SUSTAINABILITY REPORT 2015 Sustrapporten2015f.indd 1 2016-09-13 15:33:14
WELCOME TO OUR WORLD Sustrapporten2015f.indd 2 2016-09-13 15:33:14
LILJEDAHL BARE WIRE is a leading supplier of copper wire rod, wires, stranded conductors, profiles and overhead catenary wires in aluminium, copper and copper alloys. Liljedahl Bare Wire Sustainability Report 2015 3 Sustrapporten2015f.indd 3 2016-09-13 15:33:16
A POSITIVE HISTORY A POSITIVE OUTLOOK 2015 was a year when we at Liljedahl Bare Wire delivered excellent financial results. We continued to deliver products with higher value-added and saw a good increase in volumes. Our outlook on 2016 is very positive. We see a great potential in expansion increasing production at all our sites, in Sweden, Germany and China. On a more personal note, 2015 was also the year when I moved to Helsingborg to start my new position as CEO of Liljedahl Bare Wire. A move I m very glad to have done. I am now part of a company group with a long history, but most importantly a long-term perspective in its investments and activities. This ensures that we can be around for much, much longer. I believe that our focus on sustainability is an important part of the value proposition to our customers. Now, and even more so in the future. INVOLVEMENT Liljedahl Bare Wire is a company which is full of dedicated people, willing to go the extra mile. It is important that we continue to build on that. The work we have initiated with LBW Style, our lean operation philosophy, is an important step for us. This will involve all the personnel at the sites. We will in 2016 also intensify our focus on Occupational Health and Safety in our workplaces, through dialogue and training. Magnus Ström, CEO Liljedahl Bare Wire consists of three companies, AB Elektrokoppar (Helsingborg, Sweden), Isodraht GmbH (Mannheim, Germany) and Liljedahl Wire (Taicang, China). Together these companies form a vital production and sales group within the Liljedahl Group. This sustainability report covers the fiscal year of 2015 and it is the third sustainability report from Liljedahl Bare Wire. This report covers the most sustainability aspects of the company group. Elektrokoppar represents 67 % of the total number of employees, Isodraht 22 % and Liljedahl Wire 11 %. Each site has its own management systems for quality, environment and for occupational health and safety. For this report we collect performance data on a yearly basis from the sites since 2014. The total market for copper wire rod is about 2.5 million tonnes in Europe. Liljedahl Bare Wire is a significant producer of copper wire rod and one of the leaders in Europe with a market share amounting to 5%. Customers are mainly in the Nordic countries and northern Europe. Products for railway, high voltage applications and commutators are used globally. The companies in the group have strong positions in their geographic markets. Marketing is conducted through local sales people within each unit. Global customers are handled by a Key Account organisation. Sustrapporten2015f.indd 4 2016-09-13 15:33:17
Business Ethics LEADING WITH RESPONSIBILITY AND INTEGRITY OUR POLICY Since 2014 we have two main policies which form the platform for our governance of sustainability and business ethics. Firstly, our Code of Conduct which covers the requirements of Liljedahl Bare Wire, it subsidiaries, and the supply chain where applicable. It includes requirements regarding anticorruption, human rights and prohibition of forced labour and child labour. Secondly, we have a CSR and Sustainability Policy, which contains our two overall sustainability commitments: - To provide a working place which ensures the safety and promotes the health and wellbeing of our employees - To minimize the environmental impacts CONFLICT MINERALS Conflict minerals are minerals mined in conflict areas, such as in the Democratic Republic of Congo and neighbouring countries. When the minerals are sold they may finance the ongoing conflicts. The workers are often working under dangerous conditions, often under threat, and child labour occurs. We have identified Tin as the mineral which could risk being introduced to our supply chain from such conflict areas. As a result of having identified this risk, we request information about the smelters used, from our Tin suppliers. We have received confirmation that the smelters used are certified as conflict-free smelters, according to the Conflict-Free Sourcing Initiative. CODE OF CONDUCT Requirements regarding anti-corruption Human Rights Prohibition of forced labour Prohibition of child labour Environmental protection CSR and Sustainability Policy Liljedahl Bare Wire Sustainability Report 2015 5 Sustrapporten2015f.indd 5 2016-09-13 15:33:19
DEVELOPING TOMORROW S SOLUTIONS Elcorim Light is a product of alloyed materials At Liljedahl Bare Wire we continue to develop new and improved products to meet our customer demands. HERE YOU ARE ALLOWED TO WORK WITH A LONG-TERM PERSPECTIVE We are focusing on products for the car industry on the European market. What has made this product segment so successful is that we have a very open product development process, working closely together with our customers. Such joint innovation and improvement processes really can make a difference in the end. When it comes to wiring for cars, product development has saved costs and lowered the environmental impacts of the life-cycle of the wiring. I m proud to be a part of the team here at Liljedahl Bare Wire. Here we have a business model that really allows us to have a long-term perspective in the decisions we make. Sustainability is for sure becoming a more important parameter for our customers and our long-term perspective goes hand-in hand with those expectations. Calle Croona, Key Account Manager, Profiles & Drawn EFFICIENCY IN THE USE PHASE Our products contribute in many ways in the development and operation of the communities in which we live, both rural and in cities. As an example our conductor materials for high-voltage cables are used to connect energy distribution systems, such as linking offshore wind farms to the grid and also in projects connecting power grids between countries and regions. In the car industry minimizing the use of material and thereby the weight of the vehicles is very important. Our alloyed products which end up in vehicle wiring are contributing to an efficient use of wiring in terms of both volume and weight. 6 Liljedahl Bare Wire Sustainability Report 2015 Sustrapporten2015f.indd 6 2016-09-13 15:33:27
Our Sites INNOVATIVE COLLABORATION Liljedahl Bare Wire has developed its own production technology for magnesium alloy copper contact wires for high speed trains. The technique involves the wire being given a much higher conductivity, lower power losses and it allows the load to be increased. The new magnesium alloy wire can also replace large amounts of the older cadmium alloy copper contact wiring. Two of Liljedahl Bare Wire s units have collaborated in this development: Material development and manufacturing of the output wire took place at Elektrokoppar in Sweden. The end products were manufactured at Isodraht in Germany. Thanks to the improved properties of the wire, Liljedahl Bare Wire has been awarded railway projects where the higher conductivity was one of the decisive factors. A CLOSER LOOK AT OUR SITES At our site in Helsingborg, Sweden, 140 people are employed, of which approximately 100 are working in our production. Here we produce copper wire rod, copper and aluminium products for sub sea cables, railway and many other applications. Copper is continuously cast and rolled in the wire roll mill. Oxygen free copper is cast in electrical heated furnaces. Copper and aluminium is drawn and extruded to various product such as wire and stranded conductors. The site is certified according to ISO 9001 and ISO 14001. In Mannheim, Germany, 37 people were employed during 2015. Contact wire for railway is drawn and special products are extruded. The site is certified according to ISO 9001, ISO/TS 16949, ISO 14001 and ISO 50001. In Taicang, China, we have the smallest of our three sites, employing 24 people in 2015. On the site we produce extruded profiles. The site takes care of sales, sourcing and production for the Asian market and is certified according to ISO 9001. Liljedahl Bare Wire Sustainability Report 2015 7 Sustrapporten2015f.indd 7 2016-09-13 15:33:28
MAKING A DIFFERENCE EVERY DAY LBW Style is the name for our work with lean operations at Liljedahl Bare Wire. We started this journey in 2015 and are now rolling it out to our sites, through workshops, training and other activities. Our employees really can make a difference everyday. They are the source of finding and implementing improvements. Therefore a very important part of LBW Style is to strengthen a positive team spirit and make our employees feel ownership. It is not a project with an end, but rather a philosophy and an approach for collaboration. Lean means to constantly improve and to find smarter ways of working to ensure high quality and cost-effectiveness in our operations. At the same time we ensure a safe and positive working environment and take responsibility for our environment. Through the lean project we get a much better understanding of each others roles. Management and factory personnel are now working much closer together. We have clear targets which support our vision and values. Targets are monitored on a monthly basis and communicated to our employees. In the daily management we prioritize as follows: 1) Health, Safety and Environment 2) Quality 3) On-time delivery TARGET Example of key figures reported from the Swedish site. NUMBER OF RISK OBSERVATIONS 80 60 40 20 0 COST OF POOR QUALITY KSEK 400 000 300 000 200 000 100 000 Jan Feb Mar Apr May Jun 0 Jan Feb Mar Apr May Jun Target Month YTD JUST IN TIME TEAMWORK CONTINUOUS IMPROVEMENT ELIMINATE WASTE RIGHT FIRST TIME ON-TIME DELIVERY % 100 95 90 85 LEVELING STANDARDISATION 80 Jan Feb Mar Apr May Jun Sustrapporten2015f.indd 8 2016-09-13 15:33:29
Energy and Water EFFICIENT USE OF ENERGY AND WATER At Liljedahl Bare Wire we work systematically to address our environmental impacts. We make investments to ensure that we can increase our efficiency, as well as minimizing our environmental footprint. Our production sites in Sweden and Germany are certified according to ISO 14001. ENERGY, WATER AND EMISSIONS Our most material environmental aspect is our energy consumption and the emissions related to our fuel combustion in furnaces. We have therefore had these aspects in focus of our environmental work. We are continously working to find ways of reducing energy and water consumption. The energy consumption is to a large extent linked to the production volumes. At all sites we have seen a fairly stable energy consumption per ton of products delivered. WATER CONSUMPTION (m 3 ) ENERGY CONSUMPTION (kwh/ton) In our production it is the melting and conforming processes that are most energy consuming. Elektrokoppar * SWEDEN 116 573 120 848 Isodraht Liljedahl Wire 100 528 400 2013 2014 2015 350 300 891 CHINA 720 840 250 200 150 100 2013 2014 2015 50 0 13 231 GERMANY 12 012 10 432 2013 2014 2015 2013 2014 2015 *) For Elektrokoppar energy consumption refers to the melting of copper in the wire rod mill and is the net gas consumption after deduction of the recovered energy delivered as district heating. For the other sites the energy consumption refers to electrical energy used. Liljedahl Bare Wire Sustainability Report 2015 9 Sustrapporten2015f.indd 9 2016-09-13 15:33:35
WASTE IS A RESOURCE LANDFILL RECOVER ENERGY REUSE RECYCLING WASTE HIERARCHY REDUCE At the Liljedahl Bare Wire sites we have continued to improve our site based waste handling. Our waste mainly consists of waste oils, emulsions and metal scraps, and is handled through sorting in fractions collected by local waste handling companies. The waste streams, excluding metals and emulsions, are relatively small. Emulsion, classified as hazardous waste, is sent for destruction. When it comes to our metal scrap we don t see it as waste. Our material in our customers products are fully recycled at the end of the lifetime. Many of the products will be part of their applications for a long time, such as cables. Others will have a shorter life cycle, such as wiring in cars or washing machines. Used metals are very attractive as a resource and often much more cost-efficient to use than virgin metals. It is therefore an example where we globally have become very good at closing loops. The most evident closing of loops, is our own production. For example at our site in Helsingborg any excess material from the drawing and extrusion processes is re-melted in our own furnace and used in our production. Through the years we have made big progress in the area of waste management. Considering the waste hierarchy we are proud to say that we have almost moved away completely from waste to landfill at our site in Sweden. The fact that we have sites both in Europe and China, of course means that the preconditions are different, but we work to move up in the waste hierarchy at all our sites. Jonas Ciardi, Environmental and Quality Manager TRANSPORT ON RAIL PRODUCE WIRE ROD WASHING MACHINE ELECTRIC MOTOR WASHING MACHINE ELECTROLYSIS TO PRODUCE COPPER CATHODE MELTING AND REFINING DISASSEMBLY 10 Liljedahl Bare Wire Sustainability Report 2015 Sustrapporten2015f.indd 10 2016-09-13 15:33:35
Health and Safety THE SAFETY, HEALTH AND WELFARE OF OUR EMPLOYEES It is important to identify workplace hazards in our operations. If we focus on health and preventive measures, our employees will have less worries about the workplace safety, and better avoid workplace hazards. In 2015 we have encouraged our employees to report risk observations to be able to prevent accidents. The work has been fruitful and it is a good base for further improvements. In 2016 we will increase our focus on the safety in the production sites. It will mean a continued focus on the safety measures and personal safety equipment. But most importantly, it will focus on creating a safety culture. To be able to improve the safety culture, and the concern for safety issues, we will reorganize our safety committees. Risk assessments will be improved during 2016 to find improvements and to prevent incidents. By working with risk assessments there are great possibilities to maintain health and safety in the operations. SWEDEN 121 risk observations were registrered. 4 accidents with absence. GERMANY 4 accidents 32 days absence total, 0 accidents on the way to work CHINA No accidents In early 2015, as a result of our health and safety investigations we decided to require the use of helmets in the area of the melting and processes. Liljedahl Bare Wire Sustainability Report 2015 11 Sustrapporten2015f.indd 11 2016-09-13 15:33:35
WE BELIEVE IN SUSTAINABILITY FOR GOOD Box 914 251 09 Helsingborg, Sweden Tel: +46 42 19 53 00 Fax: +46 42 19 52 45 Editor: Jonas Ciardi, Quality and Environmental Manager Layout: Catharina Bläckberg, Communication Manager 12 Liljedahl Bare Wire Sustainability Report 2015 2016.09.05 Sustrapporten2015f.indd 12 2016-09-13 15:33:35