UMG Investments expands its mining portfolio via the acquisition of 67.86 % of the shares of JSC Chasiv Yar Refractory Plant (hereinafter – CYRP) by VESCO Limited.
The agreement will allow VESCO to expand the variety of clays in the portfolio and offer new clay grades to the market. Also, it will enable the enterprise to restore its competitive position.
The acquisition of CYRP is a logical extension of VESCO’s clay mining business. The convenient location and the VESCO team’s extensive experience in this area will allow the eneterprise to be effectively integrated into the business structure and bring all the best technological practices that are already working in our clay mining business.
The current state of CYRP and underinvestment of its production capacities did not allow it to be efficient. Due to the inefficiency of technological processes and asset management structure, the enterprise has lost its competitive positions over the years. However, UMG Investments is confident that VESCO’s successful asset development experience will realise its asset potential. In particular, business-oriented approach, detailed study of commercial opportunities in both core and non-core areas, and the reorganisation of processes toward maximum efficiency should make CYRP a prominent player in the mining market as soon as possible.
“The competence of UMG Investments and VESCO management teams is confirmed by years of effective management of core assets and the trust of partners in Ukraine and abroad. I am confident that our experience and production culture can turn CYRP into another success story of Ukrainian business,” said Andrii Horokhov, CEO of UMG Investments.
“Addition of Chasiv Yar Refractory Plant to UMG Investments mining portfolio was part of the vision for its further development. I would like to thank our talented Mining portfolio investment team, the plant’s founders and VESCO management team for their work on this complex project and belief in the result,” Nadiia Kaznacheieva, Investment Director at UMG Investments, commented on the deal.
In addition to modern business solutions, VESCO can offer the community a new approach to cooperation. After all, our business values are based on reliable long-term partnership with the local community.