Productivity, Quality and Smelter Operations: Rönnsktär 1992

The Rönnsktär smelter has recently undergone a series of technical and operational changes. This changes are caused by our own will to remain and gain in competivety and to adapt to the ever changing surroundings. To be able to remain competitive in surrounding with high wage costs, high inflation and high environmental standards thorough cost management is needed. The Swedish economic policy in the beginning of the 80'ies consisted amongst other things of two devaluations. The exchange rate of the Swedish Krona was reduced with approximatively 25 %. This boosted the profits of our export industry, some even believed we entered the land of milk and honey ... And working in this promised land where everything turns into profit it is very difficult to be careful and restrictive with your spendings. Apart from some healthy and fruitful investments we allowed ourselves yearly steady increases in salary for ever reduced number of worked hours and we of course employed more people. Inflation rates went up and so did property prices. In 1986 finally reality catched up on us. Reality in the form of too high costs started to hit Swedish export industry 5-6 years after the big devaluations. Furthermore the high inflation rate also hit the domestic industry a couple of years later. Together with other important factors Sweden faced a severe home-made recession in the beginning of the 90'ies. With this background we now report and analyse our smelter's performance and operating results, shown in fig 1 The main constrictions on smelting and refining at Rönnsktär are today: * Income restrictions by governmental production level Limit * Throughput resmctions by governmental emission limit * High capital costs in the aftermath of Swedish high inflation in the recent decade * Low work force turnover Below we will illustrate how we tackled with these issues along the following lines: * People * Quality * Technology