The company has its origins in Kovohuty Hron, a state enterprise that was established in 1951. The first tonne of aluminium was produced in 1953 and the company was renamed Závod Slovenského Národného Povstania (The Plant of Slovak National Uprising), after the 1944 armed insurrection against a Nazi quisling. In 1967, final products and aluminium semi-products expanded the product range and, in 1973, aluminium castings production began.

“ZSNP was privatised in 2002,” explains Mr. Miroslav, “when it was bought by Penta Investments, s.r.o., a private equity firm based in Bratislava, Slovakia and specialising in medium and large company acquisition and restructuring. At that time the Slovak government decided to sell our company, as they wanted to find an investor who would restructure the organisation and improve the company’s results. Penta Investments changed the company’s name to simply ZSNP Incorporated and, in 2003, broadly restructured ZSNP, applying a company strategy in 2004.”

Today, ZSNP is a holding company with a number of subsidiaries and divisions, providing products and services that range from firefighting, through industrial park maintenance, to the production of tools and moulds predominantly for foundry technologies. Mr. Miroslav throws light on the activities of his particular division: “Right now our division within ZSNP, Finalcast, is responsible for producing aluminium alloy castings using gravity ingot-mould casting and low pressure casting. 

Growing with the environment

Another very important reason for the company’s privatisation was to find a solution to the ecological problem of the waste from the electrolysis process. ZSNP was charged with gradually reducing the environmental impact of its production activities and eliminating any historical damage, thus, making environmental protection one of its main priorities. A sludge bed had been created as a result of the production of aluminium oxide from bauxite over many years and this represented a serious ecological threat. The answer is costly; but involves building a bentonite wall to prevent alkaline water leaking into surrounding subterranean waters and the removal of the alkaline water prior to reclamation over a period of six years from July, 2006. “€50 million has been invested specifically for this purpose. While the problem is still in the process of being solved, the steps that have been taken so far have been successful,” affirms Mr. Miroslav. 

ZSNP has the unceasing aim, by optimising usage and recycling, to decrease the volume of water it uses in its production processes. It also aims to significantly reduce its discharge of pollutants into the local river Hron. In all its future operations, the company is committed to certain principles that require it to comply with high environmental standards, take preventative measures, set up environment protection programmes that include the training of employees, be open and transparent and carefully monitor results.

The company has, simultaneously, while investing in reducing the environmental impact also increased its production capacity, as Mr. Miroslav explains: “Since we have been owned by Penta Investments there has also been considerable investment in new machines and buildings. The purchase of heat treatment furnaces, casting machines (low pressure and gravity) and a sand core shot-blasting machine have substantially expanded our production capacity. Pro-duction was trebled in our heat treatment facility and our low pressure casting capacity has doubled. The sand core shot-blasting machine was a new technology for us and has provided us with a new opportunity.

“The investment has been continuous and as a gradual ongoing process. We haven’t taken any big steps; but we are making lots of small steps quite rapidly. ”

Die casts with different outcomes

By means of its gravity die casting the Finalcast division has the flexibility to produce aluminium castings of great complexity. Its low pressure die casting facility, on the other hand, is suitable for the production of large castings that need to meet demanding specifications concerning dimensions and weight, as well as oil- and water-proof characteristics. Using these processes, the division produces such products as switch-board cases, pump housings, oil tanks, distribution system and compressor components for customers in the manufacturing, automotive, electrical engineering and gas industries. The customers of its gravity die castings include DEUTZ AG, Modine Europe GmbH and Albert Handtmann Metallgusswerk Gmbh & Co.KG of Germany and Grundfos A/S of Denmark and Hungary. While its low pressure die castings are purchased by such companies as ROSE Systemtechnik GmbH, FRAMO MORAT GmbH & Co.KG, SIEMENS AG and Nissens Kuhlerfabrik A/S of Germany.

Mr. Miroslav elaborates: “We supply to mainly the non-automotive markets – the machinery, electro-technical engineering and energy sector. 15 percent of our production is dedicated to automotive products; but for heavy duty vehicles and trucks rather than passenger cars. For instance, we produce air-cooled cylinder heads for diesel engines. Our products go mainly to Germany, Denmark and Hungary and have increased significantly in quantity and value. We supply to Sweden too and the Czech Republic. Our focus is on Western Europe generally and specifically on Germany.” 

Strengths to build on

ZSNP sees professionalism as being at the very foundation of its success and its aim is to competitively produce top quality innovative products that meet the requirements, satisfy the needs and exceed the expectations of its customers. To achieve this, top management is tasked with implementing quality management systems in compliance with ISO 9001 and ensuring the training of staff in order to develop their potential and talent. 

In this regard, the company aims to support individual development of employees, teamwork and an open corporate culture. This involves not only demonstrating appreciation for the best employees and taking action on work safety in compliance with OHSAS 18001 and on healthcare; but also supporting social, cultural and sporting activities for employees and their family members. In addition, ZSNP’s commitment to the improvement of its people is evidenced by its co-operation with, amongst others, the Metallurgical Faculty at the Technical University (TU) in Kosice and with the Material & Technology Faculty of Slovenska Technicka Univerzita (STU), Bratislava. In this way the company builds on its great strength of having produced aluminium castings for over half a century and further develops the concomitant loyalty, skills and experience that have accrued. 

This ties in neatly with the company’s strategy, particularly in a low cost country, to add value by improving the mechanical, structural and surface qualities of its products by means of shot blasting, tumbling and vibratory deburring and cleaning of castings, impregnation, heat treatment, milling and turning. Finished quality is ensured by the use of rigourous tests to check chemical composition, parameters such as hardness, strength, ductility and yield point, dimensions, structure, porosity and internal integrity. Mr Miroslav elaborates: “This comprehensive range of finishing processes has increased the value of the parts we produce and is a very important attribute that has contributed to our success. 

“Slovakia is a low cost country and many customers from Western Europe moved their production to central Europe and, in our case, we, for example, are offering higher added value. We started to provide machine parts and this brought us new projects from our customers. There are several other aluminium smelting plants in this area; but, in general, they are not our competitors, except in the case of a few projects. Overall, all the foundries here have increased their capacity in the past year.”

Going with the flow

While the global financial crisis has injected a great deal of uncertainty into trade and industry, based on past performance, Mr. Miroslav is confidently optimistic about the future: “Over the past few years we have increased production to meet growing market demand. Slovakia’s membership of the European Union in 2004, did not help this company in the area of finance; but, since we were already doing business with Western Europe, it has made logistics simpler by removing delays at borders. This has been beneficial and during the last five years our turnover has increased by 100 percent; but, compared to the year 2000, our turnover has trebled. 

“Now we have plans to increase our turnover by 20 to 30 percent over the next year. We see the current global recession as an opportunity and are looking for new ways in which to offer value. In this regard, we are open to new projects. Our owner’s philosophy is that if we have a project that is good for our future it is open to invest and provide all the necessary equipment for the project in order to develop the business. We are undertaking some open discussions with existing customers and are actively seeking new customers. There are different projects in the offing. We are aiming for a bigger share of the market – not just one customer from one area; but several customers from the same area. Our method is to focus on a technical area – so, a specific product group or product type – and to look for factories that are likely to need our components; but primarily in Western Europe and Scandinavia.” 

Lower costs, half a century of experience and an unstinting commitment to professionalism will undoubtedly stand ZSNP in good stead as it expands and spreads its net wider.