9 April 2014

Privatization of the titanium industry

Titanium and its alloys in recent years are a very promising branch of industry, because now this material is actively used by aviation, which is rapidly and rapidly developing. The state of RF has long developed a plan for the complete privatization of this compartment, which has been successfully implemented over the past few years. The next step in this direction was the inclusion in the active resource base of large mining mining companies located in the Irshansk and Volnogorsk Districts. Given the not very favorable market conditions, such a decision is not very profitable for plant owners, but the state is determined and does not take into account the weak consumer demand in the titanium industry at present. Stable interest in the enterprises of such a plan was witnessed only by a large investment metallurgical group led by Dmitry Firtash. The Cabinet of Ministers has already prepared the main documents for the entry of the declared enterprises into the privatization lists. The corresponding decision has already been made public on the official website. To date, all the major assets of powerful titanium complexes are in the lease from a subsidiary of the investment fund Dmitry Firtash. Preparation for privatization is in full swing. It is planned to establish on the main base of titanium giants of individual joint-stock companies, which today's tenant is able to establish. A detailed appraisal of all property of enterprises will allow to determine the full shares of each shareholder. State interest is limited to the property that was transferred to the primary lessee initially. According to preliminary estimates, the state share may not fully hold up to a controlling stake. Moreover, if the initial assets had one value expression, now the price of such enterprises has increased dramatically. The reason for this was modernization and improvement of the technological process at the mining complex. Official sources refuse to comment on the information received. Given the not very favorable time for sale, due to the decline in demand for titanium products in the context of the entire global community, the buyer may find itself in a disadvantageous position.

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