We are consistent in our approach focusing on the three corner stones of our business strategy.
We adopt a disciplined approach to investing in industrial commodities businesses with the objective of increasing their value for the long-term; we succeed by optimising their full potential, and by mitigating our business risks through the trading of commodity and related financial derivatives.
To underpin this strategy, we invest in commodities where long-term demand growth remains robust. We acquire businesses with longstanding potential and strong fundamentals, but which other corporations view as no longer strategic for them and are looking to exit. We constantly look to expand into suitable new sectors and to grow our geographical reach.
We look to maximise returns from our existing businesses by maintaining and strengthening their market position, looking for efficiencies and ensuring that we allocate capital appropriately.
Disciplined acquisitions to generate long-term value
- We apply a disciplined approach to investment via in-depth insight and due diligence.
- We acquire non-strategic industrial businesses from large corporations.
- We have no fixed exit horizon. We see all of our investments as long-term strategic initiatives.
Optimisation via operational excellence
- We apply a tailored approach to turning around businesses we acquire and continuously optimising them through an ongoing focus on process, efficiency, productivity, logistical capabilities and cost management.
Managing and mitigating risks
- Our trading team manages and mitigates the price risk exposure that may exist in our portfolio.
- Through trading we optimise the synergies across our commodity portfolio to maximise profit while minimising our risks.
- The risk team performs Know Your Customer and credit assessment before Klesch conducts business with new counterparties.
- We manage operational risks through key controls to minimize losses, regular audits on our processes, risk policies, risk reports, and the appropriate IT systems.
Our compliance team works with the businesses across the Group to understand the regulatory risks in the countries where we operate and to establish best industry practices to manage those risks.
The Klesch Group operates within a structured risk management framework that includes the Klesch Group chairman, business unit boards, the Group Risk Management Committee (an executive management committee chaired by the Chief Risk Officer) and the business units’ risk management teams.