Specialty Alumina positioned for growth?

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1 Barbara Steuler Specialty Alumina positioned for growth? Barbara Steuler, Almatis Specialty Alumina in higher-performance applications Specialty alumina s positioned for growth? Demand Driver and Regional differences in usage High-end markets pushing production and the quality Think alumina, think Almatis.

2 Facts about Almatis Global Market Leader of Specialty Alumina More than 100 years of alumina experience Key markets: Refractory, Ceramics, Polishing Complete Specialty Alumina Portfolio 10 manufacturing locations worldwide 6 major sales and supply chain centers 6 application & development labs 1,150 employees Fully integrated manufacturer with own alumina refinery Sales in 2014: ~ 560 Mio. US $ 2

3 Our Locations Global manufacturing and supply network closer to our customers Sales Office Application Lab Plant Refinery Rotterdam Frankfurt Bauxite Burnside Leetsdale + Neville Dalton Ludwigshafen Kolkata Falta Qingdao Tokyo Iwakuni Burnside, LA Campinas Bauxite, AR Dalton, GA Leetsdale + Neville, PA Rotterdam, NL Ludwigshafen, D Falta, IN Qingdao, CN Iwakuni, JP 3

4 Specialty alumina usage in higherperformance applications A Niche Market Why Specialty Alumina Markets and Industries

5 Specialty Alumina - A Niche Market Aluminium Refractories Bauxite Bayer Refining ~100,000,000 t SGA usage* ATH SGA & other Specialty Producers Specialty Calcined Alumina ~1,700,000 t Ceramics & Catalyst ~2,800,000 t ~700,000 t Commodity hydrate Specialty hydrate Abrasives & Polishing *) Volume view (Al 2 O 3 ) ~3,300,000 t* ~700,000 t* ~400,000 t 5

6 Why Specialty Aluminas? Products and applications are sophisticated with high technology requirements Unique Characteristics Heat resistance and thermal stability Electrical insulation & dielectric strength Corrosion and wear resistance High mechanical strength Abrasiveness. Unique and value adding characteristics for versatile applications Outstanding cost/performance ratio compared to other materials Demanding Technology Many value adding processing steps State-of-the-art processing know how Strict control of the production processes High product quality and consistency Educated staff with high process competence. Application expertise for high-end markets Tailored products for individual uses Innovation, R&D 6

7 Polishing & Abrasives Ceramics Refractories: Markets and Industries Many product solutions across diverse industries with huge variety of end uses Heat, corrosion and wear resistance High alumina aggregates: Tabular, Magnesium Aluminate Spinel, BSA 96 Calcined and reactive aluminas Calcium aluminate cements and binders 60% 1.7 million MT Superior mechanical, electrical, thermal, and chemical properties Specialty medium to low soda calcined aluminas Thermally reactive and very high surface are alumina Low soda tabular and 25% 0.7 million MT Cut and Shine Microcrystalline to macrocrystalline polishing calcined aluminas WFA for abrasives market 15% 0.4 million MT 7

8 Refractories Heat, corrosion and wear resistance Refractories are formulated for the harsh conditions they will face in service. These include applications in the production of iron and steel, cement, petrochemicals, non-ferrous, metal, glass and others. Aggregates are the backbone of a refractory formulation and provide thermal and dimensional stability, corrosion resistance The matrix products, such as calcined and reactive alumina, optimize the particle packaging and increase the refractoriness of the product. End Use 8

9 Ceramics Superior mechanical, electrical, thermal, and chemical properties Highly consistent properties of the specialty alumina ensuring efficient, defectfree technical ceramics manufacturing Tightly controlled calcination degree, purity level, the crystal shape, the grindability and particle size distribution are critical to the end-use application Many tailor-made products are available to meet the individual requirements End Use 9

10 Polishing Key characteristics : Cut and shine Alumina is used for lapping and polishing including metal, glass and stone, car cleaners, brake linings, electronic parts, household cleaners... Accurately controlled purity levels, crystalline morphology and particle size distributions ensure the consistency necessary for optimum results Calcination defines the crystal structure & size impacting the cut and polishing properties End Use 10

11 Market Growth Driver and Demanding Applications Regional differences Trends & Drivers

12 Global Refractory Market Specialty alumina for high-end refractories - a growing niche within Refractories due to shift to high-end steel by Application by Product Category by Geography 13% 2% 2% 4% 2% 4% steel cement non-ferrous 24% 9% 3% 12% 5% Reactives CAC Spinel 32% 16% Americas Europe India 73% glass ceramics chemicals others 18% 29% Tabular WFA Standard Ca. SGA 3% 14% 5% 30% Japan SE Asia China Overall Growth for the refractory industry is mainly driven by steel Huge diversity of products needed for premium refractory performance Total consumption on specialty alumina for refractories is still low in China 12

13 Kg Al2O3 consumption / MT steel Applications getting more demanding A drive towards higher quality steel in China and India requires higher performance refractories which are consuming more specialty alumina Steel technology characteristics per region Most advanced technology Very advanced technology Developing technology Developing technology Large growth potential JP EU US RU Central Europe CH IN

14 Refractories Trends & Drivers Steel The rising penetration of high-quality steel production in emerging markets drives demand for higher purity refractories Technology shift from bricks to monolithic castables ( lower labor costs) Non ferrous metal Advanced Aluminium and tightly controlled alloys expected to grow driven by automotive, aerospace, beverage-can consumption Cement Increased demand for infrastructure Glass & Ceramics Continuous growth for specialty glass and specialty ceramics 14

15 Global Ceramics Market Huge diversification with tightly defined and consistent properties ensuring efficient, defect-free ceramic manufacturing by Application by Product Category by Region High value ~ 45% Advanced Environmental Specialties Spark Plug High Voltage Wear Parts Catalyst Tiles LCD Glass High value ~ 45 % high purity reactives low soda specialty Tabular WFA medium soda standard Americas Europe Japan India SE Asia China More than hundreds of end uses in ceramics part manufacturing Many custom-made product for the individual ceramics application Stronger growth rates and shift of the manufacturing into the emerging markets 15

16 Continued growth with established Markets Alumina had been at the forefront of materials innovation for decades and growth will continue with more demanding applications and growth in emerging regions Advanced ceramics /Structural ceramics longer life times, higher speed/pressure and temperatures More efficient and cheaper processing Environmental ceramics Filters: tighter legislation for emissions Catalytic substrates: thinner wall (porous ceramics) for better fuel efficiency and lower backpressure. Electronics & Electrical Substrates: higher power density, but smaller pieces Spark Plugs: higher performance, longer lasting, smaller & fewer plugs per engine High Voltage Increased power needs, especially in the developing countries. 16

17 Growth by newer Technologies & Legislations Technology continues to evolves and provide the world with a faster, smarter and greener lifestyle at the same time demanding higher energy efficiency LCD glass higher precision and flexible LCD s For TV sector: even larger glass panels. Waste Water Treatment Tighter control of pore sizes of filters Throughputs are requested to increase (efficiency) LED U.S. and EU legislation pushes for LED manufacturing High purity alumina is needed at lower cost Renewable Energy Requires higher performing materials in gas turbines or stationary energy storage devices 17

18 Quality, Support and Innovation Alumina expertise and customer relationship, an important element for growth Consistent premium quality enable efficient processing and defect free end-use products Extensive knowledge about customers processes and products required R&D and application labs are supporting end-user with new product solutions Corporation with customers and universities on specific product solution Continuous improvement on technologies & process knowledge 18

19 Specialty Alumina is a Memory Chip Feedstock pre-defines the performance of the specialty alumina in the end-use Backward Integration allows complete control of the Value Chain End Use Applications Bayer Refinery Feedstock Digestion Clarification Precipitation Calcination Specialty Processing Purification Calcination Sintering Crushing Milling Classification Specialty Alumina Products ATH Calcined Alumina Reactive Alumina Tabular Alumina Spinel High Alumina Cements Refractory Ceramics Polishing Abrasives Chemicals Adsorbents & Catalysts Innovation Power 19

20 Quality starts at the Specialty Alumina Refinery Backward integration provides full control on the critical feedstock properties and higher efficiency on the entire specialty alumina production processes Bauxite Digestion Filtration Precipitation Calcination control of Na2O, SiO2, FeO3, CaO and important trace impurities PSD, morphology Thermal reactivity and grindability 20

21 Specialty Alumina Processing Know How The properties of the alumina feedstock are most critical to the all further processing steps in specialty alumina processing : Purification Calcination Milling & Sizing Tabular Sintering Classification Na2O, SiO2, FeO3, CaO Calcines UG Calcined SG Tabular Morphology, surface area crystal size PSD Fired Density Tabular sized Defined Particle Sizes Grindability Thermal reactivity Cystal Structure Purity 21

22 Specialty alumina positioned for growth! SUMMARY & Conclusion Longer term growth expected to be at about 3-4 % Fueled by higher demand driven by quality in BRIC countries > 5% More modest growth in Europe, NA and Japan 2-3% Products and applications are getting more demanding and sophisticated with higher technology requirements High-end steel qualities in the emerging countries, is expected to lead to further increases in demand for high-quality refractories Specialty Alumina's will see further increase in demand as alternative to natural raw materials Alumina Ceramics and Polishing applications provide many opportunities for custom made innovations Industry becomes increasingly specialized and expanded 22

23 Thank you for your attention! Think alumina, think Almatis. 23

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