The Quickstep Story. Creating markets through innovation: A manufacturing case study. Ray Tettman, Watermark Philippe Odouard, Quickstep

Transcription

1 Creating markets through innovation: A manufacturing case study The Quickstep Story Ray Tettman, Watermark Philippe Odouard, watermark/quickstep Advanced Manufacturing Summit 11 November 2014

2 Auto Components Manufacturing Technology Quickstep Presentation November 2014 Australia s Largest Independent Carbon Composites Company Aerospace & Auto Philippe Odouard Executive Director Aerospace and Defence Manufacturing and Technology

3 Quickstep: The composite revolution Positioning : creating global carbon composite solutions 50% lighter than steel - 30% lighter than aluminium Use growing rapidly 2 activities : composite parts production; sale of the Quickstep Process A disruptive technology, : Quickstep curing process and Quickstep RST lay up Best value for money on the market Both patented through a number of patents & validated An existing base of activity with high visibility, in the military sector A provisional turnover of $US 800M secured over 20 years Further high growth potential: Full range of Automotive and Civil Aviation A significant growth: Revenue 2012/2013 : $6.8 M Revenue 2013/2014 : $17 M 3

4 Significant Growth Forecast Revenue up 100% in Traditional manufacture: 80% Quickstep technology: 20% 2014 revenue delivered as per previous forecast to market forecast only

5 Present Customers 5

6 Worldwide Locations Listed on the Australian stock exchange Headquarters and factory located at Bankstown Airport, NSW Employs 140 people worldwide Subsidiary in Munich, Germany in proximity of Airbus and European car industry

7 7 Quickstep Business Model Sell Quickstep carbon composite processes for the automotive and other industries: Sale of turn key Quickstep curing and lay up processes including plants and services Continue to innovate and patent new improvements Revenue from contract manufacturing of complex carbon fibre composite parts to aerospace and defence industries: High barriers to entry. No serious competition in Australia F-35 Lightning II JSF - commenced 2012 (Perth) & 2013 (Bankstown) C-130J Super Hercules - commenced Feb 2014 Bidding for significant new projects in aerospace

8 Automotive 8

9 9 Forecast Global Demand for Carbon Fibre Move to carbon fibre composite linked to legislation in Europe and the US to reduce CO2 emissions. Carbon fibre can reduce weight by ½ compared to steel. Automotive sector expected to become the largest user of composites Interest shifting from luxury performance car market to all OEMs

10 Fast Curing of Composite - Using Fluid Heating First patent for Quickstep Pressure Chamber Heat Transfer Fluid (HTF) Flexible Bladder Flexible Bladder sealing mould to pressure chamber Rapidly applying heat to the laminate, placed between a rigid or semi rigid mould Mould and laminate are separated from the circulation HTF by a flexible membrane Use of balanced pressure and vacuum on the laminate to cure the part Economical construction due to low pressure in both chambers (up to 0.8 bar) Faster than competition (1/2 time) cheaper investment (1/2), cheaper tooling (1/3), better technical characteristics Mould tool floating and supported in HTF Composite part to be moulded

11 11 Fast Lay up patent Vehicle production holy grail for carbon fibre parts: low cost, high speed, quality finish. No composite solution has met all three objectives - until now poor quality finishes were common (compensated for by labour-intensive bogging and sanding). Quickstep s patented Resin Spray Transfer (RST) technology delivers on all three. RST cell Technical success confirmed. Cycle of 40mn on aspect parts. Being reduced. Cycle time of 5mn on structure parts Demonstration parts shipped to and met requirement of European luxury car makers. Production cell commissioned and operating in Australia. Repeatability of the process has been proven. Further development underway with Lamborghini/Audi to reach higher quantities. Following announcement of GRIIF funding, Automotive division will be headquartered in Geelong.

12 Competition in Automotive RST a stand out Resin Transfer Moulding (RTM)/ High Pressure RTM High pressure closed mould system Fast cycle time Low quality aspect requiring expensive bogging and sanding to reach class A Expensive investment Specialised Prepreg Some specially design prepreg provides class A finish High cost of prepreg and tools Autoclave High cost of investment and tools Very slow curing Cycle times in hours too slow for anything but very small quantities RST Low investment cost equipment and moulds High quality finish out of the mould Fast cycle time - Multiple parts in one mould Fully automated 12

13 13 Thales First customer for automotive On 28 October 2014, Quickstep signed an agreement with Thales to supply the bonnet, mudguard and side steps for the Hawkei vehicle from Thales First RST contract and launch customer for automotive Using sandwich structure for bonnet for further weight reduction and savings on assembly Value: Up to $8M over 4 years for 1,300 vehicles

14 Aerospace Quickstep 14

15 15 ORPE Quickstep System First manufacturing Quickstep machine ordered in July 2013 by ORPE. Application on satellite launcher. Critical Design Review passed in May Integration in train in Munich Value: $6M to be delivered in next 6 months. Sale to be recognised in Validates the Quickstep Process technology. Opens potential for large integrated parts in the aerospace industry, e.g. 1 piece wing skins

16 16 Aerospace Quickstep Quickstep superior technology confirmed in the last 6 months: Stiffened skins Stiffened skins infused in one cure has been demonstrated successfully Real parts being contracted to progress maturity Objective is to use the technology for large parts in an in-line process compared to a batch process for autoclave ORPE machine adapted to large parts and essential building block to achieve wing skins, doors or empennage parts. Savings likely to be in the 50% mark Active discussions with OEMs and Tier 1 in progress Spar qualification for F35 continues

17 Aerospace Build to Print 17

18 18 Joint Strike Fighter Agreement US$300 billion - world s largest defence contract; 3,000 JSF aircraft to be delivered over life of the program. JSF project ramping up with more than 100 aircraft delivered to US DoD. 140 aircraft complete or under construction, ramping up to one aircraft a day, the 3 rd highest volume of aircraft production per year - behind B737 and A320. Quickstep has been in production for several years and is at 25% capacity with around 40 parts a month delivered. In excess of US$10 M orders in hand to be delivered in the next 12 months. Revenues of US$40 M p.a. at full capacity. Long Term Agreements in place with Northrop Grumman for doors and panels F-35 Joint Strike Fighters LTA signed with BAE Systems/Marand for Vertical Tails composite parts worth $140m Agreements valued at US$700M over 20 years.

19 Lockheed Martin C-130J Contract Quickstep selected to manufacture wing flaps for C-130J military transport aircraft in March Won against global competition. US$30 M production purchase orders received for 55 sets of wing flaps. Costs in line with quoted costs First parts delivered on schedule 7/2/2014: 13 th shipset completed as of 30 September2014 Quickstep made wing flap ready to be installed on a C130J Hercules Overall agreement signed in December 2013 and valued in excess of US$75M to Quickstep over 5 years.

20 20 Growth Opportunities Quickstep has earned a positive reputation for performance through JSF. Quickstep has bid and is in negotiation with a number of other potential clients. Quickstep is already in-contract with 5 out of the largest Aerospace and Defence contractors in the world: Lockheed Martin, Northrop Grumman, Airbus Thales and BAE Systems Focused on capitalising on its reputation and contacts with existing clients Expand into new clients wanting to enter/expand in Australia Military focus ensures protection from low labour cost countries.

21 21 Conclusion Disruptive technology for the automotive market recognised by leading European OEMs and in contract for a launch customer. Quickstep technology in Aerospace maturing with ORPE contract and considered for large integrated parts In excess of $49M in firm orders are in hand - backing the next 18 months of turnover. Future JSF sales supported by US$700M Memorandum of Understanding on JSF already signed. New LTA signed with Marand/BAE Systems for Vertical Tails is valued at $140m.

22 Universal Quickstep Universal fluid heating system patent Landscape (WO2002/058916A1) Class B29 C43/* Compression moulding

23 Published patent applications per year

24 Top countries of origin

25 Top applicants

26 Citation timeline for Quickstep Universal patent

27 Applicants of patents citing Quickstep Universal patents

28 RST 2 Quickstep RST2 Resin Spray Technology patent landscape (WO2010/141984A1) Class B29 C70/* Shaping composites

29 Published patent applications per year

30 Top countries of origin

31 Top applicants

32 Citation timeline for RST2 patent

33 Thank you