State Property Fund announces an auction to sell 100% of shares in Smoly chemical plant

On July 2, the State Property Fund announced an auction to sell 100% of the shares in the Smoly chemical plant in Kamianske, Dnipropetrovs'k region. This is the most valuable lot since the small-scale privatization process was resumed. The chemical plant is a functioning enterprise and is managed by the State Property Fund of Ukraine.

This was reported by the press service of the State Property Fund.

According to official data, the initial cost of the plant is UAH 190.3 million. The auction is scheduled for July 26.

The plant was founded in 1998 and its main activity is the production of plastics and ion exchange resins. Between 2020 and the first quarter of 2023, the plant sold products worth UAH 196.4 million.

However, the State Property Fund noted that the company has negative financial dynamics, and for the same period suffered losses of UAH 98.9 million. In addition, the plant has accumulated a debt of UAH 112 million to its employees. This debt will have to be paid by a future investor.

The State Property Fund emphasized that privatization of the enterprise is the only way to attract private investment. This will help pay off the debt and raise revenue for the state budget.

It is worth reminding that the state budget received UAH 1,027,000,000 from the privatization of state property in the first four months of 2023.

In the first quarter of 2023, the state budget received more than UAH 902 million from privatization, which is almost twice as much as in the corresponding period of the previous year.