SCM Holdings
Encyclopedia
System Capital Management or SCM is a major Ukrainian
financial and industrial holding company with headquarters based in Donetsk
in the east of the country. The business is controlled by a Ukrainian businessman Rinat Akhmetov
who owns 100% of the company shares. According to recently published figures the group has revenues of around $12.8 billion and has assets worth over $22.7 billion.
, which is a mining and steel business and is generally agreed to be Ukraine’s largest private business and is one of the bigger steel businesses in Europe. It is also the largest Ukrainian producer of iron ore. Metinvest also has assets in the USA, Italy, UK, Bulgaria and Switzerland
. The second majour company of the Group is DTEK, which mines coal and owns and operates a number of power stations in Eastern Ukraine. It was launched as the power generation and distribution holding within SCM in February 2006. SCM also owns two large banks and an insurance company. In telecommunications, SCM has a fixed line business, Vega Telecom group and a big share in mobile operator, Life:). The Group’s media interests include the newspaper Segodnya
and «Ukraina» Media Group. The group is also in the real estate business and owns two five star hotels – one in Kiev
and one in Donetsk
. SCM group also includes assets in heavy engineering, clay production, transportation, agriculture, retail businesses.
Figures often published as private income of key SCM shareholder Rinat Akhmetov are rather referred to SCM
assets value; growth of the value should not be attributed to coming to power of the friendly political party but to a great extent to the decision of the Company's key shareholder, according to which the profit is not distributed and traditionally invested into further development of SCM The Group is audited by PricewaterhouseCoopers
and consolidated audit statements are given in the table:
|Key consolidated financial indicators, $bn
|2006
|2007
|2008
|2009
|2010
|-
|Assets
|11.372
|19.903
|18.075
|18.539
|22.788
|-
|Gross revenues
|6.719
|9.563
|15.985
|8.151
|12.819
|-
|Pre-tax profit
|1.053
|1.745
|3.000
|0.283
|1.299
|-
|Profit tax expenses
|0.349
|0.379
|0.805
|0.186
|0.499
|}>
Metinvest Holding
The nucleus of the complex at the moment of establishment consisted of Vostokenergo Power Generation Company, ServiceInvest Energy Company, and the coal mine Komsomolets Donbassa. The other companies ranged from scientifically oriented energy-sector companies to those in various social fields. The official website declares that the association is voluntary and non-commercial. The main goals of the complex are the coordination of management and the assurance of high efficiency production. The current director of the association is Maksym Tymchenko.
Association members
The business of Rinat Akhmetov are possibly best known for being the owners of the Ukrainian Shakhtar Donetsk Football Club
, which plays regularly in European competitions and is the winner of 2009 UEFA Cup 2009 UEFA Cup Final
.
SCM Group majour businesses also actively borrow on international markets with Metinvest raising $1.5 billion facility in 2007 and $700 million loan in 2010
and DTEK raising $150 million loan in 2008
In November 2010 the group announced plans to enter two or three new business sectors and invest $10billion over the next decade in its business organic growth alone.
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
financial and industrial holding company with headquarters based in Donetsk
Donetsk
Donetsk , is a large city in eastern Ukraine on the Kalmius river. Administratively, it is a center of Donetsk Oblast, while historically, it is the unofficial capital and largest city of the economic and cultural Donets Basin region...
in the east of the country. The business is controlled by a Ukrainian businessman Rinat Akhmetov
Rinat Akhmetov
Rinat Leonidovych Akhmetov is a Ukrainian businessman. He is the founder and President of System Capital Management, and is ranked among the wealthiest men in the nation. Akhmetov is also the owner and President of the Ukrainian football club Shakhtar Donetsk...
who owns 100% of the company shares. According to recently published figures the group has revenues of around $12.8 billion and has assets worth over $22.7 billion.
Overview
SCM was set up in 2000 and now includes over 100 businesses in metals and mining, power generation, banking and insurance, telecommunications, media and real estates as well as in some other spheres. The biggest company in the SCM Group is METINVESTMetinvest
Metinvest is an international and vertically integrated mining and steel corporation. It was established on 6th June 2006 by the SCM Group. In 2007 Metinvest Ukraine LLC and Metinvest Service Metal Centres LLC were established to function as subsidiaries engaged in production and supply of...
, which is a mining and steel business and is generally agreed to be Ukraine’s largest private business and is one of the bigger steel businesses in Europe. It is also the largest Ukrainian producer of iron ore. Metinvest also has assets in the USA, Italy, UK, Bulgaria and Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
. The second majour company of the Group is DTEK, which mines coal and owns and operates a number of power stations in Eastern Ukraine. It was launched as the power generation and distribution holding within SCM in February 2006. SCM also owns two large banks and an insurance company. In telecommunications, SCM has a fixed line business, Vega Telecom group and a big share in mobile operator, Life:). The Group’s media interests include the newspaper Segodnya
Segodnya
Sevodnya founded in 1997, is a Russian language Kiev-based tabloid newspaper, second only to Fakty i Kommentarii in circulation, with over 700,000 subscribers. While run from Kiev, it is linked to Donbas political and business groups, supporting former Prime Minister Viktor Yanukovych for the...
and «Ukraina» Media Group. The group is also in the real estate business and owns two five star hotels – one in Kiev
Kiev
Kiev or Kyiv is the capital and the largest city of Ukraine, located in the north central part of the country on the Dnieper River. The population as of the 2001 census was 2,611,300. However, higher numbers have been cited in the press....
and one in Donetsk
Donetsk
Donetsk , is a large city in eastern Ukraine on the Kalmius river. Administratively, it is a center of Donetsk Oblast, while historically, it is the unofficial capital and largest city of the economic and cultural Donets Basin region...
. SCM group also includes assets in heavy engineering, clay production, transportation, agriculture, retail businesses.
Figures often published as private income of key SCM shareholder Rinat Akhmetov are rather referred to SCM
SCM Holdings
System Capital Management or SCM is a major Ukrainian financial and industrial holding company with headquarters based in Donetsk in the east of the country. The business is controlled by a Ukrainian businessman Rinat Akhmetov who owns 100% of the company shares...
assets value; growth of the value should not be attributed to coming to power of the friendly political party but to a great extent to the decision of the Company's key shareholder, according to which the profit is not distributed and traditionally invested into further development of SCM The Group is audited by PricewaterhouseCoopers
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
and consolidated audit statements are given in the table:
|2006
|2007
|2008
|2009
|2010
|-
|Assets
|11.372
|19.903
|18.075
|18.539
|22.788
|-
|Gross revenues
|6.719
|9.563
|15.985
|8.151
|12.819
|-
|Pre-tax profit
|1.053
|1.745
|3.000
|0.283
|1.299
|-
|Profit tax expenses
|0.349
|0.379
|0.805
|0.186
|0.499
|}>
Metinvest HoldingMetinvestMetinvest is an international and vertically integrated mining and steel corporation. It was established on 6th June 2006 by the SCM Group. In 2007 Metinvest Ukraine LLC and Metinvest Service Metal Centres LLC were established to function as subsidiaries engaged in production and supply of...
(Mining-Metallurgical Complex)
- Krasnodonugol Coal CompanyKrasnodon CoalKrasnodon Coal is located in the northern part of the Donetsk coal basin within Krasnodon district of Lugansk region, Ukraine.-History:...
- Northern Iron Ore Enrichment Works (Northern GOK)Northern Iron Ore Enrichment Works (Northern GOK)Northern Iron Ore Enrichment Works Northern GOK was built and launched in 1963 ; at present it is one of the largest iron ore mining enterprises in Europe, producing merchant concentrate with Fe content of 68.4% and pellets with Fe content of 60.5% and 63.5%...
- Central Iron Ore Enrichment Works (Central GOK)Central Iron Ore Enrichment Works (Central GOK)- Background:Cental GOK was established in 1961Central Iron Ore Enrichment Works specializes in processing and production of raw materials for the steel industry, merchant concentrate with an average Fe content of 65.0% to 68.2% and pellets with an average Fe content of 63.9%...
- Ingulets Iron Ore Enrichment Works (Ingulets GOK)Ingulets Iron Ore Enrichment WorksIngulets Iron Ore Enrichment Works is a mining and processing plant which produces metallurgical products. The company is based in Kryvy Rih, Ukraine...
- Avdeyevka Coke and Chemical PlantAvdeyevka Coke and Chemical Plant-History:History of Avdeyevka Coke and Chemical Plant started in 1963 when the first coke battery was commissioned and first coke produced. During the 1973-1980 period other four workshops were put into operation...
- Komsomolskoye mining companyKomsomolskoye mining companyKomsomolskoye mining company was founded in 1995 in Komsomolske, Donetsk Oblast. In 2011 Komsomolskoye mining company became part of the Iron Ore Division of Metinvest Group. Komsomolskoye mining company is the biggest Ukrainian flux supplier to metallurgical and food industries...
- Limited liability company “Danube Shipping Stevedoring Company”
- Azovstal Iron and Steel WorksAzovstal Iron and Steel WorksMetallurgical Combine Azovstal is one of the biggest steel rolling companies in Ukraine.-History:...
- Ilyich Steel & Iron Works
- Yenakiieve Iron and Steel WorksYenakiieve Iron and Steel WorksYenakiieve Iron and Steel WorksPublic Joint Stock Company “Yenakiieve Iron and Steel Works” is an integrated steelmaking enterprise comprising OJSC “Yenakiieve Iron and Steel Works” and JV “Metalen” LLC. Yenakiieve Iron and Steel Works is a major employer of Yenakiieve town with the population...
- Khartsyzsk PipeKhartsyzsk pipe plantOJSC Khartsyzsk Pipe Plant is located in Khartsyzsk city, Donetsk region, Ukraine. The enterprise started pipe production in 1897. Construction lasted almost four years and, after coming on stream, the plant became known as Khartsyzsk Boiler and Mechanical Plant...
- Promet Steel JSC
- Spartan UKSpartan UK-History:The company was known as Spartan-Redheugh, part of the Firth Group , until 2001, when Gruppo Malacalza of Italy bought the steel manufacture site and set up a new company named Spartan UK....
- Skif-Shipping, LLCSkif-Shipping, LLCSkif Shipping Ltd. was founded in 2000. As of August 12, 2006, Skif Shipping Ltd. is a subsidiary of Metinvest Holding Ltd.The company has branch offices in the cities of Mariupol, Sevastopol, Dnipropetrovsk and Odessa...
- United Coal CompanyUnited Coal CompanyUnited Coal Company , a nonunion coal mining company headquartered in Blountville, Tennessee, is a leading producer of high grade metallurgical coals, with operations in Virginia, West Virginia and Kentucky and a subsidiary of the United Management Company, headquartered at Blountville,...
(USA) West VirginiaWest VirginiaWest Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
-based company - METINVEST-RESOURCE, LLC
- Metinvest InternationalMetinvest InternationalMetinvest International SA is a Swiss-based steel trading company established in 1997. It is located in Geneva , and is the distribution channel of Steel and Rolled Products Division and Iron Ore Division of Metinvest Group.- Company profile :Metinvest International sells and distributes the...
(Switzerland) - Ferriera ValsiderFerriera ValsiderFerriera Valsider S.p.A. is a steel works that has been operating in the province of Verona, Italy, since 2001.Ferriera Valsider produces structural steel: heavy plate and hot rolled coils with concast slab as raw materials...
(Italy) - Trametal SpATrametal SpATrametal was founded in 1985 in Genova, Italy with production sites in San Giorgio di Nogaro, as a limited liability company whose main business concerned in brokerage and trading of steel products, particularly spare parts for steel plants. In 1994 the company changed its corporate form to a...
(Italy)
DTEK (Energy Complex)
Donbass Fuel-Energy Complex was formed in 2002 and is an association of 15 various enterprises that presented a logical chain from mining and refining of coal to supplying of electricity.The nucleus of the complex at the moment of establishment consisted of Vostokenergo Power Generation Company, ServiceInvest Energy Company, and the coal mine Komsomolets Donbassa. The other companies ranged from scientifically oriented energy-sector companies to those in various social fields. The official website declares that the association is voluntary and non-commercial. The main goals of the complex are the coordination of management and the assurance of high efficiency production. The current director of the association is Maksym Tymchenko.
Association members
- Pavlogradugol is a coal-mining company which is an association of 10 mines and a coking chemical plant based in PavlohradPavlohradPavlohrad or Pavlograd is an indistrial city in eastern Ukraine, located within the Dnipropetrovs'ka oblast, and had a population of 118,800 in 2001. The rivers of Vovcha , Hnizdka , Kocherha flow through Pavlohrad. The area of the city is . There are 20 schools and 1 lyceum in the city.In 1930...
, Ukraine. - Komsomolets Donbassa is a coal mine named after the komsomolKomsomolThe Communist Union of Youth , usually known as Komsomol , was the youth division of the Communist Party of the Soviet Union. The Komsomol in its earliest form was established in urban centers in 1918. During the early years, it was a Russian organization, known as the Russian Communist Union of...
activists - Vostokenergo is a power generation company, the name of which means the energy of the East (Vostok)
- Service Invest – a power distribution company
- PES-Energougol – a power distribution company
Financial business of SCM
- First Ukrainian International BankFirst Ukrainian International BankThe First Ukrainian International Bank was founded on 20 November, 1991, registered with the National Bank of Ukraine on 23 December, 1991. In April 1992 the Bank started its banking operations. In 1995 the Bank began its cooperation with the European Bank for Reconstruction and Development and in...
- Renaissance Capital BankRenaissance Capital Bank- History :Renaissance Capital was established in 2004 in Kiev, the capital of Ukraine. In 2009 the Bank established presence in Belarus and is currently expanding its business to a wider Central and Eastern European region.- Membership :...
- ASKA Insurance CompanyASKA Insurance CompanyFull name of the company is Aska Ukrainian Insurance Closed Joint Stock Company. It was established on 20 June 1990 as part of ASKO holding , ASKA Ukrainian insurance company has been operating as Ukraine's first private insurer since 1995...
- ASKA-Life Insurance Company
Tele-communication
- Vega Telecommunication GroupVega Telecommunication Group- History :Vega appeared in Ukrainian telecommunications market on October 15, 2008 through the merging the largest telecommunications groups in Ukraine: Farlep and Optima Telecom, as well as companies Ucomline, CSS, IP Telecom, Matrix, Vilcom and many others....
- Astelit Mobile CommunicationsAstelit Mobile CommunicationsAstelit is a mobile operator, a subsidiary of SCM Holdings. Astelit operating in Ukraine under the life:) brand, that was launched at the end of January 2005. The company was the first in Ukraine to offer its customers EDGE-based high-speed data transfer services.At the end of first quarter 2011,...
- life:)
Media business
- Ukraina Media Group
- TRK Ukraina TV channel
- Football TV СhannelFootball TV СhannelFootball TV Сhannel is the first specialized TV channel in Ukraine, dedicated exceptionally to football broadcasts. Football TV Сhannel broadcasts Ukrainian and European club competitions, International matches and other football events.-Coverage:...
(Football+ TV Channel) - TV Channel 34
- Donbass TV (Donets basinDonets BasinDonbas or Donbass , full rarely-used name Donets Basin , is a historical, economic and cultural region of eastern Ukraine. Originally a coal mining area, it has become a heavily industrialised territory suffering from urban decay and industrial pollution.-Geography:Donbas covers three...
regional channel) - Internet Holding Digital Ventures (the TOCHKA.netTOCHKA.netTOCHKA.net is a horizontal portal developed in 2009 by Digital Ventures company, which is a part of System Capital Management Group. According to gemiusAudience study for July 2010, is the biggest among other Ukrainian portals...
portal)
- Publishing House "Syohodni"
- Segodnya-Multimedia Publishing GroupSegodnya Multimedia Publishing Group- History :Private joint stock company Segodnya Multimedia has been working in publishing business since 1997. In 2007 Web portal Segodnya.ua was launched. Segodnya Publishing Group is a member of UAPP...
- Segodnya-Multimedia Publishing Group
ESTA Holding (Real Estate)
- ESTA HoldingESTA HoldingSCM Estate was established in 2006 for the management of the property assets of the biggest financial and industrial Ukrainian holding - SCM Group, in the beginning of 2008 the company was renamed to ESTA Holding. The company is 100% owned by SCM Group...
- Donbass Palace HotelDonbass Palace"Donbass Palace" is the first 5-star hotel in Donetsk city that joined The Leading Hotels of the World and the Ukraine's leading business hotel in 2006 and 2007 according to the World Travel Awards Association.Donbass Palace- History :...
- Opera HotelOpera HotelOpera Hotel is the first deluxe boutique hotel launched on 20 December 2006. The hotel is located in the center of Kiev at the crossroads of the business, cultural and historical districts, not far from Kiev Opera Theatre and St. Vladimir's Cathedral. The hotel was built in 1906 and is an...
Mining Machines (Heavy Engineering)
- Druzhkivka Machine-building Factory
- Horlivka Machine-builder
- Donetsk Energy Plant
- Donetsk Mining Machines
- Kamensky Machine-building Factory (Russia)
- Engineer-Technical Center "Mining Machines"
- "Mining Machines - System of Quality"
United Minerals Group (Clay production)
- Druzhkivka Ore Department
- Vesko
- Fire-restraining ore
Ukrainian Pharmacy Holding (Pharmaceutical Retail)
-
- Zdravitsa pharmacy chain
- Dobri Liky pharmacy chain
- Tsentralnaya pharmacy
Portinvest Holding (Transportation)
- Avlita StevedoreStevedoreStevedore, dockworker, docker, dock labourer, wharfie and longshoreman can have various waterfront-related meanings concerning loading and unloading ships, according to place and country....
Company (SevastopolSevastopolSevastopol is a city on rights of administrative division of Ukraine, located on the Black Sea coast of the Crimea peninsula. It has a population of 342,451 . Sevastopol is the second largest port in Ukraine, after the Port of Odessa....
) - Marine Industrial Complex
Sports and Entertainment
- FC Shakhtar DonetskFC Shakhtar DonetskFC Shakhtar Donetsk is a Ukrainian professional football club from the city of Donetsk. Shakhtar has appeared in several European competitions and currently is often a participant of the UEFA Champions League. The club became the first Ukrainian club to win the UEFA Cup in 2009, the last year...
- Donbass Arena
The business of Rinat Akhmetov are possibly best known for being the owners of the Ukrainian Shakhtar Donetsk Football Club
FC Shakhtar Donetsk
FC Shakhtar Donetsk is a Ukrainian professional football club from the city of Donetsk. Shakhtar has appeared in several European competitions and currently is often a participant of the UEFA Champions League. The club became the first Ukrainian club to win the UEFA Cup in 2009, the last year...
, which plays regularly in European competitions and is the winner of 2009 UEFA Cup 2009 UEFA Cup Final
2009 UEFA Cup Final
The 2009 UEFA Cup Final was the final match of the 2008–09 UEFA Cup, the 38th season of the UEFA Cup, UEFA's second-tier club football tournament. It was also the last final to be held under the UEFA Cup name, as the competition was rebranded as the UEFA Europa League from the 2009–10 season...
.
Development plans
The company declares its plans to become an international business and is expanding into Europe and the USA. SCM has recently repaied $545 million loan raised in 2007 to help fund its business expansion.SCM Group majour businesses also actively borrow on international markets with Metinvest raising $1.5 billion facility in 2007 and $700 million loan in 2010
and DTEK raising $150 million loan in 2008
In November 2010 the group announced plans to enter two or three new business sectors and invest $10billion over the next decade in its business organic growth alone.