Stainless Long Steel in Automotive Nothing moves without it! International Stainless and Special Steel Conference, London September 4, 2013

Transcription

1 Stainless Long Steel in Automotive Nothing moves without it! International Stainless and Special Steel Conference, London September 4,

2 2 Stainless long steel around the clock - an inevitable part of our everyday life Examples for stainless long steel use in daily life 9:00 12:00 am Works on his computer Hard disk actuator arm 8:45 am Arrives at office Wire mesh decorative at car garage exterior Office door handle 7:50 am Drive to office Airbag explosive container Injection pumps 12:00 am Leaves office Hand rails in staircase 7:20 am Breakfast Coffee machine parts Cutlery :15 am Lunch break Kitchen equipment Cutlery 1:00 pm Doctor s appointment Injector needle Bath room decoratives, hand rails 6:00 am Getting up, get ready for the day Bath room decoratives Watch casing Belt buckles 3:05 pm Flight to business appointment Turbine shaft 5:30 pm Swimming in the hotel pool Swimming pools filter grills, hand rails and ladders

3 3 End use segments of stainless long steel (SLS) support growth in value and volume End-use segments of stainless long steel* in 2012, global In percent, 100% = 5.0 mt Why stainless long steel? Consumer durables 12.6% Transport 8.0% Others 2.0% Industrial usage Architecture, Building, Construction Growth in Energy Food Processing Infrastructure Design Total cost of ownership Safety Industrial sage 64.8% ABC 12.6% Consumer durables Aesthetic appearance Hygiene Easy fabrication Transportation Mobility Fuel Efficiency Safety 3

4 4 Why speaking about Stainless Long Steel in Automotive applications? End-use segments of stainless long steel global in percent, 2012, 100% = 5,0mt Industrial Usage 64.8% Consumer durables 12.6% Transport 8.0% Others 2.0% Construction 12.6% Looks small, but:» Automotive still a growth market, with growth happening outside and inside Europe!» Usage of stainless long steel in automotive supported by stable trends and no substitute in sight!» Stainless Long Steel solutions in automotive are technologically advanced not a commodity market! Source: SMR June 2013

5 5 Automotive production numbers will grow in China and South Asia and, despite all rumors, in Europe! Global light vehicle production in million units Source: IHS Automotive Global Production Summary May 2013 Greater China Europe North America South Asia Japan South America Middle East/Africa » Roughly 50% of the light vehicle production growth will happen in China (according to IHS)» Despite all rumors, a production growth of more than 4 million units on top of a strong 2012 is expected for Europe (17%)!» Japan is (in absolute terms) the only looser in terms of production numbers

6 6 Some myths and realities about mid-term trends in the light vehicle industry (and in the long run we are all dead) What we often hear... Electric cars will soon be a viable option? What reality looks like...» No large volumes expected before mid of next decade» In 2012, 0.1% (~3,000) of the newly registered cars in Germany were fully electric Alternative materials are good for the environment Cars lost their position as status symbol Car sharing will lead to less cars and less kilometers driven» Many Light weight materials worse than steel from a lifecycle perspective» CO2 emissions 1 of steel production (0.4t)* significantly lower then those of aluminium (10.5t)** or CFRP ( t)» Cars still a status symbol, increasingly so in emerging markets» Car sharing as new business model occupied by car manufacturers» Kilometers travelled not expected to decline 1 in tonnes per tonne of material produced, * EAF Slab: t CO 2 eq./tonne produced; **cradle to ingot Source: SCHMOLZ + BICKENBACH; McKinsey; IEA; European Commission; Zeit; Daimler; motorauthority.com; Geyer on behalf of World Auto Steel (2012); CAMA

7 7 ICE and powertrain optimization, an increase in safety and comfort EXAMPLES features and weight reduction as key technology trends Details follow ICE optimization Direct injection Turbo charging Variable valve timing Emission control Powertrain optimization Double clutch transmission Friction optimization Hybridization / Electrification Increasing safety and comfort Driver assist systems Preventive occupant protection Intelligent airbags Integrated massage Vehicle weight reduction Design changes Source: SCHMOLZ + BICKENBACH; VW; Schaeffler; Focus; Auto Zeitung, Daimler New materials / composite

8 8 Direct injection: increasing penetration (fuel efficiency) and high pressure/corrosive media foster stainless usage Direct injection Trend Performance data Parts manufactured from Stainless Long Steel Required material characteristics Stainless long steel solutions from the SCHMOLZ + BICKENBACH Group Global market penetration in percent +14%pt Pressure up to 3,000 bar in diesel, 300 in gasoline» Valves» Rails» Nozzles»» High cleanliness» Fine-grained structure» Magnetic properties» Acidur 4057» Acidur 4418» Magnadur 4105» Corrodur Diesel and gasoline are very corrosive in this environment» Fatigue strength» Corrosion resistance» UGI4418B» UGI4542B» UGIPERM12FM Source: SCHMOLZ + BICKENBACH, PwC Autofacts 2011 Q4 Data release

9 9 Turbo charging: temperature resistance and precision are key requirements demanding for stainless Turbo charging Trend Performance data Parts manufactured from Stainless Long Steel Required material characteristics Stainless long steel solutions from the SCHMOLZ + BICKENBACH Group Global market penetration in percent +6%pt Up to 280,000 RPM» Intake housing» Screws, bolts» Regulation shaft» Rings, flanges,» High straightness» Dimensional accuracy» Low residual stress» High temperature» UGI4828 / UGI4845» SMS 301PH Temperature ~1,000 C on intake site» valves oxidation resistance Source: SCHMOLZ + BICKENBACH, PwC Autofacts 2011 Q4 Data release

10 10 Exhaust systems: Corrosion and high temperature resistance are main material requirements Exhaust system Trend Performance data Parts manufactured from Stainless Long Steel Required material characteristics Stainless long steel solutions from the SCHMOLZ + BICKENBACH Group CO 2 - Car emissions in g/km Temperature ~1,100 C emissions in bend, C at the access of the catalytic converter» Steel wool for muffler» Hangers» Welding wire»» High temperature and corrosion resistance» Good machinability» Good weldability» Acidur 4509» Acidur 4511, 4512» Acidur 4113» 430 LNb» EXHAUSTF1Evo Source: SCHMOLZ + BICKENBACH; Automobil Produktion

11 11 Airbags: absolute reliability is key - independent of operating conditions and over an entire vehicle life Intelligent airbags Trend Performance data Parts manufactured from Stainless Long Steel Required material characteristics Stainless long steel solutions from the SCHMOLZ + BICKENBACH Group Airbag penetration (example China) In percent Frontal Chest Head Min. durability of 15 years bar in capsule Temperatures down to -60 C» Explosive capsule» Sensors»» Machinability» Reliability» Durability» Acidur 4301» Corrodur 4104» UGI4301X1» UGI4104X Source: Autoliv; Daimler; Focus; SCHMOLZ + BICKENBACH

12 12 In essence: good perspective for good applications. Nothing moves without Stainless Long Steel in Automotive! # of vehicles produced In million units X Content (kg) per vehicle Increasing penetration of Direct injection Turbo charging X Demanding applications/ safety relevant no commodities direct end user business = Stainless Long Steel in Automotive Nothing moves without it! Airbag (example China) material price in no relation to potential risk Source: SCHMOLZ + BICKENBACH; IHS Automotive May 2013

13 13 What does it take to benefit from the opportunities as a technology-oriented producer? Close contact / R&D with OEM and suppliers; global supply chain» Joint development» Anticipate and understand trends and developments» Customized solutions and global supply chain services Skilled, technical sales force» Sales force needs to understand customer s requirements» Act as a thought partner» Involvement in the development phase of customer s customer Reliable state of the art production processes» Critical components come with a zero-tolerance quality policy» Certification/homologation in every step required» Reliable processes in quality and service absolutely key Source: SCHMOLZ + BICKENBACH

14 14 Thank you very much for your attention! Dr. rer. nat. M. Löwendick Chairman of the Board of Management Deutsche Edelstahlwerke GmbH