Off the wire
• South African gov't condemns political killings before local elections  • Nigerian troops kill 42 Boko Haram insurgents  • News Analysis: Failed coup may urge thaw in Turkey's regional ties, yet tense with West: experts  • S.African state to appeal Pistorius six-year sentence  • Italy down England 2-1 to grab a berth in UEFA Under-19 final  • South Africa's repo rate remains unchanged at 7 pct  • Ghana president urges industrialization to achieve sustainable growth  • Foreign exchange rate of Euro to other currencies  • Gold up on mixed U.S. data, weaker U.S. dollar  • France edge Portugal 3-1 to book final in UEFA Under-19  
You are here: 　 Home

Ukraine plans second attempt to auction off largest chemical plant

Xinhua, July 22, 2016 Adjust font size:

Ukraine plans to undertake a second attempt to auction off its largest state-owned chemical producer Odessa Portside Plant (OPP) as the first one was unsuccessful, the country's Economic Development and Trade Minister Stepan Kubiv said on Thursday.

"We plan to hold the auction in October," Kubiv told reporters during a media forum in Kiev.

In an effort to woo investors to participate in the auction, Ukraine is considering a possibility to reduce a starting price for the OPP, which was previously set at 13.175 billion hryvnyas (about 531 million U.S. dollars), the minister added.

The previous attempt to hold the public sale of the plant has failed as Ukraine received no bids from potential buyers before the deadline on July 18.

According to local analysts, the reason for the first failed sale is the lack of investor interest caused by an overestimated starting price for the OPP and challenging political and business environment in the East European country.

Located in Ukraine's southern Black Sea Port of Odessa, 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.

The next auction will take place only if at least two potential buyers, one of which is a non-resident of Ukraine, submit bids. Endit