PM wants to retain Turboatom under state control, some shares could be sold
Ukrainian Prime Minister Volodymyr Groysman opposes the full privatization of public joint-stock company Turboatom (Kharkiv). He said that some shares from the state-owned 75.224% stake could be sold.
"There are important enterprises as, for example, Turboatom where we manufacture unique products. I think that it is inadmissible to completely sell these enterprises," he said at a briefing after the meeting devoted to aircraft building at public joint-stock company FED (Kharkiv) on Thursday.
"If we can attract global manufacturers of the same products during the public sale of some shares leaving the state control this is absolutely normal, I think," he said.
He said that in partnership with global leaders in the sector Turboatom would have a chance to enter the global market.
He said that Ukraine has 3,500 state-run enterprises and the state is a bad manager.
Head of the State Property Fund Ihor Bilous said in an interview with Business weekly earlier this week that an option to enlarge Turboatom via the transfer of the generator production complex of Electrotyazhmash plant (Kharkiv) is being considered. A new enterprise that would compete with global leaders as Alstom and Simens could be created.
"If Turboatom is sold as it is now, Alstom and Siemens would pay $500 million for it without batting [an eyelid] and actually stop the plant," Bilous said.
He said that first the plant should be expanded and its capitalization should be increased. Then 25% of its shares could be placed on an exchange, for example, the Warsaw Stock Exchange (WSE).
"Finally the state could leave a blocking stake and the rest of the shares will be diluted among various holders," he said.
Turboatom is the sole producer of turbine equipment in Ukraine for hydro, heat and nuclear electricity stations. Turboatom specializes in manufacturing turbines for thermal and nuclear power plants, hydraulic turbines for hydroelectric power plants and pumped storage power plants, gas turbines for thermal power plants, steam and gas equipment, and other power equipment.
