RELIANCE ON KEY CAPITALS
GOVERNANCE AND LEADERSHIP
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 profitability.
Looking back on our
KEY CAPITAL RELIANCES
Local aluminium smelters
Hillside aluminium smelter (source of primary aluminium for Hulamin’s remelt and casting operation).
Bayside casting facility
Bayside casthouse (source of one-third of Hulamin’s requirements for rolling slab for the rolling operation).
Remelt and casting Hulamin’s remelt operations, consist of:
- Three slab production lines, fed by reverberatory melting furnaces, with a slab capacity of around
240 000 tons per year
- An aluminium reclamation operation
- Two twin roll casters, which are able to process scrap and primary metal into coil, with the capacity to produce 20 000 tons of coil per year
- 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
Hulamin is a conventional flat rolled aluminium products producer and operates hot, cold and foil rolling mills. Finishing equipment includes coil coating lines, slitting, sheet cut-to-length lines, cleaning and tension levelling and foil finishing facilities. A state-of-the-art plate plant is equipped with a range of equipment including sawing, stretching and plate cut-to-length lines.
Hulamin manufactures the majority of the extrusion dies for its two extrusion plants. Heated billet is placed in an extrusion press which pushes the softened metal through the die to produce the desired profile. Finishing options include powder coating, anodising and fabrication.
Hulamin operates an aluminium reclamation operation which consists of a shredding line, de-coater and induction furnace which is used to process light and coated scrap to produce aluminium sows that are fed into the three slab production lines. A R300 million investment in a scrap sorting, processing and recycling facility was approved in 2013 and went online in the third quarter of 2015. The facility was completed on time and within budget.
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 AREA 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.
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 furthering the:
Our reliance on manufactured capital and our approach to the management thereof allow for us to extract the benefits and value of our assets.
Hulamin has invested 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. The recycling centre, which cost R300 million, has further advanced our manufactured capital. The construction of this plant was within budget and came online in the third quarter of 2015. The facility is now in the process of ramping up to full capacity.
OPERATIONAL STATISTICS 2016
STRATEGIC ASSET BASE
The strategic assets of Hulamin can be separated into three key areas of which all are important to the overall state-of-the-art facilities that contribute to produce our products.
|GROUP ASSETS||HULAMIN ROLLED PRODUCTS|
|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.
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.
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. Used beverage cans are processed through the UBC cleaning line and the recycling furnace.
The aluminium plate plant is a technologically advanced process that includes heat treatment, sawing, stretching and cut-to-length lines.
Buildings, roads, pipelines and other services essential for production.
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.
Spares, which are essential to production, are on hand in the event of breakdowns and urgent repairs.
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.
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.