How to Get the Most from Steel Industry Management Consultants

 

Introduction
In today’s rapidly evolving steel sector, partnering with steel industry management consultants can provide significant competitive advantages. From operational efficiency to strategic growth, expert consulting offers unique insights that are hard to achieve in-house. But how do you ensure you're getting the most out of your collaboration with steel consultants? In this article, we explore actionable tips and strategies for maximizing the benefits of working with these industry experts.

For top-notch consulting services, explore the offerings at Metals Consulting International.

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1. Why Hire Steel Industry Management Consultants?

Steel industry consultants bring specialized knowledge and deep market insights, which can greatly enhance operational decision-making. Whether you're seeking improvements in production processes, supply chain management, or cost optimization, partnering with experts allows you to tap into the latest technologies, methodologies, and best practices.

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2. Key Areas Steel Consultants Can Help With

When you work with steel industry consultants, you’re not just hiring general business experts. These professionals specialize in:

• Operational Efficiency: Optimizing steel production workflows.
• Supply Chain Management: Streamlining procurement and logistics.
• Cost Control: Reducing raw material and labor costs.
• Market Analysis: Providing up-to-date market trends and pricing forecasts.

To get tailored advice, consider visiting Metals Consulting International.

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3. How to Choose the Right Steel Consulting Firm

Not all steel management consulting firms are created equal. It’s important to evaluate potential partners based on:

• Experience: Choose firms with a proven track record in the steel sector.
• Customization: Look for consultants who offer solutions tailored to your specific challenges.
• Data-Driven Approach: Firms that utilize the latest data and market analysis tools can help your business stay ahead of the competition.

MCI offers decades of industry experience and customized solutions for businesses of all sizes. Learn more - check out the MCI brochure.

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4. Maximizing ROI with Steel Industry Consultants

To get the most value from steel industry management consultants, consider the following strategies:

• Set Clear Objectives: Before engaging with a consulting firm, outline what you hope to achieve.
• Engage Regularly: Keep communication lines open and ensure regular updates on project milestones.
• Implement Recommendations Quickly: Ensure your team is ready to implement changes recommended by consultants.

The team at MCI is equipped to help you through every stage of the consulting process, ensuring that you achieve measurable results.Visit Metals Consulting International to learn more.

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Conclusion: Transform Your Business with Steel Industry Experts

Steel industry management consultants offer more than just advice; they can transform your operations, boost profitability, and ensure long-term success. By choosing the right consultants and actively engaging with their recommendations, you can unlock new opportunities in this competitive market.

Looking for trusted consulting services? Email us at info@metalsconsultinginternational.com or call _+44 775 149 0885.

Merger of leading London-based mining and metal sector consultancies

London, U.K. – April 2^nd, 2020 Metals Consulting International Limited (MCI), the independent iron and steel sector management consulting firm, today announces the merger of its advisory business with that of Saint Barbara, advisors to the world's metals, minerals and mining industries.

MCI mostly undertakes iron and steel sector due diligence and feasibility study work for clients in Western, Central and Eastern Europe, Africa and in the Middle East. Saint Barbara supports commodity sector clients in Europe, Africa, Asia-Pacific and the Americas. Both MCI and Saint Barbara also offer international clients expert witness advisory support on mining and metal sector topics.

The merger, which took effect on 31st March 2020, sees Saint Barbara's business activities come under the umbrella of the MCI Group. Currently, MCI also owns and operates www.metalsconsultinginternational.com, www.steelonthenet.com and www.steelexpertwitness.com.  After the merger, Saint Barbara will continue to operate under the Saint Barbara brand, with seamless transfer of all ongoing client work to MCI at the point of merger.

Commenting on this development, Andy Wells, Partner at Saint Barbara said "We are delighted to come together with the experts at MCI. There is much complementarity between our two businesses, and the merger means that we will be able to offer clients a much broader range of metals, minerals and mining sector advisory capabilities". David Duckworth, who will lead Saint Barbara's metals, minerals and mining practice from April 2020 added "This development will allow us to enhance our capabilities and continue to support banks, governments and private investors in making better business decisions in industries that are highly capital intensive". Andrzej Kotas, Managing Director of MCI added "MCI too are very pleased to join forces with Saint Barbara, who have well-established mining and metal industry expertise. Together, our industry specialists look forward to continuing growth of our newly-enlarged firm as interest in the global ferrous and non-ferrous metals industries continues to rise".

The terms of the transaction have not been disclosed.

  

- ENDS -

For further information about MCI, please contact Andrzej M Kotas.

Email: amk@metalsconsultinginternational.com

Press enquiries: +44 (0) 775-149-0885

For further information about Saint Barbara, please contact David Duckworth.

Email: david.duckworth@saintbarbara.com

Press enquiries: +44 (0) 758 490-5047

NOTES TO EDITORS

About Metals Consulting International

MCI is a London-based consultancy that provides international clients with iron and steel sector management consultancy support, principally related to investment decisions, metal sector business restructuring and performance improvement. MCI was founded in October 2003 and is privately owned.

About Saint Barbara

Saint Barbara is an independent consultancy firm that offers specialist advice to the world's metals, minerals and mining industries. The firm's consultants cover a broad and extensive range of commodities which include base and ferrous metals, steelmaking metals, battery metals, precious metals and rare earths. Saint Barbara was founded in March 1992.

Tata Steel Port Talbot - the road to viability

We have previously discussed in this blog some of the issues surrounding the future of Port Talbot in south Wales. Below, I outline our own views of the way ahead for steelmaking in south Wales – as seen by the experts at Metals Consulting International Ltd.

The problem

The biggest problem at present is that Port Talbot is reportedly losing somewhere between GBP £0.5 million - £1 million per day. With production of finished steel products at Port Talbot of the order of 3 million tonnes / year, this translates (assuming losses of just £0.5m per day) into a loss of ~£60/tonne. With weak balance sheets across the steel industry pretty much worldwide, few steel companies today are able to sustain loss-making at this level for very long.

Suggestions for business turnaround

In recent weeks, a number of apparent solutions for the turnaround of Port Talbot have been mentioned in the international press. These include business rate reductions, employment cost reductions and even reductions in energy costs. Let us examine these ideas in turn.

(i) Business rate reductions

Many industry commentators note the cripplingly high business rates that sometimes apply in the UK. Port Talbot currently pays ~£10m/year in business rates. On a sales volume of ~3 million tonnes, this cost amounts to roughly £3 / tonne. If the objective is to improve profitability by £60/tonne, it is clear that substantial reductions of business rates will do little to restore viability at Port Talbot.

(ii) Employment cost reductions

Port Talbot employs a labour force of ~4000. If we assume an average wage of £25,000/year per employee, this gives a total wage bill of £100 million per annum or roughly £33/tonne. Trimming this by 10% could therefore reduce Port Talbot’s production costs by ~£3/tonne. If the objective is to improve Port Talbot profitability by £60/tonne, trimming the wage bill by a few percentage points will also do very little to restore viability to the business.

(iii) Energy cost reductions

There is much discussion concerning the relative cost of electricity prices in the UK as compared to the continent; many observers consider that electricity costs in the UK are double those in other parts of Europe. Depending a little on the exact steel product, our own assessment is that Port Talbot’s electricity costs are currently in the £12.50-£17.50 / tonne range.  If we ignore the fact that much of this electricity can be generated from hot gas that is generated from carbon-based inputs such as coal and coke, and further assume an average electricity cost of £15/tonne of finished steel, it is clear that whilst halving of these costs might save ~£7.50 per tonne, this level of cost saving is also very far from the profit improvement target of £60/t discussed above.

The solution

What then is the solution for Port Talbot if the objective is a profit improvement of £60/tonne, when measures such as business rate reductions, employment cost reductions and reductions in electricity costs can at most generate savings of £3, £3.50 and £7.50/tonne respectively (or just £14/tonne in total)?

MCI’s view is that the only solution is to stop production of liquid steel in south Wales, and to ship in steel slab (for further downstream processing into hot and cold rolled and coated steel at Port Talbot) from one of the lowest-cost producers of these steels.

The chart below illustrates Port Talbot’s slab production costs on the world cost curve, as at Q1 2016.

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Readers of this blog post will notice that the difference in slab production cost between the world’s lowest cost producer and the Port Talbot works is ~$110/tonne. If we assume a transport cost via sea freight of ~$35/tonne, the total cost saving at Port Talbot of purchasing rather than making slab works out at $75/tonne or ~£52 / tonne. With some small reduction in business rates or employment costs or energy prices, Port Talbot should therefore be able to achieve a profit improvement of £60/tonne and thus attain viability, if it can source low cost slab.

Next steps  

Do we have any other evidence that such a strategy would be viable for Port Talbot? Who would be the best foreign partners for sourcing the low-cost slab (and do they have the capability for immediate slab supply)? How do we calculate the production cost savings and freight costs?

For further information, please contact us.

Andrzej M Kotas

Managing Director

Metals Consulting International Limited

Website: www.steelonthenet.com

Mobile: +44 775 149 0885

      

Andrzej M Kotas - LinkedIn profile

In case it is of interest, you can see my LinkedIn profile (including some of the previous roles I have had in the steel sector) at http://uk.linkedin.com/in/kotas

Regards.

Andrzej M Kotas, MBA

Managing Director

Metals Consulting International Limited

Website: www.steelonthenet.com

Case study - steel industry performance improvement

We have prepared a case study describing a recent performance improvement project that we undertook in the steel sector. The assessments were based on understanding the client’s key performance indicators and comparing these to international norms.

For further information about the consulting approach see http://www.steelonthenet.com/clients/shareholder.html  

 

Dr Andrzej M Kotas

Chief Executive 

Website: http://www.steelonthenet.com

Questions for steel industry planners

Steel is generally thought of as a capital intensive industry. Here are some questions then for your strategic planning department … [which should be working hard to maximise return on capital employed].

- Which type of zinc galvanising line is preferred nowadays, and why?

- What the main technological alternative to tandem mill cold rolling?

- What causes per-tonne plate mill costs to vary up to 5-fold?

- Why do heavy section and rail rolling mills vary by up to 2½ -fold in capital cost per tonne terms?

- Is there a significant capital cost difference between coal-fired and natural gas based DRI plants?

- What is the main determinant of capex costs per tonne in a hot or cold rolling mill?

- How can I reduce my capital costs in electric steelmaking?

- What is the main driver of capex cost per tonne in a seamless tube mill?

- Are capital costs different for commodity and high performance steels – and why?

- Is it common to have partners involved in financing mill construction – do you have any examples?

- For which main elements of a steel plant do capital investment costs generally not vary with steel volume?

Full answers available in MCI’s steel industry capex report, published October / November 2010.

blogger@steelonthenet.com

Capital investment costs of ironmaking equipment - sinter plant

If you are interested in iron and steelmaking capital investment costs, the MCI steel capex report may be of interest.

For most key bits of iron and steelmaking plant [as well as for pellets, coal washing, waste water treatment, power generation etc] , the report describes recent investments around the globe - as well as typical capacities and current capital investment costs.

So if you are interested in the cost today of a new sinter plant for ironmaking [for example], the chart below will show you exactly how much you might pay ..



For more information about the report, including an executive summary, a contents list, and a list of exhibits, please visit http://www.steelonthenet.com/capex

blogger@steelonthenet.com