Advances in PM Titanium: Reduced Cost and Improved Properties

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Advances in PM Titanium: Reduced Cost and Improved Properties S.M. Abkowitz, S. Abkowitz, H. Fisher, D. Main Dynamet Technology, Inc. TITANIUM 2010 Orlando, FL October 3-6, 2010

Demand for Titanium is Growing Current US & European Military Aircraft F-22 Raptor ~110,250 lbs Ti/plane* Ramp-up of the JSF F-35 Estimate 3,100 planes ~45,000 lbs Ti/plane* Demand for Commercial Aircraft Boeing 787 ~1,750 planes ~250,000 lbs Ti/plane* * Material Buy Weights 2

Shipments (millions lbs) Rising Demand Pressure on the Titanium Industry 90 80 70 60 50 40 30 20 10 0 Titanium Shipments (millions of pounds) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 est Compiled from USGS Materials Information Titanium Statistics and Information 3

Military Spending & Philosophy Recent Statements from the DOD The Pentagon Is Serious About Saving Money * Affordability requirements Incentivize productivity and innovation Remove obstacles to effective competition *Ashton B. Carter, Undersecretary of Defense for Acquisition, technology and logistics. Wall Street Journal Article, September 21, 2010 4

Military Aircraft F-22 Raptor Joint Strike Fighter (F-35) 5

DoD & Commercial Customer Needs Affordable Materials and Products Stability of Costs and Material Availability Reduced Material Buy-to-Fly New Engineered Materials An alternative to the conventional supply chain now. 6

Dynamet s Ti PM Technology Provides an affordable manufacturing pathway Properties meet requirements for most applications 7

Advantages of Ti PM Processing Near-net shape manufacture Results in fine-grained microstructure Processing below the melting point Enables new alloys with tailored properties Bypasses traditional supply chain Lower cost and quicker delivery 8

CIP/SINTER/CHIP Process: Production Parts Alloy: Ti-6Al-6V-2Sn, CHIP Process Production Volume: >50,000 parts 50% Cost Savings Alloy: Ti-6Al-4V; CIP+Sinter Process Production Volume: >45,000 parts 70% Cost Savings 9

Growing Acceptance Dynamet Technology s successful production supply of titanium alloy P/M product by this process began in the late 1970s. Success with niche products has proven the capabilities and benefits of this technology. This technology has recently attracted the attention of significant users of titanium product. 10

Quality and Consistency CIP-Sinter/CHIP Process is a Mature Process Demonstrated Consistency PM Preform Size and Shape Density Mechanical Properties Very High Material Utilization and Product Yield PM Processing Finish Machining 11

Why Now? What s Changed? Customers: Attitudes & Affordability Cost Pressures Alternative to conventional supply chain Major Ti customers interest in PM technology Attention to Titanium PM Promotion of potential new low cost Ti powders Dynamet Technology s production proven manufacturing of PM titanium parts 12

Size & Shape Capability 13

Tubular Shaped Parts 7.25 OD x 3/16 wall x 17 long 6 OD x 0.5 wall x 26 long 14

Ti Mill Products Forms via PM Extruded PM Billets Machined Rolled Forged 15

Titanium Tubing Development PM Tube Hollows 0.875 OD x 0.145 wall x 18 long Tube Rolling Rolled Tube Sections 16

New Titanium Alloys by PM Create new alloys by powder metal with unusual alloying elements. Tailored Ti PM alloys that meet new design goals E-X-P-A-N-D the use of titanium. 17

Tailored Alloys for Hydraulic Tubing PM Ti-3Al-2.5V & Modified PM Ti Alloys offer: Damage Resistance Damage Tolerance Higher Strength Affordability Anticipated Benefits: Greater Safety Weight Savings Cost Savings 18

Tailored PM Alloys for Medical Device Applications Ti MMCs for Wear Resistance CermeTi MMCs Replacing stainless steel in metal-on-metal High Strength & Hardness Ti-W Alloys Abkolloy Compositions ~200 ksi UTS 190 ksi YS 5% -- HRC: 45-47 Ti-Ta Alloys for a variety of medical applications 19

Low Modulus PM Ti-30Ta Alloy UTS (ksi) Modulus (msi) Strength/Mod Ratio CP Ti 80 15.2 5.3 Ti-6Al-4V 130 16.5 7.9 Ti-6Al-7Nb 131 15.2 8.6 Ti-15Mo 100 11.3 8.8 Ti-13Nb-13Zr 125 11.5 10.9 PM Ti-30Ta 134 10.8 12.4 20

Novel Ti-Ta Materials Balloon Stents - High Ta-Ti Low Recoil (High Modulus, Low Yield Strength) Self-expanding Stents - Midrange Ta-Ti Shape Memory ASM International Orthopaedic Implants: Ti- 30%Ta Flexibility (Low modulus, high yield) Ni-Free Alternatives to Nitinol & Steel 21

Market Impact of Ti PM PM product will substitute for mill product PM will expand the use of titanium via Affordability and availability Increased service use 22

Properties Summary/Conclusion Superalloys Cobalt Chrome STEELS Market Size Al-Alloys Affordability 23