Annual Report
2003
Your Partner in Environmental services
Printed on recycled paper
Index
Highlights
7
Location Maps
11
Summary 2003
15
Business Group Activities in 2003
25
Aluminum Waste Recycling Salt Slags Recycling
26 31
Zinc and Desulfurization Recycling
34
Industrial Waste Management Industrial and Hydrocarbon Cleaning
40 44
Environmental Engineering
51
Latin America
58
Human Resources
61
Sustainability Report
67
Research, Development and Innovation
85
Legal and Economic-Financial Information
95
Audit and Annual Accounts Report
97
Management Report Corporate Governance Report
100 148
Auditing and Control Committee’s Report
168
Appointments and Remunerations Committee’s Report
179
Management Structure
181
5
Highlights
Highlights
Balance Sheet
2003
Gross Assets Equity Net Financial Debt
Variation
2002
2001
2000
in %
(M€) 469.1 171.6 27.4
-14.3%
547.3
491.3
383.7
3.7% -71.4%
165.4 95.8
165.6 88.8
126.1 84.7
356.5 38.1 8.4
-11.6% -6.8% -48.1% -16.0%
403.1 40.9 16.2 10.0
365.1 40.5 14.8
286.1 39.9 16.2
26.8
-30.4%
38.5
28.9
38.5
252.3 40.8
6% 7.7%
238.1 37.9
10.7% 16.0% 0.7
5.3% -72.4% -69.3%
10.1% 57.9% 2.3
11.1% 53.6% 2.2
13.9% 67.2% 2.1
5.4
-7.2%
5.8
5.0
8.5
4.9% 1.8%
-19.0% -2.0%
6.0% 1.8%
8.9% 3.0%
12.8% 4.2%
Profit and Loss Account Sales Ebitda After-tax earnings (EAT) EAT without fiscal credits Net Cash Flow (EAT+Amortization+Provision) Excluding Aluminum Waste Recycling Activity Sales Ebitda Significant Variables Margin (% Ebitda/sales) Net Debt/Shareholders' Funds Net Debt/Ebitda Ebitda/Financial Result Profitability: % EAT on: - Equity (ROE) - Gross Assets (ROA)
8
Annual Report 2003
Personnel Average Workforce
Average Workforce
2003
By professional category
Per Business Unit Corporate Services
20
Aluminum Salt Slags Zinc and Desulfurization
210 107 155
Industrial Waste Management Industrial and Hydrocarbon Cleaning Environmental Engineering
230
Total
2003
Engineers and Other Uni. Graduates Technical Personnel
180 92
Clerical Staff Laborers
244 872
Total
1,388
317 349 1,388
Tons of Treated Waste (Thousands of tons)
Aluminum Salt Slags Zinc and Desulfurization Industrial Waste Management Industrial and Hydrocarbon Cleaning Latin America Total
2003 99 159
2002 158 144
Variation % -37.6% 9.8%
223 480 197 73
217 410
2.9% 17.1%
230
-14.6%
1,230
1,160
-0.2%
9
Location Maps
Locations Maps
Facility Locations in Spain
Aluminium Salt Slags Zinc and Desulfurization Industrial Waste Management Industrial and Hydrocarbon Cleaning Environmental Engineering
12
Annual Report 2003
Group Presence Worlwide
Befesa Salt Slags (United Kingdom)
Befesa Gestión Residuos Industriales (Portugal) Befesa Mexico
Befesa Peru
Befesa Brasil Befesa Uruguay
Befesa Chile
Intersplav (Ukraine)
Befesa Argentina
Donsplav (Ukraine)
13
Summary 2003
Summary 2003
During the last few years Befesa has been undergoing a thorough change as a result of the Strategic Plan drawn up in the year 2000, which has affected its activities as well as the development of its management approach, and even its corporate identity. The result of this strategic reorientation is a different activity ordering, optimization of its corporate policies, and an investment and divestment policy that has enabled it to continue to grow in the areas where greater potential and profitability exist.
To be precise, early in the financial year the company divested itself of the 50% shareholding it had in Tracemar, and in December it sold its 100%
This process has resulted in the incorporation of new
shareholding in the Water Concessions, Elsur, in Almeria, and Aguas de Baena, in Cordoba.
activities, the reorientation of some that already existed and the abandoning of others that were not consistent with Befesa’s strategy.
Likewise, the 2003 financial year has been witness to Befesa’s commitment to investing to strengthen the
The 2003 financial year is a good example of the change process. It was a difficult year due to the trade cycle the metal markets went through, especially the aluminum market, and the expansion plan undertaken towards mid-year, for which positive results are expected in 2004.
16
As regards divestments, these were a consequence of Befesa’s strategy of focusing on products and markets more in line with the central nucleus of its activity, which is the providing of environmental services for the industrial sector and the construction of environmental infrastructures.
areas with the greatest potential, to be precise, the Industrial Waste Management, Industrial and Hydrocarbon Cleaning and Environmental Engineering activities, either through organization growth, or the acquisition of companies that are already operative in the market.
As regards acquisitions, we would underline the acquisition, in the Industrial and Hydrocarbon Cleaning sector, of 100% of Sistemas Agua Presión and Aragonesas de Aguas, and the remaining 30% of the Berako Group. On the other hand, the Industrial Wastes Management activity strengthened its presence in Andalusia through the acquisition of Rimacor, a company dedicated to the management of wastes from the timber industry. In relation to organization growth, the expansion achieved through the opening of new branch offices by Befesa Gestión de Residuos Industriales, Limpiezas Industriales e Hidrocarburos and Ingeniería Medioambiental is noteworthy. In addition, the Industrial and Hydrocarbon Cleaning sector incorporated a new activity through the creation of the company Befesa Técnicas del Suelo, dedicated to the remediation of contaminated lands.
the Business Units were merged. Furthermore, each of these units was strengthened through the incorporation of new professionals to guarantee the meeting of the strategic objectives established for each one. In spite of the strategic refocusing Befesa is undergoing, the company continues to maintain its Ebitda level, which is an indication of its capacity to face up to the challenges that might arise due to periods of lesser uncertainty and volatility in the metal markets, which according to all indications will come about. In fact, in spite of the aluminum performance, the Ebitda on sales increased from 10.16 to 10.70%. Excluding Aluminum Waste Recycling Activity Dec. 03 Dec. 02 Var (%) Sales Ebitda
252.3 40.8
238.1 37.9
6% 7.7%
Major restructuring was done in relation to the Aluminum activity which enabled the company to
This environment of change was precisely what
adapt itself to a market that has been, up till now, dominated by over-capacity, and which we expect
encouraged Befesa to bring forward and complete all the reorganization and restructuring processes in
will show positive results in the 2004 financial year. The restructuring cost approximately 4 million euro and the closure of one of the plants.
2003, to enable it to look to the forthcoming years with the guarantee of participating exclusively in activities with equal or greater margins within the sector, with the backing of a solid financial structure.
In the Industrial Waste Management, Industrial and Hydrocarbon Cleaning and Environmental Engineering sectors, activities were reorganized. In the first two cases, most of the companies in each of
17
Summary 2003
In addition, towards the end of 2003, a new corporate identity was introduced, which led to the
incorporation of the Befesa trade-name in all our activities, independently of the area they belong to.
commercial renaming of all the companies and the
Aluminum Waste Recycling
Salt Slag Recycling
Zinc and Desulfurization Waste Recycling
Industrial Waste Management
Industrial and Hydrocarbon Cleaning
Environmental Engineering
Latin America
Each of Befesa’s Activities responded to a different
the euro. Nonetheless, as has been mentioned
pattern in the 2003 financial year:
previously, Befesa has foreseen the new dynamics of the market and restructured the business in a way
■ Aluminum
Waste Recycling: It enables the
recovery of the aluminum content from scrap for
that has allowed it to optimize its resources and reduce costs.
subsequent production of secondary aluminum. This activity has suffered a narrowing of margins as a
■ Salt
consequence of the actual over-offering that exists for
provides a salt slags collection service. This is a waste
Slag Recycling: In this activity, the company
the product, the weakness of the automobile market
obtained during the production of secondary
in Europe, and the depreciation of the dollar against
aluminum, which is subsequently recycled to obtain concentrates of aluminum and salt which is then reused as flux. This has been the first complete financial year in which our plant in the United Kingdom has been in operation. Towards year-end, satisfactory performance levels were achieved and we therefore expect 2004 to come up to the same performance levels as our plant in Spain ■ Zinc
and Desulfurization Waste Recycling: In the
Zinc activity, a waste powder removal service is provided for Steel production furnaces. This is recycled and Waelz Oxide subsequently obtained and sold. The culmination of the R&D process carried out
18
Annual Report 2003
by the company itself has enabled the obtaining of
The investments made in our plants were also
higher productivity levels this year, and the
noteworthy and these have enabled us to not only
guarantees obtained have been such that an
widen the range of wastes susceptible to being
enlargement of capacity is currently being considered.
treated but to also environmentally optimize those
As regards Desulfurization, we have managed, once
that were already being treated in our facilities.
again, to increase the volume of treated waste. ■ Industrial ■
Industrial Waste Management: The objective is
and Hydrocarbon Cleaning: The
objective of this activity is to provide services for the
the collection, treatment, valorization, storage and
industrial sector such as cleaning with mechanized
elimination of any type of waste of an industrial
equipment, the cleaning and repairing of tanks, the
nature. This year has been a significant milestone in
treatment of wastes on site by means of stationary
the development of this activity. It was a year of
and mobile equipment. In addition, PCB
important changes, in which the merging process of
contaminated equipment is treated and recycled and
all the companies, the implementation of new
plastics are recycled to produce polyethylene plastic
environment management and monitoring tools, and
screenings. The changes made in this activity were
the implementation of a new centralized area were
also noteworthy. On the one hand, the geographical
culminated. These changes will enable cost savings
activity area has been broadened quite considerably
and the offering of better services to our customers.
through the opening of new local offices throughout
19
Summary 2003
Spain and Portugal. A Joint Venture has also been
■ Latin
America: Befesa is currently present in
established with Veolia which will enable the
Argentina, Chile, Mexico, Peru, Brazil, and even more
consolidation of the activities that were already being
recently, in Uruguay, where it mainly offers Waste
carried out in Europe. Towards the end of the
Management and Industrial Cleaning services. With
financial year, the company was awarded a significant
the exception of Argentina, where Befesa has been
contract in Europe which will enable it to expand the
present since 1999, Latin America is an emerging
natural field of operations of this activity. The effort
market where satisfactory results are already being
made in this activity to expand its development to
achieved. The performance of Befesa Argentina has
Latin America was of like importance. It is expected
been outstanding. It has a portfolio of customers of a
that this entire expansion plan will bear fruit, through
multi-national character, which are therefore
positive results, as of from the forthcoming financial
subjected to extremely demanding environmental
year.
controls. This has enabled the company to achieve positive results. In Peru, an environmental platform
■ Environmental
Engineering: Befesa is one of the
physicochemical treatment plant. Befesa Chile was
of hydraulic infrastructures and is also in a clear lead
awarded a significant contract to manage wastes
in the seawater desalination and industrial water
from the mining industry, while in Mexico, Brazil and
treatment sectors. 2003 was an exceptional year for
Uruguay the company’s commercial activity, which has
this activity. However, an even more favorable
enabled it to achieve excellent results in other
evolution is expected thanks to the National Irrigation
countries on the American Continent, is being
Plan and the National Hydrological Plan, and this has
intensified
the company to having strengthened all its areas through the incorporation of new professionals and a new organization structure that is focused more on the development of the end product.
20
was inaugurated, which includes a dump and
leading companies that operates in the construction
Annual Report 2003
Once more, Befesa has treated more tons of waste than in other years, and in 2003 treated more than
million tons. The company thus contributes to the protection of the environment and the efficient reuse
1.2 million tons of industrial wastes, which brings the total, since its establishment, to more than 5.6
of resources of which there is a scarcity in nature.
Treated Wastes per Line of Business
Treated Wastes (thousands of tons)
Industrial Cleaning (16%) 1,400 1,160
1,200
Aluminum (8%)
985
1,000 800
Salt Slags (13%)
672 513
600 400
Latin America (6%)
1,230
376 221
200
Zinc and Desulfurization (18%)
0 96/97 97/98 98/99 99/00 2001
2002
Industrial Waste Management (39%)
2003
Sales Figures (millions of euro)
450 400 350 300 250 200 150 100 50 0
403.1 365.1
356.5
286.1 192.5 154.5 57.4
96/97 97/98 98/99 99/00 2001
2002
2003
In 2003, Befesa’s sales figures reached 356.5 million euro, an 11.6% drop compared to 2002. This was a consequence of Tracemar, Elsur, and Aguas de Baena not being included in the consolidation perimeter and the negative evolution of the price of metals and the restructuring carried out in the aluminum activity.
21
Summary 2003
The distribution of sales per Business Unit clearly indicates the strategy followed by Befesa over recent years which consisted of diversification and a lesser exposition of the activities with a greater volatility in prices as is the case with metallic wastes, especially aluminum. Aluminum represented 67% of our sales figure in 2000 as against the current 31%. At the same time, the Industrial Waste Management, Industrial and Hydrocarbon Cleaning and Environmental Engineering areas have been strengthened.
Sales Figures 2003
Aluminum (31%)
Environmental Engineering (30%)
Salt Slag (5%) Industrial Cleaning and Hydrocarbons (10%) Zinc and Desulfurization (12%)
Industrial Waste Management (12%)
Sales Figures 2002 Environmental Engineering (27%) Industrial Cleaning (9%)
Sales Figures 2001 Industrial Cleaning (6%)
Aluminum (41%)
Industrial Waste Management (4%) Environmental Engineering (18%) Aluminum (53%)
Industrial Waste Management (7%)
Salt Slag (5%)
Salt Slag (5%) Zinc and Desulfurization (12%)
Zinc and Desulfurization (11%)
22
Sales Figures 2000
Industrial Waste Management (6%)
Industrial Cleaning (6%) Environmental Engineering (4%)
Aluminum (67%) Salt Slag (3%) Zinc and Desulfurization (16%)
Annual Report 2003
The Ebitda in 2003 was 38.1 million euro, 6.8% less than the previous year, in spite of the divestments
market, which gives us an idea of the positive contribution from the new activities Befesa is
made and the negative evolution of the metals
developing.
Ebitda (millions of euro)
45 40 35 30 25 20 15 10 5 0
39.9
40.5
41.0 38.1
34.7 29.0 22.4
96/97 97/98 98/99 99/00 2001
2002
2003
23
Summary 2003
The result before taxes at the close of the 2003 financial year was 10.7 million euro, 13% less than
At the close of the year, Befesa’s workforce was 1,388, of which 180 were Engineers and other
the previous year while the ATE (After-Tax Earnings) was 8.44 million euro. The ATE in 2002 was 16.2
University Graduates, 92 Technicians, 244 Clerical Staff and 872 Laborers, 66.71% of the total
million euro, although this incorporated 6.2 million euro in tax credits that were activated at the time, and which, in virtue of the ICAC Resolution of 20th
workforce are permanent employees while 33.29% are provisionally contracted.
March, were computed as revenue for that year. The result in 2002, omitting the aforesaid effect, was 10 million euro, which represents a 16% reduction this year. Befesa’s Consolidated Balance for 2003 shows assets of 469.1 million euro, a 14.3% reduction on the previous year as a consequence of the aforementioned divestments in Tracemar, Elsur and Aguas de Baena. The net debt has been reduced considerably to 27.4 million euro, with an Ebitda ratio over debt of slightly less than 1% and a leverage ratio of only 22%, which gives us an idea of the company’s high level of solvency and its potential for future growth.
Total Assets (millions of euro)
600
Net Financial Debt (millions of euro)
469.1
500 383.7
400 300 200
120.0
547.3 491.3
233.5
84.7
80.0
259.9
88.8
95.8
67.3 59.4
60.0 27.4
40.0
129
20.0
100
11.0
0.0
0 96/97 97/98 98/99 99/00 2001
24
100.0
2002
2003
96/97 97/98 98/99 99/00 2001
2002
2003
Business Unit Information
Aluminum Waste Recycling
During the year, this Business Unit treated some 99,000 tons of waste, which confirms its leading position in the Spanish market.
The business sector known as “Aluminum Waste Recycling”, covers all the activities related with the providing of aluminum content waste collection and treatment services, the manufacturing and marketing of aluminum alloys and the design, manufacturing and assembly of equipment related with the recycling of this material. Befesa is the leader in Spain in the aforesaid field and leader in Europe in the recycling of aluminum content waste. In the political debate on the sustainable use of resources, the recycling of metals serves as a model to demonstrate the ideal functioning of the life cycle with significant contributions in the saving of resources. In this sense, the recycling processes and services offered by the Befesa Group for aluminum, as well as for zinc, are indispensable elements for ensuring the future of the production industry. The array of the properties of this metal make it one with the greatest projection.
Description of the activity Aluminum is one of the most extensively used materials in modern-day life due to its low density (2.7 t/m3). The enormous advantage of its use is the savings in energy and the lower impact it has on the environment than other materials. The technical difficulties that arise with its primary production, related with the large energy consumption required (14 kWh/kg), are more than compensated for by its easy recycling in which only 5% of that energy is consumed. Therefore, the production of secondary aluminum has reached, on average, 32% of the primary metal produced and the growth rate has been around 30% in recent years. This has contributed to improving the Environment and energy saving. The expansion of products made with aluminum in all the economic sectors is a reality, especially in the transport sector. An ever-increasing proportion of
26
this metal is being included in modern-day vehicles (it is estimated that cars will eventually have more
lower production of salt slags and an increase in productivity. The merit consists in carrying out this
than 200 kg of aluminum content). This is due to its properties, among which we would mention the advantages this metal has when it comes to energy saving and its easy total recycling after use (95% of the metal-content in scrap vehicles is recycled).
recycling process with zero solids to be dumped.
The consumption of aluminum in Spain is around 23 kg/inhabitant, while in countries such as Germany it is around 29 kg/inhabitant. Therefore, great growth expectations exist for the future. The recycling and recovery of aluminum is not simply the resmelting of scrap. It is the manufacturing of metallurgically elaborated products in accordance with homologated quality techniques. The production of recycled aluminum in Europe is around 2,500 million tons/year. Spanish production is around 220,000 tons/year, which is used mostly to produce molded pieces.
Positioning and main activities The situation was similar to that experienced in the last few months of 2002 – large reduction in prices and a significant reduction in demand. The year 2003 was also a difficult year for businesses related with the secondary aluminum market. However, 2003 was a key year as regards the future of Befesa’s aluminum activities. The restructuring of the activity, centered on the suiting of the same to the new market reality, was successfully completed. On the one hand, the Aluminum Disk plant in Sabiñanigo was closed down due to its nonprofitability, and upon it being a primary aluminum plant that had nothing to do with the recycling activity carried out by Befesa.
The production of secondary aluminum from low metallic richness materials is the most noteworthy and interesting and it is based technically and economically on the performance of the rotating
On the other, and as regards the manufacturing of alloys, the workforce has been restructured at the Bilbao and Valladolid plants, while, in the case of
furnace it is carried out in. Several improvements that have been incorporated, such as the use of
the former, the sales teams have been strengthened. Subsequent to these steps being taken, the two
pure oxygen, the redesign of the interior profile of the refractory lining, etc., have led to the achieving of excellent results. This has meant larger amounts of recovered metals, lower consumption of fluxes,
plants are now in a privileged competitive position with great productive versatility. Moreover, the two companies are in a position to provide their customers and providers with services under the
27
Aluminum Waste Recycling
The array of measures taken will result in a saving of 2 million euro in production costs in the 2004 financial year. In line with the description of the environment, the financial year was a difficult one due to the continued tendency towards the reduction in margins that had already commenced in the previous financial year.
most competitive market conditions and keep their entire installed capacity intact while waiting for the reactivation of the sector. The restructuring process cost 4 million euro applied to the results of the financial year, and investments of 1.3 million euro. The latter were mostly made in automation processes, the improving of recovery ratios and environmental improvements.
The ensemble of Befesa companies in this business sector treated close to 99,000 tons over the 12 months, thus confirming its position as leader in the Spanish market. In spite of the difficult circumstances, the Trading division commercialized and acted as intermediary for 11,500 tons and positive contacts have been kept up with other countries with a view to maintaining a firm position in these areas in order to enable optimization of its presence when a more favorable trade cycle exists. This activity is developed worldwide and corresponds mainly to metals such as primary and secondary aluminum, aluminum alloys, silicon, copper, mixed metals and steel. The Technology Division, dedicated to the design, construction, assembly and commissioning of turnkey facilities for the aluminum and zinc industry, possesses a large list of references for more than 100 facilities in 40 countries. The division’s main products are: Automated lines for the production of 5-25 kg aluminum ingots. Befesa has fabricated the totality
■
of the primary aluminum facilities over recent years. ■
28
Running out wheels. They are the link between
Annual Report 2003
the furnace and the ingot line which ensure uniform and foam free filling of the ingot molds. They are part of the ingot line but are also designed for lines that already exist. Due to the success of the Befesa Aluminio Bilbao wheel, there shortly will not be any aluminum factory that will not have incorporated it. ■ Truck loader. A continuous automatic truck loading system has been designed as a further stage of the ingot line, for the recently produced piles of ingots. Rotating furnaces. They are very productive, have low energy consumption and are especially suitable for low metallic-content materials. Befesa Aluminio Bilbao is still the leading company in the large
combustion of metal and thus increases the mean value of the resulting slag. A new slag cooling system was patented in 2002, the compactor, which results in a simpler constructive system and a more compact end-product compared with the previous system. ■ Slag treatment facilities. A process has been developed to enrich the slags with a minimum loss of metal. The crushing respects the metallic part and only pulverizes the non-metallic part.
■
capacity segment (25 and 60 tons) thanks to its proven productivity, large metallic performance and ease of operation. Slag coolers. There is a facility, the efficiency of which has been proven worldwide, available for this process. It cools the slags and classifies them according to their metallic content and the
■
customer’s needs. This process is important in order to avoid the emission of smoke as well as the
The main activities in 2003 were: ■ Construction and commissioning of the first industrial prototype of the slag compactor for Befesa Zinc Aser’s plant. The equipment is totally operational and has also served as the first reference
for potential customers. ■ Sale of the first slag compacting installation. Fundición Valenciana de Aluminio was our first
external customer for this new reference. The installation is now operational and supplies the product to the Group itself.
29
Aluminum Waste Recycling
Automation of an ingot conveyor belt system for Imco, in Coldwater, USA. The company is American
■
but has plants in different countries. Imco entrusted Befesa with the modernization of one of its lines with the intention of continuing with the others if it was satisfied. The line has been built and will come into operation early in 2004.
out wheel) from a point of view of foam as well as of the metals employed. Contracts have also been signed to be executed in 2004. Three ingot conveyor belt systems with trailer
■
loader have been sold to Balco, in Korba, India. Two zinc lines have been sold, one for a 25 kg ingot and
■
Sale of running out wheels to Boyne Smelters, Australia; Aluminio Barhein and Imco, Shelbyville,
the other for jumbo-size 1,000 kg ingots to Hindustan Zinc Limited, in Rajasthan, India.
USA.
■
■
Commissioning of the zinc ingot line for Skorpion, in Namibia. This has been the company’s first
Four ingot lines with truck loader systems have been sold to Pechiney, in Port Elisabeth, South Africa. This sale is part of Pechiney’s PAS 2006
opportunity to apply our know-how in the zinc
project, under which the most modern primary
sector. The line is now operating with results that
aluminum plant in the world is going to be constructed. The selection of the different providers has been based mainly on their technological levels.
have never before been seen in the zinc sector. In 2004, research is going to continue with a view to
30
improving the metal pouring system (the running
Salt Slag Recycling
The volume of waste treated by this Business Unit in 2003 was 159,000 tons, 9.8% more than the previous year.
Salt slags are a hazardous toxic waste from the aluminum waste recycling process. The recovery of salt slags is the alternative to dumping and the objective is to separate the metallic aluminum, the salt and the aluminum oxide in order to be able to reuse all the components. This activity, together with that developed by the Aluminum Waste Recycling business unit enables us to close the recycling cycle
Description of the activity
completely and to integrally exploit the wastes with aluminum content. The activity is considered a zero dumping activity.
here. This process, together with the aluminum waste recovery process (slags, scrap metals…) enables the closing of the recycling cycle and the integral exploitation of aluminum-content wastes.
While environmental regulations are becoming ever more demanding in the European Union, industrial facilities capable of definitively solving the problem of waste management are required. The philosophy of the salt slags recycling process carried out by Befesa Escorias Salinas and Befesa Salt Slags fits in
The company possesses the only salt slags recycling plant with in-house technology that currently exists in Spain which, with an installed capacity of more than 110,000 tons a year, can treat all the waste generated in Spain. Likewise, Befesa Salt Slags, with
The salt slags from the production of secondary aluminum (CER 100308) are generated when mixtures of sodium chloride and potassium are used to cover the molten material, prevent oxidation,
a treatment capacity of 70,000 tons a year can treat all the salt slags generated in the United Kingdom. Moreover, it is the only existing plant of its type in
increase the performance and increase the thermal efficiency in rotating furnaces. Depending on the mixture of the raw material and on the type of
the country.
rotating furnace employed, the amount of slat slags produced per ton of secondary aluminum varies
31
Salt Slag Recycling
greatly and can be between 400 and 800 kg, depending on the purity of the raw material and the amount of flux salts required. These salt slags are a hazardous waste and cannot be dumped directly due to their high reactivity with water, to the fact that they emit gases and the danger of the toxic substances lixiviating. Therefore, they have to be treated. The recovery of the salt slags is the alternative to dumping and the objective is to separate the metallic aluminum and the salt from the contaminating agents in order to be able to reuse all the components. The salt slags recovery process also enables the recovery of the aluminum waste crushing powder. The other fraction, consisting of salts and oxides, is processed in the plant’s wet phase. The separation of the aluminum from the flux is done by selective
32
processed in the plant’s wet phase. The waste is inerted here, the gases are collected and are suitably treated and the insoluble solids are separated from the brine. The insoluble solids (Paval, in Spain and Wardal, in the United Kingdom) are washed and, thanks to their high aluminum content can be used in the following applications: Civil works (raw material for cement manufacturing; inert filling in constructions works, pavements, etc.; production of insulating fibers; mortar components). ■
Ceramics industry (substitution for clay and chamotte; refractory and insulating material; crystals; ■
abrasives and polishing pastes).
crushing and screening.
■ Chemical industry (production of hydrate, aluminum and aluminum salts; inert load in fertilizers; epoxy resin mortar; inert load in polymers).
The different metallic fractions that are separated are sent once again to the secondary aluminum foundry. The other fraction, consisting of salts and oxides, is
■ Metallurgical industry (synthetic mixtures for siderurgy; exothermal products, insulating materials, etc. refractory materials).
Annual Report 2003
■
Agriculture (artificial soil, fertilizers).
and washing system was installed at Befesa Salt Slags to adapt the final characteristics of our
The salt content in the brine is crystallized and used again as a flux in the secondary aluminum industry.
products to the needs of the British cement and ceramics markets, which are mainly consumers of
Nonetheless, upon it being a commercial product, it can be used in any normal salt application (tanning, road cleaning, etc…).
the aluminum oxides that are produced.
Positioning and main actions During the last financial year, the volume of treated wastes (salt slags and aluminum waste crushing powder) was 159,000 tons which is a 9.8% increase on the previous year. In addition, slightly more than 24,000 tons of aluminum waste were treated in the plant in the United Kingdom. Likewise, 10,786 tons of aluminum, 57,053 tons of salt and 98,157 tons of oxides were produced. Investments were made in both companies with the objective of optimizing the processes and adapting them to the changes in the physical and chemical characteristics of the raw material received. Thus, at Befesa Escorias Salinas, a new reactor has been commissioned that enables the treatment of materials with a higher reactivity and a new filtering
From a commercial point of view, contacts have been maintained with companies in other European countries to contract salt slags and aluminum crushing powders in order to cover the treatment capacity of the two plants. Some contracts have already been closed for 2004 and the intention is to continue with these contacts so that, in the medium term, they can be used in a business unit expansion process. In the United Kingdom, long-term agreements have been reached to treat salt slags from almost all the producers in the country. Once the required quality was achieved, the contacts maintained with a view to opening a market in the United Kingdom capable of using our Wardal product (aluminum oxide), as is the case in Spain since several years ago, have begun to bear fruit. It is foreseen that in 2004 the total oxide produced will be used in industrial applications.
33
Zinc and Desulfurization Waste Recycling
Since 1987, the year in which Befesa Zinc Aser was established, almost 1,500,000 tons of steel powder have been recycled.
The Befesa Group’s Zinc and Desulfurization waste recycling activity is carried out by Befesa Zinc Aser, Befesa Zinc Sondika, Befesa Zinc Amorebieta and Befesa Desulfuración.
Befesa Zinc Aser Positioning and main activities
2003 commenced with low US$ price listings for Zinc, due to the significant stocks that existed
During the 2003 financial year, Befesa Zinc Aser’s facilities received 92,850 dry tons of powders from electric arc furnace steelworks and foundries,
which were in excess of 700,000 tons. During the year, the Zinc price listing in dollars increased although the increase was not reflected in the pricing in euro due to the devaluation of the
and 2,986 dry tons of other wastes with a high zinc content, which represented – for the first time ever since the company commenced activities back in July 1987 – 100% of the home market
dollar against the euro.
raw materials supply.
However, given the strategy of our companies as
At the end of 2003, we must mention the significance of the effective consolidation of the long-term supply framework contracts signed with
regards the acquisition of raw material and especially regarding the service we offer waste producers, the impacts on the Profit and Loss Account were minimal and very satisfactory results were achieved.
Oñeder and Aceralia for Befesa Zinc Aser to treat the powders collected in the smoke filters installed in the main Basque steelworks. Therefore, of the total tonnage of common wastes captured on the home market, 62,618 tons were received under the commitments undertaken with Oñeder and
34
Annual Report 2003
Aceralia, including 34,698 tons from different plants the latter possesses in the Basque Country and 15,764 tons from its steelworks in Bayona (France). Furthermore, a new agreement was reached with Aceralia Corporación Siderúrgica for Befesa Zinc Aser to treat the steel powders generated at its Zaragoza production center, and 3,369 tons were received for treatment between August and December 2003. During the course of this time period, 101,277 dry tons of powders, plus 2,985 dry tons of concentrated zinc wastes were treated, from which a total of 42,609 dry tons of Treated Waelz Oxide (D-L.W.O.: Double-Leached Waelz Oxide), with an average zinc content of 64.75%, which resulted in a processing and production level that had never before been reached throughout the company’s history.
approximately 1,455,000 wet tons of powders that contained 323,550 tons of zinc, as well as slightly more than 15,500 wet tons of other zincrich wastes. These were used to produce almost 515,000 dry tons of Waelz oxide, with an average of 58.75% zinc, which is equal to some 302,500 tons of recovered zinc metal. The marketing and sale to end customers of the Befesa Zinc Aser manufactured product was done integrally by the company Recycling Logistics, S.A. (Befesa Zinc Comercial), which found a market for a total of 41,914 tons of Treated Waelz Oxide over this period. Approximately 43% of the units sold were for the home market while exports were distributed among the following countries: France (30%), Belgium (24%) and Holland (3%).
Taking the aforementioned magnitudes into account, Befesa Zinc Aser has already recycled,
Thanks to the radical change made in 2001 to Befesa Zinc Aser’s policy and commercial strategy as regards the capturing of raw materials, focused mainly on the substituting of powders from foreign steelworks for those from national ones, there has been a progressive recovery over the
over its sixteen and a half year existence,
past two years of the average unitary margin
35
Zinc and Desulfurization Waste Recycling
generated by the waste treatment and elimination
31st December 2003, showed a sales figure of 19
service, which on this occasion increased by 3% (as against the 8.6% increase registered in 2002), due mainly to the noteworthy savings made in the
million euro, almost 2% up on the volume achieved in the 2002 financial year.
unitary costs of transportation and logistics.
Befesa Zinc Amorebieta The increase of more than 6% in the zinc price listing on the international market, expressed in US$/ton, together with the cutback in unitary
Positioning and main activities
sales costs, by approximately 2% compared to the previous year, were not sufficient to compensate for the strong depreciation (16%) suffered by the average rate of exchange of the dollar against the euro, which caused a drop in the net unitary sales price of Treated Waelz Oxide which, when the results of insurance coverage are included, was approximately 13%.
In the 2003 financial year, Befesa Zinc Amorebieta’s facility recycled 11,362 tons of different zinc wastes, a quantity similar to that of the previous year. The 2,311 tons of gross zinc ash and the 2,280 tons of zinc scrap are noteworthy. A stable processing level was maintained in the case of the former and the latter increased by 12% compared with the year 2002.
All these circumstances have had their corresponding effect on the consolidated Profit
The product manufacturing volume also rose 12% and reached 9,593 tons with the obtaining of 3,750 tons of gross zinc ingot (8% more than in 2002) and 1,257 tons of electrolytic zinc ingot (9%
and Loss Account of the companies in the Zinc Oxide division of the Befesa Group which, at the
36
Annual Report 2003
more than in 2002) being especially noteworthy. On the other hand, the production of fine zinc ash increased 18% and reached 2,639 tons.
that the average annual listing of zinc on the London Metal Exchange (LME) did not exceed 731.58 euro/ton, the increase in the average price
During the course of the first quarter of 2003, the production of zinc oxide in a rotating furnace
of zinc over the final six months of the year, to 756.21 euro/ton, had a greater repercussion, in positive terms, on the sales margins than on the
commenced, and in the end 730 tons of diverse quality product were manufactured. Furthermore, 1,400 tons of byproducts were generated and
purchases of raw material.
have been stored at the same plant awaiting treatment in 2004.
Befesa Zinc Sondika Positioning and main activities
The first half of 2003 was once again affected by the scarcity of raw material in the market due to the low price of zinc. This fact caused a
The Sondika facility recycled 6,419 tons of diverse zinc wastes during the 2003 financial year. Most
contraction in the offer with the resulting increase
came from the galvanization industry and the
in the price of waste. This tendency varied in the second half of the year and, in spite of the fact
amount represents an 11% increase on the 5,766 tons processed the previous year.
37
Zinc and Desulfurization Waste Recycling
been supplied, among which we would mention Firestone-Bridgestone Hispania, with 1,425 tons being shipped (4% more than in the previous year), and Colorificio Cerámico Bonet, who received 1,916 tons (also a 4% increase on 2002). Likewise, other customers with a great future potential such as Torrecid, who received 580 tons (a 53% increase), were consolidated.
Befesa Desulfuración Positioning and main activities The production of zinc oxide rose to 7,070 tons, a 20% increase on the 5,882 tons for the previous year. This increase was a consequence of a series of improvements made in the process, such as the changes made to house larger capacity crucibles in the furnaces, with the corresponding increases in productivity, along with the use of raw materials with a richer zinc-content, less impurities and which shorten the cleaning time required for the same. Product sales increased 5% and reached 6,912 tons, surpassing the 6,572 tons for the previous year. The company’s traditional customers have
Befesa Desulfuración’s plant in Barakaldo (Biscay) which was initially conceived as a sulfuric acid industrial production plant using pyrite, is nowadays just one more example of Befesa’s vocation for the Environment. Since 1995, and subsequent to the conversion of its undertaking, Befesa Desulfuración recycles the waste sulfur retained by the filters in oil refineries. Befesa Desulfuración is a recycling plant capable of solving one of the environmental problems of oil companies, applying the cleanest and safest process for the exploitation of waste sulfur. At the same time, the products obtained, sulfuric acid and oleum (a compound with a high SO3 concentration level), are of the highest quality and are very well accepted by our customers from the chemical, paper, pharmaceutical, foods and fertilizer, and water treatment industries. In 2003, some 100,413 tons of sulfur obtained from desulfurization waste used at our facility to obtain a production of 308,097 tons of acid equivalent, with an in series generation of 76,994
38
Annual Report 2003
Mw/h of electric energy which, once selfconsumption was deducted, resulted in an excess of 47,680 Mw/h being sold to the network company. The investments made centered mainly on improving the catalytic conversion, especially in the pre-converter installed in 1999 and in increasing the efficiency of the IIA exchanger prior to intermediate absorption. This resulted in an
improvement in the production capacity and a reduction in emissions to the atmosphere and optimization of the thermal recovery of the process gases to produce the steam required for the fusion of sulfur and feeding the turbo-generator unit.
39
Industrial Waste Management
During the year, Befesa Gestión de Residuales Industriales managed 480,000 tons of waste, a 17.1% increase on the previous year.
Description of the activity The industrial wastes management unit centers its activity on providing an integral service to industrial waste producers in accordance with a treatment hierarchy the priority of which is the minimization, reuse, recycling, valorization and elimination of wastes, as established by national and European environmental legislation. Befesa is currently one of the leading companies in Spain in the integral industrial waste management sector.
of transfer centers, as well as final management facilities dedicated to the elimination, inerting and physicochemical treatment of wastes. In the year 2003, one of Befesa’s most ambitious development plans ever was culminated: the commencement of activities by the new company called Befesa Gestión de Residuos Industriales, S.L., under which all the companies that were previously in the Industrial Waste Management business Unit (CMA, Cartera Ambiental, SPM, Comercial Sear and Trademed) were merged.
In line with the above, in 2003, the management of non-hazardous wastes was strengthened in order to offer customers an integral waste management service. In order to offer our customers this reliable and integral service the company has a highly qualified and experienced human team and the most advanced and complete facilities in Spain, among which we would mention its widespread network
40
Subsequent to the merger, Befesa Gestión de Residuos industriales is organized as follows:
Annual Report 2003
Company Befesa Gestión de Residuos Industriales Nerva Center
Location Madrid Nerva (Huelva)
Service/activity Head Office and general services Industrial wastes elimination and industrial wastes transfer center
Cartagena (Murcia)
Industrial wastes elimination and inerting facility and transfer center
Ajalvir Center
Ajalvir (Madrid)
La Puebla de Alfindén Center
La Puebla de Alfindén (Zaragoza)
Industrial wastes elimination and inerting facility and transfer center Industrial wastes transfer center
Paterna Center
Paterna (Valencia)
Industrial wastes transfer center
Alovera Center
Alovera (Guadalajara)
Industrial wastes transfer center
Branch Office in Portugal Branch Office in Catalonia Branch Office in Seville
Lisbon (Portugal) Sant Cugat del Vallés (Barcelona) Seville
Cartagena Center
Alianza Befesa Egmasa, S.L.
Palos de la Frontera (Huelva)
Rimacor, S.A.
Lucena (Cordoba)
Trade office Trade office Trade, Business Development and Industrial Management Office Industrial wastes inerting and recovery facility Industrial wastes transfer center
Rimacor, S.A.
Villa del Río (Cordoba)
Industrial wastes transfer center
41
Industrial Waste Management
Positioning and main activities Significant investments were made in 2003, among which the following are noteworthy: a) The expansion of storage areas for office and changing room wastes in the centers of Ajalvir (Madrid) and La Puebla de Alfindén (Aragon), as well as the remodeling and improvement of the laboratory
The objective of the merger was to unify the commercial criteria of each one of the merged companies, personalize the management services for current and future customers, improve the service and consolidate the image of the Befesa trade-name as that of the leading company in the environmental services providing sector. Our services are offered to private companies, among which multi-national and small and medium-sized companies are to be found, and to Public Administrations, with whom Befesa maintains good relationships.
and control room instrumentation at the latter. A drum sample taking and emptying warehouse was built at the Nerva center, as was a zone for the washing of truck wheels and undercarriages. Two new maturing warehouses were installed in the Cartagena center. They are equipped with gas capturing systems to improve the waste stabilizing plant, and the water-proofing of the second last phase of Vaso 2 of the safety dump was carried out. Installation works also commenced on the Evapor-condensation Unit to improve the treatment of liquid wastes. b) Improvements to and expansion of the different centers through the purchase of volume reduction
Evolution of Managed Tons
500,000 395,960
410,290
2001
2002
480,299
400,000 300,000
217,101
200,000 100,000 0 2000
42
2003
Annual Report 2003
equipment (balers and drum crusher) and the conditioning of wastes (grinders). Likewise, new
Befesa aspires to being present and active in Portugal, where it is now the leading industrial waste
state-of-the-art technology laboratory analyzing equipment was purchased, which improve and make
import company. To this end the company has struck up alliances with Portuguese companies to establish
waste characterization easier.
itself there and provide an in-situ service through the commissioning of an integrated industrial waste valorization complex.
c) Works have been carried out in the facilities to improve worker safety and hygiene. Alarm and public address and fire-fighting systems have been installed, and lands asphalted and electrical systems changed. During the financial year, Befesa Gestión de Residuos Industriales, through the company Albega (Alianza Befesa-Egmasa), S.L. in which it has a 50% shareholding, took control of Residuos Industriales de la Madera de Córdoba. This will enable Befesa to avail of two industrial waste transfer centers in Andalusia and will bring waste management closer to the waste generator. Furthermore, we are in the process of strengthening our market in the northern sector, in Cantabria and the Basque Country.
The management of non-hazardous wastes will be an activity to be strengthened in the future. This new activity will be aimed at responding to the current demands of our customers for the provision of an integral generated wastes management service, hazardous as well as non-hazardous. In this aspect, two Non-Hazardous Waste Classification Plants will be opened in 2004, in Madrid and Seville, respectively.
43
Industrial and Hydrocarbon Cleaning
Befesa Tratamientos y Limpiezas Industriales provides its services for a portfolio that includes more than 2,000 costumers.
The following must be included among the most significant activities performed in the Industrial and Hydrocarbon Cleaning sector:
5. Opening of local offices in Zaragoza, Valencia, Madrid and Cadiz. 6. Sale of Befesa’s 50% shareholding in Tracemar.
1. The merging of the different companies in the Berako Group (Berako, S.A. Hidro Clean, S.A. Hidro Limp, S.A. and Berako Equipos Especiales, S.A.) in Berako Limpiezas Industriales, S.A. Subsequently, this company merged with Sistemas AguaPresión, S.L. and Befesa
A new company called Befesa Tratamientos y Limpiezas Industriales, S.L. has resulted from this merger process, which consolidates Befesa’s leadership in the industrial cleaning market,
Tratamientos Especiales, S.L., with the result being the establishment of Befesa Tratamientos y Limpiezas Industriales, S.L. 2. Acquisition of the outstanding 30% of Berako Limpiezas Industriales, S.A. from the minority
In another type of installations, the Industrial and
shareholders. 3. Sale of Ecomat, S.A.
Hydrocarbon Cleaning business unit also recycles most of the plastic sheeting used in greenhouses through the company Befesa Plásticos, and Befesa Gestión de PCB offers an efficient solution for PCB
4. Acquisition of Sistemas AguaPresión, S.L. a company dedicated to industrial cleaning, to waste treatment with mobile press filters and to
contaminated equipment. Furthermore, a new activity was incorporated, Befesa Técnicas del Suelo, a company dedicated to the remediation of
specialized hydro-demolition works.
44
refineries, waste treatment with mobile units optimizing the use of its human and material resources.
contaminated lands.
Annual Report 2003
Befesa Tratamientos y Limpiezas Industriales Befesa Tratamientos y Limpiezas Industriales is specialized in providing services for industry and public administrations. It provides a highly specialized service in the different areas it operates in. The basis
■ The implementation of an Integrated Production Control System, the objectives of which are the
strengthening of the production follow-up systems; normalize and strengthen the control and management systems, and the simple obtaining of true and homogeneous information on the economic-financial as well as production and
of its activities is cleaning services with mobile suction-drive equipment. These are capable of operating at high pressure and flow levels and the company has a team highly specialized in the use and design of equipment and tools required for carrying out these activities.
commercial situation.
As of from January this year, the new company began to provide its services under a new commercial and production structure. Basically, two steps were taken in this direction:
following activities:
Positioning and main activities During the course of the 2003 financial year, Befesa Tratamientos y Limpiezas Industriales carried out the
■
Hydrodynamic Cleaning: The traditional
The design of a Commercial Plan that coordinates
mechanical cleaning activity continued at all the branch offices throughout Spain with the use of suction-drive equipment. Moreover, significant works were carried out at all the refineries throughout the
and marks out the objectives for the five main branches the Peninsula has been split into: Cadiz (for
country with the assistance given to Repsol Puertollano in the draining, transfer and cleaning of
Andalusia and Extremadura); Asturias (for Asturias, Galicia and Castilla-Leon); Catalonia (for Catalonia, Valencia and Murcia); Madrid (for Madrid and Castilla
the refinery tanks which had been rendered useless by the accident at the refinery in August, and which ran the risk of causing another outbreak of fire,
La-Mancha) and the Basque Country (for Navarra, the Basque Country, Aragon, Cantabria and La Rioja).
being especially noteworthy.
■
45
Industrial and Hidrocarbon Cleaning
Chemical Cleaning. During the course of the development of these works the final chemical
■
washing works at the Bahía de Bizkaia Combined Cycle Power Plant were completed. This work was carried out during the last quarter of 2002 and completed early in 2003. The cleaning and decontamination of the Alkylation Plant in
extraction of catalysts in the refineries sector, in inert atmosphere as well as open air atmosphere. Dry Suction: Works in this emerging sector continued and the construction of an extraction ■
and storage system to enable the cleaning of a large cement silo at Holcim is noteworthy. Some
Puertollano Refinery was also carried out. This type of work is carried out for the Repsol Group and also for the Cepsa Group. Befesa is currently one of the
4,000 tons of product were suctioned and recovered and then recycled to the process.
companies of preference when it comes to the execution of large cleaning works in Spain. Proof of this is the fact that the company has been homologated by Siemens Germany to execute Chemical Cleaning works at Combined Cycle Power Plants.
Oily and biological sludge treatment plant: The sludge treatment plant is located within the boundaries of Cepsa’s Gibraltar Refinery, in San Roque (Cadiz). The installation consists of two plants that operate independently:
Catalysts: The third LSS for the execution of catalyst extraction works was designed, built and came into operation in 2003. The three are currently operating at full load. Works continued on the
■
■
– Centrifugation plant which is in operation since the year 2000 and which consists of two centrifuge pumps, the first of which is three-phase vertical and the second a two/three phase horizontal, plus pumps and other auxiliary equipment. The oily and biological sludge generated in the Refinery’s Wastewater Plant are treated in this plant. The total processed amount in 2003 was 70,457 m3. – Press filters. There are two press filters, the first of which was installed in 1995, while the second came into operation towards the end of 2002. They operated at full capacity throughout 2003. The interface sludge is currently treated in these press filters that operate independently, those generated daily as well as the historic passive stored by the Refinery in tanks. These interfaces are sludge that consist of a mixture of water, hydrocarbon and solid matter with one of its components being tense-active which stabilizes the emulsion and therefore cannot be separated by
46
Annual Report 2003
settlement or centrifugation. The total amount treated in 2003 in the two filters was 68,473 m3. ■
Automated Tank Cleaning SALT / SALT-Fuel:
The Automated Tank Cleaning System, SALT, is an innovative, advanced and proven system for the cleaning of crude oil tanks (Befesa has cleaned more than 30 tanks with this method). The system’s functioning principle consists of dissolving the tank-bottom sludge through mechanical-thermal energy transmitted by the impact of preheated crude oil through injectors installed on the tank top. SALT is the technological alternative to the traditional tank cleaning process and replaces the manual system. In 2003, Befesa was awarded the contract for the only two large tanks that were cleaned with the
automated systems, at the refineries of BP Oil Castellon and Repsol Cartagena. Moreover, the SALT-Fuel unit came into operation, destined for cleaning medium diameter tanks. Another two tanks were satisfactorily cleaned at the refineries of Cepsa Gibraltar and Asesa Tarragona with this unit. ■
Cleaning of Tanks and large containers: This
section includes the cleaning of medium diameter tanks carried out manually at the refineries of Cepsa Tenerife and Cepsa Gibraltar, as well as those done in fuel storage depots: CLH, I.A. Rota and Rota Air-naval Base. Cleaning, degassing, repairs and leak-proof testing of small containers.
■
Waste treatment with Mobile Centrifugation Plants and Mobile Press Filters.
■
47
Industrial and Hidrocarbon Cleaning
Befesa, together with Sodi, a subsidiary of Veolia (previously Vivendi Environmental), has been awarded the contract by the Total Fina-Elf Group to clean its storage tanks in Europe. The joint venture ET2C, European Tank Cleaning Company, has been established to this end. It began operations on 1st January 2004. The new company will work all over Europe with the aim of becoming leaders in Europe in automated tank cleaning operations. The duration of the contract is five years. The stored volume of the TFE Group consists of 150 crude oil tanks, 250 fuel-oil tanks and more than 1,600 finished product storage tanks. ■ Hydro-demolition.
– International activities: The most significant activities were: ■
Hydrodynamic Cleaning.
Chemical Cleaning SALT: consolidation of the activity in Italy through the cleaning of two tanks, one for AGIP at its Taranto refinery and the other for Esso Italia at its ■ ■
At present, Befesa Tratamientos y Limpiezas Industriales, S.L. is considered to be one of the companies with the highest technical level in the sector. As regards on-site waste treatment with mobile plants and chemical cleaning activities, Befesa is one of the leading companies in Spain, with a rising tendency in relation to our competitors. In the catalyst sector, we are the most important company in Spain and possess a customer portfolio that could be close to 80% of the total in Spain.
Augusta refinery.
Befesa Plásticos Positioning and main activities Befesa Plásticos is specialized in the manufacturing of special low density polyethylene screenings through the recycling of film used as greenhouse covering. Its production capacity, the constant quality of its screenings and the technical assistance provided to its customers have put the company in the lead as a provider of recycled screenings in Spain and it is also one of the leading companies in Europe.
48
Annual Report 2003
In July, Befesa Plásticos established a Protocol of Intentions with Egmasa (Empresa de Gestión
Befesa Gestión de PCB
Medioambiental de Andalucía) to study joint strategies and operations in the used plastics recycling sector. By means of this agreement, the
Positioning and main activities
possibilities of using the material Egmasa produces at its “Los Palacios” factory in Seville are being studied. Moreover, a study has been carried out on the PET (polyethylene tereftalate) bottles recycling business. These are mainly used for water, refreshments and carbonic drinks.
Befesa Offers, through Befesa Gestión de PCB, efficient solutions to the collection, transportation and elimination of transformers, condensers and PCB contaminated material and recovers, thanks to the use of the most advanced technology available on the market, all the reusable material, and definitively eliminates the contaminated products. The leading position of this company was confirmed in 2003, a year in which it treated 2,700 tons of PCB contaminated apparatus and materials. Our relationships with our main customers, Iberdrola Distribución Eléctrica and Endesa, were consolidated and the contracts signed with them were efficiently executed. Likewise, equipment from other companies and institutions from a very varied productive sector such as all the autonomous regions, RENFE, Ford, Torras, Telefónica, among others, were treated. In this sense, the importation of PCB contaminated equipment from Argentina was kept up. This activity is being carried out in collaboration with Befesa Argentina since the year 2000.
In 2003, Befesa Plásticos recycled 13,727 tons of used film and obtained a production of 11,112 tons. Furthermore, it sold 10,752 tons, most of
In 2003, the company was awarded a new authorization as a Hazardous Waste Manager
which were for exportation. The growth Befesa Plásticos has been experiencing over the past 10
which unifies the previous certificates and expands, the treatment and storage limit and the typology of
years is reflected in the fact that its sales in 1993 of 1,992 tons have risen to 10,752 tons in 2003.
the treatable wastes. Furthermore, Befesa Gestión de PCB has been authorized to carry out the collection and transportation of hazardous wastes, thus
49
Industrial and Hidrocarbon Cleaning
eliminating the intermediation of external agents and enabling the company to offer its customers an integral service. In this respect, a platform for the
Befesa Técnicas del Suelo Positioning and main activities
transportation of oil tanks was acquired. Moreover, a new tank for storing PCB contaminated oil was put into operation and this will enable the separation of the oil in function of the PCB concentration, in order to provide a better waste treatment service in each case.
In addition, the Industrial and Hydrocarbon Cleaning unit incorporated a new activity through the creation of the company Befesa Técnicas del Suelo, which is dedicated to the remediation of contaminated lands. The contaminated lands and underground water management activity is still a growing activity and is one which, when compared to the other environmental sectors, is behind the times. This delay can be seen at technological and operational, as well as legislative level. The commercial perspectives for 2003 and forecasts for 2004 indicate that Befesa Técnicas del Suelo will have to make a significant effort as regards the purchase of treatment equipment and its start-up (including personnel training), in order to commence its consolidation in the execution of on-site decontamination works.
50
Environmental Engineering
Befesa operates in the construction of hydraulic infrastructures and maintains its leading position in desalination and industrial water treatment.
Befesa Group’s environmental engineering activities are carried out through two lines of business: Befesa Construcción y Tecnología Ambiental and Befesa Fluidos.
Befesa Construcción y Tecnología Ambiental Positioning and main activities Befesa Construcción y Tecnología Ambiental focuses its economic activity on the design,
and desalination activities, and the modernization of irrigation systems with a two-fold aim, water saving and the application of new technologies, being noteworthy, Befesa Construcción y Tecnología Medioambiental continued to grow, with very high market penetration indexes, proving its competitiveness through the application of integral and efficient technical solutions. The tendency indicated in previous years in the water market continued and the number of calls for tenders increased, from the Ministry of the Environment, our main customer, as well as from its
infrastructures related with the integral water cycle and the treatment and management of solid urban waste (SUW).
State-owned Hydrographical River Basin Companies, the Ministry of Agriculture, Fisheries and Foodstuffs, through the State-owned Agricultural Infrastructure Companies which are
In an ever more dynamic market, similar to that of the previous year especially as regards its classic
responsible for the investments being made in the modernization of irrigation systems, and also from the rest of the public sector. The Autonomous
activities such as hydraulic power plants, hydroelectric power plants and water treatment
Governments and local authorities responsible for urban sewage treatment works are making large
construction and operation of hydraulic
51
Environmental Engineering
The following are noteworthy among the contracted works: In relation to irrigation system modernization and consolidation: Modernization, automation and supervision by remote control of the hydraulic infrastructure in ■
Sector-XII of the Lower Guadalquivir, with a total surface area of 15,000 ha, for the Irrigation Subscriber Community. investments in order to have them completed by the year 2005, in accordance with regulation 91/271. The National Hydrological Plan, which includes the transfer of the river Ebro to Catalonia and the Eastern Mediterranean area, and the National Irrigation Plan, both of which are in progress, have reactivated the company’s traditional hydraulic market.
■ The HV and LV electrification of electromechanical equipment at wells, reservoirs and pumping stations for the General Community of Users of Upper Vinalopó, Alicante, with a surface area of 12,000 ha., for Seiasa de la Meseta Sur. ■ Section B of the Algerri-Balaguer canal, in Lérida, 8,314 m long of 4.00 x 1.90 m rectangular section, design flow 4.90 m3/s, for Riegos de Catalunya S.A.
(Regsa) Transformation and improvement of the irrigation systems for the Totana Irrigation Subscriber Community, in Murcia, from gravity irrigation to ■
pressurized distribution and drip irrigation on each plot, and automation of the system, promoted by Seiasa del Sur y Este, over a 5,792 ha area. In relation to water treatment: Lebrija STW, Seville, which treats the sewage from a population of 35,323, with an average flow ■
of 7,948 m3/day, designed with a conventional activated sludge biological treatment system, for Gestión de Infraestructuras de Andalucía S.A. ■ Villaviciosa de Córdoba Collectors and STW, which treats the sewage from a population of 6,010 with a 1,380 m3/day flow, and that of
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Annual Report 2003
Casares, in Malaga, for a population of 3,144 with a 732 m3/day flow, both with a prolonged aeration process in combination with bio-cylinders, secondary settlement and drying beds, for the Regional Government of Andalusia.
gravitational pipeline to the 580,000 m3 regulating reservoir. ■ The drive (15,500 kW), hydroelectric power stations (that of Tíjola 6,000 kVA and that of Los
Manueles, 3,150 kV) and the remote control of the Negratín-Almanzora transfer system (50 Hm3/year),
Abroad, work continued on the Loja (Ecuador) Potable Water Master Plan, supply capacity of 500
in Granada/Almeria, for Aguas de la Cuenca del
l/s, (off-take works, raised pipeline, distribution and regulating reservoirs, STW and PWW). The El Carigán Potable Waterworks Plant was inaugurated in 2003.
Transformation of the Z.R. de Villarreal (Castellon) traditional irrigation system to a localized one over
Among the main works performed we would mention the following: Section I, Cortes Drive (Valencia) of the JúcarVinalopo (80 Hm3/year) transfer pipeline, for Aguas del Júcar. The work consisted of the 63,900 kW pumping station for a 10 m3/s flow at 523 m, the
■
drive pipeline (which has over 1,400 m, 2 tunnels, 2 raise-borings and a surge shaft) and the
Sur. ■
1,250 Ha, consisting of: regulating reservoir, pumping station, automatic subscriber plant, pipeline networks, remote control system and control building for Seiasa de la Meseta del Sur. ■ Completion of the enlargement of the main pumping station in the Irrigatable Area of the Northeast Coast of Cadiz, with a 9.2 m3/s capacity and 10 MVA, for the Hydrographical Confederation of the Guadalquivir.
Potable Water Supply for the Districts of Ribera del Xúquer (Valencia), for the Sewage Treatment Body of the Regional Government of Valencia: ■
53
Environmental Engineering
over, with salinity levels between 6,500 mg/l and 850 mg/l, with a 165,000 m3/day capacity, to increase the supply for Malaga (population 600,000). ■ Completion of Activity XIII-100% Cleaning and Treatment Plan for the Regional Government of
Madrid, consisting of the construction of 5 STW and their corresponding collectors, for a total population of 33,000, for Canal de Isabel II.
consisting of the gauging and equipment for 6 bores with submergible 315 kW units, and pipes to incorporate 1,000 l/s at the head reservoirs that supply a population of 358,000. ■ Reverse osmosis seawater desalination plant with a flow of 65,000 m3/day of product water, for urban supply for the 330,000 inhabitants in the towns in the Campo de Cartagena region, in Murcia, for the Ministry of the Environment. The seawater capturing system was completed in 2003 by means of directed horizontal perforations. ■
El Atabal desalination plant for water from the
Guadalteba-Guadalhorce, Viñuela, El Limonero reservoirs and from the aquifer it is constructed
■ Assemblage of spillways, collectors and La Cabezas STW, Seville, to treat sewage from a population of 16,400, designed for an average flow of 3,000 m3/day, with low load prolonged aeration
biological treatment, for Giasa. ■ Completion of the operation subsequent to the construction of Rincón de la Victoria STW, in Malaga, designed for a population of 61,580, with ring filter and ultraviolet tertiary treatment, which enables the effluent, 14,780 m3/day, to be used for irrigation purposes, for the Hydrographical Confederation of the South. ■ Operation, preservation and maintenance services continue to be provided for the STWs in the Eastern Sector of Barcelona. Overall capacity is 24,300 m3/day, for Agencia Catalana del Agua, and Maintenance and Operation of the Automatic Hydrological Information System (SAIH) of the Guadalquivir Hydrological River Basin, 5 control centers and 144 control points spread over its 64,000 km2, for the same Confederation. On the one hand, Befesa took an 18% participation in 2003 in the establishing of the company Agua y Gestión de Servicios Ambientales, S.A., created jointly with the Ayesa Group, Codesa and Itsmo94, companies with vast experience in the water sector and in the providing of public services. The company is solidly backed financially upon the Monte de Piedad y Caja de Ahorros de Sevilla y
54
Annual Report 2003
Huelva also having a shareholding. Over this period, Agua y Gestión purchased, on the one hand,
(Almeria), capacity for 140,000 inhabitants. The pig slurry treatment activity also continued through the
Befesa’s shareholdings in Empresa Mixta de Servicios Municipales de El Ejido (Elsur), in Almeria, and in Aguas de Baena, in Cordoba, and on the
operation of Vilches (Jaen) Treatment Plant.
other, Aguas de la Janda and Aguas de Herrera from Endesa Diversificación. In this way, Agua y Gestión commenced its activity in the integral
Befesa Fluidos
water cycle managing the supply for 150,000 inhabitants in Andalusia.
Positioning and main activities Within the Environmental Engineering sector, Befesa-Felguera Fluidos is a company specialized in
As regards the wastes activity in 2003, work continued on the construction of the Guadalajara
industrial water treatment, input as well as process and waste waters, and it complements its activity
Urban Waste Treatment Center, with a capacity for 200,000 inhabitants, 80,000 tons/year, for the Castilla La Mancha Regional Governments, and on the operation of the Urban Waste selection and
with others such as powder capturing, the handling
composting plant in Utrera, Seville, for 100,000 inhabitants, for Mancomunidad de Municipios del Bajo Guadalquivir, and on the Dump belonging to Consorcio del Poniente Almeriense, in El Ejido
of fly-ash and slag in Thermal Power Plants, etc. In 2003, it executed projects and carried out engineering studies and new contracts were also signed, all of which consolidated our presence even more in Spain as well as abroad.
55
Environmental Engineering
The following are noteworthy: ■ The construction of the Water Treatment Plant for the Barranco de Tirajana Combined Cycle Power Plants Endesa (Unelco) has on the Canary Islands.
The construction of the Effluent Treatment Plant for Hidroeléctrica del Cantábrico at its Aboño Thermal Power Station (Asturias). ■
The construction of tne Lixiviates Treatment Plant for the dump in Malaga – Limasa III. ■
and the Sludge Treatment Plant at the LD-III Steelworks was enlarged. ■
Research studies were done with our pilot unit in
order to characterize spills and provide the most suitable installation solutions in each case at the factories of Destiller, Ecoimsa, etc. Different installations were built and commissioned at home and abroad throughout the year, with the ■
Water Treatment Plant and Evaporation Unit at El Sauz Combined Cycle Thermal Power Plant in Mexico, being especially noteworthy.
■ The construction of the atmospheric Evaporation Plant for Trademed’s industrial dump, in Cartagena.
■ Lixiviates Treatment Plant at Pinto SUW dump, Madrid Autonomous Region.
In the metallurgical sector, with Aceralia being the potential customer, the Wastewater Treatment Plant at the Ammonium Sulfate Factory was constructed,
56
Biological Sludge Treatment Plant for CepsaInterquisa, in Algeciras (Cadiz). ■
Annual Report 2003
Settlement Reservoir and Peripherals for Aguas de Escarpadora Colada Continua, Aceralia, in Aviles.
■
Sulfuric Acid Storage and Dosing Facility and P.S.A. for the new tin sheet and zinc-plating lines in Aceralia’s factory, in Aviles.
■
Among the contracts that were signed, we would mention that for the Lixiviates Treatment Plant at the Talarrubias SUW Dump, for the Regional Government of Extremadura, and the plant for similar treatment in Ecoparc 3, in Barcelona. In the siderurgy sector: ■
New cok gas compression station which will
feed the new cogeneration units Hidroeléctrica del Cantábrico will install in Aceralia’s factory, in Aviles. New enlargement of the LD-III Steelworks cooling systems for the different processes, such as: Continuous Running Out Machine and Steel Degassing in Aceralia’s installations, in Aviles.
■
57
Latin America
Befesa is present in Argentina, Chile, Mexico, Peru, Brazil and more recently in Uruguay where it offers waste management and industrial cleaning services.
During the year 2003, the development of Befesa’s activity in Latin America was marked by the recovery that has now been detected in Argentina, which enabled the closure of the financial year with positive results and the intensification of commercial activity in the other countries in which Befesa maintains a stable presence, which have resulted in the inauguration in Peru of the first hazardous industrial wastes treatment and elimination center, or the signing of a contract in Chile to manage all the industrial waste for Altonorte Foundry, which belongs to the Noranda mining company.
Befesa Chile Subsequent to the commencement last year of Befesa’s commercial activity in Chile, 2003 was a year in which its fruits began to be gathered through the
58
hazardous and non-hazardous industrial waste management projects.
Befesa México In 2003, Befesa México continued with its implementation plan in the country, intensifying the commercial activity in the different established business sectors such as industrial cleaning, contaminated lands remediation and hazardous and non-hazardous industrial waste management.
Befesa Perú Befesa Perú currently possesses a 65,000 ton capacity safety dump, laboratory, weighbridge and other facilities, as well as highly qualified personnel. In Peru, Befesa provides industry and society with an ideal environmental infrastructure for the
signing of a 5-year management contract for all the waste generated at Altonorte foundry, a company that belongs to the Noranda mining company.
management of their industrial and hazardous wastes.
Likewise, collaboration agreements were signed with different Chilean companies to jointly undertake
The year 2003 saw intense diffusion activities by the company among the country’s main industrial
Annual Report 2003
companies as well as among the different competent public bodies. Numerous guided tours of the facilities
with managers and the forthcoming publication of the Regulations established by the General Act on
were organized for representatives from different companies and institutions: the General Department of Environmental Health, Chilca Local Authorities,
Solid Wastes.
the Agricultural University and Dutch Chamber of Commerce, among others.
In 2003, MTC Engeharia changed its name to Befesa Brasil, and thus became Befesa’s tool for the
Befesa is currently the only company in the country with infrastructure that complies with the national and international legislation on the final elimination
development of the Environmental activity in the country.
of hazardous wastes and it actively contributes to the normalization and development of the sector..
During the course of the year, a contract was signed with a local company to develop and implement a hazardous and non-hazardous industrial wastes treatment and elimination facility. It is foreseen that industrial cleaning and contaminated lands treatment activities will commence for the Brazilian oil company Petrobas, in 2004.
Once all the corresponding legal authorizations had been obtained, the first wastes were received in June 2003 with which activities commenced. Our customers include Luz del Sur, Edelnor, Pluspetrol, Edegel, Digesa.
Befesa Brasil
Befesa Uruguay A substantial increase is expected in the activity in 2004 as a result of the diffusion activities, improvement of the industrial activity, relationships
Befesa Uruguay was established to develop the industrial waste management activity in the country.
Befesa Argentina The most significant works carried out were as follows: Cleaning of H1201 log pond at La Plata refinery for Repsol YPF: last July, the extraction and centrifugation of the log pond sludge was carried out, and the solid wastes obtained were used for ■
safety land refill. Plot Remediation at the ex-Pfizer plant. Some 3,200 tons of contaminated soil from the ex-Pfizer plant, in the locality of Moreno (province of Buenos Aires) were transported and Finally Eliminated as ■
Safety Land Refill. ■
Conditioning, consolidation and exporting of PCBs
59
Latin America
■ Conditioning, consolidation and exporting of PCBs - AA2000: The conditioning of PCB contaminated
wastes was carried out for the company AA2000 at Paraná and Ezeiza airports, for exportation early in 2004 for Final Destruction. Conditioning, consolidation and exporting of PCBs – Du Pont: The conditioning of capacitors from the ■
Berazategui plant was carried out for Du Pont for exportation and Final Destruction early in 2004. Contracted works: EPEC: Befesa Argentina carried out conditioning, consolidation and exporting tasks for approximately 60 tons of PCB contaminated equipment from Empresa Provincial de Energía de Córdoba (EPEC), and thus got the “Cordoba free of PCBs” program, implemented by the provincial government, under way. ■
■ Operation Alfa Laval + US Filter Plant, La Plata Refinery, Repsol YPF: The oil company Repsol YPF renewed the leasing and operation contract for two Alfa Laval decanters belonging to Befesa Argentina
from tank 265. To this end, Befesa is currently preparing the tank area to install the equipment. In order to carry out these works in accordance with the customers requirements, two decanters (Alfa Laval make), two vertical centrifuge pumps (Alfa Laval make), 4 twenty cubic meter tanks, and a laboratory will be installed. T15 people will be required to carry out the works. The contract is for 12 months with an option of renewal for a further
at the U.S. Filter Plant in La Plata refinery.
12 months.
Furthermore, Borg Austral was awarded the Operation contract for the Slop Oil modular plant belonging to Repsol YPF.
Tank 5206, La Plata Refinery, Repsol YPF: A contract has been awarded to the company to carry
Transportation and treatment of wastes in the
out bottom sludge extraction, cleaning, transportation and treatment works on Tank 5206.
Works in progress:
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CATRE area, La Plata Refinery, for Repsol YPF: The solid wastes generated in La Plata refinery, stored in the CATRE area (Transitory Waste Storage Center) are being transported and treated. To date, more than 4,300 tons have been processed (by means of incineration process at Pacheco plant, and Final Elimination at Campana plant).
60
■ Slop Oil Unit, Tank 265, La Plata Refinery, Repsol YPF: Befesa was awarded the hydrocarbon processing and recovery contract for approximately 3,500 m3/month of product which will be processed
■
The approximate volume to be treated will be 500 m3.
Human Resources
Human Resources
Befesa’s average workforce in 2003 was 1,388 employees, of which 180 were Engineers or other university graduates, 92 Technicians, 244 Clerical Staff and 872 laborers, with 66.71% being permanent and 33.29% temporary personnel.
The distribution was as follows per Business Unit:
Distribución de la plantilla 2003
Corporate Services (20) Industrial and Hydrocarbon Cleaning (317)
Zinc and Desulfurization (155)
Environmental Engineering (349)
Salt Slag (107) Aluminum
62
(210)
Industrial Waste Mangement (230)
As regards the evolution of the workforce there was a small increase of 0.73% compared to 2002. The figure went from 1,378 to 1,388 employees, which is practically the same level as in 2001. Evolution of the Workforce (Nº of Employees) 1,000 900 800 700 600 500 400 300 200 100 0
872
244
180 92
Engineers and Others
Technicians
Clerical Staff
Evolution of the Workforce 1500 1400 1300 1200 1100 900 800 700 600 500 400 300 20 100 0
Laborers
1378
1388
2002
2003
1086 715 456 185
523
194
95/96 96/97 97/98 98/99 99/00 2001
Management Model Befesa continues to put its trust in a management model based on competencies that enables it to align its Human Resources with its strategic objectives. Within this integral management model,
As regards the organization model, Befesa aligns itself with Abengoa’s strategy, participating directly, completely and actively in the Human Resources management centralization program that was
the Performance Assessment program, using
initiated in 2003, through the establishment of an
previously set objectives, and the Training program, based on the prior analysis of the training needs of each employee in relation to his/her job and responsibility, are fundamental pillars given that
in-house specialized Services Company which covers all the areas related to the subject, distributed as follows:
they affect the main Human Resource processes.
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Human Resources
Administration of Personnel Labor Relations Training Risk Prevention Selection Employee Development Social Assistance Said concentration is enabling Befesa to avail of a quality, effective and efficient and innovative Human Resources service in its environment. During the year, the first phase of the Employee Portal came into operation, an internal communication and information system, the objective being for it to become the occupational writing desk for all employees where, apart from containing all the statistical and dynamic information on the Business Units and Companies, all the systems required for occupational performance as well as the different management and employees’ Human Resource processes are to be found. Likewise, the Employee Portal is the Company’s system for internal communication with its employees. Training activities carried out: Summary Corporate training General training Risk Prevention Totals
Courses 17 176 37 230
Participants 589 989 279 1,857
■ Corporate Training, with this being understood as being that which transmits the culture of the Company, its Internal Regulations, Strategy, Financial Models, Corporate Identity and the values the Company represents.
General Training, with this being that which pursues the professional development of the employee through a knowledge of the new occupational tools, new techniques, updating of ■
Hours of training 3,333 8,836 1,173 13,362
Training Befesa’s training program for 2003 was structured in three large blocks in accordance with the nature
64
of the program material and the final aim. Therefore, we would indicate the following three types:
occupational contents, management methods and languages, among others. ■ Occupational Risk Prevention Training, which involves training not only in relation to safety and hygiene conditions at work and the use of protection gear, individual as well as collective, but
also training as experts in Prevention at different levels (basic, medium and senior) which, apart from
Annual Report 2003
the above, requires express training in the application normative and the rules of
The total number of participants in these courses was 1,857, with a total of 13,362 hours of training
interpretation as well as an official authorization to bear certain responsibilities in the matter.
being given, with 230 training activities being carried out in the aforementioned areas.
Participants per type of course
Training Hours
Risk Prevention (15%)
Risk Prevention (9%)
Corporate (32%)
Corporate (25%)
General Trainig (53%)
General Trainig (66%)
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Human Resources
Occupational Risk Prevention In 2003, as part of Abengoa’s Prevention Policy development, the strategic objective of implementing the Occupational Risk Management System that exists in the rest of Abengoa’s companies operating in Spain was set for Befesa’s
homogeneous, effective and efficient management upon there being only one external collaborator. The advantages of this were, among others, better control of the risk factors and better exploitation of the available human resources and materials.
companies.
The PSR and IA applications were implemented in Befesa’s companies. These are tools that enable the
In compliance with said objective and with the occupational risk prevention legislation, the adscription and integration of Befesa’s Companies in the Pooled Prevention Service commenced in June. This is the service that is available for all Abengoa’s different companies and which manages Prevention in each of them.
integration of prevention throughout the organization and at all hierarchical levels of the companies. This facilitates the management of problems and non-conformities, as well as improvement proposals or suggestions.
As regards the development of the new Management System, Prevention Committees were established, one per Business Unit, formed by representatives from Management and Experts from the Pooled Prevention Service. The objective was the analysis of the occupational accidents that occurred in the companies and their statistical indicators, as well as the tracking of the activities carried out in accordance with the Preventive Activity Plans (PAP) which cover training activities, the control of safety conditions at work, the updating and documental development of the System, health control, legislative updating and analysis of the situation as regards Problem Solving Reports (PSR) that derive from the mistakes observed in the development of the activity and Improvement Actions (IA) that arise from suggestions to improve the implemented system. The Companies signing Agreements with only one AT and EP Insurance Company was of special importance as regards Prevention Management and
66
especially Health Control. This led to more
The abovementioned Prevention Management System is currently being adapted to the requirements of specification OHSAS 18001:1999, with the assistance of a Specialized Company.
Sustainability Report
Sustainability Report
Enterprise is nowadays one of the main protagonists in our society. Therefore, its responsibility cannot be limited to complying with an economic function. It must provide products and services that contribute to social well-being, make sure its activities help to preserve the environment and promote the socioeconomic development of the environment in which it operates. In Befesa, one of the fundamental objectives is the creation of value in the long-term. However, we also consider Sustainable Development to be a strategic
Promote social awareness of our activity.
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Capturing and motivation of human capital. Improve employee safety and health.
■
■ Improve quality and innovation of our processes and activities.
This is the challenge Befesa has taken on, in which its traditional objective, that of generating profits, is not at odds with sustainable development and the promotion of environmental and social activities in each of the areas it operates in.
factor and are conscious of our social and
In this context, Befesa plans its social and
environmental responsibility for the surroundings in which we operate.
environmental activity in terms of medium and longterm commitment.
At Befesa, our aim is for our entrepreneurial project
Economic Balance
to become the leader and to this end, we employ a series of principles and values: Reduction of the impact our activities have on the environment.
■
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■
The presentation of the main economic highlights is extensively done in this Annual Report. Special mention must be made of the fact that Befesa has once again surpassed the number of treated tons,
the figure in 2003 being in excess of 1.2 million tons of industrial waste and, since its
Corporate Governance Befesa has adapted its Governance Regulations to
establishment, more than 5.6 million tons, thus contributing to the protection of the environment and the efficient reuse of the resources for which there is a scarcity in nature.
the recommendations made by the Special Commission for the Development of Transparency and Security in the Markets and in listed Companies (Aldama Report). These Governance Regulations are described in another section of this Annual Report.
In the 2003 financial year, Befesa’s sales came to 356.5 million euro, a reduction compared to 2002 of 11.6% as a result of Tracemar, Elsur and Aguas de Baena not being included in the consolidation perimeter, the negative evolution of the price of metals and the restructuring carried out in the aluminum activity. Ebitda in 2003 came to 38.1 million euro, 6.8% less than the previous financial year, in spite of the divestments made and the negative evolution of
Labor Relations Befesa pursues the professional improvement of its employees through the achieving of concrete objectives that are established; continuous advancement and development through the stimulation from realistic new goals; and the development of their potential and valorization of their capabilities through training and career plans. The development of the capabilities of its employees
metals. This gives us an idea of the positive contribution from the new activities Befesa is developing.
is part of the management by competency model Befesa has implemented in all its business units. In 2003, a total of 230 training activities were carried out with 1,857 participants and a total of 13,362
Social Balance
hours training were employed. At the end of the financial year, Befesa employed 1,388 people in
The customary components of the social section are compliance with the Code of Good Governance,
Spain and abroad.
labor relations and the company’s social activity. The
Befesa’s companies have Technical Prevention and Health Control agreements with the corresponding
backing given to other activities of general interest, such as art, culture or the conservation of the historic heritage which Befesa carries out through the Focus-Abengoa Foundation are also included.
Mutual Societies. This is explained in more detail in another section of this Annual Report.
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Sustainability Report
held and, likewise, numerous books are published. Within its objectives, we must especially mention the social assistance the employees and pensioners who once worked for Abengoa and its companies (Befesa), and their spouses or orphaned children receive from the Foundation. In 2003, this activity focused on educational activities (program of student aid), occupational
The distribution of employees per business unit is as follows: Workforce Distribution 2003 Corporate Services Aluminum Salt Slags Zinc and Desulfurization Industrial Waste Management Indust. and Hydrocarbon Clean. Environmental Engineering
20 210 107 155 230 317 349
Social Activity Befesa’s social activity is channeled through the Focus-Abengoa Foundation, where important assistance is provided for employees of Abengoa
In relation to other activities, the Foundation awards prizes and aids to stimulate educational activity in the young through a wide-ranging program of prizes and scholarships and other activities related with publications, music or exhibitions, exclusively for the children, orphans, family members and employees of Abengoa or its companies. Therefore, All the employees of Befesa and its companies, as well as their family members, can also receive the benefit of these
and its Group Companies, and their families.
activities.
Therefore, all the employees of Befesa and its companies, and their families, can benefit from said social activity.
In a more specific manner, in 2003 Befesa
The Foundation promotes multiple cultural activities, mainly in the fields of music and art. Moreover, numerous Seminars, Congresses and Conferences on the most diverse subjects are also
70
health, individual attention put at the employee’s disposal (orientation, information, negotiation of bank loans or social funds for extraordinary expenses caused by illness, etc.), acknowledgement of employees with 25 years continuous work in the company, access to La Antilla Residence (for personnel relaxation and coexistence), publications (bi-monthly newsletter in two languages), retired personnel (access to information and to the Residence).
organized an intense program of communication with different social and ecological groups and bodies, and reached agreements to reduce wastes destined for elimination, minimize those generated in our facilities and promote new treatment infrastructures that take the legate for
Annual Report 2003
Andalusian Autonomous Plan which will regulate industrial waste management in the autonomous region over the next few years. Environmental Balance Befesa, a company that provides Environmental Services for the industrial sector and constructs
future generations into account. The presence of managers from Befesa in Universities, participation in forums and exhibitions and specialized congresses has also helped to consolidate the image of the Befesa trade-name as a value of environmental excellence in the waste management sector. We would especially mention, in this respect, Befesa’s active participation in the development of the
Environmental infrastructures, is fully focused on the sustainability of all its activities: aluminum waste recycling, slat slags recycling, zinc and desulfurization recycling, industrial waste management, industrial and hydrocarbon cleaning, and environmental engineering for the treatment of water and waste management. A detailed description of these activities and quantitative information on them is given in the chapters of the Annual Report corresponding to the different business units. Quality and Environment Environment Befesa considers respect for the environment to be an essential component of its activities and objectives. The company’s intention is to contribute in a positive manner to the conservation of our natural resources through progressive environmental integration of our activities and also through knowledge of and compliance with the environmental legislation that affects us. Befesa has promoted the progressive implementation of standardized and ISO 14001 certified environmental management systems in all its main activities. It is of the opinion that the strict requirements derived from these systems are the best guarantee the company can offer its
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Sustainability Report
shareholders, customers and Public Administration and society as a whole, in relation to its commitment to the sustainable evolution of its activities. Other Befesa priorities include the prevention of waste generation, reuse and recycling, and offering
be found in the best available and economically applicable technologies. All the Group’s plants comply with all the legal requirements and guarantee compliance with the requirements imposed in the respective permits. Likewise, all treated waste complies with the authorizations imposed by the competent authorities and all
its customers an integral waste management
emissions are controlled on a regular basis.
service. This is proved by the success achieved in the development of new treatment processes that do not generate waste, such as the recycling of salt slags from the secondary aluminum production process, and steel powders to be valorized, an activity in which Befesa is world technological leader. Befesa believes that, in any event, the management of waste must always be carried out with environmental protection guarantees which are to
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Befesa also collaborates in the sustainable development of society upon executing engineering activities to create and exploit infrastructures for the environmental management of waste and water, and by promoting constant innovation in the development and application of technologies in the same. Due to the activity carried out by Befesa and its companies, a corner stone in our commitment to the environment is that of directing all our activities in a way that they
Annual Report 2003
minimize the possible environmental impacts associated with our installations, processes and services, with special attention being paid to the protection of workers, the local surroundings and the general public. This commitment of Befesa to the environment is also reflected in its training activities. Befesa’s companies continue to offer seminars on environmental training and legislation, as well as computerized integral waste management systems and manuals on the management and handling of chemical products and wastes. In this respect, an important milestone is its effort to advance in environmental management and in voluntarily participating in agreements with public administrations. Last July, Befesa Desulfuración signed the Voluntary Agreement, together with other companies from the chemical sector in the Basque Country, with the Territorial and Environmental Planning Department of the Basque Government, for environmental improvement by said sector in the Basque Country Autonomous Region.
The commitment of the entire organization to continuous improvement through the study, on
■
the basis of technical and economic criteria, of new procedures, measures and practices, preferably preventive ones, directed towards progressively improving our environmental performance. ■ To progressively increase environmental awareness at all company levels through training
plans. To carry out actions to prevent our activities affecting the environment and efficiently control the applied measures: Treat wastes, preventing the generation of new wastes. ■ Active participation in the efforts made by Public Administration and social agents to provide new solutions to environmental problems in our surroundings as well as the development of good neighbor relationships and informative transparency with the general public and social organizations. ■
■
Befesa must maintain a continuous research
Environmental principles Befesa’s Environmental Policy is based on a series of principles which all its personnel must have a knowledge of, and which are concreted in the following action priorities: To integrate Environmental and Quality management systems in all operations and activities directly related with Befesa.
■
To establish procedures to know and keep the legal requirements that affect us updated, as well
■
as particularize and comply with them in each production center or work-place.
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Sustainability Report
Contribution to the environment We here-below offer a summary of the Environmental benefits generated by our activities in 2003:
Aluminum Wastes Treated waste ■
92,266 Tons production of aluminum scrap.
Valorized products ■
process, collaborating with specialized institutions in the field, in order to develop new, economically feasible, waste recycling treatment processes. ■ To permanently control the impact its services and production processes have on the surroundings. Any new project must analyze the possible repercussions on the environment. ■ Advisory and assistance services for customers in all subjects related with the handling of their industrial wastes so that they may do it in a danger-free way and with the maximum guarantees of safety.
85,080 Tons of secondary aluminum.
Other direct benefits ■ Saving of raw materials for the production of 85,080 Tons of primary aluminum. ■ 95% energy saving (kWh secondary aluminum = 5% kW/ton primary aluminum). ■ Reduction of CO2 emission, electric production saved.
Valorization of Salt Slags Treated waste ■
131,632 Tons of salt slags.
Valorized products ■ 7,319 Tons of concentrated aluminum blocks. ■
55,878 Tons of salt.
Other direct benefits Saving of raw materials for the production of 7,319 Tons of primary aluminum and 55,878 Tons ■
of salt.
Valorization of Zinc Wastes Treated waste ■
74
102,248 Tons of steelworks powder.
Annual Report 2003
Valorized products 39,354 Tons of Waelz oxide with 65% zinc.
■ ■
13,044 Tons of secondary zinc.
■
5,624 Tons of zinc oxide.
with the production of new dissolvents). ■ 2,300 Tons in recovery and valorization of containers, through their washing or resmelting. 700 Tons in the recovery of metals with mercury from fluorescent tubes, silver from photographic ■
Other direct benefits
developers, lead from car batteries, etc.
Saving of raw materials for the production of 13,044 Tons of primary zinc, of 39,354 Tons of
Industrial and Hydrocarbon Cleaning
Waelz oxide and 5,634 Tons of zinc oxide.
Treated waste
■
■
2,502 Tons of PCB.
■
13,873 Tons of plastics.
Valorized products ■ 290 Tons of recovered copper. ■
1,300 Tons of recovered iron.
■
11,258 Tons of produced riddlings.
Other direct benefits ■ Saving of raw materials for the production of 290 Tons of copper and 1,300 Tons of iron. ■ Saving of raw materials for the production of 11,258 Tons of riddlings for plastics.
Quality
Industrial Wastes Management, treatment and valorization of more than 480,000 Tons, classified as follows: 358,000 Tons of hazardous waste (HW); 110,000 Tons of non-hazardous waste and 13,000 Tons direct management. Of these amounts, approximately 29,000 Tons were subjected to different processes for valorization purposes, with the final results being as follows: 3,000 Tons in recovery of dissolvents (it means a significant reduction in environmental impact and in the consumption of natural resources compared
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Quality is ever-present in all of Befesa’s activities. In fact, most of its companies have implemented standardized quality management systems. All the systems have been subjected to certification processes. In most cases, the certifying body is the Spanish Standardization and Certification Association (AENOR). Furthermore, all the systems are audited internally by teams of qualified auditors that have no relation with the production line. Part of Befesa’s corporate strategy, as regards quality management, has been to promote the progressive implementation of quality management systems and certificates in accordance with standard ISO 9000 in all its main activities.
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As an example of Befesa’s firm commitment to sustainable development based on rigorous compliance with the most demanding environmental legislation, we would mention the fact that our subsidiary Befesa Zinc Aser has been the first recycling company worldwide to be certified in accordance with European Regulation EEC No. 1836/93, the Eco-Management and Audit Scheme (EMAS). Moreover, in April 1998, Befesa Zinc Aser decided to voluntarily adhere to the EMAS, and publishes an Environmental Statement, on an annual
The new version of two computerized applications have been implemented in all the Group’s companies as strategic tools to improve the Quality and Environmental Management Systems. One is for problem management and solving (PSR) and the other for the treatment of improvement actions (IA).
basis since then which is verified and validated by
way that detection and solving goes from “down to
the certifying body itself.
up”.
During the 2003 financial year, three other Group companies, the Ajalvir industrial waste transfer
The Quality and Environment corporate structure has taken the training actions required to diffuse the use of the new applications and the advantages they
center, Nerva Center and Befesa Desulfuración, have obtained the Verification Certificate, that indicates conformity of the Environmental Management System with the requirements of European Environmental Management and Auditing Regulations (EMAS), and there are therefore three companies that now possess said Certificate.
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The basic thing about these applications is that problem management and solving, and the improvement actions can be proposed from the section most closely related to the problem, in such a
contribute to the daily management of projects and works in favor of continuous improvement.
Annual Report 2003
The functions of the Quality and Environmental organizations are basically, the management and development of the documentation for the Systems, keeping it updated in accordance with applicable national and international standards and in accordance with environmental legislation,
Quality and Environmental Specification Certificates per Business Unit:
Aluminum Waste Recycling Befesa Aluminio Bilbao is quality certified in accordance with the new standard ISO
propose and develop the annual internal auditing plan, act as advisors to the Quality and
9001:2000, having passed the corresponding certification process last October. Furthermore, it
Environmental Committee, where objectives, indicators and goals are proposed for the company, units and departments, attend to the units and departments in matters related to consultations and requests for assessment, collaborate in training programs, assessment of providers, act as supervisor in the application of problem solving (PSR) and improvement actions (IA) and collaborate with General Management in the annual revision of the Systems, in order to determine improvement proposals.
possesses an Environmental certificate according to standard ISO 14001:1996, having passed the corresponding re-certification process last March.
The success of the system implemented in the Group’s companies is proven by the total of 403 PSRs registered in the 2003 financial year, 66% more than in the previous year. Likewise, the 198 improvement actions proposed increased 57% on the previous year.
Befesa Aluminio Valladolid is quality certified in accordance with the new standard ISO 9001:2000, having passed the corresponding certification process last June. Furthermore, it possesses an Environmental certificate in accordance with standard ISO 14001:1996, having passed the corresponding re-certification process last December. Befesa Aluminio Bilbao and Befesa Aluminio Valladolid are currently working towards complying with the requirements of the EMAS regulation.
Salt Slags Recycling Befesa Escorias Salinas. During the year the company had its quality system certified in accordance with standard ISO 9000. This meant, among other things, the need to define, together with our customers, the aluminum oxide specifications in function of the new applications developed, and to adapt the processes to satisfy said specifications. Befesa Escorias Salinas has received the environmental report validation from the Regional Government of Castilla and Leon as a consequence of the environmental audit which is obligatory in Castilla and Leon for hazardous waste managers.
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Befesa Salt Slags has commenced, together with
is the first Waelz plant to obtain both certificates
the Environmental Agency of England and Wales, the adaptation of its facilities to comply with the requirements that will be demanded when the
from among the twelve analog facilities that exist worldwide.
European Directive on the Integrated Control of Contamination (IPPC) are applied.
Befesa Zinc Aser’s firm commitment, as regards its activity environment, to sustainable development based on rigorous compliance with the most
Zinc and Desulfurization Recycling
demanding environmental legislation led it, in April 1998, to voluntarily adhering to the EMAS
Befesa Zinc Aser. Since 1995, Befesa Zinc Aser holds the ISO 9002 Quality Certificate, awarded by Lloyd’s Register Quality Assurance Limited (LRQA). It also has the certification of the Environmental Management System implemented within the organization, in accordance with standard ISO 14001, which it was awarded two years later, in 1997, by the same company, and it
(European Eco-management and Audit Scheme), in accordance with EEC Regulation No. 1836/93 of the European Council, and the company publishes, since then, an annual Environmental Statement – the first of which was for the 1996/97 financial year. It has to be verified and validated by the certifying body itself. Taking into consideration the need to adapt the Quality and Environmental Management System implemented in Befesa Zinc Aser to the new legislation on the matter, the opportune adaptation of Befesa Zinc Aser’s systems to the requirements of Quality Management Standard ISO 9001/2000 and EC EMAS Regulation 761/2001 was undertaken throughout 2002 and the integration of both systems in one was successfully completed as well, as accredited by the audit made on the Integrated Management System (Quality and Environment), according to standards ISO 9001/2000, ISO 14001/1996 and European Regulation EMAS II 761/2001, including the validation of the Environmental Statement for 2002, carried out by LRQA on the 26th, 27th and 28th February 2003. In this way, the System has been re-certified in accordance with standard ISO 14001/1996, has been verified in accordance with Regulation EMAS II and certified in accordance with the new standard ISO 9001/2000 for an additional 3 years, up to February 2006.
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Befesa Zinc Amorebieta. Once the Environmental Management System had been certified in accordance with standard UNE-ISO 14001:1996, and in accordance with the commitment reflected in the company’s environmental policy, during the course of 2003, Befesa Zinc Amorebieta broadened and improved its corrective and preventive activities related to the environment, and managed to reduce the environmental impact of its activities. Befesa Zinc Sondika. In October 2003, subsequent to the audit made by AENOR, the Quality Management Certificate was renewed, adapting it to the new standard UNE-EN ISO 9001:2000. Likewise, once the documentation had been presented and the inspection visit passed, the certificate was extended for another five years. The certificate issued by the Department of the Environment of the Basque
standard UNE-EN-ISO 9001:2000 which replaces UNE-EN-ISO 9002/1994, which was previously in force. Likewise, the company passed the follow-up audit carried out by AENOR on the environmental management system CGM-99/084 and had its environmental statement and other requirements of Regulation EMAS II validated. As an important milestone in its effort to advance in environmental management and to voluntarily participate in agreements with public administrations, the company signed, in July, together with other companies from the chemical sector in the Basque Country, the Voluntary Agreement with the Territorial and Environmental Planning Department of the Basque Government for environmental improvement in the sector in
Government authorizes the Management of Hazardous Wastes to recover zinc and zamak wastes.
the Autonomous Region of the Basque Country. This agreement has been reached within the framework of the Basque Sustainable Development Environmental Strategy (2002-2020) and the economic development model the
Befesa Desulfuración Befesa Desulfuración had
European Union has strategically put its trust in,
its registered firm certificate ER-0736/1997 renewed for a further three years, this time under
capable of generating higher levels of well-being and quality of life through the integration of
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increasing levels of economic earnings, employment and social cohesion and environmental preservation. These voluntary agreements between companies and administration will be the key instrument of the new environmental policy with the industrial sector. Cooperation between the parties to advance beyond the legal requirements is
5.- To monitor and control the emissions generated in the sector. 6.- To reduce the emission values of contaminating agents generated by the sector. 7.- To reduce the spill values of contaminating agents generated by the sector or total elimination of the spill.
the basic premise for working under the signed
8.- To facilitate and prepare fulfillment of the IPPC
voluntary agreement. The agreement establishes 11 Sectorial objectives: 1.- To minimize the generation of hazardous wastes.
requirements (technical application guidelines of the BREF that affect the sector, Integrated Environmental Management). 9.- To implement the IPPC requirements prior to the year 2007.
2.- To minimize the generation of non-hazardous wastes. 3.- To improve hazardous waste management. 4.- To improve non-hazardous waste management.
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10.- To develop and implement environmental management systems in accordance with international standard ISO 14001. 11.- To potentate the product protection code.
Annual Report 2003
Befesa Desulfuración committed itself individually to the following in 2003:
transportation of hazardous wastes and direct management from the production center to the
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Participation in the EPER-atmosphere and EPERwater project: the data requested by the
final treatment center. It likewise renewed its inscription in the EMAS II Register, with the
Department of the Environment on atmospheric contamination were facilitated in June and samples taken of the wastewater.
certifying body being AENOR.
Participation in the end of line BREF application guidelines: the meetings with the companies
management system verified in accordance with Regulation 761/2001 EMAS II in September and has verified the information given in the
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involved have not yet commenced. Participation in the sulfuric acid BREF application guidelines: in December, we participated in the first meeting with the consultants that are going to elaborate the guidelines for the Basque Country, in order to provide data on the process installed in Befesa Desulfuración.
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These commitments will be expanded over the next two years with: Participation in the EPER-atmosphere and EPERwater project. ■ Request for Integrated Environmental Authorization. ■
Nerva Center. This center had its environmental
environmental statement upon having passed the audit done by the Spanish Standardization Association (AENOR) and has had the environmental management certificate it obtained in 2000 renewed. Likewise, its environmental system has been certified in accordance with standard ISO 14001 for the activities carried out in the center. Cartagena Center. This center had its integrated quality and environmental system certified in November, subsequent to the audit done, in
Through these individual actions, Befesa Desulfuración intends to become the pioneer in compliance with the most significant legal environmental requirement in relation to integrated prevention and control of contamination, as Act 16/2002 is considered to be, and which is also known as the IPPC Act.
Industrial Waste Management Ajalvir Center. During the year the industrial waste transfer center in Ajalvir widened the scope of the certificates it received in 2002 for its quality and environmental management systems in accordance with standards UNE-EN-ISO 9001:2000 and ISO 14:001:1996 to include the
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accordance with standards UNE-EN-ISO
Industrial and Hydrocarbon Cleaning
9001:2000 and UNE-EN-ISO 14001:1996, for the activities carried out in the center.
Befesa Tratamientos y Limpiezas Industriales. The main objective for 2004 is to achieve
Albega. During the year Alianza Befesa Egmasa (Albega) passed the audit to renew the certificate it has since 1997 for its industrial waste inerting plant in Palos de la Frontera (Huelva). Furthermore, the scope of the certificate was widened under the audit to include the valorization and elimination of organic waste, upon it already having the certificate for inorganic waste. The actual scope covers the valorization and elimination of hazardous waste.
unification of the different companies’ quality management systems and implement a single quality management system based on the new management tools that are being implemented: SICOP-Quality Database, in such a way that maximum system diffusion, use and flexibility is achieved. Transition to standard ISO 9001:2000 has actually been achieved for the industrial cleaning, chemical cleaning, and inert atmosphere catalyst extraction and cleaning and picking activities. The other activities developed by the new company will be included during the course of 2004. Moreover, steps are going to be taken to implement the environmental management system in accordance with standard ISO 14000, so that the first steps in adaptation, homogenization and implementation of all the environmental processes currently carried out by all the companies can be taken, in order to incorporate them in the unified management system under standards ISO. To this end, the necessary corrective actions will be taken and initial investments will be made. Finally, we would mention the fact that the Quality Management System Approval Certificate was renewed in accordance with ISO 9001. Befesa Gestión de PCB obtained the Environmental Management System Certificate under standard ISO 14001, in the year 2001, and during the 2003 financial year AENOR carried out the follow-up audit and results of the evaluation were positive.
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Befesa Plásticos completed adapting, in 2003, its quality system to the requirements of standard UNE-EN-ISO 9001:2000. In November 2003, it was awarded the Registered Firm Certificate ER0341/2001. Along the same lines, and as a true reflection of the company’s respect for, and commitment to the environment, a decision was taken to certify its Environmental Management System, in 2004, in accordance with international standard UNE-EN-ISO: 14001:1996.
Environmental Engineering Befesa Construcción y Tecnología Ambiental completed its adaptation to the new standard UNE-EN ISO 9001:2000 with the obtaining of the registered firm certificates in accordance with said standard. Furthermore, the company obtained the Environmental certificate according to standard ISO 14001. Befesa Fluidos. has renewed its ISO 9001 Quality Management System Approval Certificate.
Befesa Técnicas del Suelo. The company has begun to implement, jointly, the environmental and occupational risk prevention systems in accordance with standards ISO 14001 and OHSAS 18001, the objective being the obtaining of the corresponding certification towards the end of 2004.
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The current situation as regards Befesa Companies with their activities certified is as follows:
European Eco-management and Audit Scheme (EMAS)
Certified Companies Befesa Zinc Aser Befesa Desulfuración Befesa Gestión de Residuos Industriales: Ajalvir Center Befesa Gestión de Residuos Industriales: Nerva Center
Environmental Management Certificate ISO 14001
Befesa Aluminio Valladolid Befesa Aluminio Bilbao Befesa Escorias Salinas Befesa Zinc Aser Befesa Zinc Amorebieta Befesa Desulfuración Befesa Gestión de Residuos Industriales: Ajalvir Center Befesa Gestión de Residuos Industriales: Nerva Center Albega Befesa Gestión PCB Befesa Plásticos Befesa Construcción y Tecnología Ambiental
Quality Management Certificate ISO 9000
Befesa Befesa Befesa Befesa Befesa Befesa Befesa Befesa Befesa Befesa Befesa Befesa Befesa
Environmental Management in the process of being implemented (standard ISO 14001)
Befesa Gestión de Residuos Industriales: La Puebla Center Befesa Tratamientos y Limpiezas Industriales
Quality Management in the process of being implemented (standard ISO 9000)
Befesa Gestión de Residuos Industriales: La Puebla Center
European Community Eco-management and Audit Scheme in the process of being implemented (EMAS)
Albega
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Aluminio Bilbao Aluminio Valladolid Escorias Salinas Zinc Aser Zinc Sondika Desulfuración Gestión de Residuos Industriales: Ajalvir Center Gestión de Residuos Industriales: Cartagena Center Tratamientos y Limpiezas Industriales Plásticos Construcción y Tecnología Ambiental Fluidos Argentina
Research, Development and Innovation
Research, Development and Innovation
The development of R&D&I actions and projects pursues the continuous improvement of the company’s environmental performance. Besides ensuring the commitment to environmental protection, responding to our customers’, shareholders’ and the company’s expectations, we at Befesa believe that the programming of new challenges and objectives is vital to enable us to advance ahead of our competitors and anticipate future pressures and social demands in
In the innovation field, Befesa’s policies are oriented towards the creation of value and its upkeep. The innovation activity is oriented towards results and pursues the groups of tangible objectives that contribute to maintaining Befesa’s technological competitiveness: diversification through new products and services; differentiation through the improving and adapting of existing products and services, as well as the improving of processes. The acquisition of essential competencies and, in
environmental matters.
particular, the generation of options for the future are pursued as intangible objectives. The latter is
In Befesa, the investment in R&D&I is focused on improving the efficiency of the production processes related to environmental aspects and to solving the environmental problems the different sectors have to
especially connected with value through the growth and development expectations for new businesses.
face up to, which affect the company as a whole. In this respect, each year, Befesa dedicates significant resources to research, development and innovation. Great importance is given to the R&D&I activities within the different business units given that the future development of their production and technology is based on them.
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Befesa is confident that all the effort it puts into the improvement of current processes and products to optimize costs and reduce environmental impacts, as well as the research and development to make it more competitive technologically, will bear fruit and be reflected in greater acceptance of the services provided and products offered to our customers.
The innovative projects in progress during the past financial year, per Befesa business unit, are:
Aluminum Waste Recycling The fundamental objectives of R&D&I activities are to facilitate the maximum metallic recovery of raw materials, the improvement of the quality of the obtained product, the reduction of the environmental impact of the activities and the development of technology to reduce production costs. The most noteworthy projects this year are: a) Optimus 03. “Optimization of aluminum waste recycling in different novel aspects”: The objective is to introduce improvements in aluminum waste recycling in relation to the cap
name (Minirex) which was successfully developed the previous year in which a prototype was designed. This year, the aluminum waste compactor was patented and waste compacting tests were carried out, in Bilbao and Valladolid. The correct performance of the equipment was verified and the production and quality of the treated or produced wastes checked to ensure they are those foreseen. With the experience gained, new improvements have been applied and these will be incorporated in a new prototype. Moreover, a new portable equipment project has been carried out, with which the waste at different foundries will be compacted in order to study the quality of the obtained waste. The intention is to send it to different countries to study the waste produced at each site.
furnace. The idea is to develop original innovations to provide us with better technology in the use of these furnaces, overcoming the
c) Cálido 03. “Improving the process and quality obtained in plastic deformation processes”: The
traditional disadvantages. Moreover, a study has been made on the elimination of organic matter
continuous running out production of lengthy products is being carried out with conventional
under loads for the furnace. These studies consisted of tests to mainly remove rubber, plastics, oils and grease with contrasted results as regards the increase in the recovered metal.
equipment since many years ago, but nowadays the use of more modern resources such as electronics is being introduced. There was no experience in the solving of the problems posed by the use of conventional equipment for plastic
b) Minirex 03. "Minimization of the production of waste in aluminum recycling processes": This project is a continuation of another of the same
deformation of aluminum, with electronically operated devices, and, to be precise, in the production of wire.
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prepared and it has to be resistant enough to bear the upper rolling layers and, of course, vehicle traffic. Likewise, it has to be flexible enough to absorb and deaden the stresses traffic and environmental conditions (changes in temperature, humidity, etc…) are going to subject it to. In normal cases soil from the construction site itself, to which different amounts of cement are added in function of
Salt Slag Recycling The following R&D&I projects were carried out in 2003: a) The application of Paval for the production of cement-bedding: In the construction of roads and communication routes a base has to be
the composition of the soil, is normally used. The adding of cement is to achieve the required resistance. Subsequent to numerous laboratory tests – in which it was proven that the use of Paval for this application reduced the amount of cement required without loss of resistance – on site tests commenced to confirm the laboratory results. These works were carried out in collaboration with a construction company that is going to apply it in its works. b) The application of Paval in the manufacturing of insulating materials: Among the thermal and acoustic insulating materials used nowadays, we find fiber glass and rock wool. One of the components of the latter is aluminum oxide. This oxide is incorporated in the product through the use of bauxite (costly aluminum oxide of a natural origin). Paval is a secondary commodity with a high aluminum oxide content (from 65 to 75%) and it could, therefore, be used to produce rock wool. During the year, an agreement was reached with a manufacturer of this product to study the possible use of Paval as a substitute for bauxite. To this end, a study had to be made on the effect of the other components of the Paval on the product and fundamentally, of the effect of the fluorine on atmospheric
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emissions given that rock wool is manufactured at high temperature. All the tests carried out to date have been positive. This work will be continued throughout 2004.
new technology in Befesa Zinc Aser’s production process. b) Adding acid sodium carbonate in the conditioning tower: The intention is to carry
Zinc and Desulfurization Recycling
out a series of tests with a view to reducing the presence of mercury in the steam phase,
The following are worth mentioning from among
from the gases emitted through the stack from the Waelz process. To this end, experimental technology based on the absorption of the
the R&D&I activities carried out by Befesa Zinc Aser during the year: a) Process change to Basic with air injection to the Waelz furnace (2nd phase): A project, the objective of which is to optimize the Waelz process in Befesa Zinc Aser’s plant from an energy and production point of view. To this end, the intention is to develop an energy recovery process from the waste while it is in the final few meters of the furnace. The objective of this research is to incorporate the
carbonate on sublimate mercury phases is being tried out. The intention with this research activity is to incorporate the new technology in Befesa Zinc Aser’s production process. c) Improvement of the settlement tanks in the washing plant: The intention is to improve the capacity of the washing plant’s settlement
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tanks: as a consequence of the increase in production achieved in the Waelz furnace, a series of bottlenecks have cropped up in the washing plant, among which we would mention those related with the settlement and filtering phases. The objective of this R&D activity is to improve the settlement facility without having to make large investments in fixed assets, through the incorporation of state-of-the-art technology systems in the settlement tanks. The intention with this research activity is to incorporate the new technology in Befesa Zinc Aser’s production process. Patents and Industrial Property The intense activity carried out by Befesa Zinc Aser in the scientific research and technological development fields applied to all its products and processes enabled it to take out the two following invention patents:
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Patent No. 9500605, titled “Procedure to obtain high pureness zinc oxide through Waelz oxide
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lixiviation with baker’s salt solutions”, authorized on 17th May 2001 and published in the Spanish Official Patents and Makes Newsletter of 16th June 2001. This provision also includes several researchers from the National Metallurgical Research Center (CENIM) of the Superior Scientific Research Council (CSIC) as its inventors.. Spanish patent No. 9500713, titled “Procedure for the hydrometallurgical treatment of Waelz oxide purification through lixiviation with soda ash”, authorized on 20th May 1998 and published in the Spanish Official Patents and Makes Newsletter of 1st July 1998. ■
Industrial Waste Management During the year 2003, the following R&D&I projects were developed by Befesa’s Industrial Waste Management business unit:
Annual Report 2003
a.3) A collaboration project with the Polytechnic University of Cartagena on the use of byproducts for the stabilization of potentially toxic elements such as hexavalent chrome. a.4) A collaboration project with the Department of Chemical Engineering and Metallurgy of the University of Barcelona titled “Applications of low content Magnesite in environmental technology”, or the use of magnesite as a substitute for the lime reagent in waste inerting processes, proposing the following technological innovations: a) Collaboration agreements with research centers: a.1) A collaboration project with the CENIM (National Metallurgical Research Center) on an “Experimental plant for the reuse of Waste of an organic nature”: A project that consists of the reuse of industrial wastes of an organic nature, exploiting their heat value. Use of organic, solid, liquid or pasty industrial wastes and a high specific surface phyllosilicate (clay) to obtain non-hazardous materials that can be revalorized energy wise.
■ New lines of detoxification of solid wastes with a high metal content and high lixiviating value. ■ Transformation of waste acid flows into fertilizing products, for reuse in the agricultural sector. ■ To propose a model of reagent barriers that permit passive remediation of waste spills.
b) Research projects carried out in the centers of Befesa Gestión de Residuos Industriales: Formic acid neutralization and stabilization project using by-products from the aluminum industry in particular soda dissolutions from the tanks used for stripping agents at Cartagena ■
The main objectives include the pursuit of new techniques other than elimination for the management of hazardous wastes to enable us to satisfy future requirements in this field. a.2) A collaboration project with the University of Murcia on the treatment of lands contaminated by heavy metals that exist at the old Potash and Derivatives (El Hondón) site through stabilization testing with bicalcium phosphate.
Center. c) Future R&D&I activities programmed for 2004: A collaboration project with the University of Huelva on the valorization of inorganic wastes ■
through the manufacturing of new materials that can be applied in the construction sector.
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■ A project to minimize and follow-up on environmental impacts caused by waste
d) Incorporation in the heat-exchanger cleaning works of an advance retaining device, the main
management systems in collaboration with the Polytechnic University of Cartagena. To be
advantage of which, as against the traditional
precise, the project will focus on the recovery of metals in overspent electroplating solutions, electronic scrap metal.
distance from the water outlet and therefore
system, is work safety. The workers are at a the risk of cuts due to contact with pressurized water is eliminated. The execution of the work is easier given that once the assembly works are
Industrial and Hydrocarbon Cleaning
completed a hydraulic control device only has to be moved to raise or lower the nozzle along the
The companies in this business unit are working on
exchanger. Cleaning is efficient given that
the following R&D&I projects:
specially designed nozzles are used for the job.
Befesa Tratamientos y Limpiezas Industriales a) Befesa Tratamientos y Limpiezas Industriales brought an innovative work unit and system into operation: the SALT-Fuel for automated cleaning of tanks of up to 60 meters diameter, optimizing resources, revalorizing wastes and increasing worker safety compared with manual cleaning operations as is how the cleaning of tanks that store this product (fuel) was being done up till now. b)
In this respect, it is developing a work system with the incorporation of biological technology to complement the SALT and research continues on the design of new robotized cleaning heads for tanks with undisplaceable tops.
c) In the hydro-demolition sector, H-1000 concrete hydro-demolition tests have been successfully carried out with the CEDEX.
Befesa Plásticos
Moreover, an automatic and programmable
Befesa Plásticos has two R&D projects in progress which can be considered strategic, to achieve diversification of the recycling business and the evolution of which in 2003 was as follows:
system has been developed and built for the cleaning of preheaters in Thermal Power Plants. This enables their cleaning during closed-circuit shutdowns which favors maintenance works in these type of Plants. Several jobs have been done with the system in Spain and Portugal.
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(polypropylene) screenings were manufactured, and their technical features were determined, and this proved their suitability for use in the aforementioned sectors. a.2) The economic feasibility of the business: With a view to determining its economic feasibility, 200 kg of screenings have been manufactured in order to carry out a true feasibility study by means of representative tests in industries that use these type of materials. The study will be carried out during the first quarter of 2004. a) Development of a recycled fiber glass reinforced thermoplastic compound manufacturing and sales business: These are compounds that will be used in the automobile sector and in the manufacturing of household electric appliances and special parts and pieces. This project includes the study of two essential aspects. a.1) The technical feasibility of the objective (development of the recycling process). To this end, the company received the collaboration of Gaiker, The Basque Country’s Technological Center. During the year, thermoplastic matrix
b) Development of a recycled polyethylenetereftalate (PET) screenings manufacturing and sales business, through the recycling of used PET bottles. These screenings would be used in the container and packing sectors. The following works were carried out in 2003 in relation to this project: Determining of the most suitable technology for the recycling process. ■ Market study (national and international). ■
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Raw material supply study. Business economic study.
All this information is included in a “Memorandum” for the purpose. The development of this business is pending the generation of the waste the company considers will be collected in Andalusia from 2004 to 2005. All these works were carried out with the collaboration of Egmasa, a company with which Befesa has signed a Collaboration Agreement in relation to the development of new businesses.
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Research, Development and Innovation
Furthermore, Befesa Plásticos has continued the
The project pursues the development of an
study the Superior Scientific Research Council the “Eduardo Torroja” Construction Science and
electronic transfer reagent to act by disassociating the organic chlorine to achieve the elimination of
Technology Institute) has been making on the “Feasibility of the use of organic base industrial by-products in construction materials”.
these type of contaminants that persist in mineral oils, with the objective of reducing their contaminating level to below the limit established by law and thus enable their elimination in plants
Befesa Gestión de PCB During the year, Befesa Gestión PCB continued to
located in Spain: cement factories, oil treatment plants, etc.
develop the “Reductive dehalogenation in homogenous phase of organochlorinated contaminating agents by electronic transfer” project with the University of Alicante.
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Corporate Governance Report 2003 I. Introduction
b.2) Appointments and Remuneration Committee
II. Company shareholding structure a) Significant shareholdings b) Shareholdings of members of the Board of Directors c) Shareholders’ agreements d) Treasury stock
– Composition – Duties – Organization and operation b.3) The Stock Exchange Internal Code of Conduct
III. Administrative Structure of the Company a) The Board of Directors a.1) Composition: number of members andtheir names a.2) Condition and representation a.3) Rules governing organisation and operation – Structure – – – –
Duties Appointments Removal Meetings
– Resolutions – Directors’ duties – The Chairman – The Secretary a.4) Remuneration and other rights b) The Committees to the Board of Directors b.1) Audit Committee – Composition – Duties – Organization and operation
IV. Intergroup and related transactions a) Transactions with significant shareholders b) Transactions with administrators and directors c) Significant intragroup transactions V. Risk Control Systems 1. Shared Management Systems. 2. Internal Audit VI.The Professional Code of Conduct VII. Shareholders’ General Meetings a) Rules of operation b) Information from the last Shareholders’ Meeting c) Web VIII. Level of monitoring of recommendations relating to Corporate Governance IX.Information tools a) Web b) Shareholder Service. c) Investor Relations.
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I. Introduction Act 26/2003 of 17 July known as the Transparency Act, modifies the Stock Market Act and the Companies Act, for the purpose of reinforcing the transparency of publicly listed companies, establishing specific cases that affect these companies in relation to the transmission of information to the market on corporate governance practices via the preparation of an Annual Corporate Governance Report, drawn up by the Board of Directors of the listed company and made available to all shareholders and investors by means of its publication on the website of the company. Therefore, the Act introduces the requirement to publicize this Corporate Governance Report on an annual basis and, in relation to information instruments, establishes that publicly listed companies must comply with the information obligations established under the Companies Act by any technical, computer-based or telematic means and must make them available on their website to protect the shareholders’ right to information and to disseminate the information appropriately. In furthering the Transparency Act, the recent Eco Order 3722/2003 of 26 December completes the regulation relating to the content and structure of the Annual Corporate Governance Report and the other information instruments for publicly listed companies. Befesa Medio Ambiente, S.A., (hereinafter, Befesa), has made a significant effort to adapt itself and incorporate the initiatives instigated by the new legislation. Corporate Governance It should be stated that in previous years, Befesa has complied with and lodged with the CNMV the Report Model on Governance of Stock Market Listed Companies, and even in 2003 included a specific chapter relating to Corporate Governance in the 2002 Annual Report, completed with the new issues included in the Aldama Report and the Financial System Reform Act, distinguishing the actions already taken from those that were being finalized for their upcoming implementation. Therefore, a) On 18 December 2002 the Audit Committee was created. b) On 24 April 2003 the Appointments and Remuneration Committee was created. c) On the same date, 24 April 2003, the Board of Directors drafted a proposal to modify the Company Bylaws for the purpose of incorporating the provisions relating to the Audit Committee and the Appointments and Remuneration Committee, and a proposal relating to the Regulation of the administration of shareholders’ meetings, that were approved by the General Meeting held on 24 June
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2003. Also on 24 April 2003, the Board of Directors approved a partial amendment to the Board of Directors Regulation and to the Internal Conduct Regulation as well as the internal regulations of the Audit Committee and the Appointments and Remuneration Committee. Following another of the Aldama Report’s recommendations, this regulation, called the Internal Corporate Governance Regulation was rewritten as a complete single text and was duly notified to the CNMV on 26 June 2003. Website (www.befesa.es) (www.befesa.com). As a result of new technology the Aldama Report, the Financial System Reform Act and the Transparency Act recommend and impose the use of listed companies’ websites as an information tool (including historical, qualitative and quantitative company data in it) and as a distribution tool (including current or personalized information in real time that may be accessed by investors). The recent Eco Order 3722/2003 specifies the minimum content that a listed company’s website must have and therefore Befesa has included all the information required under this legislation its website at www.befesa.es / www.befesa.com to date. At the time of drafting the current report, Befesa is changing its website with a new layout and content, characterized firstly by a more direct, rapid and efficient on-screen presentation and secondly by a broad and comprehensive information content and documentation made available to the shareholders in particular and to the public in general.
II. Company shareholding structure. a) Significant shareholdings Befesa Medio Ambiente, S.A.’s share capital is represented by book-entry records managed by Iberclear (Sociedad de Gestión de los Sistemas de Registro, Comparación y Liquidación de Valores, S.A.), and comprises 27,113,479 shares of 3.01 Euro nominal value of the same class and series, representing 81,611,571.79 Euro of share capital. All the shares are submitted for trading on the Madrid and Bilbao stock exchanges and have been on the Continuous Market (Sistema de Interconexión Bursátil Español) since 1 July 1998. As the capital is represented by book-entry records, there is no shareholders’ registry separate to the significant shareholdings communications and the (X-25) list provided by Iberclear on the occasion of Shareholders’ General Meetings.
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Pursuant to the information that the company possesses and the notification of significant shareholdings, the shareholding status is as follows: Asa Environment & Energy Company, A.G . . . . . . . . . . . . . . . . . .70.197% ■ Abengoa, S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15.056 % ■
■
Sociedad Inversora en Energía y Medio Ambiente, S.A. . . . . . . . . . .6.794 %
Abengoa holds 100% of the share capital of Asa Environment & Energy Holding A G and of Sociedad Inversora en Energía y Medio Ambiente, S.A. It therefore has a direct shareholding in Befesa of 15.056 % and furthermore, an indirect shareholding of 76.991%, which combined represents a total shareholding of 92.047%. The company knows of no agreements or arrangements between shareholders by virtue of which the parties may be obliged to adopt, by means of exercising the voting rights that it possesses, a common policy in which it refers to the management of the company or that seeks to influence it in a relevant way. b) Shareholdings of members of the Board of Directors. On 21 June 2001 the company’s General Shareholder’s Meeting agreed to implement an incentives program for directors and employees for the purpose of supporting beneficiaries in acquiring Befesa shares on their own behalf, a remuneration system that was appropriately communicated to the CNMV on 14 August 2001. In accordance with this plan, the communications of significant shareholdings to the CNMV and with the register of significant shareholdings that the company maintains pursuant to the Internal Conduct Regulation in relation to the stock market, the percentages of directors’ shareholdings in the company’s capital as at 31 December 2003 are as follows:
Javier Molina Montes Manuel Barrenechea Guimón
Direct 0.353 0.448
Indirect -
Total 0.353 0.448
Manuel Blanco Losada Asa Environment & Energy Holding, A.G.
0.002 70.197
-
0.002 70.197
Total
71.000
-
71.000
c) Shareholders agreements The company has no knowledge of the existence of any shareholders’ agreements or prevailing trade agreements between its shareholders.
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d) Treasury stock At 31 December 2003, the company does not possess its own shares as treasury stock, nor has it acquired any of its own shares during 2003. The Shareholders’ Ordinary General Meeting held on 24 June 2003 agreed to authorize the Board of Directors to make derived acquisitions, through purchases of shares in the company that may be made either directly or via subsidiary companies or investees up to the maximum limit specified under current provisions at a price of between 1 Euro per share minimum and 100 Euro per share maximum, being able to make use of this authorization during a period of eighteen (18) months from this date and subject to what is specified in Section Four of Chapter IV of the Revised Text of the Spanish Companies Act. To date, the Board of Directors has not made use of the prior authorization.
III. Administrative Structure of the Company a) The Board of Directors a.1) Composition: Number and Names. As established in Article 18 of the Company Bylaws, which fixes the number of Members of the Board of Directors of Befesa between a minimum of three (3) and a maximum of twelve (12), as at December 31 2003 and to date, the Board of Directors comprises seven (7) board members. The Board of Directors proposes to the General Shareholders' Meeting the number of members it considers adequate at any given time taking into account the interests of the Company. It is the role of the Shareholders’ Meeting to determine the number of Board Members.
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The current composition of the Board is as follows: Chairman Vice Chairman:
Mr Javier Molina Montes. Mr Manuel Barrenechea Guimón.
Director: Director: Director:
Mr Manuel Blanco Losada. Raoul Bussman representing ASA Environment & Energy Holding AG Mr Álvaro Castro Cabeza de Vaca.
Director: Director:
Mr Ignacio de las Cuevas Miaja. Mr Salvador Martos Hinojosa.
Secretary, non-director and Legal Counsel: D. Alfonso Castresana y Alonso de Prado a.2) Condition and representation. The total number of board members is considered to be sufficient in order to ensure the proper representation and effective operation of the Board of Directors. In accordance with the definitions included in the Olivencia and Aldama reports, as well as Act 26/2003 and the M.O. 3722/2003, the structure of the current Board of Directors is the following: Mr Javier Molina Montes: Executive (Chairman). Member of the Audit Committee and Member of the Appointments and Remuneration Committee. ■ Mr Manuel Barrenechea Guimón: Executive (Vice Chairman). ■
■
Mr Manuel Blanco Losada: Independent; External. Chairman of the Audit Committee and Member
of the Appointments and Remuneration Committee. Asa Environment & Energy: Dominial; External. ■ Mr Alvaro Castro Cabeza de Vaca: Dominial; External. ■
■
Mr Ignacio de las Cuevas Miaja: Independent; External. Member of the Audit Committee and Chairman of the Appointments and Remuneration Committee.
■
Mr Salvador Martos Hinojosa: Dominial; External.
The majority of the Board of Directors are therefore external directors. The Chairman of the Board of Directors, Mr. Javier Molina Montes also acts as Chairman of the Board of ASA Environment & Energy Holding, AG (holder of 70.197% of Befesa’s share capital). In accordance with established Company policy, the Chairman of the Board of Directors or the Vice Chairman act as Chairman of the Board of Directors of the companies which head the various Business Units of the group or are members of these boards or of other companies within the group.
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a.3) Rules governing organization and operation The Board of Directors is governed by the Board Regulations, the Company Bylaws and the Stock Exchange Code of Conduct. The Board Regulations were initially approved at the meeting of the Board of Directors held on 13 December 2001, with the clear aim of anticipating the current Good Governance regulations and ensuring effective internal regulation. They were last modified on 24 April 2003, in order to incorporate provisions relating to the Audit Committee established in the Financial System Reform Act as well as those relating to the Appointments and Remunerations Committee. – Structure: The Board of Directors currently has seven members. The Regulations of the Board of Directors govern the administrative body’s composition, duties and internal organisation. Additionally, the Stock Market Internal Code of Conduct applies to members of the Board of Directors, Senior Management and all employees who due to their position or responsibilities may be effected by these Rules. The Rules governing General Shareholders' Meetings regulate the formal and internal aspects of their holding. Finally, the Board of Directors is assisted by the Audit Committee and the Appointments and Remuneration Committee, that are governed by their own internal regulations. All these rules are incorporated in the revised text of the Corporate Governance Internal Regulations, which are available on the Company web site, www.befesa.es and www.befesa.com. – Duties: It is the duty of the Board of Directors to take any action that may be necessary in order to pursue the company’s corporate objective, and it is empowered to establish the company’s financial targets, to agree any relevant measures proposed by the Senior Management in order to achieve these targets, and to ensure the future viability and competitiveness of the company, along with the presence of a suitable management and leadership team, supervising the development of the company’s business. – Appointments: The General Meeting or, where applicable, the Board of Directors, within the powers and limits set out in law, is the competent body for appointing members of the Board of Directors. In addition to meeting the requirements set out in law, appointees shall demonstrate that they are known to be trustworthy and have the knowledge, reputation and professional references that are relevant to the performance of their duties. Directors shall be appointed for a maximum of four years, without prejudice to the renewal of their appointment or their re-election. – Removal: Directors shall be removed from their position at the end of their tenure and under any other circumstance
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set out in law. They must furthermore relinquish their seat in cases involving their incompatibility, veto, serious sanction or any breach of their obligations as directors. – Meetings Pursuant to article 20 of the Company Bylaws the Board of Directors will meet when it is required in the interest of the company and as necessary during the first three months of each year in order to approve the previous year’s financial statements, the management report and the proposed application of the result. Article 8 of the Board of Directors Regulation establishes the requirement to meet at least five times a year. During 2003 the Board met on a total of six occasions. – Resolutions: Resolutions are adopted by a simple majority of the directors in attendance (present or represented) at each session, except for legally established exceptions. – Duties of Directors: It is the duty of Directors to participate in the direction and monitoring of the company’s management in order to maximise the value of the company to the benefit of its shareholders. Each Director shall act with the proper care of a dedicated professional and loyal representative, guided by the interests of the company, with complete independence, defending and protecting the interests of all shareholders to the best of their abilities. By virtue of their appointment, Directors are under the following obligations: - To gather information and prepare properly for each meeting session. - To attend and participate actively in meetings and the decision-making process. - To avoid the occurrence of any conflict of interest and notify the Board of any potential conflict of interest, where applicable, through the Secretary. -
Not to undertake duties with competitor companies. Not to use company information for private purposes. Not to use the company’s business opportunities for their own interests. To maintain the confidentiality of any information received as a result of their appointment.
- To abstain in any votes on resolutions that may affect them. – The Chairman: In addition to the duties set out in law and in the Company Bylaws, the Chairman is the company’s most senior executive, and as such is responsible for the effective management of the company, though always in accordance with the decisions and criteria established by the Shareholders’ General Meeting and the Board of Directors.
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He/she is responsible for implementing the decisions taken by the company’s administrative body, which he/she permanently represents with the broadest powers. – The Secretary: It is the duty of the Secretary to the Board of Directors to exercise the powers attributed to him/her in law. Since the same person currently holds the role of both Secretary and Legal Counsel, he/she is responsible for ensuring that meetings are called and resolutions adopted by the company’s administrative body in a valid manner. In particular, he/she will advise members of the Board regarding the legality of their deliberations and any resolutions they adopt, and is responsible for observing the Internal Corporate Governance Regulations, as both formal and material guarantor of the principle of legality that governs the actions of the Board of Directors. The Secretary to the Board, as a specialized guarantor of the formal and material legality of the Board’s actions, has the full support of the Board in performing his/her duties entirely independently of any criteria or the constancy of his/her position. a.4) Remuneration and other rights The position of Director is paid, pursuant to the contents of Article 17 of the Company Bylaws. The amount paid to directors may consist of a fixed amount for attending the meetings agreed by the General Meeting on 17 June 1998, although not of equal amount for all directors, pursuant to the Bylaw provisions. The payments made during 2003 to all the members of the Board of Directors of Befesa Medio Ambiente totalled 114,4 thousand euro in the form of allocations and expenses. In addition, the payment made during 2003 to the Company’s senior management, this being understood to include the group of seven people who form part of the Chairman’s Office and the Directors of the Corporate Departments amounts in total to 1,131,8 thousands euro including both fixed and variable amounts. b) Committees formed by the Board of Directors. b.1) The Audit Committee. Pursuant to the provisions of the Financial System Reform Act, on 18 December 2002 Befesa’s Board of Directors established an Audit Committee and approved its Internal Regulations at its meeting on 24 April 2003, ratified by the General Shareholders’ Meeting on 24 June 2003 which, at the same time, approved the amendment of the company bylaws, including a new section, identified as “Third”, under heading III, relating to the regulation of the Audit Committee and the Appointments and Remuneration Committee, modifying the articles that comprise it and renumbering articles 22 to 28 inclusive, that were transposed with the same content to have the corresponding consecutive numbering.
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– Composition The current composition of the Audit Committee is as follows: Mr Manuel Blanco Losada. Chairman. Independent, non-executive director. ■ Mr Ignacio de las Cuevas Miaja. Member. Independent, non-executive director. ■
■
Mr Javier Molina Montes. Member. Executive Dominial.
■
Secretary and non-director: Mr Alfonso Castresana Alonso de Prado.
As a consequence, the Audit Committee is entirely composed of non-executive independent directors. Furthermore, the position of Chairman of the Committee must be held by a non-executive director, as set out in Article 2 of its Internal Regulations. – Duties The duties and powers of the Audit Committee are as follows: 1. To announce the Annual Financial Statements as well as the quarterly and half-yearly financial statements, which must be submitted to the bodies that regulate or supervise the markets, with reference to any internal control systems, the monitoring procedures followed and compliance through internal auditing processes, including where applicable, the accounting criteria applied. 2. To inform the Board of any change to the accounting criteria and any risks, whether on or off the balance sheet. 3. To inform the Shareholders’ General Meeting regarding any questions raised by shareholders on issues falling within its competence. 4. To propose the appointment of external Accounts Auditors to the Board of Directors, so that the latter may submit this proposal to the Shareholders’ General Meeting. 5. To supervise internal auditing services. The Committee shall have full access to the internal auditing process, and shall provide information during the process for the selection, appointment, renewal and removal of its director, and when his or her payment is being established, with the duty to provide information about this department’s budget. 6. To have knowledge of the company’s financial information procedure and its internal control systems. 7. To maintain relations with the company’s external auditors in order to remain informed regarding any matters that may place the independence of said auditors at risk, and regarding any other matters relating to the procedure followed in order to audit the company’s accounts. 8. To summon the Directors it considers appropriate to Committee meetings so that they may provide any information that the Audit Committee itself deems relevant. 9. To prepare an annual report on the activities of the Audit Committee, which must be included in the management report.
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– Organization and operation The Audit Committee shall meet as frequently as is necessary in order to carry out its duties, and at least once a quarter. The Audit Committee shall be considered validly formed when a majority of its members are present. Attendance may only be delegated to a non-executive Director. Its resolutions shall be validly adopted when voted for by a majority of the Committee members present or represented. In the event of a tie, the Chairman shall have the casting vote. b.2) Appointments and Remuneration Committee. The Appointments and Remuneration Committee was established by Befesa’s Board of Directors on 24 April 2003, and its Internal Regulations were approved at the same time. – Composition The Appointments and Remuneration Committee currently comprises the following members: ■ ■ ■ ■
Mr Ignacio de las Cuevas Miaja. Chairman and independent non-executive director. Mr Manuel Blanco Losada. Member and independent non-executive director. Mr Javier Molina Montes. Member. Executive Dominial. Secretary and non-director: Mr Asier Zarraonandia Ayo.
As a consequence, the Appointments and Remuneration Committee is entirely composed of non-executive directors. Furthermore, the position of Chairman of the Committee must be held by a non-executive director, as set out in Article 2 of its Internal Regulations. – Duties The duties and powers of the Appointments and Remuneration Committee are as follows: 1. To inform the Board of Directors regarding the appointment, re-election, dismissal and payment of members of the Board of Directors, and the positions held on these Boards, and to provide information on the general payment and incentive policy for members of these boards and for senior management. 2. To provide prior information regarding all the proposals prepared by the Board of Directors for the Shareholders’ General Meeting in relation to the appointment or removal of Directors, including cases of co-option by the Board of Directors itself. 3. To prepare an annual report on the activities of the Appointments and Remuneration Committee, which must be included in the management report.
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– Organization and operation. The Appointments and Remuneration Committee shall meet as frequently as is necessary in order to carry out the foregoing duties, and at least once every six months. The Appointments and Remuneration Committee shall be considered validly formed when a majority of its members are present. Attendance may only be delegated to a non-executive Director. Its resolutions shall be validly adopted when voted for by a majority of the Committee members present or represented. In the event of a tie, the Chairman shall have the casting vote. b.3) The Stock Exchange Internal Code of Conduct This was implemented in December 1999. It applies to all directors and to other employees on the basis of the activities they carry out and the information to which they have access. It establishes obligations regarding the protection of information, the duty of secrecy, relevant aspects relating to stages prior to decision-making and publication, establishing the procedure for the maintenance of internal and external confidentiality, the registration of share ownership and transactions relating to securities and conflicts of interest. The monitoring and supervising body is the Legal Counsel’s office.
V.- Intergroup and related transactions during 2003. a) Transactions with Significant Shareholders During 2003, the agreement reached in March 2001 between Abengoa S.A. and Befesa Servicios Corporativos S.A.U. (a wholly owned subsidiary of Befesa Medio Ambiente S.A.) remained in effect. This agreement concerned the provision of advisory services, collaboration and technical support, in exchange for which Abengoa receives between 0.5% and 1% of Befesa’s annual sales. This agreement was duly communicated to the CNMV on 22 March 2001, under file registration number 20,373. b) Transactions with Administrators and Directors During 2003 there were no civil or mercantile transactions between the company and its administrators or senior management.
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c) Significant Intragroup Transactions Befesa operates as the parent to a group of environmental service companies forming part of Abengoa, which in turn incorporates other business units that carry out activities related to Bioenergy, Information and Engineering Technologies and Industrial Construction. As such, Abengoa brings together a series of complementary businesses for an integral product that one or several Business Units may jointly offer to their clients. Therefore the distinct companies and Business Units share clients and act in unison, as appropriate, with one or other acting as parent. This produces cross sales between companies (intergroup transactions). Likewise, Abengoa, through a centralized treasury system, coordinates and manages the financial resources in the financed companies with resources generated by the cash flow cycle through the use of factoring and bank centralized payment of suppliers, allowing resources to be optimized. As a consequence of business transactions, in purely market terms and according to the conditions described above, (derived from ordinary business activities or from financial operations) the resulting balances appear on the balance sheets of the individual companies, although they disappear during the consolidation process of the financial statements.
V.- Risk Control Systems. Befesa’s risk control structure is based on two foundations: the shared management systems and the internal audit services, whose definitions, objectives, characteristics and functions are described below. 1. Shared Management Systems Definition The shared management systems fulfil the internal rules of the Company and its methodology for assessing and controlling risks and represent a common culture for the management of the businesses, sharing the accumulated knowledge and setting criteria and operational standards. Objectives – To identify possible risks that, although associated with all business, must be minimized and to be aware of them. – To optimize daily management, applying procedures designed for financial efficiency, reduction of expenses, homogenization and compatibility of information and management systems.
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– To encourage synergies and the creation of value of the distinct business units operating in a collaborative environment. – To reinforce the corporate identity, with all Befesa companies respecting their shared values. – To achieve growth via strategic development that pursues innovation and new options in the medium and long term. The systems cover the whole organization at three levels: – all business units and business lines; – all levels of responsibility; – all types of transactions. 2. Internal audit Definition The function of Internal Audit is structured around the Joint Audit Services that encompass the audit teams of the business units and corporate services that act in a co-ordinated way and are responsible to the Audit Committee of the Board of Directors. General Objectives – To anticipate the audit risks of the group’s companies, projects and activities, such as frauds, financial damages, inefficient operations and risks that may affect the healthy operation of the businesses in general. – To control the application of and promote the development of adequate and efficient management rules and procedures in accordance with the communal corporate management systems. – To create value for Befesa, promoting the construction of synergies and the monitoring of optimal management practices. – To co-ordinate the criteria and the focus of the external auditors’ work, pursuing the best efficiency and profitability of both functions.
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Specific objectives – To assess the audit risk of Befesa’s companies and projects in accordance with an objective procedure. – To define various types of standard audit and internal control tasks in order to carry out the corresponding Work Plans with the appropriate scope for each situation. This classification which is linked to the Audit Risk Assessment, determines the Work Plans to be used and implies an appropriate type of recommendation and report and should therefore be used explicitly in these documents. – To steer and co-ordinate the planning process for audit and internal control work in the companies and business units, to define a notification procedure for these tasks and communication with the affected parties and to establish a method of coding these tasks for their adequate control and monitoring. – To define the communication process of each audit task’s results, the people that are impacted and the format of the documents in which they appear. – To review the application of the plans, the adequate implementation and supervision of the tasks, the timely distribution of the results and the monitoring of the recommendations and their corresponding implementation. Audit Committee Pursuant to Article 47 of Act 44/2002 of 22 December of the Financial System Reform measures, Befesa’s Board of Directors appointed an Audit Committee on 18 December 2002, that includes in its functions the “supervision of the internal audit services” and the “understanding of the financial reporting process and the company’s internal control systems”. The Corporate Internal Audit manager systematically reports to this committee in relation to his own responsibilities of: – the Annual Internal Audit Plan and its degree of compliance; – the level of implementation of the issued recommendations; – a sufficient description of the principle areas reviewed and the most significant conclusions; – other more detailed explanations that the Audit Committee may require.
VI. Professional Code of Conduct The Professional Code of Conduct was established during 2003 and incorporates the fundamental values that must govern the actions of all Befesa employees, regardless of their position or area of responsibility. The integrity of their professional conduct, the strict observance of the law, professional care, confidentiality and quality make up the culture of Befesa and define its corporate identity today.
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These principles, indicated below, constitute Befesa’s Code of Ethics. The organization, in all its formats, must encourage their promotion and application, as well as establish the control and supervision mechanisms that guarantee their correct application and renewal. 1. Integrity Honesty in the execution of professional duties is a fundamental part of Befesa’s identity and must be evident in all its employees’ actions. From integrity comes credibility from clients, suppliers, shareholders and other associated parties and this creates value in itself for the employee and for the organization as a whole. 2. Legality Operating within the law is an obligation of the organization and its employees. The law ensures the safety and security of company actions and reduces business risks. Any conduct, which involves breaking the law is expressly and strictly forbidden. In the event of any doubt regarding the legality of an action a corresponding enquiry must be made to the Legal Department. 3. Professional Care The concept of professionalism at Befesa is intimately linked to professional service in executing company activities and involvement in the business task being carried out. All actions carried out in the course of business activities must be governed by a spirit of professional responsibility and by the principles contained in the Code of Ethics. 4. Confidentiality The protection of Company information requires all employees to maintain strict control over company information, safeguarding documents in an appropriate manner and never supplying this information to any persons, internal or external, who are not authorized to have access to this information. In addition, clear guide policies are established in this regard concerning specific information which requires a high degree of confidentiality. 5. Quality Befesa is committed to quality in all its activities, both internally and externally. This is not the responsibility of a specific group of persons or senior management but affects all members of the organization in their daily activity.
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Befesa has specific quality standards which are the result of working with expertise, common sense, professional care, order and responsibility. 6. Corporate Culture and Common Management Systems Befesa values its corporate culture and Common Management Systems as key elements of the company. They define the way in which Befesa does business establishing a series of Obligatory Regulations. The following of these regulations is a source of profitability and security in carrying out Befesa’s activities.
VII. General Shareholders’ Meetings a) Rules of Operation Following the recommendation of the Special Commission for the Promotion of Transparency and Security in Financial Markets and Listed Companies, in March 2003 the Board of Directors drafted a structured and systematic regulation for the holding of shareholders’ meetings, that was subject to approval at the General Shareholders’ Meeting held on 24 June 2003, which unanimously approved the aforementioned regulation and which was notified to the CNMV on 26 June 2003. In addition to the provisions included in the Spanish Companies Act this regulation incorporates a basic set of rules for the good order and functioning of shareholders’ meetings guaranteeing the right to information, to attendance, to vote and the right to representation for shareholders at all times. In accordance with what is established under article 10 and subsequent articles of the company’s bylaws, there is no limitation on the shareholders’ right to vote based on the number of shares held. All shareholders that have their shareholding recorded in the Shareholding Register at least five days prior to the date on which the Meeting is to be held, may personally attend the Shareholders’ General Meetings without prejudice to the right to representation.
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b) Information on the last Shareholders’ General Meeting The Befesa Ordinary General Shareholders’ Meeting of 24 June 2003 was held with the assembly, presence or representation of 16 shareholders (5 present and 11 represented). The number of shares, present or represented, was 26,473,424, 97.64% of the total share capital (27,113,479 shares). The resolutions adopted, all by favourable vote of the whole of the share capital present or represented, were the following: 1. Approval of the Financial Statements of Befesa Medio Ambiente S.A. for 2002 comprising the Balance Sheet, Profit and Loss Account and Notes, the Management Report and the proposal for use of the year’s result. 2. Approval of the Group’s Consolidated Financial Statements comprising the Balance Sheet, Consolidated Profit and Loss Account and Notes and the Consolidated Management Report for 2002. 3. Amendment of the Company Bylaws, including a new section within Chapter III related to the regulation of the Audit Committee and the Appointments and Remuneration Committee and the consequent renumbering of the articles. The ratification of the Board of Directors' agreements relating to the establishment and regulation of the Audit Committee. 4. Appointment of Deloitte & Touche España S.L. as the Accounts Auditor for 2003, both for the approval of the Financial Statements and the Management Report of Befesa Medio Ambiente S.A. as well as the Consolidated Financial Statements and the Consolidated Management Report. 5. Approval of the Regulations of the General Shareholders' Meeting. 6. Authorization of the Board of Directors to carry out a widening of capital, on one or several occasions, up to the equivalent to 50% of the share capital at the time of authorization, within the applicable legal limits. 7. Authorization of the Board of Directors to issue bonds or other similar fixed income or equity securities within the applicable legal limits. 8. Authorization of the Board of Directors for the derived acquisition of the Company’s shares, either directly or through subsidiary or partly owned companies up to the maximum established under prevailing provisions. 9. Delegation to the Board of Directors and its Chairman, Vice Chairman and non-Director Secretary to formalize and carry out the adopted resolutions.
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Web (www.befesa.es)(www.befesa.com) The Company has its website at www.befesa.es and www.befesa.com. This site has been completed with new content especially incorporating the recommendations of the Aldama Report, the 26/2003 Act and M.O. 3722/2003. For the future notice of meetings, the Company will keep the information available on them updated for the purpose of supporting Shareholders’ rights to information, and therefore the right to vote, for equality purposes. Finally, with the regulatory and technical progress that has been established, the right to vote or to electronic delegation will be guaranteed under the protection of specific legal certainty.
VIII. Level of monitoring of the recommendations relating to corporate governance The company fills in the “report model on the governance of publicly listed companies” which was remitted to the Commission on 4 July 2003. In the measure by which the information contained in this form is less detailed and comprehensive than the current Corporate Governance Annual Report, we defer to it for the issues set out therein. Likewise, pursuant to the Ministerial Order of 22 December 1999, fulfilled by Circular 1/2000 of the CNMV relating to the commercial activity and future developments of listed companies assigned to the New Market segment, the company annually remits the relevant information required at the time of the notice of the Shareholders’ Ordinary General Meeting (6 June 2003).
IX. Information tools a) Web (www.befesa.es) (www.befesa.com). In relation to information tools, the Transparency Act established that listed companies must comply with the information obligations set out in the Companies Act by any technical, computer-based or telematic means. The recent Eco Order 3722/2003 of 26 December establishes the minimum content for the website of listed companies.
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In compliance with this Befesa has completed its website with new content and in particular, pursuant to the aforementioned Eco Order 3722/2003. At the date of preparing this report, Befesa is implementing a new company website, characterized on the one hand by a more direct, rapid and efficient on-screen presentation, and on the other hand, with an information content and documentation made available to the general public, focussed on three fundamental aspects: a) Commercial: the presentation of the company and its business groups, press news, newsletters etc. b) Legal: communications, relevant events, corporate governance internal regulations, etc. c) Economic: periodic reporting, financial statements, share price, etc. Since corporate governance, the rules that regulate it and the laws that govern it or recommend adherance to it are continually developing, it is necessary to assume and bear in mind at all times that the information available as well its actual distribution portal – the website – must be continually updated. b) Shareholder Service In order to establish a permanent contact with the company’s shareholders, a mail facility for supporting shareholders is available on the website (www.befesa.es) in order to establish transparent and smooth communication with them and allow timely access to the same and format information provided to institutional investors and guarantee their equal treatment. The distribution of true and reliable information relating to relevant events, press releases and the periodic financial-economic information are supervised in particular. c) Investor Relations With the same objective as the Shareholder Service but in relation to investors, the company has stock market analysts and an investor relations department whose duties include the design and implementation of the communication program with the national and international markets, in order to provide knowledge of the principal characteristics and strategic actions of the company.
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Audit and Control Committee I. Introduction. The year 2003 was the first full year in which the Audit Committee performed its functions in the Befesa Medio Ambiente Group (hereinafter, the Group or Befesa). This Activity Report is intended to inform the general public, and, more particularly, the shareholders of the activities the Group carries out in this area. Strengthening and efficiency in the development of the functions of the Board of Directors require the creation of specialized Commissions within the Board, in order to diversify the work and ensure that, in certain significant issues, the proposals and resolutions have been approved in advance by a specialized body that can filter and report on its decisions, in order to guarantee the objectivity and consideration given to its resolutions. The Audit Committee was, therefore, established as an informative and consultative body reporting to the Board of Directors. It is authorized to report on, supervise and propose certain actions relating to issues that fall within its area of competency. Befesa’s Audit Committee was created by a resolution adopted by the Board of Directors of Befesa Medio Ambiente at its meeting on the 18th December 2002, in order to meet the provisions relating to the Audit Committee in the Financial System Reform Act 44/2002 and the recommendations of what is known as the Aldama Report. Its Internal Regulations were approved by the Board of Directors on the 24th April 2003, and the General Shareholders’ Meeting on the 24th June 2003 modified its bye-laws as required, by regulating the Audit Committee under article 23. All these events were duly notified to the Securities and Stock Exchange Commission as relevant events. The composition of the Audit Committee, as approved by the Board of Directors of Befesa Medio Ambiente, S.A., on the 18th December 2002, is as follows: ■ D. ■ D.
166
Manuel Blanco Losada Chairman. Ignacio de las Cuevas Miaja
Independent non-executive Director. Member. Independent non-executive Director.
■ D.
Javier Molina Montes
Member. Dominial executive.
■ D.
Alfonso Castresana Alonso de Prado
Secretary non-director.
Annual Report 2003
During the year 2003, the Audit Committee met six times. We here-below explain the matters that fall within its competencies and the activities carried out during the year.
2. Audit Committee Internal Regime Regulations. ■
Composition and Appointment:
The Audit Committee Regulations establish that is shall be formed, at all times, by three Board Members, The majority of its members shall be non-executive as provided for in the aforementioned Act 44/2002. Appointment shall be for a maximum four-year period, renewable for further maximum periods of like duration. ■
Duties and Competencies:
The Audit Committee shall elect its Chairman from among its members who are non-executive Directors. Chairmanship will be taken in turns on an annual basis, by the non-executive Board Members that are part of the Committee, and at least one year must elapse before the re-election of the same Board Member as Chairman. The Secretary to the Board of Directors shall act as Committee Secretary. ■
Duties and Competencies:
The duties and competencies of the Audit Committee are as follows: 1. To inform on the Annual Accounts and on the six-monthly and quarterly Financial Statements which must be forwarded to the market regulatory or supervisory bodies, mentioning the internal control systems, the control of their monitoring and compliance therewith through the internal audit and, when appropriate, the accounting principles applied. 2. To inform the Board of any change in the accounting principles and the balance sheet and off-balance sheet risks. 3. To inform the General Shareholders’ Meeting on the issues raised thereat by the shareholders in relation to matters that fall within its competency. 4. To propose the appointment of the External Auditors to the Board of Directors, in order for the proposal to be put to the General Shareholders’ Meeting. 5. To supervise the Internal Audit services. The Committee shall have full access to the Internal Audit, and shall inform during the selection, appointing renewing and removing process of the manager thereof.
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6. To know the company’s financial information process and its internal control systems. 7. To maintain contacts with the external auditors in order to receive information on any issues that might jeopardize said auditors’ independence and/or any other issues related to the accounts auditing development process. 8. To call the Board Members it deems fit to, to attend the Committee meetings, so that they may be informed to the extent the Auditing Committee decides. 9. To prepare an annual report on the Audit Committee’s activities, which must be published together with the Annual Accounts for the year. ■
Meetings and Notice:
The Audit Committee shall meet as often as is necessary to perform the duties specified in the previous article, and at least, once every quarter. The meetings of a general nature shall be held at the company’s head office building. Nonetheless, its members may designate a different place for any specific meeting. The Audit Committee shall also meet whenever a meeting is called by the Chairman, at his own initiative or at the request of any of its members, who may, in any event, inform the Chairman of the advisability of including a certain issue on the Agenda of the following meeting. Sufficient notice must be given in advance, not less than three days, in writing, and the same shall include the Agenda. However, a meeting of the Audit Committee shall be valid when all its members are present and they agree to hold the meeting. ■
Quorum:
The quorum of the Audit Committee shall be considered valid when the majority of its members are present. Attendance may only be delegated to a non-executive Board Member. The resolutions shall be validly adopted when the majority of the Audit Committee members in attendance vote in favor. In the event of a tie, the Chairman shall have the casting vote.
3. Activities of the Audit Committee. The main activities to be submitted to the Audit Committee may be grouped in four different competency areas: 3.1. Verification of the economic-financial information 3.2. Supervision of the risk control system
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Annual Report 2003
3.3. Compliance with the Annual Internal Audit Plan 3.4. Monitoring the External Audit 3.1. Verification of the economic-financial information The Group’s financial information consists basically of the consolidated financial statements that are drawn up quarterly, and the full consolidated Accounts, drawn up annually. This information is prepared on the basis of the account reporting that all the Group companies are obliged to submit for this purpose. The information reported by each of the individual companies is verified by both the Group’s internal auditors and the external auditors, to ensure that the information is true and provides an accurate picture of the company. Befesa has made a significant effort to systemize the reporting systems and to restructuring its businesses to allow times to be economized and the reports required to be prepared as automatically as possible. This is one of the Group’s permanent objectives, which will enable a constant reduction in the times required to present the Group’s financial information. The Audit Committee’s duties include the verification of the economic-financial information prepared by the Group, prior to it being presented to Befesa Medio Ambiente’s Board of Directors and to the regulatory bodies of the Securities and Stock Exchange Commission (CNMV). Once the above requirements have been met, this information is made public for the stock market and for the financial institutions. 3.2. Supervision of the risk control system Befesa’s risk control system is founded on two pillars: the common Management Systems and the Internal Audit Services, the definitions, objectives, characteristics and functions of which are explained here-below. Befesa’s Common Management Systems develop the company’s internal rules and the risk assessment and control method and represent a culture that is common in the management of Befesa’s businesses, sharing accumulated knowledge and setting criteria and action guidelines. Their objectives are described here-below: – To identify possible risks, which, although any business involves them, we must try to be aware of and attenuate.
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- To optimize day-to-day management, applying procedures favoring financial efficiency, cost reduction, standardization and compatibility of information and management systems. - To promote synergies and the creation of value by Befesa’s different business units, working in an environment of collaboration. - To strengthen the corporate identity, with all Befesa’s companies respecting their shared values. - To attain growth through strategic development that pursues innovation and new options in the medium and long-term. The Systems cover the entire organization at three levels: – all the areas of activity – all responsibility levels – all kinds of operations Compliance with what is established in the Common Management Systems is compulsory for the entire organization and, therefore, they must be made known to all its members. Any exceptions to these Systems must be made known to the corresponding person and appropriately authorized. The Common Management Systems are subjected to a continuous updating process which enables the incorporation of better practices in each of the fields of activity. The successive updatings to which they are subjected are immediately reported to the organization using computed media, which greatly facilitates the dissemination thereof. The Internal Audit Services are structured around Corporate Audit Management, with the audit teams operating in coordination with those responsible for internal control of the companies, reporting to the Audit Committee of the Board of Directors. From among their strategic objectives, we can highlight: – To prevent the audit risks of the Group’s Companies, Projects and Activities, such as frauds, capital losses, operating inefficiencies and, in general, risks that may affect the favorable progress of the businesses. – To Control the application and promote the development of appropriate and efficient management rules and procedures, in accordance with the Common Corporate Management Systems. – To create value for Befesa, by promoting the building of synergies and the monitoring of optimum management practices. – To coordinate the criteria and focuses of the work with the external auditors, pursuing the greatest efficiency and profitability of both functions.
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Therefore, the Internal Audit Services operate with specific objectives: – To assess the Audit Risk of Befesa’s Companies and Projects, in accordance with an objective procedure. – To define standard types of Internal Audit and Control work, in order to develop the corresponding Work Plans with the scope appropriate to each situation. This typology is linked to Audit Risk Assessment and determines the Work Plans to be used and involves an appropriate type of Recommendations and Reports, meaning that they should therefore be used explicitly in said documents. – To guide and coordinate the internal audit and control work planning process of the Business units and the Companies, to define a procedure for notification of said work and communication with the parties involved and establish a coding system for the work so that it can be appropriately controlled and monitored. – To define the process for communicating the results of each piece of audit work, the persons affected and the format of the documents in which it materializes. – To review the application of the plans, the appropriate performance and supervision of the work, the prompt distribution of the results and the implementation thereof. The main objective is the control and reduction of audit risk, with this being understood to be any risk that affects the business, susceptible to being estimated, assessed and controlled by Management. Each Befesa activity, project and company must be subjected to a preliminary audit risk assessment that allows appropriate planning of the reviews to be performed. This risk estimate must follow objective criteria common to all the Group, and will be the responsibility of the Internal Audit and Control Department. Befesa’s main tool for risk prevention and control, as well as for efficient procedure monitoring, is the Common Management System. The review of its application, implementation and development is a priority objective of the audit function, contributing not only the review facets, but also promotional and educational aspects, with a view to their being systematically employed by all the Group personnel. In relation to the above, the Internal Audit and Control function should exceed a mere supervisory approach and, without decreasing the inspection and review activity, should actively promote improvements with immediate repercussions on the optimization of processes and businesses, the obtaining of synergies and, in short, the creation of value for Befesa. Both the approach to the work, and its planning, performance, documentation, programs and notifications of the results thereof must govern the coordination with the external auditors, so that the work of the two functions is not duplicated and Befesa’s internal audit and control procedures are validated and may be deemed to be adequate audit evidence to support the external auditor in his opinion.
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In order to facilitate this objective, a standardization of all the work cycles and documentation that contribute to the consistency of the work of Befesa’s internal auditors will be fomented. The external auditors must adopt an active attitude to improving the Group’s controls and procedures, promoting the Internal Control Memorandum (issued upon the conclusion of each job, with specific recommendations by area) as an end product of the audit work with great value for Befesa. The external auditors may perform internal audit functions when there are no Befesa resources available. In such cases, the work and not the responsibility will be delegated. During the course of these reviews they will, in principle, apply the Befesa Internal Audit and Control approach and work method and, only subsidiarily, that of their own firms. Following the doctrine of The Institute of Internal Auditors and its Spanish branch, Instituto de Auditores Internos, the ultimate purpose of this structure is to provide Befesa’s Management and that of each of its Business Units with an extra “control” flow of information, running parallel to the normal hierarchical flow, but with permanent horizontal information channels between each one of said hierarchical levels of the Business Units and Companies and their corresponding Internal Audit Services, applying clear and transparent criteria and safeguarding the confidential information involved. The Internal Audit and Control Standard sets out, in detail, by means of a Manual, the functioning of the Group’s Internal Audit activities. The Audit Committee’s duties include “to supervise the internal audit services· and “know the company’s financial information process and internal control systems”. The person responsible for Corporate Internal Audit informs the Committee systematically in relation to the Corporate Audit’s activities, of: – the Annual Internal Audit Plan and the extent to which it is met; – the implementation level of the recommendations issued; – an adequate description of the main areas reviewed and the most significant conclusions; – any other more detailed explanations that the Audit Committee may require. 3.3. Compliance with the Annual Internal Audit Plan The Annual Internal Audit plan is drawn up each year and its scope is determined by: – the assessment of the risk of the different companies, areas and projects – the circumstances in each one of them at any given moment – and the Audit Committee requirements
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Annual Report 2003
The assessment of the audit risk is made for each project, company and business unit. In this respect, audit risk is defined as any possible event that might have a negative effect on the business, such as fraud, capital losses or operating inefficiencies. The risk assessment enables us to discover the areas on which we should focus our attention and work. Planning seeks to guarantee that the risk areas identified will be covered by work that mitigates or eliminates the risks and allows them to be adequately identified, controlled and monitored. The result of said planning is the Annual Internal Audit Plan. The Annual Plan establishes the types of work to be performed and the scope of each one of them. Depending on the proposed scope, the company’s general reviews, reviews of specific areas, reviews of special procedures or works are established. The Annual Plan is continually monitored by the Audit Committee, which is informed systematically on both the progress thereof and the results obtained in the reviews carried out. For each of the tasks planned, once the field work has been performed, recommendations are identified that imply, not only the application of both legal and internal regulations, but also that the best management practices in the pertinent area of activity are incorporated. Said recommendations are classified as major or minor, depending on the importance of the area affected or if it were the case, the economic impact they imply. In the 2003 financial year, a total of 37 tasks were performed. The Annual Audit Plan established 36 tasks for the year and thus, compliance was 103%. As a consequence of these tasks, 30 major recommendations have been issued, of which 21 have been implemented to-date, while the remainder are in the process of being implemented by the different companies. 3.4. Monitoring the External Audit: The Audit Committee is responsible for supervising the results of the external auditors’ work. For this purpose, it is promptly informed of their conclusions, and of the anomalies detected in the course of their reviews. The external auditor must attend the Audit Committee meeting when required to do so, in order to inform on the area of his competencies, mainly related to:
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Audit and Control Committee’s Report
The review of the financial statements of the consolidated group and its companies, and the issuance of an audit opinion thereon.
■
Although the scope of the opinion is the financial statements as of the 31st December each year, the work performed by the auditors in each company includes the review of a previous accounting period end, which is usually that of the third quarter of the financial year (September), in order to anticipate any significant issues or operations that have arisen up to that date. ■
Assessment of the Internal Controls.
The advanced approach to auditing practice considers this to be part of an auditor’s work, since this approach places more emphasis on the assessments of the company’s controls than on the substantive evidence. The external auditors must issue an internal control report, in addition to their standard professional opinion, which is the basis of their presentation to the Audit Committee. ■
Matters of special interest:
For certain specific matters or operations, an advancement of the Auditors’ opinion on the accounting criteria adopted by the company is required in order to reach a prior agreement of its accounting principles. Moreover, the Audit Committee’s duties include ensuring the independence of the external auditor and proposing the appointment or renewal thereof to the Board of Directors. The statutory auditor of Befesa Medio Ambiente, S.A. and of its consolidated accounts is the firm Deloitte, which is also the group’s main auditor. In addition, other audit firms also provide their services in small companies, in Spain and abroad, although their scope cannot be considered significant. Befesa’s policy, in general, is for all the group companies to be subjected to an external audit, even if they are not obliged to be upon them not meeting the necessary requirements. The global amount of the fees agreed with the external auditors for the audit of the year 2003 and its distribution is shown in the chart here-below:
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Annual Report 2003
Firms
Fees
Companies
(thousands of euro)
Deloitte Otras firmas
264.4 26.0
23 4
290.4
29
4. Monitoring of special projects Either in the course of ordinary audit work or because of new circumstances, situations that require special treatment or monitoring may exist. The Audit Committee is empowered to request work to be carried out to meet specific objectives, or this work might arise at the initiative of Befesa Management or the Internal Audit Department itself. In these cases, the Audit Committee will be especially informed of said situations, the measures being applied and the results obtained. They may include, among others: ■
Significant risks:
When, due to the circumstances of a project, or because of market changes, an important factor in the creation of profit may be at risk, this must be handled separately and the Audit Committee systematically informed of its evolution. ■
Frauds:
Likewise, when, either due to an ordinary audit procedure or to specific information, a potential risk of fraud is known, a special review must be made and monitored and the Committee systematically informed. ■
Changes in legislation:
The existence of changes in the accounting or tax legislation may cause significant impacts on the financial statements of Befesa and its group of companies and they must be in a position to anticipate this. Therefore, in these cases, special projects will be established in order to monitor the adaptation to and impact of the changes in detail. The Audit Committee shall be promptly informed and its direct intervention in the matter may be required.
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Audit and Control Committee’s Report
At present, there is only one project of this nature in progress and, given its importance and its heavy impact on the financial statements of Befesa, together with the period foreseen for implementation, will be specially monitored in the financial year 2004. It is the adaptation of Befesa’s financial statements to IAS (International Accounting Standards). Although the adaptation to International Accounting Standards will not be compulsory for listed groups in Spain until financial years that commence later than 1st January 2005, Befesa wishes to know the impact this change will have on its financial statements and be in a position to issue converted financial statements at the close of the 2004 financial year. For this purpose, the Project of adaptation to IAS has begun, with the collaboration of the group’s auditors and an important assignation of internal resources. This Project, which includes a first phase of diagnosis, a second phase of detailed analysis of impacts and a final phase of implementing the changes in the information systems, has already commenced and is forecast to conclude during the third quarter of 2004.
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Appointments and Remuneration Committee Report The Appointments and Remuneration Committee was established by Befesa Medio Ambiente’s Board of Directors on the 24th April 2004, and its Internal Regulations were approved at the same time. Composition The composition of the Committee is as follows: ■
Ignacio de las Cuevas Miaja
Chairman. Independent non-executive director.
■
Manuel Blanco Losada
Member. Independent non-executive director.
Javier Molina Montes ■ Asier Zarraonandia Ayo ■
Member. Dominial executive. Secretary, non-director.
As a consequence, the Appointments and Remuneration Committee includes two non-executive directors, in compliance with the requirements established in the Financial System Reform Act. Likewise, the position of Chairman is held by a non-executive director as established in article 2 of its Internal Regulations. Duties The duties and powers of the Appointments and Remuneration Committee are as follows: 1. To inform the Board of Directors regarding the appointment, re-election, dismissal and payment of Board members and the positions they hold, as well of the general remuneration and incentive policy for board members and senior management. 2. To provide prior information regarding all the proposals prepared by the Board of Directors for the General Shareholders’ Meeting in relation to the appointment or removal of Directors, even in cases of co-option by the Board of Directors itself. 3. To elaborate an annual report on the activities of the Appointments and Remuneration Committee, which must be included in the management report.
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Appointments and Remunerations Committee’s Report
Meetings The Appointments and Remuneration Committee shall meet as frequently as is necessary in order to carry out the aforementioned duties, and at least once every six months. During the year 2003, the financial year of its establishment, the Committee met once. Organization and operation. The Committee shall be considered validly formed when the majority of its members are in attendance. Attendance may only be delegated to a non-executive Director. Its resolutions shall be validly adopted when the majority of its members, present or represented, vote in their favor. In the event of a tie, the Chairman shall have the casting vote. The Company’s Remuneration Manager attends the Committee Meetings as Secretary to the Board. Information presented to the Committee. ■
Company’s remuneration systems and criteria.
■
Remuneration tracking and evolution. Revision of the remuneration of the Board of Director members and of the Company’s Senior Management.
■
Preparation of the corresponding information for its inclusion in the Annual Accounts. ■ Information on the resignation from office as board members of the company Terraire, S.A. and ■
of Mr. Jesús Pérez Rodríguez.
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Management Structure
Management Structure
Postal Address
Zip Code - City
Phone - e-mail
Fax
Befesa Medio Ambiente, S.A. • Chairman • Vice-chairman
Javier Molina Montes Manuel Barrenechea Guimón
Fortuny, 18
28010 - Madrid
91.308.40.44
[email protected]
91.310.50.39
Corporate Services • Legal Counsel • Consolidation and Auditing • Financial • Information and Management Systems • Human Resources
Antonio Marín Hita Asier Zarraonandía Ayo Eduardo Martín Onorato Ignacio García Hernández Álvaro Polo Guerrero
Buen Pastor s/nº
48903 Luchana-Baracaldo (Vizcaya)
94.497.05.33
[email protected]
94.497.02.40
Aluminum Waste Recycling • Commercial • Production • Trading • Technology and Machinery Sales • Economic - Financial • Administ. and Management Control • Quality, Safety and Environment
Federico Barredo Ardanza Alvaro Aguirre Lipperheide José Ángel Corral Ruiz Fernando Zufía Sustacha Francisco Saez de Tejada Picornell Asier Zarraonandía Ayo Juan Carlos Torres Romero Oskar de Diego Rodríguez
Ctra. Luchana-Asúa, 13
48950 - Erandio (Vizcaya)
94.453.02.00
[email protected]
94.453.00.97
Befesa Aluminio Bilbao, S.L.
Federico Barredo Ardanza
Ctra. Luchana-Asúa, 13
48950 - Erandio (Vizcaya)
94.453.02.00
[email protected]
94.453.00.97
Befesa Aluminio Valladolid, S.A.
Pablo Núñez Ortega
Ctra. de Cabezón, s/n
47011 - Valladolid
983.25 06.00
[email protected]
983.25.64.99
Galdán, S.A.
Pedro Ugartemendia Merino
Pol. Ind. Ibarrea
31800 - Alsasua (Navarra)
948.56.36.75
[email protected]
948.56.31.11
Deydesa, 2000, S.L.
Ion Olaeta Bolinaga
Pol.Ind. Gojain - San Antolín, 6.
01170 - Legutiano (Villarreal de Álava)
945.46.54.12
[email protected]
945.46.54.55
Intersplav
Victor Ivanovich Boldenkov
Luganskaya Oblast
94800 Sverdlovsk (Ukraine)
380.643.47.53.55
[email protected]
380.642.50.13.40
Donsplav
Alexander Shevelev
Yugosslavskaya Str. Nº 28
83008 Donetsk ( Ukraine)
380.622.53.47.69
[email protected]
380.622.53.30.63
Salt Slags Recycling • Assistant Manager • Economic - Financial
Manuel Barrenechea Guimón Carlos Ruiz de Veye Asier Zarraonandía Ayo
Ctra. Luchana-Asúa, 13
48950 Asúa-Erandio (Vizcaya)
94.453.02.00
[email protected]
94.453.00.97
Befesa Escorias Salinas, S.A.
Rubén Calderón Alonso
Ctra. de Cabezón, s/n
47011 - Valldolid
983.26.40.08
[email protected]
983.26.40.77
Befesa Salt Slags, Ltd.
Adrian Platt
Fenns Bank Whitchurch
Shropshire SY13 3PA (England)
44.1948.78.04.41
[email protected]
44.1948.78.05.09
Zinc and Desulfurization Waste Recycling • Commercial • Purchases and Plant Administration • Economic - Financial • Technical
Manuel Barrenechea Guimón Ana Martínez de Urbina Iñigo Urcelay González Isabel Herrero Sangrador Javier Vallejo Ochoa de Alda
Ctra. Bilbao-Plencia, 21
48950 Asúa-Erandio (Vizcaya)
94.453.50.30
[email protected]
94.453.33.80
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Annual Report 2003
Postal Address
Zip Code - City
Phone - e-mail
Fax
Befesa Zinc Aser, S.A.
Manuel Barrenechea Guimón
Ctra. Bilbao-Plencia, 21
48950 Asúa - Erandio (Vizcaya)
94.453.50.30
[email protected]
94.453.33.80
Befesa Zinc Sondika, S.A.
Joseba Arróspide Ercoreca
Sangroniz Bidea, 24
48150 - Sondika (Vizcaya)
94.471.14.45
[email protected]
94.453.28.53
Befesa Zinc Amorebieta, S.A.
Joseba Arróspide Ercoreca
Barrio Euba, s/n
48340 - Amorebieta (Vizcaya)
94.673.09.30
[email protected]
94.673.08.00
Befesa Desulfuración, S.A.
Manuel Barrenechea Guimón
Buen Pastor s/n
48903 - Luchana-Barakaldo (Vizcaya)
94.497.00.66
[email protected]
94.497.02.40
Industrial Waste Management • Comercial • Marketing and Systems • Quality and Environment
José Francisco Núñez Martín Antonio Rodriguez Mendiola Ana García Zamarreño Ana Yañez Gutiérrez
Fortuny, 18
28010 - Madrid
91.308.40.44
[email protected]
91.310.50.39
• Financial
Samuel Sanz de Benito
Pol. Ind. Los Olivos - Atlántico, 23
28864 - Ajalvir (Madrid)
91.884.49.73
• Industrial • Production • Business Development • Operations • Engineering • Southern Region
Santiago Ortiz Domínguez Leopoldo Sánchez del Río Castiello Alberto Carmona Bosch Iñigo Molina Montes Javier González del Valle Arturo Rodríguez Córdoba
Avda. de la Buhaira, 2
41018 - Seville
91.884.46.72
[email protected] 954.93.70.00
[email protected]
• Eastern Region
Apolinar Abascal Montes
Ctra. Nal. 343, km.9, Valle de Escombreras
30350-Cartagena (Murcia)
968.16.70.01
[email protected]
968.16.70.22
Ajalvir Center (1) • Commercial Delegate • Operation Manager
Alvaro de Rojas Marín Ángel Peralta Benito
Pol. Ind. Los Olivos - Atlántico, 23
28864 - Ajalvir (Madrid)
91.884.46.72
[email protected]
91.884.49.73
Ajalvir Center (2) Non-Hazardous • Operation Manager
Domingo Blanco Jiménez
Pol. Ind. Los Olivos - Atlántico, 23
28864 - Ajalvir (Madrid)
91.884.46.72
[email protected]
91.884.49.73
Alovera Center • Operation Manager
Ángel Peralta Benito
P.I. Alovera, Sector 3-5 naves 2 y 3
19208 Alovera (Guadalajara)
949.27.55.02
949.27.08.25
Alfindén Center • Operation Manager • Commercial Delegate
Iván Escribano Gil Roberto Caudevilla Marcén
Polígono Malpica-Alfindén c/Almendro - Nave 75/81
50171 La Puebla de Alfindén (Zaragoza)
976.10.72.11
[email protected]
976.10.72.17
Paterna Center • Operation Manager
José Manuel Prieto Iarejo
Ciudad de Barcelona, 21
46988 - Paterna (Valencia)
96.134.08.80
96.132.25.61
Cartagena Center • Commercial Delegate • Operation Manager
Apolinar Abascal Montes José Ruiz-Seiquer Verdú Rafael Miró Baldó
Ctra. Nal. 343, km.9, Valle de Escombreras
30350-Cartagena (Murcia)
968.16.70.01
[email protected]
968.16.70.22
Branch Office Catalonia • Commercial Delegate
Pedro Malapeira Gas
Gorina, 4 - 1 - 4ª
08190 Sant Cugat del Vallés (Barcelona)
93.589.57.00
93.589.58.20
95.493.70.24
181
Management Structure
Postal Address
Zip Code - City
Phone - e-mail
Fax
Rimacor, Lucena and Villa del Río • Operation Manager
Eduardo Forcada Delgado
Tomás de Aquino, 4 - 1º
11004 Cordoba
957.76.19.11
[email protected]
95.776.19.11
Alianza Befesa Egmasa, S.L. (Albega)
Carmen Figal Fernández
Pol. Ind. Nuevo Puerto
21810 Palos de la Frontera (Huelva)
959.36.93.46
959.36.93.30
Portuguese Branch Office • Commercial Delegate
Rui Justino
Rua Alexandre Herculano
1150-005 Lisbon
351.21.355.11.12
[email protected]
351.21.355.15.05
Industrial and Hydrocarbon Cleaning
Alfredo Velasco Erquicia
Fortuny, 18
28010 - Madrid
91.308.40.44
[email protected]
91.310.50.39
Pol. Ind. Ibarzaharra Pabellones 9 y 10
48510 Trapagarán (Vizcaya)
94.496.73.00
94.495.00.15
Villa de Madrid, 26 - A Pol. Ind. Fuente del Jarro
46988 Paterna (Valencia)
96.134.50.33
96.134.16.50
Befesa Tratamientos y Limpiezas Industriales, S.L. • General Manager • Commercial Manager • Production Manager • Corporate Development Manager
Alfredo Velasco Erquicia Ignacio Muñoz Donat Ponciano Ibarreche Altube Ignacio Muñoz Donat
Asturias Center • Commercial Delegate
José Ángel Peruyera Fernández
Área Ind. de Tabaza, Parcela 12 A 33469 Carreño (Asturias)
98.551.40.50
98.551.40.50
Badajoz Center • Commercial Delegate
Manuel García Prenado
Pol. Ind. Semillero de Empresas, 2 06490 Puebla de la Calzada (Badajoz)
924.45.31.72
924.45.70.71
Barcelona Center • Commercial Delegate
Miguel Neiro Funes
Mercuri, 14 - 2ª pl. - pta. 3
08940 Cornellá de Llobregat (Barcelona)
93.377.31.34
93.377.51.04
Bilbao Center • Commercial Delegate
Luis Menéndez Castañón
Pol. Ind. Ibarzaharra, Pab. 9-10
48510 Trapagarán (Vizcaya)
94.496.73.00
94.495.00.15
Cádiz Center • Commercial Delegate
Antonio Jesús Bosch Cué
Pol. Ind. Las Salinas de Levante Av. Ing. Marcos Seguin, Parcela 22
11500 Puerto Santa María (Cadiz)
956.54.37.76
956.54.36.81
Cantabria Center • Commercial Delegate
Javier Navedo Camazón
Pol. Ind. De guarnizo, Parcela 50
39611 Guarnizo (Cantabria)
942.55.80.42
942.54.05.18
Madrid Center • Commercial Delegate
José Manuel García Arribas
Ctra. Torrejón-Ajalvir ( C/ Los chicos, s/n Pol. Ind. Ramarga
28864 Ajalvir (Madrid)
91.887.40.13
91.884.42.46
Tarragona Center • Commercial Delegate
Miguel Neiro Funes
Ctra. Tarragona-Lleida, km. 7,200
43152 Perafort (Tarragona)
977.62.51.11
977.61.02.81
Valencia Center • Commercial Delegate
Pascual Sánchez García
Villa de Madrid, 26 - A Pol. Ind. Fuente del Jarro
46988 Paterna (Valencia)
96.134.50.33
96.134.16.50
182
Annual Report 2003
Postal Address
Zip Code - City
Phone - e-mail
Fax
Zaragoza Center • Commercial Delegate
Carlos Romeu Catalán
Pol. Ind. Malpica Alfindén Calle L, nº 12
50171 Puebla de Alfindén (Zaragoza)
976.10.75.73
976.10.75.69
Befesa Plásticos, S.L.
Luis Luengo Morales
Pol. Ind. Las Salinas c/Salinas, s/n
30840 - Alhama de Murcia (Murcia)
968.63.22.21
[email protected]
968.63.22.33
Befesa Gestión PCB, S.A.
Manuel Roca Blanco
Polig. Ind. Cabezo Beaza Avda. de Bruselas, 148 - 149
30395-Cartagena (Murcia)
968.32.06.21
[email protected]
968.12.21.61
Befesa Técnicas del Suelo, S.A.
Francisco Travesa Aijón
Carretera Molins de Rei a Sabadell km. 13,5 - Pol. Ind. La Bastida - Nave 18
08191 Rubi (Barcelona)
93.586.09.42
93.697.81.36
Environmental Engineering
José Marañón Martín
Avda. de la Buhaira, 2
41018 Seville
954.93.71.11
[email protected]
954.93.70.18
Befesa Contrucción y Tecnología Ambiental, S.A. • International • Economic - Financial • SUW Exploitation
José Marañón Martín Avda. de la Buhaira, 2 José Antonio Membiela Martínez José María Caballos Cabrera Germán Ayora López
41018 - Seville
954.93.71.11
[email protected]
954.93.70.18
Central Region Branch Office • Delegate
Juan Ignacio García de Miguel
Fernando el Santo, 27 - bajo A
28010 Madrid
91.702.17.31
91.319.65.76
Northern Region Branch Office • Delegate
Rafael González García
Ctra. Villaviciosa, 40
33204 Gijon (Asturias)
98.513.17.18
98.513.19.87
Catalonia Region Branch Office • Delegate
Juan Palou Casamira
Entenza, 95 - 6ª planta
08015 Barcelona
93.289.01.91
93.325.07.61
Valencia Region Branch Office • Delegate
Luis García Póveda
Játiva, 15 - Pta. 20
46002 Valencia
96.352.61.45
96.352.61.45
Murcia Region Branch Office • Delegate
Pedro Rodríguez Hernández
Molina del Segura, 5 bloq. 8 4º A
30007 Murcia
968.24.86.94
968.27.11.69
Befesa Fluidos, S.A.
Rafael González García
Ctra. Villaviciosa, 40
33204 - Gijon (Asturias)
98.513.17.18
[email protected]
98.513.19.87
Latin America
Juan Abaurre Llorente
Avda. de la Buhaira, 2
41018 - Seville
95.493.71.11
954.93.70.18
Befesa Argentina, S.A.
José Giménez Burló
Paseo de Colón, 728 - piso 10
C1063ACU Ciudad Autónoma de Buenos Aires (Argentina)
5411.40.00.79.00
[email protected]
5411.40.00.79.77
Befesa Perú, S.A.
Ignacio Baena Blázquez Percy Irribarren Ibáñez
Canaval y Moreyra 654, piso 7
San Isidro - Lima (Peru)
511.224.54.89
[email protected]
511.225.20.66
Befesa México, S.A. de C.V.
Norberto del Barrio Brun
Bahía de Santa Bárbara 174 Col. Verónica Anzures
11300 Mexico D.F. (Mexico)
52.55.52.62.71.00
[email protected]
52.55.52.62.71.40
Befesa Brasil, S.A.
Rogério Ribeiro Abreu dos Santos
Av. Marechal Câmara 160, salas 1833/1834
20020-080 Rio de Janeiro (Brazil)
5521.2217.3300
[email protected]
5521.2217.3337
Las Araucarias 9130
Santiago (Chile)
56.2.461.49.00
56.2.461.49.90
Befesa Chile Gestión Ambiental Limitada Alejandro Conget Inchausti Miguel Murua Saavedra
183
Fortuny 18 – bajo A 28010 Madrid (España) Tel.: (+34) 91 308 40 44 Fax: (+34) 91 310 50 39
Buen Pastor s/n 48903 Luchana – Barakaldo Vizcaya (España) Tel.: (+34) 94 497 00 66 Fax: (+34) 94 497 02 40
E-mail:
[email protected] www.befesa.es
