Dnipropetrovsk Pipe Plant was sold at auction for UAH 14 million

On November 6, 2023, an auction for the sale of Dnipropetrovsk Pipe Plant (DPP), part of the Industrial Union of Donbass (ISD) group, one of the largest corporations in Ukraine, was held on the Prozorro.Sales platform.

The auction was held according to the Dutch auction model – on price reduction. The starting price was UAH 128 mln. Only one bidder – Bud-Assistant LLC – took part, offering UAH 14m for the asset. This is the second attempt to sell DTZ. The first auction was held at a starting price of UAH 160m, but the auction did not take place.

According to Youcontrol, the main activity of Bud-Assistant is non-specialized wholesale trade.

Dnipropetrovsk Pipe Plant is a part of ISD Corporation, specialized in the production of seamless and electric-welded pipes and at one time held 9% of the Ukrainian pipe products market. Currently, the plant is in a semi-destroyed state.

The plant was declared bankrupt back in 2021. The plant’s problems began in 2011 due to lack of working capital. In 2015, the first bankruptcy case was initiated on the claim of Radical Bank for the return of UAH 10 million of debt, but the plant won the case.

Since 2016, the plant has been operating with prolonged downtime due to the lack of raw materials from the main supplier – ISD Corporation. In April 2021, the Economic Court of Donetsk region opened bankruptcy proceedings against ISD Corporation.

Thus, the winner received an asset with a total area of 24,775.1 sq. m. This includes the main building of the pipe electric welding shop – TEWS, plant stocks, etc.

As GMK Center reported earlier, in September 2023 Ukrainian pipe companies increased product exports by 23% compared to August 2023 – up to 31.8 thousand tons. Over 9 months, pipe exports decreased by 7.8% year-on-year, to 277.8 thousand tons.