“Mizhrichenskiy MCC, the winner of Prozorro auction, [1] is a member of Group DF titanium business. The Group’s titanium business is a systemic business with a clearly defined strategy for the next 10 years. The purchase of a license for the geological survey of Selishchanska area fits perfectly into our plans and business strategy. It is aimed at creating new industries in Zhytomyr and Dnipropetrovsk regions.
We have a clear understanding of what to do with this area and we are able to implement a new investment project in the future. Our shareholder believes in Ukraine and continues to invest in the country. Within the Group, it will create synergies with existing MCCs in Zhytomyr region. We will benefit from implementation of this investment project, given the existing infrastructure and, most importantly, the already built and operating beneficiating plant.
In this case, we can talk about one of the largest investment projects in the region in the future. The region will for sure benefit from implementation of a large-scale investment project, because it will definitely lead to an increase in industrial production in the region, tax revenues and, most importantly, it will create new jobs.
Another reason why we buy this license is that we believe that demand for titanium products will recover to pre-crisis levels starting from mid-2022. Now that the global market is sagging significantly, the challenge for businesses is to prepare for future growth. Buying the rights to geological survey in this area, we are preparing ourselves for the future. Coupled with the ongoing modernization program at our existing MCCs, the purchase of the license is extremely important for the Group’s entire business”, – Serhii Kosenko, manager of Group DF titanium business (Chairman of the Board, Valki-Ilmenit LLC and “Mizhrichenskiy MCC” LLC).
