At KUO, we recognize that innovation is fundamental to driving sustainable development, hence it is an essential cornerstone of our business strategy.
At the Consumer sector, we carried out several initiatives to improve efficiency and advance in the sustainability of our operations
We acquired a rendering facility allowing us to take full advantage of the by-products generated during pork meat production, reducing waste and revaluing process residues for the manufacture of balanced animal feed. We have optimized our animals' diets, ensured their long-term well-being and health, as well as improved our use of resources. These initiatives reflect our ongoing commitment to innovation, sustainability, excellence, and cost reduction.
The Synthetic Rubber business was characterized by the implementation of innovative projects resulting insignificant advances on several areas
First, we have focused our efforts on improving the properties of HMPSA (Hot Melt PressureSensitive Adhesives), while working to improve the compatibility of our rubbers with bio-based resins, with the aim of optimizing the performance of formulations used in the hygiene products, tapes, and labels industries.
In addition, we have developed tailor-made TPE compounds, based on polypropylene and specific hydrogenated rubbers, which allows us to reduce the weight of final parts in the automotive sector and, therefore, fuel consumption and CO2 emissions. Finally, we have worked on the mechanical recycling of different plastics such as polypropylene, polyethylene and polystyrene, making a significant contribution to the circular economy and the sustainability of the sector.
At the Polymers business, we developed new variants of High Impact Polystyrene (HIPS HG) and General-Purpose Polystyrene (GPPS), for durable refrigeration applications. We have also taken significant steps in our commitment to the circular economy with the development of the Q-rPS® product, an innovative solution integrating up to 25% post-consumer recycled polystyrene (PSpc) in its formulation. This achievement marks an important milestone in the implementation of sustainable practices in our industry. At the same time, we developed the basic engineering necessary to improve the removal of impurities in PSpc, increasing the quality and efficiency of recycling this material.
For the Transmissions business, the customer base for the existing variants of the dual-clutch transmissions was expanded, which enabled us to achieve greater market coverage
At the Aftermarket business, an investment was made to manufacture dies for the creation of new graphite head gaskets, to expand the portfolio of new developments in the gasket facility and increase its production capacity. In addition, a eutectic master alloy was implemented for the formulation of Aluminum Alloy¹ (AS-17), which allowed reducing the cost of the raw material used in the manufacture of pistons. A process was developed to manufacture new technology pistons, known as Generation 5 (G5), which respond to current market demands, especially in the export market, involving an update of the existing manufacturing processes in the facility. In addition, we acquired and installed a new production line for the machining of gasoline pistons focused on the export market.
Finally, we have created two new hybrid formulations for friction materials, aligned with current world trends in brake pad manufacturing, which include a percentage of recycled inputs. In addition, we have designed and implemented universal blade dies to eliminate the risk associated with handling leftovers in the silhouette cutting operation, which has resulted in a decrease in electricity consumption.In addition, high-performance electric drive modules were developed for both the OEM (Original Equipment Manufacturer) and aftermarket, responding to the growing demand for electrical solutions in the automotive industry. In addition, a new system engineering team was established to comprehensively oversee all products at the system level. This team focuses on vehicle integration along with hardware and software components, ensuring greater efficiency and quality in the engineering of automotive systems.
1 Specific aluminum alloy used as a major component in the manufacture of other aluminum alloys. A eutectic alloy is one that has a lower melting point than the individual components that make it up.
At KUO, we recognize the high expectations of consumers, who seek to purchase products that offer quality and safety
CONSUMER SECTOR
GRI 13.10.4, 13.10.5, 13.11.1, 13.11.2
SASB FB-MP-160a.3, FB-MP-250a.1, FB-MP-250a.2, FB-MP-250a.3, FB-MP-260a.1, FB-MP-410a.3
This approach to food safety and quality is backed by a rigorous system of certifications and audits. At our Umán, Irapuato, and Sahé facilities, we are FSSC22000 certified, which specifies the requirements that food-industry companies must meet to ensure the highest standards of food safety, which are continually evaluated through internal and third-party audits. In addition, our operations are supported by certifications such as Good Farming Practices (SENASICA), Federal Inspection Type (TIF) processing facilities, and international Animal Welfare certifications. As part of our commitment to excellence, we adhere to the Global Food Safety Initiative (GFSI) and rigorously apply the HACCP system in all operational activities.
It is important to highlight that during the entire year 2023, there have been no reported quality non-compliances in our products. This achievement is the result of the effective implementation of our food safety policies and procedures. In addition, 85% of our suppliers have certifications, which further strengthens our supply chain and ensures the consistent quality of the ingredients we use in our products. These results reflect our strong commitment to quality, safety, and transparency in food production, generating trust and satisfaction among our customers.At Kekén, we maintain an ongoing commitment to quality and food safety at all stages of meat production. We recognize the importance of meeting the growing global demand for high quality food products and, in response, we have established a Quality Policy that prioritizes quality assurance and safety. From animal genetics to product distribution, we are committed to strict compliance with national and international regulations.
Results show that no pigs received medically important antibiotics, indicating an effective policy of responsible antibiotic use.
Identification and management of products and ingredients related to consumer health and nutritional concerns
As part of our commitment to transparency and food safety, we apply a rigorous approval process for ingredients, additives, and preservatives to our products. This process ensures that the ingredients used comply with the regulations in force for their incorporation in meat and that they do not contain allergens. In the case of marinated products that may contain allergens, we ensure that we inform consumers of the product's content by means of a detailed ingredient list on the packaging, following the relevant regulations for allergen and sensitizer declaration.
In addition, all our ingredient suppliers are evaluated annually to ensure compliance with safety and quality standards, requesting their safety certifications and corresponding reports. If they do not have such certifications, a follow-up audit is conducted to verify compliance.
To ensure the quality and safety of our value-added products, we perform analyses in accordance with Mexican regulation NOM-051-SCFI/SSA1/2010, which includes the mandatory use of warning octagons. All ingredients used in our products are duly declared on the label, in compliance with current regulations. This approach ensures that our consumers are fully informed about the products they consume, thus promoting a long-lasting relationship of trust with our brand.
Since April2022 we have the Cloverleaf Animal Welfare Certification, supported by a work plan focused on the objective validation of the animal welfare standard, carried out by a group of globally recognized auditors. This external audit program allows us to continue with the animal welfare culture we have been working on since the beginning of our operations.
Animal Welfare
Since April2022 we have the Cloverleaf Animal Welfare Certification, supported by a work plan focused on the objective validation of the animal welfare standard, carried out by a group of globally recognized auditors. This external audit program allows us to continue with the animal welfare culture we have been working on since the beginning of our operations.
CHEMICAL SECTOR
SASB RT-CH-410b.1, RT-CH-410b.2, RT-CH-410c.1
Synthetic rubber
The Quality,Safety and Environment Policy reflects our dedication to continuous improvement, environmental preservation, and ensuring a safe working environment, reaffirming our commitment to sustainability. It is based on the implementation of best practices, essential to ensure the consistency and exceptional quality of our products over time.
To verify compliance with and the effectiveness of our policy, we implement a rigorous program of internal and external audits, conducted on a regular basis. These audits are crucial to evaluate the efficiency of our operating procedures and quality management systems. Through them, we not only confirm our adherence to the highest standards, but also identify valuable opportunities for improvement.
This commitment is materialized through the achievement of internationally relevant certifications for all our facilities and brands, including EU REACH, UK REACH, Korean-REACH and TURKISH-REACH. These certifications not only endorse the superior quality of our products, but also outline strict guidelines and establish limitations on the handling of hazardous substances, thus ensuring the protection of human health and the preservation of the environment.
Polymers
At the Polymers business we recognize the importance of quality management, especially considering our presence in various markets, such as food packaging, electronics, medical and pharmaceutical products, which demand high standards of quality, safety, and performance.
To ensure effective management, we have a series of certifications in both facilities and brands, in that line we are validated by standards such as ISO 9001:2015, theUSP, UL, RoHS and we also have the BPI certification.
Our strategy to properly manage chemicals and develop new alternatives is based on specific procedures. This includes the specialized transportation and handling of these components through equipment designed for this purpose, as well as the use of protective equipment by our workforce. In addition, the transformation processes are equipped with technology that reduces the content of residual monomers, ensuring that they are below the maximum levels permitted undercurrent regulations.
Annually, we conduct studies in line with applicable environmental regulations to ensure compliance with established standards. We also implement surveillance and monitoring measures to protect the health of our workforce working with chemicals, always providing safe conditions, and taking preventive action when necessary. These practices reflect our commitment to safety and sustainability throughout our operations.
In the Chemicals sector, no product recalls have been carried out.
AUTOMOTIVE SECTOR
SASB TR-AP-250a.1, TR-AP-440a.1
Transmissions
Effective product quality and safety management is not only essential to ensure excellence, but also allows us to have more efficient processes and reduce costs. For this reason, we have implemented a rigorous Quality Management System that allows us to maintain high standards in all our products. This System is based on an Integral Policy supported by a Management Manual, detailed procedures, and work instructions, as well as continuous improvement plans and updates at all levels of the organization.
Through these elements, we manage quality at all stages of the production process, from design to delivery of the final product. We ensure that every aspect of the process meets established quality standards, guaranteeing the excellence and reliability of our products. This approach enables us to maintain customer satisfaction and loyalty, thus strengthening our market position and contributing to our commitment to sustainability and corporate responsibility.
Aftermarket
Our organization deeply understands the importance of quality perception by our customers and end users, recognizing that it is a fundamental pillar to sustain our competitive advantage in the market. Aligned with this understanding, we ensure management integrity and excellence through adherence to international standards, evidenced by obtaining key certifications such as ISO 9001:2015, ISO17025:2017, and environmental certification (SAE J2975), AMECA certification (SAE J661), along with resolution 4983:11 and regulation 6C.2 for the commercialization of brakes in the United States, Colombia, and Argentina.
During 2023, we implemented significant process improvements to ensure quality and customer satisfaction. This included the implementation of enhanced prevention controls in the washing process, the implementation of more rigorous detection controls during vulcanizing, as well as a comprehensive redesign of the vulcanizing process itself. These preventive measures reinforce our commitment to quality and ensure product safety.
This proactive approach to continuous improvement and quality management not only reflects our responsibility to our customers and the environment, but also underscores our commitment to sustainability, product safety, and the development of processes that minimize risk and maximize operational efficiency and effectiveness.
