"United Mining and Chemical Company" | News | UMCC marks a year of growth
UMCC marks a year of growth
14.03.2017The year 2016 was quite successful for PJSC United Mining and Chemical Company. It showed that the company is capable to operate and even show growth even in conditions of stiff competition
New management standards
Completion of privatization was probably the most significant event of last year. Thanks to it, UMCC that entered the market 'from scratch' (having only the company charter) within a short period of time turned into a public joint stock company with international management standards.
We are happy to inform that PJSC UMCC became the first successful example of corporatization since the beginning of the reform of state enterprises by the Ministry of Economic Development and Trade of Ukraine.
New collegial management bodies were formed upon completion of corporatization. This substantially improved transparency of the decisions made by the board of the company. Financial reporting is formed based on the international standards that are clear and well-understood by foreign companies and investors. This is a new stage of development for the company.
Value of company assets increased
Successful audit of the company and UMCC's assets appraisal by one of the top companies on the international market of consulting services showed that after Vilnohirsk MMP and Irshansk MPP were returned to state ownership, under management of UMCC their value nearly doubled – to UAH 2 bn.
It was in 2016 that the upgrade of the company's fixed assets began for the first time after the plants were returned to state ownership. UMCC allocated UAH 300 mn to the plants last year for these purposes. Specifically, VMMP received UAH 182 mn and IMPP – UAH 112 mn for upgrading their fixed assets.
Sales on the rise
In 2016, UMCC saw an increase in sales of its products, both for export and on the domestic market. In 2015, the company sold 422,041 t of products, while in 2016 the volumes grew to 532,335 t. The company proceeds from sales also increased from UAH 1.7 bn to UAH 2.9 bn (VAT excluded).
Tax payments doubled
Last year, the company increased its social liabilities to budgets of all levels. In 2016, it doubled payments of taxes and duties compared with 2015 from UAH 360.3 mn to UAH 779.3 mn.
IMPP became an exporter
Last year became a turning point for Irshansk MPP – it was re-oriented to exports. Its warehouses that were overloaded with products in 2014 and 2015 were fully emptied under contracts with foreign customers. Supplies in September hit a new historical high – Irshansk MPP shipped 30,000 t of ilmenite concentrate to foreign buyers. As a result of re-orientation, Irshansk plant stopped suffering losses. This was an important achievement of UMCC’s management.
VMMP increased output capacities
Vilnohirsk MMP commissioned the second line late August 2016 – Southern stretch of open-pit mine No. 7 was put into operation. The launch of rotary-stocker facility on this stretch allowed for increasing output capacities, also reducing its cost value and improving economic indicators of the plant. Production plan for concentrate output has been fulfilled.
Payroll reform completed
Last year, PJSC UMCC completes unpopular, but required payroll reform for its employees. Essentially, the approach to salary accounting was changed completed, specifically the share of basic salary rate in the payroll was increased. In the course of the reform, it increased from 49% to 55%.
Earlier, different extra premiums and bonuses, which depended on fulfillment of various indicators, accounted for nearly half of employees’ incomes. After the reform, basic salary rate became the key article of employees’ incomes, which is used as the basis for different extra payments to the salary, including bonuses.
This is a more transparent and socially protected article of employees’ incomes. Its increase guarantees general salary growth for each employee.
In 2016, the company spent over UAH 446,6 mn for the payroll and different bonuses to the employees, including UAH 254 mn for VMMP employees and UAH 112.1 mn for employees of IMPP.
UMCC’s obligations under the collective bargaining agreements were performed in full. For these articles of expenses, VMMP and IMPP together received UAH 136.3 mn.
“We achieved all ambitious objectives we set for 2016 – the company entered a new stage of development. International standards of management have been adopted. The annual output and sales increased. All social obligations to the budgets of the country and our own staff have been carried out in full,” comments Acting Chairman of the Board of PJSC UMCC Oleksandr Gladushko.