member of csc group report 2015.pdfcoils (cr), galvanized steel coils (gi) and pre-painted steel...
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member of CSC Group
2015 Corporate
Social Responsibility Report
2015 Corporate
Social Responsibility Report
www.cscmalaysia.com
2015 Corporate
Social Responsibility Report
TABLE OF CONTENT
STATEMENT FROM GROUP MANAGING DIRECTOR
1.0 INTRODUCTION1.1 Overview1.2 Vision and Mission1.3 Core Values1.4 Organization Structure1.5 Our Business
2.0 OUR DRIVING FORCE2.1 Overview2.2 Employee Welfare and Fringe Bene�ts 2.2.1 Health Screening 2.2.2 Complimentary Meals2.3 Training and Development Opportunities 2.4 Employee Activity Committee (EAC) 2.4.1 Annual Dinner 2.4.2 Sport Activities
3.0 ENVIRONMENT, ENERGY, SAFETY AND HEALTH MANAGEMENT3.1 Overview 3.2 Environmental Sustainability 3.2.1 Environmental Monitoring Program 3.2.2 Environment Performance Indices 3.3 Scheduled Waste Management3.4 Biodiversity3.5 Energy Management 3.5.1 Energy Saving Activities 3.5.2 Electricity Consumption 3.5.3 Energy Utilization Performance3.6 Safety Performance 3.6.1 Injury Rate 3.6.2 Potential Occupational Risk 3.6.3 Loss Time Injury 3.6.4 Contractor Safety
4.0 MARKETING AND PRODUCT DEVELOPMENT4.1 Overview4.2 New Product Development 4.3 Product Marketing 4.4 MyHijau Certi�cation
5.0 CONTRIBUTION TO SOCIETY5.1 Overview5.2 Employee Engagement 5.3 Contribution to Local Communities 5.3.1 Disaster Relief 5.3.2 Visit to Orphanage Home 5.3.3 Contribution to Education 5.3.4 Contribution to Society for the Prevention of Cruelty to Animals (SPCA)
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STATEMENT FROM GROUP MANAGING DIRECTOR
Corporate Social Responsibility (CSR) is a corporation’s efforts in assessing and taking responsibility for its effects on environmental and social wellbeing. In 2015, we at CHB had demonstrated our commitment to the preservation of our environment and shared our experience with the public on areas that could be improved further.
Our commitment to CSR is comprehensive. We obtained the coveted MyHijau certi�cation on 17th February 2015 for our galvanized and coated steel products, which are also known as the Realzinc and Realcolor series of products respectively. The certi�cation validates that CHB has complied with the environmental criteria and does not produce any greenhouse gas during the production processes. The MyHijau product mark therefore enhances our product competitiveness in a consumer market which is becoming increasingly environmentally conscious.
As one of the players in the heavy industries, CHB highlights employee health and safety issues through continuous training and education. In addition, CHB continues to serve the community through several activities such as extending a helping hand to non-pro�t organizations and schools.
Through this report, we hope that our key audiences will see how dedicated we are to taking care of our environment, and see the approaches we have taken, as well as the challenges we have faced, to develop in a sustainable way.
Thank you.
Chen, Huo-Kun 陳火坤Group Managing Director 集團董事總經理
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1.0 INTRODUCTION
1.1 OVERVIEW
CSC Steel Holdings Berhad (CHB, formerly known as Ornasteel Holdings Berhad), a mid-stream �at steel manufacturer, is the subsidiary company of China Steel Corpo-ration (CSC), Taiwan. CHB was successfully listed in the Main Board of the Bursa Malaysia on 30th December 2004.
With the parent company at its helm, CSCM has strengthened its productivity as well as its competitiveness in both the domestic and international markets with the capital injection in upgrading equipment and expanding production lines, provid-ing technical support, and enhancing management performance. In recent years, CHB has actively broadened its market reach to other Asean and Oceania coun-tries. This move would help the CSC Group to further boost its presence in the South-east Asian steel markets.
CHB's main products include: Pickled and Oiled Steel Coils (PO), Cold Rolled Steel Coils (CR), Galvanized Steel Coils (GI) and Pre-Painted Steel Coils (PPGI). Its annual maximum production capacity is approximately 480,000 metric tons.
Pickled & Oiled Steel Coil (PO) Cold Rolled Steel Coil (CR)
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CHB continues to propel products upgrade as the production-based extension of the CSC Group. It reinforces cooperation with downstream players through the inte-gration of the CSC Group’s supply chain to broaden its market reach. Besides, it continues to promote energy conservation and a green environment to minimize our environmental impact.
Pre-Painted Galvanized Steel Coil (PPGI)Galvanized Steel Coil (GI)
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1.2 VISION AND MISSION
VISION
• To be a trustworthy and excellent steel company in Malaysia as well as in Southeast Asia
MISSION
• To continuously improve productivity• To constantly develop higher value-added and environmentally friendly products• To continually pursue excellence in quality and service that exceeds our customers' expectation• To fulfill our commitment to corporate social responsibility
1.3 CORE VALUES
Core values are essential for a company in order to improve continuously in its daily operations. The core values that CHB emphasizes are as below:
Teamwork: Replace internal rivalries with coordination and cooperation with a common goal in mind – our corporate objectives.
Pursuit of Innovation: Manage people and processes through research and development which turn new ideas into pro�t. Being innovative keeps our company abreast of the latest industry developments.
Down-to-Earthness: The state of being practical and realistic, in addition to being sensitive, when making decisions to deal with problems effectively.
Entrepreneurial Approach: Stress ef�ciency for the day-to-day operations to preserve growth. Be responsible for providing superior products and services to our customers, and an environment for our employees to grow professionally and intellectually as well as satisfy returns on our shareholders' investment.
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1.4 ORGANIZATION STRUCTURE
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1.5 OUR BUSINESS
The revenue of the CHB Group for the �nancial year ending 31 December 2015 was RM1.017 billion, with a slight decrease of 3% compared to the 2014 revenue of RM1.048 billion, due to the decrease in the selling price of steel products.
The steel market for 2015 continued to be affected by the turbulence created by China whose tremendously large production volume caused the steel supply volume to far exceed its demand. Even though the domestic steel market was weak in 2015, the CHB Group achieved its best performance compared to the past years. The reasons for this achievement included lower production cost, effect of the on-going anti-dumping investigation of cold rolled steel and pre-painted galvanized steel by the authorities, weakening of the Malaysian ringgit, CHB’s strategic plan on production volume and product mix as well as the write-back of doubtful debts.
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2.0 OUR DRIVING FORCE
2.1 OVERVIEW
2.2 EMPLOYEE WELFARE AND FRINGE BENEFITS
There are approximately 700 employees in CHB. As a multinational corporation, CHB adopts unbiased employment practices where employees are treated equally regardless of their religion, race or nationality. Apart from employee training and development, CHB also institutes employee welfare and bene�ts which reward employees according to their contributions and performance.
CHB values employees who are professional in their dealings and efforts. As such, CHB motivates its employees by recognizing them with incentives.
Apart from the statutory bene�ts such as the Social Security Organization (SOCSO) and Employees’ Provident Fund (EPF) contributions, CHB further enhances employee bene�ts with complimentary meals, recreational facilities, festival gift vouchers, housing and vehicle loans, etc.
In 2015, CHB established a loan policy whereby foreign employees can have some �nancial assistance in the event of natural disasters.
Enriched employee welfare and bene�ts would help create a sense of belonging to CHB as well as strong bond between employee and employer.
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There are approximately 700 employees in CHB. As a multinational corporation, CHB adopts unbiased employment practices where employ-ees are treated equally regardless of their religion, race or nationality. Apart from employee training and develop-ment, CHB also institutes employee welfare and bene�ts which reward employees according to their contributions and performance.
CHB considers its employees as one of its most valuable assets. To validate this belief, CHB provides nutritious, hygienic and balanced meals for them so that they can eat well and healthily.In 2015, taking things further, CHB renovated its kitchen and refurbished it with new cooking equipment and apparatus. This is yet another initiative that backs up CHB's claims that it has its employees' welfare at heart. CHB believes that priori-tizing employee welfare boosts up their satisfaction with the company.
Screenings are tests for diseases before the symptoms are obvious. Employees are advised to prevent medical problems and to get proper treatment as soon as any serious ailment is diagnosed.
2.2.2 COMPLIMENTARY MEALS
2.2.1 HEALTH SCREENING
CHB believes that good health is fundamental to work ef�ciency and effectiveness. As such, free annual health screenings are available for eligible employees.
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2.3 TRAINING AND DEVELOPMENT OPPORTUNITIES
Employees are happier with their work life when they are skilled at their jobs and when they feel that they have opportunities for career advancement within the company. In 2015, CHB had identi�ed and carried out several training programs targeted at development and skills enrichment.
To ensure that the training programs are effective and that the training ringgit is well spent, employees attend training in topics that are relevant to their work function, encompassing both technical and soft skills. Realizing that training should not be necessarily be boring, there is a fun element in the training programs.
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There were twelve categories of training programs delivered in 2015. Many companies believe that training is a waste of time and resources, but not CHB. CHB believes in the bene�ts of training. There are the direct bene�ts such as less rework and downtime, and higher productivity when its employees perform their jobs well. Then there are the indirect bene�ts such as lower social costs when greater job satisfaction and employee morale lead to lower employee turnover. See the chart below for a breakdown of the training conducted last year.
Apart from that, CHB collaborates closely with local colleges and universities to provide their students with actual industrial experience. In the past year, twenty four students interned with CHB and gained valuable insights into the production processes of a steel company.
Graph 2.1: Categories of training programs
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2.4 EMPLOYEE ACTIVITY COMMITTEE (EAC)
The Board Employee Activity Committee (EAC) comprises nominated employees who are responsible for planning and organizing activities for their coworkers as well as the community at large, aimed at creating a sense of belonging and strengthening the relationship between employees.
2.4.1 ANNUAL DINNER
The annual dinner event is one of the major events organized by the EAC to express CHB's gratitude for the contribution of its employees throughout the year. The highlight of the evening, after the food of course, was the Best Employee Awards given to deserving employees for their outstanding performance in their respective departments.
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2.4.2 SPORTS ACTIVITIES
Scienti�c research has shown that people who exercise regularly are healthier physically and mentally, they sleep better and they are more energetic. Therefore: CHB never stops advocating employee particiption in sports activities such as badminton, futsal, table tennis, etc. I n t e r - c o m p a n y tournaments are an exciting avenue for its employees to show off their talents while fostering relationships among employees.
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3.0 ENVIRONMENT, ENERGY, SAFETY AND HEALTH MANAGEMENT
3.1 OVERVIEW
CHB is a mid-stream �at steel producer and marketer of Pickled and Oiled Steel Coils, Cold Rolled Steel Coils, Galvanized Steel Coils and Pre-Painted Steel Coils. The energy sources used in the company are natural gas, electricity, diesel and petrol. CHB is committed to ef�cient energy usage with an eye always on reducing its carbon footprint. Hence, CHB endeavors to:
➢ Improve energy ef�ciency continuously by implementing effective energy management programs.
➢ Ensure availability of information and resources to meet energy objectives and targets.
➢ Educate, train and motivate employees on how to save energy.
➢ Comply with applicable laws and regulations.
Not only that, CHB has also set up an Energy Conservation Committee (ECC) to organize and implement energy conservation programs, monitor and audit energy consumption, report �ndings on energy conservation and promote awareness among employees. It also informs and advises on energy ef�ciency activities and programs. The committee ensures employees are aware of the energy management program, and reviews the status of the program regularly to ensure its continuing suitability, adequacy and effectiveness.
To preserve health and safety, there needs to be continuous improvement of occupational safety, health and hygiene, not only for its employees but also for the other elements too. CHB practices exemplary environmental protection in its business operations. CHB express its commitments through:
Care for LifeRespect and value life by implementing high standards of environmental protection practices, and safety and health management programs thereby preventing occupational injuries and illnesses, and enhancing health.
Risk ManagementAttend to risk evaluation aspects by strengthening risk control and pollution preven-tion measures with the aim of eradicating potential hazards.
Training and CommunicationEducate and inculcate employees, suppliers, vendors, contractors and other affect-ed parties in work safety, hygiene and green business practices, and promote awareness and value amongst them.
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Laws and Regulations ComplianceComply with applicable laws and regulations by proper monitoring of all operations and activities, instituting effective corrective and preventive measures to ful�ll corporate social responsibilities.
Continual ImprovementEstablish an effective long-term environment, safety and health plan, which is monitored regularly for continuous improvement to achieve a sustainable business operation.
3.2 ENVIRONMENTAL SUSTAINABILITY
CHB never slacks in its commitment towards environmental sustainability. An environmental monitoring program has been implemented to track the quality of city water, treated ef�uent, chimney stack emissions and ambient air quality to ensure compliance with regulatory requirements. Disposing of waste in an environmentally responsible manner is imperative for maintaining environmental sustainability. Therefore, both the monitoring program and the waste management program in CHB are important.
3.2.1 ENVIRONMENTAL MONITORING PROGRAM
CHB has appointed a competent third party assessor to review its program. The assessor prepares a report once a quarter and submits it to the Department of Environment, Melaka. To guarantee its program is effective, CHB makes sure always to be in compliance with the ISO 14001:2004 Environment Management System (EMS) international standards. Below are a few actions which CHB had implemented.
The Managing Director of CHB appointed a Special Assistant as the Management Representative (MR) to champion EMS.
A team of employees well versed in the 14001:2004 EMS requirements audits the EMS program once a year to ensure compliance.
The relevant department heads have semi-annual meetings chaired by the Management Representative to review the EMS program.
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The graph above shows CHB's city water consumption for the past three years. City water consumption is a measure of a company’s water intensity. In 2015, CHB's water consumption had decreased signi�cantly, compared with 2014. This is achieved by practising good housekeeping, reducing wastage due to leaking pipes or water over�ow, and recycling water at selected operations.
3.2.2 ENVIRONMENT PERFORMANCE INDICES
3.2.2.1 CITY WATER
Graph 3.1: Consumption of city water for 2013 to 2015Graph 3.1: Consumption of city water for 2013 to 2015
Graph 3.2 shows CHB's water discharge quantity for last three years. The water treatment plant operation in CHB aims to maintain the hydrology and water quality. Through the installation of various online monitoring devices such as pH sensors, COD online analyzers, �ow meters and so on, the water ef�uent discharge quality to the external drainage system are controlled and ensured. In addition, the system is linked to the HMI to ensure water quality is under close surveillance.
3.2.2.2 TREATED EFFLUENT
Graph 3.2: Ef�uent discharge quantity for 2013 to 2015
City Water
Intensity Water m3/Output
2015
2014
2013
Yea
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0 0.05 0.1 0.15 0.2 0.25
Consumption Rate
Ef�uent Discharge Quantity
Intensity Ef�uent m3/Output
2015
2014
2013
Yea
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0 0.02 0.04 0.06 0.08 0.1
Consumption Rate
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Graph 3.3: Ef�uent Quality COD for 2013 to 2015
By holding to CHB's commitment of contributing to environmental cleanliness and zero pollution, waste water is �rst treated at the water treatment plant as to ensure that it complies with Stan-dard B [ENVIRONMENT QUALITY ACT, 1974, The Malaysia Environ-ment Quality (Sewage & Industri-al Ef�uents) Regulations] before exiting to the common drainage system of the Ayer Keroh Industrial Estate. It will then be discharged to Sungai Putat (Putat River) and �nally to the Malacca River. Rain water is directly emitted through the proper drainage system to the Kampung Bukit Katil Stream.
3.2.2.3 WASTE WATER TREATMENT PLANT
Monthly sampling is carried out by an accredited third party to safeguard that all control parameters, especially for the heavy metals and harmful materials, are lower than required, which complies with Standard B of Environment Quality Act, 1974, The Malaysia Environment Quality Environmental Quality (Industrial Ef�uent) Regulation 2009. The ef�uent quality Chemical Oxygen Demand (COD) from 2013 to 2015 is as shown as below.
3.2.2.4 EFFLUENT DISCHARGE QUALITY
Ef�uent Quantity COD
COD (ppm)
2015
0 50 100 150 200
2014
2013
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Graph 3.4: Ambient Air Monitoring for Particle Matter 10 for 2013 to 2015
Quarterly Stack Monitoring is also carried out by an accredited third party laboratory to keep all control parameters within the limits speci�ed in the Environment Quality (Clean Air) Regulations, 1978. The ambient concentrations for all parameters are monitored in three surrounding residential areas so that they do not exceed the limits of the Malaysian Recommended Air Quality Standards. The areas being closely monitored are situated at Taman Pelangi (Point A1), Kampung Tun Razak (Point A2) and Taman Muzaffar Shah (Point A3).
Ambient Air QualityCHB process line operation maintains the emitted ambient air quality and ensures that it will not affect the surrounding residential areas. The results for 2013 to 2015 are shown in the graph below.
3.2.2.5 EMISSION
Ambient Air Monitoring for Particle Matter
A3 A2 A1
0 50 100 150
2015
2014
2013
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10
3.3 SCHEDULED WASTE MANAGEMENT
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Scheduled waste contains harmful elements which may injure, poison and pollute the whole ecosystem. In order to have adequate protection of human health and environment, CHB ensures that its scheduled waste is properly packed, stored, and transported with the prior written approval from the Director General of the Environmental Department, Malaysia.
After completing the whole process of waste water treatment, contaminated waste �lter cloths (SW410), waste chromic acid (SW206) and miscellaneous materials (SW421) are sent to Kualiti Alam Sdn. Bhd., a licensed Waste Management Centre located at Bukit Nanas, Negeri Sembilan. However, a few contaminants could be treated and recovered for various purposes:
Metal hydroxide sludge (SW204) - Recovered and to be utilized as raw material for cement making
Zinc dross (SW104) - Sent for recovery purpose
Waste oil (SW305) - Collected for recycling and blending into fuel oil
Waste solvents (SW322) and empty containers (SW409) - Further recycling and recovery
3.4 BIODIVERSITY
Various human activities, such as tree cutting and fossil fuel burning, cause over emission of carbon dioxide which eventually leads to global warming and climate change. As a part of society, CHB is committed to creating a positive impact on the environment by planting trees in the surrounding company compound. Trees convert carbon dioxide to oxygen, refreshing the atmosphere. Since 2011, CHB has planted more than 130 trees strategically in the company compound.
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3.5 ENERGY MANAGEMENT
CHB obtained the ISO 50001:2011 Energy Management System (EnMS) certi�cation in January 2013. It is the �rst iron and steel company in Malaysia to do so. The certi�cation validates that CHB has covered the key areas, including quality and environment, of the ISO Management System. Below is an account of how CHB minimizes its energy consumption.
3.5.1 ENERGY SAVING ACTIVITIESGreenhouse gases (GHG) are a by-product in the generation of electricity. It follows that if the electricity consumption is reduced, thereby reducing the need for so much electrical energy, the amount of GHG in the atmosphere will correspondingly be reduced. As such, CHB aims for lower energy consumption. In 2015, it implemented several measures, resulting in CHB being more energy ef�cient, and reduced its annual consumption by more than 920 MWh.
Fans and Pumps• Optimum sizing • Throttling • Variable speed control • Idle time saving
Waste Heat Recovery Systems• Stack flue temperature • Leakage management
Motors, Belts and Drives• Variable speed drives • Correct sizing
Compressed Air System • Leakage control • Proper piping design • Optimum system & operating pressure • Inverter type air compressor
Air Conditioning System• Higher efficiency of operation of chillers • Air conditioner thermostat at 26°C• Installation of self-closing doors as to minimize air conditioning load• Use of window shades or solar films
Lighting System• Use automatic timers for lighting switches• Use of energy efficient lamps• Use of natural light• Switch off main power of appliance when not in use for long period of time
CHB will continue to monitor its energy management program and the energy saved. The Energy Conservation Committee (ECC) will review and update the program regularly. To increase energy ef�ciency further, strengthen on energy con-servation, and encourage the participation of employees as well as society, a series of training programs and activities are being implemented for both its employees and external organizations. The projects and activities are as follows:
I. Energy policy support and commitment from top management to achieve energy performance improvementII. Invite energy experts from parent company for knowledge sharing, guidance, technical assistance service, cooperation and program implementation.III. Set Energy Performance Indices (EnPIs), energy objective targets and action plans to increase energy performance of processes and activities, and to analyze the results for future reference.IV. Enhance capacity and infrastructure of training center.V. Effective communication methods and media advocacy to increase public awarenessVI. Comply with applicable laws and regulations in establishing EnMS.VII. Raise employee awareness by posting departmental energy saving competition updates on notice boards.VIII. Publicize energy related events continuously and reminders on notice boards, ERP system via email.IX. Conduct energy saving campaign by distributing lea�ets to each department.X. Set up reward scheme for both employees and non-employees who propose energy saving opportunities in working area and industry premises.XI. Set up Process Management Information System (PMIS) as a tool to provide statistical and analytical data in monitoring electricity usage by process.XII. Conduct energy audits and section audits to analyze energy �ows in industry, and identify potential areas for improvementXIII. Conduct ISO 50001:2011 Energy Management System (EnMS) awareness training during new employee induction and refresh training annually for existing employees.
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The total energy saving from 2013 to 2015 is shown in Table 3.1.
Table 3.1: Annual Total Energy Saving for 2013 to 2015
Annual Total Energy Saving (kg CO2)
Type of Energy 2013 2014 2015Electricity 67,024 96,806 127,222
Total 891,200 537,894 127,222
Natural Gas 824,176 441,088 -
3.5.2 ELECTRICITY CONSUMPTION
However, the 2015 electricity consumption was higher than project-ed due to lower production output (1,467,819t) compared to 2014 (1,614,565t). Rework coil increase and higher consumption of compressed air contributed to the increase of the overall production line electricity consumption. In addition, test runs on the new Temper Mill in September 2015 also led to higher consumption. Table 3.2 shows the targets set in 2015 to ensure that the electricity consumption intensity is under control.
Electricity is one of the main energy sources in CHB. The electricity energy baseline uses regression statistics to calculate the past three year’s electricity performance per unit production. In 2015, CHB had aimed to reduce 1% of electricity consumption.
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Intensity Electricity kWh/
Year Production (t) Electricity (kWh) kWh/t
2013
2014
2015
1,742,160 84,325,250 48.40
1,614,565 80,811,207 50.05
1,467,819 80,532,817 54.87
Table 3.2 Electricity Consumption for 2013 to 2015
Electricity
2015
2014
2013
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0 46 48 50 52 54 56
Consumption Rate
No Objective TargetTargetSaving
Energy EnergyActualSaving
1 To improve energy ef�ciency lower electricity consumption
Reduce 3% of overall electricity consumption for administration building.
Reduce 1.5 kWh/t of electricity consumption for production (2RCM, 3RCM, CGL and CCL)against abaseline of 2012 ~ 2014.
Achieve 148,088 kWh/yr savingby implementing 2RCM Left Side fume exhaust fan auto slow down during idle time.
Achieve energy savingof 201,053 kWh/yr by resizing khatabar pump supply pipingandreplacingtwohigh ef�ciency pump motor
Achieveenergy savingof 85,536 kWh/yr by implementing SCP cooling towers auto control plan.
Achieve energy savingof34,888 kWh in lighting.
kWh Gkcal GkcalkWh
11,258 0.0252 -0.0340(15,204)
928,219 2.0755 1,5002670.937
61,703 0.1380 0.174978,203
16,754 0.0375 0.025411,347
35,640 0.0797 0.3777168,910
34,888 0.0780 0.01727,706
1,088,462 2,4338 2,0614921,899
Table 3.2: Targets and actual energy saving
Graph 3.5: Electricity consumption from 2013 to 2015
3.5.3 ENERGY UTILIZATION PERFORMANCE
Natural gas is CHB's second main energy source for the production line. The natural gas consumption is directly proportional to the production output of thinner and thicker gauges of the strips. The Energy Conservation Committee (ECC) reduced the consumption of natural gas as much as possible by studying the heat recovery from fuel gas and reusing steam condensation of feasible process lines.
3.6 SAFETY PERFORMANCEDanger never takes a vacation: that is why safety is always a priority in daily life. CHB has that same priority too and is greatly concerned regarding the safety of its employees, and its contractors as well. CHB is committed in minimizing the risk of accidents in the work place.
3.6.1 INJURY RATECHB has an ‘area responsibility system’ where employees are in charge of and are responsible for the safety aspect of the allocated areas. The high occupational accident frequency rate of 9.06 in 2011 reduced spectacularly to only 0.43 in 2015. This success was brought about by several initiatives. Amongst them are: safety brie�ngs before the start of work, and Safety Lea�ets and guidelines provided for employees via the ERP system. With such initiatives, CHB managed to control both the accident frequency rate and the severity rate.
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Year Production (t) NG (Sm3) Sm3/t
2013
2014
2015
1,766,531 15,534,112 8.79
1,710,200 15,054,798 8.80
1,679,232 15,375,575 9.16
Table 3.3 and Graph 3.6 show the natural gas consumption from 2013 to 2015. The natural gas consumption intensi�ed in 2015 due to the increase of a combination of products in the Continuous Galvanizing Line which required a higher natural gas usage.
Intensity NG Sm3/Output
Natural Gas
2015
2014
2013
Yea
r
8.6 8.7 8.8 8.9 9 9.1 9.2
Consumption Rate
Graph 3.6: Natural gas consumption for 2013 to 2015
Note: 1 Sm = 40 MJ 1 MJ = 0.2778 kWh Actual energy saving (Jan~Dec) counted from the implemented date (month)
2011 2012 2013 2014 2015Minor (�rst-aid level) injury 15 8 3 0 0
Lost days (employees) 3 7 1 2 1Lost days rate (employees) 35.23 175.08 15.76 33.72 3.86Injury rate (total workforce) 9.06 7.34 1.91 0.88 0.43Occupational diseases rate (total workforce) 0 0 0 0 0
Absolute number of fatalities (total workforce) 0 0 0 0 0
Table 3.4: Injury rate for2011to 2015
3.6.2 POTENTIAL OCCUPATIONAL RISK
The Safety Of�cer, Occupational Safety and Health Panels and/or Head of Department are responsible for reviewing the control measures where necessary. Employees are encouraged to submit Job Safety Proposals (JSP) to report any near-miss cases. Once their JSB has been accepted, they will be rewarded. Table 3.5 shows the number of potential hazards identi�ed and eliminated from 2013 to 2015.
3.6.3 LOSS TIME INJURY
3.6.4 CONTRACTOR SAFETY
As with the safety of its employees, CHB is equally concerned with the safety of its contract transporters within its compound. Any transporter who enters the premises must not exceed 30 km/hr. The drivers and attendants are required to follow safe work practices and wear the appropriate personal protective equipment (PPE) such as re�ective (safety) vests. Besides, smoking is prohibited except in the des-ignated Smoking Areas.
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2013 2014 2015Monthly Inspection lead by SHC Chairman 11 6 6Weekly Inspection by Safety Inspectors / SHO 141 49 43Job Safety Proposal (JSP) by Employees 175 84 122Near Missed Case 12 12 3
Total Cases of Potential Risk being eliminated 339 151 174
Table 3.5: Number of potential hazards identi�ed and eliminated for2013 to 2015
Activity Number of Cases
CHB set a target of 183 consecutive days without any Loss Time Injury (LTI) to raise safety awareness among its employees. There were rewards, in the form of cash vouchers, given to the employees if the target was met.
4.0 MARKETING AND PRODUCT DEVELOPMENT
4.1 OVERVIEW
4.2 NEW PRODUCT DEVELOPMENT
By holding to the principle of providing premium products that satisfy customers' preferences, CHB goes all out, especially in product enhancement and marketing. Some of its achievements are listed below.
CHB launched a new product – RealzincTM Cr-Free – in 2015. RealzincTM is galvanized steel with a thin organic chrome-free coating. It is used mainly in electrical and electronic (E&E) applications.
A chrome-free coating not only provides corrosion resistant protection to the steel substrate, but it also possesses an anti-�nger print characteristic and complies with stringent environmental guidelines such as RoHS & REACH.
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Actions always speak louder than words. CHB participates in exhibitions and seminars to build better rapport with its customers and to widen its product exposure in the industry.On 13th March 2015, CHB held a Coated Product Seminar in the Macau Gallery, Melaka. Industry players such as architects, contractors and other related professionals attended the seminar and shared their product-related knowledge. Refreshments were provided to foster a friendly and casual atmosphere amongst the speakers and participants.
On 1st December 2015, CHB participated in a workshop organized by the Malaysian Green Technology Corporation (GreenTech Malaysia) to discuss in detail the scope and the activities, such as regulatory frameworks, product groups, and supplier management, to be implemented to realize the government green procurement (GGP) action plan for 2016.On 16th December 2015, CHB participated in another seminar organized by
GreenTech Malaysia and co-organized by Polis Diraja Malaysia (PDRM). The objective of the seminar was to promote PDRM awareness and understanding of green products and services as well as serve as a platform for participants to showcase their achievements.
4.3 PRODUCT MARKETING
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Despite its hectic schedules, CHB never misses the opportunity to participate in one of the largest building industry exhibitions – the International Architecture, Interior Design & Building Exhibition, which is also known as ARCHIDEX. The exhibition was held in the Kuala Lumpur Convention Centre from 12th to 15th August 2015. This is an annual event that gathers architects, interior designers, developers and associated professionals together. CHB uses this event to promote itself, and to penetrate deeper and wider into the market.
4.4 THE ACHIEVEMENT
PRODUCTS UNDER MYHIJAU CERTIFICATION
CHB is committed to the protection and preservation of the environment. Thus, CHB is keen to produce zero eco-harmful steel products. Its crowning glory was the much sought-after and stringent MyHijau certi�cation for its coated steel products, effective 17th February 2015.
The MyHijau certi�cation is regulated by GreenTech Malaysia and it is in tandem with the standards of SIRIM Berhad. The product certi�cation is only granted for goods and services which are produced without releasing any greenhouse gas and which ful�ll the environmental criteria.
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Table 3.2: Targets and actual energy saving
Graph 3.6: Natural gas consumption for 2013 to 2015
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5.0 CONTRIBUTION TO SOCIETY
5.1 OVERVIEW
5.2 EMPLOYEE ENGAGEMENT
CHB understands the importance of its corporate social responsibility and continues to focus its efforts on creating a better society. CHB's initiatives and commitments, though not exhaustive, are many.
One of its giving-back-to-society activities is a blood donation campaign. This is held twice a year, in collaboration with the Malacca General Hospital. An amazing 120 employees donated blood in 2015 alone.
Blood donation plays a vital role in saving lives during critical medical emergencies. As such, CHB considers the generosity of its employees in donating their blood as one of its most valuable gifts to the community. The campaign was not only to help those who suffer during a shortage of available blood, but also to instil in its employees, sympathy for another person in need, and a sense of worth when saving another’s life.
Year Average(pints)
2013
JUN JUN JUNOCT OCT
TotalNumber of Blood Donor
61 50 57 60 60 57.6
2014 2015
Tota
l Nu
mb
er o
f Blo
od
Do
no
rs
2013Year
2014 2015
70
60
50
40
30
20
10
0
JUN
OCT
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5.3 CONTRIBUTION TO LOCAL COMMUNITIES
5.3.1 DISASTER RELIEF
Natural disasters are catastrophes such as �oods, volcanic eruptions, hurricanes, earthquakes and tsunamis. They inevitably cause loss of life in addition to damaging property.
Malaysia is blessed not to have many of these disasters but it is prone to �oods. In December 2014, heavy rainfall caused widespread �ooding in the east coast affecting more than 200,000 people.
CHB mitigated the suffering of the �ood victims by collaborating with the Malaysian Iron and Steel Industry Federation (MISIF) and donated approximately 15 metric tons of pre-painted galvanized steel and some funds for the local authority to rebuild the affected areas.
In April 2015, an earthquake in Nepal killed more than 8,000 people and at least 800,000 homes were destroyed. CHB provided immediate assistance such as �ight ticket coverage for its Nepali employees whose families had been affected so that they could return home to them. Further actions were taken by the employees to raise funds while CHB donated to Nepal to help the devastated country rebuild itself.
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5.3.2 VISITING AN ORPHANAGE
Helping unfortunate children is yet another fundamental corporate social responsibility. CHB is proud to have made a positive difference in the lives of some underprivileged children. On 18th April 2015, CHB paid a visit to Rumah Tunas Harapan Semarak Kasih and donated a brand new personal computer. Its representatives played mini games with the children.The children also visited Zoo Melaka, Malaysia’s second largest zoo, together with some CHB employees. The children learnt about animals from the zookeeper and had a sumptuous lunch after the visit.
5.3.3 CONTRIBUTION TO EDUCATION
Schools play an important role in developing children into responsible citizens and good human beings. CHB, fully aware of this, naturally supports education.
In June 2015, CHB donated 25 used but still serviceable personal computers to SJK (C) Pay Teck for the students' use.
In October 2015, CHB sponsored an education fund for SJK (C) Keh Seng students.
When SMK Tinggi Cina Melaka needed an assembly hall, CHB stepped in with approximately 7 metric tons of Pre-Painted Galvanized Steel (PPGI) for its construction.
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5.3.4 CONTRIBUTION TO THE SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS (SPCA)
The Society for the Prevention of Cruelty to Animals (SPCA), was founded in 1958. It is a non-pro�t organization which aims to protect defenseless animals and to alleviate their suffering. Over the years, the organization has gained remarkable good-will, recognition and support from animal lovers all over Malaysia.
CHB cares not only for humans and the environment, but animals as well. CHB had, in August 2015, donated 34 packs of animal food to SPCA as its contribution to abandoned and defenseless animals.
www.cscmalaysia.com
CSC STEEL HOLDINGS BERHAD (640357-X)180 Kawasan Industri Ayer Keroh, Ayer Keroh,
75450 Melaka, MalaysiaTel: 606-231 0169 Fax: 606-231 0167
Email: [email protected]