Strategy of development

The main strategic targets of Magnezit Group are:

  • growth of the business value of the Group;
  • increasing of the Group's share at the markets of refractory materials and accompanying services in Russia and CIS-countries;
  • increasing of social responsibility and public significance of the Group.

The principal directions of business activity, based upon the corporate strategy of the Group, include:

  • aspiring for deep comprehension of the customers' demands on condition that the leading positions in regard to the "traditional" products at the CIS market are remained, and the positions at the market of "high-tech" products are strengthened;
  • application of complex engineering approach towards solving of customers' problems, including the whole complex of services - from design and delivery of certain types of products up to lining works and subsequent maintenance and repair of refractory linings;
  • development of flexible production system, which is able to satisfy the customers' demands and provide them with any types of refractory materials;
  • guarantee of steady high quality of products and services;
  • development of the wide regional distribution network;
  • establishing of strategic alliances with the leading foreign and Russian manufacturers of the refractory materials, horizontal and vertical integration, including the entering towards the world market;
  • training and attraction of the best specialists in such spheres as management, production, engineering and interaction with customers;
  • development of corporate culture, which should promote the self-respect of the company's employees, their personal and professional growth.

The principal directions of business activity, based upon the corporate strategy of the Group:

Marketing strategy.

The main target of marketing strategy is - growth of sales volumes on the account of optimal approaches towards pricing, distribution and promotion of products and services within the target market segments.

The main directions of the business activity, based upon the marketing strategy of the Group:

  • widening of the distribution network geography;
  • priority promotion of the Group products towards the markets of non-CIS foreign countries;
  • sector - specialization of subdivisions of distribution network according (distinguishing of the target group of managers for servicing of the customers of a particular industry);
  • introduction of individual programs of cooperation with VIP-customers, establishing of agencies within the territory of location of such customers;
  • expansion of the practice of services, connected with overall maintenance of thermal devices (Total Refractory Management).

Production strategy.

The main target of the production strategy is increasing of competitiveness of the company on the account of achievement of optimal correlation between the product's quality and costs, and also due to reduction of production cycle.

Production strategy is based upon the prediction of development tendencies at the markets of refractory materials and accompanying services in Russia and CIS-countries.

Priorities of the business activity, provided by the production strategy of the Group:

  • overall modernization of the available technological processes, targeted for gradual rejection of mass production of the rather limited range of products;
  • development of flexible production lines, which should provide an opportunity of operative answers towards the customers' demands; and should allow to manufacture both small and large lots of products;
  • development of the company's own raw materials base, including the development of "Goluboe" deposit in Krasnoyarsk Region;
  • introduction of energy-saving technologies.

Investment strategy.

The main target of the production strategy is efficient support of realization of functional strategies, which are carried out within the framework of corporate strategy of the Group.

Within the process of development of the Group investment strategy the following aspects were determined:

  • priority directions for investments, complexes of investment measures (projects) targeted for conquering and strengthening of market positions of business in the midterm and long-term outlook;
  • optimal distribution of resources among the investment directions, in regard to performing a task of minimization of risk and maximization of profitability (return) of capital, spent for investment projects.

Investment strategy is considered by the leaders of the Group as one of the main factors, guaranteeing the efficient development of the company.