Case stories / Chinese components supplier safeguards chemical handling
Chinese components supplier safeguards chemical handling
When Atlas Copco evaluates its suppliers, many more factors are considered than the quality of the products and the ability to deliver a stable supply of components. Having a long-term perspective on productivity means taking responsibility for the potential impact of our business, throughout the supply chain.
One such way of taking responsibility is supporting suppliers in implementing best practices from Atlas Copco, on issues such as quality, environment, health and safety. At HGL, a Chinese supplier of small to medium sized components in steel and aluminium for Atlas Copco’s Tooltec division, Atlas Copco found an improvement potential in the chemical handling and waste handling.
Drawing from the Group’s existing chemical and waste guidelines, Atlas Copco’s supplier evaluation team presented HGL with a range of suggestions, from creating a separate chemical storage area to having a color identification scheme for different waste categories and putting up signs for first aid stations. HGL responded by drafting an action plan, with concrete improvement details and a plan for completion.
“We are thankful that Atlas Copco audited HGL and brought us so many good suggestions,” says Daniel Chan, manager of the factory.
“HGL’s management team takes these issues seriously and wants to continuously improve on weaknesses, to eliminate and prevent risks and threats in the areas of safety, environment, and health.”
HGL is a subsidiary of Sweden’s Hammar Group, employing around 160 people at its factory in Donguan, China. The company already had a quality system certified according to ISO 9001, one of the standards Atlas Copco encourages suppliers to adhere to.
“This, together with the engagement from management, is a good start for the supplier to expand its management system to also cover environmental aspects,” says Anna Gejke, responsible for management of safety, health and environment issues at Atlas Copco’s business area Industrial Technique.
Atlas Copco evaluates suppliers according to a checklist based on the UN Global Compact and the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work. In 2009, about a third of the Group’s suppliers were evaluated, either at their own sites or through verification of the suppliers’ own reports.
