Business turnaround
Successful transformation in the steel industry
Asia
|
2018-2019
Over US $350M+ EBITDA improvement identified
Planned ROCE improvement from -7% to >10%
250 improvement assessments made
Deployed 40+ Subject Matter Experts (SMEs) across disciplines
Challenges
- Declining finished steel product prices.
- Declining demand for steel products in domestic market.
- Growth in domestic competitive capacity creating oversupply.
- Unconstrained entry and competition from imports.
Solutions
- Formed Turnaround Steering Committee and PMO to identify and develop an integrated turnaround plan of internal and external improvements to deliver the highest value with the least capex.
- Deployed world-class SMEs, experienced both in technical and business turnaround.
- Baselined, benchmarked, and analyzed gaps in performance.
- Created prioritized initiatives to improve performance and close gaps.
- Developed initiatives into execution plans, finalized integrated turnaround plan.
Highlights
- US $350M+ in EBITDA cash flow generation identified (80% achievable with no capex).
- US $80M+ saved in first year of implementation.
- Target and planned result to increase ROCE from -7% pre-turnaround to >10% post-turnaround.
- Deployed hand-picked team of 36 Hatch SMEs tailored to the steel making processes and specific whole-of-business turnaround requirements of the client.
- Sixteen workstreams across the business assessed gaps in over 400 KPIs, and prioritized best early value opportunities.