UMG Investments

UMG Investments is an investment company. It was founded in 2006 by the financial and industrial group "System Capital Management" as a holding company for asset management in the raw materials sector. Since its inception, it has expanded its range of activities and in 2016 changed its business model from a management company to an investment one.

Company operations

UMG Investments creates and develops businesses with high growth potential[1]. The company has portfolio companies in three industries:

Mining - VESCO Group and Novotroitskoye Rudoupravlenie.

by-product and waste management - Recycling Solutions.

industrial goods and services - INTEСH.

In 2019, the market value of assets managed by UMG Investments exceeded half a billion dollars[4].

In March 2020, the investment company announced an agreement with Effective Investments to acquire a minority stake in Feednova, a state-of-the-art high-protein feed additive manufacturing facility for farm and pet animals[5].

In October 2020, the "Ukrainian Mineral Fertilizers" complex for granulation of ammonium sulfate in the city of Krivoy Rog was launched, in which more than 11 million dollars were invested

Structure

UMG Investments currently has portfolio companies in three industries:

Mining (clay and flyscholomite)

By-products and waste management

Industrial goods and services.

Mining of minerals

The mining portfolio is represented by VESCO Group and Novotroitskoye Ore Division.

Clay mining

VESCO group of companies produces more than 60 sorts of commercial products. Productivity of the enterprises averages 3 mln. tons a year. Number of employees - more than 1500 people. In Ukraine VESCO clay-mining group of companies sells up to 10% of clay mined. The main part of production goes for export - to the manufacturers of ceramic and refractory products. The products are exported to more than 25 countries of the world. About 50% of them are EU countries. The company VESCO Limited received permission of the AMCU to acquire a stake in PJSC "Chasovoyarsk refractory plant".

Key indicators of the direction:

Production volume in 2019: ~2.6 million tons.

Sales volume in 2019: ~2.7 million tons.

Gross revenue in 2019: $138 million.

More than 11 quarries are being developed.

Flux-dolomite direction.

Presented - PJSC "Novotroitskoye Rudoupravlenie" [9]. The volume of production at the level of 4 million tons per year. The asset employs more than 1,100 people. The main consumers of products - Ukrainian enterprises of metallurgical, glass, cement, sugar, construction, chemical and other industries. Customers of the assets include Ilyich Iron and Steel Works, Azovstal, Zaporizhstal, Dneprovsky Iron and Steel Works, Enakievo Steel Works, ArcelorMittal Krivoy Rog, Donetskstal, Zaporozhsky Iron Ore Works, HeidelbergCement Ukraine and others.

Key indicators of the direction:

Production volume in 2019: 4.2 million tons[10].

1 quarry is being developed.

By-products and waste management

By-products and waste production management portfolio is represented by Recycling Solutions [11], which is a comprehensive operator of secondary resources management for the coal, coke and chemical, metallurgical, thermal and agricultural industries of Ukraine.

The main types of secondary resources with which the company works: ash and slag materials, metallurgical slag, rare and technical gases, ammonium sulfate, waste gases (mine methane, coke oven gas), animal byproducts.

Key line of business indicators for 2019:

The company's gross revenue was UAH 836 million, up 27% from 2018.

Invested in "green" business projects more than 179 million UAH.

Sales of man-made waste more than 2.2 million tons and 1.49 million cubic meters of by-products of domestic enterprises to 22 countries.

Number of employees more than 260 people.

The company's activity contributes to the reduction of technogenic impact on the environment. Each year Recycling Solutions reduces the volume of ash and slag dumps by 1.7 million cubic meters and saves up to 2.2 million tons/year of natural materials, replacing them with secondary resources.

Industrial goods and services

The portfolio of industrial goods and services is represented by INTECH, which combines companies engaged in the production of industrial goods and services and logistics. The company has strong expertise in sales and purchasing.

Areas of activity:

Industrial blasting.

Products for metallurgy.

Rail and port logistics.

The company, along with the assets under its management, generated $107 million in net income in 2019, up 39% from 2018. The number of employees (including assets) exceeded 700 people. Metallurgy shipments in 2019 were 43.7 thousand tons, an increase of 32% compared to 2018. The own fleet of cars is 227 units, the number of cars in rent - 600.

In 2019, the company carried out 43 thousand carloads and removed 2.8 million tons of cargo by its own and leased fleet of cars.

The volume of rock blasts, which PJSC "PPP Krivbassvzvzryoprom" performed under INTECH management in 2019, amounted to 49.5 million cubic meters.

INTECH CEO Sergey Melnichenko also heads NC Portinvest