The Info Day devoted to summing up the 2016 year results of the Transformation Program has taken place today at Kazatomprom National Atomic Company with participation of the top management of Samruk-Kazyna JSC, the company’s staff and subsidiaries, representatives of the Corporate Center and Mass Media.
Reports on the results achieved, further plans and tasks have been presented by the Chief Executive Officer Askar Zhumagaliyev and other chief officers of the company.
«This is the first year of changes for the company under Transformation Program. But within this period, we have already executed a number of projects which allowed us not only maintaining positive operational and financial performances but providing their growth. Particularly, so far we managed to increase our revenue more than 2.5 times in comparison with the past year», said Askar Zhumagaliyev
In 2016, Kazatomprom reviewed its business processes, approved a new organizational structure, activated processes for diversification and automation of production, privatization of non-core assets, and strengthened its relations with partners.
Particularly, Kazatomprom together with Chinese partners started FA manufacturing plant construction. The enterprise is expected to produce 200 tons of nuclear fuel for Chinese NPPs.
In 2016, significant agreements were signed with foreign partners. Kazatomprom and CAMECO agreed on the restructuring of JV Inkai LLP and increase of Kazatomprom’s participatory interest in the joint venture from 40 to 60% in 2018, with Rosatom – on fulfilment of a Comprehensive Program for Kazakhstan-Russian Cooperation and break-even operation of Uranium Enrichment Center. Agreement with CGNPC supposes procurement of Kazakhstan fuel pellets for Chinese NPPs till 2024.
As a pilot project, Digital Mine system was put into operation at Kazatomprom-Sauran LLP, the production enterprise of Kazatomprom. Experience showed that the time for equipment diagnostics reduced from 14 to 2 days, consumption of energy, materials and reagents reduced by 10%, time of reduced working capacity of wells decreased threefold. In 2017, this system is expected to be introduced at other subsidiaries.
It should be noted that due to measures for production cost decrease the economic effect for 2016 made up KZT 13 bln.
Besides, Kazatomprom finished the process of incorporation of a trading company «TH Kazakatom AG». Closeness to clients, sales flexibility in defining deal terms and prompt response to market changes will allow the company to strengthen its marketing function.
To increase Kazatomprom’s value, 20 non-core enterprises were withdrawn from the company, and offices of 13 S&A were relocated from Almaty to uranium mining regions in the south of Kazakhstan.
HP Policy is the key element of Transformation Program implementation. Introduction of a competitive selection of employees, new organization structure and approval of a comprehensive education program will help Kazatomprom to provide a qualified staff inflow, good working conditions and salaries, career growth opportunities.
All initiatives and processes developed under Transformation Program were included into the portfolio comprising of 26 projects to be completed by 2018. They are supposed to bring Kazatomprom the economic effect of over KZT 130 bln by 2025.
Together with the head office, 12 subsidiaries participate in the Transformation Program, which is more than 19,000 employees of the Holding.