Aluminium Day Celebration

IIF Seminar on ALUMINIUM- THE METAL ON THE ASCENDANCY 16TH April 2011, Chennai

Prof. K.S.S.Murthy, Hon. Gen. Secretary

Aluminium Association of India
No. 118, Ramanashree Arcade, First floor, 18, M.G.Road, Bangalore 560 001 Tel : 080 2558 2197 / 2558 2757, Fax : 080 2559 4535 e-mail : aluminium@eth.net / aai@aluminium-india.org website : http//www:aluminium-india.org

ALUMINIUM Metal of the future

Amongst metals, Aluminium ranks second, next only to steel, in terms of volumes used, due to its versatility, which stems from its excellent properties. It is exceptionally light, has high strength when alloyed, is impervious to rust & possesses a high degree of workability. It is also a good conductor of heat and electricity and has a soft luster, with an aesthetically pleasing appearance. Aluminium is highly recyclable and over 70% of the total metal produced till date, is still in use. The proportion of recycled metal in total aluminum produced is constantly increasing Aluminium is the third most abundant element in the earths crust, after oxygen and silicon. It makes up about 8% by weight, of the Earths solid surface. Aluminium is also considered to be a Green Metal, and the Aluminium Industry is the only industry in the world to claim to become green house gas (GHG) neutral, by the year 2020.

Aluminium solutions for sustainable future

ALUMINIUM GREEN METAL According to the International Aluminium Institute (IAI), global production of new aluminium stock account for 1% of the global human-induced greenhouse gas (GHG) emissions which cause global warming. However, the energy savings that can be made through recycling the metal repeatedly, fuel savings that can be obtained by light-weighting the vehicles and reduction of emissions from vehicles made of aluminium cumulatively have a far greater positive impact on the global environment and climate change. For example, every 100 kg of automotive aluminium replacing other heavier materials saves about 2 tonnes of carbon dioxide over the vehicles lifetime on account of enhanced fuel efficiency ALUMINIUM ENERGY SAVER Recycling is the cornerstone of Aluminiums Sustainability. Aluminium recycling reduces greenhouse gas emissions by 95%, compared to Primary Aluminium production. It only takes 5% of the energy required to produce Primary Aluminium to recycle it. Aluminium is an energy bank most of the original input can be recovered every time the Aluminium product is recycled. Aluminium can be recycled to infinity without any loss of quality or properties. Over 70% of the Aluminium ever produced worldwide is still in use today 450 million tonnes.

Aluminium solutions for sustainable future

Primary aluminium production by country (1950-2007)

Primary aluminium production by country (1950-2007)

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Major producing countries (Source: CRU & Industry data)

Countries 2008 China Russia Canada USA Australia Brazil Norway India Dubai Others 13,695 4,191 3,124 2,658 1,978 1,661 1,383 1,348 899 9,194 % of total 34 10 8 7 5 4 3 3 2 23

Production in 000 t 2014 21,481 3,712 756 1,754 1,727 1,684 1,195 3,958 1026 13,042 % of total 43 7 2 3 3 3 2 8 2 26

Total

40,131

100

50,335

100

Aluminium solutions for sustainable future

Major Consuming Countries ( Source : CRU & Industry data)

Consumption in 000 t 2008 China Russia Canada USA Australia Brazil Norway
12,604 5,147 2,319 1,929 1,459 1,089 951

Countries

% of total
34 14 6 5 4 3 3

2014 22,088 5,505 2,259 2,054 2,030 3,800 869

% of total 44 11 4 4 4 8 2

India
Dubai
Others Total

937
933 10,051 37,419

3
3 24 100

1297
1,198
9,551

3
2 19 100

50,651

Aluminium solutions for sustainable future

Chinese primary aluminium production

Production rate (000t/year)

9,500 9,000 8,500 8,000 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Aluminium solutions for sustainable future

2500 2000
1500

Output

1000
500

Capacity

0
2006 2007 2008 2009-e 2010-e

Aluminium solutions for sustainable future

World : 46.6 million ton CY 09

4% 11%
Others

India : 1.81 million ton FY 10 E

11% 15%

Wire & cable

11%

4% FRPs 33%

37%

11%

23%
Castings 23% Extrusions

29%

26% 29%

Aluminium solutions for sustainable future

Global end-use markets for finished Aluminium products, 2007

Transport Building & Construction Packaging Engineering and Cables Other

15%

27%

21%

13%

24%

Aluminium solutions for sustainable future

RECYCLING
Aluminium can be recycled over and over again without loss of properties. Aluminium recycling benefits present and future generations by conserving natural resources and energy. Recycling saves up to 95 per cent of the energy required for primary aluminium production, thereby avoiding corresponding emissions, including greenhouse gases.

Global aluminium recycling rates are high, approximately 90 per cent for transport and construction applications and about 60 per cent for beverage cans. At the global level, one-third of all aluminium metal entering the market is from recycled material. Recycled material accounted for around 15 million tonnes (IAI estimates). This comprises 7.7 million tonnes returned from customers after fabrication processes and 7.4 million tonnes of product returned from end-ofuse (for example, aluminium content of used motor vehicles and used beverage cans UBCs).The global energy saving is around 215,000 GWh,

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Global Metal Use- 1950, 1980 and 2007

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Most recent forecasts from IAIs Global Aluminium Recycling Committee show growth in recovered scrap from 2010 at approximately 9.5 million tonnes to almost 17 million tonnes in 2020, following the life cycle analysis of the various product groups and taking into account projected collection and recycling rates.

Aluminium solutions for sustainable future

Functioning of Global Aluminium Flow Model with Data Inputs and Annual Outputs

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Sand Casting Shell Moulding and Core Making Centrifugal Casting Investment Casting Plaster Mould Casting Expanded Polyestyrene Casting Technology Permanent Mould Casting (Gravity Die Casting) Low Pressure Die Casting (LPDC) High Pressure Die Casting (HPDC)

Prominent and promising technologies

Squeeze casting Semi-solid forming

Aluminium solutions for sustainable future

Lower temperature and short dwell time lead to longer die life.
Short process cycle and automation results in higher productivity Raw material is heated to semi solid condition, so it consumes 35% less energy than conventional casting methods. Fluid flow filling die cavity under high final pressure enables the filling of thinner sections. Semi-solid charge produces less liquid / solid shrinkage and less micro-porosity Laminar flow of the molten metal when filling the die will avoid the gas entrapment and porosity. Rapid quench in the forging press avoids expensive solution treatment to obtain higher properties. High wall thicknesses and different wall thicknesses can be designed Low gas porosity due to laminar filling and good airing Low solidification porosity due to a high solid fraction proportion (fsolid ~50%) Production of thin walled components Allows for the casting of wide range of alloys inclusive of high strength wrought alloys. Joining by LASER, MIG or WIG welding possible Heat treatment from T0 - T7 possible Near netshape or netshape parts production * Improved tool life

 Wide range of applications: automotive, aerospace, defence and structural applications SSF components: 30-35% increased strength compared to parts processed through conventional casting processes Ability to process high strength wrought alloys Improved mechanical properties and ability to produce thin walls, considerable energy savings and low machining costs

Near net shape manufacturing

Applications of SSM Technology in the Automotive Industry

India is positioned in 6th place with a bauxite resource base of about 770Mt. Almost 85% of these resources consist of the metallurgical grade bauxite, which is used in aluminium production. High quality bauxite ore and low labour and power costs has established India as one of the lowest cost producers of primary aluminium worldwide. Indian companies lie in the least quartile of the global primary aluminium cost curve. Indias primary production capacity at the endMarch 2009 was 1.53Mt, which is an increase from 1.20Mt at the end- March 2008..

Indias remarkably low per capita consumption of 1.6kg offers immense potential for growth in its domestic market.
Indias domestic aluminium consumption tripled between 2002 - 2009 from 0.5Mt to 1.4Mt a CAGR growth of 12%. The industry has been closely following the robust growth in demand by increasing domestic capacity at a CAGR of 10% from 0.75Mt to 1.32Mt in the same period. Domestic production also increased at a CAGR of 11% from 0.6Mt to 1.5Mt. Between 2009 and 2014, however, demand is expected to grow at a CAGR 9.5% to 2Mt driven by the automotive and construction sectors, which are each likely to grow at a CAGR of 10% during the same period.

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Indian Aluminium Industry consists of primary integrated producers (who procure Bauxite and process into aluminium) and secondary fabrication units (who convert aluminium ingots into rolled and extruded products). The Three major producers are: Hindalco, Vedanta Group and the state owned Nalco, who mine / procure bauxite and convert it into Aluminium ingots These three together account for the majority of share of total domestic aluminium production in India

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APPLICATIONS SECTORS
Aluminium is a key component of so many aspects of our life from the buildings we work in, to the cars we drive, from the cans we drink out of, to the flights we take. Its unique combination of properties make it ideal for an almost endless range of applications, and an essential part of modern day life. ===========================================================================

Building & Construction

The Building and Construction industry is today faced with many environmental challenges - its impact on climate change, to its choice of materials and methods of waste disposal. Aluminium is one of the most abundant metals in the world, Aluminiums formability, high strength-to-weight ratio, corrosion resistance, and ease of recycling makes it the ideal material for a wide range of building applications such as form-work, curtain-walling, doors and windows. The global inventory of aluminium in use has grown from 90 million tonnes in 1970 to about 600 million tonnes today and is forecast to reach more than 1 billion tonnes in 2020. This is creating a vast material and energy storage bank for future recycling use. The building sector is forecasted to represent up to 35%, transport 28% and engineering plus cable 27% of the 2020 inventory in use.

Aluminium solutions for sustainable future

Packaging
Aluminium, the ideal material for Packaging has made significant inroads into the packaging sector, and is already a well established packaging raw material in the western world. Aluminium is used extensively for the protection, storage and preparation of food and beverages as well as medicines and cosmetics. The key geographical areas for growth in packaging, are the developing countries. Aluminium foil has excellent barrier properties which keeps out air & moisture and makes it superior to paper packaging.

Aluminium solutions for sustainable future

Power
The Electrical sector is still a major consuming sector for Aluminium, in India. Aluminium or Aluminium alloy electrical conductors are widely used in overhead electrical transmission and distribution cables, power systems and substations . Aluminium is particularly well suited to these uses because of its high electrical conductivity, low weight and good resistance to corrosion..

There are really only a few application sectors where aluminium is not used. Use is expected to grow as its properties are especially appreciated by designers, architects and engineers as well as by the manufacturers and end users of the product.

Aluminium solutions for sustainable future

Transportation
This is one of the most important application sectors for Aluminium, both in terms of current volumes and growth prospects. The combination of lightweight, strength and formability characteristics of Aluminium, make it the ideal material for transport applications, such as aerospace, automotive & marine. Currently, Europe is using approx 140kg of Aluminium /car, which is expected to increase to 160 kg/car in the next 2-3 years.

The automobile industry is the biggest consumer of aluminium on the global market, and approx. 21% of primary aluminium is used here. (Source: CRU Photo: Audi.com)

Aluminium solutions for sustainable future

Indian Automobile Industry-High Growth in all Segments

30,000-33,500

22,100

In '000 units

8,700 - 9700 5,100 2,200 1,100-1,220 150 670 470-530 120 360 540-600 200 390

10,230

940-1,050 420 710

170-190 100 40

Passenger vehicles

SCVs

LCVs

M&HCVs

Two & Three wheelers

Tractors

Construction equipments*

2009

2015 (E)

2020 (E)

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Aluminium Applications in the Automotive Industry are Growing

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Aluminium solutions for sustainable future

Aluminium helps light weighting Cars

1400 1200 1000 weight [kg] 800 600 400 200 0 Ref.- Car Primary state- Primary latestof-the-art technology weight weight Upper final weight (Al-Car) Lower final weight (Al-Car)
Primary state-ofthe-art weight 1229 reduction Minimum secondary weight saving

Maximum secondary weight saving

1003

Primary latesttechnology weight reduction

928

887

785

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CO2 Reduction Potential in Transport with Aluminum

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Aluminium solutions for sustainable future

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GDP Growth
Primary Aluminium consumption in India has grown from 450 kt in 1991, to 1,140 kt in 2008 and currently accounts for 3.1 % of global consumption. Total Aluminium consumption (Primary + Recycled) has grown significantly, at a CAGR of around 15% during 2002-09 and reached 1.5 million tonnes. As per Mckinsey & Co., Indian Aluminium use will grow 9 to 11 per cent to 2.10 to 2.75 million tonnes, by 2015. As per Mckinsey & Co.,the growth drivers of the Indian economy are as follows: Indian incomes will triple over next two decades India will emerge as the fifth largest consumer economy. A large urban middle class will develop, but the rural sector will benefit too Patterns of consumption will shift rapidly, towards discretionary spending. The Aluminum consumption follows the GDP growth curve, hence these would also be growth drivers for the consumption of Aluminium
India GDP v/s Al cons. Per capita
800 GDP per capita(LHS) 700 600 500 0.8 400 0.6 300 200 100 0 0.4 0.2 0 Per capita Al cons (RHS) 1.2 1 1.4

2001

2002

1990

1995

2000

2003

2004

2005

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2006

INDIA TO AUGMENT ALUMINIUM PRODUCTION

Aluminum industry in India is moving towards overcapacity, since supply is likely to grow in excess of demand going forward. Considering that all aluminum projects would begin commercial production with expanded capacity as planned, there could be at least 2 million tonnes of additional capacity for exports by 2013. Fitch Ratings report recently said that Indias aluminum productions will more than treble to 4.4 Million tonnes by mid 2012 with new capacities coming on stream, along with requisite captive Power generation capacities. Aluminum meter production in million tonnes
Company Hindalco Industries Nalco Vedanta Resources Others 2009 0.488 0.403 0.638 0.200 2013 1.138 1.000 2.000 0.300

Aluminium solutions for sustainable future

All major producers have chalked out future mega expansion plans
Project Cost Company Hindalco Location Orissa Orissa 100 Aluminium (kt) Alumina (kt) 1500 (USD Amt Million)

Madhya Pradesh
Jharkhand Orissa Vedanta Orissa Chattisgarh Jindal Ashapura Nalco Orissa Andhra Pradesh Secondary producers Total Andhra Pradesh

360
360 360 1750 325 250 1500 1000 735 1400 1400 1500 3500

7029.877

9666.081 1977.153 768.893 5052.724 1537.786 219.684

4240

11800

26252.197

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CONCLUSIONS
The world is changing, competition reigns, and natural selection has been refining and perfecting business globally. Against this background, successful aluminum companies have been adapting their respective structures to address new market realities, improving management and production and devising optimum strategies. The aluminum business shows dynamic development, and the outlook for the metal as a structural material is bright. It is indispensable both for achieving higher standards of living and for supporting solutions to such crucial global issues as energy and material savings and ecological safety.

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SIXTH INTERNATIONAL CONFERENCE ON ALUMINIUM

The Sixth International Conference on Aluminium INCAL 11 is being organized by the AAI, to bring the international aluminium fraternity together on one platform where the current issues will be discussed and ideas will be exchanged on the growth and development of aluminium

WHEN 6th to 8th December 2011 WHERE

Hyderabad International Convention Centre, (HICC) Hyderabad. India's first purpose - built and state At of -the- art convention facility with In-house 5-star banqueting service, connected to Novotel Hyderabad Convention Centre. HICC is the winner of the Best Convention Centre National Tourism Award by Incredible India

Exhibition
In conjunction with this globally important conference INCAL 11, an Exhibition is being organized alongside the Conference. The exhibition will focus on the state-ofthe-art technologies, showcasing new technologies, processes & products and in turn enhance business. The exposition will be open to delegates and other industry professionals.

INCAL-2011 is also being organized under the aegis of Ministry of Mines, Government of India, which has been a practice since the first Conference held in 1985

Honble Minister of State of Mines is the CHIEF PATRON Secretary Ministry of Mines is the PATRON, Additional Secretary, Ministry of Mines, Director Aluminium, Ministry of Mines & Jt.Secretary Ministry of Mines as the Members.

Besides Primary Producers and Downstream industries over 25 leading overseas and domestic companies have already confirmed their participation at INCAL 2011- ie., International Aluminium Institute, European Aluminium Association, The Aluminium Association, Rio Tinto Alcan, ALCOA, Novelis, Aura International Private Limited, CSIRO, CRU, Fluorosis Research & Rural Development Foundation,, Alstom etc.

WHY SHOULD YOU ATTEND

To witness a congregation of some of the best experts in the global aluminium industry from among primary metal producers, secondary producers ie.,extruders, fabricators, foil & can manufactuers, etc., researchers, academicians, and end-users, To get an insight into the latest developments & data on Market Trends / Applications, Process Technologies, R&D, Equipment and Environment, techno economic issues to help the Indian Aluminium Industry to effectively meet the global challenges and competition, technological developments and on various applications of aluminium, all of which are significant to India, which is on the threshold of becoming a prominent global player. To understand the growth pattern and emerging trends

To interact and network with the stakeholders and policy makers of future market.

TYPES OF PRESENTATION

INCAL 11 will focus on High Quality Papers ( all Invited), with the Exposition serving Product, Technology, 1. Equipment & Information suppliers presenting themselves to Indias Aluminium producers.
2.

General /Visionary:

Plenary & Parallel sessions

Plenary- Pre Lunch Session:

9.30 am 1:00 pm 30 min Presentation + 10 min Q & A Total 12 papers in 3 days

3.

Technology Process and Equipments: Marketing and Applications: Recycling :

4.

Two Parallel Sessions-Post Lunch:2.00 pm 5.30pm

5.

R&D:

25 min Presentation + 5 min Q & A Total 44 papers in 3 days

6.

Environment & Energy :

Inauguration & Panel Discussion - Ideas to be firmed

up

Utilize

Hall 3 of Hyderabad Convention Centre

Have

2000 sq mts of display stall space facility for one to one discussions planned in the Exposition area

Provide

Cafeteria

FOR FURTHER DETAILS PLEASE CONTACT

INCAL-2011 SECRETARIAT
Aluminium Association of India
Ramanashree Arcade, # 118, First Floor, 18, M.G.Road, Bangalore 560 001 Ph : 91-080-2558 2197/2558 2757 Fax : 91-080-2559 4535

E-mail : aluminium@eth.net/ aai@aluminium-india.org Website : http://www.aluminium-india.org