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Sustainability strategy

The company’s successful development and growth over recent years shows that commercial success and sustainability go hand in hand. AMAG pursues a growth strategy within an expanding market with its increasing specialisation based on a sustainable supply of input materials, relying on long-term customer relations, a stable ownership structure and qualified employees. The new rolling mill in Ranshofen is the most modern in the Western world. Over the past ten years, around one billion euros has been invested in AMAG’s corporate development and growth track.

 

In 2019, the “Al4future” strategy process was launched in order to identify upcoming challenges in time and in order to derive appropriate measures, taking into consideration the growth course the company has adopted. The strategy process has shown that AMAG is on the right track. AMAG thereby remains true to its basic orientation, concentrating on its strengths in the casting, rolling, heat Treatment and recycling of aluminium. The aim is to continue to grow, together with its customers, as a reliable premium supplier of special products. Enhancing the vertical depth of manufacture and internationalisation comprise the strategic action areas for minimising the risks arising from global trade policy developments.

 

According to current forecasts, demand for aluminium rolled products and primary aluminium will ilncrease continuously in the coming years. The automotive and aviation industries represent special growth drivers in this context. Demand for lightweight construction solutions to reduce energy consumptionand CO2 emissions is the main growth driver in the automotive sector. The aviation industry also relies on aluminium and expects a significant increase in passenger numbers over the next twenty years.

Aluminium offers material properties such as corrosion resistance and high strength at low weight – benefits that are in demand in this sector. Areas of relevance for AMAG such as food and pharmaceutical packaging, buildings (façades, lighting), electronics as well as sports and leisure equipment are also to be highlighted. Furthermore, growth in mechanical and plant engineering as well as in cooling and air-conditioning equipment is indirectly connected to such areas.

 

In addition to the focus on specialty products, the expansion of recycling expertise will continue to shape AMAG’s successful course in the future and will gain further significance for the company and its stakeholders. AMAG has been very well positioned in this area for many years. With a scrap utilisation rate of 75-80 %, AMAG is the largest aluminium recycler at a European location. The Expansion of the recycling centre as well as research & development work in the recycling area (key concept: “science of dirty alloys”) are essential factors in maintaining the high scrap utilisation rate.

Digitalisation and expertise building are important elements for meeting future challenges. In order to make targeted progress in this area, the main action areas were defined and summarised in Digitalisation Compass. AMAG is currently working through these action areas step by step.

 

In 2018, AMAG underwent a comprehensive review in accordance with the ASI Performance Standard (ASI = Aluminium Stewardship Initiative). AMAG was the first integrated recycling, foundry alloy and rolling mill site worldwide to confirm the highest sustainability standards at its Ranshofen site. For 2020, AMAG has set itself the goal of certification in accordance with the ASI Chain of Custody Standard (CoC). This certification forms the basis for the sale of so-called “ASI Aluminium”.

Aluminium which may be sold as ASI Aluminium guarantees environmentally compatible and socially acceptable production and processing throughout the entire process chain, from extraction of the raw material to the high-quality end product.

 

AMAG’s efforts in the energy sector earned the company a public award in 2019. With its “optimal energy use through heat recovery” project, AMAG won the Energy Globe 2019 award in the “Air” category. With 187 participating countries, the Energy Globe is the world’s most important environmental award.

 

The fact that sustainability is a continuous process is illustrated by the sustainability program, which links strategic goals with specific measures to continuously improve corporate performance.

 

 

 

Contribution to achieving Sustainable Development Goals (SDGs)

In September 2015, the United Nations General Assembly adopted Agenda 2030 for sustainable development as well as 17 global targets.

With these goals, the international community aims to promote global economic progress and social justice while respecting our planet’s ecological needs. The goals provide a general framework for companies to make a positive contribution to economic and social development. Each target has specific sub-goals to be achieved by 2030. Governments, business and civil society have a role to play in meeting development challenges.

AMAG is aware of its responsibility to minimise the negative effects of corporate activities and maximise the positive effects on the environment. The aluminium industry is expressly committed to pursuing SDGs. European Aluminium (EA), of which AMAG is a member, has, in the course of preparing the Sustainability Roadmap 2025, identified key SDGs and thematic areas where the aluminium sector either has a significant economic, ecological and social impact or exerts a crucial influence on its stakeholders’ assessments and decisions.

As part of the further development of its sustainability management, AMAG focusses on those SDGs that can be significantly influenced by corporate activities. The strategy of profitable and sustainable growth forms the foundation.