Coal producer Alpha Natural Resources announced Tuesday a new strategic plan to realign the company's focus and financial position. Kevin Crutchfield, chairman and CEO of Alpha Natural Resources, said, "We're taking a long-term view of the thermal coal market, and we believe there are solid opportunities for diversified suppliers like Alpha to produce and sell thermal coal profitably into a smaller domestic market and to customers in new markets overseas. At the same time we have a big opportunity to advance Alpha's position as a premier supplier of metallurgical coal. Forecasts point to more than 100 million tons of increased seaborne metallurgical coal demand by the end of this decade, and persistent structural supply limitations exist on sources of high-quality metallurgical coal. We intend to participate meaningfully in the market upside with costs that are globally competitive."
Included in the plan is growing the company's global presence due to new steel mills being planned or constructed in developing areas of Asia, South America and elsewhere. Despite the new developments, Alpha said there are persistent structural limitations globally on sources on high-quality metallurgical coal.
Additionally, to align with its smaller production footprint, Alpha's four existing operating regions will be consolidated into two. The realignment will allow these units to reduce operational overhead while enhancing effectiveness. Executive and administrative support for the smaller number of operating properties within these units will be consolidated and proportionally scaled between now and early 2013, resulting in permanent overhead savings.
Brian Sullivan, currently president of Alpha Australia LLC, will transfer back to the United States to fill the vacant position of chief commercial officer (CCO), a post held by Paul Vining before he was named Alpha's president. Sullivan will be responsible for all global sales and marketing activities.