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B U S I N E S S A N D
S U S T A I N B I L I T Y
R E P O R T
more than 25 years
F ori g roup
P U B L I S H E R
S k upi n a F O R I ,
P re š er n o v a 1 a ,
3 3 2 0 Vele n j e
P. + 3 8 6 3 8 9 8 4 7 0 0
F. + 3 8 6 3 8 9 8 4 7 2 6
i n fo @ fori . si | w w w . fori . si
E D I T O R
KA T JA F O R Š T N E R
D E S I G N & P R I N T
Ž AN I N T A M Š E | E U R O G R A F D . O . O .
C I R C U L AT I O N
2 5 0 0 C O P I E S
TA B L E O F C O N T E N T S
Letter from the CEO	
WHO WE ARE	
FINANCIAL HIGHLIGHTS	
TECHNICAL TEXTILE DIVISION	
Plastic Metal division	
THE FORI GROUP TOP TAPES TECHNICAL CONFERENCE	
COMMITMENT OF MANAGEMENT		
Environmental Awareness		
People make success		
Promoting our Country	
We are honoUred	
Fori Group	
References	
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	 6
	 8
	 1 2
	 1 5
	 1 8
		 2 1
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	 3 0
	 3 1
4 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
L etter fro m t h e C E O
We ended 2014 with an excellent team performing above
our expectations. Our great results were the result of the
commitment, excellence and expertise our employees. We met
our own demanding goals and in some of our companies we
even exceeded our targets.
This growth will motivate us to continue working as a global
team and continue our search for new innovations in all our
fields of operation. This strategy will mean new projects,
particularly in the Plastic Program where we are planning to
have a 15% growth rate in 2015.
In 2014, we achieved a consolidated income of 36.8 million EUR.
Our great enthusiasm, commitment and expertise are keeping us
on track for our 2019 target of 48.8 million EUR in consolidated
sales income.
We are planning on investing more than 30% of EBITDA into
the development, research and expansion of FORI Group; in the
upcoming years we will be financially stronger and more readily
available to the global market. We are currently present in
Slovenia, Serbia and China and are slowly expanding into Russia.
FORI Group is analysing potential new markets, where we will be
able to give new customers and suppliers our best services and
products whilst strengthening our co-operation and sales with
our current customers.
We are more than aware of the fact that exposure to the right
networks and synergies are an essential component on the path to
success. To this end we organised our first international technical
conference for the cable industry. It was an opportunity for us
to exchange our valuable experience and expectations for the
industry whilst connecting on a more personal level with our
partners through our cultural programme. It was a great honour
for us to share our expertise and experience with all our business
partners as well as showing them the home of FORI Group
headquarters, and a small part of our beautiful country.
We are looking forward seeing you at our next conference in May
2016 on the Slovenian coast.
We are pleased to report that in 2014 we had a
25% increase in income in the cable industry as
well as a 4% increase in the automotive industry.
We are also planning an intensive expansion of
our production into the East and penetration
into the American market.
Milan F or š tner
C E O of F O R I Group
6 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
W H O W E A R E
FORI Group is an overarching organisation, integrating several
business systems and activities: production, trade and engineering.
Our trade mark is being open to new business opportunities
and international operation, while the group's key objectives
are strategic and capital ties within the group as well as efficient
economy and organisation.
With integrated delivery ASSOCIATED ENTERPRISES we are
trying to surpass the expectations of our customers.
Our Mission
To have Flexible Organization of Research and Development Ideas,
and strive to achieve customer satisfaction with the cables and in
the car.
Our Vision
Our goal is to become a recognizable World OEM supplier and
trademark owner for the white goods industry, OEM supplier for
the automotive industry and cable industry. In the future we want
to double our added value per employee and improve our image
with higher standards as well as unique investments.
It is not so much what we
do, but how we think.
614
employees
€ 36,6
milion
consolidated
sales income in
2014
€ 46.3
milion
consolidated
total assets
By 2019, we plan sales
income growth to
€ 48.8
milion
FORI | Velenje
TTO | Volčja Draga, Europe, Slovenia
Russia
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 7
S A L E S P E R B U S I N E S S D I V I S I O N % S A L E S P E R C U S T O M E R S E GM E N T %
Cable
absorbers
8 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
F I N A N C I A L H I GH L I GH T S
A uto m otive
industry
C able
industry
W h ite
g oods
industry
I nte g ra -
ted
solutions
5 6 %
2 7 %
1 0 %
7 %
Sales per customer segment % in 2014
1 8 %
8 2 %
P lastic and m etal
T extil E
Sales per business division % in 2014
The net sales of FORI Group will
have grown by 2018 mainly in the
automotive and cable programme
by a rate of 10% annually and with
focus on markets in Asia, the Middle
East and America.
In the coming years our focus will be
to increase profitability and added
value in all programmes.On the basis
of this healthy growth we will reduce
our debt and lower our net financial
debt to EBITDA from a ratio of 3.7 in
2014 to 1.4 in 2019.
1 0 %
1 0 0 %
Assets
Liabilities
L on g - ter m
C apital
S h ort - ter m
Assets and Liabilities in 2014
Average
nu
m
b
e
r
o
f
employees	
	
F r o m
7 1 2
t o
6
14
(2013/2014)
C A B L E P R O
G
R
A
M
E
NETSALES+25%
(2013/2014)
S L O V E N I A
O T H E R
S P A I N
C Z E C H R E P U B L I C
T U R K E Y
R O M A N I A
N E D E R L A N D
G E R M A N Y
H U N G A R Y
C R O A T I A
F R A N C E
R U S S I A
S L O V A K I A
P O L A N D
Sales by markets
10 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
S H O R T - T E R M
F I N A N C I A L
L I A B I L I T I E S
7 0 %
Financial Liabilities in 2013
L on g - ter m financial
L iabilities
3 0 %
L on g - ter m financial
L iabilities
8 8 %
S H O R T - T E R M
F I N A N C I A L
L I A B I L I T I E S
1 2 %
Financial Liabilities in 2014
By improving
the maturity
of funding,
we assure
the financial
stability of
FORI Group.
EBITDA Consolidated
Consolidated Revenue
17%
10%
100%
50%
80%
30%
35%
54%
65%
76% 76%
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 11
1 . 5 0 0 . 0 0 0
5 0 0 . 0 0 0
1 . 0 0 0 . 0 0 0
2 . 0 0 0 . 0 0 0
2015
2016
2018
2017
2019
Consolidated CAPEX
Financial Liabilites
F inancial L iabilites
We will invest more than
30% of EBITDA into the
development of FORI
Group and our finance
strength and capital
adequacy will grow
rapidly in the next
few years.
Important activities for 2015 to 2019,
will be focussed on the moderate
growth of sales income, build on
financial strength by reducing the
net debt by at least 10 million EUR
and improving the maturity structure
of financial liabilities and effectively
assess risks.
12 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
T E C H N I C A L T E X T I L E D I V I S I O N
FORI Group is an overarching organization, integrating several
business systems and activities: production, trade and engineering.
Our trademark is being open to new business opportunities and
international operation, while the group’s key objectives are
strategic and capital ties within the group as well as efficient
economy and organization.
The Technical Textile Division consists of 4 pillars:
Lamination and
Sewing of materials
for Interiors :
Automotive,
Aircrafts, Railway
industry
The Production
Plants:
Slovenia, Serbia,
China:
The Production
Plants:
Slovenia, China:
The Production
Plants:
Slovenia:
The Production
Plants:
Slovenia, Serbia:
Laminates for Cable
industry :
TOP tapes®
Laminates
for Building
Construction
Insulation industry
Sorbents and Covers
for Mattresses for a
high quality of living
people
T h e 1 st
pillar
T h e 2 N D
pillar
T h e 3 R D
pillar
T h e 4 T H
pillar
More than 23 mio m2
laminated technical textiles
in 2014.
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 13
LAMINATION TECHNOLOGIES, CUTTING &
SEWING:
INPUT: different materials such as PU foam,
non-wovens, foils, knitted scrims, face fabrics,
vinyl, leather, mesh 3D materials, watte, recycled
materials etc.
PRODUCTION PROCESSES:
•	 Lamination:
Flame lamination
Hot Melt lamination
Thermoadhesive coating
Superabsorbent lamination
Selfadhesive lamination
•	 Cutting
•	 Sewing
OUTPUT: bi-laminates, tri-laminates, multi-
laminates in rolls, laminated cut pieces, final
products such as seat covers, headrests, armrests,
door panel laminate, floor laminate, roof
laminate etc.
The 1st pillar in the technical textile division:
AUTOMOTIVE
industry -
Interiors:
RAILWAY
industry-
interiors:
AIRCRAFT
industry –
Interiors:
TOP tapes® Products for the Cable industry
LAMINATION TECHNOLOGIES & CUTTING:
INPUT: non-wovens, wovens, absorbent powder,
net, carbon black liquid, copper/Al/Pet foils,
paper, mica, yarns..
PRODUCTION PROCESSES:
•	 Coating with carbon black
•	 Lamination: Superabsorbent lamination
•	 Cutting on width 15-1600mm, ID/OD based
on customer requirements
OUTPUT: TOP tapes® products ; tapes and
yarns for different applications in cables : power
cable LV,HV, MV,EHV, telecomunication, optical
fiber cable..
The 2nd pillar in the technical textile division:
14 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
Laminates for the Building Construction
Insulation industry
LAMINATION TECHNOLOGIES & CUTTING :
INPUT: nonwovens, watte, needle punched
materials, absorbent powder/non-woven, paper,
foils, glue
PRODUCTION PROCESSES:
•	 Coating & Lamination: Self-adhesive
coating of different materials based on
customer demands
•	 Cutting on pieces or material in rolls max.
width 1700mm
OUTPUT: self-adhesive laminates , bi-laminates,
tri-laminates..
Sorbents and Covers for Mattresses
LAMINATION TECHNOLOGIES & CUTTING &
SEWING :
INPUT: non-wovens, fabrics, watte, needle
punched materials, absorbent powder/non-
woven, paper, foils, glue, knitted fabrics, jacquard
knitted materials
PRODUCTION PROCESSES:
•	 Coating & Lamination: for sorbent
products DRYTEX with high absorbtion
capacity
•	 Cutting on pieces or material in rolls
•	 Sewing of covers for mattresses
OUTPUT: sorbents products DRYTEX, matresses
covers
The 3rd pillar in the technical textile division: The 4th pillar in the technical textile division:
T E C H N I C A L T E X T I L E D I V I S I O N
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 15
P lastic Metal division
Metal processing
At our plant in Velenje we established metal
processing; cutting, press cutting (punching),
bending, forming – deep drawing, welding,
brushing (grinding) and also the final phase
assembly of metal plastics components and small
household appliances.
Input materials:
Stainless steel (INOX) ordinary and zincked (warm
and electro) metal sheet, aluminum sheet, plastic
and other semi-products.
Additional services:
Assembly (line), powder coating (painting),
washing, thermal treatment.
Cutting
Guillotine cutting of sheet metal up to 4mm
thick and 2000mm wide. We also operate the
special edge trimming and cutting machine from
OMERA R1000.
Press Cutting
This is done by large CNC punching machines
allowing sheet metal to be cut into arbitrary
shapes (Arcade 212, Vipros 255,Europe 245
machines). Maximum thickness of sheet metal:
3.0mm. Basic sheet size:1250x2500mm.
Bending
For the bending of sheet metal we use two
bending machines. The larger of the two has
a bending force of 500kN at a bending length
of 2000mm. The smaller machine has a 250kN
bending force at a bending length of 1200mm.
Both machines are from Amada Schiavi.
Forming – deep drawing
The deep drawing of sheet material is performed
using our big hydraulic press OMERA which has
6300kN ram force and 3000 kN hold force (table
dimension 1600x1300mm, stroke of press 800m)
and three smaller hydraulic presses (1250,1600
and 3150 kN ram force, all OMERA brand).
However, smaller items of wire and sheet metal
can be pressed on smaller eccentric presses with
200- 1600kN ram force
Plastics
Taking into consideration the basic strategic
development, which demands an integrated
and complex offer, we also developed a plastic
16 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
Injection moulding
The thermo plastic materials
Our process technology features computer
controlled production using 14 KRAUSSMAFFEI
injection molding machines which have up
to approx. 3600g capacity and a clamping
force from 40 to 800 tons. The machines were
purchased in succession mainly from 2002
onwards. All big machines (above 300 tons) are
equipped with SEPRO automatic manipulators.
Toolmaking
In our own tool shop, we design and produce
tools intended for shaping all types of sheet
metal (Stainless Fe (INOX) ordinary and zincked
(warm and electro) metal sheet)
When making tools, we fully conform to the
customers' requirements and needs. Due to
limitations of production capacities, we have
decided to hire subcontractors, tool making
specialists, to manufacture plastic product
injection tools.
Tabak1stranaA
Input materials:
ABS, PS, PP,
PC, PBT, PA6,...
Additional
services:
Assembly,
powder
coating of
plastic parts
(painting), tool
making, tamp
prints and
serigraphy.
P lastic Metal division
programme, with an emphasis on plastic
processing and plastic injection.
In the segment of plastic injection, we have
several years of experience in the manufacturing
of components for the needs of manufacturers of
small and large components for the automotive
industry.
As additional services we also offer are assembly
and the varnishing of plastic products.
Injection moulding
The thermo plastic materials
Our process technology features computer
controlled
production using 14 KRAUSSMAFFEI injection
molding machines which have up to approx.
3600g capacity and a clamping force from 40
to 800 tons. The machines were purchased in
succession mainly from 2002 onwards. All big
machines (above 300 tons) are equipped with
SEPRO automatic manipulators.
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 17
Design and Developement
In any industrial area, taking into account the
customer' wishes, we offer an execution of
integrated development solutions within which
we guarantee cooperation in joint projects, from
the design conception of products or assemblies
to the phase of laying concepts for individual
assemblies or their components.
The engineering tools most often used in
the concept laying process are Pro/Engineer
and Catia. In case of the execution of a more
extensive specific mechanical analyses of products
is needed, we seek collaboration with external
specialised expert institutions.
The shaping of various
types of sheet metal
is performed on 9
hydraulic and eccentric
presses manufactured
by OMERA, GRABENER,
PRESSE ROSS. The
pressing forces of these
machines vary depending
on their size, from
1250 to 6300 kN. All
hydraulic presses have
a retaining cushion to
retain the sheet metal
formats during the deep
drawing operation with a
maximum force of 600 to
3000 kN.
N E T S A L E S P E R D I V I S I O N %
18 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
T H E F O R I G R O U P T O P TA P E S
T E C H N I C A L C O N F E R E N C E
Keeping up with the times to build a better future for everyone.
On the 16th and 17th of February 2015 in Nova Gorica, Slovenia, we held the
FORI Group TOP TAPES technical conference in which 60 business partners from
21 companies participated. They came from 13 different countries including
Algeria, Azerbaijan, Croatia, Iran, Germany, Russia, Qatar, Saudi Arabia and Serbia.
After a successful end to the 2014 business year, the textile factory Okroglica,
d.d., the backbone of the TOP TAPES brand development, organised a conference
which would bring together the largest international cable manufacturers. Experts
from the field of cable industry technology would present new innovations as well
as future guidelines.
All of the conference participants were major global players on the cable industry
market and technical experts from the field. This made their presence in Slovenia
immensely important for the further consolidation of the TOP TAPES brand.
Furthermore, the inclusion of so many international participants proved to us that
TT Okroglica is successfully following its strategy to become supplier to the largest
international manufacturers in the cable industry.
10 international papers were presented at the conference, which clearly
outlined the latest trends in technical development on the cable industry market.
Furthermore, in discussion, participants exchanged numerous pieces of technical
knowledge, experiences and views on the current and future development of the
medium and high voltage power cable branches on a global scale.
TT Okroglica with its manufacturing in Slovenia and Qingdao Sinositec, Co.
Ltd., with its manufacturing in China, have not only consolidated and upgraded
their strategic partnership with their buyers, but have also played an important
role in bringing the technical professions in the cable industry together on an
international scale. The overall consensus at the technical conference showed
large additional market potential and possibilities, thus TT Okroglica will be able
to further successfully apply its development opportunities on a wider product
portfolio and conquer new markets. Simultaneously, the overall conclusions of the
conference mean the acknowledgement of TT Okroglica and Qingdao Sinositec
as a supplier by the largest cable industry manufacturers; not only do they respond
efficiently to the demands and expectations of the most demanding buyers, but
are a reliable systems development supplier. This is undoubtedly an important
milestone for the long-term development of the company, and thus an important
generator of economic development and growth in the region.
The results of the conference also gave us development guidelines, which will
mould the international cable industry market in the future. We are convinced that
the awareness of TT Okroglica and Qingdao Sinositec as well as the TOP TAPES
brand will grow across the world.
Milan Forštner, the CEO of FORI Group,
welcomed the guests in seven languages and
made a short speech marking the opening of
the first technical conference.
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 19
P articipants at t h e tec h nical conference :
WE HAVE ALREADY CONFIRMED NEXT
YEAR'S DATES FOR OUR INTERNATIONAL
TOP TAPES CONFERENCE ON THE
SLOVENIAN COAST
INTERNATIONAL TOP TAPES
CONFERENCE
16TH-18TH MAY 2016
Do not miss it, register now!
Contact:
Patricija Korošec
General manager of Qingdao Sinositec & Cable division director
E: patricija.korosec@fori.si
F ori g roup
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 21
C O MM I T M E N T O F M A N A G E M E N T
The management of each individual company has committed itself to
include these fundamental safety principles in all operational processes
of their company. Thus, the FORI management, added to its Quality
Management Handbook the Commitment of Management and
Environmental Management Policy, which are as follows:
The vision, mission and strategic objectives of FORI Group bind all
employees to manufacture and market quality components and products
for the white goods industry and automotive industry. The quality
of products, processes and services will be constantly improved, thus
strengthening our competitive abilities. In turn, thes abilities will be
supported by partnership among employees and companies and be directly
reflected in the development of our products and services. Our operations
will allow us to achieve prompt delivery of our products and services
to our buyers at the agreed price and quality, assuring their trust in us.
Knowledge and development opportunities for employees will focus on
the originality of ideas, quality implementation and increasing added value.
Within the operational framework of
the companies in FORI Group, we are
acutely aware of the need and concern
for environmental protection, assuring
health and safety in the workplace for our
employees and fire prevention measures with
which we protect the property of our owners.
Management commits to:
•	CONTINUOUSLY IDENTIFY AND RESPECT ALL CUSTOMER REQUIREMENTS, NATIONAL LEGISLATION AND
LEGISLATION IN THE COUNTRIES OF BUSINESS PARTNERS AND STANDARDS,
•	ADAPT BUSINESS POLICY WITH THE CURRENT MARKET SITUATION,
•	ANNUALLY DEFINE MEASURABLE OBJECTIVES TO PROCESS OWNERS, ANNUAL ENVIRONMENTAL
OBJECTIVES WITH PROGRAMMES AND CONSTANT IMPLEMENTATION OF ACTIVITIES FOR THEIR
REALISATION,
•	IMPLEMENT A MANAGERIAL REVIEW FOR ASSURING EFFICIENCY OF OPERATIONAL QUALITY
MANAGEMENT AND ENVIRONMENTAL MANAGEMENT SYSTEMS AND SUCCESS OF COMPANY
OPERATIONS WITH PROCESS OWNERS AT LEAST ONCE A YEAR,
•	ASSURE FUNDS AND SOURCES WHICH ALLOW FOR THE IMPLEMENTATION OF THE QUALITY
MANAGEMENT SYSTEM AND ENVIRONMENTAL MANAGEMENT SYSTEM,
•	CHECK LEGAL REQUIREMENTSAREMETANDOTHERREGULATIONSWHICHINFLUENCETHEOPERATIONS
OF THE COMPANY AT LEAST ONCE A YEAR.
22 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
Management is committed that the quality
and environmental management objectives are
included in business planning, and in the case of
any deviation from the planned objectives, to take
prompt appropriate measures. The achievement
of all business goals is binding and serves as a
measure of success of all managers and senior
executives at FORI Group.
ENVIRONMENTAL PROTECTION POLICIES
AND OBJECTIVES
In the commitment of FORI Group management,
we stated that we want to be known for our
constant efforts to decrease the burden on the
environment. This objective has been further
modified with the fundamental strategy in the
field of the environmental management system
and commitment that the health and safety of
employees and fire prevention be permanently
included in all business processes. A large
emphasis will also be put on comprehensive
prevention activities in the field (health and
safety of employees, environmental protection,
property protection etc.). In order to achieve
this, we, together with our employees, business
partners and the general public, focus all activities
in the implementation of environmental and
other legislation as well as individual customer
requirements and thus reduce the negative impact
of our activities on the environment.
In doing this we will follow the environmental
protection policies and objectives:
1. Have quality processes, products and services
which satisfy the demands of the customer and
environmental legislation.
2. Make efforts to reduce the burden on
the environment with choosing appropriate
technology and with the implementation of
activities to prevent pollution and other influences
on the environment.
3. Assure the implementation of the entire
environmental management system, which
the management monitor and evaluate in the
Management review.
4. Promptly and appropriately take measures in
the case that any deviation or irregularity in the
field of environmental protection occurs.
5. Train employees for the correct and safe
approach in the fields of environmental
protection, handling chemicals, safety in the
workplace and fire prevention.
6. Implement all activities which assure health
and safety in the workplace in all associated
companies.
7. Implement all activities which assure fire
prevention in all associated companies.
8. Monitor and meet legal requirements of all
associated companies.
9. Notify employees of the efficiency of the
environmental management system operations.
10. Notify the interested internal and external
public on operations in the field of environmental
protection.
Environmental management
The objectives of the environmental management
system is decided upon annually, dependent on
the events in the individual companies and taking
into account the annual environmental assessment
viewpoints. We spend a lot of time working on
the processes for reducing the amount of waste:
preventing waste accumulation, separating waste
at the source, collecting and selling reusable waste
for further recycling, collecting and submitting
hazardous waste and sorting and disposing of
MSW (mixed municipal waste) as the last and most
expensive option for handling waste. After several
years of operation and working on this objective,
we have decreased the amount of MSW by more
than 25% and increased the amount of reusable
waste by about 13%.
We monitor energy use on a monthly basis, we
compare the usage of individual plants and
evaluate them in an index which takes into account
Reduced waste by more than 25%
Increased reusable waste by 13%
Reduced energy usage by 10%
the number of operating hours carried out and
try to manage them as efficiently as possible. We
work a lot on the processes for decreasing and
rationally using technological gas and electric
energy (changing current light bulbs with energy
saving bulbs, control over systems which involve
greenhouse gases, integration of meters for the
use of technological gases on the manufacturing
line, joining the workforce of two plants into one,
approaching energy suppliers as a group and
getting a better price for a larger quantity, using
appropriate material dryers, using excess heat
for cooling premises etc.). In 2015, we will save
around 10% of our energy use.
As an important member in the chain of suppliers
and buyers, we also demand of them that they
are environmentally acceptable whether it is
a service or with a product and its packaging.
With regards to this, we monitor and check their
compliance with legislation and suitability with the
appropriate Statements of Compliance (REACH,
RoHS, packaging, certification of materials, safety
sheets for hazardous materials, SVHC – list of
banned substances, etc.).
Health and safety of employees
To reach these goals we have put a lot of
measures in place, which we have implemented
over the years in the individual companies within
the FORI Group.
To decrease the percentage of sick leave, we
started a project called “Promoting the health of
employees – Decreasing sick leave”. We want this
project to raise awareness amongst employees of
a safer and healthier lifestyle and consequently a
more efficient and safer work environment.
In the area of health and safety in the workplace
and fire prevention, we will implement the
following activities:
•	introductory and periodic employee training in the
areas of H&S, fire prevention and environmental
management systems,
•	additional training for all employees to greater
encourage a safe working environment and
for a higher level of health and safety in the
workplace, preventative measures for decreasing
the number of injuries in the workplace and direct
responsibility of managerial personnel,
•	periodic training of employees in the risk
assessment every two or more years for the safe
implementation of specific jobs and tasks in certain
periods (forklift drivers, crane operators working
from the ground, heavy construction equipment,
welders, extinguishing fires and carrying out
evacuations, administering first aid, work with
technological gases, work with chemicals, etc.),
•	implementing prior and periodic – preventative
medical checks on employees,
•	implementing periodic and controlled checks and
tests on equipment in accordance
with the relevant legislation and
with the appropriate permit carry
out this type of work and service,
•	 implementing checks on devices
and equipment for fire prevention
(fire extinguishers, hydrants, fire
alarms, electronic installations,
lightning conductors, emergency
lighting)
•	 implementing all necessary
monitoring with regards to buildings and
company activities.
Our strategic objectives: No
accidents in the workplace, No
irregular or hazardous events and
No fires.
We have recorded a 40%
decrease in injuries from
2009-2014!
24 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
E nviron m ental A wareness
We are a company of creative people, which is a step ahead of its buyers'
wishes and competition, as well as working with its environment.
Our concern for quality of life is also reflected in our behaviour and
attitude towards the environment.
This is why, in 2009, we were certified in the area of Environmental
Management. We received ISO 14001 certificate on 14/7/2009. ISO 14001
is an international standard for environmental management systems which
includes the management of environmental aspects of production or
service activities. It is one of the most important tools used by companies
all over the world, to be responsible for the challenge which their activity
presents to the environment. The goal of this standard is to preserve
the environment and suitable living conditions for future generations
by reaching legislative standards, using sources efficiently as well as
preventing environmental pollution.
Within the company we have, in addition to development projects,
permanent improvement processes, which include improved technological
processes, working environment and raising the level of quality of work
in our company, from both the standpoint of employee well-being and
higher quality product.
We can praise ourselves that a number of low
emission products grow with the increasingly
conscious end buyers of automobiles. This
type of analysis represents a high expense
which is reflected on the final selling price
of the product; however we consider this an
investment in our future.
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 25
In developing higher quality processes we accele-
rate the development of production, consequen-
tly reducing the environmental impact. Respon-
sibility to preserve the environment is shown in
all areas of our operations. We take into acco-
unt environmental development initiatives when
implementing new technology and lessening
effects on the environment. Out products are
sent to an accredited laboratory abroad, where
they measure the emissions in the product. We
can praise ourselves that a number of low emissi-
on products grow with the increasingly conscious
end buyers of automobiles. This type of analysis
represents a high expense which is reflected on
the final selling price of the product; however we
consider this an investment in our environment
and the future of our company.
The newest “green environmentally friendly lami-
nation technology” on the market as well as in TT
Okroglica production is HOT MELT LAMINATION.
The process itself is environmentally friendly, as it
does not release isocyanates and harmful smoke
emissions to the wider surroundings, work envi-
ronment or our product.
Emissions in products are measured as FOG, VOC
(emissions of volatile hydrocarbons). This line is
meant for laminating a number of materials to-
gether with modern adhesive, which are ecologi-
cally sound. Hot melt lamination is an undisputed
technological advancement in this area. It replaces
lamination with other processes such as flame or
thermal laminating. Laminating with an open fla-
me is an ecologically polluting technology, from
both the standpoint of use of gas and the con-
sequent smoke emissions, due to which, we have
installed a cleaning system which purifies the air
before it is released into the environment. Daimler,
the leading automobile manufacturer, emphasises
the importance of low emission materials, which
are built into the automobile brand Mercedes. TT
Okroglica is also a supplier of filled and laminated
materials for the seats built into Mercedes.
Operation efficiency is also a result of our relation-
ship with the environment, to immediate and wi-
der social groups, which is why in this area we are
positioned in a key long-term strategic direction.
In the automotive industry, we comply with the
requirements of the ISO/TS 16949 specifications.
This is an ISO technical specification, developed in
the framework of IATF (International Automotive
Task Force). IATF unites global automotive manu-
facturers and national associations. The specifica-
tions contain the requirements of other national
standards for the automotive industry e.g. QS-
9000 (USA), VDA 6.1 (Germany), EAQF (France),
AVSQ (Italy), and are therefore an equivalent
substitute. Standard ISO/TS 16949:2009 determi-
nes the requirement for a quality control system in
development and manufacturing as well as in the
installation and servicing of products, meant for
the automotive industry. It covers the entire opera-
tions system of the automotive industry from start
to finish.
In comparison with other quality standards such
as e.g. ISO 9001, ISO TS 16949 is more deman-
ding and more detailed, in particular about deve-
lopment and manufacturing processes as well as
the system requirements for quality control on the
highest level.
This allows us to guarantee our customers high
quality and reliable products.
26 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
P eople m a k e success
We are constantly striving for our employees to feel good while
they work, and extend that feeling into good results, which are the
reflection of a satisfied employee. All our efforts and investment in
the well-being of employees is seen in positive results; for several
years we have recorded a minimum percentage of absenteeism.
In addition to the reward system, we also organize social gatherings
and gatherings for children where we have an opportunity to enjoy
ourselves and have fun together outside of the workplace. This also
gives us a chance to take care of our inter-relationships and build
on the team spirit within the company, which is positively reflected
in all areas of operation.
Engaging Employees
In our company we support everyone who wants to achieve more
on their career path. We give employees the opportunity to prove
themselves in different positions as well as different countries.
This gives them a greater degree of self-confidence in addition to
wider knowledge of the environment in which both we and our
buyers operate. Both individuals and teams have the opportunity to
achieve their goals using the knowledge of all our companies and
attend our internal strategic conferences and social events, where
we exchange our experiences and support and motivate each other.
In 2014, we organised 620 educational hours for our employees,
which is 30% more than the previous year. We are happy that
we have an increasingly stronger wish from all companies for
education, inclusion in innovation and intercommunication.
78% of employees are satisfied
in their job.
Internatonal Student and Employees
Exchange and Tutorship
As a business group we are aware that
with our knowledge and our diversity of
services and products worldwide we can
enable many students to gain know-how
on a professional level and become more
practical and easier to employ. With this
in our mind, we collaborate with different
cities all over the world and help students
to take part in international exchange,
where they can gain not only professional
knowledge but also an insight into different
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 27
Award for Most Dependable Employee:
Every year at FORI Group, we present the award
for the Most Dependable Employee in all our
companies. Each year we choose the best
employee from each company following criteria
based on the quality of their work, their reliability
and their dedication to top results.
Chairman’s award for Manager of the year 2014
Manager of the year is the highest honour an
employee can receive in the FORI Group. It
recognizes individual employee excellence in
the area of integrity, innovation, quality, global
growth, sustainability, customer satisfaction and
leader development.
“I appreciate this award so much and it means a
lot to me. It’s additional confirmation that we did
a good job last year, and that we as a team are
especially dedicated to our work. I believe that
we can achieve even more and an award like this
definitely gives me the motivation and drive to
achieve new goals.” Patricija Korošeč, Manager
of the Year 2014
E m ployees fro m S erbia in trainin g in S lovenia
cultures. Our business system supports
all employees and gives them options to
expand their horizons of knowledge by
different functions in all our companies
over the world. We are aware that all our
companies and leaders should be united
and work as one entity, having in mind all
cultural differences and experiences
28 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
P ro m otin g our C ountry
Several times a year, at larger fairs around
the world, we are happy and honoured,
in addition to our business services, to
show visitors the culture and beauty of our
country – Slovenia through music, food and
a warm smile...
2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 29
W e are h ono U red
In past years, the Johnson Controls plant Češka Lipa from the side
of JCI central, had an opportunity to award its best supplier.
We received this award several years in a row, the last one at the
gala banquet at JCI. We were proud that we had outperformed
the other suppliers present at the banquet, e.g. German suppliers
Ziegler, Rowa, and Boxmark.
The evaluation of suppliers is still on-going, just without a prize.
The evaluation criteria include the following areas:
•	 logistics: ensuring on time delivery and a correct amount of
supplies,
•	 quality: a quality product in accordance with tier 1
specifications and OEM buyers as well as achieving PPMs
which are decided upon by buyers,
•	 price,
•	 service: reaction of company, flexibility, innovativeness,
technical support, reliability, friendliness.
That we become and remain “A” suppliers, we takes a lot
of energy, effort and negotiation, that in despite of tough
competition from eastern European countries (where the
automobile industry is moving), we are still on the list of suppliers.
More importantly, it makes us very happy to be nominated for
new projects.
We are graded as an “A”
supplier, meaning we
are suitable as long-term
suppliers.
30 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4
F ori Group
Milan Forštner, CEO Fori Group
Mitja Forštner, Vice President of Fori Group
Martin Forštner, Manager of Investment division, procurator
Ivica Forštner, CEO Consultant
Polona Gornjak Krpač, Manager of Technical Textile Divison; General Manager at Tekstilna
tovarna Okroglica d.d.
Patricija Korošec, General Manager at Quingdao Sinositec and Cable division director
Alojz Kovše, General Manager at Zastava Tapacirnica a.d.
Nada Jurko, Executive Manager of Finance
Saša Brilej, Manager of General Legal Affairs Sector
R eferences
Katalog_fori_LR_23.6.

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Katalog_fori_LR_23.6.

  • 1. 2 0 1 4 B U S I N E S S A N D S U S T A I N B I L I T Y R E P O R T more than 25 years F ori g roup
  • 2. P U B L I S H E R S k upi n a F O R I , P re š er n o v a 1 a , 3 3 2 0 Vele n j e P. + 3 8 6 3 8 9 8 4 7 0 0 F. + 3 8 6 3 8 9 8 4 7 2 6 i n fo @ fori . si | w w w . fori . si E D I T O R KA T JA F O R Š T N E R D E S I G N & P R I N T Ž AN I N T A M Š E | E U R O G R A F D . O . O . C I R C U L AT I O N 2 5 0 0 C O P I E S
  • 3. TA B L E O F C O N T E N T S Letter from the CEO WHO WE ARE FINANCIAL HIGHLIGHTS TECHNICAL TEXTILE DIVISION Plastic Metal division THE FORI GROUP TOP TAPES TECHNICAL CONFERENCE COMMITMENT OF MANAGEMENT Environmental Awareness People make success Promoting our Country We are honoUred Fori Group References 4 6 8 1 2 1 5 1 8 2 1 2 4 2 6 2 8 2 9 3 0 3 1
  • 4. 4 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 L etter fro m t h e C E O We ended 2014 with an excellent team performing above our expectations. Our great results were the result of the commitment, excellence and expertise our employees. We met our own demanding goals and in some of our companies we even exceeded our targets. This growth will motivate us to continue working as a global team and continue our search for new innovations in all our fields of operation. This strategy will mean new projects, particularly in the Plastic Program where we are planning to have a 15% growth rate in 2015. In 2014, we achieved a consolidated income of 36.8 million EUR. Our great enthusiasm, commitment and expertise are keeping us on track for our 2019 target of 48.8 million EUR in consolidated sales income. We are planning on investing more than 30% of EBITDA into the development, research and expansion of FORI Group; in the upcoming years we will be financially stronger and more readily available to the global market. We are currently present in Slovenia, Serbia and China and are slowly expanding into Russia. FORI Group is analysing potential new markets, where we will be able to give new customers and suppliers our best services and products whilst strengthening our co-operation and sales with our current customers. We are more than aware of the fact that exposure to the right networks and synergies are an essential component on the path to success. To this end we organised our first international technical conference for the cable industry. It was an opportunity for us to exchange our valuable experience and expectations for the industry whilst connecting on a more personal level with our partners through our cultural programme. It was a great honour for us to share our expertise and experience with all our business partners as well as showing them the home of FORI Group headquarters, and a small part of our beautiful country. We are looking forward seeing you at our next conference in May 2016 on the Slovenian coast. We are pleased to report that in 2014 we had a 25% increase in income in the cable industry as well as a 4% increase in the automotive industry. We are also planning an intensive expansion of our production into the East and penetration into the American market.
  • 5. Milan F or š tner C E O of F O R I Group
  • 6. 6 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 W H O W E A R E FORI Group is an overarching organisation, integrating several business systems and activities: production, trade and engineering. Our trade mark is being open to new business opportunities and international operation, while the group's key objectives are strategic and capital ties within the group as well as efficient economy and organisation. With integrated delivery ASSOCIATED ENTERPRISES we are trying to surpass the expectations of our customers. Our Mission To have Flexible Organization of Research and Development Ideas, and strive to achieve customer satisfaction with the cables and in the car. Our Vision Our goal is to become a recognizable World OEM supplier and trademark owner for the white goods industry, OEM supplier for the automotive industry and cable industry. In the future we want to double our added value per employee and improve our image with higher standards as well as unique investments. It is not so much what we do, but how we think. 614 employees € 36,6 milion consolidated sales income in 2014 € 46.3 milion consolidated total assets By 2019, we plan sales income growth to € 48.8 milion FORI | Velenje TTO | Volčja Draga, Europe, Slovenia Russia
  • 7. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 7 S A L E S P E R B U S I N E S S D I V I S I O N % S A L E S P E R C U S T O M E R S E GM E N T % Cable absorbers
  • 8. 8 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 F I N A N C I A L H I GH L I GH T S A uto m otive industry C able industry W h ite g oods industry I nte g ra - ted solutions 5 6 % 2 7 % 1 0 % 7 % Sales per customer segment % in 2014 1 8 % 8 2 % P lastic and m etal T extil E Sales per business division % in 2014 The net sales of FORI Group will have grown by 2018 mainly in the automotive and cable programme by a rate of 10% annually and with focus on markets in Asia, the Middle East and America. In the coming years our focus will be to increase profitability and added value in all programmes.On the basis of this healthy growth we will reduce our debt and lower our net financial debt to EBITDA from a ratio of 3.7 in 2014 to 1.4 in 2019.
  • 9. 1 0 % 1 0 0 % Assets Liabilities L on g - ter m C apital S h ort - ter m Assets and Liabilities in 2014 Average nu m b e r o f employees F r o m 7 1 2 t o 6 14 (2013/2014) C A B L E P R O G R A M E NETSALES+25% (2013/2014) S L O V E N I A O T H E R S P A I N C Z E C H R E P U B L I C T U R K E Y R O M A N I A N E D E R L A N D G E R M A N Y H U N G A R Y C R O A T I A F R A N C E R U S S I A S L O V A K I A P O L A N D Sales by markets
  • 10. 10 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 S H O R T - T E R M F I N A N C I A L L I A B I L I T I E S 7 0 % Financial Liabilities in 2013 L on g - ter m financial L iabilities 3 0 % L on g - ter m financial L iabilities 8 8 % S H O R T - T E R M F I N A N C I A L L I A B I L I T I E S 1 2 % Financial Liabilities in 2014 By improving the maturity of funding, we assure the financial stability of FORI Group. EBITDA Consolidated Consolidated Revenue 17% 10% 100% 50% 80% 30% 35% 54% 65% 76% 76%
  • 11. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 11 1 . 5 0 0 . 0 0 0 5 0 0 . 0 0 0 1 . 0 0 0 . 0 0 0 2 . 0 0 0 . 0 0 0 2015 2016 2018 2017 2019 Consolidated CAPEX Financial Liabilites F inancial L iabilites We will invest more than 30% of EBITDA into the development of FORI Group and our finance strength and capital adequacy will grow rapidly in the next few years. Important activities for 2015 to 2019, will be focussed on the moderate growth of sales income, build on financial strength by reducing the net debt by at least 10 million EUR and improving the maturity structure of financial liabilities and effectively assess risks.
  • 12. 12 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 T E C H N I C A L T E X T I L E D I V I S I O N FORI Group is an overarching organization, integrating several business systems and activities: production, trade and engineering. Our trademark is being open to new business opportunities and international operation, while the group’s key objectives are strategic and capital ties within the group as well as efficient economy and organization. The Technical Textile Division consists of 4 pillars: Lamination and Sewing of materials for Interiors : Automotive, Aircrafts, Railway industry The Production Plants: Slovenia, Serbia, China: The Production Plants: Slovenia, China: The Production Plants: Slovenia: The Production Plants: Slovenia, Serbia: Laminates for Cable industry : TOP tapes® Laminates for Building Construction Insulation industry Sorbents and Covers for Mattresses for a high quality of living people T h e 1 st pillar T h e 2 N D pillar T h e 3 R D pillar T h e 4 T H pillar More than 23 mio m2 laminated technical textiles in 2014.
  • 13. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 13 LAMINATION TECHNOLOGIES, CUTTING & SEWING: INPUT: different materials such as PU foam, non-wovens, foils, knitted scrims, face fabrics, vinyl, leather, mesh 3D materials, watte, recycled materials etc. PRODUCTION PROCESSES: • Lamination: Flame lamination Hot Melt lamination Thermoadhesive coating Superabsorbent lamination Selfadhesive lamination • Cutting • Sewing OUTPUT: bi-laminates, tri-laminates, multi- laminates in rolls, laminated cut pieces, final products such as seat covers, headrests, armrests, door panel laminate, floor laminate, roof laminate etc. The 1st pillar in the technical textile division: AUTOMOTIVE industry - Interiors: RAILWAY industry- interiors: AIRCRAFT industry – Interiors: TOP tapes® Products for the Cable industry LAMINATION TECHNOLOGIES & CUTTING: INPUT: non-wovens, wovens, absorbent powder, net, carbon black liquid, copper/Al/Pet foils, paper, mica, yarns.. PRODUCTION PROCESSES: • Coating with carbon black • Lamination: Superabsorbent lamination • Cutting on width 15-1600mm, ID/OD based on customer requirements OUTPUT: TOP tapes® products ; tapes and yarns for different applications in cables : power cable LV,HV, MV,EHV, telecomunication, optical fiber cable.. The 2nd pillar in the technical textile division:
  • 14. 14 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 Laminates for the Building Construction Insulation industry LAMINATION TECHNOLOGIES & CUTTING : INPUT: nonwovens, watte, needle punched materials, absorbent powder/non-woven, paper, foils, glue PRODUCTION PROCESSES: • Coating & Lamination: Self-adhesive coating of different materials based on customer demands • Cutting on pieces or material in rolls max. width 1700mm OUTPUT: self-adhesive laminates , bi-laminates, tri-laminates.. Sorbents and Covers for Mattresses LAMINATION TECHNOLOGIES & CUTTING & SEWING : INPUT: non-wovens, fabrics, watte, needle punched materials, absorbent powder/non- woven, paper, foils, glue, knitted fabrics, jacquard knitted materials PRODUCTION PROCESSES: • Coating & Lamination: for sorbent products DRYTEX with high absorbtion capacity • Cutting on pieces or material in rolls • Sewing of covers for mattresses OUTPUT: sorbents products DRYTEX, matresses covers The 3rd pillar in the technical textile division: The 4th pillar in the technical textile division: T E C H N I C A L T E X T I L E D I V I S I O N
  • 15. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 15 P lastic Metal division Metal processing At our plant in Velenje we established metal processing; cutting, press cutting (punching), bending, forming – deep drawing, welding, brushing (grinding) and also the final phase assembly of metal plastics components and small household appliances. Input materials: Stainless steel (INOX) ordinary and zincked (warm and electro) metal sheet, aluminum sheet, plastic and other semi-products. Additional services: Assembly (line), powder coating (painting), washing, thermal treatment. Cutting Guillotine cutting of sheet metal up to 4mm thick and 2000mm wide. We also operate the special edge trimming and cutting machine from OMERA R1000. Press Cutting This is done by large CNC punching machines allowing sheet metal to be cut into arbitrary shapes (Arcade 212, Vipros 255,Europe 245 machines). Maximum thickness of sheet metal: 3.0mm. Basic sheet size:1250x2500mm. Bending For the bending of sheet metal we use two bending machines. The larger of the two has a bending force of 500kN at a bending length of 2000mm. The smaller machine has a 250kN bending force at a bending length of 1200mm. Both machines are from Amada Schiavi. Forming – deep drawing The deep drawing of sheet material is performed using our big hydraulic press OMERA which has 6300kN ram force and 3000 kN hold force (table dimension 1600x1300mm, stroke of press 800m) and three smaller hydraulic presses (1250,1600 and 3150 kN ram force, all OMERA brand). However, smaller items of wire and sheet metal can be pressed on smaller eccentric presses with 200- 1600kN ram force Plastics Taking into consideration the basic strategic development, which demands an integrated and complex offer, we also developed a plastic
  • 16. 16 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 Injection moulding The thermo plastic materials Our process technology features computer controlled production using 14 KRAUSSMAFFEI injection molding machines which have up to approx. 3600g capacity and a clamping force from 40 to 800 tons. The machines were purchased in succession mainly from 2002 onwards. All big machines (above 300 tons) are equipped with SEPRO automatic manipulators. Toolmaking In our own tool shop, we design and produce tools intended for shaping all types of sheet metal (Stainless Fe (INOX) ordinary and zincked (warm and electro) metal sheet) When making tools, we fully conform to the customers' requirements and needs. Due to limitations of production capacities, we have decided to hire subcontractors, tool making specialists, to manufacture plastic product injection tools. Tabak1stranaA Input materials: ABS, PS, PP, PC, PBT, PA6,... Additional services: Assembly, powder coating of plastic parts (painting), tool making, tamp prints and serigraphy. P lastic Metal division programme, with an emphasis on plastic processing and plastic injection. In the segment of plastic injection, we have several years of experience in the manufacturing of components for the needs of manufacturers of small and large components for the automotive industry. As additional services we also offer are assembly and the varnishing of plastic products. Injection moulding The thermo plastic materials Our process technology features computer controlled production using 14 KRAUSSMAFFEI injection molding machines which have up to approx. 3600g capacity and a clamping force from 40 to 800 tons. The machines were purchased in succession mainly from 2002 onwards. All big machines (above 300 tons) are equipped with SEPRO automatic manipulators.
  • 17. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 17 Design and Developement In any industrial area, taking into account the customer' wishes, we offer an execution of integrated development solutions within which we guarantee cooperation in joint projects, from the design conception of products or assemblies to the phase of laying concepts for individual assemblies or their components. The engineering tools most often used in the concept laying process are Pro/Engineer and Catia. In case of the execution of a more extensive specific mechanical analyses of products is needed, we seek collaboration with external specialised expert institutions. The shaping of various types of sheet metal is performed on 9 hydraulic and eccentric presses manufactured by OMERA, GRABENER, PRESSE ROSS. The pressing forces of these machines vary depending on their size, from 1250 to 6300 kN. All hydraulic presses have a retaining cushion to retain the sheet metal formats during the deep drawing operation with a maximum force of 600 to 3000 kN. N E T S A L E S P E R D I V I S I O N %
  • 18. 18 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 T H E F O R I G R O U P T O P TA P E S T E C H N I C A L C O N F E R E N C E Keeping up with the times to build a better future for everyone. On the 16th and 17th of February 2015 in Nova Gorica, Slovenia, we held the FORI Group TOP TAPES technical conference in which 60 business partners from 21 companies participated. They came from 13 different countries including Algeria, Azerbaijan, Croatia, Iran, Germany, Russia, Qatar, Saudi Arabia and Serbia. After a successful end to the 2014 business year, the textile factory Okroglica, d.d., the backbone of the TOP TAPES brand development, organised a conference which would bring together the largest international cable manufacturers. Experts from the field of cable industry technology would present new innovations as well as future guidelines. All of the conference participants were major global players on the cable industry market and technical experts from the field. This made their presence in Slovenia immensely important for the further consolidation of the TOP TAPES brand. Furthermore, the inclusion of so many international participants proved to us that TT Okroglica is successfully following its strategy to become supplier to the largest international manufacturers in the cable industry. 10 international papers were presented at the conference, which clearly outlined the latest trends in technical development on the cable industry market. Furthermore, in discussion, participants exchanged numerous pieces of technical knowledge, experiences and views on the current and future development of the medium and high voltage power cable branches on a global scale. TT Okroglica with its manufacturing in Slovenia and Qingdao Sinositec, Co. Ltd., with its manufacturing in China, have not only consolidated and upgraded their strategic partnership with their buyers, but have also played an important role in bringing the technical professions in the cable industry together on an international scale. The overall consensus at the technical conference showed large additional market potential and possibilities, thus TT Okroglica will be able to further successfully apply its development opportunities on a wider product portfolio and conquer new markets. Simultaneously, the overall conclusions of the conference mean the acknowledgement of TT Okroglica and Qingdao Sinositec as a supplier by the largest cable industry manufacturers; not only do they respond efficiently to the demands and expectations of the most demanding buyers, but are a reliable systems development supplier. This is undoubtedly an important milestone for the long-term development of the company, and thus an important generator of economic development and growth in the region. The results of the conference also gave us development guidelines, which will mould the international cable industry market in the future. We are convinced that the awareness of TT Okroglica and Qingdao Sinositec as well as the TOP TAPES brand will grow across the world. Milan Forštner, the CEO of FORI Group, welcomed the guests in seven languages and made a short speech marking the opening of the first technical conference.
  • 19. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 19 P articipants at t h e tec h nical conference :
  • 20. WE HAVE ALREADY CONFIRMED NEXT YEAR'S DATES FOR OUR INTERNATIONAL TOP TAPES CONFERENCE ON THE SLOVENIAN COAST INTERNATIONAL TOP TAPES CONFERENCE 16TH-18TH MAY 2016 Do not miss it, register now! Contact: Patricija Korošec General manager of Qingdao Sinositec & Cable division director E: patricija.korosec@fori.si F ori g roup
  • 21. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 21 C O MM I T M E N T O F M A N A G E M E N T The management of each individual company has committed itself to include these fundamental safety principles in all operational processes of their company. Thus, the FORI management, added to its Quality Management Handbook the Commitment of Management and Environmental Management Policy, which are as follows: The vision, mission and strategic objectives of FORI Group bind all employees to manufacture and market quality components and products for the white goods industry and automotive industry. The quality of products, processes and services will be constantly improved, thus strengthening our competitive abilities. In turn, thes abilities will be supported by partnership among employees and companies and be directly reflected in the development of our products and services. Our operations will allow us to achieve prompt delivery of our products and services to our buyers at the agreed price and quality, assuring their trust in us. Knowledge and development opportunities for employees will focus on the originality of ideas, quality implementation and increasing added value. Within the operational framework of the companies in FORI Group, we are acutely aware of the need and concern for environmental protection, assuring health and safety in the workplace for our employees and fire prevention measures with which we protect the property of our owners. Management commits to: • CONTINUOUSLY IDENTIFY AND RESPECT ALL CUSTOMER REQUIREMENTS, NATIONAL LEGISLATION AND LEGISLATION IN THE COUNTRIES OF BUSINESS PARTNERS AND STANDARDS, • ADAPT BUSINESS POLICY WITH THE CURRENT MARKET SITUATION, • ANNUALLY DEFINE MEASURABLE OBJECTIVES TO PROCESS OWNERS, ANNUAL ENVIRONMENTAL OBJECTIVES WITH PROGRAMMES AND CONSTANT IMPLEMENTATION OF ACTIVITIES FOR THEIR REALISATION, • IMPLEMENT A MANAGERIAL REVIEW FOR ASSURING EFFICIENCY OF OPERATIONAL QUALITY MANAGEMENT AND ENVIRONMENTAL MANAGEMENT SYSTEMS AND SUCCESS OF COMPANY OPERATIONS WITH PROCESS OWNERS AT LEAST ONCE A YEAR, • ASSURE FUNDS AND SOURCES WHICH ALLOW FOR THE IMPLEMENTATION OF THE QUALITY MANAGEMENT SYSTEM AND ENVIRONMENTAL MANAGEMENT SYSTEM, • CHECK LEGAL REQUIREMENTSAREMETANDOTHERREGULATIONSWHICHINFLUENCETHEOPERATIONS OF THE COMPANY AT LEAST ONCE A YEAR.
  • 22. 22 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 Management is committed that the quality and environmental management objectives are included in business planning, and in the case of any deviation from the planned objectives, to take prompt appropriate measures. The achievement of all business goals is binding and serves as a measure of success of all managers and senior executives at FORI Group. ENVIRONMENTAL PROTECTION POLICIES AND OBJECTIVES In the commitment of FORI Group management, we stated that we want to be known for our constant efforts to decrease the burden on the environment. This objective has been further modified with the fundamental strategy in the field of the environmental management system and commitment that the health and safety of employees and fire prevention be permanently included in all business processes. A large emphasis will also be put on comprehensive prevention activities in the field (health and safety of employees, environmental protection, property protection etc.). In order to achieve this, we, together with our employees, business partners and the general public, focus all activities in the implementation of environmental and other legislation as well as individual customer requirements and thus reduce the negative impact of our activities on the environment. In doing this we will follow the environmental protection policies and objectives: 1. Have quality processes, products and services which satisfy the demands of the customer and environmental legislation. 2. Make efforts to reduce the burden on the environment with choosing appropriate technology and with the implementation of activities to prevent pollution and other influences on the environment. 3. Assure the implementation of the entire environmental management system, which the management monitor and evaluate in the Management review. 4. Promptly and appropriately take measures in the case that any deviation or irregularity in the field of environmental protection occurs. 5. Train employees for the correct and safe approach in the fields of environmental protection, handling chemicals, safety in the workplace and fire prevention. 6. Implement all activities which assure health and safety in the workplace in all associated companies. 7. Implement all activities which assure fire prevention in all associated companies. 8. Monitor and meet legal requirements of all associated companies. 9. Notify employees of the efficiency of the environmental management system operations. 10. Notify the interested internal and external public on operations in the field of environmental protection. Environmental management The objectives of the environmental management system is decided upon annually, dependent on the events in the individual companies and taking into account the annual environmental assessment viewpoints. We spend a lot of time working on the processes for reducing the amount of waste: preventing waste accumulation, separating waste at the source, collecting and selling reusable waste for further recycling, collecting and submitting hazardous waste and sorting and disposing of MSW (mixed municipal waste) as the last and most expensive option for handling waste. After several years of operation and working on this objective, we have decreased the amount of MSW by more than 25% and increased the amount of reusable waste by about 13%. We monitor energy use on a monthly basis, we compare the usage of individual plants and evaluate them in an index which takes into account Reduced waste by more than 25% Increased reusable waste by 13% Reduced energy usage by 10%
  • 23. the number of operating hours carried out and try to manage them as efficiently as possible. We work a lot on the processes for decreasing and rationally using technological gas and electric energy (changing current light bulbs with energy saving bulbs, control over systems which involve greenhouse gases, integration of meters for the use of technological gases on the manufacturing line, joining the workforce of two plants into one, approaching energy suppliers as a group and getting a better price for a larger quantity, using appropriate material dryers, using excess heat for cooling premises etc.). In 2015, we will save around 10% of our energy use. As an important member in the chain of suppliers and buyers, we also demand of them that they are environmentally acceptable whether it is a service or with a product and its packaging. With regards to this, we monitor and check their compliance with legislation and suitability with the appropriate Statements of Compliance (REACH, RoHS, packaging, certification of materials, safety sheets for hazardous materials, SVHC – list of banned substances, etc.). Health and safety of employees To reach these goals we have put a lot of measures in place, which we have implemented over the years in the individual companies within the FORI Group. To decrease the percentage of sick leave, we started a project called “Promoting the health of employees – Decreasing sick leave”. We want this project to raise awareness amongst employees of a safer and healthier lifestyle and consequently a more efficient and safer work environment. In the area of health and safety in the workplace and fire prevention, we will implement the following activities: • introductory and periodic employee training in the areas of H&S, fire prevention and environmental management systems, • additional training for all employees to greater encourage a safe working environment and for a higher level of health and safety in the workplace, preventative measures for decreasing the number of injuries in the workplace and direct responsibility of managerial personnel, • periodic training of employees in the risk assessment every two or more years for the safe implementation of specific jobs and tasks in certain periods (forklift drivers, crane operators working from the ground, heavy construction equipment, welders, extinguishing fires and carrying out evacuations, administering first aid, work with technological gases, work with chemicals, etc.), • implementing prior and periodic – preventative medical checks on employees, • implementing periodic and controlled checks and tests on equipment in accordance with the relevant legislation and with the appropriate permit carry out this type of work and service, • implementing checks on devices and equipment for fire prevention (fire extinguishers, hydrants, fire alarms, electronic installations, lightning conductors, emergency lighting) • implementing all necessary monitoring with regards to buildings and company activities. Our strategic objectives: No accidents in the workplace, No irregular or hazardous events and No fires. We have recorded a 40% decrease in injuries from 2009-2014!
  • 24. 24 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 E nviron m ental A wareness We are a company of creative people, which is a step ahead of its buyers' wishes and competition, as well as working with its environment. Our concern for quality of life is also reflected in our behaviour and attitude towards the environment. This is why, in 2009, we were certified in the area of Environmental Management. We received ISO 14001 certificate on 14/7/2009. ISO 14001 is an international standard for environmental management systems which includes the management of environmental aspects of production or service activities. It is one of the most important tools used by companies all over the world, to be responsible for the challenge which their activity presents to the environment. The goal of this standard is to preserve the environment and suitable living conditions for future generations by reaching legislative standards, using sources efficiently as well as preventing environmental pollution. Within the company we have, in addition to development projects, permanent improvement processes, which include improved technological processes, working environment and raising the level of quality of work in our company, from both the standpoint of employee well-being and higher quality product. We can praise ourselves that a number of low emission products grow with the increasingly conscious end buyers of automobiles. This type of analysis represents a high expense which is reflected on the final selling price of the product; however we consider this an investment in our future.
  • 25. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 25 In developing higher quality processes we accele- rate the development of production, consequen- tly reducing the environmental impact. Respon- sibility to preserve the environment is shown in all areas of our operations. We take into acco- unt environmental development initiatives when implementing new technology and lessening effects on the environment. Out products are sent to an accredited laboratory abroad, where they measure the emissions in the product. We can praise ourselves that a number of low emissi- on products grow with the increasingly conscious end buyers of automobiles. This type of analysis represents a high expense which is reflected on the final selling price of the product; however we consider this an investment in our environment and the future of our company. The newest “green environmentally friendly lami- nation technology” on the market as well as in TT Okroglica production is HOT MELT LAMINATION. The process itself is environmentally friendly, as it does not release isocyanates and harmful smoke emissions to the wider surroundings, work envi- ronment or our product. Emissions in products are measured as FOG, VOC (emissions of volatile hydrocarbons). This line is meant for laminating a number of materials to- gether with modern adhesive, which are ecologi- cally sound. Hot melt lamination is an undisputed technological advancement in this area. It replaces lamination with other processes such as flame or thermal laminating. Laminating with an open fla- me is an ecologically polluting technology, from both the standpoint of use of gas and the con- sequent smoke emissions, due to which, we have installed a cleaning system which purifies the air before it is released into the environment. Daimler, the leading automobile manufacturer, emphasises the importance of low emission materials, which are built into the automobile brand Mercedes. TT Okroglica is also a supplier of filled and laminated materials for the seats built into Mercedes. Operation efficiency is also a result of our relation- ship with the environment, to immediate and wi- der social groups, which is why in this area we are positioned in a key long-term strategic direction. In the automotive industry, we comply with the requirements of the ISO/TS 16949 specifications. This is an ISO technical specification, developed in the framework of IATF (International Automotive Task Force). IATF unites global automotive manu- facturers and national associations. The specifica- tions contain the requirements of other national standards for the automotive industry e.g. QS- 9000 (USA), VDA 6.1 (Germany), EAQF (France), AVSQ (Italy), and are therefore an equivalent substitute. Standard ISO/TS 16949:2009 determi- nes the requirement for a quality control system in development and manufacturing as well as in the installation and servicing of products, meant for the automotive industry. It covers the entire opera- tions system of the automotive industry from start to finish. In comparison with other quality standards such as e.g. ISO 9001, ISO TS 16949 is more deman- ding and more detailed, in particular about deve- lopment and manufacturing processes as well as the system requirements for quality control on the highest level. This allows us to guarantee our customers high quality and reliable products.
  • 26. 26 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 P eople m a k e success We are constantly striving for our employees to feel good while they work, and extend that feeling into good results, which are the reflection of a satisfied employee. All our efforts and investment in the well-being of employees is seen in positive results; for several years we have recorded a minimum percentage of absenteeism. In addition to the reward system, we also organize social gatherings and gatherings for children where we have an opportunity to enjoy ourselves and have fun together outside of the workplace. This also gives us a chance to take care of our inter-relationships and build on the team spirit within the company, which is positively reflected in all areas of operation. Engaging Employees In our company we support everyone who wants to achieve more on their career path. We give employees the opportunity to prove themselves in different positions as well as different countries. This gives them a greater degree of self-confidence in addition to wider knowledge of the environment in which both we and our buyers operate. Both individuals and teams have the opportunity to achieve their goals using the knowledge of all our companies and attend our internal strategic conferences and social events, where we exchange our experiences and support and motivate each other. In 2014, we organised 620 educational hours for our employees, which is 30% more than the previous year. We are happy that we have an increasingly stronger wish from all companies for education, inclusion in innovation and intercommunication. 78% of employees are satisfied in their job. Internatonal Student and Employees Exchange and Tutorship As a business group we are aware that with our knowledge and our diversity of services and products worldwide we can enable many students to gain know-how on a professional level and become more practical and easier to employ. With this in our mind, we collaborate with different cities all over the world and help students to take part in international exchange, where they can gain not only professional knowledge but also an insight into different
  • 27. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 27 Award for Most Dependable Employee: Every year at FORI Group, we present the award for the Most Dependable Employee in all our companies. Each year we choose the best employee from each company following criteria based on the quality of their work, their reliability and their dedication to top results. Chairman’s award for Manager of the year 2014 Manager of the year is the highest honour an employee can receive in the FORI Group. It recognizes individual employee excellence in the area of integrity, innovation, quality, global growth, sustainability, customer satisfaction and leader development. “I appreciate this award so much and it means a lot to me. It’s additional confirmation that we did a good job last year, and that we as a team are especially dedicated to our work. I believe that we can achieve even more and an award like this definitely gives me the motivation and drive to achieve new goals.” Patricija Korošeč, Manager of the Year 2014 E m ployees fro m S erbia in trainin g in S lovenia cultures. Our business system supports all employees and gives them options to expand their horizons of knowledge by different functions in all our companies over the world. We are aware that all our companies and leaders should be united and work as one entity, having in mind all cultural differences and experiences
  • 28. 28 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 P ro m otin g our C ountry Several times a year, at larger fairs around the world, we are happy and honoured, in addition to our business services, to show visitors the culture and beauty of our country – Slovenia through music, food and a warm smile...
  • 29. 2 0 1 4 B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T | 29 W e are h ono U red In past years, the Johnson Controls plant Češka Lipa from the side of JCI central, had an opportunity to award its best supplier. We received this award several years in a row, the last one at the gala banquet at JCI. We were proud that we had outperformed the other suppliers present at the banquet, e.g. German suppliers Ziegler, Rowa, and Boxmark. The evaluation of suppliers is still on-going, just without a prize. The evaluation criteria include the following areas: • logistics: ensuring on time delivery and a correct amount of supplies, • quality: a quality product in accordance with tier 1 specifications and OEM buyers as well as achieving PPMs which are decided upon by buyers, • price, • service: reaction of company, flexibility, innovativeness, technical support, reliability, friendliness. That we become and remain “A” suppliers, we takes a lot of energy, effort and negotiation, that in despite of tough competition from eastern European countries (where the automobile industry is moving), we are still on the list of suppliers. More importantly, it makes us very happy to be nominated for new projects. We are graded as an “A” supplier, meaning we are suitable as long-term suppliers.
  • 30. 30 | B U S I N E S S AN D S U S T A I N B I L I T Y R E P O R T 2 0 1 4 F ori Group Milan Forštner, CEO Fori Group Mitja Forštner, Vice President of Fori Group Martin Forštner, Manager of Investment division, procurator Ivica Forštner, CEO Consultant Polona Gornjak Krpač, Manager of Technical Textile Divison; General Manager at Tekstilna tovarna Okroglica d.d. Patricija Korošec, General Manager at Quingdao Sinositec and Cable division director Alojz Kovše, General Manager at Zastava Tapacirnica a.d. Nada Jurko, Executive Manager of Finance Saša Brilej, Manager of General Legal Affairs Sector