The Government Approves Conditions for the Privatization of the UMCC Titanium. Ten Investors Bid for the Asset

Friday, June 18, 2021
2 MIN
The Government  Approves Conditions for the Privatization of the UMCC Titanium. Ten Investors Bid for the Asset

The government has approved the conditions for privatization of the United Mining and Chemical Company (UMCC), which will be the first in the list of assets offered for sale in the "Big privatization"

This was announced by prime minister Denys Shmygal on his Telegram channel.

JSC United mining and chemical company is one of the largest producers of titanium raw materials in the world. It manages Volnogorsk mining and metallurgical combine (Dnipro region) and Irshansk mining and processing combine (Zhytomyr region). The company sells its products to more than 30 countries. Its key markets are the EU, China, Turkey, the USA, and African countries. Its net profit for nine months of 2020 is $15,6 mln.

"The UMCC will be the first object of the Big privatization program. This is an important step towards reducing the share and role of the state in the economy, which the president of Ukraine promised in his election program. Transparent privatization is not only an opportunity to attract hundreds of millions of investments and increase production but also one of the most effective anti-corruption measures," wrote Denys Shmygal.

"Already more than 10 companies, including foreign companies, are interested in buying UMCC, so we expect the starting price to increase during the open auction," the prime minister concluded.

In April, the state property fund determined the starting price for the privatization of the UMCC, based on the reserves at Volnogorsk mining and metallurgical combine, which is owned by the state-owned company. The price was also influenced by the cost of titanium and the improvement of the financial indicators of the UMCC.

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