technical cooperation contract, and he will observe how matters progress moving forward.

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