Huta Cynku "Miasteczko Śląskie" S.A.
Huta Cynku „Miasteczko Śląskie” zinc mill (HCM) is an enterprise operating on the market of non-ferrous metals. The company produces and sells rectified zinc of the Z1 and Z5 grade and zinc alloys. It also produces and sell refined lead of the Pb 985R, Pb 970R grades, Doore’s metal, refine cadmium and sulphur acid. Huta Cynku „Miasteczko Śląskie” accounts for 40% of the domestic production of both zinc and lead. The main customers of HCM are galvanising shops, alloy producers, battery manufacturers and trade intermediaries. The main suppliers of raw materials are mostly foreign entities. On the market on which HCM operates the price is of core importance as far as reaching competitive advantage is concerned. The zinc mill operating in the ISP technology (Imperial Smelting Process – simultaneous smelting of zinc and lead in a single device - shaft furnace. The core fuel in the electrolysis process is blast-furnace coke) bases its production on less expensive blast-furnace charges, frequently of such chemical composition which is not accepted by mills utilising the electrolysis method. That enables reduction of unit costs in the case of an ISP mill in the extent balancing its larger energy consumption in comparison with electrolysis. In the near future, HCM will probably extend the currently operating zinc rectification unit in order to produce 100% of the Z1 grade zinc, instead of the current volume of 50%. Thus the company will adjust its production to the changing market demand. In 2008, approximately 71% of the total volume of lead production will be allocated for battery and accumulator production, 12% for pigments. The strong growth of the automotive industry in India and China guarantees further increase in the demand for that metal. In Europe the company does not envisage significant changes as regards both zinc and lead consumption. Over the past few years the global demand for zinc has been growing at 5% annually, i.e. approximately 55 thousand tonnes per year. It is estimated that the global demand in 2008 will amount to almost 12 million ton, i.e. slightly above 5% in comparison with the previous year. Huta Cynku „Miasteczko Śląskie” exports 56.3% of its total sales volume.