Investor relations
corporate social responsibility
The environment
Our product
The Group is a major producer of multicrystalline silicon wafers for the production of solar cells. These cells are processed into solar systems used for the generation of renewable electricity with a lifetime in excess of 25 years. As technology improvements increase the efficiency of solar cells, it is expected that the lifespan of the solar modules will lengthen, providing electricity for a known starting cost and little maintenance. Depending on the system's location, it has been estimated that all the energy used in the production of a silicon solar system will be repaid within two to three years.
In our position as a producer of silicon wafers, for the generation of electricity, free of carbon emissions, our focus on our environmental responsibilities is evident.
Our processes
It is the Group's policy to:
- seek to eliminate and, where this is not practicable, to minimise negative environmental impacts from the pursuit of all business interests while continuing to produce high quality products which meet customer requirements;
- comply with all statutory environmental legislation as a minimum and to aim to improve upon the standards set by the local regulatory authorities; and
- foster an informed and responsible approach to all environmental concerns and encourage the involvement of employees, customers and suppliers. Regulatory authorities are consulted and informed at all appropriate times.
Waste and recycling
The Group has effective environmental management and health and safety systems in place, in support of, and to complement, its quality assurance systems. Across all its sites in the United Kingdom and Germany a proactive approach is taken to the pre-treatment of waste as required by the EU Landfill Directive. The purpose of this treatment requirement is to reduce the impact of waste sent to landfill and to increase the amount of waste that is recycled. For instance, within the Group, all silicon carbide used in the sawing of blocks and wafers is continually treated and recovered for reuse.
- Crystalox in the United Kingdom is a member of compliance schemes which fulfil local legislation requirements such as The Producer Responsibility Obligations (Packaging Waste) Regulations 2007. This scheme sets targets for British industry for the recovery and recycling of packaging waste, seeking to ensure that discarded products are environmentally treated through recycling and recovery rather than being disposed of in landfill.
- A similar scheme exists in Germany where PV Silicon received an award from the State of Thuringia for participating successfully in the sustainability programme "Ökoprofit"; a voluntary programme carried out by industrial companies that first analyses the impact of their industrial production on the environment and then reduces waste materials, packing materials, consumption of water, use of energy and emissions.
- In 2011 we reduced our packaging materials for wafers by 30%. All plastics, wood, paper, polythene, cardboard, metals, etc. are recycled, either by being sold to recycling companies or under local council arrangements, removed for recycling. The Group endeavours to recycle all recyclable packaging materials to conform to current packaging legislation and thereby minimise waste to landfill across all its sites.
Environmental management systems
We recognise the need to establish, formalise and apply an environmental management system at each of our manufacturing sites. Therefore, in order to further enhance its already effective environmental and health and safety management systems:
- Crystalox in the United Kingdom has made a good start on its programme to achieve environment and health and safety accreditations; and
- the site in Erfurt, Germany, has been carrying out an environmental audit for the last five years, focusing on the consumption of water, electricity and on the emission of waste materials.
These high standards complement and consolidate Crystalox and PV Silicon's EN ISO 9001 status; further fulfilling our responsibility to the environment and health and safety.
Bitterfeld
With the introduction of environmental and energy management system targets to reduce waste material, consumption of water and energy, the Bitterfeld site in Germany plans to apply for DIN EN ISO 9001 Quality Management System, DIN EN ISI 14001 Environmental Management System and DIN EN ISO 50001 Energy Management System.
The production of solar-grade polysilicon at Bitterfeld necessitates a heightened focus on health and safety. Therefore, prior to commencing production, Hazard and Operability Studies ("HAZOP") were performed and thereafter, regular HAZOP meetings are held by the management with an external safety expert, where any issues are discussed and improvements defined. For all planned and realised changes in the production process and in the construction of the plant, safety aspects have to be considered and HAZOP studies are performed if applicable. Bitterfeld's focus on safety and high standards was affirmed by a successful Safety Management System Audit in 2011.
The construction and operation of the Bitterfeld plant requires it to comply with the German Emissions Control Act. This requires that every emission source be identified and that all emissions are monitored periodically by the authorities. Waste, energy and water consumption have to be minimised; waste is recycled or recovered; excess energy from the production process is used for heating and hot-water in the office buildings; and coolant used in production (water) is re-used.
An environmental compatibility study was performed and we were able to reduce electric power consumption for solar-grade silicon production. This was achieved mainly through improvements to the high-temperature processes for silicon deposition and hydrogenation of Chlorosilanes. In addition, working with a chemical processing plant nearby we were able to employ a more energy efficient waste water treatment.
Our staff
The Group's policy is to provide equal opportunities to all existing and prospective employees. The Group recognises that its operation and reputation depends upon the skills and effectiveness of its employees and is committed to the fair and equitable treatment of all and to prohibit discrimination on the grounds of age, sex, religion, sexual orientation, race, nationality or ethnic origin.
It is the Group's policy to give sympathetic consideration to the recruitment, continuing employment, training, career development and promotion of disabled persons. In the event that a person became disabled he or she would continue to be employed, wherever possible, in the same job. If the degree of disablement made this impractical, every effort would be made to find suitable alternative employment and to give any appropriate training. The Group's policy on training and career progression applies equally to everyone within the Group whether or not disabled.
During the last quarter of 2011, in light of the ongoing adverse market conditions the Board resolved to take appropriate actions to manage the business through the difficult times facing the Group and the industry and to conserve the Group's cash. In the short term this led to reduced production output at its United Kingdom ingot and German wafer operations and the Board suspended production temporarily at its polysilicon facility in Bitterfeld, Germany. Regrettably these actions led to significant job losses in the United Kingdom, with 45 redundancies, and short-time working in Germany at both Bitterfeld and Erfurt. The Board's actions were a necessary response, designed to preserve the capabilities within the business.
The Group continues to believe in the importance of protecting the Group's capabilities and cash for the future and maintains that the medium-term outlook for solar installations is positive.
Training
The Group recognises that a key factor in its successful operations is its personnel. The continued expansion of operations and the parallel increase in the workforce has meant that management's top priority has been to provide a safe and secure work environment for all. To this end, health and safety training has been of paramount importance.
Initial in-house health and safety induction training for all personnel joining is supported by external specialist trainers for occupation specific training. During 2011 fire safety training and comprehensive training for fire marshals was undertaken by selected staff at each site. A number of staff were externally trained as first-aiders, thereby helping to ensure maximum first-aid cover to all staff. As part of its ongoing responsibility to comply with health and safety legislation, refresher training was provided to all forklift operators.
In Bitterfeld we introduced a special web based training tool for all personnel to improve further the safety record at the plant where there were no chemical processing related accidents recorded during 2011.
In Erfurt we introduced a voluntary health management programme for all staff.
The Group is committed to the ongoing training and development of its personnel. Particular skills-based training is provided to individuals when identified and seen as beneficial to the overall operation of the Group. The introduction of new technologies and new and efficient working methods, has resulted in personnel being trained to both develop and hone their knowledge and skills. A flexible work environment has meant that personnel are given the chance to work in different departments, thereby helping them maximise their potential and sense of fulfilment.
In Germany we run an apprenticeship programme where we currently have 16 young people in Erfurt and nine young people in Bitterfeld enrolled in technical and administrative jobs. The intention is that after a three year period these apprentices have the chance to become permanent members of staff. We are running programmes for some of the apprentices enabling them to continue with their studies to obtain a degree in engineering.
Health and safety
The Group recognises its responsibilities under health and safety legislation in each country of operation to ensure, so far as it is reasonably practicable, the health, safety and welfare of all its employees. Group policy is to take all reasonable precautions to prevent accidents and dangerous occurrences and for the creation of working conditions which safeguard employees. The Group attaches the greatest importance to health and safety, considering this to be a management responsibility. To this end the Group will allocate the necessary resources and enlist the active support of all employees upon whom duties are also imposed by health and safety legislation. The Group regards the standards set by the various relevant statutory provisions as the minimum standards which must be achieved and endeavours to improve upon these where reasonably practicable.
Our community
We have been running local events in Erfurt for several years to demonstrate the possibilities of solar electricity. During 2011 we participated in the local event "Long Night of the Sciences" where our apprentices demonstrated and explained our technology to all interested citizens of Erfurt from 6.00pm until midnight. We also worked with the local power provider to carry out the annual solar car race programme with local students. The feed-in tariff which we receive from our 30 KW solar system mounted to building in Erfurt, which feeds electricity directly into the local grid, is used to finance these projects.
The Group is an initiator and participant in the five year long project "SolarValley Mitteldeutschland". This is a research and development cluster in the German states of Thuringia, Sachsen-Anhalt and Saxony. Dr Hubert Aulich, the Group's Director of German operations, is the chairman of the project. It involves 35 companies, five universities and nine research institutes working on the entire crystalline silicon value chain with the aim of reducing the cost of solar electricity to below that of conventional power and accelerating market introduction. This is the largest worldwide PV cluster with 98 projects and an overall €150 million budget over five years which is funded 50% by the Government and 50% by industry.
Within the United Kingdom, Crystalox sponsors the annual Photovoltaic Science, Application and Technology ("PVSAT") conference and exhibition organised by the United Kingdom's Solar Energy Society whose goal it is to advance the utilisation of the sun's energy through research and public education.