Production

We further optimized our production footprint in 2011, with Henkel manufacturing products with a total weight of around 7.6 million metric tons at 180 sites located in 56 countries around the world. Our largest production facility is in Düsseldorf, Germany. Here we manufacture not only detergents and household cleaners but also adhesives for consumers and craftsmen, and products for our industrial customers. Cooperation with toll manufacturers is an integral component of our production strategy, enabling us to optimize our production and logistics structures when developing new markets or where volumes are still small. Each year we purchase around 10 percent in additional production tonnage from toll manufacturers based on current figures.

Number of production sites
 

2010

2011

Laundry & Home Care

31

29

Cosmetics/Toiletries

8

8

Adhesive Technologies

149

143

Total

188

180

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Our Düsseldorf facility is also the largest production site of the Laundry & Home Care business sector. Here we predominantly manufacture powder and liquid detergents, fabric softeners and liquid cleaning products. We have further upgraded our Germany-based production activities within our European manufacturing concept. Following the construction of a factory in Düsseldorf for the production of liquid laundry and home care detergents in 2010, we have now also constructed on the same site a new facility for the manufacture of machine-dishwashing tabs to be supplied to the markets of Germany, the rest of Europe and the Middle East region as from 2012.

In 2011, we further reduced the number of production sites around the world from 31 to 29. Concentrating our laundry and home care product manufacturing activities on fewer, more efficient factories close to our customers has enabled us to continuously improve our performance. At the end of 2011, our Ratibor site in Poland became the first Henkel factory around the world to be certified according to the international standard for energy management systems, ISO 50001. The Laundry & Home Care business sector is thus continuing its successful implementation of sustainability strategies in production.

Through the implementation of a global management and control approach to the functions of production, planning and logistics, we are now able to centrally coordinate decision processes extending over the entire supply chainEncompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
. In conjunction with optimized structures and processes, this leads to the faster commercialization of innovations, more efficient cost structures and, ultimately, a higher level of competitiveness throughout the supply chainEncompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
.

Cosmetics/Toiletries is very efficiently structured with eight factories around the world. The largest of these, located in Wassertrüdingen, Germany, manufactures body care and hair care products. We further optimized production in Europe in 2011 by focusing on dedicated technologies in each of our production plants.

2011 also saw us successfully complete the rollout of our “Total Productive Management” (TPM Plus) program. This involves ensuring the all-encompassing and continuous optimization of our production and supply chainEncompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
processes. Through it, we have been able to achieve improvements in productivity, quality and sustainability. For example, we have further reduced our energy consumption levels and waste and wastewater volumes at all our facilities. Our commitment to sustainable methods was underlined by the “Factory of the Year” award won by the Wassertrüdingen plant in the category “Excellent Resource Efficiency.” The award is jointly conferred by the business magazine “Produktion” and the management consultancy A.T. Kearney.

The currently two largest sites for Adhesive Technologies are likewise located in Germany: in Düsseldorf – with a portfolio of high-quality specialty adhesives for industry and consumers – and in Heidelberg, where we manufacture a broad range of adhesives and sealants.

However, in August 2011 we laid the foundations for our largest adhesives production facility. This is being built in Shanghai in order to serve rapidly rising demand for industrial adhesive technologies in China and the wider Asia-Pacific region. Through the further development of the production processes and technologies involved, water and energy consumption and carbon dioxide emissions will be state-of-the-art in this new, advanced facility. Hence our production operations will also be exemplary in terms of meeting sustainability criteria. This investment in China is a major step in the further expansion of our capacities in the emerging markets.

As part of our ongoing efficiency enhancement program, we further consolidated our global production footprint in 2011. Despite further expansion of our capacities in the emerging markets, we reduced the overall number of factories by six to 143. With other efficiency improvements also having been put in place, we have therefore been able to further reduce our manufacturing cost.

Sustainability performance 2007 to 2011, Henkel Group

Environmental indicators
per metric ton of output

Water consumption

–33 %

Energy consumption

–29 %

Waste footprint

–25 %

Occupational accidents1

–35 %


1
Per million hours worked.

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In all three business sectors, our optimization efforts are aligned to reducing the ecological footprint of our production activities. We focus particularly on cutting energy consumption, not least because of the climate protection benefits that this brings, on reducing our material input and waste volumes, and on limiting water consumption and wastewater pollution. New storage concepts and the manufacture of packaging materials directly at the filling site reduce transport costs and thus likewise make a contribution to climate protection.

Our corporate-wide targets relating to occupational safety, resource conservation and emissions reduction for 2012 were achieved ahead of schedule by the end of 2010. Overall, our global programs for 2011 resulted in 61 percent of our sites reducing their energy consumption, 67 percent cutting their water consumption and 50 percent lowering their waste footprint. Building on this and with the further development of our strategy, we have set ourselves new sustainability targets for the period up to 2015:

  • 15 percent less energy per production unit.
  • 15 percent less water per production unit.
  • 15 percent less waste per production unit.
  • 20 percent increase in occupational safety per million hours worked.

For further details relating to our sustainability targets, see Sustainability strategy 2030.

Our standards governing safety, health and the environment, and also our social standards, apply to all our sites worldwide. Through a clearly defined process comprising communication, training courses and audits, we ensure complianceActing in conformity with applicable regulations; adherence to laws, rules, regulations and in-house or corporate codes of conduct.
with these standards, particularly at the production level.

We have our environmental management systems at our sites externally certified where this generates benefits within our markets. By the end of 2011, around 70 percent of our production output was generated by factories certified according to the international standard for environmental management systems, ISO 14001.