Siberian Coal Power Company SUEK

SUEK is a leading Russian fuel and energy company, the country's largest and one of the world's leading coal producers and suppliers.

Owners

2023

According to the representative of the press secretary Andrei Melnichenko, as of June 2023, SUEK owns AIM Capital, almost 100% of which belongs to the Cypriot company Linea. In turn, 75.1% of Linea, according to the source, is owned by the Firstline Trust, the beneficiary of which is Alexandra Melnichenko (without control and ownership). The source declined to provide information on the full number of Firstline Trust beneficiaries at the request of TAdviser, citing confidentiality.

2022

The day before the introduction of EU sanctions against the background of a special operation Russia on To Ukraine the billionaire Andrei Melnichenko transferred control over the coal company SUEK and the fertilizer producer to his wife, "" EuroChem using the legal scheme provided for initially in the event of his death, he wrote with Reuters reference to sources.

Since 2006, Alexandra Melnichenko has been listed second on the list of beneficiaries of her husband's companies, which would allow her to inherit them. When Melnichenko notified the trustees of his resignation as a beneficiary on March 8, 2022, this entailed a chain of processes similar to the one that would have been launched in the event of the death of the owner of the companies. As a result, the billionaire's wife gained control over SUEK and Eurochem.

Aktivs

In 2010, the volume of thermal coal production amounted to 89 million tons, the volume of coal sales on the export market - 29 million tons. The strategic course of the company is to create a highly efficient corporation that occupies a leading position in the world. In this regard, SUEK is developing new domestic and foreign markets, equipping enterprises with new equipment, and introducing more efficient and secure technologies.

• More than 60 legal entities operating from the Far East to Switzerland
• Number of personnel - 33,500
• Number of users working SAP with - 3,500
• Annual revenue of $5.693 billion
• No. 1 coal producer in Russia by export volume
• No. 5 in the world in terms of export sales
• Full production cycle

Geography of activity

• SUEK Head Office (g) Moscow
• Production assets: Kemerovo Region, Krasnoyarsk Territory, Republic of Khakassia, Republic of Buryatia, Trans-Baikal Territory, Khabarovsk Territory, Primorsky Territory
• Ports: Murmansk Commercial Sea Port, Vanino Bulk Terminal, Maly Port

SUEK is in the top 10 global coal producers and exporters

• No. 1 in Russia and No. 6 in terms of production volume - 105.4 million tons in 2016
• No. 4 in terms of international sales - 51.9 million tons in 2016
• No. 6 in terms of reserves - 5.5 billion tons according to the JORC code
• 1,700 consumers in 38 countries
• 27 sections and shafts
• 9 enrichment plants and plants
• 3 ports where the Company is a major shareholder
• Research Institute

Digitalization

2018

Logistics Division Automation

What is the Unified Logistics Information System

Purpose: unified information and operating environment of Logistics Division in SUEK's IT landscape

Composition: 13 types of automated workstations (AWS), combined from 24 modules

The implementation plan is divided into 3 stages, the implementation of the first stage is being completed, preparations are underway for the launch of the second stage.

• In 2012, BIT SUEK implemented a basic connection to Russian Railways' external data sources. The ELIS 1.0 system was created to manage repairs to the car fleet.
• In 2014 2016, the project was carried out by IT EuroChem, the target functionality of ELIS was determined, the target business processes, functional requirements and a draft design were described. In the PPE, fatal problems were found in the system architecture, which limited the further development of the system. After the launch of limited functionality, the project was returned to BIT SUEK in 2017.
• In 2017, the project was relaunched. The IT team of SUEK developed a new core of the system, expanded the connection to the data sources of Russian Railways and began the implementation of the first stage of AWS.

The evolution of SUEK's IT architecture

The active development of the company leads both to the need to introduce new digital solutions and to a change in existing technologies. Taking into account the developed structure of the company's assets, ensuring a consistent IT transformation requires a single look and control over ^[1].

Centralization of the function of the Architectural and Design Offices within the IT unit solves this problem.

The main functions of the Architectural Office in the life of IT initiatives:

• Center for high-level competence (level of corporate architecture)
• Development of technical implementation options
• Involvement of architects of solutions and highly specialized specialists for specific tasks
• Control over the project implementation in terms of compliance with the development strategy and standard decisions made
• System Lifecycle Control
• Update system landscape as I/O

SAP Solutions Organizational Coverage

History

2024: Sale of port assets and energy and logistics units

SUEK Group sold all port assets to entities under the control of the former management of the company's logistics division. This was announced by the largest coal mining company in Russia in June 2024.

The deal includes port terminals in the ports of Murmansk, Vanino, Vostochny and Tuapse.

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Unsplash

The full withdrawal of SUEK from the port business will allow the company to concentrate on the key direction for its coal mining, "SUEK said in a statement.

At the end of June 2024, it was announced that as part of a comprehensive restructuring of the business profile, SUEK sold energy and logistics units (SGK and NTK). The buyers of the companies were Russian structures.

The press service of the group noted that the transactions will simplify the corporate governance of SGK and NTK and the implementation of investment development plans for companies in Russia, the release says. At the same time, they did not affect the current operating activities of both companies in any way. As noted in the message, all subsidiaries and branches will continue to fulfill obligations to consumers and partners in full.

According to the Unified State Register of Legal Entities (USRUL), changes to the information about the founders of the SGK were made on June 14, 2024. More detailed information is not disclosed.

In June 2024, Businessman"," citing sources, wrote that Inter RAO"" it can buy from SUEK a manufacturer of electric motors, generators and transformers for the electric power industry. " Elsib According to sources, the energy holding is at an advanced stage of negotiations with SUEK.

By June 2024, SUEK combines 27 coal mines, open pit mines and 27 power plants. The company is one of the five leading suppliers of coal to the global market.^[1]

2023: Neftetransservice sold to SUEK-related entities

At the end of December 2023, it became known about the sale of Neftetransservice (NTS) to SUEK-related structures. The buyer of the third largest railway operator was the closed mutual investment fund (ZPIF) under the management of the Kinetic Capital company in this area. Read more here.

2022

TAdviser interview with Sergey Gortinsky, Head of Information Systems Department

The domestic electronic document management system Docsvision company SUEK replaced Lotus Notes five years ago, when the trend import substitution was a wish for a large private business rather than a real action. business processes In November 2022 TAdviser , the Sergey Gortinsky head of the SUEK Docsvision development project told why the company made such a choice, and how it influenced the further digitalization of the holding. More. here

TAdviser interview with Sergey Gortinsky, Head of Information Systems Department

Sergey Gortinsky, Head of the Information Systems Department of SUEK JSC, spoke about the growing trend towards paperless processes in corporations, differences in Russian ECM platforms and how to choose and develop IT systems in an interview with TAdviser. Read more here.

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