2015 Automotive R&D Event Greg Ludkovsky, VP Global R&D, London June 2015

Transcription

1 2015 Automotive R&D Event Greg Ludkovsky, VP Global R&D, London June 2015

2 Disclaimer Forward-Looking Statements This document may contain forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forwardlooking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although ArcelorMittal s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the SEC ) made or to be made by ArcelorMittal, including ArcelorMittal s Annual Report on Form 20-F for the year ended December 31, 2014 filed with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. 1

3 Agenda R&D overview Product development Manufacturing technology optimization Design and co-engineering Summary 2

4 Global R&D key facts and figures Over 1,300 full time researchers Working on all process and development needs Expanding worldwide network of laboratories (currently 12 labs in Europe, North America, and South America) Key challenges fully aligned with the group strategy: geography, value chain, product differentiation R&D budget spending by need Exploratory 6% Construction 10% Plates and specialities 13% Process 37% 57% Product Automotive 60% 10% General industry 7% Others 2014 R&D spend of $260m (1/3 for automotive sector) 3

5 Six R&D labs dedicated to automotive industry Canada Hamilton USA East Chicago Brazil Tubarão** Main missions: Develop new steels Improve the in-use properties of steels Find anti-corrosion solutions Invent breakthrough products Ensure technical service to customers Predict the behaviour of steel France Maizières-lès-Metz Montataire Gandrange* 565 people are adapting steel to the evolution of automotive industry needs * Focus on R&D for Long Products ** Focus on steel innovations for the automotive, energy, construction, machinery and white goods industries. 4

6 Dedicated resident engineers bring technical support to global customers Germany North America 14 resident engineers United Kingdom 1 resident engineer 6 resident engineers Japan France 3 resident engineers 3 resident engineers Italy Spain 1 resident engineer Republic of Korea 1 resident engineer 1 resident engineer India Brazil 1 resident engineer 1 resident engineer China 2 resident engineers ArcelorMittal also has six mobile Early Vendor Involvement (EVI) engineers with a global remit responsible for processing and providing stamping and joining support Committed co-engineering programs with key customers 5

7 Our vision and approach Non-Stop R&D investment More than Steel Mastering Steel: Referential Engineering Material OUR VISION OUR WAY From Collaboration to Co-creation Cutting-edge Technology Expertise Out-of-the-box Design Capacity R&D mission 6

8 Product development 7

9 ArcelorMittal 2014 All rights reserved for all countries Cannot be disclosed, used, or reproduced without prior written specific authorization of ArcelorMittal Through innovation, steel remains the material of choice 1st Generation, phase 2 : Dual Phase (DP1180 since 2008), TRIP Steels, Martensitic(MS>1200MPa since 80 s) 1st Generation, phase 1: HSLA, HSS 2 nd Generation: TWIP, X-IP 1st Generation, phase 3: Usibor for hot stamping rd Generation AHSS Fortiform for cold stamping ArcelorMittal has developed a unique full range of coated Advanced High Strength Steels in the last 25 years This has had significant impact on automotive construction: Safety: Most vehicles get 5 stars NCAP rating today Weight saving: Body structures are 25% lighter than in the 1980s Environment: 6% less greenhouse gas emissions than in the 1980s Corrosion protection: 12 years is the mainstream guarantee for corrosion thanks to the huge share of coated products ArcelorMittal has developed the broadest product offer in the world 8

10 Press hardenable steels for automotive Lightweight design of vehicles with hot stamping of Alusi pre-coated Usibor boron steel Very high strength (Up to 2000MPa tensile strength) No springback, complex parts are feasible Very good corrosion-resistance Huge weight-saving potential for antiintrusion parts (up to 30%) Tailored properties with Laser Welded Blanks (LWB) with Ductibor Very fast growth all over the world Heated blanks before hot stamping Potential usage of hot-stamping technology (S-in motion concept) Potential usage of Laser Welded Blanks Usibor - Ductibor (S-in motion concept) Press hardenable steels have become a mainstream solution for weight saving - 9

11 Penetration of press hardened steels Volkswagen Golf High strength-steels share: from 66% in Golf VI to 80% in Golf VII HSS UHSS 66% Golf VI 6% 80% 28% Golf VII Ultra highstrength steel share: from 6% to 28% (24% PHS, 4% AHSS) Armin Plath, Head of Materials Research and Manufacturing, Volkswagen Volkswagen is using high strength steels in increasing amounts. It is a very cost effective way of reducing weight. Using new innovations in steel engineering it is possible to reduce weight without the use for more costly materials such as aluminum and carbon fiber. According to an interview with Volkswagen for Truth About Cars, Volkswagen found that new HSS are: Six times stronger than conventional steels they replace Instrumental in achieving a weight reduction of 100 lbs. in the 2013 VW Golf Volkswagen replaces aluminum with steel to save weight and money, by Bertel Schmitt, Truth About Cars, Jan VW: constant progress in weight primarily due to Advanced High Strength Steels 10

12 Penetration of press hardened steels Volvo XC pounds lighter than its predecessor and 440 pounds lighter than most of its competitors. XC90's body & components structure Quote from Volvo s statement on 22 July 2014: To help keep the occupant space inside intact in a crash, the all-new XC90 has literally been made stronger in every sense. This is achieved by more extensive use of hot-formed boron steel, which is the strongest type of steel presently used in the car body industry. The complete safety cage around the occupants is made from hot-formed boron steel and is designed for maximum occupant protection in all types of crash scenarios. The hot-formed steel amounts to about 40 per cent of the total body weight. 40% Press hardened steels Other 60% 40% of the Volvo XC90 uses press hardened steel the most in any vehicle 11

13 Broadening our product portfolio For more than 20 years, weight saving solutions have been developed through the regular increase of tensile strength of the Advanced High Strength Steels Increase of strength is generally done at the expense of formability (complexity of shapes) ArcelorMittal has developed 2 ways to change the game: Usibor and Ductibor hot stamping solutions Fortiform for cold stamping with outstanding combination of formability and strength Part stamped with Fortiform ArcelorMittal automotive steel: various products offer formability and strength 12

14 Recap Globalization of product portfolio Two major products research centers: Maizières-lès-Metz (France) and East Chicago (USA) Managing a global product catalogue Cloning the existing solutions in the various regions (Europe, NAFTA, South America, Asia) to extend availabilities Working within a global project structure to develop simultaneously the emerging grades in Europe and NAFTA ArcelorMittal offers a really global product portfolio 13

15 Recap icare : Steels for electrical mobility icare is ArcelorMittal s range of innovative electrical steels for the automotive market: Save: reduces energy losses Torque: for the highest levels of mechanical power output through high permeability Speed: high strength electrical steels for high speed rotors Large number of products in the icare range provide technical solutions for automakers: Lower CO2 emissions and better fuel consumption for hybrid vehicles Longer drive range Lower total cost of electrification Better power density of electric machines - reduces size and weight of electrical drive trains Plug-in Hybrid Volkswagen Golf Electrical steel solutions for all types of electric vehicles 14

16 Manufacturing technology optimization 15

17 Innovative door ring concept Recap - Mass savings Honda s Acura MDX Materials, thicknesses and weldline positions can be tuned to optimize weight 16

18 ArcelorMittal developed a process for Usibor laser welding Before laser-welding, the aluminium-silicon coating near the edge is partially ablated by laser (ArcelorMittal process) The top layer is removed to avoid excessive Al dilution in the weld The intermetallic layer is intentionally kept to guarantee corrosion protection Laser coating ablation ~ 2 mm mm Remaining thin intermetallic layer AlSi Coating Laser welding Blank A Weld ~ 1 mm Blank B This process allows uniform hardness distribution after hot stamping, guaranteeing the weld quality Innovative developments to guarantee the weld quality 17

19 Hot stamped door ring - Honda s Acura MDX 8.6 lbs. weight reduction per door, reducing 2014 fleet by ca. 600,000 lbs Improved fuel economy: 18/27 MPG for 2014 Acura MDX (AWD, V6) vs. 16/21 MPG for 2013 Offers improved energy management through uninterrupted joints for smooth load path Weight was one of the ways to improve fuel economy. Taking weight out of a car and making a car stronger is not an easy thing. In spite of being a much stronger, safer car, it is 275 pounds lighter than the outline car. Jim Keller, 2014 Acura MDX Chief Engineer Outstanding performances regarding weight and fuel economy 18

20 2014 Honda Acura MDX crash test Small offset crash performance comparison Note deformations in the door opening area on comparison vehicle: ability to open the driver side door after the crash event in 2014 Acura MDX IIHS 2013 Other OEM Design without hot stamped door ring IIHS 2014 Acura MDX Design with hot stamped door ring Honda s Acura MDX received the highest available safety ratings 19

21 Award winning solutions Delegation from ArcelorMittal and Magna Cosma Int l American Metal Market s 2014 Best Innovation Process Award for the Honda door ring Automotive News' 2014 PACE Award in the Manufacturing Process and Capital Equipment category for the laser ablation process Door ring project awarded 20

22 Design and co-engineering 21

23 From a steel provider, to a global solution provider ArcelorMittal s leadership as solution provider recognized by OEMs Contribution to ULSAB/ULSAC industry-wide lightweight effort ArcelorMittal s ABC lightweight project S-in motion C-Segment Vehicles demonstrates the potential of AHSS & PHS S-in motion Light Commercial Vehicles S-in motion Electric & Plug-in Hybrid C-Segment Vehicles S-in motion Pickup Trucks A long tradition of steel solution development 22

24 3 step methodology for co-engineering BIW review Preliminary masssaving assessment Identification of potential mass saving solutions thanks to: Benchmark Refined mass-saving analysis Forming & welding feasibility PHASE 1 PHASE 2 PHASE 3 Grade, Gauge & Geometry optimization thanks to numerical simulations Crash FE analysis Forming and assembly assessment Springback counter measures Steel grade properties Hot-forming Roll-forming Spot-welding Engineered solution projects Stiffness FE analysis Laser Welded Blanks 23

25 S-in motion : weight reduction solutions A catalogue of 60 steel solutions using: Advanced High Strength Steels Hot stamping Laser Welded Blanks Tubular products Long products Enabling: to save up to 73 kg or 20% of a typical C-segment vehicle s body-in-white and chassis weight to deliver a 13.5% reduction in CO 2 equivalent (eq) emissions during the vehicle s use-phase to achieve these savings at neutral cost without compromising the vehicle s safety performance Press hardened parts (Usibor /Ductibor ) 54% AHSS Processes Hot stamping 29 parts Stamping of LWB 16 parts Roll forming 2 parts Choose the best weight saving / cost compromises 24

26 S-in motion Pickup Trucks S-in motion Pickup Trucks 174 kg (23%) of weight savings compared to baseline weight (748 kg) Optimal solution embarks 63% Advanced High Strength Steels including 18% Press Hardened Steels Solutions are validated for crash and stiffness requirements Main complex parts are validated for forming and assembly 22kg additional weight saving with emerging grades 25

27 S-in motion Ultra Lightweight Steel Door C-segment vehicle Baseline Front Door S-in motion S1 Lightweight Steel Door 18.3kg Short term Ultra lightweight steel door - Market ready Tensile strength values Weight breakdown 14.5kg Weight: 13.3 kg Weight savings: 4.9 kg / 27% Cost savings vs Alu: 30% 13.3kg Short term Opening the door to more weight savings Steel grades 1. Door inner 12kg Medium term Laser welded blank AM05 0.8mm /0.6mm 2. Waist beam MS mm & DP Door beam Usibor Hinge reinforcements Usibor Outer panel FF280DP (490DP) 0.6mm 26

28 Customer testimonials Armin Plath, VW s head of materials research and manufacturing: Volkswagen is using high-strength steels in increasing amounts. It is a very cost effective way of reducing weight. Peter Mertens, Senior Vice President of research and development for Volvo Volvo prefers boron steel to aluminum because of the strength properties and the added safety in a crash. Mike Sweers, Chief Engineer for Toyota s North American truck division: "If you are designing properly for the material, you can achieve the proper weight savings. If you just try to make the mass reduction purely by material itself, you ll reduce weight but won t optimise it. It all really starts with design." 27

29 Key takeaways We understand the challenges and proved that steel can meet these challenge We have products and market position to capture growth By leveraging the resources of our global R&D organization, ArcelorMittal has become a unique provider of steel solutions for the automotive market: a broad global product offer, constantly in evolution a high level expertise in all processes and in-use properties an incomparable ability to provide highly engineered solutions for weight and cost savings Advanced technological capabilities (Usibor for hot stamping / Laser Welded Blanks and Fortiform range of 3rd generation AHSS for cold stamping) We are convinced that steel will remain the preferred material for car manufacturing due to its unique ability to bring affordable weight saving solutions We are investing to back this franchise business Steel to remain material of choice for automotive industry 28

30 Q&A

31 New ArcelorMittal IR app and contacts Daniel Fairclough Global Head Investor Relations Hetal Patel UK/European Investor Relations Valérie Mella European/Retail Investor Relations Maureen Baker Fixed Income/Debt Investor Relations Lisa Fortuna US Investor Relations lisa.fortuna@arcelormittal.com We have released a new ArcelorMittal investor relations app available for download on IOS or android devices