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MYTILINEOS GROUP
SUSTAINABILITY REPORT 2011
8
Metallurgy and Mining
Starting in 2005 with the acquisition of “Aluminium
of Greece”, MYTILINEOS Group accorded
strategic importance to the development and
competitiveness of its metallurgical branch. Today,
ALUMINIUM S.A. is the largest vertically integrated
alumina and aluminium producer in the EU and one
of the most robustly growing industrial businesses
in crisis-stricken Greece. Together with DELPHI-
DISTOMON S.A., the international business activity
of ALUMINIUM is a key growth driver for both the
national economy and the Greek periphery.
From 1960 to this day, ALUMINIUM remains
one of the strongest pillars of Greek industry,
with an annual production capacity estimated at
1,100,000 tons of alumina and 180,000 tons
of aluminium for 2013. The company’s industrial
complex in Ag. Nikolaos, Viotia, employs 1,100
people directly and more than 400 indirectly, and
applies production and trading practices which
only the world’s top metallurgical industries have
available.
2011 was a difficult year for the metallurgy sector
globally, and particularly so for ALUMINIUM, which
also had to deal with the additional challenges that
resulted from Greece’s deep recession. Faced with
these negative developments, the Management of
the Company took the initiative to plan a strategic
growth programme.
The “FUTURE” programme, as it was named,
concerns the implementation of a new, ambitious
plan to curtail operational costs, which also covers
the preliminary agreement for the acquisition of
the S&B bauxite operations in Greece, with the
ultimate goal to improve the competitiveness of
the Group’s Metallurgy business activity sector for
the next twenty years. The “FUTURE” programme
covers 10 points, which the Company is addressing
in parallel, and is scheduled for completion at the
end of 2013.
DELPHI-DISTOMON is the second largest bauxite
producer in Greece and in Europe, with an annual
production of 650,000 tons. The company’s
mining sites, located in the Amfissa region, supply
bauxite to ALUMINIUM S.A. and employ around
100 people.
EPC Projects
METKA S.A. is the construction branch of
MYTILINEOS Group and an internationally
competitive player in the construction of large-
scale energy projects.
METKA was established in 1962, and is listed
on the Athens Exchange since 1972. Today,
the Company is Greece’s top EPC (Engineering-
Procurement-Construction) contractor, under-
taking and implementing turn-key projects from
design and supply through to construction. It
specialises primarily in the construction of power
plants (combined cycle, conventional thermal and
hydropower), and has achieved an unprecedented
penetration in developing markets abroad, in
parallel with carrying out projects in the markets of
Europe, Turkey, the Middle East, Asia and N. Africa.
It competes on an equal footing with the sector’s
global EPC giants for new projects and is already
established not only as one of the largest EPC
contractors in Europe and beyond but also as a
major Greek exporter. In 2011, METKA posted
a turnover in excess of €1 billion, up from €581
million in 2010, and has a signed backlog of more
than €1.7 billion.
Energy
During the last decade, MYTILINEOS Group has
evolved into the dominant independent energy
producer in Greece. Through strategic alliances
and an investment programme of €1 billion carried
out between 2007 and 2011, the Group is leading
the developments that are shaping Greece’s
energy map and the establishment of a sustainable
market which opens up positive prospects for the
Greek economy and the Greek enterprises.
Drawning on the synergies available through
METKA, the Group has now in place a vertically
integrated structure of operations in the energy
sector, ranging from the construction of power
plants to the injection of the electricity produced
into the Transmission Network. The Group has
also built a rapidly growing portfolio of energy
assets which in 2011 reached 1,200 MW from
thermal power plants and more than 500 MW from
energy assets in the sector of Renewable Energy
Sources (RES). PROTERGIA S.A. is the flagship
company of MYTILINEOS Group in the energy
sector, bringing under the same roof all energy
assets and activities of the Group.
The Company’s goals are to build and maintain a
dynamic and balanced portfolio of energy assets,
to enter the wholesale and retail electricity
markets and the market for CO
2
emissions trading,
and to expand in the future to the energy markets
of neighbouring countries. In 2011, PROTERGIA
completed the development and operation of
three thermal power plants with a total production
capacity of 1,200 MW, and three photovoltaic
plants with a total production capacity of 11.5
MW. The Company today is continuing with its
investments and is focusing primarily on the RES
sector, where it aims to have in operation a total of
400 MW from wind farms and photovoltaic parks
by 2015.
In 2010, the establishment of M&M GAS S.A.
signalled the dynamic partnership between the
MYTILINEOS Group and MOTOR OIL, and marked
the effective deregulation of the Greek market
for natural gas. The supply and trading of natural
gas (liquefied or non-liquefied) to cover the
energy requirements of the two partner Groups
demonstrated the financial benefits of an energy
solution which today the Greek market needs more
than ever before, while also helping to improve
significantly the competitiveness of both Groups.
Products, Markets and Services
