Social Report

2009 SOCIAL REPORT БЕЛОРУССКИЙ МЕТАЛЛУРГИЧЕСКИЙ ЗАВОД BYELORUSSIAN STEEL WORKS SPEECH OF GENERAL DIRECTOR Dear readers ! efficient. not be limited. We can say that we finally solved the and integral part of corporate culture. World financial crisis showed that BMZ is problem with manufacturing water processing. We In 2008 the plant associated itself with UNO Now you are reading Social report of capable to work in extreme situations. Our attention developed closed water-supply cycle at our plant and Global Compact and accepted all ten principles Byelorussian Steel Works for the year 2009 in which was focused on expansion of sales markets and minimized influence on the environment. related to observance of human rights, labor relations, the enterprise has made a step forward in order to search of new partners. Now we can say with Working on our business effectiveness environment protection and anticorruption activity. provide you information about various aspects of its confidence that our products are being sold to 71 increase we emphasize importance of our social Since that time the plant has been maintaining social activity leading to stable development. countries around the world – earlier we had less than responsibility. direction of production and principles of Global Last year for Byelorussian Steel Works was 50 countries among our buyers. That is self-evident that development of Compact has become a part of strategy, culture and a hard year. Hopefully cold winter season, problems During crisis period we developed new types the plant is impossible without development of its everyday work of the plant. with metal scrap, hard time of world financial crisis of products. But anyway we shouldn’t be under personnel. That is one of the priority directions at our which caused instability and uncertainty in the near delusions that everything is fine. The plant shouldn’t enterprise. Principal concern at RUE «BMZ» is drawn Best regards, future were left behind. Today BMZ has got on its feet stop its development on the achieved level in order to to formation of interested and responsible labor General Director and face the future bravely. ensure successful future. Continuous development collective, improvement of work conditions, increase А.N. Savenok Our main success is the fact that we withstood and improvement is required. of employees’ social protection level. the test of time, passed through world financial According to development business plan Nowadays our plant is one of the few crisis, which had led to reduction of demand for our for the period 2010-2014 it is planned to put into enterprises in the Republic that year by year not products and increase of raw materials price. At operation new production facilities and modernize only increases volumes of production output but present moment we can say that all those problems existing equipment. We all live in Zhlobin or in its also invests significant amount of means into the have been left in the past. We can see changes for outskirts that is we pay great attention to ecological development of social programs. BMZ takes active the better. Nowadays volumes of output and orders matters. Today the most important task for us is part in solving of important social problems in for the products have been recommenced. Cost modernization of dedusting systems on electric arc the region and considers this type of activity as a reduction and economy programs have proved to be furnaces. Amount of means to realize this plan will component part of its business, social investments 3 4 БЕЛОРУССКИЙ МЕТАЛЛУРГИЧЕСКИЙ ЗАВОД BYELORUSSIAN STEEL WORKS PREFACE TO THE SECOND REPORT SOCIAL REPORT 2009 Maintaining the tradition of reports on safety and arrangements of favourable conditions sustainable development, RUE ‘BMZ’ confirms for dynamic social and economic development of the the readiness for open dialogue with stakeholders. region of production activities of BMZ. Despite the economic instability on the world markets The report aims to inform the public and the plant does not deny undertaken obligations all stakeholders: owner, investors, personnel, and pursues the chosen policy of improvements representatives of district, regional and republican and transformations in all directions: management authorities, populace and product consumers. of sustainable development, business activity, There is no considerable change of personnel development, social activities of the information given in the first plant report. enterprise in the regions and cooperation with There is no information about joint ventures suppliers and consumers, environmental policy and and enterprises located outside the Republic of industrial safety. However, it should be noted that the Belarus. world economic crisis affected some effectiveness Electronic copy of the report-2009 will be indicators. available on the corporative BMZ web-site (www. Within the framework of annual report all belsteel.com). aspects of the enterprise’s activity in the field of social For development of a constructive dialogue responsibility are shown. with all stakeholders each opinion about the activities RUE ‘BMZ’ represents the second Corporative of BMZ in the field of sustainable development is of social report, prepared in format “G3” of Reporting importance to the plant. To that end, there is contact manual in the field of sustainable development GRI, information and a form of feedback in the Report. and the principles being the basis of UN Organization If you have any questions or opinions and Global Compact. The report contains information suggestions regarding reporting form and the content about the activities of the plant in 2009, as well as of the report, send them to: plans, goals and commitments for future. Republican unitary enterprise ‘Byelorussian Steel Strategic goals of the plant in 2009 are, to Works’ (RUE ‘BMZ’), Promyshlennaya str., 37 a large extent, significant in 2010 too, preserving Zhlobin, Gomel Region, 247210, Belarus. succession and sustainability in the development of Fax: (2334) 55426 BMZ. Appraisal of results of the enterprise activity ([email protected]) in 2009 is represented as a comparison with the performance of the previous period or the degree of gaining the target values. Preparation of this report was based on stakeholders’ opinions about Social report over 2008. The report is based on the documents developed by the plant in accordance with the requirements of the law in the Republic of Belarus and international standards. The report on social obligation and corporative sustainability informs the stakeholders about strategic priorities, potential of RUE ‘BMZ’, peculiarities of management, competence of management, effectiveness of risk management, cooperation with stakeholders. The report reveals not only efficiency of the plant in money making, adaptation of new equipment and technologies, but also reflects the activities in human capital formation, environmental 5 6 БЕЛОРУССКИЙ МЕТАЛЛУРГИЧЕСКИЙ ЗАВОД BYELORUSSIAN STEEL WORKS BMZ AND INSTABILITY OF THE WORLD ECONOMY SOCIAL REPORT 2009 markets. RUE ‘BMZ’ is among these enterprises. compared with those of last year, the finance and In 2009 the situation at the world markets did not economic situation of RUE ‘BMZ’ is gradually improve. stabilizing. Steady dynamics makes it possible to For the metallurgical industry in general adopt the strategy of work at the external markets and and for the Byelorussian Steel Works in particular to form priorities in development in the medium-term the world economic crisis resulted in reduction of perspective. demand for the most of products from the part of main Supporting the principles of social consumers, firstly automobile industry and building. responsibility, the plant, with no decrease of economic These sectors slumped and had record-breaking activity, kept on fixing social problems with due regard losses. for available possibilities. According to the annual results the demand for cars in Europe dropped by more than 20%, in the USA by a third. Recession reached Russian automobile companies as well. The demand for steel cord and wire products slumped. Worsening situation at the world markets put building sector into a difficult situation as well. In the USA the volume of home construction activities dropped to the level of 1991, in Great Britain the downturn of mortgage credit lending made up 70%, in the Russian Federation, according to the information from Rosstat, growth rates in the building sector dropped fivefold and it immediately affected the price of reinforcing products. The crisis affected also such steel consuming industry as machine-building industry, where the output was cut by 20-30%. Metallurgy concentrates the level of business I express confidence, that BMZ employees will trends of these sectors and such a serious downturn were directed to optimize the current and operational overcome all difficulties adequately, will find supplementary of the sectors affected in progression metallurgy costs and that was not just the reaction to unfavourable reserves for saving material and energy resources and external environment, but continuation of corporative mastering new types of products where the decrease of output reached a record- strategy of recent years. breaking level. For instance, in Russia the downturn Minister of Industry in ferrous metallurgy reached 25-30%, in Ukraine this Optimization policy was strengthened by Alexander RADEVICH value in some cases exceeded 35%, but RUE ‘BMZ’ special anti-crisis

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