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TRANSCRIPT
Norway – Aluminium
innovations lead the way
Christine Frogner Brath
Corporate Strategy & Analysis, Norsk Hydro ASA, November 7, 2017
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
1. Aluminium applications,
properties and growth
3
Aluminium is found almost everywhere
4
Aluminium is the metal for the future
5
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
Properties lead to increased market share
The aluminium market development – at a glance
6
Strong growth, in particular
for recycling
China’s recycling activity
is limited
China has grown
Within aluminium the power source is desisive for total emissions
Source: CRU
0
10
20
30
40
50
60
70
80
90
2000 2005 2010 2015 2020 2025
Hydropower Nuclear Gas Coal
Global aluminium production split on power sourceMiliion tonn
7
A Paradox: Gradually more of the world’s aluminium production is based on coal
Hydropower based
aluminium production
Coal based aluminium
production
8
2. Technology development, energy-efficiency and recyclingas drivers for a circular economy
Sustainability and responsibility requirements are increasing
9
Governments
and NGOs
Customers
and end users
Markets
and investors
(10)
Hydro’s aspiration for higher value creation
Hydro aims to be climate
neutral by 2020
Climate- and energy-
efficiency in production
processes
Climate advantage in the
user phase
Recycling to bring more
metal back to the loop
UBC recycling line
Rolled Products, Germany
Automotive line 3
Rolled Products, Germany
Karmøy technology pilot
Primary Metal, Norway
11
Alunorte Fuel Switch Project
Bauxite & Alumina, Brazil
Hydro’s climate strategy Value adding, climate friendly investments:
From words to action: Circular solutions for Circular EconomyBecome carbon neutral by 2020, seen from a life cycle perspective
At the Karmøy Pilot we will demonstrate the world’s most efficientaluminium production
12
17,5
1514,8
14,4 14,4-14,013,9
13,5
12,3
11,5
10
6
8
10
12
14
16
18
Karmøy1967
Hydro1993
Hydro1998
Hydro2003
Global2014*
Hydro2012
HAL3002013
HAL4ePilot
HAL4eUltra
HydroVision
kWh/
kg Al
Recycling is increasing in importance and sorting technologiesbecomes critical for closing the alloy loops
13
0
5
10
15
20
25
30
35
Building & Construction TransportPackaging Machinery & EquipmentElectrical Consumer DurablesOther
Forecast
Estimated recovery from post-consumed
scrap collected
Million tonnes
Recycling capacity of 3.3 billion cans a
year at the UBC line in GermanyRecycling is becoming more important as the generation of post consumed scrap material gains momentum
0
500
1000
1500
Sa
pa
Zh
on
gw
ang
Sh
an
do
ng
Hua
jian
Gu
ang
do
ng
Fe
ng
lu
Xin
gfa
Alu
min
ium
Gu
ang
do
ng
JM
A
Gu
ang
do
ng
We
iye
Co
nste
llium
Gu
ang
yin
Asia
Alu
min
um
SAPA global extrusion champion – worldwide reach, local presenceClear leader in a fragmented industry where closeness to customers and markets are key success factors
14
Primarily serving domestic
Chinese markets
Unrivalled position
as #1 extrusions
provider globally
Extrusion volumes (2016),
in thousand mt
Strong global
positions
22,400 people
Present in
40 countries
Source: CRU, Sapa Annual Report and Investor Briefing 2016
Aluminium design for e-car battery frames
Climate challenges has no country bordersGlobal solutions is the only way out of the global challenges in a low carbon society
15
Changed behavior demands new drivers in the world economyRewards for doing the right things and punishment for doing the wrong…
16
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
The circular economy’s close fit with infinite aluminium
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Source: K. Vella keynote speech at EA event 2016 ‘’From a plan to reality: making the Circular Economy happen’
«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
19
3. Briefly about Hydro
(For self-reading)
A resource-rich and customer-oriented aluminium company
• 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
Primary
Metal
Rolled
Products
Energy
Bauxite &
Alumina
Extruded
Solutions
With robust positions across the value chain
*) The sum of Hydro’s and Sapa’s individual turnover In 2016
(20)
Engaged in the entire aluminium value chain
Bauxite Alumina Energy Primary Casting Products
Rolling
Extrusion
Recycling
Recycling
(21)
Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling
World-wide production networkPrimary Metal and Metal Markets
Qatar, 300 000 tonnes• Qatalum (50%): 300 000 tonnes
• Expansion potential
Germany, 235 000 tonnes• Rheinwerk (100%): 235 000 tonnes
Canada, 120 000 tonnes• Alouette (20%): 120 000 tonnes
• Expansion potential
Brazil , 235 000 tonnes• Albras: (51%): 235 000 tonnes Australia, 70 000 tonnes
• Tomago (12%): 70 000 tonnes
Norway, 1 015 000 tonnes• Sunndal (100%) : 390 000 tonnes
• Årdal (100%): 190 000 tonnes
• Karmøy (100%): 190 000 tonnes
• Høyanger (100%): 65 000 tonnes
• Husnes (100%): 180 000 tonnes
11%
49%
15%
3%
6%
11%
Slovakia, 90 000 tonnes• Slovalco (55%): 90 000 tonnes
4%
7 stand-alone remelters:• 2 in the US
• 5 in Europe (UK, Luxemboug, France,
Spain and Germany)
22
1.0million tonnes
Remelt/Recycling
2.1million tonnes
Primary
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
‘* Sales volume 2016 for casthouse products and Sapa, estimate 2020 for Rolled Products
23
Casthouse
products
Rolled
Products
Sapa
Automotive and transport representing significant share of
Hydro’s total portfolio
Sales volumes*
Automotive and transport Other
Global leader in offering full range of lightweighting solutionsCar makers utilizing aluminium to reduce weight and increase fuel-efficiency
High-growth automotive segment with substantial further
potential due to aluminium’s superior inherent properties
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