lish
Eng
www.mal.hu
MAGYAR ALUMÍNIUM
Magyar Aluminium
M
agyar Aluminium (Hungarian Aluminium) was formed as a group of companies,
which consisted of enterprises closely linked to the aluminium industry, the
activities of which were coordinated and controlled by MAL Magyar Aluminium
Inc. Most of the companies became MAL’s property during the privatization of the
Hungarian aluminium industry between 1992 and 1998. The Slovenian Silkem d.o.o. in
2001 the Bosnian Rudnici Boksita Jajce d.d. in 2004 joined the group. The structure of
the group was gradually simplified so the basic activities were concentrated into MAL Inc.,
while the other companies continue to operate as independent legal entities.
The companies in the Magyar Aluminium Group are related vertically through the flow of
products, utilising the opportunity presented by the fact that Hungary is one of the few
countries in Europe where bauxite is available in quantities and of a quality that renders
production profitable.The domestic bauxite resources are supplemented by the excellent
quality bauxites from the Bosnian mines.
Bauxite mining serves as a basis for alumina production of the Alumina Branch at Ajka.
Caustic soda, the most important auxiliray material of alumina production is also produced
by a Hungarian enterprise. The alumina plant produces smelter grade alumina exclusively
for the Aluminium Branch, while the majority of its output includes special alumina and
other related products. All the primary metal produced by the aluminium smelter operating at Várpalota is converted into semi-finished products, most of which MAL is the sole
manufacturer in Hungary.
An important line of business in the Group
involves casting activities. The ALU-Fém
Division produces casting alloys from
primary aluminium purchased from the
smelter as well as from aluminium scrap.
These alloys are used downstream as raw
material for the castings manufactured by
MAL-MWK Ltd.
The foreign companies of MAL supplement
the product range with high value added
products: the Slovenian Silkem d.o.o.
with special zeolites and ground alumina
oxides, and the Romanian MAL Product
S.R.L. with rigid and flexible tubes and
assorted household foils.
The Vision of Hungarian Aluminium:
The Group intends to be active in a
vertically integrated aluminium business
by aspiring to increase the level of
processing and thereby enhancing the
added value of its products.
It wishes to become or remain market
leader in the Central European region for
the following products: chemical alumina
hydrates, non-smelter grade alumina,
milled hydrate and alumina, tabular
alumina, zeolite, gallium, aluminium
wires, slugs.
1
Magyar AlumInium
MAGYAR ALUMÍNIUM
MAL Group Structure
51 %
Rudnici Boksita
Jajce d.d.
(8.38 mKM)
66.67 %
100 %
50.06 %
Bauxite Mine
Management Ltd.
(73.12 mFt)
72.13 %
MAL Group Structure
MAL Deutschland
G.m.b.H.
(105 eEUR)
Silkem d.o.o.
(718.91 mSIT)
18 %
50 %
100 %
MAL-Product S.R.L.
(3,676 mROL)
78 %
MAL-MWK Ltd.
(185.8 mFt)
Bakony Bauxite Mine
Ltd.
(1,554 mFt)
Várpalotai Industrial Park Ltd.
(5 mFt)
The investment portfolio of MAL Ltd.
Effective: 31st December 2004
The subscribed capital is indicated below the company name.
MAGYAR ALUMÍNIUM
2
MAL Magyar Aluminium Ltd.
(3,000 mFt)
MAGYAR ALUMÍNIUM
T
he report on the activities of the Magyar Aluminium Group comprises the
consolidated economic data of MAL Inc., Bakony Bauxite Mines Ltd. and Silkem
d.o.o.
The external economic conditions were contradictory in 2004:
•
the net sales income of the Group increased by 7% from 45.2 billion HUF to 48.4
billion HUF while the income before tax was 377 mHUF, close to last year’s figures. The
profitability of the alumina based products has increased, while that of the aluminium
products decreased for the following reasons:
the price of the alumina products has increased world-wide in USD and
EUR terms as well, which had a positive effect on our sales revenues,
the price of aluminium on the LME also increased considerably, from 1,601
USD/t to 1,964 USD/t, but this increase hardly had any effect on the price of aluminium in HUF due to the weakening of the USD. So the exceptionally high dollar
price in HUF terms was 26% lower than the 2001 level,
the costs of the energy resources increased by 12.5% and the price of steel
products by 70%, which by far exceeded the increase of our incomes.
As a compensation for the increase of certain cost items:
•
we increased considerably the output and sales of the highest added value products:
by 53% in case of hydrate and ground aluminas and special fine hydrate
products,
by 21% in case of aluminium strips.
•
despite the 6.8% domestic inflation we managed to keep the technological material
costs of the Group /without the energy costs/ on previous year’s level.
The Group spent HUF 2.9 billion on investments and refurbishments, the same amount
as in previous year. Its main items were:
•
renewal of domestic bauxite mining capacities,
•
expansion of capacities of fine grain hydrate and alumina products,
•
expansion of capacities for aluminium melting,
•
improvement of aluminium continuous casting.
The Group management is greatly influenced by the quality and cost of the bauxite
supplies and on the other hand by the price of the energy resources (electrical energy,
steam, natural gas). We have continued and increased the import of bauxite from exYugoslav region the quality of which exceeds that of the domestic bauxite. In 2004 more
than a quarter of the alumina was produced from imported bauxite. The safety of supply
was greatly increased by obtaining majority shares in the Jajce mines. In the meantime
we started to improve the mine in order to double its capacity.
Aluminium smelting has started to show more and more deficit since 2003 due to the
increasing energy costs.
3
Chairman’s Report
Chairman’s Report
Therefore in 2004 we started to prepare for an eventual close of the smelter. We have
made an investment of HUF 1.2 billion to establish such a modern melting capacity which
can substitute the 33,000 tonnes production capacity of the smelter.
It can melt aluminium ingots and good quality scraps on a world
standard concerning its energetic and metallurgical indicators. The
investment started in autumn 2004 and will start operation in the 4th
quarter of 2005.
This report is made in the middle of 2005, so I can announce that:
•
in order to improve the cost effectiveness of the domestic
bauxite mining we integrated it into MAL Inc. in June 2005,
•
we started new investments for the improvement of higher
value added Al2O3 based products (fine hydrates, tabular alumina),
•
the Board of Directors of MAL Inc. has made its final decision
to close the smelter, which means that we start to gradually stop the
electrolytic cells in January 2006.
The graph below shows the quotations of baseload for 2006 on the
German electricity stock exchange, which is considered to be the
main market in Europe for electricity.
46,00
44,00
Baseload in 2006, (EUR/MWh)
42,00
40,00
38,00
36,00
34,00
32,00
2004.01.05
2004.01.19
2004.02.02
2004.02.16
2004.03.01
2004.03.15
2004.03.29
2004.04.12
2004.04.26
2004.05.10
2004.05.24
2004.06.07
2004.06.21
2004.07.05
2004.07.19
2004.08.02
2004.08.16
2004.08.30
2004.09.13
2004.09.27
2004.10.11
2004.10.25
2004.11.08
2004.11.22
2004.12.06
2004.12.20
2005.01.03
2005.01.17
2005.01.31
2005.02.14
2005.02.28
2005.03.14
2005.03.28
2005.04.11
2005.04.25
2005.05.09
2005.05.23
2005.06.06
2005.06.20
2005.07.04
Chairman’s Report
MAGYAR ALUMÍNIUM
For continuing the operations of the smelter we would need a price level below 30 EUR/
MWh, the likelihood of which in the near future is very low.
The closing of the smelter does not affect the production of aluminium semis, in fact it
reduces the cost of raw material compared to our own production. Another advantage is
that after the closing of the smelter the energy dependence of MAL Inc. falls to half of
current levels. According to our medium-term plans we intend to increase the production
of aluminium semis by 50% till 2010.
I trust that we can manage well the considerable changes with my colleagues and in the
future we can pay even more attention to our products and to meeting the expectations
of our customers.
Dr. Lajos Tolnay
Chairman of the Board
4
MAGYAR ALUMÍNIUM
T
he business activity of the Group was stable during the year on the side of the
products as well as financing. The changes which started last year in the external
conditions turned out to be lasting and some of them had a positive, while others
a negative effect on our operations:
•
the increase of the price of smelter grade alumina became sharper and after a
short set-back continued to increase,
•
the price of aluminium increased continuously and on a yearly average reached
1,716 USD/tons,
•
the EUR/HUF exchange rate remained practically stable during the year, but the
HUF appreciated against the USD.
Alumina and aluminium price from 1994
510
2 100
1 900
LME 3 months price US$/t
410
Alumina (US$/t)
2 000
Alumina spot price US$/t
1 800
360
1 700
310
1 600
260
1 500
210
1 400
2004 QIII
2004 QI
2003 QIII
2003 QI
2002 QIII
2002 QI
2001 QIII
2001 QI
2000 QIII
2000 QI
1999 QIII
1999 QI
1998 QIII
1998 QI
1997 QIII
1997 QI
1996 QIII
1996 QI
1995 QIII
1 200
1995 QI
110
1994 QIII
1 300
1994 QI
160
LME Aluminium (US$/t)
460
315
305
295
285
275
265
255
245
235
225
215
205
195
185
175
HUF / USD
2004.12.30
2004.10.21
2004.08.16
2004.06.09
2004.03.31
2004.01.22
2003.11.10
2003.09.01
2003.06.24
2003.04.11
2003.02.04
2002.11.22
2002.09.13
2002.07.05
2002.04.26
2002.02.15
2001.12.04
2001.09.26
2001.07.18
2001.05.09
2001.02.28
2000.12.19
2000.10.11
2000.08.03
2000.05.26
2000.03.10
HUF / EURO
2000.01.04
HUF/EURO, HUF/USD
The exchange rate of the HUF
Average exchange rates in 2004: 1 EUR = 251.68 HUF
1 USD = 202.63 HUF
5
Business Activity
Business activity
Bakony Bauxite Mine Ltd. produced 628 kt bauxite, 6.7% less than in previous year.
Nearly all of this /624 kt/ was sold to MAL’s Alumina Branch. Its net sales revenue was
only 2.1% lower than in previous year and reached HUF 4,606 million. Operating profit
came to HUF 272 million, profit according to balance sheet amounts to HUF – 5 million,
even with the HUF 310 million cost of closing of the Fenyõfõ mine.
The Alumina Branch produced 304 kt of alumina weight, 4 kt more than in previous
year. The raw material was mainly domestic bauxite, but the Branch used already 156
kt of imported bauxite. Smelter grade alumina totalling 64 kt was produced solely for
the Aluminium Branch of the Group. The 233 kt external sales were achieved in the
form of different types of hydrates and non-smelter grade aluminas. With this MAL Inc.
strengthened its 15% share on the markets of special hydrates and aluminas. Gallium
production totalled 5.3 tonnes, nearly the same level as last year, while zeolite production
increased by nearly 30% , exceeding 26 kt level. The net sales income of the Branch outside the Group increased by 8% and reached HUF 18.1 billion.
The position of the Aluminium Branch was affected controversially by the aluminium price
and the currency exchange rate changes. The price of aluminium on the LME increased
on a yearly average from 1,432 USD/t in 2003 to 1,716 USD/t in 2004. At the same time
the HUF/USD exchange rate decreased by 10% from 224 to 202. Thus the price of aluminium in HUF terms increased only by 26 HUF/t, which was fully absorbed by the increase of the cost of electricity. The volume of semi-finished production was 36.9 kt, 5.1%
less than in previous year, while secondary alloy production was up by 31% to 21.3 kt. The
production of strips increased by 21% to 4.6 kt. Slug production which serves as a raw
material for aerosol can and collapsible tube production nearly reached 10 kt, while the
volumes of drawn wires remained practically the same with 5.4 kt. The net sales income
of the Branch increased by 5% and reached HUF 25.5 billion.
Aluminium HG cash price in USD, EUR and HUF
2 100
550 000
2 000
500 000
HG cash EUR
HG cash USD
HG cash HUF
1 900
1 800
1 700
450 000
400 000
1 600
350 000
1 500
1 400
300 000
1 300
250 000
1 200
6
2004.11.04
2004.09.04
2004.07.04
2004.05.04
2004.03.04
2004.01.04
2003.11.04
2003.09.04
2003.07.04
2003.05.04
2003.03.04
2003.01.04
2002.11.04
2002.09.04
2002.07.04
2002.05.04
2002.03.04
2002.01.04
2001.11.04
2001.09.04
2001.07.04
2001.05.04
2001.03.04
2001.01.04
2000.11.04
2000.09.04
2000.07.04
2000.05.04
2000.03.04
200 000
2000.01.04
1 100
Aluminium HG cash HUF
Aluminium HG cash EUR, USD
Business Activity
MAGYAR ALUMÍNIUM
The total net sales income of the two Branches and other products increased by 6% and
reached HUF 43.7 billion, the profit before tax amounts to HUF 122 million while profit per
balance sheet came to HUF 61 million.
The business activity of MAL Inc. comprises that of the two Branches, so the indicators of
MAL Inc. are equivalent to the previously stated.
Net sales income of the Slovenian SILKEM d.o.o. in 2004 reached EUR 25.6 million, an
increase of 23% compared to previous year.
The sales of zeolites and silicates slightly decreased, while the sales of special aluminas
and tabular alumina jumped up considerably.
Profit before tax was EUR 1,014 thousand, which shows a 58% increase on last year.
Profit per balance sheet totalled up to EUR 874 thousand.
The product structure of MAL Inc., SILKEM d.o.o. and Bakony Bauxite Mines Ltd., the
units included in the consolidation is shown on the table below, eliminating the effects
of internal product sales. (The marginal sales of Bakony Bauxite Mines Ltd. outside the
group is not included in the table.)
Casting alloys 16.4%
Aluminium
wires
20.2%
Other products and
services 3.2%
Alumina-hydrate 9.2%
Non-smelter grade
alumina 27.9%
Zeolites and silicates
8.4%
Aluminium strips and slugs 14.7%
7
Business Activity
MAGYAR ALUMÍNIUM
The ratio of casting alloys and non-smelter grade aluminas rose, while the ratio of wires,
especially properzi (wire-rod) dropped. The product structure does not show the 700 kt/
year bauxite production, because it is consumed internally and used for the production of
alumina and to a small extent for zeolite production.
In the consolidated income of the Group the volume of non-aluminium and aluminium
based products increased to a similar extent.
Trend of net sales incomes
30000
Aluminium Products
25000
mHUF
Business Activity
MAGYAR ALUMÍNIUM
Alumina based products
20000
15000
10000
5000
0
2003.
2004.
2005.
Simplified – consolidated P&L of the Group
Tausend HUF
Description
2002
2003
2004
Net domestic sales
13,300,808 15,550,695 14,437,246
Net export sales
27,663,943 29,688,193 33,933,467
Other income and capitalised own performance
244,344 1,395,393 2,185,031
Income and capitalised own performance
41,209,095 46,634,281 50,555,744
Income before tax
Tax liability
Profit after tax
Dividend paid
Profit per balance sheet
1,389,904
216,238
1,173,666
116,281
1,057,385
398,056
92,259
305,797
140,000
165,797
376,863
35,776
341,087
60,000
281,087
+ In 2002 the consolidated data comprise MAL Inc. and SILKEM d.o.o., while in 2003 and
2004 the data of Bakony Bauxite Mines Ltd. are also included.
8
MAGYAR ALUMÍNIUM
Description
Fixed assets
Current assets
Prepayments and accrued income
Total assets
Tausend HUF
2002
2003
2004
14,260,439 17,053,311 16,789,880
14,667,009 18,091,496 19,770,887
281,460
693,633
528,571
29,208,908 35,838,440 37,089,338
Capital and reserves
Provisions
Liabilities
Accrued expenses and deferred income
Total liabilites
15,792,275 16,686,453 16,758,922
474,469
613,832
437,098
12,159,031 17,332,847 18,328,251
783,133 1,205,308 1,565,067
29,208,908 35,838,440 37,089,338
Remark: the data of the different years listed in the Simplified – consolidated P&L and the
Balance Sheet of the Group can be compared with consideration that in the they do not
contain the data of the same companies every year.
The Group managed to slightly improve its position compared to 2003 despite the unfavourable external conditions (high energy costs, weak USD) The Alumina Branch and
SILKEM d.o.o. played the decisive role in increasing our results.
9
Business Activity
Consolidated Balance Sheet of the Group
MAGYAR ALUMÍNIUM
Organisation of MAL Ltd.
Organisation of MAL Ltd. (on 31st December, 2004)
General Meeting
Auditor
Board of Directors
Supervisory Board
Managing
Director
Secretariat
Economic
block
Dep. Man. Dir.
Economy
Risk
Management
Purchasing
Accounting
Finance
Human
Resources
Information
Technology
Project
Management
Controlling
Alumina Branch
Sales and
Marketing
Hydrate
10
Technical
Services Ajka
Hydrate
Processing
Sales and
Marketing
Dep. Man. Dir.
Dep. Man. Dir.
R+D &
Quality Issues
M
Aluminium Branch
Fine
Product
Technical
Services Inota
Electrolysis
R+D &
Quality Issues
Slug & Strip
Drawn
wires
Billets &
Alloys
AL Ltd. management ( from right to left): Members of the Board - Dr. Árpád
Bakonyi, Vice President, Dr. Lajos Tolnay, Chairman, Béla Petrusz, Vice
President, - and Ph.D. Nándor Sillinger Managing Director.
MAGYAR ALUMÍNIUM
H
ungary is one of the few countries
in Europe where there are
exploitable
bauxite
deposits.
These are mainly located in the northern
regions of Transdanubia, where the Ajka
alumina plant also operates. Mining has
been pursued in the region since 1925
within the competence of Bakony Bauxite
Mine Ltd. or its legal predecessors.
Due to the specific location of bauxite
deposits 2/3 of the annual output of around
600 kilo tons comes from underground
and 1/3 from open cast mines. Mine
operations are in progress concurrently
at 4-6 sites.
The typical composition of bauxite: 4752% Al2O3, 6-8% SiO2, 20-25% Fe2O3.
Árpád Kovacsics
General Manager
Areas of bauxite research and
mining in Hungary
Underground mines in
operation
Open cast mines in operation
Area of research
Bauxite is produced from what are known as
drives and rooms formed at 100-400 metres
below the surface in underground mines.
The ore is exploded of the face of rooms
as they are advanced from the drives, and
is in turn transported by remotely controlled
trucks to the conveyor.
Open cast mining is fully automated using
high performance excavators.
11
BAkony Bauxite Mine Ltd.
Bakony Bauxite Mine Ltd.
MAGYAR ALUMÍNIUM
Rudnici Boksita Jajce d.d.
Rudnici Boksita Jajce d.d.
T
he bauxite occurances of the company
are located near the town of Jajce in
Bosnia.
The known bauxite deposits are among the best
in the world due to their high aluminium oxide
and low silicon-oxide contents. The typical
composition of the ore: 55-58% Al2O3, 2,4-2,6%
SiO2.
Tihomir Radovac
Managing Director
Owing to the favourable composition, the recovery in production is good and the loss of
caustic soda is small.
Bauxite mining is in progress concurrently at 2-3 sites.
Open cast mining
Loading machine in underground
mining
The bauxite lenses are situated near the surface of the hills’ slopes in consequence of
earth crustal movements during the millions of years. Due to this the accesses to the
mines are mainly nearly horizontal adits in different levels on the hillsides. Furthermore
both the bauxite and the bedrocks are stable so there is only a limited need for the expensive supports in the openings contrary to the Hungarian bauxite deposits.
A smaller part of the resources is exploitable by open pits.
12
MAGYAR ALUMÍNIUM
MAL Ltd. Alumina Branch
MAL Ltd. Alumina Branch
T
Ferenc Sitkei
he Alumina Branch of MAL Dep. Managing Director:
Ltd. operates in Ajka and
„Significant task of the
concentrates on the production Branch is the increasing of
of alumina hydrate, alumina, zeolite and quantities of fine hydrate and
gallium. The individual products are in
ground products.”
close technological connection with
each other.
Products of the Branch and their vertical connections:
Sodium Aluminate Solution
Gallium (4N…..7N)
Fine hydrates (1-2 �m)
Synthetic zeolites
White hydrate (50 �m)
Dried hydrates
Normal hydrates (75 �m)
Calcined aluminas (BET:1..180 m2/g)
Ground hydrates (2….30 �m)
Aluminas with small Soda content (0,05…0,1%)
Ground aluminas ( 2….30 �m)
The capacity of the alumina plant is 300 kt/year. The aluminium oxide content of the
bauxite is obtained by adding sodium hydroxide to the bauxite. Using two precipitation
systems the plant produces a wide variety of hydrates as regards grain distribution, soda
content and whiteness. Hydrate and alumina types are both produced in ground form.
The alumina hydrate is the raw material of SILKEM d.o.o.’s zeolite production, while
alumina is used for its other products.
13
MAL Ltd. Alumina Branch
MAGYAR ALUMÍNIUM
Aluminate liquor is subjected to a process of electrolysis to remove gallium, which is then
purified by a variety of procedures. Aluminate liquor is also used for production of fine
hydrates and zeolite. The number of product types is close to 70.
Alumina hydrate crystals forming in the
aluminate liquor during precipitation are
ramose with the typical size between 10-90
micrometers.
The 0.2-0.4% Na2O content in “normal”
calcined alumina hydrate can be reduced to
0.05-0.1% by additional chemical treatment.
Fine hydrate filtering
Hydrate grains are milled to preset size
after drying, the grain size distribution
curves of various product types.
14
By calcinating alumina hydrate over 1000 °C, alumina is produced in a variety of
qualities.
Regulated
calcination
produces primary alumina
crystals
of
mainly
the
predetermined size.
Alumina is ground in a ball-mill to a grain size of 3-5
micrometer
The gallium contained in
bauxite and dissolved in the
aluminate liquor is separated
by a mercury cathode
electrolysis. Raw gallium is
purified to 99,99999% (7N),
if necessary by cementation,
electrolytic and fractionated
crystallization technologies.
Gallium monocrystal
Bringing part of the aluminate liquor into
reaction with soluble glass yields sodium
aluminium silicates with water softening
properties, known as zeolites. 4A zeolite
removes calcium ions, while AX zeolite
removes both calcium and magnesium
ions from liquids. Zeolites are fundamental
ingredients of environmentally friendly
detergents.
15
MAL Ltd. Alumina Branch
MAGYAR ALUMÍNIUM
MAL Ltd. Aluminium Branch
MAGYAR ALUMÍNIUM
MAL Ltd. Aluminium Branch
T
he Branch consists of four product divisions: Electrolysis and
Cast-house, Slugs and Narrow
Strips, Drawn Wires and Alu-Fém divisions. The Aluminium Branch operates
the sole smelter of Hungary. Its capacity
is 35 Ktons, current strength 77 KA,
current efficiency is about 90%.
Electrolytic cells
Géza Csathó
Dep. Managing Director:„We
concentrate the resources of
the Branch on the development
of rolled products.”
Electrodes
Anode
Electrolyte
Aluminium
Cold rolling of narrow strips
Cathode
Continuous casting of aluminium
strips from molten metal
16
MAGYAR ALUMÍNIUM
All the aluminium produced will be further processed:
Al. ingots
Continuous Casting
MAL Ltd. Aluminium Branch
Liquid aluminium
Al. Scrap
Production of secondary
alloys and extrusion billets
2/3 of the aluminium output is used to
make continuous cast wire, while 1/3 is
cast rolled into narrow strips and slugs. The
final properties of these products develop in
additional cold forming.
Hot rolled coils
Casting alloys
Cold rolling
Narrow strips
Slug production
Properzi rod
Wire drawing
Slugs
Drawn wires
The raw material of collapsible tubes and
aerosol cans is produced by continuous
casting and cold rolling of narrow strips. The
slugs with different dimensions are cut out on
presses with different dies.
Slugs
Coil tension leveller
17
MAL Ltd. Aluminium Branch
MAGYAR ALUMÍNIUM
Strips with a variety of gauges and widths are
made from continuously cast strips by several
stages of cold rolling.
Slitting machine for strips
The unalloyed properzi cast wire rod of 9.5-15 mm in
diameter made by continuous casting serve as base
material for electric transmission cables.
Properzi wire alloyed with magnesium and/or silicon
is used for making wires for a variety of industrial
applications as well as for the electrical industry.
Wire rod coil
Fine wire producing machine
18
MAGYAR ALUMÍNIUM
The capacity available at the company is
sufficient for making 8 kt p.a. of wire, to a
minimum thickness of 0.15 mm in diameter.
Major product application areas:
• Electric cables,
• Food packaging,
• Metallizing,
• Metal spraying,
• Welding.
The main raw material of the Alu-Fém division is the aluminium scrap which is only
supplemented by the primary Aluminium bought from the smelter or from outside the
Group.
After the necessary selecting and packing of scrap of various origin, charges are melted
down and alloyed to produce high quality casting alloys.
Casting alloy ingots
19
MAL Ltd. Aluminium Branch
Drawn wires
MAGYAR ALUMÍNIUM
SILKEM d.o.o.
SILKEM d.o.o.
M
AL Ltd. bought the majority ownership in
December 2001 in the framework of an
open tender because the activities and
the product range of Silkem fits well to the Alumina
Branch.
Janez Bedrac
General Manager
The main product lines of Silkem:
•
•
•
4A zeolite and other types of zeolites,
ground aluminas and magnesium oxides for refractories,
tabular alumina.
The capacity is 40,000 tons/year for the 4A quality, the so-called basic-zeolite which
supplements MAL Ltd.’s similar capacity.
Some of the zeolite is used to produce pre-mixtures for the detergent industry.
The new profile, the production of tabular alumina was started at the end of 2001 with a
capacity of 15,000 tons/year.
The raw materials for the refractory industry are produced from the ignited tabular balls
with crashing, grinding and classifying.
The alumina hydrate and alumina is delivered to the company by MAL Ltd.
Part of the zeolite
plants
Tabular alumina
balls
20
MAGYAR ALUMÍNIUM
Gyula Fuják
Director
T
he company was incorporated
by MAL Ltd. in Romania, with
the head office at Miercurea
Ciuc in 1998 and is responsible for
manufacturing finished goods for the
Romanian market from raw materials
produced in the MAL Group.
Making packaged household foil from
foil supplied by KÖBAL Ltd.
Strips shipped by Aluminium Branch are
used for making rigid and flexible tubes,
chimney elements, coupling profiles and
fittings.
Equipment for manufacturing
flexible tubes.
The company also produces protective work-clothes for the different divisions of MAL
Group and also organizes additional work-force in the region for MAL Ltd.
21
MAL-Product S.R.L.
MAL-Product S.R.L.
MAGYAR ALUMÍNIUM
MAL-MWK Co. Ltd.
MAL-MWK Co. Ltd.
Csongor J. Kovács
Director
O
wned by MAL Ltd. (50%) and Metallwerke KLOSS GmbH, a German manufacturer
of castings, the main activity of the company is the production of aluminium castings.
The business was set up as a greenfield operation and started production in April
1998. In 2004 it produced 825 tons of castings and has already obtained the necessary
ISO qualifications.
The casting technology applied is gravity die
casting with sand core, if required. Gravity
casting die halves are moved by hydraulic
systems during casting cycles.
The users of castings are mostly the extremely
demanding buyers of automotive suppliers.
The doubling of the casting capacity is taking
course by establishing a sand foundry based
on an automatic moulding line.
Some of the castings produced
Intake manifold
Closing cover
22
Thermostat lid for cars
MAGYAR ALUMÍNIUM
Quality-Consciousness
A
•
MAL Ltd.:
ISO 9001
•
Silkem d.o.o.:
ISO 9001
•
MAL-MWK Co. Ltd.: ISO/TS 16949,
ISO 9001,
QS 9000
Quality-Consciousness
s 70% of the output of the MAL
Group is exported and as the
domestic market is also open, all
the products of the Group are forced to
compete on the basis of quality and cost.
Hence product quality is the focus of the
production process.
In 2003 MAL Ltd. unified and had its quality
management system audited on a Group
level. In previous years this had been done
by the branches on the level of divisions:
In addition to the above listed ISO qualifications, certain units within the company
organisation also hold other certificates, such as laboratory accreditation, improvement
of pressure vessels, environmental control, etc.
A main objective of the Group of companies calls for the
application of decades of technological experience and
quality-consciousness to supply Group customers with
products of the expected quality or better.
The successful realisation of this goal was confirmed
by winning the National Quality Award in 2000 by Ajka
Alumina Ltd. (now Alumina Branch)
The National Quality Award
23
MAGYAR ALUMÍNIUM
Environmental Protection
Environmental Protection
O
wing to the unique technology, the companies in the Group are sensitive to the
environment. To put it bluntly, most of the processes applied pollute the environment
and the unfavourable impact can only be reduced to required standards by
conscious and costly interventions. The technologies ‘inherited’ from the era of stateownership do not yet all comply with environmental standards, but the environmental
authorities have already specified the actual measures to be taken in almost all of the
areas and their implementation is proceeding on schedule. The summary below offers an
overview of major programs that have been implemented and those still under way.
Active pumping of water, a very significant operation associated in former times with underground bauxite mining, has ceased to exist.
Rehabilitating the pits of depleted open cast
mines is a present priority and will remain so in
the future. The picture on the left is an actual
example of new vegetation.
The pit of a former mine, three years
after backfill and planting vegetation
The environmental operations of making (rehabilitation).
alumina are associated first of all with the
disposal of red mud, generated as the insoluble
Dam
residue of bauxite. Measures are needed to
prevent the sodium hydroxide contained in the
Water discharge
red mud disposed of among watertight banks
channeled to
from seeping into the soil.
neutralisation
The bays constructed earlier on are
Red mud
Aquiclude
not properly insulated, hence a system
cutoff
of circular banks is constructed now to
ensure perfect cut-off.
The artificial cut-off embedded into the
impermeable clay closes off the flow of
Pervious soil
polluted water.
Aquiclude mud
Nature has regained its growing space
on the filled, recultivated red mud
deposit.
24
MAGYAR ALUMÍNIUM
Environmental Protection
Another important environmental operation
related to alumina production is trapping
the alumina dust generated in the process
of roasting the alumina hydrate.
At present all calcinating furnaces are
equipped with an electrostatic dust
separator.
During electrolysis, the electrolyte gives off
fluoride compounds, while various hydrocarbons are also emitted by what is known
as the self-burning anode.
Gases evacuated from the electrolysis
cells of Aluminium Branch are purified by
a modern process whereby pollutants,
primarily fluoride, are caught on the surface
of the alumina to enter electrolysis.
Also a project is on the agenda to achieve
substantial reduction in hazardous
hydrocarbon emissions by changing the
composition of the anode paste used.
In order to ensure environmental centered operations, MAL Ltd. established a so called
environment centered management system, which has certification according to ISO
14001 system.
25
MAGYAR ALUMÍNIUM
Human Resources
Human Resources
T
he management of MAL Ltd. attaches great significance to human resources, that
is to say the employees of the company group. There is no way to make products
of reliable quality, no way to improve products and processes, no way to keep
reducing the costs of manufacturing without committed employees.
The companies of the Group employed 2,060 people in late 2004, 164 of which have
university or college degrees.
After privatisation, all the employees
participated
in
professional
upgrading programs that clarified
the requirements and operating
standards of private enterprises in
contrast with those expected by
state-owned operations.
In addition, members of the middle
and senior management of group
companies gained insight into
state-of-the-art
management
methodologies at training courses
organised for the purpose.
The programs have contributed
considerably to the substantial
increase in operating efficiencies at
the Group.
Management training
It is the goal of the management of MAL to have the participants of the manufacturing and
management systems identify with, and to get their constructive support for implementing
the objectives of the Group as soon as possible.
The Group provides wide-ranging welfare benefits to its employees, including support to
membership in voluntary pension funds, contribution to apartment rental fees, etc.
On average, welfare benefits make up about 10% of wages.
26
Offices of the MAL Ltd.
MAGYAR ALUMÍNIUM
Offices of the
MAL Ltd.
Phonenumber
Headquarters
(+36) 22/550-100
Trade Offices
(+36) 1/309-4200
Alumina Branch
(+36) 88/522-400
Aluminium Branch
(+36) 88/544-100
Wertretung in Deutschland (+49) 211/5560588
Fax
(+36) 22/550-156
(+36) 1/309-4211
(+36) 88/311-634
(+36) 88/371-889
(+49) 211/5591233
Edited by: NORTEC-2000 Ltd., H-2045
Törökbálint, Kastély u. 45.
27
Düsseldorf
Ajka
Budapest
Székesfehérvár
Várpalota
Kidricevo
Csíkszereda
Adriatic
Sea
Jajce