TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING
& THE MARKET
Submitted By, TARUN KUMAR M.SC. MARKETING MANAGEMENT, UK B. TECH. MECHANICAL ENGINEERING, IN
Submitted To, AMTEK INDIA LTD., IN
ACKNOWLEDGMENT I like to grab this opportunity to express my deep sense of gratitude and thanks to Mr. Chetan V. Shah, Joint Managing Director; Mr. Gautam Malhotra, Managing Director; Mr. Sanjay Arora, C.O.O.; Mr.V. K. Singh, GM Quality; Mr. L.D. Houde, Ex. Sr. Manager D&D, Amtak India Ltd., Unit – III, to give me this opportunity to go under approximate two months training with M/s Amtek India Ltd., Unit – III for technical and commercial aspects of Turbocharger Turbine Housing Casting and Industrial Overview respectively. I also wish to thank to all shop floor staff members of the company for their kind support and suggestion during training period. I shall remain lifelong indebted to my father Dr. R. K. Sharma (PhD, Chemistry) for his benevolence and affection and also to give me the opportunity to study from abroad. I like to express my deep gratitude to my real source of energy Dr. Nirupam Jyoti (PhD, Education) for her continuous support, unconditional affection and time for proof reading of following report. At last but not the least I, particularly and personally like to express my thanks to Mr. Malhotra, whose academic and professional background is the real source of inspiration for me, from the time when I used to worked with him in Diamond Plant as a New Product Development Engineer and became a driving force for me to pursuit of management studies from Overseas.
July 2011
(Tarun Kumar) E-mail: - t.kumar@live.co.uk
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 1
PREFACE The main goal of following report is to concentrate on technical aspects of Turbocharger and its Turbine Housing, the first half of report is focused on technical issues and features of turbochargers followed by History of Turbocharger, Its Principles of Working and Advantages, Key Terms, Design and Functional Features of a turbocharger. Proceeding section is dedicated for Turbine Housing Casting, where common casting defects and dimensional deviations, their limitation for acceptance and adverse effects are described with some empirical remedies. In writing to this part most of the views are from my past experience as a capacity of a NPD Engineer in company, practical explore on shop floor during training, customer’s quality manual and guidelines from GM of quality department Mr. V. K. Singh. Whoever no pictures were attached. In the second half of report I tried to analysis the EU and Indian Automotive Industries and their competiveness in global market and Import & Export of our targeted Turbocharger Market. Due to limitation of this report in term of time and online free database access, there is an overview of both Automotive Industries and Market for turbocharger. In writing to this part of report no formal references were done, however the online database, white papers, occasional papers of following origination are used for desk research. 1. UN Comtrade 8. Directorate General of Foreign 2. Export Import Bank of India, IN Trade, IN 3. OICA 9. CARS 21 Web-site, EU 4. ACMA, IN 10. ACEA, EU 5. ICRIER, IN 11. European Commission Trade website 6. IHS Global Insight 12. Just-Auto 7. WTO The report gives a basic knowledge about Turbocharger and its concerned market, which a vital for every person connected with this business regardless his/her, concerned responsibility in production operations or in corporate affairs. However I want to apologize if reader found some grammatical error and his or her suggestion/s are welcomed.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 2
TABLE OF CONTENT
Acknowledgment Preface Turbocharger History and Industry Background Principles of Turbocharger Advantage of Turbocharger Key Terms Design and Function of a Turbocharger Compressor: Operating Characteristics Turbine: Operating Characteristics Turbine Housing Casting Common Casting Defects, Limitation and Adverse Effects. Key Dimensions of Turbine Housing and Adverse Effects by Deviation. Indian & EU Auto/Components Market Competitiveness The Factor Driven Stage The Efficiency Driven Stage The Innovation Stage Indicators of International Competitiveness EU Automotive Industry Overview Indian Automotive Industry Overview The Turbocharger Industry: The Major Players in Industry Some Recent Actives in Turbocharger Industry Some Milestone Activities in Industry India in Global Turbocharger Industry
Conclusion & Recommendation
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 1
TURBOCHARGER HISTORY AND INDUSTRY BACKGROUND Turbochargers – what they do and how they do it In simple terms, a turbocharger is a device fitted to either a petrol or diesel engine which can increase the power output of the engine by pressure charging the inlet manifold, increasing the volumetric efficiency of the engine. The air induction compressor part of this device is powered by a radial turbine which is in turn driven by engine exhaust – hence the origin of the term ‘Turbo’. The history of Turbocharging is almost as old as that of the internal combustion engine. As early as 1885 and 1896, Gottlieb Daimler and Rudolf Diesel investigated increasing the power output and reducing the fuel consumption of their engines by pre-compressing the combustion air. In 1925, the Swiss engineer Alfred Büchi was the first to be successful with exhaust gas turbocharging, and achieved a power increase of more than 40 %. This was the beginning of the gradual introduction of Turbocharging into the automotive industry. The first turbocharger applications were limited to very large engines, e.g. marine engines. In the automotive engine industry, Turbocharging started with truck engines. In 1938, the first turbocharged engine for trucks was built by the "Swiss Machine Works Saurer". The Chevrolet Corvair Monza and the Oldsmobile Jetfire were the first turbo-powered passenger cars, and made their debut on the US market in 1962/63. Despite maximum technical outlay, however, their poor reliability caused them to disappear quickly from the market. After the first oil crisis in 1973, Turbocharging became more acceptable in commercial diesel applications. Until then, the high investment costs of Turbocharging were offset only by fuel cost savings, which were minimal. Increasingly stringent emission regulations in the late 80's resulted in an increase in the number of turbocharged truck engines, so that today, virtually every truck engine is turbocharged. In the 70's, with the turbocharger's entry into motor sports, especially into Formula I racing, the turbocharged passenger car engine became very popular. The word "turbo" became quite fashionable. At that time, almost every automobile manufacturer offered at least one top model equipped with a turbocharged petrol engine. However, this phenomenon disappeared after a few years because although the turbocharged petrol engine was more powerful, it was not economical. Furthermore, the "turbo-lag", the delayed response of the turbochargers, was at that time still relatively large and not accepted by most customers. The real breakthrough in passenger car Turbocharging was achieved in 1978 with the introduction of the first turbocharged diesel engine passenger car in the Mercedes-Benz 300 SD, followed by the VW Golf Turbo-diesel in 1981. By means of the turbocharger, the diesel engine passenger car's TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 2
efficiency could be increased, with almost petrol engine "driveability", and the emissions significantly reduced. Today, the Turbocharging of petrol engines is no longer primarily seen from the performance perspective, but is rather viewed as a means of reducing fuel consumption and, consequently, environmental pollution on account of lower carbon dioxide (CO2) emissions. Currently, the primary reason for Turbocharging is the use of the exhaust gas energy to reduce fuel consumption and emissions. The automotive industry has faced a progressively tougher regulatory environment in terms of emissions in recent years; this regulatory “toughness” is compounded by the lack of consistency between the major regions in terms of the specifics of the prevailing rules. Full details regarding emissions allowed for both petrol and diesel engines in each regional or country market is available at www.dieselnet.com/standards and readers are referred there for the exact rules and specifications. In Europe the key driver has been the recent application of Euro V rules and the impending Euro VI rules which come into force in September 2014 for cars and September 2015 for light commercial vehicles. In North America, the US government’s Environmental Protection Agency (EPA) rules have nationwide applicability, but in many ways the more important rules are those set down in California in its Low Emission Vehicle rules. LEV II came into force between 2004 and 2010, while the more onerous LEV III will come into force starting in Model Year 2014, through to 2022. The full details of these rules are set out on the “dieselnet” web site as noted above, but the key thing about the next round of California LEV rules are the increased attention paid to NOx emissions and the long term durability of emissions control systems. Moreover, what is required in California today will be required soon in the rest of the USA, so there is no doubt that emissions rules will become increasingly tough throughout the world.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 3
PRINCIPLES OF TURBOCHARGER The use of Turbocharger is all about to increase engine efficiency, reduce fuel consumption and emissions. Engine power is proportional to the amount of air and fuel that can get into the cylinders. These simple operating principles provide various possibilities of increasing the engine's power output: Swept Volume Enlargement: Enlargement of the swept volume allows for an increase in power output, as more air is available in a larger combustion chamber and thus more fuel can be burnt. This enlargement can be achieved by increasing either the number of cylinders or the volume of each individual cylinder. In general, this results in larger and heavier engines. As far as fuel consumption and emissions are concerned, no significant advantages can be expected. Increase in Engine rpm: Another possibility for increasing the engine's power output is to increase its speed. This is done by increasing the number of firing strokes per time unit. Because of mechanical stability limits, however, this kind of output improvement is limited. Furthermore, the increasing speed makes the frictional and pumping losses increase exponentially and the engine efficiency drops. Turbocharging: In the above-described procedures, the engine operates as a naturally aspirated engine. The combustion air is drawn directly into the cylinder during the intake stroke. In turbocharged engines, the combustion air is already pre-compressed before being supplied to the engine. The engine aspirates the same volume of air, but due to the higher pressure, more air mass is supplied into the combustion chamber. Consequently, more fuel can be burnt, so that the engine's power output increases related to the same speed and swept volume. All things being equal, larger engines flow more air and as such will produce more power. If we want our small engine to perform like a big engine, or simply make our bigger engine produce more power, our ultimate objective is to draw more air into the cylinder. By installing a Turbocharger, the power and performance of an engine can be dramatically increased. The components that make up a typical turbocharger system are: The air filter (not shown) through which ambient air passes before entering the compressor (1). The air is then compressed which raises the air’s density (mass / unit volume) (2). Many turbocharged engines have a charge air cooler (aka intercooler) (3) that cools the compressed air to further increase its density and to increase resistance to detonation. TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 4
After passing through the intake manifold (4), the air enters the engine’s cylinders, which contain a fixed volume. Since the air is at elevated density, each cylinder can draw in an increased mass flow rate of air. Higher air mass flow rate allows a higher fuel flow rate (with similar air/fuel ratio). Combusting more fuel results in more power being produced for a given size or displacement. After the fuel is burned in the cylinder it is exhausted during the cylinder’s exhaust stroke in to the exhaust manifold (5). The high temperature gas then continues on to the turbine (6). The turbine creates backpressure on the engine which means engine exhaust pressure is higher than atmospheric pressure. A pressure and temperature drop occurs (expansion) across the turbine (7), which harnesses the exhaust gas’ energy to provide the power necessary to drive the compressor. So in exhaust gas turbocharging, some of the exhaust gas energy, which would normally be wasted, is used to drive a turbine. Mounted on the same shaft as the turbine is a compressor which draws in the combustion air, compresses it, and then supplies it to the engine. There is no mechanical coupling to the engine.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 5
ADVANTAGES OF EXHAUST GAS TURBOCHARGING Compared with a naturally aspirated engine of identical power output, the fuel consumption of a turbocharger engine is lower, as some of the normally wasted exhaust energy contributes to the engine's efficiency. Due to the lower volumetric displacement of the turbo engine, frictional and thermal losses are less. The power-to-weight ratio, i.e. kilowatt (power output)/kilograms (engine weight); of the exhaust gas turbocharged engine is much better than that of the naturally aspirated engine. The turbocharger engine's installation space requirement is smaller than that of a naturally aspirated engine with the same power output. A turbocharged engine's torque characteristic can be improved. Due to the so-called "maxidyne characteristic" (a very high torque increase at low engine speeds), close to full power output is maintained well below rated engine speed. Therefore, climbing a hill requires fewer gear changes and speed loss is lower. The high-altitude performance of a turbocharged engine is significantly better. Because of the lower air pressure at high altitudes, the power loss of a naturally aspirated engine is considerable. In contrast, the performance of the turbine improves at altitude as a result of the greater pressure difference between the virtually constant pressure upstream of the turbine and the lower ambient pressure at outlet. The lower air density at the compressor inlet is largely equalized. Hence, the engine has barely any power loss. Because of reduced overall size, the sound-radiating outer surface of a turbocharger engine is smaller; it is therefore less noisy than a naturally aspirated engine with identical output. The turbocharger itself acts as an additional silencer.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 6
KEY TERMS: Whenever we talk about turbocharger either in foundry shop, machine shop, assembly shop or even in car show room. Key terms on which performance of a turbocharger depends are required to know. Some of important key terms are discussed below... Wheel Trim: - Before move forward to the trim topic exducer and inducer diameter is important to know. Inducer diameter is the diameter where air/gas enters the wheel and Exducer diameter is the diameter where air/gas exits the wheel. So as according to aerodynamics smaller diameter is inducer and lager diameter is exducer for compressor and in case of turbine vice-versa is true.
Trim is a term to express the relationship between the inducer* and exducer* of both turbine and compressor wheels. More accurately, it is an area ratio. Trim Wheel =
Inducer2 ∗ 100 Exducer2
So that value of trim wheel is inducer’s square divided by exducer’s square and multiplied by one hundred. At ideal condition and other factor kept constant, higher the trim wheel value more air/gas flow will achieve. Understanding Turbine/Compressor Sizing A/R Value: - A/R (Area/Radius) describes a geometric characteristic of all compressor and turbine housings. Technically, it is defined as the inlet (or, for compressor housings, the discharge) cross-sectional area divided by the radius from the turbo centreline to the centre of that cross-sectional area.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 7
The A/R parameter has different effects on the compressor and turbine performance, as outlined below. Compressor A/R - Compressor performance is comparatively insensitive to changes in A/R. Larger A/R housings are sometimes used to optimize performance of low boost applications, and smaller A/R are used for high boost applications. However, as this influence of A/R on compressor performance is minor, there are not A/R options available for compressor housings. Turbine A/R: - Turbine performance is greatly affected by changing the A/R of the housing, as it is used to adjust the flow capacity of the turbine. Using a smaller A/R will increase the exhaust gas velocity into the turbine wheel. This provides increased turbine power at lower engine speeds, resulting in a quicker boost rise. However, a small A/R also causes the flow to enter the wheel more tangentially, which reduces the ultimate flow capacity of the turbine wheel. This will tend to increase exhaust backpressure and hence reduce the engine's ability to "breathe" effectively at high RPM, adversely affecting peak engine power. Conversely, using a larger A/R will lower exhaust gas velocity, and delay boost rise. The flow in a larger A/R housing enters the wheel in a more radial fashion, increasing the wheel's effective flow capacity, resulting in lower backpressure and better power at higher engine speeds. Variable Nozzle Turbo (VNT): - A turbocharger works by adjusting the gas throat section at the inlet of the turbine wheel in order to optimize turbine power with the required flow velocity. At low engine speed and small gas flow, the turbocharger reduces the throat section, increasing turbine power and boost pressure. At full engine speed and high gas flow, the VNT turbocharger increases the throat section, avoiding turbocharger over speed and maintaining the booster pressure required by the engine. The throat section modulation can be controlled directly by the compressor pressure through the use of a pressure actuator, or by the engine management system using a vacuum actuator. To modify the throat section, VNT Multi-vane models use a mobile multi-vane system composed of a number of vanes which rotate relative to the turbine wheel axis. It is also called as variable turbine geometry (VTG), sometimes referred to as variable geometry turbines (VGT) and at Honeywell as VNT.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 8
DESIGN AND FUNCTION OF A TURBOCHARGER: Compressor: -Turbocharger compressors are generally centrifugal compressors consisting of three essential components: compressor wheel, diffuser, and housing. With the rotational speed of the wheel, air is drawn in axially, accelerated to high velocity and then expelled in a radial direction.
The diffuser slows down the high-velocity air, largely without losses, so that both pressure and temperature rise. The diffuser is formed by the compressor backplate and a part of the volute housing, which in its turn collects the air and slows it down further before it reaches the compressor exit. Operating Characteristics The compressor operating behaviour is generally defined by maps showing the relationship between pressure ratio and volume or mass flow rate. The useable sections of the map relating to centrifugal compressors are limited by the surge and choke lines and the maximum permissible compressor speed. Surge line: - The map width is limited on the left by the surge line. This is basically "stalling" of the air flow at the compressor inlet. With too small a volume flow and too high a pressure ratio, the flow can no longer adhere to the suction side of the blades, with the result that the discharge process is interrupted. The air flow through the compressor is reversed until a stable pressure ratio with positive volume flow rate is reached, the pressure builds up again and the cycle repeats. This flow instability continues at a fixed frequency and the resultant noise is known as "surging". TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 9
Choke Line: -The maximum centrifugal compressor volume flow rate is normally limited by the cross-section at the compressor inlet. When the flow at the wheel inlet reaches sonic velocity, no further flow rate increase is possible. The choke line can be recognised by the steeply descending speed lines at the right on the compressor map. Turbine: - The turbocharger turbine, which consists of a turbine wheel and turbine housing, converts the engine exhaust gas into mechanical energy to drive the compressor. The gas, which is restricted by the turbine's flow cross-sectional area, results in a pressure and temperature drop between the inlet and outlet. This pressure drop is converted by the turbine into kinetic energy to drive the turbine wheel. There are two main turbine types: axial and radial flow. In the axial-flow type, flow through the wheel is only in the axial direction. In radial-flow turbines, gas inflow is centripetal, i.e. in a radial direction from the outside in, and gas outflow in an axial direction. Up to a wheel diameter of about 160 mm, only radial-flow turbines are used. This corresponds to an engine power of approximately 1000 kW per turbocharger. From 300 mm onwards, only axialflow turbines are used. Between these two values, both variants are possible. As the radial-flow turbine is the most popular type for automotive applications, the following description is limited to the design and function of this turbine type. In the volute of such radial or centripetal turbines, exhaust gas pressure is converted into kinetic energy and the exhaust gas at the wheel circumference is directed at constant velocity to the turbine wheel. Energy transfer from kinetic energy into shaft power takes place in the turbine wheel, which is designed so that nearly all the kinetic energy is converted by the time the gas reaches the wheel outlet. Operating Characteristics The turbine performance increases as the pressure drop between the inlet and outlet increases, i.e. when more exhaust gas is dammed upstream of the turbine as a result of a higher engine speed, or in the case of an exhaust gas temperature rise due to higher exhaust gas energy.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 10
The turbine's characteristic behaviour is determined by the specific flow cross-section, the throat cross-section, in the transition area of the inlet channel to the volute. By reducing this throat crosssection, more exhaust gas is dammed upstream of the turbine and the turbine performance increases as a result of the higher pressure ratio. A smaller flow cross-section therefore results in higher boost pressures. The turbine's flow cross-sectional area can be easily varied by changing the turbine housing. Besides the turbine housing flow crosssectional area, the exit area at the wheel inlet also influences the turbine's mass flow capacity. The machining of a turbine wheel cast contour allows the cross-sectional area and, therefore, the boost pressure, to be adjusted. A contour enlargement results in a larger flow cross-sectional area of the turbine. Turbines with variable turbine geometry change the flow cross-section between volute channel and wheel inlet. The exit area to the turbine wheel is changed by variable guide vanes or a variable sliding ring covering a part of the cross-section. In practice, the operating characteristics of exhaust gas turbocharger turbines are described by maps showing the flow parameters plotted against the turbine pressure ratio. The turbine map shows the mass flow curves and the turbine efficiency for various speeds. To simplify the map, the mass flow curves, as well as the efficiency, can be shown by a mean curve For high overall turbocharger efficiency, the co-ordination of compressor and turbine wheel diameters is of vital importance. The position of the operating point on the compressor map determines the turbocharger speed. The turbine wheel diameter has to be such that the turbine efficiency is maximised in this operating range. The turbine is rarely subjected to constant exhaust pressure. In pulse turbocharged commercial diesel engines, twin-entry turbines allow exhaust gas pulsations to be optimised, because a higher turbine pressure ratio is reached in a shorter time. Thus, through the increasing pressure ratio, the efficiency rises, improving the all-important time interval when a high, more efficient mass flow is passing through the turbine. As a result of this improved exhaust gas energy utilisation, the engine's boost pressure characteristics and, hence, torque behaviour is improved, particularly at low engine speeds. TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 11
To prevent the various cylinders from interfering with each other during the charge exchange cycles, three cylinders are connected into one exhaust gas manifold. Twin-entry turbines then allow the exhaust gas flow to be fed separately through the turbine. Other important component for turbine is Internal and External Wastegate; Internal Wastegates are built into the turbine housing and consist of a “flapper” valve, crank arm, rod end, and pneumatic actuator. It is important to connect this actuator only to boost pressure; i.e. it is not designed to handle vacuum and as such should not be referenced to an intake manifold. External Wastegates are added to the exhaust plumbing on the exhaust manifold or header. The advantage of external Wastegates is that the bypassed flow can be reintroduced into the exhaust stream further downstream of the turbine. This tends to improve the turbine’s performance. On racing applications, this Wastegated exhaust flow can be vented directly to atmosphere.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 12
TURBINE HOUSING CASTING: Most of the features of turbine are explained in above sections, but from the foundry point of view some common defects in turbine housing casting and dimensional defects or deviation are explained below for the need of consistency of location areas, acceptable machinability, performance related to gas and pressure soundness. Common Casting Defects, Limitation and Adverse Effects: Most of the turbine housing casting defects are very crucial and can be visually detected, but visual judgement of the surface quality of turbine housing casting needs to be done under consideration of aesthetic and functional requirements. Most of common casting defects observed is listed below:1. Sand Inclusion 2. Blow Hole 3. Scabbed 4. Mould Broken 5. Mismatch 6. Mould Crack 7. Sand Fusion 8. Cracked Core 9. Veining 10. Glue
11. Excess Metal In 12. Rough Surface In 13. Shrinkage 14. Chilled Casting 15. Cold Shut 16. Over Ground 17. Over Shot-blast 18. Casting Dent
Every defects have certain features, by which they can be distinguish from others and show their adverse effects on casting, machining and if use in turbocharger can show drastic results. In foundry most of defects have empirical reasons and solutions. I this section we will discuss every defect in separate like their appearance to segregate from others, probable causes, maximum limitation for acceptance and adverse affects particular selected for machining or use in turbocharger on OE (Operating Engine) conditions. 1. Sand Inclusion: - This defect appears due to trapped loss sand particles in casting during solidification process. Normally sand inclusion found on casting outer surface in the form of irregular shaped small or big cavities. Individual inclusion must not exceed 1.00 mm depth, 3.0 mm diameter. Density of sand inclusion should not be more than four in a area of 25 x 25 mm surface and must have a distance more than 6.0 mm from each others. However casting can be accepted if it can be judge that sand inclusion cavities are under limit and/or will be removed after machining.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 13
2. Blow Holes: - This defect appears due to trapped gases in casting during solidification process. In opposite of sand inclusion, blow holes can be found inner or outer both surface. As like to sand inclusion acceptance limitations are similar but not a single blow hole is permitted on volute area and especially on tongue area in double volute turbines. Presence of blow hole in volute area could cause a serious damage to turbine during OE conditions and especially at high gas temperature and pressure. 3. Scabbed: - Scabbed can be define a peeling-off due to improper heat treatment and uneven cool of casting after heat treatment. These casting can be rework up to a limit. 4. Mould Broken: - Mould breakage will take place on moulding line due to irregularities in pattern, which cause considerable deformation in casting and if that particular mould will pour then casting will be reject. Troubleshoot should be done if this problem appears continuously. 5. Mismatch: - Mismatch in both half of casting will appears by many possible reasons like due to misalignment in moulding machine’s PP and SP, faulted installation of pattern on pattern plate. On the other hand misalignment in core can create serious defect in casting by creating run out which cause un-machined surface on bearing and diffuser (out let) bore. A serious run out can create differences in wall thickness in casting. For the mismatch of casting, moulding machine and pattern need to inspect because mismatch casting above the limitation will be reject. 6. Mould Crack: - Mould crack creates positive metal outside the casting surface. 7. Sand Fusion: - Sand fusion defects are found normally on those surfaces of casting which face mould’s sand and appear as rough surface. Sand fusion caused by less strength of mould sand having less 8. Cracked Core: - This defect left extra metal inside the casting eight in form of solid metal filled or by fine. Probable causes of crack core are mishandling, improper core assembly, improper alignment between print of core and core print formed by pattern in mould. Such castings can’t be rework and need to reject. 9. Veining: - This is a line of extra metal inside the volute area in the form of fine. The defect appears due to longitudinal crack in core which may form during core making. To avoid veining cores need to be inspected properly, any negative impression required to fill with refractory material like graphite paste. Veining in casting need to be removed by proper grinding tool, but caution need to take to avoid over grinding and damage of other profile of casting or otherwise veining which are hard to remove and those veining which have more than 2.0 mm width, 1.5 height and impossible to rework need to reject. 10. Glue: - This is negative impression inside the casting cause by extra solid glue on core. 11. Excess Metal In: - Extra metal inside the casting formed by irregular damaged negative core surface. Extra metal can be removed by of proper grinding and tool. But casting having TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 14
extra metal inside the volute area which are cannot be remove need to reject. Any positive impression in volute/ gas passages may reduce the working capacity of turbine and in long OE condition may create noise and damage. 12. Rough Surface In: - Rough surface inside the casting will create resistance for the smooth gas flow, so this need to be properly grind and if not possible part need to reject. 13. Shrinkage: - It’s a cavity formed inside the casting especially near riser neck area. Probable causes of shrinkage insufficient Carbon Equivalent Value, incorrect gating system, small size of riser, high pouring temperature ect... to avoid shrinkage all above parameters are need to consider. Normally at sufficient EC value size of riser, deign of riser neck, provision of V notch are need to consider. Any casting having shrinkage defect are likely to be reject. 14. Chilled Casting: - Chilled casting is formed because of fast cooling to metal, it can be in whole casting or localised. As the result of chilling in casting/area hardness will increase, which may reduce tool life in machining. Chilled cast turbine can bust under OE conditions due to rapid heat up and cooling of engine. 15. Cold Shut: - Cold shut is the improper welding of two stream of molten metal due to low temperature. This improper welding of stream or cold shut may form a longitudinal cavity inside the cast surface. These casting likely to be reject. 16. Over Grind: - Extra grinding casting will deform casting profile like reduction in wall thickness etc... Over grind parts are likely to reject. 17. Over Shot-Blast: - Over shot blasting means, shot blasting on cast product more than required time will create shiny and smooth casting surface and may damage casting profile or part number. With the help of visual inspection like readability of number and condition of profiles on casting surface, casting need to be reject. 18. Casting Dent: - Dents are formed due to rough handling of casting during in-house transportation. Serious dented castings are likely to reject, because dent on machining areas may adversely affect machining process. However minor local dents on cast surface are permitted provided they do not exceed 8.0mm diameter and have less depth than machining allowance and specified minimum wall thickness is maintained can be accepted. Key Dimensions of Turbine Housing and Adverse Effects by Deviation: The key dimensions considered in turbine housing are discussed below: Front of Flange: - FOF is measured as distance of centre of bearing bore to front face of inlet flange at four corners. With the help of this value mismatch of pattern can detect. If value of FOF is higher than required then more machining will required, which ultimately affect the tool life and on the other hand if FOF value if less than required then unmachined area and leakage of exhaust gases will be result. Total Thickness: - This is the distance between bearing face to outlet face. TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 15
Flange Length and Width: - Length and width of flange are important from drilling holes on the corner of flange and fitment of turbine on exhaust manifold. Run Out: - It is the concentricity of centre of outlet bore with respect to bearing bore. More value of run out means shifting/sloping of core during production, mismatch core and pattern’s print area. Rum out are likely to found in double volute turbine housing, which is mainly due to poor core assembly. A serious run out can create differences in wall thickness in casting. Reference Dimension: - It is measured as distance of centre of flange from centre of bearing bore. This dimension is used to calculate A/R value for turbine, where A is the cross sectional area of volute and R is Reference Dimension. A/R value is very critical for turbine performance. Throat Gap: - It is a distance between inner profiles of bearing bore to inner profile of outlet bore. This dimension vital turbine wheel and need to be under limitation.
Apart from the above defined defects and their limits, in the fowling paragraphs we will discuss some others points regarding manufacturing requirements for turbine housing casting. All cored passages must be free from sand, which may be produce by poor core sand quality or poor core paint. Loose ends of gates and risers may be left ungrounded up to 1.0 mm max height on unmachined surfaces and up to 3.0 mm max height on surfaces to be machined. Positive parting line on the external surfaces of casting must not exceed 1.00 mm height and 2.00 mm width, any extra material on parting line above mentioned limits is need to be reword. Fines or flash is needs to remove from gas passage dividing wall. Machining location / gripping areas, or points indicated on the drawing, must be cast smooth. Minor grinding of such surface is acceptable, provided it does not reduce the initial dimension by more than 0.5 mm.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 16
INDIAN & EU AUTO/COMPONENTS MARKET: The automobile industry is one of the most vital industries in the EU economy and, that’s why improving the competitiveness of the auto industry is one of the most important measures to attain the goals of Lisbon Agenda. In 2005, EU Council worked with the EU automobile industry association to launch a new initiative to boost the competitiveness of the EU automobile industry. The high level group known as ‘CARS 21’ was formed with the objective of the generating recommendation to improve the worldwide competitiveness and employment prospects of the EU automotive industry. The overarching recommendation arising from CARS 21 was that the industry should move towards the world leader in clean, safe and affordable vehicles and live up to the climate change challenge. It also wanted to increase trade liberalisation, for expansion to overseas markets, on the basis of mutual benefit for the parties concerned. In this concern the group recommended a focus on achieving multilateral trade framework pursuing selected bilateral trade agreements with India, ASEANs... In comparison of the trade relationship between the automotive industries of EU, of India will set an appropriate scene. EU general import duties vary from 10% to 22% for motor vehicles, from 3% to 4.5% for automotive parts; however, from India, which comes under EU’s General System of Preference (GSP) rate of 6.5% for the motor vehicles and 0% for automotive parts. On the other hand India applies import duties of 60 – 100% for motor vehicles and 7.5 – 10% for automobile parts. Competitiveness: Globalization and the rapid growth of developing economies have increased international competition. In recent, global economy faces new challenges to manage rising new raw material and energy prices, a major international financial crisis and slowdown in the world’s leading economies. In open economy, competitiveness refers to advantages through which an industry obtains success against their foreign competitors. Lower costs, trade liberalisation and technology change have widened international competition, which has become fiercer than ever before. At a national or region level, competitiveness can be measured by the level and growth of the nation’s or region’s standard of living, the level of aggregate productivity, the ability of the nation’s firms to increase their penetration of global markets, and to increase their share of FDI. Clearly, no nation can sustain a trade surplus in every sector of economy. Indeed, to achieve international success in some industries implies that other industries will be less successful in terms of their export performance. Nevertheless, a nation/region is not competitive if the export success of their industries is boosted through subsides, or is dependent purely on low labour costs or a favourable exchange rate. TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 17
Competitiveness is considered, at highest level, it is differentiate in price competitiveness, which relies mainly on labour cost and productivity and Non-price competitiveness tends to be based upon innovation, business environment and brand awareness. According to the World Economic Forum (WEF), three stage of competitive development are: The Factor Driven Stage: Low-cost conditions translate into low price and unprocessed natural recourses are the key to competition and export. Firm’s production is limited to simple labour-intensive manufacturing products, generally designed in other advanced counties. India can be considered as being part of this group. The Efficiency Driven Stage: The key driver is the production of more advanced products and serviced highly efficient. Productivity is improved through investment capital. Technology is assimilated trough imitation, foreign investment and joint venture, but counties being to develop and improve technology by themselves. Malaysia and some new member of EU (Hungary, Czech Republic and Slovak Republic) correspond to this case. The Innovation Driven Stage: The dominant key of competitive advantage is the ability to produce innovate products and services. Institutions and incentives that enable innovation are well developed. Price competitiveness is less relevant if innovation can reduce costs and so offset higher costs factors, whilst, in addition products and services present a high level of differentiation. Singapore is the only country from ASEAN and big 5 from EU are considered in this section. 2005 1,000
2006
2007
2008
2009 14.00
900
12.00
800
10.00
700
8.00
600
Total Import of EU - 27 % Penetration of India
6.00
500
% Penetration of China
4.00
400
2.00
300 200
2005
2006
2007
2008
2009
Import of EU for Transmission shafts and cranks, cam and crank shafts (848310) Market from India & China, Data collected from UN Comtrade website TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 18
2005 600
2005.5
2006
2006.5
2007
2007.5
2008 20.00 18.00
550
16.00
500
14.00
450
12.00
Total Import of EU - 27
400
10.00
% Penetration of India
350
8.00
% Penetration of China
6.00
300
4.00
250
2.00
200
2005
2006
2007
2008
Import of EU for Flywheels and pulleys including pulley blocks (848350) Market from India & China, Data collected from UN Comtrade website
Indicators of International Competitiveness: It’s a well known fact that automobile industry happens to be the cornerstone of some of the most influential economies in the world, like USA and Japan. Indian automotive industry has also increasingly playing similar role contributing to the economic and industrial development in the country. In the last few years, Indian automotive market has emerged as one of the most vibrant market in the world, with increasing technology transfers, FDIs and R&D. In the auto-component segment, steered by the country’s high engineering skills, established production lines, growth in domestic automobile market and competitive manufacturing casts, global auto majors have increasingly ramped up the value of components they source from India. Over 20 OEMs and their International Purchase Offices (IPOs) in India to source their global component requirements. The numbers of OEMs are expected to be twice in 2015. In such a scenario, it may be pertinent to analyse the export competitiveness of Indian Auto-component Industry in International Market. In the following lines we will how to analysis analyse the export competitiveness of India in selected auto-component products in their target markets. The competitiveness of Indian Auto-component Industry in both markets have been analysed by using some competitiveness indicators, such as... Penetration (Pi) - Share of Indian/country exports (X) of product ‘i’ to specific country, relative to country’s total import (M) of product ‘i’. Pi = Xi/Mi TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 19
Contribution (Ci) - Indian/country export (X) of product 'i’ to specific country, as a share of total Indian export to the specific country. Ci = Xi/X Specific Country Share (Si) - Specific country import (M) of product ‘i’ relative to specific country’s total import. Si = Mi/M Specialization (Ei) - Obtained by dividing ‘Ci’ by ‘Si’. Ei = Ci / Si = (Xi / Mi) / (X / M) Corresponding to the indicator of revealed comparative advantage of Indian Auto-components sector; comparative advantage in product ‘i’ if the ‘Ei’ is higher than 1.0. Competition based on low wages alone is rarely a winning long-term strategy, as often occurs alongside poor working condition. Adverse working conditions, in turn, are often related to low productivity employment, which erodes competitiveness. Non-cost factors like institutional quality, macroeconomic environment, workforce education and skill level, efficiency and labour productivity are important and interrelated determinants of competitiveness. On the other hand, increased productivity generates a virtuous circle, supporting higher wages which in turn, support an increased internal demand for goods and services. Global Competitiveness Report 2009-2010 summarises these interactions and how counties and companies tend to manage these drivers increase their position in fierce worldwide competition. In fact, EU continues to be among the most competitive regions in the world, with 9 European Countries among top 20 (Denmark, Sweden, Finland, Germany, The Netherlands, France, Belgium, Austria, and UK). India derives substantial advantages not only from its market size (domestic and overseas), but also from its strong business sophistication and innovation. The country is endowed with strong business clusters and many local suppliers and ranks an impressive 3rd for availability of scientists and engineers. However, India’s weakness is its macroeconomic instability (highest deficits in the world, corruption, unsustainable levels of government debt, high inflation); and its health and education system. It can be seen from the bellow chart that import from EU to India was increased in years of 2007 to 2009 because reduced rate of import duties from 10% to 7.5% in approximate 101 products of auto TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 20
industry. But Indian export to EU has a considerable improvement, where turbocharger comes under HS code 84148030. EU27 / India (Import - Export) for Air or Gas Compressors, Hoods (HS -841480) US Million $ 2006
2007
2008
2009
2010
185.4 161.1 134.2
126.6
115.8
76.1
71.6 52.8
37.9 14.9
Import Value from India
Export Value to India
EU Automotive Industry Overview: The EU was on the leading position in global vehicle production up to 2008; nut with the crisis, Asia is now the first production region, because to very high growth, especially in china, the ongoing force of the Japanese manufactures, and a fall in production in EU to 18.4 million. At 18.4 million units the EU showed 35% global vehicle output. EU vehicle and component manufactures not only dominate the domestic market, but also control significant shares of the other established and emerging global markets. EU vehicles are renowned worldwide for their design, technology, performance and efficiency. These competitive advantages have enabled EU manufacturers to maintain domestic share while gaining ground in foreign markets.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 21
Top 14 Automobile Assembly & Engine Production Plants in EU by Makers
BMW DAF Daimle AG FIAT FORD EU GM EU J & LR MAN CITROEN RENAULT SA TOYOTA VOLVO VW NON-ACEA
Engine 3 NIL 3 3 7 6 NIL 1 3 5 4 2 8 10
P. Cars 8 NIL 6 17 7 16 3 NIL 12 12 5 NIL 22 53
LCV NIL NIL 6 8 3 4 NIL NIL 6 5 1 NIL 2 17
HCV NIL 3 3 9 1 NIL NIL 6 NIL NIL NIL 15 NIL 16
Bus Total NIL 11 NIL 3 5 23 3 40 NIL 18 NIL 26 NIL 3 5 12 NIL 21 NIL 22 NIL 10 4 21 NIL 32 25 121
The automobile industry operates 297 vehicle assembly and engine production plants in Europe, including the EU27 and a number of neighbouring countries, such as Russia, Ukraine and Turkey. The 16 ACEA members operate in 25 countries with a total of 208 plants, producing passenger cars, light commercial vehicles or vans, buses and coaches, medium sized and heavy duty trucks and engines. Typically, automobile plants group a large number of automotive suppliers at the same location or in the vicinity, contributing, in all, enormously to the economy of regions and countries. Other materials and automotive parts are supplied from elsewhere in Europe and around the globe. The European automotive industry is the key to the strength and competitiveness of Europe. The industry provides direct employment to more than 2.3 million people and indirectly supports another 10 million jobs in Europe. Annually, the ACEA members invest over â‚Ź26 billion in R&D, or about 5% of turnover. On the other hand according to BBC News Jaguar Land Rover's (JLR) may open an engine plant in Wolverhampton, UK
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 22
Vehicles Market: All markets – light and heavy vehicles, production and sales – were low in 2008. LCV production fell to 18.4 million unit and sales of 16.7 million units in 2008 and HCV recovered production of 566,000 units, sales of 395,000 units. Despite the fact that HCV segment (which is major target segment for turbocharger) is much smaller in the overall volume, EU’s HCV industry is a global leader and key industrial asset in which almost every EU member state has a stake. Because HCV’s unit value is so much greater than car’s unit value and because of technology leadership of EU manufactures, HCVs represent a highly significant market segment in EU with EU traditionally a production hub for HDCV export around the world. The LCV and HCV market segment have recorded strong growth in the past with 5% and 2% average respectively. But the passenger car market, before the crisis, reached the limit of 14 million of sales per year, consequence of a saturated market. The EU production is focused in the big 5 markets of Germany, France, Spain, GB and Italy. Together, these five markets supplied 59% to total automotive EU production in 2010. Germany leads all EU countries, representing 27% of total vehicle production. EU Motor Vehicle Production 2006 - 2010 2006 Units Total EU Production UK Germany France Spain Italy Total Big 5' Big 5' Contribution %
21,399,289 1,649,792 5,819,614 3,169,219 2,777,435 1,211,594 14,627,654 68
2007
2008
2009
2010
Units
% Change
Units
% Change
Units
% Change
Units
% Change
22,845,449 1,750,253 6,213,460 3,015,854 2,889,703 1,284,312 15,153,582 66
6.76 6.09 6.77 -4.84 4.04 6.00
21,770,785 1,649,515 6,040,582 2,568,978 2,541,644 1,023,774 13,824,493 64
-4.70 -5.76 -2.78 -14.82 -12.04 -20.29
16,967,971 1,393,463 5,905,985 2,227,374 2,170,078 843,239 12,540,139 74
-22.06 -15.52 -2.23 -13.30 -14.62 -17.63
19,613,040 1,090,139 5,209,857 2,047,658 2,387,900 840,039 11,575,593 59
15.59 -21.77 -11.79 -8.07 10.04 -0.38
Source: - OICA Website EU’s largest manufacturer, Volkswagen, locates maximum of its production in the home market of Germany. Original Equipment Suppliers: As suppliers are critical elements of automotive value chain, contributing, typically, 75% of a vehicle’s original equipment (OE) components and technology. EU automotive suppliers are global players renowned for their technology and innovation but just like their vehicle-producing clients EU suppliers are challenged by market pressures and must restructure their operation. According of CLEPA, the EU Association of automotive suppliers, and this sector includes 3,000 member companies, of which 2,500 are SME. Due to their domestic vehicle production industries, Germany and France constitute the largest supplier countries. TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 23
Indian Automotive Industry Overview: The growth of auto-components industry is closely linked to the growth of automotive industry, as substantial quantity produced by auto component industry is supplied to OEMs. Auto component manufactures supply to three kinds of buyers – OEMs, Tier – I and Tier – II and replacements market. Indian auto-components industry is being considered for outsourcing by developed countries owing to its low cost developed counties. During the analysed period, global automobile manufactures and Tier – I suppliers have increased their sourcing requirements from India and many global manufactures have also established their manufacturing centres in India, either through joint ventures or through wholly owned subsidiaries. This has led to an increasing turnover of Indian-components Industry in the last few years.
Indian Auto Market Segment Wise Share 2010-11 16%
4% 4%
Passanger Car Commercial Vehicles
76%
Three Wheeler Two Wheeler
According to Auto Component Manufactures Association of India (ACMA), the size of the Indian auto-components industry is estimated to be around US $ 26 billion in 2010-11. Though there may be a slowdown in auto-component production in 2008-09, due to recessionary trends in the world and sluggish new vehicle demand in long term, India is estimated to have the potential to become one of the top auto component economies by 2020, according to study by IBM, according to another studies the auto component to grow at a CAGR of 13% to reach US $ 40 billion by 2015. India’s share in world auto components would thus grow from 1%, at present, to over 2.5% by 2015.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 24
10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00
9.00
2.30
2.65
2001-02
2002-03
3.75
3.10
2003-04
2004-05
7.20
7.30
2007-08
2008-09
5.40
4.40
2005-06
2006-07
2009-10
Investment in US $ BLN. 30
26
25
22 18
20 15 15 10 5
18.4
12 4.47 5.43 3.28 3.01 3.25 3.89 3.97
6.73
8.7
0
Poduction (US $ BLN)
4.00 3.50 2.87
3.00
3.80
3.80
2.47
2.50 2.00
1.69 1.27
1.50 1.00 0.50
3.62
0.33
0.35
0.46
0.63
0.58
0.76
0.00
Indian Export in US $ BLN.
Source: - ACMA TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 25
The Turbocharger Industry: “World Automotive Turbochargers Market to Reach US$2.9 Billion by 2015” GIA announces the release of a comprehensive global report on Automotive Turbochargers market. Tempered by the economic recession, world automotive turbochargers market is expected to inch to US$2.9 billion by 2015. Although the clamour over lowering automobile emissions and steppingup fuel economy offers a straightforward business case for automotive turbochargers, the perceived opportunity is currently dampened by the rundown economic condition. In the post recession period, however, tightening of fuel efficiency and emissions related regulations, and norms in developed countries, greater preference for light- duty turbochargers, and increased vehicle demand in Asian markets are all expected to drive growth. These days, turbochargers are seen as an integral and essential part of the automotive industry’s portfolio of technologies deployed to reduce vehicle emissions and improve the industry’s environmental performance and credentials. It's a growth sector and that's encouraging new entrants, just one of the findings in new research from just-auto that details developments and trends in the turbocharger market. Honeywell, one of the leading turbocharger manufacturers expects global turbocharger penetration to reach 38% by 2013, up from 30% in 2009. It has even gone so far as to suggest that by 2020, beyond the period covered by this report, turbocharger demand in north America could account for as much as 85% of the market, and the worldwide penetration rate could be as high as 70%. Looked at from a different angle, there is a clear trend to smaller and smaller engines to be fitted with turbochargers; this involves either small engine providing enhanced power or for engines to be downsized, maintaining the power output of hitherto larger engines. Again, according to Honeywell, there is an expectation that by 2014, half of all turbocharged engines will have a displacement of 1.7 litres or less – in 2009, Honeywell believes less than 40% of turbocharged engines were in this size range. In parallel, 2- and 3-cylinder engines are expected to account for around 11% of the global market by 2015, while 4-cylinder engines will grow from 72% to 76% of the global market from 2007 to 2015; in fact the 4-cylinder segment peaked at over 78% of the market in 2009, but has lost out somewhat to the 2-/3-cylinder segment since then; while the 2-/3-cylinder segment grows and the 4-cylinder segment maintains its share, the proportion of the market accounted for by 6-cylinder engines and above will fall from 22% in 2007 to 13% in 2015. The Major Players in Industry: BorgWarner Inc. (US) BorgWarner Turbo Systems GmbH (Germany) TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 26
Cummins Turbo Technologies Ltd (UK) Honeywell Turbo Technologies (US) IHI Corporation (Japan) IHI Turbo America Company (US) Mitsubishi Heavy Industries Ltd. (Japan) Turbodyne Technologies, Inc. (US) Turbonetics Inc. (US)
Global Market Shares for OE Engine TC for CHV 35% 27%
BW
Garret
26%
Holset
4%
4%
4%
IHI
MHI
Others
Market Shares in 2004
The recent market for turbochargers is dominated by two companies namely Honeywell and BorgWarner. Together they account for over 65% of global demand and in Europe and North America their combined shares are even higher. Outside Europe, Cummins has a strong presence in the heavier end of the light vehicle market, especially in North America and in Japan MHI and IHI have the majority of the markets. Some Recent Actives in Turbocharger Industry: BorgWarner Secures Turbocharger Supply Contract from Ford Motor The Schaeffler Group Inks Cooperation Agreement with ABB Turbo Systems Honeywell Inks Global Framework Agreement with Shell BorgWarner Establishes New Turbocharger Facility IHI Concludes Construction of Automotive Turbocharger Facility CSR Qishuyan Locomotive to Jointly Develop Locomotive Diesel Engines with GE Transportation in China BorgWarner Sets Up New Turbocharger Production Facility Durr Group Acquires Datatechnic TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 27
Volvo Employs BorgWarner's R2S® Turbocharging System CPI Holdings Purchases Turbocharger Technology Assets of Turbomotive Honeywell Transportation Systems Sets Up Turbo Technologies Engineering and Test Facility IHI to Establish New Turbocharger Facility Turbodyne Technologies Bags Order from American Transportation Systems BorgWarner to Expand Automotive Turbochargers Production Capacity BorgWarner Turbo & Emissions Systems Expands Facility Cummins Turbo Technologies Takes Over Tata Holset Caterpillar, Inc. Acquires International Fuel Systems and Franklin Power Products Cummins Turbo Technologies Completes Acquisition of Tata Holset Ltd. IHI to Enhance Production of Turbochargers in Asian and European Markets Siemens VDO and Mahle Plan to Enter Turbochargers Sector BorgWarner to Enhance Turbocharger Production in China BorgWarner Supplies Turbochargers to Audi.
Some Milestone Activities in Industry: Hampson Commences Business Operations in Indian Markets IHI Establishes Turbocharger Technical Center in Japan BorgWarner to Provide Turbocharger to Toyota BorgWarner to Invest R$12 Million in Brazilian Plant BorgWarner to Use Latest Turbocharger in Spark-Ignition Engine Mahindra to Purchase 66% Stake of DGP Hinoday Industries BorgWarner to Use Latest Turbocharger in Spark-Ignition Engine Honeywell to Expand Production Capacity at Indian Turbocharger Plant Honeywell Turbo Targets Various Asian and European Markets Cummins Turbo Technologies Establishes a New Manufacturing Plant in The US Honeywell to Supply Turbochargers to New Programs of Hyundai Eaton in Alliance with Volkswagen Honeywell Partners with Caterpillar Amtek's Subsidiary Purchases Zelter Holset Turbochargers Plans to Construct New Facility MHI to Step up Production in Europe Garrett Engine Boosting Systems is Now Honeywell Turbo Technologies BorgWarner in Joint Venture with KOFCO to Market Turbos. TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 28
Indian Turbocharger Industry: Indian Auto-component manufactures are moving towards global reorganization in Turbocharger Industry in aspect of technology, labour skill and the most vital point is M&A with old and well established firms around the globe. For instance Amtek Auto Ltd. acquired UK base Sigmacast Iron Ltd., which was found in 1918 and initially known as Triplex Foundry in Aug. 2003 and recently on June 2011, Dynamatic Technologies, an Indian components manufacturer for Airbus SAS, Deere & Co and Ford Motor Co said it acquired German automotive component maker Eisenwerke Erla GmbH. The 630-year-old Eisenwerke, which supplies to global automobile majors such as Audi, BMW, Volkswagen and Daimler, earns revenues of over 100 million Euros. It has manufacturing facilities in the German town of Erla and in Chennai.
Indian Turbocharger Export Vs Import Export Value (US $ Million)
Import Value (US $ Million) 77.37 73.51
78.69 57.73
27.68 8.12 2.2 2003/04
10.55 3.68 2004/05
12.02
23.1
26.91 11.25
13.99
11.87 2005/06
2006/07
2007/08
2008/09
2009/10
9.09 2010/11 (Apr. -Spt.)
As it’s clear from the graph that in the year of 2003/04 India have one fourth of total import of turbocharger and continually increased till 2005/06 and achieved 12.02 m$ value of export and 11.87 m$ in import. From 2006 – 2009 export of turbocharger increased very rapidly than import and gave a difference of 51.78 m$. In year from 2008/09 the effect of economic crisis can be seen by decreasing trend in both export and import. But still global turbocharger market have high potential to grow which can seen the value of export 73.51 m$ in half year of 2010/11, which makes India a cent percent export country in turbocharger industry and the top eight countries can be seen from graph titled “Country wise Export from India”. Turbocharger industry got boom after 2005/06 and rose from 12.02 to 77.36 thousands unit in 2009/10, till half year of current economic year export of 73.5 thousands unit is recorded and expected more than same unit in next half.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 29
CONCLUSION & RECOMMENDATION Indian Auto-component Industry is second largest industry after its parietal Automobile (Assembly) Industry and contributes a considerable share in Indian GDP rate. It can seen that Indian Auto Industry holds significant scope for expansion, both in domestic market, where the vehicle penetration level (8.9 per 1000) is on the lower side as compare to world average, and in the international market, where India could position itself as a manufacturing hub. The current level of share, viz., less than 5% of global production and less than 1% of global trade also corroborates the potential for expansion in this industry. At the same time, it should be recognized that India’s exports of automobiles have largely been confined to few countries in Asia and Africa, and to a limited extent in Latin America. Indian automobile companies are required to accelerate their momentum and increase their penetration among other countries in these regions. Similarly, the auto components industry in India, which is now known across the globe for its quality deliverables, should try and capitalize on the European and the US market either through the process of acquisitions of firms in these countries or simultaneously enhancing their quality and augmenting the number of outsourcing businesses from these regions. Indian auto component industry distinguishes itself with winning more number of Deming prize and adopting global quality management procedures, and thereby have an edge over other emerging economies, like China and Thailand. And as far as for turbocharger concern, the biggest market for turbocharger use in passenger vehicles (which includes light trucks in the USA) is in Europe, and specifically the diesel segment. Here all diesel engines are turbocharged and indeed they cannot meet current EU emissions rules without a turbocharger. Petrol turbocharger use is less well entrenched in Europe (although Europe is already the largest turbocharger market) and while it should double between 2010 and 2015, the largest growth in volume terms in turbocharger use in the next decade will be in North America, followed by various markets in Asia. The turbocharger market is noteworthy because new suppliers are entering, something which is rarely seen in automotive components. Plus on the basis that emissions regulations are becoming tougher and tougher the world over, it is inevitable that demand for turbochargers will rise. The global turbocharger industry is going to be a big apple for Indian auto-component manufactures and on the other hand firms need to be technologically advance to produce a critical component like turbocharger and to meet the international expectation. As its clear from figures that Indian Automobile Industry is gaining more and more competitive advantages in TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 30
manufacturing technology, positive governmental policies, man power and their skills, so it can be expected that there will be more crowds manufactures in Indian Turbocharger Industry. Indian Automobile and component industry need to look out for opportunities to increases its process competitiveness to improve in productivity, because low wage competitiveness normally overlooked by less productivity. Industry need to need undertake value engineering and enhance discipline in operational system.
TRAINING REPORT ON TURBOCHARGER, TURBINE HOUSING CASTING & THE MARKET
Page | 31