SCM Group’s investment company umgi (formerly UMG Investments) has invested almost $22 mln in the development of the group’s businesses in 2022-2023.
According to Wednesday’s press release, last year umgi continued to implement its strategy of entering European markets by investing in the growth of its assets.
It is specified that umgi’s portfolio of industrial products has expanded due to the opening of a new powdered wire production plant of Inwire Group in Izmit (Turkey), which is one of the largest producers of components for the metallurgical industry in Ukraine. The construction and launch of the facility took two years. The products of the new production facility are oriented to cover the needs of the local market of Turkey and other Middle East countries and will contribute to strengthening the position of the manufacturer in the global market.
The total investment in the project amounted to $2.4 million from 2022. umgi has also strengthened its upstream portfolio by opening new production facilities of VESCO Group in Spain.
“umgi aims to build a portfolio with a market value of $1 billion by applying our expertise in global markets as well as engaging international partners in Ukraine’s recovery. Our investment team is constantly exploring new business opportunities and developing a network of partners in the Ukrainian, EU, Turkish and Indian markets. We aim to strengthen our portfolio with new industrial and healthcare businesses both in Ukraine and abroad, closing one or two agreements per year,” said Andriy Gorokhov, CEO of umgi.
The press release notes that umgi systematically supports the economy of Ukraine The total amount of taxes paid by businesses under the company’s management for 2023 amounted to more than 321 million UAH. Also, to support the AFU, TROs and communities in places where umgi businesses are present, 6 million UAH was allocated and goods and services for 2 million UAH were provided. Special equipment for the construction of fortifications, personal protective equipment, technical means, fuel and other necessary things are transferred to the defenders, assistance is provided in the construction of fortifications, provision of construction materials, etc.
The total umgi losses from the war for 2023, according to internal estimates, amount to about $20 million. In particular, the Chasovoyarsk refractory plant, which is part of VESCO Group, is in an active combat zone.
“Despite the significant losses suffered by our assets due to Russia’s full-scale invasion, Ukrainian business demonstrates resilience and is quickly adapting to new conditions. We see signs of renewal in the processing, construction and logistics industries. Feednova has fully met its budget despite martial law and border blockades. Moreover, a decision has been made to scale the business in Central Ukraine. Recycling Solutions completed the relocation of its microsphere recycling production to Western Ukraine and became one of the largest importers of granulated slag in the EU. Intech and PortInvest increased cargo volumes compared to 2022,” Gorokhov added.
In 2023, umgi opened an official representative office in Warsaw, Poland. The office is responsible for coordinating the company’s foreign investments and facilitates umgi’s assets in finding opportunities in the EU.
As reported, VESCO group, which combines the clay mining business of the investment company umgi, generated $75.2 million in gross revenue in 2023. In 2024, Vesco group plans to double its sales volume. At the same time, it is actively working on strategic business expansion in Europe, which it started working on back in 2019, as the main markets for VESCO clays are Italy, Spain, Ukraine, Turkey and Poland. In 2023, through VESCO CLAYS SPAIN, the group started extracting clay from the Encarnita deposit quarry in Spain.
In addition, in 2024, mining operations will be launched at VESCO Group enterprises in Ukraine. The planned volume is up to 500 thousand tons, which is more than six times less than in the pre-war period, but it is enough to restore the flexibility of the product portfolio and offer customers ceramic raw materials tailored to their individual needs, taking into account the stocks.
umgi is an investment company with a focus on developing businesses in the raw materials and processing sectors. It was founded in 2006 by SCM Group. Investment focus: mining; by-product and waste management; production of industrial goods and services. The total value of UMG portfolio companies is estimated at more than $500 mln.
Source: Interfax-Ukraine
