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. 

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