Client profile

• Midsize metals producer

• Exports 80%

Challenges

• Adverse market conditions

• Falling profitability

• One export off-taker

Solutions

• Diversify international sales

• Add customer value

• Leverage financial markets

Actions

• Defined project goals, milestones, deliverables

• Researched international market for most profitable segments

• Set up a legal structure for global operations (sales, finance, logistics, customer service)

• Enhanced corporate marketing to customers, lenders, and other stakeholders

• Designed and implemented group accounting, reporting, controlling, transfer pricing policies and systems

• Qualified as Approved Supplier to selected EU and US customers

• Arranged credit facilities and reverse factoring with international banks

• Organized permanent stocks and JIT deliveries in target markets

• Secured international cargo and credit insurance policies

• Started direct sales to end-users worldwide

• Opened trading accounts with LME ring dealing members

• Developed a hedging program to reduce annual earnings volatility by 50-70%