Ukraine to auction off largest state-owned chemical plant

Ukraine set a starting price of over 13 billion hryvnyas (about 521 million U.S. dollars) for the auction of the country's largest state-owned chemical producer Odessa Portside Plant (OPP), the State Property Fund said Wednesday.

"All preparatory works for the privatization of the plant have been completed. After an independent assessment of the state-owned shares of the OPP, the privatization commission set a starting price at 13.175 billion hryvnyas (about 521 million U.S. dollars)," Igor Bilous, the head of the fund, told a cabinet meeting.

The sale of OPP, part of the government's privatization program, will take place when at least two potential buyers, one of which is a non-resident of Ukraine, submit bids, he was quoted by the Ukrainian news agency as saying.

The OPP produces about 1 million tons of ammonia and about 800,000 tons of carbamide annually and exports chemicals to more than 30 countries. The government owns 99.6 percent of shares of the plant.

This year, the Ukrainian cabinet has set a target to raise about 800 million dollars by selling stakes in state-controlled enterprises to fill the cash-strapped budget and enhance the efficiency of the facilities. Endit