1 397
NET SALES EUR IN MILLION
EBITDA VS 2022 +300%
300 000
400 TONS PRODUCTION CAPACITY
NUMBER OF EMPLOYEES
THE YEAR 2023 IN BRIEF
BUSINESS
BUSINESS
BUSINESS
• Increased market demand for Low-carbon Copper Products
• Group function on Metal Management added
• Treasury function implemented
• Electricity supply fully built on fossil-free or renewable sources
• Almost all internal transports in terms of forklift trucks are fully electric
With an annual production capacity of 300 000 tons, Elcowire is one of the largest manufacturers in Europe of copper wire rod, wires, stranded conductors, profiles and overhead catenary systems made from copper, copper alloys and aluminium. The profiles can be formed into virtually any shape and dimension.
CEO PAUL GUSTAVSSON
”ELCOWIRE DEVELOPS BOTH ITS STABILITY AND SUSTAINABILITY”
CEO Paul Gustavsson comments on 2023, the outlook for 2024, and on the strong ambition to make Elcowire an outstanding and sustainable partner for companies that are key to the ongoing energy transition and electrification in our society.
How would you summarize 2023 for Elcowire?
Despite certain challenges, Elcowire managed to reach its targets and made a strong 2023 that I am very satisfied with. The previous year 2022 was difficult in many aspects, and in fact 2023 had a tough start with a fire in Hettstedt that stopped production for 30 days.
However, we managed over the year to continue to stabilize our activities, and especially solutions for renewables, energy and infrastructure had a great year, while construction and automotive showed some decline during the second half of the year. In all, we showed that we are committed to continue growing with our customers, and to provide
sustainable solutions to society’s electrification, energy transition and sustainable transports.
There was another big challenge when your main cathode supplier had a large-scale fire accident? Yes, our main supplier of cathodes to Helsingborg disappeared overnight in June 2023 due to a fire which destroyed their plant
and we had to quickly find replacement. A demanding situation that we anyhow managed to solve to keep our operations and deliveries going – well done and thanks to everyone involved.
Elcowire is currently investing more than ever. What is it you want to achieve?
True, we are investing in capacity and efficiency to further support our strong positions, especially in the High Voltage, Rail and Specials areas. And for the same capacity reasons we have added manpower, in terms of increasing the production shifts, both in Helsingborg and in Hettstedt. Another improvement is the SAP system implementation we have made in Hettstedt, which will be followed by other system upgrades.
Are there more highlights from 2023?
I will get back to our sustainability efforts which we certainly developed during the year. We also strengthened our organization in several regards. One organizational area is within Governance and Finance, where it will help us integrate the acquired Hettstedt site even better. Furthermore, I’m sure our financial stakeholders will appreciate that a Treasury function has been added, for increased reliability in all our financial and currency transactions. We also added strong experience on the Metal Management side, to ensure supply chain stability and governance, as well as on the IT side, to make our whole setup more adapted to the bigger and even more international Group we are today.
Sustainability seems to be an important part of your business strategy?
Indeed. Sustainability is an increasingly important factor in our markets. Our Low-carbon Copper offering stands strong, and going forward we are adding a recycled copper dimension to it. We are in fact committed to increase our sales of Low-carbon Copper considerably in 2024, and to make recycled copper a visible part of that increase. This will help our customers reduce their carbon footprint even more on their journey toward Net Zero emissions. The market demand is there. There are signs of this from new customers as well as from many of our current customers, for instance from those serving the e-mobility segment.
Another part of our sustainability agenda is to support and give back to our local community and we have increased our support for both 2023 and 2024 in both Helsingborg and Hettstedt.
And how about your own carbon footprint from production?
We are reducing it step by step: electricity supply is now fully built on fossil-free or renewable sourcess, internal transports in terms of forklift trucks are also going toward fully electric. Our natural gas dependency is also being addressed, and technological solutions are being evaluated. In Helsingborg, we are closely considering both hydrogen and biogas solutions currently.
Another interesting development is that suppliers of lubricants and chemicals are starting to offer more low-carbon
CEO INTERVIEW WITH
or recycled solutions. We are of course looking closer at this too, to reduce our footprint and increase circularity.
So, what are your expectations for 2024 and the coming three years?
In my view, we have managed to build a great foundation for expanding the business and to further emphasize customer satisfaction and security in terms of capacity, reliable deliveries, and an attractive partnership for improved sustainability. I look forward to continue this work and to strengthening Elcowire in all vital dimensions in the period to come.
Our way to build strong positions in our business areas is progressing well, which is supported by our strategy and investment program.
After several years of transformation into a strong European supplier of sustainable copper solutions, the foundation in Elcowire has a strong culture based on our core values carried by our knowledgeable and competent employees. It is further enabled by good teamwork and communication on all levels.
COMPANY OVERVIEW
BU ROD
BU Rod has an annual production capacity of 300 000 tons of pure and silver, tin- and magnesium-alloyed copper wire rod.
BU Rod is one of the largest manufacturers in Europe with continuous cast and upcast in rod dimensions 8–30 mm.
BU HIGH VOLTAGE
BU High Voltage’s conductor materials are being used in cables for interconnections, offshore wind parks, underground power links and other applications.
BU High Voltage offers our extensive knowledge and products primarily to manufacturers of high voltage and extra high voltage cables.
BU RAIL
Our drawn wire products cover a diameter range between 4.6 mm and 0.05 mm. They are made from Elcowire continuous cast wire rod.
BU Wire & Strands manufactures our wires in compliance with European and international standards. BU WIRE & STRANDS
BU Rail serves the worldwide market for overhead conductor material, including catenary and contact wires, feeder, stitch, jumper and earthing wires.
Our products are suitable for all speeds of operation and support sustainability in railway design.
BU SPECIALS
BU Specials is a leading provider of drawn and extruded profiles used in various applications for energy transmission.
BU Specials is supporting customers in a variety of industries such as automotive, power distribution and medical equipment.
OUR HISTORY
OUR PRODUCTION SITES
HELSINGBORG, SWEDEN
We specialize in production of wire rod with high surface quality suitable for extruded products as well as enameled wires.
• Casting & Rolling
• Extrusion
• High voltage cable conductors
HETTSTEDT, GERMANY
We specialize in production of wire rod with high drawability suitable for special applications such as fine wire drawing.
• Casting & Rolling
• Single and multiple wires
• Stranded wires
We are also the specialists and have the complete processes for production of overhead contact lines
• Casting & Rolling
• Drawing and Stranding
• Contact wires
• Catenary wires
• Dropper wires
• Earthing wires
Our roots date back to the early 1200s as a mechanical workshop. In 1918, there was a new focus on electrical products and the manufacturing of motors and transformers, in particular. This included the addition of new manufacturing technologies.Together with our main customers and suppliers, we have built up a strong and consistent reputation for innovation. We call this the power of continuous improvement.
HELSINGBORG
1799 Count Eric Ruuth establishes a foundry in central Helsingborg
1800 First cast of iron
1920 Division of Elektromekano
1953 Independent company Elektrokoppar; 75% ASEA, 25% Ericsson
2007 Acquired by Liljedahl Group
2020 Production Isodraht in Mannheim transferred to Helsingborg and Hettstedt
HETTSTEDT
1800 Discovery of copper deposits in Hettstedt
1909 Establishment of factory to produce semifinished copper wire rod
1994 Privatization & foundation of MKM Mansfelder Kupfer und Messing
2009 Foundation of HFB into the NKT Group (Rail business)
2019 NKT’s rail business acquired by Elcowire Group to be operated as business unit: Elcowire Rail
2022 The wire business of KME Mansfeld (former MKM) acquired by Elcowire Group and doubled the rod capacity and a new business unit Wire & Strands were established
AT THE HEART OF ELCOWIRE’S MISSION AND BUSINESS ACTIVITIES
Elcowire’s sustainability efforts are focused on contributing to the agenda of the global society for the year 2030.
Since 2015, the most advanced framework to describe this agenda is the UN Sustainable Development Goals (SDGs). These goals, symbolized by 17 colorful icons, recognize that ending world poverty and other human challenges must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.
“The SDGs represent a shared commitment in society to sustainability,” says Elcowire’s CEO Paul Gustavsson. “For Elcowire, it is important to center our sustainability efforts around this global collaboration between the 193 member states of the UN.”
CLEAN ENERGY
While clean energy and electrification are clearly at the heart of Elcowire’s mission and business activities, this is just a start for what the company wants to achieve. Providing reliable energy and fighting global warming includes continuous reduction of the carbon footprint from Elcowire products and solutions, combined with improved energy efficiency and carbon footprint in the internal production processes as well as in the entire supply chain.
RESPONSIBLE MANAGEMENT
But the SDG-inspired agenda of Elcowire is much broader than that:
“The obvious energy and climate improvement profile of our company is what you see from the outside. However, internally, a responsible management of resources and a strong culture rooted in a safe and positive work environment for all employees are the strongest basic elements of our sustainability focus,” says Paul Gustavsson.
As one of the leading European suppliers of copper products, we are committed to sustainable copper sourcing. We are developing advanced technologies to provide outstanding energysaving products with maximum useful life to enable sustainable solutions.”
PAUL GUSTAVSSON, CEO
The UN Sustainability Development Goals from 2015 are 17 global objectives that together give a vision of what a sustainable society would look like in the year 2030. The objectives are based on underlying targets and indicators. The SDGs are valid for all parts of society, not only for companies.
SDG 4 Quality education
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Elcowire focus: Read more in ”People and Society” on page 30.
SDG 8 Decent work and economic growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Elcowire focus: Read more in the ”CEO interview” on page 4 and in ”Sustainable operations” on page 26.
SDG 9 Industry innovation and infrastructure
Build resilient infrastructure, promote sustainable industrialization and foster innovation.
Elcowire focus: Read more in each Business Unit’s description of ”The business unit today,” including solution and innovation focus, pages 10–19.
SDG 12 Responsible consumption and production
Ensure sustainable consumption and production patterns.
Elcowire focus: Read more about ”Sustainability performance” on page 32, Sustainable operations on page 26, and in each Business Unit’s description on the left hand side, including solution and innovation focus, pages 10–19.
SDG 13 Climate action
Promote sustainable development.
Elcowire focus: Read more about in ”Low-carbon Copper products” on page 10.
SDG 16 Peace, justice and strong institutions
Promote just, peaceful and inclusive societies.
Elcowire focus: Read more in ”People and Society” on page 30.
COPPER PRODUCTS LOW-CARBON Reviving resources: Copper scrap transformed into new possibilities.
LOWEST FOOTPRINT IN THE INDUSTRY
Elcowire proudly offers Low-carbon Copper products made from either Recycled or Low-carbon Copper, both categories significantly lowering CO 2 emissions. They will play an important role in the sustainability transition to achieve the goal of net-zero CO 2 emissions by 2050 set by the European Union.
Elcowire is committed to United Nations Sustainable Development, Goal 13: Climate Action as it is essential for addressing the interconnected challenges of climate change, promoting sustainable development, protecting ecosystems and biodiversity, advancing social equity, and safeguarding the health and prosperity of current and future generations.
LOW-CARBON COPPER PRODUCTS
LOW-CARBON COPPER ROD
In an era where environmental awareness is paramount, recycled copper stands out as a shining example of sustainable practices. At the same time, to meet evergrowing future market needs, recycled copper will not be available in large enough quantities, and primary copper will still remain crucial. However, it is extremely important that primary copper choice still has a low-carbon footprint!
Elcowire has the complete offering: Low-carbon Copper products from recycled as well as from primary copper, or from standard copper rod if this is what the customer prefers.
ENVIRONMENTAL IMPACT
Elcowire provides customers with the option of Low-carbon Copper products resulting in a copper wire rod with a minimal impact on the environment and climate. The choice of primary and recycled copper significantly reduces the need for extracting primary copper from mines, leading to a substantial decrease in energy consumption and greenhouse gas emissions.
RECYCLED COPPER ROD
One of the remarkable aspects of recycled copper is its energy efficiency. The recycling process consumes far less energy than the production of primary copper. As a result, the use of recycled copper not only conserves valuable resources but also helps lower carbon footprints, making it an outstanding environmentally responsible choice.
The only limitation is that there is not enough copper material to recycle to meet all tomorrow’s needs. Hence the need also for Low-carbon Copper!
LOW-CARBON COPPER ROD
We source our primary copper cathodes carefully and select suppliers based on their use of renewable energy sources, sustainable transports and cutting edge technology for energy effective smelting.
In our own production we are dedicated to a streamlined and sustainable production method with optimal quality and deliveries on time.
COMMITMENT TO SUSTAINABILITY
Low-carbon Copper – whether it is made from recycled or from primary copper – is more than just a metal; it represents a commitment to sustainability and to responsible resource management. By embracing both recycled and primary copper in our manufacturing
processes, Elcowire not only contributes to environmental preservation but also promotes a thriving and resilient global economy. It’s time to recognize the value of Low-carbon Copper products, and to champion its role in shaping a sustainable and greener tomorrow. The use of Low-carbon Copper products in various industries is a great way of accelerating sustainability goals across the value chain!
PROUD OF COOPERATIONS
During 2023 Elcowire both finalized and started deliveries to projects that involve some of the marketleaders in the energy transition. We are of course very proud of these projects and there are several more to come during 2024. See more on page 39
Aluminium Rod global
Elcowire Lowcarbon Copper Rod (b)
Elcowire Standard Copper Rod (b)
Elcowire Copper products benchmarked against global average and aluminium regarding CO2 emissions (kg CO2/kg copper)
Elcowire Recycled Copper Rod (b)
BUSINESS UNIT ROD
FREDRIK ADLERCREUTZ HEAD OF BUSINESS UNIT ROD
”Stability, sustainability and profitability are our guiding stars”
Elcowire Rod’s business is focused on delivering rod for electrical purposes. Elcowire is one of the largest rod producers in Europe, which has been further accentuated with the Elcowire acquisition of the Hettstedt operations in Germany from 2022. Wire rod can be further processed into drawn or stranded wires or extruded into various shapes and sizes.
Customers include leading cable producers serving automotive, construction, installation, and power transmission markets. A sizable part of its production goes to other business units within Elcowire and the Liljedahl Group.
THE YEAR IN BRIEF AND OUTLOOK
The year 2023 was the first full year including the operations in Hettstedt, Germany, acquired by Elcowire in March 2022. Unfortunately, the year was troubled by a fire onsite in January, and another stoppage by the end of the year. These incidents affected volumes for BU Elcowire Rod and the projected targets for the year.
The underlying demand, however, was good for the beginning of the year, with a slight weakening during the second half-year. “Some of this was due to the construction and building sector and its dependency on interest rates,” says BU Head Fredrik Adlercreutz. “I am sure that this accumulated construction demand will be released as soon as the interest rates start to stabilize and go down,” he adds.
Although for Elcowire, high-voltage solutions are at the forefront of the ongoing electrification and green energy transition in society, Elcowire Rod also benefits from the current shift in many ways. “There are other cable needs in several parts of the electrici -
ROD, STANDARD 8 MM ROD, ABOVE 8 MM OXYGEN FREE COPPER
216 000
ty grid, land cables leading to transformer stations is just one example. The whole EV market with its changing infrastructure in terms of charging stations is another example.”
MARKETS AND STRATEGY
Given its customer structure, BU Rod has a strong vision for its strategy that can be summarized in three words, all of them ending with an y. “Stability, sustainability and profitability are our guiding stars,” Fredrik Adlercreutz says.
Stability is about strengthening customer focus and responsibility in the organization to always be able to deliver in time and with the right quality. Sustainability is not only about the environmental and similar aspects, but also about sustainable customer relationships. Profitability is of course about always having a firm grip of the vital business factors. All over, Elcowire has managed volatile costs towards customers with variable and transparent mechanisms.
SUSTAINABILITY
For Elcowire Rod with the least diversified products within the
ROD FOR SUSTAINABILITY
Group, low-carbon and recycled copper has been another step toward diversification.
“Sustainability adds value to the products. The past year has included deliveries to prestigious projects such as Dogger Bank C, and also started for Hornsea 3.
“In Elcowire Rod, we aim to double the sold volumes of sustainable copper in 2024 compared to the previous year,” Fredrik says.
“We have a strength to deliver both recycled and primary copper as low carbon options,” he continues. “There is not enough recycled copper in the world to meet the strong demand we see in the coming years, so there simply has to be a virgin low-carbon alternative available for the customers.”
He also highlights other parts of Elcowire’s sustainability work. “We need to run our production as efficient as we can, minimizing resource waste and spillage, reducing the use of natural gas to lower costs as well. And for transportation, diesel can be substituted, which is entirely possible.”
Elcowire’s ”Low-carbon Copper” or “Recycled copper” rod products have been produced using copper cathodes enabling a significant reduction of CO2 emissions – more than 50 percent per kg, see pages 10-11 for more facts. Copper will play an important role in the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU.
BUSINESS UNIT WIRE & STRANDS
”Stability, sustainability and profitability are our guiding stars”
FREDRIK ADLERCREUTZ HEAD OF BUSINESS UNIT ROD
”Preparing for the future”
THE BUSINESS UNIT TODAY
Elcowire Wire & Strands offers a large spectrum of wire products, ranging from single wire (diameter between 0.30 and 4.6 mm) to multiwire (starting at a diameter of 0.05 mm) and variants where wire is grouped or twisted into bunches and strands, adding flexibility to the final cable product. The products are used for special applications within the electrical and automotive industries as well as for telecom, installations, and industrial applications.
Elcowire Rod’s business is focused on delivering rod for electrical current purposes. The BU is one of the largest rod producers in Europe, which has been further accentuated with the Elcowire acquisition of the Hettstedt North operations in Germany from 2022. Wire rod can be further processed into drawn or stranded wires or extruded into rectangular wires and profiles.
Typical areas of use include earthing, power engineering, heavy current engineering, solar & wind power, offshore and submarine cables, automotive/rail/aviation/ space cables and packaging industry (copper welding wire).
Customers include leading cable producers serving automotive, construction, installation, and power transmission markets. A sizable part of its production goes to other business units within Elcowire and the Liljedahl Group.
CHRISTOPH BUSCH, HEAD OF BUSINESS UNIT WIRE & STRANDS
SINGLE & MULTIPLE WIRES, BUNCHES AND STRANDS
DELIVERED TONS
THE YEAR IN BRIEF AND OUTLOOK
Elcowire Wire & Strands had a rough start of 2023 due to unplanned production stops in Hettstedt. Over the year, the BU also noticed uneven demand among its main customers, especially within automotive in Europe. “The situation demanded high flexibility from our operations, and this will most probably continue,” says Christoph Busch, BU Head, referring also to logistic and financial challenges in the past year stemming from the ongoing wars and conflicts in Ukraine and the Middle East, as well as logistics ruptures in the Red Sea area. “The year for Wire & Strands was saved by a good orderbook and deliveries of flexible products which was well managed by increasing the capacity in Hettstedt operations,” says Christoph.
For the near future, everyone
still needs to take the instable political situation in certain geographies into account. But over a longer period, Christoph foresees a strong demand based on the ongoing green transition in society. “Life becomes electrical and digital in all areas, and the share of copper everywhere gets higher, such as in solar applications and charging of vehicles” he says. “We also see electricity production becoming more local, and this will require even more copper cables to transport it to where the consumption takes place.”
MARKETS AND STRATEGY
With a customer base in the Nordics for the Helsingborg operations, and with the core being in Germany, Switzerland and Eastern Europe for the Hettstedt operations, Elcowire Wire & Strands sees a very positive future for its flexible products in particular. This
has led to a rationalisation of our product portfolio in 2023 discontinuing wire products with no profitability and without positive outlook to grow in future. This process opens new opportunities for us shifting our focus to the flexible products needed by our customers and this will be the driver of our strategic development in the coming years,” says Christoph Busch.
SUSTAINABILITY
Looking back, Elcowire Wire & Strands’ customers have had a somewhat slower start of their demand for Low-carbon and Recycled Copper products than for example the other Business Units. However, the situation is now changing. Christoph Busch comments: “Elcowire is prepared, better than our competitors, now also with wire & strands products. Looking forward I am very optimistic.”
SUSTAINABLE ENERGY GENERATION
Elcowire plays an important role to satisfy the market demand, mainly with our tin coated wires or solar- and charging cable applications, to generate and transfer energy more efficiently and sustainably in order to reach global CO2 targets. ”
BUSINESS UNIT RAIL
JAN SIEBERT, HEAD OF BUSINESS UNIT RAIL
”Sustainability is our motivation”
Elcowire Rail develops and produces products for contact lines of electrically powered rail and road bound transportation systems. With its product range, Elcowire Rail covers catenary wires, contact wires, dropper wires and earthing wires consisting of standard materials based on Cu, CuAg, CuSn and CuMg. On top, Elcowire Rail offers innovative and customized solutions to support its customers in achieving their sustainability and efficiency goals. Elcowire Rail also offers a wide range of product-related services, such as technical consulting, training materials, calculations, on-site measurements, recommendations, material selection and installation attendance.
CONTACT WIRE STRANDED CONDUCTORS
8 000
DELIVERED TONS
THE YEAR IN BRIEF AND OUTLOOK
For Elcowire Rail, 2023 was a good year in terms of profit and quantity of products sold, maintaining Elcowire’s market position as a strong innovative supplier of products for overhead contact line systems for electric rail traffic, and increasingly also for the growing area of electrically powered road traffic. Elcowire Rail’s contact wires, catenary wires, dropper wires and earthing wires are in commercial service around the world, supporting customers to achieve performance, availability, and sustainability targets in public and freight transportation. With politicians around the world prioritizing passenger and freight transport on electrified rail and road transports, Elcowire Rail’s market potential is very high now and for the years to come.
MARKETS AND STRATEGY
With a base market of highvalue customers in Europe, corresponding to about 80 percent of sales, Elcowire Rail is firmly set to contribute to a more sustainable environment by offering its groundbreaking
alloy solutions, such as Valthermo for increased temperatures and extended product life, Valcond for application in high-speed train systems for increased mechanical strength. Valflex is a third alloy solution with increased fatigue resistance for dropper wires.
Elcowire Rail provides solutions for long-distance as well as urban and intercity systems. Among the main customers are the main rail operators in Europe as well as overseas.
“We bring strong innovation in what is often a conservative market leaning on historically proven and partially inherited solutions,” says Jan Siebert, BU Head. “However, our customers do perceive Elcowire Rail as innovative system experts capable of understanding the customer’s situation. We can design innovative solutions based on any current customer systems setup, and we are ready for all types of standards – the European existing ones and the newer international IEC standards.”
SUSTAINABILITY
Electrification of rail systems in general as well as road
transportation is a safe way to reduce energy consumption and CO 2 emissions depending on energy mix. Regarding Elcowire Rail’s products, some of their strongest properties lie in exactly that. Over the life span of an overhead contact line system – 70 to 90 years – they not only start out on a lower level of energy use and emissions compared to competing solutions. Over time, they also prove to require less maintenance and thereby use less energy and generate lower emissions. Using the sustainable Elcowire contact line products may avoid several wear related replacements during the system life time.
“One key effect in today’s best solutions is to reduce energy losses in the system, bringing greater efficiency and financial savings to the system owners. We will continue to innovate to support our global customers on the common journey towards greener transportation and the transition to achieve net zero emissions by 2050 set by the EU,” says Jan Siebert.
ELECTRIFIED RAILWAY FOR SUSTAINABILITY
ROD FOR SUSTAINABILITY
Elcowire’s ”Low-carbon Copper” or “Recycled copper” rod products have been produced using copper cathodes enabling a significant reduction of CO2 emissions – more than 50 percent per kg, see pages 8-9 for more facts. Copper will play an important role in the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU.
Elcowire’s overhead contact line solutions are part of tomorrow’s sustainable rail traffic. They have the potential to significantly contribute to reaching ambitious climate targets. By selecting the right alloy and product performance – electric and mechanical – rail operators are getting prepared for the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the EU.
BUSINESS UNIT HIGH VOLTAGE
”Following the large cable producers in their footsteps”
Elcowire High Voltage’s conductor materials are used for advanced cables in interconnections, offshore wind parks, underground powerlinks and other applications.
Elcowire High Voltage counts leading cable manufacturers as customers, building on its long experience of conductor materials for high-voltage applications in various shapes and sizes. In close collaboration with the customer, Elcowire High Voltage produces conductor solutions depending on external requirements, customer specification and installation environment.
MIKAEL JOHANSSON HEAD OF BUSINESS UNIT HIGH VOLTAGE
COPPER CABLE CONDUCTORS
ALUMINIUM
CABLE CONDUCTORS
THE YEAR IN BRIEF AND OUTLOOK
Elcowire High Voltage reached an all-time high in 2023, more than doubling its output volume compared to the year before. The large European cable producers being its core customers (for profiles used in large high-voltage transmission cables) have been extremely busy, including numerous sea-cable projects during the year, and this situation will most certainly prevail since the green energy transition in EU is ongoing at full throttle. Large infrastructural projects of this kind are ongoing or in the planning pipeline in many countries.
“The established large-cable players are expanding, almost all of them adding new production capacity for the years to come.” says Mikael Johansson, BU Head.
MARKETS AND STRATEGY
The main strategy for Elcowire High Voltage is to follow their large cable producers in their development footsteps and to grow together with them. As a consequence of the positive market situation, and to maintain our strong position, Elcowire is also making significant investments in additional capacity, operational already from Q3 2024. The fact that we have the full control of the production process, from raw material to finished product, is another important aspect of our business and competitive edge,” says Mikael Johansson, BU Head.
“We keep very close relationships with our customers. Be it dimensions, material quality, resistivity or other key properties, we are there to capture those needs and
develop our solutions accordingly, says Mikael Johansson.
SUSTAINABILITY
“Our customers ever-rising requirements when it comes to sustainable copper solutions is a moving target,” Mikael says.
“The carbon footprint per kg which was the previous norm is no longer sufficient and to remain competitive Elcowire continue its path to further reduce the CO 2 footprint in our complete value chain. A recent and very positive addition to our offering is the use of recycled copper,” says Mikael Johansson.
SUSTAINABLE ENERGY GENERATION
Elcowire plays an important role to satisfy the market demand to generate and transfer energy more efficiently and sustainably, to reach global CO2 targets.
BUSINESS UNIT SPECIALS
”Serving demanding customers with customized solutions”
Elcowire Specials develops and delivers extruded and drawn profiles in various shapes and sizes. They are often made to customer requirements for use in energy transmission applications within primarily the automotive, health & medical, and energy industries.
The product offering comprises a standard set of products as well as custom-made designs, dimensions, and materials.
MIKAEL JOHANSSON HEAD OF BUSINESS UNIT SPECIALS
WIRE, ALLOYS, PROFILES
THE YEAR IN BRIEF AND OUTLOOK
Elcowire Specials is the most recent business unit in the Group, still exploring and further defining its market boundaries. The year 2023 marks another year of development and a pilot study with the intention of reaching an IATF certification in the next few years has been established, which means that the automotive industry is now officially a core market segment for the BU. Performance-wise, machine ruptures prevented Elcowire Specials from reaching its targets for the year 2023, but the prospects for the years to come still seem very promising. In particular, given the ongoing electrification and green transition of the industries addressed and served by Elcowire Specials.
MARKETS AND STRATEGY
With a focus on customized profile solutions for demanding customers, Elcowire Specials
home market so far is Europe, with the US as another potential market. “Our proximity to the customer and our ability to turn their needs into innovative solutions is our BU’s greatest advantage,” says Mikael Johansson, BU Head. “Elcowire Specials can serve customers with unique conform shapes using own machines as well as own casted prematerial and tooling. This allows us to have full control of the production process, from raw materials to finished products, including machine and tool design.”
The automotive market is as a rule very demanding in terms of customer requirements, but on the other hand a supplier fulfilling such requirements in all aspects can expect a and long-term relationship. So, the secret of continued success for Elcowire Specials is to be adaptable and continuously improve the capabilities needed to manage the customers’ current and future needs.
SUSTAINABILITY
The CO 2 footprint is a key factor in any customer relationship going forward and very visible in both automotive and health & medical. Adding recycled copper solutions to the Low-carbon Copper offering will be very important for the future, says Mikael Johansson.
“As more and more customers are requesting Low-carbon Copper and/or Recycled Copper content the competition for these materials will increase. In such environment Elcowire is consistently and deliberately engaged in the complete supply chain in order to maintain our position as the most sustainable copper partner for our customers. This includes long lasting relationships with all our stakeholders – suppliers, employees, customers, owners, and other business partners,” says Mikael Johansson.
RENEWABLE ENERGY SYSTEMS
We are supporting our customers to build up renewable energy transmission systems. Given the green transition and ongoing electrification of many industries the business unit has an interesting growth plan going forward.
FRONT RUNNERS
Elcowire meets the soaring demand for copper through recycling and primary sources together with the best in class.
In an era where environmental sustainability is a top priority, the demand for copper is skyrocketing, driven by its essential role in industries such as electronics, construction, and renewable energy, as well as for sustainable transports.
As the world seeks to balance this surging demand with environmental responsibility, front runners in both recycled and virgin copper products are playing a crucial role in shaping the future of the industry.
RECYCLED COPPER
Recycled copper offers a sustainable solution by reducing the need for extensive mining and minimizing environmental impact. The process of recycling copper consumes significantly
less energy compared to extracting it from raw ores, contributing to lower carbon emissions and conserving valuable resources. Embracing recycled copper supports the circular economy, fostering a more sustainable and responsible approach to resource management.
PRIMARY COPPER
On the other hand, primary copper will still remain essential, due to the total need of copper in the near future. Striking a balance between recycled and primary copper ensures a more efficient use of resources while meeting the diverse needs of evolving technologies.
In conclusion, the symbiotic relationship between recycled and primary copper positions
them as key players in a future where sustainable practices and resource efficiency are paramount. Balancing environmental responsibility with technological advancements, the utilization of both forms of copper will be instrumental in creating a more resilient and eco-friendly industrial landscape throughout the entire electrification grid.
PROUD OF COOPERATIONS
During 2023 Elcowire both finalized and started deliveries to projects that involve some of the marketleaders in the energy transition. We are of course very proud of these projects and there are several more to come during 2024.
NKT:
”Reduced footprint with more than 23 000 tons of CO 2 ”
SIEMENS ENERGY/ASTA:
”The market calls for circularity, such as in recycled copper”
DONCASTER CABLES:
”Significant way towards society’s goal of zero emissions by 2050”
During 2023 Elcowire finalized deliveries of Low-carbon Copper to NKT for the world’s largest windfarm: Dogger Bank C. Deliveries to this offshore windfarm park reduced the footprint with more than 23 000 tons of CO2
Soaring demand for recycled copper became very obvious during 2023 together with a very clear vision for circularity. The cooperation between Siemens Energy/ Asta and Elcowire is based on the philosophy: ”Partnership of the best in class pioneering sustainability”.
The reduced CO2 emissions, in the Low-carbon Copper from Elcowire, is used for the entire charging cable EV Ultra®, and will help to electrify Britain.
SOURCING RESPONSIBLE
The Aitik copper mine is a large open-pit mine located near Gällivare in northern Sweden. It is one of Europe’s largest copper mines. Known for its significant production capacity and modern mining techniques.
DEPENDABLE SUPPLIES
METAL MANAGEMENT AND SUSTAINABILITY IN THE SUPPLY CHAIN
STEPHAN HANEL, HEAD OF METAL MANAGEMENT
Stephan Hanel has joined the Elcowire team as Head of Metal Management with the overall responsibility for the entire procurement process and financial hedging of copper and other metals. For Stephan and Elcowire, carbon footprint and other sustainability matters will be highly important considerations in such procurement decisions.
Stephan has held top positions in non-ferrous metals industries.
“During my many years of experience in the metal trading world, I have created a broad view on international markets that Elcowire will benefit from,” Stephan says.
One of Stephan Hanel’s priorities will be to see to that there is a unification and integration of metal procurement processes, including price activities such as hedging between the Hettstedt sites and Helsingborg.
It is of course important to ensure that Elcowire with its 300 000 tons of copper production capacity annually will have a dependable supply of copper in a world where a foreseeable copper shortage is a fact. “Even more so for Helsingborg, that has been relying heavily on one supplier,” Stephan says.
As the year 2023 has brought many new suppliers into the picture, Elcowire will need to further qualify these suppliers of copper cathodes via personal visits
and audits. This enlarged sustainability agenda for the supply chain will be combined with supplier quality audits.
“We have many such visits or audits in the planning pipeline,” Stephan says. “They are part of the new forthcoming review procedures where we will make sure that all our major suppliers fulfil our ambitions with regard to their carbon footprint as well as live up to our code of conduct requirements, which includes that they have no issues around working conditions, indigenous people, unjust wages or other social conditions,” he continues.
“While we already do know that there are positive investments being made some of our new suppliers, for example in the areas of water use, and that some of them have elaborate sustainability reporting, it is of course important to go and visit them to look at current mining processes and other conditions with your own eyes.”
In summary, with the arrival of Stephan Hanel, Elcowire will be able to strengthen its management of metal procurement as well as the governance of supply chain sustainability considerably in the coming years.
SUSTAINABLE OPERATIONS
Improvements in Helsingborg and Hettstedt operations
Johan Skyllerstedt, Helsingborg, and Carsten Hohmann, Hettstedt, speak about the current operational improvements and objectives at Elcowire’s Helsingborg and Hettstedt sites, and how the year 2023 was demanding in many ways.
IMPROVEMENTS AND CHANGES IN HETTSTEDT.
The beginning of 2023 was heavy, as Hettstedt operations suffered from a transformation station breakdown with the consequence of 30 days production stop in the Rod mill. To help save the situation, some of the Hettstedt customers were supported from Elcowire’s Helsingborg site in Sweden instead. Johan Skyllerstedt, the recently appointed site manager in Helsingborg at the end of the year, see a strength In having the possibility to back up each other and having a redundancy In the Group.
“Considering these tough circumstances, our 2023 business per-
formance at both of the Hettstedt sites, especially from Elcowire Rail, was really good. We managed to hold up production on high level and could even use synergies in specific capacities within Hettstedt site to support in case of bottlenecks” says Carsten Hohmann, Site manager in Hettstedt.
In Hettstedt during the year, improvements were made in terms of a range-out of old machines in the Wire & Strands area. The benefits, especially in energy consumption as well as other media supplies which lead to a reduction in CO2 footprint as well as waste reduction, could be seen fast as the old machinery was absolutely not efficient by today’s standard.
Also, a comprehensive SAP IT system was also implemented in 2023, although it had caused extra work in the short-term, but aligned the site, with three main production lines, into one System environment which will bring a long term benefit,
such as capacity checks over the whole site & therefore unproblematic switch of production to another line, independent of the entity. Also the metal flow can now be managed from one central department. Finally, it follows the overall IT Roadmap of Elcowire Group and enables us to develop systems further and move everything into one environment.
Following the regulatory framework of EU’s Green Deal, Hettstedt will for 2024 need to report thoroughly on basic use of resources such as energy and water, but also on other environmental impacts and, of course, CO2 emissions. “Germany is one year ahead of many other EU countries with this mandatory reporting framework, which includes detailed planning data for how we aim to reduce e.g. the carbon footprint and the consumption of specific media of our operations,” “A first step is an investment into closed-loop -cooling facilities for Hettstedt to reduce our water consumption by a
CARSTEN HOHMANN, SITE MANAGER, HETTSTEDT
certain amount.” says Carsten. We are currently working on a strategic realignment of the whole site in Hettstedt and the planning for next years is ongoing, with clear focus to transform and upgrade the whole facility into a future proof plant.
IMPROVEMENTS AND CHANGES IN HELSINGBORG.
The business year 2023 held further challenges for Elcowire operations. In June, Helsingborg’s main supplier of copper cathodes suffered from a fire. This required the site to appoint a great number of new suppliers and have them commence deliveries right away.
In his first months with Elcowire, the new Site manager Johan Skyllerstedt thus dealt with a changed supply chain situation. This meant that rather than by the regular morning train, many incoming transports
were instead coming by truck.
“We needed to further strengthen 5S principles in the production and out in our yard,” he says. Johan has been mapping current practices to improve the daily organization and reach the objective of a further standardized, clean and uncluttered workspace. To accomplish this, Johan practices what is called “Gemba walks” in the hotspots of the site with the responsible daily leaders, to get a grip of things to improve.
One strong focus has been on improving machine effectiveness, and Helsingborg has recently finished a Black Belt (Six Sigma) project at the rod mill to increase the OEE (Overall Equipment Effectiveness = the ratio of time that machines produce parts without defects), important since the volumes of profiles produced are constantly increasing at the facility to meet customer needs, and also with a direct impact on sustainability performance.
In 2024, three more conform lines will be installed to increase profile capacity, and a project to plan the optimal layout has been performed. The new lines will be run without adding more personnel.
On the energy side, pre-studies have begun to find alternative solutions for natural gas, such as hydrogen and gasification of biomass. Another related energy project is installation of gas sensors to measure and control gas consumption.
To get better control of the waste situation, a more efficient and more sustainable waste management
collaboration with Stena Metall has been started. Another waste initiative aims to reduce emulsions being sent to waste treatment. To improve circularity, investigations have also started on recycling of process scrap from customers.
Regarding local organization, the year 2023 brought further changes to Helsingborg in production management, middle management, quality
management, and in HR as well as maintenance. “In our pulse meetings we have focused on raising everyone’s sense of urgency, and to find root causes of non-compliances. But what we need right now,” says Johan, “is a little bit of rest to really get the teams going.”
JOHAN SKYLLERSTEDT, SITE MANAGER, HELSINGBORG
ANIKA HÜTTNER, PRODUCTION MANAGER RAIL, HETTSTEDT
EMBRACING OUR PROMISES
We are commited to accountability and integrity. It underscores the importance of fulfilling our obligations and pledges, fostering trust and growth within our organization. By embracing our promises, we strengthen professional relationships, build a culture of reliability, and contribute to the success of our customers, employees and stakeholders. It's our corporate nature that encourages trust and emphasizes the positive impact of keeping our word in the business world.
V ISION
Together with all our stakeholders, our employees, our custom ers, our suppliers, our owner and our partners, Elcowire wants to contribute to a sustainable society which is based on our history, know-how and passion.
MISSION
One of the leading suppliers in Europe of products and services based on wire rod for the electrical and infrastructure industry with copper and aluminium solutions. By challenging ourselves and continuously improving our processes, we provide solutions for a sustainable world.
VALUES
RESPONSIBILITY. We build on a nd nurture long-term relationships and we act responsibly towards customers, co-workers, partners, our owner and society.
RESPECT. We listen to and show consideration for one another. We recognize each other’s differences.
TRUST. We are committed and dedicated to fulfilling our promises. We act in a trustworthy and reliable manner.
PASSION. Our customers’ success is our passion. It is our priority to meet the needs and challenges of our customers.
PEOPLE & SOCIETY
Building a People culture for the future
How does Elcowire work to create a good and sustainable people culture in the Group?
Lisa Mattsson and Melissa Kommas are the Human Resources responsibles in Helsingborg and Hettstedt respectively.
Lisa Mattsson has been with the company since 2022 and was appointed HR manager at the Helsingborg site in 2023. How does she feel the work to develop a good and sustainable people culture in
Elcowire is progressing?
“In Helsingborg, we have a HRM system in place to manage all performance reviews. This is of course a good start for building a good people culture, to be able to gather and analyze information about for example employee performance and personal development needs,” Lisa says. Regarding basic people objectives such as absenteeism, diversity and people development, work is ongoing: “As a start to re -
duce absenteeism we have focused on trying to address long-term or repeated short-term sick leaves, to start dialog with individuals and see if we can adapt or change their work, or if there are other solutions,” says Lisa. The positive result of these efforts is that the average absenteeism in Helsingborg has been lowered for 2023, and this work will continue.
RESOURCES HUMAN
DIVERSITY AND EMPLOYER BRANDING
Diversity is an area that is often divided into gender, age, and ethnicity categories. For us, people count! As for most industrial companies, Elcowire would like to see a more even gender distribution. One internal target that has been set, Lisa says, is to try and grow the ratio, both in general, as well as in managerial position and in the management team.
Of course there are challenges when it comes to growing the ratio of women working in the production, as women tend to have greater responsibility for family matters, and therefore harder to accommodate to shiftwork, but we try to visibilise women in all different positions in the company to show that it is possible.
For age diversity, Lisa sees that there is a clear need for recruiting young people going forward since Elcowire will have a relatively large proportion of its professionals heading for retirement in the coming years. “Last year, we participated in job fairs in the south of Sweden, such as at Lund’s Faculty of Engineering, which has generated positive interest in young engineers working for our company,” she comments.
With ethnicity, work has only
started. “However, our aim is to always have the best candidates for any position, regardless of background,” says Lisa.
IMPROVING HETTSTEDT PEOPLE INFRASTRUCTURE
Melissa Kommas, who is Head of HR in Hettstedt, Germany, for the Elcowire companies on the sites, says that she is happy that Hettstedt had a time recording system implemented in 2023 in one site, with the same type of system planned for implementation in the other site in 2025.
Just like in Helsingborg, absenteeism has been in focus in 2023 in Hettstedt. The local Health Committee have analyzed and worked with long-term absence to bring down illness/sick leave rates. The outcome so far has been positive, absence rates going from over double digit the year before to below single digit for 2023.
Another improvement is that an apprentice program has been started, with 2 apprentices in Hettstedt in its first year 2023, and 4 apprentices planned for 2024. This program is about 16-year old students being vocationally trained internally, with experienced internal mentors in place. “In 2024, we will expand into Hettstedt and the area of Machine Technology. We are currently looking internally for the last mentor we need,” Melissa says.
Other structure improvements now in place is a system for travel expenses that works well according to Melissa, as well as a system for company cars and driver’s licence check-ups that is now fully digitized.
A performance review IT system and a digital recruitment process are both high on Melissa’s wishlist, as she is obviously keen on getting rid of the paperwork connected to old processes. “We are still building a basic people infrastructure step
by step, and look forward to further improvements,” she comments.
COMMUNITY INVOLVEMENT
Local sponsoring is our way to show commitment and contribute to a sustainable community. In Hettstedt, both the local football and swimming clubs are supported by Elcowire. For smaller children there is also support of the local Zoo, as well as playrooms in local schools. On top of this, the company participates in local campaigns
MELISSA KOMMAS, HEAD OF HUMAN RESOURCES, HETTSTEDT
such as for child cancer, and similar charity event, sometimes with employee contributions being doubled by the company.
“In Helsingborg Elcowire have increased our monetary contributions and engagement in our local community by supporting local handball club OVs initiative to create a meaningful leisure time for children in socioeconomically challenged areas. OVs initiative handball and school includes activities such as sport and homework help, and their activities engages 430 children on a weekly basis. We also offer our employees the opportunity to be part of this initiative by supporting children with homework help during paid working hours”, concludes Lisa Mattsson.
LISA MATTSSON, HEAD OF HUMAN RESOURCES, HELSINGBORG
SUSTAINABILITY PERFORMANCE 2023
REPORTING SCOPE
The Group comprises three manufacturing facilities. All facts and data represent the companies Elcowire AB, Helsingborg, Sweden, Elcowire Rail GmbH, and Elcowire GmbH (the production site is called Hettstedt), both the latter situated in Hettstedt, Germany.
SITE DESCRIPTIONS
Elcowire Group has two wire rod mills – one in Helsingborg and one in Hettstedt – and several casting machines for alloys. The wire rod mills are not using the same casting technology which leads to some differences, for example regarding which energy is used in the process steps.
The wire rod product can be transformed into various products, such as drawn wire, stranded conductors, extruded strips and profiles. For railway purposes, contact wire is also manufactured. Within the group, also purchased wire rod made from aluminium can be processed into drawn wire and extruded profiles.
Water is used at all sites, mainly for cooling purposes and for on-site production of lubricating emulsions.
Elcowire in Helsingborg, Sweden, consists of a wire rod mill with in-line casting and rolling. The shaft furnace and holding furnace in the rod mill are powered by natural gas. There are also two casting machines for alloyed copper where
electricity is used to melt the copper.
The wire rod from the rod mill and the cast alloyed copper products are drawn into wire as well as extruded into various other products. Drawn wire is also stranded.
The rod capacity in Helsingborg and Hettstedt is approximately 300 000 tons per year. For extrusion the capacity varies depending on labour planning but is approximately 35 000 tons per year. During 2024, extrusion capacity is planned to expand considerably.
Elcowire Rail GmbH in Hettstedt, Germany, is specialized in products for the railway business. This includes transformation of copper wire rod into contact wires and stranded conductors, used for catenary
Reaching the melting point: Copper transforms at 1,085°C.
PERFORMANCE SUSTAINABILITY
JONAS CIARDI SUSTAINABILITY OFFICER, HELSINGBORG
systems within the railway sector. The site has capacity to cast alloyed copper. In total approximately 8 500 tons per year are processed at Elcowire Rail. Elcowire GmbH in Hettstedt, Germany, consists of a wire rod mill with in-line casting and rolling. The shaft furnace is powered by natural gas, and the holding furnace is powered by electricity. The capacity of the rod mill is 150 000 tons per year. The wire rod from the rod mill is drawn into wire. Drawn wire is also stranded. The capacity for drawing and stranding is 30 000 tons per year.
RAW MATERIALS
The principal raw materials in Elcowire’s processes are metals:
copper and aluminium. For copper solutions, the copper is supplied mainly as high purity copper cathodes. For aluminium solutions, aluminium wire rod is purchased. Also metals used for alloying, such as silver, tin, and magnesium, are used in special products, but only in low concentrations (below 1 percent) to improve the products’ mechanical and electrical properties. By reducing the energy use and extending the service time and product life, this improvement supports the idea of sustainable products with lower environmental footprint. Process chemicals are used for various purposes depending on process. In the rod mills, emulsions are used as lubricants in various rolling steps. In addition to lubricating substances such as acetylene, also gases, oils and alcohols are used. In wire drawing, emulsions are used as lubricants. Alcohol is used for reducing oxides on the surface of copper wire, mainly wire rod.
ENVIRONMENT
Elcowire’s environmental approach involves minimizing and reducing any impact on the environment, such as emissions to air, land, or water. The operations should not harm nature and any impact should be minimized. Consequently, en -
vironmental aspects are assessed in respect to a life-cycle perspective and associated risks. Risk assessments are a part of the daily work – as well as when changes to the processes are made, or when new investments are considered. Best available technology should always be the first choice.
ENVIRONMENTAL MANAGEMENT
Certified environmental management systems according to ISO 14001 are mandatory for sites in the
Elcowire Group. Elcowire AB in Helsingborg and Elcowire Rail in Hettstedt are already certified according to ISO14001, whereas Elcowire GmbH, Hettstedt, acquired by Elcowire Group in 2022, has been certified during 2023.
ELCOWIRE RECEIVES ECOVADIS SILVER RATING
Third party rating organization EcoVadis has made a new year rating of Elcowire AB in 2023, again landing at the level of Silver.
Also Elcowire Rail GmbH has been rated for the first time in 2023, receiving a Silver rating as well. Silver rating corresponds to the level “Good” and will be a stable starting point for further improvements.
ULRIKE STANDKE SUSTAINABILITY OFFICER, HETTSTEDT
ELCOWIRE PERFORMS DOUBLE MATERIALITY ASSESSMENT
The new mandatory EU sustainability reporting, valid for Elcowire from the reporting year 2025, requires an assessment of impacts, risks, and opportunities.
In the new era in sustainability reporting, represented by the forthcoming EU legislation on mandatory sustainability reporting called CSRD/ ESRS (Corporate Sustainability Reporting Directive/European Sustainability Reporting Standard), all companies should report on their most important sustainability matters – impacts, risks, and opportunities.
This requires an assessment of which such matters that are: a) material (significant) to the market, the environment, and people, and b) financially material in influencing the company’s business value. In a broader sense, this concept of double materiality assessment
ensures that sustainability reporting focuses on the topics that are most relevant for the organization and its stakeholders.
In 2023, Elcowire started the process of completing a double materiality assessment. Some of the early results of this analysis have already been considered in the 2023 Sustainability Report. In particular, this refers to impacts from Elcowire’s production and activities along the value chain.
“The work with the double materiality analysis has given us a great insight to the reporting to come, and will truly improve our sustainability achievements,” says Jonas Ciardi, sustainability responsible for the Group and the Helsingborg site.
Also, opportunities are important,
and in this regard Elcowire of course benefits from being a company that contributes to the ongoing transition in society toward green energy sources, electrification and sustainable transports.
“We are happy to acknowledge that this analysis of Elcowire’s material topics helps to underpin the seriousness of our sustainable business strategy and the relevance of our sustainability reporting,” says Paul Gustavsson, Elcowire’s CEO.
Read more about how Elcowire reports its sustainability impacts, risks, and opportunities on p. 36-40, and about the value chain impact analysis and preparations in the interview with Stephan Hanel on p. 25.
SAFETY A PROGRESS AREA FOR THE ELCOWIRE GROUP
Elcowire has made real progress in establishing common safety measurements for its sites in Sweden and Germany. Good documentation is the right start for any company that wants to track safety risks and build a real safety culture internally.
In Helsingborg, Berne Fröberg is H&S responsible at the site: “I’m particularly satisfied that we have managed to engage everyone in Helsingborg in reporting incidents in a much more rigorous way than before,” Berne says. He describes a safety culture that is no longer driven by managers only, and where all incidents are well documented whether they lead to actual LTI cases or not.
Some basics: An LTI (lost time injury) case is when a workplace incident results in an employee missing time on the job beyond the date of injury. Such LTI data are the foundation for externally reported statistics across the whole Elcowire Group currently.
To be able to establish common targets for the Group, LTI cases are then related to 1 million work hours, which corresponds to the yearly work of 500 employees. This is the accident rate, LTIFR – Lost time injury frequency rate. An LTIFR of 4 for example, shows that 4 lost time injuries occur on a jobsite every 1 million hours worked.
”So, the LTIFR makes it possible to monitor general progress in terms of reducing the number of serious accidents,” says Berne. ”However, to judge the general severity of the cases you also need to measure the average number of sick days for all LTI cases – the higher the average number of sick days, the more severe accidents the site has.”
Harald Gröper, Elcowire Rail,
and Denis Dressel, Elcowire GmbH, are safety responsibles for the two Hettstedt production sites. First of all, regarding LTI and LTIFR, both sites have the same indicators as Helsingborg, which is a really good start for creating a groupwide safety culture. Both the German sites also have various activities such as regular training courses on first aid, fire safety and further training for safety
twisting, spraining, bruising, overexertion, crushing, scratching, stabbing, cutting and inflammation.
Denis Dressel at Elcowire GmbH is an occupational health and safety specialist and mainly works in an advisory capacity for all topics relating to this area. He is currently implementing a DIN EN ISO 45001 occupational health and safety management system, a sign of the priority given
officers and managers on health and safety. Health days are also organized regularly. Current information on occupational health and safety is made available to employees.
Harald Gröper is a process engineer at Elcowire Rail GmbH and, among other things, responsible for HSE and energy management.
“At Hettstedt Rail there is also data about the type of accidents,” Harald says. A distinction is made between
to safety. He gives further examples of the safety practices at Elcowire North:
“We make an accident evaluation according to 5 Why for each accident. We also document near misses and focal points of accidents – what was the root reason behind the accident – technical, organizational or personal,” Denis says.
OPERATIONS CARBON FOOTPRINT
(Scope 1 & 2 emissions)
Elcowire aims to be a sustainability leader in its business, and therefore the carbon footprint is of course strategically important. See below for emissions from operations, and page 39 for the verification process of the carbon footprint of Elcowire’s Low-carbon Copper products made from recycled and primary copper.
The calculation of CO 2 emissions from Elcowire operations is based on energy figures and currently available conversion factors.
Outcome 2023: The total emissions in 2023 were 26 479 tons (30 593), a larger than 13 percent decrease from 2022.
Intensity-wise per tons of products produced, this corresponds to a very considerable improvement of around 21 percent: 0.092 tons of CO2 were emitted per ton of products produced, compared to 0.117 in 2022.
The emissions reduction achieved in 2023 is largely due to a transition into fossil free and renewable electricity, as seen from the Scope 2 figures above and the Energy report below.
Scope 1 emissions are calculated from the use of natural gas and diesel. In 2023, they were 19 884 tons (19 159), while Scope 2 emissions, calculated from purchased electricity, were 6 594 tons (11 434).
ENERGY
Energy consumption for production purposes is based on fuel combustion, mainly natural gas used for melting in shaft furnaces, but also on purchased electricity. Purchased electricity is used for melting in the oxygen-free copper production and for subsequent support processes such as rolling, drawing, stranding and extrusion. A relatively small amount of diesel is also used as forklift truck fuel.
At the site in Helsingborg, Sweden, energy is recovered from flue gases in the shaft furnace used for copper rod production. The recovered energy is used in two ways: internally, for heating purposes, and externally, for distribution to the district heating network of the city of Helsingborg for heating of homes and industries, and for producing district cooling.
After heat recovery, the flue gas is cleaned in a baghouse (textile filter).
From the beginning of 2022, the operations in Elcowire Rail, Hettstedt, have been run on renewable electricity. The operations in Helsingborg are using fossil-free electricity from September 2022. See the section on Operations carbon footprint above.
WATER
Water consumption is mainly for cooling and for make-up water. At the Helsingborg site, a water cleaning facility has earlier been installed, which makes it possible to clean the water and thus decreasing the water consumption since pollutants, such as soot and copper, are removed. The cleaning facility also lowers the emissions from discharged water to recipients.
Helsingborg uses drinking water from own wells which is treated by descaling of the water. Hettstedt Rail uses drinking water for its processes. At Hettstedt North, there are two types of water being used, drinking water and process water. Which type is used depends on the application. For demanding applications such as emulsions, drinking water is used to ensure high quality of the emulsions which enables a proper lubrication in the rolling and drawing processes. Process water is used for cooling.
Water consumption in the wire rod mills in Helsingborg and Hettstedt North sites is quite similar and based on closed cooling circuits which leads to low water consumption, as the water can be circulated to a cer
Outcome 2023: Total energy consumption rose somewhat in 2023, due to increased production volumes: 286 666 tons (262 361). In total, the consumption was 128.6 GWh (122.1).
Direct energy consumption (mainly natural gas) was 90.7 GWh (87.3), and the indirect consumption was 37.9 GWh (34.8). Once again, the increase was mainly due to increased production volumes. Also please note that 2022 was not a complete year for the current Elcowire Group, since Elcowire GmbH was acquired in March 2022.
Energy intensity figures related to production volumes show an improvement: the 2023 Energy intensity in GWh/ton of products were 0.000448, as compared to 0.000465 in 2022. This corresponds to a 3.6 percent improvement since last year.
tain extent. Evaporisation due to the hot processes is substantial.
Evaporisation also takes place in cooling towers. The cooling system at the wire drawing and stranding of Hettstedt North is based on an open system which requires more water, resulting in a higher water consumption.
For cooling of the wire rod casting process, the Helsingborg site has
installed a cooling tower with several benefits compared to earlier solutions: lower energy use, lower noise to the surroundings, easy maintenance with access to important parts during operation which means reduced downtime and improved productivity.
Outcome 2023: The water consumption decreased in 2023 and
(662 213). At the Hettstedt North and Helsingborg there are improvement programmes to lower water consumption, which includes improving the cooling systems and improving water treatment.
CIRCULARITY AND WASTE
Circularity has a long tradition in metal-based industry, and internal metal waste in Elcowire facilities is, to a very high degree, recycled. If the metal scrap cannot be recycled internally, it is taken care of by sub-suppliers to ensure that the metal is recycled back into new high-grade material.
Outcome 2023: Internal copper scrap has increased in 2023 due to higher production volumes at the profile department in Helsingborg, and generally in Hettstedt North. The iron/steel scrap figure was affected by a one-off scrapping of machinery at the Wire & Strands section in Hettstedt. The category Other hazardous increased due to contaminated concrete from building work at Wire & Strands by Elcowire GmbH in Hettstedt.The category Other waste water originates from tinning at the production of drawn copper, and waste water is treated at an external part.
Elcowire’s waste management and processing of materials are focused on transitioning from linear flows to circular flows, supporting the idea of a circular economy.
Discussions are ongoing with customers to enable Elcowire processing of high quality scrap coming from their facilities, and investiga
tions are in place of such possibilities to use scrap from their end-oflife products, thus closing the loop.
A circularity vision map with options for Elcowire was outlined in 2022 and illustrates the potential of both already existing and future material flows supporting a circular economy:
The Waste hierarchy model (see figure left) is important as a guide to apply in Elcowire’s manufacturing, as the main target should be to reduce waste, and second best is to reuse.
Hazardous waste consists mainly of oil emulsions from fluids used in rolling and drawing operations. The waste hierarchy is also applied on Elcowire’s sustainability agenda which well suits the intention to improve sustainability.
Metals are extracted with lowest possible impact from suppliers’ mines
End-of-Life materials sent back to smelters to be re ned in several process steps
End-of-Life copper sent back to Elcowire to be recycled.
Internal metal scrap is reused
Mines Suppliers (smelters) – Cathode (raw material) manufacturing
Elcowire – Wire, rod and conductor material manufacturing
Customers – Cable and other copper-based solutions manufacturing
End-of-Life – At the material end of life there are several possibilities for the material to get a new life
Process scrap from customers recycled at Elcowire
LANDFILL
Circularity at Elcowire
PRODUCT CARBON FOOTPRINT
The calculated emissions from 1 kg of Low-carbon copper from Elcowire is 1.7 kg. This compares to less than half of the global average emissions from 1 kg of copper.
This statement is based upon comparison per kg of copper quoted by the International Copper Association (ICA). When calculating the footprint, Scope 1, 2, and 3 emissions have been included, i.e. all categories in the Greenhouse Gas Protocol with a relevant impact on the final carbon footprint, from cradle to Elcowire AB gate.
The calculations have been made in accordance with the GHG Protocol Product Standards (Product Life Cycle Accounting and Reporting).
From 2023, Environmental Self-Declaration (ESD) documents based on LCA standards ISO 14040:2006, ISO 14044:2006 and ISO 14021:2016 replace earlier environmental/sustainability product verifications. Detailed ESDs have been developed for the various Elcowire product categories and production sites, see examples in the ESD picture below.
Elcowire’s ESD documents are based on the Mass Balance concept. The basic principles behind mass balancing are described in further detail below.
ENVIRONMENTAL SELF DECLARATION (ESD)
Environmental Self-Declaration (ESD) is a process in several steps. At the core, key data are collected, such as detailed raw material volumes and production volumes. They are used for modelling, resulting in a Life Cycle Analysis (LCA)-based report which is the foundation for the ESD documentation itself. Ultimately, third party verification will be used to support that Elcowire has the correct underlying data and ESD procedures.
ENVIRONMENTAL S SELF-DECLARATION
Copper Rod global average (a)
Aluminium Rod global average (c)
Elcowire Lowcarbon Copper Rod (b) max 3.5 kg CO2 /kg Copper Elcowire Standard Copper Rod (b)
Elcowire Copper products benchmarked against global average and aluminium regarding CO2 emissions (kg CO2/kg copper)
a) ICA International Copper Association b) Elcowire LCA calculations c) ASI Aluminium Stewardship Initiative
max 1.7 kg CO2 /kg Copper
Elcowire Recycled Copper Rod (b)
MASS BALANCE CALCULATIONS
Elcowire uses Mass Balance calculations where output always must equal input, allowing us to manufacture products and enhance circularity without making complex and costly changes to our production infrastructure.
With this approach, copper with lower CO 2 emissions and 100 percent recycled content are mixed with other copper during production, making it challenging to trace them directly to their source. However, by
monitoring the quantities of each input material and the resulting product output, we calculate the amount of each input material present in the final product.
A full segregation of sustainable and primary materials is not feasible in process industry. It would require setting up a duplicate production line, using more resources and energy, which is the opposite of what Elcowire wants to achieve.
Mass balance as shown in the
furnace illustration below is a chain of custody approach that allows tracking the net amount of sustainable materials – in this illustration recycled copper and low-carbon primary copper – as they move through a system and ensures an appropriate allocation of these materials to the finished goods based on auditable bookkeeping where input must equal output. Industries such as energy, paper & pulp, food, and textiles are implementing similar mass balance approaches.
Recycled Copper Products
SAFETY
Safety is a high-priority area for Elcowire: the inhouse program for safety management aims to prevent injuries at all units and avoid recurrence of a certain type of incident.
In general, progress for occupational health and safety is tracked along three key parameters: risk alerts, accidents, and absence.
All sites have safety and risk evaluation initiatives according to local needs and conduct reporting monthly to establish common standards across the group.
Elcowire has a groupwide zeroaccident vision that guides the risk assessment strategy. Since 2012, focus has been set on preventing incidents by continuously identifying, documenting, and analyzing risks.
Safety is a collective effort, and each employee is involved with pinpointing at least one potential risk each year.
In line with its high-priority ambitions for safety, Elcowire has appointed a Safety Manager at Helsingborg site, and introduced the measurement standards used by most large
industrials in their sustainability reporting, see story on p. 37.
Despite the intense work on safety, there is still room for impro -
vement and to reach the zero-accident vision within Elcowire Group – Safety First!
Outcome 2023: No work-related fatalities were recorded in 2023.
A work-related accident is counted as leading to a Lost-time injury (LTI) case as soon as the injured person cannot work the following full working day. In 2023, there were 9 LTI cases/accidents (8).
The Lost-time injury frequency rate (LTIFR) indicates how many such injury cases an organization has per 1 000 000 working hours, which corresponds to a work year for 500 full-time employees. The LTIFR for 2023 was 14.5 (2022 revised: 14.3).
Elcowire has also introduced the Lost Work Days (LWD) measurement on Group level, which is the average number of absence days for LTI cases. This measurement indicates the severity of the occured cases. The LWD for 2023 was 17.4 (20.4).
Cathodes Furnace – Mass Balance Approach
CFO Lilian Hegg comments on 2023:
IMPROVED FINANCIAL PERFORMANCE – CONTINUED INTEGRATION AND INVESTMENTS
How would you summarize the financial year 2023 for Elcowire?
Any important steps forward or challenges?
The year was quite good, especially in comparison to 2022. Net sales increased more than 10
percent, profitability defined as net income quadrupled, and was very considerable also in EBITDA terms. This is mainly driven by improved performance from our 2022 acquisition in Hettstedt, but the other operational Elcowire
companies also contributed positively. Furthermore, the cash flow from operating activities is improved also related mainly to the improved profitability. Solvency increased from 29% in 2022 to 35% in 2023 from improvements
CFO LILIAN HEGG
in increasing profitability and reduced working capital.
There is still work to be completed to achieve a satisfactory level of the profitability in the new unit in Hettstedt, and we are very transparent toward the organization about where we need further efficiency improvements.
Another challenge last year was to manage significantly increased financial costs. We all know that interest rates were high. Also affecting the financial was the fact that we started several relationships with new suppliers having various financial requirements.
What is the status with regard to the integration of the Hettstedt acquisition?
As already described, we have done some good work with the integration, including efficiency measures such as closing some of the production with unsatisfactory financial returns.
However, going forward we need to continue to integrate our ERP systems. We also need to become more efficient in terms of the production facilities supporting and helping each other whenever needed. It is an important step toward becoming a group that truly leverages on its synergies.
Could you mention some of the financial priorities for 2024 and the coming years?
In the beginning of 2024, we strengthened the finance organization with a treasury position to manage the liquidity, financing and minimize the financial risks in the business.
One thing we need to consider moving forward is that we must use our capital efficiently and make use of the solutions we have developed to minimize financial risks. They address potential cost increases caused by raw materials, energy, and the interest rate and make us less vulnerable to them.
Finally, we must keep improving our production efficiency to save resources, such as material and energy.
What are your priorities regarding investments in the next three-year period?
One area of investment is improving our ability to take care of recycled material input. This of course includes the recycling of our own waste as well as recycled raw materials in general.
We also want to further develop sustainability work within the group, as well as invest in people for improved automatization and utilization of our IT systems.
Furthermore, we need to integrate all our companies into one ERP system – to enable us to work smarter and perform less manual work.
A good start for these investments has been the establishment of new group level functions in the areas of sustainability and IT.
In your view, what are the connections between financial performance and sustainability performance?
Personally, I believe that there is a positive relationship between good sustainability practices and financial performance, meaning that companies that do prioritize sustainability will outperform their peers in the long run.
Further development of non-financial metrics, such as monitoring and reporting carbon emissions, does benefit society and individual companies since it reveals potential for sustainability-related savings and growth.
Overall and in the long run we will all benefit from investments in sustainability as they help to improve health and well-being and protect our ecosystems for future generations.
ELCOWIRE GROUP’S PROFIT/LOSS
ELCOWIRE GROUP’S FINANCIAL POSITION
ELCOWIRE GROUP’S CASH FLOW
BENGT LILJEDAHL
Chairman of the Board of Directors, Elcowire Group
President and founder of Liljedahl Group
Education
MSc in Economics and Business Administration at the University of Gothenburg.
Other active board membership
Chairman of the Board of Liljedahl Group AB, Bufab Group, Dahrén Group AB. Board member of Hörle Wire Group AB, Pronect AB.
TORBJÖRN PERSSON
Board member of Elcowire Group
Business Developer
Education
Degree of Master of Science in Business and Economics and Executive MBA from School of Business, Economics and Law at the University of Gothenburg.
Other active board membership
Chairman of the Board of Liljedahl Group Fastighets AB. Board member of Hörle Wire Group AB and Dahrén Group AB.
ANNA LILJEDAHL
Board member of Elcowire Group
President, CEO of Liljedahl Group
Education
Degree of Master of Science in Business and Economics.
Other active board membership
Chairman of the Board of Finnvedens Bil AB and Finnvedes Lastvagnar AB. Board member of Liljedahl Group AB, Liljedahl Group Fastighets AB, Pronect AB, Hörle Wire Group AB, Dahrén Group AB, Bufab Group, and Tanka i Sverige AB.
SVANTE NILSSON
Board member of Elcowire Group
Consultant and Board Director
Education MSc in Industrial and Management Engineering.
Other active board membership
GISAB Gällivare Industriservice AB.
FREDRIK LILJEDAHL
Board member of Elcowire Group
Deputy CEO of Liljedahl Group
Education
MSc in Mechanical Engineering, BSc in Business Administration and Economics, Lund University.
Other active board membership
Chairman of the Board of Pronect AB. Board member of Liljedahl Group AB, Hörle Wire Group AB, Dahrén Group AB, Liljedahl Group Fastighets AB. Nominating committee of Bufab Group.
DAN BROSTRÖM
Board member of Elcowire Group
CEO Koncentra Verkstads AB
Education
MSc in Mechanical Engineering, Chalmers University of Technology, Gothenburg.
Other active board membership
Chair: JTK Power Oy, Koncentra Pistons Oy, Aiab Energy, Malmstens Verkstads AB, Finmec Oy, Koncentra Invest, Koncentra Fastighets AB. Director: Oxymetal SAS, Koncentra Verkstads AB.
LARS HAGELBERG
Board member of Elcowire Group
CFO of Liljedahl Group
Education BSc in Business Administration and Finance, International Business School, Jönköping.
Other active board membership
Board member of Dahrén Group AB, Finnvedens Bil AB, Finnvedens Lastvagnar AB, Hörle Wire Group AB, Liljedahl Group Fastighets AB, Pronect AB
Sweden