Number of employees about 4 thousand Parent organization SCM Holdings Founded 2006 | Website [2] Headquarters Kiev, Ukraine Net income 76 million USD (2015,) | |
 | ||
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 Divisions Vesco PJSC, Druzhkovka Ore Mining PJSC, Ogneupornerud PrJSC, Firma Donkerampromsyrovina LLC, Dokuchayevsk Flux and Dolomite Plant PrJSC | ||
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.
Contents
Shareholders and Management
100% of the company’s authorized capital is owned by System Capital Management. 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.
Key production indicators of UMG for 2015:
2015 key financial indicators of UMG assets:
Investments and assets:
Strategic targets for 5 years (till 2021):
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). 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).
The overall UMG`s portfolio includes 10 projects at different stages of implementation.
Clay extraction
This is one of UMG’s key business areas, represented by four companies:
UMG’s clay extraction facilities employ more than 1,500 people. Thanks to its product portfolio, which includes more than 60 grades of clay, 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.
Key indicators in this area:
Flux and dolomite production
This is presented by Ukraine’s two largest enterprises in this sector:
System Capital Management mediately holds a 50% stake in both enterprises, and UMG has been responsible for their operation since 2012. 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:
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.
Key indicators in this area:
Reprocessing and sale of rare and technical gases
UMG’s new business direction was launched in August 2015. 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:
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. Geography of grains exports: Italy, Lebanon, Greece, and Turkey.
UMG TRADING imports and distributes mineral fertilizers for Ukrainian agricultural producers. Main imported goods: ammonium sulphate, ammonium nitrate, urea, КАС, NPK, etc.
Key indicators in this area:
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:
Corporate volunteering Volunteer events are held together with residents of populated areas where UMG companies operate:
Corporate Volunteering projects:
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.
Every year, UMG arranges for trees to be planted on former production areas, in local parks and squares (Druzhkivka).
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.
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
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.
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.
Clay-extracting businesses that are part of UMG give aid to children refuges 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.