COMPONENTA Environmental Report 2004 Environmental Report 2004

The main raw material used in Componenta’s products is recycled scrap. Energy is consumed in melting the scrap, and this is obtained from electricity and coke.

The casting moulds are made from sand, which is recycled in the process. When this is no longer possible, some of the spent sand is utilized and some ends up as waste.

The painting and fettling of the components are other processes at the foundry that cause some emissions into the environment.

The cutting fluids used in machining are recycled and the machining waste is sent for recasting.

When the ready components supplied to customers reach the end of their life cycle, they are recycled and melted down again.

Casting Future Solutions  Componenta Corporation Environmental Report 2004

Heikki Lehtonen President and CEO Environmental action has an overall impact in many different ways

Componenta’s business is supplying com- in the design stage for products. Effective sions at the Globe foundries have decreased ponents and total solutions made up from design can reduce the amount of material so much that they can also operate at night. these. We create added value for customers used and result in a product that is easier to All Componenta’s production units have by designing with them a product that they manufacture and requires fewer work stag- environmental management systems con- need. We make an effective (cast) solution es. Careful design can also affect the use of forming to ISO 14001 standards, apart from for the future today – we are Casting Future a product and its ease of maintenance. three of the Group’s machine shops and the Solutions. Our goal is to be a preferred The raw material for the cast components Globe foundries, where construction of a partner of our customers, which requires is 80% recycled material. The most impor- system is underway. At the same time we continuous development in all areas of our tant auxiliary material is sand, which is re- are upgrading Globe’s quality system to operations. At the same time we take into cycled many times in the process before it bring it in line with the requirements of the account the expectations of all our stake- ends up for reuse or as waste. A large part of automotive industry’s ISO/TS 16949 stand- holders, requiring economic, social and en- the spent sand from the Group’s foundries ard. vironmental responsibility in our operations. is used in Finland as covering and structural Environmental action continues at Com- The Group’s values form the basis for re- material at land-fill sites and in the Nether- ponenta in accordance with the goals of the sponsible operations. lands all the spent sand is utilized, for ex- environmental policy. By taking into ac- In accordance with our environmental ample in concrete structures. count the environmental impact, we are re- policy, we are committed to the continuous Dust and noise emissions from our pro- sponding to the expectations of our stake- improvement of our operations and through duction units declined significantly during holders, and at the same time raising the ef- this to reduce the environmental impact of 2004. At the modernized foundry in Kark- ficiency of our operations and ensuring that our production processes. Taking into ac- kila these emissions have been cut to just a we remain competitive in a challenging count the environmental impact starts right fraction of their previous levels. Noise emis- market.  Componenta Corporation Environmental Report 2004

Contents

This is Componenta’s second environmen- Environmental action has an overall impact in many different ways ...... 2 tal report and it brings together information about production volumes at the Group’s Componenta in brief...... 4 foundries, machine shops and forges in Fin- land, the Netherlands and Sweden, and about the raw materials used to make the Indicators of economic responsibility ...... 4 products and the emissions and waste from production in 2002, 2003 and 2004. Corporate strategy...... 5

The figures for the foundries of the Dutch Environmental and quality policy ...... 5 company De Globe, which was acquired in March 2004, are only given for 2004. Componenta’s production operations and the environmental load it imposes...... 6 The figures in the report have been ob- Environmental costs...... 7 tained as a rule in accordance with the gen- Energy consumption...... 7 eral instructions given in the Finnish Ac- Energy analysis as part of production planning...... 8 counting Act for recording environmental Use of raw materials...... 9 issues. The figures given are unaudited. Dust and VOC emissions...... 9 Noise ...... 10 The environmental report is published in Finnish and English. In addition to the In- Waste and recycling...... 11 ternet report there is also a printable pdf Wastewater...... 12 version. Transport...... 12 Packaging...... 12 Componenta monitors and reports on the High-risk situations...... 13 environmental impact of its operations reg- ularly and publishes the figures once a year Stakeholders...... 13 in the environmental report. The next re- Environmental permits...... 13 port will be published in spring 2006. Environment management systems...... 14

Glossary of this report...... 15 Myynti markkina-alueittain

43 % 6 %

 Componenta Corporation Environmental Report 2004 51 %

Pohjoismaat Muut Euroopan maat Muut maat

Componenta in brief

Sales by business group Sales by market area Componenta is a metal sector group of nenta Pori, Componenta Pietarsaari and companies with international operations. Componenta Suomivalimo (in Iisalmi). In Componenta supplies cast, machined and the Netherlands the Group has two foun- 35% 13% 43% 6% surface-treated, ready-to-install components dries, Globe Weert and Globe Heerlen, and total solutions made up from these to which has two separate production lines: its customers, who are companies in the Globe Heerlen Furan (former Globe heavy truck, machine building and off-road, Belfeld) and Globe Heerlen HWS (former 52% 51% and power and transmission industries. Globe Hoensbroek). The Group has seven Many of these customers operate in global machine shops, four in Finland: Componen- Cast and Other Components Nordic Countries markets and the components supplied by ta Nisamo, Componenta Pori, Componenta De Globe Other European Countries Componenta are often strategic parts of Pietarsaari and Componenta Pistons; and Other Countries Other Business their products. three in Sweden: Componenta Albin, Com- A third of the Group’s sales are in Scan- ponenta Främmestad and Componenta Indicators of economic responsibility dinavia, 40% in Central Europe, 20% in Fin- Åmål. Also in Sweden - in Virsbo, Smedje- MEUR 2002 2003 IRFS 2004 land and the rest in other countries, of backen and Kolsva - are the Group’s three Net sales 180.8 177.8 316.0 which the USA is the largest single country. forges which operate under the name Com- Operating profit 7.0 0.1 25.7 Componenta generates added value for ponenta Wirsbo. Componenta’s head office Operating profit excluding one-time items 2.8 8.1 12.5 its customers through close R&D partner- is in Helsinki. Financial income and expenses -9.1 -7.6 -7.9 ship. Componenta’s customer service has Componenta had net sales in 2004 of Result after financial items -2.1 -7.5 17.9 been concentrated in Customer Product EUR 316 million and employed 2,200 peo- Result after financial items excluding one-time items -6.3 0.5 4.6 Centers in Finland, Sweden and the Nether- ple. Some 45% of personnel work in Fin- Result for the financial year 1.0 -4.5 15.6 lands. These contain expertise in customer land, 27% in the Netherlands and 28% in Earnings per share (EUR) 0.11 -0.47 1.62 relations management, logistics, product Sweden. Office personnel accounted for Dividend per share (EUR) 0.10 0.00 0.50 project management and R&D. Operating 17% of personnel at the end of 2004 and Order book 31 Dec. 24.9 25.1 59.2 in this way makes effective use of the shop floor personnel for 83%. Share of exports and foreign activities, % 72.0 71.0 81.4 group’s specialized production units, effi- Componenta’s shares are quoted on the Net interest bearing debt, preferred capital note in debt 145 125 142 cient supply chains and production process main list of the Helsinki Exchanges. At the Net interest bearing debt, preferred capital note in equity 117 99 118 management, enabling JIT deliveries direct end of 2004 Componenta had 1,145 share- Equity ratio, % 18.2 17.8 20.6 to the customer’s assembly line. holders. Equity ratio, % preferred capital note in equity 31.4 31.1 29.5 Componenta has production units in Fin- Wages and salaries 50.0 47.5 72.1 land, the Netherlands and Sweden. The Personnel 31 Dec. 1,616 1,565 2,213 Group has a total of six foundries, with four Investments in non-current assets 9.8 1.6 35.1 in Finland: Componenta Karkkila, Compo-  Componenta Corporation Environmental Report 2004

Corporate strategy Environmental and quality policy

Componenta’s mission is Values We manufacture under environmentally ac- When establishing and reviewing its ob- Casting Future Solutions Componenta’s values are openness, honesty ceptable conditions and according to cus- jectives and targets, each business units We supply competitive, value adding cast and human orientation. These values are re- tomer specifications products, which are must take into account the following envi- component solutions to customers in the flected in our daily operations in the follow- subsequently delivered on time. Each em- ronmental aspects: heavy truck, power and transmission, ma- ing ways: ployee is responsible in his/her daily work chine building and off-road industries. Our • We are open to new ideas and change and for quality and for adherence to environ- - reduction of the consumption of energy operations are based on specialized produc- are willing to develop. Through this we mental requirements. and raw materials tion units and efficient supply chains. look to continually improve our ways of Each business unit defines its own quality - reduction of particle and VOC emissions Componenta’s strategic goal is to be the working. and environmental policies according to this - reduction of external ambient noise levels preferred engineering co-operation partner • We are honest with ourselves and each corporate policy and to the requirements of around each unit of customers in cast components. other. We do what we promise. the applied standards. Each unit must also - sorting of waste and reduction of the • Our work - with colleagues, superiors, have a quality management system certified quantity of non-recyclable waste material By 2006 subordinates, customers and other part- by an external organisation. Depending up- • Most of our business is based on engi- ners - is based on trust and mutual re- on the customer requirement, the quality We ensure that each business unit has the neering co-operation and solution busi- spect. management system complies with standard necessary resources to maintain competi- ness ISO 9001 or ISO/TS 16949. All business tiveness and develop the manufacturing • Our internal and external supply chains Corporate governance and management units must have an approved environmental processes. All investments are based upon perform effectively Componenta applies the Corporate Gov- management system according to standard the use of ‘Best Available Technology’ whilst • We have significantly improved our prof- ernance recommendations for public listed ISO 14001. also taking the economic and environmental itability companies which came into force on 1 July We promote awareness of both customer aspects into full consideration. Evaluation of • We have divested non-core/underper- 2004. The Group’s Corporate Governance and legal requirements throughout the or- environmental impacts is requirement for forming businesses principles are given on its website at www. ganisation. In addition we monitor customer approval of major investments. • We ensure that our people are highly componenta.com and in the printed and satisfaction and manage improvements skilled and committed website versions of the 2004 annual report. when necessary. Daily operations at Componenta are gov- We maintain the management system, Financial targets erned by set policies, such as the quality, en- promoting compliance to documented • Return on investment (ROI) to be be- vironmental and human resources policies. quality and environmental procedures, tak- tween 10 and 20 per cent over the eco- We improve our operational and manage- ing responsibility and commitment for nomical cycle ment processes through continuous im- quality, for environmental aspects and for • Profitable organic growth based on adding provement (CI). continuous improvement of the system. value by increasing share of engineering We direct the development work, the aim and customers outsourcing operations of which is to reduce the process variations • Equity ratio on the level of 40 per cent and to adjust the process according to the • Dividend 30 - 50 per cent of result. product characteristics.  Componenta Corporation Environmental Report 2004

Componenta’s production Environment balance sheet 2002 2003 2004 operations and the environmental PRODUCTION TONS load it imposes Foundries 58,000 55,422 122,142 Machine shops 24,621 27,603 32,708 Forges 17,172 17,422 19,789

MAIN RAW MATERIALS Steel blanks, t (forges) 20,306 22,789 25,299 Production of cast components takes place Machining takes place at modern machin- Metal scrap, t (foundries) 46,380 45,812 96,305 in specialized foundries. The company uses ing centres, on CNC machines or with con- Pig iron, t (foundries) 12,196 11,746 32,470 the latest technology in the moulding of the ventional machine tools. After machining, Sand, t (foundries) 20,324 20,616 42,287 components and core production. Sand is the items can be surface treated and part Cutting fluids, t (machine shops) 83 75 95 used in making the moulds and cores and in assembled as required by the customer. The ENERGY CONSUMPTION moulding. The raw material for the castings operations of Componenta’s machine shops Electricity, MWh 188,800 182,339 263,529 is melted in an electric or cupola furnace, are such that they do not impose a signifi- District heat, MWh 38,895 38,136 41,737 using mainly recycled scrap metal. Small se- cant load on the environment. Cokes, t - - 6,137 ries and products made in large series are At the machine shops environmental load Natural gas, m3 - - 2,726,281 cast on the automated moulding line and arises from Oil, t 315 273 310 the largest items are made with hand • oils and chemicals; the cutting fluids used Liquid gas, t 947 870 981 moulding. Cleaning of castings is partly au- in machining and the resulting cutting WATER CONSUMPTION, m3 154,936 151,679 226,821 tomated. fluid waste (other chemicals are also used In the foundries the environmental load incl. liquid gas) EMISSION INTO AIR arises from: Particle emissions, t 56 45 68 • the use of energy to melt the recycled Forged components are manufactured on Use of amines & solvents (VOCs), t 208 155 299 scrap and pig iron largely automated production lines. WASTE • the spent sand from the sand circulation At the forges environmental load arises Wastewater, m3 113,455 104,702 125,884 system for casting moulds made with the from Waste dust, t 6,156 5,149 3,916 one-time mould process • use of energy Sand, slag etc., t 27,486 27,618 71,573 • dust waste extracted by the filtering • noise Unsorted waste, t 687 589 1,385 equipment in the work phases that gener- Hazardous waste, t 928 938 1,066 ate dust Componenta has taken steps to protect Metal scrap, t 11,032 12,193 11,570 • VOC (volatile organic compounds) emis- the environment in its production process. Waste wood, t 170 175 666 sions from the chemicals used in painting For more details go to www.componenta. Waste paper, cardboard etc., t 262 522 306 and in the manufacture of cores com/environment. Other sorted waste, t 345 239 640 • Noise, for example in the handling of scrap *) 2004 including De Globe´s figures  Componenta Corporation Environmental Report 2004

Environmental costs

Componenta Group’s environmental costs Environmental costs Distribution of environmental Total energy consumption Distribution of energy costs in 2004 consumption in 2004 in 2004 totalled EUR 3.1 million (EUR 1.6 MEUR % of net sales GWh million in 2003), with Globe accounting for 15% 1% 3% 3.5 1.4 450 6% 2% EUR 1.3 million of this. Waste management 400 3.0 0.5% 15% was the biggest item, accounting for 62% 1.2 12% 350 (43%) of these costs. Other environmental 2.5 1.0 300 10% protection activities, such as the company’s 62% 65% 9% own environmental management costs and 2.0 0.8 250 waste taxes, were the second largest item, 1.5 0.6 200 Waste management Electricity 15% (27%). Protection of ambient air and 150 Wastewater management District heat 1.0 0.4 Coke climate, such as the running costs for filter Protection of ambient and climate 100 Natural gas equipment, accounted for 12% (18%) of 0.2 Protection of soil and ground water 0.5 50 Oil environmental costs and waste water man- Protection of biodiversity and Liquid gas 0.0 0 agement for 9% (11%). Protection of biodi- 0.0 the landscape total 2002 2003 2004 2002 2003 2004 versity and the landscape accounted for 2% Other environmental protection (0%) of the Group’s environmental costs activities and protection of the soil and groundwater Energy consumption for 0.5% (1%). equipment, heat treatment, heating, air con- 2003. The main cause for the improvement Environmental investments in 2004 to- The foundries consume 85% of the energy ditioning, lighting and internal transporta- is because the 2004 figures include those talled EUR 0.7 million. The largest invest- used by the Group. The melting of the raw tion. for Globe. The more efficient use of energy ments were at the Globe Heerlen, Iisalmi material in particular consumes much en- Most of the energy used by Componenta at the Globe foundries is due to differences and Karkkila foundries, where the dust ex- ergy, since the temperature of the molten is obtained from electricity. Coke is used in in the casting systems. The Globe casting traction equipment was converted into iron is raised to more than 1,500 degrees. melting in the cupola furnace at the Globe systems have a smaller proportion of run- modern dry dust extraction plants, which A considerable amount of energy is also Heerlen foundry. Melting at the other foun- ners and feeders, so a larger proportion of have dust emissions that are only a fraction spent on heating the incoming air in the dries takes place in electric furnaces. Liquid the molten metal goes straight to the end of those from the old equipment. Technical dust extraction systems. The casting moulds gas is mainly used for keeping casting product and the relative energy consump- improvements, including noise reduction, into which the molten metal is poured are equipment hot and for preheating. Natural tion is smaller. The difference in climate were also made at the Karkkila and Pori made from sand. The sand contains much gas is used for heating Globe’s foundry means that heating the Globe foundries and foundries in Finland and the Weert and fine-grained dust that has to be removed at premises. the incoming air for the dust extraction Heerlen foundries in the Netherlands. different stages in the process via dust ex- plants consumes less energy than similar Whenever the Group makes investments it traction plants. Foundries operations in Finland. Melting in the cupola takes into account their environmental im- Other places where energy is used at the Energy consumption at the foundries per furnace at the Heerlen foundry is a continu- plications. foundries are mainly the machines and tonne produced declined some 15% from ous process and consumes less energy per  Componenta Corporation Environmental Report 2004

molten tonne than electric furnaces. Energy consumption in foundries Energy consumption in machine shops Energy consumption in forges The transfer of production from the MWh/casted ton MWh/machined ton MWh/forged ton Alvesta foundry to Karkkila had a major 3.5 3.5 3.5 impact on energy consumption. It improves 3.0 3.0 3.0 the utilization ratio considerably for the Karkkila foundry, so that fixed costs, such as 2.5 2.5 2.5 heating for the holding furnace and for 2.0 2.0 heating the buildings, is divided among 2.0 greater output. This reduces energy con- 1.5 1.5 1.5 sumption per tonne produced considerably. 1.0 1.0 During 2004, energy reviews were carried 1.0 out at Suomivalimo in Iisalmi and at the 0.5 0.5 0.5 machine shop building in Pietarsaari, which 0.0 0.0 0.0 passed into Componenta’s ownership. The 2002 2003 2004 2002 2003 2004 2002 2003 2004 energy review at Karkkila was updated to bring it in line with the changes in produc- fettling shop at the Globe Weert foundry. tion there. Energy reviews and analyses of The production line at the Belfeld foun- ➩ Energy analysis as part of production planning dry was transferred at the beginning of existing energy flows based on these have One of the key environmental goals of Componenta is to reduce energy consumption. Industrial energy now been carried out at all the foundry 2005 to Heerlen beside the Hoensbroek analyses have been used at nearly all of Componenta’s production plants in Finland to investigate the energy units in Finland. The measurements and foundry. The production lines at the foun- consumption of buildings and production processes as well as opportunities for improving energy efficiency. The energy analyses have promoted the development and introduction of operating models that help make documentation for the reviews started in dry – operating under the new name of energy efficiency an established part of the Group’s operations. The energy analyses have revealed many 2004 will continue in 2005 concerning win- Globe Heerlen – share a common cupola small-scale measures to be implemented immediately, the repayment term of which has been short. When ter measurements. The analyses place areas smelting furnace. It is calculated that rela- investments in production are prepared and approved, attention is always paid to their energy-related and environmental impacts. with savings potentials in order of priority tive energy consumption will further im- and their results are utilized in future in- prove during 2005. Key objects of energy efficiency-improvement: ventilation and compressed air vestments. Over 90 per cent of the energy consumed by Componenta is electricity. In 2004, the Group’s Finnish production plants consumed 131 GWh of electricity. The plants consume nearly the same amount of electricity In the autumn of 2004, building of the Machine shops in an hour as two electrically heated single-family houses in a year. building automation system was completed The machine shops account for 5% of At the production plants, ventilation and compressed air are the key objects in improving energy efficiency. Optimization of these functions requires good maintenance practices for the equipment, proper controls, at the Karkkila foundry, and this has given Componenta’s energy consumption. Most appropriate use as well as automation. For example, the centralized real estate monitoring system introduced relative savings of 20% in heating costs at of this energy is consumed by machine tools at the Componenta Karkkila foundry and the heat recovery equipment installed in connection with the Karkkila. ➩ and in heating and air-conditioning for ventilation equipment reduced the annual heating costs by one fifth. At the same time, it was possible to reduce environmentally hazardous emissions and improve working conditions. In Karkkila, the process heat During 2004 a new energy-friendly dust buildings. originating from the melting and reprocessing of iron is utilized in the heating of production facilities as well as extraction plant was introduced at the Iis- Energy consumption per tonne of output in the drying and preheating of the iron refuse to be used as raw-material. at the machine shops declined 12% from The first energy analysis for Componenta was carried out as early as 1995, at which time the cooperation almi foundry. It has such effective dust ex- partner was the Energy Department of the Ministry of Trade and Industry. In the past years Electrowatt-Ekono traction capabilities that the warm output 2003. The biggest reason for the relative de- Oy has been responsible for the practical implementation of our energy analyses. The energy analyses are air can be fed back into the production area. crease was the increase in production. The updated as needed, but at least every five years. It is essential to optimize energy consumption already during production planning. In conjunction with the energy analysis, it has been created a tool for Componenta for No new air is needed for the factory area, costs for heating buildings and other fixed updating the profitability calculations concerning the objects of energy-efficiency improvement indicated by the which gives considerable savings especially energy costs were divided among greater analyses, with regard to production, energy consumption and prices. in winter. Similar equipment is in use in the production volumes.  Componenta Corporation Environmental Report 2004

Recycled scrap and pig Production tons Particle emissions Amines and solvents (VOCs) iron used in melting % tons kg/casted ton kg/casted ton 100 80,000 1.2 4.0

90 70,000 2002 3.5 1.0 80 2003 60,000 2004 3.0 70 0.8 60 50,000 2.5 50 40,000 0.6 2.0 40 30,000 1.5 0.4 30 20,000 1.0 20 0.2 10,000 0.5 10 Pig iron 0 Recycled scrap 0 0.0 0.0 2002 2003 2004 Casted tons Casted tons Machined Forged tons 2002 2003 2004 2002 2003 2004 Componenta De Globe tons

Forges The foundries melt almost all the runners tured at steel works and are supplied to the sult of mechanical wear. The sand then The forges account for 10% of Componen- and feeders produced in their own process- forges as bars. gives off dust and the dust has to be ex- ta’s energy consumption. Most of their en- es. The runners and feeders guide the mol- The number of steel blanks used in forg- tracted at several points in the process. The ergy is consumed in heating the blanks to ten metal into the actual product in the ing per tonne produced declined by some dust is fed to the dust extraction plant forging temperature. mould. The runners and feeders are re- 2% from 2003. This reduction was due to where it is separated from the air flow and Energy consumption per tonne of output moved from the products in the finishing the smaller amount of forging burrs. In forg- the air is conducted outside. Even the most at the forges declined 4% from 2003. Pro- process and returned for melting. Some of ing the product is formed into the desired modern dust extraction plants are not able duction switched from hammer to pressing the rejects from the Globe Heerlen Furan shape by hammering and the resulting burrs to remove the very finest dust and some of line. On the pressing line the burrs are cut production line are the only waste that can- have to be removed. More raw material is the dust escapes into the outside air. There while the product is still hot and heat treat- not be melted in the company’s own smelt- then used per tonne produced. are also differences in the separating capa- ment takes place immediately after this. ing furnaces, because of their size. They are The raw material used in the machine bilities of the dust extraction plants and This means the product does not have to be sold for reuse to other foundries. shops is mainly cast components from the methods in use. re-heated, which uses less energy. During 2004, the availability of recycled Group’s foundries. The VOC (volatile organic compounds) scrap was poor, due to the state of the glo- Despite the difficulties in obtaining emissions from the foundry process arise Use of raw materials bal market. Shiploads of recycled scrap ­recycled scrap, Componenta’s goal in 2005 from the solvents used in painting products, Componenta’s foundries make efficient use were transported from Europe to the grow- is to use the maximum amount of recycled from the alcohol-based thinners used in of recycled raw materials. Most of the raw ing market in China and what was left was scrap. coating and from the amines used in hard- material used in melting is sorted recycled not enough to meet the needs of European ening the cores. Componenta’s production scrap from the engineering industry. Pig iron foundries. For this reason the foundries had Dust and VOC emissions units have mainly switched to water-based is added to obtain the right metallurgical to use more pig iron in melting than in The biggest emission from the casting proc- paints, but some products still have to be properties. Various metal additives are also 2003. Despite this, almost 80% of the foun- ess is dust. Moulds and cores made from coated with solvent-based paints because of added (such as graphite, ferro silicon and dries’ raw material is recycled material. sand are used in casting. The sand is recy- the customer’s production process. copper) to adjust the chemical composition The raw material used in the forges is cled continuously in the process and its Forging and machining do not cause sig- to the required level. steel blanks. The steel blanks are manufac- grain size gets smaller and smaller as the re- nificant dust and VOC emissions. 10 Componenta Corporation Environmental Report 2004

Dust emissions of the Karkkila foundry before and after the production expansion project from penetrating the sand. An alcohol sol- course, transporting products and raw mate- vent has to be used for coating since there is rials also causes noise. little time on the automated production During 2004 several changes were made line for it to dry. The alcohol evaporating at the Globe Weert and Heerlen foundries from the coating is burnt at the Heerlen that make it possible for them to operate at foundry and in hand moulding at Iisalmi, night. The cooling equipment at the smelt- and only some 30% of it is emitted as gas to ing plant in Weert was replaced and the new the outside air. equipment is much quieter than the old. The amine gas used in the production of In June a noise barrier was built at the cores at the Globe foundries is fed to an ac- Pori foundry to reduce local noise. id treatment, which binds the amines to the In connection with the expansion of pro- acid and only 5% is emitted as gas to the air. The acid amine solution used in the treat- Noise levels of the Karkkila foundry before The amount of dust emissions per tonne vious level. ment is sent to a treatment plant in Ger- and after the production expansion project produced declined at the foundries by 33% The expansion of production at Karkkila many where the acid and amine are sepa- from 2003. One reason for this is because in 2004 did not increase the amount of rated for reuse. the dust emissions for the Globe foundries dust. Thanks to the more effective dust ex- In 2004, to reduce the smells from VOC are included in the 2004 figures. The traction plants, the amount of dust has de- emissions close to the foundry, the height of amount of dust emitted is extremely small creased close to the foundry. In the picture the extraction chimney from the casting thanks to the current dust extraction plants, above the figure on the left shows the daily and cooling line at the Heerlen foundry was with less than one kilogram of dust entering dust emissions before the changes and the raised until 25 metres. the environment for each tonne produced. figure on the right shows the situation after During 2005 the project is continuing at During 2004 the wet dust extraction the changes. Dust volumes have declined Heerlen to reduce VOC emissions and plants at the Iisalmi and Karkkila foundries significantly since the start up of the new smells, with the aim of replacing the cold were replaced with modern dry dust extrac- foundry in the autumn of 2004. box binders used in the production of cores tion units, where the dust emissions are only The transfer of the production of the with a more environmentally friendly sub- a fraction of those from the wet plants. The Belfeld foundry to Heerlen will result in a stance. investments made will have a full impact reduction in dust emissions during 2005. during 2005. VOC emissions, from the use of amines Noise In January 2004 a new dry dust extrac- and solvents at the foundries, declined 15% Several Componenta production units are tion plant was introduced at the Heerlen per tonne produced from the previous year. situated close to residential areas, so noise smelting plant to process again the air com- The proportion of water-based painting has can be a problem for the local environment. ing from the wet extraction unit that pre- further increased. These units pay particular attention to noise Average cedes it in the cupola melting plant. The The moulds for the furan production line abatement. We monitor and measure the noise levels LAeq. dB new dry extraction plant has a capacity of at the Globe Heerlen foundry and the level of noise caused by our production <= 40 1 mg/m3. The wet plant’s capacity was only moulds made from furan sand at the units in the areas close to the plants. The 40 < <= 45 45 < <= 50 150 mg/m3. This investment has reduced Compnenta foundry in Iisalmi are coated main causes of noise are the handling of raw 50 < <= 55 55 < <= 60 the amount of dust emitted to the air from before casting to obtain a sufficiently good materials at the foundries, the forging proc- 60 < <= 65 65 < <= 70 the cupola furnace to a fraction of the pre- surface quality and to prevent the metal ess at the forges, and air-conditioning. Of 70 < 11 Componenta Corporation Environmental Report 2004

Waste of the foundries Waste of the machine shops Waste of the forges means that the proportion of spent sand per tonne produced has increased. The amount kg/casted ton kg/machined ton kg/forged ton of dust extracted from the process as waste 700 700 700 has also increased. 600 600 600 The Globe Heerlen Furan and Globe Weert foundries operate reprocessing plants 500 500 500 for the moulding sand. After processing the 400 400 400 moulding sand can be used in the produc- tion of cores, which correspondingly reduc- 300 300 300 es the need for new sand and the amount of 200 200 200 spent sand. The proportion of waste at the foundries 100 100 100 Unsorted Sorted but not reused that is sorted and sent for reuse increased 0 0 0 Sorted and reused significantly from 2003. Most of the sand 2002 2003 2004 2002 2003 2004 2002 2003 2004 and dust is utilized. The spent sand and dust from the Pietarsaari foundry is stored for use in the construction of a new mixed waste landfill site and for covering the exist- ing site in the neighbouring town. The spent duction at the Karkkila foundry, a thorough of the sand. Some 2% of new sand and waste is produced mainly from the lubrica- sand and milling dust from the Pori foundry noise survey was carried out in 2004. This binding agents are added to the sand that tion oils, the painting process and from is stored for the construction of new indus- resulted in the enclosure of several sources returns from the casting process, so 98% of processing amine gases. trial landfill sites. The spent sand has also of noise and the building of noise barriers. the sand is continuously recycled. Even so, The machine shops produce normal in- been used in the foundations for a driver In the picture (page 10, below) are shown the process produces a large amount of dustrial waste and machine chips. Hazard- training track in Pori. The furan sand from the noise levels before and after the chang- spent sand. ous waste is produced by the lubrication the Iisalmi foundry is used as covering ma- es. Although production volumes have The other major waste fraction is dust, oils for machinery, by the cutting fluids terial at the local landfill site. grown considerably, the noise level has been which is separated at dust extraction plants used in machining and by painting pro­ Almost all the waste from the Globe reduced significantly. It is also remarkable from the air conducted from different cesses. foundries is sent for reuse. The smelting that the revamped foundry produces the points in the sand process. It is important to The biggest waste item at the forges is plant’s dust sludge separated from the cu- output of two production plants, so the realize that an increase in the amount of burrs. Hazardous waste includes the oil pola furnace, for example, is used in the overall situation has improved very much dust waste means a decrease in the amount used in forging and cooling emulsions. production of concrete columns. Spent sand indeed. of dust emissions in the air. is used in concrete structures. Metal is sepa- Another waste item at the foundries is Foundries rated from slag and the slag is then used in Waste and recycling slag. Slag is impurities (sand etc.) that rise The total amount of waste per tonne pro- covering material mixtures. Only fire-resist- The biggest waste items are spent sand and to the surface of the molten metal and are duced at the Componenta and Globe foun- ant material and unsorted waste is sent to dust. Spent sand is the sand that needs to be removed before casting. The other waste at dries increased 0.5% from 2003. At the the landfill site. removed from the sand process because the foundries is normal industrial waste, and Karkkila foundry a moulding line was start- fresh sand is added, to maintain the quality most of this is sorted for reuse. Hazardous ed up with a larger mould size, which 12 Componenta Corporation Environmental Report 2004

Water to the wastewater plant Water to the wastewater plant Water to the wastewater plant management systems. The required cost- from foundries from machine shops from forges efficiency also means the shortest routes m3/machined ton m3/forged ton 3 possible. All the partners we work with are m /casted ton 1.50 1.50 1.50 of such a size that they do not need to have

1.25 1.25 empty vehicles on any journeys. 1.25 SKAL Itä-Suomi, the regional association 1.00 1.00 of Finnish Transport and Logistics SKAL for 1.00 eastern Finland, chose Componenta 0.75 0.75 0.75 Suomivalimo for its “2004 Transport Cus- tomer of the Year” award. Commenting on 0.50 0.50 0.50 their decision, the association mentioned that the entire delivery chain at the foundry 0.25 0.25 0.25 functions well. Goods are loaded and un- 0.00 0.00 loaded without delay. The foundry area is 0.00 2002 2003 2004 2002 2003 2004 2002 2003 2004 also laid out so that trucks can move there unhindered and quickly. Some 50% of the raw material deliveries are of recycled scrap. Deliveries of recycled scrap to the foundries are always with a full Machine shops cleaning this can also be reused in the 2004 from 2003. The Globe Weert foundry, load, eliminating excess traffic. Transport is The total amount of waste per tonne pro- Group’s machining operations. Almost all Karkkila foundry, Pori foundry and the arranged on a regional basis, eliminating the duced at the machine shops declined in the machine shop waste is sorted. Kolsva forge take the cooling water used in need for long distance deliveries. 2004 from 2003. The biggest waste item at their process from rivers. The water circu- The other major raw material transported the machine shops is machining chips. In Forges lates in a closed system and is then returned is pig iron. This is transported to Finland in 2004 they were sent to the smelting plants The total amount of waste per tonne pro- at a slightly higher temperature to the river, shiploads of 1,000 – 4,000 tonnes. of steel manufacturers. During 2004 tests duced at the forges declined in 2004 from so no wastewater is produced. Much water Other raw materials are brought in con- were made in compressing the machining 2003. The biggest waste item at the forges is also used to dampen the sand at the foun- tainers or by truck. We also aim at full loads shavings to form briquettes. It is planned to is forging burrs, which are sent to the smelt- dries. This evaporates during the casting of raw materials. melt the briquettes in the Group’s foun- ing plants at steel works. The volume of process and does not end up in the munici- We do not normally use air transport, and dries. The melting tests were very successful these declined significantly from 2003. Al- pal sewage system. rail is only used in special circumstances. and the decision has been taken to invest in most all forge waste is sorted. briquetting equipment which will be intro- Transport Packaging duced in Pietarsaari during 2005. The ma- Wastewater Ready products are supplied to customers The packaging material for products is ei- chining shavings from the Pietarsaari ma- At the foundries and forges water is used mainly by transport companies chosen by ther recyclable pallets and pallet collars chine shop will be briquetted and in future for cooling, as an additive in sand at the the customer in accordance with their own owned by the customer or metal racks. The will be melted at the Pietarsaari foundry. foundries and in cutting fluids and painting contracts. Componenta arranges transport Group’s packaging material is recyclable The briquetting process also separates the processes at the machine shops. for some products. The transport companies EUR pallets and EUR pallet collars. These cutting fluid from the shavings and after The amount of wastewater declined in we use have quality and environmental are also used in traffic between the Group’s 13 Componenta Corporation Environmental Report 2004

production units. plant at the Heerlen cupola furnace. Pro- ments of the automotive industry concern- the environmental authorities. In raw material packaging we aim to use duction had to be restricted and more dust ing lead. Little things can be important for the en- the largest possible size of packaging. Metal than normal was emitted into the environ- We primarily choose raw material suppli- vironment. As part of the continuous im- additives, for example, come in 1,000 kg ment. An explosion occurred at the Heerlen ers that have environmental management provement scheme, for example at Compo- large sacks, and paints in 200 litre barrels or foundry during installation work in the holi- systems in use. nenta Främmestad 233 personnel initiatives larger containers. We insist that raw material days and one person was injured. A fork-lift Componenta’s Pietarsaari foundry partici- on environmental issues were made in suppliers use EUR pallets. truck used to transport the molten metal pates each year in a survey of air quality in 2004. Personnel participates actively in de- Componenta is a member of PYR Ltd, caught fire at the Weert foundry. the Pietarsaari area, in which air quality is veloping operations. Teams hold regular the environmental register of the packaging Molten iron is continuously processed at monitored continuously at two measuring meetings to decide on the priority for meas- sector in Finland. the foundries and so they are well prepared points. The latest annual report from the ures to be carried out. For example regulat- for accidents there. Emergency plans as re- survey states that most of the dust in the air ing the contents of cutting fluids and in- High-risk situations quired by the environmental management over the town originates from road traffic, structions on packaging to reduce the There were a few high-risk situations in our systems are in place at all the foundries. The either directly from exhaust fumes or raised amount of transport were measures carried production units in 2004 that could have emergency plan for the Pietarsaari foundry by traffic from the road surface. The dust out in 2004 that came form the improve- had an impact on the environment. All the and machine shop were revised in the sum- content in the air is highest in the spring af- ment initiative scheme. The large number situations were well managed and their mer of 2004. ter the snow has melted, when traffic and of proposals shows the commitment of per- ­environmental impact was insignificant. the wind raise into the air the ground grit sonnel to environmental issues and taking A transport ladle burst at the Pietarsaari Stakeholders and the road material ground by tyre studs. the environment into account in daily op- foundry and the molten metal was spilt on Componenta’s stakeholders are not only the People living close to the foundries have erations. the floor. It did not cause a fire and no one customers, personnel and shareholders but had a good opportunity to have a say now, was injured. At the Suomivalimo foundry, a also suppliers, subcontractors, public au- when the foundries have renewed their en- Environmental permits spark that originated in the dust extraction thorities, the neighbours of the production vironmental permits. Everyone has been en- The operations of foundries and forges are system set a dust extraction pipe on fire and units etc. The different stakeholder groups titled to make objections which the envi- such that they require an environmental the hot pipe then set alight the adjacent have different expectations concerning en- ronmental authorities have taken into ac- permit. The Pietarsaari foundry obtained a building. The damage was small and no one vironmental issues. count when making their decisions about new permit at the end of 2004 and the was injured. Many customers require us to have an en- environmental permits. For example, no ob- Globe Weert foundry in the spring of 2004. There was a small fire at the Alvesta vironmental management system. The auto- jections were made at all at the Globe foun- Globe Heerlen, ie the former Hoensbroek foundry in Sweden when hot iron falling motive industry maintains ‘black’ and ‘grey’ dries in the Netherlands and only one was foundry and the Belfeld production line from the holding furnace for the molten lists of chemicals. End products supplied to made in Pietarsaari. that was moved there in December 2004, metal set on fire objects on the foundry them must not contain any chemicals on Regional authorities in the area close to obtained its joint environmental permit in floor including two fork-lift trucks. The ma- the black list and it is necessary to look con- the foundries have also made statements January 2005. terial damage was small and no one was in- tinuously for more environmentally friendly during the process for renewing the permits, The environmental permits for the Pori, jured. A small fire also occurred at the forge alternatives to using them in the production and these have been taken into account Karkkila and Iisalmi foundries are currently in Kolsva, Sweden, when a hot axle pin fell process. Use of substances on the grey list when environmental authorities have made being considered and the decisions are ex- into oil and set it on fire. The fire was con- should also be avoided. We continually their decisions. pected soon. An environmental impact as- tained quickly and no one was injured. check that we meet the requirements of the The Group’s production units report the sessment (EIA) was carried out in connec- During the autumn there were disrup- black and grey lists. We have, for example, results of surveys and monitoring as defined tion with the expansion of production at tions on two days at the dust extraction succeeded in meeting the strict require- in the environmental permits each year to the Karkkila foundry. This made an exten- 14 Componenta Corporation Environmental Report 2004

sive assessment of the environmental im- Componenta Albin pact and matters that came to light were Componenta Främmestad taken into account during the expansion of Componenta Karkkila production. They will also affect the new Componenta Pietarsaari environmental permit. Componenta Pori The Virsbo and Smedjebacken forges Componenta Suomivalimo have current permits and a new permit is being applied for in Kohlsva during the Projects to build environmental manage- spring of 2005. ment systems have started at Componenta The environmental permits for the foun- Pistons and Componenta Nisamo. Quality dries are such that they govern develop- and environmental management systems ment relating to the environment. The new are being built simultaneously at both units. permits contain numerous requirements The goal is for the systems to be ready at that develop environmental issues at the the beginning of 2006. production units far into the future. New Construction of the system at Compo- requirements at the foundries in the Neth- nenta Åmål has reached the point that cer- erlands, for example, are to measure and tification should be possible towards the minimize unpleasant smells. end of 2005. In connection with the termination of Building of the joint environmental man- production at the Alvesta foundry in Swe- agement system for the Globe foundries has den, a soil survey is being carried out con- started, with the goal of completing it by cerning earlier operations there. Production the end of 2005. It is planned to obtain cer- operations during the period when Compo- tification for the Globe environmental sys- nenta owned the property have not caused tem in the summer of 2006. At the same a load on the soil. time the Globe quality system is being up- graded to meet the requirements of the au- Environment management systems tomotive industry’s ISO/TS 16949 standard. In accordance with the Group’s environ- The environmental management systems mental policy, each production unit should guide development at the units and help have an environmental management system them identify the environmental impact of conforming to ISO 14001 standards. Build- their production correct the most important ing of the systems continued during 2004 environmental aspects. The systems also and the Wirsbo foundry obtained its certifi- highlight the responsibility of everyone in cate in the spring of 2004. The following environmental matters and increase envi- production units have certified environmen- ronmental awareness and commitment to tal management systems: environmental issues. 15 Componenta Corporation Environmental Report 2004

Glossary of this report

Cast iron Machining centre Remelting Smelting furnace Ferrous metal which contains 2.0 - 4.2% Machine with several machine tool options, Melting in the smelting furnace of runners The furnace in which smelting takes place. carbon. The carbon is usually in the form of for example drilling, milling, lathing and and feeders, burrs, reject castings or machin- Source of energy electricity (= electric fur- graphite. Ferrous metals are divided into grinding. Cutting fluid is used in machining ing chips. nace) or coke (= cupola furnace). In the grey cast iron, nodular cast iron and white to prevent the tool from getting hot from electric furnace smelting takes place in a cast irons. Special cast iron such as wear-re- the friction. The cutting fluid is normally Runners and feeders single charge, meaning that the furnace is sistant ADI. water-based. The runners and feeders full of molten met- emptied completely or partially once a al that are removed when cleaning the cast batch is ready. For example, it takes about Chip Mould item. These can account for anything from one hour 20 minutes to melt 8 tonnes at a Metal chips, machining waste material. Mould formed by moulding from moulding 30% to 70% of the total iron, depending on power of 4.3 MWh. The cupola furnace sand for casting a product. The moulding the product, grade of iron and casting sys- process is continuous, so molten metal is Coating sand contains a hollow area that is the tem. taken out and raw material added in a con- Coating of the sand cores and moulds made shape of the product, the runners needed to tinuous process. from furan sand to obtain sufficiently high direct the molten metal and feeders to com- Sand core surface quality and to prevent the metal pensate for the shrinking of the molten A core made of sand and adhesives used for Surface treatment from penetrating the sand. metal. making hollow interior parts and complex Protects material from damage, such as shapes for castings. The core is put between ­corrosion. Primer and powder coating. Holding furnace Moulding the mould halves made from moulding sand Electric furnace for holding molten metal. Stage in which a casting pattern is used to and it disintegrates during casting and when VOC Typical size 30 tonnes. make a mould in the moulding sand into the mould is compressed and mixes with Volatile organic compounds. which the molten metal is poured. the moulding sand. Machining General name for various machine tool Recycled scrap methods, such as drilling, milling, lathing Left-over raw material from the manufac- and grinding. turing process, such as plate cutting waste, and end-of-life iron and steel products. COMPONENTA CORPORATION Nuijamiestentie 3 C FI-00400 Helsinki, Finland Telephone +358 10 403 00 • Telefax +358 10 403 2721 www.componenta.com