High energy price hurls Montenegro’s Uniprom to shut down KAP aluminium smelter, says chief executive
Veselin Pejovic, the CEO and owner of Uniprom stated that Montenegro's KAP aluminium smelter is projected to gradually shut down due to the hostile energy prices that will come into effect as of 1st January 2022.
On 8th December 2021, the CEO said: "Just at the moment when the price of aluminium is very favourable on the market, unfortunately, I must say that some people did everything for me to announce today that KAP is closing."
“The planned shutdown of the smelter will begin on 15th December”, Pejovic further added.
"We are concerned, in the first place, about the dismissal of over 500 workers and the termination of cooperation with more than 200 domestic companies.”
It was earlier reported that KAP is planning to cease production operations due to the inflated power costs and also the company will incur after the expiry of its power supply contract with state-controlled power utility Elektroprivreda Crne Gore (EPCG) on January 1.
So far, Uniprom KAP is paying a price of 45 euro per MWh, whereas the energy supplier initially offered a price of 120 euro per MWh, but now it is proposing an even much higher price of 127 euro per MWh, as commented by the CEO.
"As far as I am concerned, I am done with all the negotiations, and I have no reason to negotiate with anyone anymore.”
On 8th December 2021, EPCG urged Uniprom to return to the negotiation table in a separate statement.
The Montenegro energy supplier said: "EPCG cannot allow a loss of over 60 million euro to be generated by supplying electricity at the current price. In this regard, firmly committed to protecting the interests of the company, and thus the interest of the whole country, EPCG wants to preserve its financial stability with new contracts taking into account the rising electricity prices in the market.”
In 2013, KAP set foot in the bankruptcy proceedings and thereby in 2014, Montenegro’s government was forced to sell the aluminium smelter to Uniprom.
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