Company Strategy

The Strategy of Huta Cynku „Miasteczko Slaskie” S.A.

The most important event in 2012 was the finalisation by the State Treasury of the privatisation process for the ZGH “Boleslaw” S.A. Capital Group, which includes Huta Cynku “Miasteczko Slaskie” S.A. As a result, the Company began the year 2013 in a new ownership structure, being part of the Stalprodukt S.A. Capital Group, where Stalprodukt S.A. is listed on the Warsaw Stock Exchange and is a leading manufacturer and exporter of highly processed steel products.

Also, several other 2012 achievements should be mentioned with regard to the Company’s restructuring process in terms of organisation, production, technology, finances and assets.

The process of production technology optimisation was completed successfully, resulting in a significant reduction of coke consumption per ton of metal produced. The Company also commissioned an energy audit which showed further savings potential in respect of gas and electricity consumption. Related investments are now being carried out.

In addition, 2012 was the first full year in which the hedging strategy was in place for protection from falling prices of Zinc, Lead, Silver and adverse exchange rate fluctuations. Consequently, the economic results became more foreseeable and Huta is incomparably stronger to resist swirls in the financial markets.

The procedure for listing the SHG Zinc with the London Metal Exchange was completed on May 2, 2012 with the registered brand of HCM.SHG.99,995. Through the listing the LME officially confirmed the compliance of the SHG Zinc with the applicable quality requirements. By the same, HCM S.A. received a confirmation that the Zinc it manufactures meets the highest European and world-wide standards and therefore by all means it does not differ from products supplied by its competition in Europe and in the world.

The Management Board at Huta Cynku “Miasteczko Slaskie” S.A. intends to continue the Company Restructuring Programme, which is currently underway, via executing strategic tasks aimed at:

  • Improving the competitiveness in the market;
  • Reduction of exposure to the prices of energy carriers;
  • Efficient market risk management;
  • Continued restructuring of assets and organisation

For the years 2014 – 2016, a major investment is planned comprising the expansion of the Zinc Refinery in order to facilitate manufacturing Zinc entirely in the Special High Grade quality.

The basic objective of the investment is both to protect the environment through increased processing of waste materials, as well as to secure the sales of the total Zinc production in mid to long term in light of possible implementation of regulations at the EU level which would possibly ban the use of the GOB Zinc in brass manufacturing.

The estimated cost of the investment is PLN 60 million.

The consistent execution of adopted tasks resulted in Huta Cynku “Miasteczko Slaskie” becoming a reliable and foreseeable partner from the financial institutions’ and commercial partners’ viewpoint, which is particularly important in the times of the global recession and reduced confidence of market players. The Management Board at Huta will do their best to keep up the confidence in the upcoming years.

 

 

 

 

 

 

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