Kagazy Recycling LLP, a producer of paper, corrugated board and packaging in Central Asia, recently announced a major operational restructuring initiative.
Three months ago Kagazy Recycling engaged the services of Alix Partners. Their team have assisted the Company in devising initiatives which will focus its sales towards more profitable customers, increase the efficiency of its production line, and reduced the cost it pays for its raw materials. The Company believes that these initiatives will increase our top-line revenues, improve our profit margin, and reduce our cost base. The company are targeting a 40% increase in our EBITDA run-rate by the end of the current year. These will be record results for the company, which we will be very proud to have achieved in difficult market circumstances.
The restructured paper business sits alongside the improving results which the company is seeing in logistics business, and together, will support the financial restructuring upon which the company is making real progress with the support of leading Kazakh and international financial institutions.
Irina Yevtushenko, General Director of Kagazy Recycling comments on the initiative: "Kagazy Recycling is the leading producer of paper and corrugated board in Kazakhstan. The company has achieved phenomenal growth in the past years to become the market leader in its sector. We have weathered the crisis much better than our competitors, some of which have cut back, or ceased operations entirely.
Tomas Mateos, the new Chairman of Kazakhstan Kagazy JSC, Kagazy Recycling’s parent company pointed out: "We are already seeing significantly improved profitability following the measures that have been taken in the last six months We are impressed by the quality of the local management and how smoothly we have been able to share the operational and financial improvement experience acquired in other markets with them".
