Metallurgy

Metallurgy remains a core industrial sector in CIS countries, supplying structural and functional materials to machinery manufacturing, construction, energy, transport and other key industries. Russia, the region’s largest market, ranks among the world’s top five steel producers, with annual output of 60–80 million tonnes.

Metals producers operate in a highly capital-intensive industry, facing volatile prices, changing logistics arrangements and mounting pressure to improve product quality, control production costs and increase capacity utilisation.

The Pieff team helps metals companies identify and realise their growth potential by increasing productivity, reducing costs, improving product quality and making production processes more stable.

Metallurgy

Large furnace and surrounding platforms inside a steelworks.
The challenges
our clients face
Pressure on margins and the product portfolio

Volatile metal prices, sanctions-related discounts and the restructuring of export channels are putting greater pressure on revenue.

It is increasingly important to manage the product mix, sales channels and the share of high-value-added products flexibly.

Output growth depends not only on demand, but also on the ability to increase saleable product yield and equipment utilisation.

Constraints on productivity and output growth

Bottlenecks throughout the production chain, from smelting to rolling, limit growth in output and in the share of higher-margin products.

The reliability and availability of critical equipment remain key drivers of performance.

Reducing metal losses, rejects and non-conforming products requires a systematic approach to quality at every processing stage.

Pressure on costs and capital project delivery

Rising costs for raw materials, energy, refractories, consumables and labour are putting greater pressure on unit costs.

The capital intensity of modernisation and new-build projects places greater demands on design quality and delivery schedules.

Risks associated with commissioning, import substitution and the integration of new equipment make it harder to achieve design performance.

The complexity of managing production systems

Vertically integrated structures make it more difficult to coordinate processing stages and allocate decision-making authority.

Companies face shortages of skilled staff, particularly in single-industry towns and at remote sites.

Fragmented IT systems and dependence on foreign digital platforms reduce the benefits of digital initiatives.

Operational Efficiency and Production Systems
  • Optimising short-term production planning across all processing stages
  • Increasing saleable product yield, reducing metal losses and eliminating bottlenecks
  • Transforming maintenance and repairs for critical equipment and increasing availability
  • Reducing unit costs for raw materials, energy and consumables
  • Implementing a production system to standardise practices, strengthen mentoring and develop a culture of continuous improvement
Capital Project Performance
  • Managing the capital project portfolio of a metals producer
  • Optimising technical solutions, schedules and budgets for construction and modernisation projects
  • Managing project delivery without reducing current production volumes
  • Preparing for commissioning and the ramp-up to design targets for productivity, quality and specific consumption
Organisational Transformation
  • Developing functional strategies for production, maintenance and repairs, procurement and sales
  • Optimising the group’s operating model and coordination between processing stages
  • Developing and implementing a KPI system for saleable product yield, quality, costs and equipment reliability
  • Developing approaches to attracting and retaining staff
Digitalisation
  • Developing a digital transformation roadmap with priorities based on financial benefits
  • Creating an integrated digital data environment covering the process from smelting to dispatch
  • Improving the sustained adoption of digital solutions in the day-to-day work of process engineers, operators and engineering teams
/ Case Studies

Real-world results,

that speak for themselves

Flames around equipment in a metalworking plant.
+315 initiatives
Making the employer more attractive: a programme of 315 initiatives developed to reduce occupational health hazards and improve working conditions across 210 occupations
Crane-suspended ladle and workers inside a foundry.
+134%
Reducing delivery risks on a multibillion steelworks reconstruction project for the CIS’s largest steel producer
Glowing hot steel slabs moving through a rolling mill.
+14%
14% faster progress on the critical path through weekly work planning
Large ladle suspended by a crane inside a steelworks.
+$200 million
$200 million increase in the NPV of a metallurgical plant’s capital project portfolio, with a lower investment budget for the same projects
Flames around equipment in a metalworking plant.
+315 initiatives
Making the employer more attractive: a programme of 315 initiatives developed to reduce occupational health hazards and improve working conditions across 210 occupations
Crane-suspended ladle and workers inside a foundry.
+134%
Reducing delivery risks on a multibillion steelworks reconstruction project for the CIS’s largest steel producer
Glowing hot steel slabs moving through a rolling mill.
+14%
14% faster progress on the critical path through weekly work planning
Large ladle suspended by a crane inside a steelworks.
+$200 million
$200 million increase in the NPV of a metallurgical plant’s capital project portfolio, with a lower investment budget for the same projects
/ Insights

Useful articles

Two workers in hard hats standing beside yellow pipework at a gas facility.
13 March 2026
The decline in pipeline gas exports has freed up significant volumes of gas within Russia. This raises a question: which industries can process this gas and turn it into high-value-added export products?
Team reviewing an engineering drawing spread across a table.
6 November 2025
When designers fall behind and construction is left waiting, companies face delays and financial losses. We see this frequently on capital projects. In this article, we explain how to turn a chaotic design process into a well-managed system and align it with construction without complex IT platforms.
Overhead crane handling glowing hot steel slabs inside a steelworks.
25 July 2025
Russia’s metals industry faces falling demand and prices, leading to lower profits. In this insight, we examine the main areas for cost reduction to improve business profitability and maintain a sound cash position.
Digital cubes floating above an outstretched hand.
17 April 2025
Organisational transformation is essential as a business grows. In this insight, we examine three factors that make transformation effective in industrial companies.

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