Kazatomprom starts implementation of 26 projects as part of Transformation
This is what the company’s CEO Askar Zhumagaliyev declared at the meeting of Business Modernization and Transformation Board, representing the key results of Transformation Roadmap for the current year to the Chairman of the Management Board of Samruk-Kazyna JSC Umirzak Shukeyev.
“As we conducted the benchmarking and compared ourselves with the competitors, we identified our weak points and started to strengthen them. To improve the company’s efficiency, we took a number of specific measures and developed a projects portfolio, the implementation of which will let us getting the economic effect of over KZT 130 bln. by 2025,” told Askar Zhumagaliyev.
The projects implemented for a short period of time let the company not only keep positive production and financial performances, but provide their dynamics. The company is in the process of production automation, it put the Situation Centre and Digital Mine information systems into operation, a trading company was incorporated and foreign representative offices in China and Russia were optimized. 26 non-core assets were disposed and 8 more are planned to be sold till the end of the current year. The offices of 13 enterprises have been relocated to uranium mining regions, and the company started preparation for FA production plant construction.
The Chairman of the Management Board Askar Zhumagaliyev noted that all these results have been achieved owning to high qualification of Kazatomprom’s staff. Adequate conditions of labor and salary, possibility for their growth will continue to be the key element of Transformation Program implementation.
It should be noted that all initiatives and processes developed at the preliminary stage of transformation, entered the projects portfolio which will be implemented in the nearest future.
Kazatomprom expects large changes in investments and procurements management, strengthening of the commercial function, changes in organizational structure, and processes automation. For example, for ensuring centralization and transparency of supply of goods, works and services a new procurement model will be introduced allowing saving KZT 34 bln in the near future.
In total, there are 26 projects in the portfolio. They are planned to be implemented by the end of 2018 and will bring Kazatomprom the economic effect in the amount exceeding KZT 130 bln by 2025. It should be noted that this amount exceeds the expenses of these projects tenfold.
The Head of the Fund and the Chairman of the Management Board of NAC Kazatomprom JSC signed the Transformation Roadmap for year 2017. In his turn, Askar Zhumagaliyev delivered the Plans of personal participation in transformation for year 2017 to managers of all 26 projects.