 |
|
|
|
|
|
|
|
May 4, 2006
Alcoa’s Béla Forgó Sits Down For An Interview
|
|
|
(Business Hungary, April) Alcoa, an AmCham patron member, is the world’s leading aluminum producer, active in all major aspects of the industry, including mining, refining, smelting, fabricating and recycling. With global sales revenue of $26.2 billion in 2005, Alcoa serves customers in the aerospace, packaging, construction, automotive, commercial transportation and industrial markets. It also markets consumer brands, including aluminum foils, bus and truck wheels and household wraps. We sat down with Béla Forgó, CEO and country manager of Alcoa in Hungary, to talk about the company’s latest developments in Hungary.
What are Alcoa’s activities here in Hungary?
We have two companies here: Alcoa-Köfém and AFL Automotive. These companies have nine business units at four locations, making Alcoa Hungary’s 12thlargest employer with 5,600 jobs. Eight of our business units are in manufacturing, including extrusion and rolling ingots, flat rolled products, automotive structures, truck bodies, wheels for trucks and buses, plastic closures, fasteners for the aerospace industry, as well as processing components for jet aircraft and super alloy industrial gas turbines. AFL manufactures wire harnesses for automobiles. Alcoa also established two regional centers in Hungary: the European Financial and Administration Center in 2002, and the Data Center in 2003. Our total investment of $800 million makes us the fifth largest investor in Hungary, and the second largest American investor. Alcoa’s sales revenue in Hungary was $1.1 billion last year, putting us among the 20 largest companies in Hungary. Our experience in Hungary has been very positive. Alcoa entered through the privatization of Köfém in 1993, and has continually invested since then. Our average yearly investments are about $25–30 million, and aim to improve technical development, environmental protection, labor safety and health, as well as training.
What are the major goals of Alcoa’s new investment project?
We announced a major, $83 million modernization project in November, together with Minister János Kóka. The project will renew the product mix at Alcoa-Köfém toward higher value-added products. We will expand capability and infrastructure for flat-rolled mill products, and launch a new manufacturing operation for airfoil castings, in support of Alcoa Howmet’s growing jet aircraft and industrial gas turbine business in Europe. We will also start production of our “Dura-Bright” aluminum wheels, which use a patented treatment that keeps them shiny while reducing labor costs and protecting them from oxidation. Overall, the project will create 184 new jobs, and we expect it to be completed by the end of 2007.
Alcoa is the biggest corporate donor in Hungary. What advantage or benefit does Alcoa see in its philanthropic activity?
We are not looking for direct benefits. We intentionally separated our business activity from our donations in 1952, when the company started the Alcoa Foundation. Beyond our business activity, we want to show how important the countries where we do business are for us. In addition, it is important for us that we support development in the environment where our employees work, through educational, environmental, health and social projects. We also strive for constructive relations with central and local governments. In 1993–2005, our aggregate corporate donations in Hungary amounted to $3.6 million.
|
|
|
|
|
|
