The Strategy of Developing the Solikamsky Magnesium Plant JSC (Perm Region) and Lovozersky GOK Ltd. (Murmansk Oblast)

The goal of the job was the development and implementation of the strategy to create a vertically integrated diversified holding that would produce high tech types of goods with an additional worth based on the production of magnesium and rare earth metals.

Within the framework of the job, the following were completed:

1. Full technological schemes of producing magnesium and magnesium alloys, rare earth metals and products associated with magnesium (chlorine, calcium hydroxide, and more).
2. Full material balances of producing magnesium and magnesium alloys, rare earth metals and products associated with magnesium (chlorine, calcium hydroxide, and more).
3. A calculation of margins for the finished goods produced by Solikamsky Magnesium Factory JSC. The products with the biggest margins were identified.
4. Based on the calculations of the product margins, the most profitable nomenclature of produced goods was calculated based on the biggest margins.
5. Calculations on the various options of reducing fixed and variable costs of the enterprise. Economic effects were calculated for implementing cost-cutting projects was calculated: the reduction of duration in downtime “narrow” places and a construction of a resource storage facility.
6. Finished strategy on raising the profitability of the Solikamsky Magnesium Factory JSC based on the chosen nomenclature of finished goods.
7. Methods for raising the real and marketing capitalizations of Lovozersky GOK Ltd. were developed.
8. Methods on implementing the strategy of asset development for Solikamsky Magnesium Factory JSC and Lovozersky GOK Ltd. were developed.