Mind summary:
A heavily damaged and looted asset by 70%, which has the potential of worth up to 100 million UAH, three times the starting auction price. The bentonite clay found on site can be used to create a resort, however it must be removed due to a nearby municipal landfill.
Description:
The company: under the YeDRPOU (Unified State Register of Enterprises and Organisations of Ukraine) code 05792908, ceased operations.
First aution: No.
38,771,772.54 UAH
64, 619, 620.91 UAH.
Location:
Tax debt as of 01.01.2022: 522,158.26 UAH
The plant’s main activities during its work: 08.12 Extraction of sand, gravel, clay and kaolin
For sale:
- A large complex of a chemical plant in Transcarpathian Oblast, with a total area of more than 10 thousand sq m. Full description of buildings.
- Gorbske deposit of bentonite clays, North-West part, average reserves range from 3000 to 20,000 thousand tonnes.
Technical condition: The state of all existing immovable objects is disastrous, more than 70% are looted and unsuitable for further exploitation, metal framing walls and partitions were dismantled, roof coverings, doors, windows and engineering networks are absent; including power supply systems (electrification), networks, equipment and heating appliances; water supply and sanitation etc.
Land: total area 41.7199 hectares including 25.4199 hectares in settlements; among them: The Village of Veriatsia Council 25.4199 ha., The Village of Cherniavka Council 16.3 ha.
Land status: Buildings located on lands granted to PAT Zatysiansky Chemical Plant for permanent use (State Act on the right to permanent use II – ZK No. 001524)
(!): The right to permanent use is usually granted to state or municipal organisations and enterprises. Upon resale of property, permanent land use rights do not transfer and land lease should be concluded separately.
(!): The city dump borders with the plot belonging to PAT Zatysiansky Chemical Plant.
Contractor links: According to YouControl data, it is related to Kostiantyn Zhevago’s Financial-Industrial Group Finance & Credit.
The lot's history
The founder of the legal entity PAT Zatysyansky Chemical Plant public joint-stock company in the village of Gorbky was Mykola Griga (Party of Regions until 2014, People's Front party from 2015, data incomplete). According to media reports, he previously organised schemes for stealing production lines, precious metals and other industrial equipment and property of the plant.
Back in 2000, the leadership of the Transcarpathian Oblast State Administration wanted to transform the plant's premises into a massive landfill. The scandal was caused due to the absence of public hearings.
In 2015, the prosecutor's office opened criminal proceedings on the unlawful non-payment of wages to employees of Zatysyansky Chemical Plant worth 243,3 thousand UAH. After completely stealing the equipment and funds from the enterprise, its management launched a process for declaring bankruptcy.
In April 2016, The Transcarpathian Oblast Commercial Court finally declared it bankrupt and opened liquidation proceedings against PAT. As of today, Legal Entity PAT Zatysiansky Chemical Plant is still being ceased.
In 2020 there were talks about purchasing or renting the plant’s land by Vynogradovo Rayon State Administration or Oblast State Administration.
The history of the factory. There were large deposits of coal in Gorbky village – in the 1970s mines were working here but later they were closed and production was moved away. On its basis Zatysiansky Chemical Plant for processing bentonite was created.
- Foundation year: 1950
- Number of employees as of 2015: 185 people
- Registration date: 24.09.1996
Aspects. In the vicinity of the village one of the oldest ever known early man sites in Europe, Korolivska site, is located. Excavations are held in Mala Kopania.
Analysis by Mind
Advantages
The reserves of bentonite clay, estimated to be worth 100 million UAH, which is three times the price of the lot.
Background and calculations:
Bentonite clay. In Ukraine, there are about 110 deposits and occurrences of all genetic types of bentonite clay found on its territory.
The sorbent properties of clays are widely used for degreasing and purifying oils and fats in food, oil, textile industry, for pharmaceuticals production, water purification, sorption of radionuclides, heavy metals, pesticides etc. The catalytic activity of bentonites has led to their use as catalysts in a number of chemical plants, synthesis rubber, cracking oil.
The cost of 1 tonne of bentonite clay is 11,760 UAH/t.
On the assumption of the average estimate of bentonite clay reserves in the deposit at 10 thousand tonnes, the value of reserves can total more than 100 million UAH.
Transcarpathia is Ukraine’s resort area. The clay from the deposit can be used to create a resort with mud baths. But it will need to be removed, since next to the plant is a local landfill.
This deposit is located 4 km away from the Korolevo Station. Nearby are first-class oak forests and also well with clean and fresh water. Exposed and abandoned quarries can be used for organising mud baths.
Scientists from local university are ready to develop methods for treating various diseases with clay.
By 2012 the company was a leader in its field - a well-known manufacturer of hygienic fillers for domestic cats. The product was actively purchased both within Ukraine and abroad (Poland, Belarus, Slovakia, Baltic countries). Sanimaks Company collaborated exclusively with the Transcarpathian enterprise realising fillers "for tidy cats."
Location in the Transcarpathian Oblast, far from the battlefront.
Problems
The factory has been shut down for 10 years, since 2013, which creates obvious challenges in the production organisation. The factory's equipment was stolen. The land after the chemical plant operation most likely is not suitable for further use for agrobusiness or construction of a new business. Gold was mined here, chemical fertilisers were produced.
The premises are located next to the city landfill, which brings its own challenges. Local authorities had plans to convert the factory into a landfill. That remains a problem in Transcarpathia today.
The enterprise has debts as well.
Its renovation is possible but complicated by debts, government intentions to build a landfill on its site and probably attitudes of local inhabitants.
According to the company's management, the problems for the factory began in 2005-11 after gas prices increased significantly which they used in large quantities in production. About that time large amounts of bentonite started coming to Ukraine from Greece and Turkey where it's processed without gas – climate allows using solar drying. Even after being shipped, imported raw material was cheaper than bentonite from Transcarpathia dried with gas.
The railway track which used to carry out products was built in the 1970s, but by 2017 there was no railway track leading to Zatysiansky Chemical Plant – 5 kilometres of metal rails disappeared somewhere unknown.
According to media sources, the factory was seized and later stolen by a firm that operates under Kostyantyn Zhevago’s control.
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