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 leading asset maintenance and care policies will improve asset utilisation and profitability.
LOOKING BACK on our 2017 goals
- Manufacturing performance yield for 2017 decreased to 66,9%
(2016: 67,4%) due to a more complex mix of products being produced.
- Can body stock production ramp up continues in line with our targets.
Focus for 2018
- Continue to improve our production performance and efficiencies to reach our upwards revised target of 68%.
- Continue to optimise our cost-efficiency programme without hampering the achievement of targeted production and sales levels.
- Improved utilisation of cheap scrap metal units and the optimisation of the Camps Drift and Isizinda remelt facilities.
strategic asset base
The strategic assets of Hulamin can be separated into the following key categories, of which all are important to the overall state-of-the-art facilities that produce our products.
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).
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.
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 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.
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:
- 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.
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.