Production and reprocessing of raw materials, trading

UMG
Андрей Горохов, UMG

Andrey Gorokhov, President of UMG

«UMG is constantly looking for new opportunities to develop traditional business areas and launch new promising projects.  

Our balanced strategy and professional team enable our company to provide our partners in 30 different countries with high-quality and eco-friendly raw materials. 

In the upcoming five years, our company intends to not only enhance the efficiency of existing businesses, but also launch at least five new ones. We are confident that the smooth performance of the company as a whole will help us to carry through our ambitions plans to the end.» 

UMG is a company operating in the raw materials and trading industry. It was established in 2006 by SCM Group. The company's primary activities are clay extraction, limestone and dolomite extraction, reprocessing and sales of TPP by-products, rare and technical gases and trading.  

The company employs around four thousand people, and its products are supplied to 30 different countries. 

UMG is a global leader in the extraction of white plastic clays, with a market share of around 10%. 

The company operates Ukraine's largest limestone and dolomite extraction facilities to deliver high-quality limestone to the metallurgical industry. 

It is also the only Ukrainian operator for the sale and reprocessing of ash and slag materials from TPPs. 

Key 2015 indicators:

  • In-place reserves of raw materials – 821 million tons 
  • Clay production volume – 2.4 million tons
  • Limestone production volume – 2.7 million tons
  • Reprocessing and sale of TPP by-products – 348.3 thousand tons
  • Selection and reprocessing of rare and technical gases – 20.2 thousand cubic meters
  • Revenue – 164 million dollars
  • Taxes paid – 27 million dollars
CLAY EXTRACTION
UMG, Clay

This business line has four main assets:

  • Vesco
  • Druzhkovka Ore Mining
  • Ogneupornerud
  • Donkerampromsirye

These companies are located in Donetsk Oblast and have more than 1,600 people on staff.

The product portfolio includes more than 60 sorts of clay, which allows us to customize product formulas depending on client demand.

Around 90% of UMG sales are export deliveries to 25 different countries. Around 50% of sales are made in EU countries. Key consumers: producers of ceramic tile and ceramic granite. In 2016 the holding intends to continue ramping up sales in the markets of Western Europe, Asia and Latin America.

LIMESTONE AND DOLOMITE EXTRACTION
UMG, limestone and dolomites

This line of business is handled by two companies:

  • Dokuchayevsk Flux and Dolomite Plant
  • Novotroitskoye Ore Mining

SCM owns 50% of the shares of assets that have been operated by UMG since 2012. Key consumers: Ukrainian metal, glass, cement and other industries.

ASH AND SLAG PRODUCTS
UMG, ash and slag products

Reprocessing and sales of TPP by-products

UMG is Ukraine's only comprehensive operator of ash and slag products (ash and slag materials, by-products of coal thermal generation). The business was launched in 2013. Raw materials base – 10 TPPs of DTEK and one TPP of the Republic of Kazakhstan. Key consumers of ash and slag products: ceramic, building, chemical and oil-and-gas industries.

RARE AND TECHNICAL GASES
UMG, rare and technical gases

Reprocessing and sale of rare and technical gases

This business line was launched in August 2015. Resource base: Metinvest Holding's enterprises, metal manufacturers of China. Key consumers: producers of electronics, lasers, lighting equipment, as well as medical and cosmetic industry companies, etc.