Value Added Aluminum Manufacturing:

Market Analysis for Investment Attraction

by

Daystar Marketing

December 2008

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Table of Contents Table of Contents ............................................................................................................................ 2 Executive Summary ........................................................................................................................ 4 Introduction and Purpose ................................................................................................................ 3 Aluminum World Demand and Forecasts ....................................................................................... 9 End Use Aluminum Markets ......................................................................................................... 20 Aluminum Products ....................................................................................................................... 21 Matching Market and Process Opportunities to Kitimat Terrace Capabilities ............................. 29 Value Added Aluminum Product Assessment .............................................................................. 31 Cast Aluminum Markets and Applications ................................................................................... 33 Die Casting .................................................................................................................................... 35 Target Company Identification…………………………………………………………………..42 Report Conclusions and Recommendations…………………………………………………… 50 Appendices Appendix 1 - Uses of Aluminum, End Use Markets…………………………………………….52 Appendix 2 - Aluminum and Primary Product Manufacture……………………………………63 Appendix 3 - Die Casting Molten Metal Supply Research…………………………………… 65 Appendix 4 - Die Casting Target Companies ............................................................................... 67 Appendix 5 - Opportunities to Meet with the Metal Casting Industry .......................................... 77

Project Leader: Austin Byrne, Executive Director, K.T. Industrial Development Society Project Consultant: Blair Salter, President, Daystar Marketing, Delta, B.C. Tel: 604 943-0739 email: blair_salter@telus.net Project Assistance: Paul Henning, Rio Tinto Alcan Kevin Dobbin, Rio Tinto Alcan Bill Eynon, KTIDS Lynn Stevenson, KTIDS

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Introduction and Purpose The purpose of this report is: 1. To identify aluminum growth markets and products. 2. To identify the aluminum processing technologies associated with these products. 3. To identify downstream processing technologies that would benefit from siting a new plant

expansion in proximity to the RTA aluminum smelter. 4. To identify the advantages associated with such a plant siting so that KTIDS can market

those advantages to the appropriate industry. 5. To identify promising growth regions and companies that fit the target industry profile. Kitimat Terrace Industrial Development Society (KTIDS) and the cities of Terrace and Kitimat are tasked with creating sustainable jobs and economic development in their region. Rio Tinto Alcan (RTA) operates a major primary aluminum smelter in Kitimat. The smelter is in the middle of a major multi-billion dollar upgrade that will make it among the most competitive smelters in the world. At present, there are no downstream aluminum value-added processing jobs in the community. It is felt that the presence of the smelter is a major economic development asset in the community and affords an opportunity for value added jobs and investment. KTIDS has commissioned a market analysis of aluminum industry growth opportunities that are a downstream fit for the RTA smelter. Daystar Marketing and KTIDS want to acknowledge the assistance of RTA in the preparation of this report, and in particular the support of Paul Henning, Vice President BC Operations & Strategic Projects Western Canada. RTA has provided information on smelter products as well as technical support. The plan is to develop two complimentary reports. The first report will provide the market research to understand the investment opportunity. Relevant existing market reports will be researched and conclusions drawn. The second report will be the business case to present to the aluminum industry regarding the advantages of investing in Kitimat/Terrace. The decision to proceed with the investigations was made by KTIDS in mid 2008. In the fall of 2008, a severe economic downturn hit world and aluminum markets. The decision was made to complete the first phase of the report, but delay the business case preparation to when markets start to recover and potential investors can receive timely information.

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Executive Summary Purpose The purpose of this report is: 1. To identify aluminum growth markets and products. 2. To identify the aluminum processing technologies associated with these products. 3. To identify downstream processing technologies that would benefit from siting a new plant expansion in proximity to the RTA aluminum smelter. 4. To identify the advantages associated with such a plant siting so that KTIDS can market those advantages to the appropriate industry. 5. To identify promising growth regions and companies that fit the target industry profile.

Summary of World Aluminum Market Analysis

• Demand for aluminum was expected to be strong (6% CAGR) pre-recession. Fundamentals for the metal are good.

• China dominates world market demand and production and this trend is expected to continue for the next 10 years.

• North American demand for aluminum is expected to be lower than that in other world markets.

• China is currently a net exporter of aluminum. • China has issues with primary aluminum production. Energy supply is not reliable and is

in short supply. Energy costs are high. • The Chinese government is actively discouraging the production of primary aluminum

products such as wire, bar and rod through abolishing 10% export tax rebates. This may be extended to semi-finished and fabricated products.

• Chinese aluminum fabricators (extruders, forgers, and castings) have a large cost advantage over North American operations (due to low cost labour, transportation, capital costs).

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World Markets for Aluminum

• Top markets for the industry are transportation 27%, beverage cans and other packaging 15%, and building construction 22%. Other markets include electrical (wire and cable 13%), machinery 10% and consumer durables (9%).

• In 1994, transportation first emerged as the largest market for aluminum, at about one-quarter of the market, with passenger cars accounting for the vast majority of the growth. That trend has continued.

• Emerging opportunities in the aluminum industry are to be in: Transportation - Aerospace - Automotive lightweighting

- Mass transportation Construction - Sustainable construction materials Energy Exploration - Offshore oil and gas extraction All sectors - Recycling content Aluminum demand tends to track growth in the general economy. Some niche sectors are growing more rapidly than the general economy, such as the trend to automotive lightweighting. Aerospace and energy tend to go through more cyclical growth cycles. Construction, electricity, packaging, machinery and consumer durables move with economic times. The result is an overall smoothing effect that tends to make aluminum demand relatively steady. The industrialization of China has had a major influence on world demand for aluminum. It is fair to say that world aluminum demand goes as China goes. There is little data on the market demand for downstream aluminum from China, but it is fair to say that demand is equally strong in all market sectors. Chinese demand dwarfs demand from all western economic sectors. Chinese economic policy, through export tax rebates, smelter development and energy pricing will strongly influence the ability to sell into that market.

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Intermediate/Mill Product Manufacture

Source: Aluminum Technology Roadmap 2006

• Rolled products are the largest use of mill products with 35% of world production going into sheet, plate, rod, bar and foil. Shape casting represents 25% of the market and extruded products are 28%. Wire and drawn product (tube) are 10% of the market.

Competitive Advantages of Kitimat Terrace for Value Added Aluminum

• Availability of molten metal alloys direct from smelter, (lower capital costs for alloying and melting furnace and lower operating costs for melting)

• Access to a large volume of alloy (required to justify alloy production costs) • Low energy operating costs • Siting in proximity to smelter for molten material transfer. • Good marine transportation routes at reasonable costs to Asia • Canadian dollar currency advantages

Competitive Disadvantages of Kitimat Terrace

• Distance to markets • High labour costs relative to Asia • Captive aluminum supply (single source of alloy)

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Aluminum Technology Competitive Assessment for Kitimat Terrace

Plant Output Investment Labour Energy Plant Input Location Potential

for Kit/Ter Mill Products – sheet, plate, bar, rod, wire, foil or specialty alloys

Very large, hundreds of millions

High Very high Solid Ingot, Slab

Asia Low

Rolling Mill- sheet, foil

Medium Medium Medium Solid Slab Low tech, Emerging markets

Low

Extrusion – profile products for all markets

Medium-Low

Low Medium Solid rod plus heat

Near customers

Medium

Forging – metal forming, bending, stamping as part of production process

Medium-Low

High Low Solid sheet Near customers

Low

Casting – largely for automotive and aerospace

Medium-Low

Low High Molten alloy Near customers or aluminum supply

High

• Casting is the best fabricating technology that makes use of Kitimat Terrace competitive advantages – energy cost savings, use of molten metal, large volume of production and automation to reduce labour content.

• For large production runs, the trend is toward automated molding processes; permanent mold castings and die casting. Die casting is the most widely used casting technology.

Die Casting

Source: �ADCA 2008

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• There are two types of die casters: custom casters and captive casters. Custom die casters are those who create specialized casts for sale to others and captive die casters are those who create castings for their own use in a shop or manufacturing plant.

• Captive die casters choose to make the product themselves. They feel they can better control quality. Typically they are also dealing in sufficient volumes of castings that they can save money by keeping the casting within their overall operations.

• Custom die casters tend to locate near their customer base. They do plastic injection molding as well as metal molding, and would require a great variety of alloys and metals. Custom casters will be less likely to expand to Terrace Kitimat than captive casters.

Report Conclusions The best opportunity for value added aluminum manufacture for Kitimat Terrace is in the captive aluminum die casting or permanent mold casting business. Captive aluminum casting is performed in the automotive power train industry, marine engines, non-auto engines, power tools. World recession is underway at the time of this report. It would be inappropriate to approach any companies in any of the casting markets at this time. Kitimat Terrace must monitor the industry and wait for signs of economic recovery. This time can be used to better understand the needs of the industry through active monitoring of industry activity and building up a database of potential target companies. Aluminum fabrication industry growth will be stronger in Asia than in Europe or North America. Kitimat Terrace is well positioned to ship to this market. The competitiveness of Kitimat Terrace production of fabricated aluminum products will depend on Asian government policies concerning export tax rebates and energy pricing. Captive aluminum casting companies should be targeted in Asia as well as North America.

Sample Captive Aluminum Die Casting Companies in orth America

MERCURY CASTINGS - Mercury Marine Stillwater Oklahoma U.S.A. BRIGGS & STRATTON CORP Murray Kentucky U.S.A. CHRYSLER CANADA - Etobicoke Casting Plant Toronto Ontario Canada BLACK & DECKER Fayetteville North Carolina U.S.A. RYOBI DIE CASTING USA INC Shelbyville Indiana U.S.A. CHRYSLER CORPORATION Kokomo Indiana U.S.A. MITSUI COMPONENTS (USA) INC Casa Grande Arizona U.S.A. BRIGGS & STRATTON CORP Stateboro Georgia U.S.A. GM POWERTRAIN BEDFORD Bedford Indiana USA HONDA MANUFACTURING OF AL LLC Lincoln Alabama USA TORO COMPANY Windom Minnesota U.S.A. Canadian Auto Parts Toyota Delta BC Canada Montupet Beaucette River Quebec Canada Nemak Windsor Ontario Canada

Recommendations/Next Steps

• Develop a 3 year marketing plan to market the Kitimat Terrace region to the captive aluminum die casting industry in North America and Asia.

• Develop and implement a casting industry monitoring and research program through industry periodicals, magazines and e-bulletins.

• Keep abreast of new casting technologies designed to make use of molten metal supply and lower production costs.

• Implement the marketing plan when the world economy rebounds.

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Aluminum World Demand and Forecasts A) World Aluminum Demand by Market Region World production and consumption of primary aluminium has been constantly on the rise. Between 1995 and 2005, global primary aluminium production experienced steady growth at a Compound Annual Growth Rate (CAGR) of 4.5%; the most significant increase being in China. Since 2000, virtually all of the aluminium produced every year has been sold.

Source: Aluminum Technology Roadmap 2006

Asia was the largest market for aluminum in the world in 2005 at 39%, followed by North America and Western Europe at 25% and 23% respectively. However, the growth rates of aluminum demand in those markets are very different. World demand is shifting to Asia.

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B) Forecast World Demand

Alcoa have published the preceding analysis of the world aluminum market as of September 2008.

• Demand for aluminum has grown at 6% compound annual rate over the last 10 years and that rate was expected to be maintained over the next 10 years.

• China has been the fastest growing market for aluminum products at 12% annual growth, and is expected to lead the world in growth over the next 10 years.

• North American demand will increase at 4%, a lower rate of growth than any other world markets.

• By 2017, Asia will consume 55% of world aluminum (37.7 M tones), North America 13%, Western Europe 15%.

• As a single country, China will consume 40% of world aluminum by 2017. • There is a clear shift in demand from North America and Western Europe to

Asia over the 20 year period of 1998 to 2017.

China and India are expected to emerge as major world manufacturing centres over the next 20 years. They will also be major consumers of aluminum. Both countries have problems with aluminum manufacture as they are constrained by energy availability and energy cost, and may be looking to other countries for aluminum supply.

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C) World Aluminum Production Top Producing Countries 2005

Canada ranks third in the world in aluminum production, behind China and Russia as of 2005. Chinese production is more than double that of Russia or Canada. In 2007 Chinese production was estimated at 12 million tons. Chinese market demand for aluminum leads the world and is growing at double digit rates. (see attached articles.)

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Canadian Aluminum Production 2006

Source: Canadian Minerals Yearbook 2006

Aluminum production in Canada is concentrated in Quebec. Rio Tinto Alcan is by far the

largest producer in Canada. The RTA Kitimat upgrade will increase capacity from 277,000 to 400,000 tons per year, but this will only represent 12% of Canadian production. The vast majority of aluminum industry research and product development takes place in Quebec and is strongly supported by the province of Quebec, the federal government and industry.

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Major World Aluminum Companies 2008

Aluminum production worldwide is dominated by Alcoa, Rio Tinto Alcan, UC RusAl (Russian Aluminum), and Chalco (China Aluminum). These major companies compete on a worldwide scale for market share and power project acquisition. China has one third of all aluminum smelters in the world (see attached article).

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C) World Aluminum Prices 2000 - 2008

Source: MetalBulletin September 2008 aluminum pricing report. The market price of aluminum has been relatively depressed for many years and suddenly surged in the last 4 years, 2004-2008. Market prices for all metal commodities have shown a similar pattern. Aluminum has not spiked as abruptly as lead, nickel and copper. Prices have been volatile in 2008, and world demand has softened due to a potential worldwide recession. It is uncertain when markets will recover, or how the Chinese market will be impacted.

High commodity prices are attributed to:

Source: MetalBulletin, 2008

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Supporting Article - Section: Business – Economist 2007, Aluminium

Gimme smelter

Are more big deals ahead? The notion that aluminium is merely a dull, grey metal has taken something of a hammering lately. A dramatic string of mergers, bids and counterbids has enlivened an industry that is proving to be as malleable as its end product. On July 12

th Rio Tinto, one of the world’s biggest mining firms,

comprehensively trumped Alcoa’s hostile $27 billion offer for Alcan, a Canadian rival, by stumping up $38.1 billion in cash. The deal will make Rio Tinto the world’s top aluminium producer (see chart), ahead of Russia’s RUSAL, which was itself involved in a big merger in March. And the flurry of activity in the industry might even result in Alcoa itself being gobbled up. BHP Billiton, an Anglo-Australian mining giant sitting on a pile of money earned from high metal prices, is thought to be mulling a $40 billion bid for the American aluminium-maker.

What explains all this dealmaking? Tom Albanese, Rio Tinto’s boss, is confident that the huge sum he is paying for Alcan is justified, in large part because of the situation in China. It is expected to consume 12.5m tonnes of aluminium this year out of a world total of 40m tonnes. But although Chinese demand has pushed up the aluminium price to twice its level of 18 months ago, the price has hovered around $2,700 a tonne for some months.

Where it will go next is the subject of much debate. Until a few years ago China was a net importer of aluminium. Since then both production and consumption have exploded to satisfy the demands of the expanding economy. But production outpaced consumption, making China a net exporter. Jim Lennon, an analyst with Macquarie Bank, points out that aluminium plants can be built far more quickly there than anywhere else in the world, and at about a quarter of the cost.

China is home to Chalco, one of the giants of the aluminium business, and to over a third of the world’s smelters. But although plants can be built cheaply in China, production costs are among the highest in the world. China relies on expensive imported alumina, the refined version of bauxite, the ore from which aluminium is made. And smelting it uses vast amounts of energy, accounting for one-third of the costs in an average plant. The government has tried to rein in aluminium producers on the ground that they are hogging prized energy resources that it would prefer to divert to other parts of the economy. Last year a tax rebate on the export of aluminium ingots was eliminated, and then an export tax was imposed.

But China’s policymakers may fail to stem the power drain. Ingot exports have slowed down in recent months but exports of semi-finished and finished aluminium products, which are much harder to track, may have filled the gap. Demand for aluminium grew by 23% in China in 2006 and is expected to expand by 30% this year. The government may try to intervene to prevent production from expanding commensurately; but it may not succeed.

Even so, many industry watchers believe that China will once again become a net importer of aluminium. On current trends world demand for the metal will reach 70m tonnes by 2020. But where will the extra supply come from? There are few places with the abundant cheap energy needed to make the stuff. Alcan is probably best placed to take advantage of growing demand, because a deal with Quebec, its home province, provides it with cheap, plentiful hydro-electric power. Hence its appeal to Rio Tinto.

What of BHP Billiton’s supposed interest in Alcoa? Unlike Alcan, the American firm does not have access to bargain-priced power supplies. And along with its smelters and bauxite deposits, it has a raft of less tasty downstream assets, such as a packaging business with pitiful margins. But BHP Billiton could team up with a private-equity buyer to offload the less desirable parts of Alcoa, and some analysts reckon that of all the potential suitors it is in the best position to extract savings from a deal. So it might still prove enticing, particularly if BHP Billiton shares Mr Albanese’s cheerful forecast of growing demand for aluminium from another source. “Where goes China, India is likely to follow,” he says.

�ote - China is likely to be the major market for aluminum growth in the future. Their costs of production are high

due to high energy costs and concerns about future supply. RTA Kitimat has good transportation links to Asia and

competitive energy costs.

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�ote – Aluminum demand in China was strong to mid 2008. Export tax rebates encourage exporting. Export tax

rebates were ended in 2007 on bar, rod and wire and rebates are expected to be lowered on sheet strip foil and pipe

(semi-finished products). While China does enjoy a cost advantage, energy consumption poses problems and

government is now actively discouraging exports.

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Summary of World Aluminum Market Analysis

• Demand for aluminum was expected to be strong (6% CAGR) pre-recession. Fundamentals for the metal are good.

• China dominates world market demand and production and this trend is expected to continue.

• North American demand for aluminum is expected to be lower than that in other world markets.

• China is currently a net exporter of aluminum. • China has issues with primary aluminum production. Energy supply is not reliable and is

in short supply. Energy costs are high. • The Chinese government is actively discouraging the production of primary aluminum

products such as wire, bar and rod through abolishing 10% export tax rebates. This may be extended to semi-finished and fabricated products.

• Chinese aluminum fabricators (extruders, forgers, and castings) have a large cost advantage over North American operations (due to low cost labour, transportation, capital costs).

The industrialization of China has had a major influence on world demand for aluminum. It is fair to say that world aluminum demand goes as China goes. There is virtually no data on the market demand for secondary aluminum from China, but it is fair to say that demand is equally strong in all market sectors. Chinese demand dwarfs demand from all western economic sectors. Chinese economic policy, through export tax rebates, smelter development and energy pricing will strongly influence the ability to sell into that market.

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End Use Aluminum Markets

Source: Aluminum Technology Roadmap 2006

Top markets for the industry are transportation 27%, beverage cans and other packaging 15%, and building construction 22%. Other markets include electrical (wire and cable 13%), machinery 10% and consumer durables (9%). In 1994, transportation first emerged as the largest market for aluminum, at about one-quarter of the market, with passenger cars accounting for the vast majority of the growth. That trend has continued.

A detailed description of aluminum markets is included in Appendix 1. Each market is discussed in detail and the reader can get a feeling for the depth and diversity of aluminum use. It is recommended that those readers who are not familiar with aluminum markets to review this section at this time.

Emerging Markets for Aluminum

The table below was presented by Alcoa DEO, Klaus Kleinfeld to the Metal Bulletin aluminum conference in September 2008. He discussed global trends affecting the aluminum industry and growth opportunity areas. Emerging opportunities in the aluminum industry are to be in: Transportation - Aerospace

- Automotive lightweighting - Mass transportation

Construction - Sustainable construction materials Energy Exploration Offshore oil and gas extraction All sectors - Recycling content

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Alcoa Presentation – September 2008

Aluminum demand tends to track growth in the general economy. Some niche sectors are growing more rapidly than the general economy, such as the trend to automotive lightweighting. Aerospace and energy tend to go through more cyclical growth cycles. Construction, electricity, packaging, machinery and consumer durables move with economic times. The result is an overall smoothing effect that tends to make aluminum demand relatively steady Aluminum Products A detailed description of aluminum products, forming technologies and uses is provided. An understanding of the production technology associated with each product is required to appreciate the energy intensity, capital costs and production fit associated with downstream aluminum production in the Kitimat Terrace region. A) Primary Products - Ingot, Billet Ingot and billet play an integral part in the production of many aluminum products. Plate, sheet, foil, wire, rod, and bar products are all produced by pressing or rolling ingot and billet. Ingot and billet are cast from molten aluminum. In the cast house, crucibles of molten aluminum empty their silvery liquid either directly into molds or into a holding furnace where the metal is kept molten at temperatures between 1,200 and 1,500 degrees Fahrenheit. Alloying elements are then added.

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Before the alloyed metal can be cast, it must be purified by forcing mixtures of gases through the hot metal. Impurities (dross) come to the surface and are skimmed off. In DC casting, alloyed aluminum flows from the furnace through troughs to the casting station and into molds. For sheet ingot, weighing several thousand pounds each, three or four molds or a dozen or so billet molds may be poured simultaneously. The mold itself is only a few inches deep and forms the cross-sectional shape of the ingot. In the mold, sprays of cool water rapidly solidify the metal, which is gradually lowered into the casting pit. The process continues until the desired length is achieved.

B) Intermediate Mill Product Manufacture Aluminum mill products are semi-fabricated products such as sheet, plate, foil, extruded products, drawing stock, bare wire, ACSR and bare cable, insulated/covered wire and cable, pigments and powder, forgings, and impacts. In 2005, shipments of aluminum mill products totaled 17.8 billion pounds, or 69.5 percent of total aluminum demand.

Rolled products are the largest use of mill products with 35% of world production going into sheet, plate, rod, bar and foil. Shape casting represents 25% of the market and extruded products are 28%. Wire and drawn product (tube) are 10% of the market.

A) Sheet and Plate

When aluminum is passed between rolls under pressure, it becomes thinner—and longer in the direction in which it is moving. This simple process is the basis for aluminum’s most widely used forms: plate, sheet, and foil. Aluminum can be flat-rolled and re-rolled until it reaches the desired thickness or gauge. When the rolling process is stopped determines whether the final product will be plate (a quarter-inch thick or more), sheet (0.249 to 0.006 inch), or foil (less than 0.006 inch).

The Production Process

Rolling begins with huge sheet ingots weighing as much as 20 tons that have been preheated to make them easier to shape. As the size of rolling mills has increased, so has the size of these ingots, but a typical ingot is about 6 feet wide, 20 feet long, and more than 2 feet thick. The ingot is first fed into a breakdown mill, where it is rolled back and forth, reversing between the rolls until the thickness has been reduced to just a few inches. At this point, some plate is removed and readied for shipment. The plate is heat-treated and quenched for added strength and then stretched to straighten and relieve internal stress built up during rolling and heat-treating. Finally, the plate is trimmed and aged at the desired temperature to develop its final properties.

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Plate that is slated to become sheet or foil is trimmed after leaving the breakdown mill and sent through a continuous mill to reduce thickness further. Sheet thicknesses are then coiled. To continue its reducing process, the coiled sheet is heated in a furnace to soften it for cold rolling. Cold rolling is the last step for some sheet. But other types, known as heat-treatable, are subjected to further elevated-temperature processing to increase their strength.

Products and Applications

Plate is used in heavy-duty applications in the aerospace, machinery, and transportation markets. Aluminum plate, machined to shape, forms the skins of jumbo jets and spacecraft fuel tanks. It is used for storage tanks and containers in many industries and, because many aluminum alloys actually gain strength at supercold temperatures, it is especially useful in holding cryogenic (very-low-temperature) materials. Plate provides structural sections for rail cars and large ships, as well as armor protection for military vehicles and trucks that carry payroll. Sheet, the most widely used form of aluminum, is found in all of the aluminum industry’s major markets. In packaging, sheet is used for cans and closures. In transportation, it provides panels for automobile bodies and for tractor trailer vehicles. Sheet is used in home appliances and cookware. In building and construction, it forms siding and gutters, downspouts and roofing, and awnings and carports. License plates and light bulb bases, pleasure boats and printing plates, highway signs and planes are also made from aluminum sheet. Sheet can be color anodized to black, gold, red, blue, and hundreds of other colors. It can be etched to a “matte” finish or polished, textured to resemble wood, or painted.

B) Wire, Rod, & Bar

Wire is a long, thin string of aluminum. Made from rod or bar, wire is, by definition, less than three-eighths of an inch in diameter. Rod and bar are larger. Rod is round, while bar can have any number of flat sides.

The Production Process

Aluminum rod, bar, and wire products can be produced by several different processes. One method of making these products is similar to rolling sheet. A long, square ingot is heated, progressively reduced in cross-section by passing it through a series of rolls, and then coiled. The coils are heated for softening and, if they are slated to become wire, the rod is pulled through smaller and smaller dies on a wire-drawing machine. Electrical conductor is made by stranding several wires into a single length. Bar, rod, and tube can also be made by the drawing method directly from stock produced by hot extrusion. This process is also completed by the progressive thinning of the aluminum material through the use of dies. Electrical conductor rod can also be drawn and stranded directly from molten aluminum.

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Products

Electrical transmission lines are the largest users of aluminum rod/bar/wire products. In fact, this is the one market in which aluminum has virtually no competition from other metals. Aluminum is simply the most economical way to deliver electrical power. Aluminum wire and cable are also used almost everywhere there is an electrical impulse to conduct: in commercial buildings, in machinery and equipment, and in transportation and consumer durables. Rod and bar become the rivets, nails, screws, bolts, and parts of all kinds of machinery and equipment. As chain-link fence material or as a lightning rod—aluminum protects our homes. Non-rusting nails keep redwood fences and decks looking prettier. Drawn tube carries liquids in heat exchangers, food processing equipment, water treatment plants, and other industrial applications.

C) Foil

Foil, like sheet and plate, is produced by passing aluminum between rolls under pressure. Foil is the thinnest of these three products and is less than 0.006 inch thick. Foil is produced from sheet coils that are heated and then passed through high-speed foil rolling mills. Flexible packaging and foil containers account for about three-fourths of all foil used. Foil-backed building insulation reflects heat and provides a protective vapor barrier. Foil in electrical capacitors provides compact electrical storage and, if the foil surface is treated, its oxide coating works as an insulator. Aluminum foil capacitors are found in virtually all electrical equipment, from television sets to computers. Formed into fins, foil is the heat exchanger in some air-conditioning units and baseboard space heaters. Formed into honeycomb and sandwiched between sheets of aluminum, foil helps provide structural strength in aircraft and satellites.

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�o end seen for the weak demand from downstream end-use markets

• Purchasing, Jan. 2008 COMMODITY-GRADE ALUMINUM DEMAND in North America has been relatively soft lately, says analyst Chuck Bradford at Bradford Research in New York. In fact, “conditions in the aluminum market have been ugly since the beginning of August.” So. as the metalworking economy’s growth rate slows in coming months, demand for aluminum-based mill products also is likely slow.” says analyst Mike Gambardella at J.P. Morgan & Co. in New York.

On average, orders for aluminum mill

products recorded by domestic producers during the first 10 months of 2007 are 9.3% below those of a year ago. And that’s why Merrill Lynch & Co. analyst David Lipschitz in New York has a reduced $1.18/lb price average for ingot in 2008—as compared with an expected $1.21 in 2007. Based on preliminary estimates from the Aluminum Association, aluminum supply in the U.S. and Canada, defined as domestic shipments of semi-fabricated (mill) products by domestic producers plus imports, totaled an estimated 17.7 billion lbs through the first nine months of the year, down 5.2% from the year-earlier period. After adjusting for end-use operations, actual use of mill products through September was 14.2 billion lbs, a drop of 4.3% from the first nine months of 2006.

Since the purchasing outlook for 2008

from the construction, aerospace, automotive and consumer-packaging markets isn’t all that bright, market analysts expect a drop of 5% next year. So, buyers should see plentiful aluminum supply for some months with leadtimes for fabricated mill products at less than six weeks. Meanwhile, the Metal Service Center Institute reports that U.S. service center shipments of aluminum products totaled 89,000 net tons in November, or 5.5% lower than November 2006. At press time, aluminum shipments of 1.08 million tons were down 5.2% from 2006r. U.S. aluminum product inventories of 272.200 tons are dowm 29.9% from a year ago and equal to a 3.1-month supply. This compares with a 4.1-month supply at the same time in 2006 and a 2.7-month supply at the end of October. Canadian service center aluminum shipments of 9,900 tons were down 2.4% from November 2006, and year-to-date shipments of 112,500 tons are 3.1% lower than the same period in 2006. MSCl data

shows Canadian aluminum inventories of 27,600 tons, down 10.3% from 2006. At current shipping rates, this represents a 2.8-month supply, compared with a three-month supply at the end of November 2006. Despite all this, prices have increased by 42% since 2006—mostly because of speculative investment in commodity exchanges and a global 4.5% surge in purchasing.

“Aluminum is clearly a commodity product,” says Bradford, “with all the price risks that come with London Metal Exchange (LME) and New York Commodity Exchange (Comex) trading.” Still, he and other analysts agree with Lipschitz that 2007 will be the peak in aluminum transaction prices and the 2008 ingot price average will slide somewhat. Analyst Tim Hayes at Davenport & Co. in Richmond, Va., says, for example, that “prices should remain high by historical standards.” The key question for this year’s aluminum market is whether supplies of heat-treated aerospace-grade aluminum will stay tight. Bradford says it s possible because, while the new Boeing 787 Dreamliner is mostly a carbon fiher plane, it also uses a large amount of Alcoa aluminum fasteners. “More importantly, smaller Boeing planes and all the Airbus planes are largely aluminum,” he says, and there are a limited numher of firms globally— Alcoa and Kaiser Aluminum mostly—tliat are able to supply tlie so-called hard alloys to the airline manufactuiers and their suppliers.

ote – The market for most aluminum products in orth

America has been in decline since 2006, but prices have

remained strong due to global demand

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C) Fabricated Products - Castings, Extrusions and Forgings

The automotive industry is the largest market for aluminum castings, and cast products make up more than half of the aluminum used in cars. Cast aluminum transmission housing and pistons have been virtually universal in cars and trucks throughout the world for years.

Extruded aluminum is the material of choice for countless applications. Designers and materials specifiers choose aluminum profiles because extrusion offers so many design advantages: various alloys can be readily formed into complex shapes; extrusion tooling is inexpensive; lead times for custom shapes or prototypes are relatively brief; many different finishes are available; and the life-cycle value of the product remains high due to aluminum’s recyclability.

a) Castings

Casting is a simple, inexpensive, and versatile way of forming aluminum—so it is not surprising that it was also the first method used.

The Production Process

Casting is the most widely used

method of forming aluminum. Technical advances, of course, have been made, but the principle remains the same: molten aluminum is poured into a mold to duplicate a desired pattern. The three most important methods are die casting, permanent mold casting, and sand casting. Die casting, in which molten metal is forced into a steel die, or mold, under pressure is normally used for high-volume production. Accurate parts, requiring a minimum of machinery, can be produced via this method. Permanent mold casting involves molds and cores of steel or other metal. Molten aluminum is generally poured into the mold, although a vacuum is sometimes applied. Permanent mold castings can be made stronger than either die or sand castings. Semi-permanent mold casting, which uses expendable cores of sand or other material, is used when permanent cores would be impossible to remove from the finished part. The most versatile method is sand casting. Virtually any pattern can be pressed into a fine sand mixture to form a mold into which the aluminum is poured. This is a slow process, but it is usually more economical for small quantities, intricate designs, or when a very large casting is needed.

Casting Products

The automotive industry is the largest market for

aluminum castings, and cast products make up more than

half of the aluminum used in cars. Cast aluminum transmission housings and pistons have been commonly used in

26

cars and trucks throughout the world for many years. Still many other engine parts are also cast from aluminum, and the applications grow as automakers seek new ways to save weight and gain fuel efficiency and performance. Cast aluminum is also widely used in other forms of transportation, including aircraft and marine engines and other structures. Parts of small appliances, hand tools, lawnmowers, and other machinery use thousands of different aluminum castings. But the cast product most often seen by consumers is cookware—the aluminum product that was the first made available for everyday use.

b) Extrusions

Extrusion is among the most widely used of the aluminum forming processes, affording designers almost unlimited creative latitude to design profiles to meet specific needs. The process begins with the creation of a metal die that precisely matches the profile of the shape specified by the designer. Aluminum billets or logs, produced from ingots, are heated and forced under pressure through the die. The process is quite similar to squeezing toothpaste from a tube. The variety of shapes that are possible is

virtually limitless. Once the profile is extruded, it can be further fabricated or cut to length, machined, drilled, punched, notched, bent, and assembled into a semi-finished product. An extruded tube can even be stretched to produce tubing of specific inner and outer dimensions. Profiles can be painted, anodized, brushed, or polished, depending on the desired finish.

d) Forgings

Forging is a manufacturing process in which metal is pressed, pounded, or squeezed under great pressure into high-strength parts. This is usually done by heating the metal, but some forgings are produced without heat. Generally, forged components are shaped by either a hammer or a press. Forging by hammer is carried out in a succession of die impressions using repeated blows. In a press, the component is usually hit only once in each die impression.

The Forging Process

The three basic types of aluminum alloy forgings are: open-die forgings, closed-die forgings, and rolled rings. In open-die forging, the work component is not completely confined as it is being shaped by the dies. This process is commonly associated with large parts such as shafts, sleeves, and disks. The part’s weight can range from 5 to 500,000 lbs.

27

As the forging workpiece is hammered or pressed, it is repeatedly manipulated between the dies until it reaches final forged dimensions. Because the process is inexact and requires a skilled forging operator, substantial workpiece stock allowances are retained to accommodate forging irregularities. The forged part is rough machined and then finish machined to final dimensions. In open-die forging, metals are worked above their recrystallization temperatures. Since the process requires repeated changes in workpiece positioning, the workpiece cools below its hot-working or recrystallization temperature. It then must be reheated before forging can continue.

Forged Products

In automotive applications, forged components are commonly found at points of shock and stress. Forged automobile components include connecting rods, crankshafts, wheel spindles, axle beams, pistons, gears, and steering arms. Forgings are also used in helicopters, piston-engine planes, commercial jets, and supersonic military aircraft. Many aircraft are “designed around” forgings and contain more than 450 structural forgings, including hundreds of forged engine parts. “Forged” is the mark of quality in hand tools and hardware. Pliers, hammers, sledgers, wrenches, garden implements, and surgical tools are almost always produced through forging.

28

Matching Market and Process Opportunities to Kitimat Terrace Capabilities

Kitimat Value Added Aluminum Production Capabilities Rio Tinto Alcan Kitimat has shared production information with KTIDS to assist in the identification of value added aluminum production opportunities for the community.

RTA is undergoing a major smelter upgrade. The upgrade will increase production and use best available technology. RTA Kitimat will be one of the most efficient and cost effective primary aluminum smelters in the world.

• As a result of the upgrade, RTA will be able to produce a wider range of alloys than currently available, including the 300 and 400 series alloys used in the casting industry. These alloys are currently not available from RTA Kitimat due to impurities in the metal.

• After the smelter upgrade, RTA Kitimat will produce mostly ingot slab and remelt ingot for sale to other large foundries. They will not produce any intermediate products such as sheet, plate, rod, bar, foil, wire. They will not have a rolling mill.

• The company will have minimal value added production capability and specialize in high quality aluminum production of primary cast ingot.

• RTA Kitimat has indicated a willingness to supply hot aluminum metal directly from their smelter operations in Kitimat to a value added aluminum operation. This would be in large quantities only, ladles of 5 ton minimum shipments. Alloying could be done at the RTA works, but may require extra costs of furnace cleaning. Supply would be at LME market prices.

• RTA has land available nearby the Kitimat smelter that could be acquired by a new tenant. • RTA currently ships much of its ingot aluminum to Asia, and brings in alumina from

Australasia. The route to Asia presents a backhaul opportunity for outgoing value added aluminum products. Asian markets can be access at very competitive shipping rates.

Competitive Advantages of Terrace Kitimat for Value Added Aluminum

• Availability of molten metal alloys direct from smelter, (lower capital costs for alloying and melting furnace and lower operating costs for melting)

• Access to a large volume of alloy (required to justify alloy production costs) • Low energy operating costs • Siting in proximity to smelter for molten material transfer. • Good marine transportation routes at reasonable costs to Asia • Canadian dollar currency advantages

Competitive Disadvantages of Terrace Kitimat

• Distance to markets • High labour costs relative to Asia • Captive aluminum supply ( single

source of alloy)

29

Flow of Materials from RTA Kitimat to end Customers and Products

1. Primary Smelter Production

The process starts in Australasia with the production of alumina from bauxite. The alumina is shipped to RTA where it is converted into aluminum with large amounts of electricity. The aluminum is alloyed into master alloys of defined purity and metal composition to give the aluminum desired properties of ductility, corrosion resistance, strength and formability. Alloys are cast into ingots or slabs for shipment to others.

Location – Kitimat, Canada

2. Intermediate Smelter/Foundry Production of Mill Products Customers of RTA are very large aluminum companies in their own right. These companies may have their own smelters, or are large foundries that produce a large variety of aluminum alloys and produce aluminum mill products. Aluminum mill products include sheet, rod, wire and foil. The companies sell these mill products to other companies for further processing and production of finished goods. Mill products are produced using rolling mills, extruders and casting operations.

Location – Mostly Asia – Japan, followed by Korea, China, USA, UK

3. Fabricated Aluminum Product Production

Aluminum mill products are shipped to customers for final production. There are thousands of customers who produce products in many industries. Markets are sorted by production process. a) Rolling - A rolling mill takes a solid aluminum alloy slab and passes it through a series of rollers and squeezes it thinner and thinner, first into plate, then sheet, then foil or wire for varying applications.

Input – alumina, power

RTA Smelter Kitimat

Output.- master alloy slab, ingot

Intermediate aluminum foundry, mill

Input – master alloy ingot

Output – sheet, rod, wire, foil, new alloy ingots

30

b) Extrusion - An aluminum extruder starts with aluminum billet. It is fed into a large heated press where the material is softened and pushed through a die and comes out in a long solid profile, similar to pushing toothpaste out a tube. The aluminum input material is not heated to a molten state.

c) Forging - An aluminum forging operation starts with solid aluminum rolled product, either plate or sheet and it is stamped under great pressure into a new shape such as the hood of a car. Forging operations are usually part of a larger plant operation including fabrication, welding; rather than a specialty stand alone shop.

d) Casting - An aluminum casting operation consists of a foundry for melting ingot and mixing alloys and the casting operation. Molten metal is poured or pressed into a shaped die and cools into the desired shape.

Rolling mills – minimal heat applied, mostly pressure

Input – solid plate alloy

Output – sheet, foil

Markets – construction, siding, gutter; consumer packaging, electronics

Extruders – heat applied to allow material flow but not liquid metal

Input – solid rod, billet alloys

Output – profile extrusions

Markets – Construction, doors, windows; wire, pipe, beams, frames, consumer products.

Casting – requires molten aluminum alloy, maximum heat applied

Input – melted ingot alloy

Output – Cast solid aluminum part

Markets – Automotive, engine, gears, wheels, consumer products, aircraft components.

Forge – no or min. heat applied, mostly pressure

Input – solid plate or rolled sheet

Output – stamped and shaped product

Markets – Transportation, aircraft, rail cars, automotive, consumer products

31

Value Added Aluminum Product Assessment Plant Output Investment Labour Energy Plant Input Location Potential

for Kitimat Mill Products – sheet, plate, bar, rod, wire, foil or specialty alloys

Very large, hundreds of millions

High Very high Solid Ingot, Slab

Asia Low

Rolling Mill- sheet, foil

Medium Medium Medium Solid Slab Low tech, Emerging markets

Low

Extrusion – profile products for all markets

Medium-Low

Low Medium Solid rod plus heat

Near customers

Medium

Forging – metal forming, bending, stamping as part of production process

Medium-Low

High Low Solid sheet Near customers

Low

Casting – largely for automotive and aerospace

Medium-Low

Low High Molten alloy Near customers or aluminum supply

High

Implications for Kitimat Terrace Value Added Aluminum Production

• RTA Kitimat can supply most alloys used in aluminum manufacture from the upgraded smelter.

• Molten metal supply offers the most energy cost savings for downstream operations. • Many of the downstream processing technologies use solid metal inputs other than billet

or ingot produced from RTA Kitimat. • KTIDS should focus marketing efforts on medium sized aluminum casting operations

that can utilize ladle quantities of pre-alloyed aluminum directly from RTA Kitimat smelter.

• The best market for growth in aluminum casting requirements is likely China. • The most promising industry for casting growth is likely transportation; either

automotive or aerospace components. • The casting industry works as contract suppliers to the aerospace and automotive

industries, and quotes based upon a margin between the LME metal price and value added production costs. Margins are slim, and any sales presentation to this industry needs to demonstrate cost savings.

• Main potential areas of cost savings should be energy costs, and backhaul ocean transportation.

32

Strategies to Attract Aluminum Value Added Jobs to Kitimat Terrace.

Option 1 - Mill Product Production

The next step in the value added chain from RTA Kitimat production of primary metal ingot is the production of mill products; sheet, plate, wire, rod, bar and foil in a wide variety of aluminum alloys. It is not considered likely that KTIDS would be successful in attracting this kind of investment to the area.

1. These are massive plants requiring large expenditures of capital and are relatively labour intensive.

2. They involve smelter operations and would involve extensive environmental review. 3. Costs would be in the hundreds of millions or billions of dollars. 4. They prefer to have numerous primary aluminum suppliers and would not want to be

captive to RTA. 5. Local markets in North America are not growing as rapidly as Asia. 6. Aluminum wire can be made directly from molten metal, however it is considered

unlikely that a stand alone wire plant would expand to Kitimat with a captive aluminum supply.

Option 2 – Fabricated Product Production

There is an option to attract a company that makes fabricated aluminum products; that is products that are further processed using extrusion, forging, rolling or casting technology to make a more finished product. The majority of these technologies require input of mill products that are not available from RTA Kitimat. Foil producers require plate or sheet products as inputs for rolling operations. Forgers require plate or sheet aluminum as well. Extruded aluminum profiles use solid aluminum rods that are heated in charging chambers and pushed through profiles at high pressure.

It will be impossible to attract any downstream manufacturing to Kitimat Terrace that does not have a ready supply of input aluminum products available in Kitimat.

The only aluminum fabrication technology that uses ingot or aluminum melt as input to the production process is casting. If RTA can supply melt of cast aluminum alloys, there may be an opportunity to produce castings in Kitimat/Terrace at competitive cost. This will save capital costs associated with alloy mixing and preparation, as well as labour and energy costs.

The report will focus efforts in identifying cast aluminum prospects and markets that might make sense for KTIDS business recruitment efforts.

33

Cast Aluminum Markets and Applications

Aluminum Casting Alloys and Applications

The following table shows various alloys used in casting, their metallic composition and the kinds of applications for the casting process. Automotive applications dominate the list.

Appendix 3 explores the use of molten metal as input to the cast aluminum production process. There is excellent evidence that molten aluminum supplies is a major benefit to the industry, that it is effectively used and being widely explored to lower costs and improve efficiency.

General Purpose

Alloys

Alloy 413,443,444 Alloy 308,319,380,360

Alloy 357,358,359 Alloy 328,333,354,355

Silicon based Silicon copper Silicon Magnesium Silicon Copper Magnesium

• Outdoor lamp housing

• Lawn mower decks

• Outdoor grills • Marine

components • Cooking • Dairy, food • Medical, dental • Electronic cabinets • Tire molds • Escalator parts • Highway rail posts

• Machinery • Transmission cases • Engine blocks • Gas meters • Gear blocks • Gear cases • Fuel pumps • Impellers • Cylinder heads • Intake manifolds • Oil pans • Outboard

propellers

• Automotive frames

• Automotive wheels

• Truck wheels • Axle housings • Pump bodies • Intake manifolds • Cylinder heads • Machine parts • Suspension

saddles • Missile bodies • Fuel pumps • Impellers • Brake cylinders • Industrial beam

heads

• Engine cooling fans

• Clutch housings • Crankcases • Propellers • Aerospace

components • Rocker arms • Timing gears • Machine parts • Air compressor

pistons

High

Temperature

Alloys

Wear resistant

alloys

Moderate strength

alloys

High Strength

Alloys

Alloy 332T, 336, 242 390,392,393 535,712,771,772 201,206,224,249,354 Silicon Silicon Zinc Magnesium

Copper Varying metals

• Pistons • Cylinder heads • Motorcycle parts • Gear housing

• Brake rotors • Cylinder blocks • Cylinder liners • Marine engines • Pistons

• Tooling plate • Impellers • Electrical fittings • Machinery • Instrument cases • Pistol frames • Food processing • Reflectors • Optical systems • Decorative parts

• Missile bodies • Aircraft canopies • Wing flaps • Speed brakes • Hatch covers • Pumps • Aerospace

structures Bearing, Bushing tin alloys – 850-853

Source: Aluminum Alloy Castings, AFS

34

Aluminum Casting Processes

Aluminum alloy castings were first produced using processes that were used for other metals. Shaped cavities were carved or impressed into molds of soft minerals or clay. Copper, silver and gold were melted and solidified in the cavities. Brass, bronze, tin and zinc tools were cast as metallurgy evolved.

Iron and steel molds have been used in casting of aluminum since colonial times. Commercial permanent mold casting was started in the early 20th century. Pressure die casting is the injection of metal under pressure into metallic dies.

Aluminum can be cast using all existing processes including pressure die casting, permanent mold, clay/water bonded sand casting, plaster mold, and investment casting. Variations on the main processes are based on molding and pattern distinctions.

The number of castings that are estimated to be made is a major factor in process selection. Simple patterns requiring only a few parts typically use sand castings. When production is limited, tooling cost dominates. For large production runs, tooling costs become less significant, and the trend is toward automated molding processes, permanent mold castings and die casting.

Permanent Mold Casting

In permanent mold casting, molds are machined cast, cast steel or wrought steel and can be used repetitively. The volume of production also dictates the extent of process automation. Molds are operated manually or using automation. Molten metal is introduced from a pouring basin, from which metal flows into runners, risers and the casting cavity. Solidification is achieved by selective chilling by air, mist or water. An insulating coating is used to protect the mold from the molten aluminum and facilitate removal of the casting from the mold.

Die Casting

In low pressure die casting, permanent molds are mounted over a sealed furnace. By pressurizing the furnace, metal is forced through a tube into the mold cavity. When the metal solidifies, the pressure is relieved, the mold is opened, and the casting is removed in preparation for repeating the cycle. Forms of low pressure casting include centrifugal casting, vacuum casting and squeeze

casting.

Pressure die casting is the most widely used

casting process. It is ideally suited for high production rates of dimensionally accurate parts with excellent surface finish. The process has been extended to larger castings with heavier wall thicknesses. Molten metal is injected under pressure into water cooled dies by the action of a hydraulic ram in a containment chamber, resulting in rapid filling of the mold cavity. Lubrication is required to separate the casting from the die surface.

Above - Low pressure casting products – pistons, bearings, anodes, cookware

‘The use of foundry or hot metal can eliminate metal melting processed within the foundry and can result in considerable economies in the appropriate conditions of long unbroken runs, high total usage and nearness to source of supply.’* Automatic ladling machines have also been developed.

*P159 – Competitive Structure of the Aluminum Castings Industry, 2001

35

Die Casting

There are two methods used in the die casting process: hot chamber and cold chamber. Hot chamber machines are typically used with alloys that have a low melting point, such as zinc and magnesium, while cold chamber machines are used for alloys with a high melting point such as aluminum.

In a hot chamber machine, an injection cylinder mechanism is immersed into the molten metal bath of a holding furnace, which is connected to the die via a “gooseneck,” or feed system. As the injection cylinder rises, a port opens and the molten metal flows into a holding chamber, filling it up. As the plunger lowers, the port is sealed, forcing the molten metal from the chamber through the gooseneck and into the die cavity. Once the metal has solidified the plunger is withdrawn, the die opens and the casting is ejected.

In a cold chamber machine the process is slightly different. Because of the properties of the alloys used, the molten metal is generally poured into the injection cylinder manually or automatically with a

ladle. A hydraulically-operated plunger then seals the cold chamber port, forcing the molten metal into a locked die at a high pressure. This minimizes the amount of air entering the seal and prevents surface flaws in the finished product.

Vacuum casting products – rocker arms, connecting rods, valve components, compressor pistons.

Die casting vs. sand casting, permanent mold casting - Die casting produces parts with thinner walls, closer dimensional limits and smoother surfaces. Production is faster and labor costs

per casting are lower. Finishing costs are also less with die casting.

Squeeze casted wheels, automotive parts Aircraft landing gear cast component.

36

Die Casting Markets The automotive sector accounts for more than 40 per cent of the die casting industry in North America. However, die casting is expensive and is used in many other sectors such as construction, agriculture, pulp and paper mills, medical, plumbing, railway and defense. Die casting creates toys, tools, household appliances and items for telecommunication.

�ote: The above market includes all die casting materials markets including aluminum, magnesium, copper and

zinc. Source: �ADCA website

There are two types of die casters: custom casters and captive casters. Custom die casters are those who create specialized casts for sale to others and captive die casters are those who create castings for their own use in a shop or manufacturing plant.

Small die casting operations for builders’ hardware, power tools and appliances are likely to be custom casters that make a wide range of products in small runs. They would also use a variety of alloys. Automotive power train casting operations are more likely to be captive casters, using a large volume of a single alloy.

From a business recruitment standpoint, customer die casters who serve a local market with a variety of products and use a variety of metals are unlikely to want to expand to Kitimat Terrace. They need to be close to their customers, as their business is built on customer service and local relationships.

Captive die casters are large companies with worldwide sales. They produce where they can get the most competitive overall cost structure for quality, price and delivery. They deal in large volumes of single alloys.

37

�ote - The margins on die cast automotive parts are very slim. Prices are based on the LME aluminum price plus a small markup

and die casters are squeezed by the automakers for large contracts. Cost savings for energy, transportation and alloys are

paramount.

38

PERSPECTIVES: AUTOMOTIVE ALUMI�UM - Automakers are stalking the lure of

synergistic solutions.

Aluminum continues to win favor among automakers, having surpassed iron as the second-most-used material in the manufacture of automobiles. Honda Motor Co. Ltd., Tokyo, long ago saw the wisdom of using aluminum in its vehicles and continues that philosophy today. “Honda has a history going back decades of using aluminum in our cars, especially in our engines,” a spokesman for the Japanese automaker said. “All of our engines are aluminum now, including both blocks and heads.” Honda’s most aluminum-intensive vehicle is the Acura RL sports sedan, the spokesman said. The vehicle qualifies as a high-content vehicle, with more than 500 pounds of the light metal on board, including an aluminum hood, front fender^ trunk lid and trunk lid frame. Tbe company’s S2000 sports convertible also features an aluminum bood. Joining the Acura on the list of high aluminum- content vehicles from Japanese automakers are four models from Toyota Motor Corp. and three from Nissan Motor Co. Ltd. All of the Japanese automakers have extensive manufacturing operations in the United States. The Honda spokesman said his company is now beginning to incorporate exhaust manifolds into its engine block designs. This will increase the aluminum content in vehicles as the manifold will be

made from aluminum, as well as reduce the number of components— one example of the synergistic solutions presented by aluminum for automakers. Ford Motor Co., Dearborn, Mich., also sees growth for aluminum in the auto sector, with the lightweight metal winning substitution battles with steel in some cases, a company spokeswoman said. However; aluminum also must compete against other materials, including magnesium and composites.

Aluminum growth comes mainly in castings for larger engines, she said, but eventually will

extend to smaller engines as well, driven by the need for mass reduction to achieve better

fuel economy and performance. Closures like hoods and roofs also are moving to aluminum. No lightweight when it comes to lightweighting. General Motors Corp., Detroit, has five vehicles on the list of high-aluminum-content vehicles. In addition to Chevrolet’s flagship Corvette speedster, four Cadillac models—the CTS, STS, DTS and XLR—all tip the scales with more than 500 pounds of aluminum. High-end autos like the new Jaguar XK and Audi A8 have bodies made entirely of aluminum. Audi is well known for its Teutonic, aluminum-skinned autos. Audi’s new R8, features aluminum sheet from Novelis Inc.,Atlanta. MATHEW LERNER

American Metal Market – December 2007

�ote – Aluminum use in automobiles is on the rise, mainly in the use of castings for larger engines.

39

American Metal Market – �ov 2002 �ote – Mexico is a leader in parts casting for the automotive industry.

Aluminum engines are supplied to GM in St Catherines Ontario from Mexico. Wabash Alloys built a smelter in

Mexico to make recycled molten aluminum for supply to the automotive casting industry. Two of these casting

companies have operations in Canada and would make good prospects.

40

�ote – Aluminum recyclers are contracted out for the supply of molten specification alloy metal The concept started

with primary aluminum producers. GM uses own spec molten metal supply in Saginaw Michigan. Ford has rejected

molten metal supply due to economics.

41

Global Economic Changes, New Business Models Improve North American Die Casting Outlook

Wheeling, IL, March 15, 2008 -- The North American die casting industry was sluggish in 2007, but may be poised to

rebound in the years ahead due to economic changes in China and die casters’ new business models, according the

State of the Industry report issued by the North American Die Casting Association (NADCA).

Included in the report are a variety of charts, economic comparisons and tables listing key statistics affecting the die

casting industry. Although the United States has a trade deficit, the country remains the largest gross exporter in the

world. Furthermore, some of the cost advantages enjoyed by China are beginning to erode, which will improve the

competitive position of North American die casters.

“As Chinese labor rates increase, the cost of purchasing die castings offshore will increase,” explained Daniel L. Twarog,

NADCA’s president. “If the low projections prevail, with factory wages doubling to 25% of the American norm from their

current 14%, and engineers receiving salaries one-half to two-thirds of American norms, the Chinese cost advantage

would be cut roughly in half. If the higher projections were to prevail, the Chinese cost advantage would largely

evaporate over the next five years.”

Shorter term, the continued contraction of the housing market and the slowing of domestic automotive production affected

production in 2007. However, the overall outlook for die castings in the automotive market remains positive. Aluminum

cast components will grow globally at approximately 4% per year as automakers replace steel and cast iron components

with lighter weight castings. In addition to aluminum die casting applications, the automotive industry remains active in

converting to magnesium, although the cost and supply of magnesium present hurdles.

The report also highlights some of the new business models and practices that die casting operations in North America

are implementing. These include:

• Upgrading marketing and communications strategies

• Supporting new die casting programs at OEMs

• Developing relationships with offshore manufacturing organizations to support a global business model

• Offering offshore die cast tooling as an option on most bids

• Interfacing with customers’ Manufacturing Resource Planning (MRP) software systems

“The United States is still a huge world market with growth opportunities in highly technical castings and offshore

alliances. The outlook is especially promising for die casters who can adopt new business models,” concluded Twarog.

For further information, contact: Daniel L. Twarog, President. North American Die Casting Association

847.279.0001 twarog@diecasting.org

�ote – China is major competition for the �orth American die casting industry. Automotive lightweighting is a

major market growth opportunity. The Chinese cost advantage is lessening but remains strong.

42

Target Company Identification

Company Qualifiers

• Aluminum alloy casting companies servicing the automotive parts supply or custom casting industry (NAICS codes 336390 motor vehicle parts mfg, 332999 fabricated metal part manufacturing, 33131 non-ferrous metal foundries) • Identify BC companies first as they would be easiest to attract to Kitimat Terrace • Identify Canadian companies second • Identify California companies third, since California companies are in same time zone, and the state has a large aerospace industry, high energy costs and good marine transportation access from Kitimat Terrace • Asian automotive supply companies can be researched using the services of the BC Trade offices in Asia, or the Canadian consulate.

Company Identification by AICS Code

Manufacturing statistics and company lists are amassed by government agencies such as the U.S. Census and Statistics Canada. Each jurisdiction provides differing levels of detail. There is no single NAICS code that captures aluminum foundries and casting companies. Companies are slotted by the most appropriate category as defined by the company. For instance a company that uses aluminum and steel might be listed as a steel foundry. Or an aluminum wheel plant might be listed as a motor vehicle parts manufacturer, rather than a foundry or fabricated metal manufacturer. Some of the appropriate search categories include: 331521 Die Casting Foundry 331529 Non Ferrous Casting 33131- Non Ferrous Metal Foundry 332999 Fabricated Metal Parts 336390 Motor Vehicle Parts The BC Manufacturers Directory provides detailed company descriptions and multilevel search capability, but there are few aluminum castings companies in BC. The Strategis database from Industry Canada is useful in getting detailed company descriptions. In the US, Census data is used to help identify the major states and metropolitan areas for key industries. US Census data does not provide individual company descriptions or contact information, and data is suppressed when any individual company information is seen to dominate industry statistics for that region. Individual company information can be found through Thomas register.

The best source of company information is through industry trade associations. Two trade associations are effective for our purposes, the American Foundry Society and the US Die Casting Association

43

US Census Data 20

02

2002

Eco

no

mic

Cen

su

s

Release Date: 9/28/2005

Secto

r 31:

Man

ufa

ctu

rin

g:

Geo

gra

ph

ic A

rea

Seri

es

: In

du

str

y S

tati

sti

cs

fo

r th

e S

tate

s, M

etr

op

olita

n a

nd

Mic

rop

olita

n S

tati

sti

cal

Are

as, C

ou

nti

es

, an

d

Pla

ces:

2002

The aluminum die casting industry comprises establishments primarily engaged in introducing molten aluminum, under high pressure, into molds or dies to make aluminum die-

castings. Establishments in this industry purchase aluminum made in other establishments. Pressure die casting states are W

isco

ns

in,

Mic

hig

an

, O

hio and Illinois. California

places a distant fifth.

Ch

ica

go

has the largest concentration of die casting as a metropolitan area.

Geographic Area Name

2002 NAICS

code

Meaning of 2002

NAICS code

Estabs w/ 20+

employees

Number of

employees

Annual payroll

($1,000)

Prod workers

avg per year

Tot cost of

materials ($1,000)

Total value of

shps ($1,000)

California

331521

Aluminum die-

casting foundries

24

1,411

47,917

1,146

70,873

180,470

Illinois

331521

Aluminum die-

casting foundries

20

2,685

93,248

2,197

146,942

363,751

Michigan

331521

Aluminum die-

casting foundries

25

3,296

122,846

2,509

257,228

539,868

Ohio

331521

Aluminum die-

casting foundries

14

1,957

81,327

1,611

219,426

411,316

Wisconsin

331521

Aluminum die-

casting foundries

16

3,386

134,328

2,869

329,778

665,531

Los Angeles County, CA

331521

Aluminum die-

casting foundries

14

f D

D

D

D

Berrien County, MI

331521

Aluminum die-

casting foundries

11

1,039

38,022

831

78,696

151,245

Chicago-Naperville-Michigan City, IL-

IN-WI Combined Statistical Area

331521

Aluminum die-

casting foundries

16

2,644

91,437

2,189

145,176

360,784

Los Angeles-Long Beach-Riverside, CA

Combined Statistical Area

331521

Aluminum die-

casting foundries

18

g

D

D

D

D

Chicago-Naperville-Joliet, IL-IN-WI

Metropolitan Statistical Area

331521

Aluminum die-

casting foundries

16

2,644

91,437

2,189

145,176

360,784

Los Angeles-Long Beach-Santa Ana,

CA Metropolitan Statistical Area

331521

Aluminum die-

casting foundries

16

1,032

33,937

864

47,452

133,098

Niles-Benton Harbor, MI Metropolitan

Statistical Area

331521

Aluminum die-

casting foundries

11

1,039

38,022

831

78,696

151,245

Los Angeles-Long Beach-Glendale, CA

Metropolitan Division

331521

Aluminum die-

casting foundries

14

f D

D

D

D

Chicago-Naperville-Joliet, IL

Metropolitan Division

331521

Aluminum die-

casting foundries

13

g

D

D

D

44

Pressure Die Casting Companies, members of American Foundry Society (AFS)

The following is a list of 280 pressure die casting companies that use the 300 series aluminum-silicon alloy. The list is provided from the American Foundry Society (AFS) and can be accessed from their web site. The list can be sorted by alloy used, location (state or N.A. country), part size and production technology (sand casting, squeeze casting, pressure casting, etc.)

Company_Name City State Coun

try

BEREA CASTING INC Berea Ohio U.S.A

DERO ENTERPRISES LTD Montreal North

Quebec Canada

QX INC Hamel Minnesota U.S.A.

CASCADE DIE CASTING GROUP INC - GREAT LAKES DIVISION

Sparta Michigan U.S.A.

ALUMINIO Y BRONCE DE SALTILLO SA DE CV

Saltillo Coahuila Mexico

ADVANCE DIE CASTING Milwaukee Wisconsin U.S.A.

RCM INDUSTRIES--IMPERIAL DIE CASTING

Liberty South Carolina

U.S.A.

CONTECH - DIVISION OF MARATHON AUTOMOTIVE GROUP

Auburn Indiana U.S.A.

PEERLESS FOUNDRY LLC Bridgeport Connecticut

U.S.A.

ALUMACAST LLC Celina Ohio U.S.A.

TORO COMPANY Windom Minnesota U.S.A.

STENCIL CUTTING & SUPPLY Maplewood Minnesota U.S.A.

APEX ALUMINUM DIE CASTING CO Piqua Ohio U.S.A.

MERCURY CASTINGS - Mercury Marine Stillwater Oklahoma U.S.A.

MACHINE-O-MATIC Newmarket Ontario Canada

CAMBRIDGE TOOL & MANUFACTURING-LEGGETT & PLATT

North Billerica

Massachusetts

U.S.A.

BRIGGS & STRATTON CORP Murray Kentucky U.S.A.

QUALITY FIRST DIE CAST CORP St Joseph Michigan U.S.A.

DYERSVILLE DIE CAST Dyersville Iowa U.S.A.

PACE INDUSTRIAS DE MEXICO S.A. de C.V.

Saltillo Coahuila Mexico

RIDGE FOUNDRY San Leandro California U.S.A.

FREMONT DIE/VAN WEY DIE CAST Fremont California U.S.A.

GIBBS DIE CASTING CORP Henderson Kentucky U.S.A.

UNISIA MEXICANA SA DE CV Lerma Edo Mexico Mexico

LEXINGTON DIE CASTING CO Lakewood New York U.S.A.

THERMALCAST LLC Worcester Massachusetts

U.S.A.

NANO MATERIALS INC. Barrington Rhode Island

U.S.A.

TEAM INDUSTRIES-DETROIT LAKES Detroit Lakes Minnesota U.S.A.

FUNDIALEACIONES ESPECIALES DE OCCIDENTE

Zapopan Jalisco Mexico

MAGNESIUM ALUMINUM CORP Cleveland Ohio U.S.A.

AXIS PROTOTYPES Montreal Quebec Canada

PITTSBURGH DIE & CASTING CO Pittsburgh Pennsylvania

U.S.A.

OMNI DIE CASTING INC Massillon Ohio U.S.A.

KINETIC DIE CASTING North Hollywood

California U.S.A.

BROWN DIE CASTING & MFG INC Royse City Texas U.S.A.

BDC PRODUCTS Amityville New York U.S.A.

SHAWNEE SPECIALTIES INC Eau Claire Michigan U.S.A.

STROH DIE CASTING CO INC Milwaukee Wisconsin U.S.A.

WEST IRVING DIE CASTING Owensboro Kentucky U.S.A.

KOPALA CORP Wheeling Illinois U.S.A.

ACE PRECISION CASTINGS LLC Marshalltown Iowa U.S.A.

CITATION CORPORATION - ITM Grand Rapids Michigan U.S.A.

WREX PRODUCTS INC Chico California U.S.A.

CHRYSLER CANADA - Etobicoke Casting Plant

Toronto Ontario Canada

ABM MANUFACTURING Sedalia Missouri U.S.A.

ALBANY-CHICAGO CO Pleasant Prairie

Wisconsin U.S.A.

5 D INDUSTRIA Zapopan Jalisco Mexico

COAST DIE CASTING CO INC Gardena California U.S.A.

MAGNETI MARELLI USA INC Sanford North Carolina

U.S.A.

EDLUND DIE CASTING East Syracuse

New York U.S.A.

DARONA DIE CASTING St.-Jean Quebec Canada

AALLIED DIE CASTING Franklin Park Illinois U.S.A.

DIE CASTING MEXICANA SA DE CV Atizapan de Zaragoza

Mexico Mexico

SOLDY MANUFACTURING Schiller Park Illinois U.S.A.

TDE GROUP INC Solon Ohio U.S.A.

INTERMET CORP - Monroe City Monroe City Missouri U.S.A.

PACIFIC DIE CASTING CORP Vancauver Washington

U.S.A.

NOVACASTAMANO INC. New London Connecticut

U.S.A.

STANADYNE CORP Washington North Carolina

U.S.A.

STROH DIE CASTING CO INC Mauston Wisconsin U.S.A.

INTERMET CORP - Jackson Plant Jackson Tennessee U.S.A.

WHITE RODGERS COMPANY Batesville Arkansas U.S.A.

HBA CAST PRODUCTS INC Springfield Massachusetts

U.S.A.

CONTECH - DIVISION OF MARATHON AUTOMOTIVE GROUP

Pierceton Indiana U.S.A.

45

PHB DIE CASTINGS Fairview Pennsylvania

U.S.A.

AMBRIT INDUSTRIES INC Glendale California U.S.A.

AMCAN CASTINGS LTD Hamilton Ontario Canada

PRESTOLITE Arcade New York U.S.A.

SODICO Shrewsbury Pennsylvania

U.S.A.

INTERMET CORP - Minneapolis Plant Minneapolis Minnesota U.S.A.

PANTERA METALWORKS Miami Florida U.S.A.

MARATHON ELECTRIC MANUFACTURING

Wausau Wisconsin U.S.A.

PIONEER DIECASTERS Los Angeles California U.S.A.

ROCHESTER BRONZE & ALUMINUM FDRY

Rochester New York U.S.A.

TORALCAST - Div Tesma International Canada

Concord Ontario Canada

TRACE DIE CAST INC Bowling Green

Kentucky U.S.A.

KENT DIECASTING INC Chatham Ontario Canada

J. W. REICHEL & SONS INC Elkhorn Wisconsin U.S.A.

AISIN AUTOMOTIVE CASTING London Kentucky U.S.A.

MARTINEZ GARZA SA Mexico City Distrito Federal

Mexico

PRESSURE CAST PRODUCTS Oakland California U.S.A.

MICROCAST TECHNOLOGIES Linden New Jersey

U.S.A.

SIMALEX MANUFACTURING CO LTD Langley British Columbia

Canada

CUSTOM CAST CORP Tualatin Oregon U.S.A.

FORT RECOVERY INDUSTRIES Fort Recovery

Ohio U.S.A.

HENRY DIE CASTING INC Mundelein Illinois U.S.A.

CAST & ENGINEERED PRODUCTS Gardena California U.S.A.

THERM CAST CORP Bristol Wisconsin U.S.A.

TOP DIE CASTING CO South Beloit Illinois U.S.A.

CANADA METAL (PACIFIC) LTD Delta British Columbia

Canada

WELCO CASTING INC Hamilton Ontario Canada

CASH MOULD & CASTING LTD London Ontario Canada

ALLOY DIE CASTING CO Buena Park California U.S.A.

JEFFERSON CITY MANUFACTURING CO INC

Jefferson City Missouri U.S.A.

GREENFIELD INDUSTRIES INC. Freeport New York U.S.A.

TECUMSEH PRODUCTS - Paris Div Paris Tennessee U.S.A.

UNITED INDUSTRIES INC Everett Massachusetts

U.S.A.

MOTORES HERMETICOS DEL SUR (EMERSON)

McAllen Texas U.S.A.

CAST-ALL CORP. Mineola New York U.S.A.

TRUTH HARDWARE EAST West Hazelton

Pennsylvania

U.S.A.

AMERICAN SHOWA Blanchester Ohio U.S.A.

SENSUS PRECISION DIE CASTING INC

Russellville Kentucky U.S.A.

CAST SPECIALITIES INC Warrensville Heights

Ohio U.S.A.

MODERN DIE CASTING Chicago Illinois U.S.A.

HERMEL DIE CASTING CORPORATION

Eau Claire Michigan U.S.A.

INTRICAST CO. INC. Santa Clara California U.S.A.

R E PHELON CO INC Aiken South Carolina

U.S.A.

COMPU DIE CASTING INC Compton California U.S.A.

PRODUCTION CASTINGS INC Fenton Missouri U.S.A.

EG&G ROTRON INC Woodstock New York U.S.A.

ARROW ACME INC. Webster City Iowa U.S.A.

ROYAL DIE CASTING CORPORATION Burbank California U.S.A.

TEXAS DIE CASTING INC Gladewater Texas U.S.A.

PRECISION FINISHED COMPONENTS - Tesma

North Sydney Nova Scotia

Canada

ALUMINUM DIE CASTING CO INC Mira Loma California U.S.A.

COTTAM DIECASTING LTD Tecumseh Ontario Canada

EST CENTRAL - LEGGETT & PLATT Grafton Wisconsin U.S.A.

PORT CITY GROUP Muskegon Michigan U.S.A.

NEW INDUSTRIES INC. Three Rivers Michigan U.S.A.

BURLINGTON TECHNOLOGIES INC Burlington Ontario Canada

LITTLE GIANT PUMP CO Oklahoma City

Oklahoma U.S.A.

KEIHIN INDIANA PRECISION TECHNOLOGY

Greenfield Indiana U.S.A.

AIRO DIE CASTING INC - Leggett & Platt

Loyalhanna Pennsylvania

U.S.A.

HALEX CO Bedford Heights

Ohio U.S.A.

GROVE DIE CASTING INC Union Grove Wisconsin U.S.A.

NEBRASKA ALUMINUM CASTING INC Hastings Nebraska U.S.A.

NEW PRODUCTS CORP Benton Harbor

Michigan U.S.A.

SHERMAN PRESSURE CASTING CORP

White Plains New York U.S.A.

HOT METAL MOLDING Arkadelphia Arkansas U.S.A.

HYATT DIE CAST & ENGINEERING CORP

Cypress California U.S.A.

OBERDORFER LLC Syracuse New York U.S.A.

LOS ANGELES DIE CASTING CO Commerce California U.S.A.

DART CASTING INC Alsip Illinois U.S.A.

HIGH SIERRA MFG CO Midpines California U.S.A.

HOFFMAN DIE CAST CORP St Joseph Michigan U.S.A.

INTERNATIONAL DIE CASTING INC Gardena California U.S.A.

46

LITTLER DIECAST CORP Albany Indiana U.S.A.

SEA PEARLS INC Minneapolis Minnesota U.S.A.

RAMCO ROTORS INC Greenville Ohio U.S.A.

LINCOLN DIE CASTING Roseville Michigan U.S.A.

LYSTER INDUSTRIES INC Lyster Quebec Canada

TEK-CAST INC Bensenville Illinois U.S.A.

FIVERSTAR DIE CASTING INC - MARSHALL MFG

Minneapolis Minnesota U.S.A.

TUCSON PRECISION PRODUCTS Tucson Arizona U.S.A.

ABLE DIE CASTING CORP Schiller Park Illinois U.S.A.

ENGINEERED SHAPES INC Garfield New Jersey

U.S.A.

BARDANE MFG CO Jermyn Pennsylvania

U.S.A.

LEGGETT & PLATT ALUMINUM GRP Willoughby Ohio U.S.A.

PERMANENT MAGNET CO INC Lawrence Indiana U.S.A.

TVT DIE CASTING & MANUFACTURING

Portland Oregon U.S.A.

DIE CAST PRODUCTS INC Willoughby Ohio U.S.A.

DOMCAST METALS INC Windsor Ontario Canada

D & S CASTINGS INC Trenton New Jersey

U.S.A.

BLACK & DECKER Fayetteville North Carolina

U.S.A.

EASTERN DIE CASTING INC Montreal Quebec Canada

APPALACHIAN CAST PRODUCTS Abingdon Virginia U.S.A.

KENWALT DIE CASTING CORP Sun Valley California U.S.A.

ACME DIE CASTING LLC Northbrook Illinois U.S.A.

NEW POINT PRODUCTS INC New Point Indiana U.S.A.

PACE INDUSTRIES Monroe City Missouri U.S.A.

CALLEN MANUFACTURING CORPORATION

Northlake Illinois U.S.A.

WEST IRVING DIE CASTING Sandwich Illinois U.S.A.

CAMP CO St Petersburg Florida U.S.A.

ORLICK INDUSTRIES LTD Hamilton Ontario Canada

KURT MANUFACTURING - Die Casting Div

Minneapolis Minnesota U.S.A.

RYOBI DIE CASTING USA INC Shelbyville Indiana U.S.A.

ASSURED CASTINGS - LEGGETT & PLATT

Rogersville Tennessee U.S.A.

JALCO INDUSTRIES INC. Jackson Ohio U.S.A.

CAST METALS TECHNOLOGY INC - DIV OF ALUMINUM FOUNDRIES

Winchester Indiana U.S.A.

FORMCAST DEVELOPMENT INC Denver Colorado U.S.A.

SAXON DE YUCATAN SA DE CV Merida Yucatan Mexico

ST CLAIR DIE CASTING LLC Saint Clair Missouri U.S.A.

MODERN ALUMINUM CASTINGS CO INC

Terre Haute Indiana U.S.A.

AMERICAN POLISHING INC Salem Arkansas U.S.A.

PREMIER DIE CASTING COMPANY Avenel New Jersey

U.S.A.

SDC INC Sullivan Missouri U.S.A.

PERKO INC Miami Florida U.S.A.

TECHNICAL DIE-CASTING INC Stockton Minnesota U.S.A.

LYNRUS ALUMINUM PRODUCTS Salt Lake City Utah U.S.A.

21ST CENTURY DIE CASTING Muncie Indiana U.S.A.

ENGINEERING & PROCESSES INC Milwaukee Wisconsin U.S.A.

VILLAGE CASTINGS INC Caseville Michigan U.S.A.

CONTECH - DIVISION OF MARATHON AUTOMOTIVE GROUP

Alma Michigan U.S.A.

CAMBRIDGE TOOL NORTH - LEGGETT & PLATT

Dover New Hampshire

U.S.A.

WHITEHEAD DIE CASTING Gainesville Georgia U.S.A.

ORCHID INTERNATIONAL McAllen Texas U.S.A.

WISCONSIN DIE CASTING Milwaukee Wisconsin U.S.A.

SOLUS MANUFACTURING Wallaceburg Ontario Canada

CHICAGO WHITE METAL CASTING INC

Bensenville Illinois U.S.A.

CONTECH - DIVISION OF MARATHON AUTOMOTIVE GROUP

Portage Michigan U.S.A.

EQUALITY DIE CAST INC Winona Minnesota U.S.A.

MONARCH FABRICATING & DIE CASTER

Toronto Ontario Canada

CASTWELL INC Elizabeth New Jersey

U.S.A.

CONTECH - DIVISION OF MARATHON AUTOMOTIVE GROUP

Clarksville Tennessee U.S.A.

EMPIRE DIE CASTING CO INC Macedonia Ohio U.S.A.

NEATON AUTO PRODUCTS MFG INC Eaton Ohio U.S.A.

UNITED DIE CASTING Royce City Texas U.S.A.

YODER INDUSTRIES INC Dayton Ohio U.S.A.

AMT DIE CASTING INC Saint Cyprien Quebec Canada

SKS DIE CASTING & MACHINING INC Alameda California U.S.A.

LEGGETT & PLATT ALUMINUM-HARRISON

Harrison Arkansas U.S.A.

DYNACAST INC Lake Forrest California U.S.A.

ALEACIONES Y METALES INDUSTRIALES - de Saltillo SA DE CV

Ramos Arizpe

Coahuila Mexico

LESUEUR INCORPORATED LeSueur Minnesota U.S.A.

DYCAST SPECIALTIES CORP Starbuck Minnesota U.S.A.

DIE CAST OF AMERICA City of Industry

California U.S.A.

AO SMITH EPC El Paso Texas U.S.A.

ELKTON DIE CASTING LLC Versailles Kentucky U.S.A.

47

PINNACLE MANUFACTURING CO Batavia New York U.S.A.

RCM INDUSTRIES Rutherfordton North Carolina

U.S.A.

CAST-RITE CORP Gardena California U.S.A.

PECO MFG COMPANY INC Portland Oregon U.S.A.

UNISON Rockford Illinois U.S.A.

CALIFORNIA DIE CASTING Ontario California U.S.A.

HERITAGE DIE CASTING CO Denver Colorado U.S.A.

SHAMROCK INDUSTRIES Ft Worth Texas U.S.A.

TWIN CITY DIE CASTING CO Monticello Minnesota U.S.A.

SCICAST INTERNATIONAL INC Bechtelsville Pennsylvania

U.S.A.

INVERNESS CASTINGS GROUP INC. Dowagiac Michigan U.S.A.

PACE INDUSTRIES - LEGGETT & PLATT

Harrison Arkansas U.S.A.

SB POWER TOOL COMPANY Heber Springs

Arkansas U.S.A.

GLOBE MOTORS FOUNDRY OPERATIONS

Dayton Ohio U.S.A.

HARBOT DIE CASTING CORP Nutley New Jersey

U.S.A.

HUBBELL DIE CASTING Moultrie Georgia U.S.A.

ROCKFORD METAL PRODUCTS Rockford Illinois U.S.A.

AO SMITH CORP Mebane North Carolina

U.S.A.

INTERMET CORP - Headquarters Troy Michigan U.S.A.

FELS TOOL & MFG CORP Palatine Illinois U.S.A.

SANMINA-SCI ENCLOSURE DIVISION Turtle Lake Wisconsin U.S.A.

SUS CAST PRODUCTS INC Logansport Indiana U.S.A.

SMALL ASSEMBLIES INC Chicago Illinois U.S.A.

BASIC ALUMINUM CASTING CO Cleveland Ohio U.S.A.

FONDERIE LEMOLTECH INC Princeville Quebec Canada

AHRESTY WILMINGTON CORP Wilmington Ohio U.S.A.

BARRIE CASTING TECHNOLOGIES Barrie Ontario Canada

DIAMOND CASTING & MACHINE CO Hollis New Hampshire

U.S.A.

READE ADVANCED MATERIALS Riverside Rhode Island

U.S.A.

GULAN DIE CASTING LTD Mississauga Ontario Canada

ARMADA TOOL WORKS Lindsay Ontario Canada

SKRL DIE CASTING Eastlake Ohio U.S.A.

ELECAST INC Waverly Pennsylvania

U.S.A.

CHRYSLER CORPORATION Kokomo Indiana U.S.A.

REGENT DIE &MFG Chicago Illinois U.S.A.

INTERMET CORP - Pulaski Plant Pulaski Tennessee U.S.A.

C & H DIE CASTING INC Temple Texas U.S.A.

MICROPRECISION DIE CASTING Hamilton Ontario Canada

CT PRECISION CASTING INC Claremont New Hampshire

U.S.A.

OLD JACKSONVILLE INDUSTRIES INC Jacksonville Texas U.S.A.

DYNACAST INC Elgin Illinois U.S.A.

UNIVERSAL DIE CASTING Los Angeles California U.S.A.

PRECISION INDUSTRIES - LEGGETT & PLATT

Malvern Arkansas U.S.A.

LANSCO DIE CASTING INC Industry California U.S.A.

WALKER DIE CASTING Lewisburg Tennessee U.S.A.

MITSUI COMPONENTS (USA) INC Casa Grande Arizona U.S.A.

SAN JOSE DIE CASTING CORP San Jose California U.S.A.

KITCHEN-QUIP INC Waterloo Indiana U.S.A.

PRIMA DIE CASTING INC Clearwater Florida U.S.A.

METALDYNE Niles Illinois U.S.A.

RANGERS DIE CASTING CO INC Lynwood California U.S.A.

CARPENTER DIE CASTING CO LTD Stoney Creek Ontario Canada

KERNS METALCASTING INC Windsor Ontario Canada

LEGGETT & PLATT ALUMINUM-SALTILLO

Saltillo Coahuila Mexico

SHEPHERD PRODUCTS St Joseph Michigan U.S.A.

ASAMA COLDWATER MFG Cold Water Michigan U.S.A.

AMERICAN WHEELS DE MEXICO SA DE CV

Santa Rosa Nuevo Leon

Mexico

KUHLMAN CASTING CO. Detroit Michigan U.S.A.

BLUE RIDGE PRESSURE CASTINGS INC

Lehighton Pennsylvania

U.S.A.

AMERICAN ALUMINUM CASTING CO Irvington New Jersey

U.S.A.

PREMIER TOOL & DIE CAST CORP Berrien Springs

Michigan U.S.A.

CASCADE DIE CASTING GROUP High Point North Carolina

U.S.A.

MADISON KIPP CORP Madison Wisconsin U.S.A.

BOWERSOX PRECISION CASTINGS Trainer Pennsylvania

U.S.A.

TWIN CITY DIE CASTINGS CO Watertown South Dakota

U.S.A.

AIRTEX PRODUCTS Fairfield Illinois U.S.A.

SPARTAN LIGHT METAL PRODUCTS Sparta Illinois U.S.A.

COX DIE CASTING Gardena California U.S.A.

GENERAL DIE CASTERS INC Twinsburg Ohio U.S.A.

WIL-KAST INC Grand Rapids Michigan U.S.A.

BRIGGS & STRATTON CORP Stateboro Georgia U.S.A.

48

North American Die Casting Association

Die Casters have their own industry association. Membership information is available to the public on the internet in order to promote member companies. Membership data can be sorted by die casting process, metal and alloy used, location. Many of the members of NADCA are also members of the AFS The following is a list of 100 pressure die caster members of the NADCA that use aluminum alloys.

Company Name City State

/Province Country

*A & B Die Casting Inc Hercules CA USA *Able Die Casting Corp Schiller Park IL USA *Ace Precision Castings LLC Marshalltown IA USA *Acme Alliance LLC Northbrook IL USA *Ahresty Wilmington Corp Wilmington OH USA *Albany-Chicago Co Pleasant Prairie WI USA *Alloy Die Casting - A Sanders Industries Co Buena Park CA USA

*Apex Aluminum Die Casting Co Piqua OH USA *Auto Cast Inc Grandville MI USA *Blue Ridge Pressure Castings Inc Lehighton PA USA *Briggs & Stratton Corp - Poplar Bluff Poplar Bluff MO USA

*Briggs & Stratton Corp - Milwaukee Milwaukee WI USA *Briggs & Stratton Corp - Murray Murray KY USA *Briggs & Stratton Corp - Statesboro Statesboro GA USA

*Brillcast Inc Grand Rapids MI USA *California Die Casting Inc Ontario CA USA

*Callen Die Casting De Mexico, S De RL De CV

Cd. Reynosa, Tam., C.P. 88781

Mexico

*Callen Manufacturing Corp Northlake IL USA *Cascade Die Casting Group Inc - Atlantic Division High Point NC USA

*Cascade Die Casting Group Inc - Great Lakes Division Sparta MI USA

*Cast Specialties Inc Warrensville Heights OH USA

*Chicago White Metal Casting Inc Bensenville IL USA *Congress Drives LLC Ennis TX USA *CONTECH - Alma Alma MI USA *CONTECH - Auburn Auburn IN USA *CONTECH - Clarksville Clarksville TN USA *CONTECH - Division Headquarters Portage MI USA *CONTECH - Dowagiac Dowagiac MI USA *CONTECH - UK Powys SY21 8SL Wales *Cox Die Casting Inc Gardena CA USA *Crecocast A Division of Creco Corp Seville OH USA *Davenport White Metal Casting Co A Div of Quad Cast Inc Davenport IA USA

*DeCardy Diecasting Co Chicago IL USA *Del Mar Industries Inc Gardena CA USA *DyCast Specialties Corp Starbuck MN USA *Dynacast Elgin Elgin IL USA *Dynacast Lake Forest Lake Forest CA USA *Empire Die Casting Macedonia OH USA *Fivestar Die Casting - Division of Marshall Manufacturing Minneapolis MN USA

*Fort Recovery Industries Inc Fort Recovery OH USA *General Die Casters Inc Twinsburg OH USA

*Georg Fischer Inc. Montreal QC Canada

*Gibbs Die Casting Corporation Henderson KY USA *GM Powertrain Bedford Bedford IN USA *Greenfield Industries Inc Freeport NY USA *Heritage Die Casting Co Denver CO USA *Honda Manufacturing of AL LLC Lincoln AL USA *INTERMET Jackson Plant Jackson TN USA *INTERMET Minneapolis Plant New Hope MN USA *INTERMET Monroe City Aluminum Plant Monroe City MO USA

*INTERMET Pulaski Plant Pulaski TN USA *KenWalt Die Casting Corp Sun Valley CA USA *Kinetic Die Casting Inc North Hollywood CA USA *Kirby West Andrews TX USA *Littler Diecast Corp Albany IN USA *Los Angeles Die Casting Co Div of Del Mar Industries Inc Commerce CA USA

*Lyster Industries Inc Lyster QC Canada

*Madison Kipp Corp Madison WI USA *Magnesium Aluminum Corp Cleveland OH USA *Mercury Castings - Division of Mercury Marine - OK Stillwater OK USA

*Mercury Castings - Division of Mercury Marine - WI Fond Du Lac WI USA

*Micro Industries Inc Rock Falls IL USA *Microcast Technologies Linden NJ USA

*Microcast Technologies Mexicana Chihuahua Z.C. 32470

Mexico

*Nebraska Aluminum Castings Inc Hastings NE USA *Nemak Alabama HPDC Operations Sylacauga AL USA *Northern Iowa Die Casting, Inc. Lake Park IA USA *Omni Die Casting Inc Massillon OH USA *Pace Industries – Airo Division Loyalhanna PA USA *Pace Industries – Cambridge Division North Billerica MA USA

*Pace Industries – Chihuahua Division El Paso TX USA

*Pace Industries – EST Division Grafton WI USA *Pace Industries – Harrison Division Harrison AR USA *Pace Industries – Monroe City Division Monroe City MO USA

*Pace Industries – Saltillo Division Saltillo Coahuila 25

Mexico

*Pace Industries – St Paul Division Saint Paul MN USA *Pacific Die Casting Corp - Vancouver Vancouver WA USA

*PHB-Die Casting Division Fairview PA USA *Pittsburgh Die & Casting Co Pittsburgh PA USA *Port City Group Muskegon MI USA *Premier Die Casting Company Avenel NJ USA *Premier Lakewood Inc Lakewood NY USA *Premier Tool & Die Cast Corp Berrien Springs MI USA

49

*Prestige Casting Inc Englewood CO USA *Production Castings Inc Fenton MO USA *Quad City Die Casting Co - A Div of Quad Cast Inc Moline IL USA

*QZD Inc St Jean Sur Richelieu QC

Canada

*RCM Industries Inc - Aallied Die Casting Co of IL Franklin Park IL USA

*RCM Industries Inc - Aallied Die Casting Co of NC Rutherfordton NC USA

*RCM Industries Inc - Imperial Die Casting Co Liberty SC USA

*RCM Industries Inc - Inland Die Casting Co Wheeling IL USA

*Red Oak Die Casting - A Div of Quad Cast Inc Red Oak IA USA

*Rheocast Company Germantown WI USA *Ryobi Die Casting (USA) Inc Shelbyville IN USA *Sanmina-SCI Enclosure Div Turtle Lake WI USA *SENSUS Precision Die Casting Inc Russellville KY USA

*Simalex Manufacturing Co Ltd Langley BC Canada

*SKS Die Casting & Machining Inc Alameda CA USA

*Soldy Mfg Co Inc Schiller Park IL USA *Spartan Light Metal Products - IL Sparta IL USA *Spartan Light Metal Products LLC - MO Mexico MO USA

*St Clair Die Casting LLC Saint Clair MO USA *Stroh Controls Inc Mauston WI USA *Stroh Die Casting Co Inc Milwaukee WI USA *Team Industries-Detroit Lakes Detroit Lakes MN USA *Tek-Cast Inc Bensenville IL USA *TRU Die Cast Corp New Troy MI USA *Twin City Die Castings Co - Minneapolis Minneapolis MN USA

*Twin City Die Castings Co - Monticello Monticello MN USA

*Twin City Die Castings Co - Watertown Watertown SD USA

*Walker Die Casting Inc Lewisburg TN USA *West Irving Die Casting Group Sandwich IL USA *Whitehead Die Casting Co Inc Gainesville GA USA *Yoder Industries Inc Dayton OH USA

It is possible to research all the companies listed in the index. Addresses and contact information is provide by the AFS and NADCA, and data can accessed by web site research.

Appendix 4 contains Canadian and U.S. die casting company profiles from a variety of industry sources. From these profiles, we can determine if the casting company is captive or custom, the range of aluminum and other materials they use, and the degree that these companies service a local market. It is beyond the scope of this report to provide a detailed analysis of all die cast aluminum companies in North America. These company profiles are presented as representative of the kind of detailed information that can be provided, and the sources of that information. When an industry attraction marketing effort is launched, target company research will form part of the recruitment process and this information can form a starting point. Appendix 5 lists the trade shows and industry association trade shows that are available as a means to meet company representatives and make contact with key executives die casting companies.

50

Report Conclusions The best opportunity for value added aluminum manufacture for Kitimat Terrace is in the captive aluminum die casting or permanent mold casting business. Captive aluminum casting is performed in the automotive power train industry, marine engines, non-auto engines, power tools. World recession is underway at the time of this report. It would be inappropriate to approach any companies in any of the casting markets at this time. Kitimat Terrace must monitor the industry and wait for signs of economic recovery. This time can be used to better understand the needs of the industry through active monitoring of industry activity and building up a database of potential target companies. Aluminum fabrication industry growth will be stronger in Asia than in Europe or North America. Kitimat Terrace is well positioned to ship to this market. The competitiveness of Kitimat Terrace production of fabricated aluminum products will depend on Asian government policies concerning export tax rebates and energy pricing. Captive aluminum casting companies should be targeted in Asia as well as North America.

Sample Captive Aluminum Die Casting Companies in orth America

MERCURY CASTINGS - Mercury Marine Stillwater Oklahoma U.S.A. BRIGGS & STRATTON CORP Murray Kentucky U.S.A. CHRYSLER CANADA - Etobicoke Casting Plant Toronto Ontario Canada BLACK & DECKER Fayetteville North Carolina U.S.A. RYOBI DIE CASTING USA INC Shelbyville Indiana U.S.A. CHRYSLER CORPORATION Kokomo Indiana U.S.A. MITSUI COMPONENTS (USA) INC Casa Grande Arizona U.S.A. BRIGGS & STRATTON CORP Stateboro Georgia U.S.A. GM POWERTRAIN BEDFORD Bedford Indiana USA HONDA MANUFACTURING OF AL LLC Lincoln Alabama USA TORO COMPANY Windom Minnesota U.S.A. Canadian Auto Parts Toyota Delta BC Canada Montupet Beaucette River Quebec Canada Nemak Windsor Ontario Canada

Next Steps

• Develop a 3 year marketing plan to market the Terrace Kitimat region to the captive aluminum die casting industry in North America and Asia.

• Develop and implement a casting industry monitoring and research program through industry periodicals, magazines and e-bulletins.

• Keep abreast of new casting technologies designed to make use of molten metal supply and lower production costs.

• Implement the marketing plan when the world economy rebounds.

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Appendices

Appendix 1 – Uses of Aluminum, End Use Markets

Appendix 2 – Aluminum Product Manufacture

Appendix 3 – Die Casting Research, Molten Metal Supply

Appendix 4 – Die Casting Target Company Profiles

Appendix 5 – Opportunities to Meet with the Metal Casting Industry

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Appendix 1 - Uses of Aluminum – End Use Markets

Top markets for the industry are transportation 27%, beverage cans and other packaging 15%, and building construction 22%. Other markets include electrical (wire and cable 13%), machinery 10% and consumer durables (9%). In 1994, transportation first emerged as the largest market for aluminum, at about one-quarter of the market, with passenger cars accounting for the vast majority of the growth. That trend has continued. A detailed discussion of aluminum markets follows, based on information supplied from the Aluminum Association. A) Transportation The growth in the use of aluminum in transportation applications is noteworthy, particularly in light of the proliferation of alternative materials and global competition. Transportation represents the largest market for aluminum in North America. Automotive and light truck applications accounted for almost 6 billion pounds of aluminum shipments in 2006. Aluminum-intensive automobiles include the Audi A8—with its aluminum body, aluminum front and rear axle, and numerous other aluminum components—and the Jaguar XK, with its aluminum monocoque body structure. In 2006, aluminum overtook iron to become the second most used material in new cars and trucks worldwide. Automakers are increasingly choosing aluminum to improve fuel economy, reduce emissions and enhance vehicle performance.

A1) Automotive Aluminum

Aluminum use continues to rise in the automotive industry. Automakers are turning to aluminum more and more because of its many advantages (weight savings, recyclability, parts consolidation, crashworthiness, etc.).

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The transportation industry uses over one-third of all the aluminum manufactured in the United States making it the number one market for aluminum. Approximately 8.7 billion pounds of aluminum were shipped to the transportation industry in North America in 2005. Automakers use aluminum for applications ranging from wheels to frames to suspension components and the possibilities are almost limitless

Lightweighting

When applied to an optimized automotive body structure, aluminum can provide a weight savings of up to 50 percent compared to an equivalent steel structure. Aluminum body structure stiffness and crashworthiness are equal or superior to steel. These results can be achieved, even though the stiffness modulus of aluminum is only one-third that of steel, because aluminum has only one-third the density of steel and a higher strength-to-weight ratio. By using appropriate increases in aluminum thickness and section size coupled with efficient joining, body structure strength and stiffness targets can be met at metal thicknesses about 1.5 times those of steel and still result in a 50 percent weight reduction. For body panels such as hoods, deck lids and fenders, aluminum can yield even larger weight savings. And alloys 6111 and X6022, which strengthen significantly during E-coat paint baking, provide dent resistance equal or superior to steel. The chart below for the Ford Taurus/Sable-based aluminum-intensive vehicle (AIV) illustrates what can be achieved in such a vehicle where the unibody structure is weld bonded for efficient joining. The structure was not redesigned, yet a weight savings of 46 percent was achieved. Steel Aluminum Weight

Saved % Chg

Body structure (lbs.) 596 320 276 -46

Hood, deck & fenders (lbs.) 90 38 52 -58

Front and rear doors (lbs.) 132 79 53 -40

Total body-in-white (lbs.) 818 437 381 -47

Torsional rigidity (ft. lb./deg)* 7.4 11.0 — +49

Total vehicle (lbs.) 3245 2894 381 -11.6

Primary weight savings also enable many of the other vehicle systems to be downsized, such as the engine, transmission, brakes, suspension, wheels, etc. The chart above shows how hypothetical secondary weight savings in a mid-sized sedan could lead to a total weight reduction of over 700 lbs.

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Automotive Aluminum Alloys and Applications

Aluminum alloys are designed to meet specific product requirements. Automotive engineers have drawn upon the versatility of aluminum for more than 100 types of components and the list continues to grow. Aluminum alloys are grouped into numbered series according to their main alloying elements. The first digit of each aluminum alloy’s identifying number indicates its basic series. The other digits identify specific variations of the basic composition. Depending on the specified levels of alloying elements and impurity limits, each alloy is made with varying amounts of scrap ranging from almost no scrap to 100 percent scrap. The following is a list of alloys and their typical automotive applications.

1000 Series - With aluminum of 99 percent or higher purity, these compositions are characterized by excellent corrosion resistance, high thermal and electrical conductivity, low mechanical properties and excellent workability. Moderate increases in strength may be obtained by strain hardening.

1100 Trim, nameplates, appliqués

1200 Extruded condenser tubes and fins

2000 Series - Copper is the principal alloying element in this group. When heat-treated, the mechanical properties are similar to, and sometimes exceed, those of mild steel. Artificial aging may be employed to increase strength.These alloys in the form of sheet are often clad with a high-purity 6000 or 7000 series alloy. This provides physical and electrolytic protection to the core material, and greatly increases resistance to corrosion.

2008 Outer and inner body panels (also suitable for structural applications)

2010 Outer and inner body panels (also suitable for structural applications)

2011 Screw machine parts

2017 Mechanical fasteners

2024 Mechanical fasteners

2036 Outer and inner body panels, load floors, seat shells

2117 Mechanical fasteners

3000 Series - Manganese is the major alloying element in this group. These alloys are not heat treatable. They have a superior combination of corrosion resistance and formability.

3002 Trim, nameplates, appliqués

3003 Braze-clad welded radiator tubes, heater cores, radiator, heater and evaporator fins, heater inlet and outlet tubes, oil coolers, and air conditioner liquid lines

3004 Interior panels and components

3005 Radiator, heater and evaporator parts

3102 Extruded condenser tubes

5000 Series - Magnesium is one of the most effective and widely used alloying elements for aluminum, and is the principal element in the 5000 series alloys. When it is used as the major alloying element or combined with manganese, the result is a moderate- to high-strength, non-heat-treatable alloy. Alloys in this series are readily weldable and have excellent resistance to corrosion, even in marine applications

5005 Trim, nameplates, appliquŽs

5052 Interior panels and components, truck bumpers and body panels

5182 Inner body panels, splash guards, heat shields, air cleaner trays and covers, structural and weldable parts, load floors (sheet)

5252 Trim

5454 Various components, wheels, engine accessory brackets and mounts, welded structures (i.e. dump bodies, tank trucks, trailer tanks)

5457 Trim

5657 Trim

5754 Inner body panels, splash guards, heat shields, air cleaner trays and covers, structural and weldable parts, load floors (sheet)

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6000 Series - Alloys in this group utilize magnesium and silicon in various proportions to form magnesium silicide, which makes them heat treatable. A major alloy in this series is 6061, one of the most versatile of the heat-treatable alloys. The magnesium-silicon (or magnesium-silicide) alloys possess good formability and corrosion resistance with high strength.

6009 Outer and inner body panels, load floors, bumper face bars, bumpers reinforcements, structural and

weldable parts, seat shells

6010 Outer and inner body panels, seat shells and tracks

6022 Outer and inner body panels

6053 Mechanical fasteners

6061 Body components (extruded), brackets (extruded and sheet), suspension parts (forgings), driveshafts (tubes), driveshaft yokes (impacts and forgings), spare tire carrier parts (extruded), bumper reinforcements, mechanical fasteners, brake cylinders (extruded), wheels, fuel delivery systems

6063 Body components (extruded)

6082 General structural, brake housings

6111 Body panels

6262 Brake housings, brake pistons, general screw machine parts (anodized)

6463 Luggage racks, air deflectors

7000 Series -Zinc is the principal alloying element in this group. When it is combined with smaller percentages of magnesium and, in some cases, copper, it results in heat-treatable alloys of very high strength.

7003 Seat tracks, bumper reinforcements

7004 Seat tracks, bumper reinforcements

7021 Bumper face bars, brackets (sheet), bumper face bars (bright), bumper face bars (bright anodized), bumper reinforcements

7072 Condenser and radiator fins

7116 Headrest bars

7129 Bumper face bars, bumper reinforcements, headrest bars (extruded), seat tracks

Casting Alloys

Aluminum alloy castings can be produced by virtually all casting processes in a very large range of compositions possessing a wide variety of useful engineering properties. The choice of a specific casting alloy depends on the chosen casting process (which include sand, permanent mold, die, lost foam, or squeeze), the product design, the required properties of the product, and other relevant factors.

A380.0 Bracket housings, internal engine parts steering gears

383.0 Blocks, transmission housing/parts, fuel metering devices

319.0 Manifolds, cylinder heads, blocks, internal engine parts

356.0 Cylinder heads, manifolds

A356.0 Wheels

B390.0 High-wear applications such as ring gears and internal transmission parts.

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A2) Aluminum in Aircraft Aluminum plate is used in the manufacture of aircraft and for fuel tanks in spacecraft. The airframe of a typical modern commercial transport aircraft is 80 percent aluminum by weight. Structural components of current United States Navy aircraft are made of fabricated wrought aluminum (forged, machined, and assembled parts). There are efforts under way to persuade the Navy to adopt aluminum casting technology, which offers lower manufacturing cost, the ability to form complex shapes, and the flexibility to incorporate innovative design concepts. Aircraft manufacturers use high-strength alloys (principally alloy 7075) to strengthen aluminum aircraft structures. Alloy 7075 has zinc and copper added for ultimate strength, but because of the copper, it is very difficult to weld. It anodizes beautifully. 7075 has the best machinability and results in the finest finish.

A3) Marine Applications of Aluminum

High Speed Ships

.......Light Weight Means Enhanced Performance

Aluminum construction increases speed and size, enhances fuel economy, seaworthiness, safety, and reliability, and lowers maintenance. Weight savings of 35% to 45% in hulls, and 55% to 65% in superstructures, can be achieved with aluminum compared to steel. Higher vessel speeds and load capacities, enabled by use of aluminum, attract extra traffic volume and profit for the ferry operator.

Photo on top: The Italian all aluminum yacht, Destriero, (pictured), won the Blue Riband in 1992 when it beat the previous record by almost 2 days. Photo on bottom: Several dozen aluminum-intensive fast ferries, now operating, each have the ability to handle up to 1,500 passengers and 375 cars and travel at speeds of 30-50 knots. In many cases, integrally stiffened and mechanically interlocked extrusions are used for decks, roofing and other structures with conventional welded extrusions and sheet used for hulls and framing.

Used in the marine industry for more than 100 years, aluminum combines light weight and ease of fabrication with corrosion and fatigue resistance. Aluminum’s unique characteristics allow vessel volume and height to be increased without loss of stability. Passenger compartments can be larger and more cabins can be located above sea level. Cruise ships gain increased maneuverability and access to shallow draft ports through the use of aluminum.

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Off Shore Platforms, Helidecks, Seawalls

• In water depths of 400 feet, a one-ton weight savings in platform superstructure means a weight savings of 6 tons in the supporting structure.

• Aluminum is often used in the construction of helicopter decks (helidecks) for resupply of oil rigs.

• Marine-grade aluminum alloys offer maintenance free service with remarkable corrosion resistance.

• Using aluminum components reduces handling and offshore lifting costs, and speeds assembly.

• Aluminum does not burn and presents no thermite sparking risks. • Even in salt water applications, little or no protective coatings are required

for aluminum seawalls.

Photo on top: The first all-aluminum oil rig was installed in Venezuela in 1957.

Photo on bottom: Seawalls, must offer long-term structural integrity and resistance to

the elements.

Marine grade aluminum alloys are used for helidecks, telescoping bridges, accommodation modules, stair towers, cable ladders, fire walls, mud mats, gratings, and many other applications around the globe. Aluminum structures weigh 40-70% less than equivalent steel structures in these applications. Larger, lighter aluminum structures can be handled and lifted with smaller, less expensive equipment. In marine environments, properly selected aluminum alloys require no painting or protection against exposure, and require little or no maintenance. Aluminum is widely used in cruise ships, pleasure boats, irrigation pipe, heat exchangers, sewage treatment plants, and rain carrying equipment because of its durability in the natural environment. Installations of aluminum culvert sheeting and pipelines have shown its resistance to corrosion in many soils. Some aluminum drill pipes, for example, have been in use for more than 20 years. A4) Rail Cars

........Durability with a High Pay Load

• Aluminum rail cars, designed with aluminum extrusions, require one-third the number of components, have reduced welding needs, and are two-thirds the weight of comparable steel cars.

• In less than two years, aluminum’s higher carrying capacity repays its higher initial cost.

• Life-cycle fuel costs are lower due to the lighter weight of the car. • Aluminum offers excellent resistance to corrosion from high-sulfur coal • Aluminum rail cars have high salvage value when their hulks are scrapped.

Several hundred 100-ton capacity triple-hopper cars, originally built around 1967 with approximately 13,500 pounds of aluminum sheet, plate, and extrusions, were sold 30 years later for almost 90 percent of their original manufacturing cost!

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Building rail cars from aluminum is a tested and proven way to increase railroad efficiency. Aluminum railroad cars were pioneered for the railroad industry in the late 1950s and are still the material of choice for this mode of transportation. Designing with aluminum results in lightweight cars that retain the strength of steel cars but can carry greater loads. Whether constructed of all aluminum, or aluminum with steel, lighter railroad cars save money in both freight and fuel costs. An excellent example is the third generation of the TGV Duplex, a French high speed train, converted from steel to aluminum to achieve a 20 percent weight savings, while also converting to two decks and keeping the axle load below 17 tons. The Japanese high-speed “Bullet” train and the Washington, DC Metro trains are also fabricated with aluminum. Aluminum is durable and withstands the railroad environment. Extensive shaking tests and decades of use offer testimony to aluminum’s superiority for this application. A recent study shows that after 20 years of service, there is negligible loss of metal thickness or surface defects on cars used to ship different materials an average of 110,000 miles per year. Metal loss on floors and sidewalls from corrosion and wear measured approximately 25 percent less than comparable steel cars. B) Aluminum Packaging In 2005, containers and packaging ranked second to transportation with 20 percent of the North American aluminum market, thanks to shipments of 5.1 billion pounds in products such as beverage cans, food containers, and household and institutional foil. Product producers and consumers are increasingly using foil because of the numerous advantages it holds over competing packaging materials. In 2005, containers and packaging ranked second to transportation with 20 percent of the North American market for aluminum shipments, thanks to shipments of 5.1 billion pounds of aluminum in products such as beverage cans, food containers, and household and institutional foil.

The popularity of aluminum packaging is in part attributable to the changing habits of North Americans, who have become convinced of the benefits of recycling (energy and natural resource conservation, as well as landfill savings). Thanks to more than 10,000 recycling centers nationwide, over half of all aluminum cans produced today are recycled. The industry has done its part in reducing the weight of aluminum cans by about one-third and continuing to raise awareness of the value of recycling.

B1) Foil

Aluminum foil is the most versatile packaging material on the market today. No other material can claim to be the lowest-cost absolute barrier to light, moisture, and oxygen. Laminated to paper or plastic films for strength, foil provides lighter, less-expensive protection to foods, medicines, and other products that would be damaged by the environment.

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Benefits of using foil: • Formable: Great dead-fold characteristics for good performance on high-speed packaging lines. • Corrosion Resistant: Natural oxide coating reduces corrosion. • Impermeable: 0.001-inch foil and thicker is impermeable to moisture and oxygen; 0.00035-inch foil has a water

vapor transmission rate of 0.02 grams or less per 100 square inches; vapor transmission drops to zero when 0.00035-inch foil is laminated to an appropriate film.

• Adaptable: Can be combined with virtually any other flexible packaging material. • Not Absorbent: Will not absorb water or other liquids • Opaque: Transmits no light. • Sealable: Excellent dead-fold and adhesion to a wide variety of compounds. • Non-Soluble: Will not combine with foods and other substances. • Tasteless, Odorless: Imparts no detectable taste or odor to products. • Hygienic: Sterile when heat-treated in production. Smooth metallic surface sheds most of the contaminants and

moisture of sterilization. • Non-Magnetic: Provides excellent non-magnetic shielding. • Good Conductor: Good for sealing by heat and induction.

B2) Rigid Containers

Rigid containers are simply thicker gauges of foil that have been formed into semi-rigid containers to bring the convenience of modern food technology into our homes, schools, and restaurants. Rigid containers, like foil sheets, provide an ideal barrier to moisture, light, and air. Rigid containers are perfect for holding leftovers and catered food items because, unlike other types of containers, rigid containers do not get soggy or wet—and they can be easily recycled. C) Durable Consumer Products Kitchen pots, frying pans, cookie sheets, picture frames, refrigerator trim, lawn chairs, ladders, gas grills, and wind chimes are all items that are frequently made from aluminum. If you work out of your house, your home computer, laptop, phone, printer, and CDs are aluminum. Baseball bats, lacrosse sticks, and fishing gear also are made from aluminum.

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D) Building and Construction Largely due to products in the residential, industrial, commercial, farm, and highway sectors, the 2005 building and construction market accounted for 3.7 billion pounds of net shipments, good for 14.4 percent of total shipments and the third largest North American market for aluminum. A potential new application for aluminum is in the nation’s infrastructure, such as bridges, oil rigs, and fast ferries. In many cases, the low weight, high strength, and durability of aluminum alloys make aluminum attractive to construction contractors. With the likelihood of thousands of concrete and steel-reinforced bridge decks facing rebuilding due to their age and condition, aluminum could be a critical alternative building material. Aluminum is cost-effective because it requires less maintenance and painting than traditional materials. It can be installed relatively rapidly and with less inconvenience and disruption to pedestrian and street traffic.

D1) Bridge Superstructures & Decks........Lower Maintenance, Cost-effective

In 2006, an extruded aluminum deck was constructed for the Kentucky State Road 974 bridge. The aluminum deck weighs approximately 80 percent less than the steel reinforced concrete deck it replaced, which permitted increasing the load limit for trucks crossing the bridge.

• Aluminum bridge decks are 80 percent lighter than concrete, offering increased bridge width and capacity without the need to strengthen the supporting bridge elements.

• Corrosion-resistant aluminum bridge decks require no painting and minimal maintenance, and are better suited than steel or concrete where de-icing chemicals are used.

• Aluminum allows for rapid, cost-effective construction. In comparison, concrete typically requires extensive formwork and cure time.

• Downtime for a bridge receiving an aluminum deck is a fraction of the time needed for concrete.

• Low-temperature toughness makes aluminum ideal for bridges and other highway structures in colder climates

D2) Electrical Transmission Towers........Cost Effective, Easy Installation

• All-aluminum towers were first put into service in 1959 by several utilities. Prior to 1950, aluminum was used in combination with steel. Weight reductions of 50-70 percent can be realized over equivalent steel structures.

• Initial price differences with steel can be completely offset because of lower erection costs in the field and lower maintenance costs over time.

• An aluminum three-pole guyed angle tower weighs approximately one-fifth that of a self-supporting steel tower and, with a smaller base, can be installed with relative ease.

This tower, shown under test, is an eight-guy, Y-tower used for a 500-kV transmission line by Ontario Hydro. Bulb angle chord sections are used in the body of the tower.

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High-strength, relatively low-cost prefabricated aluminum is challenging steel today for construction of 138-kV and higher transmission towers. Not only does aluminum give designers a higher strength-to-weight ratio, it also affords better corrosion resistance than steel, multi-form shape extrudability, and reasonable prices. Installation costs are also dramatically reduced by using aluminum. Aluminum can be extruded into shapes that maximize torsional rigidity and radii of gyration. Lightweight, conventional erecting equipment can be used to build the tower, as well as faster methods—thereby meeting fast-track construction schedules. Helicopters can also be used to lift, shift, or move components into place, irrespective of how rough or inaccessible the site may be.

D3) Structural Applications

When considering materials for structural applications, engineers and designers know that when they choose aluminum, they’re getting a true “heavyweight.” Aluminum, with one-third the density of steel, has a proven record of carrying loads well in excess of its weight. Note these tough facts: • Aluminum structures can weigh anywhere from

35 percent to as much as 80 percent less than steel while providing equivalent strength.

• A pound of aluminum can replace twice the weight of steel in most applications.

• Aluminum has a higher strength-to-weight ratio than most other metals or structural materials.

Geodesic Domes

........High Strength-to-Weight Ratio, Structural Integrity Domes are used for gymnasiums, schools, theme parks, storage facilities, multi-purpose arenas, industrial roof systems, and churches around the world. Owing to its high strength-to-weight ratio—and thus its ability to span great distances—aluminum is frequently chosen as the construction material for domes. Lightweight aluminum

components speed the fabrication and erection of the dome roof. Aluminum can be finished in a variety of ways and is virtually maintenance-free, unlike steel, wood or fabric dome systems.

Combination systems of aluminum extrusions and interlocking panels in various geometric designs offer ample buckling strength and bending stiffness. All-aluminum dome structures can weigh between 3 and 9 pounds per square foot, depending on load conditions, leaving a high percentage of load-carrying capability for live loads.

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D4) Residential Aluminum Products

Doors, windows, roofing, siding, and even framing structures are often made from aluminum—a testament to aluminum’s good looks, low weight, and durability.

Roofs: Roofs are very much affected by weathering and by the influence of pollutants in the atmosphere. Aluminum’s natural corrosion resistance makes it comparable to copper as the most suitable metallic roofing material. It is generally used in the form of flat or profiled sheeting and is easy to erect because of its formability. It can easily be shaped on site.

Windows: Aluminum’s strength, rigidity, durability, and resistance to corrosion, warping, and infestation make it the preferred choice of material—over wood or vinyl—where maximum performance is desired. Today’s aluminum windows are more energy-efficient than ever—as they are typically insulated with a thermal break, which reduces heat loss and condensation.

Siding: In North America, aluminum facades have been popular for residential buildings for decades. Original aluminum siding appeared on houses in the late 1950s—mostly to cover previous materials. Houses with thin wooden clapboard are a likely candidate for low-maintenance siding as well as homes with wide clapboard for those who want to modernize the look of their house.

Doors: Aluminum doors offer low maintenance, top quality, strength, and durability. Some doors have anodized aluminum sills with thermal breaks that resist conduction, frost, and condensation. As with fiberglass and steel doors, aluminum doors typically have a wood frame with insulation filling the voids. The key difference with aluminum doors is that they are almost exclusively manufactured and sold locally on a custom basis to fit a specific door opening.

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Appendix 2 - Aluminum Product Manufacture

Aluminum Processing

Aluminum originates as an oxide called alumina. Because aluminum itself does not occur in nature as a metal, the processing of aluminum took a giant leap forward with the advent of electricity. Deposits of bauxite ore are mined and refined into alumina—one of the feedstocks for aluminum metal. Then alumina and electricity are combined in a cell with a molten electrolyte called cryolite. Direct current electricity is passed from a

consumable carbon anode into the cryolite, splitting the aluminum oxide into molten aluminum metal and carbon-dioxide. The molten aluminum collects at the bottom of the cell and is periodically “tapped” into a crucible and cast into ingots. While continual progress has been made over the more than 120-year history of aluminum processing to reduce the amount of electricity used, there are currently no viable alternatives to the electrometallurgical process. However, between materials recovery and ongoing innovative research and development efforts, the aluminum industry is constantly searching for ways in which energy and costs can be reduced. In the past two decades, the energy efficiency of the production of metal has been improved by about 20 percent.

Metal Supply

The North American aluminum supply is comprised of three basic sources: Primary (domestic production from ore material) Imports (of primary and secondary ingot and mill products) and Recycled (metal recovered from scrap, also known as secondary recovery)

In 2005, the aluminum supply in North America totaled 25 billion pounds, an increase of 6.2 percent over 2004. Just under 50 percent of the aluminum used in North America comes from domestically produced primary aluminum while about 30 percent is derived from recycled materials. The remainder is imported.

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Molten Metal, T-Bar, Sow Almost all aluminum products are produced from molten metal, T-bar, and sow. T-bar and sow are simply the solid form of molten metal. T-bar and sow can be remelted to produce extrusions or cast into ingots or billets, which are then pressed or rolled to form sheet, plate, foil, wire, rod, and bar. Ingots, billets, and extrusions also can be cast or drawn directly from molten metal. Molten metal is produced directly from alumina. Alumina from the refinery is moved to the reduction plant or smelter—long buildings with row after row of reduction cells, or pots, where the pure, white powder is transformed into glistening, molten metal.

Although there are many types of cells, they operate on the same principle. The pots are actually steel boxes of various sizes, generally about 20 feet long, 6 feet wide, and about 3 feet deep, and lined with carbon. The alumina is dissolved in a molten salt called cryolite and aluminum fluoride in the steel pot, and a carbon electrode (anode) is lowered into the solution. Direct electrical current, of between 50,000 and 150,000 amperes, then flows from the anode through the now molten mixture to the carbon cathode lining of the pot. Since each pot requires only about 5 volts, it is customary to connect a hundred or more pots in a series, in rooms 700 feet long or more. Several buildings are often connected in the electrical current to form a single potline. The electric current reduces the alumina molecules into aluminum and oxygen. The oxygen is deposited on the carbon anode, where it combines with the carbon to form carbon-dioxide. The aluminum, which is heavier than the cryolite, settles to the bottom of the pot. The molten aluminum is siphoned into crucibles about once a day, more alumina is added to the pot, and the process continues day and night. At this point, the molten metal can be cast directly into billets and ingots. The molten metal can also be cast into T-bar or sow. Once cast, the T-bar and sow can be transported easily from the smelter to the cast house, where it will be remelted and cast into billet or ingot.

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Appendix 3 - Die Casting Research and Molten Metal Supply

The Aluminum Association of Canada published the Canadian Aluminum Technology Roadmap in 2006 to outline the needs and priorities of the aluminum industry in Canada and prioritize industry research.

Industry experts analyzed thirty-eight opportunities and provided clear and concise summaries for each of them. The following opportunities were found to be particularly relevant: (Note item #17.)

The Aluminum Technology Roadmap held industry discussions in 2006 to set priorities for segments of the aluminum industry. A shape casting workshop was held with leaders of the Canadian casting industry.

“The Shape Casting Workshop has clearly demonstrated that there is a lack of communication among Canadian organizations. As a result, industry players miss excellent opportunities to use readily available equipment, and take part in projects and knowledge sharing initiatives.

Those who took part in the Shape Casting Workshop noted that parts casting businesses could build on Canadian molten metal and transportation infrastructures.

It was also mentioned that most present-day Canadian shape casters are still reactive and not proactive to industry trends. They answer to requests for bids and are at the mercy of their contract givers. They do not have enough resources to turn this situation around and are under increasing pressure to lower their prices. Therefore, they are obviously in need of high performance processes to remain competitive and have neither the time nor the resources to make their niche stand out.

According to specialists, the issues are not technology-based. They insist on the fact that despite the development of quality technical know-how, it is not necessarily put to good use during the development of new applications. Equally important, an inefficient communication system can be held responsible for

Transportation 1. Offer integrated aluminium solutions to OEM manufacturers 2. Develop multi-material solutions 3. Research & Develop alloys with higher strength and heat resistance for diesel engine 4. Research & Develop high formability, low cost, high strength aluminium alloys 5. Design lighter structures for trucks, buses, and recreational vehicles 6. Invent methods to produce larger castings with thinner walls 7. Achieve a significant cost reduction for the various aluminium transformation processes 8. Improve wear resistance, tribology and lubrication of aluminium surface Construction 9. Upgrade aging civilian infrastructures 10. Offer modular structures for easy on-site assembling 11. Offer large extruded shapes 12. Develop integrated design software for aluminium 13. Offer an Aluminium Design Solutions Centre Shape Casting 14. Perform alloy development for semi-solid rheocasting of structural components 15. Develop a ‘‘Best Practice Guide for Shape Casting’’ 16. Offer aluminium Casting Competitiveness Tools 17. Make products from readily available liquid alloys from Canadian primary plants

18. Offer non-competitive process optimisation 19. Improve real-time monitoring of products and processes with advanced sensors and systems 20. Improve and diffuse energy efficiency solutions for foundries 21. Offer larger castings with thinner walls Forming 22. Create an aluminium life cycle cost/benefit body of knowledge 23. Design Aluminium multi-material flat panels 24. Research & Develop aluminium hydroforming 25. Improve process simulation of forming technologies 26. Invent new forming processes suitable to industry needs

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insufficient knowledge sharing, lack of participation in various types of projects and limited accessibility to

specialized equipment.”

Current R&D Projects of the North American Die Casting Association.

The North American Die Casting Association publishes and sponsors research for the die

casting industry in North America. Below is a list of current research project. Note project #136.

Cast Materials

137 Innovative SSM Processing

139 Thin Wall Zinc

144 Zinc Alloy Properties for Market Development Support

152 High Production Rate Process for Metal Matrix Composite Components

153 High Performance Die Casting Alloys

155 Plating and Finishing of Zinc Die Castings-Survey of Next Generation Finishes

158 Casting Alloy Standards

Computer Modeling and Design Aids

132 Mechanical Performance of Dies Continuation

133 Design Support for Tooling Optimization

150 Computational Tool for Short Run Insert Production and Improved Yield

167 Part Model to Casting Model Conversion Software

Die Materials and Die Surface Engineering

131 Evaluation of Die Components Made from the Direct Metal Deposition Process

134 The Development of Smart Die Coatings

135 Improved Die Casting Process to Preserve the Life of the Die Casting Dies

151 Rapid Tooling for Short Run Metal Mold and Increased Productivity

159 High Production Rate Tooling

161 Thermal Fatigue Resistance of High Performance Die Steels

162 Generating Data on Die Distortion During Heat Treatment

Process Technologies

136 Improvements in Efficiency of Melting for Die Casting

146 Die Casting Mechanical Property Improvements through Process Enhancements

149 Reverse Engineering Tools & Productivity Improvements for Spare Part Components

154 Development of a Porosity Guideline for Die Castings

157 HI-MAC (High Intergrity Magnesium Automotive Components)

165 Magnesium Front End R&D

Project #136: Improvements in Efficiency of Melting for Die Casting (Jack Wallace and David Schwam, Case Western Reserve University)

Research Objectives: To improve efficiency of melting and molten metal handling in die casting plants by: 1) developing in-plant monitoring methods and procedures of gas and electrical power use in melting and casting operations; 2) training project team and plant personnel in monitoring energy use and identifying potential improvements; and, 3) conducting energy efficiency surveys of melting and holding furnaces and molten metal handling equipment used in die casting operations.

Authors Note: David Schwam was contacted on the project to inquire about the use of molten metal directly from aluminum smelters to feed die casting operations. He confirmed that this technique was prevalent in the industry and well known. Relevant articles and reports were requested. It is recommended that KTIDS follow up with him on this topic.

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Appendix 4 - Die Casting Target Company Profiles BC Manufacturers Directory

Canadian Autoparts Toyota (CAPTIN) is the only large scale aluminum based foundry and casting operation in British Columbia. They have 278 employees and sales of over $100 million. They export to Japan and the United States.

Canadian Autoparts Toyota Inc.

WHEELS, ALUMI UM, MOTOR VEHICLE 7233 Progress Way Delta BC V4G 1E7 President: Mr. Deryl Sturdevant Phone: (604)-946-5636 Email: Website: - Sales: $105,700,000 Employees: 278 Exports to: United States, Japan Sectors: Transportation equipment and products. Industry: NAICS 336390 ( Other Motor Vehicle Parts Manufacturing )

Products: Wheels (automotive) - aluminum.

Hastings Brass are relatively small with 30 employees. They make castings of all metals and use sand casting techniques for relatively small runs.

Hastings Brass Foundry Ltd.

HASTI GS BRASS IS A ISO 9001-2000 CERTIFIED MA UFACTURE OF

O -FERROUS SA D CASTI GS: HASBRA FIRE FIGHTI G EQUIPME T. 236 Clark Drive Vancouver BC V5L 3H3 Sales Manager: Mr. Robert Worner Phone: (604)-253-2811 Fax: (604)-253-3133 TollFree: 1-800-653-2811 Email: hasbra@telus.net Website: http://www.hastingsbrass.com Sales: - Employees: 30 Exports to: Canada, United States Interested in: Europe Sectors: Machinery and steel fabrication, Marine equipment, Miscellaneous products. Industry: NAICS 332999 ( All Other Miscellaneous Fabricated Metal Product Manufacturing )

Products: Non-ferrous base metals and alloys (incl. basic shapes); Firefighting equipment, n.e.s.; Castings - aluminum; Castings - brass and/or bronze; Castings - non-ferrous; Cnc machining.

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Canada Metal is a die casting company that also manufactures steel dies. They list themselves as a steel foundry predominantly. They have a good export sales base.

Canada Metal (Pacific) Ltd.

CA ADA METAL IS PROUD TO OFFER COMPLETE "TUR -KEY" ALUMI UM A D

ZI C DIECAST SOLUTIO S. WE CA ASSIST YOU WITH DESIG THROUGH TO

CASTI G, MACHI I G, COATI G, ASSEMBLY, A D PACKAGI G. 7733 Progress Way Delta BC V4G 1A3 President: Mr. John Mitchell Phone: (604)-940-2010 Fax: (604)-952-2650 Email: sales@canmet.com Website: http://www.canmet.com Sales: $17,000,000 Employees: 140 Exports to: Australia, France, Japan, China, Great Britain Sectors: Advanced technology and electronics, Communications, Machinery and steel fabrication, Marine equipment, Packaging, Plastics, Transportation equipment and products, Miscellaneous products. Industry: NAICS 331514 ( Steel Foundries )

Products: Castings - metal; Castings - aluminum; Castings - zinc; Cnc machining; Diecasting molds.

Canadian Auto Engine Parts Manufacturers EMAK

Nemak specializes in the production of aluminum cylinder heads, engine blocks and transmission parts, among other aluminum components for automotive applications since it was founded in 1979. Nemak has experienced a steady growth rate thanks to strategic acquisitions, as well as organic growth. With 29 manufacturing facilities located in 13 different countries in Asia, Europe and North & South America, and nearly 15,000 employees worldwide, Nemak is ready to meet the demands of the automotive industry around the world.

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NEMAK CANADA Consisting of two plants located in Essex and Windsor, Ontario, producing cylinder heads and engine blocks for the automotive industry, with a manufacturing capacity of 3.9 million equivalent units per year. Its molding technologies include Gravity, Low Pressure Semi Permanent Mold, and Cosworth, with cubing and super-cubing machining capabilities. Nemak Canada is home to over 900 employees and it hosts a Product Development Center with sophisticated capabilities.

Address - Essex Aluminium Plant 6500 Cantelon Drive Windsor, Ontario Canada N9A 6X8 Phone: +1 519 251 4402 Fax: +1 519 251 4440

Address - Windsor Aluminum Plant 4600 G.N. Booth Drive Windsor, Ontario Canada N9C 4G8 Phone: +1 519 250 2500 Fax: +1 519 250 2526

MO TUPET

MONTUPET works in partnership with many of the major European and American automobile constructors.

The new engines both petrol and diesel are increasingly compact and high performing. The metallurgist is facing an ever increasing challenge. That is why the skill for which we are renowned, particularly in the area of cylinder heads, has allowed us to secure a leading position in both Europe and the United States. Thanks to its many customers, Montupet is collaborating on the majority of engine programmes of the new decade.

Another growth market is that of aluminium alloy wheel rims which personalise the vehicle. The high-tech production site equipment and the expertise of its staff has led to Montupet being one of the biggest European suppliers .

Montupet S.A Specialises in the design and manufacture of aluminium components for the car industry.

202, quai de clichy - BP77 - 92112 Clichy cedex France

tél :(+33) 1.47.56.47.56 - fax :(+33) 1.47.39.77.93

Montupet Limitée, Canada

500, rue Léger Rivière-Beaudette (Québec) J0P 1R0

Tel : (450) 269-2022 General fax : (450) 269-2659

Founded in : 1988, Number of employees : 270 Daily production: 2000

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Car manufacturer

Products Vehicles Fotos

GENERAL MOTORS

Northstar Cylinder heads

All Cadillac references exept catera DTS, STS, SRX, XLR

DAIMLER CHRYSLER

Carter inférieur de vilebrequin (WELF)

Caliber

Distribution of business by client for Monupet worldwide:

Monupet key products :

The wheel rim is often misperceived as a part which is “easy” to manufacture. Q. . A safe yet stylish part, it successfully combines the aesthetic with shock and fatigue resistance !

The Montupet group develops and manufactures a large number of parts for the automobile industry :

Engine blocks

Intake manifold Fuel injection pump housing

Structural parts make up part of the undercarriage of the vehicle.

Braking System Parts: Master Cylinder, Divider, ABS body

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Die Casting Company Profiles (from AFS, NADCA data bases) Company profiles from the internet provide a summary of the capabilities and products made by particular firms. From the profiles, the company size, intensity of aluminum use and customers served can be gauged. Companies with a high degree of aluminum use, large production runs and a relatively small number of products are the best targets. Eight company profiles are detailed below as sample information. All are west coast or Canadian firms.

1. Machine-O-Matic

Machine-O-Matic, a division of Beaver Machine Corporation, has been in the manufacturing business of producing high and low volume aluminium and zinc castings for over 40 years. We offer a full turnkey service, right from design to the assembly of components. Our current casting capabilities in the following alloys are as follows,

Aluminum Permold 160x alloy

• 1 oz. to 60 lb. capacity

• 1/16" to 2" thickness

• 1/4" to 24" width

• cast with brass or steel inserts

• cast with heating elements

Zinc Permold ZA5 alloy

• 1/2 lb. to 40 lb. capacity

• 1/16" to 2" thickness

• up to 18" width

• cast with brass or steel inserts

Contact Info:

Mailing Address: Machine-O-Matic 1341 Kerrisdale Boulevard Newmarket, Ontario L3Y 8Z8

Phone: (800) 265-6772 USA (905) 836-4700 INT'L

Fax: (905) 836-4737

Email: castings@machineomatic.com

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2. Company ame: RIDGE FOU DRY

Address: 1554 Doolittle Dr City: San Leandro State: California Zip Code: 94577 Country: U.S.A. Telephone: (510) 352-0551 Fax: (510) 352-0554 Casting Weight: 0 To 1400 (in LBS) Production Per Year: 80 Ton Products Description: Manufactures gray iron castings; aluminum foundry; malleable iron foundry; nonferrous foundry; steel foundry Iron sand castings, Aluminum sand castings, Magnesium sand castings, Titanium sand castings, Beryllium sand castings, Copper sand castings, Brass sand castings, Bronze sand castings, Zinc sand castings, Tin sand castings

3. Company ame: FREMO T DIE/VA WEY DIE CAST

Address: 1560 Fulton Pl City: Fremont State: California Country: U.S.A. Telephone: (510) 490-8864 Fax: (510) 490-2428

Zinc novelty items, flags, license plate, fridge magnets – small volumes

4. Company ame: KI ETIC DIE CASTI G

Address: 6918 Beck Ave City: North Hollywood State: California Zip Code: 91605 Country: U.S.A. Telephone: (818) 982-9200 Fax: (818) 982-0877 Website: www.kineticdiecasting.com Casting Weight: 0 To 10 (in LBS)

• Die Casting Military Parts, CAGE/NCAGE: 4ZQV3. • Aluminum Diecast Military Aircraft Parts • Die casting aluminum enclosures and aluminum housings look better and are natural EMI

shields. • Die castings Chocolate Fountains as an aluminum heater plate. • Aluminum Lighting Fixture parts. • Aluminum die castings are also Roofing Tilemolds. • Golf Ball Heater in aluminum heat balls. • Other golfing products used to improve your game Golf Product. • Guitar Amplifier Chassis produced in aluminum. • Amplifier parts for guitars. • Hardware Brackets and Aluminum Handle Hardware. • Aluminum Automotive parts are frequently diecasted in aluminum to be lighter in weight

and cost less. • Die casting is used to produce aluminum lighting parts because they look better. • Aluminum Roofing Tile Molds are used by concrete roofing producers.

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• Aluminum Die Casting of aluminum heat sinks save the cost of machining and they look better.

• Aluminum Bracket Part Die-castings use fewer parts and are stronger.

5. Company ame: WREX PRODUCTS I C

Address: 25 Wrex Court City: Chico State: California Zip Code: 95926 Country: U.S.A. Telephone: 1-800-828-3112 Fax: (530) 893-4426 Website: www.wrexproducts.com Casting Weight: 0 To 6 (in LBS) Production Per Year: 1400 Ton

The Wrex Products die casting department converts over 50,000 lbs. of aluminum ingots into product each month. Aluminum and zinc alloy die castings are our forte. With six presses in operation for up to 24 hours a day, your satisfaction and production goals will be achieved.

Wrex Products die cast department ensures quality product cast to exacting tolerance by seasoned craftsmen.

Aluminum or zinc alloy die castings... are an attractive alternative to other materials. By using the natural properties found in these alloys, the extra cost and time required to add their characteristics to other materials can be avoided. We cast these alloys in

weights ranging from 0.01 to 8 lbs.

Many growing companies... that purchase metal components realize the advantages of using a die casting process over forging, fabrication, or sand casting. One clear advantage is 'economies of scale

6. Company ame: CHRYSLER CA ADA - Etobicoke Casting Plant

Address: 15 Browns Line City: Toronto State: Ontario Country: Canada Telephone: (416) 253-2347 Fax: (416) 253-2317 Website: www.chrysler.ca Casting Weight: 0 To 20 (in LBS) Production Per Year: 6000000 Pound Chrysler Etobicoke Casting Plant is a captive Aluminum Casting Facility, producing Automotive Pistons and Transmission Components. Pistons are manufactured with a Permanent Mold Gravity Cast Process and the Transmission Components are cast with a High Pressure Die Casting Process.

As a tour participant, you will witness the raw aluminum as it is melted and conveyed to the casting cells. You will also see the High Pressure Die Casting Cell in operation and observe CAW Local 1459 employees operate trim presses and pack the product for shipping.

In the piston department, watch the process of melting aluminum and the conveyance of the molten material to robotic casting cells. The tour will conclude with the observation of the piston pre-machining process.

7. Company ame: PACIFIC DIE CASTI G CORP

Address: 5712 NW Fruit Valley Rd City: Vancouver State: Washington Country: U.S.A. Telephone: (360) 695-6897 Fax: (360) 695-2440 Website: www.pacdie.com Casting Weight: 0 To 12 (in LBS) Production Per Year: 700 Ton

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Die casting lighting parts

Die cast roof tile molds

Die cast valve covers

Die cast automotive parts

Die cast medical parts

Die cast safe deposit boxes

Die cast military parts

Die cast aerospace parts

Die cast sports and recreation parts

8. Company ame: PIO EER DIECASTERS

Address: 4209 Chevy Chase Dr City: Los Angeles State: California Zip Code: 90039 Country: U.S.A. Telephone: (323) 245-6561 Fax: (818) 500-1870 Website: www.pioneerdiecasters.com Casting Weight: 0 To 8 (in LBS) Production Per Year: 125 Ton

OUR EQUIPME T I CLUDES:

(2) B&T 450 ton Aluminum die casting machines

(1) Reed 250 ton Aluminum die casting machines

(3) B & T 400 ton Zinc die casting machines

(1) B & T 500 ton Zinc die casting machine

Pioneer Diecasters, Inc. is a die casting company that has served local industry since 1949. We die cast zinc and aluminum parts made to customer print specifications, using customer owned dies.

All die casting machines are equipped with Rimrock automatic extractors, and the Aluminum machines are also equipped with Rimrock automatic ladlers. Each machine is connected to its own Kard trim press by conveyor systems. This allows us to produce and ship large quantities of castings in a very short time.

Industry Canada Database Search

A search was performed on the Industry Canada data base on NAICS code 33131 and keywords aluminum casting for all companies in Canada with sales between $5million and $25 million dollars to exclude small firms and the large smelters. There were 17 companies that came up. Deletions were made of companies that require numerous other metals such as steel, copper, magnesium. Aluminum casting companies in Quebec were also not included since they are already close to primary aluminum production. Three companies were identified.

Ramsden Industries Limited

Last Updated: 2008-01-09

Mailing Address 128 Oakland Ave. LONDON, Ontario N5W 4H6

Location Address 128 Oakland Ave. LONDON, Ontario N5W 4H6

Telephone: (519) 451-6720

Fax: (519) 451-0780

Email: ramsden@ramsden.on.ca

Website URL: http://www.ramsden.on.ca

Contact Information

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Bob Ramsden

Title: President

Area of Responsibility: Management Executive

Email: bramsden@ramsden.on.ca

Company Description

Ramsden Industries is comprised of two separate operating divisions. Our ISO9002 aluminum casting plant (Ramsden Manufacturing) produces components for a wide variety of original equipment manufacturers in a diverse range of industries. The pattern and mold making division (Proto Mould) produces wood, metal and plastic patterns as well as molds for the metal casting and plastics industries. We also have limited capabilities for low volume, medium precision machined components. Castings range in size from a few ounces to 150 pounds and in volumes from a hundreds per year to 5000 per week. Industries include: * Truck automotive - engine and transmission components, * Automotive specialty vehicles - Ford GT subframe / suspension castings, * Automotive aftermarket - transmission extensions, * Electrical and electronic, * Recreational vehicles, * Water purification, * Industrial and commercial floor maintenance equipment, * Machine shops, * Construction equipment, * Railway equipment (diesel locomotive),

Country of Ownership: Canada

Year Established: 1946

Exporting: Yes

Quality Certification: ISO 9002

Primary Industry ( AICS): 331313 - Primary Production of Alumina and Aluminum

Primary Business Activity: Manufacturer / Processor / Producer

Total Sales ($CD ): $10,000,000 to $24,999,999

Export Sales ($CD ): $1,000,000 to $4,999,999

umber of Employees: 50

H.E. Vannatter

Last Updated: 2008-06-16

Legal Name: H.E. Vannatter Operating Name: H.E. Vannatter

Mailing Address 102 Arnold St. WALLACEBURG, Ontario

N8A 3P4

Location Address 102 Arnold St. WALLACEBURG, Ontario

N8A 3P4 Telephone: (519) 627-6021 Toll Free Phone: (800) 265-0577 Fax: (519) 627-1374

Email: gcazabon@vannatter.net Website URL: http://www.vannatter.net

Contact Information

Ken Cadotte

Title: Manager

Area of Responsibility: Domestic Sales & Marketing

Telephone: (519) 627-6021

Fax: (519) 627-1374

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Company Description

Received "MARK OF EXCELLENCE" Award from GM in 1992

Country of Ownership: Canada

Year Established: 1956

Exporting: Yes

Primary Industry (NAICS): 331313 - Primary Production of Alumina and Aluminum

Primary Business Activity: Manufacturer / Processor / Producer

Total Sales ($CDN): $25,000,000 to $49,999,999

Export Sales ($CDN): $25,000,000 to $49,999,999

Number of Employees: 350

Burlington Technologies Legal Name: Burlington Technologies Inc.

Operating Name: Burlington Technologies

Mailing Address 3267 Mainway BURLINGTON, Ontario

L7M 1A6

Location Address 3267 Mainway BURLINGTON, Ontario

L7M 1A6 Telephone: (905) 335-2742 Fax: (905) 335-4679 Email: burltech@burltech.com

Website URL: http://www.burltech.com

Contact Information

DON WILKINSON

Title: Vice President

Area of Responsibility: Research/Development/Engineering

Telephone: (905) 335-2742

Email: burltech@burltech.com

Top

Company Description

Country of Ownership: Canada

Year Established: 1965

Exporting: Yes

Primary Industry (NAICS): 336370 - Motor Vehicle Metal Stamping

Primary Business Activity: Manufacturer / Processor / Producer

Total Sales ($CDN): $25,000,000 to $49,999,999

Export Sales ($CDN): $25,000,000 to $49,999,999

Number of Employees: 450

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Appendix 5 - Opportunities to Meet with the Metal Casting Industry Trade Association and Marketing Opportunities

• Identify auto industry, aerospace and metal fabricating trade shows that would provide marketing information and access to companies. There are two major trade shows in North America for the metal casting industry. CastExpo is held every second year and is the largest event with 10,000 attendees, 450 booths and 140 technical presentations. It will be held next in Orlando at the convention centre in March 2010. The Metalcasting Congress is a smaller event with 1700 attendees and 150 booths and is held at the Paris hotel in Las Vegas in April 2009.

Experience the World of Metalcasting at CastExpo'10

Sponsored by the American Foundry Society (AFS) and the North American Die Casting Association (NADCA), CastExpo represents the single largest trade show and exposition in North America for metal casters. CastExpo’10 in Orlando, Florida will continue to be that, but also so much more. In addition to featuring more than 450 companies from across the globe displaying the latest advancements in equipment, technology and services for metalcasting, CastExpo’10 also will unveil a Cast in �orth America Exhibition in which metalcasters (foundries and diecasters) can exhibit their casting capabilities for their customers—casting buyers and designers. To accompany these exhibitions, CastExpo will unveil a show-floor Metalcasting Technology Theater for practical, shop-floor presentations for casting buyers and metalcasters.

To complement the show floor, CastExpo is held in conjunction with the annual Metalcasting Congress, where the latest advancements in metalcasting research and practice is presented every year. At CastExpo’10, the Metalcasting Congress also will take on a new look with new additions to the presentation tracks. For metalcasters, some of the world’s most renowned experts will be invited to give Keynote Presentations covering all facets of metalcasting. In addition, a new track of practical, shop-floor metalcasting presentations will provide attendees with take-home initiatives to improve their operations. For casting buyers and designers, seminars will be held specifically geared toward their needs, focusing on cost-effective casting design, sourcing concerns and the basics of metalcasting.

More than 10,000 attendees are projected to attend CastExpo’10. More than 80% of attendees are management with on-the-spot decision-making power. At CastExpo ’08, more than 8,000 metalcasters and suppliers convened at the Georgia World Congress Center in Atlanta, GA for one of the most successful CastExpo’s in history. As the second CastExpo sponsored by AFS and NADCA, CastExpo'08 featured more than 450 exhibits and 150 technical and management sessions addressing the latest advancements in the metalcasting industry.

Exhibit sales will begin in January 2009.

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Event: 113th Metalcasting Congress

Sponsored by the American Foundry Society and North American Die Casting Association

Location: Paris Las Vegas Las Vegas, Nevada

Setup: Tuesday April 7 Noon 5:00 p.m.

Exhibit Hours: Wednesday April 8 10:00 a.m. - 5:00 p.m.

Thursday April 9 10:00 a.m. - 5:00 p.m.

Expected Attendance: 1,700

Auto Industry Trade Shows - Canada

APMA is Canada's national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry.

The APMA holds a trade show annually with about 100 exhibitors and 800 attendees. It was held in Hamilton. Both MacMaster Univesity, Waterloo and Windsor Universities have automotive research programs that can be of assistance in industry research.