Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019....

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Hydro Extruded Solutions Marine & Offshore Seminar Ålesund 13 th February 2019

Transcript of Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019....

Page 1: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Hydro Extruded Solutions Marine & Offshore Seminar

Ålesund13th February 2019

Page 2: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

We are aluminium

Hydro company presentation 2019 -

Thomas Svendsen+47 [email protected]

Page 3: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

The global and complete aluminium company

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“…create a more viable society by innovative and efficient use of natural resources and products”

Aluminium– metal of the

future

Hydropower– infinitely

recyclable energy

Engaged in the entire value chain – R&D, innovation

and tailormade solutions

Global reach, local presence

More than 110 years of industrial

developmentand responsibility

Involved andengaged

35,000employees

150locations

40countries

Page 4: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Engaged in the entire aluminium value chain

Bauxite Alumina Energy Primary

RecyclingRolling

Extrusion

Casting Products

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Product service offering and quality along the value chain

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1) Outside China; 2) Extrusion ingot, sheet ingot, primary foundry alloys and wire rod; 3) Packaging, automotive, litho, building & construction and general engineering; 4) Primary Foundry Alloys

Built on market understanding, customer closeness and competence

EuropeNorth America

AsiaGlobally

Strong market

presenceacross

segments3

~24% marketshare in

extruded products

Strong presence in the Nordic

power market

~22% marketshare in

extruded products

Top 3 positions in

3rd-party bauxite& alumina

marketglobally1

#1 positions

foil and lithoglobally

#1 position precision

tubingglobally

#1positionin value

added metal products2

#3 position extrusion

ingot

Top 3positions in

extrusion ingot and

PFA4

~18% market share

in buildingsystems

Bauxite & Alumina

Extruded Solutions

Primary Metal

Energy

Rolled Products

Recycling

Page 6: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Engineering the future, light weighting our planet

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Positioning Hydro for the future

Raise performance and improve customer offering

Lead the transition towards sustainable solutions

BetterExpand the use of aluminium and strengthen Hydro’s platform for growth

Bigger Greener

Page 7: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Better Bigger Greener

Engineering the future, light weighting our planet

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Positioning Hydro for the future

Source: Hydro

Raise performance andimprove customer offering

• Extend Hydro’s leadership in advanced technology and product innovation

• Create value through raw materials access, customer collaboration and integrated model

• Continue benchmark performance and ensure attractive returns over the cycle

Expand the use of aluminium and strengthen Hydro’s platform for growth

• Promote Hydro and aluminium through value-adding products and solutions for our customers

• Be the preferred partner and mosttrusted voice of the aluminium industry

• Pursue selective growth from raw materials to products, solutions and recycling

Lead the transition towards sustainable solutions

• Advocate aluminium as a building block for the low-carbon, circular economy

• Continue to improve footprint from own production, recycling and sustainable solutions

• Making a positive difference by strengthening local communities and our business partners

Page 8: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

The global extrusion champion– worldwide reach, local presence

Customers in diversified end-markets(Share of Sapa’s sales volumes)

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Fragmented industry where closeness to customers and markets are key success factors

Source: CRU, Sapa Annual Report and Investor Briefing 2016

1) Heating, ventilation, air conditioning and refrigeration

Strong global positions

22,400 people

Present in 40 countries

Primarily serving domesticChinese markets

Unrivalled position as #1 extrusions provider globally

Extrusion volumes (2016), in thousand mt

0

500

1000

1500

Sapa

Zhon

gwan

g

Shan

dong

Hua

jian

Gua

ngdo

ng F

engl

u

Xing

fa A

lum

iniu

m

Gua

ngdo

ng J

MA

Gua

ngdo

ng W

eiye

Con

stel

lium

Gua

ngyi

n As

iaAl

umin

um

Building & Construction Transportation

Distribution

Industrial/other

Automotive HVAC&R 1)

29% 20%

14%

20%

16% 1%

Page 9: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Unique market positions, built on European and US strongholds

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22,400 highly competent people across the world, with total turnover of BNOK 53

Source: Sapa Annual Report and Investor Briefing 2016

Extrusion Europe Extrusion North America Precision Tubing Building Systems

• Market leader focusing on value-added products

• 22% market share

• 40 locations, 9,400 people

• Uniquely positioned as the only coast-to-coast supplier

• 24% market share

• 23 locations, 6,300 people

• Technology leader in selected market niches

• 35% market share globally

• 17 locations, 3,100 people

• Leading European player with multi-brand portfolio

• 18% market share in Europe

• Presence in 29 countries, 2,800 people

EBITDA (2016)BNOK 1.3

Revenue (2016)BNOK 20.4

EBITDA (2016)BNOK 1.3

Revenue (2016)BNOK 20.3

EBITDA (2016)BNOK 0.6

Revenue (2016)BNOK 6.4

EBITDA (2016)BNOK 0.5

Revenue (2016)BNOK 7.2

Page 10: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium is the metal for the future

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Properties lead to increased market share

Lightweight

1/3 density of steel means lighter vehicles, lower energy consumption and reduced emissions

Recyclability

5% of original energy consumption

75% of all aluminium produced still in use

Formability

Makes it possible to integrate different technologies into one solution, e.g. in buildings

Conductivity

A superconductor for heat and electricity, more cost efficient than copper, enabling energy-efficient systems for electrical transmission, such as transfer components

Alloying technology

Aluminium can be made hard, soft, stiff, bendable, smooth, temperature resistant etc. depending on the actual need, by developing tailor-made alloys

Corrosion resistant

Natural oxide layer protects the metal against corrosion and makes it virtually maintenance free

Page 11: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Macro trends and favorable properties drive aluminium demand

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Realizing full potential of aluminium’s strong qualities and versatility

For illustrative purposes only

Aluminium

Lightness and strengthDurability and formabilityCorrosion resistanceConductivityRecyclability

Energy-intensity

Steel

Strength and durabilityRecyclabilityPrice

WeightCorrosionEnergy-intensity

Copper

ConductivityCorrosion resistanceRecyclability

PriceWeightEnergy-intensity

Composites

Lightness Strength

PriceRecyclabilityClimate footprintEnergy-intensity

PVC

Lightness and formabilityCorrosion resistancePrice

Climate footprintRecyclabilityDurability

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0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0 20 000 40 000 60 000

Aluminium continues to outpace other base metals

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China still has considerable growth potential from a per-capita perspective

Source: CRU, Hydro analysis

Aluminium continues to be the fastest growing base metal Growth rates dependent on level of economic maturity

Real GDP per capita(PPP adjusted, USD)

China

Western EuropeNorth America

India

Size of bubbles:Accumulated semis demand per capita 1950-2016

= 0,5 mt

70

120

170

220

270

2000 2002 2004 2006 2008 2010 2012 2014 2016

Aluminium primary Copper Lead Zinc Nickel

Global demand base metals, Index 2000=100 Semis demand growth 2016

Page 13: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Fully integrated across value chain and markets

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Broad products and solutions offering from bauxite to end-user products

Bauxite

Alumina

Energy

Primary Metal

Rolled Products

Extrusion

Recycling

Machinery &equipment

Transport &automotive

Building &construction

Packaging Electronics & electrical

Consumerdurables

Page 14: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

New segments and applications supporting aluminium demand

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Marine/offshore applications Zero-emission electrical car ferries in 100% aluminium for light-weighting

Industrial applications, e.g. furniture

B&C, e.g. supertall buildings

Middle and high voltage cables, wireand cables for electrical applications

Transportation, truck & trailer applications

Automotive, strong drive towards EV Aluminium in solar panels

Page 15: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Alloys

Ålesund13th February 2019

Page 16: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

46%            Oxygen28%  Silicon

5%             Iron4%              Calcium3%  Sodium3%  Potassium2%  Magnesium0.6%  Titanium0.1%  Hydrogen0.1%  Phosphor0.009%  Carbon0.009%  Manganese

8% Aluminium

Aluminium Alloys

4 kg Bauxite(15-20% Alu)

2 kg Alumina

1 kg

Discovered 29 Billion

Undiscovered (est): 55 – 75 Billion tons

Page 17: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

• Aluminum can be re-used over and over again without loss of properties

• Around 50% of Hydro Extrusion’s production is based on recycled aluminum.

• Recycling requires only 5% of the original energy input.

• 75% of all aluminum ever produced is still in use!

Aluminium Alloys Recyclability

Page 18: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

• Small amounts of other elements added to ALU, that affect its properties

Silicon

Magnesium

CopperManganese

Iron

Aluminium Alloys What is an Alloy ?

Page 19: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium alloy types6000-series mostly used for extrusions

Alloy series Main alloying element Hardening

1XXX > 99% AluminumWork hardened

2XXX Copper and MagnesiumHeat treatment

3XXX ManganeseWork hardened

4XXX SiliconWork hardened

5XXX MagnesiumWork hardened

6XXX Magnesium and SiliconHeat treatment

7XXX Zinc, Magnesium & CopperHeat treatment

8XXX Other ElementsHeat treatment

T4 - heat-treated and naturally aged to a substantially stable condition.T6 - heat-treated and then artificially aged.

Page 20: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Some other relevant projects

• TrAM Project • KPN Project – Robotic Welding of large aluminum structures• Big Beam project• ALURE• Casa • LFCS

Page 21: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Wrought Alloys e.g. AA6060

Thermal Heat Treat

2XXX – Copper Alloys 6XXX –Silicon/Magnesium

7XXX –Zinc/Magnesium

7XXX –Zinc/Magnesium/Copper

Strain Hardened

1XXX – 99% Aluminum 3XXX – Manganese

4XXX – Silicon 5XXX - Magnesium

Cast Alloys e.g. A356

Thermal Heat Treat e.g. A356-T6

Aluminum Association Designations

Aluminium Alloys Different alloy series

Page 22: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 1000-series (99% Aluminium)

• Advantages• Good extrudability• Good formability• High heat and electrical conductivity

• Disadvantages• Soft, low dent resistance• Difficult to machine

AlAlaluminum

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26.982

Page 23: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 2000-series

• Advantages− High mechanical strength with good fracture toughness.− High machinability (2011 contains Pb)

• Disadvantages− Low extrudability− High demands on thermal processing− Corrosion performance can be a concern

AlAlaluminum

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26.982CuCu

copper

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63.546MgMgmagnesium

12

24.305

Page 24: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 3000-series

• Advantages− Good extrudability− High melting point

• Disadvantages− Soft, difficult to handle

MnMnmanganese

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54.938AlAl

aluminum

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26.982

Page 25: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 5000-series

MgMgmagnesium

12

24.305AlAl

aluminum

13

26.982

• Advantages− Good sea water corrosion resistance− Good formability

• Disadvantages− Low extrudability

• Common Forms− 5052, 5083, 5383 Sheet− 5054 Extrusion− 5083, 5383 Extrusion

Page 26: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 6000-series

• 6005A Advantages− Improved toughness over 6005− Improved strength over 6063 − Improved surface appearance− Structural Alloy− Better extrudability over 6061 / 6082

• 6005A Disadavantages− Lower strength than 6061 / 6082

AlAlaluminum

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26.982SiSisilicon

14

28.086MgMgmagnesium

12

24.305

Page 27: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 6082

• Advantages• High mechanical strength• High toughness• Good fatigue properties• Good machinability

• Disadvantages• Higher production cost• Not recommended for anodizing• Less suitable for complex profiles• Challenging cooling of thick walls

(hollow profiles)

AlAlaluminum

13

26.982SiSisilicon

14

28.086MgMgmagnesium

12

24.305

Page 28: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Alloys 7000 Series – Low Cu Variants

• Advantages− Low cooling sensitivity− High strength− Good weldability

• Disadvantages− Low extrudability− Prone to stress corrosion

AlAlaluminum

13

26.982MgMgmagnesium

12

24.305ZnZn

zinc

30

65.390

Page 29: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

$

Aluminium Alloys 7000 Series – 0.5% Cu Variants

CuCucopper29

63.546

AlAlaluminum

13

26.982MgMgmagnesium

12

24.305ZnZn

zinc

30

65.390

• Advantages− Very high strength− Excellent compressive strength

• Disadvantages− High demands on processing

− Thermal Treatments− Cooling Sensitivity− Low Extrudability

− Corrosion resistance

Page 30: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

0

100

200

300

400

500

600

Al 99,5 AlMn1 AlMgSi0,5 AlMg4.5 AlMgSi1 AlMg4.5 AlZnMg1 AlCuSiMn AlZnMgCu1.5

Strength of diffrent ALU alloys

Ulti

mat

e te

nsile

stre

ngth

(MPa

)

1000 60603003 6082 7020 2015 7075

Most common used alloys

Offshore Marine

5083H111

5083H116

Aluminium Alloys Typical Mechanical properties

Page 31: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Property Value ALU Value Steel Module of elasticity (MPa) 70000 210000 Tensile Strength, Ultimate (MPa) 310 (6082T6) 420 (S355) Yield Strength (MPa) 260 (6082T6) 355 (S355) Density (g/cm3) 2.7 7.8 Melting Point (°C) 660 1425 - 1540 Linear Expansion (0-100°C) (x10-6/°C) 23.5 12 Thermal Conductivity (0-100°C) (W/m-K) 170 44 - 52 Specific Heat Capacity (0-100°C) (J/g.°C) 0.9 0.47 Reflectance / Reflectivity (%) 55 - 90 40 - 60 Emissivity ε (heat radiation) 0.09 (sheet) 0.8 (weathered)

Aluminium Material propertiesComparison Aluminium versus Steel

Page 32: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

Aluminium Material propertiesLight Weight with High Strength-to-Weight Ratio

Page 33: Marine Seminar 13.02 - Blue Maritime Cluster Marine & Offshore Seminar Ålesund 13thFebruary 2019. We are aluminium Hydro company presentation 2019 - ... Sapa Annual Report and Investor

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