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Dow Jones News
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MMC Norilsk Nickel: Nornickel adopts division-based organisational structure

MMC Norilsk Nickel (MNOD) 
NORNICKEL ADOPTS DIVISION-BASED ORGANISATIONAL STRUCTURE 
 
06-Aug-2020 / 18:25 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
PRESS RELEASE 
 
       Public Joint Stock Company «Mining and Metallurgical Company «NORILSK 
          NICKEL» (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company") 
 
          NORNICKEL ADOPTS DIVISION-BASED ORGANISATIONAL STRUCTURE 
 
         Moscow, 6 August, 2020 - Nornickel, the world's largest producer of 
palladium and high-grade nickel and a major producer of platinum and copper, 
 continues to streamline its organizational structure, with the Group's core 
         operations will be grouped into three divisions - Norilsk, Kola and 
    Trans-Baikal. The Management Board approved new structure on August 5th. 
 
   These three divisions represent Nornickel's three key production sites in 
    Russia. The divisions will combine the Group's facilities located in the 
  respective regions involved in core operations (mining, metallurgical) and 
        all auxiliary activities (energy supply, service and repairs, etc.), 
  including those which do not directly support core operations. The current 
      legal structure of the Group's subsidiaries will remain unchanged. The 
    corporate head-office will retain control over Group-wide business lines 
   (such as HR, finances, legal and security) as well as continue to oversee 
       operations, logistics, sales and distribution and strategic projects. 
 
  Nikolay Utkin, Director of Polar Division, will become the head of the new 
          Norilsk Division. He will be also appointed Senior Vice President. 
 
      Evgeny Borzenko, CEO of Kola MMC, will become the head of the new Kola 
    Division. Finally, Trans-Baikal Division will be led by Alexander Popov, 
     currently the CEO of Bystrinsky GOK. Both Evgeny Borzenko and Alexander 
                               Popov will be also appointed Vice Presidents. 
 
  The adoption of the division-based model has become feasible following the 
   successful consolidation of service functions in a shared services centre 
     and thanks to the high level of maturity and automatization of business 
  processes, which have been achieved by the management team over the recent 
                                                                      years. 
 
  The adoption of the new organizational structure will make be an important 
             addition to the actions taken earlier in response to the recent 
 environmental incidents. With the bolstered environmental functions and the 
        newly-established risk committee chaired by the Company's President, 
 formation of the divisions is expected to strengthen responsibility as well 
     as operating and investing authority of their management while the head 
                                    office retains its strategic competence. 
 
         The investment project management system will be revised to enhance 
     disciplined implementation of investment programme, with an increase in 
                                investment limits for production facilities. 
 
"The new division-based system paves the way for remarkably better corporate 
  governance by spurring decision-making at production sites and raising the 
       responsibility of their leadership. Divisions will bear comprehensive 
        operational responsibility for production, infrastructure, financial 
      performance, and risk management within their remit," said Nornickel's 
                                                 President Vladimir Potanin. 
 
                                                           ABOUT THE COMPANY 
 
   MMC Norilsk Nickel is a diversified mining and metallurgical company, the 
     world's largest producer of palladium and high-grade nickel and a major 
 producer of platinum and copper. The company also produces cobalt, rhodium, 
    silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other 
                                                                   products. 
 
     The production units of Norilsk Nickel Group are located at the Norilsk 
Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as 
                                        well as in Finland and South Africa. 
 
               MMC Norilsk Nickel shares are listed on the Moscow and on the 
Saint-Petersburg Stock Exchanges, ADRs are traded over the counter in the US 
                    and on the London, Berlin and Frankfurt Stock Exchanges. 
 
                                        Media Relations: Investor Relations: 
 
                         Phone: +7 (495) 785 58 00 Phone: +7 (495) 786 83 20 
 
                                     Email: pr@nornik.ru Email: ir@nornik.ru 
 
ISIN:          US55315J1025 
Category Code: MSCM 
TIDM:          MNOD 
Sequence No.:  80543 
EQS News ID:   1112383 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

August 06, 2020 11:25 ET (15:25 GMT)

© 2020 Dow Jones News
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