Privatization of the UMCC

by Meifan Honcharuk
Friday, October 29, 2021
Privatization of the UMCC

The auction for United mining and chemical company privatization was postponed again

Main about the UMCC

United Mining and Chemical Company is one of the world's largest producers of titanium raw materials, which has 4% of the world market. It is in the Top-10 in the world in terms of production, it’s a leader in the production of ilmenite, rutile and zircon concentrate in Ukraine and Europe.

Production and export

UMCC is one of the most interesting assets for investors, which is planned to be sold in the near future.

In 2020, the company even showed a record profit - more than $22.8 million.

The raw materials produced by the company are used for the production of titanium and its alloys, electrodes used in aircraft, ship, machine, auto and rocket industries.

The company holds about 2.3% of the world market for ilmenite, 6.2% of the world market for rutile and 1.4% of the market for zircon.

The largest consumer of the company's products is China 39%. 12% of production is supplied to Japan, 9% to Turkey, 8% to Mexico. Another 8% of production remains in Ukraine.

Privatization of the company

The government included UMCC in the list of enterprises subject to privatization in August 2016. $1.4 million is the starting price at the auction, determined and proposed by the advisor on the privatization of the joint-stock company. The price was formed based on the results of a comprehensive audit and a full assessment of the material and technical support of the enterprise.

The terms of privatization were postponed several times, the last one because of the coronavirus crisis and quarantine.

The Auction commission of the State property fund determined October 29 as the new date for the privatization auction of the United Mining and Chemical Company.

Initially, there were 29 potential investors, of which 16 were foreign, were interested in the asset and signed a confidentiality agreement. Most of them refused to participate in the auction due to a lack of time for due diligence. As a result, the fund received two applications for participation in the auction for the privatization of UMCC, one of which does not meet the requirements of the current legislation.

Since the auction cannot be carried out with only one participant, the State property fund will determine a new date for the auction. The auction can be scheduled approximately for December 2021.


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