Our client, a leading producer of coal and other primary raw materials, was looking to design and implement a growth and diversification strategy which is more closely aligned to the energy transition.
Introduction
Demand for coal is set to decline as renewable penetration and gas switching gathers momentum, and, in the longer term, low carbon steel technologies are deployed. In this context, CRU Consulting was engaged to help develop an actionable diversification plan targeting markets and segments that are both resilient to the energy transition and assets wand strategically aligned to the client’s capabilities and ambitions.
Data: CRU
Our recommendation
CRU Consulting recommended the development of a growth strategy targeting 3 particular commodities which were set fundamental to the manufacture of green technologies. We identified particular segments of these markets which were most likely to benefit from these structural changes and also well aligned to the clients broader capabilities and aspirations. We subsequently identified and prioritised a list of target assets within each segment to focus growth planning on.
Our methodology
CRU Consulting conducted a multi phased project. At the outset, we sought to validate and clarify internal objectives as part of structure interview programme for key internal stakeholders designed to better understand corporate priorities and enabling conditions. These goals were subsequently reflected in a detailed, data-driven, evaluation process focussed on screening priority markets for diversification. Having priorities particular market segments, we proceeded to identify and rank individual acquisition targets, drawing on our sophisticated data and analysis tools, as well as past experiences enabling producers to practically implement growth strategies.
Data: CRU
Results
We developed a ranking and prioritisation methodology which reflected the goals and aspirations of key internal stakeholders.
We implemented this methodology to identify a short list of priority markets and value segments which were aligned to market fundamentals and accessible to the client.
We long listed target assets against these priority segments, and then conducted preliminary investment appraisal analysis in order to short list the most prospective acquisitions.
Data: CRU