Responding to R&D Challenges in a Changing Industry
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The document discusses challenges facing the aluminum industry and ways to respond. It describes how industry changes have impacted R&D and technical expertise. Key challenges include meeting exacting customer requirements, reducing costs, and increasing sustainability. The industry must develop new alloys and technologies to maintain competitiveness. Both established and emerging aluminum producers need tailored R&D support. Outsourcing R&D to independent experts can supplement in-house capabilities and help address these challenges.
Responding to R&D Challenges in a Changing Industry
- 1. Responding to R & D Challenges in a Changin Industry ng Dr Tom Farley y Managing Director Innoval Technology Ltd
- 2. Presentation Overview Innoval Technology - Overv view Industry Changes - Impact on R&D and Technical Expertise Technical Challenges Responding to The Challeng ges 14th World Aluminium Conference 10-12 May 2009, Dubai
- 3. Presentation Overview Innoval Technology - Overv view Industry Changes - Impact on R&D and Technical Expertise Technical Challenges Responding to The Challeng ges 14th World Aluminium Conference 10-12 May 2009, Dubai
- 4. Innoval Technology – Our Background Innoval Technology is an independent company providing a unique resource of expertise to the downstream aluminium industry Formed in 2003 as a result of closure of one of Alcan’s Global Technical Centres We are a group of 26 aluminium experts – ou strength is the breadth of our aluminium ur knowledge Rolling and extrusion p g process expertise p Metallurgy product expertise Surfaces expertise Our engineers have an abundance of produc and process experience ct Most have been supporting the industry f over 20 years for Many have held Senior Management pos sitions in global aluminium companies companies. 14th World Aluminium Conference 10-12 May 2009, Dubai
- 5. Innoval Technology – What We Do Product development to improve customer satisfaction become a preferred supplier increase or protect market share Process improvement to reduce operating co osts increase asset utilisation reduce energy consumption Strategic Support Technical Due Diligence on existing plannts Pre-Feasibility Studies and Greenfield plant design Plant investment and upgrade support 14th World Aluminium Conference 10-12 May 2009, Dubai
- 6. Presentation Overview Innoval Technology - Overv view Industry Changes - Impact on R&D and Technical Expertise Technical Challenges Responding to The Challeng ges 14th World Aluminium Conference 10-12 May 2009, Dubai
- 7. Global Growth Rates (Pre-Downturn) Global Pool of Experienced Aluminium Consultants Lower Growth Rate Regions: Where higher costs • Focus on cost reduction and process efficiency Russia • Accelerated by recession • Increased focus on specialised East EU t and value-added products China MEENA India Higher Growth Rate Regions: Hi h G th R t R i GDP Generally lower costs Growth (’07) Brazil • New capacity • Striving for world-class performance and quality 14th World Aluminium Conference 10-12 May 2009, Dubai
- 8. Merger, Acquisition, Divestments and Closures - Example Novelis Acquisition Aditya Birla / Hindalco Innoval Spin-off p Rio Tinto Rio Tinto Alusuisse Alcan Rio Tinto acquisition Spin - off / Sale ? merger Alcan Alcan Alcan acquisition Packaging? Alcan Pechiney Eng. Products? 2002 2003 2004 2005 2006 2007 2008 2009 BHP? R & D Impact p Closure of major corporate Centres at Banbury (UK) & Novelis N Neuhausen (Switzerland) 14th World Aluminium Conference 10-12 May 2009, Dubai
- 9. Example: Rolling Plant Closures in United Kingdom Global Pool of Experienced Aluminium Consultants Specialist Lithographic p i li t Lith hi Specialist Aerospace Aluminium Rolling Plant Closure 14th World Aluminium Conference 10-12 May 2009, Dubai
- 10. Impact of Changes on R&D and Technical Ex xpertise Loss of experienced staff with world-class pr roduct and process knowledge from a mature western industry BUT R&D still required for critical industr challenges ry Creation of a pool of independent aluminium industry consultants m Growth of R&D outsourcing model New industry in emerging regions needs R&D Benefit from Knowledge Transfer to achieve world class product standards Will develop own in-house R&D – Requires good source of local engineering graduates – … this will take time hi ill k i Need access to expertise to design new plants and support investments 14th World Aluminium Conference 10-12 May 2009, Dubai
- 11. Presentation Overview Innoval Technology - Overv view Industry Changes - Impact on R&D and Technical Expertise Technical Challenges Responding to The Challeng ges 14th World Aluminium Conference 10-12 May 2009, Dubai
- 12. Key Aluminium Industry Challenges Drivers Examples More exacting customer requirements and Achieving world class quality (gauge, flatness, specifications ifi ti texture, surface, mech properties, etc.) t t f h ti t ) Cost reduction Increased Asset Utilisation (recovery, productivity) Reduced Energy Consumption (smelting and rolling) Competition from other materials (substitution) Aerospace – retain market share Automotive – reduce Aluminium costs Packaging – retain market share Increasing focus on sustainability Increase use of recycled aluminium Reduced process energy and water consumption (smelting and rolling) Reduced process emissions (CO2 f R d d i i from smelting) Reduced landfill 14th World Aluminium Conference 10-12 May 2009, Dubai
- 13. Pierce Great Arrow,Jaguar XK, 2006 1907 (Cast Aluminium(All Aluminiuls) Construction) Body Pane um Examp mple: Increasing the use of Aluminium in A t Al i i in Automotive ti 14th World Aluminium Conference 10-12 May 2009, Dubai
- 14. Automotive The history of the use of aluminium sheet an extrusions in automotive structures goes nd back many decades Favourable strength-to-weight ratio vs steel h long been recognized has associated reduction in weight and CO2 e emissions One of the major drawbacks to greater subst titution of steel with aluminium is the greater cost of aluminium compared with steel As a consequence much R&D is focused on reducing the cost differential One option is to increase use of recycled Aluminum d ~75% of ~800 million tonnes of Aluminium produced since 1880 is stored in use – The challenge is to utilise this source 14th World Aluminium Conference 10-12 May 2009, Dubai
- 15. The Impact of Weight Reduction on Automot tive CO2 Emissions 300 250 Pe etrol Diesel Lexus LS600h 200 CO2 g/km Lexus RX400h Lexus GS450h g Petrol Hybrid Primeira 607 150 Primeira 407 Focus Modus LRX concept Citroen C1 Citroen C2 Prius Civic 100 Diesel Hybrid y Insight VW Golf TDi Di Peugeot 308 HD Ford P2000 Audi 1.2 TDi 50 500 1000 1500 1 2000 2500 Curb Weight (kg) 14th World Aluminium Conference 10-12 May 2009, Dubai
- 16. Audi A2 1.2 TDi AIV (80g/km) First 4 door “3 litre per km” car (2.99 litres/km) 80 g/km CO2 Axle mounting frame, control arms and spring struts, brak calipers on the front disc brakes and the brake drums at ke the rear are aluminium Lightweight forged aluminium wheels Weighs 825 kg (135 kg lighter than 1.4 TDi) The three cylinder aluminium 1.2 litre TDi engines is one of the lightest passenger-car diesel engines at 100 kg Produced at 20 cars/day (~29,000 produced) 14th World Aluminium Conference 10-12 May 2009, Dubai
- 17. Automotive Example – A New Manufacturing Technology g Benefits of Cladding Aluminium Functional surface layer Functional Surface layer y Strength or low cost core (e.g. recycled) No need to compromise properties Core Recent new technology – Novelis Fusion™ 14th World Aluminium Conference 10-12 May 2009, Dubai
- 18. Automotive Example – A New Enabling Tech hnology Development of improved joining technologie es aimed at reducing the cost of aluminium intensive automotive structures Resistance spot welding (RSW) of aluminiumm Competes with cost of joining steel Suitable for high-volume robotic manufac cturing Improved recycling (no rivets) Technology breakthrough – Electrode Buffing 14th World Aluminium Conference 10-12 May 2009, Dubai
- 19. First Aluminium Aeroplane, 1909 Airbusm A380 A Exam mple: Protecting th Market Share P t ti the M k t Sh of Aluminiun in Aerospace 14th World Aluminium Conference 10-12 May 2009, Dubai
- 20. Aerospace Material usage changes in 10 years (Boeing 777 vs 787) 777 7 787 80 70 60 % usage 50 Significant drop 40 30 Significant rise 20 10 0 aluminium titanium steel composites misc. material m 14th World Aluminium Conference 10-12 May 2009, Dubai
- 21. Aerospace The new generation of wide body passenger aircraft from Boeing and Airbus will be 20% r more fuel efficient than today’s similar sized aircraft. 8% from improved engine systems (RR / GE) 12% from the use of advanced materials s Boeing 787 ‘Dreamliner’ ~50% of the primary structure including fuselage and wing manufactured from carbon 50% structure, fibre-reinforced plastic (CFRP). For the fuselage structure alone this will replace ~1,500 aluminium sheets and 40,000 – 50 000 fasteners 50,000 fasteners. Airbus 380 Retains the ‘aluminium aircraft’ with appr roximately 61% of the A380 structure made from aluminium alloys. 14th World Aluminium Conference 10-12 May 2009, Dubai
- 22. Aerospace – Challenges Aluminium must be competitive wit other advanced materials th Carbon Fibre Reinforced Plastics (CFRP) Glass Fibre Reinforced Plastics (GFRP) Titanium Development of next generation of Al-Li alloys f Alcoa are leading development of n new Aluminium-GLARE composite material that is nearly immune to fa g ( y atigue (CentrAl) ) Increases range of applications of G GLARE to include wing structures 14th World Aluminium Conference 10-12 May 2009, Dubai
- 23. Example: More Exacting Customer Requirem ments and Specification Coca-Cola’s First All Aluminium Can, 1967 , Coca-Cola Aluminium Can, 2009 , (weight 21g) (weight 12g) 14th World Aluminium Conference 10-12 May 2009, Dubai
- 24. Can Body Stock - Thickness Reduction and T Tighter Control Extremely tight specification for aluminium sh heet thickness Correct thickness tolerance can only be achieved with state of the art thickness control systems ... … AND the know how to get the most fro know-how om these systems Unlikely to be achieved at start-up Failure to meet specification will lead to can plant coil l il length th jams and can strength issues ~10,000 m Profile (crown) ~0.5% Al strip 250 +/- 5 microns Strip wid ~ 1.8 m dth 14th World Aluminium Conference 10-12 May 2009, Dubai
- 25. Can Body Stock – The Challenge of “Earing” ” Ears “Earing” Anisotropic mechanical properties cause by ed crystallographic texture Sheet with “earing” that is out of specification will n Risk jamming and stoppage of the can plant line Result in volume of can being too small Western companies have “ i ” under cont l W t i h “earing” d ntrol It remains a challenge for new industry in emerging regions can after re-draw and wall ironing with severe earing 14th World Aluminium Conference 10-12 May 2009, Dubai
- 26. Sustainability Challenges Examples of Alcoa Targets ( (2020 framework) Increasing the use of recycled Alu f uminium 50% recycled Al content in fa abricated products by 2020 Reducing energy consumption Reduce energy intensity by 1 10% by 2010 (vs 2000) Reducing process water consump ption 60% reduction i process wat by 2009 ( 2000) d ti in ater b (vs Reducing emissions incl. greenho ouse gases 25% reduction in greenhouse gas emissions by 2010 (vs 1990) Reducing landfill waste 75% reduction in landfill was by 2010 (vs 2000) ste 14th World Aluminium Conference 10-12 May 2009, Dubai
- 27. Presentation Overview Innoval Technology - Overv view Industry Changes - Impact on R&D and Technical Expertise Technical Challenges Responding to The Challeng ges 14th World Aluminium Conference 10-12 May 2009, Dubai
- 28. Responding to the Challenges The aluminium industry must continue to com mbat the threat from other competitive materials and maintain aluminium’s sustaina able credentials develop new and i d l d improved alloys f spe ifi applications d ll for ecific li ti develop new and improved process tech hnologies The aluminium industry has driven new prod duct development and developed new markets Automotive, Aerospace, Packaging, etc. the emerging industry must join this challenge the pool of expertise can be used to help with these challenges p Best results can be obtained through development strategic partnerships with suppliers and customers – Technology suppliers a global response between manufacturers – to combat common threats 14th World Aluminium Conference 10-12 May 2009, Dubai
- 29. Responding to the Challenges Different regions need different types of R&D D established western industry needs support to reduce costs and in new product innovation o emerging regions need support in achieving wworld-class product and process performance both need R&D to maximise returns The Aluminium Industry in emerging regions needs to have an effective technology s resource in place highly trained and experienced workforce cap pable of producing high-tech products and processes efficiently – Source of good graduates – Focussed University departments a dynamic R&D programme – responding to t challenges the BUT in-house R&D is expensive Perhaps up to 0.8% of Sales 14th World Aluminium Conference 10-12 May 2009, Dubai
- 30. Responding to the Challenges - The Outsour R&D Model rce Utilise the pool of independent expertise that now exists t Specialist independent R&D companies have extensive industry expertise and the broad e range of skills needed and can supplement in-house capability Innoval’s approach … We work as part of your in-house team to supplement your capabilities o Our cost can be switched “on” and “off” on off IP developed is owned by the client We adopt the same model for any specia alised services that we need and pass on that cost saving to our client 14th World Aluminium Conference 10-12 May 2009, Dubai
- 31. Summary Aluminium Industry Changes Growth of aluminium in emerging regions Cost reduction within mature western industry y Acquisitions, mergers, divestments and closures g pool of independent expertise Reducing Western R&D .. but creating a p g p p R&D Challenges are driven by g y More exacting customer requirements and sp pecifications Cost reduction Competition from other materials Increasing focus on sustainability Responding to the Challenges Need to develop R&D capability in emerging r regions to build on past achievements and to create knowledge Need to work jointly on threats to the aluminiu industry um An Outsourced Model of R&D can help to sup pport the industry 14th World Aluminium Conference 10-12 May 2009, Dubai
- 32. Thank you for your attention … your
- 33. Innoval Tech hnology Ltd An independe technology ent supplier to the Alu uminium industry