Retention of low-cost position

During the year, our operations focused on adjusting controllable costs. Across our support functions, we realised full-year savings from the programmes initiated in 2016 to eliminate redundancies and streamline fixed costs.

These programs delivered US$12 million in benefit during 2017 in comparison to 2016.

Main projects in 2017

G&A, fixed cost, and industrial services optimisation

Status

Additional savings were generated by continued focus on streamlining incidental and non-value adding processes, as well as from the realised full-year impact of actions taken in 2016.

Outlook for 2018

Expect to maintain costs at lower levels as volumes increase.

Raw materials and basic materials consumption optimisation at EVRAZ Regina

Status

Alloy savings were realised due to improved melting practices, rolling and cooling.

Outlook for 2018

Expect to experience the full-year impact of savings from investments.

Flux/powder usage reduction at EVRAZ Regina

Status

Reduced flux/powder usage in steelmaking.

Outlook for 2018

Expect to realise the full-year impact of savings with the degasser operational for the full year.

Yield improvement at EVRAZ Regina’s steel and tubular facilities

Status

  • Realised savings amid the effect from longer and wider coils;
  • Increased productivity as a result of the investment project at the steel facility.

Outlook for 2018

  • Expect to experience the full-year impact of savings from the investment project;
  • Expect to achieve incremental 100 thousand tonnes of casting capacity at the steel facility.

Conversion cost reduction at EVRAZ Portland

Actions in 2017

  • Reduced conversion costs with continued focus on maintaining costs in line with volumes.

Outlook for 2018

  • Continued focus on cost reduction.