UMCC JSC provides evidence refuting the conclusion of a new agreement with Chemours Company
Information on the conclusion of a new agreement between JSC “United Mining and Chemical Company” and the American company Chemours is not reliable. The agreement for the supply of products of JSC “UMCC” to the Chemours Company was signed in 2017 by previous management in the person of A. V. Hladushko and the terms of this agreement cannot be changed until the expiration date.
In March 2020, the new management signed an annex to the agreement, which provides for a quarter increase in prices for UMCC raw materials compared to the previous period.
The previous management of UMCC under the leadership of A. V. Hladushko who was the first deputy chairman of the UMCC board at that time, in 2017 signed a contract with an American company Chemours Company FC, LLC on the supply of materials with a deferred payment of 175 calendar day, in particular, ilmenite concentrates with TiO2 content from 63.5% to 66.2%.The agreement was concluded for the period from August 1, 2017 to July 31, 2020 and provides for severe penalties for non-compliance with its terms.After the expiration of the contract, it is automatically renewed, provided that the parties have not agreed otherwise.
On March 30, 2020 A. Makarov signed an additional agreement with Chemours Company only on increasing the price of UMCC raw materials by 24.65% compared to the previous period. Other terms of the contract, in particular the delay in payment for products in 175 calendar days cannot be legally changed, because they result in significant material and reputation losses for UMCC JSC.
“Today, the new leadership is actively negotiating with representatives of the Chemours Company on changes in the terms of payment under the contract, but we need to understand that this company is a global player and world leader in titanium technology, therefore, the process of agreeing on any technical solutions by their side takes a lot of time, and our negotiation process began only in May 2020”, explains Arthur Somov, Deputy Acting Chairman of the Management Board of UMCC JSC.
Reference
Chemours is full cycle international chemical company. The company, a world leader in titanium technologies, fluorine-containing products and chemical solutions, provides revolutionary products, experience in their application and chemical innovations to its customers from various industries. Until 2015, the chemical production of Chemours was carried out under the Dupont brand.In 2015, the billionth corporation Dupont announced the reformatting of its chemical production into a separate company Chemours.And a new company with over 200 years of experience in the chemical industry has entered the world market.
JSC “United Mining and Chemical Company” is a state enterprise, one of the largest titanium raw materials producers in the world. In 2018, company’s net profit totaled UAH 114.9 million, asset value was UAH 3.4 billion. The structure of UMCC includes Vilnohirsk Mining and Metallurgical Plant and Irshansk Mining and Processing Plant.
*All information concerning the activities of UMCC JSC temporarily will be published on the State Property Fund of Ukraine’s official website since access to the company’s website and its official Facebook page is blocked by former management.