UMG Investments (Ukrainian company)
 | This article contains promotional content. (August 2016) |
| File:United Minerals Group logo.png | |
| Founded | 2006 |
|---|---|
| Headquarters | Ukraine, Kyiv |
Key people | Andrey Gorokhov (President) |
| Products | ball clay, limestone, ash and slag products, rare and technical gases, grains, oilseeds, mineral fertilizers |
| Services | commodities, industry, trading |
| $76 mln (2015,[1]) | |
Number of employees | about 4 thousand |
| Parent | System Capital Management |
| Divisions | Vesco PJSC, Druzhkovka Ore Mining PJSC, Ogneupornerud PrJSC, Firma Donkerampromsyrovina LLC, Dokuchayevsk Flux and Dolomite Plant PrJSC |
| Website | [2] |
UMG is a company focused on asset management in the commodity sector industrial production and sales. UMG was founded in 2006 by System Capital Management.
Shareholders and Management
100% of the company's authorized capital is owned by System Capital Management.[1] The company's president is Andrey Gorokhov.
Company’s operations
UMG operates in six key areas, such as ball clay, limestone, ash and slag products, rare and technical gases, grains, oilseeds, mineral fertilizers. Geographically, the company sells its products to over 30 countries worldwide.[2]
Key production indicators of UMG for 2015:[3]
- Clay production volume — 2.4 million tonnes
- Limestone production volume — 2.7 million tonnes
- Reprocessing and sale of TPP by-products — 348,300 tonnes
- Sales of agricultural products — 77,600 tonnes
- Sales of mineral fertilizers — 16,000 tonnes
- Selection and reprocessing of rare and technical gases — 20,200 cubic meters
2015 key financial indicators of UMG assets:
- Revenue — 163 million dollars[4]
- Net profit — 76 million dollars[3]
- Investment — 9 million dollars
- Taxes paid — 29 million dollars
Investments and assets:
- Investments totaled 82 million dollars in 2007–2015
Strategic targets for 5 years (till 2021):[3]
- Annual clay production — 3 million tonnes (increased of 600,000 tonnes by 2015)
- Annual limestone and dolomite production — 4 million tonnes (increased of 1.3 million tonnes by 2015)
- Annual reprocessing and sales of TPP by-products — 1 million tonnes (increased of 640,000 tonnes by 2015)
- Selection and reprocessing of rare and technical gases — 37,400 cubic meters and 13,800 cubic meters respectively, by 2018
Structure
Clay extracting facilities are located in Donetsk and Luhansk Oblasts of Ukraine; flux and dolomite facilities — in the towns of Dokuchayevsk and Novotroitskoye, Donetsk Oblast. Other business areas geographically cover the entire Ukraine.
The Company operates the New Business Incubator — a structural unit that analyses new business ideas, selects the most promising ones, and develops them to the stage of an operating businesses. The Incubator helped to open commercial directions such as the business for the reprocessing and sale of ash and slag materials (ASM) from coal-fired TPP in 2013, a project for the reprocessing and sale of rare and technical gases from Metinvest Holding enterprises, and a pilot project for trading in grains and mineral fertilizers (both in 2015).[4] The Incubator helped to open commercial directions such as the business for the reprocessing and sale of ash and slag materials (ASM) from coal-fired TPP in 2013, a project for the reprocessing and sale of rare and technical gases from Metinvest Holding enterprises, and a pilot project for trading in grains and mineral fertilizers (both in 2015).[4]
The overall UMG's portfolio includes 10 projects at different stages of implementation.[2]
Clay extraction
This is one of UMG's key business areas, represented by four companies:
- Vesco PJSC
- Druzhkovka Ore Mining PJSC
- Ogneupornerud PrJSC
- Firma Donkerampromsyrovina LLC
UMG's clay extraction facilities employ more than 1,500 people. Thanks to its product portfolio, which includes more than 60 grades of clay,[5] UMG accounts for about 10% in the global clay market. Moreover, 90% of UMG products are exported, going to 25 countries worldwide. About 50% of exported products are delivered to EU countries.[4]
Key indicators in this area:
- 2015 production volume: 2.4 million tonnes (-12% compared with 2014)[4]
- 2015 sales: 118 million dollars (-14.0% compared with 2014)
- Available reserves of deposits: 300 million tonnes[6]
- Production capacity of facilities: 3 million tonnes of clay annually[6]
- 11 quarries are operated
Flux and dolomite production
This is presented by Ukraine's two largest enterprises in this sector:
- Dokuchayevsk Flux and Dolomite Plant PrJSC
- Novotroitske Ore Management Facility Private JSC
System Capital Management mediately holds a 50% stake in both enterprises, and UMG has been responsible for their operation since 2012.[7] Ukrainian enterprises in the metal, glass, cement, sugar, construction, chemical and other sectors are among key consumers of its products, UMG clients include Ilyich Iron & Steel Works of Mariupol, Azovstal, Zaporizhstal, Dzerzhynsky DMC, Yenakiyeve Steel Works, ArcelorMittal Kryvyi Rih, Donetskstal, Zaporizhia Iron Ore Plant, Heidelberg Cement Ukraine and others.
Key indicators in this area:
- 2015 production volume: 2.4 million tonnes (-52.6% compared with 2014)[4]
- 2015 sales (50%): 12 million tonnes (-59.4% compared with 2014)
- Available reserves of deposits: 417 million tonnes annually
- 5 quarries are operated
Reprocessing and sale of TPP by-products
UMG TRADING is Ukraine's only integrated disposer of TPP waste. This business was launched in 2013. In this area UMG specializes in the processing, production and sale of microspheres, dry ash, an ash and slag mix, granulated slag and other ash and slag materials (ASM) for ceramic, construction, cement, chemical, and oil and gas sectors.
In Ukraine the construction sector is the main consumer of dry ash, which is included in cement, concrete, autoclaved aerated concrete, and other construction mixes.
Microspheres are the most fast-moving ASM product. In 2014, a modern factory for microsphere production and processing was launched in Druzhkivka, with investments totaling 1.2 million dollars.
UMG TRADING provides end-to-end ASM sales. Ash and slag materials are actively used globally as high-quality recyclable material for the construction sector, for example, during road construction.
In Ukraine the construction sector is the main consumer of dry ash, which is included in cement, concrete, autoclaved aerated concrete, and other construction mixes.
Apart from Ukraine, ASM, including microspheres, are delivered to Belarus, the Netherlands, the USA, Argentina, Germany, Portugal, Spain, the Czech Republic, Slovenia, Azerbaijan and the Middle East.[8]
Key indicators in this area:
- ASM volumes: 348,300 tonnes (+ 39% compared with DTEK Company figures in 2014)[3]
- Revenue from sales in 2015: 5 million dollars[9]
- ASM exports: 31,500 tonnes[9]
Reprocessing and sale of rare and technical gases
UMG's new business direction was launched in August 2015.[10] Products include rare (neon, krypton, xenon, helium) and technical (argon, nitrogen, oxygen) gases. Resource base: Metinvest Holding enterprises, Chinese metal companies. Key consumers: manufacturers of electronics, laser, lighting equipment, medical and space sectors etc.
Key indicators in this area:
- Potential volumes: about 61,000 cubic meters annually
- 2015 volumes: 20,200 cubic meters annually[3]
- 2015 sales: 5 million dollars
Trading in mineral fertilizers and agricultural products
This business is represented by UMG TRADING and UMG AGRO.
UMG AGRO is a full-cycle exporter of grains and oil crops — from buying the product from agricultural producers and selling it in end-consumer's global markets.[11] Geography of grains exports: Italy, Lebanon, Greece, and Turkey.
UMG TRADING imports and distributes mineral fertilizers for Ukrainian agricultural producers.[12] Main imported goods: ammonium sulphate, ammonium nitrate, urea, КАС, NPK, etc.
Key indicators in this area:
- 2015 grains volume: 77,600 tonnes[3]
- 2015 distribution of mineral fertilizers: 18,200 tonnes[13]
- Grains, 2015 turnover: 14 million dollars
- Mineral fertilizers, 2015 turnover: 5 million dollars[14]
Corporate social responsibility (CSR)
In terms of CSR UMG is implementing a Social Partnership Program together with local communities, city councils and state authorities/non-governmental organizations in populated areas where UMG businesses operate.
Projects implemented under the Social Partnership Program:
- In 2012 UMG built a children's playground and a rendezvous place for couples on Kosmonavtiv Lane in Druzhkovka.[15]
- In 2013 UMG made an investment into a multipurpose pitch for basketball, volleyball and mini-football and open-air training grounds at Secondary School No. 6 (Druzhkovka).[15]
- In 2014 the Company installed outdoor sports and entertainment equipment at three kindergartens in Druzhkovka and purchased fitness equipment for gyms.[16] A sports ground for children aged 1 to 6 years was built in the town of Rayskoye.
- In 2015 UMG established a skate park in Zhovtneva Square (Druzhkovka).[17]
Corporate volunteering Volunteer events are held together with residents of populated areas where UMG companies operate:
- Green campaigns focused on rubbish removal and planting of vegetation
- Preparation of kindergartens for summertime recreational activities
- Promotion of a healthy lifestyle and sports
- Environmental education
Corporate Volunteering projects:
- Clean City/Town[18]
As part of the efforts to support the nationwide clean-up volunteer campaign (subbotnik), UMG's plants participate in the Clean City/Town/Village Project, for rubbish removal and beatification of communities where they operate.
- Let Us Make Our Region Green; Green City
Every year, UMG arranges for trees to be planted on former production areas, in local parks and squares (Druzhkivka).[19]
- Children and Adults in Support of a Healthy Lifestyle
To promote a healthy lifestyle and sports, every May and September, the Company organizes mini-football, volleyball and table tennis competitions involving the team of employees of UMG clay-extracting plants and senior pupils from local secondary schools. Winning schools receive a certificate for improving their material and technical base.
- Children Are the Future[20]
Every year, the employees of UMG's management company and clay-extracting assets participate in preparing local pre-school educational institutions for the spring and summer recreational season. They are busy painting outdoor athletic and play equipment, awarding monetary certificates for improving the kindergartens’ material and technical base. Educational Projects[20]
Starting in 2015 UMG employees have been telling senior pupils about engineering and technical specialties, and blue-collar occupations within the Miners of the Future project. During meetings and tours of plants, pupils gain an idea of what it takes to prepare for an occupation and be able to work at companies in their home town. Master classes are delivered to children in kindergartens, for example, they are told about clay, and how it is extracted and used.[21]
UMG participates in the international project called STEM: Good Jobs Now and for the Future, in order to improve the awareness of senior pupils about professions in Science, Technology, Engineering and Math. UMG specialists use master classes and practical workshops to tell pupils about professional skills and education that is required for a successful career in the commodities business.[22]
- Aid to ATO refugees
Clay-extracting businesses that are part of UMG give aid to children refugees in Druzhkivka, for example, by gathering and donating school tools. Besides this, a residential section in a dormitory has been renovated for refugees from Donetsk and Luhansk Oblasts.[23]
See also
References
- ^ "www.scm.com.ua". UMG объединяет активы группы СКМ в сырьевом направлении. Archived from the original on 2016-09-20. Retrieved 2016-08-06.
- ^ a b "Холдинг UMG намерен до 2021г привлечь более $100 млн зарубежных инвестиций в новые направления бизнеса". Интерфакс-Украина. Retrieved 2016-04-17.
- ^ a b c d e f "Холдинг UMG в 2015г сократил EBITDA на 27%, выручку – на 6%, нарастил инвестиции более чем на четверть". Интерфакс-Украина. Retrieved 2016-04-17.
- ^ a b c d e f ""За пять лет мы намерены увеличить оборот в два раза и превысить показатель в $300 млн"". БИЗНЕС. Archived from the original on 2016-04-17. Retrieved 2016-06-22.
- ^ "Добыча глины | UMG Украина". www.ru.umgukraine.com. Archived from the original on 2016-08-13. Retrieved 2016-06-22.
- ^ a b "Холдинг United Minerals Group (UMG)". www.ukrrudprom.com. Retrieved 2016-06-22.
- ^ "Новости ГМК - УкрМет". ptcor.net. Retrieved 2016-06-22.
- ^ "Микросфера | UMG Украина". www.ru.umgukraine.com. Archived from the original on 2016-05-30. Retrieved 2016-06-22.
- ^ a b "UMG Ахметова почала експорт українського шлаку в ЄС". Економічна правда. Retrieved 2016-06-22.
- ^ "За пять лет мы намерены увеличить оборот в два раза и превысить показатель в $300 млн". Бизнес. Archived from the original on 2016-04-17.
- ^ "СКМ - Бизнес СКМ - Список основных активов". www.scm.com.ua. Retrieved 2016-04-17.
- ^ "СКМ - Бизнес СКМ - Список основных активов". www.scm.com.ua. Retrieved 2016-04-17.
- ^ ""UMG Трейдинг" планирует нарастить объемы дистрибуции минудобрениями в 5 раз". envim.in.ua. Retrieved 2016-06-22.
- ^ ""UMG Трейдинг" планирует нарастить объемы дистрибуции минудобрениями в 5 раз — УкрАгроКонсалт". www.ukragroconsult.com. Retrieved 2016-06-22.
- ^ a b ""Должны смеяться дети и в мирном мире жить!"". dr.dn.ua. 2014-08-30. Archived from the original on 2014-12-25. Retrieved 2016-06-22.
- ^ "«ДР» № 35 от 28 августа 2014 года". dr.dn.ua. 2014-08-05. Archived from the original on 2016-08-14. Retrieved 2016-06-22.
- ^ "Ежегодный Дружковский праздник". dr.dn.ua. 2015-09-20. Archived from the original on 2016-08-14. Retrieved 2016-06-22.
- ^ "Украинцы провели генеральную уборку". www.segodnya.ua. Retrieved 2016-06-22.
- ^ "Дружковка. Волонтеры United Minerals Group провели акцию "Зеленый город"". krm.napulse.tv. Archived from the original on 2016-08-14. Retrieved 2016-06-22.
- ^ a b "UMG дарит частичку своего сердца". zi.dn.ua. Retrieved 2016-06-22.
- ^ "Компания UMG — дружковским дошколятам". dr.dn.ua. 2014-12-30. Archived from the original on 2016-08-14. Retrieved 2016-06-22.
- ^ "UMG Holding привез "профессии будущего" в школы г. Дружковка". www.sustainability.scm.com.ua. Retrieved 2016-06-22.
- ^ "У межах роботи Гуманітарного штабу Ріната Ахметова відремонтовано житловий блок для переселенців із зони АТО". www.fdu.org.ua. Retrieved 2016-06-22.