European investors show interest in Mariupol shipyards – expert

As the situation in the conflict zone in eastern Ukraine is stabilizing, there is an ever stronger interest of foreign investors in Ukrainian assets, according to MC MIG Executive Director Oleg Ivanyushenko.

"As it's getting calmer in Mariupol, European investors' feedback is growing. The highest interest is demonstrated not by specialized but financial investors, interested in investing in a promising project amid 'the troughs of activity.' We are ready to consider different options of forms and investment tools, starting with long-term lending to participation in equity capital. Of course, the implementation of all of these options will depend primarily on the position of the government, including on how it sees the future of the plant," Ivanyushenko said.

In view of the current situation and close proximity of the enterprise to the conflict zone, MC MIG has hired a global strategy consulting firm, Roland Berger Strategy Consultants, to assist in elaborating a strategy for Azov Shipyard's development. The strategy envisages investment worth over $10 million in the enterprise in a five-year period. This will allow the enterprise to boost efficiency by two to four times in every type of the company's activity – handling, mechanical engineering, ship repairing and shipbuilding.

Azov Shipyard is the largest multi-purpose enterprise operating within the water area of the Sea of Azov, whose core business includes ship repair, modernization and building of watercraft, manufacture of engineering products and transshipment of different types of freight. Since 2010, the yard has been managed by MC MIG.