OREANDA-NEWS. August 8, 2007. Within the framework of the SCM business restructuring programme a 92.11% shareholding of JSC Pavlogradugol owned by Avdeyevka Coke and Chemical Plant (Metinvest Group) was transferred to Donbass Fuel and Energy Company (DTEK) which controls the fuel and energy assets of SCM Group. All investment commitments from the contract of sale and purchase of the coal mining company Pavlogradugol shares will be taken over by DTEK – the leading power company in Ukraine.

Since 2005 when DTEK started controlling the coal mining company, Pavlogradugol has improved its position in the national coal market and increased coal output to 12 Mt per year (15.2% of the total coal production in Ukraine), which is a record production rate for the period since Ukraine gained its independence. The successful performance of Pavlogradugol is based on the new development strategy which includes modernisation of equipment and introduction of modern production management procedures. Around UAH658 million was invested in the coal mining company from 2005 to 2006.

The General Director of SCM Oleg Popov said: “Restructuring of SCM Group’s business means provision of our industrial holdings with the management and ownership rights in respect of the companies consolidated in the holdings. Transfer of corporate rights of individual companies within SCM is aimed at making our business more transparent and understandable for investors, partners and the employees of the companies”.