Umicore in South America

Transcription

1 Umicore in South America Franz-Josef Kron, Senior Vice-President South America Stephan Blumrich, Vice President Automotive Catalysts Brazil Bank of America Merrill Lynch South American investor field trip São Paulo, 17 May 2011

2 Overview History of Umicore s operations in South America Umicore s footprint in South America Umicore s business in South America Focus on Umicore s automotive catalysts business in South America 2

3 History of Umicore s operations in South America 50s 60s 70s 80s 90s 00s 1953 Brazil Degussa (PMG) activities started 1973 Guarulhos Degussa (PMG) competitor take- over 1981 São Paulo SGM Brazil starts (UMS) 1991 Americana Autocat plant 2000 Brazil/Argentina dmc 2 /Cerdec spin-off 1973 Manaus Acquisition plant 1985 Buenos Aires Degussa (PMG) 1992 Americana Autocat tech centre 2001 Brazil/Argentina PMG acquisition by OMG Inc 1973 Americana Acquisition plot 1979 Americana Degussa industrial plant glaze system 1986 Americana 1998 Americana Cerdec stains, Autocat expansion Degussa quab plant, Barlocher plastic stabilizers 2001 Guarulhos Technical Materials TMA activities 2003 Callao (IEQSA) Acquisition of 40% stake by Umicore 2003 Brazil/Argentina PMG acquisition by Umicore 2008 Pilar New PMC factory (incl. APIs) 3

4 Umicore s footprint in South-America 1,059 people* & 5 production sites Callao Peru (# 419) Zn-based building products & powders production Site of associate IEQSA (part of BU BP) Pilar Argentina # 40 API production Serving BU PMC South America represents 8% of workforce* Manaus Brazil # 106 PM-based products manufacturing Serving Bus PMC, TM, PEM, EP, PMR, JIM & TFP Americana Brazil # 108 Autocat production Serving BU AC AC PMC TFP TM PEM EP BP PMR JIM Automotive Catalysts Precious Metals Chemistry Thin Film Products Technical Materials Platinum Engineered Materials Electroplating Building Products Precious Metals refining Jewellery & Industrial Metals *Headcount based on 31/12/2010 Guarulhos Brazil # 381 Regional headquarters PM-based products manufacturing Recycling service??? Serving BU PMC, TM, PEM, EP, PMR, JIM & TFP 4

5 Umicore s footprint in South-America Guarulhos, Brazil Guarulhos (10 km from São Paulo) Plot: 26,572m 2 Constructed area: 19,059m 2 History Acquired in 1973 by Degussa Acquired in 2003 by Umicore with PMG acquisition Continuously expanded through the years Operations of 7 Business units Regional headquarters Capturing and leveraging industrial & administrative synergies 5

6 Umicore s footprint in South-America Manaus, Brazil Manaus (in Amazonas) Plot: 12,315m 2 Constructed area: 4,366m 2 History Acquired in 1973 by Degussa Acquired in 2003 by Umicore with PMG acquisition Operations of 7 Business units 6

7 Umicore s footprint in South-America Americana, Brazil Americana (130 km from São Paulo) Plot: 249,000m 2 m 2 Construction: 10,000m 2 History Start up in 1991 Pioneer in automotive catalyst technology and manufacturing in South America Tech Center start up in 1992 Expansion in 1999 Acquired in 2003 by Umicore with PMG acquisition Tech Center expansion in

8 Umicore s footprint in South-America Pilar, Argentina Pilar (40km from Buenos Aires) Plot: 10,000m 2 Construction: 3,250m 2 History Start up in 2008 Precious Metals Chemistry operation Integrated operations of the BU Focus on APIs (Active Pharmaceutical Ingredients) 8

9 Umicore s business in South America Energy Materials Building Products Performance Materials Thin Film Products Electroplating Electro- Optic Materials Zinc Chemicals Technical Materials Cobalt & Specialty Materials Platinum Engineered Materials Precious Metals Refining Precious Metals Management South America represents 7% of turnover* Precious Metals Chemistry Recycling Jewellery & Industrial Metals Battery Recycling Automotive Catalysts Catalysis * 2010 turnover by destination, excluding Precious Metals Management 9

10 Umicore s business in South America The South American market Constant economic growth around 4 % (4,5 % for Brazil), with high domestic demand Brazil continues to be the economic engine in South America Foreign investments high in all industrial sectors Automotive Industry announced investments of 14bn for the next 5 years Significant improvement of economic situation of the poorer part of the population, with low unemployment rates, resulting in increased purchase power Risks: Inflation and exchange rate, lack of qualified people South America today represents some 7% of Umicore s external turnover (excluding PMM) Umicore invested ~10M per year in last 4 years Investment intensity expected to increase significantly in coming years 10

11 Umicore s business in South America Thin Film Products Activities Production of silver targets used in optical data storage (CD, CDR, DVD) Offering a closed loop business (recycling services) (typically only 30% of a target is used) Located in Guarulhos & Manaus, Brazil Market position Serving the domestic market Market leader in the region 11

12 Umicore s business in South America Precious Metals Refining Activities Gold refining and recycling services Production of investor bars Sampling of low grade material like spent automotive and industrial catalysts, activated carbon, e-scrap etc., prior to shipment to Hoboken plant, Belgium Located in Guarulhos & Manaus, Brazil Market position Customer base: gold mines, jewelries, chemical and electronics industry, scrap collectors/dealers Market leader in gold refining in Brazil Leading position in low grade materials collection of processing in Hoboken 12

13 Umicore s business in South America Automotive Catalysts Activities Production of three way catalyst (TWC) for all fuels (flex Fuel systems) Production of Diesel Oxidation Catalysts for diesel engines HDD catalyst technologies under implementation Own Technology development centre Located in Americana, Brazil Market position Serving the South American car production industry Market leader in the region 13

14 Umicore s business in South America Precious Metals Chemistry Activities 14 Production of chemical compounds based on precious metals for several applications Automotive Catalyst production Chemical catalyst production (fine chemicals, agrochemical & pharmaceutical industries) Production of Active Pharmaceutical Ingredients (API) for Anti-Cancer-Drugs (cis-pt, carbo-pt, oxali-pt). Offering a closed loop business (recycling service) Located in Guarulhos & Manaus, Brazil, & Pilar, Argentina Market position Market leader in the region Umicore is the only global player with a local production

15 Umicore s business in South America Jewellery & Industrial Metals Activities Production of gold & silver metals & alloys for jewellery and industrial production Offering a closed loop business (recycling services) Located in Guarulhos & Manaus, Brazil Market position Sizable jewellery and broad base of industrial customers Largest local player in fragmented market 15

16 Umicore s business in South America Electroplating Activities Production of precious & base metals electrolytes used in technical & decorative applications Applied technology support Laboratory services Offering a closed loop business (recycling services) Located in Guarulhos & Manaus, Brazil Market position Customer base: electronics industry, fashion jewellery, sanitary fittings Market leader in the region 16

17 Umicore s business in South America Platinum Engineered Materials Activities Production of catalytic gauzes for the ammonia synthesis Production of thermocouples for the steel industry Offering a closed loop business (recycling services) Located in Guarulhos & Manaus, Brazil Market position Serving the domestic market as well as export Market leader in South America Umicore is the only global player with a local production 17

18 Umicore s business in South America Technical Materials Activities Production of silver-based brazing alloys Production of silver based contact materials Located in Guarulhos and Manaus, Brazil Market position Broad industrial customer base Market leader in the domestic market (Brazil) Significant export business (mainly to US) Umicore is the only global player with local production 18

19 Umicore s business in South America IEQSA (40% Umicore) Activities (zinc transformation) Production of (alloyed) zinc sheets used in building Production of (alloyed) zinc products for galvanisation industry Production of zinc products for primary batteries Production of zinc oxide powders used in chemicals Located in Callao, Peru Market position Small domestic market Mainly export driven Largest player in South America 19

20 Umicore Automotive Catalysts in South America

21 Umicore Automotive Catalysts Position in the car market Russia Europe Korea Global position of some 30% similar to other global players Johnson Matthey and BASF North-America South-America India China Australia Japan Regional positions Market leader (#1 or #2 position) Smaller player (distant #3) Circles indicative of 2010 car production volumes ( catalyst revenues) 21

22 Umicore Automotive Catalysts Production & development facilities Burlington Canada Florange France Rheinfelden Germany Karlskoga Sweden Hanau Germany LDV & HDD production Auburn Hills USA Test centre Tulsa USA LDV & HDD production LDV & HDD production LDV production Headquarters R&D & test centre Himeji Japan ICT (50% JV) R&D & test centre LDV production R&D satellite LDV production Americana Brazil Test centre LDV & HDD production Port Elisabeth S-Africa LDV production Onsan/Ansan Korea Ordeg (50% JV) Test Centre LDV production Suzhou China LDV & HDD production Test Centre (2012) 22

23 South American vehicle market Automotive Catalysts in South America São Paulo Santiago de Chile Buenos Aires 23

24 South American vehicle market Legislation review Brazil Argentina Chile Santiago (Chile) Colombia Ecuador Venezuela Emission Requirements for Light Vehicles (passengers cars & light commercials) PL4 (Tier1) PL5 (NLEV) PL6 Euro3 Euro4 Euro5 Tier1 / Euro3 Tier1 / Euro3 Tier2 Bin8 / Euro4 Tier2 Bin5 / Euro5 US87 / Euro1 Tier1 / Euro3 US87 / Euro1 US87 / ECE93 PV & ECE95 CV Brazil Argentina Chile Santiago (Chile) Colombia Ecuador Emission Requirements for Heavy Duty Diesel Euro3 Euro5 Euro3 Euro4 Euro5 US98 / Euro3 US98 / Euro3 US07 / Euro4 Euro2 (for buses) US94 / Euro2 Brazil Santiago (Chile) Emission Requirements for Motorcycles Euro2 Euro3 Promot4 US06 / Euro2 US10 / Euro3 24

25 South American vehicle market Passenger cars & light duty vehicles production World South-America (in million (in million vehicles) vehicles) Source: CSM ( actuals, (in million vehicles) forecasts) 7 South America Other Middle East/Africa South Asia Argentina 6 Greater China Brazil Japan/Korea North America 5 Europe South America is a relatively small, but continuously growing market Market mainly driven by production in Brazil Source: CSM ( actuals, forecasts) Source: CSM ( actuals, forecasts)

26 South American vehicle market Passenger car & light duty vehicle drivetrains Vehicle production in South America per fuel type (in million vehicles) Source: (in million CSM ( vehicles) actuals, forecasts) E100 GAS-E100 GAS-E85 GAS DIESEL Flex Fuel systems are dominant for passenger vehicles and light duty power trains This is driven by the Brazilian energy portfolio Source: CSM ( actuals, forecasts)

27 South American vehicle market Passenger cars & light duty vehicles Total production forecast for 2017 of close to 6 million vehicles compared to 4 million in 2010 implying CAGR of >5%, in line with global market Brazil: Main producing country is representing some 3/4 of the market Argentina: Second producing country (1/5), mainly for the Brazilian market Other producing countries are Columbia, Venezuela, Ecuador (and Uruguay) Anfavea/Adefa associates: Asian (Korean & Chinese) producers are starting operations in South America 27

28 South American vehicle market Heavy duty diesel vehicles Anfavea/Adefa associates: HDD starting to fall under emission legislation Brazil: Production of 237,000 trucks & buses in 2010, to grow to 300,000 units in 2015, assuming a growth rate of 5 % per year Argentina: Production of 20,900 vehicles in 2010, to grow to 26,000 units in 2015, assuming a growth rate of 5 % per year Asian (Korean & Chinese) producers are verifying the South American market Above numbers do not include non-road machinery 28

29 Umicore Automotive Catalysts South America Production site situated in... Americana close to our customers and industrial partners 29

30 Umicore Automotive Catalysts South America Market position Market Leader in South America since 1991 Best possible supply records (zero-failure since the foundation in 1991) Full global integration into the Umicore AC network Complete technology portfolio with Three Way Catalysts (TWC) for all fuels, Diesel Oxidation Catalysts (DOC) and HDD technologies Pioneer in Automotive Catalyst Technology and local manufacturing in South America (Gasohol, Alcohol and Flex-Fuel) Own Technology development centre in Americana since 1992 (Start-up of HDD Test cell for big engines in 2009) Applying operational excellence tools (TPM, RCM, VSM, ) Integrated QSHE system, QS certifications since 1994, ISO certification since 1999 OHSAS certification in 2007 and SA 8000 certification in

31 Umicore Automotive Catalysts South America Technology development centre Technology development centre supports our and our customers local product developments Objective to develop specific catalysts for the special fuels and applications in South America, such as Gasohol, Alcohol, CNG, Flex Fuel and Diesel 31

32 32 Thank you for your attention

33 Forward-looking statements This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore s plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements. 33

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