Annual Report 2010 1
His Royal Highness Prince       His Royal Majesty King      His Royal Highness Prince                        Khalifa Bin S...
Contents      2   Board of Directors      3   Executives  4-5     Chairman’s Message  6-8     CEO’s Message      9   Alba’...
Board of                                                                        Executive                                 ...
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Message                                                                                           Operational             ...
Financial                                                           Net Profit (US$ million)                              ...
Corporate                                                                                                                 ...
Corporate                                                                                                                 ...
Products                                                                                                                  ...
Safety,                                                                                                                   ...
Safety, Environment,                                                                                                      ...
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
Alba Annual Report 2010
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Alba Annual Report 2010

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Aluminium Bahrain (Alba) Annual Report for 2010, for more information please visit our official website http://www.albasmelter.com

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Alba Annual Report 2010

  1. 1. Annual Report 2010 1
  2. 2. His Royal Highness Prince His Royal Majesty King His Royal Highness Prince Khalifa Bin Salman Al Khalifa Hamad Bin Isa Al Khalifa Salman Bin Hamad Al Khalifa The Prime Minister The King The Crown Prince of The Kingdom of Bahrain and Deputy Supreme CommanderAnnual Report 2010 2
  3. 3. Contents 2 Board of Directors 3 Executives 4-5 Chairman’s Message 6-8 CEO’s Message 9 Alba’s Operational Highlights10 - 11 Alba’s Financial Highlights12 - 15 Corporate Governance16 - 17 Products and Markets18 - 21 Safety, Environment, Security and Fire22 - 23 Corporate Social Responsibility24 - 58 Financials Annual Report 2010 1
  4. 4. Board of Executive Directors Management Chairman Mahmood Hashim Al Kooheji Chief Executive Officer Laurent Schmitt Mr. Fawzi A. Sh. Mohammad bin Mr. Osama M. Mr. Mutlaq H. Kanoo Khalifa Al Khalifa Al Arrayedh Al MorishedMr. David E. Meen Mr. Abdulaziz S. Mr. Yousif A. Taqi Mr. Homood A. Chief Chief Chief Al Humaid Al Tuwaijri Financial Supply Chain Marketing Officer Officer Officer Tim Murray Isa Abdul Latif Jean-Baptiste Lucas Al Ansari Annual Report 2010 2 Annual Report 2010 3
  5. 5. Chairman’s Message from the Chairman Message 2010 “In 2010, the 2010 has been focus on operational a year of recovery for efficiency and global Alba and the aluminium competitiveness industry after a ensured strengthened force for making 2010 ‘the Year of Recovery’. challenging 2009 productivity” Their efforts enabled us in many cases to work our assets efficiently while also maintaining a sustainable development. China saw continued growth, Western With the renewed confidence and In conclusion, it gives me much pleasure Europe witnessed buoyant industrial resurgence in the industrial sector, we to express my gratitude to His Majesty production and the key construction and foresee that the fundamentals for growth the King of Bahrain, King Hamad bin Isa Al automotive industries expanded apace. are strong, though the potential for Khalifa; the guidance of His Royal Highness With the gradual stabilisation of the world’s medium-volatility will remain a concern the Prime Minister, Prince Khalifa bin major developed economies in 2010, Alba due to persistent economic conditions. Salman Al Khalifa; the support of His Royal seized this opportunity to focus on its Highness the Crown Prince and Chairman organic growth and will continue this focus By remaining true to our core strategies of the Bahrain Economic Development throughout 2011 as the world becomes and beliefs, we have entered 2011 in a Board, Prince Salman bin Hamad Al Khalifa, more reliant on metals and minerals, and strong position to benefit as the demand and the Government of the Custodian in particular aluminium. This commitment for aluminium rebounds. We remain of the Two Holy Mosques, His Majesty King towards sustainable development is the long-run requires a balanced approach confident in the underlying value of what Abdullah Ibn Abdul Aziz Al Saud of the integral to our daily operations, to our to investing in growth and returning cash we have built, and our investors can be Kingdom of Saudi Arabia, without whose legacy and future. to shareholders while maintaining a strong assured that the company is in a position to support Alba’s accomplishments would100 89 balance sheet. deliver on that promise and see Alba’s value not have been possible. 80 We achieved an exemplary performance reflected in the stock. Revenues 60 in 2010 underlined by several milestones: Revenues scored BHD 751 million [US$ 2010 was a milestone year in Alba’s history as the company readied itself for As we move into 2011, Alba will continue increased 40 20 21 1,997 million], a 29% y-o-y increase; EBITDA meeting the opportunities of the future. to build on its reputation for technical The driving force 29% recorded BHD 208 million [US$ 552 million], The launch of Alba’s Initial Public Offering excellence and have the building blocks behind Alba’s success is 0 a substantial increase by 171% as compared (IPO) and listing on both the Bahrain for taking the company into a new era ‘to underpinned by its devoted 2009 2010 to 2009 while Net Income stood at BHD 138 million [US$ 368 million] compared to a loss Bourse and London Stock Exchange become one of the largest smelters in the world’. As we work towards realisation workforce 850,700 present a vital springboard for realising of BHD 83 million in 2009 [US$ 220 million]. the company’s global ambitions. The IPO of this vision, we ensure that with effective metric tonnes Cash Backto Shareholders In 2010, the focus on operational efficiency received a positive response from retail and institutional investors in less than a year procurement and supply integration, we are placed to maximise production across of net finished (BHD million) and global competitiveness ensured following the global financial crisis. our products to meet customers’ needs. products strengthened productivity to have net finished products of 850,700 metric tonnes As always, I am grateful to our Board – exceeding the projected volumes by of Directors for their stewardship and 1,537 metric tonnes. leadership in supporting the investments and strategies required for our long-term Alba remains committed to efficient capital success. I also extend my appreciation to management – we strongly believe that to our workforce in Alba for their efforts serve the best interest of shareholders in which have proven to be the underlying Annual Report 2010 4 Annual Report 2010 5
  6. 6. Message Message from the CEO from the CEO 2010 2010 saw Alba In 2010 the global economic recovery global player in the market with anrecording an exceptional resulted in a significant increase in aluminium consumption which allowed appetite for future growth. Alba’s stock being publicly traded enables the recovery and creating Alba to capitalise on the improved market conditions as well as leverage maximum company to compete more effectively in international markets as well as to a defined pathway benefits from our STAR performance improvement programme. capitalise increasingly on worldwide opportunities. for sustainable growth Alba benefited from the appreciation in aluminium price from US$ 1,665 per “Alba was metric tonne in 2009 to US$ 2,173 in 2010. The STAR programme had a favourable pleased to receive, impact of BHD 38 million [US$ 100 million] for a fourth consecutive by focusing on 3 main areas (Operational Excellence, Sales and Marketing, and year, two prestigious Working Capital management). Through Operational Excellence we were able to awards for safety in improve our organisational efficiency by 11%. In Sales & Marketing, we were able to the workplace” Alba continues to demonstrate its Organisational improve our Value Added products sales by 43% and on Working Capital Management Furthermore, it completes Alba’s commitment to corporate social responsibility through serving the efficiency we were able to reduce Accounts Receivable and Inventory days by 12% and evolution into a purely commercial entity and fosters the company’s long-held local community of Bahrain and giving unwavering attention to protection of its improved by 19%, respectively. commitment to transparency and sound environment. Among its many activities 11% corporate governance. throughout 2010, Alba partnered with the Based upon the 2010 achievements, Bahrain International Circuit to encourage EBITDA reached BHD 208 million [US$ 552 In 2010, we increased our focus on the growth of motorsports in the Kingdom; Cash back million] compared to BHD 76 million [US$ 203 million] in 2009 while the generated operational efficiency and risk management with a particular emphasis participated in a number of training- related activities for the country’s youth; to shareholders Free Cash Flow was BHD 186 million [US$ 495 million] versus BHD 105 million on compliance and continuous improvement on different angles from and continued involvement in community services such as hospital visiting and first of BHD 89 [US$ 279 million] in 2009. These financial employee health to safety. Alba was aid and safety awareness campaigns. million results enabled Alba to pay cash back to pleased to receive, for a fourth consecutive shareholders of BHD 89 million [US$238 year, two prestigious awards for safety As we move towards 2011, the company million] during 2010 as well as reduce in the workplace from both British Safety seeks to capitalise on 2010 achievements overall debt profile by BHD 70 million [US$ Council and the Royal Society for the by maximising the sale of Value Added 185 million]. In addition, a new dividend to Prevention of Accidents. products; achieving an operational be paid in April 2011 of BHD 62 million [US$ performance improvement of BHD 64 164 million] has been approved by the Alba million [US$170 million] in 2011 against Board. Alba partnered 2009 thanks to the continuation of the with the Bahrain International STAR programme and the introduction A further landmark in 2010 was the Circuit to encourage the of a Six Sigma approach throughout launching of the Initial Public Offering (IPO) the company; completing its strategic and the dual listing in Bahrain Bourse and growth of motorsports sourcing of raw materials such as alumina, London Stock Exchange. These momentous in the Kingdom green petroleum coke and liquid pitch steps mark a new phase for the company’s competitively; and undertaking operations and highlight Alba’s role as a Annual Report 2010 6 Annual Report 2010 7
  7. 7. Message Operational Highlights from the CEO 2010 feasibility studies for CREEP expansions on Lines 4 and 5 with the aim of increasing productivity whilst determining the most December suitable technology and energy sources • Alba signs agreement with BIC for Speed Weekend to maximise economic return on any proposed new reduction line. September • HRH Crown Prince official patron of Metal Bulletin’s 25th International Aluminium Conference “Exceptional • Alba participates in Economic Development Board’s Paris Road Show contribution in April ensuring Alba’s success • Alba wins International Safety Award for the fourth time in raising operational • Alba appoints Bahraini as new Chief Supply Officer performance and February profitability during • Alba’s SMART Centre praised by November Continuation of the year” Health Ministry Officials • Alba & BIC announce new • Alba converts into a public‘STAR programme’ partnership company & introduction • Alba’s shares listed on Bahrain of ‘Six Sigma May Bourse and approach’ • Alba becomes the first company in London Stock Exchange GCC to launch SAP • Alba appoints services through new Chief Operational I remain thankful for Alba’s workforce Blackberry Marketing Officer performance who remains behind making it all happen. This driving force is integral to achieve • Alba wins prestigious improvement the company’s overall objectives. For that purpose, Alba believes in offering its March Royal Society for the Prevention of of BHD 64 employees training as well as rewarding • Alba sets new Accidents Gold million opportunities for personal and professional development. production milestone • Alba sets major Award safety record at I take the opportunity to thank the Calciner and Marine Chairman of Alba, all the Members of the Alba Board of Directors, the Executive Management Team, the Alba Labour Union and each and every Alba employee for their January exceptional contribution in ensuring Alba’s • New CEO onboard success in raising operational performance • Alba and profitability during the year. receives IFTDO international HR Award Annual Report 2010 8 Annual Report 2010 9
  8. 8. Financial Net Profit (US$ million) 450 300 368 Highlights 150 • Net Profit increased by 267% to US$ 368 million -220 0 • This solid performance was at large due to higher EBITDA levels 150 • 267% Y-o-Y Growth 300 Dec 31 Dec 31 2009 2010 2000 1,997 750 Shareholders’ Equity 2000 1,739 1,858 1600 1,549 600 552 (US$ million) 1600 1200 450 1200 • Shareholders’ Equity reached US$ 1,858 million 800 800 300 203 due to higher levels of Net Profit resulting in an increase 400 150 in Retained Earnings 400 0 0 • 7% Y-o-Y Growth 0 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 2009 2010 2009 2010 2009 2010 Revenues (US$ million) EBITDA (US$ million) 250 238 • Revenues increased by 29% due to a dramatic • EBITDA outstanding performance was Cash Payback to 200 shift in LME, Product Mix as well as Pricing Power driven mainly by higher Revenues Shareholders (US$ million) 150• The changes in the Product Mix are mainly due to • Cost management initiatives played a major 100 an increase in Value Added products and Liquid role contributing to higher EBITDA levels • Cash Payback to Shareholders increased 56 Metals with a decrease in Commodity products • 172% Y-o-Y Growth mainly because of higher level of Free-Cash flow (FCF) 50 • 29% Y-o-Y Growth • 325% Y-o-Y Growth 0 Dec 31 Dec 31 2009 2010 500 495 1250 1,115 250 894 400 279 1000 Equity Ratio (%) 200 300 750 150 140 125 200 500 • Total Assets remained almost unchanged 100 100 250 compared to 2009 • Shareholders’ Equity increased by 7% resulting 50 0 0 in an improvement of the Equity ratio 0 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 2009 2010 2009 2010 2009 2010 Free Cash Flow (US$ million) Net Debt (US$ million) 100• Free Cash Flow amounted US$ 495 million due to • Net Debt decreased by (20%) compared to 2009a major increase in cash generated from operations • This decrease is mainly attributed to repayments 80 64 • 77% Y-o-Y Growth of long-term loans and reduction in short-term 60 48 Revolving Credit as well as a net increase Leverage Ratio (%) 40 in cash & cash equivalents • Leverage ratio improved due to a higher Equity 20 • (20%) Y-o-Y Growth ratio and lower Net Debt ratio 0 Dec 31 Dec 31 2009 2010 Annual Report 2010 10 Annual Report 2010 11
  9. 9. Corporate Corporate Governance Governance Statement 2010 Statement In December 2010, the Board approved a revised Code of Conduct of the Company, setting out required ethical • Statutory Audit by our External Auditors, conduct for all employees and discussion by the Board Audit of the Company Committee of the results of the statutory audit, including a review of the financial performance, any changes to disclosure, Relevant information about the Principle 1.8 of the Code recommends that Principle 5.3 of the Code recommends that a subsequent events review, important corporate governance practices the Board should report to the shareholders the Board specify limits on the authority of accounting matters and other Internal applied by the Company beyond that it has completed the evaluation of the CEO or other officers, such as monetary control matters. the performance of the Board, and of each maximums for transactions which they may those required by the laws committee. The Company has completed authorise without separate Board approval, • Review and formal approval of the of Bahrain such evaluations and will report the same and that the Board review and agree a CEO financial results by the CFO, CEO, Board to shareholders at the annual meeting. succession plan. The Company has adopted Audit Committee and Board. The Corporate The Board of the Company has endorsed a “Levels of Authority” setting forth such Governance Code complying with the non-binding Principle 2.3 of the Code recommends limits, and will submit a CEO succession • Monitoring by the Risk Management Recommendations to the extent that the Board establish formal procedures plan to the Board for review and approval at department, of progress against agreed was issued in March practicable in order to ensure that the for periodic disclosure and updating of the Board meeting due to take place in the actions for risks relating to financial 2010 by the Ministry of Company adheres to best practice in information by directors on conflicts of second quarter of 2011. reporting identified through the application corporate governance.Industry and Commerce interest and for advance approval by of Alba’s Board approved Enterprise Risk disinterested directors or shareholders Principle 7.1 of the Code recommends that Management Framework. The BAC reviews (MOIC) of Bahrain. Full Principle 1.1 of the Code recommends that in which a director has an interest. The the Company require its outside auditor changes to the risk profile, together with compliance is required the Board adopt a formal charter. The Board Company has put such procedures in place, attend the annual shareholders’ meeting progress on actions for key risks on a adopted such a charter in February 2011. quarterly basis. for Bahraini public as reflected in the Board Charter. of the Company, and that the Company maintain a website. The Company’s outsidecompanies by end 2011. Principle 1.3 of the Code recommends Principle 3.1 of the Code recommends auditor will attend the meeting, and the • Internal Audit Function, working The Code contains that the Company should annually review that the members of the audit committee Company maintains a website. against a risk-based annual internal the independence of each director. The meet certain financial literacy qualifications audit plan covering key controls. The both binding directives Company has instituted procedures to and that the Board should adopt a In addition to the above, in December Chief Internal Auditor & Risk Officer and non-binding review the independence of directors “whistleblower” programme allowing 2010, the Board approved a revised Code (CIA&RO) reports directly to the BAC. The “Recommendations” annually (the first review took place in employees to raise concerns about financial of Conduct of the Company, setting out audit plan, budget, and methodologies September 2010). or legal improprieties confidentially. The required ethical conduct for all employees are approved and monitored by the members of the audit committee have the of the Company. Committee. On a quarterly basis, the BAC Principle 1.5 of the Code requires the requisite qualifications and the Company reviews and discusses the internal audit Board to ensure that directors’ concerns are has established a confidential hotline to findings, recommendations and agreed recorded in the Board minutes and that any allow employees to raise such concerns. Description of the main features management actions, as well as progress dissent from a Board action is noted. The of the Company’s internal control made against prior audit findings. Regular Company follows this practice. and risk management systems meetings are held between the BAC The company has in relation to the financial Chairman and the CIA&RO to discuss any Principle 1.7 of the Code recommends that established a “whistleblower” reporting process matters that the Committee or Internal each Board committee (the Company has programme allowing employees Audit believes should be discussed the two committees required by the Code – an audit committee and remuneration to raise concerns about The Board through the Board Audit separately. and nomination committee, which is financial or legal improprieties Committee (BAC) is responsible for • Audits carried out by the National Audit named the “Human Resources Committee”) confidentially ensuring a sound control environment. Court, and by Shareholder Audit teams. adopt formal written charters. The Board Monitoring of internal controls is provided adopted the Board Audit Committee through a number of internal and external assurance providers, including: • Board and sub-committee approval charter in March 2009 and the Human and monitoring of Operating, Financial, Resources Committee charter in December Manpower and other Plans. 2010. • Executive and Management monitoring activities (including the monitoring of Key Performance Indicators). Annual Report 2010 12 Annual Report 2010 13
  10. 10. Corporate Corporate Governance Statement Governance Statement 2010 2010 Description of the composition “The CEO and operation of the Company’s administrative, management convenes a weekly and supervisory bodies and their executive committee committees of all Chief Officers The Company is governed by a Board of Directors. The Board has ten positions and a weekly extended (nine members plus one vacancy); all current directors are outside directors. The executive committee Board operates in accordance with the laws of Bahrain, the Memorandum and of all Chief Officers and Articles of Association of the Company, Principal risks and uncertainties selected managers” and its charter. The Board of Directors has two subcommittees. The Board Audit faced by the business Committee, which carries out the Board’s • The Company’s competitive position in audit function in accordance with the • The cyclical nature of the Company’s the global aluminium industry is highly committee’s charter, has five members, industry has historically meant that there dependent on continued access to each of whom has a financial and/or is significant aluminium price and demand competitive and uninterrupted natural gas audit background. The Human Resources volatility, and a general production supply; an increase in the price of natural Committee, which carries out the Board’s overcapacity; gas, or interruption in its supply, could have nominating and remuneration functions a material adverse effect on the Company’s in accordance with the committee’s • The Company has no control over a business, financial condition, results of charter, has three members, all of whom number of factors that affect the price operations and future prospects; are outside directors. Relevant members of aluminium; of management attend Board and Board • The Company’s business may be affected committee meetings. • The Company operates in an industry by shortages of skilled employees, that gives rise to health, safety, security (including management), labour cost The Company is headed by a Chief and environmental risks; inflation and increased rates of attrition; Executive Officer (CEO), who has four Chief Officers reporting to him (Chief Financial • Fire, equipment breakdown, civil strike or • The Company depends on the provision Officer, Chief Operating Officer, Chief unrest, or loss of gas, power or other utilities of uninterrupted transportation services Supply Chain Officer, and Chief Marketing may result in loss of operational capability for the transportation of raw materials Officer). Each Chief Officer has a number or shutdowns for significant periods. and finished products across significant • The Company’s strategy includes growth of Managers reporting to him. The distances. Prices for such services and expansion of its operations, as well as Company has a Chief Internal Auditor and • The loss of any of the Company’s current (particularly for sea transport) could cost savings initiatives, which may not be a General Counsel/Corporate Secretary, two largest customers, or its inability to increase; achieved on time or on budget; each of whom report directly to the recover the receivables due from either Chairman of the Board. of them, or the long-term loan extended to • The Company has a number of hedging • The Company does not insure against one of them may have a material adverse contracts, and has historically experienced certain risks, and some of its insurance The cyclical nature The CEO convenes a weekly executive effect on its financial condition and future significant mark-to-market and realised coverage may be insufficient to coverof the Company’s industry committee of all Chief Officers and a weekly prospects; losses from certain of the Company’s actual losses incurred; has historically meant extended executive committee of all Chief derivative positions; Officers and selected managers. • The Company relies on third-party • Changes in laws or regulations, or a failure that there is significant suppliers for certain raw materials, and • The Company is exposed to foreign to comply with any laws or regulations, may aluminium price and any disruption in its supply chain or failure currency fluctuations, which may affect its adversely affect the Company’s business; demand volatility and a to renew these contracts may have an financial condition; general production adverse impact on the Company’s financial overcapacity condition, results of operations and future • There is a high level of competition in the prospects; GCC aluminium market, and the Company may lose its market share in the GCC as its competitors increase their production levels; Annual Report 2010 14 Annual Report 2010 15
  11. 11. Products Products and Markets and Markets 2010 Geographical Footprint Highlights for 2010 On physical markets, the overall trend has been well oriented in 2010 with key 2010 fundamentals supporting the demand: Metal Sales • Copper prices remain high and continues US$ 1.933 Billion to speed substitution effects in favour of aluminium (specially on the rod and cable market). • Automotive and packaging downstream • Casthouse 1 was completely markets have been performing well in decommissioned on December 31, 2010 Europe and in Asia. and all operations are now concentrated By Product Line in cast house 2 (slabs, foundry alloys and • Chinese demand continues to outpace standard ingots) and cast house 3 (billets). the increases in production and capacity. Downstream Markets 2,600 Our downstream markets are producing 2,500 a wide area of products: 2,400 • Our billets are sold to Aluminium 2,300 Alba is now operating extruders who are using the versatile 2,200 at full capacity on Value properties of aluminium alloys to create Added products profiles in all shapes and sizes that are 2,100 mainly used in building applications, 2,000 such as window frames or structural 1,900 components. A growing share of Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec aluminium profiles is also used in cars or vehicles where light weighting is becoming a priority. Aluminium components give LME Monthly Market demand should continue to be Casthouse 2010 Performance shock absorption as well as mechanicalCash Average Trend strong in 2011: all capacity has been contracted and Alba will aim at maximising The casthouses have achieved a good performance in 2010 and improved on strength capabilites for a lighter weight than the equivalent properties of pieces Billets (US$ mt) its output of Value Added products. The overall market continues to be in a several key parameters: produced in steel. production surplus position but this is primarily on the commodity ingot side whereas there is a • Billets production reached 313,000 metric tonnes which is 123,000 metric tonnes • Our slabs are used by rolling mills to produce foilstock which is then rerolled reached shortage on the Value Added product. improvement versus 2009, slabs volumes into household foil or packaging material 313,000 mt reached 113,000 metric tonnes (slightly used in food or pharmaceutical industries. On the price side, despite concerns on below 2009) and foundry alloys output was Other types of slabs are rolled into plates or the markets related to European sovereign 107,000 metric tonnes up by 42,000 metric tonnes from the previous year. sheets used in the general engineering or Overall Value debts which have triggered a small building industry. correction in November, the trend has Added production been bullish since mid-2010 with Q4 average cash at US$2,343 mt* well above • Overall Value Added production was 534,000 metric tonnes, which is significantly • Our foundry alloy ingots are used by automotive components manufacturers. 534,000 mt Year Average at US$2,173 mt (as per the higher than in 2009 (379,000 metric They use them to cast wheels or engine above). tonnes). blocks. *mt stands for metric tonnes Annual Report 2010 16 Annual Report 2010 17
  12. 12. Safety, Safety, Environment, Environment, Security & Fire 2010 Security and Fire Safety is an integral component company’s work environment. The newly As part of the company’s on-going staff of Alba’s work culture: it defines re-structured department now reports development programme, many of the directly to the CEO, and thereby underline department employees participated the way the company operates, underlines the processes involved the high priority given to safety at the “many of in local, regional and international in meeting organisational corporate level. the department conferences, seminars and workshops during 2010. To further ensure on-going goals, and shapes the dynamics Vision Statement: that characterise Alba’s work This move embodies the philosophical foundations enshrined in the Alba employees participated knowledge enhancement, a new corporate SESF training package for all of Alba’s To be the world’s environment. Charter, and will seek to enhance effective standardisation of safety systems in local, regional employees has also been incorporated into the training calendar for the coming year. leader in workplace safety, health and Alba places such a high premium on throughout the company. In addition, in 2010, five safety committees, including and internationalenvironmental systems safety that the Alba Charter explicitly states that ‘safety has equal importance to those for risk assessment and personnel protection, were also set up to specifically conferences, seminars External Impact Alba’s commitment to safety and requires sustainable production, cost, morale and quality, but if you don’t work safely – you don’t work address improvements to the overall and workshops” environment, success in implementing policies, and generating results to the commitment, here!’ safety system. benefit of the larger community, has gained continual support and international recognition. The company This level of emphasis necessitates Empowerment and Knowledge has received awards from the prestigious active involvement the formation of a clear organisational During the year, a new corporate safety British Safety Council and Royal Society from all levels of the structure to ensure only the highest safety strategy for the year 2011 was developed as for Prevention of Accidents (RoSPA) for the standards are maintained throughout organisation the organisation at all times. The Safety, the result of a series of intensive meetings fourth consecutive year. organised between employee committees Environment, Security and Fire (SESF) and the Alba Labour Union. The strategy Membership in the International Alba took part in the remains the main channel for actualising Alba’s goal of safety at the workplace and later received endorsement from the Aluminium Institute in London and the AFED Annual Conference, safety as an occupational behaviour. senior management and is expected to be Gulf Aluminium Council’s Environment, “Water: Sustainable implemented in the coming year. Health & Safety Committees have given Alba the opportunity to share experiences Management of a Scarce As a result, safety professionals employed with its peers in the industry as well as Resource” by the department remain responsible for Unwavering commitment present and propose new ideas and best conducting regular inspections, motivating to strengthen processes that practice. As a member of the Arab Forum employees to act safely, liaising with the safeguard and enhance for Environment Development (AFED), Alba training centre to organise courses on safety, and inspiring an all-round safety the company’s work shared four environmental case studies environment as an input for the AFED Annual Report – culture throughout the company. Green Economy. Organisational Enhancement In addition, five delegates from Alba took Alba’s decision to restructure and centralise part in the AFED Annual Conference, activities relating to Safety, Environment, “Water: Sustainable Management of a Security and Fire (SESF) into a single Scarce Resource.” department follows the company’s unwavering commitment to strengthen processes that safeguard and enhance the Annual Report 2010 18 Annual Report 2010 19
  13. 13. Safety, Environment, SESF Strategy Security & Fire 2010 2011 “Alba’s ultimate goal of achieving zero Safety Fire harm throughout the One of the key objectives for 2011 is to evaluate the effectiveness of Alba’s safety Alba will intend to upgrade its fire fighting facilities and equipment to ensure their plant will be progressed culture with the support of a leading global consultancy. The result of this initiative will ability to combat existing fire risks as well as support the safety requirements in 2011 through an lead to a three-year safety strategy to set an industry wide benchmark on minimising of a company of Alba’s size. The SESF Department will be the main coordinator extensive study” injury frequency. between Alba and FM Global, and will provide expert advice in influencing annual A dedicated team will be set up to identify insurance premium reduction. FM Global Insurance the top 10 safety risks in the company, and Since October 2010, SESF was given propose clear guidelines to mitigate risk the responsibility for coordinating with levels. In addition, greater emphasis will be FM Global Insurance in evaluating risk made to enhance safety culture throughout management solutions, establishing loss Alba through training opportunities, safety prevention solutions and safeguarding campaigns, regular inspections, traffic the company against loss. The agreement awareness programmes, etc. with FM Global Insurance will also involve Alba’s operational departments Security in minimising risks and ensuring minimal Alba’s security procedures and processes business disruption. will be upgraded in 2011 to include the setting up of new and improved fencing facility around the Alba plant, the Calciner Environment Future Goals and the Marine jetty. The new fences will Since 1994, the SESF actively participates in promoting Alba’s ultimate goal of achieving zero be equipped with sophisticated CCTV and department has environmental issues throughout the harm throughout the plant will be will be directly linked to a dedicated control played a key role in company and also in the larger community. progressed in 2011 through an extensive room to enhance the level of security Over the past twelve months considerable study on Alba’s safety managementsuccessfully extending success has been achieved in utilising system by leading global consultancy, around Alba. Alba’s green space treated sewage water for irrigating Alba’s DuPont Sustainable Solutions. The result Environment green areas with a net result of a 1 hectare of the study will determine the essential Alba will continue its efforts to expand increase in green cover as compared to factors that influence improvement in the green space within the plant. A study 2009. Since 1994 the department has safety programmes and in establishing will be undertaken in 2011 to assess the played a key role in successfully extending development action plans. waste management system with the aim Alba’s green space to a total of 24 hectares. of reducing landfills, increasing recycling activities, and obtaining cost effective The reduction, recycling or selling of waste solutions in handling waste. has also been studied with the aim of eliminating ecologically harmful practice of A dedicated team will be utilising landfill sites. This has resulted in the set up to identify the top 10 attainment of higher return on the sale of safety risks in the company, waste, success in selling cut grass for animal and propose clear guidelines to feed, and a cleaner environment. mitigate risk levels Annual Report 2010 20 Annual Report 2010 21

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