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When it comes to copper, there is not much competition

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.

Operating 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.

Photo: Barbora Mráčková

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.

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.

Photo: Barbora Mráčková

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.

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.

MTX Group through the Eyes of David Kozel

“I think that MTX Group is quite dynamic and fast, and that may not be easyfor some managers to work in this environment,” Kozel says, describing hisfeelings about MTX Group. “But it suits me very well here, both personallyand professionally,” he adds. Kozel believes the group is a fitting exampleof how Czech industrial companies can operate. “Czech industry is strongin principle and has enormous potential, but historically there has been a lackof managers with the necessary experience and management style thesecompanies need. That is exactly what MTX Group has to offer, which meansit can be an example for other industrial companies as well,” Kozel says. Heexplains that MTX Group is full of significant, large and successful companiesis not a coincidence, but the result of hard work.

David Kozel

Photo: Barbora Mráčková

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 started 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.

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

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 considering 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.

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