PL
Integrated
Report 2021

Outlook – our green trends

The world of the future

Imagine a place created to serve the humankind, to care for people’s health, comfort and development. Imagine cities which are fully self-sufficient with regard to energy, materials and water. Cities which are created and operate based on transparent principles of ethics, interpersonal relations and business. This is the world of the future. We can create it today. It is a vision we have been consequently implementing step by step for many years.

Green boom in aluminium industry

Transformation of the European economy towards zero emissions runs, among other things, through better and more effective use of materials, including aluminium, which is considered to be one of the most ecological materials in the world and the fastest developing as regards processing too, compared to other competitive materials, such as steel, plastics or wood. The metal, called a material of the future, has many advantages: it is not toxic, it is highly durable and fit for machining, and at the same time it is resistant to corrosion. It is also ideal for reuse – when recycled it does not lose its unique properties, which means it can be used practically endlessly. The strongest of trends observed recently in the European aluminium industry is the ‘green boom’. A perceivable change in the business model has been going on. Companies implement costly capital expenditure projects, which are focused not only on production capacity increase but also improvement of technology. Aluminium products manufacturers run projects to reduce aluminium impact on the environment, as far as possible.

Green building, car making and transport a chance to reduce CO2 emissions

LOW CARBON KETY aluminium profiles

Within the 2021-2025 development strategy of Grupa KĘTY S.A., next to business objectives, there have also been set out goals to support the global carbon dioxide emissions reduction and circular economy. We have been modernising the manufacturing process in order to lower the carbon footprint of our products. We possess engineering capacity to manufacture products cutting down CO2 emissions at the same time. Our customers may purchase aluminium profiles extruded from in-house produced LOW CARBON KETY billets. The total GHG emission for billets is 2.792 tCO2e/t. The low carbon footprint originates from high quantity of aluminium scrap used in the melting process. Thanks to that, the recycled aluminium carbon footprint stems from solely from its transport. To compare, the average carbon footprint of billets made of primary aluminium, where emissions cover also the stage of extraction and processing of aluminium ore, equals 6.7 tCO2e/t in Europe, and the world's average is 16.7 tCO2e/t. An independent verification of the carbon footprint of our billets has been conducted by BUREAU VERITAS. The analysis took into account the particular stages of the product life cycle (Cradle-to-Gate) as well as gross GHG emissions related to the purchase and processing of raw materials, their production and transport, as well as consumption of electric and thermal energy (all three Scopes).
According to the data of the European Commission buildings are responsible for about 40% of energy consumption and 36% of CO2 emissions in the EU countries. Currently, roughly 35% of buildings in the EU are over 50 years old and nearly 75% of buildings are not energy efficient. Therefore, ecological building and the growing number of the existing buildings refurbishments may potentially lead to significant energy savings, possibly reducing the total energy consumption in the EU by 5-6% and CO2 emissions by about 5%.

Aluprof S.A. – a well-known brand and one of the leading manufacturers of aluminum systems for construction in Europe, as well as the main innovator in this industry in Poland comes up to these expectations. The company portfolio includes individual architectural systems, and solutions for energy-saving and passive buildings. Aluminium systems are used in the most prestigious projects around the world, where environmental friendliness is confirmed by green building certificates, such as: BREEAM, LEED, DGNB, or Well.

Examples of such projects are: 61 Ninth Avenue in New Your, Hourglass in Amsterdam, De Krook in Gent, Hard Rock Hotel in Budapest, Mennica Legacy Tower and Hotel Nobu in Warsaw, as well as hundreds of other highest-class buildings scattered around the world.

Aluprof also holds the Cradle-to-Cradle certificate granted for innovative activities in the sector related to sustainable approach to production. The C2C idea assumes that all components of a product may be recycled and reused in a closed circuit.

Green building
in the Strategy
The engagement of Aluprof in the green building sector has been reflected in the development Strategy 2021-2025. The company has committed to promote green building in the world and declared the share of the company system solutions in buildings with BREAM or LEED certificate higher by 20% in 2025.

Innovative aluminium products for e-mobility

In a study commissioned by the European Aluminium’s Automotive & Transport Board, DuckerFrontier predicts that the quantity of aluminium semi-products used in cars manufactured in Europe will grow by about 10%, from the current 179 kg to nearly 200 kg in 2025. The use of extruded aluminium products will grow to the gross weight of about 33 kg per car. The same also refers to rolled aluminium products. In fact, the percentage increase in extruded products will be the largest. This may be a conservative estimate, since Ducker bases its calculations on the LMC Automotive analysis, and the latter covers only 28 EU countries, and excludes Turkey.

10
%
Assumed growth in the quantity of aluminium semi-products used in cars by 2025

The use of aluminium by the modern sectors of the present economy has been constantly growing. The front runner in that trend is the construction business adapting many modern architectural solutions (façade door, window and roller-shutter systems), which affects the energy efficiency of buildings. According to the data of the European Commission, buildings are responsible for about 40% of energy consumption and 36% of CO2 emissions in the EU countries.

Currently, roughly 35% of buildings in the EU are over 50 years old and nearly 75% of buildings are not energy efficient. Therefore, ecological building and the growing number of the existing buildings refurbishments may potentially lead to significant energy savings, possibly reducing the total energy consumption in the EU by 5-6% and CO2 emissions by about 5%.

Investments

Living up to the market expectations, Grupa Kęty has commenced the performance of a major capital project for 2022 covered by the Strategy 2021-2025, i.e. the construction of a new hall and installation of two extrusion lines with 20 NM and 40 MN presses, as well as increase of production capacity to 120,000 tons per year. The planned investments support mainly the sector of transport vehicles.

The planned investments support mainly the sector of transport vehicles. Grupa KĘTY S.A. is a leading manufacturer of profiles and components for the automotive and transport sectors. A new investment project fits also the concept of circular economy, combining the features of innovation and ecology. The project performance focuses particularly on the production of components representing an element of low-emission solutions in transport. Aluminium components have been replacing heavier steal parts, so as to arrive at a lower vehicle unladen weight while maintaining their durable structure, which has directly translated into the reduction of hazardous substances emissions to atmosphere.

Grupa KĘTY contributes to ‘green transport’ development in any form. It has been supplying aluminium profiles for passenger cars manufacturing, including the electric ones, as well as public transport means (buses, trains) and modern material transport vehicles (lightweight aluminium trailers, lorry superstructures). Moreover, the lifestyle and consumer habits change due to Covid-19 pandemic, including leisure time spending, has contributed to a major growth in the demand for profiles used in the manufacturing of bicycles and vehicle bike racks.