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REFERENCE

Diagnostic, evaluation and restructuring plan for the Iron and Steel Plant of Novo Lipetsk (NLMK)

Russian Federation
Business activity : Metallurgy - Siderurgy
Area of Excellence : Operational adviceStrategy implementations

Objectives ef the project :

  • To develop an overall restructuring programme for NLMK Iron and Steel Plant (iron and steel flat products) employing 46 000 people, to prepare the introduction of one or several private investors.
 

Approach implemented :

  • Preparatory phase : general data gathering, adaptation of methods according to case specificity, constitution of data banks, development of simulation templates, preliminary sector study, specific training for the international and Russian experts (project specifics, technical factors, restructuring process, project management, methods and tools, cultural aspects), methods and tools finalization.
  • Phase 1 : Diagnostic
    • Functional : assessment of NLMK industrial, commercial and management handicap compared with the sector international standards, identification of main actions to be implemented
      • Assessment of technological level and process
      • Analysis of the main functions
      • Identification and analysis of dysfunctions
      • Study of internal and external constraints
      • Analysis of customer-supplier relations
      • Determination of the technological gap, reorientation of the investment plan
      • Analysis of the human resources
      • Legal and economic limitations
    • Financial : assessment of the financial handicap compared with international standards of management, identification of its financial, economic or structural reasons
      • Analysis of the accounting and finance function
      • Analysis of the financial balances and profitability compared with international standards
      • Determination of the necessary financial reorganization measures and ot the shareholders equity structure most adapted for the introduction of partners
      • Constitution of the database necessary for the valuation of the reorganization plans
    • Strategic analysis : existing strategic plan, market and competition, place of the company at national level
    • First set of short and medium term recommendations
  • Phase 2 : Sector study and analysis of politic and economic orientations
    • Analysis of the worldwide steel industry and its components, economic orientations, supply and demand structure
    • Analysis of national orientations in the context of privatisation and of internal aspects (technology, partnerships, ...)
  • Phase 3 : Action plans
    • Development of reorganization scenarii, development of partnership profiles, elaboration of specification of the technico-economic studies
    • Formation of the action plan, estimate of the required resources
    • Synthesis of the sector positioning, assessment of recommendations impact, formalisation of redeployment strategy, development of implementation strategy and accompanying measures


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