IWCC Joint Meeting 2008, Vienna

Page 1
 Presentation

Transformer Market
&
Copper Conductors

IWCC Joint Meeting 2008, Vienna

Page 2
 Agenda

Global Economies – Key indicators

Market drivers for Transmission
investments

Projected growth of Transformer and
Generators leading to higher
consumption of Copper

Usage of Copper Conductors in
Transformers and Generators

IWCC Joint Meeting 2008, Vienna

Page 3
 Copper Products in Transformers

CTC

Glass Yarn PICC

IWCC Joint Meeting 2008, Vienna

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 Copper Products in Transformers

CTC for Traction Transformers CTC for several applications

LV, HV Windings

Netting Tape CTC for LV Cooling Duct CTC for Industrial

windings of GSU Transformers Transformers

IWCC Joint Meeting 2008, Vienna

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 Copper Products in Transformers

Transformer Windings

IWCC Joint Meeting 2008, Vienna

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 Copper Products in Transformers
Transformers with ASTA Inside

IWCC Joint Meeting 2008, Vienna

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 Copper Products in Power
Generation Equipment
Roebel bar for Power Generators

IWCC Joint Meeting 2008, Vienna

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 Copper Products in Power
Generation Equipment
Generators with ASTA Inside (China 3 Gorges Project)

IWCC Joint Meeting 2008, Vienna

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 Agenda

Global Economies – Key indicators

Market drivers for Transmission
investments

Projected growth of Transformer and
Generators leading to higher
consumption of Copper

Usage of Copper Conductors in
Transformers and Generators

IWCC Joint Meeting 2008, Vienna

Page 10
 Energy Sector Market Growth

Energy Market Bn Euro TRENDS & MARKET DRIVERS

pa

Demographic change,
11% population growth and
70 urbanization

Environmental awareness
58

Fuel diversification

Capacity addition
260
186

Replacement in mature
markets

Distributed Generation
2007 2010 (Est) (Smart Grids)
IWCC Joint Meeting 2008, Vienna
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 Global Economy – Key Indicators
China
Vie tnam
India
Asia (e x Japan)
Indone sia
M alaysia
Ase an
Thailand
Philippine s
Hong Kong
Singapore
NIEs
Kore a
Taiwan
Asia
Japan

0.0 2005 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 % 10.0
Regional Economic Overview: GDP Growth
Source: Focus Economics

IWCC Joint Meeting 2008, Vienna

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 Mega Trends in the Market

Mega trends
Population Growth

Urbanization
Increased Living Standards
Ageing Infrastructure
Regionally New Demand
Fossil Fuel Scarcity
Primary Energy Cost Increase
Growing Electricity Demand
Replacement & Renewal Demand
Higher Energy & Material
Efficiency
Urban & Environmental Suitability

Environmental Protection Volume Increase

Innovation
IWCC Joint Meeting 2008, Vienna
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 Investments In Energy Infrastructure (2005-2030)

Highest level of investment in Electricity

infrastructure in next decade – 11 TUSD in
next 25 yrs.

Investments in Power Transmission and
Generation should gain prominence in next
decade.

Investment in Power is going to be spent
on maintenance and replacement of
existing capacity in Developed world and
addition of new facilities in Developing
world.
IWCC Joint Meeting 2008, Vienna
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 World Generation Capacity 2003-’30
Gigawatts
Region / History Projections CAGR
Country 2007 2010 2015 2020 2025 2030 (% )

N America 1130 1200 1220 1280 1370 1483 1.1%

Europe &
1978 1304 1353 1426 1488 1553 1.1%
Eurasia
Asia &
1177 1487 1696 1897 2112 2369 3.1%
Oceania
Middle
175 237 251 261 269 276 3.0%
East
Africa 127 156 170 181 194 210 2.5%
C&S
223 271 319 369 417 460 3.1%
America
Total
4810 4655 5009 5414 5850 6351 2.0%
World
Source: OECD
IWCC Joint Meeting 2008, Vienna
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 World Electricity Generation (Projection)

(Gigawatts)
7000

6000

5000
Oil
4000 Nuclear
Renewable
3000
Natural Gas
Coal
2000

1000

0
2000 2010 2015 2020 2025 2030
Source: OECD
IWCC Joint Meeting 2008, Vienna
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 Annual Growth In Electricity Generation

N America 1.5
Europe 0.8
Asia
1.4
Europe / Eurasia
2.3
China 4.4
India 3.9
Other Asia 3.8
Middle East 2.9
Africa 3.5
C & S America 2.9

0 1 2 3 4 5
AVERAGE ANNUAL PERCENTAGE CHANGE
Source: EIA (2000 – 2030)
IWCC Joint Meeting 2008, Vienna
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 World Net Electricity Consumption (Proj)
(Billion KWH)

35000 30116
27133
30000 24371
21699
25000 19045

20000

15000

10000

5000

0
2010 2015 2020 2025 2030
Source: OECD
IWCC Joint Meeting 2008, Vienna
Page 18
 Agenda

Global Economies – Key indicators

Market drivers for Transmission
investments

Projected growth of Transformer and
Generators leading to higher
consumption of Copper

Usage of Copper Conductors in
Transformers and Generators

IWCC Joint Meeting 2008, Vienna

Page 19
 Market Drivers for Transmission
Investments – NA & EU

Rising Electricity Demand (1.5% annually from

2000-2030)

Inadequate Cross-Border Transmission Capacity
Desire for Greater Market Integration
Eastward Expansion to Accession Countries

Need to facilitate Integration of Renewable
Sources

Replacement Markets

IWCC Joint Meeting 2008, Vienna

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 Market Drivers for Transmission
Investments - Brazil

Mixed Progress on Electricity Reform
Distribution Mostly Privatized in 2002
Looming Shortages due to Lack of
Investments

Lula’s “New Model” to Increase Capacity
3,500 MW Build Out Needed Annually
Up to $6B/year Investment Expected

Priority Placed on Biomass Cogeneration
Up to 2,000 MW to Contracted in 6 months
Urgent Transmission Build Out Needed
IWCC Joint Meeting 2008, Vienna
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 Market Drivers for Transmission
Investments - Russia

Infrastructure neglected for more than 40 Years

Government to Invest $7B/year for Transmission

Wholesale Electricity Sector to open fully in 2011

New Laws require Private Capital to meet
growing Thermal Sector needs
Siberian Hydro-capacity Expansion
New Transmission from Distant Suppliers
Required

IWCC Joint Meeting 2008, Vienna

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 Market Drivers for Transmission
Investments - India

Electricity Act 2003
Power Sector Reform : Improvement in
operational efficiencies by Utilities
Target for “power for all” by 2012

Frost & Sullivan: Revenues - $5.3 BINR in 2012.

Reforms and enlargement of the power distribution
network under India’s APDRP is driving the growth
and strengthening of sub-transmission lines.

Increase in transmission grid reliability and Voltage
levels will result in heightened demand for power
transformers.
IWCC Joint Meeting 2008, Vienna
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 Market Drivers for Transmission
Investments - China
Growing Demand for Electricity in China to Boost
Power and Distribution Transformer Markets

Exceeding the global growth rate of 3.0 percent, the

installed power generation capacity of China is
growing at an annual rate of 8.0 %.

The sudden boost in demand for power generation
in turn increases the need for transformers.

Also, China’s accession to the World Trade
Organization (WTO) and the exceptional
performance of the manufacturing sector has
fuelled the increase in the consumption of power by
both urban and rural sectors.
IWCC Joint Meeting 2008, Vienna
Page 24
 Agenda

Global Economies – Key indicators

Market drivers for Transmission
investments

Projected growth of Transformer and
Generators leading to higher
consumption of Copper

Usage of Copper Conductors in
Transformers and Generators

IWCC Joint Meeting 2008, Vienna

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 Energy Distribution Network

Generator
Xm
Transformer
Monitoring
HVDC Shunt System for
reactor all voltage
System levels
interconnecting
FACTS Xm

Converter Furnace Transformer

Xm Xm Life
Management
System Program
transformer

Oil-immersed Voltage GEAFOL Traction

distribution Xm regulator cast-resin Xm Xm

IWCC Joint Meeting 2008, Vienna

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 World Current Market Potential for
Transformers
(US $ M)
Latent Demand,
Region US $ M % of Globe
Asia $7.901 32.04%
Europe $6.236 25.29%
North America & the
Caribbean $6.232 25.27%
Latin America $2.011 8.15%
Middle East $1.004 4.07%
Africa $0.968 3.93%
Oceania $0.310 1.26%
Total $24.662 100.00%
IWCC Joint Meeting 2008, Vienna
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 World Current Market Potential for
Transformers

WORLD MARKET FOR TRANSFORMERS

1%
4% 4%
8%
33% Asia

Europe

North America &

the Caribbean
25% Latin America

Middle East
25% Africa

Oceania
IWCC Joint Meeting 2008, Vienna
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 Power Transformer Market (MVA)
Region 2005 2006 2007 2008 2009 2010 CAGR
Western Europe 224925 251975 253517 256408 252358 253525 2.01%
Eastern Europe 33180 42230 44270 44230 47280 43060 4.44%
Former USSR 60150 71630 83100 99540 102580 121930 12.50%
Africa 50833 51178 58645 61056 69256 71890 8.7%
Middle East 58430 87200 109660 106780 116570 122090 13.07%
South Asia 45910 85800 66170 107240 124670 113790 16.33%
Far East 644450 707190 684030 684910 686450 696630 1.31%
South America 47230 52980 57910 61980 67650 69000 6.52%
C America&Carr. 6460 8250 14290 12990 15250 14880 14.92%
North America 303517 334458 369267 374633 409300 418650 5.51%
Oceania 11270 12480 13050 10690 11170 11310 0.06%

TOTAL 1,486,355 1,705,371 1,753,908 1,820,457 1,902,534 1,936,754 4.51%

Source : Golden Reports

IWCC Joint Meeting 2008, Vienna
Page 29
 Agenda

Global Economies – Key indicators

Market drivers for Transmission
investments

Projected growth of Transformer and
Generators leading to higher
consumption of Copper

Usage of Copper Conductors in
Transformers and Generators

IWCC Joint Meeting 2008, Vienna

Page 30
 Copper Consumption in Transformers

Estimated Demand
Product
2008 [MT]
CTC + PICC + Enamel +
312,000
Paper*
Transformers (Traction &
7,000
Cast Rasin) Flat
Round Wires (Paper +
350,000
Enamel)
Copper Foils 200,000
TOTAL 869,000
IWCC Joint Meeting 2008, Vienna
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 Major Power Transformer OEMs

Major ones considered

IWCC Joint Meeting 2008, Vienna

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 Metrod’s Global Presence

USA Austria China

India Malaysia

IWCC Joint Meeting 2008, Vienna

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 Metrod Flat Products, MALAYSIA

 New 100% owned subsidiary -Metrod Flat Products Sdn. Bhd.

formed in 2007 to focus on strip business
 The new company has started its operation in April 2007.

IWCC Joint Meeting 2008, Vienna

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 ASTA AUSTRIA
 Located at Oed, outskirt of Vienna in Austria.
 One of the world’s largest manufacturers of CTCs for transformer
industry and Roebel bar for generator industry.
 Pioneering work in the field of development of CTC technology
 Annual capacity of 21000 Mt out of which 14300 MT is for CTC
 100% subsidiary of Metrod Malaysia
 1814 Foundation “Metallfabrik OED” (Matthäus von Rosthorn)

IWCC Joint Meeting 2008, Vienna

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 ASTA CHINA
 Located 400 Km north-west of Shanghai
 Manufacturer of Continuously Transposed
Conductors for transformer industry.
 Annual capacity is being upgraded to 7000 Mt.
 100% subsidiary of Metrod Malaysia

IWCC Joint Meeting 2008, Vienna

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 ASTA USA
 Located at Waynesboro, State of Georgia, USA.
 Manufacturer of Continuously transposed
conductors for transformer industry.
 Annual capacity is being created for 4500 Mt.
 100% subsidiary of Metrod Malaysia.
 Production to start from Q1 2009.

IWCC Joint Meeting 2008, Vienna

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 ASTA INDIA

 Located at Savli, Vadodara, India.

 Green field project.
 Manufacturer of Continuously Transposed
Conductors for transformer industry.
 Annual capacity is being created for 4500 Mt.
 100% subsidiary of Metrod Malaysia.
 Construction of building started.
 Production to start from Q1 2009.

IWCC Joint Meeting 2008, Vienna

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 Thank you

IWCC Joint Meeting 2008, Vienna

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