Montenegro Mulls Subsidies, Job Cuts to Save Aluminum Maker
Montenegro may try to save its sole aluminum maker Kombinat Aluminijuma Podgorica AD, or KAP, by cutting its workforce by 58 percent and subsidizing a third of the electricity costs of the unprofitable plant, the Balkan country’s Prime Minister Milo Djukanovic said.
The plan, which needs to be approved by parliament, would allow KAP to keep output at 50,000 tons a year, or less than half its capacity, Djukanovic said in a statement on the government’s website.
A court in the capital, Podgorica, started bankruptcy proceedings against KAP on July 8, after it failed to pay 61 million euros ($80 million) in electricity bills, while VTB Bank OJSC (VTBR) and OTP Bank Plc activated state guarantees on KAP loans.
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