Montenegro gets stake in Deripaska aluminium plant

26th October 2010, Comments 0 comments

Montenegro on Tuesday officially regained part ownership of aluminium smelter KAP in a deal with a company owned by Russian oligarch Oleg Deripaska to revitalise the plant.

The state now holds 29 percent of the Central European Aluminium Company (KAP), which is part of Deripaska's EN Plus Group.

Podgorica reached agreement in November on a plan to revive the stumbling giant, promising to subsidise its electricity costs until 2012.

Before before privatised in 2005, KAP was Montenegro's biggest exporter.

The company ran into trouble in 2008 owing to the global financial crisis and the fall of aluminium prices, halving annual production from 120,000 to 60,000 tonnes.

© 2010 AFP

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