Ulbinsk plant (Kazakhstan) wants to exchange its 34% with a company of RF

21.12.99 00:00
/IRBIS, Dec.21, 99/ - REUTERS informs, with the reference to the assistant of the general director of UMP Sergei Grokhotov, that Ulbinsk metallurgical plant (UMP) in the East of Kazakhstan plans to exchange its 34 percent of shares with one of Russian plants, which is also deals with nuclear fuel. "We are sure the shares will be exchanged with Russian concern TVEL not later than the first quarter of 2000. Which enterprise is it? We have not determined yet, whether it will be Novosibirsk plant of chemical concentrates or will it be Electrostalskii plant or the enterprise in Glazov. It is our 34 percents we are talking about, exchange will be adequate in terms of prices", said Sergei Grokhotov at the press-conference. This metallurgical plant was classified enterprise during the soviet era. Its nick name was "mail box", and it is the biggest producer of nuclear fuel and beryllium containing and tantalum products. Production volume is not revealed by the enterprise because of its strategic nature. Main consumers of uranium pills, which are the fuel for nuclear reactors, are Russian and Ukrainian enterprises. "Agreements were made, and both Russian and Kazakhstani governments gave "the green light". Yes, we are moving towards integration of our shares in merging with each other, if it can be said so", said Grokhotov. After the collapse of the Soviet Union and the defense complex the company is having many problems, among them sharp decline of production, halt of many workshops, lay-offs, delayed wages. This year was the landmark for the plant, says the assistant general director. New ways of getting into the world market are being searched by the plant. An investment program was presented at Kazatomprom, which owns 90 percent of plant's shares. Grokhotov named a number of activities to be implemented in 2000. They are: development and reconstruction of uranium production that uses natural uranium, and development of beryllium production, environment protection, modernization and development of waste storage facilities. All these activities require at least $33 mln. The plant has not received such investments for a long time. Investment program is a part of the financial plan, it is real contracts and hence, equity.