The Parliamentary Commission Confirmed Need Of Involvement Of The Investor On ZTMC


ZAPOROZHYE, on June 13, 2013 – the Working group of Special control commission of the Verkhovna Rada of Ukraine concerning privatization validated decisions on involvement of the strategic investor on “The Zaporozhye Titanium-magnesium combine”. Members of the commission reported about it at exit meeting of the working group in Zaporozhye by results of visit on the enterprise.

Within visit on ZTMC, members of the commission – People's Deputies of Ukraine Edward Leonov, Pavel Rizanenko, Tatyana Slyuz, Vitaly Nemilostivy, and also the head of the secretariat of the commission Leonid Suknenko met an enterprise management, examined operating production and discussed prospects of development of combine.

Accompanied by the Director general of ZTMC Vladimir Sivak and other directors, People's Deputies visited production shops of combine and examined technological processes. Members of the commission noted high degree of moral and physical wear of the outdated equipment and noted need of the fastest modernization of combine. Also they discussed with management ZTMC an attraction question on combine of the strategic private investor and his obligation in the social sphere.

“To occupy and hold serious positions in the world market of the titan investments are necessary for the enterprise for carrying out modernization and modernization of all production. – the Director general of ZTMC Vladimir Sivak noted. – Without implementation of the program of reconstruction the enterprise will be deprived of opportunity to occupy a premium segment of the world titanic market in which both sales volumes much more, and the prices of realization are higher.

Deep processing of the titan will allow combine to let out production with higher additional cost that will give the chance to ZTMC to enter the markets of high technologies, such as aircraft industry. Vladimir Sivak is convinced that with arrival on combine of the strategic investor in the person of Group DF which has great investment opportunities and raw material resources, world consumers will begin to perceive ZTMC as stable and reliable supplier of titanic production.

“Group DF group of companies – that investor in whom “The Zaporozhye Titanium-magnesium combine” today is in great need. The owner of group Dmitry Firtash sets for himself the highest tasks – to remove Ukraine in the three of world leaders in the market of the metal titan”, – Vladimir Sivak added.

“Creation of the vertically integrated complex in titanic branch – strategically important task for Ukraine as for the state. To us important not only to attract the investor, but also to make so that branch I have further effective development”, – the vice-chairman of the commission People's Deputy Edward Leonov confirmed.

The chairman of special control commission of the Verkhovna Rada concerning privatization, the People's Deputy of Ukraine Pavel Rizanenko noted: “We were convinced that the enterprise needs investments about 500-700 mln. dollars of the USA. Unfortunately, at present, the state can't put such means. Therefore it is necessary to attract the strategic private investor who is capable to provide further effective development of production”.

Also Pavel Rizanenko noted that not less important problem is establishment for the enterprise of special tariffs for the electric power: “Production very power-intensive and that tariff which today ZTMC have, is twice higher, than at his foreign competitors. It does the Zaporozhye enterprise noncompetitive in the world market”.

Upon completion of visit on the enterprise members of the working group met the chairman of the Zaporozhye regional public administration Alexander Peklushenko and representatives of the Zaporozhye mass media. The head of the region thanked members of the commission for objectivity and noted that the main principle of work of the regional power is the creating favorable conditions for involvement of investors.

"Today all of us have to unite round things which will strengthen positions of Ukraine in the world, – the head of the region Alexander Peklushenko noted. – Today in the world "hunt" for investors, create conditions in order that they invested in economy development. Strategic investors, such as Dmitry Firtash, today go to us with social projects. They shouldn't be forced, after all they understand: if it isn't good to their workers, society, it won't be good also to their enterprises".

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Summing up work in Zaporozhye, People's Deputies confirmed need of involvement of the strategic investor on ZTMC for implementation of the program of technical modernization of the enterprise, maintenance of operating production, ensuring implementation of social obligations to labor collective. Besides, the deputy commission focused attention to need of consideration on the state level of a question of providing ZTMCwith a special tariff for the electric power.

The reference of ZTMC is the only thing in Ukraine and Europe the producer of the spongy titan. Today the enterprise lets out about 10 thousand tons of this production a year. High and constantly growing tariffs for the electric power, which share in cost of products of combine reaches 40%, don't give the chance to develop production and create unequal conditions for the competition to other global manufacturers.

As the investor of the enterprise, Group DF the group developed the program of development of the Ukrainian titanic industry, for which realization is ready to invest about 2,5 bln. dollars of the USA. Within this program the group intends to attract the necessary volumes of investment into the “Zaporozhye Titanium-magnesium combine” for the purpose of modernization and expansion of capacities for production of a titanic sponge and slag, and also to start new production of titanic ingots and alloys.

In particular, the investment Group DF program assumes stage-by-stage construction on ZTMC of new production of the 150 thousand tons per year titanic slag (the first stage – 50 thousand tons), and also new production of the 40 thousand tons per year high-quality titanic sponge (the first stage – 20 thousand tons).

Besides, Group DF is capable to provide ZTMC with own raw materials of a domestic production. On Volnogorsky the MMC is got ore (ilmenite and rutile) with the highest in Ukraine the maintenance of the titan that is preferable to production of the metal titan. For this reason, and also because of convenient logistics, Group DF will provide ZTMC with raw materials with Volnogorsky to MMC.

That isn't less important, Group DF is also ready to assume extensive social obligations: to keep workplaces and to provide high social standards for employees of the enterprise, and also to give other important support to the city of Zaporozhye, including development of the various city infrastructure necessary for improvement of life, both employees of the enterprise, and all residents.