Nickel Institute and ISSDA, Success in Partnership

Transcription

1 Nickel Institute and ISSDA, Success in Partnership A sound foundation for the challenges ahead Tim Aiken Delhi, 7 November 2014

2 Nickel Institute offices Toronto, Canada Corporate Services Promotion Brussels, EU H&E Public Policy Tokyo, Japan Market Development, H&E Public Policy Durham, USA Health & environmental science Beijing, China H&E Public Policy, Market Development International presence 2

3 Member companies Vale Canada Limited PT Vale Indonesia Tbk Vale Japan Limited Approximately 85% of worldwide nickel production outside China 3

4 Nickel Institute mission and goals Mission Promote and support the use of nickel in appropriate applications Promotion & Market development: Build the nickel brand. Grow and defend markets for new and existing nickel applications. H&E Public Policy: Promote sound science, risk management, and socio-economic benefit as the basis for public policy and regulation. Science (NiPERA): Undertake science relevant to human health and environment.

5 ISSDA and Nickel Institute Nickel Institute has continuously supported ISSDA for the past 19 years We saw an opportunity in this great country and did some heavy lifting, assisting with: Human resources Capital Activities, ideas, expertise January 1, 1997, we established an office with ISSDA. We provided a staff member, in fulltime support of ISSDA and the development of stainless steel Our philosophy supported the promotion of all grades providing they are appropriate for the applications proposed. 5

6 ISSDA and Nickel Institute The long relationship has been fruitful and delivered results, we believe, for: our partners in the stainless steel industry the nickel industry India Our support is as strong as ever but evolving, with a position on the Council, a move to membership contributions rather than staff, and as always, substantial support, along with expertise and ideas Now this relationship provides a new opportunity because India and its stainless steel industry has developed to take up a prominent global position 6

7 Results 3000 Development of Indian Use of Stainless Mill Products 000 s t 2500 GR 9.43% Flat products Long Products Total 7

8 Results - Stainless Steel Use by Grade Grades Use by Grade Others Total Others 8

9 Results Stainless Steel Use by Sector Development of Stainless Steel Use by Sector 000 s t Process & Power Engineerin g Electro mechanica l Auto, Rail & Transport Cookware & Durables Arch, Blding & Const Misc Total CAGR 18.48% 16.47% 4.22% 32.39% 4.75% 23.73% 14.18% 9.71% 9

10 India Rail India has the largest rail network under one management ISSDA began engagement with India Rail in 1994 with a series of workshops for rail units across the country. ISSDA and NI has been in regular contact with IR since then Initial success for stainless came with the application to corrosion prone areas of the trains (trough floors and toilets for example) 1996 first announcements for stainless steel trains were made 2008 IR announced plans to procure 300 series coaches from two new facilities for the production of 2500 cars per year. Intercity trains now extensively made from 300 series Currently procuring 2500 coaches per year and 750 stainless steel coaches were added in 2013 Two production facilities underway for the production of 4000 intercity coaches pa (with the possibility of 11 tonnes of 301 each) 10

11 India Rail Success in Delhi metro began in 2002 preferred material 301LN (7% Ni) for all coaches (plus 304 for platform hardware and furniture about 85 stations in 194 km s of track) Delhi metro in stage 3 with hundreds of coaches on order and in service 7 green fields metro systems now in construction including Jaipur, Chennai, Bangalore, Kochi and others representing the procurement of about 1700 cars in the next 5 years. The return on investment for the stainless and nickel industries for this one application alone has been substantial Between 20,000 and 25,000 tpa of 300 series used in intercity rail Additional uptake in metro cars and expansion of the uptake of 300 series likely providing the relationship between ISSDA and IR remains a focus and is strong Alone this is an excellent result and demonstrates the value of the investment and the success of ISSDA 11

12 Results Return on Investment The focus of ISSDA was: not exclusively on railcars Promotion also active in the larger markets of architecture and engineering applications as India has industrialised. Given the low share of 300 series in these sectors in India prior ISSDA engagement, similar impact as for railcars can be demonstrated over the past 7 years Development of Ni Demand in Specific Sectors (t) Auto, Rail & Transport Stainless Demand Series Ni Content 2080 Arch, Building & Construct Stainless Demand Series Ni Content 2070 Engineering Stainless Demand Series Ni Content

13 Results We believe that ISSDA has been a great success For our stainless steel partners For nickel and our stakeholders Most importantly for India where the benefit that stainless offers can be felt in the durability, the low maintenance, the pleasing aesthetic will serve the community for decades to come Amongst many many to thank and congratulate two need special mention Ramesh Gopal who has worked tirelessly until his retirement last year in the service of ISSDA NC Mathur, a towering figure in ISSDA and in stainless steel, with vision and a powerhouse of ideas and action 13

14 New Challenges ISSDA is and has provided a sound foundation for the further development of stainless steel in India Two challenges to mention: Stigmatisation Regulatory activity 14

15 New Challenges Stigmatisation through product failure Failure of stainless steel products in service is a threat to the good reputation stainless enjoys in every market we service The answer lies in supply chain education Grade selection Surface finish Good design and fabrication Success to meet or exceed the expectation of the customer Without diligence to promote awareness across the supply chain of stainless steel value destruction is likely ISSDA has a vital part to play as an independent and trusted source of information and training. The effort is necessary and must be on-going 15

16 Progresso Pier a life cycle success story Life Cycle case study demonstrate impacts and benefits of nickel use throughout the whole life cycle Additional Pier: built in 1980 s without SS rebar, collpased in 1990 s Progresso Pier: built in 1941 with Ni containing SS rebar Nickel containing stainless steel rebar is doing the job! 16

17 New Challenges Regulation Metals generally face challenges related to an evolving regulatory environment, that demands that suppliers of products regularly renew licenses to supply Asia is developing new regulatory frameworks and the metals industry is working hard to ensure regulations are: Based on sound science Appropriate Consistent With its potential to interface with regulators ISSDA could be an excellent vehicle for communication and impact to assist the regulatory process develop regulations keeping the pathways for metals open and competitive. 17

18 Congratulations Nickel Institute is proud of its participation and the successes achieved so far It s time to invite other organisations to share in the responsibility and the success that ISSDA and the Indian stainless steel industry will bring in future, for themselves, for their country and for the industries that supply them Congratulations to ISSDA on 25 years! 18

19 Tim Aiken