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Belarusian steel mill BMZ saves $118.6m in 2018 by reducing costs

GOMEL(BelTA) – The economic effect from introducing cost-saving measures in the Belarusian steel mill BMZ totaled $118.6 million in 2018 or over 9% of the prime cost of the products the company makes. The figures were mentioned by the company’s Director General Anatoly Savenok at a performance review conference of the company’s trade union, BelTA has learned.
According to the source, BMZ did quite well in 2018. The company managed to earn $1.5 billion, 26% up from 2017, with the profitability of sales at 8%, 2 percentage points up from 2017. Foreign customers bought 2 million tonnes of metal products worth $1.26 billion. The company started trading with new countries in Africa and Latin America.
Apart from reducing manufacturing costs the company reduced its energy consumption by 8.7% in comparison with 2017. The accomplishments allowed the management to honor social commitments. For instance, the salary growth rate reached nearly 138%.
The company’s investment in social sphere exceeded Br12 billion. Of the sum over Br5 billion was spent on maintenance of social infrastructure. As much as Br4.5 million was spent on disbursements specified by the collective employment agreement. The company also invested Br3 million in labor safety arrangements and precautions.