One of the largest producers of titanium raw materials in the world, combining the assets of the Ukrainian Volnogorsk and Irshansk ore mining and processing plants, again turned out to be of no interest to investors.
The State Property Fund of Ukraine received two applications for participation in the auction for the privatization of the United Mining and Chemical Company (OGCC), which was scheduled for December 20, 2021. At the same time, one of the applications did not meet the requirements of the current legislation.
Thus, due to the inconsistency with the requirements of the Law of Ukraine "On the Privatization of State and Communal Property" applications of one of the two applicants for participation in the auction, the auction cannot be held if there is only one participant, the State Property Fund reported. >
This was the third attempt by the state to sell the OGHK since August this year. The date of the previous privatization auction was set for October 29, 2021 with the same starting price of UAH 3.7 billion, the auction step - UAH 50 million.
The United Mining and Chemical Company was included in the list of companies to be privatized in 2017 in August 2016. Its terms were postponed several times, most recently due to the coronavirus crisis and quarantine.
OGHK sells products to more than 30 countries of the world and is one of the world's largest producers of titanium raw materials, occupying 4% of the world market. The main sales markets are the EU, China, Turkey, as well as the USA and African countries. The company extracts ore for the production of 20 thousand tons of titanium per year.
Among the financial conditions of the privatization tender, invest at least UAH 400 million in the modernization of the enterprise. Among other conditions: not to lay off workers for six months and provide social guarantees to workers, provide water to utilities-consumers.