10 July 2018
Group DF to impeach a judgement of Zaporizhzhya region Economic Court on the termination of the contract of the State Property Fund with Tolexis Trading Limited on the establishment of ZTMC LLC
Group DF is surprised by the decision of Zaporizhzhya region Economic Court on the termination of the contract of the State Property Fund of Ukraine with Tolexis Trading Limited company about the establishment of Zaporizhzhya Titanium Magnesium Plant LLC. Group DF considers the decision groundless and politically motivated. The Group stands assured of its rightness and will challenge this decision in Ukrainian and international courts.
Tolexis Trading Limited company has channeled significant funds to pay off the debts of the company, because of which the plant was subjected to the complete suspension. In particular, only over 800 thousand dollars were allocated to the Pension Fund of Ukraine to cover the debts accumulated by ZTMC for the period when the plant was in state ownership.
After the new founder in the person of Tolexis Trading Limited came, ZTMC began to work with profit and the state began to receive dividends annually for the first time in the history of the plant. Despite the crisis in the country, the company launched a large-scale modernization program, passed a number of international certifications and began selling its products to the Chinese and European markets.
Since 2013, the plant has received net profit of UAH 480.4 million, and the state has been paid over UAH 135.6 million dividends. At the same time, the founder of ZTMC – Tolexis Trading Limited company decided not to pay dividends to itself, but channeled them to maintain the operating activity of the plant.
To date, ZTMC remains one of the largest taxpayers and employers of Zaporizhzhya, providing employment to over 3,5 thousand people. Since 2013, the company has paid UAH 843.6 million in taxes and other mandatory payments to budgets of different levels. The plant’s disruption due to ongoing litigation can lead to its complete halt, loss of jobs and disruption of international contracts.