The UMG Resource company, which specializes in industrial waste management, in 2016 increased its revenue from the sales of ash-slag materials by 47.5% YoY, to 149 million UAH.
Sales of ash-slag materials (fly ash, wet fly ash, slag, ash slag) increased by 38.7%, to 480,000 tons. Products were dispatched from the DTEK’s thermal power plants (TPPs). The main consumers of dry ash in 2016 were Ukrainian producers of cement and concrete. In addition, last year UMG Resource signed two export contracts for the sale of slag and wet ash in the EU and CIS countries respectively.
Sales of microspheres, the most expensive product of slags and ash, were 1600 tons, up by 30.8% YoY. This increase was due to the expansion of the customer base by cooperation with the refractory manufacturers. Key consumers of microspheres were also oil and gas companies that use these raw materials in grouting mixtures for oil and gas wells.
“In 2016, the business was influenced by several external factors. Ukrainian construction industry, where the main consumers of dry and wet ash are concentrated, was still recovering from the recession. Moreover, low oil prices affected the activity of the oil and gas sector, the key consumer of microspheres. At the same time, we managed to increase the sales of all ash and slag product types thanks to new export contracts. We also increased the number of the raw material shipments to our current customers that with our help started using ash and slag materials in formulae of their products. This year, we are planning to develop our business with the help of the resource base expansion through cooperation with foreign TPPs as well as through expanding the portfolio of our products,” says CEO of UMG Resource Andrey Garanin. (SCM/Ukrainian metal)