In 2016, the flux and dolomite business of the UMG investment company, represented by the Novotroitskoye Ore Mining (NOM) and the Dokuchayevsk Flux and Dolomite Plant (DFDP), increased the sales of limestone products by 24.4% YOY, to 3.4 million tons.
Revenue without VAT amounted to 658 million UAH in 2016 compared to 503 million UAH in 2015. The amount of tax deductions transferred by the flux and dolomite business to budgets at different levels was 212 million UAH.
The majority of the deliveries were undertaken by the NOM. In 2016, the company sold 3.1 million tons in product volume. Ukrainian metallurgical plants, including Azovstal, Mariupol Ilyich and ArcelorMittal Kriviy Rih, are among NOM’s key customers. In addition, the company began the supply of limestone products to domestic cement, lime and glass manufacturers.
“Last year, the flux and dolomite business operated in conditions of constantly changing demand for our raw materials. Having increased the production by more than a third compared to 2014, at the beginning of 2016, the Novotroitskoye Ore Mining faced a situation where orders from Ukrainian metallurgists were shifting and the company was dependent on foreign market trends. This prompted us to move to a more flexible production system in relation to the demand for raw materials and, at the same time, look for customers in other sectors. As a result, this has enabled the company to end the year with an increase in production and revenue”, says Sergey Onishchenko, Member of the Management Board of DFDP and NOM.
The Dokuchayevsk Flux and Dolomite Plant, located within the uncontrolled territories of Donetsk region, halted its production in February 2015. The company started then to ship products that had been stored in its warehouses during prior periods.
Both companies have continued to operate as before according to Ukrainian legislation. On March 15, UMG lost its control over DFDP, while NOM continues to operate as normal. (SCM/Ukrainian metal)
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