Consortium led by Uzice-based company inks agreement to buy Novi Duvanski Kombinat

Representatives of the Montenegrin government and the City of Podgorica yesterday signed an agreement to sell a stake in Novi Duvanski Kombinat (New Tobacco Company - NDKP) to a consortium consisting of Uzice-based Primat, Partner Company from Danilovgrad, and Jaz Express from Budva, which should result in the restart of tobacco production.

The agreement was signed by Montenegrin Minister of Agriculture and Rural Development Petar Ivanovic, Podgorica Mayor Miomir Mugosa, and NDKP representative Jovan Asanin.

After signing the agreement on government premises, Ivanovic said that a common goal was to restart tobacco production in Montenegro, especially because of a long tradition and a large number of households engaged in that business as well as tobacco quality.

Last week the Council for Privatization and Capital Investment of Montenegro accepted an agreement on privatization or partial recapitalization of NDKP through the construction of a factory with the purchase price of EUR 7.1 million being 1.1 million euros bigger than the one initially offered.

According to the draft agreement, bidders are to promise to invest EUR 9.42 million in the construction of this factory within one year as well as to ensure its technical acceptance and collect an operating permit within maximum six months of the transfer and installation of equipment in the new location.