Agreement on purchase of New Tobacco Plant Podgorica signed with BMJ Industries FZ-LLC of United Arab Emirates

Government of Montenegro and the Capital City of Podgorica (as sellers) and the BMJ Industries FZ-LLC, Ras -Al-Khaimah of the United Arab Emirates (as a purchaser) signed earlier today the agreements on recapitalisation and management of the New Tobacco Plant AD Podgorica.

According to the provisions of the recapitalisation agreement, the purchaser is obliged to invest EUR 20 million in building a new plant at a new location within12 months from the date of the entry into force of the agreement.

Following the signing of the recapitalisation and management agreements, the purchaser will take over the management of the factory and start activities towards repairing the existing machinery and equipment owned by the tobacco plant. This will create conditions for maintaining production at the present location in the period up to the new plant’s construction and start of production at a new location.

The purchaser also pledged committed to hiring at least 80 employees for the needs of the production at the current location. After moving to the new location, the investor is required to employ a minimum of 55 workers and additional 20 workers on an annual basis.

The project’s implementation is expected to provide Montenegro with a modern, high-tech tobacco plant. The investor also voiced interest in purchasing tobacco from local breeders. Establishing cooperation in this domain and the production capacity of the investor in other markets will be an opportunity for achieving even greater volume of purchase of domestic tobacco for the needs of other markets.