Krymskyi Tytan To Invest USD 20 Mln In Two Metallurgical Plants in Late 2005.

The joint Ukrainian and German enterprise Krymskyi Tytan is going to invest ~ USD 20 mln into the Irshansk ore mining and enrichment plant and the Vilnohorsk mining and metallurgical plant by late 2005. Both companies are state owned and are exploited by Krymskyi Tytan based on the 5-year lease agreement concluded with the state in early 2005.  According to the Tytan’s chairman, over USD 5.9 mln has been invested in the two plants since then. Concorde Capital: Krymskyi Tytan, established in August 2004, is Ukraine?s largest producer of titanium dioxide. The company reported a net profit of USD 8.2 mln in 1Q05,and net revenues of USD 55 mln. 50%+1 share in Krymskyi Tytan is owned by the state JSC Tytan, the rest belongs to German RSJ Erste Beteiligungs GmbH. The later also holds 89.48% of the shares in the country?s largest soda producer, Crimean Soda Plant. In light of the recent privatization revision process, the establishment of Krymskyi Tytan might be disputed by the state authorities. The Parliamentary Special Commission on Privatization recommended on 15 March 2005 that the President cancel the decree of the previous president on the creation of Krymskyi Tytan. Also, the state intends to privatize Irshansk ore mining and enrichment plant and Vilnohorsk mining and metallurgical plant which could result in the early termination of their lease agreements and therefore strip Krymskyi Tytan of its  much needed raw material base.