"United Mining and Chemical Company" | News | Response to accusations of SE UMCC working with Ukrainian politicians

Response to accusations of SE UMCC working with Ukrainian politicians
Response to accusations of SE UMCC working with Ukrainian politicians

14.06.2016

In the end of May, a number of Ukrainian mass media published unconfirmed reports that our company is allegedly working with politically biased companies. In response, we would like to point to the following.


Bollwerk Finanzierungs-und Industriemanagement AG is a reliable and solvent partner of SE UMCC, as is the majority of other contractors the company is working with. At the moment, SE UMCC sells its products to over 80 buyers and Austrian company Bollwerk is one of them.
 
Cooperation with this company is beneficial, as this company is one of few on the international market that provides pre-payment for the products supplied by our company. This allows SE UMCC load its production capacities and pay salaries to nearly 6,000 employees on time.


At the moment, there is a stable practice on the international titanium market of payment deferral for supplied products ranging from 60 to 300 days upon the day of delivery. This is unacceptable for a state enterprise that has no possibility of attracting funding. In nearly two years of its operation, the company has not received any third-party loans, financial support or investments for replenishing its turnover capital.

Therefore, the company is forced to form its turnover capital and ensure operation of the large enterprise with a high number of employees exclusively through factual revenue receipts for the supplied products.

Inspections of the National Anti-Corruption Bureau of Ukraine and other law enforcement and controlling bodies, conducted at the company this and last year, have not proven affiliation with or influence of any politician in Ukraine on SE UMCC. As far as we know, the situation with Bollwerk Finanzierungs-und Industriemanagement AG is the same. For this reason, the company sees no reason to stop the mutually beneficial cooperation with the aforementioned company and other current contractors, until other proof is provided.
 
The information that periodically appears in mass media about Bollwerk and SE UMCC, we believe, is biased. Its objective is to discredit the company and remove it from the market. We believe, it is possible that our competitors could be behind these publications.