"United Mining and Chemical Company" | News | PJSC UMCC: on the path from establishment to privatization
PJSC UMCC: on the path from establishment to privatization
14.08.2017It has been three years since United Mining and Chemical Plant emerged on the global titanium market. Over this period, the company transformed from a state enterprise into a public joint-stock company, form the board that approves decisions on all issues of operation of its subsidiaries – Vilnohirsk Mining and Metallurgical Plant and Irshansk Mining and Processing Plant. PJSC UMCC now has a reputation of a reliable partner.
Over the three years, the company has shown itself as a stably growing enterprise producing high quality goods that are in demand in Ukraine and abroad. We speak with PJSC UMCC Acting Chairman of the Board Oleksandr Hladushko about the stages of UMCC's development and about the hardships the company had to face.
- Our company was established in August 2014; its formative stage can be divided into several stages. The first one was the inventory of the state property that was transferred into management of the United Mining and Chemical Company after expiry of the lease agreement with the former lessee. After that was the second stage – the start of production activity at the subsidiaries. The next stage was emerging on and expanding our sales markets, followed by stabilization and development. These are conditional stages.
From the organization perspective inside the company – it is its transformation from a state enterprise into a public joint-stock company. We expect that the company's transparent and clear privatization will be the next stage.
From time to time, the company has to face various difficulties. The first and the most complicated one was an understanding on the part of the government bodies and local self-government bodies, and now existing partners, that UMCC came to manage the company not as the moment arose, but stably and target-oriented. The other problems we have faced include relatively unstable market, continuous changes in the tax laws and changes in the exchange rate difference. That is why we must get involved and adjust our liabilities and indicators on daily basis. Such is the reality.
- Which achievements the UMCC's team is most proud of?
- Firstly, we have changed the geography of our supplies; we expanded it. We moved away from narrow specialization – our products are supplied to many countries.
Secondly, we have ensured stable operation of the company and stable income growth, confirmed not only by the continuous inspections of the controlling bodies, but also by the results of an international audit conducted by one of the world's top international auditing firms.
Thirdly, our company has begun upgrading and purchasing new machinery and hardware this year, specifically open-pit mine vehicles and automobile transport, and renewing fixed assets of productions. Furthermore, we try to change and improve our technological chain. The improvement process is dynamic and it is what pushes us forward.
- What stages of development will the company go through in the near future?
- Since December 2016, the company transformed into a joint-stock company, which means our key management approaches have changed. At the moment, the Ministry of Economic Development and Trade, we are subordinated to, is actively forming and selecting members of the company's supervisory board. After that, the names of the candidates will be submitted to the Nomination Committee at the Cabinet of Ministers of Ukraine that will make the final choice. After that, the supervisory board will be formed.
We are confident that the government will approve the required decisions and the company will be transferred into direct management of the State Property Fund, which will start pre-privatization and privatization procedures.
- What possibilities open up before the company's employees due to its privatization?
- Privatization offers the company's employees to become shareholders of their company. That is why I appeal to the company's employees to actively get involved in the privatization process, to become shareholders of maybe small, but important stake.