STRATEGIC METAL PURCHASING
The majority of the OTTO FUCHS sites need metals and metal alloys for their production processes. We are continuously further developing the various materials so as to be able to provide our customers with first-class products and solutions in the future, too. We produce aluminum, magnesium, and brass alloys in our own foundries. We source the metals we use from around 30 key suppliers located around the world. OTTO FUCHS purchased a total of approximately 176,000 tons of metal for its production in 2017. The primary metals purchased included aluminum, titanium, nickel, magnesium, copper, and zinc, and alloys of all of these.
Strategic metal purchasing is handled centrally at our headquarters in Meinerzhagen, while the individual sites manage operational procurement at the local level. Among other things, the suppliers can download our General Terms and Conditions of Purchase, the Work Safety and Environment Protection Guidelines, our Quality Assurance Requirements, and our Our Supplier Code of Conduct clearly defines our social, occupational safety, and governance standards, and also covers sustainability issues. With this code, we oblige our suppliers among other things to use all resources responsibly, give precedence to renewable energies, recycle the materials used, and minimize or entirely avoid any impact on the environment. The code also requires our suppliers to oblige their own suppliers to comply with the rules of conduct.
We have additionally stipulated the minimum management system requirements we make of our suppliers in our Quality Assurance Requirements (QAR). The regular quality management audits which the suppliers undergo also cover aspects like environmental protection, energy, and occupational safety.