‘Trust’ Bank Invest ₽30M in Uglegorsk-Cement to Sell it ASAP

Russian ‘Trust’ bank is looking to sell a cement plant in the Rostov Region. Currently, the bank intends to invest 30 million rubles in the plant in order to increase the efficiency of the enterprise and attractiveness for potential buyers.

In 2019, the bank's investments in the Uglegorsk-Cement plant amounted to 16 million rubles. The funds went to optimize the sales structure. According to the results of the year, the cement output at the enterprise exceeded 160,000 tons, and revenue amounted to 638 million rubles. In 2018, the revenue of Uglegorsk-Cement was 11% more — 711 million rubles.

30-million-investment for 2020 should be supporting and aim at eliminating technological problems and improving the operational efficiency of the enterprise. The bank is interested in selling the asset and is currently open to offers. The sale procedure involves mandatory listing on an open platform.

‘Trust’ noted that the Uglegorsk cement plant has a geographical advantage. The plant is located away from major competitors and can satisfy the demand/needs of almost all customers in the whole Rostov region.

Uglegorsk-Cement was launched in 1985. Now it produces cement using dry process, and the capacity reaches 200,000 tons per year. Since 2009, Uglegorsk-Cement has been unprofitable. In 2017-2018, the negative profit started reducing, and reached -19.4 million rubles by the end of 2018 from -55.7 million in 2017.