Novelis Innovation Olympics

IDEAS AND INSIGHTS

APRIL 28 , 2016
TH

Sandeep Ayyar, Hsiao-Tieh Hsu, Callisto MacIsaac

Siu Ping Ngok, Matthijs van den Berg
 Other
Metal
Production
Novelis,
The Market
Company

Ideas &
Insights
Other Metal Production
Process
ALUMINUM
T I TA N I U M
STEEL
 Other Metal Production Process
Aluminum Titanium Steel
Molecular weight 26.98 47.87 < 55.8 (Fe)
Density (r.t.) 2.7 g/cm3 4.56 g/cm3 7.75 – 8.05 g/cm3
Molar heat capacity 24.2 J/(molŸK) 25.1 J/(molŸK) ~ 26 J/(molŸK)

Melting point 660°C 1668°C ~ 1370°C

Crystal Structure FCC HCP BCC/FCC
Abundance in Earth 82,000 ppm 6,200 ppm 63,000 ppm (Fe)
Crust
2014 US production 1,710,000 92,800 88,200,000
(metric tons)
Market Beverage cans, Aerospace, marine, Construction,
automobile, consumer, medical cores, consumer,
specialties automobile
Titanium Milling Process
Titanium Sponge
Isothermo forging
•  315-480°C
Ingot •  Requires little to no machining

Vacuum Annealing/Straightening
Forging
•  Relieve residual stresses from previous hot-
work operations
Rolling
Polishing
•  Heat under pressure to alleviate hydrogen
Vacuum Annealing/
Straightening “pick up” on exposed surfaces
•  649°C – 788°C
Polishing/Ultrasonic
Flaw Detection

Packing
 Steel Milling Process

Continuous
Casting

•  More energy- and time-

efficient, higher yield
•  Drawbacks:
“breakouts”, carbon boil

*Minimill
•  Can be easily started and stopped -> follow market demand for
products
•  Cleanest & most energy efficient
•  Ladle Furnace: precision control of chemistry
The Aluminum Market
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Global Aluminum
•  1/3 from recycling consumer and
manufacturing scrap Global Production
(%, 2005)
•  2/3 from bauxite feedstock China (45)

•  Major Producers: China, Russia, Russia (9)

Canada, US
Canada (6)
•  Aluminum is significantly
strengthened by heat/work USA
treatments and alloying
Australia

•  Grades mostly as: Ingots, foil, or

die-cast
•  Flat-roll products are about half
of Al products shipped in the
US (11 bil lbs in 2014)
9

Market Predictions
•  Demand and margins falling in
Novelis’ canstock core business

•  Profitability boosts from

automotive sales:
•  Higher margins, increasing
demand in the US and Europe
•  Aluminium replacing steel in
car bodies may be slowed by
the cost of retooling production
lines, higher Al premiums over
steel

•  Novelis targets 25% automotive

shipments by FY2020*

*Philip Martins, Pres. 2015 Conference Call

Novelis Nachterstedt
Recycling Center
THE WORLD’S LARGEST
ALUMINUM RECYCLING
CENTER
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80% Aluminum recycled content by 2020

•  Processes 400,000t aluminum scrap / year

•  Primarily serving automotive and can markets

•  Dedicated automotive aluminum sheet
production line opened November 2015

•  Closed-loop recycling system

•  Minimum input of aluminum
from minerals
•  Minimum output to landfill
•  Waste heat converted to
electricity on-site
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Aluminum processing at Nachterstedt Recycling Center

•  Shredding scrap mix (up to 18 types)
•  X-ray sorter to separate aluminum
•  Based on XRF

•  Casting double-length ingots:

•  12 m long, 25t / ingot

•  Regenerative burners for melting furnaces

•  Generate electrical energy through Organic
Rankine Cycle

•  Transported out by train

•  Hot rolling facilities in Norf (DE) and Sierre (CH)
•  Cold-rolling facilities on-site
Ideas & Insights
Drivers of Technological Advancements
Cost
§  Efficiency & Safety
§  Quality & Reliability
§  Utilization & Capacity

Differentiation
§  Competitive Advantage
§  Rivals, New Entrants
§  Brand
§  New & Existing Users

Policy and Environmental

§  Geopolitical Factors
§  Environmental Concerns
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‘Inventing’ Aluminum Strip Heating Technologies

Introduce new/alternative Modify existing technology

technology §  Heat Generation
§  Electric magnetic pulsing §  Heat Transfer
§  www.ncbi.nlm.nih.gov/pubmed/26853460
§  Heat Containment
§  Near infra-red radiation
§  www.ncbi.nlm.nih.gov/pubmed/26601148 §  Waste Heat Recovery
§  Microwave assisted heating
§  www.ncbi.nlm.nih.gov/pubmed/26165508hwua
New Heating Technologies
1.  DFI- Direct Flame Impingement

-  New oxyfuel based technology (The Linde

Group)
-  10X higher heat transfer than conventional
fuel-fired furnaces
-  Capacity é 50%, cost ê 50%
-  Applied in steel industry and can é capacity
by 30%
-  Pilot study on applicability on other metals
New Heating Technologies
2. Transverse Flux Induction Heating

•  Employed by the Fives Group

•  Heating steel strips beyond the Curie point (760°C)
•  High efficiency rate (>70%)
•  Metal strips passed between pairs of induction windings
•  Applicability: carbon steel and aluminum
Q&A
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