ChelPipe Group’s BOD Adopts Company Strategy for 2020-2024

5 February 2020 (09:08)

UrBC, Yekaterinburg, February 5, 2020. ChelPipe Group’s Board of Directors adopted the company’s development strategy for 2020-2024 and proposed two candidates for the positions of independent representatives. The candidates will have to be approved of (or otherwise) at the upcoming shareholder meeting, the company’s press service reports.

‘The company’s new strategy aims to ensure consistent and sustainable business development through transforming ChelPipe Group into a customer-oriented company. The strategy dwells on increasing high value-added product supply, gradually building the shares of the Group’s adjacent markets, expanding customer base in geographical terms, and becoming more operationally efficient,’ the Group says.

The strategy’s key goals and expected outcomes are:

a) a focus on the development of promising product segments outside the fierce-competition scope and an increase in the high value-added niche produce output;
b) at least a 2.5% annual drop in total non-resource based costs;
c) unfailingly high EBITDA figures;
d) a more diverse product portfolio, more varied sales channels, and 25% or more of revenues coming from exports;
e) ongoing decrease of debt burden so that the net debt/EBITDA ratio drops to below 1.5x;
f) improved structure and quality of corporate governance, more transparency, and ChelPipe Group’s enhanced investment appeal.

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