January/February 2015 Volume 27 No 1
THE JOURNAL OF ALUMINIUM PRODUCTION AND PROCESSING
A leading global producer built on a legacy of excellence
NEWS
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TRANSPORT & HANDLING
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AUTOMOTIVE
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Whether in new plant construction or revamp projects, our solid process know-how encompasses the complete production cycle, including the integration of the latest electrical engineering and automation solutions. Confidence through performance – SMS Siemag.
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CONTENTS 1
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LEADER
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NEWS UPDATES
Volume 27 No. 1 – January/February 2015 Editorial Editor: Nadine Firth Tel: +44 (0) 1737 855115 nadinefirth@quartzltd.com
COVER January/February 2015 Volume 27 No 1
Consulting Editor: Tim Smith PhD, CEng, MIM Production Editor: Annie Baker
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USA - Joining forces
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Europe - Action for Europe
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Middle East ‘GCC: An aluminium Power House’
THE JOURNAL OF ALUMINIUM PRODUCTION AND PROCESSING
Sales
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International Sales Manager: Paul Rossage paulrossage@quartzltd.com Tel: +44 (0)1737 855116
PRIMARY
Area Sales Manager: Anne Considine anneconsidine@quartzltd.com Tel: +44 (0)1737 855139 Sales Director: Ken Clark kenclark@quartzltd.com Tel: +44 (0)1737 855117
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Hydro to become ‘Better, Bigger and Greener’
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Modern aluminium
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Sohar: Potline upgrade
Advertisement Production
AUTOMOTIVE
Production Executive: Martin Lawrence
Circulation/subscriptions Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 email subscriptions@quartzltd.com Annual subscription: UK £217, all other countries £237. For two year subscription: UK £391, all other countries £426. Airmail prices on request. Single copies £40
A leading global producer built on a legacy of excellence
NEWS
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PRIMARY
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TRANSPORT & HANDLING
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AUTOMOTIVE
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TRANSPORT & HANDLING 30
Handle with care
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Handling the aluminium industry
ARCHITECTURE
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Aluminium trade wars
COST MODEL 46
Benefits of using a technical process cost model
EVENT REVIEW 52
11AASTC
EVENT PREVIEW
© Quartz Business Media Ltd 2015
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The age of aluminium
TRADING
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
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Aluminium in automotive: This is just the beginning
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Aluminium used in Jaguar Land Rover vehicles helps meet sustainability targets
Cover picture courtesy of EGA
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Russia - Global metal consumption trends
Aluminium Middle East
PERSPECTIVES 56
Granco Clark answers January/February 2015
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INDUSTRY NEWS
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Alba production record Aluminium Bahrain B.S.C. (Alba)’s metal production soared to 931,427 metric tonnes in 2014 – jumping 18,727 metric tonnes from 912,700 metric tonnes achieved in 2013. A ceremony to mark Alba’s alltime production record was held at HRH Princess Sabeeka Oasis on Monday 5th January 2015. The event was attended by Alba’s
Chief Executive, Tim Murray, Chief Operations Officer, Isa Al Ansari, Chief Financial Officer, Ali Al Baqali, Chief Marketing Officer, Jean Baptiste Lucas, Chairman of Alba Labour Union, Ali Al Binali as well as a large number of senior officials and employees. Commenting on the company’s production record, Alba’s Chief
Coming to a screen near you Thankfully, the aluminium industry has been kind to me and I have made it a whole year at the helm of Aluminium International Today. The magazine is back with a bang, full of the latest industry news and topical features. We are also moving into the digital age and now offering readers the chance to receive a free online version of the issue as soon as it is published. If you already receive our weekly newsletter, then you will automatically receive a free digital issue. However, if you don’t, then you can easily sign up through the website (www. aluminiumtoday.com), just click on the ‘Subscribe to weekly newsletter’ button and fill in your details. We ended last year and begin this one with mergers and acquisitions filling the news pages. It seems that across the aluminium industry, companies are looking to find ways to make the current and developing markets work for them. Whether it is looking at refining business strategies, or widening product portfolios, 2015 could see even more consolidation to come. Turn to page 10 for more details. This issue also takes a look at the how the primary industry is gearing up for 2015 (page 20), the use of aluminium in the new Jaguar XE (page 26), transport and handling equipment (page 32), as well as information on international trade remedies. Enjoy! nadinefirth@quartzltd.com January/February 2015
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Executive, Tim Murray said: “Alba continues to push the limit on operational performance with our existing assets. In 2014 we were able to exceed the record production in 2013, which shows the dedication and commitment of our workforce. “I would like to thank the Alba Board, Alba Management, Alba Labour Union and all the Alba Employees and Contractors for their performance in both production and safety in 2014. We look forward to an even more fruitful 2015.”
Century acquires Mt. Holly Century Aluminum has announced that its wholly owned subsidiary has completed its transaction with Alcoa to acquire full ownership of the Mt. Holly aluminium smelter. Mt. Holly, located in Berkeley County, South Carolina, employs approximately 600 people and has an annual production capacity of 229,000 metric tons of primary aluminium.
“We are very pleased to assume full ownership of the Mt. Holly plant,” commented Michael Bless, President and CEO. “Our first order of business is to work toward a safe and seamless transition. Mt. Holly is an excellent plant and we are confident that, with some focus and targeted investments, the talented management team can produce even
greater results. We also look forward to becoming an active participant in the economy and greater community of Berkeley County. We will now turn our attention to securing a power contract, which will support the plant’s long-term operations. Though we are early in this complex process, we have been encouraged by recent discussions.”
PMI’s 2014 Award Rio Tinto Alcan (RTA), SNC-Lavalin, and Hatch received the coveted Project of the Year award at the Project Management Institute (PMI) Professional Awards Gala. The PMI Professional Awards honour organisations and individuals whose passion, talent and expertise make the greatest contributions to the project management profession. AP60 Phase 1 is a new aluminium plant located in Jonquiere, Quebec. The plant was designed to test RTA’s proprietary AP60
smelting technology at an industrial scale. The project is the firstof-its-kind in the world and the first step in RTA’s planned investment programme in Quebec’s Saguenay-Lac-Saint-Jean region. RTA’s goal was clear from the start - to safely deliver an industrial plant to demonstrate AP60 technology with minimal capital expenditure and a realistic schedule. The CAN$1.3 billion project was completed within the budget and one month ahead of schedule. It also set a world-class stand-
ard for HSE that was implemented as the benchmark by RTA and the construction industry in Quebec, which had suffered from extremely high-lost time injury frequency rates (LTIFR). The project finished with an injury rate 99% lower than the local average. The project was executed under an engineering, procurement and construction management (EPCM) contracting model, which was led by a joint venture between SNC-Lavalin and Hatch.
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Breaking ground for new German facility Hydro has started construction of a new, modern automotive production line for lightweight car body sheet at its plant in Grevenbroich, Germany.
The EUR 130 million investment will boost Hydro’s annual capacity for aluminium car body sheet from 50,000 tonnes today to 200,000 tonnes. The new facility will meet the future market growth of lightweight automotive body panels, using Hydro´s new formable aluminium alloys. Lightweight design with aluminium enables vehicles to save fuel and emit less CO2 through the entire lifecycle. “The investment is meeting customers’ increasing demand for high-performance aluminium sheets for lighter car bodies,” says Kjetil Ebbesberg, Executive Vice President and head of Rolled Products. “Innovative aluminium solutions help save energy and reduce greenhouse gas emissions in the use phase of the car. The invest-
ment is also strengthening the aluminium cluster in the region, also counting our primary aluminium production in Neuss and the Alunorf rolling mill,” says Ebbesberg. Hydro is also investing EUR 45 million at its Neuss primary plant, adding a large facility to shred,
sort and recycle used aluminum products, in particular used beverage cans. The new car body sheet production line in Grevenbroich is expected to start operations in the second half of 2016. The new production line will employ around 25 people.
(From left) plant manager Stefan Kästner, Grevenbroich Mayor Ursula Kwasny, Hydro Executive Vice President Kjetil Ebbesberg and Federal Minister Hermann Gröhe.
US extruders see increase Ducker Worldwide, recently concluded a study on behalf of the Aluminum Extruders Council (AEC) focused on identifying the benefits from and future risks to the U.S. Aluminum Extrusion market’s trade case against the People’s Republic of China. This revealing report indicates that up to 20% of the U.S. extrusion market has returned to domestic producers.
Furthermore, the study lays out three scenarios based on the re-
solve of and future success in the domestic industry’s defence of the Department of Commerce’s trade orders. “It was clear through trade data analysis and interviews with extruders, customers and suppliers that the AEC’s actions to date in the U.S. industry’s trade case against Chinese extruders have dramatically reduced imported extrusions from China and returned demand to domestic suppliers. Chinese imports grew at their peak to
over 20% of domestic demand in late 2009/early 2010, but fell rapidly to less than 1% after the orders took effect in October 2010”, said Nick Limb, Managing Principal of Ducker Worldwide. Abey Abraham, Project Director at Ducker also noted, “With the exception of a small number of niche extruders, a majority of domestic suppliers experienced a 10-20% growth attributable to the return of customers that previously purchased from Chinese extruders.”
Alcoa to acquire TITAL Alcoa has announced plans to further expand its global aerospace business through a definitive agreement to acquire privately held TITAL. The acquisition will strengthen Alcoa’s global position to capture increasing demand for advanced jet engine components made of Aluminium International Today
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titanium. “This acquisition is the next step in building a powerful aerospace growth engine,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. Philipp Schack, CEO of TITAL said, “Alcoa is widely recognised for its innovation and manufactur-
IN BRIEF Casting plant opens Showa Denko K.K (SDK) has opened a new aluminium casting plant, SHOTIC Malaysia Sdn. Bhd. (STM) at Kompleks Perindustrian Tanjung Langsat, Pasir Gudang, Johor Baharu, Malaysia to further strengthen its production system of automotive aluminium parts.
STM, setup with RM48 million (JPY 1.6 billion) capital, will be the SDK Group’s first production base outside Japan to cast aluminium and is to start mass production in 2015.
Aldel to restart next year According to reports, Dutch smelter Aluminium Delfzijl (Aldel) will restart production in early 2015, 10 months after the smelter applied for bankruptcy. Swiss based commodities company Klesch said that the decision was based on an improving business climate and a proposed deal to connect the smelter to the German power grid. The power deal could enable Aldel to purchase cheaper electricity from Germany. Aldel will initially produce 100,000 tonnes a year of aluminium products, used extensively by the automotive industry, and aims to employ 200 people by the end of 2015.
Novelis for Jaguar XE Novelis has announced that it is the supplier of aluminium sheet for the recently launched Jaguar XE. Novelis engineers worked closely with Jaguar to deliver innovative, high-quality aluminium sheet for the vehicle’s structure, enabling the lightest, stiffest and most aerodynamic Jaguar sedan ever. The new XE is the first all new car in the world to use a new, high recycled content aluminium alloy designed jointly by Novelis and Jaguar Land Rover for the automotive industry.
ing expertise, which is fully in line with TITAL’s philosophy. We look forward to joining the Alcoa family, and to combining our worldclass technologies and processes. Alcoa was and is our desired partner. We are glad to join this impressive company at an exciting time.” January/February 2015
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IN BRIEF Aluminum Association wins award The Aluminum Association’s newly redesigned website recently won the 2014 Silver Summit Creative Award in the Website Redesign Category. The Summit Creative Award is part of the Summit International Awards organisation. Throughout its 20-year history, its Creative Award has established itself as a premier arbiter of creative and communication excellence. Pictured below: The Public Affairs team, Matt Meenan (L), Stacie Manger (C), and Joe Quinn (R) with the award.
Inductotherm Group expands Inductotherm Group, a supplier of thermal processing equipment, has opened a new Group company in Turin, Italy. Italian customers will benefit from timely and direct access to Inductotherm Group product brands, covering the many active market segments in Italy. “Inductotherm Group Italy, S.r.l. will further fulfill the Inductotherm Group strategy of being a truly global yet local company,” noted Gary Doyon, CEO of Inductotherm Group.
New client for Secat Secat inc. has announced an agreement for testing services with Skana Aluminum Company located in Manitowoc, Wisconsin, USA. The agreement between the two companies is to provide R&D, technical support and other services to Skana’s casting and rolling operations.
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New Chairman of EAA aware of its role in driving forward the EU’s industrial competitiveness and sustainability agenda. In recent years, the strength of EAA’s leadership under Roeland Baan and the dynamism of its members have brought the association to the forefront of EU policy development. In my new role, I will build on this to ensure that the aluminium industry in Europe can regain competitiveness and its status as a global leader in innovation and sustainability,” said Mr Vareille.
As of 1st January 2015, Pierre Vareille (pictured) has been appointed to the position of Chairman of the European Aluminium Association (EAA) for a two-year term, replacing Roeland Baan of Aleris. Mr Vareille has been Chief Executive Officer of Constellium since March 2012. “I am truly honoured to be the new Chairman of the European Aluminium Association. Having been closely involved in its political action for many years, I am acutely
Aleris sells extrusions side Aleris has signed a definitive agreement to sell its aluminium extrusions business to Sankyo Tateyama, Inc., a Japanese building products and extrusions manufacturer. The sale includes four production facilities in Europe and one in China. The facilities specialise in the production of medium and hard alloy extrusions, serving the rail, automotive and aerospace industries. Sankyo Tateyama has agreed to pay a purchase price of €35.5 million for the business and assume approximately €46 million of pension liabilities. The transac-
tion is expected to close in the first quarter of 2015. The announcement of the extrusions transaction follows the company’s announcement in October that it plans to sell its recycling and specification alloys businesses to Signature Group Holdings. Upon the completion of both transactions, Aleris will become a singularly focused global rolled products company with manufacturing sites in North America, Europe, and China. In 2013, the extrusions business accounted for $355 million of the
company’s $4 billion in total revenue. Aleris has made a number of investments in its rolled products business over the past several years, including the construction of a world-class aerospace plate mill in Zhenjiang, China, a new automotive facility in Duffel, Belgium, and this year’s acquisition of Nichols Aluminum in the U.S. In October, the company also broke ground on a $350 million investment in its Lewisport, Kentucky facility to serve the automotive industry.
Hydro and RTA finalise Søral Hydro and Rio Tinto Alcan (RTA) have closed the deal for Hydro to take over RTA’s shares in the aluminium smelter Sør-Norge Aluminium AS (Søral) in Norway. Hydro and RTA announced the plans for Hydro to take over Søral in July. Following approval from competition authorities in Norway and France, the companies closed the deal on the afternoon of Friday 31st October 2014, with effect as of 1st November. “We welcome the 230 employees at Husnes into the Hydro family. As a fully-owned plant, we will now be able to contribute even stronger in strengthening operations at the plant and to serve our customers with value added aluminium products,” says Hilde Merete Aasheim, Executive Vice President and head of Primary
Metal in Hydro. With the deal completed, Søral’s new plant name will be Hydro Husnes, and the plant has become Hydro’s fifth fully owned aluminium smelter in Norway.
“We take Husnes into our portfolio knowing that we can learn a lot from each other, and I am looking forward to see what we will be able to achieve together,” says Aasheim.
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6 INDUSTRY NEWS APPOINTMENTS Constellium Constellium N.V. has announced that Laurent Musy has been appointed President of its Aerospace and Transportation (A&T) business unit effective 1st December 2014, reporting to Pierre Vareille, Chief Executive Officer of Constellium. Mr Musy has served as President of Constellium’s Packaging & Automotive Rolled Products business unit since 2008. Mr Vareille will serve as interim President for the Packaging and Automotive Rolled Products until a successor to Mr. Musy is appointed.
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Novelis: 2015 results Novelis has reported net income attributable to its common shareholder of $38 million for the second quarter of fiscal year 2015 compared to $23 million in the second quarter of fiscal year 2014. Excluding certain tax-effected items, net income was $42 million, up 14% compared to the second quarter of fiscal year 2014. Adjusted EBITDA for the second quarter of fiscal 2015 was $230 million, a 1% increase compared to $228 million reported for the prior year. The increase was pri-
marily driven by higher shipments and cost benefits from using recycled metal inputs. These favourable drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavourable currency fluctuations late in the second quarter. “Our solid earnings are a result of the execution of our longterm strategy to capture growth through added capacity and to lower costs through increased use
Sapa: China agreement
UC Rusal: Structural changes UC Rusal has announced the appointment of Vladislav Soloviev, previously First Deputy CEO, as Chief Executive Officer of Rusal. Oleg Deripaska, who previously held this position, has become the President of the company. In his new role as President of the company, Oleg Deripaska will focus on new development strategies for Rusal, which will enable the business not only to maintain its status as one of the most efficient aluminium companies worldwide, but also to ensure that Rusal is regarded as one of the most attractive metals companies for global investment.
Ma’aden: Board changes The Board of Directors of Saudi Arabian Mining Company (Ma’aden) has appointed Eng. Abdullah bin Saif Al Saif (pictured below) as Chairman for the Board. Eng. Abdullah bin Saif Al Saif has been appointed for his Third term, which started on 25th October 2014 and for the period of three years. In addition, the Board of Directors have formed and assigned members to the following committees (Executive Committee, Audit Committee, and Nomination and Remuneration Committee), in accordance to the duties and authorities of each committee.
UC Rusal stake in Timan UC Rusal has completed a transaction with JSC “Fund for support of investment projects in the Republic of Komi” to obtain the remaining 20% stake in OJSC Boksit Timana (‘Timan’). Following the completion of this transaction, Rusal now owns 100% of the mine. The transaction was carried out as part of Rusal’s asset consolidation programme, which is aimed at securing safe supplies of raw materials to the company’s aluminium plants.
“Currently, Rusal is implementing a strategy to become self-sufficient in raw materials. Timan is a strategically important Rusal asset in Russia, that makes 30% of the country’s bauxite deposits. Moreover, Timan bauxite is of high quality and can be mined at low cost in an open pit. This deal has been accomplished following several years of negotiation and addresses the requirements of both parties,” Yakov Itskov, the head of Rusal’s Alumina division, commented.
Sapa has signed a distribution agreement in China for its Sapa Building System brand with Jiayu, one of the country’s leading manufacturers of windows and doors. The agreement includes the sales and distribution of the Sapa Building System brand’s high-performing Avantis and Confort windows and doors, and sliding systems. The market introduction of these products is scheduled for early 2015. Sapa also will support the agreement with the supply of extruded aluminium products from its plant in Jiangyin.
Hindalco Q2 down Hindalco Industries reported a lower than expected standalone net profit of INR 790 million in the September 2014 quarter, 78% lower than INR 3.57 billion in the year ago period, even as the company’s net sales rose significantly. The profit decline was largely due to exceptional items totalling INR 4.31 billion. Adjusted for these, profit would have been in line with analysts’ estimates. January/February 2015
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of recycled materials,” said Phil Martens, President and Chief Executive Officer for Novelis. “We had record shipments of both can and automotive sheet in the second quarter, even before our new auto capacity in the U.S. and China began contributing to shipments. These auto facilities are now accelerating production to meet increasing customer demand for lightweight vehicles, including the new aluminium-intensive 2015 Ford F-150 pick-up truck.”
In the quarter gone by, smelting operations at Aditya Aluminium were affected by a prolonged power outage in early July due to grid failure and torrential rain. In August, rain held up smelting operations at Hirakud. Mr Maheshwari said: “We have completely restored operations in both Hirakud as well as Aditya Aluminium. The company’s ramp-ups are also on track, with Utkal alumi-
na refinery at 75% to 80%, Mahan smelter 50% to 60%, and Aditya Aluminium smelter is in the initial stages. “Premiums in aluminium have gone up like never before and we do not see any reason for these premiums to come down. Also, the demand-supply deficit for aluminium is up in the global market ex China and so we see firmness in aluminium prices in coming quarters.” Aluminium International Today
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2015 DIARY 2015 February 23 - 24 13th International Aluminium Recycling Congress* Hosted in Vienna by the European Aluminium Association (EAA) www.alueurope.eu
March 2-4 GulfCast* Three day conference focused on the aluminium industry. www.gulfcast.net
15 - 19 TMS* The TMS Annual Meeting & Exhibition brings together more than 4,000 engineers, scientists and professionals in the materials field. www.tms.org
March/April 30 - 3 Metal and Metallurgy China* Featuring four specialised international exhibits: Foundry Expo, Metallurgical Industry Expo, Industrial Furnace Exhibition and Refractories and Industrial Ceramics Exhibition. www.mm-china.com/En/
14 - 16 Aluminium Middle East* In its 4th edition, Aluminium Middle East aims to gather 200 exhibitors from 25 countries and over 4,000 industry professionals from 70 countries. www.aluminium-middleeast.com
May 11 - 15 Rolling Technology Course Covers all the key aspects of hot and cold rolling of aluminium. altec.com/rolling_tech.htm *Pick up a free Aluminium International Today at this event For a full listing visit www.aluminiumtoday.com and click on Events Diary January/February 2015
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Foil demand remains stable Results issued by the European Aluminium Foil Association (EAFA), for the first nine months of 2014 reflect continued sluggish demand in European markets of aluminium foil. But these have been more than offset by the continued strong recovery in export deliveries, resulting in overall sales of 643,000 tonnes, ahead by 1.5% compared with the same period in 2013 (633,000t). The figures also show an underlying trend of recovery for thicker gauges, used typically for semi-rigid containers and technical applications, which have shown a welcome increase in volumes of 6% in the year to date. While demand for thinner gauges, used mainly for flexible packaging and household foils, was flat, recording a small decline of 0.4%. Total deliveries have stayed in positive territory due entirely to a growth of 24% in exports for the first nine months of 2014. Continuing problems with the recovery of European markets are reflected in a modest fall in sales of 0.8% for the same period. In the third quarter of 2014 deliveries with 209,000 tonnes remained at almost the same level as
2013 (210,000t). However, once again exports boosted this figure with an increase of 15%, while European demand fell by 2%. Stefan Glimm, EAFA’s Executive Director commented, “We hope for steady development in the remaining months of 2014, so that overall the year will end with a slight surplus. Despite the increase in exports the competition outside Europe is increasing, so it may not be possible to sustain these levels of growth.” “In addition the fourth quarter is often the most challenging for aluminium foil producers as our customers de-stock. However, given we are still above 2013 in overall terms, we remain cautiously optimistic about the full year results,” he added.
GulfCast announced Under the patronage of His Excellency Dr Mohammed bin Saleh bin Abdullah Al Sada, the Minister of Energy and Industry, the first Gulf Aluminium Casthouse Conference “GulfCast” has been scheduled for 2nd – 4th March 2015 at Sharq Village & SPA in Doha (pictured), by Qatar Aluminium (Qatalum). The Gulf Aluminium Casthouse Conference “GulfCast 2015” programme will facilitate stimulating discussions and provide thought-provoking considerations
in an event certain to surpass the expectations of all attendees. Presentations are scheduled to focus on Safety, Pot Room - Casthouse, Liquid Metal Quality, Critical Equipment, Dross Treatment, Materials and Alloy Elements, Scrap Re-melting and Recycling, Refractories & Lining Materials, Energy and Energy Savings, Casting Technology, Safety Managers Panel, LME & Aluminium Market, Aluminium Downstream, and Competence and Innovation.
LME: Tightens rules The London Metal Exchange (LME) has launched consultations on proposed changes to rules governing physical delivery and its global network of storage warehouses. The rules proposed aim to cut the queues on all metals down to a maximum of 50 days. For aluminium, however, the LME said it proposed new measures that would effectively limit any queues to 34 business days at warehouses signed up to store metal for the LME’s new aluminium premium contract. “We are committed to providing an optimal physical delivery network for all our users, and we encourage market participants to share their views,” Matthew Chamberlain, LME head of business development, said. It also plans to require warehouses to deliver out an additional 500 tonnes of aluminium alloys per day.
Granco Clark contract Aerolite Extrusion Company of Youngstown, Ohio has selected Granco Clark’s Flying Cut Double Puller for their existing aluminium extrusion system. The Granco Clark Double Puller is equipped with two puller heads and a saw osn puller head 2 allowing it to provide cut on the die mark efficiencies which will reduce scrap and increase yields.
Aluminium closures The aluminium closures market, particularly for wine, is expected to continue strongly growing in 2015. This growth is attributed to a number of factors including the convenience offered to consumers as well as to wine makers and fillers. More details about consumer preferences and the market growth of aluminium closures can be downloaded from: www.aluminium-closures.org. Aluminium International Today
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10 USA UPDATE
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Joining forces
Photos courtesy of Aleris
In the past several months it appears as if U.S. aluminium merger and acquisition activity has picked up with the possibility of even more consolidation moves on the horizon. Myra Pinkham* explains. “There is more speculation about future merger and acquisition (M&A) activity than there has been in a long time,” according to Lloyd O’Carroll, senior metals analyst for Cleveland-based Northcoast Research. It is hard to put all of this M&A activity and potential activity in one bag. “Companies are trying to figure out what they want to do, or need to do in light of current market conditions,” O’Carroll says, noting that some companies are trying to grow in total or in their North American presence, while other moves are largely motivated by the desire of companies to strengthen their financial positions. While some recent moves seem to be aimed at finding synergies and further refining companies’ core business strategies, Timothy Hayes, principal of New York-based Lawrence Capital Management, says others see it as a way to broaden their product portfolio. Many of the moves are aimed at broadening their portfolio of products and services or for companies to be better positioned to take advantages in recent shifts of end use demand. “The automotive market is changing as the industry pursues broader aluminium use for the production of lighter, more fuel-efficient vehicles,” observes Steven J. Demetriou, chairman and chief executive officer of Aleris International Inc. This, he says is likely to spark M&A activity as the industry gears up to meet new demand. According to Ducker Worldwide’s recent study of North American light vehicle aluminium content, aluminium sheet per
vehicle body is expected to increase to about four billion pounds by 2025 from 200 million pounds in 2012. Pierre Vareille, chief executive officer of Paris-based Constellium NV, recently told investors that while the aluminium industry has begun to respond to this increased demand, current plans to increase production capacity remains half of what is needed to meet long term demand. Some recent M&A activity has been, at least partly, aimed at increasing companies’ capability to meet this rising auto demand. This not only includes acquisitions, but also moves to divest noncore assets to enable them to concentrate more on automotive and other growth markets. Demetriou says Aleris’ proposed divestiture of its global recycling and specification alloys business will allow the company to place a singular focus on its rolled products business, enabling it to be poised to take advantage of strong projected growth in the automotive and aerospace sectors as well as other highend industrial markets. “It will result in a stronger, more focused Aleris that will have the greater flexibility to concentrate its resources in the areas of highest potential growth within rolled products,” he says. Meanwhile Craig Bouchard, chairman and chief executive officer of Sherman Oaks, Signature Group Holdings Inc., the private equity company that has agreed to purchase the Aleris unit for $525 million,
calls it a transformational transaction for his company. “With 24 facilities in Europe and North America, it gives us the opportunity to be No. 1 (in the third party aluminium recycling industry) right out of the box.” The deal is expected to be finalised by the end of January 2015. He says that it has good potential to grow both organically and through acquisitions, especially since the
strong and growing automotive sector accounted for about 61% of its sales in 2013. Also, he is hopeful that primary aluminium producers will now look at the new company as more of a “teddy bear cousin” than a competitor once it is spun off from Aleris, enabling it to do more business with them going forward. O’Carroll says that to date Signature has had massive operational losses. “Only time will tell if buying Aleris’ specification alloys unit will help it,” especially given that it tends to be a low returns, razor thin margin business with very few barriers of entry.
*US Correspondent January/February 2015
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Vareille also called Constellium’s proposed $1.4 billion acquisition of Muscle Schoals, Wise Metals Intermediate Holdings LLC, which is expected to close in January, transformational. “The rationale is simple,” he says, as it will give Constellium “scarce” hot mill capacity to service both the can sheet and the body-in-white automotive markets while significantly increasing its presence in the North American market. “This gives us access to one of the widest hot mills in North America with the capacity to produce about 450,000 tons of can stock and we plan to increase this capacity to more than 700,000 tons for both the can sheet and automotive bodyin-white markets,” Vareille said during an October conference call on the planned acquisition. He says that Constellium plans to invest $700 million to $750 million in Wise between 2015 and 2022, including $250 million to $300 million to expand its casthouse and hot line to increase its rolling capacity. About 70% of that increased capacity is to be used for auto sheet with 30% allocated to can stock. “In addition, we plan to invest approximately $450 million to build and commission a dedicated 200,000 ton per year body-inwhite rolling and finishing line, which is to ramp up in 2018.
is so excited about the proposed Wise acquisition is that it will allow Constellium to add North American capacity at a lower cost than if it had built a new hot mill, which is something it was considering doing. Not only is building a hot mill more expensive than building cold finishing capacity, but it would have taken a very long time to build. Even before Constellium proposed buying the company, Wise, which is predominately a can sheet producer, had been eying adding an auto sheet line. While can sheet is not growing like the automotive market is, Vareille says Constellium has no plan to switch any of Wise’s can sheet capacity to body-inwhite, given that much of Wise’s can sheet business is under long term contracts. “We will see what happens when it is time to renew those contracts four to five years from now,” he says. Another big M&A move was Aleris’ $110 cash purchase of Quanex Building Products Corp.’s Nichols Aluminum LLC subsidiary, which was consummated in April. “The Nichols acquisition was all about growth,” Demetriou says. “It provides our business with greater efficiency and flexibility to better serve our customers at a time when there are signs that the United States is experiencing a sustainable economic recovery.”
This, plus its 100,000 tonne auto sheet joint venture with Japan’s UACJ Corp. in Bowling Green, Ky., that is to come online in the first half of 2016 and be fully ramped up in 2018, is expected to raise Constellium’s North American exposure to 30% from 14% currently. With the possibility of adding a second line at Bowling Green, Vareille says Constellium is well on its way to reach its goal of eventually increasing the North American share of its business to 50%. Vareille says one reason the company
He goes on to say, “Particularly as the U.S. economy begins to recover and the housing sector gains strength, we believe these assets will strengthen our position as we look to capture our share of the growth.” The acquisition included four facilities supplying aluminium sheet to several industries, including building and construction and transportation. “While these facilities have similarities to our previous North American operations, they also provide us with a geographical
Aluminium International Today
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footprint that better aligns us with our customers,” he says, adding that it was a well-timed acquisition move as the construction sector recovers. Given that Nichols and Aleris were previously the top two aluminium building sheet producers, Hayes says their merger has resulted in a significant consolidation of that marketplace. In fact, Aleris recently announced plans to close the former Nichols aluminium sheet finishing mill in Decatur. “This decision, while difficult was necessary for us to streamline our operations to serve our customers more efficiently by moving production from Decatur to our other U.S. facilities,” Demetriou says. This is part of Aleris’ overall network optimisation programme, which he says is expected to be complete by the first quarter of 2015. As part of its strategy to lower its cost base and create a globally competitive business, Alcoa Inc. sold its 50.3% interest in the 229,000 tonne per year Mt. Holly aluminium smelter in Goose Creek, S.C., to Chicago’s Century Aluminum Co. for $67.5 million in cash plus an additional potential earn-out. “While Mt. Holly is a strong facility, its cost structure doesn’t match Alcoa’s criteria for a low cost portfolio of upstream assets,” Bob Wilt, president of Alcoa Global Primary Products, says, adding that the sale is aligned with Alcoa’s strategy to create a globally competitive commodity business and lower its position on the world aluminium production cost curve to the 38th percentile by 2016. Michael Bless, its president and chief executive officer says Century Aluminum is very pleased to assume full ownership of Mt. Holly, stating that the transaction furthers its intent to increase its North American hot metal capacity and to improve the value-added content of its product mix. Meanwhile Alcoa is in the midst of purchasing U.K. aerospace components manufacturer Firth Rixson Ltd. for 2.85 billion, which, according to Klaus Kleinfeld, its chief executive officer, will strengthen the producer’s already robust aerospace portfolio. In addition to doubling Alcoa’s content in aircraft engines, it will give the company leading edge technology that it hasn’t had to date including isothermal forging and 3-D printing. Speculation of further deals is also building, O’Carroll says, including questions of whether Rio Tinto Plc could spin off its Rio Tinto Alcan aluminium unit and if BHP Billiton will spin off its non-iron ore assets given their cost and profitability issues largely caused by plummeting iron ore prices. “They need to get their cost down,” he explains. t January/February 2015
1/14/15 2:32 PM
12 EUROPE UPDATE
www.aluminiumtoday.com
Action for Europe The European Aluminium Association has issued an ‘Agenda for Action: Towards a competitive and sustainable aluminium industry in Europe.’ Nadine Firth* met with Gerd Götz** to discuss the challenges and how Europe is leading the way in aluminium recycling.
rising demand.” It’s clearly a risky business predicting the future, but Götz adds, “We can say that there’s a positive trend and confirmation of the demand for such an inspiring and versatile material that makes a difference to others, in particular from an environmental and economic point of view.” Paradox “Now, it looks so great, where is the downside?” Götz asks, either reading my mind, or what I’m writing down on my notepad as we talk. “We have a paradox with the growing demand and the production of primary aluminium that is declining,” he begins. “There is a global market price but those
who are producing in Europe are facing a big gap in the cost structure because they have about a 10% regulatory burden that cannot be passed on to customers. At the same time, Europe has become a net exporter of scrap. This has to be considered as leakage of Europe’s energy bank. Keeping our scrap here is crucial for Europe to achieve its energy independence.” “Aluminium is needed for the economy and is critical for Europe’s industrial value chain, was stated by the European Commission. If so, then actions need to be taken to address the competitiveness of our industry and save our primary production in Europe. We have lost more than a third of our production since 2007.
European aluminium industry paradoxes: EU aluminium self-sufficiency is decreasing
68%
60% 56% 52% 2003
1000
ENet scrap exports (in k tonnes)
64% EU aluminium self-sufficiency
“Looking at the general picture, certainly something to start with is that even in these difficult economic times, there is a very strong story for aluminium,” begins Mr Götz, Director General of the European Aluminium Association (EAA). It’s a good start to our meeting, which is taking place at the Aluminium 2014 show in Düsseldorf, Germany. Surrounded by shiny displays and a buzz from the crowds attending, it is easy to feel this positivity. “Above all, innovation translates into rising demand,” says Götz. “EAA estimates show that demand in Europe is expected to almost double by 2050, which is a result of our industry’s long-standing commitment to innovation and sustainability. Actors across the entire supply chain are proactively seeking new synergies that lead to new and better designed products for the consumer and in doing so, are helping us to make aluminium the material of choice to complement societal change and development.” So, which areas are likely to provide the highest levels of demand? “We see that the demand is rising worldwide in all main markets – mobility, construction, packaging – and Europe remains a long-term growth market,” says Götz. “Particularly, trends for automotive are really the drivers for production and
2005
2007
2009
2010
2012
EU aluminium self-sufficiency* Source: EAA statistics * EU aluminium production (primary+recycling)/EU aluminium consumption
2013
EU aluminium scrap exports is increasing
800 600 400 200 0 2003
2005 2007 Net scrap exports
2009 2011 Linear (Net scrap exports)
2013
*Editor, Aluminium International Today **Director General of the European Aluminium Association (pictured above) January/February 2015
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Aluminium International Today
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EUROPE UPDATE 13
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The Bright World of Metals
Of course with regards to the regulatory environment, it is up to us in Brussels to ensure we have a level playing field with other competing regions, if we want to keep the primary production alive in Europe.” There is also a paradox situation when it comes to recycling in Europe. “Let’s say this part of the picture is both smiling and frowning,” says Götz. “Smiling, because Europe is the world champion of recycling, but on the other hand, we are also the champion of exporting aluminium.” One of the issues highlighted in the ‘Agenda for Action’ is that the flows of scrap to third countries lead to a loss of sustainable raw materials for the European industry. “Our aluminium has got out of Europe,” continues Götz. “We lose too much aluminium this way, to countries who have taken measures to not let aluminium leave. We are calling for recycling in ‘equivalent conditions’ and a global environmental playing field with the rest of the world.” Recycling At the time of meeting, Novelis had just opened the “world’s largest” aluminium recycling facility in Nachterstedt, Germany. Located adjacent to the company’s rolling mill, the $258 million (€200 million) recycling centre will process up to 400,000 metric tons of aluminium scrap annually, turning it back into high-value aluminium ingots to feed the company’s European manufacturing network. “This is fantastic news for the industry,” says Götz. “Anybody who looks at the consumption of people around the globe needs to be concerned, so Europe has looked into this very early. It was a frontrunner in aluminium recycling and it has understood that if we do not reduce our footprint in terms of emissions, we will lose out in the long term. Recycling aluminium saves 95% of the energy that is required for primary production.” Aluminium - which delivers energy efficiency, lightweight and a lower carbon footprint - is part of the solution for Europe to move to a sustainable and low-carbon economy. “We know that about 75% of aluminium is still in use. Some of it for the second, third, fourth time, which is an amazing story,” says Götz. “This also explains why recycling takes a long time, because we have long periods of use for the material. If you take a building, it takes decades to recycle. Which means, we need both, primary and secondary production.” “The right thing to do is to look for ways to keep standard of life, standard of security, and infrastructure, while at the same time helping to reach sustainable targets,” adds Götz. “When we look at aluminium in cars, we see that emissions reduction per kilometre is being reduced and save one fuel tank a year! We have to think, what does it mean with all of these millions of cars on our streets? This is an area where aluminium can make a huge difference. “It’s not just aluminium in the production phase you have to look at, but it’s the way you use it over the whole life cycle. We should not limit our self to one cycle but rather aim at closing the loop through efficient recycling.” It seems therefore that we could be seeing more investment in European recycling projects in the coming years? “The new Novelis plant is the biggest in the world and they have built it in Europe; there must be a reason why they have chosen to build here,” says Götz. “I can see other companies, like Aleris and Constellium, Amag and Hydro, building new plants or lines for rolling, for aerospace and automotive products. There is certainly something going on in Europe!” t
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References
1. http://www.alueurope.eu/wp-content/uploads/2011/08/EAAAgenda-for-Action-20131127.pdf Aluminium International Today
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14 MIDDLE EAST UPDATE
‘GCC: ‘An Aluminium Power House’ The 18th Arab International Aluminium Conference (Arabal) was held at the Gulf Hotel, Manama in the Kingdom of Bahrain on 25th – 27th November 2014. Nadine Firth* was in attendance. Arabal 2014 was officially inaugurated by His Excellency Sheikh Khalid bin Abdullah Al Khalifa, Deputy Prime Minister of the Kingdom of Bahrain. A host of distinguished guests, Government officials, ministers, ambassadors, CEO’s from the region’s smelters and business leaders from industrial sectors were present at the opening ceremony to mark the fourth time that the Kingdom of Bahrain has hosted Arabal. The theme for this year’s event was ‘GCC: An Aluminium Power House’, and so to begin the conference proceedings, a panel discussion comprising the top leadership of smelters in the region addressed how this development will impact the industry, bolster regional economies and boost growth opportunities for the downstream sector. The panellists included the Managing Director & Chief Executive Officer of Emirates Global Aluminium (EGA), Abdulla Kalban; President, Ma’aden Aluminium, Abdulaziz A. Al-Harbi; Chief Executive Officer, Qatalum, Tom Petter Johansen; Chief Executive Officer, Sohar Aluminium, Said Al-Masoudi and the Chief Executive Officer, Aluminium Bahrain (Alba), Tim Murray. Each member of the panel gave an introduction to their respective company,
before providing an overview of its current industry position and future developments. Alba’s Tim Murray focussed on the company’s workforce sustainability through training and development. There was also a mention of a 6th line expansion and target of 920,000 tonnes of primary aluminium by the end of 2014. Abdulla Kalban of EGA said the company was experiencing “exciting times” as the fourth largest aluminium producer in the world. Mr Kalban geared the presentation around the company’s upstream investment in Guinea and said the first phase of the project is due to be completed in 2017. Abdulaziz A. Al-Harbi spoke about Ma’aden breaking ground in 2006 and its mandate being “creation of added value of our resources.” The presentation also highlighted that its automotive rolling plant is expected to start-up by the end of 2014. To conclude the session, Qatalum’s Tom Petter Johansen discussed the benefits of its joint venture with Hydro, while Said Al Masoudi underlined Sohar Aluminium’s efforts to develop local skills. Safety Awards Frank Briganti, Chairman of GAC – EHS Committee, Emirates Global Aluminium,
presented the GAC Safety Awards. The winners in the ‘Environmental’ category were Ma’aden and Midal Cables, in recognition of environmental excellence and the company’s contribution to a sustainable Gulf Region. The winners in the ‘Health & Safety’ category were Alba (pictured above) and Gulf Extrusions, in recognition of excellence in health and safety initiatives. Smelter visit Arabal delegates were given the opportunity to visit Alba – the first aluminium smelter in the Middle East and today, one of the fourth largest single-site smelters in the world. Those attending
*Editor, Aluminium International Today January/February 2015
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W E
C O N V E Y
Q U A L I T Y
Defined Cooling of Hot Bath Material
the visit were also given a presentation on Alba’s environmental commitment, safety policies, adherence to quality, corporate social responsibility initiatives and the company’s contribution to Bahrain’s economy. Final sessions The last day kicked-off with a keynote presentation by Alba’s Chief Executive Officer, Tim Murray on the ‘Alba Safety Journey’, which highlighted the company’s commitment to foster a zeroaccident work environment. One of the initiatives taken to achieve this goal was to develop and promote the Zero Accidents Principles, which state that ownership of safety is everyone’s responsibility, working safely is a condition for employment and all work related injuries and illness are preventable. This was followed by a panel discussion “LME: Today & Tomorrow” on the business environment of the London Metal Exchange (LME) and later, a keynote presentation “Why the aluminium market stands at a crossroad” by EGA’s Chief Marketing Officer, Walid Al Attar. This key session highlighted that the demand for aluminium remains strong and there is every indication that many industries are making a gradual shift to aluminium because of the metal’s unique properties. However, at the same time, it can’t be denied that the industry itself is at a crossroads with major challenges facing those planning to build new smelters. The cost and availability of energy to power the smelters is a huge obstacle and then there’s the challenge of acquiring and maintaining a steady flow of raw materials like bauxite and alumina. The morning concluded with two important panel discussions: “Alumina & refined bauxite dynamics” and “Sustainability and environment”. Conclusion This year’s Arabal saw more than 500 delegates attend the conference, exhibition and networking events across the three days. The 19th Arabal will be hosted by Ma’aden in 2015. Visit the events page on www.aluminiumtoday.com for further information. t Aluminium International Today
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For the Primary Aluminium Smelting Process • Cooling from 850 °C down to below 100 °C • Reduction of HF emission • Clean and environmentally safe conveying and cooling
AUMUND Foerdertechnik GmbH Saalhoffer Str. 17 • 47495 Rheinberg • Germany metallurgy@aumund.de · www.aumund.com 1/19/15 3:31 PM
16 RUSSIA UPDATE
Global metal consumption trends Aluminium consumption is forecast to increase in the coming years and Russia is not an exception in this aluminium race. Roman Andryushin* explains. Typically, the higher a country’s standard of living, the higher the demand for aluminium, one of the most eco-friendly metals owing to its fully recyclable and biodegradable qualities. Aluminium has become the metal of choice for the global automotive, construction, packaging, aerospace and electronics industries due to its lightweight and malleable nature and its ability to withstand corrosion. Contributing to global aluminium production The Russian aluminium industry has more than 80 years of history and has enjoyed access to renewable and environmentally friendly hydro energy as its key competitive advantage. Even though the Russian aluminium industry was born in the European part of the country with the establishment of the Volkhov smelter, in the Leningrad region (1932) in as early as the mid-20th century, the main capacities were shifted to Siberia, which enjoys abundant hydropower resources. Today, Russia is home to 12 aluminium smelters and five alumina refineries, including world aluminium giants such as the Krasnoyarsk Aluminium Smelter (KrAZ) and Bratsk Aluminium Smelter (BrAZ) with an annual output of approx. 1 mln tonnes
each. Five HPPs with possible capacity expansions located in Siberia, supply approximately 85% of Russian aluminium production with hydropower. Rusal has consolidated the whole Russian aluminium upstream production industry. Commencing in the year 2000, the company embarked on a large modernisation programme in order to turn old Soviet era aluminium smelters into modern enterprises. The modernisation and construction of new smelters would not be possible, of course, without continued innovation and a sophisticated engineering approach. Rusal’s in-house EPCM incorporates over dozens of years of Russian expertise in aluminium and continues to develop scientific ideas and turn them into cutting-edge technologies and technically advanced facilities. And what about domestic demand? The collapse of the Soviet Union in the early 90s brought the Russian aluminium industry into a tight spot while aluminium consumption was cut by almost nine times. As a result, for 20 years between 1993 and 2013 Russia faced a 33% decline in aluminium consumption while global aluminium consumption more than
doubled. However, the year 2013 has become a turning point. Most of the consumption growth has come from the construction industry. In 2012-2013, Russia experienced a boom in demand for construction materials. In particular, they were required in vast quantities for the sports facilities of the 2014 Winter Olympics in Sochi. At the Olympics, aluminium was a key construction material for stadiums and main venues. Moreover, the Russian State Statistics Service reported that 2013 was a record year for construction with 7% growth in comparison to 2012 both in volume and scope. This trend has continued in 2014, making extrusion one of the most dynamically growing segments among aluminium consuming industries in Russia and CIS, with an annual production growth rate of 5-7%. As of 2014, Rusal estimates Russian annual aluminium consumption growth at the level of 4% while the annual consumption of aluminium per capita on average is estimated at 6kg. The 2014 Russian aluminium-contain goods consumption is estimated to be at the level of 1.9 million tonnes. Much of this comes from rolling (38%), cable (26%), extrusion (19%) and automotive (6%) industries.
*Head of Russia & CIS Sales, UC Rusal, Russia January/February 2015
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Overall, the domestic demand in 2014 can be split as following: 50% on primary aluminium, 37% on imported aluminiumcontaining goods and 13% on secondary aluminium. Russia consumes about 2/3 (450 kt out of 706 kt) of all aluminium imported to Russia and CIS with the highest demand for imported household products (63%). As of today, Russia mainly imports aluminium goods from China and Europe. Prospective growth engines Evidently, the Russian market has demonstrated a recovery of demand on aluminium and aluminium containing goods that proves the significant consumption potential of the market with a population greater than 140 million. It is worth mentioning that within this split, the demand for primary aluminium has been demonstrating strong annual growth at a level of 10% between 2010 and 2014 and may maintain this pace until 2020 thanks to Russian state programmes involving production localisation. Rusal considers production localisation of extrusion, auto components, packaging and household products as the main
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growth driver. Rusal estimates that the consumption per capita and the overall market volume may reach 15kg and above 2.4 million tonnes respectively by 2020. This growing consumption is forecast to be supporting the growing demand for flat rolled products, construction extrusion and automotive components in the midrun and alloys for packaging, aviation and shipbuilding in the long run. Rusal sees the localisation of automotive components production as an important growth factor and the company is currently working on the Novokuznetsk smelter modernisation to produce alloys (ingots) for automotive purposes which will contain silicon and magnum. These alloys are expected to meet the growing demand of global auto producers who assemble vehicles in Russia, but have to purchase components from abroad without having domestic alternatives. Other efforts are taking place alongside cable production. The company develops 5xxx, 6xxx and 8xxx series of wire rod especially for the Russian market. These products are currently under-utilised on the industrial scale as import analogues are expensive.
In terms of packaging, the aluminium can is seen as the most promising packaging segment: It has been underdeveloped in Russia but is expected to become one of key drivers of Russian aluminium consumption in the next decade. One cannot conquer alone All in all, Rusal is acting as a main forwarder of consumption of eco-friendly aluminium goods in Russia and CIS. And on this wave the company has become a main initiator of creating a special communication mechanism between aluminium producers and consumers in Russia. Late in 2014 the All-Russian Association of Aluminium Producers and Consumers was initiated with the view to see prospective growth engines of the market and to build effective methods of meeting consumers’ needs domestically. The association is expected to become a unique platform to develop roadmaps of collaboration between the Russian aluminium and aluminium-containing producers and consumers. Foreign players are also welcome to join the club but the association is assigned to deal with production allocated in Russia. t
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18 PRIMARY
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Hydro to become ‘Better, Bigger and Greener’
Norwegian based aluminium producer, Hydro has set new production targets. “This is an important element in our value proposition to customers,” says President and CEO, Svein Richard Brandtzæg (Pictured). Hydro launched its new aspiration at its Capital Markets Day in late November 2014. With a defined roadmap for each of the three pillars of the aspiration, Hydro has set specific targets to be reached by 2018-2020. “Our ambition is to be the best aluminium company in the world. In other words, the aspiration signals our determination to strengthen our position as technology leader and as a benchmark in operational and customer excellence,” says Brandtzæg. Better “Doing things better tomorrow than we did today is the essence of our business model and a promise to our customers,” says Brandtzæg. He explains that the ‘Better’ part of the company’s aspiration is very much about cooperation with customers, utilising technology and the competence Hydro has built over its 109 year-long history. “To be better is a continuous improvement process that never ends. Hydro shall be the best in financial, commercial and operations, and of course in health, safety and the environment,” Brandtzæg states, adding that the Aluminium Metal Production System (AMPS), which is implemented in its Primary Metal business, is a good example of how the company continuously strives January/February 2015
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to become better in day-to-day operations. Following the financial crisis, which hit the aluminium industry in 2008 and 2009, Hydro introduced decisive measures to improve its relative cost position within the industry. The $300 Program, which improved the cost base for its fully owned primary smelters by $300 per metric ton, was completed in 2013. In recent years, the company also added similar programmes for all operations across its integrated value chain. “We have used the time after the finance crisis well, and as a company, Hydro is now coming out of the crisis as a better, more stream-lined company with increased customer focus, and – I believe – a great value proposition to our customers,” he says. Bigger “Our response to the finance crisis in 2008 and 2009 was about creating a more robust, competitive and stronger Hydro,” says Brandtzæg. He says Hydro put in place effective measures to cut cost across its businesses, but emphasises that recent years has also been about industry shaping activities, such as starting up Qatalum in 2010, acquiring some of the best bauxite and alumina assets in the world in 2011, and establishing the SAPA joint venture in 2013.
“We also have several projects that are being matured right now, but these will not be realised until the time is right,” he says. Greener When it comes to the ‘Greener’ part of Hydro’s new aspiration, Brandtzæg says the company acknowledges that environmental footprint will become more and more important in the years to come, also for aluminium producers. In 2013, Hydro launched its goal to become carbon neutral by 2020. “We will reach this target by working in three parallel streams. First, we will work with ourselves by reducing our direct emissions. Secondly, we will work with our customers to produce products that help reduce emissions in the use-phase, and thirdly we will almost double our share of recycling towards 2020,” says Brandtzæg. According to the CEO, Hydro’s portfolio of casthouse products has a low carbon footprint, mainly due to well-run smelters and the extensive use of hydro-electric power in several of its smelters. “More importantly, however, aluminium enables reduced CO2 emissions when it is used, for instance because carmakers are able to build lighter and more fuel efficient cars. The positive contribution from aluminium in this use phase can more than make up for the emissions from producing the metal,” he says. t Aluminium International Today
1/20/15 12:19 PM
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20 PRIMARY
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D18+ cells, during the pilot phase.
Modern aluminium This article looks at how Dubai Aluminium is modernising its original potlines. Dubai Aluminium PJSC (DUBAL, an operating subsidiary of Emirates Global Aluminium PJSC) began operations in 1979, with three potlines each housing 120 Kaiser P69 technology cells. After significant in-house research and development, the technology was redesignated as D18, and was eventually deployed in a total of 520 cells at DUBAL’s Jebel Ali smelter complex. Today, through ongoing process improvement and creep, the operating amperage of these cells is at a record 205 kA for this technology, with specific energy of 14.77 DC kWh/kg Al, current efficiency of 93.8% and annual production in excess of 290 ktpa. To make the next step in the progression of the original potlines at DUBAL (now more commonly referred to as EGA Jebel Ali), a totally new cell has been designed with the main objective of reducing energy consumption by more than 10% while increasing liquid aluminium production by at least 10%, as well as reducing HF and PFC emissions. The new design, called D18+, incorporates the latest advances in reduction cell technology such as magnetic compensation, alumina point feeders with bath sensing breakers and alumina hopper filling with an air slide system. Utilising existing infrastructure and equipment helped control the capital costs. D18+ concept and prototyping Compatibility with the existing potline infrastructure raised several challenges January/February 2015
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DUBAL’s four original D18 potlines in the 1990s.
during the design process. These were addressed as follows: • To place the D18+ cell within the existing footprint and cell-to-cell spacing, the side-risers and busbars were designed to fit in the space originally occupied by the D18 cells. • The cell controller interface for the original D18 cells was placed at the duct end of the cell. The D18+ prototype cells controller utilises a remote controller input and display that is installed at the tap end of the superstructure for better access by operations personnel. The pot control system nominated for the modernisation project is PLC based with Human/Machine Interface (“HMI”) located at the tap end. • With the installation of undercell busbar, the D18+ shell was elevated by 20cm. The tap end floor level was also
raised by 20cm by adding a concrete pad, so as not to hinder access for operational activities. • To fit within the limitations of the existing potline infrastructure, the superstructure design was developed on the basis of experience gained from D20 and DX+ technologies, making the D18+ superstructure the lowest in height and therefore leading to the most economical design. • The D18 shell design was very robust with sound mechanical characteristics. The existing D18 shells were therefore reused and extended by two cathode blocks, to minimise the capital cost. • The new D18+ superstructure and hoods were designed to minimise the cell’s gaseous emissions substantially in comparison to the older D18 cells. This lowered the potroom HF emissions while maximising the amount of gas recycled by the gas treatment centres. To validate the design and project execution strategy, seven D18+ prototype pots were built in 28 days and started-up in March 2012. These demonstration cells have since met and exceeded all design performance targets, with specific energy of 12.65 DC kWh/kg Al and current efficiency rate of 95% (YTD, November 2014). The table summarises the key performance indicators for the D18+ demonstration cells and expected performance at 225 kA. After successful validation of the D18+ Aluminium International Today
1/19/15 11:10 AM
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KPI
YTD November 2014 D18 PPF pots
Amperage (kA)
D18+ D18+ Demonstration
Conversion project expected
pots
performance 225.0
205.0
205.0
# of Pots Installed
449
7
520
Current Efficiency (%)
93.8
95.0
94.8
Gross Pot Voltage (V)
4.73
-
4.22
Net Pot Voltage (V)
4.66
4.03
4.15
Net Specific Energy (kWh/kg)
14.77
12.65
13.05
Production/Pot-Day (kg/pot-day)
1,548
1,568
1,715
AEF (/cell/day)
0.30
0.02
0.10
18
29
20
98
11
AE Duration (secs/AE) PFC (CO2eq. kg/ t Al)
36
Total F Emissions (kg/ t Al)
0.45
Baked Anode Length (mm)
1,515
1,515
Baked Anode Width (mm)
810
810
810
2,003
-
1,800
Potlining Life (days)
design and project execution strategy, the FEED study was completed in Q1 2013. Approval was given by the EGA board of directors for the conversion project on 10 June 2014. Selection of the EPCM contractor was made in November 2014, and the conversion project will begin in June 2015. Although EGA Jebel Ali has previously 2015 many 1-2 Page RAM.01.pdf 1 18.01.2015 20:59:54 undertaken brownfield expansions,
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this will be the first time an existing potline will be replaced with entirely new technology. This poses new challenges: • Converting D18 cells in batches of 30 cells, with bypass bus used to maintain operation of the remaining potline. • Working with potroom operations to ensure uninhibited operation of existing cells as well as construction of new cells in the same potroom.
• Selection and management of newer D18 cells (when cut-out for D18+ replacement) so that they can be restarted to replace ageing D18 cells elsewhere in the D18 potlines. • Training of operations personnel to start and operate new D18+ cell technology while continuing to operate existing D18 cells within the same potline. When the D18+ conversion is complete, the objective is to reach in the mediumterm an operating amperage of 235 kA. This will increase production by 47,000 tpa while utilising a similar amount of power as the original D18 potlines. Transferrable skills in modernisation EGA has the capability to offer its expertise in retrofitting older potlines to other smelters seeking to modernise their operations. The business would provide similar support and services as part of a Technology License Agreement, as offered for DX and DX+ Technologies. www.ega.ae
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Sohar: Potline upgrade A major revamp of Sohar Aluminium’s 1.2km long potline, which forms the centrepiece of the $2.4 billion smelter project, concluded at the end of November 2014, marking the culmination of a multimillion dollar initiative that is already contributing to productivity optimisation, energy efficiency, and enhanced safety. The overhaul represents the first significant upgrade of the country’s largest industrial project since it came on stream in June 2008. As a result, all 360 cells – the individual production generation units that make up the giant potline – have now been replaced in a move that effectively revitalises smelting operations at Sohar Aluminium. According to Serge Gosselin, Chief Operations Officer at Sohar Aluminium, pots typically have a six-year life span and must be replaced in order to sustain and improve productivity and safety. However, as the 360 pots at SA’s plant form the backbone of the company’s production, replacing them in one go will necessitate a complete shutdown of operations for the duration of the revamp. “Our team came up with a programme to change them gradually”, said Hamed Al Jabri, Reduction Services Manager. “The programme began in January 2012 with replacements initially taking place at
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the rate of four pots per month and then ramping up to 19 pot changes in a month. November 23rd mark the completion of the change-out of the last pot. Hundreds of contractors and employees were involved in the project,” Hamad explained. The initiative extends the lifespan of the production line because fewer pots will need to be replaced from time to time thereby minimising any impacts to the smelter’s overall production capacity. Importantly, accompanying the pot change-out process is a significant technological upgrade as well. Chris Murray, Operations General Manager said, “The previous pots are based on AP37 technology, and we were replacing them gradually with AP39 lining design. Now, all pots are based on AP39, which provides better productivity and energy efficiency, and will increase our production capacity.” Jason Moodley, Reduction Maintenance Manager added, “The process of
managing the end-of-life of the older technology pots also brought some challenges but was highly successful due to a benchmark system that was developed and introduced during the project. Furthermore, the teamwork displayed in all areas across the plant was exceptional in delivering this important milestone for Sohar Aluminium.” A formal launch of the new pots was celebrated at a ceremony aptly dubbed “1st Generation Change-out Completion” on the day of the last pot change-out at the company’s Sohar premises, in which all of the teams involved in the threeyear-long programme were present at the event, including the Pot Re-lining Team and Start-up Team. The entire initiative was overseen by the Reduction Services and Reduction Operations Departments, key operational services departments at Sohar Aluminium. t www.sohar-aluminium.com
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Aluminium used in Jaguar Land
Dr Mark White* looks at the challenge with light weight vehicles Jaguar Land Rover (JLR) has a long history of using aluminium. Early models for both brands used aluminium as part of lightweighting to ensure on and off road attribute performance were amongst the best in the industry. However, most of these applications were low volume and utilised niche-manufacturing technology. The challenge with the current JLR Light Weight Vehicle (LWV) strategy, which began in the 1990’s, was to develop a high volume solution, which benchmarked steel for quality and hours per car, for the lowest incremental cost to the body and chassis. Since the introduction of the first JLR LWVs in 2003 with the Jaguar XJ, JLR has produced six new LWV programmes in just over 10 years and is now the largest producer of aluminium intensive vehicles in the automotive world. We have just announced the latest LWV with the new Jaguar XE, and using innovative processes to ensure minimum waste and optimum recyclability, we are now considerably reducing CO2 output within the manufacturing process. As part of its approach to sustainability, JLR’s LWV strategy takes a holistic approach to CO2 reduction. This is achieved using linked approaches for significant weight reduction in the primary body and chassis systems coupled with improved aerodynamics, aided by powertrain matching and related secondary weight saves throughout the vehicle systems. We also maximise recycled material usage and lower energy consumption in the manufacturing stage. The overall result is
a stepped change in the carbon footprint of JLR vehicles verified through Life Cycle Analysis tools (by the Vehicle Certification Authority). This approach saves up to 10 tons of carbon for every vehicle produced over the vehicles life** (almost a 15% reduction in real terms). The body and chassis weight saves are focused on the use of light metals (primarily aluminium), with an overall target of 40% weight saving over a conventional steel spot-welded body, delivering equivalent or improved performance attributes. Other lightweight materials such as magnesium and plastics (composite and thermoplastic) are used in the interior and exterior of the vehicle, with a focus on using recycled materials where possible in areas that do not impact on the customer. JLR, (along with one of our materials suppliers) is pioneering a closed loop recycling process to maximise the use of recycled materials for the body. The segregation of “in process” scrap during the manufacturing stages means this material can be re-melted and repurposed as metal to be used on future products. This process further reduces the CO2 impact in the manufacturing stage, and as the number of aluminium vehicles produced increases, we will focus on the end of life re-use of material to again limit the impact of the vehicle on the environment throughout its whole life. For example, the new Range Rover body weighs only 288kg (658lbs) versus the previous model body weight of 498kg (1096lbs), a real saving of over 40% versus the previous vehicle. There are
also significant saves for Chassis (70kg) and 130kg of Power train and vehicle secondary weight saving (depending on derivatives). JLR is the first Original Equipment Manufacturer (OEM) to manufacture aluminium intensive monocoque (unibody) rivet-bonded structures in the same or less hours per car than an equivalent steel body. This holistic approach includes significant weight reduction, improved parasitic losses and lower energy consumption during the manufacturing and customer usage stages, whilst delivering world class desirable vehicles. The rivets used on all JLR LWVs are selfpiercing (they do not require a hole in the panels like a conventional rivet) and are applied mainly by robotic automation (100% in the case of the new XE). JLR together with our suppliers has taken the process from a niche volume application with a rivet to rivet cycle time of more than six seconds (on the 2003 XJ) to a cycle time of under two seconds on the new XE. With the use of multi feed rivet guns and blow feed, there is now no need for gun changes and stopping to replace rivet cartridges during production. JLR’s goal is to deliver desirable products to our customers, whilst improving our fuel economy and reducing vehicle emissions. The LWV strategy is a significant contributor, whilst delivering world class design through development of new formable alloys and unique manufacturing processes. The new Range Rover models for example, have some of the largest and
*Chief Technical Specialist - Light Weight Vehicle Structures at Jaguar Land Rover, UK **Based on data collected from the new Range Rover January/February 2015
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most complex stamped aluminium panels in automotive production, including one piece body side panels, luggage floor panels with more than 300mm (12”) depth of draw and class leading minimum external radii on A-Class skin panels that are comparable to steel, so the customer only receives the benefits of light weight, with no impact on design or vehicle attributes. We have not only improved the fuel consumption of JLR’s LWVs, in most cases we have improved ride, handling, braking and acceleration through weight reduction and lowering the vehicle’s centre of gravity. All of this will help avoid accidents for our customers, but should they be unfortunate to be involved in an accident,
then the LWV strategy also brings further benefits. Reduced vehicle mass means less energy transfer with aluminium absorbing more energy per kilogram than steel. We have also developed special crash crush alloys to absorb more energy in the crash zones and high strength alloys are used in the main passenger safety cell, the result is that all JLR LWVs meet and surpass worldwide safety requirements. For example, the Range Rover exceeds the future Federal roof crush standard, (three times the vehicle weight is applied to the roof to simulate a roll-over accident) thus, is able to take over 100kn
of force with minimal intrusion to the passenger cell. The JLR LWV bodies are also stiffer and more refined than their steel equivalents, as well as having greater durability and corrosion resistance as a result of the bonded joints and inherent material properties of aluminium. We have already applied the technology to our next generation of JLR LWV products; the new Jaguar XE has been announced recently and is part of JLR’s continuing CO2 reduction strategy, with lightest in class aluminium intensive body, a low drag co-efficient of only 0.26 and only 99g/km for the Performance E derivative. We believe there will be other OEMs who will adopt many of the alloys and processes from the JLR LWV strategy to help meet fuel economy and CO2 challenges. That is why we have adopted an open philosophy for intellectual property rights and regularly engage with other OEMs, through industry forums, as we understand that this is not only a JLR challenge, but a challenge which affects the entire automotive industry. The LWV strategy is a well-established part of JLR’s future product DNA. There are no downsides to making vehicles lighter, especially in the Premium segment. It enhances on road and off road performance of our SUV’s, and gives sporting saloons and sports cars a dynamic edge that only comes with reduced weight. t www.jaguarlandrover.com
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The wholly-owned facility, located in the Changzhou National Hi-Tech District, represents a $100 million investment by Novelis to expand its global footprint to serve the rapidly growing market for automotive aluminium. The plant has an annual capacity of 120,000 metric tons.
Aluminium in automotive: This is just the beginning Aluminium has been used in automotive applications for nearly half a century, but only recently has it gained popularity as a material of choice for automakers. James Liu* explains. Weight-reduction efforts in automotive design and construction have increased significantly in recent years. This is in large part due to long term economic, political and social pressures to reduce fuel consumption and CO2 emissions around the globe. As a result, manufacturers are turning to aluminium based material solutions to help reduce vehicle weight, provide for better fuel economy and improve overall sustainability credentials. Strong, durable, lightweight and 100% recyclable, aluminium meets the demands of automakers and the governments and consumers they aim to satisfy. Aluminium vehicle structures, body panels and closures enable more fuel-efficient cars that produce fewer greenhouse gas emissions without compromising safety, comfort or performance. It is the only material that can provide such dramatic weight reduction across the entire vehicle cost effectively, while providing the same level of quality and durability. For driving dynamics and car agility, automotive designers see aluminium as an opportunity for greater flexibility in optimising weight distribution and balancing the weight of the car. As a result, the automotive market is now the aluminium industry’s fastest growing sector. In fact, Novelis projects the use of aluminium in the automotive
market will grow by approximately 30% each year through the end of the decade. Impact on suppliers This is no small shift. And with nearly 40 years of experience in the automotive industry and more than 180 current vehicle models using its aluminium, Novelis is feeling the impact of this market shift in a very real way. As the global leader in rolled aluminium sheet for the automotive industry, the company has responded to the growing demand for automotive aluminium by constructing new automotive finishing lines in the USA, Germany, and most recently, China. Today, Novelis is the only company with automotive sheet manufacturing capability in all three major auto-producing regions of the world – North America, Europe and Asia – and it’s continuing to expand as a result of increasing growth in demand. While shipments to the automotive market represent less than 10% of Novelis’ total shipments today, we anticipate accelerated progress in all of our global regions and automotive market segments, ranging from compact vehicles to SUVs, over the next decade. By the end of the decade, we expect automotive to represent about 25% of our total shipments. Not only do we project a significant shift in
our overall portfolio toward automotive, but we’re also already seeing market demand outpacing supply, and expect it to continue on this trajectory for the foreseeable future. Focus on China China is the latest auto market to join the industry in this transformational shift to aluminium. Just as their peers are doing in Europe and North America, auto manufacturers in China are transforming their designs and processes to meet the growing demand for fuel efficiency and reduced greenhouse gas emissions, a shift that’s being encouraged by the Chinese government’s sustainability agenda. Novelis’ Changzhou plant is China’s first manufacturing facility for heattreated aluminium automotive sheet. The new facility features a continuous heat treatment line for annealing, pre-treating and finishing automotive sheet, supplying customers in China and abroad with highquality rolled automotive sheet for use in vehicle structures and body panels, such as hoods, doors, and fenders. The city of Changzhou serves an important manufacturing base in China’s Yangtze River Delta, and a major automotive manufacturing base. It also leads in the production of new energy efficient vehicles, which is aligned with
*Managing Director, Novelis China January/February 2015
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Novelis’ mission to provide lightweight aluminium solutions. As a manufacturing powerhouse, the Changzhou government has provided support at every stage of the plant’s establishment, from site selection to investment and licensing details. The wholly owned, $100-million plant has a capacity of 120,000 metric tons per year and employs approximately 130 people. This strategic location also has worldclass commercial infrastructure and is close to vital rail lines and deep water ports, so Novelis can efficiently reach its customers in China and abroad. Rolled aluminium coils manufactured at Novelis’ South Korean operations are shipped to the new facility in Changzhou for heat treatment and finishing before delivery to automotive customers within China and other markets. Current Novelis customers for auto sheet include Audi, BMW, Fiat-Chrysler, Ferrari, Ford, GM, Hyundai, Jaguar, Land Rover, Mercedes-Benz, Porsche, Volvo, Honda and others. The new facility allows global customers to source locallyproduced Novelis aluminium automotive sheet in China, as well as source material for production at other sites around the world. For example, Chery Jaguar Land Rover Automotive Company Ltd. (CJLR) recently announced the grand opening of a new plant in nearby Changshu, China. The new Novelis Changzhou plant will be supplying auto sheet to Changshu for use in production in country for the latest models of the Range Rover Evoque and the Land Rover Discovery Sport. Meanwhile in Europe, Novelis continues to be the sole supplier of automotive aluminium for Jaguar Land Rover and now has the capability to provide truly global sourcing, as needed. Sharing global expertise In order to penetrate the market and establish aluminium as a reliable option for vehicle lightweighting in China and elsewhere, Novelis operates as more than just a material supplier, but a global technology partner. Technologists and engineers in Novelis’ global research and technology organisation ensure that all sites around the world receive the benefits of decades of industry expertise in automotive aluminium production. As China’s first heat-treated aluminium automotive sheet facility, Changzhou has an opportunity to bring best-in-class technical excellence and best practices in aluminium to the Chinese auto industry in the early stages. With the help of our network of global automotive aluminium technology experts, this is already happening. Aluminium application in auto body-in-white and hang on parts is January/February 2015
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An interior view of the new Novelis Changzhou facility, which will assist China in meeting its environmental goals and provide customers in Asia and abroad with high-quality automotive sheet for use in lightweight vehicle structures and body panels such as hoods, doors, fenders and lift gates.
developing quickly in China and Asia, and original equipment manufacturers (OEMs) are working closely with Novelis to find ways to increase their use and establish new design practices. As interest continues to grow globally, Novelis engineers and metallurgists are working closely with our customers’ design teams at the early stages of development to help ensure the next generation of vehicles is built to maximise the greatest attributes of aluminium – from strength and durability, to formability and recyclability. Many of the projects at our Research & Technology (R&T) centres around the globe are highly customer specific, focused on developing solutions for customers’ unique automotive challenges and then providing the resulting knowledge base to all of our sites around the world. Novelis engineers and scientists are continuously working to develop new alloys, enabling technologies and processes that leverage the unique properties of aluminium to meet the demands of the automotive industry not only today, but also well into the future. Seeing how quickly aluminium has penetrated the market, we anticipate plenty more to come. Value beyond fuel efficiency Supporting our global manufacturing operations is a recycling infrastructure that allows us to partner with customers on closed-loop recycling opportunities and sustainable manufacturing solutions. By focusing on recycled versus primary aluminium production, Novelis recycles scrap material directly back into the molten metal process. We take back as much of our customers’ aluminium scrap as possible, turning it directly back into the same product again – preserving the value of the alloy and achieving the highest level of sustainability. We call this closed-loop recycling, and the supply chain efficiencies of this closed-loop system are unparalleled, providing tremendous advantages to both the customer and Novelis. We have
closed-loop recycling systems in place with automotive customers in Europe and North America and are looking at how to bring the benefits of closed-loop recycling to China. We also collaborate with our customers to facilitate and increase post-consumer recycling – one of the key sustainability challenges facing both Novelis and the auto industry. It can take more than 15 years before an automobile reaches the end of its useful life, making post-consumer automotive recycling a long-term venture. As more and more aluminium intensive vehicles will approach end of life in the coming decade, Novelis is closely examining how to effectively collect, dismantle and separate automotive scrap to bring more aluminium back into the system. This not only aids our customers in lessening their environmental footprint as regulations continue to evolve, but it also provides a future stream of source material for our production operations. We’re also working closely with our automotive customers to develop products that maintain quality and performance but can be more easily recycled and have a higher recycled content. These advancements enable our customers to make products with a dramatically smaller environmental footprint and further their sustainability goals, as well as ours. As the market for aluminium in automotive applications continues to grow, so too will all the variables surrounding it – from operational capacity to research and technology support to environmental requirements. Our objective is to match this growth in the most sustainable way possible for our business, our customers and the environment. This means expanding into high growth regions; bolstering our global R&T network as a critical pillar of our business; and identifying sustainable sourcing strategies from the beginning, because fuel efficiency and lightweighting is the trend of today, we have only seen the beginning of this trend and it will become even more critical going forward. t Aluminium International Today
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Alumina granules magnified x100. © Claudius Peters
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30 TRANSPORT & HANDLING
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Handle with care Efficient materials handling is a crucial aspect of any operation, and when it works well it ensures the seamless supply of materials to production lines, the efficient storage of both incoming goods and finished product and the prompt dispatch of deliveries to customers. Manual handling is pretty much a thing of the past due to ever more stringent safety regulations and the increasing size and weight of raw and finished materials, with forklift trucks being used to alleviate the strain on the workforce. But which type of forklift to choose? What capabilities should it have? Do you need one primarily for inside work or for offloading and transporting goods around a yard? How do you ensure that your investment is justified in terms of payback and a proven increase in efficiency? Other key issues are Return on Investment, safety, long life operation, easy provision of spare parts and low maintenance – you need this machine to be a reliable workhorse and not just a decorative piece of kit! These issues are faced by the aluminium sector on a regular basis, and one company that focuses on handling and storage is Senior Architectural Systems Limited, which is using a fleet of Combilift forklifts at its manufacturing and warehousing facilities in Doncaster in the North of England. One of the largest fenestration systems companies in the UK today, Senior, provides a range of aluminium systems featuring fully compatible window, door and curtain wall ranges, plus products for shop fronts, roof glazing and secondary glazing. The management at the Doncaster site needed not only trucks for offloading incoming packs of raw materials from HGVs, but also more compact forklifts able
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to manoeuvre material to the production facilities, as well as a machine that would enable space saving storage of stock such as finished profiles. Thanks to the range of forklifts that Irish manufacturer Combilift counts in its current portfolio, Senior was able to source the right mix of trucks from the one manufacturer, each of which is guaranteed to meet these varying and exacting requirements. The first Combilift to be used at the site was a 4t C4000, and after years of operation two new style C4000 4-way models have replaced the initial truck. Combilift’s original and core C Series has proved to be a robust workhorse for all manner of tasks inside and out, and Senior uses its two LPG powered trucks predominantly outside for offloading and loading. New design features include the larger deluxe cab for added operator comfort and the low level exhaust for improved visibility. The Combi-CB was the first forklift to incorporate 4-way manoeuvrability into a compact counterbalance design and Purchasing Manager Craig Turner and Production Manager Mark Burton chose two of these award winning models to be predominantly responsible for taking materials to the production lines. They have partially replaced a previous combination of 4-way reach and counterbalance trucks and their ability to handle both longer lengths and palletised or boxed products in confined spaces offers the high degree
of versatility needed in this area. Combilift offers customisation to its products and in this case the CBs were supplied with a larger than standard cab to comfortably accommodate a very tall operator. Due to the volume of products passing in and out of the 95,000 ft² warehouse, maximum use of all storage space was also a high priority. The Combilift stand-on EST model was therefore the solution as its narrow cab reduces the overall width of the machine for operation in very narrow aisles. “The EST handles the 6.1m long packs in aisles of less than 1800mm wide and to racking heights of up to 12m, so we can exploit every inch of space for very dense storage of stock,” said Mr. Turner. “Guide rollers on the trucks and the guided aisles between racking make it very quick and easy for drivers to steer down the aisles, and this also reduces the risk of damage to both stock and racking.” Electric power was chosen for the EST and CB models, which, like the C4000s, work across two shifts, from 6am to 6.30pm. A key feature of the Combilifts operating at Senior is that they can all be used to handle loads which weigh from 400kg to 1,000kg, both indoors and out and can also be interchanged depending on the task in hand. t Contact www.combilift.com www.seniorarchitectural.co.uk
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SOME ARE BORN TO LEAD Our dedication to making high quality, high performance aluminium puts us above our competitors. That’s why our clients trust us to provide the aluminium that will be used in next generation products. So, whether it’s in aerospace, architecture or IT, our metal is tailor-made for the world we live in. www.ega.ae
Global Excellence in Aluminium
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Handling the aluminium industry This article takes a look at what happened when a major Québec aluminium company commissioned a Québec-based designer and manufacturer of large capacity forklift trucks and industrial equipment to create a compact-sized forklift truck specifically for its plants. It is common knowledge that within Canada’s aluminium industry, the words aluminium and Québec are synonymous. Thanks to Québec, Canada’s aluminium industry is an international heavyweight, ranked third globally after China and Russia. The province is home to 10 of Canada’s premier fusion aluminium plants, of which four were deemed the most efficient in the world in 2008. Its aluminium sector accounts for 90% of Canada’s production of aluminium, and generates $4.1 billion for Québec’s economy. Small wonder, then, that advocating for the continued development and sustainability of the aluminium industry, both at home and abroad, has become a sacred trust for Québec’s aluminium community. For one major Québec aluminium company, honouring the obligations of an industry that prides itself on relentlessly pushing boundaries began with addressing certain operational issues that prevented it from elevating its own standards to the next level. Teaming up The aluminium company was grappling with an in-plant issue that affected both production and maintenance, and when they approached Vallée, a Canadian company that specialises in the design and manufacturing of large capacity articulated four-wheel drive forklift trucks and industrial equipment, they had a very specific demand: Develop a forklift truck that could operate in tightly confined spaces to optimise the use of the plant’s square footage, and by the way, please make it thoroughly maintenance-friendly as well. The forklift truck would have to adhere to specific dimensions for it to operate at full capacity within the plant, and like the size of the vehicle, the time and effort required to maintain it would also have to be reduced. In other words, Vallée was being tasked with developing equipment that was not yet available on the market for the aluminium industry. Vallée responded by customising its engineering, intensifying its research and development, and rethinking its
manufacturing process to effectively create a new breed of forklift trucks. This tailored approach allowed for an organic synergy to grow between client and company, as Vallée constantly kept the aluminium company involved in the development process of the forklift truck, seeking their advice throughout, working in tandem with them to develop and ascertain the right dimensions required for the new vehicle to work as fluidly and as naturally as possible within the plant. The relationship that was cultivated ensured that the aluminium company and their needs were at the centre of the entire process, making certain that all demands were accommodated and satisfied. The 2CR18C From this collaboration emerged the 2CR18C: A two-wheel drive, rigid-chassis, compact-sized forklift truck capable of entering and working within spaces previous forklift trucks were difficult to access. Adding to the pioneering nano stature of the 2CR18C, by forklift truck standards, and its ability to move freely virtually anywhere within the aluminium plant, is the forklift truck’s size-to-loadcapacity ratio. For a small forklift truck, the 2CR18C still weighs in at 8.2 metric ton (18,000 lb.) capacity at 610mm (24 in.) load centre and/or 10 metric ton (22,000 lb.) capacity at 610mm (24 in.) load centre. And the more contained weight distribution also makes the 2CR18C a
more stable forklift truck that can be operated more confidently and safely. There’s no doubt that the 2CR18C is a model exercise in fully understanding an industry’s needs and the environment in which it operates, and then tailoring a product that is 100% responsive. Vallée’s compact-sized forklift truck has enabled the aluminium company to optimise its plant space and curb maintenance and repair times, which combined have resulted in a 33% increase in plant productivity. “Vallée’s mission has always been to develop products that can significantly contribute to our clients’ productivity and agility,” comments Vallée’s Chief Executive Officer Frédéric Beaulieu on his company’s dedication to developing products around the specific and unique demands of each client. “Our success is defined by theirs.” But what about innovating beyond the original mandate, going above and beyond what is required? This other Vallée trademark is also visibly manifested in the 2CR18C, whose full-view cab with overhead window and high-visibility mast reduces operator blind spots to 15%, which place Vallée among the most distinctive forklift trucks for visibility. For a Québec aluminium industry that prides itself on high workplace safety standards, this extra feature is a welcome addition. t Contact www.vallee.ca
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34 TECHMO CAR SpA ADVERTORIAL
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Transport solutions Techmo was founded in 1961 in the Venice area as manufacturer of special vehicles to automate activities previously performed manually. Few years later it was the first company in the world to conceive and fabricate specialized vehicles for the Aluminium Industry making easier operators’ life in the Aluminium potrooms, increasing the operation efficiency and reducing the risks for the workers.
minium Industry Major Projects and EPCM firms worldwide in the last decade. Among the major projects it is interesting to mention Rio Tinto Alcan for their Kitimat Modernisation Project, EGA for their EMAL Project Phase 1 and 2 in UAE, Ma’aden Project in Saudi Arabia, Alba in Bahrain, Hindalco for both Mahan and Aditya Projects in India, Sohar Al Project in Oman and Vedanta in India.
Since that time Techmo has been focused on supporting the industry with innovative tailor-made solutions aimed to supply reliable, user and environment friendly equipment that are appreciated by the most demanding Customers located in more than 40 Countries, spread all over the world. Today Techmo is a modern company, backed by years of experience, that recently added to the historical main building a brand new manufacturing workshop equipped with the most efficient facilities and instruments. Nowadays the range of Techmo vehicles covers nearly the entire requirement of the Aluminium Smelters, both in the Primary and in the Downstream Industry, as well as other non-ferrous metals as Magnesium, Titanium and Zinc. Besides the Diesel version, the vehicles can also be supplied based on electrical ones, powered by battery. Next to the mobile products, the company has developed and supplied wide sets of stationary equipment for handling, cleaning and preheating of crucibles, tapping and siphon tubes, anodes and all the wearing components in smelters, that need to be constantly maintained to keep high performances. The synergic advantages achieved by these big families of products played an important role in the successful result of being selected by most of the Alu-
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ALUMINIUM INTERNATIONAL TODAY BUYERS’ DIRECTORY 2015 As the leading resource for the aluminium production and processing industries, the Directory reaches the most senior buyers and suppliers in the business. Distributed to more than 50 countries and read by thousands of contacts, it contains a comprehensive alphabetical listing of company and contact details.
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January/February 2015
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Aluminium International Today
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Since 1955
36 MECFOR ADVERTORIAL
www.aluminiumtoday.com
Quick return on your ROI: optimisation of your casthouse fleet vehicles Primary Aluminium casthouses manage to perform their furnaces charging and
Contingency
maintenance tasks using multifunctional vehicles.
The use of two multifunctional vehicles with a series of detachable tools ensures that all casthouse operations can be carried out by one or the other. This flexibility allows
With today’s smelter production capacities, casthouse operations need to be done quickly
interchanging the tools from one vehicle to another. Reliability engineers, will be pleased to
and efficiently. Countless operations could benefit to be looked at in a different angle.
find out that the vehicle utilisation is optimised and that sturdy tools have extra-long shelves
What if operators could get away, as much as possible, from manual operations? What if
life compared to the industry average.
almost all casthouse operations could perform with one multifunctional vehicle, rigid or articulated? What if multifunctional vehicles could help to streamline and standardise the
Cost reduction
process while helping in reducing the maintenance costs? For several years, a Canadian
When casthouse operations are carried out more quickly, operating costs decrease and
company has been offering a unique concept with extreme versatility. It is called the ‘Mecfor
production increases. As production efficiency is based on reducing operating times while
Casthouse solution’, where you can have as many tools as needed that quick connect to a
maintaining the quality of the cast metal, the availability of optimised tools in the casthouse
multifunctional vehicle.
is essential.
Easy, fast and efficient
Increased Productivity
The numbers of dedicated vehicles required for all the furnace tending can be significantly
Smelters using the Quick Connect technology system have enjoyed a quick return on
reduced. Multifunctional vehicle with special engineered customised tools can lower the
investment, while improving the safety of the workers. Increased productivity goes through
maintenance expenses, lower the operation time and the associated energy loss, thus
a careful selection of the appropriate tools. Significant savings are achieved with the
improving the metal quality and ensuring the safety of the operations. Switching from one
protection of the furnace refractories, the reduced number of vehicles required and the low
tool to another is done in less than 30 seconds.
mechanical maintenance. Safety, productivity, lower costs and ergonomics were the major
Mecfor Quick Connect system connects hydraulically onto a variety of modular tools which
factors considered in the design of the multifunctional vehicle with an automatic tool Quick
perform specialised and dedicated tasks such as skimming and cleaning the furnace, scrap
Connect system.
charging, alloy material charging and stirring. Tools currently available, but not limited to, are: charging clamps, fork rotators, scrap and skimming tub dumping system, dumping
Conclusion
bucket, scrap pusher, scrapers, rakes and skimming tools.
The goal to increase productivity, to protect the furnace refractory and reduce the number
The tools are rigidly held to the vehicle. The hydraulic power on the modular tool opens
of vehicles can be achieved without compromising on the safety features and ergonomics of
up a range of possibilities for the development of tools to better fit with today’s cast house
the equipment. A number of Primary Aluminium cast houses and rolling mills appreciate
realities. The full casthouse cycle can be done by the operator using only one vehicle without
working with the multifunctional vehicle and the interchangeable tools. Each tool is
leaving the comfort of its air-conditioned cabin. In addition, the cabin is designed in a way
designed and adapted to the furnace shapes. Every operation is studied and analyzed taking
that visibility is the key: A full view at all times, especially with the double direction option.
into account the casthouse layout.
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January/February 2015
MECFOR.indd 1
Aluminium International Today
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Pagine 2013 A3 esecutivi 2013_08_08_qxd8_A3 esecutivi 25/09/13 11.55 Pagina 28
DANIELI ALUMINIUM TECHNOLOGY FOR COMPETITIVE HOT AND COLD PLATE / STRIP AL PRODUCTION
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ALERIS DUFFEL BELGIUM Complete cold rolling plant featuring a 6-high Diamond mill designed for EDT rolling for specific automotive applicatons. DAN_ECO2 fume cleaning and oil recovery systems together with DAN-purity filter system allow green production.
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ARCHITECTURE 41
The age of aluminium The architectural possibilities and aesthetic appeal of aluminium are some of its most enduring features. However, it is only recently that its green credentials have established its position as the material of choice for 21st Century building design. Here, Michael Riding* looks at two recent projects that highlight the versatility if this material. First used in construction more than 100 years ago, aluminium shook up the world of architectural design. Iconic buildings such as the Empire State Building, which was completed in 1931 and makes extensive use of aluminium, showcased to the world what could be achieved. Aluminium facades are highly suitable for these kinds of construction projects because it is strong, resistant to corrosion and has high aesthetic appeal. The material is lightweight, too – much more so than steel, yet with comparable strength. This characteristic unlocked a whole new world of possibilities as it gave designers the ability to create open, elegant designs that looked so different to the heavy masonry monoliths that people had been used to seeing in the architectural landscape. Pair this with its ability to be recycled over and over again and it is hardly surprising that it is now specified on most projects. In terms of its ability to be recycled, it is estimated that of the 900 million tonnes of aluminium produced since 1880, three quarters is still in productive use, 35% of which is in buildings. As more architects strive for a greener build, they are turning to aluminium. It has helped that its sustainability credentials have been recognised by the BRE (Building Research Establishment), which gives aluminium rainscreen cladding an ‘A’ rating as defined in the BRE Green Guide to specification, principally because of the materials lightweight nature, and the fact that framed structures generally score better than their masonry counterparts. Aluminium exposed Eltherington recently supplied an architectural aluminium metalwork solution to create solar shading on the new Redcar Leisure Community Heart. The facility is an all-weather sport and leisure centre that includes swimming pools, a business centre and multi-functional *Director, Eltherington, UK Aluminium International Today
ELTHERINGTON.indd 1
meeting and community spaces for Redcar residents and visitors to the town. The architect specified purpose made frames in expanded aluminium mesh, and an extruded frame welded and bonded together to create solar shading units. The company supplied these with an anodised Anolok 545 medium bronze and an Anolok 541 light bronze finish, which helped to create the modern, distinctive facade on the £31m development. The solar shading was used across the facade to enhance its architectural aesthetic and provide the building with energy performance benefits. The perforated mesh panels’ ability to reduce solar gain minimises reliance on energy intensive mechanical cooling systems during the summer months, and adds another architectural dimension to the building. Tough and hardwearing, the aluminium solar shading system was essential as the building is in a coastal location, exposed to the North Sea. Performance in extreme and continuous weather conditions is vital for many buildings, and is one of the reasons why aluminium was specified for the facade. Living design On other buildings, aluminium has been specified because of its ability to remain unaffected in severe waterlogged conditions. A recent example of this was an aluminium door and window surrounds for a green, living wall in London.
Durability was at the forefront of the decision making process as the designers were conscious that the surrounds would be in constant wet and dry conditions. That’s because water would be used to hydrate the ‘living wall’ and the plants themselves would also trap some of this water against the facade, creating prolonged humid conditions. Aluminium was therefore specified principally because of its low maintenance properties, and the fact that is 100% recyclable. The latter was important because it helped retain the ‘living walls’ green credentials. The client was committed to using only sustainably sourced materials throughout this development. The door and window surrounds were supplied in Polyester Powder Coated (PPC) aluminium. The completed project achieved a BREEAM ‘Very Good’ rating for environmental impact, and a Silver standard SKA rating. Conclusion Where now for the aluminium? So far the indications are good. By utilising the centuries old technique of framed structures covered with lightweight aluminium, we are closer to an architectural utopia. These elegant, open and naturallylit designs have lower embodied energy than their masonry counterparts, yet still create distinct, appealing buildings that add interest to our architectural landscape. One thing remains constant throughout and that is; only technological advances in building materials and manufacturing techniques allow architects to create revolutions in design. Recent advances in the supply side of our industry has opened up greater possibilities than at any other time before and as a result few other materials have the ability to define an age in the way that aluminium is doing. t
www.eltherington.co.uk January/February 2015
1/20/15 12:41 PM
42 TRADING
Aluminium trade wars As demand and production capacity for aluminium products continue to rapidly grow, so does the likelihood that competition will lead more manufacturers of specific aluminium products to seek international trade remedies, in the form of duties or quotas, to address unfairly low-priced or subsidised imports and surges of fairly-traded imports. Benjamin Blase Caryl* explains. Various trade remedies already exist on imports of aluminium extrusions, aluminium foil, aluminium oxide, aluminium radiators, aluminium wheels, collapsible aluminium tubular containers, aluminium dish wear, and presensitised offset aluminium printing plates. These trade remedies exist in large developed economies (Australia, Canada, the European Union, and the USA) as well as in emerging and developing countries (Colombia, India, Indonesia, and Mexico). However, this may only be the tip of the iceberg. Imports of many other types of aluminium products are flooding into major markets, as demonstrated here using the U.S. market as an example. Exports of these and other aluminium products will be susceptible to trade remedies if they begin to “injure� the competing domestic industry. Thus, everyone in the global aluminium supply chain - manufacturers, fabricators, importers, distributors, and end-use purchasers - should understand how trade remedies affect their ability to compete in the global economy. After first providing a basic overview of the indicia of injury required to obtain trade relief and the three main types of trade remedies, this article highlights the opportunities and challenges presented by trade remedies to the aluminium industry.
Import source
2013 YTD
2014 YTD
Percent change
Aluminium plates (rectangular, not clad, not alloyed) (HTSUS 7606.11.3030) China
12,866
33,668
162 %
Total Imports
13,557
34,975
158 %
Aluminium Sheet/Strip (rectangular, not alloyed) (HTSUS 7606.11.3060) China Total Imports
4,003
6,558
63 %
28,367
27,162
-4.2 %
Aluminium Windows and Frames (HTSUS 7610.10.0010) Colombia
3,849
6,978
81 %
Mexico
1,705
6,080
257 %
18,008
29,044
61 %
Total Imports
Aluminium Alloy Bars and Rods (HTSUS 7604.29.30) Russia Total Imports
1,666
5,603
236 %
10,281
16,203
58 %
55 %
Aluminium Powder (HTS 7603.10) Australia
3,939
6,093
China
1,188
1,742
47 %
Total Imports
9,258
13,625
47 %
Source: U.S. Department of Commerce and U.S. International Trade Commission.
U.S. Aluminium Imports: January-September 2013 and 2014 Quantity (1,000 kilograms)
*For further information about specific national trade remedy regimes or advice on possible or ongoing trade remedy proceedings, contact: bcaryl@kelleydrye.com January/February 2015
TRADING.indd 1
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44 TRADING
10 signs that your company may be injured by imports The existence of the below factors may indicate that your company has been injured by imports and that your industry should consider pursuing possible trade relief: 1. Low-priced imports in your home market that compete with your products; 2. Increasing volumes of imports from one or more countries; 3. Decreases in your domestic sales, particularly lost sales that can be traced back to the imports; 4. Lost market share (even if sales volumes are not decreasing, they may not be increasing in line with any increase in home market demand); 5. Pricing pressure, either in the form of decreasing sales prices or sales prices that do not increase enough to cover any increased production costs; 6. Decreases in your domestic production and capacity utilisation; 7. Worker layoffs or reductions in the number of shifts, hours, or wages; 8. Closures or temporary shutdowns at your domestic manufacturing facilities; 9. Decreases in capital investments and research and development related to your domestic manufacturing facilities; or 10. Decreases in your profitability and return on investment related to your domestic manufacturing operations. All of these factors are not necessary to pursue a trade remedy case, but the more that apply the better your case will be. Types of Trade Remedies There are three main types of trade remedies. The first two, antidumping and countervailing duties, address “unfairlytraded” imports, while the third remedy, safeguards, address fair but injurious imports. The rules of the World Trade Organisation (WTO) govern the general standards, requirements, and processes for each of these, as described below, although some important variations (beyond the scope of this article) in each national trade remedy regime exist. January/February 2015
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Antidumping and Countervailing Duties National antidumping (AD) laws address “dumping”: When foreign producers or exporters from a particular country or countries sell a product in the target market (e.g., the U.S.) for less than the cost of production or less than it is sold in their home market or a third-country market. Countervailing duty (CVD) laws address subsidies - such as cash grants, discounted energy, free land, interestfree loans, and tax credits for exports - provided by foreign governments that enable their producers to export goods at unfairly low prices. AD and CVD investigations begin with a petition filed by the “domestic industry” - manufacturers of the product that competes with the “subject imports” whose collective output constitutes a major proportion of the total domestic production of that product - to their government. If the petition meets all of the statutory requirements, the government initiates an investigation that typically takes about a year to (a) calculate the level of subject import dumping or subsidisation and (b) determine if the subject imports are injuring, or threatening to injure, the domestic industry. If dumping/subsidisation and injury are found to exist, the government issues an AD or CVD order that imposes duties designed to offset the unfair trade by creating a level playing field. The duties are not designed to completely block the subject imports, but to create fairlypriced imports. AD and CVD orders apply for five years, and are renewable in fiveyear increments if the domestic industry demonstrates that removal of the order would lead to a continuation or return of dumping/subsidisation and injury. Safeguards Safeguard law addresses fair, but excessive or disruptive, import competition from all sources. The standards for safeguards are more stringent and the duration of the relief is shorter than that for AD or CVD orders because the potential relief is universal. Specifically, imports must be increasing and be a “substantial cause” of “serious injury” or pose an imminent threat of injury to the domestic industry. Safeguard investigations also begin with a petition filed by the affected domestic industry to their government. If the domestic industry demonstrates that it has been seriously injured by the relevant imports, then the government may impose safeguard measures, which can include increased duties, tariff rate quotas (the application of a higher duty rate on imported goods after exceeding a specified volume), and/or quotas (quantitative
limits on subject imports). The import relief initially granted may not exceed four years and may be extended only for an additional four years (developing countries may extend the relief for up to 10 years total). Also, because safeguards are intended to merely provide an adjustment period for the domestic industry to restructure itself to better compete with fairly-traded imports, the import relief must be progressively liberalised (e.g., the safeguard duties progressively decrease, or the safeguard quota increases, each year in effect). For that same reason, countries subject to the safeguard having a substantial interest as exporters of the covered product may suspend a similar level of trade concessions or obligations (i.e., tariffs or market access for a similar value of imports) to the country imposing the safeguard. Safeguard proceeding determinations are frequently much more political (both domestically and geopolitically) than AD and CVD determinations. For example, in the U.S., while the President is not involved in AD and CVD determinations, the President has broad discretion to decide whether imposing a safeguard measure is in the “national economic interest” of the U.S., and if so what form, amount, and duration that measure should take. Given the discretionary and political nature of safeguards, many developing and emerging countries prefer using safeguards over AD or CVD investigations. Indonesia is currently the most frequent user of safeguards. Opportunities and challenges presented by trade remedies Trade remedies generally cause import prices to rise, import volumes to decrease, or both. The resulting benefits to the domestic manufacturers of the competing product may include reversing many of the ten signs of injury noted above, such as regaining customer accounts lost to foreign producers, increasing prices that had been depressed by low-priced imports, reopening shuttered factories, rehiring workers who had been laid off, increasing capital investments, and improving the industry’s financial performance. On the other hand, trade remedies create significant challenges for companies that import the subject product as part of a global supply chain, including manufacturers and fabricators of downstream products. Importers are liable for any applicable AD, CVD or safeguard duties and cannot be reimbursed by foreign producers or others. These duties can range from a few percent to well over 100% of the product’s value. Importers also have substantial uncertainty and lack of control over the Aluminium International Today
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TRADING 45 5
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trade remedy investigations and reviews. The government does not determine the amount of AD/CVD liability until the final assessment, well after the importer posts a cash deposit estimate of duties. Importers must rely on their foreign supplier to cooperate with the government’s investigation or review to determine their duty liability. Moreover, importers could lose access to a foreign supplier altogether for covered products due to safeguard quotas or tariff rate quotas, regardless of the price one is willing to pay. As a result, many companies may restructure their supply chains to avoid suppliers covered by a trade remedy. Bottom line for the aluminium industry Aluminium product manufacturers and fabricators should monitor the 10 signs of injury laid out above. If you believe your company or industry may be injured by imports, independent experts (trade attorneys and economists) should assess the merits of your case and develop a strategy. Timing and data trends are absolutely critical to a successful trade remedy case, as the government assesses
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injury and import data during the relevant “period of investigation” (typically the three most recent years). An effective trade remedy strikes the right balance in defining the product as broadly as possible to avoid circumvention of the order, but narrowly enough to ensure that the product definition is clear and enforceable by customs officials. For example, the U.S. trade remedy order on aluminum extrusions from China has been subject to 56 separate “scope rulings” to determine if particular products - ranging from water heater anodes to shower door kits to boat and dock ladders to solar panel mounting systems - are covered by the order, indicating a significant degree of uncertainty about what is covered. The product definition also determines what companies will comprise the “domestic industry” in the case, which in turn determines the dataset for the injury determination. Use of independent experts is often essential for a coalition of domestic producers to avoid antitrust or competition law liability resulting from individual companies sharing confidential data or pricing information. Independent experts are also able to determine if
dumping or subsidisation exists. Manufacturers that export should be aware of any trade remedies covering their products and understand their domestic and export pricing to ensure that they export at fair prices to avoid being subject to trade remedies in their export markets. If your exports are targeted for trade remedies, you should cooperate in the investigation to avoid losing access to important export markets (or vital supplies if you are exporting to affiliates). Importers should conduct due diligence on their suppliers and products, multisource, and monitor national publications (such as the Federal Register in the U.S. and the Official Journal of the European Union) that announce the initiation, opportunities to participate, and final results of trade remedy orders. Importers may also participate in trade remedy investigations, primarily in the injury phase of the proceedings, to obtain the most favourable result. t References See Kathleen W. Cannon & Benjamin Blase Caryl, Relief from Unfairly Traded Imports, ExecSense eBook (2013).
16.01.2015 09:14:45
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46 COST MODEL
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Benefits of using a technical process cost model ‘Model’ often means different things to different people, and is likely to be dependent on the circumstances. ‘Technical process cost’ model is therefore likely to be even more confusing, possibly even meaningless, as to its purpose and nature. The following article will describe one particular example of this genre, developed by Innoval Technology, and explain how it can be used to assist with many familiar process engineering developments. By Andy Darby*
To attempt to put the Innoval model type into context with those that have been discussed by others over the years, it is a ‘process-based’, ‘integrated physical’ and a ‘technical’ cost model. All these descriptors taken together mean is that the series of process operations (items of plant equipment) considered include some elements of predictive behaviour – involving the use of algorithms to estimate aspects such as heat transfer, chemical reaction and machine capacity for example. In this way, the user’s data inputs can be confined to more-easily identifiable process parameters such as line speed, target temperature, residence time etc. and then the model calculates and predicts the resulting outcomes. Simulating the behaviour of the real process as far as possible. Such models can then become an important component in the larger ‘toolbox’ that any business should have at its disposal. “Why use this type of model at all?” Quite simply, the use of such models, indeed most models, means that otherwise expensive and time-consuming trials or experiments can be carried on ‘processes’ without the need for any disruption to the real production lines or without jeopardising very expensive equipment, materials and people. “Whatif” scenarios can be safely explored and tested thoroughly from the comfort and safety of…, well anywhere really.
Natural gas
Pre treatments
Top 5 variable costs [€/’000M2]
Electricity
Public side lacquer Internal lacquer
Fig 1. Illustrative Can End Stock (CES) ‘top 5’ variable costs summary (taken from a recent Innoval cost model study)
“Costs? What costs?” Increasingly these days, financial costs, e.g., the costs of energy supplies, raw materials, disposal of wastes and byproducts, labour etc. are ever under scrutiny. In the simplest configurations, so-called ‘variable’ and ‘fixed’ costs are usually included. ‘Variable’ being the term used to encompass those costs which scale with production effort; ‘fixed’ being those that are, sadly and inevitably, present even at zero production. There are other costs too; the costs of finance for example. Many companies are required to borrow money in order to fund capital equipment expenditure (CAPEX). Not only does the principal require to be repaid, but the interest on that loan also
requires servicing. In more recent times, there are other ‘costs’ that many companies now wish to consider too. Environmental impacts are also ‘costs’ – consequently, the carbon footprint of a particular product (expressed in terms of its ‘carbon dioxide equivalent’ [kg CO2 eq]) is often a metric that is used and reported. The largest cost ‘consumers’ in a process sequence or ‘line’ are not always obvious. Frequently, they can be become the stuff of legend and myth. For example, aluminium sheet is often coated with paint or lacquer for a variety of purposes. These coatings traditionally require the use of a thermal ‘curing’ or ‘paint baking’ cycle – being passed through a large heated oven or
*Senior Consultant Engineer, Innoval Technology January/February 2015
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48 COST MODEL
hot box to evaporate any solvent present, and to bring about the chemical and/or physical transformation of the coating. It is perhaps not surprising that, given the large physical size and presence of these curing ovens, they are assumed to be the most expensive parts of the process – especially since they do consume large amounts of electricity and/or natural gas. It was a matter of some consternation to a client then, when process cost modelling revealed that it was actually the costs of the paints and lacquers that were the largest cost items (Fig 1). The corollary of costs in many cases is ‘yield’ or ‘recovery’. “How much do I get out, for the amounts I put in?” It is often reasonably well known how efficient a particular process step is in terms of mass-in and mass-out. The pile of inevitable scrap that builds up alongside the process equipment makes the evaluation all too easy. Where processes are ‘closed’ (scrap or by-products are tidily removed away automatically and hidden from view), or processes are closely sequential (as is the case in many continuous aluminium sheet processes), identification and evaluation of discrete process recoveries can be more difficult to access. Models can assist in the processby-process recovery calculations – leading to the possibility of identifying where any significant losses are really occurring, and hence revealing where management attention should be focused to best advantage. “What goes in, comes out. Unless it stays there” This is undoubtedly a truism, one of the “Chemical engineering 101” statements often spoken at the start of such a degree course. In steady-state models (‘timeaveraged’ models), it is unusual to deal with fluctuations in ‘work-in-progress’ (WIP) or inventories. What goes in, does indeed come out – either as product, or as a waste, or by-product. The aluminium industry prides itself in being good at recycling. Most of the processes used will generate aluminium metal waste or scrap – be it large pieces such as butt ends sawn off from the ends of cast ingots, or pieces chopped of ingots being rolled (croppage), or edge trim (thin widths sliced off the sides of sheet being rolled), down to chippings and swarf generated when sawing or scalping (surface milling prior to rolling). Any process model should be capable of handling this recyclate or ‘feedback’ material, and re-introducing it into the process flow scheme at a suitable point. The concept and practice of recycling does have its pitfalls too however. Being self-sufficient in the capability of reJanuary/February 2015
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Process when new 1000
1
2
3
4
5
6
100%
98%
98%
98%
98%
98%
2
3
4
5
6
95%
95%
95%
95%
1000
106 Over a period of time...
1000
1 100%
(process 1 reaches maximum capacity) Revamped, but a fault exists...
1000
95%
1000
292 1
2
3
4
5
6
100%
98%
98%
98%
60%
98%
(process 1 CANNOT meet requirements) Process 1 is running at FULL CAPACITY... 1000 (... and process 5 is located miles away)
1292
1000
807 1 100%
1292
2
3
4
5
6
98%
98%
98%
60%
98%
577
715 (Productivity suffers...)
Fig 2. Internal recycling can have unexpected consequences (or benefits – such as fault diagnosis) (NB. individual process recoveries are shown as ‘%’ values)
processing one’s own scrap can lead to process paralysis. Real-world process equipment can appear to be very busy, every hour of every day, without being truly effective: A notable example being foundry melting furnaces. With reference to Fig 2, the careful use and analysis of the model-generated process mass flows reveals that a significant amount of the furnace capacity (process item ‘1’) is actually only reprocessing scrap generated further down the process line. The ‘internal’ recycle loop has grown and grown until it has hindered the main business – new input- output material flow. This links back also to the earlier comments about ‘recoveries’ and the importance of knowing what they are and also, what they should be. Better individual process recoveries means less multiple re-works (and multiple ‘repeat’ usages of energy sources and other raw materials) and better profitability. Another interesting, and quite recent development by some producers and end-users of aluminium materials is the notion of ‘recycled content’. This is often little more than a marketing “smoke and mirrors” exercise. There is little alternative when the global market (or the worldwide ‘pool’ if you will) for aluminium products is growing, other than to introduce fresh ‘primary’ (smelter) metal into the system. In current ecological (Life Cycle Assessment or ’LCA’) terms, this is the aluminium that carries the highest environmental ‘burden’ of all – all the primary energy sources (coal, oil, gas, water, nuclear etc.) that are required to make it. Conversely, the current thinking is that so-called “end of life” materials – beverage cans that have been used for their intended purpose; aluminium window frames from buildings being demolished; or overhead power cables
being renewed etc., have their inherent environmental burdens notionally ‘reset’ to zero (or some lower value compared to primary metal). The ‘greenest’ solution, therefore, would be to use 100% endof-life, recycled metal in a new product. Since such metal is almost always dirty, or contaminated with other materials, this approach comes at an (increased) price: The recyclate must be re-processed to remove the unwanted fraction and make it readily handleable again. Not surprisingly then, the introduction of ‘process scrap’, also known as ‘prompt scrap’ or ‘in-house’ scrap, as a clean and convenient alternative source of input metal to the whole process has led to increased ‘recycled content’ claims being made. Yes, ‘recycled’ material, but not ‘recycled’ within the ‘spirit of the ecological rules’ currently being used to try and reduce our use of limited and precious natural resources. Numerically these two approaches are summarised for the example of making aluminium alloy ‘AA5754’ from both primary metal or from a true ‘end-of-life’ scrap source such as mixed used beverage can (UBC) scrap in Fig 3. Processes are not always standalone. They can come in twos and threes As well as being able to use process models to evaluate process capacity, i.e., “How many tonnes can be made using the equipment installed?” models (and combinations of models) can be used to determine not just how many, but what size (capacity) does the equipment need to achieve the desired output. Often this type of calculation is necessary because the individual interconnected processes are themselves a complex series of sequential operations. Aluminium International Today
1/20/15 12:38 PM
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North American Aluminum Trends 2015 8-10 March 2015, Wild Dunes Resort, Isle of Palms, Charleston, SC, USA
Audience profile
KEYNOTE SESSION An introduction to American specialty alloys advanced auto grade aluminum mill by Dr Roger Boggs, Founder and CEO, American Specialty Alloys
Confirmed speakers include • Chester Rousch, CEO, JW Aluminum • Paul Williams, Manager, Aluminum, CRU • Ed Meir, Metal Analyst, Intl FC stone
• Charlie Durant, Principal Consultant, CRU • Matt Chamberlin, Head of Strategy and Implementation, LME • Mike Southwood, Senior Consultant, Aluminum, CRU
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50 COST MODEL
A particular example would be the casthouse. In many aluminium plants, the casthouse is a sequence of melting furnaces, holding furnaces followed by a casting machine of some sort. There are many parameters that are normally known or specified when describing this operation: The number of ingots or billets required to be cast per annum; the dimensions of these castings; the speed at which they can be cast; the number that can be concurrently-cast (“strands”); the time it takes to reset the casting machine in between casting events etc. etc. All of these have an impact on the size and number of holding furnaces that are necessary to provide the required quantity of molten aluminium at the required flowrate, and at the required number of times each day. This further feeds back to the melting furnaces required. Each of the furnaces also has a number of necessary activities in order to make it function properly – metal charging, heating and melting, drossing, composition adjustment, metal transfer from one furnace to another, and so on. These logistical events have certain given overlaps and define the operation of the casthouse as a whole. Suitable models can not only help determine the hardware required, but rapidly and cheaply explore alternative arrangements – such as capability for any future expansions or effects of changing casting dimensions to suit new customers with wider capability rolling mills for example: “How many ingots can we cast per year at 2100mm wide with our existing casthouse, instead of the 1650 mm we currently cast?” “What are the other consequences of doing so? Are there any?” Well, yes, there are. A short story-board is presented in Fig 4 summarising the producer’s dilemma. A simple example perhaps, but it illustrates that it isn’t just the casting machine that needs to be considered. With the integrated casthouse model available this took a few minutes to investigate. The originally-designed furnace and casting machine combination so well-suited to its original purpose may not be as flexible as imagined. Plus, the production short-fall (revenue) that a change in casting size would create must be made-up by other means. How can models be made readily available? One of the most attractive features of computer-based process models is that, with a little forethought, even quite detailed and complex individual process models can be made into ‘building blocks’ – process descriptions that can January/February 2015
cost model innoval.indd 3
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PRIMARY-BASE ROUTE
SCRAP-BASE ROUTE PRODUCT AA5754 (38742tpa)
EoL 0% Recycled 100%
Process scrap
20880tpa
Prime
37370tpa
Master alloys
3000tpa
A Si Fe Cu Mn Mg
12860tpa
External scrap
EoL 100% Recycled 100%
96.4% 0.14% 0.28%
20880tpa
Process scrap
EoL 0% Recycled 100%
0.33% 2.85%
25710tpa
Prime
1800tpa
Master alloys
Recovery 63%
EoL content (100% x 12860)/61250 = 21% Recycled content (100% x 33740)/61250 = 55%
EoL content (0% x 20880)/61250 = 0% Recycled content (100% x 20880)/61250 = 34%
Fig 3. AA5754 made with primary aluminium or with recycled UBC scrap (cost model output from an Innoval project study) EXISTING ARRANGEMENT 1650mm x 660mm x 7000mm ingots, DC casting 3 strands per drop (casting platen has a maximum mass limit of 65 tonnes) Casthouse has 2 x 100 tonne melting furnaces and 1 x 80 tonne holding furnace Casting machine is producing approximately 94000 tpa CUSTOMER REQUIRES WIDER INGOTS If only the ingot width (2100mm) is altered, Platen mass limit is exceeded WHAT CAN THE EXISTING FURNACES & CASTER SUPPORT? 2100mm x 660mm x 7000mm ingots, DC casting 2 strands per drop produces only approximately 60000tpa AND 1 x 100 tonne melting furnace is left idle WILL THE CUSTOMER ACCEPT SHORTER INGOTS? 2100mm x 660mm x 5600mm ingots, DC casting 3 strands per drop still only produces approximately 60000tpa BUT all equipment is in use
Fig 4. Option exploration in response to customer requirements (using Innoval’s technical process cost model)
repeated or duplicated, just like having a rubber printing stamp, and hence model descriptions of complex process ‘lines’ can be created quickly and easily. The forethought is required to ensure that the flow of crucial process information (parameters describing temperatures, speeds, material dimensions etc.) is maintained and managed from process ‘module’ to ‘module’. One of the most readily accessible tools available to any aspiring process developer or plant operator is Microsoft Excel (or any other spreadsheet). This software environment lends itself very well to a modular, sequential process model: Each worksheet can be defined as a stand-alone process description; ‘global parameters’ such as unit material costs (gas, electricity, water etc.) can be defined in many different ways; technical calculations can be restricted to cell-based computational structures (and this should always be the primary aim of any model builder), or more complex algorithms can be programmed using either the provided VBA (Visual Basic for Applications) or, as
an even more advanced development, the provision of compiled computer code ‘dll’ or ‘COM’ objects. The Innoval cost models developed over many years have used combinations of all these approaches. Generally the more complex the process being modelled, the more likely the need to use a more sophisticated background computational code. Is there a limit to what processes can be modelled? Probably, but so far we have been sufficiently ingenious to adequately describe all the processes we have encountered with sufficient physical detail to allow useful, predictive behaviour. Although these ‘models’ are not the detailed, in-depth physical models used in, say, the Innoval Rolling model or our detailed thermal models, they provide similar macro-scale results, suitable for their intended purpose. t Contact www.innovaltec.com Aluminium International Today
1/20/15 12:38 PM
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52 11AASTC REVIEW
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“Innovations, issues and solutions” The 11th Australasian Aluminium Smelting Technology Conference was held from 6th - 12th December 2014 at the Jebel Ali Beach Hotel in Dubai, UAE. This conference has a long history of updating global technical professionals in innovations, issues and solutions in primary aluminium fundamentals, operations, safety, industry directions and markets. Phil Black* writes.
Across six days, 162 delegates were treated to a variety of presentations, vigorous discussions, in-depth questioning, relationship development, excellent catering and conference facilities and a social programme that bonded and entertained in a relaxing ambience. The Brian Liston Memorial golf tournament on Saturday provided a challenge to several un-practised golfers, but the Ambrose format promoted a team strategy. Barry Welch’s “Dubal” team won with a best score of 67, trumping several quality teams. Sunday’s schedule contained an early morning tour of EGA’s upgraded Jebel Ali Operations (Dubal). A small group was able to review up close the newest reduction technologies, including D18+ and D20 test cells in their operating state with detailed commentary by EGA Technology experts, EGA’s approach to technical excellence and their confidence is exemplified in impressive pot stability and operating parameters.
The conference proceedings were officially opened by Gretta Stephens, 11AASTC Chairperson and General Manager of New Zealand Aluminium Smelter (NZAS). Gretta noted the variety of papers in the line-up and encouraged everyone to make use of the knowledgebuilding opportunities on offer. An overarching proviso of this conference is that where the knowledge gained is known to be proprietary it cannot be used for commercial advantage, and a statement was read to that effect. EGA’s President and CEO, Abdulla Kalban welcomed delegates to “The New Smelting Capital” and explained that within three years EGA would be selling bauxite and within five years would be spending $10 billion on investments in aluminium. Kalban also promised that 30% of EGA production would go to local downstream industries, and that there would be “zero landfill” in Abu Dhabi municipality. Keynote papers by EGA’s Ali Zarouni
*Vice President, Regain Services Pty Limited
January/February 2015
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(EGA Technology Development over the last 10 years) and Trimet’s Martin Iffert (Saving the European Aluminium Industry) outlined the differences in regional market maturity and operating practices, chiefly based on power distribution and pricing. While EGA are concentrating on developing more efficient technology to maximise power use (their 700kA DZ pot technology will target <12 kWh/kg Al), in Europe the emphasis is on downstream market development, existing technology optimisation and potential for Green Power utilisation in an energy-constrained community. Yanechen Wang (CRU) explained some of the drivers of regional and global Aluminium industry directions highlighting the relatively brief dip in growth in primary production following the GFC against a background of steady increases. The rapid emergence of China and the dynamics of Al impacts in the automotive industry were highlighted. Barry Sadler (Net Carbon Consulting) followed with a view of the last 10 years of developments in anode technology and raw materials issues and a look ahead to the next 10 years. A Welcome Reception sponsored by Pyrotek gave delegates a chance to renew acquaintances, swap golf stories and make new contacts on Sunday night.
Aluminium International Today
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54 11AASTC REVIEW
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Day two Plenary sessions began in earnest on Monday with a full day of Carbon and Reduction-themed presentations. Carbon was identified as an area of ongoing challenge as coke quality declines and increasingly innovative approaches are required. In an award winning paper, Nadia Ahli provided evidence of increased number of stubs reducing voltage drop, gross AND net carbon and instances of vertical cracking. Les Edwards (Rain II Carbon) gave a perspective of petroleum coke from the suppliers side, presenting an overview of the rapidly changing landscape of US production in particular, where the low coking yields of shale oils will offer little relief from long term property trends. A lively panel discussion followed exploring whether anode developments can enhance energy efficiency while lowering operating costs and maintaining environmental standards. It was clear the smelting requirements for anodes quality were moving outside the traditional comfort zone of the Anode baking facilities and forming facilities. With changed work practices and cell designs the relative importance of some of the traditional test properties were justifiably questioned. It was highlighted that because of the inherent way sulphur is incorporated in the carbon structure, future reduction of the problems the increasing amounts sulphur introduces will only be achieved if the desulphurisation occurs prior to or within the green-coke calcination stage, especially since (in a subsequent paper) Rajat Ghosh demonstrated the wet scrubber in-duct “add-on” Alcoa has developed would be capable of removing more than 92% of SO2 emissions. However there is scope and need for there for considerable research to assist such environmental improvements. After lunch (sponsored by Regain Materials) the Potroom Operations sessions kicked off with detailed analysis of anode current distribution by Dubal’s Ali Jassim. Evan Andrews (Pacific Aluminium) then explained how power constraints can actually help to focus efforts to achieve maximum metal production. On Monday evening EGA provided a sumptuous Conference Dinner complete with lavish entertainment and a “ceiling of stars”. EGA supported the conference with more than 60 attendees over the week from Dubal and EMAL sites.
tending machine dexterity and the lack of any dust in the air or around the highdraft pots during the change sequence. Carbon plant operations were on a maintenance day but this gave us the chance to view closely the technology and layout, including the most modern kneader/cooler paste circuit. The afternoon sessions turned to Alumina quality and feed optimisation. Jim Metson again highlighted the lack of consensus on what constitutes the best compromise in alumina properties for smelter performance and how this is specified. A paper presented by Venkatsubramanian showcased Dubal’s infrastructure initiatives and the resulting capability to manage the use of multiple aluminas with differing properties across a large smelter. Davies introduced a new generation of robust sensing technology able to operate in the aggressive in-cell environment. Alcoa’s in-duct “add-on” wet scrubber was explained by Rajat Ghosh as removing 92% of SO2 emissions with potential for reduced capital outlay when compared to alternatives. It also has benefits in HF and particulate removal. A panel chaired by Jim Metson and Steve Lindsay explored energy, environmental and cost considerations in how best to address the raw material concerns of smelters. From the discussion it became clear that the specifications introduced in the 1970’s for alumina quality to satisfy the dry scrubbing role were a simplification and there are other inter-related important properties, such as assessable surface area rather than traditional BET area. Agbenyagah et al’s paper had demonstrated significant structural changes occur during the dryscrubbing process that inhibit efficient use of the surface available. Further research and development will be needed if optimisation of alumina quality for minimisation of emissions is to be achieved at a low cost within the smelters. Undoubtedly this will lead to lively debate with refineries in the future. In a highlight of the conference, the BBQ on Tuesday night progressed into a global song-fest as first the Australians, then the Kiwis, then the Rest of the World took part in a Karaoke sing-off. Danish football songs, Japanese and Russian folk songs and the All-Blacks’ Haka were highlights.
Day three Tuesday took three buses of delegates to EMAL’s operations at Al Taweelah, where full access was provided to Potline 3 at the newly-operational Phase 2. Delegates watched an extremely un-hurried anode change process and marvelled at the
Day four On Wednesday the sessions began with pot life and lining assessments, finishing the morning with a panel talking about the future of cathode design including shaped cathode concepts and their utilisation in modern lining designs.
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During the discussion it became evident that as the temperature control of smelting cells has improved there has been and increasing use of copper as a current carrying component of the cathode collector bars which was originally proposed and patented in the early 1970s. While these have enabled lowering in cell voltages, the recyclability and environmental issues associated with disposal from the failed collector-bars has at has not been fully explored. The novel shapes of cathodes blocks initially suggested by developers in China have generally been found to be beneficial in the early stages of cell operation, especially for obtaining better stability of the metal pad. However the benefits on energy reduction and overall efficiency is have not generally been sustained despite claims in publications. The Environmental side of smelting and implications for operations took the afternoon slot with papers addressing Spent Potlining and waste treatment, PFC generation from AEs and “nonpropagating AEs”, and Energy Transfer mechanisms. Nancy Holt (Hydro) indicated Hydro Aluminium’s goal to have a zero carbon footprint by 2020 and their significant actions to reduce landfill of waste. Regain’s Bernie Cooper challenged smelters to view SPL as a valuable byproduct which the cement industry will actually pay for. The panel session took aim at emissions and SPL issues and gave us all food for thought about just how sustainable we can be in smelting. Final day On Thursday two parallel sessions focused on (1) modelling and monitoring of reduction reactions, and (2) operations and production management, finishing with a combined look at anode management and a new anode baking concept, the Lazar Continuous Baking Furnace. The closing plenary session reviewed RTA’s new APXe low-energy cell developments including AP60 performance to date, and Yousuf Bastaki’s informative view of EMAL’s development over the last 8-9 years. A short discussion on the future of the Industry addressed the lack of action on some aspects of technical advancement. The future of the AASTC Conference was discussed, acknowledging that most participants thought it a very worthwhile event that was unequalled in its intent and results. In closing the conference, Gretta Stephens again thanked everyone for their support and sent us out with positive thoughts about our interactions at this 11th AASTC making a real difference to the innovations, issues and solutions in the industry for another three years. t Aluminium International Today
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EVENT PREVIEW 55
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Aluminium Middle East Aluminium Middle East will be held on 14th – 16th April 2015 at the Dubai International Convention & Exhibition Centre. Launched in 2009, the event brings together international industry front-runners including producers, manufacturers and processors of raw materials and end products made with aluminium components, as well as suppliers of technologies and accessories for aluminium production, processing and refinement. Aluminium Middle East gathers 180 exhibitors from 25 countries and over 3,000 industry professionals from 70 countries. The event will highlight the Middle East’s future role as the world’s powerhouse in aluminium production and facilitate discussions on uplifting the downstream sectors to support this growth in upstream industries.
2013 Event Highlights Dates: 23rd – 25th April 2013 Location: Dubai International Convention and Exhibition Centre Halls: Sheikh Saeed Halls 2-3 Edition: 3rd
Frequency: Biennial Net Space: 2,877 sqm No of Exhibitors and Co-Exhibitors: 166 No. of Country Pavilions: 3 No. of Attendees: 3,523
ALUMINIUM MIDDLE EAST 2015
FORGING CONNECTIONS. BUILDING POSSIBILITIES.
ALUMINIUM MIDDLE EAST 2015 14 - 16 April 2015 Dubai International Convention & Exhibition Centre
Organised by:
www.aluminium-middleeast.com alu middle east.indd 1
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56 PERSPECTIVES
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Granco Clark answers David Jenista* talks to Aluminium International Today about the “flourishing industry”. 1. How are things going at Granco Clark? Granco Clark has had several very healthy years with much growth. Granco Clark continues to be one of the top innovators in the industry, always looking for and testing new technologies to improve efficiencies within the extrusion industry to help companies succeed. 2. What are your views on the current state of the global aluminium industry? We believe that the industry is flourishing. Granco Clark is pleased to supply some of the worlds best automated heating and handling equipment that is energy efficient and built to the highest standards. 3. In your opinion, what are the big issues affecting the secondary aluminium industry today? Granco Clark primarily serves the aluminium extrusion industry. The move towards lighter vehicles and recyclable content are strong factors in the growth of extruded products.
Saw, FusionBond and Taper Quench. Downstream from the extrusion press, our handling systems feature the technologies of the Flying Cut Double Puller and HighPressure Spray Quench. Each piece of our equipment provides high efficiency. When combined, these technologies provide industry leading performance. 6. How quickly has Granco Clark responded to ‘green politics’ in terms of helping to make the production process more environmentally friendly? Granco Clark believes that best practice manufacturing efficiency is also the best “green” policy. Minimising energy consumption improves profitability and reduces demand on resources. The Hot-Jet Furnace technology is a cost effective way to heat logs and billets. The FusionBond system cuts waste, resulting in less energy use.
4. Where in the world are you busiest at present? Granco Clark is presently busiest in the U.S.A. Our engineers are continuously installing new equipment. We also have many locations around the world where we are installing the newest, most innovative equipment.
7. What are the big trends in valueadded production and where is Granco Clark leading the way? Granco Clark primarily provided equipment for the extrusion process, but we also have some involvement in valueadded downstream operations. We offer a high-volume, high performance Precision Sawing System for precision cutto-final-specification applications. We also provide artificial aging solutions for processing components after fabrication.
5. What products are proving the most lucrative? Granco Clark supplies complete, integrated solutions for the extrusion industry as well as subsystems. Our key technologies before the extrusion press include the Hot-Jet Furnace, Hot Log
8. Where do you see the most innovation in terms of production technologies – primary, secondary, or further downstream? All areas of the industry benefit from innovation. We serve the secondary market so we are most familiar with this
segment. Most aluminium extruders have the potential for efficiency gains from innovative processes. 9. Do you see Granco Clark as an innovator within the industry? Granco Clark has and will always be an innovator in the industry. We are continually introducing new technologies and equipment as we listen to our customers and seek to address their challenges. 10. Are there any research and development projects in place? Yes. Granco Clark is always developing and testing new ideas. 11. How do you view Granco Clark’s development over the short-tomid term in relation to the global aluminium industry? We believe that our growth will outpace the global aluminium industry. We benefit from increased capacity but also from upgrading existing facilities that need to keep pace with the newer facilities. 12. What does Granco Clark have in store for 2015? In 2015, Granco Clark will be presenting a number of innovations, including a thoroughly updated Flying Cut Double Puller, a “pull-through” style High Pressure Spray Quench, and non-contact Billet Heating Temperature Measurement. t www.grancoclark.com
Interested in getting your company’s view in front of the industry? Contact: nadinefirth@quartzltd.com
*David Jenista – Senior Process Engineer January/February 2015
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Aluminium International Today
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