Privatization of Forge in Nikšić to fail – Russians ready to go

According to the source close to the Management, the representatives of Russian company "Midland", which bought Forge in Nikšić in summer 2004, are preparing to leave that factory.

Unofficially, even the ready-made goods from the stock are being resmelted, which points to the fact that the Russians want to reduce their debts to zero, in order to give up everything and leave. The source says that the old iron reserves are almost used up and that the ready-made products of Forge are stocked in the warehouses in Serbia. Bigger production in Forge is not possible without new investments, because the equipment is much too old. Of €11m, which "Midland" should invest, according to the contract, it invested only €8m, which were used for procurement of three old lathes, one of which was put into operation.