The “UMCC” resumed operation of the Vilnohirsk Combine

JSC “United Mining and Chemical Company”(UMCC) resumed operations of the Vilnohirsk Mining and Metallurgical Combine.Active work on concluding new contracts with counterparties provided an opportunity to resume the supply of products from Vilnohirsk MMC.

“Now we already have a sufficient pool of reliable customers with whom we are beginning to cooperate. Accordingly, it gives us the opportunity to resume production even earlier than was planned”- said Artur Somov, Deputy Acting Head of the Board of JSC “UMCC”.

As previously reported Peter Davis, Acting Head of the Management Board, on      May 29 to ensure the interests of the state and cleaning of corruption schemes, he signed a decree which is banning all shipment operations of raw materials of the UMCC, as shipment of products of combines was according to contracts, which were signed by former management at below market prices, moreover, there was a risk of non-payment on completed deliveries.

During the period of production shutdown, UMCC's management achieved to find new reliable counterparties, cooperation with which will occur on favorable terms in the range of average and above average market prices, which will allow to capitalize the company on the eve of privatization and provide an opportunity to increase salaries of branch employees gradually.

Now “UMCC” works with counterparties directly without involving intermediaries under the changed mandatory conditions: the signing of contracts will take place with primary pre-payment and without the possibility of deferred payments; work will be carried out exceptionally with verified counterparties who haven’t been involved in any corruption schemes directly or indirectly; establish ban for all counterparties in privileged status or the right of exclusivity.

Reference

JSC “United Mining and Chemical Company” is a state-owned company, one of the world's biggest producers of titanium raw materials. In 2018, the company's net profit amounted to 114.9 million UAH, the value of assets - 3.4 billion UAH. The structure of "UMCC" includes Vilnohirsk Mining and Metallurgical Combine and Irshansk Mining and Concentration Combine.

* All information on the UMCC activities will be temporarily published on the official website of the State Property Fund of Ukraine, as access to the company's website and the official Facebook page of the UMCC has been blocked by the former management.