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2020 Transformation Programme brings in 3.8 bil. RUB to UMMC

03/22/2021
2020 Transformation Programme brings in 3.8 bil. RUB to UMMC

UMMC has summarized the transformation programme’s results for the year 2020. UMMC has reaped 3.8 bil. RUB of economic benefits (with 3.2 bil. RUB planned) due to the collected efforts of all Holding’s enterprises. The programme encompassed eight plants: JSC “Chelyabinsk Zinc Plant”, JSC “Sibir-Polymetals”, “Nova Zinc” LLP, JSC “Coal Company “Kuzbassrazrezugol” (“Bachatsky”, “Kaltansky” and “Krasnobrodsky” branches), “Cable Alliance Holding” Corp. (JSC “Elektrokabel “Kolchuginsky Plant”), JSC “Uralelektromed”, PJSC “Gaisky GOK” and JSC “Uchalinsky GOK”.

Over the course of the year, the teams at the plants developed and launched 114 initiatives across the technical, technological, cross-cutting and organizational aspects of the work. All were aimed at yielding net profit or saving costs. The personnel engaged in developing and delivering the initiatives receive incentive payments (5% of the amount of economic benefits secured). The size of the bonus fund at the end of 2020 consisted of 177.3 mill RUB, over 10,000 bonuses were awarded to personnel.

The highest-return initiative of the past year was launched at “Nova Zinc” LLP, where engineers from the Development Department alongside the plant’s beneficiation team successfully implemented an increase on the load on grinding mills. With the aid of a Short Interval Control tool the team identified and resolved issues that prevented a rise in ore processing output. The causes of disruptions to the objective were investigated daily and corrective measures were developed. This allowed for a rise in the average load on the mills from 58 to 66 tons of ore per hour, which provided “Nova Zinc” with an annual return of 145.5 mill. RUB.