Expanding the presence and increasing the efficiency

The Board of Directors of the Management Company of theMetafrax Group has approved a strategy for adapting the business to new conditions for the period until the end of 2024.

As the main task at the current stage the management of Metafrax Group has identified adaptation to changing market conditions, in order to maintain positions in thedomestic markets and to reorient the geography of export supplies.

Levon Garslyan, Director of Strategy and Investments of theMetafrax Group, explained, that this the strategy defines the general lines of the adaptation system. The first of them is the elaboration of a new sales geography and the corresponding logistics infrastructure at theforeign markets in conditions of high competition between the countries and sanctions' pressure.

- We develop a systematic approach to find new markets. The Strategic Development Department communicates closely with the relevant departments in the Management Company, and, if speaking on transactions, - withthe traders. Together we analyze each country, in whichthe transaction was made. We jointly assess and remove risks. We understand that we must guide the project and not to loose sight of it until it is successfully implemented," Levon Garslyan said.

The second strategic line is to maximize efficiency in the short term to preserve opportunities for future growth.

- In our strategy, we advocate a reasonable revision of expenses. At the same time, there is a strict condition – we do not touch personnel.For example, we have set up the project "Lean Manufacturing", which helps to save money, - said the Director of Strategy and Investments.

Methanol is still one of the main businesses of Metafrax. The target is to expand the presence at the Russian market with various products.

- We also still try to maintain the status of the resin company N 1. Metafrax should render thehigh-quality services and have the best formulae," Levon Garslyan said.

In the coming months Metafrax is completing the implementation of the largest investment project in its history – the construction of the AUM (ammonia-urea-melamine) Complex at the production site in Gubakha.In the new conditions this project is extremely relevant.

- Initially, theAUM Complex was built to provide Metafrax with its own raw materials, but now the Company has a variability: what is more profitable in terms of margin? For example, to process urea or sell it on the market, - said the Director of Strategy and Investments.

For the successful implementation of the adaptation strategy, the holding has created a system that provides bonuses for employees involved in thesolving of important strategic tasks.