Report 2021

Supply chain

  • GRI: 102-9
  • GRI: 102-10
  • GRI: 204-1
  • GRI: 414-1
  • GRI: 103–1, 2, 3

Primary aluminium, aluminium scrap as well as semi-finished products based on aluminium (sheet aluminium and aluminium tape as well as billets made from aluminium and its alloys) are the basic raw materials used by the Capital Group. In the production of flexible packaging, the Group also uses various types of films and plastics granulates (polyethylene, polypropylene), printing paper, paints, adhesives and binders. The list of basic raw materials is supplemented with accessories and semi-products for the production of aluminium systems: fittings, weather strips, glazing, etc. Due to the necessity of maintaining high quality of production, the purchasing policy of the Group is based on cooperation with selected suppliers who guarantee proper standards. At the same time, diversification of suppliers has been assumed in order to secure supplies and maintain their competitiveness. Being aware of its impact on the environment, the Company has been trying, in the first place, to use the services of local or national suppliers. Unfortunately, due to the nature of the industry, it is possible only to a limited extent (aluminium scrap, paints, lacquers, thinners, granulate for plastic film production, and some accessories for systems production).

Owing to a major increase in the prices of materials, which are mostly imported, the share of domestically supplied materials dropped from 36% in 2020 to 30% in 2021. The suppliers from the other European countries represented about 65%, whereas roughly 5% were the supplies from other continents.

The basic criteria we follow when selecting suppliers are:
  • quality and stability of deliveries
  • price policy and payment terms;
  • standards of cooperation and customer service
  • approach to sustainable development aspects.

In 2021, we prepared a document entitled the ‘Code of Conduct for the Suppliers of the Grupa Kęty S.A. Capital Group’.

The code specifies the major requirements for the suppliers of the Capital Group of Grupa Kęty S.A. with regard to running ethical and fair activities, ensuring safe and hygienic working conditions, respecting human rights, assuming liability for the quality of products and for the natural environment.

In the document we refer to our commitments towards the suppliers but also our expectations from them. We have prepared an internal procedure to monitor the process of the document implementation and its communication to the suppliers.

We have also prepared a list of suppliers covered with the ‘Code of Conduct’ in each business segment of the Capital Group. In the Extruded Products Segment the covered suppliers generate 91% of turnover, in the Flexible Packaging Segment – 95%, and in the Aluminium Systems Segment – 95%, respectively.

In the 2021-2025 Strategy, we assumed that 100% of suppliers included in the list will be covered with the provisions of the ‘Code of Conduct’. The objective attainment in 2021, depending on the Segment, ranged from 18% to 84%, of which: the EPS – 50%, the FPS – 18%, and the ASS – 84%, which allows for a good assessment of the process. Further, we will face another stage of systematic control and improvement of common activities.

Worth emphasising is the fact of positive feedback from the market to such activities. Many suppliers praise the solutions and report their willingness to co-create major values.