Ukraine has sold its state-owned Ukrainian Scientific Research Institute of Special Steels, Alloys, and Ferroalloys in Zaporizhzhia through an online auction for Hr.21 million (almost $500,000).
Zaporizhzhia, in southern Ukraine near active frontlines, faces frequent Russian missile and drone strikes, disrupting industry and everyday life.
Despite the war, the asset sold for twice its starting price. The buyer is Ukrainian welding electrode manufacturer PlasmaTech, with subsidiaries in Asia and Canada.
Three bidders competed for the institute, pushing the price from Hr.8.7 million ($206,000) to Hr.17.5 million ($414,000), according to ProZorro.Sales, Ukraine’s public platform for transparent state asset auctions.
The buyer paid twice the starting price after a three-round auction.
The buyer will also pay Hr.3.5 million ($83,005) in value-added tax (VAT), taking the total value to about Hr.21 million (about $497,000), the State Property Fund of Ukraine (SPFU) said in a press release.
The auction was won by Technological Synthesis Ltd, owned by Viktor Slobodyanyuk, who also owns PlasmaTech. The company describes itself as a leading producer of welding materials in Eastern Europe and Central Asia.
Technological Synthesis is registered in Ukraine’s Vinnytsa region, according to a Ukrainian business database, while the Chesno non-profit organization lists Slobodyanyuk as a local Vinnytsa politician between 2006 and 2010.
In 2010, Slobodyanyuk was affiliated with the “Party of Regions,” the political party of former President Viktor Yanukovych. Yanukovych’s refusal to sign a free trade agreement with the EU in 2013 sparked massive protests that left 107 peaceful demonstrators dead.
What is the Zaporizhzhia Research Institute?
The purchase includes 11 real estate units, four vehicles and specialized equipment from 1978-1994, and 720 items of machinery, furniture, and inventory.
The buyer must settle wage arrears and budget debts within 12 months and maintain the current staff for six months, the press release says.
The institute was founded in 1994, employs 29 people as of 2025, and specializes in research and experimental development in natural and technical sciences. It also produces steel and ferroalloys, and conducts metal processing and powder metallurgy, according to data from business registry Opendatabot.
In 2024, it reported a revenue of Hr.12.1 million ($286,000) and a net loss of Hr.3.7 million ($88,000). Quarterly data for the first three quarters of 2025 show revenue of Hr.8.4 million ($199,000), a net loss of Hr.2 million ($47,000), assets of Hr.8.7 million ($206,000), and liabilities of Hr.25.1 million ($594,000).
According to Opendatabot, the institute also carries wage debts and 36 active enforcement proceedings.
Who is the buyer, PlasmaTec?
PlasmaTech is a manufacturer of welding electrodes, with monthly production exceeding 4,000 tons, according to YouControl. It has been operating in Ukraine since 2001.
The group also includes Bereznefarfor LLC, Western Kaolin Company LLC (engaged in the development and extraction of kaolin), Technological Synthesis LLC (a scientific laboratory focused on developing and implementing new technologies), and the Zelena Dibrova Children’s Sanatorium.
The overall PlasmaTech portfolio consists of 29 LLCs, according to YouControl.
The company’s website says it has 1,600 employees and that the group consists of 6 production enterprises. It also has a representative office in Canada and has launched a factory to produce welding electrodes in Uzbekistan.
The company’s website also states that it is represented in Poland and Kazakhstan.