Hydro Aluminium Aluminium Jon-Harald Nilsen Executive Vice President Creating Innovative and Sustainable Solutions for Today s Challenges and Tomorrow s Opportunities Metal Bulletin s 19 th International Aluminium Conference 19 21 September 2004
Welcome to Norway 51299 Hydro Media 09.2004 2
Well developed aluminium industry cluster in Norway Trondheim Sunndal Raufoss Mosjøen Metal plant Recycling plant Extrusion plant Rolling mill R&D Centre Large aluminium processing plant Universities & Research Institutes Karmøy Oslo 51299 Hydro Media 09.2004 3
A fully integrated global aluminium company Bauxite/ alumina Virgin metal Casthouse products Rolling Extrusion Fabrication & Systems Automotive 51299 Hydro Media 09.2004 4
Western World * demand expected to grow in the coming years 1 000 tonnes 40 000 35 000 2900 % growth per segment Other 30 000 25 000 20 000 15 000 10 000 5 000 2700 3000 2500 2700 2400 2500 2400 5500 5900 4800 5100 6600 6200 5600 5800 6000 5600 5200 5000 8000 8600 9500 10700 4.0 5.1 3.8 3.2 3.6 5.6 Durables Electrical & engineering B&C Packaging Transportation 0 2001 2003 2005 2007 * World, excluding Central and Eastern Europe, China, Russia, Ukraine, North Korea Sources: Brook Hunt; Hydro Aluminium 51299 Hydro Media 09.2004 5
China emerging as a major aluminium market Global primary demand 2003 27.3 million tonnes Global primary demand 2012E 42 million tonnes Other Asia 13 % Other 10 % US 24 % Other Asia 14 % CIS 5 % Other 8 % US 18 % China 19 % Japan 9 % Sources: CRU; Hydro Aluminium Europe 25 % China 28 % Japan 6 % Europe 21 % 51299 Hydro Media 09.2004 6
Metal deficits in Europe and the USA will continue to grow Net exports, primary aluminium 1 000 tonnes 4 000 3 000 2 000 1 000 0 2000 2005E 2012E -1 000-2 000-3 000-4 000-5 000 Asia* Europe USA China Canada South America Source: CRU, Hydro Aluminium * Excluding China Australia & NZ CIS Rest of world 51299 Hydro Media 09.2004 7
Creating value through innovative solutions Agile organization Customer responsiveness Unique portfolio Business concepts Applications Technology 51299 Hydro Media 09.2004 8
Properties of aluminium utilized in advanced application areas Properties of aluminium:! Strong and light! Highly corrosive resistant! Good conductivity! Good reflective qualities! Easy to form and process! Impermeable and odourless! Non-flammable! Good recyclability! Good energy absorption qualities Aluminium is the ideal material for the building, automotive and packaging industries 51299 Hydro Media 09.2004 9
Light-weighting the front end in automotive BMW 5-Series: Comparison of weight 0.8 kg glue = 19.9 kg steel 17.4 47.6 kg steel 67.5 kg aluminium 29.4 since 7/2003 (aluminium + steel) before 7/2003 (steel) 51299 Hydro Media 09.2004 10
Innovative solutions in building Aluminium in windows and facades contribute to sustainable buildings:! Reduced energy consumption in construction and use! Maximized user comfort on thermal aspects and daylight utilization! End-of-life recycling and high architectural flexibility 51299 Hydro Media 09.2004 11
HYBRAZ simplifies the production process and improves environmental aspects The new coating presents clear benefits:! Elimination of fluxing and degreasing operations! Improved cosmetic appearance of brazed radiator core! Increased productivity with up to 80%! Possible first time yield increase from 93% to almost 100% Old technology New HYBRAZ PF 51299 Hydro Media 09.2004 12
Superior packaging solutions! Protection of food quality to withstand influences from:! Oxygen! Water and light! Microorganisms! Neutral smell and taste! Non-toxic! Wide range of decorative aspects 51299 Hydro Media 09.2004 13
Innovative smelter technology reduced emissions Strong focus to improve external and internal working environment:! HAL 250 technology with forced suction! Best available technology in fume treatment! Cooling boxes for butts and bath material! Pneumatic ship-unloading and fully automatic closed handling of alumina Sunndal metal plant 51299 Hydro Media 09.2004 14
Advanced filtration and casting systems one quality to customers Technology that ensures top quality casthouse products with metal input from different sources, also giving flexibility in the optimization of supply mix and logistics 51299 Hydro Media 09.2004 15
Common efforts needed to strengthen the position of aluminium International Aluminium Institute " Global sustainable development initiative (global targets) " Global aluminium Life Cycle Inventory European Aluminium Association " European aluminium industry Sustainable Development Report " Life Cycle Inventory " Stakeholders workshop " Aluminium for Future Generations 51299 Hydro Media 09.2004 16
Enjoy your trip! HA Sunndal HA Raufoss 51299 Hydro Media 09.2004 17