EquityStory.RS, LLC-News: ChelPipe Group
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ChelPipe's Board approves risk management framework
31 March 2020
On 30 March 2020, ChelPipe Group's Board of Directors (including its three independent directors) held an ad hoc meeting chaired by Andrey Komarov, at which it reviewed and approved the Company's Risk Management Concept, which is designed to further improve the risk management framework in line with best international practices. The Board also reviewed and approved the risk matrix for 2020, which includes potential corrective measures that aim to make the business more sustainable amid market volatility and the coronavirus pandemic.
ChelPipe Group are closely monitoring the market and have established a crisis management office headed by the CEO, which is responsible for the development and implementation of anti-crisis measures to maintain the sustainability of the business and to ensure the health and safety of all personnel.
Under ChelPipe Group's approved strategy to 2024, the Company is focused on maintaining its competitive advantages and implementing an operational efficiency programme that aims to achieve savings of RUB 5 billion compared to 2019. The comprehensive set of activities are expected to reduce administrative costs, optimise maintenance, repair, power supply and logistics processes, and integrate digital solutions to increase the in house production of pipe billets. The Company also plans to continue its investment programme by adopting a flexible approach to capex depending on the market environment.
ChelPipe Group's diversified customer base, which includes more than 5,000 companies from the fuel and energy sector, petrochemical, mechanical engineering, energy and other industry companies from Russia and abroad, makes Group's business resistant to global market fluctuations. In the new market reality, the Company will focus even more on bolstering export sales and offering customers high value added products, as well as on further strengthening vertical integration.
CEO of ChelPipe Group Boris Kovalenkov said:
"Management's top priority right now is the health of our employees. ChelPipe Group is committed to Vision Zero global principles and we were one of the first employers in Russia to send more than 80% of our office personnel to work remotely. Business trips in Russia and abroad have been cancelled, and we have recommended that our employees to refrain from any personal travel. Personal meetings have been replaced by conference calls, and shifts on our sites are planned to minimise personal contact. We have devoted special attention to our older employees, who have been relieved of their normal work duties and are staying home on paid leave. In addition, our production sites are equipped with disinfecting devices; and additional disinfectants are being used to sanitise our premises. ChelPipe Group continues internal communications on the measures being taken to prevent viral infections and is operating a hotline based in our in-house "Vsya Medicina" corporate medical centre."
From 30 March to 3 April 2020, most of our employees will take a week off from work pursuant to Vladimir Putin's Executive Order. However, the Company has several continuous operations that cannot be shut down or suspended, and these facilities will continue working. Staff presence at our production sites has been minimised for this period.
Head of ChelPipe Group's press service
+7 495 775 35 55 ext. 44 89
+7 982 610 85 07
+7 985 410 35 44
ChelPipe Group is a major player in the Russian metals market with a highly diversified customer base. In 2019, the Company accounted for 18% of total shipments by Russian tubular product makers. The Company's share in the high-margin segments of OCTGs and large-diameter pipes was 19% and 31%, respectively.
ChelPipe Group is a ferrous metals company running Chelyabinsk Pipe Rolling Plant, Pervouralsk New Pipe Plant, a warehouse complex for selling tubular products in Russian regions, scrap metal collector META, a trunk pipeline division comprising SOT, ETERNO, and MSA (Czech Republic), and an oilfield services division operating under the name Rimera Group.
Thanks to the use of safe technologies and materials, ChelPipe Group's upgraded facilities boast a small environmental footprint and green products. The Company also supports social programmes and helps its employees maintain a healthy lifestyle.
31.03.2020 MSK Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
|5, Lesnaya St., Bld. V|
|Phone:||+7 (495) 775 35 55|
|Listed:||Foreign Exchange(s) Moscow|
|EQS News ID:||1011461|
|End of News||EquityStory.RS, LLC News Service|
1011461 31.03.2020 MSK