Annual Report 2019

Investment programme and projects

The Company makes its contribution to increasing productivity through technical modernisation and investment in research and improving its products.

One of the Company’s main goals is to constantly improve efficiency, through making smart investments into strategic projects.

The Company has in place an approved regulation on investment management, which covers all phases and investment areas. In addition, a set of regulations has been introduced that directly regulates project activities and the implementation of major integrated programmes. In addition to the regulations, the Company uses special approaches, including investment project and post-investment control performance evaluations and risk management assessments for investment projects.

As part of its strategy implementation, Metalloinvest builds its investment policy based closely on the needs of key consumers and through upgrading facilities so that they can produce the products that are in demand. Separate key investment projects of the Company are combined into integrated strategic development programmes.

In the reporting period the Company continued with the implementation of its strategy and achieved its goals: Metalloinvest maintained a stable financial position and implemented production plans, with a rise in the production of certain items.

Total capital expenditure in 2015–2019 exceeded USD2 billion. In 2019 the Company’s capital expenditure stood at USD517 million, a rise of +17.2% y-o-y.

In the reporting period, as part of its Strategy, the Company continued to scale up production and increase the effectiveness of sustainable development practices, including the aim of reducing the negative impact on the environment. Metalloinvest strives for maximum efficiency and is constantly looking for opportunities to build capacity by investing heavily in research and work to improve its products and existing technologies. In 2019, these costs amounted to 213 million roubles, an increase of 1.7 times compared to the previous year.

Capital expenditure, 2015–2019,
USD million

Investments in research and work on improving products, 2016-2019, million roubles