Strengthening ties with contractors

Ternium Brazil launched a program called Safe Supplier, an initiative that values safety, Ternium´s highest value, and recognizes safe behavior with contractors. At its very beginning, the project will last for a period of six months, with 25 hired companies that will have to comply with higher quality to the requirements according to Ternium´s Management System. Another goal is to develop a larger sense of safety and occupational health among suppliers. This program is not a competition since all companies reaching scores above 85% will be acknowledged.

This initiative has been developing in Mexico since 2016, four years ago. The results are as positive as they are surprising: For example, in the first year of implementation of the program, out of 127 participating companies, only four were qualified as “excellent”. In the last year, 2019, with 117 suppliers in process, 33 obtained the recognition, and no company received a “critical” qualification.

The chairman of Ternium Brazil inaugurated the event, held 100% online. “All signed companies are part of our family and our operations. They contribute, and they have a significant presence,” said Marcelo Chara.

Ternium Brazil launched a program called Safe Supplier, an initiative that values safety, Ternium´s highest value, and recognizes safe behavior with contractors. At its very beginning, the project will last for a period of six months, with 25 hired companies that will have to comply with higher quality to the requirements according to Ternium´s Management System. Another goal is to develop a larger sense of safety and occupational health among suppliers. This program is not a competition since all companies reaching scores above 85% will be acknowledged.

This initiative has been developing in Mexico since 2016, four years ago. The results are as positive as they are surprising: For example, in the first year of implementation of the program, out of 127 participating companies, only four were qualified as “excellent”. In the last year, 2019, with 117 suppliers in process, 33 obtained the recognition, and no company received a “critical” qualification.

The chairman of Ternium Brazil inaugurated the event, held 100% online. “All signed companies are part of our family and our operations. They contribute, and they have a significant presence,” said Marcelo Chara.

He also remembered the beginning of Safe Supplier happens around a year after the launch of Ternium´s New Vision of Safety. “It is crucial and vital to guarantee the Safety Vision is shared amongst all people who are part of our industrial operation, by themselves or third parties. We are all Ternium. We cannot have different safety standards. This program focuses on developing integration with the management system. It is important to combine efforts with leaders to provoke a change in the way we operate. We have the goal to be an industrial reference in Brazil, a steelworks company in the Americas, and to be of reference at the industrial and steel world,” commented Marcelo Chara.

"Health, safety and all of us"

“This is a program part of our Safety Vision. From this vision, I would like to draw attention to three issues: health, safety, and all of us, meaning an action engaging suppliers,” said Titus Schaar, vice-president of Operations, at the beginning of his conversation.

In terms of health, Titus talked about the COVID-19 pandemic, recalling that right from the beginning, Ternium has taken all possible actions to preserve employees, collaborators from signed companies, and also the families. It is useless to maintain health in the plant and to not act accordingly at home.”

On the subject of safety, Titus pointed out: “It is a program in which we work with a zero-accident goal. We want employees to go back home in the same state they arrived with at the plant.”

 “The third issue takes me to all of us. Ternium cannot do it all by itself; we need the commitment of all voices in all areas. We will develop together a safe project, and we will make sure no employee suffers an accident in-house.”

See-through program

The vice-president of Legal and Institutional Relations of Ternium Brazil, Pedro Teixeira, stressed out the transparency of the program, since evaluating committees will have members from signed companies. “They will be internally and externally recognized as fine examples to follow regarding safety,” prompted out.

Pedro also made emphasis in valuing that the program doesn´t have a competitive nature, but praises those who put safety in the first place.

“This is not a competition. All companies achieving a higher score than 85% will be acknowledged. Only then, if it´s necessary to have a winner, we will all be aware that you, our partners, understand very well the safety in your daily work. The goal is to create a safer environment. We believe we can make a partnership between Ternium and the companies by our side in Santa Cruz.”

Luciene Moura, Coordinator of Occupational Safety and one of the people responsible for this project, explained how the program would work. Companies will be subject to evaluations every two months, July, September, and December of 2020 for this first cycle. “These evaluations will be conducted by a committee. The process is quite see-through. This committee will include a representative from the supplier, the leader of the committee is the contract´s manager, and this group will also have a representative from the Health and Safety area, to bring to the table aspects of safety and knowledge for everyone,” says Luciene.

She adds, “One of the purposes of the program is to bring integration, alignment, and transparency.” To obtain this recognition and to participate in the award event taking place next January 2021, the supplier will have to be classified as “good” or “excellent.”

Innovation will also be awarded

One of the most prominent aspects of the program is the opportunity to recognize those companies who invest in innovation and develop good practices focused on safety and operational excellence. An exchange between Ternium and suppliers. “We can learn from associated companies,” Sebastián Capote comments, General Manager of Quality and Safety. “We will have an Honorific Mention for those companies bringing innovations or implementing good safety-related practices in this period. Obviously, the company needs to have a good evaluation. We understand we have a good opportunity to learn from our partners,” Capote concluded.

For Ignacio García Sánchez, General Manager of Exiros, Safe Supplier is a way to achieve a significant level in terms of safety.

“For Exiros, as well as Ternium, safety is the utmost value we strive for when choosing suppliers. We believe it is possible to achieve excellence in safety. This program is, without a doubt, one of the tools helping us reach that goal.”

Also, Ignacio explained, the better the performance of the company in terms of safety, the more the possibilities to increase its reputation with Exiros and, in consequence, raise the volume of business. “On the other hand, if evaluations are below expectations, it will be difficult to maintain the supplier within the registry. We believe we can learn from our suppliers and replicate good practices in other countries,” he concluded.

Consult companies participating in the pilot stage.

• Abelv
• ACPL
• AGF
• Coefer
• Continental
• Detronic
• Eco Ambiental
• Emalto
• Engeko
• Essencis
• Etecf
• Fosbel
• Fran
• GE
• Kuttner
• Manserv
• Mauriti
• Ormec
• Paul Wurth
• Reframax
• Semil
• Stahllog
• Supersan
• Technort
• Vesuvius