"United Mining and Chemical Company" | News | Privatization of PJSC UMCC begins
Privatization of PJSC UMCC begins
11.06.2018On June 8, the State Property Fund of Ukraine approved a decision on privatization of PJSC United Mining and Chemical Company. As early as next year, 100% shares of the company could find a new owner.
The Order No. 761 of the State Property Fund of June 8, 2018 became a historical milestone for the company and a starting point in its further development, according to Oleksandr Gladushko, Acting Chairman of the Board of PJSC UMCC.
“The decision of the State Property Fund factually gave a start to the sale of our company. The company is in need of substantial investment and upgrade of its assets, which we have already begun. We need new areas for development and new projects for processing titanium products. A private investor can manage these tasks much better,” believes Gladushko.
The company's acting CEO is confident that state ownership is the factor that is restraining the company's development, as the key role of state-owned enterprises is rather providing proceeds to the national budget. “The tax base is rather burdening for the state-owned companies, which substantially restrains them from allocating funds towards modernization of production, while the company itself has limited possibilities in regards to its own reconstruction,” says Gladushko.
He believes private ownership will help manage the company more effectively and speed up business processes. “The company will achieve a higher level of management and improve its competitive level in the global markets,” assures the head of PJSC UMCC.
The PJSC UMCC team has a difficult road ahead in order to prepare the company for open sale. Further actions involve the transfer of the company into the management of the State Property Fund, a new appraisal and audit, so that the privatization bodies can form a starting price of the enterprise and the terms of the tender. After that, they will need to set the date of the open tender, as that is how the sale of PJSC UMCC will be carried out.
“For us, this is a time of hard and painstaking work, but we are aiming for the final result – the sale of the company at a transparent tender, where an investor with serious intentions in regards to the company’s development will honestly win,” comments Gladushko.