In the first half of 2022, Group DF’s titanium business enterprises mined 1.07 million m3 of ilmenite ore (-25% compared to the same period in 2021) and produced 62,000 t of ilmenite concentrate (-5.7% compared to the same period 2021). In 2022, the Czech Republic is the key destination market.
“At our mills, ore production has fallen by almost a quarter. This drop is logical and is due to two key factors. First, the war significantly affected the supply chains of finished products, making the supply complicated; part of the products is at the warehouse. The second factor is the drop in demand for titanium dioxide in global markets. At the beginning of 2022, the titanium dioxide market began to shrink significantly. Rising energy prices and inflation set the stage for the recession in many industries consuming titanium dioxide: paints and coatings, construction, paper and cosmetics. Only the beginning of the growth of the world’s largest economies can kickstart the industry and, accordingly, the growth of ore production around the world. We believe that such growth will occur immediately after the end of the war,” commented Oleg Arestarkhov, Head of Corporate Communications, Group DF.
Arestarkhov noted that titanium enterprises continue to pay wages; the average monthly salary reached UAH 15,500.
“Of course, we experience hard times, just like all businesses. In difficult times for the country, we must save jobs and tax deductions. We must do, and we are doing everything possible to help the army. The titanium industry must withstand this blow. Our mining and processing plants are city-forming enterprises on which the entire communities depend. We have preserved the production, saved jobs and continue to help residents of the cities where we operate, internally displaced persons, as well as the army and territorial defense forces,” emphasized Arestarkhov.
During the first half of this year, taxes and fees paid to the budgets of all levels increased by 57% and reached UAH 85.7 million.
The titanium business is one of the core businesses of Group DF, owned by Ukrainian entrepreneur Dmitry Firtash. He was rated among the TOP-10 entrepreneurs by Forbes Ukraine and Focus magazine in terms of assistance provided to Ukrainians during the war. The total amount of aid by all Group DF enterprises and their shareholder personally exceeded $9.7 million. The most extensive lines of assistance included the transfer of $3.5 M to the NBU special account, rehabilitation of infrastructure in the destroyed cities, provision of direct humanitarian aid, purchase of medicines and logistics support for 14 hospitals.