The Board of Directors of Montenegro’s power supplier, EPCG, officially notified 8B Capital SA on 23 July 2025 of the unilateral termination of the lease agreement for the production capacities of Niksic Steelworks, citing repeated breaches of contractual obligations. According to EPCG, the decision was made to protect both the company’s interests and the broader economic and energy stability, due to the lessee’s failure to regularly pay rent and meet obligations related to the transfer of employees.
Despite EPCG’s multiple attempts to resolve the issues through dialogue, the agreed conditions were not met, leading to the termination process. EPCG now plans to protect its contractual and property rights while working to find a sustainable and strategically sound model to revitalise production at key facilities, especially the steel mill and forging plant. Emphasising Steelworks’ importance to both the local community and Montenegro’s economy, EPCG expressed its commitment to carefully planned steps toward restarting production.
In parallel, EPCG and its subsidiaries EPCG-Solar-Gradnja and EPCG Steelworks Niksic continue to achieve strong results in renewable energy development, particularly in solar energy, reflecting their strategic focus on modernising and diversifying Montenegro’s energy sector.
The lease required 8B Capital to pay €31,000 monthly as of October and to hire 150 employees within six months, yet none were officially taken on. Instead, EPCG covered salaries, with workers assigned to solar plant and concrete block construction. The 50-year lease, signed in July last year, also committed the Swiss company to invest €7.75m within the first year and €36.85m over five years—none of which materialised.
