Podgorica Aluminium Plant

Infobox_Company| company_name = Kombinat Aluminijuma Podgorica
company_
company_type = Private
company_slogan =
foundation = 1969
location = Podgorica, Montenegro
key_people = Joe Kazadi (CEO)
num_employees = 2746
industry = Metallurgy| products = Aluminium
Aluminium alloys
Alumina
revenue =
homepage = http://www.kap.co.me|

Kombinat Aluminijuma Podgorica - KAP (MNSE: [http://www.montenegroberza.com/code/navigate.asp?Id=14&stockId=84 KAPG] ) is an aluminium processing plant, located 10km south of Podgorica, Montenegro.

Overview

Construction of KAP began in 1969, while production of aluminium began in 1971. The plant had its most difficult times during UN-imposed economic sanctions on FR Yugoslavia. During the sanctions, the production was reduced to 13% of capacity. In the period 1997-1999 KAP participated with 8,2-6,7 % in GDP of Montenegro, and 65-67 % in export for the same period. Most of the time, the KAP acquired necessary raw materials and spare parts from Glencore. The entire export was also conducted by "Glencore". The company was one of the few Montenegrin companies to fully recover after the breakup of Yugoslavia. On December 1 2005, KAP was privatized - 65,4394% shares were sold to Salomon Enterprises Limited, company based in Cyprus. However, SEL is fully owned by Rusal, and even the negotiations on the sale were conducted directly between Oleg Deripaska and then-Prime Minister of Montenegro, Milo Đukanović.

KAP is connected by railway with bauxite mines near Nikšić and the Port of Bar, and the Podgorica Airport is only a few kilometers away.

Controversy

Podgorica Aluminium Plant is subject to some controversy and criticism. Although it is the biggest single contributor to Montenegrin GDP and export, it is heavily criticized for polluting the fertile Zeta plain. KAP's toxic waste dump is notorious for its red dust, that is spread by the winds across the villages in Zeta.

KAP is also criticized for consuming most of the electrical power of Montenegro at low prices, while Montenegrin citizens face frequent shortages of electricity and pay for it at much higher prices.

Various political entities, most notably Movement for Changes, had pointed out that selling the KAP was a bad deal for the state of Montenegro. Arguments are that KAP was underpriced, and that the new owners have suspicious business practices, such as reporting constant annual loses, in order not to pay off dividends to the minority shareholders.

KAP's trade union has launched strikes frequently since privatization, demanding increases in wages. Strikes unfold in a tense atmosphere, as the KAP management hired a private security company whose armed personnel supervises the strikes.

External links

*sr icon en icon [http://www.kap.co.me Official Website]
*sr icon en icon [http://www.montenegroberza.com/code/navigate.asp?Id=14&stockId=84 Listing on the Montenegro Stock Exchange]