The total amount of processed ore at Pobuzhsky Ferronickel Plant LLC in 1H 2020 amounted to 771,547 tons (134.5% vs. 1H 2019), which corresponded to 43,379 tons of ferronickel from ore raw materials (134.4% vs. 1H 2019) and 8,141 tons of nickel (134.0% vs. 1H 2019).
For 1H 2020, profit before tax amounted to UAH 23.142 million, and the provision for income tax was UAH 4.41 million.
The average wage during 1H 2020 was UAH 11,783 per month, which was an increase of 13.4% compared to the same time period in 2019. Since 1 January 2020, with the consent of the Solway Group, management of Pobuzhsky Ferronickel Plant made a decision to increase wages at the plant by 10%.
During the reporting period, PFP has transferred taxes to the budget of Ukraine in the amount of UAH 61.703 million, which was 19.8% more than the company paid during 1H 2019. Within this amount, payments of the single social contribution amounted to UAH 29.976 million (14.5% more than in 1H 2019), and income tax for individuals and the military levy amounted to UAH 24.218 million (an increase of 16.1 % vs. 1H 2019).
Social sphere expenditures in the town of Pobuzke during 1H 2020 totaled UAH 2.437 million (96.5% vs. 1H 2019).
In addition, PFP spent UAH 1.536 million on sponsorships, cultural programs, public projects, and healthcare investments for workers. In 2013, the company created the charitable foundation “Development of Pobuzhzhya”. With the foundation’s help, financial assistance was provided to a wide range of projects including: employees and villagers for medical treatment, towards landscaping in the village (export of household garbage), to kindergartens (construction of benches, purchases of furniture, cables, no-contact thermometers), to the Young Technician Center (purchase of a boiler, building materials, help in conducting an online competition for Children’s Day), assistance to the local ambulance service (purchase of PPE re Covid-19), to the local police station (purchase of building materials and conducting repairs), to hospitals (purchase of an X-ray developer, protection masks, detergents and stationery), etc.
In 2017, PFP launched a long-term reconstruction project of the third stage of gas-cleaning equipment on the tubular rotating furnaces #1 and #2. This project will result in a reduction of pollutant emissions into the atmosphere in accordance with global standards. In 2018, the first stage of construction was executed (UAH 48.1 million) which included the transfer of gas purification Tubular Air Heather (TAH) #1 to a temporary scheme with the installation of a chimney and the transfer of gas passages to the chimney, which allows for the second stage to be performed without stopping the main production line. In 2019, PFP purchased a stand-by smoke exhauster and performed construction and installation works. Total expenditures (the cost of equipment purchased and works performed during 2018-2019) were UAH 58.0 million. Further works are scheduled for 2H 2020: TAH #1, #2 at a cost of UAH 52.0 million, and TAH #3,#4 (in project stage) at an estimated cost of UAH 6.4 million.
Investments in support of productive potential (purchases of equipment, machinery, construction, etc.) amounted to UAH 8 million in 1H 2020.
The cost of staff training at PFP amounted to UAH 181,000 during 1H 2020. In total, during this period, 51 employees received additional education and training for new professions, and 33 people acquired a second profession. Another 73 people increased their qualifications. Five employees are presently studying in universities: full time – 1 person, by correspondence – 4 people.
In addition, as a part of PFP’s 2020 social responsibility program, Solway Investment Group extended an international scholarship, founded in 2016, for children of employees, as well as for students of creative associations and educational institutions of which Solway is a sponsor. The company offers a 6-month educational program, aimed at integrating young creative people from local communities into modern life through the study of English, the learning of art and the adaptation of its cultural traditions to the modern world. As a result of two rounds of auditions, the most interested young people are selected to participate in special program in the frames of International Opera Festival in Salzburg, Austria. The visit is scheduled on January 2021