a) Business activity
The Aluminum Segment includes the following companies: Huta Aluminium Konin (Impexmetal SA), Symonvit Ltd.
Zakład Huta Aluminium Konin, belonging to Impexmetal S.A., is the leader on the Polish market in terms of standard rolled products made from aluminium and its alloys.
The main products in the Aluminium Segment include:
- Sheets and strips - (hot-rolled and cold-rolled) used in electrical, chemical, automotive and construction industry,
- Thin sheets and strips - used in the production of coolers, bottle caps, trays, window blinds and construction strips
The greatest use of the Group's aluminium products in the automotive industry, construction industry, electronics industry and for the manufacture of packaging.
Symonvit Ltd is engaged in the management of intellectual property.
b) Sales and markets
Quantitative sales and revenues from sales in the Aluminium Segment in 2013 and 2012 are presented below:
|Company||Products||Quantity [T]||Value [TPLN]|
|Impexmetal (Zakład Huta Aluminium Konin)|
|Total Aluminium Segment||72,283||72,758||815,108||841,508|
The 2013 ended for the Aluminium Segment with a slightly lower level of sales in terms of volume. It should be emphasised that the structure of sales changed favourably in 2013. There was a higher level of sales of thin products, which are sold with the highest margins. Currently, an investment process in underway, as a result of which production capacity will increase by 10,000 tons.
The main directions of sales in the Aluminium Segment in the years 2013 - 2012 are shown in the following table:
|Sales structure [%]||2013||2012|
|Exports as % of total sales||50%||48%|
In 2013, the main directions of sales in the Aluminium Segment did not changed significantly. The largest market segment for export sales for the Aluminium Segment is still Germany. Sales of products increased by 2pp compared to 2012.
The domestic market is an important market because of the strong position of Zakład Huta Aluminium Konin, which is the only Polish manufacturer of rolled products, and due to the high proportion of end customers, who are loyal customers and guarantee the stability of sales in the long term.
c) Market share
The rolled aluminium products market is estimated at around 20 million tons in the world and 4 million tons in Europe. The share of Huta Aluminium Konin in the global market is estimated at 0.4%, while the share of the European market at 2%. The actual share, through the products offered by Huta Aluminium Konin, is much higher, because the offer of Huta Aluminium Konin does not cover all types of rolled products available in the market.
On the markets in which Huta Aluminium Konin participates, there are different groups of competitors. They can be divided according to geographical location, scale of operations and technological level. Due to the geographical structure of sales, the main competitors are companies operating in Europe. The importance of other markets is marginal and is gaining importance in periods of favourable exchange rates.
The biggest manufacturers operating on the European market are:
- Global concerns: ALCOA, CONSTELLIUM, NOVELIS, ALERIS, GRÄNGES
They are the leaders in technology with a recognised brand. These companies have their own sources of raw materials and are characterised by the specialisation of production at individual plants. They offer a comprehensive range of rolled, extruded and cast aluminium products. In addition, their offer includes painted products, aluminium laminates and composites.
- Independent European companies: ALINVEST, IMPOL, ELVAL, ALCOMET, ALRO, TLM, AMAG and companies in Turkey: ASSAN, PMS, TEKNIK.
These companies represent a diversified technological level and, just like Huta Aluminium Konin, offer a wide mix of products within a single plant.
e) Raw materials and sources of supply
The basic raw materials used for manufacturing in the Aluminium Segment are aluminium ingots and blocks as well as aluminium scrap, which are imported (pure metal, alloys) or purchased domestically (scrap).
f) Key parameters for the Segment
- Amount of commercial premiums that have an impact on revenues and results
- Amount of aid for the main raw material (aluminium), level of scrap prices, which affect the amount of manufacturing costs