MTX GROUP MAGAZINE 2021 by MTX Group

GROUP MAGAZINE

2021

MTX Group Magazine

Editorial

ear clients and colleagues, I am delighted that you are reading the first issue of the MTX Group Magazine. After reviewing this almost final version, all that is left is writing this last piece of text. It is a huge advantage that I can read the contents of this issue in the light of current events, just moments before it gets printed and delivered to you. Why? We are experiencing the biggest health crisis since 1918. Covid has changed the world, which means that all Europe will have to insource and change supply chains. For the first time ever, we are beginning to realize what the green goals of the Paris agreement and the COP26 summit will entail, how much we are dependent on imported raw materials and goods, and how open and volatile our economy can be. If we look at it from the broader perspective, we can see the first effects of Brexit, the inevitable change in the European demographic curve, the global growth in debts, and generational and cultural clashes. This might seem grim at first, but we are returning to normal, to working together every day to make the world a better place. You can read about it in this magazine, and it is something that makes me hopeful. The role of our senior management is to make strategic decisions in the long run. These choices include actively making the Czech manufacturing industry more sustainable, more so than anyone else. And to be truly up to date, we will follow the ESG framework. Most of our businesses produce a significant amount of carbon. This means we will be facing stringent decarbonization demands. On the other hand, we are a company with unique production expertise. From my point of view, it is not possible to simply move emission-heavy production to third countries or in some way become dependent on them. It is against not only my own personal convictions but also the strategic

interests of the Czech Republic and, by extension, those of Europe. The pandemic and subsequent developments have clearly shown us our weak spots, when we had to order special containers to be shipped halfway around the world just to obtain basic materials. We are simply an integral part of our society. Always prepared to deliver anything from our portfolio. And we are always willing to help, be it supporting local communities or setting up a vaccination center. Further ahead, another important aspect of our support is working with schools. Currently, we are often the only ones who are able to pass on our professional skills such as smelting or rolling, and we also have an unparalleled knowledge of metallurgy and processing of aluminum, brass, and other metals, including their automated production, treatment, and environmental impact. Let me return to our everyday activities. There is not a moment during our internal meetings or conversations with customers when we are not always growing, at least one small step at a time. In annual planning and evaluation, this translates into more than CZK 1.5 billion in investments. This goes into employee development, new and more environmentally friendly technology, vegetation around our factories and improving efficiency. All of this is covered in the following pages. I believe this brief introduction will give you a picture of our direction and way of thinking. I hope you enjoy reading this issue. Petr Otava

MTX Group Magazine

content

Table of Contents 8

Infographics → MTX Group from west to east

News → The MTX Group in a nutshell

METALIMEX → A traditional trader and safe bet

MTX Capital Services → A commodity trading partner

AL INVEST → Aluminum and aluminum recycling with David Bečvář

30 OKK Koksovny → An interview with Zdeněk Durčák about restructuring the company 38

Coal Mill → Unique hard coal dust

42 Měd’ Povrly → David Kozel discusses tradition and plans of the plant for the future 46

ICE → Tomáš Vránek showcases the best in industrial automation

TAPA Tábor → A visit to TAPA Tábor

56 Kopřivná → Ski Areál Kopřivná offers opportunities for leisure and sports activities in the countryside 60 People and Culture → Jana Zimová on the company values of MTX Group 66 People and Culture → Production manager Roman György discusses working at Břidličná 72

Innovation → New laser for MTX Group customers

74 Environmental, Social and Governance → What we do for our people and the environment 80

Heritage → Two hundred years of Strojmetal in Kamenice

y an m er G

MTX Group across the Czech Republic MTX Group is an important industrial, commercial, and production holding company. Our activities are focused on managing, financing, coordinating, and creating the strategy of our companies. Take a look at all of our operations.

Serves as a sales office for METALIMEX a. s. and exports products made of aluminum plates to Germany. 2 employees

ly vr Po

Měď Povrly

MET-MEX Trading

CZK 32m turnover

METALIMEX Deutschland German-based reseller of products from OKK

A long-established manufacturer of rolled

and Coal Mill. Caters especially to the German,

and pressed copper and brass products, with

Dutch, Belgian, Luxembourg, and British markets.

a focus on construction, metallurgy, and arms

3 employees

manufacturing, both on the domestic and global

CZK 1.2bn turnover

markets. 209 employees

Strojmetal Aluminium Forging (DE)

CZK 1.4bn turnover

This company sells parts forged from aluminum

MEPO Trading

alloys to the automotive and transport industry

A distributor of brass semi-finished products for

and is involved in product development.

small and medium caliber ammunition production

18 employees

2 employees

CZK 460m turnover

Pr ah

export license for arms manufacturing.

CZK 2.5bn turnover

in areas where Czech or European laws require an

A trading company focused mainly on commodity

ic en

and transport industry.

trading. One of the most important trading compa-

525 employees

nies in Central Europe. 124 employees

This company manufactures and diagnoses parts forged from aluminum alloys for the automotive

Ka m

METALIMEX

Strojmetal Aluminium Forging (CZ)

CZK 2.5bn turnover

PP STROJMETAL

CZK 23bn turnover

This firm leases real estate, apartments, and non-residential premises.

MTX Capital Services This company supplies commodities and

Tá b

currencies.

TAPA Tábor A leading Czech flexible packaging manufacturer and supplier for the food industry as well as for non-food products, animal feed, the manufacturing industry, and households. 209 employees Employee counts and turnover data are from 2019.

CZK 964m turnover

Po la

Infographics

AMEX Coal

SKI AREÁL KOPŘIVNÁ

A Polish-based company offering a full range

This company provides accommodation

of services in coal and coke import, export,

and sports facilities for your whole family. It has

and storage.

the best ski resort and bike park in the district.

1 employee

It also includes a wellness center and corporate

CZK 54m turnover

event venue. 62 employees

CZK 80m turnover

Ko p

řiv

ět m

ná

ar ov i

Coal Mill A developing modern company with cutting-edge hard coal processing technology and a coal preparation plant for hard-coal and anthracite multidust. 28 employees

CZK 154m turnover

Bruntál

ná

va ra st

lič

Bř

AL INVEST Břidličná A rolled aluminum semi-finished products producer, the largest in the Czech Republic and a significant company in Europe. It specializes in flexible packaging, mechanical engineering, electrical

OKK Koksovny

engineering, and the automotive industry.

ár Žď

773 employees

CZK 3,5bn turnover

The largest foundry coke producer in Europe,

which also supplies a wide range of coke for met-

allurgical production, special metallurgy, heating,

Sá u vo za

and other purposes. 500 employees

CZK 4,7bn turnover

ICE Industrial Services This company specializes in designing, upgrading, and manufacturing of new machines mainly for the automotive, mechanical engineering, metallurgy, and woodworking industries, as well as for other fields. It is a European leader in industrial automation. 155 employees

Scale 1:1,235,500

CZK 235m turnover 12.5 km x 4

50 km

2020 in a nutshell

Despite all the challenges it brought us, 2020 was a successful year for MTX Group. In 2020, our group reported unconsolidated revenues of CZK 36.5 billion and EBITDA of CZK 1.5 billion. “The loss incurred by the automotive industry was compensated for by supplying flexible packaging to the food and pharmaceutical industries,” said MTX Group CEO, Petr Otava, explaining one of the reasons for the success.

2500+

36.5

employees

CZK

companies

CZK

group

bn expected unconsolidated revenues

1.5

billion in investments

MTX Group in a nutshell

News

Strojmetal is a joint-stock company

After recent changes in company ownership, Strojmetal Aluminium Forging has become a 100% subsidiary of MTX Group, and since the beginning of 2021, the limited liability company has become a joint-stock company. Therefore, it has been formally renamed to Strojmetal Aluminium Forging a. s.

MTX Capital Services heads for London

MTX Capital Services provides commodity and currency hedging to its subsidiaries and external customers. The firm is also seeking a license for trading securities from the Czech National Bank and is preparing to enter the London Metal Exchange.

We have opened a vaccination center in Břidličná A MTX Group subsidiary, AL INVEST Břidličná, is helping tackle the Covid-19 pandemic in the Czech Republic. Thanks to our partnership with a medical facility in Krnov and the Moravian-Silesian Region, AL INVEST Břidličná opened a vaccination center on its premises on April 27th. Together, they were able to vaccinate up to 300 people against Covid-19.

METALIMEX as a symbol of tradition and stability This is how this Czech trading company, which has been specializing in trading raw materials, semi-finished products, and heavy-industry and engineering products in Central Europe for more than 70 years, can be perceived. Its services are popular not only because of its long and successful history, but also because of its modern management style and high flexibility, all of which guarantee a prosperous future for the company.

ince its establishment in 1948, METALIMEX has been trading commodities such as iron ores and metals, non-ferrous metals, gas, coal and coal products, and has been carrying out other commercial activities. In terms of these commodities, today, it is a leading trading company in Central Europe. As one of the few “former foreign trade enterprises”, it has survived all kinds of geopolitical and market changes in the past couple of decades. The commodity trading business has a long-term perspective. But that does not mean that we should see METALIMEX as an inflexible giant that has not changed throughout its existence. On the contrary, this company has undergone essential development. After the Velvet Revolution, the firm was privatized and has gradually evolved into an important pillar of the MTX Group, which is led by Petr Otava. Today, METALIMEX is the backbone and the heart of our group. As a strong and financially stable company, it provides other members with the required stability, while maintaining independence by not being dependent on trading with group members. More than a third of its revenue comes from business outside of the MTX Group. It also trades commodities with these companies, and additionally can offer the expertise of its sales team, a service METALIMEX used to provide to external customers in the past. As a specialized seller, METALIMEX benefits from its experience, stability, and financial strength, an

important synergy it can offer both to MTX Group and to third parties alike. Thanks to many years of systematic improvements and farsighted investments in cyber security, IT, and automation, risk management at METALIMEX is at the highest level. This flexibility and modern approach have made METALIMEX successful even in today’s very uncertain times during the Covid-19 pandemic. In 2020 as well as in 2021, it maintained financial stability and profitability, which proves even the most unpredictable challenges can be overcome when a company stands on solid foundations. In October last year, the firm successfully retained the EN ISO 9001:2015 qualitymanagement system certificate, which was issued by TÜV NORD CERT GmbH and is valid until 2023. METALIMEX is also involved in the EKO-KOM system and approaches environmental protection responsibly. It has been repeatedly ranked among the most important Czech companies in the “100 most influential companies in the Czech Republic” competition and has received the prestigious AAA Czech Stability Award rating. In 2019, the company Bisnode awarded METALIMEX the Czech Stability Award for the most stable company in the Czech Republic.

METALIMEX

Percentage of METALIMEX divisions in total revenues What commodities does METALIMEX trade in?

Steel, raw materials and trading

32%

Coke

18%

Aluminum

17%

Coal

13%

• All common non-ferrous metals (aluminum, zinc, copper, nickel, tin, and lead) and hedges their prices on the London Metal Exchange • Aluminum strips and sheets, aluminum foils and aluminum sheets for the automotive industry • Aluminum-based and paper-based packaging • Energy commodities • Copper and brass semi-finished products • Copper, brass, aluminum and steel scrap • Steel products • In addition, iron ore and other commodities such as natural gas and electricity

Industries METALIMEX trades with • Mining • Mechanical Engineering • Metallurgical • Construction • Metal • Automotive • Power engineering • Food • Arms • Paper

Metals

Commodity trading

Brass and copper

odit-

MTX Capital Services – commodity trading partner Written by: Luděk Vokáč, photography by: Barbora Mráčková

MTX Capital Services is one of the newest companies in MTX Group. Established in 2020, it specializes in commodity derivatives trading. MTX Capital Services sets prices of raw materials for other companies in our group. After obtaining a license from the Czech National Bank, it will do the same for external customers, too.

ETALIMEX used to carry out this activity in the past, but the responsibility has now been transferred to MTX Capital Services, with the ambition of primarily supplying these services to external clients outside of the group. “The idea was that because of the trading volume and since we have experience in this field, we can take over these services from METALIMEX and let them concentrate on trading with physical commodities,” says Ondřej Hamer, Vice-Chairman of the Board of Directors and the brains behind this idea. However, Hamer says it is no easy feat. “Without a license, we can only hedge commodities for our group, which is what METALIMEX has been doing so far. But to supply these services to external clients, we need a license from a regulator, i.e., the Czech National Bank,” Hamer explains, adding the company applied for the license shortly after its establishment in July of 2020. “Obtaining this license is a complicated process; granting it is fully within the hands of the CNB. If they see any obstacles in our company, they will not grant us the license,” Hamer comments. The regulator must thoroughly examine the company and even go through the qualifications of individual employees or assess if they have enough time to do their jobs. “Asking the CNB to grant a license to someone who is wearing two hats, so to speak, would be pointless. We would not get it,” Hamer says. Currently, MTX Capital Services has a dozen employees and plans to hire more. In addition to having suitable human capital, the licensing process also evaluates business plans for the upcoming three years or strategies for saving the company in case of a market collapse. “We had to comply with numerous regulations, provide an enormous number of documents, and we are obliged to report our activities in detail,”

MTX Capital Services

We have experience and we can use it for the benefit of clients outside of MTX Group

Hamer explains. In his opinion, this strenuous process is definitely worth it. “In the Czech Republic, banks don’t pay much attention to trading commodity derivatives. In fact, they completely avoid this segment, so we believe we have great market potential,” Hamer says, explaining one of the reasons MTX Capital Services was founded. He adds that MTX Capital Services has competitors in the Czech Republic; however, they will not pose a significant threat initially, since commodity hedging is a relatively risky business. “Experience in this area is not very common. But we have it and can use it for the benefit of MTX Group and of our clients,” Hamer highlights. Even during the short time since it was established, the company has already been reminded of what a dynamic and relatively difficult

area it specializes in. The original plan was to trade derivatives on the London Metal Exchange (LME), but Brexit ultimately thwarted this plan. “The Brexit deal makes it simply impossible for us to enter LME directly, so we had to reconsider,” Hamer explains. Instead, MTX Capital Services has started trading on the Chicago Mercantile Exchange. MTX Capital Services will help clients resolve issues with fluctuating commodity prices on global markets. Specifically, the company specializes in price hedging of metals such as aluminum, nickel, lead, tin, zinc, and copper. Hamer points out, too, that for clients to be able to use their services, they themselves must meet several strict requirements. “The license for operating on the financial market also places requirements on the clients. For example, we have to review established rules and measures against money laundering, approve the hedging operation by the Board of Directors and so on,” Hamer explains. In his opinion, the clients of MTX Capital Services should also include, in addition to the “internal” customers, industrial companies using non-ferrous metals for production. Hamer plans to acquire the widest possible portfolio of customers from the area outside the group. “This will allow us to trade with a competitive pricing policy. We want to be a really interesting and useful company for our customers,” Hamer says, adding that the true potential of MTX Capital Services will only be revealed after the first year of operation.

The popularity of aluminum is rising; it will be driven by recycling Aluminum is one of the most popular metals and is used in many industries such as engineering and construction, or for automotive parts and packaging materials. It is an excellent material and suitable for several applications. And it appears that it is becoming popular right now, despite being used for several decades. David Bečvář, the MTX Group Director for Strategy and CEO of AL INVEST Břidličná, has walked us through aluminum production and recycling. Written by: Luděk Vokáč, photography by: Barbora Mráčková

fter iron, aluminum is the second most widely used metal in the world, but still by a large margin. While global production of “primary aluminum”, i.e., aluminum produced (mainly) from extracted bauxite ore, currently exceeds 100 million tons per year, the global volume of iron production, which is mainly used for steel production, is an order of magnitude higher, i.e., over a billion tons per year. However, this shows the real potential of aluminum. Although it cannot replace steel in all cases, it is becoming increasingly popular and could eventually become as popular as steel one day. Aluminum has one advantage and one disadvantage in this regard. It is the third most common element in the Earth’s crust, so it might appear abundant. On the other hand, it is not pure aluminum, and mining it from bauxite ore, its predominant source, is quite energy-intensive, which affects its price as well as its carbon footprint. The largest aluminum producers include China, Australia, Russia, and India, but also nations of the Middle East, Africa and, perhaps somewhat surprisingly, countries such as Norway and Iceland, although their share of global production is minimal. “Aluminum production is nothing unusual and takes place practically all over the world. But, in the Czech Republic, we do not produce this metal. We therefore buy primary aluminum,” says David Bečvář, MTX Group Director for Strategy and CEO of AL INVEST Břidličná, which specializes in the production of foil and other aluminum products.

“We import aluminum mainly from Africa and Russia, but, if necessary, we can provide alternative supplies, which has already proven useful in the past,” Bečvář explains, noting that the global aluminum market is extensive and relatively well interconnected. “African aluminum is ‘purer’, but Russian aluminum is a little cheaper for us, since it is closer to the Czech Republic, and the cost of transport also significantly affects the price of primary aluminum.” He suggests buying aluminum is a complicated process with several variables. “You need to play with those resources a little,” Bečvář says with a smile. However, MTX Group has extensive experience in solving this equation, so the group buys aluminum through METALIMEX both for its own use and for any other consumers in the Czech Republic. According to Bečvář, MTX Group itself consumes about 35,000 tons of primary aluminum, 25,000 tons of aluminum semi-finished products (rods), and a further 15,000 tons of aluminum scrap for recycling. Aluminum recycling has gained a lot of traction recently. That is because it can be recycled easily. Approximately 75% of produced aluminum is circulating, and this number could be even bigger. “The aluminum processing industry is now focusing a lot on recycling, as it should fundamentally help reduce the carbon footprint of final products, which is what our customers are asking for today,” Bečvář explains.

AL INVEST

David Bečvář He has been with MTX Group since 2016, as Product Director and Director of Acquisitions, and has contributed significantly to the strategic development of the group. Besides, he is the CEO of AL INVEST Břidličná and the group’s foremost aluminum expert.

Aluminum (Al) Aluminum is a non-magnetic forgeable and ductile metal of whitish-gray color and about three times lighter than steel. It is very easily machined. In its natural form, it is most commonly found in the form of compounds, mainly in bauxite, which is a typical aluminum ore. It is an exceptionally good electrical conductor, is corrosion resistant and easy to recycle. For industrial use, aluminum was “discovered” in the nineteenth century; its wider application was made possible by the invention of electrolytic aluminum production, known as the Hall-Héroult process.

World's biggest primary aluminum producers

35,800,000 tons per year

China

3,700,000 tons per year

India

3,600,000 tons per year

Russia

2,900,000 tons per year

Canada

2,700,000 tons per year

United Arab Emirates

AL INVEST

Al Customers want products with a low environmental impact.

Recycling is science

Primary aluminum production, depending on the country and method, emits between 6 and 14 kilograms of CO2 per kilogram of product. In comparison, recycled aluminum emits only 1.6 kilograms of CO2 per kilogram of product. This shows how energy-intensive the production of aluminum is compared to “just remelting it”. And of course, the energy mix in the country of production and transport also come into play. Aluminum can be easily recycled at the same place where it is consumed, thus avoiding long journeys. “I believe that local production can significantly lower emissions and carbon footprint. Most of our production is consumed in Europe,” Bečvář explains, adding that he sees the local industry not only as a livelihood, but also as an opportunity to reduce its carbon footprint. “If we would not produce anything in the Czech Republic, it would not only mean financial problems, but above all, as a country, we would lose the opportunity to change our carbon footprint,” the director reflects. Bečvář says that recycling is a wonderful opportunity for local producers, MTX Group firms (specifically AL INVEST Břidličná and Strojmetal). “Of course, aluminum waste is generated here, so why not process it? The more we use it and the less we have to import primary aluminum, the smaller the carbon footprint of our production will be,” Bečvář says, adding that customers are starting to demand products with a low carbon footprint. “For example, food companies want aluminum packaging to become part of the circular economy, and essentially turn this waste into new packaging,” explains the director of AL INVEST. According to him, however, there are a few major pitfalls. One of them is the collection of aluminum waste. “The lids of yogurt pots typically end up in mixed waste, but they could be easily recycled, too,” says Bečvář. He sees another pitfall in the variety of aluminum materials. “An aluminum can, which is also made of two different aluminum alloys, is an entirely different story from the lid of a yogurt pot.” He outlines that for perfect waste processing, carefully sorting waste or using other procedures to remove various additives from the material is necessary. “When you melt the can, you get an alloy that cannot be used either for the body or the lid.” Bečvář explains how aluminum alloys differ even though the proportion of added elements (known as alloying elements) is just a few percent. However, this does not mean that such material cannot be used. On the contrary, it can be readily applied. “It can be used, for example, in forging pieces produced by Strojmetal,” Bečvář explains. However, he says this does

not meet the expectations of some customers that the aluminum would “circulate” in the products they use. “This is something that the aluminum processing industry must resolve by itself. We cannot pass this on to the customer,” Bečvář suggests, adding that the recycling details should not place a burden on the end customer in any way. In essence, it is important to obtain the consumed aluminum for recycling. In many places in the Czech Republic, in addition to the standard bins for plastics, paper and glass, there are also containers for metal waste, where aluminum belongs, or aluminum waste can be handed over at recycling centers. Both aluminum recycling methods will help significantly. “Basically, it is important to get as much of the raw material back as possible. We will deal with the rest,” Bečvář notes, encouraging people to sort aluminum from mixed waste. AL INVEST is looking for ways to use recycled aluminum even in products for which it is currently not suitable. “We are developing a procedure to purify the recycled material of unwanted elements to obtain an essentially pure aluminum that will be similar to the primary aluminum. We will then add in alloying elements as needed to suit a specific application,” he says, indicating the way in which the company is going. This direction has already had some concrete results. “We are working with our partner on the first prototype of a filter that will allow us to clean the materials,” continues Bečvář, adding that the company is a global leader in this regard. “In addition, we are already able to produce packaging material that contains 20 percent recycled material. This is a small victory right now because in the past we could only do up to five percent,” says Bečvář. However, such packaging is made from carefully sorted waste, and one very specific and relatively clean source of aluminum is used: electrical wire. In the future, the company wants to move away from this aluminum recycling method. “It is not just about recycling,” Bečvář suggests that the process of reducing the carbon footprint, which is currently an important topic, is much more complex, and significantly linked to the productivity and efficiency of production and non-production processes and their energy demands. “Customers are looking at the carbon footprint of the entire product, not just parts of it. Ultimately, they don’t care where the excess carbon footprint is created, be it in our country or somewhere else. It is about minimizing it,” says the AL INVEST Břidličná director.

Different kinds of footprints

Bečvář has reservations about one particular example of carbon footprint reduction. “From a government official’s point of view, the best way to reduce your carbon footprint is to close your factory. But that does not solve the problem; it just moves it elsewhere and creates unemployment,” he says about quick and easy solutions. The AL INVEST CEO also points out an interesting paradox. When you set up a new recycling plant in the factory, it is actually bad for the environment, from the government’s standpoint. “The recycling plant is something new that needs to be built, resulting in a large carbon emission,” Bečvář says, shaking his head. “But the carbon footprint, those emissions, will not stop at the municipal, regional, national or even European border,” he reflects. And he gives one specific example: “When I look at the carbon footprint of products from the AL INVEST Břidličná factory, I see that our process accounts for only about 30%. The rest comes from the production of the input material and from transporting it. If we only address our own processes, we can only reduce the footprint by those 30%, which is far below the overall potential”. However, this certainly does not mean that AL INVEST or other companies in the MTX Group avoid reducing their carbon footprint. Actually, the opposite is true. Each year, the group heavily invests in this area. “For example, we will try to partly power our plants with solar panels and other renewable sources,” Bečvář says, describing his plans. But he also points out that some solutions cannot be quick and simple. “Given the current energy mix in the Czech Republic, it is more environmentally friendly and economically viable for us to use natural gas for melting aluminum alloy,”

he explains. Bečvář says that transitioning to electric furnaces would only make sense if the energy mix was significantly cleaner. Despite the group‘s investments, it still cannot supply clean energy on its own. “We are an energy-intensive process, but on the other hand, we are not a power plant.” Bečvář suggests that the group cannot (at least for now) resolve the power problem. He says solar panels cannot produce enough power to meet the group’s demands. But he agrees that reducing our negative impact on the planet and the environment is the way to go. “I must emphasize once again, however, that it is important to approach this problem as the complete life cycle of a product, which includes its service life and disposal. Not just as one thing at one place,” he says. This is the direction and philosophy to follow, according to Bečvář. “Most of our partners and customers understand it this way, but it should also be aligned with how the authorities see it. It makes no sense to subsidize projects that will reduce production in one place and transfer it somewhere else, where European legislation cannot see it,” says Bečvář. He believes this shift in thinking about the problem might already be happening throughout Europe. “I believe the technical side of things will complement the political one in such a way that they make sense together,” he says, optimistically. This applies to any industry, not just aluminum processing.

AL INVEST

Aluminum: did you know? • Metabolic waste products of a bacterium called Pseudomonas aeruginosa and a fungus called Cladosporium resinae can cause aluminum corrosion. These bacteria and fungi are commonly found in kerosene-burning aircraft tanks. • Aluminum was used by our ancestors thousands of years ago. The first documented evidence of such use dates back to ancient Greece. However, it was not used in its metallic form, but rather in the form of alum, as a fabric dye. • Aluminum’s corrosion resistance is determined by how it reacts with oxygen. This creates a microscopic protective oxide layer on the surface of the material. A process called anodization uses this phenomenon to speed up the formation of the protective layer. • Aluminum is the third most common element in the Earth’s crust after oxygen and silicon (about 8% of the crust) and the 12th most common element in the universe. Therefore, it is the most common metal on Earth, even though you cannot find it in its pure form. • So much aluminum exists in the Earth’s crust because of the metal’s light weight and high reactivity. When the planet was formed, aluminum easily attached to rocks, while heavier metals descended into the Earth’s core. Aluminum makes up 1.59% of the Earth’s mass. • Electrolytic aluminum production was invented in 1886 by two 22-year-old scientists, Charles Martin Hall in the USA and Paul Héroult in France. They did so independently of each other. • In industrial applications, aluminum is used almost exclusively in alloys, but its content is typically very high, even more than 99%. • Aluminum perfectly reflects the visible spectrum of light and infrared light. It reflects up to 92% of visible light and up to 98% of infrared light.

MTX Group through the eyes of David Bečvář David Bečvář sees its diversified portfolio, which the group is trying to con-

⅟2

tinue to expand, as its largest asset. For example, MTX Capital Services has been relaunched as a new company offering hedging on commodity markets. But the firm also has a completely new project. “We are making intensive efforts to diversify and look for synergies, especially in management and services,” says Bečvář. He believes the past year has clearly shown that diversification is the right way to go. “Although we have seen a decline in some areas, we have been successful in others,” Bečvář explains. The group does not depend on a particular industry, which he believes will be beneficial during the upcoming boom. The growing demand is stratified into multiple areas, which allows the group to respond better to any situation.

Global, yet local

He thinks carbon footprint should be reduced, even as the group’s aluminum product portfolio, which is already very wide, grows. The group uses aluminum mainly to manufacture car chassis parts, sheets, foil and packaging. “We have a number of interesting and quite unique applications. For example, we manufacture special foils for coolers and special thin foils for packaging, be it for the food industry, cosmetics or pet food,” Bečvář says about the portfolio. Besides the automotive and food industries, our products are also used in construction and mechanical engineering. “In 2018, we started to relocate our aluminum plate manufacture from the plant we purchased in Austria to Břidličná,” he says about one of the recent changes in the company. However, production has not been relocated to be more local, as discussed before, but because there was no potential for further growth and development in the location of the Austrian plant. “We did not come to an agreement with the landowners and could not further expand the plant. Therefore, we decided to relocate. We managed to fully launch production at the new location this year and basically returned as a renewed manufacturer of aluminum plates,” says Bečvář. These plates are used in production lines and their technological features in the food, pharmaceutical and other industries. “This product is made from almost 100% recycled material,” notes Bečvář, coming back to our previous topic. He also believes license plates can be manufactured using recycled materials. Although MTX Group factories manufacture mainly locally, they are major European players. This is especially true for Strojmetal Aluminium Forging, which specializes in aluminum chassis parts. “Even though Strojmetal only manufactures products in Europe, it is one of the top three global chassis parts manufacturers,” Bečvář explains. He says clients all around the world come to Strojmetal for their upper arms of the front axle. In addition to European car manufacturers such as Mercedes-Benz or Audi, its products are shipped to the USA. “We ship supplies from the Czech Republic to Ford, for example,” Bečvář says. He also admits it is possible the company will build a plant in the US. “Given the current shipment volume, it does not make much sense financially. We have calculated that we would need three new production lines there. It would be like moving one third of Strojmetal to the States,” Bečvář explains. However, Strojmetal does not yet have such a high demand there, nor in the neighboring countries, so the investment is only a theory for now. But the situation may change, he said. It does

About half of all trucks in Europe have fuel tanks made of AL INVEST sheet metal

not only depend on the demand there but also on American rules for such production. So far, the US government is not preventing car manufacturers from shipping parts from Europe, but it might eventually pressure them into producing more parts locally. “This is not happening yet, and we are constantly monitoring the situation. We understand that there is pressure to localize production, but it would not be economically viable for us yet. If there is a change, we are ready to react, but we are not taking any steps in this regard at the moment,” Bečvář explains. And he is not afraid that the competition might react faster. “We have a high level of expertise in the area, and it is always easier for clients to work with someone who has more experience. In the USA, aluminum forgings are not used in the automotive industry nearly as much as in Europe, so they lack that experience we have, in a way. At Strojmetal, we also help car manufacturers with the development of these parts, and this overall package of services is not easily replaceable. A new supplier would not have it easy at all,” says Bečvář with certainty. “Just because someone can forge steel doesn’t mean they can forge aluminum as well. It’s not something you learn overnight,” he says with a smile. Other relatively unique products come from the AL INVEST Břidličná factory. “About half of all trucks in Europe have fuel tanks made of AL INVEST sheet metal,” he explains, adding that the company is constantly moving forward in this regard. Instead of just supplying sheet metal, last year the company built a new robotized laser workplace, which manufactures burnouts in any desired shape from sheet metal. These are used directly for fuel tank manufacture, so we have managed to increase the added value of the product. “I also estimate that about a third of European cooler manufacturers use our foil,” Bečvář boasts. He says food packaging is manufactured locally. Even though AL INVEST Břidličná manufactures about 10,000 tons of aluminum packaging each year, which might seem like a large number, the European market consumes around 1,500,000 tons of this packaging each year. “We are an important supplier in our region, but this sector is very fragmented, because transport plays a crucial role in the price of packaging,” Bečvář explains. Packaging materials are therefore not transported far away, which also contributes to reducing the aforementioned carbon footprint. “The aim is to serve customers around the corner, so to speak,” Bečvář concludes discussion of the topic.

AL INVEST

Strojmetal

We are bound by tradition, and we want to continue to grow According to its CFO and COO Miroslav Záhorec, the group‘s companies are healthy and have exciting potential for further development. The Covid-19 pandemic has merely reinforced this. Despite the global business cooldown, all companies in the group managed to handle the pandemic well and without much difficulty. Záhorec thinks this comes down to financial stability and good management capable of taking the right decisions quickly. Written by: Luděk Vokáč, photography by: Barbora Mráčková

he MTX GROUP companies managed to grow in 2020, despite all the uncertainties that the first year of Covid brought. “Our group has the advantage that there is a very short path from senior management to middle management,” says Miroslav Záhorec. “In a way, this short path can be challenging for some managers because personal responsibility is very visible, as we have no large hierarchical structures, but on the other hand, it means that all communication about events in the company and decision-making are very prompt and flexible. We consider this kind of management to be highly effective, and it allows us to make major strategic decisions very quickly,” adds the group’s Chief Operating Officer and Chief Financial Officer. This management style has been proven to work during the pandemic. MTX Group, for example, has operatively increased stocks in its companies so that their functioning is not limited by various Covid measures and supply disruptions. The group also has not stopped investing. On the contrary, it has continued to prepare future development projects for individual companies. Investing in self-development is essential for every company; MTX Group approaches it very pragmatically. “If an investment has a good return and is promising both for the product and the customer, then we can always

find money for it. This development motivates the employees and management alike. Companies put together the documents for approving the investment, and if everything fits, thanks to the flat structure and simple rules, we will quickly approve it.” Záhorec explains how the group’s ability to react quickly affects basically everyone in it. “We are not a corporation that needs three advisory committees for everything and then has difficulty approving it at several meetings of the Board of Directors, or that needs to discuss it with the parent company abroad through a lengthy approval process. That would annoy a lot of people and it is not our way. We have our own efficient system of approving things that is based on clear rules,” Záhorec adds. Thanks to this approach, the companies managed to withstand the difficult pandemic well beyond expectations. They succeeded in compensating for drops in demand or the loss of clients in other industries, and production has not stopped. Záhorec claims the group is now experiencing an economic boom. People want to make up for all the restrictions and measures. “Last year, thanks to the huge commitment of our employees, we managed in many cases to keep the sales volumes at the same level as the year before, and now their efforts are helping us cope with the current onslaught of orders. For this, everyone deserves a huge thanks,” says

Strojmetal Miroslav Záhorec He joined MTX Group in autumn 2016 as CFO and COO. He oversees financial management of the Group and is in charge of production and investments. Záhorec is also the Chairman of the Board of Directors at one of the group’s subsidiaries, Strojmetal Aluminium Forging, which is based in Central Bohemia. As an economist, he says he likes to use his systematic approach to resolve technical issues. “In the industrial companies I have worked in, you have to actually operate the machines and you have to understand them,” says the experienced manager. “I would like to make MTX Group a holding company full of opportunities and professionalism associated with Czech as well as global growth and make it a part of global business that stands on Czech traditions, know-how and experience. I’d like to move this brand further into constant and long-lasting competition, where the only thing that counts is the result. To have the ability to perceive, to have an eye for detail, while being able to look at things from a broader perspective. Our competitors do not sleep, so we must both focus on the details and look at the big picture,” adds Záhorec.

the director, praising his co-workers. Thus, hard work and diligence are sought-after traits in the group’s management. “No manager is perfect, but there is always room for improvement, and managers need to know how to keep developing and how to be good leaders. As a group, we must be able to boost areas in which we do not excel,” Záhorec reflects. “We are not one of those companies that goes home on Friday after lunch and that resolves things remotely from home or that talks things over during long lunch breaks,” he smiles. And he adds that a systematically hard approach, respect for tradition and hunger for development are things that can motivate people to work for MTX Group. It is simply a “traditional” group of engineers and businesspeople who are aware what the group is based on. “Some of our companies are 100 or 200 years old, and when you learn their history, you are grateful for having the chance to develop the company further,” adds Záhorec. Tradition is binding but not limiting, he says. “For us, tradition definitely does not mean stagnating or using old things and procedures. On the contrary, we like to look ahead like our predecessors did, and innovate to maintain this tradition for future generations,” he notes, explaining the basic philosophy of MTX Group companies.

It is motivating for the employees and management that we can react quickly and approve innovations fast

MTX Group through the eyes of its CFO and COO, Miroslav Záhorec According to Miroslav Záhorec, MTX Group is a strong commercial and production holding that places an emphasis on the development of its subsidiaries and their production capacities, so that they become state-of-the-art factories. The group specializes mainly in the aluminum industry and packaging, where it sees great prospects for the future. The subsidiaries are relatively autonomous and do not compete with each other on the market. Synergy can be found in management and sales, where METALIMEX can provide a number of services for other companies in the group, from the supply of commodities through the sale of their products to exchange rate hedging and other services. “Each company in the group is completely independent and must be able to develop on its own. As a group, we want to develop not only through the organic growth of our companies but also through acquisitions,” says Záhorec and adds: “We focus a lot on aluminum, as it is a highly promising material in many industries, from the automotive industry, through construction to packaging. It recycles well and is one of the drivers of the circular economy.”

Sustainability is the way to go

He says people think the manufacturing industry is a tough business, which it sometimes can be. What Záhorec disagrees with, however, is when people say that manufacturing industry cannot be sustainable and follow modern trends. “Several examples exist that prove that this can be done. And it’s not just companies in our holding,” says Záhorec. He believes the environment and sustainability are essential priorities for every MTX Group company. “All of our firms meet all environmental norms, and we even go beyond them and invest to reduce our environmental impact as much as possible,” he says as the CFO. He admits some plants are more modern in this regard than others, such as those manufacturing food packaging, while others, such as coke plants, may lag a little behind. “In recent years, OKK Koksovny alone has invested billions of Czech crowns to become more sustainable. We want to be as green as possible; it is important for us,” explains Záhorec. Sustainability was why MTX Group focuses on aluminum so much. It has several environmental benefits. It is easily recyclable. Aluminum products are light, which means less transport emissions. To reduce car emissions, for example, vehicle manufacturers use aluminum components. The CFO says the group wants to invest in recycled aluminum even more. “When you use

less primary aluminum and increase the amount of the recycled one, you significantly reduce your carbon footprint,” explains Záhorec. Yes, steel is also recyclable, but unlike aluminum, it does not offer other means of reducing emissions. However, it is not aluminum alone that makes our carbon footprint low. MTX Group, for example, has invested and will continue to invest considerable resources in the development and maintenance of its plants – for example in Strojmetal, where Záhorec works as a CEO and which manufactures aluminum suspension parts. “When we took over the factory from the former owner and gained full control of it, we started to transform the firm. We wanted to change the company culture, from a firm that used to be managed by one person to a firm with established rules and procedures,” Záhorec says, adding that it is definitely not about making the establishment more “corporate”. “But it is important to establish responsibilities and new ways of motivating people to develop further. We care about employee loyalty, about maintaining integrity, and we want to be a customer-oriented company that produces profit. We want to have meaningful and sustainable products and follow the rules for environmental protection,” explains the group’s CFO and COO.

Strojmetal

We want to be good neighbors, and we invest beyond our legal obligations

Growth on all levels

Záhorec uses Strojmetal as an example of how the whole group is making an effort to be a good neighbor. “After we took over the company, we started to decrease the noise levels it generated. We had to manually go through rooftops of all our plants,” he says with a smile, adding that he himself participated in this inspection. “We are doing this everywhere. We meet all legal limits and overall, as MTX Group, we invest in soundproofing and environmentally cleaner production significantly beyond the scope of our obligations. We really want to be a good neighbor,” he explains. “On the other hand, the Strojmetal factory was built in 1822 and for many decades has provided a livelihood for locals and sponsored many local activities. And I feel like people sometimes forget that. Today, almost everyone wants to drive a car, but they don’t want it to be manufactured. The same goes for our coke plant, the AL INVEST factory and our other operations. From this standpoint, the current situation is slightly strange,” Záhorec suggests, saying he does not agree with some current social trends. That is why MTX Group is also looking for ways to expand in areas other than the traditional ones. For example, Strojmetal is developing a new plant in Bruntál, where the company is installing two forge lines and a brand-new machining line. “We would

like to use our aluminum forging expertise and develop it further. We need a new space for that, which is where Bruntál comes in. We want to produce high-end machined forgings that will satisfy even the most demanding clients, such as Mercedes-Benz, Porsche or BMW,” says Záhorec. “The group wants to move away from supplying semi-finished products to become a supplier of finished components and products with added value,” adds the Group’s CFO. MTX Group is planning several investments. For example, the group will expand the AL INVEST Břidličná plant, a major European and largest domestic producer of packaging and rolled aluminum intermediate materials. It is exploring the possibility of using recycled aluminum in food packaging. Packaging is also developed at TAPA Tábor. For example, Měď Povrly will expand its production capacity. However, the group does not invest only in production facilities. “Recently, we have invested significantly in information systems and cyber security,” says Záhorec. “It was our own idea, and we see that it has paid off. We are prepared for cyber threats that at some point could cost us a lot of money and hard work,” he suggests, adding the group has managed to successfully identify a relatively critical area.

polečnosti

OKK Koksovny

Coke is still indispensable. We manufacture it using cuttingedge technology. This spring, after seven years, Zdeněk Durčák left the position of Executive Director of OKK Koksovny. The manager, who has fundamentally transformed the company, wants to enjoy some well-deserved peace of mind. “I’d been there a long time,” he says with a smile. When handing over his position, he gave an extensive interview in which he describes the transformation of the company and the specifics of the coke business.

Written by: Jan Sedlák, photography by: ICE Industrial Services archives

deněk Durčák remains a member of the Board of Directors at OKK Koksovny and is also the Chairman of the Supervisory Board at MTX Group, to which the coking plant belongs. “I have been running the coking plant since 2014 and am leaving at my own request. I want to pass the baton to the younger generations,” he says, suggesting he is going to rest now. “But you never know, maybe I’ll get tired of it soon, so I wouldn’t call it a definitive retirement,” says the manager with more than thirty years of experience. He joined the coke plant after the company became part of the MTX Group. The group owners chose him as the ideal candidate to guide the company through a fundamental transformation.

How is a coking plant restructured? It was quite a complicated task, and we were sometimes surprised at how many things had to change. In a way, it was standard restructuring, but as always, with certain specific circumstances. And yes, we

Zdeněk Durčák He has been working in the coal business for over 30 years, starting at OKD in the export team, and later also worked for METALIMEX. In 2014, at the request of the Otavas, he accepted the CFO and COO positions in OKK Koksovny when MTX Group took over the company. “I was supposed to stay here for about a year and make major changes, but in the end, it was longer,” he says commenting on his work at OKK. Under his leadership, the company underwent a fundamental transformation and, despite the traditional sector, it has become a modern and flexible company. He has always had a strict and tough management style, but he always wanted to play fair. “Today, it sometimes seems that decency is a handicap. But that‘s wrong,” he argues, outlining his principles.

had to lay people off. When I started, about 710 employees worked for the coking plant. Now the number is under 500. We are doing the same amount or even more work, just in a much more compact way. Of course, letting people go is never pleasant. Nobody likes to do it. Those employees have families, mortgages and other needs. But the coking plant in Ostrava was called “the last socialist company”; we had to change that. Positions that had been there from the start, such as sign painters, have no place in the 21st century. Of course, there were other changes as well. We had to change processes, and we introduced new, successful cost control measures. We replaced almost every manager. Some of the new people are very enthusiastic about the plant. A solid team, effective communication and broad knowledge. Those are the basic pillars of a functioning company, I believe. In the first year, we saved about 250 million Czech crowns in costs, which greatly helped stabilize the firm. We became a competitive company. Thanks to this restructuring, we survived the challenging times that the following seven years brought. Without it, OKK would no longer exist today. One thing that did not fundamentally change during the restructuring was production itself and the structure of our products. Can you describe some specific changes in how the company operates? We started purchasing using the Proebiz auction software, gradually introduced electronic tenders for all of our purchases, and concentrated on digitization and streamlining internal processes. We also focused on preventive maintenance. We made a reasonably detailed record of all devices in IS KARAT, and we track all (internal and external) costs associated with operating them. However, we are still working on improvements in this area. We are trying to understand why malfunctions arise and how to prevent them and intervene in time. And you know Murphy’s Law – when you are

working at maximum capacity and you can’t meet customer demand anymore, something is definitely bound to break. We don‘t want that to ever happen and are trying to minimize these risks. Today, we are a modern company that, despite its tradition, follows modern trends and uses cutting-edge technology. Many visitors from abroad who come for a tour are often shocked by what they see in our coking plant: cleanliness, order and clear organization. We are a stable company, and our loans for acquisition have been paid. Would you do anything differently today in the restructuring? Yes, certainly. I would definitely be quicker in taking some steps. Which ones? I would introduce management changes even faster. Without people, you can try to do it all by yourself and go crazy, but you won’t push the company anywhere. For example, we have spent a lot of time on cargo loading, which used to be done the old-fashioned way, where you would load the coke on a wagon and take it to a stockpile. There, it would be loaded onto trucks. But this means a lot of extra handling which is not free of charge and compromises the coke, generating a loss. The investment in a new loading method completely on site, which the new production director initiated, was then paid for in eight months. Was MTX Group looking for any synergies as part of the restructuring? Are they even possible for a coking plant, given the nature of other companies in the group? We have synergies with METALIMEX, our “department store”, which buys coal for us, sells our coke, and deals with logistics. The company has an experienced sales team for this job, and it also supplies these services to other companies outside of the MTX Group, which is particularly important for the economy of OKK Koksovny.

OKK Koksovny

What does the coking plant product portfolio actually look like? We are the largest producer of foundry coke in Europe, we have a capacity of 800,000 tons of full coke per year, and we have four coke oven batteries with 210 chambers. Our foundry coke is mainly used in foundries for the automotive industry and for the production of stone wool, which is now used as a high-quality and environmentally friendly thermal insulator. We are indirectly improving the environment. However, we also have other production programs – we produce blast-furnace and heating coke, too. In recent years, for example, we have become the largest supplier of heating coke for European sugar factories requiring coke for their sugar production technology. What is your position on the global market? Europe produces about 1.3 to 1.5 million tons of foundry coke,

of which we produce about 20 to 25%. But the interesting thing is that we are the largest importer of foundry coke to the USA. For several years in a row, we have been exporting about 45,000 tons a year there, which is a significant volume for us. We have established ourselves very well on the American market. It helped us that, even under President Trump, coking plants in the U.S. have been shutting down for environmental reasons, because their plants applied, in comparison to us, very few environmental measures. They received deadlines for investing in greener production or they had to close their gates. Surprisingly, some coking plants in the U.S. have chosen the latter option, showing how challenging this business is. But for us, it was a boost, of course. But the Americans did not trust our coke at first and were testing it for a very long time. Our coke is smaller than theirs. And they were completely shocked that they needed less of it compared to their original one. They were constantly testing

H We are looking into producing hydrogen as a byproduct of our operation.

it and looking for a catch. But today, we have regular customers in the U.S., and we ship there frequently. And what about the other side – where do you get your coal? Coal is of course our main ingredient; it accounts for most of our production costs. But part of them also includes transport. There are many types of coal in the world, and those we need come from abroad. Currently, we import coal from America because we simply can’t buy such fuel in Europe. It’s not mined anywhere here. Basically, we are constantly looking for the optimal composition of the charge. For example, we’ve been testing coal from Australia or Russia, and now have coal from Mozambique, so we are constantly on the lookout. We keep adjusting the composition so we can come up with the best quality to cost ratio. That sounds like alchemy... Yes, it is an extremely interesting job. It starts with obtaining certain coal parameters from a potential supplier. Each parameter is important for a certain part of the production program. To put it simply, we need one type of coal to make foundry coke and another type to make blast-furnace coke. If we decide to try some coal based on these parameters, we order a sample that can weigh just a few dozen kilograms. We analyze the sample in our laboratory, verify the parameters and then order a train full of it for a test, and the figure is around a thousand tons. We then experiment with this coal in our coking plant and test different ratios, replace one type of coal with another, and so on. Of course, we monitor what it does to the final product and how the parameters correspond to what we need. I like to say it’s with almost pharmaceutical precision. In addition, it’s a job that we will do here forever – the pressure on quality from customers is high, and since coal is a natural product, its quality,

albeit from one source, also changes over time. If this “disturbs” the parameters, we need to immediately react. So, it’s definitely not boring. Although coal is increasingly less popular, we make it a product with added value that is still an essential raw material for many industries. But you’re facing pressure because of environmental protection. Is the coking plant environmentally unfriendly? Of course, we pollute the environment to a certain degree. However, we have invested hundreds of millions of Czech crowns in making our operation greener, and we continue to invest in doing so. We are fully aware we are located near the city center, and we are trying to improve our operation way beyond what Czech and European regulations require from us. We meet all norms and requirements, we are far below the limits that apply to us, but this is still not enough for us. We closely cooperate with the Ostrava Municipality and have a “voluntary agreement” with the Moravian-Silesian Region, which go beyond our obligations. We contribute to cultural events, fund sport teams, and help recover various areas with a historically poor carbon footprint. We are not trying to redeem ourselves. We just want to be a good neighbor. But I do have to admit I sometimes don’t get some modern trends. People still want products made from our coke, whereas others want to completely stop coke production. However, we use cutting-edge technology, are a real leader in our field, and do everything we can to maintain our operation meaningfully and sustainably. Because it is very demanding. You can’t just relocate a coking plant. It’s a vast complex that runs 24/7 all year long. Our batteries need to maintain a certain operating temperature – as soon as it drops, that battery basically breaks down. Building a new coking plant from the ground up would be nearly impossible. Even though the carbon footprint is no longer so bad. For example, Ostrava

OKK Koksovny

Coke production in a nutshell The main step is mixing the right types of ground coal. The exact ratio is a secret recipe. This mixture is called coal charge, which then travels to the chamber. There, the coal mixture is carbonized, ideally for 32 to 36 hours, where it turns into coke, which is then pushed out in the form of different fractions. Anything up to 10 millimeters is called coke dust. Blast-furnace coke has a grain size of about 25 to 80 millimeters, and the best foundry coke has a grain size of over 100 millimeters.

Annual production of OKK Koksovny 450,000 t

400,000 t

350, 000 t

300,000 t

250,000 t

200,000 t

150,000 t

100,000 t

50,000 t

0 t Foundry coke

Blast-furnace coke

Heating coke

Coke dust

recently has built a new measuring station behind the coke plant, in addition to the one in front of the coking plant. Since last February, the data shows the coking plant may not be such a problem as people see it after all. And that pollution will probably also come from different places. Times have changed. In the past, when it snowed in Ostrava, the snow would turn black in just a few minutes. We have made a tremendous progress in this regard. But that doesn‘t mean we are going to stop investing in making our operation even more environmentally friendly. What is the key to reducing environmental impact? The maintenance mentioned above has an enormous impact. We invest a lot in repairs. Ideally, no leaks should occur, and no smoke should be emitted. Our 210 chambers are 210 potential leak risks. We have a great team headed by our CTO and production manager, who keeps an eye on potential risks and is ready to respond immediately. However, we are investing in other things, too. Recently, we modernized our dust collecting system and invested in our coarse and fine coke sorting plant, which in addition reduced the amount of particulate matter in the air. Thanks to automated riser cleaning, we’ve also eliminated occasional smoke. And we are trying to work with our byproducts a bit better. What are the byproducts and how do you handle them? Tar, sulfur, ammonium sulfate and benzol are formed during coke production. We sell all of these for further use. The most important byproduct is coke oven gas, which we reuse to heat our batteries; the surplus is burned in our customer’s heating plant near our coking plant. More importantly, coke oven gas has a high hydrogen content, over 50%, so we are looking into ways of using it.

And how would you like to use hydrogen? Personally, I believe hydrogen is the fuel of the future, despite the current preference for electromobility. Therefore, we decided to explore the possibility of hydrogen production. We are a member of the hydrogen platform, and since last year, we have been working with the Technical University of Ostrava to research ways to separate hydrogen from coke oven gas. It is a three-year research project, and if it helps us find an economically viable way of separating hydrogen from the gas, we are open to it. While this would somewhat degrade the coke oven gas, we would obtain green fuel that has an interesting future in return. It is possible to make electricity from coke oven gas by cogeneration and to produce hydrogen using electrolysis, but these are more complicated. The advantage for us would be that we would have been able to offer hydrogen at the plant, which would eliminate complications with transport and storage, which are currently probably the biggest obstacles to this technology. Ostrava wants to become a “Hydrogen Valley” of sorts, so hydrogen-fueled buses could obtain their fuel directly at our plant. But it would still be hydrogen from coal… Yes, we aren’t pretending the hydrogen is clean and from renewable sources. On the other hand, it is one of our potential byproducts that can be further used in a very environmentally friendly manner, and we want to use our products in a meaningful way. If we produce hydrogen, why don’t we do so in the most environmentally friendly way possible? And of course, it would be another interesting source of income for us, that’s for sure. Do you think this is also a way of extending the life of the coking plant? I don’t think so. We can only make hydrogen if we produce coke.

OKK Koksovny

We are the largest supplier of heating coke for European sugar factories

And as for the service life of the entire plant, that is a big question. It all depends on the service life of our batteries. We have a new one that can last for 40 years; three older batteries can have a shorter service life, but with good maintenance they, too, will last a long time. However, the service life is affected by a number of factors that we can’t completely control. It depends on the demand, for example. If it’s high, that’s good for the battery. But when it’s low, one way to slow down production is extending coking time from, say, the standard 36 hours to 50 hours. And that is not good for the wall of the batteries. And has OKK ever had a “tough time” under your leadership? Yes, of course. After we finished restructuring, we struggled for a while and thought we would have to close shop in six months. The reason was the acceleration of the whole coal business over the past two decades. Back in the day, coal and coke prices were negotiated once a year. Today, the prices are negotiated quarterly, which is much more difficult, and it can mean unexpected fluctuations. At that time, at the end of the quarter, when we already had negotiated price of coke, the price of coal skyrocketed. There was a hurricane in Australia and a geopolitical shift, which jacked the prices up, even though we were not affected by what was happening in Australia. But in the end, we endured, the situation calmed down, and we came out of it more experienced and stronger. I am really pleased with the way OKK Koksovny works today and would like to thank our senior management and all other colleagues and coworkers. We have done a lot of good work. But we must not rest on our laurels and must keep working on further development.

MTX Group through the eyes of Zdeněk Durčák “First of all, I must emphasize that this is a Czech group with Czech capital and a completely transparent and responsible owner who has a clear vision. I think everyone at MTX Group can be proud of it, and I am incredibly happy and honored to be part of such a group,” says Zdeněk Durčák. He thinks the group is built on the traditions of its subsidiaries, and it also respects them. Durčák says that MTX Group prides itself on choosing its employees well. “I’ve always said business is all about people, and I know people in the MTX Group know that very well,” he says. In addition, he appreciates the group for trying to minimize its carbon footprint. “A number of projects are focusing on this, and it is good that the group is doing it. It’s not just about fulfilling obligations, it’s about the fact that the world has changed, and respecting nature has become one of the main pillars of business,” says Durčák.

The smallest coal in the world: Coal Mill makes unique multidust Black coal is a traditional energy commodity, but it has recently been used less and less in the manufacturing industry due to the need for reducing emissions. But there are still some applications that require black coal, even in its special form: as coal dust. In the Czech Republic, this product is made by Coal Mill of the MTX Group. Its products are used by industries that still completely rely on coal dust. However, the company is also trying a new generation of products, which will make it less dependent on coal. Written by: Luděk Vokáč, photography by: Barbora Mráčková

t its plant in Dětmarovice, Coal Mill manufactures products called CF1 and CF2. CF stands for carbo-fuel, which is basically nothing more than ground coal. It is ground so finely it becomes basically a liquid, which is an essential property of these products that are also sometimes called hard coal multidust. But you cannot actually see this ultra-fine dust anywhere at the Coal Mill plant – unless you come here during the regular overhaul, which takes place once every three years, during which the machines are disassembled. “The powder is very fine, but it can sand almost anything like sandpaper," says Coal Mill director Petr Labuzík. Therefore, it is necessary to disassemble everything once every three years, replace the worn parts (such the giant grinding pendulum and the grinding circle in a concrete bed), reassemble everything again and weld it carefully. The routes through which the powder travels and where it is finally stored (two silos in the area) must be sealed perfectly.

Coal Mill

You actually cannot see our dust anywhere in the plant

Heat, dry and grind

The carbo-fuel production process seems simple, but it is extremely important to ensure the safety of the entire process. There are literally tons of dust produced, with a grind size of 90 micrometers. The giant mill grinds 40 tons of coal per hour, and we can process up to 180,000 tons of material. One pendulum alone weighs one ton. The strict production demands relate to the fact that this is a truly “heavy” industry. Carbo-fuel products are made from hard coal, which must be dried first. “If we started grinding coal when it arrives, it would not work; we would basically end up with a sludge,” says Labuzík. The reason is simple: coal contains about 10% water. So, the first stage is drying the coal. It is heated by gas burners to slightly over 100°C, which means water evaporates from the coal. This also creates an inert atmosphere. “CO2, which is produced by burning gas, displaces oxygen; its share in the atmosphere drops to about 15%,” says Labuzík. Another thing that helps keep the oxygen levels below 8% is the water vapor emitted from the coal. “But even that would not be enough, so we add water into the process, which evaporates, and thus we obtain the oxygen content below the desired limit,” explains Labuzík. The dried coal is first ground coarsely and then finely in a giant pendulum mill. A stream of inert gas that was created in the drying process separates the fine powder from the non-ground coal. The stream then carries the grains away from the grinding site, and they are separated in a cyclone and finish up in a silo, again full of inert gas. The product is then filled into tankers – truck or train – under careful supervision. A railway is located in the area, so the delivery of raw materials and the dispatch of products to customers can be done fully by train.

90 µm Hard coal multidust has grains with 90 micrometers in diameter

Specific applications

A sizable number of our customers who buy carbo-fuel are limekilns, because they use it as a fuel source to make lime. Yes, there is a demand for alternative energy sources, but it is not easy, technologically speaking. “Lime tends to absorb all the impurities; therefore, it is used for example in desulfurization in power plants, and so it is not possible to heat it with any fuel, not even many biofuels, during its production. Among the limekilns that use fuel from Coal Mill are the Carmeuse group and Vápenka Vitošov of the CRH group. They either use gas or our ground hard coal, which has a sulfur content below 0.5%, so lime does not lose its purity and its properties,” Labuzík explains. Coal powder is also used as a necessary technological component of production elsewhere. For example, carbo-fuel is applied in metallurgy, where it is used in blast furnaces to heat raw iron during tapping (discharge from furnace), so it keeps its optimal properties. “Our ground coal has replaced reduced crudes, which used to be injected here until now, and has more emissions, especially pollutants,” says Labuzík. “Our fuels burn very easily and efficiently. They can convert over 90% of the stored energy, which means they have a smaller carbon footprint than, say, natural gas,” he adds. Steel mills across Europe use injected powder for heating and the multidust from Dětmarovice is shipped to US Steel Košice or ArcelorMittal in Poland, among other places. Applications in the automotive industry are interesting, too. Besides CF1 and CF2, Coal Mill also makes something called NAYVOC. It is a special mixture of coal, coke and anthracite dust developed in cooperation with the Swedish national institute Swerea, which is used by the Swedish car manufacturer Volvo Group (manufacturer of trucks and buses). They add NAYVOC to their foundry sands. When casting grey iron parts, NAYVOC acts as a reducing agent to capture harmful substances that are formed during this process and must not escape into the air. Ground hard coal thus contributes to more environmentally friendly production. Chemical plants and other plants are among Coal Mill’s customers.

Alternatives for the future

However, Labuzík is aware that the coal products that Coal Mill produces do not have a bright future ahead of them. The company is looking for further opportunities to apply its technology and experience in the future. “Last year, we started experimenting with grinding blast furnace slag, which in ground form is very often used in the production of concrete,” says Labuzík. “In addition, we will also try to process the bottom ash that is produced when coal is burned. We will try to grind it, and it has the potential to be used in construction,” the Coal Mill director adds. “We work with Brno University of Technology, for example, where they are researching what else can supplement or replace cement, and we are therefore looking for other alternatives to materials we could use our capacities for in the future,” concludes Labuzík.

Coal Mill Petr Labuzík He graduated from VŠB – Technical University of Ostrava, coincidentally with the current owner of MTX Group, Petr Otava. Both finished their studies in 2000; a year later Labuzík joined METALIMEX after working in the paper industry. In fact, he has been working for MTX Group for over 20 years. He traded coal and gradually took over various responsibilities and positions. Labuzík was in charge of selling coal to foreign customers. In 2006, another former classmate who worked in the lime industry was looking for coal dust. “Back then we had coal dust as a commodity; more precisely, it was called coarse dust. I sent it to him, but I immediately learned that it wasn’t what he needed and that he needed what we produce today,” says Labuzík. “Nobody offered or knew this product here, so we decided to seize the opportunity and build Coal Mill,” he adds. The company was founded in 2007, and delivered the first ton of products to customers in 2009.

When it comes to copper, there is not much competition

Měď Povrly

Měď Povrly specializes in copper and copper alloys. It is not well-known in the Czech Republic, but the factory in Povrly has a long and varied tradition. And it is an important part of MTX Group. The company has established its place and is preparing for the future. Written by: Luděk Vokáč, photography by: Barbora Mráčková

perating since 1898, it has over 123 years of tradition. Historically, the factory has manufactured a variety of products from copper and copper alloys. However, since 2007, when the company became part of MTX Group, and especially after 2009, the focus of production has narrowed to one specific field: semi-finished products for ammunition production. There are lots of fascinating facts about the portfolio. “We used to make sheets for producing cymbals. Also, one of our current clients is KOH-I-NOOR, which uses our materials to make stationery and parts of automotive locks,” David Kozel, director of Měď Povrly, says. He adds that the company wants to stay up to date and that fits in well with the ethos of the MTX Group, which gives it the necessary stability in return.

Last year was about uncertainty and this year is about shortages and high demand. How are you handling it? We handled last year very well. Our employees deserve a big thanks for this because they were disciplined and followed all the restrictions and measures against Covid-19. Therefore, there was no spread

of the virus in our factory. Some of our employees got sick, of course, and we struggled to keep our production running, but it wasn’t anything serious. Communicating with customers who worked from home was sometimes complicated, and logistics was a bit more difficult, but we managed. This year, we feel pressure on two fronts. One is the increasing price of input materials – in our case raw copper. The other one is the increasing demand from clients. In June, we were discussing our capacity for next year, and we are basically fully booked until the end of this year. Being a member of MTX Group helps us with the rising cost of copper. It gives us the necessary stability, so we can handle the situation. If we were on our own, we would probably be much worse off. Another company in the group, METALIMEX, buys raw ingredients for us and sells our products, and it is a great partnership. Being part of the group will definitely help us develop in the future. Of course, we want to expand our capacity. We are considering joint investments with other members of the group, such as a project we are discussing with AL INVEST Břidličná. It is an important partner of ours when it comes to maintenance and overhauls of our equipment.

MTX Group through the Eyes of David Kozel “I think that MTX Group is quite dynamic and fast, and that may not be easy for some managers to work in this environment,” Kozel says, describing his feelings about MTX Group. “But it suits me very well here, both personally

What and how much are you currently manufacturing? Our monthly output is around a thousand tons, a number we have been successfully meeting since last summer last year. We make around 700 tons of rolled sheets and over 300 tons of “cups”. We mostly manufacture a specific type of brass that is designed for deep drawing and the arms industry. Sheets and cups are used to make ammunition – cartridges, bullets and primers. Is it a very specialized process? Yes, it is. Just making the brass in the required quality is very difficult. We have melting furnaces that can exceed 1,000 degrees Celsius, and we are working with relatively large volumes, weights and expensive material. Plus, our products need to have high material purity and, above all, a perfectly homogeneous structure and thickness. So, our production is demanding both physically and professionally. I greatly appreciate the work of our employees in this regard. They usually remain loyal to us, so we can rely on their experience. Since our production is extremely specialized, we don’t have many competitors in Europe. There are just a handful of companies with a similar production program, technology and experience. It might seem this is a big advantage for us, but it has its pitfalls as well. In fact, we compete with our rivals in a closed market, where a good reputation is very important. We are doing quite well in this regard, despite being a relatively small company. But this gives us the advantage of being flexible and dynamic, which is something we want to build on in the future. Also, another advantage for us is that we are located between Eastern and Western Europe.

and professionally,” he adds. Kozel believes the group is a fitting example of how Czech industrial companies can operate. “Czech industry is strong in principle and has enormous potential, but historically there has been a lack of managers with the necessary experience and management style these companies need. That is exactly what MTX Group has to offer, which means it can be an example for other industrial companies as well,” Kozel says. He explains that MTX Group is full of significant, large and successful companies is not a coincidence, but the result of hard work.

How do you want to develop your production? We want to develop on two fronts. First, we want to modernize our production overall, and we also want to make better products. Of course, modernization is already one way to make better products. We want to produce materials with even higher quality, a higher degree of purity and a more stable structure. When it comes to cold rolling, we can improve our current equipment. We have started

Měď Povrly David Kozel After working for a long time as a corporate manager, he likes to say that he does not want to work for another traditional corporation. “Given its size, MTX Group definitely is a corporation, but it operates very differently from its traditional counterparts. And it suits me very well here,” says the director of Měď Povrly. He joined the company in January 2020. “I was planning to work in Povrly for a relatively short time. I was given a specific assignment to kickstart changes, but during the course of our work we agreed with the group management that we would work together and that I would stay here longer,” says the manager, who commutes to Povrly from České Budějovice, where he lives with his family. Kozel is also the Vice-Chairman of the Supervisory Board of Strojmetal Aluminum Forging and its CTO.

We have been planning our capacity for next year since June. Now, we are fully booked until the end of the year.

working with universities and have come up with a three-year program to improve rolled coils. As for our hot rolling mill, we are considering a complete modernization. We are considering joining forces with AL INVEST Břidličná. These are the largest and most expensive machines of our rolling mill. To continue growing, we will invest in melting, so we can cast more melt, and we will also definitely invest in pressing in the cup plant. We want to become a modern high-capacity cup plant and take advantage of having a metallurgical operation in the same complex. Making more cups is another way we can make products with higher value. Another area we want to develop is recycling. For example, we buy metal sheet waste from our clients. These sheets are very pure, so we know we can use them again. We are intensively focusing on how we can recycle as much copper and brass waste as possible and how to turn it into high-quality brass sheets. What is the environmental impact of your factory? Of course, we try to minimize this impact. We operate electric melting furnaces, so we can use clean energy for basic melting. We are con-

sidering investing in solar panels on the roofs, which would generate our own clean energy. In addition, we use natural gas before rolling or for annealing, for instance. That is also a relatively clean energy source. We do not pollute our surroundings with emissions. We are close to a residential area, so we want to be a good neighbor. A major issue with industrial operations is often noise pollution. In our case, charging the furnace is very noisy because we work all day long. We are trying to work out how to soundproof this part of our operation so we don’t disturb the neighbors – especially in the summer, when people leave their windows open at night. In general, we cooperate with the local municipality and are very open to ideas. For example, together with the mayor, we invited locals to look inside our plant to see what we do and where the noise is coming from. We are also trying to organize some events to be more involved in the community. We are thinking of making our cafeteria public or offering to improve the public spaces in the community. Covid really affected this, but let’s hope things will get better.

Měď Povrly The company has a long tradition of making rolled copper and brass semi-finished products in the Czech Republic. The firm manufactures mostly sheets, strips, rolls, cups and roundels, all of which are very important for numerous industries. The current product range is divided into three segments: roofs, industrial, and ammunition. Měď Povrly supplies products domestically as well as globally. It is also one of the major employers in the Ústí nad Labem Region.

ICE

Billion-dollar investment in line automation will pay off in a few years When you travel to the Vysočina Region through Žďár nad Sázavou, you drive past a billboard featuring a superhero. It belongs to ICE Industrial Services, which is based in Žďár and has a long industrial tradition in the region. The company culture is inspired by start-ups, and the firm attracts a huge number of jobseekers. “During the pandemic, we had more than two thousand applicants,” says ICE founder and Executive Director, Tomáš Vránek. Written by: Jan Sedlák, photography by: ICE Industrial Services archives

he Žďár-based company specializes in automation and robotization and has branches in nine other Czech cities. When it was acquired by Strojmetal, it became a part of MTX Group. “We founded ICE with a financial investor, which we outgrew relatively quickly. Strojmetal has helped us develop and allowed us to start bigger projects. When it joined Petr Otava’s group, it was an incentive to keep growing. Now, we are working on how to connect ICE with the whole group and use our expertise in automation and robotization,” Vránek says.

Strojmetal was first your client for automation. How far did you come? Strojmetal’s operation is built on automation. We robotized several production lines there. It was a lengthy process, in which robots were gradually deployed in existing lines. New investments are already fully robotized. We can now confidently say that Strojmetal has one of the most modern forges in the world. Its main product are aluminum chassis parts for luxury car manufacturers. Strojmetal is one of the biggest manufacturers of these parts in the world. Its input materials are aluminum bars that are automatically cut, heated, rolled, and transported to a press for further processing. This allows it to form into the desired shape of the chassis arm. Strojmetal has expanded its production with automated milling and also offers chassis assembly. How long does such a transition take and how much does it cost? The core of Strojmetal is based on new lines. Automating a large line takes about a year to a year and a half. It starts with a feasibility study, then you design an automation strategy, create a technical concept and continue with development, construction, production of individual parts, assembly, programming, and starting. One such

DataICE improves factory management According to Tomáš Vránek, factories rely heavily on data. That is why the firm developed its own software, DataICE, which both collects data and evaluates it. This allows companies to decide if they will or will not automate. “We can extract information from old and new machines (PLCs), IT systems and databases, and display it directly on the line, in the cloud or on smartphones. We can detect trends and so on,” Tomáš Vránek says. His company, ICE Industrial Service, employs 70 programmers, so it is the largest team of automation programmers in the Czech Republic. “We also have a team of database specialists because a large part of the production lines is connected to corporate networks. Data is at the beginning of all management, so it will really be like the next oil,” Vránek adds. As for data storage and processing, Vránek says most customers still do it locally and that many people have doubts about the security of cloud data storage. “Personally, I think Google’s data centers are much more secure than the best-secured local server rooms. It’s the same story as whether your money is safer in the bank or under your mattress. In any case, we always try to respect the wishes of our customers,” Vránek describes. Recently, his company had been trying to get into industrial cyber security. Vránek believes cyberattacks will become increasingly common. “I like to compare it to health. People often don’t care about their health until they get sick. Threats are underestimated, and when a cyberattack comes, enormous resources are invested in remedying the problem. At MTX Group, however, digital threats are taken very seriously, and ongoing steps are being taken towards greater security,” Vránek concludes.

line can cost around one-half to one billion Czech crowns. We expect to have a return on this investment within a few years. Are you working on similar projects for other MTX Group subsidiaries? We haven‘t done projects as big as Strojmetal for other MTX Group subsidiaries. But we do work with the group. For instance, we have collaborated with AL INVEST Břidličná and Měď Povrly, and we are discussing other projects as well. Several of the Group’s factories are undergoing reconstruction, and we are trying to help them modernize and streamline production. I see this as a long-term process. It won’t be anything quick. You are attempting to introduce cooperative robots in production. Is it already time to deploy them? Cooperative robots can work in the presence of a human being. Normally, robots must be strictly separated from people to maintain work safety. The robots’ cooperative counterparts are still at the initial stages of development and are not reaching the performance level of classic robots. For example, Strojmetal Is involved in heavy equipment operations with hot parts. There is no room for cooperative robots here. But we designed these machines for other customers. For instance, Valeo uses it for folding air conditioners. What are the current limitations of these robots? They are more expensive, slower and do not have such a load-bearing capacity. When working with a cooperative robot, you need to consider the object it carries. We have designed a machine that handles sheet metal. When the robot holds the sheet, it’s like a razor. It is difficult to get security certification for these installations. Cooperative robots are the future and are constantly evolving, but this field is still in its infancy.

ICE

Fighting automation today is like fighting industrialization three hundred years ago.

Is this an obstacle to establishing fully autonomous factories? You only see fully autonomous factories where there is a lot of money. Daimler has an E-Class Mercedes-Benz line that is heavily automatized. The same goes for other car manufacturers, too. Making a fully independent factory is possible. We like to say everything can be automated. It’s just a matter of cost. Fully automated factories must produce a lot. The disadvantage of automation is that it can only produce a limited number of products without the line being rebuilt. When a Strojmetal line is making a chassis part and you want to switch it to make engine blocks, it takes half a day to reset all the parts, arms, and software. We could design robots that would reset other robots, but doing would be significantly more expensive than with human labor. ICE represents a new generation of Czech industrial companies with high added value. How does Czech industry in general compare to that of Germany and other developed European countries? The Czech Republic is doing well and is comparable with neighboring countries. We maintain a reasonable level of engineering production. You can see a difference between large car manufacturers, whose operations are almost fully autonomous, and smaller subcontractors. Personally, I see social responsibility as a big topic. Because of the pandemic, everyone is saving money. But there should be other motivation for automation than purely return on investments. There are jobs that people shouldn’t do, which should be done instead by machines. Even if a person would do it cheaper. It’s mainly about the protection of health and safety. People probably often tell you that machines take jobs from people. What is your general answer to that? That without automation you will only be a cheap assembly plant?

This is my favorite topic. All our customers complain that they have a shortage of people and need to recruit from distant locations abroad. The fact that instead of buying a robot for several hundred thousand Czech crowns, someone prefers to bring several people from the other side of the world, is detrimental both to their factory and our country. It only serves short-term profit. Fighting automation is like fighting industrialization three hundred years ago. At the beginning of the twentieth century, a large percentage of people worked in agriculture. They would have never thought that one day, it would be just two percent and that there would be completely new professions, such as programmers. Development creates new jobs. To do more skilled work and leave some jobs to machines, you need education. What do you think about this from the position of an employer? Education in the Czech Republic is not good, and we lack support for technical education. Everyone is talking about it, but nothing ever happens. That is why private companies had to take matter into their own hands. We ourselves helped to establish the Na Radosti Elementary School, which teaches on the basis of projects and not rote learning. We try to get involved in elementary education. A number of companies work with universities because they see an easy way of recruiting graduates. We think it is necessary to inspire people to use technology and start with it earlier. We also collaborate with secondary schools and try to bring them closer to reality. And, we have our own educational program called Industrial Academy, where we teach robot programming. Schools should teach critical thinking more. We can teach technology to anyone, but problem-solving, self-presentation, rhetoric, the ability to ask for help and so on are very important, too. We sometimes have to learn this at the age of forty.

There must be other motivation for automating production than just financial savings

ICE

Data is the new oil. It is at the beginning of all management

In the Czech Republic, schools don‘t teach soft skills. Is this the result of having very capable technical brains that are bad at sales and marketing? In the United States, it’s often the other way around – the products may not be as good, but they are selling well. During my stay in the USA, I saw a six-year-old girl asking the waiter what he would recommend to her, all by herself. This is an example of excellent soft skills. Americans have the courage to try great things and innovations. The technical quality of Tesla cars is far from the technical quality of European cars, but with confidence, courage and marketing, this company managed to become a world leader in its industry. I could argue that Tesla is not a top-class car, but it has had results, it sets trends, and Elon Musk will maybe get to Mars thanks to the car. Meanwhile, we will finish building a high-speed railway between Prague and Kladno in 2032. How do you approach innovation? Together with MTX Group, we are working on innovating on the level of elementary research and development. We want to have the courage to try something that may not even work out. In Europe, we are inspired by automated warehouses and have become the exclusive supplier of automated warehouse solutions for the Austrian company TGW. We are developing a few machines for Amazon distribution centers. Thanks to our solutions, our clients such as Amazon and Decathlon are able to sort 40,000 items per hour. That is the future. If companies want to deliver goods within three hours of ordering, it will not be possible without automation. E-commerce and warehouse management are a fantastic opportunity for us to grow from traditional manufacturing industry to other areas. Companies working in IT and advanced industry have always had problems with finding people. How is ICE doing?

Over the past ten years, we have become a renowned employer. Thanks to our corporate culture based on freedom and modern principles, we have no trouble finding new people. During the pandemic, we had two thousand applicants. But finding the best is always a problem. Instead of complaining, however, we prefer to systematically work on recruitment. What does freedom at work look like in an automation company? In IT, this is a fairly common thing. Programmers can work from anywhere, but you need to be physically in contact with production and machines. In our case, freedom means that people can choose their style of work, to the extent that they don’t endanger the work of others or their project. It’s more challenging than IT, because our programmers have to be present during the assembly and start the robots. It’s not purely about physical freedom, but about the ability to choose a style or time of work. This comes with great responsibility. Everyone in our team knows their position in the project and what they need to do to make it run well. So, you’re inspired by Netflix, for example? Its cofounder, Reed Hastings, describes the company’s corporate culture nicely in his book No Rules Rules. Yes, Hastings and Netflix are our biggest inspiration. Among other things, we try to give feedback immediately. How do you prevent people from abusing this approach? It is all about who you recruit. We try to explain this during recruiting. ICE is not a job for everyone. If someone abused our work culture, they wouldn‘t last long in our company. The performance team would fire them. If you play football and you don’t run much, you‘ll get away with it for a while, but soon your teammates will start saying that you should run with them.

TAPA Tábor – flexible packaging manufacturer with a hundredyear tradition Our company TAPA Tábor is located in the picturesque town of Tábor, where we manufacture flexible packaging for food, non-food products, animal feed, industry, and households. Written by: Petr Sůva, general manager of AL INVEST Břidličná, a. s., TAPA Tábor

ábor – an old town on the Lužnice River. Its history reflects the fate of our entire nation, a fate that has significance beyond our region. Tábor and its surroundings, with its battles, victories, and losses, is a living chronicle of Czech and European history. Important historical figures from Tábor speak to you at every corner. The city has aroused the interest of historians, writers, musicians, painters, and sculptors – mainly during the Hussite period, which is an important milestone in Czech history, although often decorated with legends and somewhat distorted textbook interpretations. When we hear Smetana‘s symphonic poem Tábor from the Má vlast cycle or when you read the quote from T. G. Masaryk “Tábor is our program“, we feel our Czech roots even in today’s globalized Europe. Decades before the First World War, Tábor was economically important because many industrial plants were founded there, most of which would employ 50 to 80 but sometimes even over 100 workers. These plants include a brickworks, a steam sawmill (from 1907), a stone processing factory, a mechanical knitting factory, and a canning and foodstuff factory. Most importantly, the Jihočeská lučební továrna for animal and industrial waste processing was established here. Also known as Klihárna, it eventually became TAPA as we know it today. After complicated beginnings and a complicated subsequent journey, it is currently known as AL INVEST Břidličná, a.s., TAPA Tábor. It should be noted that its cutting-edge machinery, market dominance and excellent financial results are the result of the professional approach of the management and employees of the firm. Despite its age, TAPA is a very young and modern manufacturing and trading company in spirit, thinking and behavior. Today, the plant employs 210 staff. The last investment in the new segment of production of ready-made bags and sacks took place in 2019. The machine is 74 meters long and is very difficult to prepare and operate.

TAPA Tábor

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TAPA Tábor

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In 2015–2021, we built a new modern factory and warehouse with an area of 10,000 m2, replacing an old and unsuitable building. By reconstructing the original office building, we improved energy efficiency. The main part of production is print, using five ultramodern eight-color flexographic printers with a central cylinder. Printing forms are prepared on the currently most technically advanced production line available in the industry. In terms

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of capacity and quality, the production line fully covers the needs of customers. Laminated materials are finished on seven oblong cutting machines. The last investment in the new segment of the production of ready-made bags and sacks took place in 2019. The machine is 74 meters long and is very difficult to prepare and operate. TAPA Tábor employs 210 people.

Kopřivná: Relaxation and sports in nature

Beautiful countryside, a picturesque village in the foothills, an abundance of snow in winter and trails for mountain biking in summer. A luxurious, established, modern mountain resort in North Moravia, with a complete range of facilities. It is still growing and will soon reach an annual turnover of 100 million Czech crowns. It is also one of the investments of MTX Group. Ski Areál Kopřivná is the group’s non-industrial venture. It is a place for social and sports activities as well as a perfect place for business meetings and relaxation. Written by: Luděk Vokáč, photography by: Ski Areál Kopřivná archives

e are located in a harmonious environment, and I am very glad we can further develop it with the financial strength and synergy of MTX Group,” says the co-owner of the resort, Karel Ležatka. It is located in the northern part of the town of Malá Morávka, just a few kilometers from the peak of Praděd. Karel has been working on this resort since 2004. “At that time, apart from the beautiful countryside, there was nothing here, only a nonfunctioning recreational facility of a bankrupt construction company. Today, there is a modern resort with a popular hotel and a restaurant with a panoramic view, a unique wellness center, ski slopes of varying degrees of difficulty, an extensive bike park, more accommodation facilities, bars, and lots of attractions for children and adults alike. We have a loyal clientele. People come back each year, even from surprisingly distant places,” Ležatka says. He adds the resort is ideal for families with children, sports enthusiasts, and those who just want to relax in a peaceful environment surrounded by beautiful countryside. “You will not find such a large and self-contained complex anywhere else in the Moravian-Silesian Region. We certainly do not have any direct competitors in the area,” Ležatka says. This is because the resort caters to everyone and offers a quality level uncommon in the Czech Republic. “We have a great team here, with their own visions of development, who promote using the latest technology. This is where we found common ground with MTX Group management. We are all patriots and believe in the potential of Czech mountains, so we have invested hundreds of millions of Czech crowns in technology and equipment that put Alpine resorts to shame. And we are proud of our cutting-edge six-seat detachable cable car. It was the most modern and the safest cable car in the world four years ago,” Ležatka says. It’s a real technical marvel, and stepping into it is not only extremely comfortable but also a really great experience. “The seat almost stops and measures the passengers, and the adjustable landing lifts even the smallest

Kopřivná

Something for everyone – with the quality of Alpine resorts

passengers onto the comfortable heated chairs with thick padding,” Ležatka says. In addition, the seats are protected by an automated “bubble” from rain and wind, so you always sit on a warm and dry seat. It really is incredibly comfortable. The cable car alone cost well over one hundred million Czech crowns, but without similarly expensive and cutting-edge artificial snowmaking and slope treatment, the investment wouldn’t make sense. Excellent snow conditions and perfect customer service from a small team of mountain professionals devoted to the maintenance of machines and slopes is the recipe for success. We have two slopes. A blue one around 1,300 meters long and a red one around 900 meters long. Both are illuminated and maintained twice a day with powerful snow cats, so they are also great for nighttime skiing. Another reason to visit the resort is a renowned skiing school with three dozen instructors, a mini snow park, a tubing track, a ski park for children, and several other free attractions for small children. Although winter is typically the main season for the area, Ležatka emphasizes that the summer season is becoming more and more important. “In the summer, we have an enormous range of activities available. With the consent of the national forest management authority, we have built an extensive bike park, which has several tracks of different degrees of difficulty and is more than twelve kilometers long,” Ležatka says. He says the bike park can be enjoyed by beginners and seasoned bikers alike. “We also have paths children can enjoy, whether on a bike or on a scooter. When our team of bikers opens the tracks for the season, they are so well maintained you could even ride down some parts on roller skates,” Ležatka says, laughing. And even the most hardcore adrenaline enthusiasts can enjoy our more advanced paths, with banked turns, dramatic jumps and difficult technical passages that will satisfy even a very experienced biker. “Personally, I am not a big cycling fan, but that is exactly why I have to thank our team for making our

bike park one of the best in the country after ten years of laborious work. Professional bikers really enjoy the paths, and even a national championship is held here,” he says, praising his team. Besides, the Kopřivná resort ensures athletes of all skill levels can safely enjoy the activities. Visitors can hire special downhill bikes or learn something with professional instructors, who include legends Kamil Tatarkovič and Jana Horáková. The team regularly organizes threeday cycling camps for children. The friendly and always helpful staff at the hotel reception will help you pick suitable accommodation. Besides the hotel, with high-level services, there is also the pension Maja or the even more affordable pension Pod Kopřivnou. These facilities are suitable for groups, too. “What’s more, you can also organize a sporting workshop with us,” Ležatka adds. Another popular attraction is a stylish historical wooden cottage by the creek near the bottom cable car station, an additional accommodation option. You can comfortably accommodate up to 12 people in a beautiful vintage interior. Companies have two congress rooms at their disposal in the resort. “For example, the boards of directors of some of the most important Czech firms come to use our congress facilities,” Ležatka says, and he does not mean just MTX Group. However, the number of activities available in the resort does not end there. Fancy a real paintball battle? No problem. Near the hotel and ski slopes, there are attractions for children such as a trampoline, a small climbing wall, and a bouncy castle. You can also play beach volleyball or try riding mountain buggies (tricycles).

Kopřivná

Beautiful at any time of the year

“Of course, the summer and winter seasons are the most important financially, but I prefer the resort in spring and autumn. The landscape either wakes up and turns a vibrant green, or it slowly turns yellow and orange. Both are a wonderful opportunity to just walk in the countryside,” Ležatka points out, reminding us that tourists should not visit the resort only during the high seasons. “You will enjoy the peace and quiet here. And if it gets gloomy in autumn, you can warm up in our perfect wellness center,” says Ležatka. It has a soothing view of the surrounding countryside. Among other things, visitors can enjoy a sauna, a massage, the heated relaxation zone, outdoor spa, and much more. “To enjoy our resort all year long, you don’t necessarily have to be an elite athlete,” Ležatka says with a smile. Thanks to the beautiful countryside and the number of available activities, it is no wonder that Kopřivná is a very popular place among visitors. “We have some dates booked many years in advance. I even recall some bookings for 2024,” Ležatka says, additionally mentioning an interesting fact about the complex: “We had to ask the accommodation software supplier to add new features so that we could even accept these reservations for several years in advance.” He adds that he certainly does not want to increase prices unreasonably to regulate the number of visitors. “I want people to enjoy the resort and to happily come back. The prices and services need to be proportional to that. If we increased prices significantly, people would still come and pay, but they would be angry, and we would lose the connection we have been building with them over the years,” reflects the co-owner of the complex. Of course, he plans further development in the area in the months and years to come. “We are planning another ski slope, another cable car, and connecting our resort with other resorts in the area,” the co-owner says, outlining future plans.

Professionals in the right place

A team of professionals takes care of the development of Kopřivná and its customers. “In the winter season, we have up to 150 employees here and are proud to be a sought-after employer. We can rely on our people even in the most critical situations. I must especially mention the cable car operators. The whole outdoors team is really great, and they are extremely resilient people,” Ležatka says. Kopřivná employs some of the best instructors. “Our ski instructors go to New Zealand in the summer to teach skiing, so they basically train all year long,” he explains enthusiastically. The children’s bike instructors include former Olympic athletes. The visitors can satisfy their hunger at the hotel restaurant or other facilities, such as the cable car bistro. “Our kitchen team has been hit hard by the pandemic, but they are experts, so our food is renowned. It’s incredibly hard work at a fast pace. I really admire our kitchen team,” the co-owner adds. He also points out that despite the difficult past months, the Kopřivná resort is a stable company that can cope with the situation. MTX Group gives it the necessary support. “Come visit us. And take the children with you. We organize a lot of events for them; we love children,” Ležatka emphasizes, inviting those who have not been to the Kopřivná resort yet.

ními

Jana Zimová představuje firemní hodnoty pro celou skupinu MTX Group

People and culture

Clear values help us stay on track

any of MTX Group subsidiaries have a long history. METALIMEX has been operating for over 70 years, Strojmetal Aluminium Forging will soon celebrate 200 years, and AL INVEST Břidličná has been processing aluminum for almost 90 years. OKK Koksovny has been making coke for 180 years, and Měď Povrly has been working with copper and brass for over 120 years. History and tradition are an important value of our group, just like those many other values central to our everyday operation. It might seem values are clearly based on habits and that there is no point in talking about them. We do consider values based on tradition to be important, but we have also decided to define new and modern values that represent who we are and what we do. All key group managers were involved in defining these values, and they were finalized by the owner, Petr Otava, himself. We designed them to support our vision as a group. “We consider teamwork particularly important for setting these values, because we as managers need to stand by them before we communicate them to the employees. Ideally, we want the values to be reflected in the everyday lives of our employees. In addition, managers should lead by example and show no tolerance when someone doesn‘t respect our values. We believe clear values determine our behavior, the way we conduct business, the people we recruit and the partners we choose to work with. They also make our business stronger for the future,” describes Jana

Zimová, Vice-Chairwoman of the Board of Directors and the Chief Human Resources Officer of MTX Group. When you have defined values for the whole group, it may turn out difficult to implement them in the individual companies. The group management strongly emphasizes the importance of decentralization, when the subsidiaries have authority and responsibility in their own operations. Therefore, the group values serve mostly as the main principles of operation and they are complemented by the values of each individual company, which are based on unique work cultures. We can’t just apply the work culture of one subsidiary to another. Management style also can’t be dictated from above. To visualize MTX Group values , here is an acrostic, or Scrabble, if you will. It helps us highlight how the six key values are connected and how they affect one another. The way they are connected makes them stronger. By connecting the names of our values, we get the word FUTURE. In other words, if we follow our values every day, we do not have to worry about what will happen in a year or in five years or even in twenty years. We will have a stable job. “They say if you look at your financial statements, you see how you did in the past. And if you look at your work culture, you see how you will do in the future. Implementing group values in the individual work cultures is the main pillar of successful operation. Priorities change, but fixed values stay and help us stay on track,” Jana Zimová concludes.

PROFITABILITY SUSTAINABILITY INNOVATION FOCUS TEAMWORK SAFETY 61

People and culture

Profitability

Sustainability Innovation

Making sure each company makes a profit is a key part of our strategy. Profit makes the companies grow and allows us to invest in people, machines, processes, and stability. It also allows the group to expand. However, I am talking about profitability in the broad sense of the word, not just in terms of achieving high revenues and low expenses. It is important for us to find meaning or purpose in what we do. The answer to the question “What can we gain from this?” should be the first step. “Many of our colleagues, myself included, came to us after having worked in big corporations, where the answer to this question is often unclear. In MTX, you will not see someone spending long hours on a presentation that will eventually be canceled or working on pointless projects. We constantly evaluate our actions and are not afraid to step away from something that no longer makes sense,” Jana Zimová says.

We want to be sustainable when it comes to environmental impact and following long-term values, in our material development, production, choice of suppliers, corporate culture, and care for our employees. Our strength is processing and recycling scrap and making lightened materials. We invest in lowering the energy demand of our production and logistical changes to gradually lower our environmental impact. That includes more environmentally friendly technology. We also want to provide a sustainable workplace for our employees. “We want our companies to have a clear direction and long-term perspective. We are working on a safe, healthy and respectful workplace that cares about the health of everyone in it. In terms of sustainability, we also support events in the cities and regions where we are located,” adds the HR Director.

Innovation and modernization are the things that move us forward, the things that help us turn our plans into reality and give us an advantage over our competitors. We innovate our products thanks to our own research and development team. In AL INVEST Břidličná, we are developing new materials for flat rolled products made from aluminum or for packaging materials. At Měď Povrly, our colleagues are designing and developing brass cups for our clients. Strojmetal Aluminium Forging designs and constructs aluminum car chassis parts. We also try to maximize the innovative potential of our employees by using feedback loops. We look at all constructive ideas because they can really help us innovate. Improving workflows in manufacturing companies as well as in business or administration, or in the approach to leadership and communication, is another important innovation. We are constantly looking for new, simpler and more modern ways to do our jobs.

People and culture

Focus

Teamwork

Safety

We believe that when we focus our energy and resources on one thing, we will be more successful than when we focus on more things simultaneously. We also try to make the most of our know-how and develop it further. “For example, METALIMEX is a company that focuses on a specific market and specific clients. They have seven sales divisions, each of which focuses on a specific segment,” says Jana Zimová. Employees of the division have particular expertise and can be professional partners to their customers. Another example is Strojmetal Aluminium Forging, where we fully devote ourselves to the process of forging aluminum parts for the automotive segment because that is something we do best, and we further expand it with machining and assembly. Continuous evaluation of our activities and fast reaction to changes are especially important for MTX Group.

Teamwork is the foundation of our success, and we are convinced that a well-coordinated team can do much more than its individual members in total. Everything that happens in our companies takes place in teams, whether formal or informal. We create diversified teams whose strength lies not only in sharing experience and knowledge but also in inspiring others, building a relaxed working atmosphere and creating a team mentality that helps meet goals. “A good example of teamwork is sharing experience in traditional industries such as rolling or aluminum casting. Unfortunately, these fields are no longer taught in schools, so we need to pass these skills from generation to generation. Another example of a diversified team is METALIMEX, with women representing 56% of its workforce, including in management positions and senior sales posts. Most companies have teams composed of both “old bards” and young people who want to be part of a manufacturing group and see a tangible result behind their work, i.e., a manufactured product. Efficient, decent and professional cooperation is a key pillar of our work culture. And not only within the companies, but also between them,” Jana Zimová says.

Safety is another foundation we build our work environment on. Improving the working conditions is important for us, and all of our subsidiaries are working on it. Following the law, designing safety measures and accident prevention are a matter of course. But we want to have a working environment where everyone returns home to their loved ones safe and healthy. This is a never-ending journey, and the primary goal is for the employees to take personal responsibility for their health and report what needs to be changed and fixed.

Vedoucí výroby Roman György o práci v Břidličné

People and culture

I want to be fair to my people Roman György has been working at Břidličná since 2005, with the exception of a short break. Three years ago, he started as a Production Director for packaging materials. He considers himself a fair person. A capable team and the opportunity to learn something new every day are his biggest motivation at work. When he goes grocery shopping, he spends a lot of time by the refrigerators, where he compares the products his team makes with that of the competition. He gave the MTX Group Magazine a long interview about his life story. Whitten by: Michaela Raková, photography by: Barbora Mráčková

You are the Production Director at Břidličná. But where did you start? Have you been a Production Director since day one or has it been a journey? To cut a long story short, I had to work my way up. More than once, actually. You see, this is the second time I’ve been working at AL INVEST. Initially, I started in August 2005, at the metal sheet division of the former tube hall. I was doing quality control and packing at the McKay line at OTK. After that, I started working at the McKay line directly and then at the strip plant, at the salt bath, and eventually at the DUO 8 and DUO 5 rolling mills. I kept on changing positions at the sheet metal division (ALUM) for two years, until I was offered my first technical position – Intermediate Operation Quality Control Specialist. I was reviewing quality control processes for intermediate and final inspections following the ISO 9001 and ISO TS 16949 (aka IATF) quality standards. I worked for four years at this position, gathering experience in quality control. At the same time, I was remotely finishing my bachelor’s degree studies, with a thesis on improving product quality at the ALUM division.

When and why did you leave Břidličná? After six years at AL INVEST, I decided to quit for a while to see the world. My girlfriend and I moved to Brno. I started working at an automotive parts pressing shop, where I would spend each day making quality control plans based on drawings, and doing product FMEA and instruction cards. After three years, my girlfriend and I decided to travel abroad. And since I couldn’t stay there very long because of my job, I decided to quit and start at a new place. This time in London. We worked at an enormous warehouse of a retail chain. The warehouse was located in the outskirts of London. I was very impressed by the level of logistics and its motivation system, based on daily performance evaluation. Those who weren’t meeting their goals were paid the minimum wage. When did you decide it was time to leave London and move back home? We didn’t like living in a big city and wanted to return to Břidličná. In 2014, all technical positions at the ALUM division were occu-

Young people might be interested in automation and robotization, which we are now investing in.

pied, but there was a new opportunity. The Production Director at the FOLB division was looking for a foreman for a color mixing plant. He needed someone fast. On Sunday, I was invited to go see the operation and walk through the workplace, and I started working on Monday. Did you get back on track or did you have to start anew? I had to start completely anew. I didn’t know the process, the division, the workers or even the position. A color mixing center is very important for making flexible packaging materials because it prepares the paints for refinement and print. I was no longer working in quality control but in production. I think my bosses were not disappointed with me, because a year later, I was offered the chief foreman position. After a few interviews, we shook hands, and I started another chapter at the company. Two years later, I was promoted again to my current position of Production Director, where I’ve been working for the past three years. What was your first job? Was Břidličná your first employer? After graduating from an engineering high school in Bruntál, I went to study at the Technical University of Ostrava. At that time, I wasn’t taking it very seriously and dropped out after the first semester. My biggest priority was football and practice. My mom wasn’t really supportive of this and told me if I wanted to stay at her place, I needed to get a job immediately. I went to a recruitment agency to see Iva Škrkoňová and asked for a job with morning shifts, so I had time for football practice. There were a number of open positions, and I started my career at AL INVEST. In your current position, what are your responsibilities and how many people are in your team? As my title suggests, I am responsible for production and affiliated plants such as the color mixing center or roller center. The goal of any production is making materials on time in the required quality, while using resources as efficiently as possible. To put it simply, my responsibility is to manage qualified people so that they use our equipment as safely and efficiently possible to produce quality materials. If there is a problem that interferes with one of these factors, we need to find it, record it, fix it and make sure it doesn’t happen again. The most important thing in production are people, and they are a big part of my job. I need to train them, motivate them, solve their problems, and so on. I need to deal with these things on a daily basis and don’t always do so as well as I’d like. I manage 9 technicians and 128 category-D production workers. What are the qualities of a good leader? They should be empathetic, assertive and know their operation very well. These are the basic qualities I would mention at a job interview. Describing a good leader or their qualities is not easy. I think they should be a good all-round leader with moral principles and values.

They should be fair to their subordinates and set an example to them. They should work hard, follow rules, and make important decisions on time. Another important thing is good knowledge of production processes and technology. It helps to make the right decisions and to do so quickly. There are several educational institutions and programs that teach these qualities and skills, but without self-criticism and the ability to admit a mistake, it is impossible to become a good leader. This is probably one of the most important skills or qualities that a good leader should have. What is your normal working day like? I go to work between six and seven, depending on my son, who wakes up with me between five and six. I review reports from the previous day, check performance, and prepare for the morning meeting. This is the same every day. After the 8:30 morning meeting, each day is a bit different. On Mondays, we usually deal with operational problems from the weekend and have a meeting with the sales team. On Tuesdays, after the morning meeting, I get ready for the meeting about continuous improvement of selected processes. There, I try to spend as much time as possible in production interviewing the workers. Wednesdays are dedicated to quality checks and HR. On Thursdays, we deal with the occupation of machines and the schedule of shifts for next week. On Fridays, I catch up on my backlogs for my boss and do detailed performance analyses. On weekends, I am reachable by phone in case there is an issue such as malfunctions and so on, which are normal in any production process. In the meantime, I work on new projects and investments, primarily as an advisory and data manager. We talk about health and safety at work and the rules. No two days are alike, and the program is influenced by many aspects. What is the most challenging thing about your job? There are two things. The first is to be as good leader as possible when you often work with limited information and under pressure. This combination can cause occasions when workers are treated unfairly, which is something I want to avoid. I really want to be fair to my people! And the other one? The other one is setting my work-life balance. Production runs 24 hours a day, 7 days a week, about 350 days a year. If you want to have prompt information that is necessary for making decisions, you are constantly on the phone, and this is often very demanding, especially for my family. What do you love most about your job? The diversity. There are different problems to be solved every day. Seriously, I’ve been a team player, even outside of work, since I started playing football when I was four. I have to say our current team is strong and motivating. I work with a lot of skilled and expe-

People and culture

rienced people at different levels, from the workshop all the way to top management. I can learn something new every day, which is important to me. If you didn’t work in production, where would you be? That’s a tough one. I tried the path of a financial consultant and an insurance agent. I thought about emergency services for a while, but I was always drawn to production and AL INVEST the most. You work with packaging materials. Have the products you make changed significantly in recent years? Is there any visible progress in this area? I see three main trends that shape our development: the recyclability of products and the energy intensity of producing them, the increasing pressure on the safety of products that come into contact with food, and the increasing demands on quality. These trends increase the requirements for technical and technological equipment of production facilities and the knowledge and skills of machinery operators. Rather than whole products, their individual components, such as thermoplastic paints, adhesives, and waxes, are changed to maintain the required properties (weld strength, etc.) even with thinner coats. We must also make sure they do not contain illegal substances. Do you come across your products in your personal life? Yes, daily. When I go grocery shopping, I often spend a lot of time looking at “our” butters, yoghurts, chocolate figures and so on. I look for defects and I compare ours with those of our competitors. When we show people our products, they are often amazed at how many well-known products we make packaging for. These are mainly dairy products and confectionery packaging, which is distributed to almost all large retail chains. Which products first come to mind when you say AL INVEST? Romadur, Lipánek, Zlatá Haná and many more. How far do you live from work? Was the distance from home important when you were deciding where to work? It takes me 6 minutes to walk to the front gate and 17 minutes to my office. When I lived in Brno, I would commute by public transport 50 minutes each day, which wasn’t a deal-breaker for me, but I definitely see my current distance as a huge advantage. When considering job offers, this is a key factor, especially if you want to spend time with your family. Have you always lived in this region, or are you from elsewhere? Except for the three and a half years, I have always lived in Břidličná. What has changed the most in the company in recent years? A lot, actually. The whole leadership. I see the biggest changes in investments and personnel management. A number of investment projects are being discussed that should take us to a higher level. We are establishing a fully automatic cutting center at our packaging plant. I should hopefully soon have the chance to go and check out a similar one elsewhere, as an inspiration. HR is setting up an academy for the systematic education of employees, where we will raise the experts our company needs. More work is being done to motivate

flexible and efficient workers. Also, we don’t want to hold on to workers who are not reliable and who don’t perform as well as they should. This should improve the climate and atmosphere inside the company. I don’t think anyone wants to do somebody else’s job. Can you take a break from work? How do you relax? I can’t relax by doing nothing, I am always physically active. Since I was little, I have been playing football, which has always been a mental boost for me, and when there was no football, I relaxed by doing other sports. In recent years, I’ve sidelined football and found a new hobby, which is my family. I have an amazing wife who supports me in everything and kids who are great, taking after their mom. Our older one will be three in June, and he keeps us busy all the time. He is the best quality controller, and he never stops, even after asking “why” five times. Finding answers for him can be really difficult. Our younger turned six months yesterday, and she also keeps us busy. Her brother inspires her, and she wants to be as mobile as possible, so she started crawling a little earlier than we expected. There have been a lot of restrictions due to the pandemic, so most of my afterwork activities are with my family in the countryside around Břidličná. What is your favorite place in the Czech Republic (or abroad)? Where do you like to return? The Czech Republic is beautiful. Even though I don’t like living in a big city, I like to go to Prague once in a while; it has a special charm for me. And wherever I come back from, the moment I see the Jeseníky Mountains rising in front of me and I see the tower on the Praděd hill, I know I am home. I never get tired of that sight. Is working in production still attractive for students leaving elementary and high school? The advantage of work in production is diversity. We need all types of people with a lot of different skills. Besides, today’s generation may be attracted by the rise of automation and robotization, which is part of our new investment projects. Production involves a vast number of professions and is suitable for a large spectrum of graduates. For those who know exactly what they want to do, as well as for those who, like me 15 years ago, have no idea what they want to do in life. Even those who are not interested in working in production, it is an experience that will move them one step further in life. Who is suitable for this job, which qualities and skills should they have? Does it have to be a “mechanical person” or can anyone do it after training? The most important quality is diligence and the desire to grow. Mechanical people are very talented, I would say. It’s easier for them, but it’s the same as in sports: talent is not enough, and often the more diligent people take it further than the talented people. Why should young people be interested in working at Břidličná? What would you use to attract them? Břidličná is surrounded by beautiful countryside, which is something many people in the country do not have within reach. Everything you need is within driving distance here, often faster than in a big city. The area nearby is a paradise for winter sports. We have football and biathlon clubs with a long tradition. When we are not limited by Covid-19, we can go to the pool, which is free for employees. Every

People and culture

My son is the best quality controller; he never stops asking, even after I've heard his “why” five times.

year, our plant organizes cultural events for its employees, such as Fabrikafest, which is very popular here. As an employer, AL INVEST is responsible and dependable. I have never seen it not meet the agreed conditions, and I am not only talking about my team. I am the third generation in my family working for the company. I have never heard about the firm not meeting its obligations to employees. It’s important to remember that the town has been in symbiosis with the factory for 90 years and that the more the factory prospers, the more the town will prosper. Of course, it also works the other way around. We have been writing history together for several generations and I believe that for several more generations we can benefit from our cooperation. What would you say to your colleagues (and potential future colleagues) through our magazine? To those with whom I work, I thank you for the fact that together we manage to overcome all the obstacles that we sometimes hit. And to those who are considering working with us, I look forward to meeting you.

Nový laser pro zákazníky MTX Group

Innovation for the customer Laser burnouts from Břidličná now form part of fuel tanks of Mercedes-Benz and MAN trucks. Innovation has resulted in a new contract for MTX Group as well as reduced the environmental impact of production.

Innovation

Benefits of the laser burnout project for the client and AL INVEST Břidličná • Market advantage of AL INVEST Břidličná – it supplies a product with added value without depending on a subcontractor • Guaranteed volume of at least 660 tons of burnouts a year for 4 years and obtaining a significant part of the volume from competitors that could not produce burnouts of sufficient flexibility • Partnership with a key customer • Environmental aspect – we save 7.5 tons of CO2 per year; the scrap produced during firing is not transported around Europe but remains at AIB; doing so makes further production cheaper • Possibility of a wider use of laser firing for other customers

7.5 t Our scrap is not transported around Europe – we save 7.5 tons of CO2 a year

key factor for further cooperation between AL INVEST Břidličná (AIB) and Magna Energy Storage Systems is an innovative approach and the development of new products with added value. An example of such an innovation is the new laser burnouts project. “The goal of this project is changing the product from a sheet metal to a laser burnout of the desired shape, which can be used directly for fuel tanks,” explains the project lead, David Nalevajka. We found a suitable technical solution for cutting burnouts in record time – the condition for success was to start delivering laser burnouts in November 2020. We approached several suppliers in the tender, and in the end the winner was TRUMPF, which is the world leader in laser equipment. The subcontractor for the related robotic workplace is Sp-Tech. “Less than a year passed between the first idea and project implementation. It was first discussed with the client at the end of 2019, and we started the preparatory work at the beginning of 2020. We agreed on the final terms of the contract last June and signed a four-year contract with Magna for the supply of laser burnouts,” adds Nalevajka. The robotized workplace located in a plant with hot track technology is very visible and proof that AL INVEST Břidličná products will find their place on the market even in the 21st century. Magna Energy Storage Systems GmbH, with its HQ in Schwäbisch Gmünd, Germany, has long been a key customer of AL INVEST Břidličná, which ensure stable orders with good profitability. These are deliveries of AlMg3 alloy sheets for producing fuel tanks for trucks, especially for Mercedes-Benz, MAN and Scania. The basic prerequisite for cooperation with such an important customer is having high reliability of supplies and stable quality of the product itself. However, staying on the market also means you need to constantly reduce costs and further improve customer service.

ance →

Environmental, Social and Governance As a group, we support sporting, cultural, educational, and social activities and projects.

Innovation

OKK Koksovny

We have been part of Ostrava for more than 100 years

CZK 3.3 billion invested in modernization and in the environment over 10 years

The premises of OKK Koksovny a.s. (”OKK”) have been part of the Moravská Ostrava and Přívoz boroughs since 1908. The proximity to the city center and its inhabitants means that neighbors place high demands on the coke plant. That is why OKK pays special attention to the contact with its surroundings and to minimizing the negative impact on the quality of life in Ostrava.

good relationship with the neighbors is extremely important for an industrial plant near a residential area. The most important thing is an open dialogue, which OKK leads through voluntary agreements with the municipality of Ostrava and the Moravian-Silesian Region. In addition to the legal obligations, OKK promises to invest in specific projects and technology maintenance to further reduce its environmental impact, as well as in detailed monitoring of air quality in the vicinity and various projects for the restoration and maintenance of urban vegetation. An important part of the voluntary agreements is the financial support of school trips for children from Ostrava elementary schools as well as various cultural, educational, and sporting events. Thanks to voluntary agreements and OKK support, green spaces in the center of Ostrava and the Přívoz borough are gradually being recultivated. Traditionally, the company supports an educational event for children from elementary and high schools called “Chemistry and Other Natural Sciences at Silesian Ostrava Castle”, which is attended by more than two thousand children every year. We also sponsor a hockey team, HC Vítkovice Rider, as well as the music festival of contemporary classical music called Ostrava Days. During the winter, when smog is frequent in the region, OKK helps children to stay out of Ostrava, in the countryside in the Beskydy and Jeseníky

Mountains. Over the past ten years, OKK has invested more than CZK 3.3 billion in modernization and environmental measures. It has one of the most modern coke ovens in Europe, which not only manages to meet the environmental limits but, in many cases, to stay significantly below the limit. In recent years, the company has automated the cleaning of furnace reinforcements, modernized a coal dedusting system and the coke sorting plants, hermetically sealed chemical plants and desulfurized them. Voluntary agreements determine a plan of gradual environmental measures and allow partners to check the implementation of planned activities. A key point of the voluntary agreement with the municipality of Ostrava is also monitoring pollutants together in the vicinity of the OKK production plant. In the past year, very detailed measurements have been carried out inside the premises and in several places in its immediate vicinity. Analysis of the measured data shows that the coking plant does not rank among major air polluters. Another obligation arising from the voluntary agreement is cleaning of the OKK plant and its surroundings in the Moravská Ostrava and Přívoz districts. Regular cleaning of streets and public spaces significantly reduces airborne dust levels. OKK Koksovny is a stable employer in the region and by constructively cooperating with the city and the region, it wants to be a responsible neighbor, too.

Environmental, Social and Governance

Strojmetal Aluminium Forging a. s.

We build good relationships Strojmetal has been based in Kamenice near Prague for over 200 years. We know that being neighbors with a factory stands on good relations – and we care deeply about them. After all, many of our employees live in Kamenice or the surrounding areas, and it is our primary goal to behave responsibly, to constantly improve and to participate proactively in municipal projects.

he inhabitants of Kamenice and its surroundings told us about excessive noise from our area. We immediately measured the noise levels with an accredited company. The results showed that all parts of our production are actually below the legal noise limit. Nevertheless, we take this development as a challenge for continuous improvement and have taken measures to reduce noise level even further, and we still plan to reduce more.

Constantly decreasing noise levels

The CFO of MTX Group and the Executive Director of Strojmetal, Miroslav Záhorec, has made noise pollution reduction his personal mission. “The new Strojmetal owner has already spent millions of Czech crowns to reduce noise pollution and will continue to do so,” he revealed. Most of the investments went to the older part of the production hall at the back. “For example, we have turned all air vents away from the residential area. The air conditioning engines are equipped with shock absorbers and we have also stopped loading and unloading trucks at night,” the executive director describes. Thanks to these measures, noise from the back of the plant has been reduced to 33-38 decibels (which is 2 dB below the legal limit). The new forge hall, the ”339”, is designed to respect the current requirements for noise level reduction. “The hall is clad with extra thick noise suppression panels. They allowed us to reduce the overall noise level by up to 30%,” he explains. “But our plans were thwarted for a while by a bug. Seriously. Because of a bark beetle invasion, the national forest management authority, had to clear a large part of the forest right next to us, which used to absorb noise from our operation. Unfortunately, there was no way to prevent this. We immediately began to negotiate with the representatives of Kamenice. A special task force was set up to find ways to further reduce noise

We have reduced the noise level of the 339 facility by 30%

pollution. Thanks to this body, the company plans to further invest over 25 million Czech crowns. We are also considering replacing the air conditioning unit and building a shelter roof,” Záhorec adds.

Restoring the chateau park in Kamenice

We helped revive the park adjoining the chateau in Kamenice. Strojmetal Aluminium Forging a.s. (SAF) is involved in improving public spaces in Kamenice, both in terms of construction and financing. In cooperation with Jana Kohlová, a municipal councilor, and Aleš Rudl of the National Heritage Institute, a project was created to restore the chateau park and save the chateau (facade and roof frames). You can already see the first results. “We have repaired the chateau walls and the fence around the park (according to the conservationists’ requirements). Also, the chateau gate had a facelift and the surroundings of the Church of St. Francis Seraph were cultivated. We are involved mostly in growing flowers in the park by the chateau,” Miroslav Záhorec says. He himself is very fond of the park and cares about it very much. More than 1.6 million Czech crowns from SAF funds were invested in making the municipality more attractive, and we are planning to invest more. “We are pleased that the beautiful magnolia tree is flourishing, after being damaged by the former owner of the chateau through his inconsiderate interventions. It now has deep roots and will embellish the park for several decades to come,” says the company representative.

Plans for the future

Cooperation with the municipality is ongoing. We agreed that the company’s parking lot (next to the existing new machining hall) can also be used by visitors to the sports complex and the church on weekends in a controlled, safe way. Financially and organizationally, SAF will support cultural, sporting and educational events in Kamenice. “We are planning ahead and are already thinking about Christmas, so we have agreed to organize a Christmas concert in the church next to our company,” Záhorec reveals.

ICE Industrial Services

We stick together and enjoy our work

We are helping little Sofie

Behind the near-meteoric rise of ICE Industrial Services, you will not find managers who sleep a few hours a day, are at risk of burnout and don’t have time to relax. The founders of ICE Industrial Services, led by Tomáš Vránek, have maintained the enthusiasm with which they started the bold project 9 years ago. As a result, ICE Industrial Services is now one of the leaders in MTX Group in the field of corporate social responsibility.

he goal of ICE is not only to have happy employees but also to give positive energy to those who need it. The company, with more than 150 employees in 12 offices across the country, organizes an annual Family Day for engineers and other team members. Twice a year, there is an off-site meeting for the whole firm, but thanks to the friendly atmosphere, it is more like a get-together with friends. ICE prides itself on the fact that work is not just a place where you spend eight hours and go home. The motto of ICE is “We stick together and enjoy our work”. Three years ago, the firm started using agile management. Before that, everyone at ICE agreed on the company’s core values: team, honesty, flexibility, professionalism and fun. Today, these are not just empty words on the wall in the meeting room. ICE culture, agile management, personal responsibility and a high degree of freedom – that is what ICE wants to use to inspire and to create a modern establishment for future generations. Everyone addresses each other informally at work, and meetings are open to everyone. It may sound a bit utopian, but team-building activities such as skiing, biking or playing ice-hockey and football prove that ICE cares about its people. Another important value is helping those in need. Since the company values long-term partnerships, the help is usually permanent or at least provided over a long period of time. “We help in different ways. Sometimes, ICE donates money or sometimes our graphic designer helps someone with their website. Every year before Christmas, our employees collect funds and everyone

plays their part and contributes,” says the CFO, Barbora Havířová. The company’s activities are aimed at helping children, young people, athletes, and supporting cultural events. A matter close to our heart is helping little Sofie Petrovická, who was born with a rare genetic disease. The support of her loved ones, anonymous donors and ICE team members help her and her family handle the difficult situation. You can read more on www.nadejeprosofinku.cz. ICE supports a charity project called “Cycling for children through Žďárské vrchy”. It is an annual event, and the proceeds go to children with oncological diseases. ICE has a close relationship with sport. Not just because many employees are former athletes, but also because fair play is an essential part of the company. That is why the firm was and is a partner of many sports teams – from gymnastics through handball to the hockey team in Žďár nad Sázavou. ICE also supports young people. It has been cooperating with the private Na Radosti elementary school for a long time, which adheres to the same principles as the ICE team – freedom in work and education, and respect for the unique qualities of each person. ICE has an annual tradition of displaying New Year cards from this school. In addition, the ICE team has shown the seventh graders the basics of agile project management, when they used LEGO to explore what it is like to lead projects, how to keep an eye on their finances or how to communicate with suppliers. Basically, the training that every newcomer to ICE undergoes. You can read or listen to how ICE does all this at many conferences, articles or podcasts.

Environmental, Social and Governance

AL INVEST Břidličná

We invest in energy-saving lighting

46 million invested in more energy-efficient lighting

Together with the Moravian-Silesian Region, AL INVEST Břidličná has committed to supporting environmental activities. We do so beyond the legal requirements because we care about sustainable business, and it is part of our company strategy.

n line with the energy concept, we started implementing the electricity savings program in 2020. The first project involved replacing lighting and its control system throughout the firm’s premises, with a total budget of 46 million Czech crowns. We started in November 2020, and today the energy-saving lighting in the production halls and outdoor areas is finished. This year, we will continue to work on energy savings projects,” says David Bečvář, Director for Strategy at MTX Group and CEO of AL INVEST Břidličná. “Last year, we also formulated a vision for the firm, which resulted in the ALFAGEN strategic program. It aims at developing the company in seven areas: circular economy, streamlining production, renewable energy sources, added-value products, development and employee motivation, digitization, and intensifying production in existing locations. I believe the program will have a positive impact not only on the quality and efficiency of production but mainly on reducing the energy consumption of production and reducing the carbon footprint of our products,” Bečvář adds.

Strojmetal: From copper to aluminum Strojmetal Aluminium Forging is a traditional Czech manufacturer of forgings made of aluminum alloys. The company continues the two-hundred-year tradition of the original copper smelter in Kamenice and is currently expanding production capacities. It is a longestablished supplier of parts for the automotive industry. Since it focuses on aluminum parts, it expects significant growth in demand in the coming years. Written by: Luděk Vokáč

Heritage

he history of the firm dates back to 1822, so next year Strojmetal Aluminium Forging will celebrate its 200th anniversary. This makes it one of the oldest industrial and engineering companies in the Czech Republic. During this entire period, it has been operating at the same place – in Kamenice near Prague in Central Bohemia, where the original copper smelter was founded by Josef Ringhoffer. He started his business in Kamenice in 1817, when he put his copper workshop into operation in place of an old mill. However, the industrial tradition in Kamenice is generally considered to date back to 1822, when Ringhoffer opened a copper mill. He bought the old mill and began to gradually develop it. Another crucial point in the development of the firm was the authorization to produce copper and other metal goods, which Ringhoffer acquired in 1843. At that time, the sugar, beer and distillery industries were booming in the Czech Republic, so Ringhoffer supplied them, and the company became a factory.

Industrial empire

František Ringhoffer II. took over the business after his father, who built the entire industrial empire, an integral part of which was the operation in Kamenice. Over the years, the establishment had been managed by generations of Ringhoffers and the industrial empire became a joint-stock company. At one point, even the Tatra car manufacturer was part of this group. In 1931, František Ringhoffer IV founded a golf club in Štiřín, just a few kilometers away, and became the first president of the Golf Association of Czechoslovakia. However, the Ringhoffer family lost their empire during the Second World War, and the plant has since gone its own way. In 1940, it started to produce forgings made of aluminum alloys and in 1945 the firm was nationalized. In 1968 it was renamed Strojmetal Kamenice, now a familiar name. At that time, it served the aerospace and military industries.

02 From privatization to MTX Group

Strojmetal flourished again after the Velvet Revolution. In 1998, it was privatized and subsequently, in cooperation with German partners, started focusing on aluminum forgings for the automotive industry. And although it also supplies other sectors, the automotive industry is still its main customer today. In the following years, Strojmetal became a member of MTX Group, which is working on further developing the firm. For example, the company is gradually moving away from semi-finished products and is focusing on finished products. MTX Group has already invested more than a billion Czech crowns in Strojmetal, and further investments worth more than a billion Czech crowns are planned for the coming months and years. Part of the firm’s new development strategy is the new forging line in Kamenice and the expansion of production to a completely new plant in Bruntál in the Moravian-Silesian Region. Because of the limited development possibilities in Kamenice (the plant is located in a valley and has nowhere to expand), MTX Group decided to build additional forging lines and a new machining plant in Bruntál. Work on it began this year.

Aluminum parts are gradually replacing steel parts in cars 01 02

A new fence and research into the park by an arborist are planned in the near future around the chateau The Strojmetal Development Centre became the Building of the Year in the Central Bohemian Region

2021 Installing machining centers at the Bruntál plant

Two centuries in Kamenice

1822

The future is in cars and innovation

Despite many unfavorable forecasts in the automotive industry, Strojmetal is not worried about the lack of orders and possible decline, thanks to its focus on aluminum parts. These are gradually replacing the steel components; Strojmetal is a global leader in aluminum forging. The company supplies high-end car manufacturers such as Mercedes-Benz, Porsche, Jeep, and many others. These are mainly European companies, but it also supplies Ford in the USA. Strojmetal’s plants care about their environmental impact. The group has committed to reduce their CO2 emissions by 70 million kilograms by 2025, and aluminum recycling plays a crucial role in this. The firm also focuses on continuous modernization and innovation. Besides automated forging lines and many robots, it operates high-end CNC machining centers and has several other modern specialized technologies, such as mounting equipment for pressing rubber bearings into products and technology for producing its own forging tools. Strojmetal’s owner invests almost all of its profit in the company’s development. Of course, the company’s employees play a major role in its success, too. For their development, the firm has built a training center, where employees learn, among other things, to program robots and CNC machines, develop their managerial skills and language skills, and hold regular meetings with the management. In 2019, the firm opened a technology center located in the immediate vicinity of the vintage chateau built by the Ringhoffers. The two buildings connect the past and present of Strojmetal and show the importance of tradition and quality manufacturing.

1928 1940 1945 1968 1996 1998 2001 2002

2002–2004 2006–2012 2012 2013

2013 2014 2018 2020 2020 2020 2021

stablishment of the copper works in Kamenice E by J. Ringhoffer Start of production of copper and brass alloy fittings Expansion of production to forging aluminum alloys Nationalization of the firm Change of company name to Strojmetal Kamenice Cooperation with Alusuisse Singen GmbH (today Constellium Singen GmbH) Privatization of the state-owned enterprise and change to joint-stock company, Strojmetal Kamenice a.s. Establishment of a consortium with Alcan Singen GmbH (formerly Alusuisse) and forging of aluminum alloys only Commissioning of a new forging hall for automotive products and a fully automated warehouse for production material with high-rise shelves Transfer of fitting from Alcan Singen GmbH to Strojmetal Kamenice Installation of four fully automated forging lines for the automotive industry, with different degrees of pre-production Establishment of the joint venture Alcan Strojmetal Aluminium Forging s.r.o. Alcan Strojmetal Aluminium Forging s.r.o. acquires shares from Constellium Singen GmbH in a joint venture and is now a 100% owner Commissioning of the fifth fully automated forging line for car front axis parts Change of company name to Strojmetal Aluminium Forging s.r.o. MTX Group acquires 55% stake in Strojmetal Aluminium Forging s.r.o. MTX Group acquires the remaining shares and becomes a 100% owner Opening of the new Strojmetal Aluminium Forging plant in Bruntál Final approval of the new forging line in Kamenice Change from Strojmetal Aluminium Forging s.r.o. to Strojmetal Aluminium Forging a. s.

MTX Group Magazine Volume I, Issue 1/2021 Editorial deadline: 31/8/2021 Registration number MK ČR E 24206 Publisher: MTX Group a. s. Štěpánská 621/34 110 00 Praha IČO: 27441 261 Issued biannually. Editorial work: Hero & Outlaw a.s. Translation by: Tite s.r.o. (art director: Štěpán Prokop)

PROFITABILITY SUSTAINABILITY INNOVATION FOCUS TEAMWORK SAFETY

Magazine about the news and trends at MTX Group mtxgroup.cz

MTX GROUP MAGAZINE 2021

Articles inside

Strojmetal → Tradice nás zavazuje a chceme se nadále rozvíjet

AL INVEST – Hliník a jeho recyklace

Editorial

Environmental, Social a Governance → Co děláme pro své lidi a okolí

Inovace → Nový laser pro zákazníky MTX Group

Lidé a kultura → Vedoucí výroby Roman György o práci v Břidličné

Lidé a kultura → Jana Zimová seznamuje s firemními hodnotami skupiny MTX Group

Coal Mill → Unikátní černouhelný prach

Měď Povrly → David Kozel představuje tradici i plány továrny do budoucna

ICE → Tomáš Vránek ukazuje špičku v průmyslové automatizaci

Kopřivná → Ski Areál Kopřivná nabízí pohodu a sportovní vyžití v přírodě

OKK Koksovny → Rozhovor se Zdeňkem Durčákem o zásadní transformaci společnosti

MTX Capital Services → Partner pro obchodování s komoditami

TAPA Tábor → Na návštěvě v TAPA Tábor

News → MTX Group v kostce