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CONTENTS 1

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2 2

LEADER NEWS UPDATES

Volume 26 No. 2 – March/April 2014 Editorial Editor: Nadine Firth Tel: +44 (0) 1737 855115 nadinefirth@quartzltd.com

North America - Rolled aluminium

Middle East - GCC growth set to continue

Europe - Stop De-industrialisation: Concrete proposals from the European

COVER

aluminium industry

March/April 2014

Consulting Editor: Tim Smith PhD, CEng, MIM

25 years

Promoting the aluminium industry for

Volume 26 No 2

automotives

THE JOURNAL OF ALUMINIUM PRODUCTION AND PROCESSING

Production Editor: Annie Baker

TODAY

Sales International Sales Manager: Paul Rossage paulrossage@quartzltd.com Tel: +44 (0)1737 855116

China update - The use of aluminium in the automotive industry

THE LME DEBATE

Area Sales Manager: Anne Considine anneconsidine@quartzltd.com Tel: +44 (0)1737 855139

Nick Madden, Novelis, looks at the warehousing situation

Sales Director: Ken Clark kenclark@quartzltd.com Tel: +44 (0)1737 855117

AUTOMOTIVE

Advertisement Production Production Executive: Martin Lawrence martinlawrence@quartzltd.com NEWS

Marketing Marketing Executive: Annie O’Brien annieobrien@quartzltd.com Tel: +44 (0)1737 855012

Russia - Aluminium’s role in Russian

AU T O M O T I V E

Aluminium sheet in automotive applications

Latest car designs reflect growing power of

A N A LY S I S & T E S T I N G

aluminium

Cover picture courtesy of Turla

Aluminium in Crash Management Systems

The future of aluminium casting in automotive

Circulation/subscriptions

manufacturing

Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 email subscriptions@quartzltd.com Annual subscription: UK £211, all other countries £230. For two year subscription: UK £380, all other countries £414. Airmail prices on request. Single copies £39

ROLLING 35

aluminium flat products 37

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ALUMINIUM INTERNATIONAL TODAY is published six times a year by Quartz Business Media Ltd, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, UK. Tel: +44 (0) 1737 855000 Fax: +44 (0) 1737 855034 Email: aluminium@quartzltd.com Aluminium International Today (USO No; 022-344) is published bi-monthly by Quartz Business Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER: send address changes to Aluminium International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in the UK by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent, NP12 2YA, UK

Preventing disruption in a rolling plant

Compensating coil build-up to improve flatness after unwinding

LUBRICATION 44

Grease for high temperature operations

ANALYSIS & TESTING 46

Reducing line downtime

Thermal imaging in metal processing

EVENTS 49

Anode Rodding preview

TMS review

PERSPECTIVES ISSN 1475-455X

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Harald L Schedl and Dr Philip Grothe, Alimex March/April 2014

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2 COMMENT

INDUSTRY NEWS

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AIT celebrates 25 years

Nadine Firth Editor All about automotive It seems we timed it right with an ‘ Automotive’ feature this issue, because the launch of Ford’s aluminium-intensive F-150 has jump-started the market (no pun intended). With this huge growth potential, the news pages are dotted with investments and expansions. It makes a change to be sifting through so much good news and hopefully it will only continue to get better. To get to grips with what this could mean for the industry, I met with Dr Geoff Scamans from Innoval Technology, to discuss the investments being made in rolling mills, heat treatment and finishing lines and whether the aluminium industry is up to the challenge. Read more on page 23. There is also an article on how the latest car designs reflect the growing power of aluminium (page 27). This all ties in nicely with the feature on ‘Rolling’, which starts on page 35 by addressing the market requirements for aluminium flat rolled products. Finally, a dedicated feature on ‘Analysis & Testing’ takes a look at reducing line downtime and thermal imaging in metal processing. I’m sure you will have also noticed that Aluminium International T oday is celebrating its 25th Birthday! I’m happy to accept any cards or presents on its behalf...

nadinefirth@quartzltd.com

Aluminium International T oday (AIT), the journal for aluminium production and processing, is celebrating 25 years as the leading industry publication. The magazine has seen many changes over the years (as shown right in the difference in covers), but it has remained the aluminium industry’s preferred journal for all the latest news, technical features, events, case studies and company profiles. In recent years, the magazine has also gained a large online presence and now updates readers with daily news stories across a range of social media. Follow @AluminiumT oday on Twitter or find us on LinkedIn to keep up-to-date. Y ou can also subscribe now to make sure you

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Hydro automotive growth Norsk Hydro ASA will invest in a new production line at its rolled products plant in Grevenbroich, Germany. The new line will increase annual capacity for aluminium car body sheet to 200,000 metric tons. “In the search for lightweighting vehicles and reducing CO2 emissions, automotive customers are looking for innovative solutions in aluminium. We are therefore increasing our production capacity of automotive body sheet,” says executive vice president Oliver Bell, head of Hydro's Rolled Products business area. The new line, which has an

estimated cost of EUR 130 million, is following a recent decision to expand the annual continuous heat treatment capacity from 20,000 to 50,000 metric tons. The expansion will include annealing and surface treatment lines, part of a flexible plant concept and innovative production processes at Hydro's Grevenbroich plant. Combining newly developed high performance aluminium alloys and surface qualities, yields unmatched forming properties. Aluminium body sheet from the new production line will be used in manufacturing automotive components, including car hoods, doors, tailgates and side panels.

“With this substantial investment, we are pursuing our strategy towards the growth market within automotive, while also expanding our product portfolio. W e are reinforcing our position in the European market, and as the largest producer of flatrolled products, strengthening our Grevenbroich plant in Germany as an industry location for advanced rolled products,” says Bell. The new production line will be completed in the second half of 2016. The cost of the investment will be distributed in the period 2014-2016, and does not change Hydro's earlier capex guidance for 2014.

Canada: Rio Tinto smelter Rio Tinto Alcan has inaugurated the USD 1.1 billion Arvida Aluminium Smelter , AP60 Technology Centre, in Saguenay Lac St Jean, Québec. The new plant has an installed capacity of 60,000 tonnes of aluminium and according to the company is one of the most technologically advanced aluminium smelters in the world. M s Jacynthe Cote, CEO of Rio

Tinto Alcan, said: “Rio Tinto Alcan is very proud to inaugurate the new Arvida Aluminium Smelter , AP60 Technology Centre. It is an honour to share this achievement with the men and women who made it possible, our employees. “Today’s milestone is the result of years of work by our Research and development teams, particularly the teams that first conceived, developed and tested

the AP60 technology at the Laboratoire de recherche des fabrications (LRF) in F rance. The innovative new AP60 technology platform will also allow for the development of a series of next generation technologies permitting further improvements in productivity, and reductions in energy and environmental footprint.”

For up-to-date news & views www.aluminiumtoday.com March/April 2014

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INDUSTRY NEWS 3

Novelis recognised by EPA Novelis has been honoured by the US Environmental Protection Agency (EP A) as a winner of its Climate Leadership Award for exemplary leadership in reducing carbon pollution and addressing climate change. Presented by the EP A, in collaboration with the Association of Climate Change Officers (ACCO), the Centre for Climate and Energy Solutions (C2ES) and The Climate Registry (T CR), the Third Annual Climate Leadership Awards were presented to only 15 companies. Novelis was honoured in the Excellence in Greenhouse Gas

(GHG)M anagement (Goal Achievement Award) category for publicly reporting and verifying corporate GHG inventories and achieving aggressive GHG emissions reduction goals. In addition, the company was recognised for demonstrating leadership in managing and reducing GHG emissions in internal operations and throughout the supply chain, as well as integrating climate resilience into its operating strategies. Since 2007, the company has reduced its overall GHG intensity by nearly 12% across its US locations, and globally, plans to cut

its GHG contamination in half from 2007 to 2020. “The EP A’s Climate Leadership Award is recognition that we are making real progress in our sustainability commitment, which we believe will be key to Novelis’ long-term competitiveness,” noted John Gardner, Vice President and Chief Sustainability Officer, Novelis. “We are radically transforming our company to achieve our aggressive sustainability goals and are focused on the work that remains to reduce our carbon footprint, increase our recycled content and operate ethically and responsibly worldwide.”

Germany: 89% recycling Already at a high level, the recycling of aluminium packaging in Germany reached a new peak in 2012, according to a study from the CVM Society for P ackaging Market Research. A total of 83,500 tonnes of the 93,800 tonnes used, or 89%, was recycled in that year. “The high rates of recycling show that we have an excellentlyfunctioning package recycling system in Germany ,” says Hans-

Jürgen Schmidt, managing director of German Aluminium P ackaging Recycling (DA VR). This is mostly due, he says, to the yellow bin system as well as modern technologies such as eddy-current separators. And he adds: “The potential is there for widening the yellow bin system to include other used products made of metal.” Based on this latest recycling rate update, DAVR estimates that annual savings in greenhouse gas

emissions amount to more than 390,000 tonnes of CO 2 equivalents. Given this successful completion of the materials cycle, “it is appropriate that the surpassing of recycling targets in packaging regulations are fully accounted for in current life-cycle assessments for packaging,” comments Christian Wellner, executive director of Germany's Aluminium Industry Association (GDA).

Aluminium-intensive F-150 The 2015 Ford F-150 pickup truck is on target to shed 700 pounds thanks to aluminium body panels and will get as much as 30 mpg in highway driving, Ford says. The all-new F -150 is set to deliver a combination of power , capability and efficiency – from advanced materials that improve

Aluminium International Today

durability and inhibit corrosion, to faster processors that enhance driving performance, to breakthrough cargo management and towing solutions. “F-150 is well-known for being Built Ford Tough. Now, it is both tough and smart,” said M ark Fields, Ford Motor Company chief

operating officer. F-150 is part of the Ford F-Series truck lineup, America’s best-selling truck for 37 consecutive years and America’s best-selling vehicle for 32 years. High-strength, military -grade, aluminum alloys – already used in aerospace, commercial transportation, energy and many other rugged industries – are used throughout the F-150 body for the first time, improving dent and ding resistance and also saving weight. Overall, up to 700 pounds of weight have been saved, helping the F-150 tow more, haul more, accelerate quicker and stop shorter, and contributing to efficiency.

IN BRIEF Rusal Asia organisational change Kunihiko Higashi has been appointed representative director, Rusal Japan Co., Ltd., replacing Yasuo Arase who is retiring after 10 years in the position. Arase-san will retire from the company at the end of June 2014. Higashi-san currently , general manager , M itsubishi Corporation Rt M Japan's Aluminium M etals Department will replace Arase-san. Geoff W atson, director of Asian sales at Rusal, commented: “During his tenure, Arasesan has overseen Rusal primary aluminium shipments of close to 2 million tonnes over the period. His pursuit of improved quality and service has led to the significant growth of Rusal’s value added products in Japan, including primary foundry alloys, billets and slabs. W e thank Arasesan for his dedicated service and wish him well for the future.”

Wagstaff: 1000th billet casting system In spring 2014, W agstaff Inc., will commission its 1000th billet casting system. The system will be delivered to the Steinacher Group from Austria – the largest privately owned Aluminium remelt producer in Europe. The multi-strand casting system, equipped with Wagstaff AirSlip Billet Casting Technology, will operate at the “Speedline” facility in Schlins, Austria. This remelt casthouse was erected in 2008 as a green site facility following the strictest environmental protection and energy-saving guidelines. Speedline installed W agstaff ShurCast and AutoCast systems at that time, along with multiple W agstaff Billet Casting Systems. “With the most recent expansion step and in cooperation with W agstaff, we will maintain our technological edge,” says Speedline managing director, Quido Nachbaur.

For up-to-date news & views www.aluminiumtoday.com March/April 2014

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IN BRIEF Helios firing and control system solution Century Aluminium, under Fives Solios’ supervision has commissionined a Firing and Control System for the Anode Baking F urnace “D”, at their aluminium plant, located in Vlissingen in the Netherlands. This solution is based on a Central Control System using redundant PC and an EtherCAT communication Network (Ethernet for Control Automation T echnology). The Human M achine Interface (HM I) allows for the process follow-up using Real Time Supervisory software either remotely from the Control Room or locally by using one of the two tablets PC or one of the two touch screens installed inside the furnace workshop. New CO analysers were installed and the existing gas injectors were replaced withlow NOx injectors.

African beer gains impact in aluminium bottle The African beer brand Skol has moved into Impact Bottles made by Ball Packaging Europe. The Impact extruded aluminium bottle (above) is initially being launched on the growing African market. The bottle is 100% recyclable and offers advantages for manufacturer and consumer alike: It is light, cannot shutter, chills fast and feels cool. An air cushion absorbs the pressure of carbonation and so reduces the risk of fizzing. The slender bottle serves as a brand ambassador at point of sale or at high-profile events and premium hotspots.

For up-to-date News & Views www.aluminiumtoday.com

March/April 2014

Alcoa to close remaining potlines at Massena East Alcoa will permanently close the remaining two potlines at its Massena East smelter in New York in the first quarter of this year. The decision was made because the potlines are no longer competitive. One of three potlines at the facility was permanently closed in August 2013. The closure will reduce Alcoa’s smelting capacity by 84,000 metric tons. The M assena W est facility will continue to operate. “We will be working with our unions, state, local and other stakeholders to minimise the impact of these changes,” said Bob Wilt, president of Alcoa Global Primary Products. “We appreciate

the support of the New York Power Authority and will work with them and others to ensure our continuing success at M assena West.” Alcoa’s review of its primary metals operations is consistent with the Company’s 2016 goal of lowering its position on the world aluminium production cost curve to the 38th percentile, and the alumina cost curve to the 21st percentile. In 2013, the company met its goal of lowering its cost position in both aluminium smelting and alumina refining, having reached the 43rd percentile on the global aluminium cost curve, and 27th

percentile on the global alumina cost curve. These shifts represent an eight point movement and three point movement, respectively, since 2010. Including the closure of the remaining two potlines at Massena East, Alcoa has announced closures or curtailments representing 361,000 metric tons of the 460,000 metric tons placed under review in May of 2013. Once the Massena East potline closure is complete, Alcoa will have total smelting operating capacity of 3,950,000 metric tons, with approximately 655,000 metric tons of capacity idle.

Inalum production boost Aluminium producer PT Indonesia Asahan Aluminium (Inalum), now a state-owned enterprise, will gradually increase production to 650,000 tons per year from the current 260,000 by expanding the development of stoves, new power plants and other supporting facilities. “We are committed to realising our corporate strategic plans within the next five to 10 years by, among others things, trying to boost production and diversifying

products,” said Inalum president director S S Sijabat in M edan, North Sumatra, on Saturday as quoted by Antara news agency. The Indonesian government formally took over as owner of Inalum, Southeast Asia’s only aluminium smelter, and ended its 30-year management by a majority-Japanese consortium, through the signing of an agreement between Indonesia and the Japanese investors at the Industry Ministry in Jakarta, on 9th

December 2013. The stock handover from the Japanese investors to the government took place at the State-Owned Enterprises Ministry, on 13th December 2013. Sijabat, who was appointed the company’s president director following the takeover , acknowledged that the prices of Inalum’s products had not yet improved and the situation was predicted to continue until the second quarter of 2014.

Det-Al rolling plants open After a long testing process, Det-Al Aluminium LLC opened its rolling plants for aluminium coils production with an official ceremony in Ganja, Azerbaijan where the President of Azerbaijan Republic and other high-ranking officials attended. These rolling plants will produce around 50,000 tons of aluminium coils and sheets each year , which will be mainly exported to foreign markets. These new plants will make DetAl Aluminium LLC a leading producer and distributor of flatrolled aluminium products in Eastern Europe and Caucasus.

The products manufactured in the Det-Al Aluminium Complex will be used in construction, electric, automotive, packaging, transport and other similar sectors. “Today is a very important day for Det-Al Aluminium LLC and our

country. The opening of two plants will allow us to become the biggest manufacturer of semi-finished aluminium products in the region,” said Sarkhan Babayev, the general director of Det-Al Holding.

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IN BRIEF Iran production up 4% Iranian M ines & M ining Industries Development & Renovation Organisation (IMIDRO) said the country produced 292,702 tons of aluminium ingots in the first 10 months of the current Iranian year (started March 21, 2013). The figure shows an increase of four percent compared with the corresponding output of last year, which was 281,444 tons. Iranian Aluminium Company (IRALCO) in Markazi province, Almahdi and Hormuzal in Hormuzgan province with 149,011 tons, 87,006 tons and 56,685 tons of output respectively were the three top aluminium producers of the country during the period. Total aluminium ingot production of the three companies for Dec. 22-Jan. 20 stood at 28,551 tons. The report added that Iran Alumina Company produced 205,532 tons of alumina powder in the first 10 months of the current Iranian year. Iran's global ranking in aluminium production is projected to improve from the current 22nd to 14th by the end of the Fifth Five-Year Economic Development Plan (2015). Gulf Aluminium Dinner a success More than 250 industry leaders from various countries attended the gala event held in Oman for the first time, which was hosted by Sohar Aluminium at Al Bustan Palace on 5th February 2014. Held under the Patronage of the Gulf Aluminum Council (GAC), the Gulf Aluminum Dinner (GAD) reflects the importance of the Gulf region as an emerging hub in the global aluminium industry. The GAD was graced by the presence of His Highness Sayyid T aimur bin Asaad bin Tariq Al Said as the chief guest and a number of other dignitaries. For up-to-date News & Views www.aluminiumtoday.com March/April 2014

Ma’aden poised to deliver

The Saudi Arabian M ining Company M( a’aden) has concluded several contracts to supply Asian customers with more than 300 KM T of primary aluminium throughout 2014, complementing the 50 KM T in supply agreements made with local and Turkey customers. “Ma’aden has arrived as a global primary aluminium supplier,” said Ma’aden Aluminium vice president Eng. Khalid Al Luhaidan. “Together, these supply agreements not only meet a significant portion of Asian demand, but they also represent an important milestone in our journey to becoming a world class minerals enterprise”. The 2014 supply contracts concluded by Ma’aden commit the company to deliver product to domestic buyers within Saudi Arabia; to regional buyers in

Turkey; and to Asian buyers in capacity of 740,000 tons of high Japan, Korea, Thailand, Taiwan and quality primary aluminium other SE Asian countries. products. The smelter is part of the Ma’aden Aluminium marketing M a’aden/Alcoa joint venture and logistics director Eng. Dhari Al- which, when completed in late Shunaifi is focused on the future: 2014, will represent the world’s “We have signed a number of key largest vertically integrated sales agreements with major aluminium project. As majority partners in the region and our partner in this joint venture, higher production volumes in 2014 Ma’aden will take a 74.9% share onward will allow M a’aden to of the output. Ma’aden has been further build on this success by building its marketing capacity in expanding our geographic order to support local Saudi marketing and global sales economic growth as well as footprint. penetrate the highly competitive M a’aden positions itself as a markets in Asia. strategic primary supplier to Asian Total restructuring-related markets, mainly Japan and K orea charges for the first quarter of where we will be one of the 2014 associated with the above biggest suppliers starting from closure are expected to be 2014,” he added. between $60 and $70 million During 2014,M a’aden’s after-tax, or $.06 per share, of flagship aluminium smelter at Ras which approximately 40% is nonAl Khair will reach full production cash.

Orbite: $4m to develop Orbite Aluminae inc. was granted a $4 million non-interest bearing repayable financial contribution from Canada Economic Development for Québec regions. The announcement occurred at Orbite’s technology development centre in Laval, Québec, by the Honorable Denis Lebel, the Federal M inister of Infrastructure, Communities and Intergovernmental Affairs and M inister of the Economic Development Agency of Canada for the Regions of Québec.

“We are very thankful for the confidence and financial commitment provided by the Agency which will be dedicated to the purchase and installation of our alumina calcinator , a key element in our high purity alumina production facility,” declared Glenn Kelly, Orbite’s Chief Operating Officer and executive VP. “The Government of Canada actively supports business projects like the one being carried out by Orbite Aluminae in order to ensure sustainable and job-creating

growth. These investments in CapChat will generate major positive social and economic benefits for the surrounding area as well as for the entire Gaspésie region,” mentioned M inister Lebel in his speech. The contribution is interest free, repayable in 10 consecutive equal semi-annual instalments starting 24 months following completion of the HP A F acility and was awarded through Canada Economic Development’s Québec Economic Development Program.

Bud Light with a “cool twist” Bud Light drinkers across America can now enjoy new, reclosable 16ounce bottles enabled by Alcoa’s technology and materials. The new Bud Light “Cool Twist” reclosable aluminium bottle is

based on Alcoa’s patented bottle technology, uses its aluminium bottle sheet and carries the Alcoa logo on the package. The Alcoa technology licensed by Anheuser -Busch for the bottle

is built on years of expertise in creating packaging. Alcoa provided product support to the Anheuser Busch Innovations team, from package design through the launch of the new bottle. Aluminium International Today

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Alcoa: $300m auto expansion Alcoa has completed a $300 million expansion at its Davenport, Iowa facility dedicated to supplying aluminium sheet products to the automotive industry. According to automakers, demand for aluminium to produce vehicles - already the second-mostused material used to make cars today - is expected to nearly double by 2025. The amount of aluminium body sheet content in North American vehicles is expected to quadruple by 2015 and increase tenfold by 2025 from 2012 levels. “2014 marks the beginning of dramatic growth for aluminium in the auto sector ,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer .

Crash management system

“Automakers are increasingly choosing aluminium as a costeffective way to improve the performance, safety, durability and fuel efficiency of their vehicles. Our project in Iowa is the first of three capacity expansions we have underway to meet this growing demand.” In addition to its expansion in Iowa, for which long-term supply agreements have been secured, Alcoa is adding automotive capacity in Alcoa, Tennessee which is scheduled to be complete in mid-2015; and at its joint venture rolling mill in Saudi Arabia, to be complete by the end of 2014. Alcoa is investing approximately $670 million in the three expansions.

Alcoa’s Davenport aluminum facility, Iowa, USA.

Constellium: High-strength CMS Constellium N.V. has launched an aluminium high-strength Crash M anagement Systems (CM S) technology designed for the front and the rear of a vehicle for enhanced structural protection in the event of a collision. “We believe that Constellium’s technology combined with advanced design and manufacturing capabilities will result in higher performance and cost efficiency, thus opening new possibilities to expand the use of full-aluminium CMS in the massmarket car segment,” said P aul Warton, President of Constellium’s Automotive Structures and Industry business unit. Automotive sector analysts expect the use of aluminium CMS

to increase in the next five years, particularly in European premium cars. By 2018, aluminium CMS are projected to capture about 30% of total European automotive market share. In the United States, aluminium CMS are expected to account for nearly 20% market share by 2018. Combined aluminium C M S production for China, Europe and North America is expected to reach more than 28 million units by 2018. Constellium’s new-generation CMS combine the properties of the 6xxx aluminium alloy family – formability, corrosion resistance, energy absorption, recyclability – with high-strength mechanical performance.

2014 DIARY May 6-8 Aluminium Valley in Business International Trade Show 2014 The 5th edition will take place at the University of Quebec at Chicoutimi. This year’s theme is Alliés par la matière grise, (Grey Matter Allies) with Jeannot Harvey, President of Groupe Ceger acting as the Salon’s honorary president. www.valuminium.ca 12-16 Aluminium Rolling Technology Course Designed by Innoval to help companies reduce downtime and improve product quality through faster diagnosis and solution of rolling problems by their own engineers. www.innovaltec.com March/April 2014

13-15 6th International Conference on Electrodes for Primary Aluminium Smelters Taking place in Reykjavík, Iceland, the conference will focus on both anodes and cathodes. Emphasis will be on environmental issues, increasing productivity and future prospects in the aluminium industry. There will also be an exhibition. www.rodding-conference.is

25-26 Iran International Aluminum Conference This event is considered a platform for engineers and researchers from academic institutions and industries to evolve a collective approach to work towards meeting the present and future demands of the Aluminium industry. www.iiac20.ir/en/

19-20 World Aluminium China CRU's World Aluminium Conference attracts delegates involved in smelting, recycling, rolling, extruding, trade, raw materials, purchasing, technology and finance.

26-28 5th Australasian Aluminium Extrusion Conference 2014 Featuring invited world recognised experts who will be addressing technical and commercial elements related to the extrusion industry, for both

www.crugroup.com/events/alu minium2014/

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Rolled aluminium While the overall U.S. rolled aluminium market has been seeing modest growth in the past few years – a trend that is expected to continue – the story is much brighter for sheet for the automotive market, which is continuing to see a double-digit growth rate. By Myra Pinkham* “Demand is better for flat-rolled aluminium products, but it is improving relatively slowly in step with the slow growth of the U.S. economy ,” Lloyd O’Carroll, senior analyst for Clevelandbased Northcoast Research, observes. While the rate of growth for U.S. industry shipments of aluminium flat rolled products will pick up a little more this year, it is slower than many had hoped for at this point in the economic recovery . O’Carroll says that shipments were up 6.3% in 2013 and will be increasing another 7% this year. M uch of the increase, according to Marco Palmieri, president, North America, for Atlanta-based Novelis Inc. is U.S. aluminium shipments to the automotive market, which, he says, “are going up in a big way .” O’Carroll estimates that domestic aluminium shipments to the automotive market increased 22.1% last year and will grow by a somewhat slower, but still impressive, 16.5% in 2014. In fact, he wrote in his latest O’Carroll Aluminum Bulletin Quarterly Aluminum Outlook report that due to the impact of the auto body sheet sector , aluminium shipments to autos could increase at similar, or higher , rates over the next decade. Another area of relatively strong growth, according to M ike Southwood, senior North American aluminium consultant for the CRU Group, has been aerospace, especially with Boeing recently announcing that it would be increasing the build rates of its 787 Dreamliner plane, which, although being more composite intensive than most other commercial aircraft is still approximately 20% aluminium. Klaus Kleinfeld, chairman and chief executive officer of Alcoa Inc., told investors during his company’s recent earnings conference call that Boeing and Airbus have a backlog of more than

10,000 aircraft (about eight years of production). Aluminium aerospace plate demand, however, has been tempered by a continued inventory overhang that Kleinfeld says could reduce plate revenues by as much as 10%. Nevertheless, O’Carroll says that he expects those inventories could be worked off by the end of the year. “The market will continue to do well, especially for aluminium plate,” O’Carroll says, with U.S. aluminium shipments to the sector increasing 12.4% in 2013 and expected to rise by another 10.1% in 2014. He says that many other aluminium flat roll consuming markets aren’t doing as well, predicting that the can sheet market will shrink by about 1% per year with both soft drink demand declining and the trend of light gauging continuing. Southwood says that improvement in the U.S. housing market has been a plus for aluminium suppliers to that sector. The National Association of Home Builders (NAHB) forecasts that 2014 total housing starts will rise 24.5% to 1.15 million units in 2014, including a 32% increase in new single family homes and a 9% increase in multi-family starts. According to O’Carroll, U.S. aluminium shipments to the construction market will likely be up 6.6% this year , more than double the 3.2% rate of growth in 2013. The flat roll market is definitely benefiting from the “nice, cyclical recovery of the domestic automotive market,” Timothy Hayes, principal of Lawrence Capital Management says. In fact Laurent M usy, president of packaging and aluminium rolled products for Constellium NV, maintains that the now small U.S. aluminium automotive sheet market is on the verge of becoming a booming one. O’Carroll estimates that while less than 200 million lbs. of auto body sheet were produced domestically in 2013, production could grow to around 1 billion lbs. this year, to 2 billion lbs. by 2020 and to between 3.2 billion and 6.4 billion lbs. by 2025. Constellium is one of the companies looking to capitalise on this, having recently announced that through a joint venture with UACJ Corp., it plans to build a 100,000 tonne per year greenfield body sheet plant at a still undetermined location in the United States, which is expected to begin commercial production in 2016. Novelis’ Palmieri observes that the auto sheet push is coming from two sources. One is the sheer growth light vehicle

Image by Gerard Uféras ©Constellium

output. According to George M agliano, senior principal automotive economist for New York-based IHS Automotive, the build rate of cars and light trucks in North America jumped to 16.2 million vehicles in 2013, up from 15.3 million vehicles in 2012 and a low of 8.6 million light vehicles at the depth of the recession in 2009. While the rate of growth is expected to slow somewhat this year to around 2.2% to 16.5 million vehicles, Magliano believes that the domestic auto industry still has legs and predicts output set records with as many as 17.2 million vehicles produced next year and the build rate increasing to about 18 million vehicles by 2020. Palmieri says that an even larger impact upon the aluminium flat roll marketis the increasing amount of aluminium sheet being used per vehicle. Currently the corporate average fuel efficiency (CAFE) requirement for U.S. vehicles is 27 miles per gallon but will be more than doubled to 54.5 mpg by 2025 with a step up between that in 2016, O’Carroll observes. He says that in preparation for the more stringent regulations the pounds of aluminium per vehicle have already been increasing every year since 2009, but at nowhere near the 17.4% rate expected this year when average aluminium content is expected to reach 429 lbs. per vehicle, up from 366 lbs. in 2013 and 326 lbs. in 2009. “While increases in fuel efficiency can be achieved by better engines and transmissions, that will just get automakers halfway to meeting the new CAFE standard,” O’Carroll maintains. “They need to lighten the weight of their vehicles and one way to do that is to switch from steel to aluminium.” It isn’t, however, the only way. The steel industry maintains that the same weight savings can be achieved by the new advanced high strength steels they are developing. In fact, Michael Rippey, who is not only president and chief executive officer of ArcelorMittal USA, but also vice chairman of the American Iron and Steel Institute, not only maintains that AHS S is the fastest growing automotive material but automakers can meet their fuel economy goals with only steel and anticipated engine and transmission improvements and not increased use of aluminium and other competitive materials. O’Carroll disputes this: “High strength steels will help, but they won’t get automakers to where they need to be.” Musy says it is more likely that the car of

*North American correspondent March/April 2014

Aluminium International Today

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the future will have a mixture of materials with automakers using the right material in the best place at the best time. “There are areas where aluminium will win, especially for larger parts given that aluminium has a lower density than steel,” he says, admitting for other parts, especially those requiring greater strength, AHSS could be used. One move that has been very encouraging to the aluminium industry has been the introduction of the aluminium intensive 2015 Ford F-150 pickup. The expectation, Hayes says, is that if the marketplace accepts this truck, others could follow its lead. If that happens, he says there could be the same jump in aluminium demand as occurred in the mid-1960s when can makers switched from steel to aluminium cans. The “holy grail,” however, would be if a high volume passenger car uses aluminium in its body in white, according to Southwood. While there are some aluminium intensive passenger cars, such as the Audi A8, those are more high-end, low volume vehicles. Hayes says the expected jump in aluminium content this year is largely attributable to the new F-150, which will start being sold this October with only 3%

of the increase coming from increased vehicle output and another 3-4% from aluminium substitution in other vehicles. O’Carroll says despite the major demand growth expected for aluminium auto sheet in the next 10 years, the capacity to supply that market does not yet exist. That is not to say that aluminium producers haven’t added any new capacity. In fact, Palmieri says that Novelis alone has increased its capacity eightfold in the past four year , including adding two high performance lines (200,000 tonnes of capacity) in Oswego, N.Y., and recently announcing plans for not only a third aluminium sheet finishing line there but one at its Nachterstedt, Germany, operations as well. Both of the 120,000 tonne per year lines are to be commissioned in late 2015. Alcoa has recently expanded its Davenport, Iowa, facility , adding about 220 million to 250 million lbs. of capacity through not only a continuous heat treating and finishing line but a line for its patented Alcoa 951 process that could be used to aid adhesive bonding in auto assembly, a pusher furnace and a slitter upgrade. It is also in the process of expanding its Alcoa, T enn., mills, which currently produces can sheet, to enable it to produce auto sheet as well. That

project, to come online in mid-2015, includes the addition of a 300-375 million lb. per year two stand cold mill and one or two 220 million lb. continuous heat treating and finishing lines. Randall Scheps, marketing director, says Alcoa is now in the planning stage to increase its auto body sheet capacity further. A company spokesman, however, says no move will be made until Alcoa has orders firmly in hand, much as it did before investing in Davenport and Tennessee. It is expected that in addition to Constellium, other companies not currently producing auto sheet in the United States could begin doing so. Both Aleris International Inc., Beechwood, Ohio, and Kaiser Aluminum Corp., F oothill Ranch, Calif., have admitted to be considering doing so, according to industry reports. It is very possible that can sheet producers could consider converting some of their capacity to higher margin auto sheet, especially with the lacklustre domestic can demand, which could tighten can sheet availability, Southwood says. Not everyone, however, can produce auto sheet. Not only does it require a wide line (at least 60 inches wide by some estimates), but technological know-how, Musy declares. ᔢ

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Aluminium International Today

March/April 2014

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12 MIDDLE EAST UPDATE

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GCC set to continue leading growth of Middle East’s aluminium industry The growth of the Middle East within the global aluminium market over the past four decades has not only been rapid, but also spectacular. The industry is centred in the six-nation Gulf Co-operation Council (GCC) region, which is currently home to six primary aluminium smelters with a collective production capacity since 2012 of more than 3.7 million tonnes per annum. Not only is this figure more than 30 times greater than the initial capacity of 120,000 tonnes in the early 1970s, but it also represents 7.8% of the total global production capacity. The growth trend is set to continue: An estimated 9 to 10% of total global primary aluminium production will come from the GCC by 2020. The near -term offers a similar picture: The regional production capacity in the GCC in 2014 will be almost 32% higher than in 2012, thanks to the commissioning of additional capacity. About 60% of the GCC ’s production capacity has been built over the past five to six years; and 57% of this new capacity has involved investments by major global aluminium producers in the region. Investments are held by Rio Tinto Alcan in Sohar Aluminium, Oman; by Hydro Aluminium in Qatalum, Qatar; and by Alcoa in Ma’aden, Saudi Arabia. Inherently conducive to business, the region boasts world-class sea ports; advanced infrastructure in terms of transportation networks and ICT ; sound political relationships worldwide that ease international trade; and generally good terms for doing business. The substantial government investment in developing the aluminium industry has further strengthened the business case. Indeed, the main driver for the development of the aluminium industry in the region has been (and still remains) a quest to add value to the energy-rich resources so as to support the economic and social development of the GCC’s member states. Although the regional industry was established more than 40 years ago, about two-thirds of the GCC ’s production capacity has come on-stream since 2008 and thus features advanced environmentally-efficient technologies. M oreover, planning of the new capacity was done prior to the recent economic slump. Catering for the consistent

predictions of continued growth in global demand, the capacity of the GCC primary aluminium industry has been designed to exceed regional demand from the outset – a position that will be held for the foreseeable future. Building a global aluminium player

The UAE is the only GCC country with two smelters – DUBAL and EMAL – which will effectively be integrated into the newly formed Emirates Global Aluminium (EGA), as operating subsidiaries. A jointly-owned UAE-based company that was announced mid-2013 by M ubadala Development Corporation and Investment Corporation of Dubai, EGA will combine the respective aluminium interests held by the two shareholders. The company is set to become the world’s fifth largest aluminium company by production, while the UAE will become the fourth-largest aluminium producing country. The integration of the two businesses will be implemented following the legal incorporation of EGA in early-2014. With the company’s shareholders being sovereign wealth funds, EGA not only has strong financial backing but is also supported by a commitment to sustainable growth. The capital cost invested in both of the UAE smelters has been substantial, driven by a determination to achieve and maintain world-class standards and interpreted through the installation of state-of-the-art systems, processes and technologies. The major proportion of the UAE smelters’ production is in value-added products, catering to market demands. The entire annual production is pre-sold the prior year, i.e. every tonne of cast product manufactured in the U AE is needed by

customers. Accordingly , EGA has no intention of curtailing production levels at either facility. EGA’s core midstream assets

DUBAL was commissioned at the end of 1979, and thus celebrates its 35th anniversary in 2014. The smelter complex, built at Jebel Ali, has expanded over the years and presently has 1,573 reduction cells in seven potlines. DUBAL has produced more than one million tonnes of molten metal per year since 2010, while sales of DUBAL products have topped one million tonnes per year since 2009. EMAL is a relatively new smelter complex. Phase I has been fully operational for three years; while commissioning of Phase II started mid-September 2013. Designed to be one of the world’s largest single-site smelters, EMAL has a total of 1,200 cells in three potlines; and will have an annual production capacity of 1.35 million tonnes once fully operational at the end of this year. The UAE’s primary aluminium smelting capacity has grown over the last 35 years. From 135,000 tonnes at DUBAL’s inception in 1979, it reached 1.872 million tonnes in 2013 – such that EGA accounted for 50% of the primary aluminium production in the GCC region. With the commissioning of EM AL Phase II, EGA ’s total smelting capacity will be 2.315 million tonnes in 2014, rising to at least 2.4 million tonnes by 2017. Another distinctive feature of EGA is that, in addition to primary aluminium, DUBAL has become renowned as a developer of advanced reduction-cell technologies. DUBAL DX Technology and DX+ Technology have been installed at

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EMAL Phase I and Phase II respectively. EGA will also own Guinea Alumina Corporation (GAC), a bauxite mining/alumina refinery development project. Through the collaborative efforts of M ubadala and DUBAL, preliminary studies are currently underway to determine the feasibility of constructing an alumina refinery in the U AE. Other upstream opportunities will be investigated in Africa, Asia and South America. Challenges and opportunities

The GCC region is, of course, not immune to the dynamics of the global aluminium industry. Those that may impact the regional players operations include: Aluminium consumption across the world, where all the forecasts point to a continuing growth trend. This is a positive factor for EGA in particular , given the volume of metal produced at the U AE smelters. Chinese aluminium production and consumption are both set to grow for the foreseeable future. While China is likely to remain self-sufficient, the rest of the world is already experiencing the impact of increased exports from China. A steady supply of reasonably priced energy is vital for primary aluminium

smelting. Where energy prices are high, smelters may be forced to close. The converse of this is that the future of primary aluminium smelting is in regions where energy availability is not an issue – this is the case in the GCC. M inimising greenhouse gas emissions and reducing carbon footprints are very topical environment concerns. Older smelters using non-environment-friendly technologies and practices are under threat of carbon taxes and even closures. As the smelters in the GCC region are modern installations, these issues are less consequential. The prevailing dynamics in the metal warehousing industry have created perverse financial incentives for warehouse owners and operators; and also contributed to product shortages and depressed metal prices. The latter is threatening the profitability of smelters worldwide, although the low-cost operating model adopted by most of the GCC smelters is providing a buffer against this. Protectionism is occurring at several levels – from trade levies to tax incentives – and always comes with negative impacts both inside and outside the protection barrier. The woes currently faced by the global

aluminium industry are related primarily to the warehousing dynamics, resulting remelt overhang and associated depression in the LME price. However, the outlook for added-value products remains strong, with continuous growth in demand forecast for several years to come – a promising prospect for EGA. As mentioned earlier, the GCC region’s primary aluminium industry comprises state-of-the-art smelters where substantial investment has been made in sustainable production facilities; and the core business has been built around added-value products to meet customer requirements. The GCC region has no reason to apologise for the growth in the region’s primary aluminium production capacity – especially as it is in line with worldwide growth in demand. The EGA smelters are long-term investments, built as part of a corporate commitment to long-term, partnershiptype relationships with customers. Based on existing and future demand, EGA ’s leadership is confident that the company will continue to pre-sell its complete annual production for years to come. ᔢ Contact www.dubal.ae/www.emal.ae

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Aluminium International Today

March/April 2014

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14 EUROPE UPDATE

Global aluminium demand is set to grow and the world’s aluminium production is on a steady rise. But despite growing demand in Europe across all key markets and continuous environmental leadership, the EU’s aluminium production is in sharp decline. Since 2007, Europe’s primary production capacity of aluminium declined by over a third through plant closures and curtailments between 2007 and 2012 and Europe’s demand for aluminium is now highly dependent on imports (up to 51%). Closures of upstream plants are putting the sustainability of a strategic industry value chain in Europe at risk, significantly impacting Europe’s employment, R&D, innovation and capital investment capacity. What’s more, this erosion of a major industrial sector’s competitive base is unique to the EU when compared with other producing regions around the world. The European Aluminium Association (EAA) is the voice of the aluminium industry in Europe, its members representing 16% of the world’s total production with a turnover of about €37 billion. It is actively engaging with EU decision-makers and the wider policy community to achieve the legislative and political framework needed to safeguard the competitiveness and sustainability of the whole value chain in Europe. Despite the damaging effects of the 2008 economic crisis, climate change goals have often eclipsed EU industrial policy , with policymakers neglecting the crucial fact that along with other industries, the aluminium sector is not preventing, but contributing to the successful transition to a green economy. Indeed based on EAA’s efforts and claims, the European Commission acknowledged the aluminium sector as “critical to the industry value chain and urgently requiring new investment to be made in the face of strong international competition,” in its revision of its 2010 industrial policy in October 2012. The European Commissioner for Competitiveness and Industry Antonio Tajani, took action by commissioning the Centre for European Policy Studies (CEPS) to assess the cumulative cost of EU regulations to the aluminium sector’s competitiveness in the following areas: Energy, climate change, environment, competition, trade, and product policies. 46 aluminium plants from the whole value chain responded to the survey, providing evidence to support the claim that EUspecific policies are severely hampering the sector’s ability to compete in the global arena. Commissioner T ajani, who recognised that the return of the aluminium industry to competitiveness is an urgent priority and that European

By Gerd Götz*

Stop De-industrialisation: Concrete proposals from the European aluminium industry aluminium producers must be able to source energy at affordable cost, presented [1] on 6th the results of the report November 2013. Energy costs lie at the heart of equation. The CEPS study clearly distinguishes between aluminium smelters that are shielded from full energy costs, as they concluded long-term (but soon-to-expire) contracts with electricity providers before the entry into force of the new Emission Trading Scheme (ETS), and smelters that are fully exposed to the cost impact of EU regulations. M any plants falling into the latter category have seen their production costs soar to €228 per tonne of final product – representing 11% of total production costs including raw materials (close to 20% excl. raw materials). Plants less exposed to EU energy and climate policies-face EU regulatory costs of €27 per tonne. In the case of the most exposed smelters, the majority of which are in the EU, the regulatory cost incurred comes from a combination of the pass-through of energy costs and surcharges to support renewable and related grid costs (49%),

indirect costs of the ETS - the costs of CO2 passed on by electricity producers in power bills - (42%), and environmental costs (9%). The cumulative cost of EU rules and regulations ranged from 23% of profits in 2006 (the most profitable year) to 242% in 2011, when margins were lower as a result of the crisis. Another deciding factor in Europe’s diminishing competitiveness is the pricing of aluminium on the London M etal Exchange (LM E), a global price-setting mechanism, which prevents the industry passing on costs to its end customers. M anaging production costs below an average LM E quotation is essential to maintaining margins, funding investments, and securing the competitive position of the European industry on the global playing field. W ithout the right policy framework, the European sector will continue to struggle under the weight of unique costs whilst facing global prices. A central goal of the current EU’s mandate is to increase industry’s share of the Union’s GDP to 20% by 2020, compared with 15.2% today. Yet the CEPS

*Director General, European Aluminium Association March/April 2014

Aluminium International Today

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report presents strong evidence of the burden of certain EU regulations on industrial growth, confirming the risk of deindustrialisation in Europe. Achievement of its climate and environmental goals is pointless if it results in the sacrifice of an industry that, in addition to generating wealth and jobs, is key to Europe’s transition to a low-carbon and resourceefficient society. Restoring competitiveness: The policy solutions

The EAA laid out the policy solutions required to reverse this trend in its Agenda for Action [2], which serves as a blueprint for a strong, consistent and predictable policy. The EAA calls for the alignment of EU industrial, energy and climate policies and the inclusion of “competitiveness checks” when assessing the impact of new EU rules. Crucially , there should be a special case made for energy -intensive industries that are most vulnerable to EUspecific costs. In particular , effective protection and compensation must be introduced for the direct and indirect costs originated from the European Emissions T rading Scheme (ETS) for at least the most vulnerable energy-intensive industries, which are exposed to global competition. On top, the European Commission must provide

legal certainty to energy intensive industries on the state aid and compensation measures that M ember States are or have been putting in place to alleviate the consequences of EU policies on their own domestic industries. Europe’s challenge also lies in keeping its scrap to further unlock the recycling potential and foster its circular economy. More than half of all aluminium currently produced in the EU-27 originates from recycled raw materials, a trend on the rise. In view of growing end-use demand and insufficient domestic primary production in this part of the world, it is in Europe’s interest to maximise the collection of available aluminium and develop the most resource-efficient scrap treatments and melting processes. EU policies should ensure a global level playing field, support measures to increase scrap generation and further unlock the recycling potential of the industry through several measures. Aluminium products are unique in their ability to help legislators to achieve their targets of producing more innovative and sustainable products and reducing greenhouse gas emissions. By supporting the production of cleaner vehicles, energy-efficient buildings, better and safer packaging, cost-efficient and renewable energy production, the aluminium sector supports green growth

in ways other industries simply cannot. Unlocking the demand for resource efficient solutions will stimulate the entire EU industrial value chain. The EAA strongly encourages all levels of the decisionmaking structure to maintain R&D functions and high-skill levels of Europe’s industries through specific education programmes, funding opportunities and tax advantages. The European aluminium industry is committed to maintaining its contribution to a more sustainable future in Europe, to a competitive Europe. But the time has now come for a pragmatic review of EU climate and energy policies to stop carbon leakage and further de-industrialisation and to protect jobs and technology leadership in Europe. The EU cannot afford to lose an industry that contributes to the transition to a low-carbon and resourceefficient economy . It is now time for a strong and immediate political response, both at EU and national level. ᔢ References

[1] http://www.alueurope.eu/wpcontent/uploads/2011/08/REV-CEPS-EAFinal-Report-Aluminium-Cumulated-CostAssessment.pdf [2] http://www.alueurope.eu/wpcontent/uploads/2011/08/EAA-Agendafor-Action-20131127.pdf

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16 RUSSIA UPDATE

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Production of passenger cars at Gorky Automobile Plant

Aluminium’s role in Russian automotives The Russian automotive industry is a rapidly developing domestic production sector, demonstrating positive growth trends. Several years ago, over half of Russia’s cars were imported, however today 70% of all cars sold are produced domestically. According to the Association of Russian Automakers, every fifth ruble of foreign direct investment in Russia goes into the automotive sector, while every third job is provided by an automotive company. A century long history - and beyond

History records show that cars were produced in Russia before the 1917 October Revolution. Gorkovsky Avtomobilny Zavod, Gorky Automobile Factory (GAZ) was founded in 1929 by Nizhny Novgorod, in cooperation with American Ford. The iconic ‘Volga’ model, produced at GAZ, quickly became synonymous with luxury in the Soviet Union. Another icon of the Russian car industry was the ‘Lada’ and unlike the V olga, whose production ceased in 2008, the Lada is still made today by the AvtoVaz car manufacturer located in Togliatti. The first Lada was a result of a collaboration between AvtoV az and Italian car -maker Fiat. The aim was to produce a reliable car that could be manufactured cheaply enough to be accessible by ordinary Soviet citizens, rather than produce more expensive models restricted to the elite. The first Lada, or Zhiguli as it was known in the country, was simply a re-engineered version of the Fiat 124. Initially produced in 1970, it went through many iterations to become the most popular car in Soviet history. Before the break up of the Soviet Union, the USSR’s annual car production output was enough to satisfy only 45% of domestic demand nevertheless, the importation of cars was not permitted. In 1991, car imports were allowed and March/April 2014

making it hard for Russian automakers to thrive due to competition with foreign players. A new page in the Russian car industry began. From consumption potential to investment

The Russian car market has huge consumption potential and is estimated to take a 5% global share. Only Germany, the traditional automotive leader globally , demonstrates better results. It comes as no surprise considering Russia is set to see an increase in the number of cars per capita, matching the current European level. The Association of European Businesses predicts that by 2020, Russia will become the largest automotive market in Europe, displacing Germany to reach 5th place globally after China, India and Brazil. These factors have encouraged global car industry leaders to continue expanding in Russia through partnerships with domestic producers and greater investment. F oreign brands account for almost 80% of all cars sold in Russia, however the 10 best-selling cars include Russian models too. The list includes three AvtoVaz (Lada) models, the Hyundai Solaris, Kia Rio, Renault Logan, VW P olo, Ford F ocus, Niva-Chevrolet and Daewoo Nexia; all assembled in Russia. Today, nearly all leading global car manufacturers have a presence in Russia – BMW has an assembly plant in Kaliningrad,

Ford, Kia, Hyundai, Nissan, and T oyota have facilities near St. P etersburg, while Citroen-Peugeot and V olkswagen are in Kaluga in Central Russia. Renault-Nissan has a 25% stake in AvtoV az, where they produce the Renault Logan and Renault Duster. Another leading domestic producer, the GAZ Group, has assembly lines throughout Russia making the Škoda Octavia, Škoda Y eti, V olkswagen Jetta, Chevrolet Aveo and also the M ercedesBenz Sprinter. Investment continues with F ord spending $350 million in 2013 on new production lines, whilst M ercedes-Benz spent more than €100 million. Volkswagen started its two-year investment programme with a total budget of €840 million and General Motors plans to invest $1 billion over five years. GAZ Group increases aluminium usage in car production

What does this mean for the aluminium industry in Russia? It can only be positive. According to RUSAL ’s estimates, in the near term, aluminium consumption in Russia and CIS will be driven primarily by automotive production growth with Russian-based producers leading the race. As such a prospective engine, the Russian automobile manufacturer GAZ Group has been using aluminium in car and parts production for many years. The GAZ Group leads the Russian commercial Aluminium International Today

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vehicles market owning 50% of the LCV segment and 65% of the bus segment. It is the leading Russian car manufacturer building environmentally friendly modes of transport, including vehicles using alternative fuels. The GAZ Group produces light and medium-duty commercial vehicles, buses, heavy -duty trucks, passenger cars, power trains and automotive components at its 13 plants located in eight regions of Russia. GAZ Group’s main shareholder is Russian M achines, a machine-building holding. This shareholder and UC RUSAL are both part of the Basic Element business group. Aluminum is used in the production of large case-shaped parts and alloys such as clutch casing, gear cases, steering rack cases, as well as the components of brake air systems, engine cooler and intercoolers. Recently the level of aluminium consumption at GAZ Group has increased due to an increase in the production of vans made using sheet aluminium sandwich panels. GAZelle Next, a new generation LCV, is the Group’s flagship model. This product line brings together vehicles weighing between two, eight and five tonnes. These new generation vehicles contain aluminium mainly in the rear bodies and

Automobile and aluminium industries go hand in hand

GAS Group lead the Russian commercial vehicles market.

bus interior. The Uliyanovsk motor plant widely uses aluminium in the production of engines. These engines, which contain aluminium in their cylinder barrels, cylinder heads, oil pump body and water , pump body , are then installed in GAZ cars. Aluminium is also actively used in the production of diesel engines at the ‘Avtodisel’, the Yaroslavl Motor Plant. These engines are installed into heavy vans, buses and agricultural vehicles manufactured by Russian and CIS producers. This plant is one of the oldest (established in 1916) and most modernised plants in Russia.

Today, Russia adheres to global guidelines to meet key standards required in developing materials used in the production of automotive vehicles; qualities such as low weight and high resistance. Resistance to corrosion and decorative surface are also important. The high strength-to-weight ratio of aluminium alloys will enable increases in cargo capacity and also decrease the maintenance required for cargo charges. According to RUSAL’s estimates, currently 25% of global aluminium, including secondary consumption is accounted for by the automotive industry and this figure is expected to increase year on year. Russia’s automotive market is high volume and has reasonable growth potential. This potential, alongside the increasing role aluminium is set to play in the global automotive industry, opens new horizons for Russia’s aluminium sector , stimulating demand for the metal within the domestic market. ᔢ Contact www.rusal.ru/Press-center@rusal.ru

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CHINA_30_AIT_0110 3/4/14 12:32 PM Page 30

18 CHINA UPDATE

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China’s use of aluminium in the automotive industry

Various trial work and research has been carried out by the automotive industry in the areas of structure design, material usage and manufacturing technology, so that safe, comfortable, high-speed, energy saving and environmentally friendly cars can be produced. The priority is to reduce the weight of the automobiles and the application of aluminium alloys casting is the best way. By Lili Shi* The replacement of steel with cast aluminium could reduce the weight of the total car body by around 30 – 40%, reduce the weight of the engine by 30%, and make cast aluminium wheels 50% lighter. The demand for automobile lightening will provide more development for the cast aluminium industry . Based on expert forecasts, it is practical in the sense of the economy to raise the application of cast aluminium to 60%. Therefore, the limit of cast aluminium for the automotive industry could increase by 30 – 50%. The exploration and application for cast aluminium in the auto industry will focus on three points: Firstly, cast aluminium for the car body and frame. Secondly , cast aluminium usage for anti-rush and steel doorframes. Thirdly, cast aluminium usage for certain moving parts. China’s application of aluminium alloys

At present, China’s demand for aluminium alloys per year is around 150,000 to 180,000 tonnes and is increasing by 10% each year . Along with more usage of aluminium alloys and aluminium wheels, certain auto producers began to produce cast aluminium parts to satisfy the increasing demand. Chinese car producers have strived to use more cast aluminium (especially in the parts of inlet manifold, cylinder and cylinder cover). M ost producers also made great efforts to adopt more aluminium wheels and heat exchangers (including radiators and condensers). But most still have a long way

to go use deformed aluminium alloys for auto bodies. Aluminium alloys are used not only to lift up the features of automobiles, but also to satisfy the demands of lowering the weight of car body. For example, the German Audi A8 first adopted the ASF aluminium alloy space truss body lightening technology so that the strength of the whole car piece could be lifted by 25% and the whole space structure could be saved by 6.5 kilos. The ASF is mainly composed of aluminium parts, which could help Audi reduce the weight of the car body, but also maintain the stable braking system. At the same time, most aluminium parts could be recycled in a large scale. It is expected that the aluminium usage for each automobile in the developed world will go up to 180kg and the total weight of aluminium materials will go up from the present 8% to 12%. In comparison, China’s aluminium alloy consumption stayed relatively low . In 2010, its aluminium usage per automotive stayed at 99kg, which was lower than the world average of 112kg. Y et along with the deepening of China’s industrial development, its usage of aluminium alloys for automotives will grow at the pace of 10 – 12% each year. Aluminium has been an indispensable material due to its special features, mature producing technology and low producing costs. It is the most promising light metal in pushing the lightening of automobiles. Along with the change of industrial structure, China’s automotive industry will

involve more consumption of cast aluminium and deformed aluminium profiles in order to cater to the interests of tightening natural resources, serious environmental pollution and China’s higher reliance on other countries. China’s automotive industry will boost the aluminium alloy. Chinese automotives: The gap with developed countries

In recent years, the world’s production of cars has maintained stable growth, especially in developing countries, such as China, India and Brazil. China recently witnessed the fastest speed of automobile growth, accounting for 23.5% of the world’s car production and maintaining the first top producer for four years continuously. But China’s ownership per person still stays pretty low compared with developed countries. Although the tightening up of monetary policy has disturbed the industry, it still has some positive factors, such as rising disposable income, and a higher rate of urbanisation. At present, the automotive spread rate in China is around 58 cars per one thousand people, which is low compared to the 765 cars per thousand people in the USA. In most areas of China, the R figure (the ratio between automobile sales and GDP per capital in the specific region) has reached 3-5, which means that China has entered the fast growth of car development. Therefore the car ownership for Chinese individuals will go up accordingly. ᔢ

*Consultant March/April 2014

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LME 2 at 90_30_AIT_0110 3/5/14 11:26 AM Page 30

20 LME DEBATE

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The great LME debate Nick Madden* explores how the warehousing situation developed.

In the last two years there has been a debate raging about London M etal Exchange (LME) warehouses, queues and inflated metal premiums. Consumers have publicly criticized the LME and called for sweeping reforms. Some producers have attacked those claims and fought to maintain the status quo. Lawsuits have been filed. The Senate Banking Committee, the Department of Justice, the Commodity and F utures T rading Commission, the Financial Conduct Authority and the European Commission have all been talking about the LME. An article in July on the front page of a Sunday edition of the New York Times talked about investment banks shuffling metal between warehouses in order to prop up the price of aluminium. What has been going on? Iâ&#x20AC;&#x2122;ll attempt to explain this issue from my own perspective. How did the warehousing situation develop? The story begins in 2008 when the commodity boom ended abruptly and the financial crisis triggered a catastrophic drop in the aluminium price from $3,300 to $1,300/t in the span of seven months. At the same time, we saw a 20% decline in global consumption of aluminium. W orld consumption (excluding China) dropped by five million tonnes, but primary production only fell by two million. In the past, when there was such a significant oversupply, cutbacks in primary production might normally be expected. But this did not happen. With ultra low interest rates and a wide contango, the opportunity emerged to stockpile aluminium and finance it, generating a handsome return through cash and carry . Some of these finance deals were in LME warehouses and others in non-LME locations.

Perhaps the most widely reported buildup was in Detroit. The metal was moving to Detroit because the LM E-registered warehouse complex there had become the equivalent of a competitive buyer in the market. The warehouse company sought to lure aluminium onto their premises, gambling that the metal would remain in storage for a long time. They took a portion of the forecast rent that they would earn and offered this as an incentive to primary producers. As the stockpile grew and the queue developed, the warehouse company was able to increase the incentive offered because they knew that the metal would be there for some time. How did they know? Because the LME had rules which required the warehouse to ship a minimum of 1500 tonnes per day, which increased to 3,000 tonnes per day on April 1, 2012. An analysis undertaken in January 2012 illustrates the captive rental income from metal stuck in the queue. (See Fig 1). If Detroit had closed its doors to inputs on January 31, and shipped-out metal at the minimum loading rate until the warehouse was empty, it would have taken 2.5 years and the rent that would have been paid during that period by the owners of the stranded metal was estimated at $230 million. This took into account the rule change in April 2012, which doubled the minimum load out rate for warehouses with more than 900,000 tonnes of stocks. Certain warehouses treated the minimum obligation as a maximum requirement and were able to offer incentives to attract metal based on the projected rental income that they would earn.

What were the key problems? #1: Inflated premiums

The ability of the warehouse to bid for metal by offering incentives was the direct driver of the increase in the M id W est Premium from 7c/lb to over 12 c/lb at the 2013 peak. And it quickly became obvious, especially to producers, that as long as the warehouse was bidding competitive numbers with the rising premium, it provided an outlet for excess production, thus keeping the market balanced. The premium was only able to reach theses unprecedented levels because a completely different business model than conventional supply and demand drove the offer from the warehouse. The warehouse offer was based upon rental income and the time the metal would stay in storage. This phenomenon was sustainable because metal stored in many other LM E warehouses was locked in finance deals and the warrants were not in circulation. As a consequence in 2013, if a consumer wished to take metal out of the LME, he would be offered far-flung locations with no queue at warrant premiums, which reflected the already inflated market in that region. In Detroit, for instance, a consumer would join the back of the queue and pay rent, insurance and finance for 19 months while waiting for metal. #2: Supply chain risk

One consumer tested the queue in September 2011. The company bought four lots in Detroit and waited five months until F ebruary 2012 for the metal to be delivered. In June 2013, the wait time had grown to 19 months in both Detroit and Vlissingen. For a manufacturing business, it is impractical to have inventory tied-up

*Nick Madden, Senior Vice President and Chief Supply Chain Officer, Novelis. March/April 2014

Aluminium International Today

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LME DEBATE 21

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for nineteen months. In addition to the working capital inefficiency, it also presents a serious problem for the supply chain, because although the aluminium is sitting in storage, it is inaccessible for this prolonged period. While most major aluminium consumers secure metal requirements on longer-term contracts, if a consumer wanted fast access to LM E metal in response to a demand upswing, it was simply not accessible. How high are the stakes?

One major consumer, MillerCoors in a US Senate banking hearing in July , talked about consumers over-paying for metal by $3 billion per year . This number was an estimate of the artificial inflation of approximately $120/t compared with normal premium levels, multiplied by nonChinese annual production of about 25 million tonnes at the time. In reality, it was a conservative estimate. All metal outside China, including inventories in warehousing deals and scrap, was impacted by the higher premiums. The premiums, such as the M id W est Premium and EU Duty Unpaid Premium are published in business journals such as Platts and M etal Bulletin. The prices are derived from surveys conducted by the publications on a daily basis to capture news of actual transactions taking place in the market. It can be a handful of transactions, which actually set the market price. These published prices are referenced in most supply contracts between, producers, semi-fabricators and consumers. As a consequence, a very small volume of transactions sets the price for almost every contract in the region. This explains how the LME queue problem, and the consequent inflated premiums, can affect all metal flows in a region and ultimately in the world, leading to claims that consumers are paying $3 billion too much for aluminium. Who benefits?

Some believed that this windfall was going to the warehousing companies. This was not the case. They have a different business model, which benefits from rent earned on the metal in their warehouse. In fact, the extra premiums go to primary producers. And if you want to know how much of the estimated $3 billion goes to each producer, just multiply their primary production by $120/t and it will give you an idea. F or example for a non-Chinese producer of $4 million tonnes, the windfall could be expected to be around $480 million per year. What’s the solution?

A group of semi-fabricators and consumers in beverage packaging, flexible packaging, automotive and aerospace Aluminium International Today

sectors lobbied the LM E and market regulators under the umbrella of the Aluminum User Group (A UG), formed in 2012. The A UG wanted the LM E to overhaul the warehousing system and eliminate the queues quickly. In July 2013, the LM E responded to widespread criticism and published proposals to reform the warehouses and address the queue problem at locations with a queue of longer than 100 days. Their proposal sought to increase the minimum load-out rate of warehouses with long queues and introduced a mechanism to link the load-in and load-out rates to bring more equity between a warehouse’s ability to absorb metal and to release it. The LM E gave market participants three months to consider their proposals and provide feedback and ideas. The A UG responded with a series of recommendations. At the heart of the AUG’s feedback lay a simple concept. There should be no queue. When a buyer of any futures contract takes delivery and requests access to the asset, it should be immediately available. The A UG proposed that once a warrant is cancelled, the warehouse should not be able to charge rent after 30 days following cancellation. This would have a dual benefit of discouraging the warehouse from allowing a queue to develop through eliminating the rent, which it would earn, and would remove the driver of the incentive payment that drove up the premiums in the first instance. The LME received feedback from over 40 market participants and finally released a reform package on November 7, 2013. Amongst the reforms, the new load out requirements would apply to warehouses with queues greater than 50 days, a reduction of 50 days from the initial proposals. Further, a new Physical Market Committee would be formed, a full warehouse logistics review would be held and delayed data on commitments of traders would be published. Through these changes, the LME sought to address the problem of the queues, market transparency and market representation. The new load-out arrangements become effective April 1, 2014.

but over time the market recognised that it would take a long time for the rule changes to have an effect and there was little immediate reaction. However, since the start of the New Year, the Mid West premium has nearly doubled – moving from the 2013 peak of around 12 cents/lb to 21cents/lb early in 2014. On this occasion, the LM E warehouse queues play only a small part. Some market players have accused the LME of “getting it wrong,” implying that their rule changes have caused the spike in premiums. Of course, they have not. Since the announcement, we have seen an unprecedented cancelling of warrants as metal seeks to leave the warehouses, either to return to circulation in the free market or to simply be re-directed to a non-LME warehouse under another financing arrangement. The recent spike has more to do with a very short-term shortage of metal in North America. W ith millions of tonnes of primary aluminium believed to be stored in stealth stock in unreported locations, recent producer cutbacks, a tight scrap market and an up tick in demand, along with the delay in accessing metal in LME warehouses, the market is simply short of spot physical metal. It has the appearance of an engineered squeeze because, despite an abundance of metal in storage, it can’t be accessed freely and premiums are at astronomical levels. However, the answer to this may be in these high premiums. With the Mid West Premium at $450/t, metal is already being drawn from stocks in Europe. At the same time, it is not possible for the warehouses to compete with the premium at this level and those who are holding metal in stock will look seriously at liquidating it and taking the profits from the sky -high premiums. It seems that the premium has become over extended and should normalize in the coming months. However, many believe that it will be a long time before we see the M id W est Premium return to previous norms of four to seven cents per pound. How can these issues be fixed permanently?

The LM E is in a difficult spot. As LM E officials stated when announcing the proposal back in July 2013, they could There is a reasonable consensus among consumers that the LME’s changes seeking already see potential issues developing in more equilibrium between a warehouse’s the future. For example, when the market ability to intake metal and the obligation is in backwardation, and companies wish to deliver metal to satisfy their obligations, to release metal make sense. But consumers do not believe that this should warehouses may refuse to accept large only apply to a warehouse with a queue of quantities simply because they do not 50 days or more. Consumers believe that want to incur the consequent load out there should not be any queue. However, obligations in a future period. So it seems that the LME is trying to steer through a it is a step forward. range of potential problems that any single Initially, premiums remained stable. Some had expected a freefall in premiums solution might create. How has the market reacted to the rule changes?

March/April 2014

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22 LME DEBATE

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$250

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$0 Rent in m$

Stock in mt

Fig 1 Detroit stock depletion and revenue (30 Jan 2012).

Aluminum ingots being prepared for rolling at Novelis plant in Oswego, NY.

market gives them an edge over other users and it is this edge that creates a conundrum for the LME. No matter what the LM E does, such market participants may look for gaps, flaws and loopholes in any new proposal and combine their levers to generate value for themselves at the expense of other market participants. This is the real issue. It became clear over the last two years that warehousing and, more broadly , commodities are outside the normal scope

Why is this? There are players in the metal market who have an edge over regular physical users of the market. F or example, certain banks may have LM E brokerage, physical trading and warehousing operations and access to finance. Trading companies may not be LM E brokers, but possess the other attributes and may offer OT C premium deals or fixed pricing on the back of their LM E trades or physical books. The combination of multiple levers in the

of the regulators. This is an enormous issue for consumers of commodities. This is why the LME has such difficulties in finding a silver bullet. Because in this under-regulated market, the players with all the levers have too many opportunities to generate value for themselves. So what is the solution? Either increase the scope of regulation or prohibit the financial institutions from participating in unregulated markets. á&#x201D;˘

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Aluminium sheet in automotive applications With the aluminium automotive sheet market expected to grow rapidly worldwide, it could soon rival can sheet as the leading sheet application. Nadine Firth* spoke with Geoff Scamans** about how this could drive investment in rolling mills, heat treatment and finishing lines and whether the aluminium industry is up for the challenge.

The benefits of aluminium sheet, extrusions and castings in automotive body-in-white (BIW) structures are well known. They make it possible to reduce vehicle weight, improve fuel economy , achieve high recyclability levels, and provide corrosion resistance. In the beginning

Dr Geoff Scamans, principal scientist at Innoval Technology, has worked on the control and exploitation of the corrosion of aluminium for more than 40 years. His present interests are in environmentally friendly surface treatment, and in low cost aluminium automotive sheet for the mass production of lightweight low carbon emission vehicles. “After finishing a degree and PhD at Imperial College in M etallurgy , I began working for Alcan Laboratories in Banbury, UK,” says Geoff. “It was here that the core technology for a mass-manufacturable aluminium-intensive vehicle was developed.” The aluminium-intensive vehicle concept

was based on the assembly of components that could be produced in high volumes from formed and joined sheet and was brought to Alcan in the early 1980s by British Leyland. “The breakthrough was to use adhesive bonding with a limited amount of spot welding to achieve BIW structures with a 40% weight saving compared to the incumbent mild steel BIW structures,” explains Geoff. Based on this requirement Alcan developed the Aluminium V ehicle Technology (AVT) that was used to build a series of replica vehicles, starting with the BL Metro in 1983, through to 40 Mercury Sables built for Ford in 1993. The Alcan development team in Banbury, UK and Kingston, Canada involved up to 60 scientists and engineers for more than 10 years and was a major strategic investment in low carbon automotive vehicle development. M uch of this automotive sheet technology was developed by staff who are now part of Innoval Technology (Innoval was formed

following the closure of Alcan’s Banbury Laboratory in 2003). As a result, the staff at Innoval have a deep understanding of the rolling and finishing operations required to make automotive sheet at the required level of quality. AVT was commercialised in 2003 with the production by Jaguar , under the ownership of Ford, of the XJ saloon. This vehicle represents the first application of mass producible aluminium-intensive build technology that is consistent with conventional vehicle production methods. To date, the use of aluminium sheet for BIW components has been confined to high-end models with the Jaguar XK following in 2006, the Range Rover (2012), the Range Rover Sport (2013), but most recently there has been a step change with, the F ord F -150 (2015) in North America. This is the largest volume single vehicle in worldwide production. Changing times

Present EU consumption is already of the order of 200,000 tons/year (tpy), with

*Editor, Aluminium International Today ** Principal Scientist at Innoval Technology, UK Aluminium International Today

March/April 2014

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900

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Constellium, Singen AMAG, Ranshofen Hydro, Grevenbroich Constellium, Neuf Brisach Aleris, Duffel Novelis, Sierre Novelis, Nachterstedt

200 500

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projected consumption of 600,000 tpy by 2015 based on new aluminium-intensive models already announced by Jaguar Land Rover (JLR), Audi, BMW and Daimler. Expansion in automotive sheet capacity is also taking place in North America where Novelis recently announced an expansion of 360,000 tpy capacity at its plant in Oswego, while Alcoa announced a similar investment in automotive sheet capacity expansion at Davenport and at Knoxville. Both companies have invested roughly $1 billion each in expanded heat treatment capacity demonstrating their serious commitment. In Asia, several new rolling mills are being considered to support Chinese car production and Novelis is building a heat treatment and finishing line in Changzhou (120kt/y) for automotive sheet supplied from their Korean rolling mills. Developments in Europe have been the driving force behind this growth elsewhere. Aluminium automotive sheet production will increase rapidly to supply the expanding globalised automotive industry, with consumption in North America and Asia expected to reach equivalent levels to those in the EU, all driven by the same low carbon vehicle legislation requirements. Future developments

Looking at the way the market for March/April 2014

2020

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EU aluminium automotive sheet CHT capacity.

aluminium automotive sheet may develop in the future, it is clear that there is enormous potential for growth. As government regulations over vehicle CO 2 emissions and fuel efficiencies increase then so will the need for lightweighting. “Although these legislations have been around for a while, they have only just recently started to bite,” says Geoff. As a result, there will be wider substitution of aluminium for steel in BIW construction. W ith the current global demand for steel automotive sheet standing at over 20m tpy , aluminium automotive sheet could soon double the demand for aluminium flat rolled products globally. “The aluminium automotive sheet thus far produced has almost been a niche product, but as it becomes more of a commodity product, prices will come under increased pressure and production routes that offer cost savings will progressively dominate,” says Geoff. Two potential cost saving measures stand: Reducing the number of finishing stages and substituting traditional slab casting and the initial hot rolling stage with a less-costly (at least in terms of capital investment) continuous casting stage. Presently there appears to be very little interest in reducing the number of finishing operations and to move away to a much less highly specified product, even

in North America where Alcoa are following the other suppliers with a similarly specified product. Discussions with the major European aluminium sheet manufacturers have indicated they are unanimous in their opinion that the cost savings involved with the substitution of a continuous casting process for the current hot rolling process are not significant enough to warrant making the change. The investments being considered by the present automotive sheet suppliers and potential suppliers, looking specifically to the Chinese automotive market, are all for conventional hot rolling roughing and tandem mills, supported by additional cold rolling capacity. The debate on the need for the EDT surface is an important consideration as this has a direct influence on cold mill specifications, with new entrants into automotive sheet supply most likely to include an EDT capability in their mill specifications. In terms of new investment in heat treatment and finishing lines it is likely that they will continue to be specified in blocks of 100kt to 120kt/year capacity with conventional spray cleaning and then passivation for AA6xxx alloys or pretreatment for AA5xxx alloys. Significantly more and more AA6xxx alloys are being used in structural applications as higher strength is required to compete Aluminium International Today

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26 AUTOMOTIVE

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use of recycled aluminium in their vehicles, in making sure that their production scrap is separated by alloy family and returned to the sheet supplier for automotive sheet manufacture, and negotiating a discounted price on what they then pay for further sheet. The company is also exploring the use of alternative end-of-life scrap streams that presently end up in landfill sites to provide a new source of low carbon aluminium for vehicle manufacture. Significantly, JLR’s sheet supplier Novelis has a new aluminium recycling centre under construction at its site in Nachterstedt, Germany, which is scheduled to start operation in July 2014, and will be able to process 400kt/y of scrap beverage cans as well as other forms of aluminium scrap from the EU. “This leads on to the idea that cars of the future could own their aluminium cycle, but we are way beyond thinking this way at the moment,” says Geoff.

Positioned to capture demand

North America market demand auto aluminium (kMT) 4,410 1.090

3.080

Auto treatment line Davenport, IA $300M expansion to capture auto demand

Supported by secured contracts 2015

2025

Auto sheet Other auto aluminium (castings, etc)

On time and on budget First coil by December 2013

NA aluminium automotive sheet market growth: Alcoa.

From cans to cars

The other issue affecting the aluminium automotive sheet industry is the ‘End-of Life Vehicles Directive’, which is a Directive of the European Union addressing the end of life for automotive products. The recyclability of aluminium cars is a major advantage provided the wrought metal can be extracted from scrapped cars to re-enter the production cycle. “Here at Innoval, prompted by JLR, we March/April 2014

Aleris, Lewisport

1000

Constellium, Logan Alcoa, Knoxville Novelis, Oswego Alcoa, Davenport Alcoa, Danville Novelis,kingston

800 NA aluminium automotive sheet market CHT capacity (kt)

The expected growth of aluminium sheet in automotive application has been a long time coming but now has the potential to grow to challenge can body sheet as the major tonnage product worldwide. “This will require significant investment by the aluminium industry in both rolling and continuous heat treatment and finishing capacity ,” highlights Geoff . Innoval T echnology is able to provide technical support to any suppliers wishing to enter this market. The use of aluminium in cars must follow the use of aluminium in cans by

1200

600 400 200

2006

0 2004

Standardisation across the aluminium automotive sheet industry is a very important issue. “With this massive ramp-up in requirements, we need to ask if the industry is up to the task and if the supply chain can cope,” says Geoff . “As well as ensuring there is the capacity, automotive suppliers are looking to the aluminium producers to standardised products across the industry.” As it stands, each automotive company can go to a different aluminium producer and be told a different story. However, with the increase in demand and the possibility of supply becoming tight, companies may not be able to be tied to one particular producer. “Automotive companies will want to know that they can go to a second and third producer and still receive the same standard of product,” says Geoff.

2002

Issues

Conclusion

began to look at how aluminium cans are recycled, as the whole can is returned to the production process,” says Geoff . “Aluminium can sheet competes effectively with steel sheet for beverage can manufacture and so we looked into how aluminium can sheet can become the major product of the worldwide aluminium rolling industry.” The Novelis W arrington, UK plant was recently the launch production site for the industry’s first independently certified, high-recycled content aluminium can body sheet with a minimum of 90% recycled

2000

with the new grades of higher strength steel and for this use the sheet is cleaned and pretreated rather than just passivated. Qualification with OEMs will essentially be faster and more straightforward if the finishing operations are duplicated and standardised.

end-of-life scrap aluminium. This highlights the route that must be followed to make aluminium automotive sheet cost effective, energy and carbon efficient and available for application in the widest number of vehicle classes. End-of-life recycled aluminium has much lower embedded carbon at 0.5 tonnes/tonne compared to that of primary aluminium, which can be up to 12 tonnes/tonne from smelters without low carbon electricity supplies. JLR are leading the way in promoting the

2020

2012

2018

2,300

3,320

2016

2,660

2014

100

2012

420

2,400

2010

4x increase in auto sheet already locked into designs of 2015 models

2008

Auto sheet driving growth

developing and adopting the maximum use of metal recovery and recycling of endof-life scrap from automotive and other applications. Aluminium clearly shows its green credentials when it is recycled into transport applications where there is a major benefit in reducing weight and saving energy and achieving compliance with legislation. ᔢ Contact www.innovaltec.com

Aluminium International Today

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The Jaguar XJ 2014

Latest car designs reflect growing power of aluminium The automotive industry still remains as a major end use sector worldwide for aluminium alloy components and provides a major impetus for continuing innovations. A range of the latest car models, including a high profile selection from Europe and the USA, reflect great developments across the industry - combining materials technology, design, fabrication and manufacturing techniques - all centred on aluminium. By Ken Stanford* New manufacturing technologies deliver vehicle benefits

In the USA, General Motors’ $131 million investment in a range of new aluminiumcentred technologies at its Bowling Green Assembly Plant in Kentucky is producing the strongest and most precisely built Corvette Stingray in its 60-year history . The latest model is the seventh generation of this iconic design sports car , which has been built exclusively at the facility since 1981. The new technologies enable more accurate and efficiently produced subassemblies, such as the frame and the components attached to it. Enhanced, laser-based 3-D inspection systems verify overall assembly tolerances targeted to be 25% tighter than the previous-generation Corvette. Around $52 million of the investment was for a new body shop that manufactures the car’s all-new , lightweight aluminium frame, for the first time in-house. The frame is not only the foundation for the car’s greater driving capabilities, but the platform on which the new model is more precisely constructed. It is 99lb (45kg) lighter and 57% stiffer than the previous-generation frame, resulting in a chassis strong enough so even the convertible version needs no structural reinforcements. It is also the most complex Corvette frame design ever , featuring main rails comprising five customised aluminium

segments, including extrusions at each end, a central main rail section and hollow-cast nodes at the suspension interface points - all with varied thickness that optimise the strength and mass requirements of each respective section. Assembling the frame requires more advanced joining processes and more precise inspection methods to ensure strength and dimensional accuracy . Aluminium joining techniques, Flowdrilltype fastening and laser welding help ensure the high-quality targets set for the frame. Joining techniques

Flowdrill fastening is a first for body structure joining: The new Corvette Stingray’s frame features 188 Flowdrillmachined fasteners coupled with structural adhesive. The fasteners are installed by a high-speed drill whose material deformation creates a strong, integral collar that is then tapped for screw-type fasteners. This technique effectively joins closed sections, where only one side has open access and where other types of welding could cause heat distortion or weaken material. Dimensional quality is also maintained, eliminating the need for post-assembly machining. Aluminium resistance spot welding, pioneered by GM , is an

efficient method for joining aluminium to itself where there is two-sided joint access. It is particularly effective with the thicker materials (up to 4mm) used on the new vehicle frame. There are 439 aluminium resistance spot welds overall on the Corvette, including on the frame, extrusions, die castings and sheet metal. The process is used in the Corvette’s aluminium structure tunnel sub-assembly and in mainline attachments of various components. Additionally , licensed suppliers use the process to produce a few sub-assemblies for the car. GM ’s new resistance spot welding process uses a patented multi-ring domed electrode that does what smooth electrodes are unreliable at doing: Welding aluminium to itself - and more cost-effectively than other methods. The multi-ring domed electrode head breaks up the oxide layer on the aluminium surface producing a stronger weld. Two robotic laser -welding stations are installed in the frame tunnel sub-assembly area to attach sheet aluminium closeout

The 2014 Chevy Corvette Stingray

*Consultant Aluminium International Today

March/April 2014

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www.aluminiumtoday.com Flowdrill process

panels to the tunnel structure. The process enables continuous welding quickly when only single-sided access is available. Additionally, the precise beam of high energy used in the welding process minimises heat beyond the weld area for improved structural accuracy, and the laser creates a leak-free joint that does not require additional sealing, which could add weight to the frame structure. Inspection

Laser vision inspection for quality assurance on the line now includes Perceptron tools to monitor critical points on all Corvette bodies on the production the line. By checking every car and major assembly in the plant, process variation can be seen and addressed immediately . Tighter tolerances on parts and new , improved tooling for the Corvette’s various assembly procedures are helping the plant

this employ low-weight designs with aluminium, they are able to accelerate more quickly , brake in shorter distances and handle corners better than their heavier , less-efficient counterparts. Significant move to aluminium

With the launch of its redesigned F -150 pickup truck this year Ford is making one of its boldest product developments. The business move the global major is taking replacing the traditional and long proven welded steel construction of the truck cab and cargo bed with a body that is largely lightweight aluminium - is significant news for both the auto and aluminium industries alike. Now in its 13th generation, the F -150 has been America’s best-selling vehicle for 32 consecutive years (763,402 were sold last year) and the top-selling truck for 37

XJ aluminium intensive construction

achieve a 25% or greater improvement in meeting specification targets. Perceptron is essentially a 3-D measurement station that uses fixed and robotic-mounted Helix laser sensors, or cameras, to monitor critical build features. It delivers a three-part “in process” quality inspection for frame rail assemblies, uniframe and composite bodies with a fully fitted cockpit. On the composite body alone, 39 specific points are measured out of a total of more than 100 dimensional measurements on each complete frame assembly. It takes around 2.5 minutes to measure each car in the station to within 0.25mm. Mustang increasing aluminium use

Also in the USA , marking the 50th anniversary of another iconic vehicle, Ford is launching a completely redesigned Mustang for 2015. The all-new model will feature an aluminium front bumper , joining an already aluminium bonnet, helping to cut a massive 200lb from its curb weight. When performance cars like March/April 2014

years. The F -Series accounts for 35% of Ford’s North American revenue. Considering this popular workhorse vehicle is as utilitarian and practical as it is very profitable for Ford, the decision is an intrepid step for the company. The much-anticipated switch in materials, involving an investment of billions of dollars by F ord in factory updates, production tooling and engineering expertise, is a breakthrough in scale and a first for pickups. It is aimed at drastically reducing the F-150’s weight to improve fuel economy. According to F ord engineers, the new truck is expected to be some 15% lighter over all than the previous steel version, with the aluminium body and bed alone cutting more than 450lb. Including engine and suspension components, aluminium is expected to account for as much as 1,000lb of the truck’s weight. Cutting vehicle weight is widely regarded as the

most cost-effective way to reduce fuel consumption and greenhouse gases: Reducing weight by 10% results in a fuel saving of 6 to 7% and also enables a higher payload and towing ratings and allows more accessories to be fitted. Ford’s new aluminium strategy involves a critical redesign and a significant shift in manufacturing and marketing for more of its already very profitable models. The company plans to switch all of its full-size truck bodies, including the F -250 and F350 Super Duty pickups and some of its SUVs, to primarily aluminium construction over the next three years. The aim is to establish common manufacturing processes and tooling in F ord’s three US truck plants. Engineering test results show that a stamped aluminium body can match or even outperform steel in overall strength, dent resistance and crash protection, depending on the material used, its thickness and how the structure is designed and assembled. Ford is using 5000 and 6000 alloy series sheet, supplied by Alcoa and Novelis. These alloys are popular with automakers because they are easy to form, rugged and, in the case of 6000, provide the smooth “class A ” surfaces required for visible panels such as bumpers. About 50% of the truck’s stampings will use the more expensive 6000-series sheet, heattreated to a T4 condition, which involves heating to 400°C for two hours, followed by immediate water quenching. The material is further hardened as the body passes through the paint-drying oven. Ford engineers said the F -150’s body and box strength also comes from the combination of structural adhesive and some 4,000 rivets used to join much of the aluminium, replacing about 7,000 spot welds on a steel truck. While the

The 2015 Ford F-150

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bodies will move to aluminium, F-Series models will continue to use other steel parts including separate ladder-type frames, side-impact door beams and the front and rear bumpers. The company has experimented with various aluminium-intensive concepts since the 1980s, but the focus was mainly on unibody designs, without separate frames. F ord says it came close to producing an all-aluminium saloon in the mid-1990s, but instead decided to invest in aluminium bodies for Jaguar, which Ford owned from 1990-2007, and from that relationship F ord retained intellectual-property rights to much of the aluminium forming and assembly technologies. The company's sole production vehicle with an aluminium-intensive body was the F ord GT sports car, built in small numbers between 2004-6. As global fuel-economy has become an increasingly vital issue; aluminium’s use in automotive applications has steadily grown. But volume production of aluminium bodies, however, had been limited to luxury brands such as Audi, Jaguar Land Rover and Mercedes, but with the 2015 F-150, Ford has changed the rules.

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BOOTH B13/7A

Deluxe and aluminium-intensive

Meanwhile on the other side of the Atlantic, in the UK, the muchprized XJR model has returned to Jaguar's portfolio following a fiveyear absence. This is a high-performance, luxury design variant of the full-size XJ saloon, featuring a lightweight aluminium-intensive construction to complement a 550-horsepower V8 engine. Helping to optimise fuel economy, adding to enhanced power, performance and handling, are all-aluminium body components, mechanicals and structural elements, including forged alloy wheels that result in a curb weight hundreds of pounds less than many of the XJR’s rivals. Jaguar claims the new model delivers agile, dynamic performance, and an enhanced driving experience thanks to the rigid, lightweight but strong aluminium construction and near perfect weight distribution, offering safer more precise handling and absorption of greater impact forces than steel. It can also help achieve better fuel economy and reduced CO and as another 2 emissions – environmental-plus, 50 % of the aluminium used is from recycled sources. The all-aluminium platform, using the same material as the British deluxe marque’s proven XJ flagship and F-Type two-seater, is pivotal in the innovative future of its cars, the manufacturer says. According to reports, Jaguar will use all-aluminium construction across its entire vehicle range by 2017. The XJ model has used bonded-and-riveted aluminium for over 10 years, and sister company Range Rover is an industry leader using the lightweight components, but premium German rivals are gaining ground in increasing amounts they incorporate in their new vehicles. Lightweighting and redesign

For example, M ercedes-Benz in Germany launched its latest, extensively redesigned C class saloon in January . The fourth generation of this big selling model features a new lightweight body structure that Mercedes says will reduce total weight by as much as 220lb, depending on the engine used. In latest details released, the company maintains that the new aluminium hybrid structure will contribute to a 20% cut in fuel consumption on certain models without a decrease of power . Also, aluminium content in the C-class body structure will rise to 48%, up from 9% on the previous model. Nine primary cast components are used in the body structure, with the suspension mounted on aluminium die-cast elements that M ercedes says are much more rigid than the steel components used on the previous model. ᔢ Aluminium International Today

LASER MEASUREMENT SYSTEMS ■ Straightness ■ Diameter ■ Ovality ■ Thickness

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March/April 2014

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Aluminium in Crash Management Systems

March/April 2014

Jarrett, T echnology Director of Constellium’s Automotive Structures and Industry business unit. We believe that the functionality of extruded sections can be optimised for vehicle integration, including in-line surface pre-treatment and in-line fabrication, cutting, punching and bending. Developments in aluminium alloys are also making way for parts with higher strength, absorption and damage tolerance than those used today . The future of aluminium CM S solutions is expected to include higher performing aluminium alloys, with the potential to exceed the strength of currently utilised

Picture courtesy of Constellium

Gone are the days when crash management systems (CM S) for vehicles were as simple as sturdy bumpers. Today’s systems factor in more than just front-end reparability. M odern CM S solutions are more complex and fulfil more functions than ever . F rom integrity of the vehicle structure during crashes and vehicle towing, to overall passenger and pedestrian safety requirements, crash management is becoming increasingly integrated with overall vehicle function – and innovation in aluminium is the catalyst for this change. Aluminium has also seen significant growth as a result of advancements in both body-in-white (BIW) and chassis applications, paving the way for the future of the automotive industry. The automotive industry continues to feel the pressure to ‘lightweight’ vehicles, largely driven by today’s CO2 requirements. The evolution of aluminium manufacturing has produced lightweight CMS solutions that not only reduce CO 2 emissions, but also exceed industry benchmarks in terms of strength and damage tolerance. While the majority of vehicles produced in high volumes maintain a steel body, aluminiumbased crash systems can be easily attached to the base of the vehicle. This offers auto manufacturers a simple solution for reducing the overall weight of the structure, without compromising its integrity or its absorption capabilities. Automotive BIW and chassis structures must also meet the high performance standards of today. Aluminium is a costeffective solution for these vehicle components, and offers exceptional weight savings along with higher strength and defined crash properties. Automotive manufacturers are increasingly producing aluminium space frame solutions and hybrid aluminium BIW structures integrating other materials, particularly among premium sector vehicles. As a result, we expect that aluminium categories will continue to see exponential growth. “As lightweighting shapes the future of the automotive industry , today’s manufacturers are considering new ways to reduce weight while improving the functionality of crash systems. Aluminium extrusions, for example, have emerged as a lightweight alternative for the manufacturing of a number of components included in the complete ‘front end’ of a vehicle,” stated M artin

6xxx series alloys (like for example the 6082) at an even lighter weight while remaining fully recyclable and corrosion free. These new alloys – together with advanced die designs that reduce and optimise wall thickness and integrate extruded sections with cast- and pressedsheet components – will provide design solutions for increased light-weighting and vehicle productivity. Continuing to advance the capabilities of automotive light metals is a primary goal of the “Advanced Light Metals Processing Research Centre” collaboration between Constellium, Brunel University and Jaguar Land Rover . As a leading innovator in automotive aluminium technology , Constellium will work with our partners in

the Centre to bridge the gap between fundamental research and industrial applications. W ork is expected to commence on the Centre in 2014, with research programmes launching in early 2015 that will enable both manufacturing and real world testing of automotive light metals. The Centre will be particularly influential as the automotive industry enters a critical new phase – the necessity to lightweight the complete body of the vehicle. Research will focus on usage and advancement of high-strength alloys, as well as the further integration of crash management into the base of the vehicle. The Centre is essential to this integration as new aluminium components will need to be created and tested beyond numerical simulation. The Centre will also look at the recyclability and sustainability of automotive light metals. Researchers will explore the increased use of process scrap and end-of -life scrap in alloy formation to minimise the use of primary metal without significant degradation in materials. Automotive sector analysts expect the use of aluminium CMS to increase in the next five years, particularly in European premium cars. As more vehicle manufacturers invest in the benefits of light metals such as aluminium, Constellium is expanding manufacturing capacity and adding prototype and development capabilities. In F ebruary 2014, the company announced the launch of new aluminium high-strength Crash M anagement Systems (CM S) technology designed for the front and the rear of a vehicle for enhanced structural protection in the event of a collision. It believes that its technology will enable the production of aluminium CMS that will be 15% lighter and 10% stronger than the current aluminium CM S on the market. Constellium’s new-generation CM S combine the properties of the 6xxx aluminium alloy family – formability , corrosion resistance, energy absorption, recyclability – with high-strength mechanical performance. Looking forward, innovations in aluminium will greatly impact the future of integrated CM S solutions for auto manufacturers. As the strength and capabilities of aluminium continue to evolve, it is crucial for vehicle manufacturers to understand the role of light metals in CMS solutions. ᔢ Aluminium International Today

A. Today two horizontal halves_Layout 4 10/03/2014 14:54 Page 1

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The future of aluminium castings in automotive manufacturing UK die-castings company JVM Castings explores the challenges and processes of manufacturing aluminium pressure components for the automotive sector..

From its base in the W est Midlands, UK, JVM Castings has been making parts for Jaguar Land Rover (JLR) for more than 50 years. The company initially began casting products for the Defender model and now produces components that are used in all areas of all JLR vehicles. Today, JVM manufactures a variety of aluminium pressure die components for JLR, which are supplied as either raw casting, finished machined, assembled, specialist heat treated or any combination of these processes; with each part having a specific process route depending on its application in the vehicle. The company’s design team are constantly tasked with developing innovations, which will be more mass efficient, more than 50% lighter, avoid the need for sub-assembly , minimise carbon footprints and reduce the amount of steel stampings required in the production process. “The industry-wide challenge we face is to constantly meet the improving quality and performance requirements of our customers, whilst also meeting the demand for increased outputs,” explains Steve Hoole, Commercial Director at JVM Castings.” “Each year we’ve developed our business to keep pace with the technological advances in the automotive world, because there’s always the threat that the UK casting industry will shrink as it’s moved to

our European competitors. “However, there is a driving desire for cars to be lighter and more recyclable, and more aluminium castings are gradually replacing the use of steel, so it represents a tremendous opportunity for aluminium casting manufacturers to dominate the market.” As castings become more complex and strategic, local sources are becoming increasingly valuable since customers don’t want excessive stocks of high-value items in transit or stock. This also means customers can save on the growing costs of shipping large castings across Europe and all over the world. “The focus in the aluminium industry now, and across engineering and manufacturing as a whole, is to increase profitability and allow for re-investments and expansion of the suppliers’ capacities,” commented Steve. JVM has been addressing these issues in several ways. Last year they joined forces with two universities to collaborate on research projects, which could see major changes in the way castings are manufactured. Working with Birmingham University and Brunel University’s research labs, as well as a number of local industrial partners including Jaguar Land Rover and JBMI, the company aims to bridge the gap between academia and real world commercialisation.

JVM’s main research project at present, in conjunction with TSB, involves research into A20X, a new material developed by Aeromet International. According to the company, A20X is the strongest commercially available cast aluminium alloy; its advantages include offering reduced weight and cost over current manufacturing alternatives in both the aerospace and automotive industries. Another TSB collaboration, currently researched by Brunel University , JVM Castings and a number of other Midlands companies, is exploring the potential of creating an alloy from recycled content. The successful completion of this research would enable JVM to use a greater percent recycled content in its castings whilst reducing the reliance on primary grade aluminium. This would significantly reduce not only the cost of production, but also the carbon footprint. Steve Hoole continued: “ As for automotive manufacturing globally, there is too much capacity and new brands such as Kia and Hyundai who are taking the market share from traditional names like Ford, Renault and P eugeot, and this will naturally put a squeeze on European brands. “However, the US are starting to buy smaller engine cars; at the moment 1.6l petrol engines are very popular, and this is helping European engine manufacturers since demand is high and it eases the challenge of lost vehicle sales. “Naturally this will increase pressure on our industry from new vehicle manufacturers offering high-spec cars and extended warranties, but in the long term, the move to alternative power cars is inevitable and obvious, which ultimately leads us back to the need to use more aluminium in cars. “By making these advances now, we can take significant steps towards futureproofing our industry.” ᔢ Contact www.jvmcastings.com

March/April 2014

Aluminium International Today

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Shop floor station of a Diamond cold mill.

Addressing market requirements for aluminium flat products With the increasing global demand for automotive, aerospace, and can stock products, Sean Carter* and Detlef Neumann** highlight the latest developments in rolling technology and strip processing. In order to compete successfully in the world’s competitive markets for aluminium plate, strip/sheet and foil, merely meeting the standard requirements for plant design is insufficient. The successful plant concepts must define new market standards, now and in the future. This is true for aluminium rolling plants as well as cutting lines for aluminium flat products. In fact, it is particularly important when considering developments in the processing industry, where the demands for increased production levels, larger coil densities, thinner finished products and increased material quality have to be taken into consideration. Market consideration

Generally, there are some distinctions to be made about the worldwide market for technology to produce downstream aluminium products, for example rolled products. In Europe and North America, the investments that may be expected in the near to mid future will aim to maintain and extend the producers’ efficiency , quality and service, but without significant expansion into new capacities. At the same time, realising maximum return on investment (ROI) for the existing assets will be expected. The well-established producers will concentrate on: • Process and yield increase. • Relocation of facilities and/or consolidating production capacities at central points. • Investing in modernisations and revamps to maximise current potential, as

well as to increase coil density, processing speeds and product quality. • Improving finished strip quality. • Concentrating on high-end products, such as foil, lithography, etc. • Improving customer service (reduced lead times, just-in-time production, etc.) • Developing new, high-value niche products such as clad material, sub 6-µm foil, bright finished stock, etc. • Developing new uses for aluminium rolled products. These measures will be increasingly important when considering the competition that comes from the large new investments and production capacity currently being implemented in Asia, and also in parts of South America and Russia. In the near future, Asia will emerge as the world's dominant market for aluminium flat rolled products and Asian producers will try to supply traditional markets that are still dominated by European and American suppliers. Here, quality and quantity , as well as delivery lead-time, will be the decisive issues for purchasers of rolled materials. Technology & market trends

In general, the aluminium rolling market should be considered as three broad sectors for finished flat products, and the production equipment for the rolled material: • Hot rolling: Plates, sheet and coiled feedstock for cold and foil rolling; • Cold rolling: Sheet for automotive, aerospace, can stock, lithographic, foil feedstock and general applications; • Foil rolling: Foil for food, cosmetics,

tobacco and pharmaceutical packaging; technical applications such as heat exchangers and cable wrap; household applications. The majority of aluminium sheet products rolled today are produced on 4high single-stand mills that, in many cases, produce a quality product that meets enduser requirements. However , such conventional mills are approaching or have reached the technical limits of the latest market requirements. Among these requirements are: • Increasing coil dimensions, including strip widths that range from less than 1 to 2.8m or greater. • Achieving excellent levels of strip quality, including flatness, thickness, surface finish, dryness, coil build-up, etc. across an increasingly wider range of products, with rolling speeds up to 1,800 mpm. • Wider range for entry-to-exit thicknesses, typically from 10 to less than 1mm. • Ability to handle and roll coil weights up to or greater than 35t, with no compromise in rolling dimensionally smaller coils. • A larger range for rolling loads, including the ability to produce hard alloys, or Electrical Discharge Texturing (EDT), and skin-passes on a single stand. • Greater operational efficiency by reduction in coil-to-coil times and mill stop-time. • Greater production flexibility by accommodating a wide mill control range, thus having the ability to react to future market demands for new strip

*Executive Sales Manager, Aluminium Rolling Mills, Danieli Fröhling **Sales Director, Danieli Fröhling Aluminium International Today

March/April 2014

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Danieli Fröhling CNC slitting shear

products or requirements i.e. a ‘future proof’ mill. • Environmental considerations such as electrical power efficiency and fume recovery with coolant re-generation. • Improved working environment and practices for mill operators. Some existing cold mills can be modernised to include some of the requirements listed above, and a new 4high single-stand cold mill of an advanced design may exactly meet the specific market and commercial requirements of a client. An example of the latter is the case of the Danieli Fröhling “4-high Diamond Mill” supplied to Nikkei Siam Aluminium (NSA), Thailand to roll primarily fin-stock material. However, the majority of these recent market requirements require an advanced 6-high mill stand solution, either as a single stand or tandem mill configuration. The Danieli F röhling “6-high Diamond M ill” in a single-stand configuration supplied to Aleris Europe is the latest generation of state-of-the-art cold rolling mills, and is designed from its inception to

March/April 2014

meet current and future market requirements. Modern slitting & trimming technology

As the requirements for “totally” flat material with tight tolerances exists not only for finished rolled material but also for the slit strip, development of even more precise and rigid slitting machines is of highest importance. Shearing stresses have a great influence on the subsequent workability of the strip. Single strips may curl or even jump out of the stamping die if stresses induced during slitting are too high. Width deviations may result in imperfect shapes due to the very narrow trim web at the edge of the strip before pressing. With highly accurate adjustment devices, modern slitting shears provide the best chance for precise and repeatable knife shaft adjustment. It can be seen that the slitting shear must be able to be adjusted as closely as possible to certain parameters (immersion and cutting gap) according to the material conditions, this being essential for thinner strip gauges in particular.

Product services and support

The engineering services provided with a new project, as well as ongoing technical support are vital to any organisation. These offerings may range from training and process studies right through to major FSTK projects. It is evident that the end-users of highend aluminium products - in particular in the automotive, beverage and aerospace markets - are continuously innovating to maintain their competiveness, develop new products, and increase their efficiency and added value. Consequently, rolling and processing companies must respond to these developments and implement similar concepts that encompass efficient production of high quality finished products. The result of these market and product advances requires companies to react and supply advanced high quality equipment and process solutions that meet these evolving challenges by reacting to market requirements, and providing a full range of enhanced solutions for the future. ᔢ

Aluminium International Today

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Case study: High-bay and automated intralogistics system speeds up production for Aleris Aleris International, Inc. plans to boost production capacity in Duffel, Belgium with a new Sexto mill. Vollert Anlagenbau from Weinsberg will provide a fully -automated intralogistics system with high-bay warehouse. Up to 32 coils with a maximum unit weight of 25 tons are moved in and out of the warehouse each hour . Aleris is expanding its production in response to the increased demand for alloy metals in the automotive industries. The facility in Duffel is one of Europe’s largest aluminium rolling plants and specialises in manufacturing sheets and coils made from aluminium. Since the high-bay warehouse for this facility will be the first of its kind for Aleris in Europe, the company turned to Vollert Anlagenbau, which has been providing intralogistics systems to the aluminium industry for many years. As engineers developed a customised solution, they were faced with different challenges: Heavy loads, fast turnaround times, and automated transport of coils with and without a reel. The system also had to be designed to handle a wide range of coil diameters, which continually change throughout the milling process. 25 tons on a single arm

The new high-bay warehouse, which is 26m tall, 11m wide and 88m long, functions as a temporary storage area that can accommodate up to seven coils on top of each other as they pass through the milling phases. W eighing in at up to 25 tons each, the coils are lifted and transported on the outer surface at a

makes internal transport very flexible,” explains Lars Strobel, project manager at Vollert. The high-bay warehouse has direct access to a continuous annealing line with a pre-treatment facility (CALP). The coils are transferred by four coil lift trucks. Coil manipulator

A custom-built manipulator from V ollert with slewing, hoisting, running gear and a 19.5m span width unloads arriving lorries. The manipulator then performs all of the following steps automatically . T ransport takes place across three axes at 1m/s with a hoisting speed of 0.5m/s. The gripper picks up the ‘eye’ of the coils at the balanced centre point via an automatic measuring system and transports them to the high-bay warehouse, a separate buffer warehouse, or directly to the Sexto mill as required. The manipulator also serves an oven. After being treated, the hot aluminium coils (which can reach temperatures of 500°C) return to the high-bay warehouse to cool down. All internal transport takes place fully automatically, with no manual intervention required. Vollert Aleris HRL The system was delivered to Aleris in the speed of 2.5m per second by a rack feeder third quarter of 2012. The plants have been working to full productivity since the with a single telescopic arm. “The coil diameters change continuously beginning of 2013 and the official opening of the plant took place in March 2013. ᔢ during milling, which is why the outer surface is the only part of a coil that remains balanced, and can therefore be used for transport, regardless of how large Contact or small the coil is. It is also possible to Vollert Anlagenbau handle coils with or without a reel, which www.vollert.de Manipulator

Vollert Aleris Coilhubwagen

Aluminium International Today

March/April 2014

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Preventing disruption in an aluminium rolling plant When leading Indian Aluminium producer Hindalco had ongoing problems with an existing combined reduction pinion stand gearbox, global gear engineering company David Brown stepped in to put a stop to the continued disruption and get the plant back to full process availability. By Mark Hollingworth* Typically used in the secondary processing of aluminium, the traditional combined reduction pinion stand is a gearbox, which connects the input from the electric motor driving the mill. It reduces the speed of the input to rolling mill speed and increases the torque before splitting it between the two output shafts connected to the mill rolls. The plant, located in India, had a history of problems with the combined reduction pinion stand gearbox. Previously, two other gearboxes had been used – both from different suppliers – and each one had suffered failures and problems with reliability. Gearbox failure is unwelcome in any industry, but in aluminium processing the cost of downtime and process disruption often exceeds the cost of repairing or even replacing the gearbox. David Brown’s engineers stepped in to analyse the original gearbox as well as the rolling mill to ascertain why the failure rates were so high. It was found that the original gearboxes had been designed based on the nominal capacity of the two 800kW motors, however the actual power generated by the motors during the rolling process was far higher and was exceeding the original design parameters of the gearbox. The customer recognised that a much more substantial gearbox was required and worked with David Brown to develop a specification which would give suitable working safety factors based on the actual

power required, rather than that originally calculated. This called for a design based on a service factor of six rather than the original specification of three, thus doubling the capacity of the original unit. The new gearbox had to be installed during a limited shut down period so it was essential that the new unit was a drop in replacement for the existing unit, fitting to the same foundation positions and with

the same shaft interfaces as the original design. A further complication occurred when the customer decided that they would like to switch to an independent drives concept, with two motors controlled separately. This entailed designing a new layout within the gearcase, removing the original gearing connecting the two output shafts and effectively fitting two independent gearboxes within one gearcase.

David Brown was able to design a replacement that met all of the above criteria, not only fitting into the space envelope, but also giving twice the capacity of the original unit. The replacement gearbox also enabled independent drives, allowing greater control of the rolling process. The development in gear technology has made improvements in the capacity of large gearboxes possible without compromising safety and reliability . The main advances relate to the following areas: 1. Gear materials and heat treatment: Improvements in the quality of available steel combined with carburising and hardening of the gears allows a significant increase in the wear and bending strength of the gear teeth. This allows increased load carrying capacity without compromising gear life. 2. Design M odelling: M odern CAD technology allows Finite Element Analysis (FEA) of the gear teeth and supporting structure of the case and bearings under load. This enables the designer to ‘correct’ the form of the gear teeth to ensure optimum tooth contact, whilst taking into account the deflections of the gears and casing under load. These corrections (which are only ever a few microns) ensure that when the gears are in contact at high load, the stress distributions are optimised and the risk of fatigue failure reduced.

*Director of mining and industrial applications, David Brown March/April 2014

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ROLLING 39

W E

C O N V E Y

Q U A L I T Y

DeďŹ ned Cooling of Hot Bath Material

Additionally, the optimisation process reduces gear noise under load. 3. Accurate gear manufacturing: M odern machine tool technology enables the economical production of gears to extremely high accuracies. Now , gears are manufactured to standards, which allow for an error of only a few microns between adjacent teeth. This accuracy allows for very smooth transfer of the load from one tooth to the next with minimum transmission error â&#x20AC;&#x201C; this enhances the fatigue life of the gear teeth. The reduction in transmission error also reduces the level of noise and vibration under load, which leads to a much smoother running gearbox. Of course the manufacturing facility also needs the ability to measure to the level of accuracy required in order to verify the tooth accuracy and that the design intent of the gear corrections has been correctly reproduced on the gear teeth. David Brownâ&#x20AC;&#x2122;s manufacturing facilities are equipped with modern grinding machines which allow for measurement of the gear on the grinding machine during the manufacturing process, but also have the facility to independently check this accuracy on dedicated computer controlled gear measuring machines. 4. Flexibility of design approach combined with gear engineering expertise: Modern technology is worthless without experienced designers, machine operators and assembly fitters. In the case of Hindalcoâ&#x20AC;&#x2122;s gearbox, David Brownâ&#x20AC;&#x2122;s Lead Engineer used his years of design experience to arrive at a solution that met the customerâ&#x20AC;&#x2122;s needs without compromise. M ark Hollingworth, director of mining and industrial applications explains: â&#x20AC;&#x153;When the customer approached David Brown to replace their gearbox, hundreds of hours of valuable production time had already been lost due to an incorrectly specified unit. We see many similar cases each year in rolling mill applications, where increasing demands on production lead to a requirement for significant capacity increases, even from existing plants. Developments in gearbox technology mean that the gearbox does not need to be the limiting factor when upgrading the rolling process. A flexible design approach coupled with these improvements often mean it is possible to provide this upgraded capacity in a â&#x20AC;&#x2DC;drop in solutionâ&#x20AC;&#x2122; which allows the user to carry out the upgrade during a limited shutdown period. â&#x20AC;&#x153;This particular gearbox has now been operational for more than five years without problems and has enabled the customer to continuously achieve high throughputs without risk of unplanned down time.â&#x20AC;? á&#x201D;˘ Contact www.davidbrown.com

Aluminium International Today

March/April 2014

For the Primary Aluminium Smelting Process s #OOLING FROM Â˛# DOWN TO BELOW Â˛# s 2EDUCTION OF (& EMISSION s #LEAN AND ENVIRONMENTALLY SAFE CONVEYING AND COOLING

AUMUND Foerdertechnik GmbH 3AALHOFFER 3TR s 2HEINBERG s 'ERMANY METALLURGY AUMUND DE q WWW AUMUND COM

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Compensating coil build-up to improve flatness after unwinding By Lourival Salles de Almeida Neto* while its last pass on the mill had flatness on target. Sometimes it is even possible to see buckles just after the gap, but the flatness screen keeps showing flatness on target. When the maintenance team was called to check the mill and flatness measuring roll, no misbehaviour was found. During rolling, when a tight centre started to appear , flatness actuators released it until flatness was again on target. However, as coiling kept going on, the tight centre fibres reappeared because of the convex strip profile. With the centre area again too tight due to coil build up, the flatness actuators were commanded to put the strip back to target, increasing centre buckles just after the gap. This cycle was repeated until the end of rolling.

While cold rolling, overlaps of material with a convex profile at the recoiler cause greater tension in the strip centre fibres than in fibres of the edges [1], which is known as coil build-up. Even if the gap bite does not create any flatness disturbance, the measuring zones in the centre of the coil will still measure increasing stress due to coil build up and the flatness controllers will react to it. The question is if the flatness actuators will react to a disturbance created after rolling. Decreasing the tightness of the centre area means that flatness controllers are searching for a bite profile that can lead to buckles. Such a profile will not match the profile of the incoming material as the flatness error is being generated at the recoiler. Therefore, from this point on, the gap is generating a flatness disturbance. The difficulty when understanding this situation is that the amount of tension release (read buckles) created by the flatness actuators, is exactly the amount of tightness created by the coil build up. The flatness measuring roll placed between the gap and recoiler only feels the resultant forces, sending the operator information that flatness is on target.

There was nothing wrong with the flatness measurement device. It simply could not distinguish if a zone was tight due to rolling or due to coil build up. The material was coiled with increasing online centre buckles but not seen on the flatness screen because of the coil build up stress.

Offline centre buckles when rolling was “Perfect”

A compensator to reduce build-up to the coiling process only

It is not seldom for aluminium final products of around 1mm thickness to have heavy centre buckles on the slitter line

Unwind direction

Decoiler

region “b”

Recoiler

region “a”

Start

Conclusions

A build-up compensator was elaborated under the premise that releasing the tightness at the centre area due to coil

build up during rolling creates centre buckles, which will increase centre buckles after coil unwinding. Before the measured flatness tensions are sent to the flatness controller, they are reduced by the amount of stress caused by the coil build up. Doing so, the cause of centre buckles after unwind will be reduced to the coiling process only. The amount of stress reduction applied by the compensation must be near or exactly the increment of stress the coilbuild-up causes. Therefore, tuning the compensator is done at the mill with the results of the observation of the coils during the unwinding process at the slitters. Coils with manifested build-up after unwinding have the characteristic shown in Fig 1. Although the increment on hoop stress is present since the first winding, the coils don’t present centre buckles on their complete length when observed at the slitting line[2]. Observations revealed that although the hoop stress increases as the coils build up, the off -line centre buckles have almost the same width along most of the strip length – region “a” in Fig 1 . Then, it starts covering fewer surfaces as showed by region “b”. Looking at the decoiler diameter at the slitter, the start and end of regions “a” and “b” as well as the width of the buckles, slightly vary from plant to plant, showing the necessity of local tuning.

Maximum wideness [measuring zones]

Remaining decoiler diameter [mm] 1200 1000 920

725

8 0,6

1,2

0,6

Profile [%]

1,2 Profile [%]

Buckles spread starts decreasing Buckles not measurable anymore

Fig 1 Center buckles characteristic at slitter line - post rolling.

Fig 2 Determination of start point of compensation at slitter line.

Fig 3 Maximum wideness depending on material profile.

*Automation systems engineer, Achenbach Buschhütten, Germany. Aluminium International Today

March/April 2014

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No compensation

Centre buckles [I-Units]

Centre buckles reduction [%]

0,71 mm 2,00 mm

14,5 69,5

11,1

3,7

Centre buckles [I-Units] 34

With compensation

27,2 14

Thickness [mm] 0,71 2,0

7,8

2,2 50

100

14 25 Recoiler tension [N/mm2]

Amplitude [%]

Fig 4 Same compensation amplitude for different thickness.

Fig 5 Same thickness test - thin and thick material have opposite behaviour.

Fig 6 Compensation and reduced recoiler tension.

The compensation is designed to actuate around the strip centre line, with wideness varying from a minimum to a maximum width at the rolling/slitting plant. The amplitude of the generated compensation curve continually increases with the diameter, until the end of rolling, as the coil build up never stops. The parameters to be determined on site are when the compensation should start actuating and how wide it must be. The compensation actuates without any information about the recoiler tension because, normally, production lines have difficulties changing production parameters without guaranteeing a new practice will improve the situation. During the commissioning of several aluminium cold rolling mills, with possibilities to follow the coils to the slitters and measure their profiles, it was observed that the buckles width expansion and point of start vary with material profile. Therefore, the profile of the coil must be available during the preset of the mill. Figs 2 and 3 show typical variations of these parameters with linear approximation. The wideness of the centre buckles increases with the profile. Fig 3 suggests that if profile is 0%, there will be no buildup compensation as the wideness is zero. The maximum amplitude of the compensation curve is defined by percentage of the amplitude of the flatness reference curve, so the compensation benefits from the customer rolling experience. The efficiency of the compensator can easily be performed without disturbing the normal production as described [3], by using the concept of base coil.

coils using the compensator presented better offline flatness when compared to the base coil. To observe the effect of the amplitude of the compensation curve and how wide its action would be, tests were performed combining increasing, decreasing and constant compensation curves with increasing, decreasing and constant wideness of compensation action. Material profiles tested were 0.65%; 0.84%; 0.85%; 0.89%; 0.93%; 0.95% and 0.98%, with width ranging from 2000mm to 2180mm, all coming from continuous casters. The results suggested the maximum amplitude would increase with thickness (Fig 4). Also, the best results are achieved when the compensation curve amplitude increases during rolling. Within the same thickness, more amplitude doesnâ&#x20AC;&#x2122;t necessarily mean a better result. Thin material has an opposite behaviour compared to thick materials (Fig 5). The off -line centre buckles problem increases as thickness decreases. W ithin the range tested, 2.0mm strips had almost no detectable centre buckles at the slitter when the decoiler diameter was 1400mm or less, using low recoiler tension.

automation system of the mill were always present during the off -line analysis. It is interesting to register that having a better carpet doesnâ&#x20AC;&#x2122;t mean better offline flatness. During tests, on strips with profiles smaller than 0.89%, the behaviour was mostly the opposite.

Case study: Achenbach aluminium cold rolling mill

A comprehensive test was performed with a non-reversing four high Achenbach cold rolling mill. Seven batches of tests were done totalising 24 coils with thickness ranging between 0.7 and 2.0mm. The compensator was only applied during the last pass before the slitter . All March/April 2014

The recoiler tension observation

The common recommendation from coiling process studies to reduce offline buckles is to roll with reduced recoiler tension. Therefore, a test was performed: From the same batch, two coils were rolled with recoiler tension at 14N/mm2 and two at 23N/mm 2. On each coil pairs with the same tension, one was rolled without compensation to serve as base coil. Results showed at Fig 6. The test proved that the recommendation of rolling with reduced recoiler tension is correct and has a great impact on off-line flatness. But using the compensator developed, the result was even better. The flatness carpet observation

The flatness carpets issued by the

Final words

The coil build up compensation developed (integrated to the Achenbach Optiroll automation system) improves the off-line flatness of aluminium strips using minimum efforts from the production team. The best combination, however , is the use of the coil build-up compensation with the smallest possible profiles and recoiler tensions. The flatness carpet observation suggests breaking a paradigm: Perhaps we have to accept rolling with a not so good online flatness, in order to have the desired off line flatness. References [1] D.T. Oliver, Off -Line Flatness Problems in Aluminium Strips (1st International Conference on M odelling of M etal Rolling Processes, London, UK, 1993) 518-524. [2] Neto, L. S. d. A . and Ayhan, T. (2011) Coil Build Up Compensation during Cold Rolling to Improve Off-line Flatness, in Light Metals 2011 (ed S. J. Lindsay), John W iley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118061 992.ch109 [3] J. M ignon, C. Counhaye, H. Uijtdebroeks and C. Stolz, Improvement of Coil Flatness During Unwinding (The Control of Profile and Flatness, Birmingham, UK, 1996) 241-249. [4] M . Falk, Fiction and Reality of Aluminum Strip Tolerances (Aluminium, Issue 74, Kreuztal, Germany, October 1998) 731-738. [5] D.B. M iller and D. Nardini, Prediction of Plastic Strain During Coiling of Sheet (Alcan International Limited, Banbury Laboratory , Southam Road, Banbury , Oxon., U.K., O X16 7SP, 1996) Contact www.achenbach.de

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44 LUBRICATION

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Grease for high temperature operations Choosing the right grease can play an essential role in helping to protect equipment and ensuring a trouble-free operation. However, in selecting a grease which will help to maximise equipment protection and increase productivity, it is vital to not only consider the quality and performance of a product, but also the requirements and challenges of the specific application. By Umut Urkun* Operations that function at extreme temperatures and under intense pressure pose a number of lubrication challenges, which can only be met by technology that is specifically designed to meet such requirements. F actors such as base oil type, viscosity, thickener type, stability of the composition and operating temperature must all be considered in order to ensure that the most appropriate grease is selected. Grease formulation

It is important for maintenance professionals to understand how greases are formulated in order to ensure that they select a grease which will deliver the performance required to protect their equipment in the long term. A simple way to think of grease is to consider it like a sponge soaked with lubricating oil. Upon application of external stresses, such as heavy loads or high temperatures, the thickener (sponge) releases the oil to lubricate the mechanical parts. When the stress is removed, the

thickener re-absorbs a portion of the released oil for later use. Typically, greases are applied to mechanisms in which a lubricant cannot stay in position, or re-lubrication is infrequent, difficult, or simply not economical. A few examples include drive shaft couplings, universal joints and fan shaft bearings. High temperature operations

In extreme temperature applications, there is a risk that a grease will perform poorly due to degradation resulting from thickener and base oil oxidation, or due to the loss of base oil from grease bleed and evaporation. One of the driving factors that can limit the ability of a grease to provide lubrication at higher temperatures is proper viscosity and oxidative resistance. Oxidation is a chemical reaction that occurs between oxygen and the in-service lubricant, and is accelerated in high temperatures. A grease’s oxidation rate generally doubles with every 15°C rise in temperature above 60°C. This rule-of thumb varies, based on the type of thickener used in the grease, and for soap thickeners, the amount of metal contained in the structure (lithium, calcium, aluminium, etc). Typically, greases with synthetic base oils can provide a wider operating temperature range than conventional, mineralbased greases. F or example, the M obil SHC Polyrex Series is a range of high performance, synthetic bearing greases that uses advanced polyurea thickener technology in order to achieve excellent high temperature performance up to 170°C. Even at these extreme temperatures, the polyurea thickener technology resists oxidation and loss of structural stability allowing re-

lubrication intervals to be extended while maintaining equipment protection when compared to competitor mineral oils. This carefully balanced combination of thickener, base oils, and additives yields a grease with excellent load carrying capabilities and rust protection. Case study

One company to benefit from the use of advanced greases in a high temperature environment is an aluminium plant in Germany. To protect wheel bearings, the plant had been using a grease with a base oil viscosity of 100cSt and had been experiencing routine bearing failures and significant mechanical wear and tear due to lubricant degradation as a result of excessive heat. In addition, the plant was also incurring high lubricant costs. A team of ExxonMobil technical experts were asked by the plant’s maintenance team to help provide a comprehensive analysis of the plant’s operations and equipment maintenance practices to help address the issues. F ollowing the audit, the ExxonM obil team made specific recommendations to convert the lubricant protecting the wheel bearings to M obil SHC P olyrex 462, in addition to implementing a best practice programme to help increase re-greasing intervals. The higher base oil viscosity offered by M obil SHC P olyrex 462 provided the machinery with improved levels of protection, resulting in a reduction in component damage. The introduction of M obil SHC P olyrex led to an overall improvement in performance and resulted in an annual saving of approximately €39,000. With ongoing developments in machinery to increase output, and the high ambient temperatures of many industrial sectors, lubricants that can operate effectively in extreme conditions will enable companies to build a competitive advantage into their operations by reducing downtime and increasing productivity. ᔢ Contact www.mobilindustrial.com

*Industrial Marketing, EAME, ExxonMobil Lubricants & Specialties March/April 2014

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Located on the shores of the St. Lawrence River in Québec, Aluminerie de Bécancour is an aluminium smelter that produces 400,000 metric tons of aluminium annually in the form of rolling ingots, T ingots (pure and alloyed), and billets. The ISO: 2000 and 14001 certified Aluminerie de Bécancour smelter , which is part of Alcoa Canada Primary Metals (ACPM), has been up and running since 1986. Running most of the time, that is. Once or twice a day, production was interrupted by pieces of metal falling onto the line during a crushing process. T o detect this ‘felted debris,’ Aluminerie de Bécancour recently installed a BOA integrated vision system from Teledyne DALSA. The BOA has reduced production downtime and damage caused to equipment on the line.

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Reducing line downtime

A crushing problem

Smelting is an electrolytic reduction process that transforms the white powdery material - called “alumina”- that is produced from bauxite into aluminium. Alumina is dissolved in a cryolite bath inside large, carbon-lined cells called pots. When a powerful electric current is passed through the bath, aluminium metal separates from the chemical solution and is siphoned off. After 21 days, the anode through which the current enters the pot reaches the end of its life. A crusher removes the used carbon attached to the anode frame. As crushing occurs, steel parts from the anode’s frame can fall on the conveyor and eventually damage equipment further down the process line. This can lead to costly equipment repair and replacement as well as production downtime. Engineers at Aluminerie de Bécancour considered various ways to address this problem. Photoelectric sensors were considered but ultimately rejected because of the quantity of sensors that would be needed to perform the inspection. Due to product variations, machine vision was determined to be the simplest solution to the problem. W orking with Groupe Rotalec, a distributor of high technology industrial automation products, product identification systems, and mill products for more than 30 years, Aluminerie de Bécancour engineers selected a T eledyne DALSA B OA 640x480 monochrome camera. The big picture

The B OA is a fully integrated compact machine vision system, designed for industry enclosure. Contained entirely within a tiny (44 x 44 x 44mm) industrial IP67 housing, the B OA is packaged complete with application software, which contains a library of tools and functions that can be readily applied to a range of manufacturing tasks. The software is March/April 2014

BOAs and lighting Aluminerie de Bécancour.

This article looks at a system designed to reduce production downtime caused by ‘felted debris’. embedded within the device and is set up through an intuitive web browser interface. At Aluminerie de Bécancour , every product is inspected by comparing three images. One B OA detects the anode’s frame geometry before the anode gets crushed. Using the same configuration, another camera detects the anode’s frame geometry after crushing. A “fail” occurs if one of the three images indicates that the geometry changed during crushing. According to engineers at Group Rotalec, one advantage of using the BOAs is the ease with which they and other operators can programme and reprogramme the application. “Because the process is pretty slow at only two-parts per minute, we were triggering every 100ms, waiting for the perfect positions to apply the analysis tools,” said Alexandre Dargis, Ing. Jr, Vision Application Engineer at Groupe Rotalec. “We overwrite all of our tool’s results using the B OA software’s custom scripting functionality. This scripting functionality allows us to write the communication I/Os whenever the picture is the one we’re looking for.” Since much of the equipment on the line is original to the plant, there was no way to communicate through Ethernet. As a result, Groupe Rotalec used digital outputs from the expansion I/O breakout board (8

inputs & 10 outputs) to communicate with the PLC. Rush delivery

Another advantage of using the B OA in this application was T eledyne DALSA ’s ability to deliver product quickly. “This was a rush job for us: We had two weeks to complete the entire project, from sizing to installation, due to non-standard parts coming into our system, “said Dargis. “All of our requested products were in stock at Teledyne DALSA’s plant, including camera, lens, cable, expended I/O breakout board, and IP67 accessories.” Dargis attributes the success of the BOA in this application primarily to T eledyne DALSA’s rapid response in delivering the product, the scripting portion of the BOA, and the availability of the appropriate BOA hardware. “The B OA is a simple and effective camera that meets Aluminerie de Bécancour’s inspection requirements,” Dargis said. Since the BOA solution was installed at Aluminerie de Bécancour in November 2011, the company has experienced no downtime as a result of falling debris, and engineers are currently reviewing additional areas that would benefit from BOA vision system installations. ᔢ Contact www.teledynedalsa.com

Aluminium International Today

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48 ANALYSIS & TESTING

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Thermal imaging in metal processing Here, the benefits of thermal imaging technology in aluminium production are explored.

Thermal imaging can offer many benefits in metal production and processing. M odels are available that allow the technology to optimise processes, assure quality, maintain plant equipment and also to check the fabric of the building to prevent energy loss. Fundamentally there are now two types of thermal imaging camera. The fixed mounted systems are primarily designed for process control and safety applications and the portable models have all the features necessary for fast and efficient preventative maintenance. Process control and safety

Important design developments in recent years have enhanced the practical application of thermal imaging in process control. Fixed mounted models are now discrete enough to fit easily onto any production line. They are smarter too. Camera design now incorporates protocols such as GeniCAM and GigEVision that make network installation quick and easy . And naturally these models can also be set up to trigger other processes or alarms if thermal irregularity is detected. Thermal imaging adds a new dimension to machine vision and is a good idea for applications involving non-contact precision temperature measurement and non-destructive testing. It helps to increase product quality and validate processes, enhancing competitive edge and profitability. One advantage is that infrared vision requires no additional light to illuminate the scene. For traditional vision systems, external light is a pre-requisite and adds to the overall cost. Furthermore, establishing

the correct lighting conditions can be time-consuming and the end result is generally temperamental. Infrared vision brings many other benefits too. In addition to being a highly cost effective method of automating process control and quality assurance, it is an invaluable tool for safety monitoring. It acts as an early warning system, seeing any abnormal rise in temperature in the process before any fire breaks out. In industries where combustible material is stored, this ability is particularly beneficial. Thermal imaging is also ideal for spotting spontaneous fires and cameras can additionally be employed for security and surveillance tasks. While smoke and steam can significantly impair the efficiency of traditional vision cameras, thermal imaging is immune to these factors. Minimising energy loss

Cutting carbon emissions and minimising energy loss go hand in hand. The optimal choice of motors and boilers, the installation of process heat recovery systems and energy saving lighting are all playing their part. The industry is taking a much more pro-active approach to plant maintenance not only to minimise production losses but also to ensure systems are as energy efficient as possible. Portable thermal imaging is appropriate to all these initiatives. It is now the industry standard method of identifying electro-mechanical faults before they cause failure and one example of how this is benefiting aluminium production comes from India. The technology is used for inspecting all electro-mechanical plant and systems,

furnace ducts, heating chambers and tanks and also for monitoring scale buildup in pipes and vessels. Any problems are then scheduled for repair during maintenance shutdowns. In this way faults are corrected before they have the opportunity to become costly failures and the cause of lost production. Detecting faults

For this reason, a leading industry body in India is an enthusiastic proponent of thermal imaging. The Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC) uses a FLIR P Series camera to help its customers – Indian aluminium producers – to achieve reliable and cost-effective production. The FLIR P660 chosen by the Centre includes a range of features for advanced thermal imaging and analysis. Thanks to its <30mK sensitivity and temperature measurement accuracy of ±1%, this model is able to detect the smallest thermal anomalies. Whilst low-end thermal imaging cameras typically provide 6,400 infrared measurement points, this camera increases this capability to 307,200 from a 640 x 480 pixels detector. The larger the detector, the greater the image quality and this also allows the camera user to see thermal details over a distance. These factors make the technology a particularly good choice for inspecting hard to access areas and also those which pose a personal safety risk. Software features such as radiometric image stitching extend inspection efficiency even more. JNARDDC confirms that initially the aluminium producers were hesitant about using the technology but soon recognised its benefits, the principle one being that it is optimally used when systems are fully operational. Electro-mechanical problems can be seen without any loss of production and as a result many manufacturers have proactively adopted a predictive maintenance programme with thermal imaging as a key element. ᔢ Contact www.newriver.co.uk

March/April 2014

Aluminium International Today

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ANODE RODDING CONFERENCE 49

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Event preview: Registration open for 6th International Conference on Electrodes for Primary Aluminium Smelters The 6th conference in the series will be held on 13th – 15th May 2014 in Reykjavík, Iceland. As before, the conference will focus on anodes and cathodes. Emphasis will be on environmental issues, increasing productivity and future prospects in the aluminium industry. The event will take place in the Hilton Nordica Hotel Reykjavík, on the ground floor and will be open from 7:30 - 18:00 each day of the conference. The conference programme is still subject to change, but the current version can be seen here: Tuesday 13th May 2014 08:30 - Opening Ceremony Keynote Presentation Barry Welch Does the design and production of carbonaceous electrodes match 21st century requirements for the aluminium smelting industry? 10:50 - Session 1 Modern Rodding Plants

Wednesday 14th May 2014 08:30 - Session 3 Anodes and Cathodes – Optimal Assembly

08:30 - Session 6

Ghazanfar Abbas, SGL Carbon: SGL In-situ Measurement System - Lancelot

Pétur Blöndal, Samál: Icelandic Aluminium Industry in context.

Einar Rögnvaldsson, VHE: Rodding Plant Brownfield Projects – Plans and Reality

Speaker and title to be announced

Speaker from Nordural: New Rodding Plant at Nordural.

Edo Engel, Danieli Corus: On the reduction of hydrocarbon emissions from modern anode baking furnaces and paste plants

Ingólfur Kristjánsson, RTA Iceland: Updating ISAL Anode Rodding Plant

Italo Dal Porto, HMR Hydeq: HMRs automated stud repair line.

Barry Woodrow, Gauti Stefánsson, VHE: In-line Measurement of Clad and Stub Voltage Drop

10:30 - Session 4 Cathode Repair

13:30 - Session 2 Anode Butts and Rods Transportation, Cleaning and Recycling Speaker from Qatalum: Hot bath cleaning process – Advantages and disadvantages of Hot Butt Recycling. Speaker from Nordural: Changes in sub-size at Nordural. Einar Odd Frosta, Hydro Årdal: Anode Cover Material (ACM) – Impact on Anodes Gerrit Hiddink, Hencon BV: AGV Anode butt/bath transport and automation.

Thursday 15th May 2014

Navin Indraj, Qatalum: Effective Relining and Operation Procedures for Induction Furnaces. Rene Von Kaenel, Jacques Antille and Louis Bugnion, KAN-NAK: Latest achievements in Energy savings by using New Cathode designs. Speaker from Fives Solios: Bath crushing material Peter Varga, Ivan Measaros, Peter Janciga, Slovalco: Anode tracking system at Slovalco. 13:00 - Session 5 Increasing Productivity – Decreasing Impact on Environment Speaker from Qatalum: Waste management and Minimisation in Carbon Plant.

Industry Trends

Speaker and title to be announced

A table space will also be available for companies to exhibit their literature and/or give video presentations in the foyer area. For more information and to book a tabletop stand, please contact: Anne Considine Area Sales Manager T: +44 (0)177 855139 E: anneconsidine@quartzltd.com Paul Rossage International Sales Manager T: +44 (0)1737 855116 E: paulrossage@quartzltd.com

PNK Raghavan and NK Kshatriya, Vedanta Aluminium and power: Recovery of Fluoride Value from Spent Pot Lining.

For more information or to register, contact Birgir Jóhannesson Email: birgirj@nmi.is Telephone: +354 522-9174 Or visit www.rodding-conference.is

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50 TMS

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TMS 2014 takes San Diego by storm Aluminium International Today was in attendance. M ore than 4,000 business leaders, engineers, scientists and other professionals in the minerals, metals and materials fields attended the 143rd TMS Annual Meeting & Exhibition in San Diego, California on 16th – 20th February 2014. The TM S 2014 Annual M eeting presented nearly 70 symposia covering a broad range of topics related to materials science and engineering. Conference

The Aluminium Keynote Session focussed on the aluminium industry supply chain and how it will move on to the next ‘S curve’.

Over several decades, research and development within the aluminium industry has been constrained by factors such as cost cutting and ‘rationalisation’ following company mergers and take-overs. Speakers from Alcoa, Hydro Aluminium and Rio Tinto, explored this topic from the perspective of smelting and alumina production, looked at the role of external research projects as well as the innovation in the North American industry , and examined innovation in the broader mining industry. Exhibition

Now in its 28th year , the TM S Annual

Meeting Exhibit is one of the top global showcases for the latest in products and services designed specifically for the markets. Aluminium International Today exhibited alongside companies such as Emirates Global Aluminium, Fives Solios, Thorpe Technologies, Hencon B V and Claudius Peters. TMS 2015

The 144th TM S Annual M eeting & Exhibition will be held in the Swan and Dolphin Hotel, Orlando, Florida on 15th – 19th M arch 2015. Find out more here: www.tms.org ᔢ

ALUMINIUM 2014 7– 9 Oct 2014 | Messe Düsseldorf 10th World Trade Fair & Conference www.aluminium-messe.com

Organised by

March/April 2014

Partners

Aluminium International Today

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Metals &Mining

2014

19-20 May 2014, JW Marriott, Hong Kong

As the most pr prestigious estigious confer conference rence e in n the aluminium industry calendar calendar, r, CR CRU’s CRU’s World W o orld Aluminium Conference Conference has a long history of delivering important market great from world’s insights and gr reat e networking to top executives e fr ro om the world’ s leading aluminium rrelated elated e businesses.

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presentations Join CRU for high quality pr resentations esenta e and meet with inﬂuential delegates involved in smelting, rrecycling, e ec cycling, rrolling, o olling, extruding, trade, raw materials, pur purchasing, chasing, technology and ﬁnance.

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conference This year was my ﬁrst attendance of the confer ence organisation ecommending that my or rganisa g and is one I will be rrecommending ganisation year.. Any business that makes signiﬁcant attend every year use of aluminium needs to attend to understand the commercial ongoing technical and commer cial developments in industry.. the industry Projects Leader, ecycling Pr rojects o Leader r, Aluminium Recycling Jaguar Land Rover

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52 PERSPECTIVES

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Innovation is â&#x20AC;&#x2DC;top of the agendaâ&#x20AC;&#x2122; Alimex has supplied the metal processing industry with high-precision aluminium cast plates for more than 35 years. With a new management team, the company is pressing ahead with a drive towards internationalisation in the aluminium business. 1.

How are things going at Alimex?

After a rather difficult year (2013) we have completed our strategic review and implemented a new organisational structure with the start of 2014. Our January figures look much better than we expected and we hope to continue on that path.

2. What are your views on the current state of the global aluminium industry?

Despite a growing demand from almost all application fields, capacity increase, high-energy costs, and shortages on the supply side due to aluminium speculations, make it difficult for aluminium companies to achieve the margins they deserve. W e expect that demand development will vary across industries and regions.

4. Where in the world are you busiest at present?

taken good care of our employees and the environment we operate in. Y ears ago â&#x20AC;&#x201C; while reconstructing our production plants â&#x20AC;&#x201C; we included a heat recovery system. W e use the waste heat of our machinery and outside air to temper our buildings with less energy consumption.

5. What products are proving the most lucrative?

7. What are the big trends in valueadded production and where is Alimex leading the way?

3. In your opinion, what are the big issues affecting the secondary aluminium industry today?

Rising energy cost and overcapacity.

Clearly in Asia!

Products that have a special application directed to the needs of a specific industry as well as special formats.

6. How quickly has Alimex responded to â&#x20AC;&#x2DC;green politicsâ&#x20AC;&#x2122; in terms of helping to mak e the production process more environmentally friendly?

As a family company we have always

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THE big trend is â&#x20AC;&#x201C; clearly again â&#x20AC;&#x201C; to establish a global footprint in value creation and sales service.

8. Where do you see the most innovation in terms of production technologies â&#x20AC;&#x201C; primary, secondary, or further downstream?

Primary! There will be new solutions coming soon from Alimex and we are working with our supplier and research institutes to come up with even further innovations and applications. Unfortunately, a leap innovation such as our market introduction of cast plate solutions 30 years ago does not come every day. However, innovation is top on our agenda.

9. Do you see Alimex as an innovator within the industry?

See above! W e have created our market â&#x20AC;&#x201C; and we will redefine the industry again like we did...

10. Are there any research and development projects in place? Alimex Harald L. Schedl (above) and Dr. Philip Grothe (below)

I almost tend to say â&#x20AC;&#x153;T oo manyâ&#x20AC;? â&#x20AC;&#x201C; therefore we did a thorough prioritisation of our many projects recently and produced an innovation project plan.

11. How do you view Alimexâ&#x20AC;&#x2122;s development over the short-to-mid term in relation to the global aluminium industry?

Our plan is to outgrow our segment and regain market share while preserving margins â&#x20AC;&#x201C; this is only possible if you take a global look at your business. Many of our mid-sized competitors are far too focused on Europe only.

12. What does Alimex have in store for 2014?

Many surprises! Stay tuned! á&#x201D;˘

Aluminium International Today

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