Local media reported that the Montenegro government has given permission to state-owned electric power distribution company Elektroprivreda Crne Gore AD Nikšić to start negotiations with the Turkish steelmaker Tosyali Holding for the acquisition of Montenegro-based subsidiary Toscelik Special Steel's Zeljezara Niksic steel plant.The plant, which continues to operate as Toscelik Special Steel, stopped production in some units last year due to the market recession as a result of the pandemic and the market's inability to meet production. With the beginning of the sales process, two important suitors came to the fore. The first of these was Neksan, one of the largest companies in Montenegro, earlier this year. According to the news in the Montenegrin press, these negotiations did not result in positive results and no sales were made.Zaljezara Niksic, which was established more than 70 years ago and is known as the oldest and largest iron and steel factory in former Yugoslavia, has been owned by the Turkish company Tosyalı Holding since 2012. Toscelik acquired Zeljezara Niksic in 2012 for EUR 15 million and planned to invest EUR 35 million to increase the production from 120,000 tonnes to 400,000 tonnes.Some of Toscelik's most substantial investments are SVC (System for Compensation of Reactive Energy) installation, the new vacuum station in the melt shop, burners on the EAF (Electrical Arch Furnace) and Ladle Furnace Revamping, the new RHF (Rotary Hearth Furnace) for reheating ingots and blooms in the forging mill, new lathes for turning bars and other technical improvements.
Local media reported that the Montenegro government has given permission to state-owned electric power distribution company Elektroprivreda Crne Gore AD Nikšić to start negotiations with the Turkish steelmaker Tosyali Holding for the acquisition of Montenegro-based subsidiary Toscelik Special Steel's Zeljezara Niksic steel plant.The plant, which continues to operate as Toscelik Special Steel, stopped production in some units last year due to the market recession as a result of the pandemic and the market's inability to meet production. With the beginning of the sales process, two important suitors came to the fore. The first of these was Neksan, one of the largest companies in Montenegro, earlier this year. According to the news in the Montenegrin press, these negotiations did not result in positive results and no sales were made.Zaljezara Niksic, which was established more than 70 years ago and is known as the oldest and largest iron and steel factory in former Yugoslavia, has been owned by the Turkish company Tosyalı Holding since 2012. Toscelik acquired Zeljezara Niksic in 2012 for EUR 15 million and planned to invest EUR 35 million to increase the production from 120,000 tonnes to 400,000 tonnes.Some of Toscelik's most substantial investments are SVC (System for Compensation of Reactive Energy) installation, the new vacuum station in the melt shop, burners on the EAF (Electrical Arch Furnace) and Ladle Furnace Revamping, the new RHF (Rotary Hearth Furnace) for reheating ingots and blooms in the forging mill, new lathes for turning bars and other technical improvements.
