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SUSTAINABILITY
REPORT
2015
1
On the cover, the winning drawing of the 2015 competition for children of Forgital Group employees on the
theme of energy savings.
2
SUSTAINABILITY
REPORT
2015
3
Table of Contents
Introduction ................................................................................................................................................... 5
Introduction ................................................................................................................................................... 6
....................................................................................................................................................................... 7
FORGITAL ITALY, ITS HISTORY AND EVOLUTION IN THE FORGITAL GROUP .................................................. 8
Customer satisfaction .............................................................................................................................. 12
Goodness ................................................................................................................................................. 12
Excellence ................................................................................................................................................ 12
Teamwork ................................................................................................................................................ 13
Growth ..................................................................................................................................................... 13
Membership ............................................................................................................................................ 13
Profits ...................................................................................................................................................... 13
GOVERNANCE AND ORGANIZATION ........................................................................................................... 13
ORGANIZATIONAL MODEL FOR MANAGING RESPONSIBILITIES.................................................................. 14
OBJECTIVES AND STRATEGIES ..................................................................................................................... 16
CUSTOMER SATISFACTION AND QUALITY SYSTEM MANAGEMENT ............................................................ 16
PROVIDING ADDED VALUE .......................................................................................................................... 19
DISTRIBUTION OF NET GLOBAL ADDED VALUE ........................................................................................... 19
EMPLOYMENT ............................................................................................................................................. 21
Age of staff and company seniority ......................................................................................................... 22
Presence/Absence Trends ....................................................................................................................... 24
EQUAL OPPORTUNITY POLICY ..................................................................................................................... 24
MANAGEMENT OF RESOURCES ................................................................................................................... 24
RESEARCH AND SELECTION......................................................................................................................... 25
THE VALUE OF COMPETENCES .................................................................................................................... 25
Building the future ....................................................................................................................................... 27
UNION RELATIONS ....................................................................................................................................... 28
FORGITAL FOR SOCIAL INITIATIVES ............................................................................................................. 28
CHRISTMAS PARTY ....................................................................................................................................... 29
PRIVACY ....................................................................................................................................................... 29
GLOBAL APPROACH TO SAFETY ................................................................................................................... 31
MANAGEMENT SYSTEM FOR SAFETY AND HEALTH OF WORKERS .............................................................. 32
From Risks Evaluation to Planning .......................................................................................................... 32
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Conformity to legislation ......................................................................................................................... 33
Internal audits.......................................................................................................................................... 33
Reviews .................................................................................................................................................... 34
ACCIDENTS ................................................................................................................................................... 35
Missed accidents (near misses) ............................................................................................................... 36
Evaluation and removal of the causes of accidents ................................................................................ 36
Decrease of accidents: insurance savings ............................................................................................... 36
TRAINING AND INVOLVEMENT .................................................................................................................... 36
Specific training ....................................................................................................................................... 38
Training of assigned personnel ................................................................................................................ 38
Meetings and team briefings ................................................................................................................... 38
Internal communication .......................................................................................................................... 39
The “Forgital for Safety” project ............................................................................................................. 39
SAFETY TECHNIQUES AND INNOVATION ..................................................................................................... 40
MANAGEMENT OF SAFETY OF THIRD PARTIES ............................................................................................ 40
Guests and Visitors .................................................................................................................................. 41
ACCOUNTING FOR SAFETY ........................................................................................................................... 41
ENVIRONMENTAL POLICY ............................................................................................................................ 46
THE ENVIRONMENT MANAGEMENT SYSTEM ............................................................................................. 47
AIR PRESERVATION ...................................................................................................................................... 48
WASTE MANAGEMENT ................................................................................................................................ 49
MANAGEMENT OF WATER RESOURCES ...................................................................................................... 50
SOIL AND SUB-SOIL PRESERVATION ............................................................................................................ 51
TREATMENT OF RAINWATER ....................................................................................................................... 52
CONTROL OF CHEMICAL AND DANGEROUS PRODUCTS.............................................................................. 52
ENERGY BALANCE SHEET 2015 .................................................................................................................... 56
ILLUMINATION – “RE-LAMPING” PROJECT ................................................................................................. 59
ENERGY EFFICIENCY CREDITS (TITOLI DI EFFICIENZA ENERGETICA, or TEE) ................................................ 60
5
Introduction
Dear Readers,
once again, the publication of this 2015 report marks the renewal of our commitment to share our social and
environmental responsibility policies by updating the Forgital Italy sustainability program.
With the transparency that all our company's stakeholders acknowledge, this Sustainability Report is intended to
demonstrate the practical implementation of the sustainable development model that we plan to continue to upgrade and
expand upon, by pursuing business objectives and economic development with careful attention paid to social-
environmental aspects of management.
In illustrating how much we have achieved during 2015, our attention is focused on some primary areas of importance:
- enhancing our leading capital resources, people, in the constant search for a profitable and harmonious
relationship with local communities;
- the safeguarding of health and safety in the workplace;
- the protection of the environment and natural resources;
- energy balance sheet, seen in the context of having attained ISO 50001 certification for our Energy
Management System.
What we present here is the fruit of our corporate culture, inspired by the principle of “world class organization”: we want
to stand out and distinguish ourselves in the excellence of performance and quality, in customer satisfaction, in
safeguarding the environment and managing energy resources. This concept guides us throughout all our production
with the objective of optimising results, aiming at continuous improvement in processes and product quality, the control
and progressive reduction of production costs, flexibility in meeting market needs, and the engagement and motivation of
our employees.
Having taken into account the macro-economic context of Italy, we can say that Forgital have succeeded in confirming
our economic-financial solidity, reaching highly positive results: the Group has consolidated a turnover of 275 million
euro, with a growing contribution especially due to the notable development of the aerospace market. In terms of
employment level, in our various production plants, we have reached a total of 1025 employees. The personnel working
in Forgital Italy have exceeded the threshold of 413 units, with 39 new hires during 2015.
Data concerning accidents and injuries have also improved thanks to diligent efforts made in raising awareness of safety
issues in the workplace. The most significant figure in this sense is the frequency index of injuries, equal to 8.9 %: the
best result ever obtained.
We also would like to highlight, to conclude this brief introduction, that some of the illustrations in this edition are the fruit
of the creativity of our employees' children. In order to raise awareness about saving energy, we organised a drawing
context with awards presented in various categories based on age (from nursery school to secondary school). The
remarkable sensitivity and enthusiasm demonstrated by these young "artists" can only serve to bolster our commitment
for sound economic development that is respectful of our territory and of future generations.
Hoping you enjoy reading the report.
The CEO
Nadir Spezzapria
6
Introduction
With this publication we aim to explain, in a concise and transparent way, the commitments that characterize
the economic, environmental and social responsibility of Forgital Italy.
Indeed, the objective we set is to reinforce public perception of the importance of our actions, to give greater
visibility to the activities we carry out, so as to increase legitimation in the local community and consensus on
a social level.
The collection of information necessary for the preparation of this document has seen the involvement of the
different business departments, also characterized by a strong focus on issues related to sustainability.
Starting then from what is the historical, ethical and quality heritage of the company, we moved to outline the
policy in human resources management, the protection of people, environmental protection and, finally, our
energy balance.
We have tried to make the issues as uniform as possible, to focus on the achievements in each area;
however, although each of the topics is joined with the others and all are chained together: the proper
management of human heritage intersects continuously with the workers health and safety policy. At the
same time, the reduction of environmental costs must be matched by an efficient production management
and choices related to it.
We hope this will be useful and interesting reading for you to deepen your knowledge of Forgital Italy reality.
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COMPANY PROFILE
8
FORGITAL ITALY, ITS HISTORY AND EVOLUTION IN THE FORGITAL GROUP
Forgital represents the most modern and specialized technology in the whole world for the manufacturing of
seamless, hot-rolled rings, using steel, nickel alloys, aluminium alloys, titanium and copper alloys,
widespread in all mechanical and industrial applications.
Many different factors contribute all together to build a new “capacity of doing”, where tradition and
innovation are coupled.
The tradition of metal forging comes from the experience of many generations of local forgers: the
Spezzapria Family founded and always directed the company and even now, under the supervision of the
fifth generation, the Spezzapria Family directly carries on and constantly improves all activities. Innovation is
another distinctive mark of Forgital Italy: it comes from careful analyses of the indications of the market and
points to financial stability. Constant innovation is the reason for new investments in research, modern
productive installations, sophisticated monitoring systems and, last but not least, special attention for people
and environment.
In addition, the constant exchange of experience with all Customers, scattered all over the world and
including companies applying all sorts of mechanical technologies, helps Forgital Italy to find the best
solutions for any problem encountered by the users of forged rings.
This is our attitude and this is why we can guarantee to all our Customers adequate products and services;
in other words, the right solution to their needs. Forgital is the “Integrated Solutions Group” with an
international vocation, present in all continents with operational and commercial sites that, with the logic of a
“One-stop shop”, is able to fulfil all customer needs from concurrent engineering to completely finished and
certified forgings.
The origin of Forgital Italy dates back to
1873. The initial production was carried
out only by the family and it concerned
agriculture tools. The real development
of the company started in 1943, when a
small workshop (called Fratelli
Spezzapria) was created.
The machining of copper and iron were
traditional activities of the Astico Valley
and they had different developments:
the first stayed mainly at a traditional
artisanal stage, the second gradually
expanded and reached industrial scale.
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The geographical position of the valley was ideal: the river Astico made it a perfect location for commercial
crossings. The local economy was essentially based on traditional activities (commerce and hammer-
forging): the inhabitants of the valley soon became skilled and very creative in metal working. This creativity
was first addressed to local needs and only later was it driven towards markets outside the valley. In 1959,
the site of “Fratelli Spezzapria” covered 4,040 sqm (1,152 sqm roofed).
At that time, the company produced mainly forged pieces for agriculture, especially bent and welded rings.
In 1962, the Company developed again: a new area of 13,960 sqm (1,100 sqm roofed) was purchased and
Forgital S.a.s. was born. In 1966, the first Wagner rolling mill was installed (80 ton power and 2000 mm
rolling ability). A second rolling mill was then purchased: it had 125 ton power to forge rings up to of 3000
millimeters. In 1971, Forgital purchased a surface of 50,000 sqm: 3 sheds were built (for a total of 13,000
sqm) and a new 2500 ton press was installed together with the 125 ton Wagner rolling mill. Additional
presses and rolling mills were purchased, to produce seamless, rolled rings.
This was the beginning of Forgital experience in the market of rolled pieces and of its specialization in the
production of rings with rectangular and shaped sections having diameters up to the present ones.
In 1978, a new Wagner press was installed: it was used for forging with 6000 ton maximum pressing power,
which was successively increased to 8000 ton in February 1984.
In 1982, Forgital USA Inc. was created: this was a commercial company meant to have a key role in the
development of relationships and business in the main world market.
The development of Forgital in the second half of the ‘80s was due to the introduction of many technological
innovations, which brought, for instance, to the installation of a completely automated and robotized line to
produce rolled rings with rectangular and shaped section. The Inspection and Control Department had
already been created in 1970 and then changed, in 1976, to Quality Guarantee Department: in 1983-84 this
department underwent several modifications which made it conform to the international standards and to the
requirements of the main customers.
In 1992, Forgital acquired the majority share of Sumec S.r.l., which performed mechanical machining of rings
with diameters up to 3000 mm.
In 1995, a new rolling mill (capable of producing rings with a diameter up to 7 meters) was installed in
Forgital Italy, together with new furnaces for heat treatments and a CNC boring mill, to machine pieces with
diameters up to 8 metres.
In 1998 Forgital Italy created Rtm Breda S.r.l. (first in a partnership, then as Unique partner – 2006): this
company soon became a pole of excellence in material science not only in Italy, but also on an international
level.
In 2000, Forgital acquired Rimach Srl, a company specialized in the mechanical machining of rings with
diameters up to 1700 mm, which became a sort of “innovation laboratory” for new technologies and
prototypes with highly automated components.
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In 2008, Fly (located in Grigno, in the province of Trento) became fully operative. This is the worldwide
centre of excellence in the sector of mechanical finishing, welding, and assembly of components usually
destined for the aeronautic and energy markets.
In 2010, the new headquarters of institutional Forgital Italy was also inaugurated, during an Open Day
involving over a thousand people, including employees, family members and authorities.
At the end of December 2013, Fly completed the production of the first module assembled on a Trent XWB
engine; a historical achievement for Fly, as well as for Forgital Italy, the exclusive producer of the titanium
components of this engine designed to be mounted on a new family of Airbus A350.
In 2014, Forgital Italy won the “SNECMA Supplier Performance Award 2013”.
SNECMA, one of the leading players in the world of aeronautic engines, justified the award in recognition of
ultimate level achieved by Forgital's Supply Chain and in their performances in quality during 2013 and the
first months of 2014.
In 2014, Forgital Group was welcomed into the ELITE project of the Italian Stock Exchange, which focussed
on top Italian unlisted companies. The programme, with a series of targeted actions, aims at giving
international visibility to Italian excellence, supporting the cultural and organisational change that is almost
always necessary. In this way, the companies are able to join an international community that offers growth
and networking opportunities on a global level. In November 2015, Forgital Italy attained the “ELITE”
certificate, presented during a ceremony at Palazzo Mezzanotte in Milan.
In June 2015, another important step
forward was the presence of Forgital
Group at the Paris Air Show, the
leading worldwide manifestation in
the field of aeronautics and space,
and one of the top players
internationally. The display of the
assembled module for the Trent XWB
engine aroused much curiosity and
interest among the public for its
power and among professional
visitors in that it is the tangible
synthesis of how the Group is
capable of providing its clients an advantageous COMPACT SUPPLY CHAIN.
Following the annual assessment by Caterpillar (world leader in the production of construction and
excavation vehicles) on data relative to performances in quality and delivery, the client recognised Forgital
the status of PLATINUM supplier ( the highest level of service) again for the year 2015, reconfirming the
brilliant results attained since 2013.
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This year Forgital Italy was also awarded with the Best Italian Client of 2015 by Lloyd’s Register Energy.
During the ceremony, the certifying body underlined the value of the acknowledgment presented to a limited
number of Italian companies for their excellence in guaranteeing clients the reliability of their products and
the highest level of quality.
MISSION AND VALUES
The Mission of Forgital Italy is fulfilling Customer needs - Customer Satisfaction -, in full respect of human,
technical, environmental and safety values in the workplace, as well as of a sustainable use of energy, as
expected for a compatible development aiming at a continuous improvement of performances.
These are the guiding principles of our company: innovative ideas and actions, attention to the needs of our
Stakeholders, reliability in offering solutions.
The Policy of Forgital Italy is oriented to the search for excellence, always applying, and whenever possible
even anticipating, the highest standards for:
quality and guaranteed deadlines of products and services;
Health and Safety of the working environment, both for employees and subcontractors working on site;
improvement of environmental performances and full respect for the territory where the company is
located.
continuous improvement of the Company’s energy and consumption performances and costs.
The Management System for Quality, Environment, Health & Safety and Energy, as well as the objectives of
all company processes, which are constantly defined and verified, are the tools that Forgital Italy intends to
use to reach these goals.
In detail, the tools that Forgital Italy intends to use are:
engagement for constant improvement of the processes, working in conformity with the law and its
requisites, guaranteeing their full respect, applying prevention measures to reduce risks for the
environment, safety and health of the workers, as well as limiting energy consumption and costs;
constant exchange with Authorities, Customers, Suppliers, Human Resources and all other Stakeholders
interacting with the company, to transform, whenever possible, their expectations in internal requisites;
management of the Human Resources to increase the competencies, to relate acknowledgements to
performances and to strongly involve managers and employees in a policy of responsibility and
awareness of all risks and opportunities offered by our internal activities, in full respect of the requisites
imposed by the customer and necessary to create and improve a safe working environment;
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periodical analysis of quality and delivery performances, energy consumption, Health and Safety of
Workers and environmental impact, with constant review and update of the specific objectives;
constant search for innovative solutions to improve all products, to prevent and reduce the risks for the
environment and for the health and safety of all those involved in the activities of the company;
constant interaction with Suppliers to share improvement policies while increasing their
qualifications.
We are convinced that the trust of our Partners should be based on all this; these are the guidelines that
inspire our conduct:
Leadership
We want to be a leading company, from all points of view: in the
development of our teamwork abilities, at all levels; in the management of
performances, under any condition; in the way we project, produce and
present our products and in absolute results. In a few words, in Forgital
Italy, we all work for excellence.
Customer satisfaction
Customer satisfaction is fundamental for Forgital Italy’s success. We
guarantee the Customer satisfaction, understanding all needs and offering
perfect services.
Goodness
In Forgital Italy we are used to assuming responsibility for our actions and we treat everybody with deep
esteem and respect. For this, we demand that everybody respect the highest ethical principles and meet all
engagements.
Excellence
We are constantly engaged to increase the quality of everything we do, to
maintain our excellent reputation among the most important world
companies, concerning the satisfaction of customers, co-workers and all
people of our network.
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Teamwork
We know that our strength and our competitive advantage are and always will be Human Resources. In
Forgital Italy we constantly learn and share knowledge and ideas. We encourage cooperation at any level
and in all activities, applying together procedures and solutions.
Growth
In many companies, funds to increase Human Resources are only said to be available: in Forgital Italy we
actually make them available. To maintain our technological excellence, we are constantly looking for new
challenges. Becoming part of the Forgital Italy team means to share the vision of a company with a long
tradition for success and an even more exciting future.
Membership
We are engaged in the creation of a safe working location, with full respect for the environment. We promote
the health and well-being of our co-workers, without forgetting the social fabric around us and constantly
assisting it with voluntary activities, sponsorships, scholarships and other no-profit activities.
Profits
Our activities must produce profits and must have economic gains higher than those assigned by our
Stockholders, even when the market demand drops. We are capable to increase the added value of Forgital
Italy through Customer satisfaction.
GOVERNANCE AND ORGANIZATION
The organization of Forgital Italy is as follows:
General Shareholders Meeting
Board of Directors
Managing Directors: President and Vice President
Board of statutory auditors
General Management
Area Managers: they control the different operational areas of the company.
Area Supervisors: each operational area is divided into specific groups managed by a supervisor who
reports to the corresponding Area Manager.
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ORGANIZATIONAL MODEL FOR MANAGING RESPONSIBILITIES
Forgital Italy recognizes the importance of having a system that guarantees that the values of correctness
and integrity its organization is inspired by are solid and long-lasting, and respected when carrying out the
company's business and activities.
During 2008 the Organization, Management and Control Model, pursuant to Legislative Decree 231/01 was
drafted for the prevention of potential crimes deriving from the conduct of Forgital Italy and of its personnel
when carrying out their duties. The model was activated in 2009.
During 2009 the Code of Conduct was adopted; this is a code of moral rights and duties that define
corporate and ethical responsibilities of each one participating in the business organization. It defines the
meaning of legality, morality, dignity, equality and professionalism, inspiring the Company’s performances
and that the Company requires from its collaborators. The observance of the Code is a binding element for
the achievement of the Corporate purpose.
This document becomes a constant reference for those working with and on behalf of Forgital Italy and in
particular to guide the conduct of daily business relationships between employees, partners, customers,
suppliers, government and, more generally, with all who, for various reasons, relate to the company.
The Code of Conduct is also the reference document for the Organizational Model applied in Forgital Italy
according to Legislative Decree 231/2001 as a tool to guarantee these values and to prevent illegal actions
within the Company.
Along with this document, suitable procedures have been developed, following a detailed analysis of all the
company activities, for preventing offences from being committed and for ensuring that all the company
entities carry out their duties correctly.
In particular, the process for drawing up the Organizational Model
involved the following activities:
stage 1: identification of the risk areas;
stage 2: mapping of the existing situation (as is);
stage 3: gap analysis and action plan;
stage 4: drafting the organization, management and control model
and defining the specific procedures.
As regards the above, the Board of Directors adopted the Organization
Model and designated the System's Supervisory Body which reached its
full implementation within Forgital Italy Organization during 2009.
The Supervisory Body's activity during the year was marked by the assessment of the correct
implementation of the Model and the consolidation of all its parts.
15
No violations of the Code of Conduct and/or of the Organization Model, nor anomalies or significant events,
emerged from the supervisory activities.
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OBJECTIVES AND STRATEGIES
The objectives of Forgital Italy, aiming at the
continuous improvement of processes and
performances, are based on the strict compliance
with the actual laws and they are addressed
toward prevention and proactivity in the
management of health and safety issues at the
workplace, as well as to safeguard the
environment. For this reason, all development
projects are evaluated from the very beginning
to find the best operational solutions consistent
with values and mission.
Forgital Italy is committed to fostering constant exchanges with all Customers, Partners, Authorities,
Employees and all parties involved in company performances, to transform their expectations in internal
objectives of the organization and, then, in appropriate results, fulfilling all requirements. The company is
committed to constantly monitor these performances and to check all correlated issues, applying appropriate
management systems, equipped with specific accounting, and using objective indicators for performances
when preparing the Sustainability Report and the analyses for Stakeholders.
Forgital Italy, together with Suppliers, Subcontractors and Partners, promotes every useful action to support
correct behaviours, consistent with all the values and policies described until now. The Company promotes
any preventive and protective measure to reduce risks and prevent accidents and, thanks to the adequate
management of emergencies, to limit harmful consequences for the environment and the health and safety
of the population.
To support the entire process, Forgital Italy considers it very important to involve and motivate all Staff of the
company, to develop, at any level, the sense of responsibility and the engagement to constantly improve the
quality of performances.
The Company Board, above all, is engaged to diffuse, actuate, keep and review periodically its own Policy,
objectives and strategies, on the basis of the development of the environmental, social, economical and
institutional context, and to communicate the achieved results.
CUSTOMER SATISFACTION AND QUALITY SYSTEM MANAGEMENT
Our conviction that we can guarantee and promise our Customers the supply of products and services which
meet their expectations derives from the decision by the Management of Forgital Italy to establish a Quality
Management System (QMS) in accordance with the international standards, ISO 9001 and AS EN 9100.
17
Forgital Italy proposes by means of the System
to:
guarantee the quality of products, processes
and organization, to fulfil Customer’s
requirements;
make sure to comply with the policy of the
company and prove this correspondence to all
involved external parties;
fix objectives for continuous improvement,
taking into account the policy of the company;
keep under control processes and activities of
the organization which could have effects on
Quality, Environment, Health and Safety and
Energy use.
apply, keep and improve the performances to constantly
improve customer satisfaction.
The management system of Forgital Italy is also applied to
Forgital Rimac (Pedemonte - VI) and Forgital Sumec
(Seghe di Velo - VI) workshops as part of its production
process. During 2009 also the new Fly workshop (a centre of
excellence for finishing processes in Grigno-TN), developed to
meet increasing quality requirements of the aerospace market,
has been included in Forgital Italy’s quality system, with the
intention of being able to share quality innovations brought to
the aeronautic / aerospace market in Fly with the rest of
Forgital's organisation.
The Management System is described in the Manual known as
Manual of the Management Systems (MMS), available to all
Customers who want to improve their knowledge of the
System.
Starting from quality, Forgital Italy then extended its
management system to the environment and to safety: its
improvement cycle includes not only activities linked to the
product or to the organization, but also to the environment and
to people's safety.
Our Customers are also increasingly positive about this
decision and some of them play active roles in monitoring the
18
improvements.
With regard to the Aerospace
market, of primary strategic interest,
Forgital Italy's QMS already
obtained NADCAP certification in
2005 for its special Heat Treatment
process. NADCAP, the “National
Aerospace and Defence
Contractors Accreditation Program”,
is the international standard for the
certification of Special Processes in
the aerospace sector. Forgital Italy
has initiated an important
partnership in this sector with Rolls-
Royce, one of the main players in the civil aviation engine construction market, for the supply of various
constituent components of a new engine which will satisfy all the consumption and environmental
requirements in the aeronautical field. This partnership, officialised at the beginning of 2009, constitutes an
investment in the future not only for the Company itself, but will also have significant repercussions in terms
of the development of know-how and of employment opportunities for other local businesses.
To complete the important aforesaid investment, Forgital has also expanded its presence in the aviation
market by increasing production of aluminium light alloys. This extension was certified in 2009 by NADCAP
accreditation renewal, and has been
expanded to cover all materials used
in the aeronautical sector.
During 2014, Forgital Italy obtained
NADCAP accreditation for their
special Non-Destructive Testing
process (NDT).
The supply of Forgital production can now embrace all this market, as an important part of technological
innovation and human resources with a significant impact on the territory.
19
PROVIDING ADDED VALUE
Added value represents the wealth produced by the Company during the fiscal year and is the result of the
difference between the proceeds on one hand, and the intermediate costs, accessory and extraordinary
components on the other. This parameter measures the economic trend of the management and the
capacity of the Company to create value for its Stakeholders.
CHART OF CALCULATION OF THE NET GLOBAL VALUE ADDED (values in €/000)
2014 2015
Production value 162,450 176,335
Consumption of raw materials and consumables 78,545 86,444
Services costs 45,073 44,027
Costs for lease of third-party assets 2,540 395
Other operative expenses 223 722
GROSS ORDINARY GLOBAL VALUE ADDED 36,069 44,748
Financial management 380 3,060
Accessory and extraordinary management 197 1,357
GROSS GLOBAL VALUE ADDED 35,492 40,331
Depreciation and Amortization 10,771 10,961
NET GLOBAL ADDED VALUE
24,721
29,370
DISTRIBUTION OF NET GLOBAL ADDED VALUE
The following chart explains the distribution of Net Global Added Value and gives an immediate vision of the
economic effect produced by Forgital Italy to its Stakeholders
DISTRIBUTION OF NET GLOBAL ADDED VALUE (values in €/000)
2014 2015
Wages and salaries 15,443 15,731
Severance indemnity 1,091 1,120
Other costs 471 939
STAFF COMPENSATION 17,005 17,790
Direct taxes, other state taxes and duties 1,291 3,624
Social charges 4,986 5,036
TRANSFERS TO THE PUBLIC ADMINISTRATION 6,277 8,659
Direct local authority taxes and duties 17 200
Liberalities to the employees 40 64
TRANSFERS TO THE LOCAL COMMUNITY 57 264
REMUNERATION OF THE RISK CAPITAL 1,382 2,657
NET GLOBAL ADDED VALUE
24,721
29,370
20
HUMAN
RESOURCES
21
Human Resources are the greatest asset of Forgital Italy and the Group: before any great idea, product, or
service, there are people who think, plan, and get the work done.
We believe in the value of our collaborators and build a competitive edge on their knowledge, experience,
and commitment.
To this view, the Human Resources Manager and the Prevention and Protection Service are actively
stimulating participation and communication with ad hoc interventions, leveraging programs to develop the
potential of each individual and guaranteeing a safe working environment where teamwork, the culture of
know-how, and the reliability of processes are always of the utmost importance.
Forgital Italy is fully aware of the fundamental importance of its Human Resources for the achievement of the
company's objectives and, as a consequence, it constantly takes action to guarantee positive relationships
between the organization and individuals by clearly indicating incentivizing targets linked to production,
quality and also accident frequency indicators in line with the Company Mission and with the policies of the
Quality, Environment and Safety Systems.
EMPLOYMENT
With reference to the staff, we can confirm that, although the economic outlook is still somewhat uncertain,
with the difficulty of the economic comeback and growing competition, over the past year Forgital Italy has
increased the employment level, also thanks to continued investments made by Management in new plants:
at the end of the 2015 fiscal year, employees numbered a total of 413, of which 365 were men and 48 were
women. In 2015 we recorded 39 new employees and 21 resignations, with a turnover of 15%.
Employment by type of contract
97%
1%2%
indeterminati /permanent contract
tempo determinato /fixedterm contract
apprendistato /apprenticeship
22
At the end of 2015, the full-time permanent employment contract was the most common in the company
(388, amounting to 94% of the total staff); other forms of employment contracts are permanent part-time (22),
the apprenticeship contract (7), and temporary contract (3).
Breakdown between full-time and part-time
Age of staff and company seniority
The adjustment of skills to meet technical and technological evolution, the creation of new, highly specialised
professionalism, and the acquisition of specific know-how - especially in the aeronautic sector - are the
strategies that have characterised the approach Forgital Italy takes to managing its human resources: such
action results in the organisation of the staff by age, seniority, and academic qualifications.
The average age of staff members for 2015 is 41 while average employment is about 12 years, with a
decrease of one year in the average age and seniority remaining unchanged compared to the 2014 fiscal
year.
Age groups
97%
3%
full-time
part-time
18.40%
27.60%36.08%
17.92% Fino a 30 anni / up to 30yrs
da 31 a 40 anni / From31 to 40 yrs
da 41 a 50 anni / from 41to 50 yrs
oltre 50 anni / over 50yrs
23
Company seniority
Forgital Italy has responded to changing market demands with organizational activities for encouraging youth
employment as an opportunity for the future, through integration and professional growth paths made ad
hoc, and the employment of senior operators in order to exploit skills and experience already acquired while
training the younger counterparts. Forgital Italy has also supported the occupation of the workers that, in a
crisis period, can find some difficulties in their re-employment; Forgital Italy backed forms of flexibility and
versatility with the support of union representatives.
About 19% are university graduates, mostly in engineering, while 48% possess a high school diploma,
mostly from technical/vocational schools.
Education
55%30%
9%6%
fino a 10 anni
da 11 a 20 anni
da 21 a 30 anni
oltre 30 anni
2
98
38
198
77
licenza elementare / primary school diploma media inferiore / junior high school
attestato qualifica prof. / degree diploma media superiore / high school
24
Presence/Absence Trends
In 2015, given a total of 663,711 working hours (of which 29,940 hours were overtime), the personnel
recorded 151,700 hours of absence (equal to 23.9%). Among these, there were 110,980 hours between
holidays and leaves, 2,683 absence for redundancy, 25,446 hours for illness and 2,421 hours for injury; the
workers were never absent for strikes.
EQUAL OPPORTUNITY POLICY
Forgital Italy does not discriminate in any sense and it is aware of the importance of equal opportunity in the
recruitment and management of the personnel, and also in the work organization.
No employee can be discriminated against for reasons such as age, sex, sexuality, race, state of health,
nationality, politics opinion, religion or other causes.
Any violation of this right is recognized as a violation to the Code of Ethics in force.
As of 31 December 2015, the women employed by Forgital Italy amounted to 11.6% of the company
population; 95.8% of these women hold permanent employment contracts.
As part of the Job-Family conciliation program, Forgital Italy granted 36.4% part-time contracts to female
employees. Moreover, Forgital Italy currently employs n. 8 disabled individuals.
MANAGEMENT OF RESOURCES
The Company has always been committed to promoting general and specific activities in favour of the
workforce: this includes a correct approach during the recruitment and work start-up stage, training, the
improvement of socio-cultural conditions, the definition of proper pay levels, and a culture of reliability and
ethics in personal and professional relations with a view to transparency and correctness in the exchange of
information.
Due to the Company mission and to the available tools, the Human Resources of Forgital Italy are invited to
supply the maximum possible contribution in terms of engagements and results in the assigned roles and
duties.
The system evaluating the performances of the personnel is based on the “job description” and “skill matrix”
and is mainly oriented to favor the growth and development of the Staff, driving its behavior through an
equilibrated feedback between the Area Manager, the direct Supervisor and the single Employee, evidencing
strengths and improvement points, to build together the paths for individual growth. The company pays
particular attention to the analysis and definition of roles, as well as their compensation in comparison to the
job market and internal corporate equilibrium.
25
RESEARCH AND SELECTION
All choices in the selection of new personnel are oriented to the research of the best available professional
profiles, applying rules defining the economic level without any restraints due to race, sex, politics or religion.
Selection of the employees is directly managed by Human Resources staff of Forgital Italy; sometimes we
use temporary works companies or specialized consultants to research and select top and middle
management candidates. The Human Resources area is responsible for assessing suppliers, and for
identifying the "approved" ones in order to guarantee, in every step of the selection process, the respect of
Forgital values, which are:
LEADERSHIP
CUSTOMER SATISFACTION
INTEGRITY
EXCELLENCE
TEAMWORK
GROWTH
MEMBERSHIP
PROFITS
THE VALUE OF COMPETENCES
To increase and give value to the “human capital”, strategic resource for the success of Forgital Italy, the
Training Plan is the appropriate tool, consolidating the entire system of competences and guaranteeing the
continuous search for excellence in professions and performances.
The Training Plan is addressed to the entire Staff of the Company and aims to put the employee in a position
to work at his/her best inside the organization and the market, also taking advantage of special benefits
resulting from specific programs / public funds (eg Company funds “Fondimpresa” or “Fondirigenti”).
The general activity can be summarized in training programs dedicated to the consolidation of technical and
specialized skills and projects for the development of management skills.
Special attention was granted to methods and instruments for the analysis and the evaluation of the roles, to
evidence all gaps which need to be filled with integrated programs of training and development (seminars,
job rotation, support services).
26
During 2015, the company promoted numerous training initiatives, concentrating their efforts above all in the
area of Safety, in compliance with the State - Region agreement of 11/01/2012 and in Quality; in detail, for
Quality training internal courses were organised on the in-depth analysis of Qualifications and NADCAP
(National Aerospace and Defense Contractors Accreditation Program) courses for Thermal Treatment, Heat
Processes and Maintenance.
We are convinced that, to guarantee the efficacy of the training, a strong commitment of the trainee is
necessary: the methods implement logics of sharing learning objectives with the representatives and the
participants themselves, followed by measurement of the degree of course completed. The training programs
are customized in terms of content and teaching methods, according to the result to be achieved and the
target to which they are addressed.
The hours dedicated to classroom instruction amounted to a total of 6,549; hours of training for new
employees amounted to a total of 17,326.
Hours of instruction/ hours of training
Hours of classroom instruction
held by type
of training activity
17%
8%
73%
2%
SICUREZZA/SAFETY QUALITA' /QUALITY INDUCTION OTHER
6548.5
17326
ORE FORMAZIONE/HRS TRAINING ORE ADDESTRAMENTO/HRS INDUCTION
27
Building the future
The website www.forgital.com has an
area dedicated to human resources, "Job
and Career": job opportunities are
available inside and it is also possible
send the résumé, which will be used in
the Company database for eventual
employment selections.
The company has always actively
participated in initiatives in cooperation
with schools and it is well aware of its role
in offering training opportunities to
students of technical and secondary
schools in its territory, proposing
scholarships, professional training during the summer and Alternation between School and Work during
scholastic terms.
With the objective of continuing collaboration with universities throughout 2015, these school integration
programs represented one of our operative priorities:
Students attending their second year of a Masters in Mechanical Engineering were invited into the
company. After having visited the plant, the students were able to examine the logics of heat
deformation process simulation, thanks to the intervention of our technicians.
Other students from the University of Padua Aerospace Engineering department were also invited.
Following their guided tour of the plant, they were able to study the forging and lamination process,
especially in titanium super-alloys destined for the aeronautics sector.
Forgital Italy also participated with their own stand at the “Università Aperta Ingegneria 2015” (Engineering
University Open House) in Padua, a day intended to support young people about to graduate from university
and orient them in the world of business and in the job market. Within their stand, Forgital offered young
students the opportunity to participate in orientation interviews with Human Resources specialists. During the
following month, they were then able to seize another opportunity as three young engineers who had
received positive evaluations joined the company.
Our company follows attentively the world of university and is always interested in getting to know new
talents. As of today, Forgital has ongoing agreements with leading Italian universities, like: University of
Trento, University of Padua, University of Verona. In this way, Forgital is capable of offering undergraduates
the opportunity to develop their theses in the company on specific and pertinent topics, with the support of
qualified Tutors and with a subsequent real possibility of being selected for a position on our staff.
28
In 2015 training opportunities were offered to young students of upper-middle schools, undergraduates, and
recent graduates by providing summer internships, school-work experiences during the academic year, and
development projects. A total of 15 students have already participated in one of these initiatives.
UNION RELATIONS
The principles that rule relationships with Collaborators and Trade Unions are based on our Company’s
values; Forgital Italy aspires to have good relations with both parties, these ties are founded on mutual
respect.
In 2012 this great collaboration between our Company and the Trade Union Representatives gave rise to a
new supplementary agreement, valid for four years (2012-2015), that included, in addition to better
conditions for Forgital’s workers, a series of novelties:
a "multipurpose" programme has been started to increase company competitiveness and improve
workers' jobs from department to department; more specifically, this means that when dealing with
particular organisational needs, all workers may be asked if they are willing to accept temporary
assignments in other work stations with professional content equivalent in the same area or in
technologically equivalent areas, always in full conformity with safety regulations.
a Performance Award has been instituted related to indicators that monitor corporate efficiency and
productivity from both management and economic-profitability profiles.
During 2015, the Company and the Trade Union Representatives were mainly involved in managing the
fluctuation of work loads; at the end of the year, activities linked to the start-up of negotiations for the renewal
of the Second level complementary agreement started.
FORGITAL FOR SOCIAL INITIATIVES
The Corporate Management of Forgital Italy has always supported the work of local associations as well as
national and international organisations like the Italian Red Cross, Fidas, ANA and other provincial and local
associations dedicated to aiding the disadvantaged.
In 2015, Forgital Italy continued to contribute, in collaboration with the CFP San Gaetano – ENGIM Veneto
and the “I bambini delle fate” Foundation of Castelfranco Veneto, in the “Abilmente” project, dedicated to
disabled young people who concluded the training course while waiting to find a gainful employment: the
project involved about ten young people who were engaged every morning and followed by educators,
psychologists, and assistance operators to improve personal, work, and learning autonomy. Our company
has also participated with monthly contributions to the expenses involved.
29
To celebrate the 50th anniversary of the “Silvio De Pretto” Industrial Technical Institute in Schio, Forgital Italy
supported the creation of a book that commemorates the history of this successful technical school, which
has grown along with the industrial fabric of the local territory. An agreement was signed between the school
and the company in collaboration with Federmeccanica to establish the foundation of a mutual commitment
aimed at creating an effective connection in order to build the training plan, always in growing consideration
of the demands of the labour market.
CHRISTMAS PARTY
In December 2015 the traditional event reserved
for employees, families, and retirees of Forgital
Italy and the companies of the Forgital Group was
organised to celebrate the Christmas holidays.
For the first time, the event was held at the Sports
Centre in Arsiero, making it possible to host
employees and their families in a more spacious
and better organised venue.
Once again, we hosted local chefs who prepared typical local specialties for us; there was also an area
reserved for children, equipped with a bounce house and qualified activities personnel, who entertained them
until the arrival of Father Christmas. At the end of the religious celebration, the President of Forgital Italy
stood in front of the 800 present and thanked all collaborators for the results attained over the year and
briefly illustrated plans for future developments.
In 2014, Forgital Italy obtained the Energy certification in compliance with ISO 50001 standard: we invited
the children to prepare a drawing about "energy savings". An internal jury then selected the three best
creations in three different age categories. The winners received their awards during the event.
PRIVACY
For some time now, the Company has been using a specific scheme, certified by a specialized Company, for
the protection of confidentiality and safety of all information kept in its archives.
A specific procedure controls the rules concerning access, gathering, management, treatment, updating,
keeping and destruction of data and those concerning the confidentiality procedures.
30
PROTECTION OF
PEOPLE
31
GLOBAL APPROACH TO SAFETY
For Forgital Italy, the safeguarding of health and safety as well as
personal psycho-physical well-being is a moral responsibility
towards company employees and subcontractors.
To this view, a series of daily activities involving all corporate figures
and subjects (even if external) is carried out in our organisation to
ensure the continual improvement of the safety management
system.
The approach to safety and protection of workers’ health is based
on:
a continuous improvement of the risk analysis;
an integrated system of risk management, dangerous situations
and employees notifications;
research of continuous technical and organizational solutions to
resolve the problem directly from the source.
For the development of this activities Forgital Italy uses a Prevention and Protection Service of risks which
performs the tasks laid down by Legislative Decree 81/08 providing support for the implementation of
Company policy and the definition of appropriate work practices, maintaining a regular program of
inspections and audits in order to assess the degree of implementation, and the results obtained from all
business areas; to do this the Prevention and Protection Service relies on the collaboration of each Area
Manager.
The health and safety policy of Forgital Italy is focused on the commitment to diffuse and strengthen health
and safety cultures in order to obtain the objective of “Zero Injuries”, encouraging a greater attention and
awareness of the risks, improving continuously the standards.
All the technical areas (production, maintenance or general support) are constantly involved in the
preparation of solutions to improve safety in all production steps of Forgital Italy.
32
MANAGEMENT SYSTEM FOR SAFETY AND HEALTH OF WORKERS
Since 2005, Forgital Italy has been equipped with a Worker
Health and Safety Management System (Sistema di Gestione
per la Salute e Sicurezza dei Lavoratori, or SGSSL) in
conformity with BS OHSAS 18001, having obtained renewal of
the certification by the English Bureau Veritas again in 2015,
thereby confirming the conformity with requirements for the
management of health and safety measures in the organisation.
The system implies continuous cyclic
improvements, based on constant Planning,
Actuation, Verification and Review of all
applied and/or to be applied actions.
Through the implementation of appropriate
procedures, the system keeps all risks under
control, finds all critical areas, highlights
possible improvements, monitors its own
performances and conformities and reviews
all the activities of the organization.
From Risks Evaluation to Planning
The evaluation of risks is fundamental for prevention and improvement: Forgital implemented specific
procedures to prepare, for each performed action, a detailed analysis which shall:
define field of application, type and necessary time of application: this way, we guarantee that it is a
preventive more than reactive action;
prepare a classification of the risks to define which ones need to be removed or kept under control;
be in agreement with the actions and with the abilities of the already applied measures for risks-control;
offer ideas concerning the requisites of means and systems, the identification of needs for training and/or
development of operating systems;
monitor the actions necessary to guarantee efficient and quick implementation.
33
All improvement plans start from the results evidenced during the evaluation of risks.
Conformity to legislation
The full respect of reference standards for Health and Safety of the workers is indispensable for prevention.
In order to guarantee this throughout 2015, audits were conducted to evaluate if Forgital Italy is in conformity
with legal requirements.
The Organization pays constant attention to the implementation of obligations, deadlines and activities laid
down by the Consolidated Act governing health and safety in the workplace (Legislative Decree 81/2008 and
subsequent amendments Ext., and mod).
Internal audits
In order to evaluate and guarantee total application of the provisions required by the Management System, in
2015 audits structured according to ISO 19011 standards were carried out in all areas of the company.
In order to increase the effectiveness of these audits, it was decided to carry them out separately from the
quality audits, thereby making it possible to focus more intensely on issues inherent to safety. To guarantee
the effectiveness and reach of these activities, Forgital assigned a specially appointed and trained team of
twenty internal auditors.
In keeping with a logic of continual improvement, it was decided that the audits would be an opportunity for
the personnel involved to grow in their jobs: to this view, the audits were planned not only to evaluate the
system, but also to provide information, in-depth analysis, create engagement and dialogue.
34
Reviews
The Board, all Area Managers and the Prevention and Protection
Department meet at least once a year to review the general conditions
of the system and to plan all improvements. Moreover, usually on a
weekly basis, the Employer and/or Delegate of the Employer meet with
the Prevention and Protection Service Manager for a continuous
evaluation of ongoing activities and monitoring of those programmed.
35
ACCIDENTS
The general trend of accidents is described, in Forgital Italy, using the indicators given in the standard UNI
7249: in detail, using the index of frequency (IF) and the index of seriousness.
Index of frequency
The index of frequency describes statistically
the frequency of a specific accident imposing at least one day of absence from work per one million of
opportunities, calculated over the total worked hours (total no. of hours worked by all the employees of the
company).
Index of seriousness
The index of seriousness describes statistically the seriousness of the accidents imposing at least one day of
absence from work per one thousand of opportunities, calculated over the total worked hours (total no. of
hours worked by all the employees of the company).
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012 2013 2014 2015
30.5
17.1
21.118.4
25.2
17.8
11.88.9
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2008 2009 2010 2011 2012 2013 2014 2015
0.29 0.27
0.49
0.57
0.65
0.24 0.22
0.61
36
In 2015 there was an improvement in the accident index compared to
previous years and the best result ever was attained: the number of
accidents was reduced by 25%, from 8 in 2014 to 6 in 2015; the
frequency index also decreased by about 25%, from 11.8 in 2014 to
8.9 in 2015, while the seriousness index worsened due to an injury
that occurred in November 2014 and continued until 1 December
2015. The index went from 0.22 in 2014 to 0.61 in 2015. It should be
emphasised that the injuries that occurred in 2015 were all minor.
It is therefore considered necessary to intensify efforts to reach the
objective of “zero accidents”.
Missed accidents (near misses)
Forgital Italy promotes the cooperation of the entire staff and monitors also all the missed accidents, that is
all the dangerous situations which could have caused accidents and, on the contrary, ended without any.
This indicator is fundamental for daily prevention since, most of the times, the accident is the last event of a
series of many missed accidents: this is the reason why it is necessary to get to know any possible
dangerous situation to prepare appropriate preventive actions.
Evaluation and removal of the causes of accidents
All accidents and missed accidents are examined by the Prevention and Protection Department and by the
involved personnel, to identify the primary causes of the events and prepare their removal. This activity is
regulated by a specific procedure of the System for the Management of Health and Safety, and helps to plan,
after the determination of the causes, appropriate actions to prevent further accidents and missed accidents.
Decrease of accidents: insurance savings
Also in 2015 Forgital Italy filed an application to INAIL requesting a decrease of the insurance premium (D.M.
12/12/2000). This opportunity has been granted to Forgital for ten years now, since INAIL acknowledged that
the supplied information revealed constant engagements and positive results in decreasing the risks for
safety and health of the employees and the consequent reduction of professional accidents and diseases.
TRAINING AND INVOLVEMENT
The entire staff of Forgital Italy is the key to good results in the prevention of accidents and in the protection
of health: to guarantee efficient involvement in this activity, the Company is constantly working on raising
37
awareness and developing competences through training and information addressed to all professional
profiles of our company.
In 2015, 4100 hours of training were held on the specific topics of safety and prevention, equal to 48% of all
the training held for employees year-long.
Below is a comparative analysis between hours of training held and the number of accidents that occurred
over the past six years:
Trend of hours of
training and
number of
accidents
Given the close correlation between the number of accidents and the hours of safety training offered,
Company Management, acting on the proposal made by the Prevention and Protection Service, believes it
would be opportune to increase training interventions and continue dialogue with Supervisors and all
employees on safety topics. The chart above can be better understood in that classroom training and on-site
meetings noticeably reduce the number of accidents. Indeed, such activities are intended to heighten the
operators' awareness of issues linked to safety in the workplace. Such an improvement may be credited to a
different cultural approach marked by the promotion of a more open and
sincere dialogue among the various company players. Hence 2015 once
again confirmed the results of previous years in absolute terms of
injuries and hours worked.
3350
21351746
2594
2320
4435 44404100
22
11
14
12
16
12
86
0
5
10
15
20
25
0
1000
2000
3000
4000
5000
2008 2009 2010 2011 2012 2013 2014 2015
ore formazione n° infortuni
38
Specific training
Over the course of 2015, training held on the topic of health and safety dealt mostly with the correct
management of risk for any task, training in the correct use of forklifts, courses to update workers on the
correct use of lifting devices, and the management of emergencies. All the training interventions were
planned by the Prevention and Protective Service in agreement with the department managers,
personalising the topics dealt with in relation to job specifications, risk levels, behaviours observed, historical
events, and existing procedures.
All the members of the Emergency Management Squad (Squadra Gestione Emergenze, or SGE) are
included in a periodic updating programme that requires weekly information/training meetings. Overall,
during 2015 the Emergency Management Squad was involved in 525 hours of training.
The training courses also provided workers, their Heads and the Prevention and Protection Service with
occasions for meeting, sharing information and viewpoints on the basis of a dialectic approach aimed at
identifying critical situations and opportunities for improvement.
Training of assigned personnel
The training of department and area chiefs is deemed to be fundamental for managing the activities in the
very safest conditions.
In 2015, meetings and training courses were held pursuant to the State-Region Agreement, for department
heads and shift supervisors for a total of 306 hours, on topics linked to the responsibilities assumed in these
positions, the increase in technical safety and environmental skills, and the covering of specific topics
required in order to improve safety standards.
Meetings and team briefings
To meet the different people involved in safety issues, the Prevention and Protection Department organizes
periodical meetings and verifications.
These meetings are an important plus for the management
of safety issues, in addition to the daily and contingent
activities of all operational areas:
with the Employer (at least monthly) to evaluate
performances and safety subjects, current projects,
results of examinations, problems and operational
planning of activities;
39
with Assigned Personnel (every month): to discuss accident trends, to involve and coordinate the various
departments of Forgital Italy in prevention and protection programs;
with Safety Representatives of the Staff (monthly): to evaluate needs and requests of the staff, to inform
on safety and health issues, to coordinate joint actions to decrease accidents;
team briefings (according to necessity): short meetings taking place directly in the department with the
staff, to inform them about current projects or on specific operational issues.
Internal communication
The Management System for Health and Safety includes many specific procedures to organize the
communication and favour the flow of information, univocal assignment of responsibilities, monitoring of
performances and coordinated management of problems. The management tool “Nilo” is very important: this
tool was developed by the IT service in Forgital Italy to facilitate the diffusion, access and management of the
flow of information throughout the company, as well as its security.
The “Forgital for Safety” project
The stakeholders' engagement project known as "Forgital for Safety", begun in 2007, gave positive results
also in 2015. This project entailed huge internal communications activities and employee awareness creation
by means of internal communiqués, posters affixed in production areas with images commenting on
dangerous situations which have actually occurred in the company and the associated precautions, actions
for increasing commitment and the launch of a "Safety Observation Program".
This activity involved the workers themselves, who contributed by notifying management about dangerous
situations and/or near misses, poor behaviours, and provided suggestions for improvement (in 2015 we
received 73 suggestions).
Each worker has been provided
with a pocket book for this
purpose with pre-prepared report
sheets that can be posted in
special mailboxes installed in the
plants. The graph shows the types
of reports received:
Notifications received in 2015
12%
15%
26%0%
28%
14%1% 4%
Situazione pericolosa Mancato infortunio
Richiesta miglioria Spogliatoi/Servizi
Richiesta manutenzione Mancato rispetto procedure
Traffico/carenza di spazi Proteste
40
SAFETY TECHNIQUES AND INNOVATION
Professionalism and competence are characteristics that distinguish Forgital Italy in development and
implementation for the improvement of the safety of machines, plants, equipment and work areas.
When it comes to their capacity to respond and manage safety issues or emergencies, Forgital Italy
continues along the same path as previous years with the notification, monitoring, and emergency and fire
alarm system, involving the personnel of the Emergency Management Squad in dynamic activities, like drills,
aimed at optimising their response and management skills should the need arise.
The year 2015 also marked the continuation of interventions aimed at making machinery safe from both
technical and legal viewpoints; moreover, the illumination system of some departments was also
implemented and new work equipment was purchased.
In order to guarantee continuous technological and safety improvements, in 2015 particular attention was
once again paid to the management of forklifts, mobile
platforms and lifting equipment for Forgital Italy
manufacturing.
This was followed by the installation of the load control
system and driver protection on forklifts, which were adapted
to conform with the latest and numerous regulations
regarding gantry cranes and lifting equipment.
Then a course on prevention techniques and protection from
risks was held and is ongoing even now, with the collaboration of qualified partners, on the adaptation and
development of new systems. This makes it possible to guarantee, from the very beginning of the planning,
the safety of all the equipment made available to workers and to limit any potential risks related to the start-
up or use of new machines.
MANAGEMENT OF SAFETY OF THIRD PARTIES
In the belief that the safety issues must involve all suppliers and contractors operating within or on behalf of
Forgital Italy, it was decided to raise awareness and education about the risks and safety procedures of the
production areas.
During the year 2015, special meetings were held for carrying out risk assessments for every individual
construction site and/or outsourced activity. These meetings not only involved the contractors, but also all
those engaged in specific interventions.
To guarantee the complete compliance with required standards, the procurement contracts were completely
revised and integrated with obligations concerning safety, to guarantee correct preventive information while
preparing the order and to evaluate the adequacy of the required competences.
41
For the sake of transparency and cooperation, if situations possibly deviating from security conditions are
found, the previous assessments may be revised according to work progress.
Guests and Visitors
Every year, Forgital Italy receives many guests visiting the production
areas (customers, school-groups, suppliers):
their safety and comfort during the visit are constantly monitored by the
entire staff of Forgital Italy. To guarantee the safety of guests and
visitors, and make their stay comfortable, all the involved personnel was
trained on safety procedures, personal protective equipment to be used,
safety paths and emergency procedures. The Personal Protective
Equipment for guests and visitors was also increased while the protected
routes for visiting the production departments were extended.
ACCOUNTING FOR SAFETY
In 1997 a reference model
to monitor specific
accounting indicators
concerning the protection of
health and safety of workers
was defined and
progressively developed.
42
All investments and expenses concerning improvement activities have constantly been monitored, to prepare
evaluations of the adequacy and efficacy of the different initiatives and, as a consequence, to define
appropriate corrective actions.
Below is a report on the 2015 costs for the management of security.
COST ITEM Euro
Personal Protective Equipment € 145,023
Collective Safety Devices € 2,586
Occupational clothing € 29,225
Technical consultancy € 64,378
Security € 98,234
Maintenance activities (and materials) on machines and systems for the treatment of production waters, purification, and drains.
€ 237,395
Replacement/technical improvement of safety equipment and systems
€ 1,113,948
Workplace hygiene management (industrial cleaning, etc.) € 533,428
Safety controls and interventions on lifting and handling devices and equipment
€ 114,926
Health supervision € 58,138
Costs sustained for maintenance interventions and materials for the safety-environmental sector
€ 114,812
Environmental analyses € 57,110
TOTAL
€ 2,512,096
43
These expenses do not include the “fixed” ones, such as the INAIL premium and the premium for integrative
policies that Forgital Italy subscribes every year for employees involved in professional and extraprofessional
accidents.
Other investments made during 2015 must be added that, although they did not directly address safety
exclusively, in any case have an indirect impact on it. In particular, these regard the acquisition of new
systems, the upgrading of existing ones, as well as extraordinary maintenance interventions.
44
45
ENVIRONMENT
PROTECTION
46
ENVIRONMENTAL POLICY
The environment is a universal resource to be
protected and respected for the interest of future
generations and is also a development factor and a
competitive advantage in a global market increasingly
caring to the quality of corporate behaviour.
Environmental sustainability of production processes
helps to meet stakeholders’ needs, maintain the
essential harmony with civil society and support the
development of the company.
Forgital Italy therefore operates with environmentally
responsible and respectful methods in order to limit
the impact of the company's activities, promoting the
reduction of consumption, efficiency, and
sustainability in the use of energy and materials.
The mission and guidelines of the organisation
concerning safety, health, and environmental
protection were defined in compliance with leading
international standards as well as in keeping with
specific laws on environmental protection.
The following strategies were implemented by Forgital Italy to constantly improve environmental
performances:
identify environmental issues and environmental impacts of the activities of the Company, to remove or
reduce all negative effects, considering the respect of the standards as a fundamental starting point;
manage all production activities applying an Environment Management System in agreement with
international standards;
follow the principle of sustainable development and do everything possible to apply it;
evaluate the environmental impact of products and production with a “full life cycle” approach and
promote the development of production technologies which reduce the impact on environment;
contribute to safeguarding natural resources also through re-use, recycle and recover of the resources;
apply the most advanced technologies to reach excellence in environmental subjects, favoring contacts
and exchange of information with qualified scientific groups;
actively involve the different levels of the structure and those cooperating with it;
47
take care of the harmonic development of its own site in the natural and social context;
communicate and diffuse, inside and outside the Company, environmental information, developing the
cooperation with customers, suppliers, public and all other involved parties;
drive all process controls through the use of tools such as periodical reviews, audits and indicators of
performance;
manage the human resources to promote the growth of competences and the direct correlation between
acknowledgement and performances;
apply continuous measures to reduce the risks for the environment.
THE ENVIRONMENT MANAGEMENT SYSTEM
The full efficacy of the Environment Management System of
Forgital Italy, certified in 2007 in agreement with the international
standard UNI EN ISO 14001:2004, was confirmed also in 2015
with the renewal of the certification granted by the English office
of Bureau Veritas.
During the audits no anomalies were evidenced with regards to
the environment and the Environment Management System:
The company's ability to control and respond to the environmental
aspects and impacts was adequate to pursue an effective
management of the activities and improved its environmental
performance.
As already described for the Safety Management System, this
System is based on cyclic Analysis, Planning and Implementation
of actions, Verifications of results and Reviews of the entire cycle, as described by the following scheme.
48
Over the course of 2015, environmental management activity was focused on pursuing improvements, a
strategy that has always distinguished the company in its attention to these issues:
limiting and reducing energy consumption;
improving waste management;
reducing air pollution more effectively;
reducing the acoustic impact on the surrounding environment.
This programme has advanced through the consolidation of operative control procedures, the adoption of
new technologies and management methods for energy savings, attention paid when acquiring efficient
systems, regulatory upgrading to respect and comply with legislation currently in force.
AIR PRESERVATION
In 2015, we did not evidence any anomalies or critical points due to the emissions related to Forgital Italy
production cycle: these emissions are mainly due to the process of methane gas combustion in re-heating
furnaces and heat treatment of particular forged/rolled pieces. The values of NOx emissions are within 46%
of legal limits, while dust analyses indicate an average presence of 17.5% compared to legal limits.
Over the course of 2015 an air monitoring campaign was planned.
The monitoring campaigns evidenced that the actual standard is fully respected and that the emissions are
far away from the maximum accepted levels.
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WASTE MANAGEMENT
The total production of waste in 2015 amounted to
16,098 tonnes, over 93% of which consisted of metal
rejects and machining scrap.
The absolute value of the quantity of waste produced
compared to 2014 decreased by 4.3%.
Instead, production decreased by a little less than 13%
in 2015 compared to 2014 in the number of pieces and
by about 7% in terms of weight, while the production of
specific wastes increased by about 3%.
During 2015, the differentiated disposal of wastes
inside the production area was upgraded constantly,
thanks to training and awareness raising of the
personnel, a careful management of scraps and their
correct disposal.
More information about the methods of selective
disposal and the types of waste that can be separated
was also provided.
Exhausted oils and exhausted lead batteries are directly given to statutory consortia to recover them, while
other types of waste are given to other authorized companies.
Thanks to the selective waste collection and to the correct management of processes, products, materials
and waste materials, about 97% of all the produced waste is recycled.
To guarantee efficient and correct procedures, the assigned personnel is specifically trained and informed on
the internal procedures and on the obligations imposed by the actual law; we check the authorizations of the
service companies and we control how they collect, transport and finally treat the waste.
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MANAGEMENT OF WATER RESOURCES
Water resources are especially important for all productive activities of Forgital Italy. Water, in fact, is used in
the hardening processes and in all cooling typologies, both direct (eg. cooling of forged / rolled tools) and
indirect (cooling of furnaces doors, heat exchangers). Particular attention is due to its use, conditioning,
cooling and recycle on productive process in order to constantly reduce its consumption and to maintain the
plants in good conditions.
All the water used in the process is recovered and cooled by evaporative towers and reused after an
eventual previous treatment of oil separation and filtration. Evaporation losses that occurred during the
cooling processes in the evaporative tower are reintegrated through water withdrawing from (authorized)
artesian well.
Also, water for civil use is collected from the well. The potability is checked through analysis made every six
months by two external certified laboratories.
The water consumption, represented in the graphs below in both absolute terms and in relation to the overall
production in tons, are monitored monthly in order to identify potential anomalies in the systems and, in any
case, push towards a continual rationalisation and reduction in consumptions.
In 2015, the total water consumption (artesian wells and aqueduct) in absolute terms remained more or less
constant compared to 2014 (-0.7%).
Total water
consumption
However, specific consumption compared to production figures in weight results in an increase of nearly 7%.
The result in terms of specific consumption indicates the influence of the recent shift in the production mix
towards materials in Titanium alloy, which has a specific weight about one half of traditional materials.
0
50000
100000
150000
200000
250000
300000
350000
400000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mc
51
Water consumption
relative to production
volume
The analysis of water consumption in relation to business instead, highlights a reduction in specific
consumption of about 5% compared to 2014, which probably results as the most accurate interpretation in
support of the ongoing efforts that the organisation continues to implement with a view to optimising and
rationalising the consumption of this precious resource.
In terms of the water introduced into the public sewer, a minimal amount as compared to the quantity taken
(this is only the bleeding discharge for the balancing of the water volumes or the salt content of the process
water), Forgital Italy performs analyses every three months to verify if the maximum values allowed by Law
are actually respected. In 2015, all the parameters analysed resulted in values that were always lower than
the limits allowed.
SOIL AND SUB-SOIL PRESERVATION
Also in 2015 our Company performed an analysis campaign to evaluate the hydro-chemical condition of sub-
soil and the phreatic-thermal situation. The results confirmed the excellent quality of these environmental
sectors and the respect of the “Threshold Concentrations of Contamination” of the Law (TCC, in Italian CSC,
“Concentrazioni Soglia di Contaminazione” - Legislative Decree 152/2006), proving the correct management
of the production activities.
Forgital Italy adopts precise procedures to manage the activities in order to prevent any accident that may
impact the quality of soils, sub-soils, and the underground water table.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mc
/ to
n
52
TREATMENT OF RAINWATER
During the second half of 2015, the project
for the creation of a system to provide for
the recovery, treatment, and reuse of
rainwater from the first and part of the
secondary rain took the first steps.
The project, presented in a preliminary form
to the Provincial Administration in 2012, aims
to fulfil the provisions of the Water
Conservation Plan pursuant to Art. 39 and
was implemented following a long and
complex rainwater sampling and analysis
process to determine the volumes to be
stored and purified before being drained into runoff.
In reality, the configuration of the final project also included the upgrading of the existing chemical-physical
system and the reuse of purified rainwater in the production process, to compensate for the quota lost due to
evaporation in the production water cooling process, and with the final objective of thereby reducing the
drawing of water from wells and the impact of runoff on the end receivers.
The upgrading of the chemical-physical plant capacity, passing from approx. 7 to 30 m3/h, started operating
in mid December 2015, while the whole plant will be operational by June 2016.
CONTROL OF CHEMICAL AND DANGEROUS PRODUCTS
Before we make any purchases, the toxicity and environmental properties of every chemical product
(lubricant, detergent or product for the analysis laboratory) is accurately checked, to prevent, from the
beginning, possible negative effects on environment and safety.
The internal procedures to control the products guarantee correct storage, transportation, use and disposal:
to do so, all the staff has access to the general database of the safety sheets (Material Safety Data Sheets)
and is trained on handling of products.
Forgital Italy has provided for the preregistration and registration (in relations of specific deadlines) of the
chemical products within its competence, in accordance with the provisions of the REACH Regulations (EC),
no. 1907/2006, and structured itself in order to control the chain of its suppliers to ensure the implementation
of the rules governing chemicals.
53
Forgital Italy also constantly checks that its products do not contain any of the substances included in the
Candidate List above the limits defined in the Reach Regulations (0.1% weight / weight), in accordance with
the periodical updates published by the European Chemicals Agency (ECHA).
Kits for containment and cleaning-up are located in all areas where potential spilling could damage the
environment: the personnel of the Emergency Management Team was trained to prompt interventions and
use of specific supplies.
The processes in Forgital Italy do not involve the use of products which could be dangerous for the ozone
layer: the only dangerous ones in the production site are the refrigerant gases of the air-conditioning
systems. These systems undergo periodical maintenance and efficiency checks.
54
ENERGY
MANAGEMENT AND
ISO 50001
55
Energy in a broader context, intended mainly by Forgital as
methane gas combustion and the use of electric energy and
diesel fuel for transport, represents one of the leading energy
sources for carrying out production activities in terms of impact
on costs.
Forgital has always paid particular attention to the rational use
of this important production factor, favouring the installation of
efficient systems and providing thermal recovery wherever
possible.
Therefore, energy efficiency is the most effective solution for
reducing energy costs and climate-altering emissions, leading to
both economic and environmental benefits.
However, the increase in energy efficiency in the end users of
energy involves a great number of decisions, behaviour
modification, interventions and perfecting of ways to optimise
energy management.
This coordination is carried out in Forgital Italy by the Energy Manager – represented by the Plant Technical
Office Manager – together with Top Management, in order to guarantee the utmost performance in energetic
terms and ensure the search for new solutions to reduce consumption.
Indeed, it was Top Management that pushed Forgital Italy to undertake a program that led to ISO 50001
Certification – Energy Management Systems back in 2013.
The ISO 50001 standard provides additional tools for the identification of areas where energy savings can be
improved, the definition of actions aimed at improvement, actuation and control of the same within a
structured system where the corporate managers and authorities in the field of energy are defined.
The positive results of 2014 were confirmed by supervisory audit conducted in December 2015.
These latest achievements represent the culmination of a series of activities aimed at Energy Savings,
undertaken a few years ago and overseen by the Plant Technical office (Ufficio Tecnico Impianti, or UTI)
who, backed by considerable investments and with the proactive involvement of all corporate levels, led our
company to effectively improve Energy Performance with notable impact on corporate performance in
general.
Therefore, the certification obtained is an important result for Forgital Italy, and can even be considered a
competitive edge, both for the improvements in energy performance - with a positive impact on production
processes, for the economic return of the same, and for visibility with clients, above all foreigners, many of
whom consider energy management an added value.
56
Another point worthy of note is that as of today there are very few Italian companies that have obtained
certification compared to the rest of Europe, so Forgital Italy is once again a leader in our sector.
ENERGY BALANCE SHEET 2015
In absolute terms, 2015 saw a reduction in the consumption of the main energy carriers, electrical energy,
gas, and diesel fuel, respectively by 1.3%, 4.9%, and 1.6%. In terms of overall costs, the reductions
amounted to about 20%, thanks to the crucial influence of oil price trends during the second half of 2015.
More precisely, this influenced about 2% on the specific cost of electrical energy and nearly 12% on natural
gas.
Total energy
consumption
However, considering the nearly 7% decrease in production activities in terms of weight compared to 2014,
there was an increase in energy consumption for electrical energy, gas, and diesel fuel of 6.1%, 2.3%, and
5.5% respectively.
Relative energy
consumption
0
5000
10000
15000
20000
25000
30000
2009 2010 2011 2012 2013 2014 2015
elettricità metano gasolio
0.000
0.050
0.100
0.150
0.200
0.250
0.300
0.350
0.400
0.450
2009 2010 2011 2012 2013 2014 2015
TEP
/ t
on
elettricità metanogasolio totaletotale al netto degli scarti
57
The justification of such figures is linked to the fact that the company has been moving towards more energy-
consuming production processes over recent years, above all concerning the processing of special materials
that require numerous heat cycles, resulting in a greater specific consumption of gas compared to more
traditional products. Moreover, the most important quota of these special materials consists of Titanium,
which has a specific weight of about half of the traditional materials.
If we analyse the direct consumption to the turnover, we see how the shift of activities towards more complex
and technologically advanced markets, led to a reduction of specific consumption of about 8.5%.
Although the company has been moving towards more energy-consuming production over recent years,
above all concerning the processing of special materials that require numerous heat treatments and hence a
specific consumption of gas greater than that for traditional products, the adoption of efficient plants and
optimised operating procedures, above all concerning the calibration of combustion plants, has balanced this
effect and guaranteed on a general level, an improvement in energy efficiency intended as a ratio between
consumption (TOE Tons of oil equivalent) and total production.
u.m. 2009 2010 2011 2012 2013 2014 2015
Electricity KWh 20976460 23036966 23878040 23390142 23742065 24673811 24348280
Natural gas SC3 20846545 22275874 22926884 20301087 21702970 21577323 20519276
Diesel fuel Litres 285345 305045 312000 292000 309000 321000 316000
Equivalent energy consumption
Electricity TOE 5244.12 5759.24 5969.51 5847.5 5935.5 6168.45 6087.07
Natural gas TOE 17094.17 18266.22 18800.04 16645.9 17796.4 17693.4 16825.81
Diesel fuel TOE 255.78 273.44 279.67 261.75 276.98 287.74 283.26
Total
consumption TOE
22594.07 24298.9 25049.22 22775.15 24008.93 24149.59 23196.14
Relative Energy Consumption (ref. tons produced)
Electricity TOE/ton 0.09 0.09 0.09 0.103 0.093 0.092 0.098
Natural gas TOE/ton 0.29 0.27 0.28 0.292 0.28 0.265 0.271
Diesel fuel TOE/ton 0.0043 0.0041 0.0041 0.0046 0.0044 0.0043 0.0046
Total
consumption TOE/ton
0.38 0.36 0.37 0.3997 0.3775 0.3613 0.3736
Relative Energy Consumption (ref. turnover)
Total TOE/€ 0.00012 0.0002 0.00017 0.00015 0.00015 0.00016 0.00015
58
In the chart below, the redistribution of heat recovered in the various areas of the plant is highlighted, while
the second chart highlights the decrease in the consumption of gas used in the boilers broken down by
various users (heating and purification) as a result of the activation of the thermal recovery system.
Use of heat recovered
59
Reduction of consumption of gas for heating and purification as a result of the activation of heat
recovery system
ILLUMINATION – “RE-LAMPING” PROJECT
The intervention, which took place in
several stages, was completed in January
2015, resulting in the substitution of about
600 metal iodide light bulbs with high-
efficiency LEDs. We have been able to
appreciate the initial results, that record
an important reduction in consumption of
about 35% compared to 2013 and of 30%
compared to 2014. In addition to this
benefit in energy savings, the overall
improvement of working conditions and
safety due to an increase of about 40% in
the illumination must also be mentioned.
The replacement of light bulbs with new LED-technology lightbulbs took place during 2015 in the “grinding”
departments and in the so-called “OME2” building, for both indoor and outdoor lighting.
60
In February 2015, experimentation for the automatic control and management of the new light bulbs was also
actuated. The technology installed makes it possible to manage and regulate the wattage of each individual
light bulb according to a timed program or according to outdoor light conditions, in addition to providing
diagnostics and an immediate verification of the efficiency of the light bulb itself.
The experimentation began in the mechanical workshop in order to evaluate its functionality and reliability.
The dimming (reduction of wattage up to the point of turning off the light bulb) in function of natural lighting
conditions has proven itself to be effective up to this point in time, thereby guaranteeing further decreases in
consumption. Today this has been applied throughout the plant.
Finally, in 2016, the intervention on the outdoor lighting of the yards and perimeters is scheduled, so as to
complete the operation on the entire plan.
ENERGY EFFICIENCY CREDITS (TITOLI DI EFFICIENZA ENERGETICA, or TEE)
In order to encourage resorting to energetically efficient technologies, two Ministerial decrees were passed in
2004 and two provisions were subsequently integrated and modified up until the recent Ministerial Decree of
28 December 2012.
The proposed mechanism, which was innovative on a global level, calls for the creation of a market of
energy efficiency credits attesting to interventions carried out, in some ways similar to those of the green
certificates adopted for the promotion of renewable energy sources for the generation of electrical energy.
Since February 2013, the Energy Services Manager (Gestore dei Servizi Energetici, or GSE) has been
dealing with the assessment of projects, of savings certification, and numerous other operational aspects.
The Energy Savings Certification carried out by the company is guaranteed through the emission of special
certificates: the Energy Efficiency Credits (Titoli di efficienza energetica, or TEE), also known as white
certificates. Nearly every project that entails a rationalization of end energy consumption (provided that it
results in savings above specific thresholds for the type of intervention) can be admitted to the mechanism,
from lighting systems to boilers, from thermal solar panels to cogeneration, from electrical motors to
interventions on industrial processes.
Every project presented to the Energy Services Manager (and approved) benefits a certain number of
certificates per year in function of the savings that a specific project makes it possible to obtain. The project
lasts 5 years. Once the certificates have been earned by the company, they can be exchanged (or sold) on
the market organised by the Electrical Market Manager (GME - Gestore dei Mercati Elettrici) and valued in
function of the "market" value that the certificate has at that time: so in addition to the advantage resulting
from lower consumption, the company can also benefit from a further economic contribution that makes the
intervention even more convenient than a reduction of the payback.
At the end of 2013, Forgital presented the Energy Services Manager with the following projects, linked to
efficiency interventions already completed, in order to obtain the Energy Efficiency Credits:
Hot water production system through the thermal recovery from furnace exhaust fumes;
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Use of regenerative burners on forge furnaces;
Thermal recovery on hot-air burner furnaces.
In 2015, the last year of the thermal recovery and the first two years of the projects were also taken into
account.
During 2015, another two projects for the new forging furnaces were also presented.
At the beginning of 2016, the procedure for the lighting system revision project was presented.