Zaporozhye Aluminium Plant auction cancelled, but eyed for industrial park: Ukraine official

As a nation severely affected by the ongoing geopolitical crisis with its neighbouring country, Ukraine's Head of the State Property Fund, Vitalii Koval, believes that the Zaporozhye Aluminium Plant (Zaporizhzhia Aluminium Plant) will appeal to investors primarily as a site for industrial development.

Vitalii Koval, a key figure in the State Property Fund, shared his insights, as reported by NikVesti. Koval stated that the State Property Fund cancelled the auction for the sale of the Zaporozhye Aluminium Plant (ZAP) after three unsuccessful attempts.

Vitalii Koval said, "ZAP is certainly of interest to potential investors. Especially as a brownfield site with developed infrastructure. This opens opportunities to create new industries, contributing to the region's economic development."

However, he also expressed his hopes of not ruling out the probability that aluminium production will recommence there, but it requires significant investments.

The Zaporozhye Aluminium Plant currently bears a debt of 6.44 billion hryvnias. It was formerly Ukraine's sole producer of primary aluminium and is now facing severe financial difficulties, mainly due to Russian investments.

Koval said, "The restoration of aluminium production, although it requires significant investments, is also quite real. Security zones, access infrastructure, and infrastructure to supply electricity create favourable conditions for this. The key success factor will be attracting a pro-Ukrainian investor ready to invest funds and efforts to revive the enterprise."

"It is clear that a stable raw material base is necessary for the full recovery of aluminium production. This involves the creation of vertically integrated supply chains, including restoring the Mykolaiv Alumina Plant (MAP) and ensuring bauxite supply. The State Property Fund manages the nationalised plant. We maintain its working condition. Now, its activities are suspended due to the blockade of Mykolaiv seaports and the risks of shelling. These circumstances make it impossible for it to function fully now."