Business Model
The existing business model ensures that the Company maintains its leading position and key advantages on the market.
Metalloinvest is:
A global player on the iron ore market
- Number two in terms of iron ore reserves globally
- Number five in terms of iron ore production globally
A company with sound financial indicators
- stable profit margin indicators
A company with a high level of vertical integration
- the world leader in the production of value-added products: number one producer of commercial HBI and number two producer of pellets;
- a high degree of raw materials processing: pellets and HBI account for 71% of its total shipments of iron ore products, while steel products with high added value make up 29.6% of all shipments of metallurgical products.
A supplier with diversified clientele and a focus on emerging markets
- direct sales to the world’s largest steel producers
- advanced logistics
| Integration | The integration of iron ore mining, its processing into high value-added iron ore products, and the production of high-grade steel products are all key competitive advantages of the Company. The Company’s mining and processing plants supply feedstock to meet the iron ore and metallised raw material needs of its metallurgical plants. | |
| Coordination and centralisation | Coordinating the production policy of enterprises and centralising sales and marketing functions makes it possible to effectively manage the production costs of enterprises and the risks associated with fluctuations in global prices for raw materials and metal products. | |
| Diversification | A diversified system of product sales enables the Company to flexibly respond to market demand and take advantage of opportunities that arise on the domestic and foreign markets. | |
| Digital transformation | The ongoing transformation of the Company’s business with a transition to Industry 4.0 standards in the future will provide significant competitive advantages due to lower production costs and improved business efficiency based on the digitalisation and automation of production processes at the Company’s mining and metallurgical plants. For more details, see the section Company’s Approach to Innovation. |
For more details on the Company’s business model, see the section Business Model of the 2018 Annual Report (pp. 36-37).
