Annual Report & Accounts 2012


The Group’s strategy is focused on developing a sustainable business model. We aim to ensure excellent long-term results while maintaining best practices in operational management and corporate governance and a conservative financial policy.

The lynchpin of the Group’s stability lies in having an effective and balanced value creation chain, from low-cost production of raw materials to the manufacture of unique steel products with high added value. The platform for sustainable, consistent growth that has been created over the last decade offers the necessary flexibility and capacity for tackling key strategic and operational tasks.

Vladimir Lisin

Chairman of the Board of Directors, Chairman of the Strategic Planning Committee

Our strategy is focused on retaining the trust of our shareholders by providing consistently high financial returns and complete business transparency. The Group has a considerable number of opportunities to achieve this goal thanks to the creation of a platform for sustainable growth.


1. Maximize cost-efficient upstream integration into key resources

Develop extraction and production processes; reduce consumption of potentially limited raw materials for which integration is absent or incomplete.

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2. Improve cost-effectiveness

Deliver maximum level of potential for increasing the efficiency of production through investment programmes and operational efficiency.

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3. Develop promising segments

Maximize financial outcomes by entering promising product, regional, and industry segments, increasing our market share in each.

Continuously improve product quality and develop competitive technological advantages.

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4. Maintain efficient and sustainable growth

Cost-effective production and sales growth.

Maximize capacity utilization.

Protect the value generated in the initial process stages through the manufacture of higher value added products.

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5. Operate in a safe, socially and environmentally responsible manner

Ensure manufacturing process complies with the highest occupational health and safety standards.

Systematically minimize environmental impact.

Create a positive social environment both onsite and more widely in the regions in which we operate.

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