Russia-based leading steel producer Metalloinvest has presented a Strategy for Quality Changes calculated until 2032. The strategy’s basic principles are quality, environment, partnership and development.
The company’s strategic priorities are increasing sales margins, operational and managerial efficiency, and sustainable development. The implementation of the strategy is planned in two stages. In the first stage, 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. The company plans to bring the quality of iron ore raw materials to the level of the best international standards, to increase the production of pellets, hot briquetted (HBI) and direct reduced iron (DRI), and to expand its presence in niche markets for steel products.
In the second stage of the strategy, the company aims to strengthen its leading position in the production of high quality iron ore 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.
Metalloinvest plans to significantly increase its capital expenditure in 2020-2021 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 percent of capex.
The company also continues to implement its Environmental Program with an investment of RUB 22.3 billion and an energy efficiency program with an investment of RUB 23.5 billion.