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JSW SAJSW coal estimates positive impact of its Transformation Plan in 2025-27 at PLN 8.5 bln
Listed coking coal producer JSW's supervisory board has adopted the Strategic Transformation Plan prepared by the management board. JSW estimates that the implementation of the changes will have a positive financial impact of PLN 8.5 billion (EUR 1.97 bln) between 2025 and 2027, the company said in a market filing.
"PLN 8.5 billion is our target potential resulting from undertaking the actions included in the adopted Strategic Transformation Plan," said, quoted in the release, CEO Ryszard Janta.
"This amount consists of increasing the volume and margin of extraction, introducing a number of changes in procurement planning and materials management, reducing unnecessary capital expenditures and simplifying and digitalising the processes of the support functions in all group companies," he added
The implemented plan envisages the implementation of tasks in four key blocks: improvement of mining efficiency, optimisation of purchasing processes, rationalisation of investment expenditure and optimisation of support functions.
As stated, the greatest effect is expected to come from the introduction of the ‘Efficient Mine’ model, i.e. 15 initiatives, the introduction of which is expected to increase, among other things, the efficiency of mining machinery and, consequently, the efficiency of crews.
In addition, a number of measures related to work reorganisation and maximum utilisation of the machinery fleet have been proposed.
"The introduction of the +Efficient Mine+ model will translate into the extraction of 14.5 million tonnes of coking coal," Adam Rozmus, deputy CEO for technical and operations, added.
"Through a series of transformational activities in building the +Effective Mine+ model, JSW SA is expected to achieve an estimated PLN 4.2 billion of additional margin over a three-year period," he added.
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