Kazatomprom’s Trasformation Program has been officially launched during the ceremonial meeting in Astana.
In the presence of the Chairman of the Management Board of JSC “SWF “Samruk-Kazyna” Umirzak Shukeyev and the Chief Business Transformation Officer of JSC “SWF “Samruk-Kazyna” Adamas Ilkyavichus, the CEO of NAC Kazatomprom JSC Askar Zhumagaliyev declared the start of transformation. “Of course, the start of transformation in Kazatomprom is a significant milestone in the development of the Fund’s group of companies. We have made great efforts to launch this process in Kazatomprom properly and in due time. Thus, we have already identified long-term aims and initiatives of Kazatomprom’s Transformation Program, which are reflected in the new strategy approved by the Board of Directors,” said U. Shukeyev. He noted that Kazatomprom’s new strategy specifies such key development tasks as the increase of the Company’s cost threefold by 2025. “Such ambitious aims are clearly impossible to reach within 1-2 years. Transformation is a long-term process and we plan to start getting benefits from its implementation since year 2018,” U. Shukeyev underlined.
During the presentation of Transformation Program Askar Zhumagaliyev told about its main tasks, changes to be made, and expectations from its implementation. According to the Company’s CEO, the first step within transformation has been the renewal of Kazatomprom’s development strategy. The Company should maintain its leading position in uranium mining and become a leading supplier of natural uranium on the world market, diversify production into the stages of the front-end nuclear fuel cycle. Particularly, fuel assembly production is planned to be developed.
As A.Zhumagaliyev said, production diversification will allow the Company to get additional profit from the sale of the end products for nuclear power plants.
Much attention is to be given to marketing function strengthening, specifically, a trade company is planned to be established by analogy with large international uranium producing companies that will sell Kazatomprom’s products.
Transformation also assumes the enhancement of the production activity efficiency. Along with the technical re-equipment and replacement of the out-of-date equipment attention will be given to introduction of modern developments and technologies, as well as energy efficiency increase.
To enhance monitoring of production process, offices of all producing enterprises are expected to be relocated from Almaty to Shymkent and Kyzylorda. A. Zhumagaliyev said that as of today five enterprises have already been relocated, and another four are about to be relocated. One more subsidiary enterprise is to be relocated till the end of this year.
Besides, near-term plans intend to change the organizational structure and transfer non-core assets out of the company into a competitive environment in order to focus on core activities. By 2019, Kazatomprom plans to withdraw 27 non-core enterprises providing services not related to the core activities, in particular, various chemical facilities, service companies, etc, from its structure. But, according to A.Zhumagaliyev, the process of non-core asset transfer will not touch mining enterprises.
To increase Holding’s efficiency and improve operating and financial performance it is also planned to improve corporate management system, introduce standard corporate structure, optimize and automate the business-processes.
Askar Zhumagaliyev emphasized that the company intended to activate the program for employee professional improvement, introduce the system of graded labor payment depending on the indices of Efficiency Factor, create conditions for personal progress and development of leadership abilities of the employees.
Through the implementation of the Transformation Program Kazatomprom intends to execute the order of the President to increase efficiency of activity. The Company will keep leading positions in uranium production, arrange its presence in NFC chains, provide high performance productions, build a system of marketing and form a professional team. It is expected that by 2025, as a result of measures to be taken, EVA index of Kazatomprom will make up +32 bln.KZT.