Ukraine’s Titanium Industry Moves Towards Privatization with $95.6 Million UMCC Sale

UMCC

In a major step in Ukraine's titanium sector privatization, the State Property Fund of Ukraine auctioned United Mining and Chemicals Company (UMCC) for 3.94 billion UAH (approximately $95.6 million). Tsemin Ukraine acquired UMCC, pending approval from Ukraine's Cabinet of Ministers. This sale is part of Ukraine’s broader effort to privatize key titanium assets, aiming to enhance the sector’s productivity and independence amid ongoing economic challenges.

The sale agreement stipulates that Tsemin Ukraine must maintain UMCC’s operations, invest a minimum of 400 million UAH in technical modernization, and resolve any outstanding debts, including wages. As one of the world’s largest titanium producers, UMCC manages the Irshansk and Vilnohirsk Mining and Processing Plants, producing over 500,000 metric tonnes annually. The company has recently strengthened its European market position by resuming ilmenite concentrate shipments, contributing to a more stable supply of titanium materials within the continent.

VSMPO Titan and ZTMC Also Slated for Privatization

Alongside UMCC, Ukraine is preparing to privatize additional titanium-related assets, including VSMPO Titan Ukraine and the Zaporizhzhia Titanium-Magnesium Combine (ZTMC). VSMPO Titan Ukraine, which specializes in seamless titanium pipes, was seized from Russian oligarch Mikhail Shelkov in 2023. Meanwhile, ZTMC, under state control since 2020 after the government took it from Group DF owned by Dmitry Firtash, is positioned for new investment and modernization through privatization efforts.

The State Property Fund is also evaluating options for the Zaporizhzhia Titanium Institute after an initial auction failed to secure a buyer. This focus on privatizing titanium assets underscores Ukraine’s commitment to revitalize and safeguard its strategic metal production industry amid heightened demand and geopolitical pressures.

EU Awards €7.3mn Grant to Titanium Consortium for Sustainable Extraction and Processing

EU Titanium

The EU has awarded a €7.3mn ($8.1mn) grant to 13 companies under its REPTiS project for the responsible extraction and processing of titanium and other primary raw materials for EU industrial value chains and strategic sectors. The grant will be used to demonstrate the viability of titanium extraction, processing, and deployment within the EU in collaboration with Ukraine.

Funded under the EU's Horizon Europe programme, the project will run for four years, ending on August 31, 2028. The project is coordinated by the European Powder Metallurgy Association (EPMA), with major participants including Ukrainian titanium producer Velta and aerospace manufacturer GKN Aerospace. Most of the funding is earmarked for Velta and the EPMA, while other recipients include companies specializing in metal injection molding, additive manufacturing, research centers, and universities. The full €7.3mn budget allocation is yet to be detailed.

The goal is to showcase solutions for titanium extraction and processing across the value chain, including mining ilmenite ore at Velta's Byrzulivske deposit and producing low-carbon titanium powder. Technologies like additive manufacturing and metal injection molding will be employed to manufacture aerospace components and medical products.

A life-cycle assessment will compare these methods to conventional practices. Velta's CEO, Andriy Brodsky, emphasized that the EU’s recognition of Ukraine as a strategic partner ensures a secure titanium supply chain, crucial for global industries. The Ukrainian government has been encouraging international investment in the country's titanium industry, with a key auction for titanium firm UMCC set for October 9.