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METINVEST introduces the labor challenge practice

10 April 2012

The labor competition under "Lean Enterprise" programme at YENAKIIEVE STEEL, METINVEST GROUP, has been launched since April, 1. This is a new motivational project, which was being introduced by the Company for the first time at YENAKIIEVE STEEL, as well as at AZOVSTAL and KHARTSYZSK PIPE. These Works haven’t been selected by chance – in particular, currently "Lean Enterprise" programme implementation is being most successfully developed there: special departments are functioning; real operational results and improvements are achieved.

The labor competition is aimed at process culture improving, working efficiency enhancing, product quality refining and maximum client focused reaching. For the right to be called the best subdivision will fight the areas of the main six YENAKIIEVE STEEL Shops: Sinter Shop, BF Shop, BOF Shop, Lime and Refractory Shop, Rolling Mill Shops (on the production sites, located in Yenakiievo and Makiivka). The winners will be determined at the month, quarter and year — ends.

Shops activity under this project will be appreciated at their true value: according to the quarter-end results three leading areas will get UAH 10.000 to improve their subdivision welfare. At the end of the year the labor competition results will be summed up and the leading area will be selected, the winning team will get the final reward in the amount of UAH 300.000. These funds will be shared among all workers of the subdivision and issued in form of the certificates. Using these certificates the workers will be able either to have a rest with their families, or to order household appliances etc.

«Labor competition is aimed at the collective motivation improving in achieving higher performance results at their areas"- pointed out Oleg Solovyov, HR Director, city council deputy — «Indeed, the initiative and involvement of the workers will directly influence not only the project implementation results, but, in general, the future of our Company.»

We would like to remind that «Lean Enterprise» programme has been implemented at YENAKIIEVE STEEL since 2011 and considered as an effective tool to reduce production prime costs and raise Works profitability.