OREANDA-NEWS. March 4, 2008. The leading fuel and energy business in Ukraine DTEK has signed an agreement to produce and deliver hydraulic props and advanced cylinders used in the mining business which are manufactured by Ostroj Company (the Czech Republic). The equipment will be installed at the Pavlogradskaya and Zapadno-Donbasskaya mines belonging to Pavlogradugol. The amount of the purchase totals over ?2.8m. The mechanisms will noticeably help cut maintenance costs of power support units and their useful life before the first overhaul and which furthermore exceeds by six times the lifetime of units produced in Ukraine.
 
This has been the second big equipment upgrading project at the coal assets of DTEK in 2008. In January, the company signed an agreement to produce and deliver a plough longwall set for Pavlogradugol with the global leader in this sector, Bucyrus DBT Europe GmbH (Germany). The amount of the contract totalled over ?29m.
 
DTEK buys mining equipment through a documentary L/C with post-funding. Swedbank (Ukraine) is a financial partner of DTEK in the agreement with Bucyrus DBT Europe GmbH, while the contract with Ostroj is funded by Alfa-Bank (Ukraine). “Using such a financial tool as documentary L/C helps us to make big purchases to step up the efficiency of our mine operations with a minimum withdrawal of working capital. This significantly helps us cut the price of funds raised for this goal and make them long-term”, said DTEK’s Director of Finance Yuriy A. Ryzhenkov.
 
“DTEK is working in many areas to modernize assets in line with a five-year development strategy”, said Coal Production and Enrichment Director Evgeniy Romaschin. “We are going to invest $1.1 bln into the development of the coal business by 2011. This will improve its competitiveness both in Ukraine and in the international market”.