Leading Russian steelmaker Severstal has re-engaged with global consultancy McKinsey to work on efficiency plans for the Cherepovets Steel Mill in Russia.

Severstal Russian Steel's CEO Sergey Toropov said, "Our steelmaking business is where we achieved the greater cost efficiency progress in 2013," and explained that the company was able to save 2 billion rubles across its steel units in 2013.

The new plan will involve making a comparative analysis of CherMK's current basic oxygen steel production performance indicators against industry best practices. It is hoped that the results will highlight areas for improvement and the company will then 'identify key initiatives to enhance its processes'.

McKinsey has worked closely with Severstal for 15 years and was involved in the development of its procurement optimisation programme. In 1999, following a survey project and a cost reduction programme jointly developed by Severstal and McKinsey, the steelmaker managed to save 70.1 million rubles.