Metalloinvest, a leading manufacturer and supplier of iron ore products and hot briquetted iron in the world market, one of the largest regional producers of high-quality steel, has presented a Strategy for Quality Changes for the period up to 2032.
“We have a clear understanding of the processes taking place in the world, our strengths and directions of development, - emphasized the General Director of the Company Nazim Efendiev at the presentation of the Strategy for employees. - Metalloinvest's mission is to be the basis for the evolution of modern metallurgy for future generations. We see our company as a world leader in high quality iron ore, metallized and steel products, creating a responsible metallurgy of the future through open partnerships. Metalloinvest's products are at the heart of the metallurgical industry's movement towards the introduction of green technologies and a reduction in carbon footprint. "
The basic principles of the Strategy are Quality, Environment, Partnership and Development.
Strategic priorities of the Company: increasing sales margins, increasing operational and managerial efficiency, sustainable development.
Safe and comfortable working conditions remain Metalloinvest's key production priorities. 2021 has been declared the year of Industrial Safety. Measures will be implemented to improve the culture of safe production, transport and gas safety programs.
The implementation of the Strategy for Qualitative Changes is planned in two stages:
Until 2026 - Optimization of the commodity balance. The goal is to increase margins and ensure sustainable sales in highly profitable markets by achieving compliance of production capabilities with the maximum market requirements. It is planned to bring the quality of iron ore raw materials to the level of the best world standards, increase the production of pellets, hot briquetted and direct reduced iron (HBI /DRI), and expand our presence in niche markets for steel products.
Until 2032 - Global leadership. The goal is to strengthen the leading position in the production of high quality iron ore, metallized and steel products using green technologies. Large-scale research work is to be carried out to find optimal solutions for the use of hydrogen in mining and metallurgical production; production of HBI /DRI from concentrate, bypassing the stage of pellet production; realizing the possibility of strategic alliances with producers of green high-quality HBI /DRI steel.
The strategy assumes an increase in investment in the development of high-quality production. In 2021-2023 Metalloinvest plans to significantly increase its capex compared to the 2019-2020 level, which amounted to about $ 450 million.
In 2021, capex is projected at over $ 560 million, with development projects accounting for 70% of capex.
Key areas of investment and development:
Improving the quality of iron oreKey investment projects:
- completion of the construction of the concentrate re-enrichment building at Mikhailovsky GOK them. A.V. Varicheva;
- introduction of concentrate flotation technology at Mikhailovsky and Lebedinsky GOKs.
Major investment projects:
- reconstruction of roasting machines at MGOK, LGOK and OEMK im. A.A. Ugarov.
Key investment projects:
- construction of a new HBI plant on the territory of MGOK;
- Reconstruction of HBI workshops 1 and 3 at LGOK;
- Reconstruction of metallization unit 3 at OEMK.
Major investment projects:
- completion of the second stage of construction of a crushing and conveyor complex at MGOK,
- construction of cyclic-flow technology at LGOK.
Major investment projects:
- modernization of blast furnaces on the US,
- construction of an arc steelmaking furnace No. 5 and a complex steel processing unit, modernization of the equipment of section rolling shops at OEMK.
Metalloinvest also continues to implement measures of the Environmental Program with an investment volume of 22.3 billion rubles and energy efficiency programs with investments of 23.5 billion rubles.
As part of the Strategy, the transformation of business processes based on digital technologies will continue. Projects covering all aspects of the Company's activities are at various stages of implementation: from the production chain, work in the quarry and industrial safety, to procurement, analytics and employee health monitoring.
