SFI Management Group and the government of Uzbekistan terminated the trust management agreement for Uzmetkombinat, AGMK and Uzvtortsvetmet
18/02/2021 20:10
SFI Management Group and the government of Uzbekistan terminated the trust management agreement for Uzmetkombinat, AGMK and Uzvtortsvetmet
18/02/2021 20:10
Tashkent, Uzbekistan (UzDaily.com) -- SFI Management Group and the government of Uzbekistan terminated the agreements on trust management of Uzmetkombinat, AGMK and Uzvtortsvetmet. This was reported by the press service of the SFI Management Group.
In 2017, SFI Management Group began to manage the flagship of the ferrous metallurgy - Uzmetkombinat JSC, in 2018 - AGMK JSC and Uzvtortsvetmet JSC.
SFI Management Group notes that in a relatively short period of time, the company acted as a crisis manager of these enterprises, which made it possible to use their untapped potential, optimize the production process by reconstructing and modernizing existing facilities, increasing all indicators, opening new production facilities, and also create new jobs.
“After AGMK was taken into trust, all production indicators increased, in particular, the growth rate of copper output in 2020 compared to 2018 was 126%, zinc - 117%, gold - 114%, silver - 164%. The revenue grew by 204%, and the growth of the company’s net profit - 225%. At the same time, the dynamics of payments to the budget on taxes and mandatory payments in 2020 compared to 2018 showed an increase of 222%, and dividends on the state share - 510%,” the company notes.
New records have been achieved. In particular, in 2019, the monthly production of copper cathodes exceeded 13 thousand tons. Prior to that, the maximum figure was 12,860 tons, and it was set in March of the distant 1985. The introduction of international practices using new reagents has made it possible to increase the extraction of rare and precious metals from ore.
Similar work was carried out as part of the management of the state share in Uzmetkombinat JSC, thanks to which the plant is one of the first enterprises in the republic to conduct a full audit of three-year financial statements compiled in accordance with IFRS by a company from the Big Four, the report says. SFI Management Group.
“Thanks to the introduction of advanced international experience, the transformation of production processes at the plant, solid results have been achieved. So, during the time of trust management, the production of rolled metal products of Uzmetkombinat JSC exceeded 1 million tons per year, while until 2017 it did not exceed 700 thousand tons per year, "the company notes.
New records were achieved, for example, in May last year, 83.7 thousand tons of liquid steel were smelted in 1 month, while over the past 10 years (from 2007 to 2017) the maximum indicator did not exceed 66.0 thousand tons.
The geography of export of domestic metal products has been significantly expanded. The growth of net profit of JSC "Uzmetkombinat" amounted to 145%, and dividends on the state share of payments to the budget - 361%. Also new workshops for ferroalloys and a workshop for wire rod production were opened.
SFI Management Group notes that positive trends were observed in the activities of Uzvtortsvetmet JSC, with overfulfillment of the parameters of the business plan. So, after the object was taken into trust, all production indicators increased, in 2018 compared to 2017, a 2-fold or more growth of all the main indicators of the enterprise was ensured, followed by an annual stable growth of 10%.
The growth rate of processing of copper alloys in 2020 compared to 2018 amounted to 218%, aluminum alloys - 120%, lead alloys - 149%. Revenue increased by 161%, while the company’s net profit grew by 220%. At the same time, the dynamics of payments to the budget for taxes and compulsory payments in 2020 compared to 2018 showed an increase of 126%, and dividends on the state share - 300%.
The implementation of 8 pilot projects has begun, in particular, the renovation of furnaces, the development of new alloys of brass and lead, which are in high demand on the market.
In addition, on 4 December 2020, the launch of the Tashkent Metallurgical Plant took place with the participation of the Head of State, respected Shavkat Mirziyoyev. As the President emphasized, “the opening of this complex is of great importance for the country’s economy and is a historic event. The Tashkent Metallurgical Plant will annually produce 500,000 tons of zinc and polymer coated metal sheets. And this will allow meeting the needs of hundreds of enterprises engaged in the production of building materials and metal structures, household appliances, electrical and food products. Previously, this need was met mainly through imports ”.
“SFI Management Group, realizing the strategic role of the above-mentioned enterprises in the development of the metallurgical industry and the economy of the Republic as a whole, has made every effort to justify the high trust placed in it by the Government of the Republic,” the company notes.
“Considering the company’s fulfillment of most of the tasks assigned by the Government of the Republic, the approved annual business plan of each of the trust management objects, as well as the fact that all enterprises in general are prepared for independent activities in an open market, on February 17, 2021, the parties agreed on the issue of terminating contracts trust management of the state block of shares in the authorized funds of JSC Uzmetkombinat, JSC AGMK, JSC II Uzvtortsvetmet in the prescribed manner, "SFI Management Group said in a statement.
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