PL
Integrated
Report 2021

Aluminium Systems Segment

In 2021, the Aluminium Systems Segment has increased its sales revenue to PLN 1,995 million (+24% y/y), including PLN 801 million from exports (+28% y/y). In the discussed period, sales volume increased by 15% y/y, of which aluminium systems by 18% y/y and roller-shutter systems by 11% y/y. Thus, the Segment strengthened its position of one of the aluminium systems sector leaders in Europe.

+24%
annual growth of sales revenue
+28%
annual growth of export sales

2019 2020 2021
Sales revenue (PLN million) 1,463 1,605 1,995
of which foreign sales 551  627 801
Revenue from the sales of  roller shutters and doors 444 527 637

Aluprof SA is one of the leaders in aluminium systems manufacturing for the construction business in the world, and also the main innovator in that sector of industry. Aluprof supplies aluminium systems for the production of windows, doors, façades and sun protection solutions, which apart from the high level of functionality and aesthetics comply with strict safety requirements and are characterised with fire-protection features. The company portfolio also includes individual architectural systems, and solutions for energy-saving and passive buildings. The share in the market of aluminium systems for the production of windows, doors and façades in Poland reaches 42%, and 60% as regards roller-shutter systems. Aluprof S.A. has 5 plants in Poland and 10 divisions in Europe and in the USA.
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Aluprof a member of international associations

Export markets and new products

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Year 2021 watched a fast pace of sales development on export markets. Currently, export sales account for 40% of the whole Segment revenue. Sales representation offices of ALUPROF in Europe and the USA have their individual development strategies, focusing on cooperation with local partners, among other things, which is to increase the company share in the particular markets.

Last year, the Segment enjoyed an increased demand for sun protection solutions, which may be explained, on the one hand, by the lockdown and shift of funds intended for travels to house refurbishment and, on the other hand, the growing customer’s awareness of and education in energy-saving and sustainable building issues. Extending the sun protection solutions offer, in the first quarter of 2021 Aluprof marketed external blinds and sun screens. These solutions will effectively protect interiors against excessive heating, simultaneously ensuring adequate optical comfort. Thanks to such solutions, Aluprof has been expecting higher market share.

Implementation of new products in its offer, as well as efforts to improve processes and solutions within the company, frequent audits and certifications also enable the Polish customers to expand to European markets. Cooperation with all market participants, particularly architects, results in mutual benefits, while investors obtain unique, functional and cutting-edge designs.

The global market of aluminium profiles will reach the value of 6 billion USD by the end of 2022. The average growth rate on that market is about 3%. Analysts emphasise that the sector of aluminium profiles is dispersed, and profiles manufacturers are both international corporations and many small companies that compete with each other. 20 largest companies in the sector held 37.13% share in the global revenue. The world leaders are Sapa Group and Schüco, as well as YKK AP, Alcoa, Alumil, Hueck, Aluprof, and Ponzio, among others. The competitors of Aluprof on the Polish market are: Yawal, Aluron, Aliplast, and Ponzio. Additionally, there are competitors in the sun protection systems sector serviced by Aluprof.

Market environment

In 2021 the Segment underwent a lot of sudden changes due to the pandemic and the challenges that had to be coped with, both as regards the care for the staff health, and overcoming the consequences of the pandemic. On the one hand, there was a particularly good economic situation in the building sector, reflected in the continuing demand, including the demand for aluminium products, and, on the other hand, there were problems with supplies of various materials, which resulted in their limited availability as well as uncertainty of deliveries, even as regards the ones that had been previously contracted, and dynamic growth of prices of aluminium and other materials, semi-products or products important in our production, such as granulates, separators, cartons, wood and steel.

At the peak moment (October 2021), the prices of aluminium were higher by over 100% compared to those at the beginning of the pandemic (April 2020). Owing to the situation that resulted from the increase of materials prices, including aluminium, Aluprof and other companies operating in the Segment in Poland and abroad were forced to announce as many as three price increases for their products.  Problems with the availability of components for windows production, elongated lead times and fast growing prices are the main challenges for the Polish companies in the window and door joinery sector in 2021. Otherwise than in 2020, the problem was not the lack of demand but the possibility to satisfy it. Even despite the growing prices customers did not resign from buying windows (which resulted from good economic situation and accumulated demand shifted from 2020).

Green building

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Year 2021 was the first one of the five-year Strategy for Aluprof implementation. The objective is not only further development and strengthening of position on the particular markets, but mainly even greater care for the environment and prevention of climate changes. One of the company goals by 2025 is to increase by 20% the share of Aluprof solutions in BREEAM or LEED certified buildings. The certificates are awarded to the cutting-edge buildings, which thanks to the applied solutions are model examples of green building. At the same time, the company wishes to reduce its carbon footprint by 15% and has already significantly limited emissions.

Aluprof S.A. has positively undergone the process of Cradle to Cradle™ certification on ‘Bronze’ level for the MB-SR50N HI+, MB-86 SI, MB-86 Casement, MB-86 ST, MB-70, MB-70HI, and MB-70 Casement systems. The Cradle to Cradle™ certificate is an established global standard for safer and more sustainable solutions created for the circular economy. Designers, manufacturers and brands around the world trust products with the Cradle to Cradle™ certificate, which is a breakthrough way of designing and manufacturing materials that have a positive impact on people and the planet. Cradle to Cradle™ is also considered to be a preferred standard of a product when making responsible purchasing decisions. The idea of Cradle to Cradle (C2C) means that all components of a product are fit for recycling.

Aluprof has been putting into practice the boldest architectural visions for many years and has been supplying tailored individual solutions for architecture and construction business. Many Aluprof system projects have obtained prestigious awards and certificates (including LEED and BREEAM), which are a measure of the modern architecture. The selected buildings are the real pearls of green architecture.

Perals of green architecture

Builings with BREEAM certificates

Builings with LEED certificates

Research and development projects

Responding to the market expectations, the Aluminium Systems Segment developed and prepared for implementation new products intended for system sales and dedicated to civil engineering, as well as developed and modernised the selected existing solutions. The main development projects included:

  • development and launch of distribution of an innovative system of internal frameless glass walls with single or double glazing and doors. The system is characterised with fast and easy prefabrication. A comprehensive research for such type of system has been completed;
  • production launch of frameless glass sliding balcony doors with manual or automatic control;
  • modernisation and development work for a series of window-and-door systems, to improve their utility characteristics, which includes significant thermal performance;
  • production implementation of new curtain wall systems, dedicated for example to prestigious buildings in the Silesian region and in the UK;
  • construction works for the integration of façade and window systems with roller-shutter systems and screens offered by the Segment;
  • implementation of a state-of-the-art structural solution which will greatly improve the load capacity of mullion-and-transom curtain walls. The solution is dedicated mainly to buildings where the selected façade elements require application of very large and heavy glazing.

Investments

Year 2021 showed visibly that after the period of dynamic commercial development there came time for developing production facilities. The company has been extending the plant in Bielsko-Biała as well as in Złotów. The latter will become a large production and warehouse facility for Aluprof. The extension of the plant in Opole is now ended successfully. The three locations with their new machines and equipment are going to ensure 60% additional production capacity compared to the current situation.

In 2021 the largest value investment project of the Segment was the completion of construction of a production and warehouse hall in Opole (manufacturing of external aluminium roller shutters) of the area of about 13,000 m2. The total value of expenditures on the hall construction in 2020 and 2021 amounted to roughly PLN 28 million. The other investment tasks comprise a series of projects of lower value, mainly related to the modernisation of warehouse infrastructure, purchase of machines (including a modern line for fire glass production), equipment and the essential means of transport.

Extruded Products Segment
Flexible Packaging Segment