Smart Chemistries. Enabling the use of Light Metals to meet Industry Light Weighting and Sustainability Goals

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1 Enabling the use of Light Metals to meet Industry Light Weighting and Sustainability Goals Terry Giles Global Business Development Manager September 20, 2016

2 Agenda Industry and Market Trends 2. The Challenges and Constraints 3. Introducing Element #13-4. Smart Chemistries 5. Appendix Slide 2 September

3 Industry Trends Increased Fuel efficiency by 2025 Increased use of Light Weighting Metals Magnesium Reduction in Processing Costs in the Paint Shop Energy Waste Treatment Maintenance Reduced Footprint in the Paint Shop Lower initial investment costs Slide 3 September

4 Market Trends for New Substrates Light weighting as a consequence of fuel economy legislation Global trend EU legislation is frontrunner A 110 B $ Market in 2020 Solutions: AHSS and press hardened steel Increased share of New applications for Magnesium Improved corrosion protection Zinc / Magnesium coatings AM60B, AZ31, etc. 15 year corrosion protection Increased cleaning on welds 4 September

5 - The right material, right place in Lightweight Chassis Design Weight Reduction by intelligent selection of cost/performance-optimized multi-material mix Modern Body Design realized via cost efficient manufacturing and assembly processes Alcoa expects to triple its automotive aluminum sales by 2015 Automotive News in 2012 N. America., Druker Worldwide, 2005 Ford Motor Co. Is exploring wider use of aluminum On its next-generation F-150 pickup to trim 700 pounds The Wall Street Journal Innovative material concepts support automotive light weighting 5 September

6 Why - Market Changes, Challenges and Constraints Customer Benefits Lower Ecological Footprint Energy CO 2 Reduction fewer heated stages shorter line layout lower circulation requirements in conversion stage Significant Sludge Reduction Compared to Zinc Phosphate Water Savings Current and Future Constraints Global and Regional Trends Elimination of Heavy Metals i.e. Nickel Reduction or Elimination of Nitrate/Nitrite Reduction or Elimination of Phosphates Maintain a Robust Process and Durability Performance Process Cost Reduction 6 September

7 Historical Processing of A little History Pretreatment Process and Content 1. Content: 0 to 30% Bonderite Zinc Phosphate parameters Source of Free Fluoride Process, Bonderite M-NT 2798 / Bonderite M-NT 54 NC Modified Zinc Phosphate parameters with an Pretreatment 2. Content: 30% to 50% Zinc Phosphate, Bonderite M-ZN Prepalene ALX type - Zinc Based Surface Conditioner Source of Free Fluoride Process, Bonderite M-NT 2798 / Bonderite M-NT 54 NC 3. Content: 50 to 85% Process, Bonderite M-NT 2798 / Bonderite M-PT 54 NC 4. Content: 0 to 100% Bonderite M-NT 1800 series Pretreatment % Alodine Organic / Inorganic Pretreatment w/ Deoxidizer 7 September

8 Current Process Content: 0 to 30% - Two Choices Metal Mix Content Up to 30% Process Zinc Phosphate Pretreatment Conditions Free Fluoride 100 to 250 ppm Immersion application strong circulation Bonderite M-ZN 958 Zinc Phosphating Process Direction of conveyor travel Fresh Halo Cleaning Spray/Immersion Water Surface Conditioner Zinc Phosphate Water Post Treatment DI/RO Actions: Increase circulation in Tank Reformulate Replenisher to maintain bath chemistry Introduce additive to control aluminum content, source of free fluoride. Increase filtration capabilities Rewards: Maintain bath chemistry Insure uniform conversion coating Least cost impact on system Meet performance requirements 8 September

9 Content: 0 to 50% - Two Choices Metal Mix Content 30 to 50% Process Zinc Phosphate Zinc Phosphate Pretreatment Conditions Zinc Surface Conditioner Free Fluoride 100 to 250 ppm Immersion application strong circulation Free Fluoride 20 to 50 ppm Immersion application strong circulation Post Rinse (Inorganic/Organic) Pretreatment for Process: Bonderite M-NT 2798/54NC Phosphating Process Direction of conveyor travel Fresh Halo Cleaning Spray/Immersion Water Surface Conditioner Actions: Some equipment modifications required Reformulate Replenisher to maintain bath chemistry Introduce additive to control aluminum content Separate Conversion Coating stages: for CRS, Zn, HIA substrates Zirconium for Zinc Phosphate 9 September Water Pretreatment DI/RO Rewards: Maintain bath chemistry Insure uniform conversion coating Small cost impact on system Meets performance requirements

10 Content: 30 to 50% - Two Choices Metal Mix Content 30 to 50% Process Zinc Phosphate Zinc Phosphate Pretreatment Conditions Zinc Surface Conditioner Free Fluoride 100 to 250 ppm Immersion application strong circulation Free Fluoride 20 to 50 ppm Immersion application strong circulation Post Rinse (Inorganic/Organic) Pretreatment for Zinc Process Bonderite M-ZN 958 Zinc Phosphating Process Direction of conveyor travel Cleaning Spray/Immersion Water Surface Conditioner Actions: Introduce zinc based surface conditioner Some equipment modifications required Reformulate Replenisher to maintain bath chemistry Introduce additive to control aluminum content Increase filtration capabilities Zinc Phosphate Water Post Treatment Fresh Halo DI/RO Rewards: Maintain bath chemistry Insure uniform conversion coating Small cost impact on system Meet performance requirements 10 September

11 Content: 50 to 85% Metal Mix Content Up to 85% Process Zinc Phosphate Pretreatment Conditions Free Fluoride - 20 to 50 ppm Inhibitor for Inorgainc Post Rinse Pretreatment for Bonderite M-NT 2798/54NC Phosphating Process Direction of conveyor travel Fresh Halo Cleaning Spray/Immersion Water Surface Conditioner Zinc Phosphate Water Actions: Equipment modifications required Reformulate Replenisher to maintain bath chemistry Introduce 2 additives to control aluminum content and to control the etch on aluminum Separate Conversion Coating stages: for CRS, Zn, HIA substrates Zirconium for Pretreatment DI/RO Rewards: Maintain bath chemistry Insure uniform conversion coating Medium cost impact on system Meet performance requirements 11 September

12 Content: 0 to 100% Metal Mix Content Process Pretreatment Conditions Up to 30% Zr Conversion Coating Inorganic Zr based Pretreatment 30 to 50% Zr Conversion Coating Inorganic Zr based Pretreatment Up to 85% Zr Conversion Coating Inorganic Zr based Pretreatment 100 % Conversion Coating Organic / Inorganic Pretreatmetn w/deoxidizer Zr Conversion Coating Inorganic Zr based Pretreatment Bonderite M-NT 1800/1820 Pretreatment Process Direction of conveyor travel Fresh Halo Cleaning Spray/Immersion Water Conversion Coating Actions: Reformulate Replenisher to maintain bath chemistry Control aluminum content in the conversion coating bath Separate cleaner designed for high etch Brownfield system significant equipment modifications Greenfield system smaller pretreatment footprint 12 September DI/RO Water Rewards: Wide flexibility on metal mix Insure uniform conversion coating Equipment cost impact on system Reduction in system maintenance Major Energy, WWT and Water savings Meet performance requirements

13 Cost Benefit criteria Items Chemical Costs Energy Costs Water Costs Waste Treatment Costs Maintenance Safety Performance 0 to 30% 30 to 50% 50 to 85% 0 to 100% Zirconium Key: Significant Impact Marginal Impact Nominal Impact 13 September

14 Cost Benefit criteria Items Chemical Costs Energy Costs Water Costs Waste Treatment Costs Maintenance Safety Performance 0 to 30% 30 to 50% 50 to 85% 0 to 100% Zirconium Key: Significant Impact Marginal Impact Nominal Impact 14 September

15 Cost Benefit criteria Items Chemical Costs Energy Costs Water Costs Waste Treatment Costs Maintenance Safety Performance 0 to 30% 30 to 50% 50 to 85% 0 to 100% Zirconium Key: Significant Impact Marginal Impact Nominal Impact 15 September

16 Cost Benefit criteria Items Chemical Costs Energy Costs Water Costs Waste Treatment Costs Maintenance Safety Performance 0 to 30% 30 to 50% 50 to 85% 0 to 100% Zirconium Key: Significant Impact Marginal Impact Nominal Impact 16 September

17 Pretreatment Process Comparison Zinc Phosphate,, and Greenfield Processes Bonderite M-ZN 958 Zinc Phosphating Process Direction of conveyor travel Cleaning Spray/Immersion Bonderite M-NT 2798/54NC Phosphating Process Direction of conveyor travel Cleaning Spray/Immersion Water Surface Conditioner Zinc Phosphate Bonderite M-NT 1800/1820 Pretreatment Process Cleaning Spray/Immersion Water Direction of conveyor travel Water Surface Conditioner Zinc Phosphate Conversion Coating Water Water DI/RO Water Fresh Halo Post Treatment Pretreatment Fresh Halo DI/RO Fresh Halo DI/RO Process Bonderite M-ZN 958: 1. Typically 11 to 12 Stages 2. If processing, Post Treatment Recommended 3. Sludge Removal required and Waste Treat impact 4. Higher Maintenance: filter media changes, boil outs, etc. Process Bonderite M-NT 2798/54 NC: 1. Separate Pretreatment Stages 1. CRS, Zn, HIA 2. Zr Alum. 2. Small equipment modifications 3. Reduced Maintenance: Less Sludge Greenfield Process Bonderite M-NT 1800/1820: 1. Smaller Pretreatment Footprint 2. Improved Equipment designs 3. Further reduction in Operating and Maintenance 4. Reduction in Energy, Water Requirements and WWT Impact. 17 September

18 As Content Increases.. Options and Bath Controls Metal Mix Content Process Pretreatment Conditions Up to 30% Zinc Phosphate Free Fluoride 100 to 250 ppm Immersion application strong circulation Zr Conversion Coating Inorganic Zr based Pretreatment Zinc Surface Conditioner Zinc Phosphate Free Fluoride 100 to 250 ppm Immersion application strong circulation 30 to 50% Zinc Phosphate (0 to 50% ) Free Fluoride 20 to 50 ppm Immersion application strong circulation Inorgainc Post Rinse Pretreatment for Zr Conversion Coating Inorganic Zr based Pretreatment Free Fluoride - 20 to 50 ppm Zinc Phosphate Up to 85% Inhibitor for Inorgainc Post Rinse Pretreatment for Zr Conversion Coating Inorganic Zr based Pretreatment 100 % Conversion Coating Organic / Inorganic Pretreatment w/deoxidizer Zr Conversion Coating Inorganic Zr based Pretreatment Slide 18 September

19 Thank you! Henkel Adhesive Technologies Your strategic automotive design partner

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