Alcan Iceland Ltd. Company Snapshot. Sector: Mining and metals Country: Iceland Employees: 490 Annual budget: 652 mln Euro
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1 Company Snapshot Sector: Mining and metals Country: Iceland Employees: 490 Annual budget: 652 mln Euro Alcan Iceland Ltd Alcan Iceland Ltd. (ISAL) is an aluminium producer and one of the largest companies in Iceland. ISAL operates at a single site in Straumsvik, a harbor area, located approximately 16 km from Reykjavik, the capital of Iceland. ISAL has played a big role in Iceland's economy for 45 years, since it was founded in 1966 and its production counts for 9% of all goods exported from the country. ISAL is solely owned by Rio Tinto, a leading international mining and metals company that employs over 77,000 people in 40 countries.
2 ISAL Policy and Achievements ISAL s policy: Our mission is to produce high quality aluminium with maximum profitability in conformance to customers requirements, and with the utmost attention to the environment, safety and health. Winner of The Icelandic Quality Award in 2005 Winner of Light Metals Award from the Minerals, Metals and Materials Society in 2008 Nominated as The Most Outstanding Company by Creditinfo in Star recognition by EFQM in 2012
3 Strategy and challenges Company s main goals are to increase production and productivity by investing in equipment and people. ISAL is convinced that the focus on health, safety and environment is a prerequisite for excellent performance. New product introduced to meet customer requirements and improve company s market position and financial performance Rio Tinto invested $487mln to increase production and change product type from ingots to billets New product type will involve a complete change of customer portfolio from current 4 customers to more than 20 in the future Taking into consideration that Iceland s power resources are not limitless, Access to power for future growth of the plant will continue to be a challenge.
4 The way we work Company s long term vision is achieved by commitment to excellence in all activities ISAL is convinced that emphasis on continuous improvements, education of the workforce, asset management, product quality and social responsibility has enabled the company to increase production from 150kt in 1969 to 190kt in Health, safety and environmental issues Focus on health, safety and environment is the prerequisite for excellent performance Employees Competent, motivated and positive employees that create a safe and preferred workplace Stress on education, providing feedback and communication Providing opportunities for career development Community and communication Operates in harmony with the environment, the society and community to maintain sustainable development Two way communication with all stakeholders Leading with good example in all activities ISAL Corporate Policy: Customers Satisfied customers ISAL perceived as first choice Growth, Technology and Development Ensuring efficiency in all processes Continuous improvement Clear, achievable goals Operations and Financial Results Maximising company s return rate Ensuring competitiveness Preventing waste and improving stability in operations
5 Health and safety ISAL puts a strong effort on creating zero harm culture among its employees. The company achieved over 6 mln work hours without a lost time incidents. For this outstanding performance ISAL was awarded with Rio Tinto Chief Executive Safety Award 2010 and won Safest Aluminium Smelter Award from the European Aluminium Association in There are 23 safety and hygiene guards at ISAL that monitor the workplace with regards to health and safety. Their role is to encourage employees to think about theirs and others' health and safety at the workplace and keep discussions regarding these issues alive. ISAL puts the management of health, safety and the environment at the forefront of its operations. Health, Safety and Environmental (HSE) processes and performance indicators are systematically managed through the ISAL Management System and as a result a strong culture of HSE has developed at ISAL through the years. Lost Time Incident refers to a serious incident where an employee or contractor sustain trauma with serious consequences to their health.
6 Training for improved safety ISAL believes that all employees are entitled to have information on their workplace environment and how they can protect themselves. Training, meetings and workshops on health and safety issues are taking place regularly throughout the year. Annually ISAL provides over 15,000 training hours to their employees The main focus of the training is put on health and safety and environmental issues. The training includes first aid, working at heights, heavy machinery training, how to reduce the environmental footprint of the organization and other industry related matters Every other week the company provides training for new employees and contractors where the main focus is health and safety Managers and specialists at ISAL take a moment every day to discuss environmental, health and safety issues with other employees to identify risks and prevent incidents from re-occurring. Correct health, safety and environmental behavior is awarded and discussed.
7 Kg/ton Al (CO 2 equivalent Environmental performance Environmental performance is one of the key indicators for ISAL The company managed to reduce emission of total greenhouse gasses by more than half since 1990 while doubling aluminum production at the same time Strong focus has been put on educating and train employees and their involvement in problems solving and reducing the impact on the environment. Greenhouse gas emissions at ISAL Anodes PFC Fossil fuel Environmental objectives are regularly communicated to all employees so that they understand their impact on the overall performance. The fluoride and dust emission has reduced considerably for the past years, PFC emission has reduced by 98% since Ambitious objectives, technical improvements and motivated and well educated employees are the key to this performance The key parameters for emissions performance are part of employees key performance indicators.
8 Employees Productivity improvement is one of the key strategic challenges of ISAL. Investment in education and skills of employees helps the company to achieve their goals and improve efficiency of the employees. Free of charge education is provided in the to employees in the ISAL School. The ISAL School which acts as Educational Academy is credited as an upper secondary level of education in Iceland. It provides courses on two levels basic and secondary. Apart from general education the ISAL School offers training on leadership, communication, computer and language skills and technical matters. Employees who graduate from The ISAL School receive a salary rise To date, 218 employees have completed basic level of education in the ISAL School Over 180 employees have university degree 79% of the employees of ISAL believe they receive an adequate training and education 83% of employees are satisfied with their work at SAL 78% of employees would recommend ISAL as a place to work for to others
9 Community and communication The company s goal is to ensure that its operations are carried out in harmony with the environment and the community. A great deal of importance is put on informing the public about the Company s operations. The Sustainable Development Report is distributed to every home in the district where the company operates It is ISAL s goal to operate in harmony with the environment and society and in the spirit of sustainable development. One of the keys to achieve this is to respond to the community. All complaints from the community are recorded, investigated and responded to. Public attitude towards the company is regularly surveyed since 2009 ISAL signed a 5 year plan with the community where it operates to ensure mutual benefits and harmonic cooperation
10 Results and summary s ISAL believes that their long term vision can only be achieved by commitment to excellence in all areas Large emphasis is put on continuous improvement, education of the workforce, asset management, product quality and social responsibility Management of health, safety and the environment is at the forefront of all company s operations. All operations are performed with respect to employees and their life choices and in harmony with nature and the community
11 EFQM Shares What Works EFQM is committed to help organisations drive improvement through the use of the EFQM Excellence Model, a comprehensive management framework used by over organisations in Europe. For the last 20 years, we manage the development of this Model, incorporating the experiences and learning from these organisations to ensure it reflects reality. To help you implement our Model, we provide training, assessment tools and recognition. But our real talent comes from gathering good practices and integrating those within our portfolio. EFQM, a not-for-profit membership Foundation, aims to share what works, through case studies, online seminars, working groups, conferences and thematic events. We nurture a network of world-class organisations and their leaders who share our passion for business excellence. We believe that the EFQM Model is a common framework that helps us all to improve our businesses. Sharing our member s enthusiasm, their motivation and the results they achieve; that is what we work for at EFQM.
12 EFQM Avenue des Olympiades 2 5 th Floor B-1140 Brussels Belgium Tel : Fax : info@efqm.org EFQM would like to acknowledge Arkadiusz Miłak from Schenker Poland for his support with preparing this publication EFQM 2012 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means (be this electronically, mechanically, through photocopy, or recording or otherwise) without either the prior written permission of, or a licence permitting restricted copying, and use for a third party, from the publisher.
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