Business news from Ukraine

Valki-Ilmenite and Mezhdurechensk Mining and Concentration Complexes, part of the titanium business of Group DF, in January-March this year, according to preliminary data, reduced the production of ilmenite concentrate (titanium dioxide concentrate) by 11.9% in compared to the same period last year, to 31,000 tonnes from 35,200 tonnes.
According to the group’s press release on Monday, Group DF analysts expect a recovery in demand for titanium products in global markets only from mid-2022, so complexes will increase production according to demand.
Chairman of the boards of Valki-Ilmenite LLC and Mezhdurechensk LLC Serhiy Kosenko, who is cited by the press service, said that the production plans are fully fulfilled and all deliveries of products are carried out in accordance with the concluded contracts.
“The reduction in production was due to a change in the market situation – a global decrease in demand for titanium products. This was not a reason to curtail the large-scale investment program launched at the plants. In 2021, the shareholder has already invested more than UAH 31 million in two mining and processing complexes. We continue the planned renewal of fixed assets: new mining and transport equipment is being purchased, modernization, repairs and renewals of old assets are being carried out. Our strategy is aimed at increasing production efficiency, improving cost indicators and increasing the margin of the business as a whole,” the press service said, citing Kosenko.
Kosenko noted that analysts of the company expect a recovery in demand for titanium products at pre-crisis levels only from mid-2022.
“This is an optimistic scenario. Now, when the global market is undergoing a significant shrinkage, our task is to prepare for future growth. Therefore, we are actively updating our equipment and began conducting mining preparatory work to move to new production areas,” the top manager said.
The press release also said that as part of Group DF’s titanium business development strategy, the shareholder continues to invest in the construction of two more new plants: Stremyhorod (Zhytomyr region) and Motronivsky (Dnipropetrovsk region) Mining and Concentration Complexes.
About $150 million have already been invested in the Motronivsky plant project. The planned design capacity of the enterprise is estimated at 120,000 tonnes of ilmenite concentrate, 14,000 tonnes of zirconium and 20,000 tonnes of rutile concentrate.
Investments in the Stremyhorod plant project exceeded UAH 100 million. At the moment, design and survey work is being carried out. After the implementation of the first phase, the design capacity of the plant will be about 500,000 tonnes annually of ilmenite concentrate and 150,000-200,000 tonnes annually of apatite concentrate.
Group DF combines the assets of Dmytro Firtash. The core areas of the group are fertilizer and titanium businesses, gas distribution and banking.