THE COMPANY REPORT FOR THE YEAR /2015€¦ · 2016-05-11 · the company report for the year 2015 / borsodchem mchz, s.r.o. 4. 1/ the basic characteristics . the borsodchem mchz,

THE COMPANY REPORT FOR THE YEAR /2015

CONTENTS 1. The Basic Characteristics 4

2. The Development of Selected Indicators 8

3. The Management Report 10

4. The Company’s Position; Research and Development 16

5. Human Resources and Communication 20

6. The Integrated Management System 24

7. Environmental Protection and Safety 26

8. The Ownership Structure of BorsodChem Zrt. 30

T H E C O M P A N Y R E P O R T F O R T H E Y E A R 2 0 1 5 / B o r s o d C h e m M C H Z , s . r . o .

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1/THE BASIC CHARACTERISTICS

THE BORSODCHEM MCHZ, S.R.O. IN ITS PRESENT FORM IS FOLLOWING-UP ON ITS TRADITIONAL

CHEMICAL PRODUCTION, THE ORIGINS OF WHICH DATE BACK TO 1927. THE INTENTION AT THAT TIME WAS TO TAKE ADVANTAGE OF A NEARBY SOURCE

OF COAL GAS TO PROVIDE AMMONIA, NITRIC ACID AND FERTILISERS FOR THE PRE-WAR

CZECHOSLOVAK ECONOMY, SIMILARLY AS THIS WAS BEING CARRIED-OUT IN NEIGHBOURING

EUROPE.

Production in the new plant commenced in the year 1928, when the start-up of the production of ammonia and ammonium sulphate was initiated. After the Second World War the production programme that had initially been focused on the production of fertilisers was then expanded and modernised for initiating the production of formaldehyde and of urea-formaldehyde resins and also to enhance the processing of hydrogen for hydrogenation. The production of cyclohexanone was then gradually developed as the basic raw material to be used for the manufacture of silon. Fertiliser production also continued, including the production of oxalic acid. Today the Company’s core products – i.e. aniline and cyclohexylamine – both have their origin in 1962, when a pilot plant for their production was established. In 1971 a new plant for the production of phenol-formaldehyde resins and moulding compounds was put into operation. What, so far, has been the Company’s most significant investment - the aniline block - was put into operation in 1985. The aniline block was followed-up by a new production plant for the production of cyclohexylamine and then, in 1992, another new plant for the production of specialty amines was put into operation. Hydrogen production underwent a fundamental change, whereby instead of the low-temperature division of coal gas the production technology utilising the steam reforming of natural gas was put into operation. The capacity for aniline production gradually increased up to 165 kt per year, which was made possible by the construction of an additional modern steam reforming unit, the unit designated for the production of adiabatic nitrobenzene and the additional construction of two modernised hydrogenation lines for the production of aniline. At the same time, based on the optimisation of the production portfolio, the production of sorbitol, sulphuric acid,

isopropyl amine, nitrogen, oxygen, argon, fertilisers, nitrate and sodium nitrite, ammonia water and oxalic acid was gradually terminated.After 1990, the Company underwent numerous organisational changes and also changes to its ownership structure. In 1990 the emergence of the Moravské chemické závody joint stock company took place through its transformation from having been a state enterprise. From the 1st January 1999 to the 26th April 2000, Moravské chemické závody, in the form of a branch plant, was a part of Aliachem, a.s. Today’s BorsodChem MCHZ, s.r.o. was founded on the 27th April 2000 by separating the majority of the Moravské chemické závody branch from the ownership of the Aliachem joint stock company. Thereby the BorsodChem Zrt. Company became the majority owner and in 2006 it increased its business share and became the 100% owner of the company. In February 2011 the entire BorsodChem Group obtained a new strategic owner, i.e. the Wanhua Industrial Group.Today’s BorsodChem MCHZ, s.r.o. is a fully integrated entity, participating in a supranational grouping. The Company owns the technologies and the requisite know-how for the production of key products and also has the capacity to be able to develop them further. Its licence for the utilisation of aniline production technology was sold to Japan, where it is now successfully operating in two large-capacity units. More than a tenth of the worldwide production of aniline is now produced under licence of BorsodChem MCHZ, s.r.o. The Company is currently focusing on strengthening the ties of raw materials in the BorsodChem Group, in line with the investment group’s strategic plan to strengthen its market position in polyurethanes. At the same time the Company is developing and maintaining a portfolio of the small-scale products of specialty amine chemistry.


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2/THE DEVELOPMENT OF SELECTED INDICATORS

ECONOMIC RESULTS

unit 2010 2011 2012 2013 2014 2015

Total assets thousand EUR 117 923 117 371 121 216 121 438 130 762 124 454

Total revenues thousand EUR 180 762 188 872 208 202 211 339 230 318 187 919

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

thousand EUR 15 825 10 587 9 158 12 771 19 272 22 422

Earnings before interest and taxes (EBIT) thousand EUR 6 489 3 759 5 585 6 675 13 038 16 502

Profit before tax (PBT) thousand EUR 2 122 1 338 3 939 5 112 13 047 16 001

Profit after tax (PAT) thousand EUR 1 732 963 3 071 4 004 10 535 13 075

SELECTED INDICATORS OF FINANCIAL ANALYSIS

unit 2011 2012 2013 2014 2015

EBIT/SALES % 2,29 2,77 3,39 6,14 9,23

EBITDA/SALES % 5,80 5,91 6,58 8,76 12,45

ROE % 3,19 7,28 8,01 20,48 33,94

ROCE % 4,54 6,56 7,85 14,68 17,25

DEBT/EQUITY* 0,60 0,43 0,45 0,39 0,97

LIQUIDITY 2,43 1,90 2,34 2,65 3,05

* Payables controlling entity / Equity


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3/THE MANAGEMENT REPORT FOR 2015

THE COMPANY’S NET INCOME FOR 2015, AS THAT OF AN IMPORTANT EXPORT-ORIENTED FIRM,

AMOUNTED TO EUR 16.0 MILLION BEFORE TAX AND WAS RECEIVED DURING WHAT WAS LARGELY

AN UNSTABLE PERIOD BOTH IN EUROPEAN AND NON-EUROPEAN MARKETS.

The entire year was a period of significantly lower oil prices on world markets and also a period of near-zero inflation in the advanced European economies. Low oil prices on world markets also led to a decline in the prices of raw materials and of energy that was also correlated with the crude oil prices. An important factor was the significant degree of the strengthening of the USD against the other major currencies. The value of the operating profit amounted to EUR 16.5 million based on total revenues of EUR 187.9 million, which is EUR 42.4 million less than it was last year. EBIT improved significantly in comparison with last year - by EUR 3.5 million, which in percentage terms represents an increase of 26.6 %. Amongst the main factors that influenced the lower

volume of revenues as compared to last year, despite the similar sales volume expressed in a bulk of production, can be considered the decrease in the prices of raw materials on which prices the volume of sales is largely dependent. Throughout the year 2015, the amount of sales, not only of the Company’s main products, i.e. aniline and cyclohexylamine, remained close to the maximum possible level of utilisation of capacity. Sales of most of the major products increased year-on-year or were at a very similar level as they were last year. The profitability of most products was also at a higher level as compared to the previous year. Also contributing to the positive economic results were the constant pressure for cost-reduction and the attempt to seek for further savings both in the area of production and also in regard to administrative expenses, as well as finding new, cost-effective suppliers of raw materials. The positive financial result of 2015 resulted in an increase in equity as compared to the previous year. Overall, however, the Company’s equity value decreased by EUR 22.2 million, mainly due to the paid out dividends from retained earnings. For its funding the Company needed a 4.8 million EUR higher working


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capital as compared to the last year, despite a drop in the inventories of EUR 2.4 million and in the trade receivables of EUR 5.9 million. Primarily contributing to these increases was the year-on-year increase in the liabilities arising from the increased loan from the parent company, which was provided in the amount of EUR 20 million. Short-term trade payables decreased significantly - by EUR 5.1 million - due to lower prices of inputs and also the effort that was made to reduce the inventories at the end of the year. Also the amount of ready cash in the bank accounts dropped by EUR 8.0 million, which was partly related to the already mentioned payment of dividends. On the other hand the receivables from cashpooling increased by EUR 7,7 million due to full usage of this system. In January of 2015 refinancing took place in regard to the entire BorsodChem Group, for the purpose of obtaining better financial and non-financial terms than were offered for the original loan. Subsequently BorsodChem MCHZ, s.r.o. was provided by its parent company with a loan of the same amount, but at a lower interest rate than the original offer. In July 2015, the loan from the

parent company was increased by EUR 20 million to a total amount of EUR 46.7million. This increase serves to partially cover the payment of dividends in the amount of CZK 960.05 million (EUR 35.2 million). This increase, despite the lower level of interest rates, resulted in a slight year-on-year increase in interest expenses. Since September 2015 BorsodChem Group’s EUR cash-pooling system has started to be fully exploited. Overall, the financial situation was stable throughout the year and there were no problems in regard to funding the Company’s operational needs nor with payments to suppliers. The expenditures for investments that were made in 2015 amounted to EUR 5.9 million. These capital expenditures also included those that were incurred in connection with the REACH registration. The projects aimed at reducing the intensity of the material needs of production units such as increasing their storage capacity and at improving logistics conditions in the premises of the Company had the major impact on the total amount of spending, including increasing the production capacities for specialty amines and for dicyclohexylamine. Also


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implemented were projects that were targeted to increasing the safety level in the Company’s premises. Since the beginning of 2013, our Company was included in the second phase of emission trading. The Ministry approved the Company’s emission plan based on the values of previous years and subsequently also the reducing coefficient for free allocation. Thanks to the implementation of investment projects that are aimed at reducing emissions of N

2O,

our Company has a sufficient quantity of these allowances without the need to purchase any additional ones prior to their submission.

OUTLOOK FOR 2016

The plan for 2016 is based on a similar sale portfolio as in previous years; again with the sales of concentrated nitric acid for the parent company not being anticipated – i.e. it will only be produced for the Company’s own usage. We expect that, as in 2015, there will be maximum utilisation of the production capacity for aniline and that the production volumes of other key products will at similar levels to those in 2015. Sales of aniline, dicyclohexylamine, diethyl oxalate and specialty amines are planned at the maximum possible level in regard to capacity utilisation. Cyclohexylamine sales are expected to be at a similar or at a slightly lower level than they were in 2015. In line with the investment concept of the holding the implementation of new investments is also planned in 2016, which will comprise mainly projects targeted to reducing the consumption of natural gas during the production of hydrogen, increasing the safety of the Company’s premises and the reliability of the production units, improving sales flexibility in relation to our customers by increasing the storage capacity for cyclohexylamine and also increasing the production capacity at the dicyclohexylamine and specialty amines plant. Also planned are projects in the environmental field such as further reducing emissions - particularly of odorous substances - and also ensuring the purity of the waste water.


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4/THE COMPANY’S POSITION

THE BORSODCHEM MCHZ, S.R.O. PRIMARILY PRODUCES AND SELLS CHEMICAL PRODUCTS OF

AN ORGANIC NATURE AND, IN LESSER QUANTITIES, ALSO CERTAIN INORGANIC

PRODUCTS. IT RANKS AMONGST THE MOST SIGNIFICANT GLOBAL MANUFACTURERS OF

AMINES - SPECIFICALLY ANILINE, CYCLOHEXYLAMINE, DICYCLOHEXYLAMINE AND

SPECIALTY AMINES. THE PORTFOLIO OF INORGANIC PRODUCTS THAT ARE SUPPLIED TO

THE MARKET COMPRISES HYDROGEN AND A CONCENTRATED NITRIC ACID, WHILE DIETHYL

OXALATE REPRESENTS THE COMPANY’S COMPLEMENTARY PRODUCTS.

The volume of the revenues for products and services in 2015 amounted to EUR 187.9 million, sold at the contractual price, while the value of deliveries for export and the revenues for sold products and services totalled EUR 177.4 million. The capacity utilisation of all the production lines oscillated at around the maximum possible level.Significantly participating in sales is the Company’s core product - aniline - which represents nearly 3/4 of our sales. A substantial part of the production capacity of aniline in 2015 was intended for supplying the downstream production of MDI that is carried-out in the parent company in Hungary. Our customer portfolio in regard to aniline, cyclohexylamine, dicyclohexylamine, diethyl oxalate and specialty amines consists mainly of traditional customers and has the potential for further growth, and also of newly acquired customers, mostly from the European and the North American continents.In regard to specialty amines more than half of our revenues is from the sales of polyurethane catalysts, which are intended for the processing segment of PU foams, as well as for methyl diphenyl isocyanate (MDI) that is produced by the parent company.

SALE TO FOREIGN CUSTOMERS

Almost all the production of BorsodChem MCHZ, s.r.o. is regularly intended for export. The share of sales from exports reaches 97% of the total sales of our own products and services. The targets for the export of aniline, cyclohexylamine, dicyclohexylamine, diethyl

oxalate and specialty amines are predominantly European markets. Exporting outside Europe is also very important, however. The Company has won a very significant market share in two of the overseas markets – i.e. the USA and Asia (specifically in Japan and Indonesia) - especially for cyclohexylamine and dicyclohexylamine.

SALE TO DOMESTIC CUSTOMERS

Overall, only 3% of our total revenues from sales of products and services are realised on the domestic market. Compared to the export markets, consumption of the products of BorsodChem MCHZ, s.r.o. in the Czech Republic is very slight. The cause of this is the localisation of the consumer base – i.e. the production plants for polyurethane materials, rubber chemicals, water treatment chemicals and cyclamates are outside the Czech Republic.

THE CHARACTERISTICS OF OUR BASIC PRODUCTS

Aniline is the product that generates the largest share of the Company’s revenues. Its use is widespread and it also serves as the basis for the production of MDI, i.e. it is a precursor in the production of the polyurethane materials that are used the most in the automotive and construction industries and also in the textile, footwear, furniture industries, etc. Aniline is also used successfully as a feedstock for the production of rubber chemicals and specifically for vulcanisation accelerators and antidegradants. Aniline is also marginally applied during the manufacture of dyes, pharmaceuticals and other chemical products.Cyclohexylamine, which at BorsodChem MCHZ, s.r.o. is produced from aniline, is used in Europe and in the USA primarily during the production of rubber chemicals, as a vulcanisation accelerator and also as one of the chemicals that is utilised for the treatment of feed water for steam boilers. A cyclohexylamine application that is prevalent in Southeast Asia is the production of artificial sweeteners (e.g. cyclamate).The major application for dicyclohexylamine is the production of various kinds of special chemicals (e.g. corrosion inhibitors) and also of rubber accelerators. Dicyclohexylamine also has applications in the


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segments of lubricants and oils.Specialty amines (including dimethylcyclohexylamine, pentamethyldiethylenetriamine and dimethylbenzyl-amine) are used as components of catalytic systems for the production of rigid and semi-rigid polyurethane materials. Other specialty amines produced are used, for example, in the foundry industry, for the production of agrochemicals, pharmaceutical intermediates, surface coatings and for the production of organic pigments.The product portfolio of specialty amines is still expanding; i.e. in 2015 to include Triazinecat, a polyurethane catalyst and also a catalyst used in the foundry industry, i.e. dimethylpropylamine.Diethyl oxalate is supplied primarily for the production of agrochemical products. Also progressively increasing is the share of sales for other applications (PU, thermoplastics, pharmaceuticals and others).

RESEARCH AND DEVELOPMENT

Research and development activities are focused primarily in the area of specialty amine chemistry. The R&D Centre deals with the manufacturing issues by means of the simulation and the analysis of technological processes, through laboratory tests and

also directly at the operational level by providing support during the development periods of new technological processes as well as introducing new products to help to expand the current product portfolio.The laboratories are equipped with test batch autoclaves and also with a continuous flow reactor and distillation columns. Similar devices of a bench scale are utilised too for the development of new technologies. Also available is up-to-date analytical equipment.The R&D Centre takes advantage of the scientific potential of the academic sector. In collaboration with the University of Chemistry and Technology in Prague, it addresses special projects, such as the development of new catalytic systems and technologies for the production of specialty amines. Also implemented are optimisation of the operating parameters of established productions and computational modelling of key technology nodes.In cooperation with the VŠB - Technical University of Ostrava and with Prague’s Chemoprojekt Company the test reactor in the premises of BC MCHZ is operated, as required, for the development of catalysts designated for the disposal of the nitrogen oxides that emanate during the production of nitric acid. BorsodChem MCHZ provides needed energy and reaction media for the operation of this reactor

Sales for export by country in 2015 (in %)

Hungary 68,50

USA 6,69

Spain 3,06

Germany 3,03

Indonesia 2,86

Russia 2,56

Switzerland 1,76

Italy 1,75

Nietherlands 1,57

India 1,42

Japan 1,13

Belgium 0,87

France 0,72

Poland 0,61

Canada 0,60

Slovakia 0,51

Share of products in sales in 2015 (in %)

ANILINE 71,35

CYKLOHEXYLAMINE 14,55

DICYKLOHEXYLAMINE 4,23

DIMETYLCYKLOHEXYLAMINE 4,01

DIETHYL OXALATE 1,96

DIMETYLBENZYLAMINE 1,18

PENTAMETYLDIETHYLENTRIAMINE 0,62

FLEXSORB 0,62

DIETHYL OXALATE 0,40

DIMETHYLISOPROPYLAMINE 0,30

METHYLDICYCLOHEXYLAMINE 0,24

TECHNICAL BENZYLAMINE 0,19

DIETHYLANILINE 0,11

ETHYLCYCLOHEXYLAMINE 0,10

4-TERC-BUTHYLBENZYLAMINE 0,07

TRIAZINECAT 0,06

ETHYLANILINE 0,02


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5/HUMAN RESOURCES AND COMMUNICATION

IN REGARD TO THE NUMBER OF EMPLOYEES AND MAINTAINING THEIR PROFESSIONAL LEVEL, THE

YEAR 2015 CAN BE CONSIDERED AS HAVING BEEN STABLE IN THE AREA OF HUMAN RESOURCES. THE

NUMBER OF WORKING POSITIONS MET THE NEEDS FOR THE ESSENTIAL COVERAGE OF ALL

THE COMPANY’S PROCESSES AND ALSO THE DEGREE OF CAPACITY UTILISATION. ATTENTION WAS FOCUSED ESPECIALLY ON TARGETING THE

IMPROVEMENT AND OPTIMISATION OF THE STRUCTURE OF SPECIFIC SECTIONS AND THE RIGHT STAFF FOR THE CURRENT AND FUTURE

NEEDS OF THE COMPANY, WHILE ENSURING THE SMOOTH CONTINUITY OF THE JOB POSITIONS.

In 2015, we also continued implementing one of the key HR activities, i.e. maintaining and strengthening the capability of both new and current employees and providing adequate substitutes in the course of the generational replacement.

Staff training and development continues to be our long-term priority. In accordance with our strategic plan in 2015 we also worked with the employees’ skill levels. For all the vacant position for chemical technicians candidates with secondary chemical education were recruited. Some of the jobs for operational chemical technicians were also taken by candidates who were university graduates and who will constitute a basis for selection for more demanding managerial and/or technical positions. We were also able to meet our requirements thanks to our long-term cooperation with the Academician Heyrovský Secondary Technical

School of Chemistry and the Grammar School in Ostrava.In the area of staff development we continued with our project for increasing the flexibility of our employees, which is primarily targeted towards employees who have been assigned to positions as operators and/or attendants. As part of this project, we implemented the second phase of the educational project entitled “School of Chemical Technology with Prof. Wichterle”, which aimed to raise the awareness of selected employees regarding the technological processes and the equipment utilised directly in our Company. Its content was focused specifically on chemical reactors, multiphase reactors, thermal processes, separation processes and selected equipment that is utilised in process technologies. As the title suggests, the task of human resources and communication also includes the areas of internal and external communication. This department is responsible for the preparation of materials regarding corporate identity and our unique visual style and it also notably cooperates in the management of crisis situations. All the employees are regularly provided with information about upcoming or ongoing changes, about economic performance and about the Company’s future plans. We constantly strive to create and to maintain not just a positive image of our Company, but also to undertake specific forms of cooperation with varied external entities. On a permanent basis we also cooperate with our neighbouring municipal districts, notably by supporting their cultural and their social activities. As in previous years, so also in 2015 a meeting of the Company’s Management was held together with representatives of the local governments of the closest municipal districts, at which the participants were informed about developments that had taken place in the Company and were made familiar with the projects planned in the


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areas of environmental protection and of the safety of our facilities. The big event of 2015 was our Open Day, which we held again after a 4-year hiatus on the first Saturday in October.“We managed to introduce our chemical company from the inside, since that is how we see it – which means being open to communication, being responsible to the public and also environmentally friendly or as it is expressed in our traditional motto “Chemistry goes with life”.Our Company’s regular sponsorship activities include providing support for the Academician Heyrovský Secondary Technical School of Chemistry and the Grammar School in Ostrava-Zábřeh, which to us represents an “incubator” for young people who are interested in chemistry. Because we are fully aware about the importance of the youngest chemistry enthusiasts, we also direct our financial support to them and thereby support the professional interests of talented young chemists. Additional support is also devoted to the popular event entitled “Chemistry at the Castle” that we implement in collaboration with the regional universities.In 2015 we also decided to continue our cooperation with the Janacek Philharmonic Orchestra, of which we became the principal partner in 2012. Our other sponsorship activities also include supporting the event “Silesian Days of Preventive Medicine”, which is organised by the Regional Public Health Authority of the Moravian-Silesian Region. As part of our voluntary agreement with the MoE that we signed in 2011, as in previous years, we also made donations towards the convalescence of children from the Moravian-Silesian Region. Additionally, in the year 2015, we provided a financial contribution to the Fund for Children of the Moravian-Silesian Region in the same amount as in accordance with the voluntary agreement with the MoE.Also in 2015 the third annual National Final of the competition entitled “We are looking for the best young chemist” that is becoming larger both in size and prestige was held under the auspices of the Association of Chemical Industry. Together with our partner, Academician Heyrovský Secondary Technical School of Chemistry, we not only participated in organising and announcing the results of the regional round of the contest, but we also decided to invite the finalists from our region together with their teachers to reward them

even after the national finals had been held. In the future this event will become one of the main priorities for our sponsorship activities.All these activities, which constitute one aspect of our long-term communication policy, provide evidence of the fact that we are fully aware not only of our role as a manufacturing chemical company, but also as a responsible major company that is operating in the Moravian-Silesian Region.

The structure of the costs for education in 2015

Language training 19 %

Specialised training events 53 %

Training based on legislation 20 %

The training of key staff 8 %


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The average FTE staffing level (persons)

516 407 373 358 355 350 351 355 358

500

470

440

410

380

350

320

310

280

250

220

2007 2008 2009 2010 2011 2012 2013 2014 2015

The development of average monthly earnings (CZK)

thousand/CZK 26 263 28 202 27 063 29 296 28 815 28 949 30 477 30 981 30 996

30,5

30,0

29,5

29,0

28,5

28,0

27,5

27,0

26,5

26,0

25,5

25,0

2007 2008 2009 2010 2011 2012 2013 2014 2015

The share of value added per 1 employee (thousand CZK)

1 327 550 1 323 1 759 1 382 1 327 1 621 2 197 2 310

2000

1800

1600

1400

1200

1000

800

600

400

2007 2008 2009 2010 2011 2012 2013 2014 2015


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6/THE INTEGRATED MANAGEMENT SYSTEM

IN 2015, BORSODCHEM MCHZ, S.R.O. CONTINUED TO MAINTAIN AND TO DEVELOP ITS INTEGRATED

MANAGEMENT SYSTEM THAT, IN ADDITION TO THE QUALITY MANAGEMENT SYSTEM, ALSO

COMPRISES THE ENVIRONMENTAL MANAGEMENT SYSTEM, THE SAFETY SYSTEM AND NOW ALSO

THE ENERGY MANAGEMENT SYSTEM.

The Energy Management System was certified in 11/2015 as part of the 2nd certification phase by Lloyd’s Register Quality Assurance (LRQA) in accordance with the ISO 50001: 2011 system standard; this certificate is valid till 11/2018.The Quality Management System and the Environmental Management System are certified by LRQA in accordance with the ISO 9001: 2009 and ISO 14001: 2005 system standards. The Safety System has been verified by the State Labour Inspection Authority in accordance with the CSN OHSAS 18001: 2008 system standard.In April and in October of 2015, the LRQA certifying organisation conducted two QMS and EMS surveillance audits that confirmed the Company’s compliance with the ISO standards; no form of non-compliance was identified and the Integrated Management System certificate still remains valid until 10/2017.The Integrated Management System covers the entire Company and 100% of the Company’s production in terms of sales generated.In 7/2015 a successful re-accreditation in accordance with the CSN EN ISO/IEC 17025: 2005 system stand-ard was implemented by the Czech Institute for

Accreditation in the laboratory of the Technical Inspection Department, which covers the area of the analytical methods that are used in the field of the analytics of water, aqueous extracts, soils, sediments and the atmosphere of the work environment, including sampling, and is valid until 7/2020.Since 2011 the Company is the holder of the prestigious certificate as an “Authorised Economic Operator” in its top version, i.e. “Simplified customs procedures/Security and safety”. This certificate provides a number of benefits related particularly to the simplifying and the speeding up of customs clearance procedures, fewer physical checks of goods and preferential customs clearance. This certificate is awarded to reliable, financially stable companies that have complied with customs requirements over the long term, that demonstrate their solvency, that have satisfactory and transparent accounting and logistics systems and that comply with safety standards.


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Certificate of the Integrated Management System

Certificate of the EnMS Certificate of Accreditation

Authorised Economic Operator Certificate


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7/ENVIRONMENTAL PROTECTION AND SAFETY

IN ALL ITS OPERATING ACTIVITIES BORSODCHEM MCHZ, S.R.O. PLACES EMPHASIS ON THE

PROTECTION OF THE ENVIRONMENT AND ON ENSURING BOTH SAFETY AND OCCUPATIONAL

HEALTH.

For the results that it has achieved in these areas, the Company has been the holder of a certificate “Responsible Care - Responsible Business in Chemistry” since 1998. Its latest verification was implemented in September 2012 and the validity of the certificate lasts until October 2016.Long-term efforts to ensure a balance in the economic, environmental and social areas were evaluated in 2006 by the Board of the Association of Chemical Industry and BorsodChem MCHZ, s.r.o. was the first entity in the Czech Republic that received the Board’s “Sustain- able Development Award”. Based on meeting the requirements of the Occupational Health and Safety Management System (OHSAS 18001), including the system elements related to environmental protection

and fire protection, in 2014 the Company was again awarded the “Safe Enterprise” programme’s certificate, which is valid until May 2017.All of the Company’s production technologies are comparable with the best available techniques (BAT) and integrated permits have been issued for them. The established emission limits for pollution that is released into the air or into surface waters are observed.In accordance with the European legislation concerning chemicals – the REACH regulation - sixteen products of the Company were registered with the European Chemicals Agency in Helsinki in 2010-2015. Chemical Safety Reports, which define safe conditions during production and subsequent use of products as substances under REACH, constituted an integral part of the registration of chemicals.In regard to the implementation of the European Emissions Trading Scheme (EU ETS), the Company met all the legislative requirements and created the conditions for successful trading of emission allowances of greenhouse gases during the third trading period in the years 2013-2020.

Responsible Care Certificate Safe Enterprise Certificate Sustainable Development Award


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In line with the requirement of the “continuous improvement” of management systems, a total of about 61% of the total investment costs of the Company was spent in 2015 to protect the environment and to increase safety, including fire safety, and occupational health.Preventive measures were implemented in regard to reducing raw material intensity and energy intensity, increasing the monitoring of waste water in the BorsodChem MCHZ’s sewerage system with the option of immediate intervention and additionally of improving the process safety of the operational technology. Environmental protection and occupational safety and health are regularly evaluated and the development of the main indicators is depicted in the following charts:

Emissions of selected pollutants released into the atmos-phere per unit of the relevant production

2,0

1,5

1,0

0,5

0,0kg/ton of production 1995 2005 2015

nitrogen oxides organic substances

Pollution indicators of waste water discharged into the Odra River per unit of the relevant production

0,8

0,6

0,4

0,2

0

kg/ton of production 1995 2005 2015

chemical oxygen demand biological oxygen demand ammonium ions

The withdrawal and the discharge of water from/into the Odra River per unit of the relevant production

20

15

10

5

0

m3/ton of production 1995 2005 2015

withdrawal discharge

Waste production per unit of the relevant production

14

12

10

8

6

4

2

0kg of waste/ton of

production 1995 2005 2015

Relevant production = production that decisively contributes to the generation of wasteWaste production = production of waste generated during the production activities for the reporting period


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Indicators of occupational accidents

18 600

16

14

12 400

10

8

6 200

4

2

0 0

1995 2005 2015

the number of occupational accidents the frequency of accidents the rate of occupational accidents the number of workdays missed the frequency of accidents: the number of new occupational accidents per 100 employeesthe rate of accidents: the number of new occupational accidents per 1 million hours worked

the

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f occ

upat

iona

l acc

iden

ts

the

num

ber o

f wor

kday

s m

isse

d


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8/

THE OWNERSHIP STRUCTURE OF THE BORSODCHEM GROUP AS OF 31. 12. 2015

First Chemical Holding Vagyonkezelő Kft.

BorsodChem Zrt.

BorsodChem MCHZ, s.r.o.(Czech Republic)

Share of BC Zrt. 100 %

Petrochemia–Blachownia S.A.(Poland)


BorsodChem MDI Termelő Kft.(Hungary)


BC-Energiakereskedő Kft.(Hungary)


BorsodChem Yantai Company ltd.(China)


BC-Erőmű Kft.(Hungary)


BC - KC Formalin Kft.(Hungary)

Share of BC Zrt. 66,67 %

Polimer Szolgáltató Kft.(Hungary)


BorsodChem Italia s.r.l(Italy)


Podíl BC Italia 1 %

WBLA Brazil A.C. Ltda.(Brazil)


Company BorsodChem MCHZ, s.r.o. doesn´t own any organizational units abroad.

BorsodChem MCHZ, s.r.o.Member of Wanhua – BorsodChem Group

Chemická 2039/1709 00 Ostrava – Mariánské Hory

Czech Republic

Company ID No.: 26019388Incorporated on the 15th December 1999

in the Commercial Register of the Regional Court in Ostrava, Section C, File 22763.www.borsodchem-cz.com

© 2016, Ademark s.r.o.

THE COMPANY REPORT FOR THE YEAR /2015€¦ · 2016-05-11 · the company report for the year 2015 / borsodchem mchz, s.r.o. 4. 1/ the basic characteristics . the borsodchem mchz,

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