Ukrainian businessman Oleksandr Yaroslavsky has spoken of his plans to build on synergies with his expanding industrial empire following the acquisition of Dnipropetrovsk Metallurgical Plant (DMZ) in early March. Yaroslavsky’s DCH Group has made a number of industrial acquisitions since 2016 including Kharkiv Tractor Factory and Sukha Balka mine. He now hopes to be able to capitalize on synergies between these three latest additions to the DCH portfolio.
“We are now looking to make the most of synergies between these three assets,” Yaroslavsky confirmed on 6 March. “DMZ produce metallurgical products, Kharkiv Tractor Factory uses metals heavily in its production processes, and Sukha Balka mine offers raw materials. These three enterprises are in tune with each other in terms of their complementary production.”
Yaroslavsky underlined his commitment to acquiring Ukrainian industrial assets and investing in their development. “The acquisition of DMZ expands the scope of DCH Group’s investment in the Ukrainian economy. We have recently been able to revive the fortunes of Kharkiv Tractor Factory and bring it back from a state of virtual ruin. A new era is now also dawning for DMZ.”
DMZ General Manager Hennadiy Begreman welcomed the opportunities presented by Yaroslavsky’s arrival. “We are pleased to see DMZ acquired by a strategic Ukrainian investor. Yaroslavsky’s personal experience in the development of industrial enterprises and in attracting investments to boost production are both valued. Acquisition by DCH Group opens new perspectives and new markets for us. I expect it to lead to improves in the financial performance of DMZ.”
The purchase of DMZ on 1 March saw DCH Group buy a 100% stake in Drampisco Limited, which owns 97.73% of shares in Evraz DMZ. The plant posted revenues of USD 586 million in 2017. As of 31 December 2017, the total value of DMZ assets was USD 153 million.