ENERGY INTENSITY GWh/TON* – 2% – 5%
300 000 WATER INTENSITY M 3 /TON*
PRODUCTION CAPACITY TONS*/YEAR
NUMBER OF EMPLOYEES 440
With an annual production capacity of 300 000 tons*, Elcowire is one of the largest manufacturers in Europe of copper wire rod, wires, stranded conductors, profiles and overhead catenary systems made from copper, copper alloys and aluminium. The profiles can be formed into virtually any shape and dimension.
* metric ton
CEO Paul Gustavsson sheds light on the year 2024 for Elcowire Group. He also shares his views on current group strategy as well as on forthcoming highlights and opportunities.
How would you summarize 2024 for Elcowire?
In 2024, Elcowire strengthened its market positions in all our areas. It was a stable year with group consolidation, and with good output levels. We also executed on the many initiatives in our investment program to increase our various capacities and reduce our environmental impact.
In terms of market positioning, how are your product categories? What are your views on market demand in the coming years?
We have strong market positions in four out of our five Business Units, and most of them have a very strong demand, both currently and for the coming five-year period. Although industry development in Central Europe may continue to be weak, which affects some of our areas, it is compensated by a very strong demand within Infrastructure and Energy, where many of our customers have full order books, at least for the period up to 2030.
Are there any notable highlights or challenges regarding the company’s raw materials situation?
In just a few years, Elcowire have managed to set up and establish a new strong global supply chain. It features multiple sourcing and thereby we are able to balance any potential bottlenecks or transportation ruptures that may occur from suppliers to our plants.
In the eyes of suppliers in general, I believe Elcowire is being seen as an attractive and important customer. This is due to our actual procurement levels, our reliability – that we do buy what we have promised to buy – and our strong sustainability agenda.
Sustainability is an important area for Elcowire. How are you progressing with it in general, especially regarding climate issues?
Sustainability is becoming increasingly important in our markets. Each year, our customers’ expectations grow, not only regarding our initiatives to reduce carbon emissions but also in terms of our sustainability governance and our responsibility for the supply chain.
The same way as Elcowire has supplier code of conduct requirements on our suppliers, our customers want us to declare that we live up to their code of conduct requirements. Another common wish is that we show them that we perform well in EcoVadis or similar sustainability assessment tools.
With that said, we continue to see strong development in Elcowire’s climate change planning. We want to have a very competitive low-carbon footprint for our products, and this of course includes the same improvement of our own processes.
So far, we have managed quite well to reduce our carbon emissions from purchased electricity, but even more interesting for the future is perhaps our plans to be pioneering copper business by using bioenergy in Helsingborg (see project on p. 6), aiming to replace the use of natural gas.
Furthermore, together with a cluster of companies in Helsingborg we have pursued pre-studies of hydrogen as a process fuel, investigating its technical feasibility, requirements on grid capacity and overall competitiveness. In the region where Hettstedt is situated there are government initiatives for hydrogen production and use to provide renewable energy solutions. Elcowire is following these initiatives with great interest and will adopt them as appropriate. Once studies are completed and proven effective, we will jointly implement them at our sites where applicable.
Any other investments in the pipeline to develop capacity or sustainability, or both?
One example is the closed loop water treatment facility in Hettstedt, which was commissioned and taken into operation in January 2025, and which reduces our water consumption by 350 000 m3 per year. Beyond sustainability, we currently have a record level of investment initiatives ongoing in the areas of production capacity and work environment. We are expanding capacity both in Helsingborg and in the rail site in Hettstedt, and we continue to rationalize the Wire & Strands site, reducing the number of machines and thereby also the use of energy and chemicals.
Sustainability is becoming increasingly important in our markets. Each year, our customers’ expectations grow, not only regarding our initiatives to reduce carbon emissions but also in terms of our sustainability governance and our responsibility for the supply chain.
With these plans in mind, do you feel you have the right people in place for the next years to come?
Any competences that will need to be added?
We have increased and strengthened our organization in the areas of Sustainability and Metal Management, which will be areas that continue to be prioritized. Other needs that we cater for in our planning are in Sales & Marketing, given the strong demand and growth potential we foresee, as well as in Project Management – for ERP systems as well as for biogas and other energy projects we have in the pipeline, to be able to fulfill on the promise we have given to our stakeholders.
With the progress and competitive edge we show in the sustainability area, I also notice that this brings our teams and the organization closer together in a positive way. We all share a common feeling that we are heading in the right direction.
Elcowire’s production facility in Hettstedt has achieved a significant milestone in sustainable water management. By investing and implementing an advanced water circulation system, the facilities has successfully reduced its water consumption by 350 000 cubic meters annually.
During the year deliveries of Recycled Copper for Siemens Energy’s production of greener transformers started. By embracing recycled copper materials, meaningful steps together was taken towards a greener, more sustainable future.
The market demand for these copper solutions is growing rapidly and will play an important role in decarbonizing the industry. Together, we can power the world while protecting our planet.
We have invested in smarter energy use by installing sophisticated power control on one of our transformers. Measurement show that we reduce energy consumption by around 10%, which also decreases environmental impact.
Energy efficiency is a key part of our sustainability efforts, and we consider further initiatives to support our sustainability goals.
Elcowire has taken first steps toward becoming the first copper wire producer globally to fully replace fossil gas with a Biogas plant in its production process, setting a new standard for sustainable metallurgy. The project addresses a critical challenge in the industry, as copper melting has traditionally relied on fossil fuels to achieve the high temperatures required for metal production.
BU Rod has an annual production capacity of 300 000 tons of pure and silver, tin- and magnesium-alloyed copper wire rod.
BU Rod is one of the largest rod manufacturers in Europe with continuous cast and upcast in rod dimensions 8–30 mm.
BU Wire & Strands manufactures wires in compliance with European and international standards.
Our drawn wire products cover a diameter range between 4.6 mm and 0.05 mm and are made from Elcowire continuous cast wire rod.
BU Rail serves the worldwide market for overhead conductor material, including catenary and contact wires, feeder, stitch, jumper and earthing wires.
Our products are suitable for all speeds of operation and support sustainability in railway design.
BU High Voltage’s conductor materials are being used in cables for interconnections, offshore wind parks, underground power links and other applications.
BU High Voltage offers our extensive knowledge and products primarily to manufacturers of high voltage and extra high voltage cables.
BU Specials is a leading provider of drawn and extruded profiles used in various applications for energy transmission.
BU Specials is supporting customers in a variety of industries such as automotive, power distribution and medical equipment.
Elcowire contributes to the global transition to renewable energy as a supplier of copper wire rod, wires, stranded conductors, profiles and overhead contact line systems made of copper, copper alloys and aluminium.
1799 Count Eric Ruuth establishes a foundry in central Helsingborg
1800 First cast of iron
1920 Division of Elektromekano
1953 Independent company Elektrokoppar; 75% ASEA, 25% Ericsson
2007 Acquired by Liljedahl Group
1909 Start of the wire rod production
1990 1990 rail operations founded as Joint Venture between Walzwerk Hettstedt and Felten & Guillaume Cologne as HFB GmbH, later integrated in to NKT Cables (2009)
1995 Privatisation, plant operating as MKM Mansfelder Kupfer- und Messing GmbH
2019 NKT’s rail business acquired by Elcowire Group
2019 MKM acquired by KME
2022 Elcowire acquired KME’s wire business
Elcowire AB in Helsingborg serves North European market with Rod and has an annual capacity of 150.000 MT. Helsingborg also specializes in production of Profiles (extrusion process) and with an annual capacity of more than 50.000 MT we serve the whole European market.
Elcowire GmbH in Hettstedt serves Central, East and South European market with Rod and has an annual capacity of 150.000 MT. Hettstedt also specializes in production of drawn wire, bunches and strands and have an annual capacity of more than 30.000 MT which are delivered in Europe, Middle East and Africa.
Elcowire Rail GmbH s erves the worldwide market for overhead contact lines, offering a wide range of standards and customized solutions. Contact wires, dropper wires, catenary wires from Hettstedt are in commercial service around the world.
Technologies with sustainable solutions, such as our contact and messenger wire “Valthermo” has a 70-year lifespan, (to compare with pure copper with a lifespan of 25 years).
We are committed to accountability and integrity, fulfilling our promises to build trust and growth. This commitment strengthens professional relationships, fosters reliability, and supports the success of our customers, employees, and stakeholders.
What Elcowire stands for
Elcowire’s sustainability efforts are focused on contributing to the agenda of the global society for the year 2030.
Since 2015, the most advanced framework to describe this agenda is the UN Sustainable Development Goals (SDGs). These goals, symbolized by 17 well established and powerful icon illustrations, recognize that ending world poverty and other human challenges must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.
“The SDGs represent a shared commitment in society to sustainability,” says Elcowire’s CEO Paul Gustavsson. “For Elcowire, it is important to center our sustainability efforts around this global collaboration between the 193 member states of the UN.”
While clean energy and electrification are clearly at the heart of Elcowire’s mission and business activities, this is just a start for what the company wants to achieve. Providing reliable energy and fighting global warming includes continuous reduction of the carbon footprint from Elcowire products and solutions, combined with improved energy efficiency and carbon footprint in the internal production processes as well as in the entire supply chain.
But the SDG-inspired agenda of Elcowire is much broader than that: “The obvious energy and climate improvement profile of our company is what you see from the outside. However, internally, a responsible management of resources and a strong culture rooted in a safe and positive work environment for all employees are the strongest basic elements of our sustainability focus,” says Paul Gustavsson.
While the company is maintaining a focus on the UN Sustainability Development Goals going forward, Elcowire’s formal Sustainability Report is from the reporting year 2024 gradually adapting to the European Union standard ESRS (European Sustainability Reporting Standard) in its forthcoming Omnibus version, streamlining several EU sustainability regulations into a more cohesive and simplified framework, see p. 28–30.
The UN Sustainability Development Goals from 2015 are 17 global objectives that together give a vision of what a sustainable society would look like in the year 2030. The objectives are based on underlying targets and indicators. The SDGs are valid for all parts of society, not only for companies.
SDG 4 Quality education
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
Elcowire focus: Read more in ”People” on page 22.
SDG 8 Decent work and economic growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Elcowire focus: Read more in the ”CEO interview” on page 4 and in ”Sustainable operations” on page 21.
SDG 9 Industry innovation and infrastructure
Build resilient infrastructure, promote sustainable industrialization and foster innovation.
Elcowire focus: Read more in each Business Unit’s description of ”The business unit today,” including solution and innovation focus, pages 15–19.
SDG 12 Responsible consumption and production
Ensure sustainable consumption and production patterns.
Elcowire focus: Read more about Sustainable operations on page 21, and in each Business Unit’s description on the left hand side, including solution and innovation focus, pages 15-19.
SDG 13 Climate action
Promote sustainable development. Elcowire focus: Read more about in ”Low-carbon Copper products” on page 11.
SDG 16 Peace, justice and strong institutions
Promote just, peaceful and inclusive societies.
Elcowire focus: Read more in ”People” on page 22 and in the Climate pages on page 37–41.
Elcowire proudly offers Low-carbon Copper products made from either Recycled or Low-carbon Copper, both categories significantly lowering CO2 emissions. They will play an important role in the sustainability transition to achieve the goal of net-zero CO2 emissions by 2050 set by the European Union.
In an era where environmental awareness is paramount, recycled copper stands out as a shining example of sustainable practices. At the same time, to meet evergrowing future market needs, recycled copper will not be available in large enough quantities, and primary copper will still remain crucial. However, it is extremely important that primary copper choice still has a Low-carbon footprint!
Elcowire has the complete offering: Low-carbon Copper products from recycled as well as from primary copper, or from standard Copper rod if this is what the customer prefers.
Elcowire provides customers with the option of Low-carbon Copper products resulting in a copper wire rod with a lower impact on the environment and climate. The choice of either primary or recycled low-carbon copper significantly reduces the need for extracting primary copper from mines, leading to a substantial decrease in energy consumption and greenhouse gas emissions.
One of the remarkable aspects of recycled copper is its energy
efficiency. The recycling process consumes far less energy than the production of primary copper. As a result, the use of recycled copper not only conserves valuable resources but also helps lower carbon footprints, making it an outstanding environmentally responsible choice.
The only limitation is that there is not enough copper material to recycle to meet all tomorrow’s needs. Hence the need also for Low-carbon Copper from responsible resources.
We source our primary copper cathodes carefully and select suppliers based on their use of renewable energy sources, sustainable transports and cutting edge technology for energy effective smelting.
In our own production we are dedicated to a streamlined and sustainable production method with optimal quality and deliveries on time.
Low-carbon Copper – whether it is made from recycled or from primary copper – is more than just a metal; it represents a commitment to sustainability and to responsible resource management. By embracing both recycled and primary copper in our manufacturing processes, Elcowire not only contributes to environmental preservation but also promotes a thriving and resilient global economy.
It’s time to recognize the value of Low-carbon Copper products, and to champion its role in shaping a sustainable and greener
tomorrow. The use of Low-carbon Copper products in various industries is a great way of accelerating sustainability goals across the value chain!
During 2024 Elcowire both finalized and started deliveries to projects that involve some of the market leaders in the energy transition.
We are of course very proud of these projects and there are several more to come in 2025 and beyond.
Mass balance calculations ensure the correct allocation of sustainable materials in the final products without causing complex intrastructural production changes.
Elcowire uses Mass Balance calculations where output always must equal input, allowing us to manufacture products and enhance circularity without making complex and costly changes to our production infrastructure.
With this approach, copper with lower CO 2 emissions and 100 percent recycled content are mixed with other copper during production, making it challenging to trace them directly to their source. However, by monitoring the quantities of each input material and the resulting product output, we calculate the amount of each input material present in the final product.
A full segregation of sustainable and primary materials is not feasible in process industry. It would require setting up a duplicate production line, using more resources and energy, which is the opposite of what Elcowire wants to achieve.
Mass balance as shown in the furnace illustration below is a chain of custody approach that allows tracking the net amount of sustainable materials – in this illustration recycled copper and low-carbon primary copper – as they move through a system and ensures an appropriate allocation of these materials to the finished goods based on auditable bookkeeping where input must equal output. Industries such as energy, chemical, pulp & paper are implementing similar mass balance approaches.
Illustration above: Mass balance calculations ensures an appropriate allocation of the involved materials based on auditable bookkeeping in our melting processes.
Illustration on left: Mass balance calculations in our copper flow, ensure an appropriate allocation of each category of input materials (cathodes and recycled material) to the finished products and deliveries from each site, based on auditable bookkeeping.
Our Business Units
Although BU Rod’s external sales declined somewhat in 2024, it was offset by increased sales to Elcowire’s other four business units. Especially in Europe, the green transition with renewable energy, updating of the electrical grids and electrification in society, such as in the transport sector, continued.
“Our sustainable copper wire rod offering keeps growing, and we’re still at the forefront,” says Fredrik Adlercreutz, Head of BU Rod. “Production in 2024 was more stable in both Hettstedt and Helsingborg than in 2023. Improved coordination between the sites brought many benefits, including a reduced need for external purchases.”
A leading supplier in the market
Elcowire now offers low-carbon and 100 percent recycled copper rod from both Hettstedt, Germany, and Helsingborg,
Sweden, enabling redundancy and improving the balancing of volumes. Last year, BU Rod introduced a standardized pricing model for the two sites. The BU also implemented a so-called financial adder to manage fluctuations in metal as well as interest rates in a fair and transparent way to safeguard profitability.
Elcowire Rod holds a 70–75-percent market share in the Nordic region and ranks among the top suppliers in Central and Eastern Europe. “We’re a stable and reliable supplier with a broad product portfolio,” Fredrik says, emphasizing the importance of availability and maintaining stable supply chains.
Increased demand for sustainable copper
Across BU Rod’s targeted industries, end customer demand typically drives sustainability. More customers want sustainable products, a low CO2 footprint and a higher proportion of recycled copper.
In 2024, just over 10 percent of Helsingborg’s output was either low-carbon or 100 percent recycled copper. “Few competitors can deliver the volumes we do,” says Fredrik. “When we started to offer low-carbon copper in 2021, not many customers were interested. That has changed; today customers increasingly want to discuss features such as a lower CO2 impact and traceability.”
Safeguarding steady supplies
Looking ahead, BU Rod plans to expand the production and
Rod for sustainability. Elcowire produces low-carbon or recycled copper from copper cathodes, potentially reducing CO 2 emissions by over 50 percent per kg (see page 10 for more facts.) Copper will play an essential role in the sustainability transition to achieve the EU goal of net-zero CO 2 emissions in 2050.
capability of rod suitable for enamelled wire in Hettstedt. It will continue to increase flexibility and coordination between the two Elcowire sites.
“We must ensure wire rod supplies to Elcowire’s other four business units,” Fredrik says. Other focus areas include growing with major European cable manufacturers, and supplying wire rods to Elcowire’s sister company, Dahrén. He concludes, “We shall be the most sustainable supplier in the market. It’s critical for our strategy.”
Elcowire Rod delivers copper rods for various electrical purposes. The position as a leading rod producer in Europe was further enhanced by the 2022 acquisition of operations in Hettstedt, Germany. Depending on customer needs, wire rods can be processed into drawn or stranded wire or extruded into various shapes and sizes.
The customers include leading cable producers serving the automotive, construction, installation and power transmission markets. Much of the production is sold to other business units within Elcowire or the Liljedahl Group.
For more information , go to elcowire.com/rod/
For BU Wire & Strands, the challenging 2023 trend of declining demand continued in 2024. The results were impacted by unending geopolitical conflicts and disrupted transport chains. BU Head Christoph Busch explains, “Our whole industry was impacted by the low demand and weak German market.”
To alleviate pressure in the Hettstedt site, BU Wire & Strands, for example, implemented short-term work measures, enabling employees to stay home with compensation from the German state. It was a vital tool for navigating difficult times.
Making productive use of the downturn
Despite the challenges, BU Wire & Strands used last year productively, preparing strategically for the future. “We rationalized unprofitable products and focused on our core, with products
from downstream processes, which play a significant value for our key customers. At the same time, we stayed very close to our key customers to be able to navigate the market and be prepared to react for changes ahead.” Christoph says.
BU Wire & Strands products are found everywhere electricity is conducted. The BU has a broad customer base covering a wide range of applications and sectors. Even so, the focus is on a few strategic customers active in potential growth markets. Christoph says, “In 2024, we analyzed our markets and customer base. We agreed on activities with selected key customers and have now started to grow with them.”
After a hesitant start, customer interest in sustainable solutions has grown exponentially since 2022 for Wire & Strands, mainly driven by the automotive sector. “Many car manufacturers now run projects with lower carbon footprint targets and have products made from recycled materials,” Christoph says. “We quickly decided to prepare Hettstedt for this development.”
The BU began collecting carbon footprint data to create environmental self-declarations. By late 2024, the self-declaration
Sustainable energy generation. Elcowire’s tin-coated wires or solar and charging cable applications play a crucial part in satisfying the market demand for efficient and sustainable energy solutions that facilitate reaching global CO 2 reduction targets.
for Low-carbon Copper wire rods was finalized. The further downstream product declaration is underway.
The business outlook has become more optimistic. The market is returning, even if incrementally, and BU Wire & Strands is prepared for the path set ahead and higher demand once the market recovers. Green energy applications primarily drive demand. Thus, the BU’s strategic focus is on products needed for the energy transition, including solar energy, the grid, transportation and data centers.
Christoph also sees future opportunities in the automotive, rail, and infrastructure sectors. “We have a sound base in strategic segments with key customers, which we will be able to grow with” he states, “and our focus is to add higher customer value, with the emphasis on downstream products and markets.”
Business unit at a glance
Elcowire Wire & Strands offers a broad spectrum of wire products, from single wire (diameters between 0.30 and 4.6 mm) to multiwire (from 0.05 mm) and variants where the wire is grouped or twisted into bunches and strands, adding flexibility to the finished product. The products are used in electrical, automotive, telecom, installation, and industrial applications.
Typical use includes earthing, power engineering, heavy current engineering, solar & wind power, offshore and submarine cables, automotive/rail/ aviation/space cables and the packaging industry (copper welding wire).
For more information, go to: elcowire.com/wire-strands/
BU Rail achieved its highest sales quantity and profits to date in 2024. “It was a record year,” says BU Head Jan Siebert. “The rail business is thriving, supported by political initiatives promoting rail as a sustainable transportation alternative.”
Last year, planned projects to connect countries and enhance existing networks moved forward, enabling Elcowire to continue its successful materials sales. Another success factor was the improved efficiency of Elcowire Operations in delivering materials.
An asset to the market
The 2024 global market was more stable compared to previous years. Alongside the home markets, Germany and Sweden, BU Rail operates in 48 export markets. “The rail sector is heavily
regulated, making it challenging to acquire new customers,” Jan explains. “We focus on collaborating on new projects with existing customers. Reliability in quality, materials, prices and deliveries is crucial.”
BU Rail offers standard copper materials, low-carbon and recycled copper, and three brands of sustainable and enhanced materials: Valthermo, which provides thermal resistance; Valcond, designed for high-speed applications using superior alloys for better connectivity and wear resistance; and Valflex, which enhances fatigue resistance in dropper wires.
A respected leader in technology and innovation, BU Rail participates in relevant standardization committees, positioning itself as an asset in the market and helping to push development.
Sustainability increasingly important
Rail transportation aligns well with global environmental targets and trends. The European Union is vital in driving global sustainability, with ongoing programs focused on improving and accelerating border crossings and train handling. Only a small portion of rail lines worldwide have been electrified, which presents a significant opportunity for Elcowire.
Electrified railways boost sustainability. Elcowire’s overhead contact line solutions are perfect for sustainable railway traffic. They may contribute significantly to reaching ambitious climate targets. By selecting the right alloy and product performance – electric and mechanical – rail operators prepare for the sustainability transition towards the EU goal of net-zero CO 2 emissions.
“Interest in low-carbon copper in the rail sector is somewhat uncertain at the moment,” Jan notes. “It’s unclear how railways can leverage the positive environmental benefits of Low-carbon Copper to secure additional funding on the national level.”
Looking ahead to 2025 and beyond, Jan anticipates continued demand in the rail sector driven by political initiatives focusing on sustainability. Elcowire aims to be involved in several large rail projects across Europe, South America, and Asia.
“BU Rail holds a market share of approximately 35 percent,” Jan says. “We’re committed to maintaining and expanding our strong position in core and project markets. However, we will adjust our production equipment in 2025, which may impact our sales in the short term.”
unit at a glance
Elcowire BU Rail develops and produces products for contact lines of electrically powered rail and road-bound transportation systems, such as catenary wires, contact wires, dropper wires, and earthing wires in standard copper and copper-alloy materials, and sustainable low-carbon and recycled copper.
The BU also markets innovative and customized solutions to support its customers in achieving their sustainability and efficiency goals, providing a wide range of product-related services, such as consulting, training and online support.
For more information , go to elcowire.com/railway/
In 2024, Business Unit High Voltage improved on its 2023 result thanks to a good product mix. The green energy transition is the main driving force behind the dynamic development in the conductor materials sector.
The increasing demand for green electricity has made several existing and new actors invest heavily in capacity-increasing initiatives, such as greenfield factories and expanding existing production sites.
“There are many capacity-enhancing activities ongoing,” says Mikael Johansson, Head of BU High Voltage, “so Elcowire and other supply chain companies must be on our toes.”
Investments in infrastructure
Mikael says that the capacity-building for the green transition
will continue well into the 2030s. “Some regional markets, such as Great Britain, the Netherlands and France, are gaining considerable momentum. The many energy supply projects here increase the demand for our products.”
Preparing for this, Elcowire started investing in additional capacity in 2023, which continued through 2024. One new extrusion machine is already in operation, and two more become operational during spring 2025, meeting the projected output needs.
Sustainability is business critical
Mikael says that the capacity-building for the green transition will continue well into the 2030s. “Some regional markets, such as Great Britain, the Netherlands and France, are gaining considerable momentum. The many energy supply projects here increase the demand for our products.”
Preparing for this, Elcowire started investing in additional capacity in 2023, which continued through 2024. One new extrusion machine is already in operation, and two more become operational during spring 2025, meeting the projected output needs.
Elcowire is an industry sustainability leader, but Mikael notes that the company must still broaden and deepen its efforts. “This is a constant work in progress. I think it’s clear that recycled and low-carbon copper will become the norm soon enough.”
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Sustainable energy generation. Elcowire plays an essential role in satisfying the market demand for generating and transferring energy more efficiently and sustainably, helping to reach global CO 2 targets.
He praises Elcowire’s developed sustainability roadmap, which strengthens and clarifies the company’s sustainability work. “Communicating what we do, why we do it, and the results give us a competitive advantage. High Voltage aims to grow with the market as it invests in new projects, and our sustainable offering will play a decisive part in this transition.”
Business unit at a glance
Elcowire High Voltage’s conductor materials are used for advanced cables in interconnections, offshore wind parks, underground power links and other applications.
Elcowire High Voltage counts leading cable manufacturers as customers, building on its long experience of conductor materials for high-voltage applications in various shapes and sizes. In close collaboration with the customer, the business unit produces conductor solutions depending on external requirements, customer specifications, and the power installation environment.
For more information, go to: elcowire.com/high-voltage/
Elcowire Specials is the company’s newest business unit. During 2024, it continued to develop and position its offering in the market. The delivered volumes were lower in 2024 than in 2023 – no surprise, given that the automotive industry is an essential part of the business.
“A major reason for our result is that electric cars, in particular, took a deep dive in the market,” says Mikael Johansson, Head of Business Unit Specials. Still, the business was stable, which will continue in 2025. “We’re well prepared, and our sales will increase when the automotive industry recovers.”
A wide range of applications
BU Specials targets the automotive and energy industries as well as customers in the health & medical, defence and other industries. The products can be used across a large variety of
industrial sectors. Mikael points out: “It’s about delivering extruded wire of high and even quality, which is mouldable and can be used effectively in a broad range of smaller energy transmission applications. MRI scanners and electric vehicle batteries are just two examples.”
The BU’s strategic focus is to analyse various potential markets and proactively target and attract new customers and more applications. Building strong relationships based on trust and competency and the ability to deliver on time and at the right quality is key to success. In 2024, the BU made some organisational reshuffling to facilitate this and to sharpen its competitive edge. Compared to Elcowire’s other BUs, Specials delivers lower volumes to a larger number of customers.
Mikael notes that customer demand for sustainable products isn’t as pronounced for Specials as for the other Elcowire business units. “Sustainability is currently lagging in our sector, but will surely grow,” he says. ”It’s already essential for some customers, and others will follow. Low-carbon and recycled copper will go from premium to a must, and Elcowire’s challenge will be to deliver the required quantities.”
Renewable energy systems. Elcowire support our customers in building renewable energy transmission systems. Given the green transition and ongoing electrification of many industries, Business Unit Specials has an interesting growth plan.
Specials is a small, new operation that is finding its footing. However, Mikael explains that there is a clear ambition to expand. He mentions the medical and automotive industries as areas with good growth potential. “It’s still early days, and whether we grow organically or through acquisitions is something we discuss.”
Elcowire Specials develops and delivers extruded and drawn profiles in various shapes and sizes, often made to customer requirements. The profiles are used in energy transmission applications, primarily in the automotive, health & medical and energy industries.
The business unit’s offering includes a standard range of products as well as custom-made designs, dimensions, and materials.
For more information, go to: elcowire.com/specials/
Elcowire put much effort into securing a sustainable supply chain during 2024.
The results are already showing, and further advantages will be reaped in the coming years.
Roughly 98 percent of Elcowire’s direct procurement spend is on copper. Producing copper cathodes is a complex process, from mining to the 99,99% purity copper that Elcowire uses.
Securing the supply chain
Stephan Hanel became Head of Metal Management in 2023. His 20 years in the business facilitated the short-term establishment of new supplier relationships which became necessary due to severe supply chain ruptures. “Strong relationships are essential in the non-ferrous sector,” he says. “You must know the players in the market.”
Supplier code of conduct a crucial step
Jonas Ciardi, Head of Sustainability, and Stephan have created a sustainability roadmap for the Group. Crucial to this is performing supplier audits, which will start in 2025, to ensure that suppliers act in line with Elcowire’s new supplier code of conduct.
“We’ll audit quality,” Stephan says, “but there will also be a sharp sustainability focus. CO2 footprint is critical but the social side, including working and employment conditions, are also essential.” He doesn’t expect any big missteps. The big-sized copper suppliers have thorough sustainability programmes
Sourcing sustainable raw material
It’s also critical to understand the underlying pricing mechanism. Copper is traded at the London Metal Exchange; hence the procurement has both a physical and a financial side, which increases the complexity.
Last year was more stable but still had its share of supply chain challenges. Shipping through the Suez Canal and the Panama Canal was sometimes precarious, adding weeks to the global copper supply chain. “We had to face that ordered material wouldn’t arrive in time,” Stephan says. “Our biggest operational obstacles last year were to get materials from closer sources and to bring some contracts forward.”
Regulations and societal requirements push the increasing demand for low-carbon and sustainable copper. The growing demand also increases the pressure to source recycled copper. The overall challenge is that there isn’t enough scrap available. Globally, scrap suffices for 15–16 percent of copper cathode production. The rest of the market will have to use primary copper concentrates. This is why Elcowire will maintain both recycled and primary low-carbon copper options.
Stephan says that Elcowire has a stronger sustainability focus than most competitors. “Being able to deliver sustainable products is business critical. For Elcowire, it’s not just about marketing; we are making great efforts to reduce our CO2 footprint as much as possible.”
“Being
able to deliver sustainable products is business critical.”
Stephan Hanel
Operations at Elcowire’s plants in Hettstedt, Germany, and Helsingborg, Sweden, are vital to the Group’s business, supplying the business units’ customers with premium copper wire.
Site managers Carsten Hohmann, Hettstedt, and Johan Skyllerstedt, Helsingborg, look back at 2024
Helsingborg had a relatively smooth year in 2024. Still, the delayed installation of three new extrusion lines in late autumn impacted capacity. And when Elcowire received a substantial order with a tight deadline, “we had to work extra shifts,” Johan says, noting that all machines will be operational in spring 2025.
Hettstedt dealt with the downturn in the German economy and the generally rising costs. Carsten says, “It was a challenging year, particularly impacting BU Wire & Strands, although BU Rail and BU Rod remained stable and productive.”
Cooperation and synergies between the two sites increased during the year, improving redundancy and flexibility to safe-
guard Elcowire’s deliveries. Furthermore, Hettstedt will focus on stranded conductors, enabling Helsingborg to extend its expertise in cast profiles.
Continuous improvements are vital for productivity and profitability. In Helsingborg, a Six Sigma project reduced start-up times in the rolling mill. Additional projects aimed to enhance procurement processes and cost control, and another initiative focused on improving the working environment across the site.
During autumn, a significant change in production organization
was implemented to enhance process development and equipment stability and to ensure the expertise needed in technology and maintenance.
Carsten and his team in Hettstedt rearranged a complete production step, which promises increased efficiency and reduced downtime. With the weak demand, Wire & Strands used the year to identify key customers and growth potential. Carsten says, ”We’ve had to rethink major parts of the factory to accommodate this. It’s still under development.”
Staff safety and wellness remain top priorities. Helsingborg introduced three rotating shifts. ”Now everyone works a daytime shift, which will benefit employee wellness,” Johan says. A reorganization initiative to improve shop-floor safety addressed forklift incidents by having fewer, more specialized truck drivers.
Emphasizing safety and wellness, Carsten says: “At our site, high-quality safety equipment is standard. We’ve also introduced ‘health days’, for example focusing on back health.” A new bonus system was established to reward employees for reduced absence or sick leave.
Sustainability remains a top priority
Several projects aimed to improve sustainability further. ”Reducing our energy use is critical, and we saw a positive change late in 2024,” Johan says. A new project is looking at using biogas in the production. “It’s an exciting project that can potentially make us fossil-free.”
Minimizing waste is crucial, and Helsingborg runs projects to reduce water consumption and reuse scrap metal from production. A new circularity project examines the viability of collecting and reusing customer scrap.
Hettstedt started the installation of a new cooling tower at the end of 2024. “It was our main sustainability project last year, and we had to focus our capacities,” Carsten says. “So far, there is roughly 90 percent less wastewater.”
Johan says that 2024 was a year for analysis and preparation. “We initiated several changes to improve efficiency and sustainability that will bear fruit in 2025 and the coming years.”
Building a People Culture for the future
A positive people culture is crucial for Elcowire to stay competitive. Lisa Mattsson and Melissa Kommas, Heads of Human Resources in Helsingborg and Hettstedt, respectively, highlight some key initiatives in 2024.
When the employees thrive, so does the company. “It may sound clichéd,” says Lisa, “but our people are our most important asset. Ensuring that both existing and new staff see Elcowire as a positive workplace is crucial for our success.”
With the current shortage of engineering skills, especially
in Germany, attracting fresh talent is even more critical. Hettstedt plans to expand its apprentice program, bringing on four additional applicants in 2024. “Our average worker age is high,” Melissa says, “so we’re trying to recruit young people right after they finish school at 16, providing 3.5 years of vocational training.”
Developing existing staff is a must
Recruiting new talent isn’t enough; developing existing staff is vital. “We have many employees and must continue to train
them to remain current with necessary skills,” Lisa says.
This training encourages continuous improvement.
Helsingborg’s competency development includes a new digital learning management system, expected to be fully operational in 2025.
In Hettstedt, Melissa says, “We conduct an annual survey to assess departmental needs, creating development plans based on the results.”
Diversity brings many benefits
Diversity is increasingly essential, bringing multiple business advantages. “We aim to be an attractive employer for everyone,” Lisa says. “In Helsingborg, we will need to employ skilled engineers. Most engineering students today are women, so showcasing female role models and career paths for women is critical.”
Beyond gender, diversity includes ethnicity, age and educational background. ”Research shows that a diverse workforce enhances creativity and productivity,” Lisa adds. ”We plan to train all managers in diversity and inclusion.”
Following Elcowire’s 2022 acquisition of KME, Hettstedt focused on implementing essential digital HR tools and processes in 2024. “We had to change the entire payroll for 200 people,” Melissa explains, “and we introduced a new, digital time recording system.”
Taking steps to reduce absenteeism
Reducing absenteeism remains a top priority. In 2024, the metrics showed a steady decline, with both sites working to identify vulnerable groups for targeted solutions.
Helsingborg plans to train all managers on work environment issues. Hettstedt has launched a health management system to promote staff health and wellness and conducted employee
surveys to ascertain needs. “We also initiated a bonus system for no illness days for 6 months, which we’ll evaluate twice yearly,” Melissa says.
From December 1, 2024, Helsingborg is a non-smoking site. “We provide lectures on the benefits of quitting smoking and offer compensation for costs associated with quitting,” Lisa explains.
Continued community involvement
Elcowire’s community involvement aligns with its social sustainability agenda. For example, Hettstedt supports various sports clubs, social institutions for children and organizations caring for children with cancer.
In Helsingborg, employees assist children in socio-economically challenged areas with homework in collaboration with the local handball club OV Helsingborg.
Elcowire HR conducts annual employee surveys to enhance workplace improvements, collecting feedback on the work environment, leadership, communication, and engagement.
In 2024, Lisa and Melissa also created an Elcowire Group HR policy, introduced in October. Lisa says, “It provides common targets and KPIs regarding, for example, attraction and recruitment, training and development, and performance management. The KPIs will be measured and followed up on continuously.”
Helsingborg
• Number of employees: 175
• Men: 138 (79%) Women: 37 (21%)
• White collar: 69 (39%) Blue collar: 106 (61%)
Hettstedt
• Number of employees: 263
• Men: 221 (84%), women: 42 (16%)
• White collar: 80 (30%) blue collar: 183 (70%)
Jonas Ciardi, based in Helsingborg, heads Elcowire Group’s efforts toward industry leadership within sustainability since early 2024. The sustainability roadmap going forward is shaped together with the German sites in Hettstedt.
internal waste, scrap from customers, and end-of-life products.”
Completing a double materiality assessment
Coordinating with sourcing and the Hettstedt sites
Climate change can serve as a good example: In Elcowire’s own operations, energy transition into fossil free sources is a top priority. Along the company’s value chain, greenhouse gas emissions upstream from purchased materials (mostly metals) for Elcowire’s operations are of course another important issue to monitor and follow up.
When Jonas Ciardi was appointed head of sustainability for Elcowire in May 2024, covering the three core areas Environment, Social and Governance (ESG), he soon identified a well-balanced roadmap as a very useful tool to manage and coordinate Elcowire’s sustainability progress.
“Obviously, Environmental responsibility is at the core of sustainability for an industrial company, also being an area I have long experience with from the Helsingborg site. However, assuming an industry leader position within sustainability also includes social responsibility, which is about valuing our people and seeing to that health & safety as well as training is high on our social agenda,” says Jonas. “Not forgetting the Governance side, living good business ethics as a strong foundation and one of the main topics for a sound company culture“.
With the latest development of corporate sustainability, the responsibility of a large industrial company encompasses not only the impact of its own operations, but also managing risks linked to the company’s activities along the value chain.
Starting from the environmental impacts, on top of that agenda they of course include addressing climate change and energy use but also managing pollution in general as well as the efficient use of water and material resources: “We all know that in society we need to minimize waste and improve circularity, that is to continuously make better use of resources. In Elcowire’s line of metal industry, this will mean an increasing degree of recycled metals as raw material,” says Jonas. “This requires improving our processes in order to take care of metal scrap –
One of the initial steps toward becoming more sustainable for any industrial company in this era is to complete a double materiality assessment. This helps to identify and to follow up on and reduce the important negative sustainability impacts of company operations as well as potential risks and, on the positive side, also business opportunities that are part of the sustainability agenda.
“Elcowire has completed a first round of this type of assessment last year,” Jonas says. He feels confident that the most important topics to include in the sustainability roadmap have been identified – among them the E, S and G areas mentioned briefly above.
“For each material area, Elcowire needs to have a relevant policy in place, as well as an action plan, targets and KPIs. This is the way to track that we do get closer to our sustainability targets for every year.”
Given the outcome of the first materiality assessment, and the priority ESG areas, the Sustainability Roadmap with its top priorities has become the way to show internal and external stakeholders how Elcowire is heading in the right direction.
“From the operations in Hettstedt we provide the necessary information for the sustainability work within Elcowire Group,” says Ulrike Standke, QHSEE Manager at the operations in Hettstedt.
However, there are also other potential risks in, above other activities upstream, mining. These risks may have to do with pollution, human rights, working conditions in the value chain or negatively affected communities.
“We need to make sure that there are no apparent risks connected to the suppliers we are partnering with,” says Jonas, and to this end the company will naturally have to depend on active work and support from Elcowire’s metal management function (read more on p. 20)
SUSTAINABILITY PERFORMANCE
Reporting scope
The Group comprises three manufacturing facilities. All facts and data represent the companies Elcowire AB, Helsingborg, Sweden, Elcowire Rail GmbH, and Elcowire GmbH (the production site is called Hettstedt), both the latter situated in Hettstedt, Germany.
Site descriptions
Elcowire Group has two wire rod mills – one in Helsingborg and one in Hettstedt – and several casting machines for alloys. The wire rod mills are not using the same casting technology which leads to some differences, for example regarding which energy is used in the process steps.
The wire rod product can be transformed into various products, such as drawn wire, stranded conductors, extruded strips and profiles. For railway purposes, contact wire is also manufactured. Within the group, also purchased wire rod made from aluminium can be processed into drawn wire and extruded profiles.
Water is used at all sites, mainly for cooling purposes and for on-site production of emulsions for lubrication and cooling.
Elcowire AB in Helsingborg, Sweden, consists of a wire rod mill with in-line casting and rolling. The shaft furnace and holding furnace in the rod mill are powered by natural gas. There are also two casting machines for alloyed copper where electricity is used to melt the copper.
The wire rod from the rod mill and the cast alloyed copper products are extruded into various other products.
The rod capacity in Helsingborg is approximately 150 000 tons per year. Extrusion capacity is approximately 40 000 tons per year.
Elcowire Rail GmbH in Hettstedt, Germany, is specialized in products for the railway industry. This includes transformation of copper wire rod into contact wires and stranded conductors, used for catenary systems within the railway sector. The site has capacity to cast alloyed copper. In total approximately 8 500 tons per year are processed at Elcowire Rail.
Elcowire GmbH in Hettstedt, Germany, consists of a wire rod mill with in-line casting and rolling. The shaft furnace is powered by natural gas, and the holding furnace is powered by electricity. The capacity of the rod mill is 150 000 tons per year. The wire rod from the rod mill is drawn into wire. Drawn wire is also stranded. The capacity for drawing and stranding is 30 000 tons per year.
Raw materials
The principal raw materials in Elcowire’s processes are metals: copper and aluminium. For copper solutions, the copper is supplied mainly as high purity copper cathodes. For aluminium solutions, aluminium wire rod is the raw material. Also metals used for alloying, such as silver, tin, and magnesium, are used in special products, but only in low concentrations (below 1 percent) to improve the products’ mechanical and electrical properties.
By reducing the energy use and extending the service time and product life, this improvement supports the idea of sustainable products with lower environmental footprint. Process chemicals are used for various purposes depending on process. In the rod mills, emulsions are used as lubricants in various rolling steps. In addition to lubricating substances, alsogases, oils and alcohols are used. In wire drawing, emulsions are used as lubricants. Alcohol is used for reducing oxides on the surface of copper wire, mainly wire rod.
Elcowire’s environmental approach involves minimizing and reducing any impact on the environment, such as emissions to air, land, or water. The operations should not harm nature and any impact should be minimized. Consequently, environmental aspects are assessed in respect to a life-cycle perspective and associated risks. Risk assessments are a part of the daily work – as well as when changes to the processes are made, or when new investments are considered. Best available technology should always be the first choice.
Environmental management
Certified environmental management systems according to ISO 14001 are mandatory for sites in the Elcowire Group. Elcowire AB in Helsingborg and Elcowire Rail in Hettstedt are already certified according to ISO14001, whereas Elcowire GmbH, Hettstedt, acquired by Elcowire Group in 2022, has been certified during 2023.
SUSTAINABILITY PERFORMANCE
The new mandatory EU sustainability reporting, requires an assessment of impacts, risks, and opportunities.
While the company is maintaining a focus on the UN Sustainability Development Goals going forward, Elcowire’s formal Sustainability Report is from the reporting year 2024 gradually adapting to the European Union standard ESRS (European Sustainability Reporting Standard) in its forthcoming Omnibus version, see p. 28–30.
In the new era in sustainability reporting, represented by the forthcoming EU legislation on mandatory sustainability reporting called CSRD (Corporate Sustainability Reporting Directive), and its associated standard ESRS (European Sustainability Reporting Standard) all companies should report on their most important sustainability matters – impacts, risks, and opportunities (IROs).
This requires an assessment of which such matters that are:
a) material (significant) to the market, the environment, and people, and b) financially material in influencing the company’s business value.
In a broader sense, this concept of double materiality assessment ensures that sustainability reporting focuses onthe topics that are most relevant for the organization and its stakeholders.
In 2023, Elcowire started the process of completing a double materiality assessment. Some of the early results of this analysis have already been considered in the 2023 Sustainability
Report. In particular, this refers to impacts from Elcowire’s production and activities along the value chain.
“The work with the double materiality analysis has given us a great insight to the reporting to come, and will truly improve our sustainability achievements,” says Jonas Ciardi, sustainability responsible for the Group and the Helsingborg site.
Also, opportunities are important, and in this regard Elcowire of course benefits from being a company that contributes to the ongoing transition in society toward green energy sources, electrification and sustainable transports.
“We are happy to acknowledge that this analysis of Elcowire’s material topics helps to underpin the seriousness of our sustainable business strategy and the relevance of our sustainability reporting,” says Paul Gustavsson, Elcowire’s CEO.
Read more about how Elcowire reports its sustainability impacts, risks, and opportunities on p. 28–33, and about the value chain impact analysis and preparations in the interview with Stephan Hanel on p. 20.
This year’s report is structured in accordance with the Corporate Sustainability Reporting Directive (CSRD), a key part of the European Union’s Green Deal. CSRD sets out clear and comprehensive requirements for how companies should report on environmental, social, and governance topics. Its aim is to improve transparency, comparability, and accountability in sustainability reporting across Europe.
Our 2024 report presents the results of our Double Materiality Assessment —an important concept in the CSRD framework. This means we look at both how sustainability issues impact our business, and how our business activities impact people and the environment. The topics we report on are those that are most material to Elcowire and our stakeholders.
The report is organized around the following main themes:
Environmental information
We present our efforts to reduce greenhouse gas emissions, improve energy efficiency, and support the transition to a low-carbon economy through sustainable copper solutions. We also address circularity, resource use, and environmental risk management.
Social information
This section includes our approach to employee wellbeing, diversity and inclusion, human rights, and responsible sourcing. We highlight how we foster a safe, fair, and inclusive workplace, and our expectations on suppliers and partners.
Governance information
Here we describe how sustainability is embedded in our corporate governance, including policies, risk management, and ethical conduct.
Our Commitment
This report represents more than a compliance procedure—it is a reflection of Elcowire’s values and strategic report direction. By reporting according to the CSRD, we are not only meeting regulatory expectations but also strengthening transparency and trust with our stakeholders. We remain committed to continuous improvement, and to playing an active role in shaping a more sustainable industry.
This short guide will help you to get to know and understand Elcowire’s new Sustainability Report. A few simple tips to get you acquainted with the new EU way of reporting sustainability according to CSRD and its associated standard ESRS (European Sustainability Reporting Standard) in the forthcoming Omnibus version.
1
2 3
Get the recent materiality overview! It tells you what the report covers.
Which areas/topics have been considered most important by the company? Read about the Double Materiality Assessment.
Any reporting method changes made in this year’s report?
Scan the General Information in the introduction.
Are you interested in Environmental, Social, or Governance achievements or performance?
The Report has four sections: General, Environmental, Social and Governance information.
The structure under each topic in the sections is more or less the same. In each section, every topic has a simple structure:
• Materiality
• Policies
• Actions & Resources
• Outcome disclosures for the year (KPIs).
Direct links: Learn more about the overview > Take a glance at the General Info > Read more here >
For the year 2024, Elcowire sustainability reporting has been somewhat adapted regarding its structure and contents, taking a visible step in the direction of the requirements in the European regulations CSRD (Corporate Sustainability Reporting Directive).
During the year, in line with this, a double materiality assessment was carried out. A double materiality assessment assesses a company’s impacts on the environment and society (impact materiality) alongside how sustainability issues affect the company’s financial performance (financial materiality). See p. 31 for details.
Reporting principles
Climate. A first screening was made of Elcowire’s Scope 3 GHG emissions during the year. This will enable the company to take initial steps toward establishing a Group Climate Target in 2025. See p. 39 for the outcome of the Scope 3 screening.
It is important to note that there is a distinction to be made regarding raw material input into Elcowire’s production processes. A considerable part of this input (25–30 percent) is not owned by the company. Instead, it is provided by customers. This means that in the Scope 3 category Purchased goods and services , only emissions from Elcowire-owned
materials are included, as this is the only part of the input that the company purchases and fully controls. The remaining part is controlled by the customers.
From a customer perspective, this practice is called toll manufacturing or tolling which means outsourcing all the production or part of it to a third-party company. The work of the third-party company, in this case Elcowire, is to process customer-provided raw materials to the required specification.
Biodiversity. The area Biodiversity, although considered a relevant risk in the 2024 Materiality Assessment, has been postponed by Elcowire as an area in need of initial basic analysis in the forthcoming two-year period.
How Elcowire practices Sustainability Due Diligence is shown in the following index table listing the core due diligence elements, and the relevant pages to learn more about each topic.
Core elements of due diligence
a) How due diligence is embedded in governance, strategy and business model.
b) How engagement with affected stakeholders is conducted in all key steps of due diligence.
c) How negative impacts are identified and assessed.
d) How actions are taken to address those negative impacts.
e) How the effectiveness of these activities is followed up, and how this is communicated.
Pages in the report
Material impacts, risks and opportunities, pages 31
Description of the materiality assessment process, pages 26.
Description of the materiality assessment process, pages 26
Pages 37 (climate); 42 (pollution); 46 (resource use and circularity); 49 (health and safety);
50 (workers in the value chain); 53 (business conduct).
Pages 37 (climate); 42 (pollution); 46 (resource use and circularity); 49 (health and safety);
50 (workers in the value chain); 53 (business conduct).
The rod capacity is approximately 150 000 tons per year. For extrusion, the capacity is approximately 40 000 tons per year.
Elcowire Rail in Hettstedt, Germany, is specialized in products for the railway sector. This includes transformation of copper wire rod into contact wires and stranded conductors, used for catenary systems. The site has capacity to cast copper alloys. In total, approximately 8 500 tons per year is processed at Elcowire Rail.
Elcowire in Hettstedt, Germany, consists of a wire rod mill with in-line casting and rolling. The shaft furnace is powered by natural gas, and the holding furnace is powered by electricity. The capacity of the rod mill is 150 000 tons per year. The wire rod from the rod mill as well as low oxygen copper are drawn into wire. Drawn wire is also stranded. The capacity for drawing and stranding is 30 000 tons per year.
Elcowire’s value chain can be described in three parts, upstream activities, own operations and downstream activities.
Mining, smelters and transports
The principal raw materials in Elcowire’s processes are metals: copper and aluminium. Ore is extracted from open pits and underground mines. In smelters, minerals are refined into pure metals.
For copper solutions, the copper is supplied to Elcowire mainly as high purity copper cathodes. In all, there are around 10 main suppliers to Elcowire of copper cathodes.
For aluminium solutions, aluminium wire rod is raw material.
Also metals used for alloys, such as silver, tin, and magnesium, are used in special products, but only in low concentrations (below 1 percent) to improve the products’ mechanical and electrical properties.
Various transport methods are used, including sea transport, road transport and rail.
Production
Elcowire Group has two wire rod mills – one in Helsingborg and one in Hettstedt – and several casting machines for oxygen-free copper. The wire rod mills are not using the same casting technology which leads to some differences, for example regarding which energy is used in each process step.
The wire rod product is transformed into various products, such as drawn wire, stranded conductors, extruded strips and profiles. For railway purposes, also contact wire is manufactured.
Water is used at all sites, mainly for cooling purposes and for on-site production of lubricating emulsions.
Elcowire in Helsingborg, Sweden, consists of a wire rod mill with in-line casting and rolling. The shaft furnace and holding furnace in the rod mill are powered by natural gas. There are also two casting machines for copper alloys where electricity is used to melt the copper.
The wire rod from the rod mill and the copper alloys are extruded into various profiles.
Various transport methods are used, including sea transport, road transport and rail.
For all Elcowire’s intermediate products, there will be a manufacturing process at the customers, where rod or wire products will be further processed into final products, for example, cables of various kinds. Elcowire’s Rail products are examples of final products in themselves.
The product end-of-life phase (final products) includes several sub-phases such as de-construction, demolition, transport, waste processing, and disposal.
Elcowire’s objective is to be the most sustainable copper solutions partner for our customers. Copper and aluminium based solutions are key to the transition into a more sustainable and low-carbon society.
Accordingly, Elcowire’s business model and strategy is to develop and offer its customers solutions that support society’s ongoing climate change-related transition into electrification, renewable energy, and sustainable transports.
Low-carbon Copper solutions from Elcowire should have the lowest carbon footprint on the market. These solutions are based on low-carbon and recycled copper to meet rapidly increasing market needs for climate change mitigation.
The Group’s sustainability policy scope is the entire value chain, upstream and downstream. Relating to Elcowire operations, the aim of the Group Sustainability Policy is to prevent, reduce, minimize and remediate all material sustainability impacts and risks, actual and potential, as well as to pursue material sustainability-related opportunities. In accordance with this, Elcowire places the same high demands on suppliers and other collaboration partners as on its own operations.
Main stakeholders
In connection with the double materiality assessment carried out in 2023–2024, Elcowire has updated the picture of the company’s main stakeholders.
• Shareholders being actual and potential owners of the company are one clear key group. Banks/Lenders is another important group for obvious financial reasons.
• From an upstream process perspective, Suppliers and Suppliers’ suppliers ranging from mines to smelters are key stakeholder groups.
• In Elcowire’s manufacturing and other Group operations, the Own workforce is a key group, of which Management groups and the Board of directors form a vital part.
• In the downstream tier, Customers form a key group.
• From the Society point of view Neighbors, Media and NGOs are important stakeholder groups, as well as Authorities
Stakeholder group How dialog is organized
Employees Employee surveys; Staff and plant meetings; Performance reviews, working groups and committees. Read more on pages 31–33
Customers Trade shows/expositions, surveys and questionnaires, ongoing dialog at the local level.
Dialog purpose
Create engagement, share employee insights, increase understanding for sustainability.
Facilitate sales, create confidence in Elcowire’s sustainability work initiatives, understand customer expectations of sustainability initiatives, help customers in achieving sustainability targets, improve the customer offering.
How results are considered and impact materiality
Elcowire’ employees are one of the most important stakeholder groups with significant impact on sustainability activities.
Customers’ interests encompass a broad number of sustainability topics, with a particular focus on climate, energy, circularity, human rights and business conduct throughout the value chain.
Suppliers
Supplier meetings, Supplier Code of Conduct dialog, ongoing dialog at local level. Read more on pages 50.
Shareholders Conferences, meetings and surveys.
Society Local projects for community involvement, ongoing dialog at the local level.
Promote requirements for suppliers, deepen insights into suppliers’ sustainability performance with a focus on Supplier Code of Conduct main areas.
Increase transparency and trustworthiness with shareholders.
Create understanding of the impact on neighbors from production processes, strengthen employer branding.
Dialog with suppliers includes self-assessment according to Supplier Code of Conduct. Read more on page 50.
Topics deemed to be material for investors are taken into account in the double materiality assessment.
Elcowire is actively engaged in local communities wherever the Group operates. The focus is on physical activity among young people as well as other local projects. See more on page 22.
Overall process
This report describes the process for Elcowire Group’s double materiality assessment and consequently, which sustainability matters that are material to the business. Double materiality assessment according to the upcoming CSRD/ ESRS legislation requires that companies have a process to assess which are the most essential sustainability issues of the business.
The process for assessing Elcowire Group’s impact on sustainability matters (impact materiality) was made with external support, and pursued in four steps:
1. A list of all potentially relevant sustainability matters was prepared
2. Elcowire’s actual and potential impact on sustainability was described and compared to the list
3. Assessments were discussed and made of impacts
4. Material impacts were singled out through the process described below
Based on available information related to the relevant areas, their impact materiality was assessed based on the following indicators:
• Scale (how severe negative impact is or how advantageous the positive impact is)
• Scope (how widespread the consequence is)
• Irremediable character : Reversible within <1 year, 1–3 years, 3–5 years, 5–10 years, within >10 years, or irremedi able (not relevant for positive impact)
• Likelihood: 0–24%, 25–49%, 50–74%, 75–99% and 100% (definite)
A result for each impact was calculated by the following formula:
Impact result = (Scale + Scope + Irremediable character)
* likelihood.
Pre-work was made in the form of an external assessment, made by external consultants. This external assessment was then merged with an assessment conducted by Elcowire Group representatives.
The merged results of these two assessments were then discussed in-depth in a workshop format to find general consent for topics and sub-topics. The workshop was held at Elcowire’s headquarters in Helsingborg and included Sustainability manager, CFO, CEO and external consultants.
It was decided that a result of ≥24 for positive impact or ≥25 for negative impact scores indicates that the area is significant from an impact perspective. For positive impact, irremediable character was not considered, and therefore the threshold for significance differs.
The first assessment of Elcowire Group’s impact on sustainability resulted in ten material sub-topics. During a subsequent workshop, participants provided new insights that led to six additional material sub-topics, and the assessment was therefore altered to include the following.
Initial list of risks and opportunities Survey Workshop Verify list Limitations on consequences
Process for assessing Elcowire Group’s financial materiality.
A sustainability matter is material from a financial perspective if it represents a material risk or opportunity for Elcowire Group, in the short, medium, or long term.
“Financial” refers to the financial impact a sustainability related risk or opportunity may have on Elcowire Group, its operations, products and services, or business relationships (upstream and downstream). To assess Elcowire Groups financial materiality, the above process was used.
The gross list of risks and opportunities was listed in a digital survey that was sent to twelve key individuals in Elcowire Group. The objective was to widen the scope of input to the assessment. For each risk and opportunity, respondents estimated the likelihood of the risk or opportunity occurring and the financial consequence of this. The time perspective for the survey assessment was medium-term (2–5 years).
The outcome of the survey was then discussed in depth by the core project team in Elcowire Group and, if deemed necessary, the assessment was updated. The survey data formed the basis for a workshop.
Selected respondents to the survey also participated in a physical workshop. During the workshop, assessed risks and opportunities were analyzed, and the result was adjusted based on the discussions. Since the survey was made individually, some decisions were adjusted based on discussions in the group. Risks and opportunities were also discussed from different time perspectives and assessed based on short-term (within one year) and long-term (over five years) views, in addition to the medium-term view assessed in the survey. Special focus was placed on risks and opportunities expected to increase in the long term. No risks or opportunities were considered to increase in the short term.
It was decided that a result of ≥11 for risks and opportunities would indicate that a particular area should be deemed significant from a financial perspective.
Risks and opportunities identified in financial materiality assessment 2024.
ESRS topic Sub-topic Risk horizon
E1 - Climate Change Risk of higher fees for climate emissions that directly or indirectly affect Elcowire Long-term
S2 – Workers in the value chain Risk of a supplier to Elcowire committing significant human rights violation
Short-term.
E1 – Climate Change Electrification of society as a demand opportunity Short-, medium- and long-term
E5 – Circular economy Increased demand for recycled copper as raw material input Long-term
E1 – Climate change Higher demand for low-carbon products in the copper product industry. Long-term
ENVIRONMENTAL INFORMATION
Elcowire is committed to being the best sustainability choice for its customers, including offering low-carbon solutions built on the lowest carbon footprint in the industry.
Material impacts, risks and opportunities within Climate change (IROs)
Energy use and energy mix
Affected parts of value chain Time frames
Own operations and upstream suppliers.
Gross greenhouse gas emissions within scope 1, 2, 3 and total greenhouse gas emissions
Own operations and upstream suppliers.
Short – medium – long term
Material opportunities within Climate change
High demand for low-carbon products in the copper product industry.
Increased demand for recycled copper as raw material input
Policies for Climate change
Own operations and downstream customers.
Short – medium – long term
Relationship to strategy and business model
Elcowire’s energy consumption levels as well as the energy mix have consequences for climate change in society.
Elcowire’s total greenhouse gas emissions come from its own operations, but above all from upstream chain emissions (scope 3) via purchased products and services, and the emissions have clear consequences for climate change in society.
Short – medium – long term
Own operations and downstream customers. Medium – long term
The social transition provides business opportunities because it requires low-carbon solutions that can reduce CO2 emissions in various ways.
The climate change issue also provides business opportunities as required emission reductions drive global demand for recycled copper products. Group policies Policy content Affected stakeholders Level responsible for implementation
Sustainability policy Elcowire strives to minimize both its own and its products’ carbon footprint. Our ambition is to monitor, prioritize and manage climate change impacts and risks, in line with the Paris agreement that aims to keep global warming at below 1.5 degrees.
Full value chain Policy approved by the Board, implementation within Operations
Elcowire’s energy consumption and mix, as well as Scope 1 and 2 emissions have already been reported for a number of years. Elcowire has the ambition to establish the equivalent of a scientifically based group-wide climate target in 2025–26.
In line with the Sustainability Policy, Elcowire is committed to report about its actions to mitigate and adapt to climate change and the resources allocated to fulfil such actions and inform about its contribution to climate change improvements in society.
Decarbonization of Elcowire’s own operations has already started with a transition into renewable/fossil-free electricity at all production sites. This process will continue in the coming mid-term period and will include finding decarbonized solutions for processes that historically have required the use of fuels such as natural gas or diesel, see below and case stories at p. 6.
The next decisive step in decarbonization is about fully integrating recycled copper into our offering, since the low-carbon footprint of recycled copper will decrease the total footprint of Elcowire solutions.
An innovative solution will replace fossil fuels with renewable hot biogas, generated from industrial biomass residues. This unique biogas technology enables Elcowire to melt copper without the use of any fossil-based fuels. By transitioning into renewable biogas, Elcowire is setting a new global standard for energy-efficient and environmentally responsible production methods. At a value of 500 million SEK, this marks the first implementation of the new biogas technology in the metal industry.
The biogas agreement builds on a successful feasibility study and specifies that an on-site energy plant will be design capable of producing 9 MW of renewable biogas for Elcowire’s Helsingborg facility, over a 15-year period.
Historically, the copper industry has depended on fossilbased fuels such as natural gas to achieve the necessary heat, exceeding 1,000° C to melt copper.
The transition into fossil-free electricity has been made for all production units in Helsingborg and Hettstedt. Detailed calculations on this Scope 2 emissions reduction are found in the Outcome 2024: Greenhouse gas (GHG) emissions table on p. 41.
Elcowire has taken first steps toward becoming the first copper wire producer globally to fully replace fossil gas with a Biogas plant in its production process, setting a new standard for sustainable metallurgy. The project addresses a critical challenge in the industry, as copper melting has traditionally relied on fossil fuels to achieve the high temperatures required for metal production.
including potential emissions reduction initiatives
Elcowire has the ambition to establish the equivalent of a scientifically based group-wide climate target in 2025–26.
The general scope of the calculations (all details on page 37) includes all the three sites within Elcowire Group: Elcowire Helsingborg and the two sites in Elcowire Hettstedt.
Scope 1 emissions are mainly due to the use of natural gas but also to the use of diesel in Operations, and scope 2 emissions come from the use of electrical energy.
An initial screening was performed in 2024–25 of the 15 potential Scope 3 emissions categories (see figure on next page).
Category 1, Purchased goods and services, turned out to be the by far most significant, representing more than 80 percent of Scope 3 emissions in the screening, see table to the left.
Copper & aluminium suppliers are about 20 worldwide. Worth noticing: difference in the processes – chemical or mechanical creates a difference in footprint.
A number of Scope 3 categories represent carbon emissions that can be deemed either much less significant, negligible in the context, or close to zero.
Emissions reduction in Scope 3. In general, Scope 3 emissions from purchased goods and services can be reduced through a dedicated supplier program for Elcowire’s metal suppliers currently still under development. Initially, this will have a focus on collaboration to ensure that these suppliers have plans and processes in place to reduce carbon emissions from their own operations.’’
Energy consumption for production purposes is based on fuel combustion, mainly natural gas used for melting in shaft furnaces, but also on purchased electricity. Purchased electricity is used for melting in the oxygen-free copper production and for subsequent support processes such as rolling, drawing, stranding and extrusion. A relatively small amount of diesel is also used as forklift truck fuel.
At the site in Helsingborg, Sweden, energy is recovered from flue gases in the shaft furnace used for copper rod production. The recovered energy is used in two ways: internally, for heating purposes, and externally, for distribution to the district heating network of the city of Helsingborg for heating of homes and industries, and for producing district cooling. After heat recovery, the flue gas is cleaned in a baghouse (textile filter).
The table to the right summarizes the outcome of Elcowire’s energy consumption and energy mix for 2024. The absolute increase of the energy consumption total is due to the increase in production volume compared to 2023. However, the energy intensity per produced ton decreased which is visible in the graph, a sign of energy efficiency improvement.
4. Fuel consumption from other fossil sources (MWh)
5. Consumption of purchasaed or acquired electricity, heat,
8. Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of bilogic origin, biogas, renewable hydrogen etc (MWh)
9. Consumption of purchased or acquired electricity, heat, steam and cooling
10. The consumption of self-generated non-fuel renewable energy (MWh)
11. Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
energy consumption (MWh) (calculated as the sum of lines 6 and 11)
The table to the right summarizes the outcome of Elcowire’s CO 2 emissions for 2024. The absolute increase of Scope 1 emissions energy consumption total is due to the increase in production volume compared to 2023. The Scope 2 absolute emissions figure, and the emissions intensity per produced ton increased only slightly.
*Source Grid Electricity Emissions Factor https://www.carbondi.com/#electricity-factors
ENVIRONMENTAL INFORMATION
Elcowire is committed to being the best sustainability choice for its customers, including acting in accordance with all applicable laws and regulations regarding emissions and substances included in its manufacturing activities.
Material impacts, risks and opportunities within Pollution (IROs)
From a value chain perspective, there are various emissions to air, water, and soil to consider and prevent or reduce.
Regarding substances of high concern and very high concern, they shall be prevented, and restricted.
parts of value chain Own operations and suppliers upstream
Current best practices technology still requires certain substances and causes emissions of various kinds, see also process description on p. 31. Elcowire’s policy is however to prevent and reduce risks and impacts, see below.
Policies for Pollution
Elcowire’s operations are in themselves material- and energydemanding. From a value chain perspective, there are various emissions to air, water, and soil to consider and prevent or reduce. The overall objective for Elcowire is to prevent and reduce all such existing and potential pollution risks and impacts on people and the environment.
responsibility for implementation
Policy approved by the Board, implementation within Operations
ENVIRONMENTAL INFORMATION
Regular environmental risk assessments of business value chain should be performed, as well as evaluations of the efficiency of preventive and mitigating actions. Elcowire’s assessment for 2024 is that the current permits are adapted to the capacity of the facilities. During the year, operations have been conducted in such a way that the current conditions have been met. There is no known soil contamination.
Regarding plans for reduction of substances of high concern and very high concern, please see section 3 on this page.
Prevention and reduction. The overall objective for Elcowire is to continuously prevent and reduce all such existing and potential pollution risks and impacts on people and the environment. With a view to continuous prevention and reduction, all material pollution shall be monitored and reported on relevant communication levels. and all relevant permits and conditions must be met. See below for chemicals, including substances of high and very high concern.
Zero legal non-compliance or violations of environmental regulations. Elcowire is committed to acting in accordance with all applicable laws and regulations, all relevant permits and conditions must be met as well as international standards for environmental protection, such as those concerning emissions to air, soil, or water (including unplanned leakages or spills), including obtaining and complying with necessary permits, reporting and inspections by authorities and taking corrective actions. This is why the target is set at zero such non-compliance cases. If cases do occur, they shall be specified.
Process chemicals are used for various purposes depending on process.
In the rod mills, emulsions are used as lubricants in various rolling steps. In addition to lubricating substances such as acetylene, also gases, oils and alcohols are used. In wire drawing, emulsions are used as lubricants. Alcohol is used
for reducing oxides on the surface of copper wire, mainly wire rod.
Regarding substances of high concern and very high concern, they shall be prevented, and restricted. Historically, this type of chemicals management has been managed on the local production site levels according to all applicable rules and permits. In the year 2025, however, an initial Group level aggregate inventory of such SVC and SVHC substances will be performed. This aggregate outcome will be ranked after perceived danger levels and include quantity assessments.
There were zero environmental non-compliances leading to fines, or violations of local environemntal regulation in 2024.
Elcowire is committed to being the best sustainability choice for its customers, including using water resources wisely in all processes.
Water Materiality
Policies for Water ENVIRONMENTAL INFORMATION
Material impacts, risks and opportunities within Pollution (IROs)
Water usage
Affected parts of value chain
Own operations and suppliers upstream
Time frames
Short – medium – long term
Relationship to strategy and business model
Water is needed mainly for cooling, but use intensity is continuously addressed and decreased.
Group policies
Sustainability policy
Affected stakeholders
Level responsibility for implementation
Policy approved by the Board, implementation within Operations Policy content
Elcowire identifies all actual and potential impacts and risks regarding water and marine resources in its own activities as well as in the value chain. In particular, water use in water stressed areas is to be avoided or reduced.
Own operations as well as value chain
Total water use, as well as water use in water stressed areas shall be reported.
See case story to the right for the actions completed in Hettstedt 2024.
Before, the cooling system at the wire drawing and stranding of Hettstedt North was based on an open system which resulted in an unnecessarily high water consumption figure.
Water project in Helsingborg. Elcowire’s facility in Helsingborg has taken another step toward sustainable water management with the installation of control equipment that optimizes the use of cooling towers. As part of the process, the salinity levels of the evaporated water are carefully monitored through conductivity measurements. To maintain optimal balance, softened groundwater is added as needed. This advanced system has led to a significant reduction of water consumption, saving 10 000 cubic meters per year.
Elcowire wants to continuously decrease water use which will be reflected in a defined target in the coming two years, and further action planning.
Water consumption is mainly for cooling and for make-up water. At the Helsingborg site, a water cleaning facility has earlier been installed, which makes it possible to clean the water and thus decrease water consumption since pollutants, such as soot and copper, are removed.
The cleaning facility also lowers emissions from discharged water to recipients.
Helsingborg uses drinking water from own wells which is treated by descaling of the water. Hettstedt Rail uses drinking water for its processes.
At Hettstedt, there are two types of water being used, drinking water and process water. Which type is used depends on the application. For demanding applications such as emulsions, drinking water is used to ensure high quality of the emulsions which enables a proper lubrication in the rolling and drawing processes.
The water consumption in 2024 was 606 199 m 3 (594 271) The absolute increase of the water consumption total is due to the increase in production volume compared to 2023. However, the water intensity per produced ton decreased which is visible in the graph, a sign of efficiency improvement. Significant effects of the current plans and actions described in the case stories will be visible in 2025.
facility in Hettstedt has taken another step toward sustainable water management with the installation of control equipment that optimizes the use of cooling towers. As part of the process, the salinity levels of the evaporated water are carefully monitored through conductivity measurements. This advanced system has led to a significant reduction of water consumption, saving 350 000 cubic meters per year.
Elcowire is committed to being the best sustainability choice for its customers, including low-carbon recycled or primary copper solutions for improved circularity
Resources and Circularity Materiality
Material impacts, risks and opportunities within Resources use and Circularity (IROs)
parts of value chain
Increased circularity Own operations, suppliers upstream and customers downstream
medium –long term
to strategy and business model
Circularity has a long tradition in metal-based industry, and internal metal waste in Elcowire facilities is, to a very high degree, recycled. If the metal scrap cannot be recycled internally, it is taken care of by sub-suppliers to ensure that the metal is recycled back into new high-grade material.
Historically, Elcowire products have been dependent on primary copper. This is gradually changing toward recycled copper as a customer choice option in Elcowire’s Low-carbon Copper solutions.
Elcowire’s long-term view on circularity is reflected in the vision below, where opportunities to increase circularity and minimize waste will continuously be identified and pursued in the upstream supply chain, in own operations and by recycling process scrap as well as end-of-life products from customers
downstream. Plans for the medium term will be published in the years to come. For the use of recycled copper, see targets and plans on p. 47.
Elcowire’s waste management and processing of materials are focused on transitioning from linear flows to circular flows, supporting the vision above, and the idea of a circular economy. Discussions are ongoing with customers to enable Elcowire processing of high-quality scrap coming from their facilities, and investigations are in place of such possibilities to use scrap from their end-of-life products, thus closing the loop.
Sustainability policy Elcowire’s view on circularity is reflected in the vision below, where opportunities to increase circularity and minimize waste are continuously identified and pursued
operations as well as value chain
approved by the Board, implementation within Operations
An important medium-term target for Elcowire is to fully integrate recycled copper as a customer choice option within low-carbon copper solutions.
Another future target is to prepare operations to enable receiving end-of-life products from customers to be recycled into new products.
Both these targets are currently under investigation regarding technical requirements. To further increase the percentage from today’s levels of recycled copper, mainly based on using various types of scrap for the production will most probably include additional process steps such as pre-processing to clean input materials from impurities, and perhaps also other steps.
Outcome 2024:
Resource use and circularity
Percentage recycled copper: 22 percent
The figure for copper above is largely based upon recycled copper content in the currently purchased raw material (cathodes), and to a smaller degree upon customer scrap returned to Elcowire.
copper rod
One of the remarkable aspects of recycled copper is its energy efficiency. The recycling process consumes far less energy than the production of primary copper. As a result, the use of recycled copper not only conserves valuable resources but also helps lower carbon footprints, making it an outstanding environmentally responsible choice.
The only limitation is that there is not enough copper material to recycle to meet all tomorrow’s needs. Hence the need also for Low-carbon Copper. Read more on p. 11.
Elcowire is committed to being the best sustainability choice in its industry, including offering all its employees a safe and secure working environment, and promoting diversity, equity and inclusion.
Material impacts, risks and opportunities within Own Workforce (IROs) Affected parts of value chain Time frames Relationship to strategy and business model
Health & Safety Own operations Short – medium – long term Elcowire’s energy consumption levels as well as the energy mix have consequences for climate change in society.
Sustainability policy Elcowire strives to be an attractive and respected employer. The companies within the group must ensure a good working environment from a physical and social point of view, as well as be attractive employers regarding the employees’ personal development
Health & Safety
Health & Safety is a high-priority area for Elcowire: the inhouse program for safety management aims to to offer employees a safe and secure working environment, prevent injuries at all units and avoid recurrence of a certain type of incident.
operations Policy approved by the Board, implementation within Operations
Elcowire works to constantly improve health and safety as well general well-being in the workplace. In general, progress for occupational health and safety is tracked along three key parameters: risk alerts, accidents, and absence.
All sites have safety and risk evaluation initiatives according to local needs and conduct reporting monthly to establish common standards across the group.
Elcowire has a groupwide zero-accident vision that guides the risk assessment strategy. Since 2012, focus has been set on preventing incidents by continuously identifying, documenting, and analyzing risks. Safety is a collective effort, and each employee is involved with pinpointing at least one potential risk each year.
In line with its high-priority ambitions for safety, Elcowire has appointed a safety manager at Helsingborg site, and introduced the measurement standards used by most large industrials in their sustainability reporting, see story on p. 21.
Despite the intense work on safety, there is still room for improvement and to reach the zero-accident vision within Elcowire Group – Safety First!
Fatalities: Work-related fatalities has a zero target.
Accidents: A work-related accident is counted as leading to a Lost-time injury (LTI) case as soon as the injured person cannot work the following full working day. The Lost-time injury frequency rate (LTIFR) indicates how many such injury cases an organization has per 1,000,000 working hours, which corresponds to a work year for 500 full-time employees. An LTIFR target will be elaborated in the year 2025 and will probably be set for a target level to be achieved by end of year 2027.
Average absence days: Elcowire has also introduced the Lost Work Days (LWD) measurement on Group level, which is the average number of absence days for LTI cases. This measurement indicates the severity of the occurred cases.
No work-related fatalities were recorded in 2024. (2023: 0) In 2024, there were 15 LTI cases/accidents (9), as defined above. The increase was mainly due to Hettstedt.
The LTIFR for 2024 was 24.1 (14.5 ). The increase was mainly due to accidents related to different kinds of manual handling of situations that rendered in absence.
The Lost Work Days (LWD) measurement on Group level is the average number of absence days for LTI cases. This measurement indicates the severity of the occurred cases.
The LWD for 2024 was 90.3 (17.4). The increase was due to a number of longer absence cases in Hettstedt as well as one longer absence case in Helsingborg. An immediate action taken was the installation of a lifting device to reduce the number of heavy lifts. For the cases in Hettstedt immediate and corrective action are in place to avoid reoccurrence. In all cases, the 5-Why methodology is always used to find the root causes for accidents and to determine correct actions.
Elcowire is committed to responsible and sustainable procurement throughout its value chain. Together with our suppliers we can create a more sustainable future.
Workers in the Supply Chain Materiality
Material impacts, risks and opportunities within Workers in the supply chain (IROs) Affected parts of value chain Time frames Relationship to strategy and business
Potential working conditions risks or other risks for workers in the supply chain
Upstream supply chain Short – medium – long term Elcowire’s strategy and business model is dependent upon responsible raw material suppliers.
Group policies Policy content
Sustainability policy Suppliers should have work-related rights and acceptable working conditions in place including all relevant human rights areas. They should also ensure a good working environment from a physical and social point of view.
Supplier Code of Conduct Suppliers should work to constantly improve health and safety in the workplace, and must, as a minimum, comply with national laws and/or collective agreements.
Measures should include controlling risks and take the best reasonably possible precautionary measures against accidents and occupational diseases, including applying management systems and controls to identify and understand potential risks and prevent incidents and injuries.
Upstream supply chain Policy approved by the Board, implementation within Operations
Upstream supply chain Policy approved by the Board, implementation within Operations
Risks concerning Workers in the supply chain is something that is yet to be further mapped regarding working conditions risks as well as potential Human Rights infringements.
The main potential risk group is perceived to be copper cathode suppliers. The number of significant such suppliers addressed is approximately 10 globally.
The main tool in general to address such risks is through getting these suppliers to sign Elcowire’s Supplier Code of Conduct, which means that their company is fully compliant with the Code. An alternative way of addressing Supplier Code of Conduct compliance was added in 2024 by adding to every order form : “by accepting the order you agree to Elcowire’s Supplier Code of Conduct.”
Implementation of Supplier Code of Conduct compliance signed by suppliers started in 2024 and will continue in 2025, accompanied by the first round of Supplier audits, directed toward the highest perceived risks. For Supplier audits, Elcowire has developed a questionnaire, which will be sent to audited suppliers well before the audit takes place as a preparation letter and also works as a suggested agenda for the planned audit visit. The questionnaire includes sections on Management Systems, Workforce & Engagement, Health & Safety, Sustainability and Process Control.
Supplier Code of Conduct implementation aims at full coverage for all suppliers that deliver over 50 000 Euros annually in purchasing spend value, in particular copper cathode suppliers, who represent 98 percent of the total purchasing spend.
Implementation of the new Supplier Code of Conduct has started in 2024. Coverage by signed code or by order agreement in the target group of main cathode suppliers is 100 percent.
Elcowire is committed to responsible and sustainable procurement throughout its value chain. Any communities affected by material impacts or risks from the suppliers’ business or operations must be declared.
Material impacts, risks and opportunities within Affected communities (IROs) Affected parts of value chain Time frames Relationship to strategy and business model
Impacts or risks for communities from suppliers’ business or operations
Upstream supply chain Short – medium – long term Elcowire’s strategy and business model is dependent upon responsible raw material suppliers.
Group policies Policy content Affected stakeholders Level responsible for implementation
Sustainability policy
Supplier Code of Conduct
See text below in Supplier Code of Conduct, the Group Sustainability Policy has the same statement.
Any communities affected by material impacts or risks from the supplier’s business or operations, see below for examples, whether the impacts are continuous or linked to certain events, must be declared and the impacts described to Elcowire, as well as the work done to prevent or reduce them.
Upstream supply chain Policy approved by the Board, implementation within Operations
Upstream supply chain Policy approved by the Board, implementation within Operations
Risks for affected communities is something that is yet to be further mapped and addressed with Elcowire’s Supplier Code of Conduct. Examples include:
• Affected communities where the inhabitants live or work for the supplier, and are affected by activities in supplier sites, factories or other infrastructure
• Affected communities in the supplier’s value chain affected by direct operations, or by own or sub-suppliers logistics or distribution.
• Affected communities in the beginning or end of the value chain, either where metals or minerals are extracted, alternatively affected by waste management or recycling activities
• Affected indigenous people
The main potential risk group is perceived to be copper cathode suppliers. The number of significant such suppliers is approximately 10 globally.
Implementation of Supplier Code of Conduct approvals signed by copper suppliers started in 2024 and will continue in 2025, accompanied by the first round of Supplier audits, also see page 50.
Supplier Code of Conduct implementation aims at full coverage for all suppliers that deliver over 50 000 Euros annually in purchasing spend value, in particular copper cathode suppliers, who represent approximately 98 percent of the total purchasing spend.
Implementation of the new Supplier Code of Conduct has started in 2024. Coverage by signed code or by order agreement in the target group of main cathode suppliers is 100 percent.
GOVERNANCE INFORMATION
Elcowire has a zero-tolerance objective for bribery or corruption in any form, promotes fair competition, and all employees shall take part in Code of Conduct training. For suppliers, similar behaviour is required. Elcowire also expects its suppliers to comply with and stay up to date with applicable laws and regulations (including obtaining valid permits) as well as internationally recognized standards, conventions and UN declarations.
Material impacts, risks and opportunities within Business ethics (IROs) Affected parts of value chain Time frames Relationship to strategy and business model
Risk of serious Code of Conduct breaches, including bribes and corruption.
Own operations Short – medium – long term Although risks of business ethics violations cannot be totally eliminated, training on a regular basis will minimize them.
Risk of serious Supplier Code of Conduct breaches Supply chain Short - medium - long term See also Workers in the Supply Chain on p 50
Group policies Policy content Affected stakeholders Level responsible for implementation
Sustainability policy Elcowire does not accept any bribery or corruption, and works to eliminate extortion, bribery, nepotism, fraud and money laundering. Regarding financial crime, Elcowire complies with all national and international guidelines that aim to prevent, discover and remedy it. Elcowire promotes fair competition.
Supplier Code of Conduct Suppliers to Elcowire shall not participate in or accept any kind of fraudulent procedure. They shall be committed to not accepting payment, gifts, or other compensation from third parties that in any way influence, or can be perceived to influence, the objectivity of business decisions.
Suppliers to the Elcowire Group must compete in a healthy way and with integrity and conduct their business in full compliance with antitrust legislation.
Own operations Policy approved by the Board, implementation within Operations
The revised Elcowire Code of Conduct (original language Swedish) was approved by Elcowire’s Board of Directors in September 2024. In November 2024, it was introduced to the organization on Group Intranet, in Swedish and German. The document shall be available in English (Group original version) and also translated into the home language of every Elcowire company.
Since 2024, the current version of the Code of Conduct will be available in the Group Management System site on the Elcowire Intranet, together with all other valid Group Policies and other Cross-Group steering documents.
An Anti-corruption and bribery training, aiming to give the participants a basic understanding of important anti-corruption concepts and ability to proactively mitigating bribery risks, was introduced in 2024 in the Swedish part of Elcowire.
The target going forward is that all employees should take part in Code of Conduct training. Code of Conduct training will start in 2025, possibly combined with an Acceptance letter where the employee confirms knowledge of and adherence to the Code.
2024: Business ethics Code of Conduc t training will begin in 2025. Anti-corruption and bribery training will continue in 2025. Supplier Code of Conduc t implementation continues in 2025, see also p. 50.
Upstream supply chain Policy approved by the Board, implementation within Operations and suppliers
Furthermore, Elcowire has a zero-tolerance objective for bribery or corruption in any form. All relevant employees should therefore also go through Anti-corruption and bribery training.
Lilian Hegg comments on the financial year 2024 and Elcowire’s current priorities from a CFO perspective.
How would you summarize the financial year 2024 for Elcowire? Any particular achievements or challenges?
In all, it was a good year. Elcowire continued to take important steps in the right direction with improved profitability. Net sales grew by more than 5 percent, mainly related to volume growth from our downstream Business Units.
Operating profit almost doubled with improvements in both Helsingborg and Hettstedt. Solvency increased to 42 percent from 35 percent the year before, due to the increased profitability.
So, performance was good, however we need to keep working on further developing and improving areas with high potential and
become even more efficient. Continued integration between Helsingborg and Hettstedt will support this.
What performance measures do you monitor most frequently, or even daily in your work? Why?
We closely follow our defined key performance indicators, and we follow these KPI’s on a daily basis for all parts of the Group, which is a very useful for both our management and employees.
Working capital is another important KPI, which we follow on a weekly basis. Stock level and account receivables are monitored closely. Inventory levels are key because we are in a very capital-intensive industry with high working capital, related to copper being a high value input material and recently also with a quite volatile price development.
In your view, which are the financial priorities for 2025?
Although we have had a stable year, we need to continue on the path of continuous improvement. Both on the cost side and with working capital efficiency.
Which are your priorities in the next three-year period with regard to investments?
In general, I would say we should continue to invest in sustainability and innovation to further sharpen our competitive edge.
There is also great potential in the ongoing coordination of our processes and platforms to realize positive impacts and synergies, which at its core really is a change management program. By getting one common Group system through our SAP implementation, we will streamline our ways of working and processes and generate improved efficiency.
To be even more specific: When we get better reporting in place, we should be able to spend less time trying to capture the right information and instead devote more time to important things like business analysis for the right business decisions.
From a pure manufacturing perspective, we of course need to increase capacity, and adapt our production to recycled metal input, whether it is own waste or recycled materials from customers.
Do you see connections between financial performance and sustainability for Elcowire?
Absolutely. Operational efficiency improves financial sustainability, and it refers to how well the business eliminates wastefulness in its production processes.
The word sustainability has to do with survival and long-term planning. So, sustainable finances need to take the important ESG factors into account. The reason we are investing in sustainability is because we want to be here in the long run.
PAUL GUSTAVSSON CEO
LILIAN HEGG CFO
FREDRIK ADLERCREUTZ Head of BU Rod
STEPHAN HANEL Head of Metal Management
CHRISTOPH BUSCH Head of BU Wire & Strands
JAN SIEBERT Head of BU Rail
JONAS CIARDI Head of sustainability
CATHARINA BLÄCKBERG Head of Corporate Communication
MIKAEL JOHANSSON Head of BU High Voltage and Specials
JOHAN SKYLLERSTEDT Plant Manager Helsingborg
CARSTEN HOHMANN Plant Manager Hettstedt
ANNA LILJEDAHL Chairman of the Board of Directors, Elcowire Group President and CEO of Liljedahl Group
BENGT LILJEDAHL Board member of Elcowire Group Founder of Liljedahl Group
FREDRIK LILJEDAHL Board member of Elcowire Group Deputy CEO of Liljedahl Group
LARS HAGELBERG Board member of Elcowire Group CFO of Liljedahl Group
TORBJÖRN PERSSON Board member of Elcowire Group Business Developer
SVANTE NILSSON Board member of Elcowire Group Board Director and Advisor
DAN BROSTRÖM Board member of Elcowire Group CEO of Koncentra AB
THOMAS WIDSTRAND Board member of Elcowire Group Board Director and Advisor
Elcowire Group AB
914 SE-251 09 Helsingborg Sweden Tel +46 (0)42 19 53 00