The business > Strategic objectives







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In order for Hulamin to remain competitive and sustainable, it must improve operational performance levels to targeted levels based on global benchmarks for similar operations.

This includes optimising the following operational variables:

  • Manufacturing excellence – throughput, quality, recoveries, consumption efficiencies and equipment reliability
  • Customer satisfaction – quality, on-time delivery and long-term reliability
  • Sales mix, margin and volume – maximise profitability while simplifying the business where possible

Underpinning the achievement of world-class operational performance is the necessity for skilled and motivated employees.

Hulamin needs to continue to reduce its input costs in a sustainable manner to remain globally competitive. Hulamin is, accordingly, focusing on its major cost items, primarily the cost of employment, energy and price of aluminium. The following actions are in progress to address cost competitiveness:

  • Conversion of gas supply from LP gas, which is supplied in trucks from various oil refineries, to natural or methane-rich gas at a substantial saving
  • Sourcing more than 25% of metal as scrap (at a price below the LME aluminium price), thereby displacing higher-cost primary metal supply (growth in local market demand and recycling capacity are prerequisites)
  • Reduction in the cost of processing secondary metal units processed on site (process scrap)
  • Strategic sourcing and commodity management approach to drive reduction in input costs
  • Consumption efficiency improvement initiatives (gas, rolling oils, packaging, paints and lacquer)
  • Logistics optimisation initiatives
Hulamin has a competitive advantage in the local and regional economy but, to date, this market has been able to support only around 30% to 40% of Hulamin’s sales. With the growth in sub- Saharan Africa and the corresponding increase in per capita income, the consumption of aluminium in the region is set to grow significantly. This will allow Hulamin to focus its product range and will also increase the availability of aluminium scrap in the region, with its attendant benefits. Hulamin and the established local aluminium supply industry is well placed to support and promote the growth and investment in local downstream fabrication of a wide variety of product applications, increased supply of which is necessary to meet the burgeoning demand in the region. Hulamin and the local downstream aluminium industry are dependent on primary aluminium supply from the South 32 Hillside smelter in Richards Bay. As the smelter is a large consumer of electricity at a time when this resource is in short supply locally, it has recently been the subject of much public scrutiny. Hulamin is also dependent on the importation of billet for its extrusions operations and the supply of 100 000 tons of rolling slab from the Bayside casthouse which supplements the 200 000 tons produced by Hulamin’s remelt and casting facility. The growth in sales of aluminium to the local market, particularly for use in beverage cans (with its high turnaround cycle), creates the opportunity for increasing use of competitively-priced scrap by Hulamin instead of primary aluminium.

The aluminium industry presents the local economy with significant opportunities for economic growth, industrial development, job creation, transformation and energy efficiency. Hulamin recognises its leadership role in working with government to realise these opportunities.

Hulamin and the aluminium industry, in turn, require the support of government to assist to manage the unfair competition from low-priced imports, making appropriate infrastructure available at an appropriate cost (e.g. gas pipeline), ensuring the retention and availability of aluminium scrap generated in South Africa, prescribing local content requirements in infrastructure projects, stimulating the attractiveness of the region for foreign direct investment, continued competitiveness investment support and ensuring that the imposition of carbon pricing measures are competitive and non-punitive.

Strategic risks

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Deploy and sustain the Integrated Manufacturing Approach (IMA)

  • Develop a cost-competitive culture
  • Develop optimised product mix
  • Volume growth
  • Margin improvement
  • Develop and execute a process capability and competency framework
  • Maintain a cost-competitive skilled workforce
  • Reduce gas unit costs
  • Primary metal supply pricing
  • Achieve 25% of metal inputs from scrap
  • Maintain a cost-competitive skilled workforce
  • Logistics and coatings costs
  • Aluminium can market
  • New local and regional market development
  • Expand presence in sub-Saharan Africa
  • New product development initiatives
  • Sustainability and optimisation of the Bayside casthouse
  • Sustainability of South 32 Hillside smelter
  • Import tariffs
  • Local scrap protection
  • Carbon tax
  • Incentives and grants


  • Production yields achieved by Rolled Products below target
  • Reorganising of strategic skills within the workforce to better optimise skill set to processes in the business
  • Rolled products sales volumes decreased by 9% due to electricity and LPG disruptions
  • Improved performance in volumes and yields in the second half of the year
  • Partial conversion to CNG complete
  • Saving of R10 million achieved in LPG usage
  • Unit cost reduced by 5% in US Dollars
  • Construction of the aluminium recycling plant completed and commissioned in the third quarter of 2015, on time and within budget
  • Local sales up 18% compared to 2014
  • Niche product mix focus
  • New three-year contract signed with Nampak
  • Automotive sheet feasibility study underway
  • Bayside casthouse acquired by Isizinda Aluminium, of which Hulamin is a strategic partner, including the securing of rolling slab supply in 2015 (five-year supply contract)
  • New melting ingot ontract approved
  • Growing scrap supply and recycling
  • Application for import duty protection and tariffs has been lodged with ITAC. Awaiting for the ruling from the ITAC commission
  • Growth in regional beneficiation of aluminium



Refer to the Reliance and impact on key capitals section here for more information on how the key capitals support the delivery of our strategy and how we have fared against our key performance indicators.