As a result of the unfavourable development of the aluminium market in 2019, the members of the Board of Directors decided that Slovalco would reduce the planned production capacity of primary aluminium by 16% from the beginning of 2020. We gradually shut down 37 electrolysis pots out of a total of 226, thus producing 28,800 tons less aluminium in that year. Together with other market influences, this meant a 20% reduction in the final production. However, a very positive news was that despite the shutdown of part of the production capacity, the shareholders decided to continue work on the process scrap remelting project. At the end of the evaluated year, the construction preparation for the project was completed and the assembly of the technological units took place.

In the area of occupational safety and protection of health, we harmonized key indicators, activities and reporting with the new HSE approach. It focuses on the prevention of serious incidents. We recorded one incident with a high-risk potential. It reminded us again that constant evaluation of risks before or during the performed activities and vigilance even in simple activities are very important. Activities related to reducing the sick-leave rate, which we started to implement in 2019, also began to bear fruit. We did not record any work-related injuries of both our employees and contractors. In connection with the spread of coronavirus, we made great efforts to be able to reduce the risk of endangering production due to quarantine measures.

Despite the described unfavourable circumstances, we are proud to have been able to operate the technology and individual processes in such a way that we have achieved excellent technological parameters and met ambitious key indicators. We succeeded mainly thanks to our way of working. We can function as a united, responsive and efficient team for which ambitious goals are a challenge.

Confirmation of the strong team spirit, high loyalty and trust in the decisions of management and shareholders was also shown in the employee satisfaction survey Hydro Monitor, in which we participated in 2020 for the seventh time.

Slovalco is about to face a particularly challenging period. Our power supply contract expires by the end of 2021. Representatives of shareholders and management are negotiating very intensively the conditions for the supply of this strategic “raw material” for the company. Similarly, other framework conditions are being discussed, which are crucial for the further functioning and existence of the company in the future.

Milan Veselý

Chief Executive Officer