Retention of low-cost position

Main cost-reduction programmes

Optimisation of consumption of raw materials and basic materials

Alloy savings from EVRAZ Regina investment project

Status

In 2018, additional savings on alloys were achieved at EVRAZ Regina’s steel mill.


Flux/powder usage reduction at EVRAZ Regina’s steel mill

Status

Additional savings from flux consumption were achieved in 2018.


Graphite electrode consumption reduction at EVRAZ Regina’s steel mill and EVRAZ Pueblo

Status

EVRAZ completed benchmarking and gap analysis for electrodes consumption.

Changes in supplier base and supply requirements have been made.


Optimisation of yield and productivity

Improve yields at EVRAZ Regina’s steel and tubular facilities

Status

Both the steel and tubular mills reached and exceeded their 2018 productivity targets, which translated to tangible cost savings.


Increase productivity of EVRAZ Regina’s steel facility

Status

Both EVRAZ Regina’s meltshop and rolling mill set new records in 2018 in terms of production volumes.


Increase Alberta OCTG production throughput

Status

The heat treatment line in Calgary achieved a 15.9% increase in throughput of P110 product in 2018.


Improve EVRAZ Portland plate yield

Status

Plate yield target achieved by improving slab ordering practices, better tracking of slab utilisation and special ordering optimal slab sizes to ensure better performance.


Improve seamless prime yield

Status

Seamless prime yield improved throughout 2018 due to mill set up actions and operations crew training.


Increase EVRAZ Pueblo’s seamless heat treatment output

Status

Seamless heat treatment output exceeded the target by 10% in 2018.


Ramp up EVRAZ Pueblo’s threadline

Status

Threadline project completed as expected.


Optimisation of product quality system

Improve forming/welding processes at EVRAZ Regina’s tubular facility

Status

Achieved a significant improvement in welding prime yields, surpassing historical levels and medium-term goals.


Improve surface defects

Status

Degassing approximately 85% of steel consumed by EVRAZ Regina’s tubular facility allowed the Group to produce products with less hydrogen related slivers.


Reduce customer claims at EVRAZ Red Deer

Status

Reduced claims paid by 25% compared with 2017 through the implementation of additional quality improvements during production and shipping, as well as through employee training.


Improve controls over key production processes at EVRAZ Portland

Status

Improvements achieved through the implementation of additional quality control steps during production and shipping, as well as through employee training.