Resource efficiency benchmarking of

the Russia Ferrous Foundry Industry:

Key findings of the study
Implemented under IFC Russia Cleaner Production Program

GOAL: to identify the ferrous foundry sector resource efficiency potential and
develop practical tools for foundries to implement it

Benchmarking study time line

What made our study successful :

Stakeholder consultations process
Stakeholder

consultations at every important stage:

Methodology

Questionnaire for data collection

Self diagnostic guide

Matrix of casting types

Advisory

board included over 20 representatives from

industry, R&D, officials and policy makers.

Consultation

process

Written comments on all key documents

Meetings of Advisory board
Workshops in smaller teams

What is being benchmarked?

7 Key performance indicators (KPIs)

OVERALL
PRODUCTION
EFFICIENCY

PROCESS
YEILD
KPI 1

Depends on technology
and processes

KPI 2

ENRGY USE

SAND USE

WATER USE

KPI 4

KPI 5

KPI 6

LABOUR
KPI 7

CAPACITY
UTILIZATION
KPI 3

Depends on type of
final product and
technology

Depend on
management practices
and equipment

Selected KPIs and methodology tailored to

foundry processes
Selected KPIs

Metal recycling
Separation,
transport

Process Yield

Overall production efficiency

Capacity utilization

Energy

Fresh Sand

Water

Labor

Finishing shop
Shot blasting
Grinding
Deburring
Thermal treatment
Inspection/testing

Packaging
Labeling

Storage
Shipping
Sell

Sand recycling
Transport, ooling

Scrap

Casting shop
Pouring
Cooling
Shake out
Separation

Molding shop
Mold forming
Core making
Core setting

Sand plant
Storage,
preparation

Risers
and
runners

3
1

Raw
material

Melting shop
Melting
Holding
Treatment

Metal yard
Storage,
charging

buy

7 KPIs methodology tailored to foundry process

32 category matrix developed to cover diversity

of foundry production
Grey Iron Product Categories

Ductile Iron Product Categories

Steel Product Categories

automatic moulding
GABH
= automotive engine blocks
and cylinder heads
GAAO = automotive other
GAAG
= agriculture
GAMI
= mining

automatic moulding
DAAU
= automotive other
DAGE
= general engineering

automatic moulding
SARC = railway components (c)
SAMM = mining components (m)
SAAC = commercial vehicles (c)
SAGC = general engineering (c)

mechanized moulding
GMBH = medium size engine blocks
and heads (energy generation)
GMAG = agriculture
GMMI
= mining
GMGE = general engineering

mechanized moulding
DMAU = automotive
DMGE = general engineering

mechanized moulding
SMRC = railway components (c)
SMMM = mining components (m)
SMPC = pumps & valves (c)
SMPS = pumps & valves (s)
SMGC = general engineering (c)
SMAC = commercial vehicles (c)

manual (hand) moulding

GHBH = large size engine blocks
and heads (energy generation)
GHMI
= mining
GHGE
= general engineering

manual (hand) moulding

DHEN
= energy generation
components
DHCO = compressor components
DHGE
= general engineering

manual (hand) moulding

SHMM = mining components (m)
SHPC = pumps & valves (c)
SHEA = energy components (a)
SHGC = general engineering (c)

c: carbon steel,
s: stainless steel,
m: manganese;
a: high alloy steel

Study based on real data from enterprises

215 foundries
(first long list; 25% of all legally registered ferrous foundries in
Russia)

55

sets of
independent data for foundries

Coverage :

Period :
Total # of data sets:
Categories covered:
Industry:
8

3 years (2007-2009)
150
27 out of 32 (85%)
478 kt (14% of market)

KEY FINDINGS OF THE

STUDY

Russia foundries significantly lag behind European

Russian foundry

European foundry

Russian ferrous foundry us per tone of good casting:

Energy:
Sand:
Water:
Labor :

3
3,6
161
3,6

times more
times more
times more
times more man-hours
10

4.5 mln t
CO2e

Inefficiencies eliminate Russian foundries competitive

advantage in low prices
Prices for major
resources in Russia are
less than in the EU:
Energy:

54% less

Labor:

92% less

Overheads:

71% less

Costs:

-36%

EU

11

Russia

Russia at EU
efficiency level

High levels of defect rate

Average defect rate in Russia

is

4 times higher than in EU

Effect export: Russia exports

less than

4
times

1% of casting

Low quality threat for

internal markets as customers
require certain quality (eg.
automotive producers)
EU

12

Russia

How much can Russia ferrous foundry industry gain via

resource efficiency?
$2.13 bln
- 26%
USD

$ 3 bln
USD

- 29%

Cost structure index for ferrous foundry (materials, labor, energy, equipment maintenance, overheads, water and sand)

13

$ 3.3 bln
USD

Over 50% of the potential can be implemented via lowcost measures and management practices
Costs

$3.3 bln
USD

- 43%
Low cost and
management
practices

Capital
investment

14

KPIs and resource efficiency potential:

Capital
investment

Low cost and

management
practices

15

Benchmarking of KPIs is a tool to priorities interventions

to achieve maximum impact

Cost structure

Overheads
Equipment related

Labor

12,8%
7,1%

-3.1%
-2.7%

21,4%

-12%
Energy

Materials (metal)

13,4%

-9.2%

45,2%

-1.9%

Russia average level

$ 3.3 bln
USD
9,7%
4,4%
9,4%
4,2%

43,3%

Level of best practices

16

Next steps:
Toolkit: Self diagnostic guide,
Compendium of KPIs, Best
practice guide, Benchmarking
study report
Pilot program with 5-7
companies with foundries
Resource efficiency finance
directly and via FIs

17

Information available in public domain

http://www.ifc.org/ifcext/eca.nsf/
Content/Russia_Foundry_Russian

http://www.ifc.org/rcpp

18

IFC contacts
IFC Russia Cleaner Production (IFC RCPP)
Yana Gorbatenko, Program manager YGorbatenko@ifc.org
Study team IFC RCPP:
Kristina Turilova, Task leader

KTurilova@ifc.org

Boris Nekrasov, Technical expert

BNekrasov@ifc.org

Maria Sigutina, PR and stakeholders MSigutina@ifc.org

19