This section describes the measures and programs implemented at a number of individual sites to respond to the challenges in the regions and align the company to local needs.

Henkel publishes detailed site portraits including individual site objectives from major production sites around the world. The map of the region gives an overview of the production sites in Africa / Middle East.

Henkel´s acquisition of a majority participation in the state-owned detergent industry in the year 2000 still ranks as the most important privatization project in Algeria. Henkel committed to invest considerable sums in plant modernization and employee training. As a result, numerous projects were initiated in the fields of energy and resource management, occupational safety, and environmental protection. For example, completely wastewater-free manufacturing processes were introduced at the two powder production sites. This meant that the previously necessary sewage treatment plants could be closed. Water consumption was thus cut by almost 300,000 cubic meters and operating costs were reduced by more than 200,000 euros per year.

The successes radiate beyond the site itself and are having an impact on the Algerian economy. In 2003, together with the German Society for Technical Cooperation [Gesellschaft für Technische Zusammenarbeit (GTZ)], Henkel launched a 15-month qualification project. The focus is on training the Company’s own employees and its Algerian suppliers in production and logistics management, and training the staff of environment agencies and universities in integrated safety, health and environmental management.

In March 2004, Henkel ENAD and the Algerian Ministry of Regional Planning and the Environment signed a contract to continue their joint environmental protection activities. In doing so, Henkel ENAD committed itself to ensuring that its sites in Chelghoum Laïd, Réghaïa and Aïn Témouchent will be certified to ISO 14001 by the end of 2006, to reduce dust emissions and wastewater loads, and to further improve working conditions in production, waste management and recycling. Henkel informs the Ministry every six months about the progress made, exchanges experience with the Ministry, and supports it in the field of environmental communications.

In early 1998, Henkel entered into a joint venture with a regional detergent manufacturer in Riyadh. Since then, Henkel has continuously modernized the production lines. Liquid wastes from production have been reduced by almost 90 percent, resulting in appreciably lower costs. Two new filling lines have increased the capacity of the site, while making working conditions better and safer. A supporting, comprehensive safety training program has also been established for employees.

Henkel South Africa in Alrode places great emphasis on involving all of its employees in the continuous improvement of all business processes. One example of this is a project for reducing the reject rate in industrial adhesives production. Employees now bear greater responsibility for the quality of the products they produce.

For additional motivation, a competition is held to identify the team with the lowest reject rate. In 2002, wastage was already cut by more than 50 metric tons, saving 30,000 euros. The company wants to accomplish still more. Employees who have not had elementary schooling – and who frequently carry out unskilled work - are taught basic literacy and numeric skills in courses lasting 8 to 10 months, thus acquiring the qualifications for more challenging tasks.