Every day we build a sustainable, integrated aluminum company founded on growth and successful long-term relationships with our customers, co-workers, suppliers, communities and investors.
We accomplish our mission by acheiving our two #1 priorities: doing the right things, the right way and getting the results. We create value through our Six Work Streams:
Noranda has several avenues through which to pursue growth. These avenues include prudent capital investment, debottlenecking our production processes, increasing share of demand, and acquisitions and acquisition-related growth. For 2011, our goal will be to grow volumes at sustainable levels and to pursue capital projects that will relieve capacity constraints in both the upstream and downstream businesses.
Our disciplined growth and financial performance is enabled by our Comprehensive Cost-Out, Reliability and Effectiveness (“CORE”) productivity program. CORE provides a project-based framework to control costs, improve productivity and increase reliability at our production facilities. Those projects include investing in high-return capital improvements, optimizing labor productivity and improving the operating and energy efficiencies of our production processes. During 2009 and 2010, we generated $120 million in combined CORE savings towards our $140 million three year CORE savings target. In 2011, our goal is to exceed that target. To this end, we will manage our power costs, execute projects to increase yield and throughput, improve raw material usage rates and mitigate unplanned downside events.
Cash & Financial Management
Our ability to maintain positive cash flow from operations across the business cycle is a testimony to our strong focus on liquidity conservation. We have continued this keen focus on cash flow even as market conditions have improved. Our goal for 2011 is to continue making improvements in our management of working capital.
Environmental, Health and Safety
We believe our first accountability as an employer is the safety, health and well-being of our people. We also view safety as a leading indicator of operational excellence. We have made safety the number one accountability for every employee at Noranda. For 2011, our goal is to achieve a 20 percent or greater improvement in safety at each of our sites and operate incident-free for at least one quarter company-wide.
We view process efficacy as a foundation for sustainable activities and results. Our transformation to a stand-alone public company has required us to strengthen our process backbone. As we continue that journey in 2011, our goal is to implement expanded information system capabilities that will improve our decision making pace and precision.
Noranda’s success is built on the energy of its people, fulfilling their individual and team responsibilities to achieve our company-wide goals. For 2011, our goal will be to implement a new performance management system to align goals throughout the organization, initiate topic-specific training management plans, and fill gaps in human capacity and capability. We also plan to complete union contract renewals at St. Ann and Newport and to continue strengthening our union relationships at our other sites.