Next month, the Swiss firm “8B Capital,” which has secured a 50-year lease for the Forge and Steel Plant at the Nikšić EPCG Steelworks, is expected to hire 150 workers as outlined in their contract (25 per month). However, they have yet to onboard the initial group of 25. Additionally, they have not made the regular monthly rent payment of 31,000 euros. Despite this, Svetozar Golubović, the president of the Nikšić factory’s Board of Directors, stated, “The lessee will fulfill all contractual obligations.”

“The lessee’s obligations came into effect on October 1st, and I believe that both we and the parent company, Elektroprivreda (EPCG), have been quite patient in hopes of restarting operations. While we are not at a loss, we granted the lessee an extension that they requested. The lessee is serious about the endeavor and frequently visits the Steelworks with a team of experts to assess the situation and equipment condition before commencing production,” Golubović shared in an interview with “Vijesti.”

The Swiss company established its subsidiary, “20B Capital Montenegro,” on January 8 of this year, appointing Igor Shamiz as CEO. He visited the Steel Plant yesterday with a team of experts and is required to commence production within a year of signing the loan agreement.

“We anticipate that they will start hiring workers in two or three months, with production set to begin in July. They are evaluating the plant’s condition, and their experts are advising that more investment is necessary than originally specified in the contract. As far as I know, the plan is to produce ingots in the first phase and introduce them to the market. While ingots are a semi-finished product, they won’t provide significant revenue. However, there are indications that other production aspects should be prioritized during this timeframe,” Golubović asserted.

Shamiz previously noted that the available equipment at the Steelworks allows for the production of over 300,000 tons of steel. He explained that about 100,000 tons of raw steel are needed to produce approximately 5,000 different alloy steel profiles in the Forge, with the remaining 300,000 tons designated for high-quality concrete steel production. He also indicated that the Forge should manufacture hot-rolled strips and other market-demanded products.

The contract between “8B Capital” and Elektroprivreda outlines an investment of 36.85 million euros over the next five years.

“We are fulfilling our obligations to our employees, but they are earning their salaries. Once the contract execution with Shamiz regarding the employment of workers begins, there may be concerns over our capability to provide the requisite number of workers as outlined in that contract, given their commitment levels, but we will wait and see,” Golubović stated.

The plan calls for 312 workers

Approximately twenty days ago, a systematization was approved, which allows for 312 job positions. According to Golubović, EPCG Željezara currently employs 254 workers, with potential plans to hire an additional dozen, specifically for jobs essential to completion, such as locksmiths and welders.

“The Steelworks personnel are currently engaged across three sites for the construction of solar power plants. These are the ‘Vrtac’ dam, where work is nearing completion, the factory itself, and the perimeter around the Steelworks, along with the latest site, Kapino polje, where several foundation concrete slabs have already been laid, and the area has been readied for the installation of substructures and frameworks, for a new large solar power plant funded by the parent company. Almost 95 percent of the jobs for Steelworks workers come from EPCG,” Golubović said.

He added that they are still waiting for grid connection, as the transformer station has been undergoing trial runs in recent days.

“Revitalizing those substations took a considerable amount of time, approximately six months, and has now been completed. The trial runs lasted several days to identify any possible issues that emerged during the revitalization, which could then be swiftly remedied to enable the immediate connection of 2.2 MW solar power plants to the grid. This process can be somewhat convoluted. Two solar power plants have also been constructed on the roof of the former Vučionica and will be the first to connect, which we expect to happen soon. Regarding other activities, there has been significant progress on renovating the old administrative building of the directorate, with most of the work now finalized. Employees from ‘Solar Construction’ and the Renewable Energy Sources of the Electric Power Company have relocated there. The first two floors have been filled, and the third floor is being equipped for Ironworks employees who will need to vacate the new administrative building when investors arrive.”

The factory continues to pay wages to employees currently engaged in solar power plant construction.

Hazardous waste removal is forthcoming.

Regarding the disposal of hazardous waste from the Vučionica hall, accumulated during the Tosčelik period, the Ironworks allocates 25,000 euros each month in eco-fees. Golubović expressed hope that this waste could soon be cleared from Vučionica, the hall leased to “8B Capital.”

“This environmental fee has weighed heavily on the Steel Plant’s operations for an issue we did not cause. My current understanding is that this waste could be removed promptly. It should have been resolved by now. A public call was issued, and after some complaints, it was canceled, requiring us to restart the process. Based on the latest information I’ve received, that call has been finalized without any complaints, and we hope to have confirmed details within the next 30 days. We expect this waste to be removed soon. There’s an additional challenge in that this waste can’t be disposed of in our regional countries, but only a limited number of European ones treat it appropriately.”

Debt to the Tax Administration and the Electric Power Company, approximately 2.5 million, will be repaid in installments

Golubović highlighted that they have been performing well over the past three to four months, paying their workers’ gross salaries, and in December, they allocated about 150,000 euros for winter food for 280 workers, the same number employed at that time, and a similar sum for severance packages for approximately thirty retirees, granting them between 5,000 and 6,000 each.

He expressed optimism about repaying their tax debts as well as their debts to EPCG through a restructuring process planned for the next two years.

“We currently owe the Tax Administration around 1,300,000 euros. These are taxes and contributions from last year when gross salaries were unpaid for ten months, leaving only net wages. Weare starting to tackle this tax debt through a reprogramming process and plan to reach an agreement with the Tax Administration, backed by guarantees from the parent company, to settle these dues over 24 months. This will incur a monthly burden of roughly 55,000 euros,” Golubović detailed.

He also mentioned that they have reached an agreement with EPCG to extend the payment of a 550,000 euros debt over the next two years, stemming from two loans provided by the founding company.

“This repayment plan will unfold over the next two years, resulting in a monthly responsibility of about 23,000. We also have outstanding obligations for consumed electricity, totaling around 300,000, which we aim to reprogram over a two-year period. This would create an additional load of around 13,000 euros per month. Nevertheless, it is essential for us to ensure that all subsequent obligations are met. Our primary focus is on having sufficient work to maintain our commitments,” Golubović concluded.

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