Business turnaround
Successful transformation in the steel industry
Asia
|
2018-2019
Over US$350 million EBITDA improvement identified.
Planned ROCE improvement from -7% to >10%.
250 improvement assessments made.
Deployed 40+ 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 a 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 and finalized integrated turnaround plan.
Highlights
- Identified more than US$350 million in EBITDA cash flow generation (80% achievable with no CAPEX).
- Saved over US$80 million in first year of implementation.
- Targeted 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.