Polymer-coated Steel for Beverage Cans
A few giant dwarves emerged in the steel industry 70 47 Top 10 2004 30% of the world production (1 Bn MT) 31 30 29 20 19 18 17 17 Mittal Steel Arcelor Nippon Steel JFE Posco Baosteel Corus US Steel TKS Nucor Group
But steel remains less concentrated than competing sectors, and therefore less profitable Average EBITDA margin (%) 30 Iron ore Cement Platinum 25 Industrial gasses 20 Aluminium 15 Plastic 10 Steel 5 10% 20% 30% 40% 50% 60% 70% 80% 90% Top 5 - market share Source: Exane
Among materials for Packaging, steel is the biggest production, but packaging is a more significant outlet for other materials Global world consumption Plastics 155 Mt Glass 130 Aluminum 24 Mt Mkt Share % 2% 16 22% 5,3 38% 60 63% 82 M. MT Steel 950 Mt Steel Aluminum Plastics Glass
Tinplate is a small part of steel Flat carbon 48 % Long carbon 40% Stainless 12% Machinery equipments (28%) Building (23%) Automotive (20 %) Others (24%) Tinplate (5%)
but more concentrated than other Steel Applications Top 10 (10/11 Mt) in 2004 60% of the world production (16 Mt) 1 830 1600 1600 1 550 1080 1 000 980 700 600 550 API US STEEL GROUP MITTAL STEEL* CORUS** RASSELSTEIN NIPPON STEEL CSN** JFE TOYO KOHAN BAOSTEEL * LNM = ISG + Iscor + Karmet ** Includes 50% Lusosider
API: a market oriented strategy Beverage Cans: 17% Food Cans & Ends 48% 3p can Closures: 9% General Line 18% Aerosol: 8%
Beverage can stock : a key market for Arcelor New STEELIUM s brand means : Commitment to the whole market Development/Innovation (new products) Supply chain Technical assitance & expertise (CTS and Lab organizations...) Partnerships
Bev cans consumption has grown by 54% in 10 years in Europe. MS is 60% Aluminum / 40% Steel
Innovation is the key for leadership in beverage can market : 2 breakthroughs in development work produced exciting perspectives 1. Dual co-extrusion Coating (DEC) on steel 2. «Dry» DWI process for can making Value Added to the Chain Environmentally friendly Improved Overall Quality
1. DEC Process : a Toyo Seikan/Toyo Kohan patent Extrusion Coating Section Extruder Die Coating-Roll Pre-Heating Roll Substrate Pre-Roll Quench A compact & evolutive process, very competitive comparing with laminated technology : - Starting point is PET resin instead of laminated film. - Layers coating of both sides at same time.
2 Layers of PET on both sides of the steel strip, specifically designed for Beverage Cans Internal Layer 20/30 µm Substrate ECCS (160/200µm) External Layer 10/20 µm
Arcelor Packaging International has purchased the TOYO-KOHAN DEC license : The extrusion line design The process and product controls The PET grades for DWI process with the aim to supply the DWI Can market at short term
Polymer-coated Steel has already been used for beverage cans for a long time - TULC (Toyo Ultimate Light Can) : draw-stretch ironing 60 Bns Commercial Cans in Japan since 1991 - RBS (Redicon British Steel) : draw-redraw DWI Dry process for Precoated Steel with high Ironing Ratio = technical breakthrough (Toyo Seikan Development)
Dry DWI processing offers significant improvement for canmakers ENVIRONMENT -No Varnishes -No Water Consumption -Less Energy (1/3rd) -Less CO2 emission (tn / month) (l / can) (000 m3 /month) CO2 emission Industrial Waste Water Consumption 0 10 20 30 40 Dry Process DWI Std ECONOMICS -Significant reduction of investment for a new line : no Washer, no Inside Spray, no Bake Oven, no Incinerator, no Water Treatment -Significant production gains in operating costs (labour, utilities,etc...)
Dry process needs no further protection after forming No VOC Emission No Water Consumption Cupping Body making & trimming Washing & drying Base coating Baking Printing Baking 1 st inside coating Baking 2 nd inside coating Baking Rim coat Necking & flanging Inspection & Paletization
The new typical beverage can plant would be simplified LAMINATED COIL FEED CUPPING PRESS BODYMAKER TRIMMER Heat Set OVEN PRINTING OVEN NECKER/ FLANGER PALLETISER
and the quality of the can is improved Protection : PET is more resistant than lacquer as a product barrier, as bottom protection, and wall denting. Moreover 100% of cans will be ERV tested and new dome shape will optimise strength. Abrasion resistance : Better behaviour in conveyors Appearance : New decoration possibilities (white, clear or pigmented Polymer) Potential to pack new products : Water, Milk, Food, etc.. R
future perspectives are bright for new shapes
This technology breakthrough will produce the next major step forward in DWI Beverage and Food Can production. API s total commitment to this process signals to the Can making world : Re-think all of your development plans so as not to miss out on the benefit s the DEC, (dry) DWI process will bring.