Metalloinvest presents updated Development Strategy
26 April 2019
Metalloinvest, a leading global producer and supplier of HBI and iron ore products, and one of the regional producers of high-quality steel, has updated its Development Strategy.
The Strategy aims to allow the Company to maintain the leading position in the metals and mining industry and continuously enhance the Company’s efficiency.
In 2015, Metalloinvest announced Strategy 2023, which aimed to strengthen the Company’s position as the global leader in hot briquetted iron (HBI) production; implement a major investment programme aimed to improve the efficiency of development and production; and increase the share of high value added products as well as improve product quality. The key operational and financial milestones of Strategy 2023 were achieved and already surpassed in 2018. These excellent results demonstrate that the Company chose the right strategic approach and created a platform to achieve long term leadership.
In Spring 2019, the Board of Directors of Metalloinvest decided to update the Strategy considering the opportunities and challenges of the new strategic cycle. The Company will maintain the direction of development which proved its effectiveness in production of high value added products as well as improving the quality of products.
At the same time, the updated Strategy focuses on production safety, the protection of employees’ lives and health, environmental protection and the digital transformation of business processes.
Metalloinvest believes its mission is to provide the global steel industry with high-quality iron ore and metallised products to boost production efficiency.
Key priorities of the Strategy:
- Supply of high-quality raw materials to reduce harmful impurities, improve product properties and reduce costs during processing
- Production safety, protection of the lives and health of employees
- Reduced environmental impact through efficient and innovative production
- Reduced emissions and waste
- Ensuring the sustainable development of the regions where the Company operates
Andrey Varichev, CEO of Management Company Metalloinvest, said: “The updated Strategy is based on an in-depth analysis of market trends. We see significant opportunities in meeting the growing global demand for high-quality raw materials for electric steel smelting. The Company has advanced, high-capacity pellet and HBI production facilities. The use of raw materials with a high iron content and low impurity levels allows our steelworkers to reduce atmospheric emissions. The focus of the updated Strategy is sustainable development. We are convinced that metallurgy should be a green and safe industry. Metalloinvest's goal is to completely eradicate workplace accidents.”
Key objectives of the Strategy:
- Increased production and improved quality of iron ore concentrate, pellets and HBI
- Increased production and improved quality of SBQ (high-quality rolled steel products)
- Maintaining leadership in the steel bridge market
- Development of an engineering and design centre
- Establishment of a centralised R&D management team
- Development of the Company’s business system
- Growth of normalised (discounting various factors, exchange rates and volatility of market conditions) EBITDA at 3% per year
- Reduced accidents, injuries and occupational illnesses
- Be a leader among Russian metals and mining companies and comply with international standards in the field of industrial safety and production culture
Metalloinvest also continues to adhere to a policy of strengthening its financial stability, aimed at reducing costs and improving the debt repayment schedule.
The Strategy will continue implementing a comprehensive development programme at Metalloinvest enterprises, aimed at increasing the quality and sales of iron ore, metal and steel products, and the digital transformation of business processes.
At Lebedinsky GOK and Mikhailovsky GOK, construction of conveyor systems for transporting iron ore (cyclical and continuous transportation technology and the crushing and conveyor facility) continues.
OEMK is implementing a comprehensive programme to increase customer focus and the quality of SBQ and plans to build ball rolling facilities and steel furnace #5, which is part of the complex steel processing facility #4.
Ural Steel continues the modernisation of blast and steel making production, the construction of medium pressure boilers in the thermal power plant, and the construction of air separation unit #6 for outsourcing in partnership with the company Linde.
Projects are being implemented at all enterprises to develop laboratory equipment, automation and mechanisation of technical servicing and repair functions.
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