United Mining and Chemical Company Complete Corporatization

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(Reuters) – New board of directors was appointed in the company, after it
transformed from state enterprise to public joint stock company
United Mining and Chemical Company has switched to international
management standards. On December 8, 2016, SE UMCC ceased to
exist. Instead Public Joint Stock Company United Mining and
Chemical Company was registered. PJSC UMCC issued nearly two
billion shares with nominal value of each share at UAH 1.
Also, the Ministry of Economic Development and Trade of Ukraine
approved the board of directors of PJSC UMCC. Ruslan Zhurylo was
appointed the chairman of the board, informed First Deputy
Chairman of the Board Oleksandr Gladushko.
“UMCC’s corporatization took place with record speed for a state
owned enterprise – 9 months. We have completed a huge work. We
would like to thank the Minister of Economic Development and
Trade Stepan Kubiv, the ministry and the State Property Fund for
supporting this transition. Several times we hit a dead-end in
this process, but we are happy that the process of
corporatization has been successfully completed,” said
Gladushko.
In the course of privatization, UMCC went through an audit by
one of the Top 4 auditing companies. Appraisers at the SPF of
Ukraine confirmed its asset valuation performed by a highly
respected international company as reported by British
publication Daily Mail and a number of specialized mass media.
Since Vilnohirsk Mining and Metallurgical Plant and Irshansk
Mining and Processing Plant were transferred into management of
UMCC, its value increased from UAH 900 mn to UAH 2 bn. In
January-September 2016, the company’s income tripled compared to
the same period of the previous year, while tax payments to
national and local budgets doubled. “At the moment, the company
looks quite attractive for a potential investors; it is also
among the Top 100 Most Profitable Companies of Ukraine,” stated
Gladushko.
The next step is the appointment of the supervisory board that
will consist of independent members, he said. This will improve
transparency of the company’s decisions. After that the company
will be transferred into management of the SPF for its further
privatization. As a reminder, in August 2016, the government
included UMCC on the list of companies subject to privatization
in 2017.
Gladushko believes that the company is facing an even bigger
challenge of preparing PJSC UMCC for privatization.
“UMCC must become an example of the first successful sale of
assets in Ukraine after the Revolution of Dignity. We have this
task and we know how to achieve it,” says Gladushko.
Next year, some key titanium assets of Ukraine will be put for
sale – SumyKhimProm and the state share in Zaporizhzhya Titanium
Magnesium Combine, where the government shares management with a
company owned by Dmytro Firtash. There will be real stiff
competition for these assets. “We are aware that world’s leading
titanium companies are closely following events at UMCC and its
transition to international management standards. We believe
that our company represents interest for investors in this
industry,” says Gladushko.
Over 9 months of 2016, UMCC produced 220,000 t of ilmenite,
around 40,000 t of rutile and over 20,000 t of zircon. The
company’s net revenue over this period reached nearly UAH 2 bn,
65% up from the last year’s indicator. UMCC’s profit over 9
months tripled to UAH 665 mn and tax payments doubled to UAH 477
mn. UMCC has been managing monopoly producers of ilmenite,
rutile and zircon in Ukraine – Vilnohirsk Mining and
Metallurgical Plant and Irshansk Mining and Processing Plant –
since August 2014.
Content provided by Bollwerk AG, via Reuters.

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A warsame

Published by A Warsame is senior Editor and managing Director of Mareeg Media Whatup :+447737886245
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