Over the past two years, umgi has allocated nearly $22 million to the expansion of its businesses.
Umgi's industrial goods portfolio has grown much stronger with Inwire Group’s launch of a new cored wire production facility in Izmit, Turkey. Inwire Group is one of the largest manufacturers of metallurgical industry components in Ukraine. This plant took nearly two years to complete, and its finished products will be used to satisfy the needs of the local Turkish and broader Middle Eastern markets, greatly strengthening the company's global presence. Since 2022, the total project investment has had a $2.4 million return.
In addition, umgi has expanded its mining portfolio with the opening of a modern clay production facility in Spain, operated by VESCO Group. In 2023, VESCO Clays Spain opened the Encarnita clay quarry in the municipality of Berge, Teruel. The target market for the ceramic raw materials produced from the Encarnita clay deposit is Spain's world-renowned ceramic industry. The quarry’s planned annual production capacity is 100,000 tonnes of ceramic raw materials.
"At umgi, we are driven by a vision to assemble a $1 billion investment portfolio by leveraging our global expertise and forging strategic partnerships that support Ukraine's recovery. Our investment team is continuously seeking new business opportunities and developing a network of partners across Ukraine, the European Union, Turkey, and India. We remain steadfast in our commitment to strengthening our portfolio with new businesses in the industrial and healthcare sectors, both domestically and internationally, targeting the closure of one to two deals annually,” stated Andrii Gorokhov, umgi CEO.
Umgi's unwavering support of Ukraine's economy is reflected in the over UAH 321 million in taxes contributed by businesses managed by the company in 2023. Moreover, the company allocated UAH 6 million and provided goods and services worth UAH 2 million to support Ukraine's Armed Forces, Territorial Defense Forces, and local communities where its businesses operate. This assistance includes specialized equipment for fortification construction, personal protective gear, logistics equipment, fuel, and other essential supplies, as well as assistance in erecting fortifications and delivering construction materials.
Based on internal estimates, umgi’s total losses inflicted by the war in 2023 amounted to nearly $20 million. Notably, the JSC Chasivoyarskyi Refractory Plant (Chasivoyarskyi Vognetryvkyi Kombinat), which is owned by the VESCO Group is currently in an active combat zone.
"Despite the substantial losses suffered by our assets due to Russia's full-scale invasion, Ukrainian businesses have demonstrated resilience and rapid adaptation to the new reality. We are witnessing signs of recovery across the processing, construction, and manufacturing industries," explained Andrii Gorokhov. "Feednova has achieved its budgetary targets despite martial law and border closures, and a decision has been made to scale up investment in central Ukraine. Recycling Solutions has completed the relocation of its microsphere recycling production to western Ukraine, emerging as one of the EU's largest importers of granulated slag. Intech and PortInvest have recorded year-over-year increases in freight volumes.”
In 2023, umgi opened a regional office in Warsaw, Poland. The office is tasked with coordinating the company's foreign investments and facilitating its portfolio companies' pursuit of opportunities within the European Union.
umgi is a private equity firm that assists medium-sized businesses in driving positive change and accelerating the achievement of their ambitious goals. The firm manages a portfolio of ten companies across Ukraine, the European Union, and Turkey, with a combined estimated asset value of $500 million as of December 2023. The company’s investments span the green economy, mining, industrial goods, and service sectors. Notable portfolio companies include VESCO Group, Inwire Group, INTECH, Recycling Solutions, Feednova, Arnox, Ukrainian Mineral Fertilizers, PortInvest, PJSC "PVP "Kryvbassvybuhprom", and Regen. Established in 2006, umgi’s corporate offices are located throughout Ukraine and Poland.
