Delivering Sustainable Growth. Powder Metallurgy Andy Reynolds Smith Manfred Weber

Transcription

1 GKN Delivering Sustainable Growth Powder Metallurgy Andy Reynolds Smith Manfred Weber

2 Agenda GKN Powder Metallurgy overview Key global drivers Value creating growth design for PM Powder Metallurgy strategy summary 2

3 Powder Metallurgy 2010 Sales 759m Hoeganaes Powder Production Sinter Metals Component Manufacture Customers 220,000 tons of powder per year 6 billion parts per year plenty of applications Over 3,000 customers globally US no 1 and 22% global share World no 1 16% global share 75% Automotive 3

4 PM Increasingly Competitive vs Alternative Technologies Aligns with long term material and energy constraints Process Material Utilisation Energy Consumption * PM Casting Extrusion Forging Chip Machining 100% 75% 50% 25% 0% Primary Yield Losses Secondary Yield Losses Finishing Yield Losses Raw Material Utilization Primary Energy (MJ/kg) Secondary Energy Finishing Energy * Finished part 4

5 Advanced Process Technology - The Differentiator Benefits: Increased productivity Increased quality Design for PM Standard CAD/CAM Tool shops IP protection Powder Advanced low cost alloys High quality processability Global availability Adaptor/ Press CNC controlled compaction of complex shapes High precision and efficiency Furnace Controlled heat treatment HT-Sintering Energy saving Benefits: Less energy consumption Increased productivity 5

6 Powder Metallurgy Division Total divisional sales by region of origin Sinter Metals global market share Sinter EU 38% GKN Sinter Metals sales by customer Non Automotive Good progress to develop balanced sales in the regions Absolute share in AP and SA still modest, actions developed to exploit opportunity Top 8 cover more than 50% of total market Top 20 customers cover 50% of business 25% industrial customers 6

7 GKN Powder Metallurgy Global Presence 7

8 Unmatched Global Engineering Capability 400 engineers 135 active patent families resulting in more than 500 patents globally Design, simulation, development and validation capabilities Dedicated PM machining service centre Stand alone R&D centre with full size production equipment Advanced materials laboratory 27 core development programs Radevormwald, Germany 8

9 Powder Metals Operational Segmentation and Restructuring Eleven plants closed and four new plants opened in India and China Sinter plant scale and focus; 30% in 2005, 80% in 2010 and >95% in 2015 Bonn Bruneck Cape Town Milan Radevormwald Conventional Bad Brückenau Bad Langensalza Radevormwald Forge Radevormwald Filters 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Sinter breakeven reduced through substantial cost reduction CLOSED Sutton Lichfield Romulus Owosso Oberhausen Worcester Kolsva Zeeland Emporium 2 HC exited two lossmaking product lines and reduced fixed cost structure OPENED Argentina Move/ Expansion Ridgway India Additional Plant Riverton Sinter China New Plant Powder China New Plant 9

10 PM market share Europe Europe North America North America Global Global India China India 8 6 China Brazil GKN market share of addressable China target PM market Brasil 10

11 PM Sales and Margin Progression 14.0% 1,000.0 % ROS 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% m Sales -2.0% Q1 (200.0) ROS% Sales 11

12 Foundations of PM success Global Drivers Global Customers Climate Change - a Key Global Driver Global Customers Challenge and Chance for our Future BRIC BRIC Emerging Markets EXTERNAL Customer Relationships Financial Success Success! GETRAG Best Sinter Supplier 2010 GKN Sinter Metals President Awards 2010: Customer Service Technology Innovation Preferred Supplier 2010 INTERNAL 82 Performance Improvement For Production & Business Process Excellence Product Quality 6 Clear Strategy Business Excellence PM 2010 CI Planning Almost 100 % Corporate Standard Retention and Teamwork 105m Europe People Involvement Succession New business Controlling wins since 2009 Processes and Execution People Training Super Plans Leadership team Design for PM Regional Achieved Strategy KPI s New Vision and 10% ROS Mission 80% Cash Conversion Improved Account Management Received Customer Awards Operational Excellence Benefits: Zero PPM Reduced CNQ Elimination of machining operations Higher number of strokes/min. Design for PM Standard CAD/CAM Tool shops IP protection Advanced Process Technology The Differentiator Powder Advanced low cost alloys High quality processability Global availability Adaptor/ / Press CNC controlled compaction of complex shapes High precision and efficiency Technology Base Core Business Bearings Pulleys Powder Metallurgy - Technology without limit Technology / Capability Powder Development Development Center Design for PM Planetary Pumps Variable Valve Trains Process Development Capability Teamcenter and Program Management Hearts of Gold Growth rate > 10% Con Rods Best in Class PM Process Carriers RPPC Energy Reduction Engineering PM Process KH Resource Winning new Business OBD Business Processes Operating Model 5 Furnace Benefits: Controlled heat treatment 50 C higher temperature HT-Sintering doubles belt speed Energy saving 1250 C allows material cost reduced by 50% 2 POWDER METALLURGY UNLOCK THE POTENTIAL 27 Bearing Caps Customer Focus Technology Leadership Innovation Value Creation Bevel Gears 12

13 Agenda GKN Powder Metallurgy overview Key global drivers Value creating growth design for PM Powder Metallurgy strategy summary 13

14 Low Carbon Agenda Impacts the Industry Drivers Industry Drivers Reduce climate impact Improve energy efficiency Increase renewable energies Industry Technology Drivers High efficiency power trains Fuel efficiency Weight reductions Electrification Vehicle management systems Energy recuperation Alternative propulsion Light Weight Structure Intelligent Alternator Electric Pumps Start-Stop Automatic 14

15 Industry Technology Drives PM Technology Industry Technology Drivers Powder Metallurgy Technology High efficiency power trains Fuel efficiency Weight reductions Electrification Vehicle management systems Energy recuperation Alternative propulsion Design for PM High performance gears Net shape Filters and substrates Soft magnetics Fine powder technology Light weight materials 15

16 Global PM Market Growth Millions F'Cast (Jan 11) YOY Growth (%) Source: IHS Automotive Forecast, January LV production growth 5.9 % PM growth c.1% above market 16

17 PM Content and PM Value per Vehicle PM content per vehicle: Global average c.8.5kg PM value per vehicle: Global average c

18 Agenda GKN Powder Metallurgy overview Key global drivers Value creating growth design for PM Powder Metallurgy strategy summary 18

19 250 years of GKN 125 years of the Car 50 years GKN in Powder Metallurgy 19

20 Industry Trends and Drivers Industry trends New Products New PM Applications Energy Efficiency Start-Stop Systems Efficient Transmissions Dual Clutch Trans. and Gears Reduced Emissions Variable Valve Timing Driving Dynamics Electric Power Steering Electrification Soft Magnetics 20

21 Design for PM Engineered Powders Multi-part substitution Extreme Forming 3D Undercutting Unique Joining 21

22 Accelerated Trend Towards Design for PM Efficient Transmission Reduced Emissions Energy Efficiency Driving Dynamics Industrial Electrification New products and design for PM increase to c.40% of sales in

23 Unique Powder Metal Technology Capability Sinter Forged Differential Gears Higher core strength gear mass reduction feasible Better surface metallurgy elimination shot peening process Better shape capability net shape spline and retention groove Traditional Design GKN Design Torque max: 4800Nm Spherical Radius: 49.19mm Mass/set: 2814 g Torque max: 4800 nm Spherical Radius: mm Mass/set: 1525 g Gear Mass Savings = 46%!!! 23

24 Unique Powder Metal Technology Capability (Filters) Hydrogen Purification Inhalator Titanium Filter 24

25 Unique Powder Metal Technology Capability (MIM) 3D Geometry 800 C temperature resistance High corrosion resistance Finished surface rpm up to 100,000 MIM: Turbocharger Systems 25

26 Agenda GKN Powder Metallurgy overview Key global drivers Market and business segmentation Powder Metallurgy strategy summary 26

27 Powder Metallurgy Summary Key growth drivers Value of PM content per vehicle outgrowing market Continued market growth in Europe and North America with accelarated growth in India, Brazil and China Increasing penetration in Industrial markets Unique parts and powder position supports rapid exploitation of design for PM Bolt on acquisition potential to strengthen global positioning and new technology Powder Metallurgy set to outperform market growth with continued margin expansion 2 to 3% above PM market 27

28 GKN Delivering Sustainable Growth