Failure to privatize "Sumykhimprom" for the third time: no buyers found even after price reduction

The State Property Fund of Ukraine failed for the third time to sell the state-owned stake in one of the country's largest chemical enterprises, JSC "Sumykhimprom". The privatization auction scheduled for October 13 received no bids from any potential buyer, even though the starting price of the asset was reduced compared to previous tenders.

This is evidenced by the results of the electronic auction in the "Prozorro.Sale" system.

99.9952% of Sumykhimprom shares were put up for sale with a starting price of UAH 1.005 billion. Bids were accepted until 20:00 on October 12, but no participant registered. As a result, the auction received the status "Did not take place".

The State Property Fund of Ukraine organized the auction. 1,738,665,246 shares of the enterprise with a nominal value of UAH 434.67 million were offered for sale.

Three attempts to sell ended without result

The state has been trying to find an investor for "Sumykhimprom" since 2025. The first auction was scheduled for June 11, 2025 with a starting price of about UAH 1.158 billion. However, the auction did not take place due to the absence of participants.

A repeat attempt was organized on January 13, 2026. The starting price was then reduced to UAH 1.088 billion, but again no one was willing to purchase the enterprise.

Before the third auction, scheduled for October 13, the initial price was reduced to UAH 1.005 billion — approximately UAH 153 million less than in the first attempt.

Despite this, the sale again did not take place. Thus, the state has not received any proposal to purchase a controlling stake in the chemical enterprise.

The privatization project involves not only buying shares, but also fulfilling a number of investment and social obligations.

Buyer must invest in plant modernization

Under the privatization terms, the new owner must preserve the main activities of the enterprise and invest at least UAH 150 million in technical re-equipment and modernization of production.

Also, the investor must:

• within six months repay wage and budget arrears;
• repay debts to the Pension Fund and overdue debts to creditors, with stipulated exceptions;
• ensure social guarantees for employees and prevent their dismissal during the first six months;
• comply with environmental requirements and preserve protective structures.

Therefore, the actual financial obligations of a potential buyer significantly exceed the starting price of the shares, as they involve additional investments and settlement of the enterprise's debts.

Sumykhimprom's debts exceed its privatization value

The financial position of the enterprise remains difficult. According to the annual report of JSC "Sumykhimprom", as of December 31, 2025, the company's accounts payable amounted to UAH 4.135 billion.

This is more than four times the starting price of the state stake at the October auction. However, not all of the debt should automatically be treated as a buyer's obligation to repay immediately: the procedure for its settlement is determined by the privatization conditions and current legislation.

In 2025, the enterprise received UAH 129.2 million in net revenue from product sales, while net loss amounted to UAH 405.7 million.

In its report, Sumykhimprom's management attributes the losses to prolonged downtime, lack of working capital, debts for gas and electricity, and restrictions on ammonia purchases.

Due to the difficult security situation in Sumy Oblast, the enterprise could not implement the planned production program for complex mineral fertilizers. During 2025, only one of the sulfuric acid workshops worked for two months, and at the end of the year production units were idle.

The enterprise also reported difficulties in obtaining loans due to a negative credit history.

These circumstances indicate significant financial and production challenges for a future investor. There are no official explanations from potential buyers about the reasons for not participating in the October auction.

State has not yet found an investor for large chemical complex

Sumykhimprom has been operating since 1953 and is one of the largest enterprises in Ukraine's chemical industry.

Its production specialization includes mineral fertilizers, titanium dioxide, sulfuric acid, industrial pigments and other inorganic chemicals.

The complex includes production, storage and administrative facilities, as well as transport and engineering infrastructure.

For a long time, privatization of the enterprise was complicated by litigation related to bankruptcy and reorganization. In 2023, the Commercial Court of Sumy Oblast closed the bankruptcy proceedings, after which the state regained control over the enterprise and intensified preparations for sale.

In 2022, the plant also suffered from Russian shelling, which caused an ammonia leak and subsequent shutdown of production.

After the third failed privatization attempt, Sumykhimprom remains under state control. The date of the next auction and possible changes to its terms have not yet been announced.

As previously reported by "Kurs Ukrainy", in October the State Property Fund also plans to hold auctions for the privatization of Odesa Portside Plant, "Motordetal-Konotop" and Demurynsky Mining and Processing Combine.

Based on materials from: Prozorro.Sale, State Property Fund of Ukraine, annual report of JSC "Sumykhimprom" for 2025