Sales of ash-slag materials (fly ash, wet fly ash, slag, ash slag) increased by 38.7% year-over-year which is 480,000 tonnes. Products were dispatched from the DTEK’s thermal power plants (TPPs). The main consumers of dry ash in 2016 were Ukrainian producers of cement and concrete. In addition, last year UMG Resource signed two export contracts for the sale of slag and wet ash in the EU and CIS countries respectively.
Sales of microspheres, the most expensive product of slags and ash, were 1600 tonnes which is 30.8% more than in 2015. This increase was due to the expansion of the customer base by cooperation with the refractory manufacturers. Key consumers of microspheres were also oil and gas companies that use these raw materials in grouting mixtures for oil and gas wells.
“In 2016, the business was influenced by several external factors. Ukrainian construction industry, where the main consumers of dry and wet ash are concentrated, was still recovering from the recession. Moreover, low oil prices affected the activity of the oil and gas sector that is a key consumer of microspheres. At the same time, we managed to increase the sales of all ash and slag products types thanks to new export contracts. We also increased the number of the raw material shipments to our current customers that with our help started to use ash and slag materials in formulae of their products. This year, we are planning to develop our business with the help of the resource base expansion through cooperation with foreign TPPs as well as through expanding the portfolio of our products,” says CEO of UMG Resource Andrey Garanin.
UMG Resource is the only integrated disposer of TPP waste in Ukraine. The company was founded by the UMG Investment Company in 2013. It specialises in reprocessing and selling microspheres, dry ash, ash slag mixture, granulated slag and other ash-slag materials for ceramic, construction, cement, chemical and oil and gas industries.
UMG INVESTMENTS is an investment company focusing on the business development and processing of raw materials. It was founded in 2006 by the SCM Group. The company comprises five businesses involved in the extraction of clay, limestone and dolomite, the reprocessing and sale of TPP by-products, rare and technical gases, and trading. The total value of UMG’s portfolio of companies is estimated at 400 billion USD.