ALBA’S Continuous Improvement Programme and operational efficiency initiatives helped it report a strong Q1 performance despite a “significant impact” of the gas price increase which took effect at the beginning of the year, the company said.

The improvement and efficiency initiatives enabled it to maintain momentum despite the downward trend of aluminium prices, it said in a statement.

“Alba’s performance in the first quarter reflects, once again, a strong business model that has provided a key foundation for continued growth. A key reason for this success has been the teamwork shown by our skilful workforce and the inspiring leadership of the management on board,” said chairman Mahmood Hashim Al Kooheji.

Financial highlights of Q1 were sales of $496 million, Ebitda and net income at $115 million and $57 million respectively – impacted by lower London Metal Exchange (LME) levels and higher gas costs, a cash flow of $48 million despite the seasonal increase in inventory of raw materials, and recovery of value-added sales in Europe.

Shareholders and relevant regulatory authorities approved the 2011 dividend of $252 million. It was paid in two installments by March 2012.

Other highlights were a production increase of 2 per cent with sales remaining stable despite a slowdown in Europe. Additional recurrent savings were $5 million – on a par with the Q1 target versus $30 million target for 2012. Sales of value-added products recovered at 63 per cent of total shipments versus 52 per cent in Q4 2011. The company has a safety excellence programme in progress with four work streams launched in the first quarter.

Alba said world consumption was up by 1 per cent despite the slow start of January with China output levels growing at a fast pace with 15 per cent year on year. It noted that demand for aluminium was still healthy with Asian markets driven by consumption in India and China at 7 per cent and 4 per cent respectively. The European automotive segment remained relatively strong. Inventories at the London Metal Exchange recovered by 6 per cent in Q1 2012 as compared with Q4 2011.

According to Alba priorities, its Star programme will achieve additional cash savings of $30 million in 2012. It will rollout additional Six-Sigma projects during the year. It hopes to maintain a sustained focus on value added sales and to continue to implement Alba SafeWay works streams.

Alba has been consistently ranked as one of the largest aluminium smelters in the world, and is known for its technological strength, global competitiveness and innovative policies. It produces more than 860,000 tonnes per annum of aluminium which meet or exceed the industry standard for purity. Products include standard and T-ingots, extrusion billets, rolling slab, propertzi ingots and molten aluminium.  The company has maintained a strong track record of operational safety and environmental compliance.

NEW ERGO SEATS
Alba’s commitment to broaden safety measures while maintaining emphasis on generating increased productivity prompted the installation of new ergonomically designed seating arrangements at its carbon department.

The new ergo seats in Kiln 3 FTA-1 cranes will be utilised by crane operators while loading green anodes, discharging baked anodes, filling packing coke and doing other work.

The Alba Labour Union in its capacity as a liaison between workers and managements played a key role in presenting these complaints before concerned officials and in devising solutions that would promote general safety and increase employee productivity.

A kiln crane operator at Alba’s carbon department, Khalil Ebrahim Khalil, said: “The new seating arrangements at the Kiln 3 FTA-1 cranes have brought increased comfort in our day-to-day operations, and thereby enabled us to be more efficient in the way we accomplish our tasks.”

Alba Labour Union chairman Ali bin Ali commented: “We are proud of our role as a link between workers and management since it gives us the opportunity to actively promote the interests of our workers.   We appreciate the support and cooperation given by Alba’s management in bringing about a solution that has benefited our colleagues in the carbon department.”

Alba’s chief medical officer Dr Elham Al Eid said the ergonomically designed seats were not only comfortable but provided health benefits as well. Kiln crane operators were less likely to suffer from physical discomfort since the seats have been specially equipped to meet these concerns. “We believe this initiative is another step towards developing a healthy work environment for all of our employees,” Dr Al Eid said.

Alba’s chief executive Laurent Schmitt added: “We always remain committed in strengthening initiatives that enhance employee welfare, safety and morale. We appreciate the contribution made by the Alba Labour Union in highlighting concerns raised by the employees and being part of the committee that helped install the new ergonomically designed seating arrangements for the crane operators.”

The new ergo seats include height adjustment up to 200 mm as well as air and mechanical suspension, arm support and body fixation for greater ease and flexibility. Cameras have also been installed on the suction pipe to improve overall safety observation.