Smart-Holding completed drafting a new business development strategy in summer 2013. The international consulting company McKinsey & Co acted as a consultant in the process.
The long-term strategy of Smart-Holding is based on the analysis of global economic trends and development prospects for the market niches its enterprises operate in. Its objective is to achieve the leading position in priority areas through the implementation of successful projects in the key industries of the Ukrainian economy.
The metal businesses remain the main cash flow generator, for Smart-Holding, in the medium term. However, the Group is in search of other key development drivers.
For its investment portfolio, Smart-Holding has identified the strategic areas on which the Company’s financial and organisational efforts are going to be focused in the near future. Apart from the metals business, these include hydrocarbon production and agriculture. An operational improvement program has been developed for each of these areas to find hidden resources and organise the business processes according to industry best standards.
The purpose of Smart-Holding's energy business is to increase hydrocarbon production by means of development and exploitation of the new and existing high-potential deposits, intensification of the extraction activities using state-of-the-art technologies, and development of the ‘green’ energy segment. The ambitious plan of Smart-Holding is to become one of Ukraine’s major privately-owned gas production companies within five years.
The investments of Smart-Holding in its agricultural complex are targeted at manufacturing competitive top quality agricultural products, implementation of the modern agricultural technologies and improvement of the working conditions for the industry's workers.
Metals and mining business
The strategy of Metinvest - the Group's main investment in metals and mining - is to become one of the leading integrated steel producers, both in Europe and globally, demonstrating sustainable growth and profits. Achievement of this goal will be ensured by the Company's stable competitive advantage in steel-making, strengthening the Company's positions in the strategic markets and achievement of the best business practices.
Smart-Holding will continue to invest its free capital in the businesses that have potential to become strategic ones: banks, real estate, shipbuilding, retail trade. It is going to implement the model of the Investment Foundation to manage its non-core businesses, attract new partners and organize M&As. Smart-Holding will pay special attention to IT and energy efficiency projects.
An integral part of Smart-Holding's strategy is investment in the personnel development, improvement of quality standards and social protection both for the Group's employees and residents of the regions where the Holding Company's enterprises are based.