UMG Investments expands portfolio with Ukrainian Mineral Fertilizers, a producer of nitrogen fertilizers

UMG Investments expands portfolio with Ukrainian Mineral Fertilizers, a producer of nitrogen fertilizers

13.10.2020
UMG INVESTMENTS

UMG Investments' portfolio includes businesses in three industries, namely mineral mining, by-product and production waste management, and industrial goods and services. The market value of assets managed by the company exceeds $500 million.

This week, Recycling Solutions, UMG's investee engaged in by-product and production waste management, has reported the launch of a mineral fertilizer facility in Kryvy Rih. The new enterprise will mainly produce the nitrogen-sulphur and compound fertilizers based on ammonium sulphate. It is capable of delivering up to 100,000 tonnes of ready-made products for the Ukrainian farmers every year.

"Ukrainian Mineral Fertilizers is a milestone project for us, as we have planned and built the complex from the ground up. The total investment exceeded $11 million. The company has created 72 jobs and already paid over UAH 9 million in taxes to the local and national budgets since its establishment," comments UMG Investments CEO Andrii Gorokhov. "This is the second project in our recycling portfolio this year. In March, we announced our deal with Effective Investments to acquire a minority stake in Feednova, a cutting-edge producer of high-protein feed additives for livestock and pets. The project is to be completed by the end of 2020. The enterprise is currently deploying the first-stage equipment on the construction site. We plan to further invest in recycling, so right now we are looking for partners and into the plastic recycling projects."

Over 6M 2020, Recycling Solutions sold more than 825,000 tonnes and 455,000 m3 of waste and by-products of the Ukrainian enterprises. The company earned UAH 343.1 million in gross revenue and invested UAH 12.2 million in new recycling plants.

"We explore and create opportunities for eco-friendly producers in key sectors of the Ukrainian economy that can add value and contribute to a better environment. The crystalline ammonium sulphate, which is a valuable by-product of steel industry that can be turned into fertilizers, has been exported for recycling to Turkey, Bulgaria or Serbia for many years, and then brought back to Ukraine to meet the agricultural demand. Recycling Solutions has launched the local production in Kryvy Rih to make ready-to-use pellets from the crystalline ammonium sulphate. The plant supports the circular economy by processing the recyclable leftover from the core industrial process, while also ensuring that less resources are used to move these products around the world," says Recycling Solutions CEO Dmytro Anufriyev.

Ukrainian Mineral Fertilizers uses the energy efficient and eco-friendly compacting technology to produce pelletised fertilizers. The facility operates the cutting-edge automated equipment manufactured by Hosokawa Alpine, a Japanese-German holding which has been working in this industry for over a century. The enterprise has a multi-level quality control system for both the raw materials and the end products.