Home > Performance, outcomes and future outlook > Manufactured capital

MANUFACTURED CAPITAL

REMELT AND CASTING EQUIPMENT

Melting and holding furnaces are used to melt and blend primary aluminium, alloying elements and scrap aluminium. The casting launder and moulds are used to solidify the molten aluminium into rolling slab. There are three slab production lines with a capacity of 240 000 tons per year.

Coated and painted scrap is also processed via the aluminium reclamation operation which consists of a shredding line, de-coater and induction furnace. The processed scrap is fed into the slab production lines above.

   

HOT AND COLD ROLLING MILLS AND FOIL MILLS

Hulamin has state-of-the-art rolling mills, which roll the slab into coils. The hot mills roll heated slab, substantially reducing it thickness and multiplying its length by up to 24 times. The cold mills further roll the hot-rolled coils to achieve the required gauges and properties.
   

PLATE PLANT

The aluminium plate plant is a technologically advanced process that includes heat treatment, sawing, stretching and cut-to-length lines.
   

COATING PLANT

Coils can be coated with paint or lacquer using rollers and then oven-cured. The coil coating process is designed to ensure highly consistent quality.
   

SLITTERS, CUT-TO-LENGTH LINES AND TENSION LEVELLERS

These items of equipment form part of the finishing processes. These high-tech machines allow for a high quality product that meets customers’ specific needs.
   

EXTRUSION PLANTS

Billet presses push softened metal through dies to create desired profiles, which are then finished by either coating, anodising or fabrication. Hulamin has two extrusion plants, both of which boast these advanced technologies.
   

INFRASTRUCTURE

Buildings, roads, pipelines and other services essential for production.
   

STRATEGIC SPARES

Spares, which are essential to production, are on hand in the event of breakdowns and urgent repairs.

   

FUTURE AND CURRENT PROJECTS

Hulamin has entered into agreements with Nampak Bevcan to supply aluminium coil for the manufacture of all-aluminium beverage cans.

The recycling of aluminium is ever more attractive and Hulamin has investigated a range of investments and actions to increase the recycled content of its products.

Hulamin is investing in the infrastructure needed to recycle Used Beverage Cans (UBCs) and other end-of-life and customer scrap in the most effective and environmentally responsible manner. A new recycling centre has been approved for installation at an estimated cost of R300 million, which will further advance our manufactured capital base.

 

Manufactured capital is the infrastructure, plant and equipment that we use to produce our products. It includes assets that are produced by other entities and those manufactured internally and excludes intellectual capital such as software. The management of these assets is a key business imperative and is considered an essential element in achieving manufacturing excellence and operational performance. Our high-tech, state-of-the-art rolling and semi-fabrication assets are central to our operations. The implementation of asset maintenance and care policies will improve asset utilisation and profitability1.

Asset management strategy
The purpose of the asset risk management strategy is to provide a structured approach to the implementation of an asset risk management system, based on ISO 55000 and ISO 31000 principles. Our asset management strategy is aligned with international best practice. The focus is on asset care, operation and maintenance while considering the asset performance and the effect of external factors.

Key areas of focus:
Business risk assessment
To identify potential assets that pose a high risk to the overall business objectives.

Operation task criticality
To determine activities related to assets that can cause harm to people and the environment while performing these activities.

Equipment criticality analysis
To identify the most significant equipment and determine the most appropriate approach to the development of maintenance tasks.

Spares criticality analysis
To determine inventory categories and develop an approach for a specific spare or material.

Asset acquisition risk management
To determine issues that should be included in the specification of the asset such as training, integration of systems, energy considerations, critical spares and technology.

IMA
Hulamin has developed an Integrated Manufacturing Approach (IMA) to ensure that it achieves its goals and objectives. IMA is Hulamin’s operational excellence programme and defines the manner in which to standardise, improve and sustain Hulamin. The programme consists of four pillars, namely standardised business processes, controlled manufacturing processes, reliable equipment and improvement projects.

The IMA is a continuous process of uplifting standards, improving systems and sustaining them. This allows us to deliver value to the customer and to increase the value of Hulamin. The operation of the IMA allowed for a financial benefit of R40,2 million in 2013.

The reliable equipment pillar of IMA manages our impact on manufactured capital. It allows us to:

  • Capture and analyse our maintenance history
  • Identify improvement opportunities
  • Learn from our failures
  • Measure our performance
  • Standardise on best practice processes
  • Sustain the improvements we made

Asset care
The asset care team ensures that equipment is kept in good, functional condition and contributes to safe working conditions and prevents environmental damage.

Our dedicated asset care team is focused on the:

  • Development and implementation of Asset Risk Management policies and governance
  • Development and implementation of centralised work planning and control
  • Development and implementation of improved material management systems
  • Achieving ISO 55000 Certification

Our reliance on manufactured capital and our approach to the management thereof allow for us to extract the benefits and value of our assets.

OPERATIONAL STATISTICS
         
                     
R177 million
(2012: R176 million)
  192 300 tons
(2012: 195 692 tons)
 
  • Implementation
    of equipment
    performance
    systems at 90%
  • Manufacturing
    cost targets achieved
    at 82,8%
  R131 million
(2012: R82 million)
  R256 000
(2012: R60 977 000)
  R2 515 million
(after impairment
of R2 090 million) (2012: R4 674
million)