Montenegrin EPCG to purchase the Turkish Tosyali steel plant for €20 million

The state energy company of Montenegro Elektroprivreda Crne Gore (EPCG) will purchase the steel plant Toscelik Niksic from the Turkish Tosyali Holding for €20 million. This was announced EPCG’s Advisor to the Board President Goran Djukanovic, reports Eurometal.

The agreement between the companies should be signed on December 20, 2022. The initial payment of €15 million will be made by January 15, 2023. Another €5 million will be paid by EPCG on February 15, when it receives full ownership of the enterprise.

Tosyali acquired Zeljezara Niksic in 2012 for €15.1 million at a public auction and renamed the plant Toscelik Niksic. Since then, the company has invested in the plant to improve and modernize production technology and achieve high product quality.

However, the company suspended production at the plant in early 2021 due to a drop in orders caused by the coronavirus pandemic, leading to discussions about selling the plant.

Niksic produces alloy steel, non-alloy steel, roller-bearing steel, tool steel, and heat-resistant steel.

EPCG plans to create a technology center at the plant to support solar energy. The company also intends to produce solar panels at the plant’s facilities.

As GMK Center reported earlier, the Montenegrin government gave EPCG permission to start negotiations with Tosyali Holding about acquisition of a steel plant Zeljezara Niksic Steel in August 2022. The company offered €15.1 for the steel plant, but the offer was not accepted.