Norway Aluminium innovations lead the way. Christine Frogner Brath Corporate Strategy & Analysis, Norsk Hydro ASA, November 7, 2017

Transcription

1 Norway Aluminium innovations lead the way Christine Frogner Brath Corporate Strategy & Analysis, Norsk Hydro ASA, November 7, 2017

2 Content of presentation 1. Aluminium applications, properties and growth 2. Technology development, energy efficiency and recycling as drivers for the circular economy 3. Briefly about Hydro (self reading) 2

3 3 1. Aluminium applications, properties and growth

4 Aluminium is found almost everywhere 4

5 Aluminium is the metal for the future Properties lead to increased market share Lightweight Recyclability Formability Conductivity Corrosion resistant Alloying technology 1/3 density of steel means lighter vehicles, lower energy consumption and reduced emissions 5% of original energy consumption 75% of all aluminium produced still in use Makes it possible to integrate different technologies into one solution, e.g. in buildings A superconductor for heat and electricity, more cost efficient than copper, enabling energy-efficient systems for electrical transmission, such as transfer components Natural oxide layer protects the metal against corrosion and makes it virtually maintenance free Aluminium can be made hard, soft, stiff, bendable, smooth, temperature resistant etc. depending on the actual need, by developing tailor-made alloys 5

6 The aluminium market development at a glance Strong growth, in particular for recycling China has grown China s recycling activity is limited 6

7 Within aluminium the power source is desisive for total emissions A Paradox: Gradually more of the world s aluminium production is based on coal Global aluminium production split on power source Miliion tonn Hydropower Nuclear Gas Coal Hydropower based aluminium production Coal based aluminium production Source: CRU 7

8 8 2. Technology development, energy-efficiency and recycling as drivers for a circular economy

9 Sustainability and responsibility requirements are increasing Governments and NGOs Markets and investors Customers and end users 9

10 Hydro s aspiration for higher value creation Hydro aims to be climate neutral by 2020 (10)

11 From words to action: Circular solutions for Circular Economy Become carbon neutral by 2020, seen from a life cycle perspective Hydro s climate strategy Value adding, climate friendly investments: Climate- and energyefficiency in production processes Climate advantage in the user phase Recycling to bring more metal back to the loop Karmøy technology pilot Primary Metal, Norway Alunorte Fuel Switch Project Bauxite & Alumina, Brazil Automotive line 3 Rolled Products, Germany UBC recycling line Rolled Products, Germany 11

12 At the Karmøy Pilot we will demonstrate the world s most efficient aluminium production kwh/ kg Al 18 17, ,8 14,4 14,4-14,0 13,9 13, ,3 11, Karmøy 1967 Hydro 1993 Hydro 1998 Hydro 2003 Global 2014* Hydro 2012 HAL HAL4e Pilot HAL4e Ultra Hydro Vision 12

13 Recycling is increasing in importance and sorting technologies becomes critical for closing the alloy loops Estimated recovery from post-consumed scrap collected Million tonnes Forecast Recycling is becoming more important as the generation of post consumed scrap material gains momentum Recycling capacity of 3.3 billion cans a year at the UBC line in Germany Building & Construction Packaging Electrical Other Transport Machinery & Equipment Consumer Durables 13

14 Sapa Zhongwang Shandong Huajian Guangdong Fenglu Xingfa Aluminium Guangdong JMA Guangdong Weiye Constellium Guangyin Asia Aluminum SAPA global extrusion champion worldwide reach, local presence Clear leader in a fragmented industry where closeness to customers and markets are key success factors Strong global positions 22,400 people Present in 40 countries Unrivalled position as #1 extrusions provider globally Extrusion volumes (2016), in thousand mt Aluminium design for e-car battery frames Primarily serving domestic Chinese markets Source: CRU, Sapa Annual Report and Investor Briefing

15 Climate challenges has no country borders Global solutions is the only way out of the global challenges in a low carbon society 15

16 Changed behavior demands new drivers in the world economy Rewards for doing the right things and punishment for doing the wrong 16

17 Norwegian design shop: EXPO NOVA This ALUMINIUM chair is the first model - produced by Källemo (of Sweden) - together with designer Mats Theselius - a big classic today 17

18 The circular economy s close fit with infinite aluminium «You are an important partner in making circular economy a reality. Aluminium is infinitely recyclable, and it doesn't lose any properties during the recycling process.» Karmenu Vella EU Commissioner for Environment Source: K. Vella keynote speech at EA event 2016 From a plan to reality: making the Circular Economy happen 18

19 3. Briefly about Hydro (For self-reading) 19

20 A resource-rich and customer-oriented aluminium company With robust positions across the value chain Bauxite & Alumina Energy Primary Metal Rolled Products Extruded Solutions Global provider of alumina, aluminium and aluminium products and solutions Leading businesses along the value chain; raw materials, energy, primary metal, rolled products, extruded solutions and recycling 35,000 employees at more than 150 locations in more than 40 countries on all continents Market cap ~NOK 110 billion/usd 14 billion Annual revenues ~NOK 137 billion (2016)* Included in Dow Jones Sustainability Indices, Global Compact 100, FTSE4Good *) The sum of Hydro s and Sapa s individual turnover In 2016 (20)

21 Engaged in the entire aluminium value chain Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling Rolling Recycling Bauxite Alumina Energy Primary Casting Products Extrusion Recycling (21)

22 World-wide production network Primary Metal and Metal Markets Canada, tonnes Alouette (20%): tonnes Expansion potential 6% 7 stand-alone remelters: 2 in the US 5 in Europe (UK, Luxemboug, France, Spain and Germany) Norway, tonnes Sunndal (100%) : tonnes Årdal (100%): tonnes Karmøy (100%): tonnes Høyanger (100%): tonnes Husnes (100%): tonnes 49% Remelt/ Recycling 1.0 million tonnes Primary 2.1 million tonnes Germany, tonnes Rheinwerk (100%): tonnes Slovakia, tonnes Slovalco (55%): tonnes 11% 4% Qatar, tonnes Qatalum (50%): tonnes Expansion potential 15% Brazil, tonnes Albras: (51%): tonnes 11% Australia, tonnes Tomago (12%): tonnes 3% Primary aluminium plants Recycling and remelt plants Attributable capacity: 2.1 million mt. Consolidated capacity: 2.4 million tonnes (Slovalco and Albras are consolidated). The smelters have an additional remelt capacity: 0.5 million tonnes. Consolidated casthouse capacity: 2.9 million tonnes. Qatalum is equity accounted in Hydro s results. * Rheinwerk smelter is included in the Rolled Products division for logistical reasons 22

23 Global leader in offering full range of lightweighting solutions Car makers utilizing aluminium to reduce weight and increase fuel-efficiency Automotive and transport representing significant share of Hydro s total portfolio High-growth automotive segment with substantial further potential due to aluminium s superior inherent properties Casthouse products Rolled Products Sapa Sales volumes* Automotive and transport Other * Sales volume 2016 for casthouse products and Sapa, estimate 2020 for Rolled Products 23

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