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    Constellium activity report 2011 Constellium activity report 2011 Document Transcript

    • 13 +3Al ways a step ahead
    • Contents 2 6 EXPLORING THE FUTURE 8 • Shaping the future through innovation Think about aluminium. Locked inside an atom of aluminium, is a world of opportunities. Constellium’s 10 • Voreppe, Constellium’s mission is to unlock that potential and to melting pot for ideas INTRODUCTION 12 • Innovation Cells, a new transform aluminium from a molten metal 2 • 2011 at a glance 4 • Interview with Pierre Vareille look at innovation into a vast range of advanced technology 14 • Interview with Professor products for our customers. Francesco Stellacci Innovative ideas are vital for exploring the future and the groundbreaking technologies. At Constellium, we constantly 16 strive to give shape to ideas by drawing on our teams of talented experts, our reputation for manufacturing know-how and our close partnerships with customers. MATERIALIZING IDEAS 18 • Aluminium, the strengths By turning creativity into technology, of a 21st century material we materialize ideas so that our customers 34 20 • Global ATI, shaping the sky 24 • SSH, leading the way in key markets from industries including aerospace, 28 • EAS, promising trends automotive and packaging get the high value 32 • Recycling, aluminium’s ace card solutions they are looking for. Throughout this process, our focus is on delivering excellence DELIVERING EXCELLENCE in everything we do and making sure that 36 • Interview with Peter Basten 38 • EHS, putting safety we deliver on our commitments. It’s all at the top of the agenda about dedication and imagination. In action. 40 • Health and safety at work 42 • Protecting the environment
    • Introduction Key figures Evolution 2009/2011 Sales (€M) Volumes (KT) 4 1200 3,555 1000 1.058 3 973 2,957 800 871 2 2,292 600 400 1 +29% +20% +12% +9% vs vs 200 vs vs 2009 2010 2009 2010 0 0 2009 2010 2011 2009 2010 2011 Key figures (Dec. 31st, 2011) 2011 sales breakdown by business unit 2011 FTE breakdown by geographic area 45% Specialty Sheet 48% France 30% Global ATI 22% Germany 25% Extrusions & 10% Switzerland Automotive Structures 6% Czech Republic 1% Slovakia 11% USA 2% Asia (China, Japan, Korea, Singapore) 2011 sales breakdown by end-market 2011 FTE breakdown by business segment 2011 With over 9,000 employees, Constellium has three business units: Global Aerospace, Transportation and Industry (Global ATI), Specialty Sheet and Extrusions & Automotive Structures, 34% Packaging 38% Global ATI at a glance which are supported by a world-class research center in Voreppe, France, and a strong Research and Technology organization. 15% 11% 13% Aerospace Automotive Other transportation 24% Specialty Sheet 34% Extrusions & Automotive Structures Constellium is recognized as the world leader in aerospace 4% Corporate and R&D 12% Industry In markets as diverse as aerospace, plates, general engineering plates, closure sheets and bright 9% Building automotive, construction, packaging, sheets and as the European leader in can body stock and large 6% Other energy and transportation, Constellium profiles. Constellium, which has its operational headquarters in Paris, France, generated sales of €3.6 billion in 2011. is uniquely positioned to deliver innovative, invaluable, world-class aluminium 2011 sales breakdown by geographic area (Country of invoice) products and solutions. 15% France 9,280 28% Germany EMPLOYEES 19% United Kingdom ES M N IU 3% Switzerland 2007 TO LL 16% Other Europe 22 11 ES TE RIO TINTO 12% North America UM EL T S MANUFACTURING COUNTRIES IL S ACQUIRES LI Asia & Oceania ST C 5% M ON SITES N DU ALCAN CO RO 2% Rest of the world C ES P CO ER S M ED BE INE ST EP G V E 1999 2003 Shareholding 1 N EN DI 11 structure C A N TO 20 R&D CENTER AL LCA TIN ALCAN ACQUIRES ALCAN ACQUIRES 51% APOLLO ALUSUISSE PECHINEY A O 39% RIO TINTO RI 10% FSI2 3
    • Introduction Interview with Pierre Vareille and notably China, has driven growth, though weakness in the safe and sound, and for Constellium to be the industry benchmark construction industry made it a difficult year for extrusions. And for safety. We also need a step change in how we serve custom- last but not least, can stock, our main product in Specialty Sheet, ers, by supplying products that almost never lead to a claim and once again achieved record volumes. are delivered on time. As for growth, there are huge opportunities in our strategic areas of aerospace, but also in the automotive What are the prospects looking ahead to 2015? industry, where aluminium was once for niche markets but is P.V.: They are promising, for some fundamental reasons. In almost increasingly used in volume cars. In packaging, if we continue every field of manufacturing industry, aluminium is gaining ground to improve our service to customers, we will continue to gain over other metals and materials. What’s more, Constellium is market share. Overall, our target is to triple EBITDA by 2015 and focused on the value-added segments of markets which are to significantly improve our cash flow. Finally, to drive innovation, enjoying real growth and will most probably continue to do so. we will keep investing in R&D to create the breakthrough products So although we live in a world of uncertainties, our multi-year of 2020 and 2030. We have had great success in aerospace with contracts with key customers like Airbus, Boeing and major can- AIRWARETM; now we need its automotive equivalent. makers do give us visibility. Our aerospace prospects reflect the present market conditions because airlines need to modernize The power Looking back, what’s your view of 2011? Pierre Vareille: It was a year of transition, a very important one. Our main shareholder changed from a corporation to a private their fleets with lighter planes that consume less fuel,and they also need to expand those fleets in areas like Southeast Asia, where tourism is booming. In automotive, China is now the world’s I have formed the unbreakable conviction of change equity company, our name became Constellium and we reorgan- ized the business to improve our operations and our cost position, largest market and German cars – which use more aluminium – are the preferred choice. Can stock will also continue its steady that we will, all together, create which is the absolute condition to conquer new customers. That growth. one of the jewels of the European Pierre Vareille, Constellium’s Chairman included the divestment of AIN, so we are now totally dedicated and Chief Executive Officer, looks at to aluminium transformation. We also rolled out our investment What are your strategic aims? manufacturing industry. the achievements of the past year plan, which includes new casthouses at Voreppe and Issoire for P.V.: We have three key objectives, the first being to focus on our our AIRWARETM technology. Meanwhile, the chairman and chief chosen growth segments – aerospace, automotive, packaging and the challenges that lie ahead. executive roles were merged, and I’m both proud and honored and industry. Geographically, we are looking for opportunities What kind of Constellium would you like to see Safety, customer focus and innovation to hold this new position. All in all, it has been a challenging year, to expand our global footprint, in Asia in particular. The second in five years’ time? are among the key priorities. because change is rarely easy; but change we must. objective is to create product leadership, based on innovative P.V.: I want us to be even more rigorous. I also want to decentral- technologies that really are differentiating. The third is excellence ize decision-making – so that decisions are taken at the lowest How did Constellium perform as a business? in our operations, through Lean transformation and the Constellium possible level – and to create a system of continuous improve- P.V.: Overall, it was quite positive. Sales grew 20%, reaching over Business System. Together with our strong focus on sustainabil- ment, one where everyone takes part and influences their work €3.5 billion, and we delivered increases in EBITDA and cash flow. ity and recycling, it’s a strategy we believe will help us achieve environment. In short, I want to create an entrepreneurial spirit, Production rose by about 10%, to more than 1 million metric tons. our four True North Goals. so that people take risks and put themselves and their ideas In short, it was a period of recovery after two very difficult years, forward. I am very optimistic about the future: throughout all my due to the general economic climate. For Global Aerospace, And what are those goals? site visits and all my meetings with our employees, I have formed Transportation and Industry, the aerospace sector is growing P.V.: They concern Environment, Health and Safety, customer the unbreakable conviction that we will, all together, create rapidly again after a tough 2008-09, and we sealed important focus, organic growth and innovation. I put EHS FIRST, our com- one of the jewels of the European manufacturing industry. contracts with our key customers. For Extrusions & Automotive prehensive approach to Environment, Health and Safety, as our Structures, the strong performance of German carmakers in Asia, absolute priority. We want everyone to return home from work4 5
    • Exploringthe future 8 Shaping the future through innovation10 Voreppe, Constellium’s melting pot for ideas12 Innovation Cells, a new look at innovation14 Partnerships, the science of working together 7
    • Exploring the future Innovation A world of potential with Open Innovation To deliver on our strategy, Constellium has created an eco- system for Open Innovation. It’s open, because we believe not just in the expertise of our own scientists, engineers and marketing teams, but also in partnerships with the world outside. At the center of this ecosystem is our advanced R&D facility at Voreppe in France, a world-leading resource for Shaping Innovation is one of the True North Goals of Constellium’s corporate strategy. Though our business units enjoy a wide range of market-leading positions in Europe and around A major emerging trend Constellium business units but also for carrying out joint research with our customers. Every year, our customer partner- ships yield research and technologies that set new performance the future the world, we are fully committed to developing new products and processes that will further strengthen those positions endorsed by Constellium benchmarks for sustainability and efficiency. Along with Constellium’s world-leading R&D resources, our is to take a holistic approach through innovation and satisfy our customers’ unmet needs. A striking achieve- ment is our proprietary AIRWARE™ technology for the aerospace sector. Through innovation, aluminium can also challenge the to innovation. strategy for innovation also includes partnerships with about 40 universities and international research laboratories, further enhancing our ability to deliver advanced solutions. The Swiss positions of other widely-used materials, such as PET in Federal Institute of Technology (EPFL) and France’s ViaMéca Constellium has a longstanding certain types of packaging or steel in the automotive sector. mechanical engineering research cluster are just two such tradition for excellence in innovation. In all areas, Constellium actively seeks opportunities to they interface with other materials in an increasingly hybrid partners. Constellium is constantly improving its own organ- With 200 patent families in critical deliver innovative solutions through co-development with world that requires engineering excellence. ization. Process innovation is supported by R&D and driven technologies, the company is fully its customers. A major emerging trend endorsed by Constellium is to take a by a dedicated technology organization operating a series of committed to innovation in its products, holistic approach to innovation, one that incorporates advanced technology networks that bring together experts and engineers processes and services. Delivering on that Exploiting the advantages of aluminium material design, processing, and the customer’s enabling to industrialize new products and promote best practices at At the heart of our strategy for innovation is the search for technologies. A key feature throughout this approach is the plant level. These Technology Networks cover areas including commitment means not just harnessing products and technologies that exploit aluminium’s advantages extensive use of state-of-the-art numerical modeling. While industrialization, hot and cold rolling, casting, maintenance, the talent of our own people, but also in lightweighting, strength, formability and durability. The there is a focus on deliverable solutions, our strategy for innov- molten metal and recycling. Outside learning can be rapidly working with customers, suppliers, market opportunities for this are already enormous – and ation also includes our processes, particularly in manufactur- assimilated into the knowledge management processes research scientists and academics will also continue to grow thanks to an increasing trend ing. Throughout our plants, we use innovation to make these through a technology watch. Further resources are provided around the world. for capital goods to be multi-material and multifunctional; processes safer, more efficient and to lower energy consump- by Innovation Cells, a unit that supports our business units particularly in the automotive and transportation sectors. This tion – and to also help create new products. In addition, we – from the idea and prototype stages to business plans. means that our innovation talent is not only focusing on the are at the forefront of recycling in areas including packaging, At Constellium, innovation really is at the beating heart of scope of aluminium technologies themselves, but also how and materials from the aerospace and automotive sectors. everything we do.8 9
    • Exploring the future Voreppe Research Center set of alloys and trademarks including Formalex™ (an Al-Mg alloy) for inner body parts and Surfalex™ for hoods. To help customers design Crash management systems and produce cost-effective With car safety a clear priority for manufacturers, Constellium materials that are perfectly helps its automotive customers by developing innovative crash management systems. One such innovation is the inserted adapted to their needs front crash box, placed directly into a vehicle’s longitudinals and now used by several carmakers. Constellium has patented a towing unit that is integrated into a rear crash box. It does Voreppe It’s the largest research center devoted to aluminium in Western Europe, it’s home to 200 senior-level specialists and it’s the driving force behind innovation at Constellium — the avoids the need to melt the parts being welded, FSW aims to help customers in the aerospace sector to optimize their material usage and reduce costs. Used to create larger not require a towing nut and benefits from a reduced welding length and fewer parts. Like the front crashbox, the towing unit is also an exercise in lightweighting. Working with our Constellium’s Voreppe Research Center (CRV). pieces without losing any of the material properties, FSW par- ticularly reduces the manufacturing costs for assembling facilities at Singen, the CRV has developed thinner (down- gauged) and higher-strength aluminium extruded components melting pot Key roles in supporting the business Equipped with the latest scientific hardware, prototyping equipment and modeling technology, the CRV has three key applications of fuselage and wing substructures. Techniques including FSW and laser beam welding can help significantly reduce the weight of an aircraft. Constellium’s AIRWARE™ that maintain crash performance. CRV Services for third party aluminium users for ideas roles to play: to develop innovative, sustainable, value-added solutions for customers; to provide opportunities for future technology, used in aircraft including the Airbus A350 or Bombardier CSeries, delivers a 25% reduction in weight when As part of its activities, the CRV also offers a wide range of services to help external manufacturing and processing com- business growth and to support our technology networks in combined with advanced welding techniques and redesign panies implement effective R&D programs. Whether it’s new Since it first opened in 1967, the Voreppe sharing best practices for our processes. In terms of organiza- of the airframe. alloys, new systems for processing, assembling and forming Research Center (CRV) has provided tion, the CRV is based around multidisciplinary teams dedicated materials, or new applications, CRV knowledge and experience a wealth of innovation in aluminium and its to three key markets (aerospace, automotive and rigid pack- High formability sheet for the automotive industry is a powerful resource. Among the services available are aging). It also has teams specializing in core competencies With Specialty Sheet, Voreppe has helped to develop Constellium’s design and modeling assistance, metallurgical prototyping, alloys. In close cooperation with customers, (metallurgy, surfaces & corrosion, numerical modeling & range of Body In White solutions for automotive manufactur- materials characterization, mechanical testing, heat treatment its many breakthroughs over the years applications, and the casting & recycling process) and support ers, focusing in particular on the formable aluminium needed and joining technologies. Together, they enable CRV Services have improved safety and helped make (characterization, testing, prototyping and castshop). The by demanding, lightweight car designs. The objective has been to help customers design and produce cost-effective materials cars and planes lighter, industry leaner breadth of expertise at CRV can be gauged by looking at tech- to achieve a high formability – i.e., the ability of the metal to that are perfectly adapted to their needs. and the environment greener. nologies provided by these units. be formed without failure or defects – in stamping and, for outer panels, hem flanging at acceptable manufacturing rates AIRWARE™ and Friction Stir Welding for lighter aircraft without compromising surface appearance or strength. A four- For Global ATI, CRV expertise in Friction Stir Welding (FSW) year R&D project involving Voreppe and three external organ- has been a major asset. A solid-state joining process that izations has resulted in a series of improvements, and a new10 11
    • Exploring the future Innovation Cells Innovation Cells material technology, Innovation Cells also provides its services to third parties outside Constellium. Though the work carried out is largely confidential, projects have been successfully completed for Saint-Gobain in the construction industry, Logitech in consumer electronic devices and Philip Morris in non-tobacco markets. For 3A Composites (former Alcan Innovation Cells brings business Composites) Innovation Cells initiated a project to see if com- and technical experts together posites could be used to produce more durable bridges, and helped establish the first pilot projects. The result is a new under one roof to provide product line now commercialized by 3A Composites as Banova, a range of innovation services. a balsa-based bridge decking material that is 80% lighter than conventional offerings. As with all its projects, Innovation Cells is clearly focused on identifying the potential of a new product or process and then developing it into a successful business. In an increasingly complex, multi-material world, that focus is a highly valuable asset. Innovation Cells For all its complexity, innovation is rather like baking a cake: there are many different recipes for a successful outcome. At Constellium, our main focus is on the world-class R&D center The approach has helped numerous Constellium projects across its various divisions, with a flagship example being the develop- ment of Corevo, an aluminium foam. The manufacturing process a new look at Voreppe, supported by a network of partnerships with top universities and research facilities. However, we can also draw invented at EPFL’s Mechanical Metallurgy Laboratory for the foam is radically different and more economical than current FOAM FOR A SUSTAINABLE WORLD Corevo aluminium foam can at innovation on Innovation Cells, a special unit created in 2008 on the campus of our strategic research partner, the Swiss Federal Institute of Technology in Lausanne (EPFL). Innovation Cells specializes alternatives. In terms of applications, it has real potential in a number of areas, and notably the automotive industry (see box for details). Constellium backed the idea and asked the experts support sustainable, ‘green’ technologies in a variety of different application areas. in creating new business from new products and applications at Innovation Cells to help. Their response, in the form of support Consisting of 70% air, the Innovation Cells is a unit of Constellium aluminium foam material that are complementary to Constellium’s core activities. for development, industrial scale-up, customer and application that takes the idea of Open Innovation scouting and business case definition has resulted in a highly is an excellent conductor to a different level. A combination From innovation to delivery sustainable product that will soon be ready for launch. of heat and cooling for either liquids or gases. In cars, for example, a cooling unit made from Corevo could of business and development experts, A cross-functional organization, Innovation Cells brings business replace the conventional radiator, reducing its size it provides materials and innovation and technical experts together under one roof to provide a range Identifying the right market and weight, and boosting its efficiency. More of innovation services to Constellium and third parties alike. A different kind of service has been provided for Constellium’s importantly, it would give engineers an opportunity consulting services to Constellium to re-design the cooling system entirely – potentially These include materials engineering, new product development Specialty Sheet business unit in Singen, Germany. Innovation and industry at large. integrating it with the crash management system and and innovation management. Its task is not to carry out funda- Cells was able to sharply reduce the time to market for a new achieving even greater weight reduction. Electric cars mental research, but to find ways of refining, developing, high-strength aluminium alloy that the business unit had will meanwhile have an increasingly important role to prototyping and successfully delivering customer ideas that developed, but for which they had yet to select the best-suited play in sustainable motoring as battery performance have already been proved at lab scale. The overriding aim of the target of its many application areas. Innovation Cells helped to continues to increase, delivering ever-greater vehicle organization is to take ideas, materialize products and then identify a launch application and customer, and also provided power and range. However, with more power comes more heat. Corevo casings for the batteries in electric deliver revenues. Equally importantly, customers can be advised estimates of the potential size of the market, leading to a new cars could provide effective cooling, and re-route heat when to terminate a line of development, should there be a lack product and new business for Specialty Sheet. to other areas of the car. of market potential. With expertise that includes both aluminium and composite12 13
    • Exploring the future Interview with Professor Francesco Stellacci How could this be taken further? Constellium partners F.S.: In the car industry you could think of a material that is very with about 40 universities hard when interacting with small mechanical stresses – so a and international research pebble would bounce off the hood without leaving a scratch – but in a crash, it would bend in on itself and absorb all the energy, laboratories. protecting the occupants. These are all instances where you want multiple functions from the same material and I think in the future we’ll be able to engineer these functions. Why are interfaces important for the aeronautics Just how far could this go? and automotive sectors? F.S.: In a span of 20 to 50 years, I think metals and other F.S.: Because these industries are becoming multi-material materials will be able to self-heal, at least small cracks. It won’t Partnerships Along with Constellium’s world-leading R&D resources, our strategy for innovation also includes partnerships with about 40 European universities and international research environments; they’re about putting different materials together to get the best out of them. The problem is that we use relatively simple methodologies to do that: by bolting or soldering. But if of course be a single component matter, it will be an integrated system of multiple materials being together. the science of laboratories. Our research center at Voreppe, France, for example, works closely with the Suisse Technology Partners we really controlled the interface of these two materials we could achieve properties that are far beyond a simple sum of the two How? Metal has no innate intelligence telling it how to self-heal. working together laboratory in Neuhausen in Switzerland and the ViaMéca mechanical engineering research cluster in France. A key partnership for advanced technology in lightweight materials materials’ properties. We could make aluminium very tough or very soft, just by controlling the interface with other materials. F.S.: When a bone breaks, it’s not your brain that tells your bone to re-heal. There are stimuli within the material that push toward the bone having a continuous structure. There is research now has been established with the Swiss Federal Institute of How could that be exploited? in composite materials that if capsules within a composite are Constellium has established links with Technology in Lausanne, where the world renowned expert in F.S.: Think of an airplane wing. It needs some flexibility so it can broken, they release chemicals to re-form the material itself. leading universities and research centers nanomaterials, Francesco Stellacci, was appointed Constellium bend with the air, according to the mechanical stresses over You could one day have metals that release chemicals and as part of its global approach to innovation. Professor in 2010. Here, Professor Stellacci looks at the future the wing, but has to be particularly hard, so that it doesn’t crack re-form if their continuity is broken, or chemicals in the surface Professor Francesco Stellacci, a world possibilities for aluminium and other materials. if it hits something. Now, if it had two materials that co-existed paint to do that. Remember, there’s a lot more complex expert on nanomaterials, discusses where with a great interface – so that some parts were extremely hard self-healing in nature. If a lizard loses its tail, the entire tail those links might lead us in the future. What areas does your work cover? and others very good at bending – that would be very exciting. grows back. That’s not in sight for materials now, but maybe Francesco Stellacci: My work focuses on the interfaces of in 200 years it will be. different materials and how we can take advantage of those How else could this be applied to industry? to create new opportunities. What’s important to understand F.S.: I believe future materials will be able to perform more is that at the nano scale, materials show different properties functions than they do now. So in aerospace, but also the auto- than normal, and novel phenomena happen. For example, if we motive industry, we could have materials that change color as I believe future materials impose a nanometric structure on the surface of a material, they start to degrade, enabling a visual inspection. Food cans such as aluminium, we can give it special interfacial properties; could be made to start corroding if the food inside had gone will be able to perform more like making it superhydrophobic, so that it strongly repels water. bad and you’d know just by touching the can. functions than they do now.14 15
    • Materializingideas18 Aluminium, the strengths of a 21st century material20 Global ATI, shaping the sky24 SSH, leading the way in key markets28 EAS, promising trends32 Recycling, aluminium’s ace card 17
    • Materializing ideas Aluminium intrinsic values THE LIFE CYCLE OF ALUMINIUM Aluminium provides a twist on the traditional life cycle in that, once born, it never dies. Endlessly recyclable, it exists in a continuous loop of formation and transformation. Bauxite ore, A chemical process Alumina is smelted the raw material turns bauxite into into aluminium for aluminium, is mined. alumina powder. by electrolysis. Casthouse Recycling returns Each of these The resulting Metal is alloyed Aluminium Accounting for just over 8% of the earth’s crust weight, aluminium is the most abundant metal on the planet and the third most common element after oxygen and silicon. And it to the production process. products has its own usable lifetime. materials are manufactured into products. and processed by casting, rolling or extrusion. the strengths since industrial production started slightly more than 100 years ago, aluminium has become increasingly important in our lives: of a 21st century we cannot fly, travel by high-speed train, high-performance car or fast ferry without it. We cannot get heat or light into our homes and offices without it. Our society depends on it A first choice for packaging applications Can and foil are the best known aluminium end-uses in the packaging sector. Aluminium provides an absolute barrier 75 % of all the aluminium ever material to preserve food, medicine and provide electronic components for our computers. protecting goods. It contributes to the efficient production, storage, distribution, retailing, and usage of many products made is still in productive use. such as drinks, food and medicines. Worldwide demand for aluminium Fit for purpose in transportation applications products is on the rise. Partly a result of Aluminium has about one-third the density of steel, is corro- A large variety of other applications demographic growth and higher purchasing sion-resistant and its strength can be adapted to requirements The building and construction sector extensively uses alu- by modifying the composition of the alloy. This has made minium for its high strength-to-weight ratio, its long service power in emerging countries, the increase aluminium the material of choice in many transportation life with low maintenance requirements, its high reflectivity also reflects the fact that aluminium applications: planes, trucks, high-speed trains (in particular and its huge design flexibility with a wide choice of surface is replacing other materials, thanks double-decker cars) and also freight cars for coal, marine ves- finishes: solar panels, facade sheets, window frames, shading to its unique combination of properties. sels, passenger cars, bicycles, etc. Use of aluminium reduces devices, etc., are only examples of building applications. 100% 2.7g/cu. cm Being lightweight, strong, formable, fuel consumption and CO2 emissions, and/or larger payloads Thanks to its excellent thermal conductivity, aluminium has AND INFINITELY THE DENSITY and longer distances. In addition, aluminium is an excellent now replaced copper in automotive heat exchangers and is used RECYCLABLE OF ALUMINIUM resistant to corrosion and endlessly shock-absorber which is increasingly used in crash-manage- in molds. recyclable are just some of those ment systems (bumpers) for improving safety in cars. With a specific bright finish, aluminium can be used as a properties. reflector for lighting applications.18 19
    • 13 +3 Leader in the sky Al ready worldwide #1 co. worldwide #1 worldwide in aerospace in general plates engineering plates20 21
    • Materializing ideas Global Aerospace, Transportation and Industry Strength, where it’s needed Aside from aerospace, the other major Global ATI markets Christophe Villemin, ID CARD are transportation, defense and industry. In the transportation President Global ATI sector, Constellium is Europe’s market leader in tank trailers 2011 SALES VOLUMES €1.024 billion and dump bodies, and is #1 in North America for railcar and “Key markets are 44% Aerospace 36% Transportation roof coil. It has also built up a major business in fast ferry and yacht construction thanks to its breakthrough alloy SEALIUM®, picking up and set 19% Industry which has outstanding strength and weather/fatigue resistance. for future growth” Aluminium’s inherent combination of light weight and strength KEY CUSTOMERS is also increasingly being used by the defense sector in armored What were the highlights of 2011? Airbus, Boeing, Dassault, vehicles, where manufacturers require the highest levels of blast The key highlight was a sharp pickup Embraer, Freight Car, and ballistic protection. in demand from the aerospace industry, America, SpaceX, Reliance, in particular with Boeing and Airbus, Bombardier, Ryerson, Thyssen Krupp, etc. which had reduced inventories. Services and industrial capability Meanwhile, the transportation and Rounding out Constellium’s offer in the Global ATI area is marine sector recovered in the US and its #1 position worldwide in general engineering plates continued to grow in Asia. Internally, for industry; a position driven by the expertise at its three manu- two new casthouses for AIRWARE™ facturing plants – at Issoire, France; Ravenswood, West Virginia began production at Voreppe and Issoire, in the United States; and Sierre/Steg in Switzerland. Though while a new $46 million stretcher the plants are key to both the development and production of was installed at Ravenswood. plates, sheets, extrusions and coils, they also have another What is the market evolution, important role to play in Constellium’s all-round solution for and what challenges lie ahead? Global ATI customers. A wide range of engineering services The outlook is very encouraging. Global ATI Constellium’s ability to create, manufacture and recycle new aluminium alloys has established the company as the benchmark for the aerospace industry. Its products are found in passenger are also available, particularly pre-machining and advanced welding to optimize manufacturing by the customer, along with recycling, which involves collecting and re-using the scrap from Aluminium has made real technological progress in aerospace, compared with alternative materials like titanium shaping the sky planes from Boeing and Airbus, military aircraft including Lockheed Martin’s F-35 Joint Strike Fighter and in various space- customers’ machining and production processes. or carbon fibers, and the recycling factor is growing in importance. The challenges are to keep improving our service to craft and launchers stretching back three decades. Constellium customers as we increase production, Constellium’s Global Aerospace, is a worldwide leader in the aerospace market for aluminium, and to keep pace with their needs, both Transportation and Industry business unit the #1 worldwide in general engineering plates and the European technologically and geographically. provides a broad spectrum of aluminium leader in aluminium precision sand castings. CHANGING THE GAME WITH AIRWARE™ What is your strategy? solutions. Working closely with customers Launched in 2010 after a 10-year program First, it’s to keep innovating, and A constant evolution to determine their needs, we are able That success is due to two main factors : aluminium’s intrinsic at Constellium’s Voreppe R&D center, AIRWARE™ to bear in mind that we’re not just selling is a breakthrough range of products designed for to design and manufacture products that ability to reduce aircraft weight and Constellium’s combination all parts of an aircraft structure (fuselage, wings alloys or products; we need to take into account all the design, manufacturing help make travel safe and sustainable. of technical innovation and industrial experience. For aircraft and tail fins). Drawing on a complex structure and recycling at the customers’ end. designers, using the latest aluminium alloys means that speed developed using nanotechnology, the range offers plane manufacturers The future lies in complex hybrid and payloads can be increased, while fuel requirements can be three key properties: it is 25% lighter than conventional materials, solutions, so we will also focus on making it possible to optimize the design of structural parts and reduce reduced. Constellium then takes these characteristics to another how aluminium can interface with CO2 emissions; its superior resistance to corrosion and fatigue extends level with its proprietary portfolio of advanced alloys, including other materials in aerospace and heavy maintenance intervals to 12 years; and its 100% recyclability ground-breaking technologies such as AIRWARE™. Further transportation. Finally, we will leverage makes a major contribution to a sustainable aerospace industry. Not surprisingly, leading manufacturers are now turning to AIRWARE™, our global presence. breakthroughs are being targeted in the years ahead, as Constellium develops new products to meet its customers’ evolving rather than composites, for their next generation of aircraft. The technology has been selected by Airbus for its wide-body A350-XWB, needs. Meanwhile, in line with the company’s firm commitment by Bombardier for its single-aisle CSeries and in space transportation to recycling, aluminium is recovered from aircraft that have by SpaceX for its payload launchers. reached the end of their service lives and is melted down for re-use.22 23
    • 13 +3 Beverage, food, automotive... Al ways sustainable #1 #1 #1 worldwide in Europe worldwide in bright rolled in can body stock in closure sheets and pre-treated solar surfaces24 25
    • Materializing ideas Specialty Sheet Laurent Musy, ID CARD President Specialty Sheet hoods and door panels, and heat exchangers. Automakers 2011 SALES VOLUMES €1.633 billion are under growing regulatory pressure to produce ‘greener’, “A record year” 77% Packaging more economical cars. By using aluminium they can achieve 23% Automotive and significant direct weight reductions, which in turn allows them What were the highlights of 2011? customized solutions to reduce fuel consumption and improve performance. This It was our best year on record in four key major trend toward greater economy, lower emissions and areas: safety, which is an absolute KEY CUSTOMERS recycling provides a significant opportunity for Constellium. priority for us; financial performance 3A Composites, Amcor, – with record sales volumes, profits Ardagh, Canpack, Comital, Though these are key growth areas for Specialty Sheet, Constellium is also able to exploit a number of niche markets and market share; product quality; and Crown, Daimler, PSA, industrial performance. We also signed Rexam, ThyssenKrupp, where aluminium’s ability to reflect light, resist weathering and major long-term contracts with key Valeo, etc. provide aesthetic appeal are highly valued. Applications range customers in the can and automotive from the construction industry, solar panels, lighting and segments, which have positioned us cosmetics to industrial parts. well for the future. However, we must be relentless in improving everything A wealth of partnerships we do, in order to meet customer needs. Constellium’s expertise in Specialty Sheet draws on a number How is the market evolving, of key assets: customer relationships, state-of-the-art produc- and what challenges lie ahead? tion facilities at Neuf-Brisach (France) and Singen (Germany), The outlook is positive. We have been advanced R&D center at Voreppe (France), competent people growing in can stock at 6% a year for and partnerships. Constellium works closely with its customers, nearly a decade and we continue to Specialty Sheet Constellium’s Specialty Sheet business unit has two major markets: packaging and automotive. Each market exploits the unique strengths of aluminium to its own advantage. supporting them all the way from early innovation to technical support at their own plants. believe in the strength of this market. Now we expect automotive to continue to grow rapidly. Two key challenges leading the way Light, strong, versatile and infinitely recyclable will be to further stimulate recycling in packaging in Europe, and, in automotive, to combine a process of standardization in key markets For packaging, aluminium provides an excellent barrier to oxygen, light and moisture. Its inherent strength means that less than 100 microns – the thickness of a human hair – is suf- SUPPORTING CUSTOMER INNOVATION: THE FUSION™ BOTTLE – thereby driving costs down – with one of customization, enabling us to optimize solutions and design. ficient for the wall of a beverage can that can be endlessly One of many examples of Constellium’s ability From aluminium beverage cans to car to meet customer needs in Specialty Sheet was What are the key features recycled. Constellium is Europe’s #1 supplier of can body stock, panels and self-cleaning solar reflectors, and is also a major supplier of end and tab stock, food stock the support provided to Rexam, a major customer of your strategy? Constellium’s Specialty Sheet business unit and foilstock. The company is the #1 producer worldwide of in the beverage can segment, in its development Our strategy of sustainable and profitable of the aluminium FUSION™ bottle. growth has four pillars: building good serves a wide range of applications. Its sheet for closures, such as those increasingly favored by wine Constellium’s expertise in Drawn Wall Ironing competitive positions by rigorously leadership positions in different markets producers. Constellium is meanwhile playing a leading role technology helped Rexam to create a highly selecting our target market segments in recycling, a key business and environmental commitment. innovative packaging alternative to glass for the are backed by advanced production drinks industry, ideal for products such as premium and maintaining strong long-term Its plant at Neuf-Brisach in France is the largest fully integrated relationships with selected large and R&D facilities, along with a firm beers. Aluminium’s shatterproof qualities make the customers; operational excellence facility in Europe that combines state-of-the-art casting, commitment to sustainability. rolling, finishing and end-of-life recycling. FUSION™ bottle particularly attractive for stadium venues, nightclubs (commercial and industrial); optimized and concert events, along with more generalized applications. metal management and recycling; and Available in eye-catching matt or reflective finishes, the aesthetic finally growth, which means geographical Cutting CO2 emissions in cars qualities of aluminium provide many opportunities for design by OEMs, while the re-sealable closure offers further advantages for consumers, development and new product For the automotive industry, aluminium’s light weight is proving innovation. This strategy has proven particularly those on the move. Like all aluminium cans, FUSION™ a game-changer in car design, economy and CO2 emissions. successful in the last few years. bottles are infinitely recyclable, for example in Constellium’s plant Constellium’s Specialty Sheet offer focuses on Body In White, in Neuf-Brisach. where aluminium can replace large steel parts, for example, in26 27
    • 13 +3 Lighter, safer & greener Al ong the way #1 in Europe in large profiles and hard alloys28 29
    • Materializing ideas Extrusions & Automotive Structures Paul Warton, DRIVING EFFICIENCIES WITH BMW President Extrusions ID CARD & Automotive Structures The strengths of EAS in solution design and manufacturing are being 2011 SALES VOLUMES deployed for BMW with a Crash Management System and front-end €0.96 billion parts for its 1 and 3 Series platforms. A compact system that features “A step change highly efficient energy absorption and excellent crash performance, 53% Soft alloy extrusions 22% Hard alloys the BMW L7 solution is being produced at Constellium’s highly in productivity” 13% Large profiles automated, state-of-the-art lines at Gottmadingen (Germany) and 12% Automotive structures at its Changchun facility in China. Between the two sites, production What were the highlights of 2011? is scheduled to reach 750,000 sets a year at peak manufacturing. We strengthened our leadership position Drawing on Constellium’s experience and technical expertise in CMS, in crash management systems for the KEY CUSTOMERS the L7 is providing a lightweight and cost-effective solution for BMW’s Audi, Daimler, General Motors, automotive industry with a record year large volume car needs. The significant lightweighting in the 10-model BMW, Porsche, CAF, Jaguar, for orders, with lifetime sales of over family will also contribute to savings in CO 2 emissions. Raynaers, Stadler, Schuco, €500 million, while expanding our facilities Strojmetal, etc. in Europe, the USA and China to match demand. We also announced a new €11 million extrusion press for installation in Singen, Germany. It was a very good year too for hard alloys and large profiles, Supporting transportation, where we are also market leaders. renewable energy and building design Constellium’s pioneering expertise in manufacturing large How is the market evolving, profiles for rail and bus customers has established it as the and what challenges lie ahead? #1 supplier in Europe, where half of the railcars built today are Aluminium use in the automotive sector made of Constellium’s profiles. This market is set to grow as is expanding rapidly and Constellium’s CMS and structural solutions are very Extrusions Constellium’s EAS business unit is based around four main product areas: automotive structures, which are primarily Crash Management Systems (CMS); large extruded profiles, including governments appear increasingly willing to devote resources to improving their rail networks rather than to encourage more car use by building new highways. In the energy market, much a part of that. In extrusion, the key challenge comes from the fact that the & Automotive those used for the bodies of railcars and buses; hard alloy extrusions for industry and soft alloy extrusions for a variety Constellium provides critical solutions including heat sink sys- tems for renewable energy sources and the storage of nuclear competition is ruthless. Unlike other sectors, the extrusion market is more fragmented, more active and carries Structures of applications. Improving car safety performance material during the dismantling of power stations. A similarly broad range of markets is served by the production of hard and soft alloys, where Constellium is the #1 and a lower entry cost. We therefore need to keep optimizing our industrial organization to increase productivity and performance. promising trends Aluminium CMS solutions are playing a major role in making cars safer for drivers, passengers and pedestrians alike in the #3 in Europe respectively. Hard alloy bars are produced for machining into silencer systems or anti-vibration devices for What is your strategy for dealing with that? event of an accident. As a leading innovator in the sector, the automotive sector and other industrial uses. Soft alloys are We have to be equally ruthless in our Constellium is a market leader in several Constellium’s contribution to this key area of road safety is not widely used by the building industry in windows, doors and pursuit of internal efficiency, through areas of aluminium extrusion, drawing confined to manufacturing end products, in the form of light- curtain wall systems. Lean Manufacturing, quality programs weight car bumper beams and crash boxes. Its involvement and operational excellence in all areas. on its in-depth experience and reputation Equally importantly, we need to keep starts further downstream at the design and development Strength in depth for quality. It is also a major player in the delivering great customer service, which stages, where its engineers work closely with premium global Though Constellium’s focus is on extruded products, its expert- lightweighting technology behind making OEMs to find the right solution at a competitive price. This ise also enables the company to provide a range of finishing is not just about delivering on time and on budget, but also about being quick cars safer and ‘greener’. market is particularly service-oriented, and requires a rapid, operations including welding, machining, and surface treatments to respond. Finally, we’ll continue to invest cost-effective response to customer needs. Constellium also to optimize products and reduce customers’ internal cycle times. in our strategic market segments and provides additional safety components including side-impact EAS has industrial strength in real depth, with 10 plants in Europe support our joint customer developments. safety beams and front-end structures. As with other parts in – in the Czech Republic, France, Germany, Slovakia and Switz- aluminium, they enable automakers to simultaneously improve erland  – plus further Automotive Structures facilities in safety and reduce a car’s weight, fuel consumption and carbon the United States and China. R&D support is provided by emissions. Constellium’s advanced center at Voreppe, France.30 31
    • Materializing ideas Recycling CAN RECYCLING FOCUS AT NEUF-BRISACH Neuf-Brisach is a state-of-the-art integrated rolling, finishing and recycling facility. In 10 years, it has more than doubled its recycling capacity, which includes internal and external scrap and end-of-life products from industry and consumers. Large volumes of used beverage cans from across Europe are shipped here and recycled into rolling slabs for packaging applications. Constellium’s Specialty Sheet business unit uses its Neuf-Brisach plant to recycle cans collected through international initiatives and partnerships. These include the “Every Can Counts” initiative with can manufacturers, France’s network of Canibal collector/compactors, which are being installed in cities around the country, and also Returpack in Sweden, where Constellium has an exclusive contract to recover used beverage cans. is increasingly purchasing aluminium scrap and recycling it. RECYCLING: PRESERVING EARTH’S In fact, more than 25% of Constellium’s metal needs are now covered by scrap collected from our customers’ production units NATURAL RESSOURCES or from end-of-life products. Finally, and perhaps most significantly, recycling is the solution for customers who face ever more demanding regulation. Major Recycling Recycling is a vital component of Constellium’s business and a key priority for our strategy moving forward. As a company, and a member of the European Aluminium Association, we are operators in the food and beverage packing industry, for example, are increasingly looking to see which packaging – out of glass, plastic and aluminium – has the smallest carbon footprint. And aluminium’s determined to keep improving our own recycling efforts and to drive up the rates in industry and among consumers. over the lifetime of a product, the case for aluminium is getting stronger by the day. With 64% of all beverage cans recycled Primary Aluminium Secondary Aluminium (Outside scrap) ace card Aluminium scrap, an environmentally-friendly resource Recycling aluminium scrap requires only 5% of the energy in Europe in 2010 – a figure which the industry aims to lift to 75% by 2015 – there is a clear case for sustainability. A can is typically produced, filled, sold, recovered, recycled and returned Recirculating internal scrap needed for producing primary aluminium from bauxite to the shelves in 60 days. In industries such as construction, Aluminium technology wears its green (aluminium ore) and reduces CO2 emissions by 95%. automotive and transportation, recycling rates in Europe have CONSTELLIUM SEMI PRODUCTS credentials with pride. Recycling, which While buying primary aluminium will still be necessary already reached 95% to 100%, helping major corporations (Manufacturing process) is close to 100% in some customer to meet growing demand for aluminium products, Constellium to achieve their sustainability objectives. applications, gives not only an access Customer scrap to an increasing source of raw material, Leading role for Constellium RECYCLING AIRWARE™ Constellium’s own plants make a huge contribution to the com- End-of-life but is also a way to reduce carbon products pany’s recycling efforts – processing about 300 KT of external emissions and improve the sustainability AIRWARE TM is the new low-density aluminium technology scraps. Meanwhile, the company is also pursuing specific industry Customer products of many industries and products. developed by Constellium for aerospace applications. initiatives, such as in aerospace, where a closed loop is secured (Manufacturing process) The recycling of Constellium’s AIRWARE™ alloy chips was initially thought to be impossible. However, by combining with our customers to collect scraps from their production pro- the expertise of teams at Issoire, in conventional alloy cesses. The recycling rate is close to 80%, a significant figure chip recycling, and our Voreppe research center in given that about 12,000 aircraft will reach their end-of-life over AIRWARE™ casting, the company has patented a new the next 20 years. Recycling, as in all industrial and consumer process that makes AIRWARE™ the greenest option on the aerospace market. areas of aluminium, is both a resource for the company and a means of supporting the environment. End products32 33
    • Deliveringexcellence36 Driving excellence in sales and production38 EHS, putting safety at the top of the agenda40 Health and safety at work42 Protecting the environment 35
    • Delivering excellence Interview with Peter Basten …The CBS will transform Constellium into a unique company, equipment and processes. We’ve also completely changed with unmatched quality our purchasing function, which is now centralized rather and service to our customers, than handled at individual plant level, and optimized the transportation arrangements for our finished goods to custom- competitiveness and people ers. Over two years we’ve saved in total €116 million by reducing empowerment.” Peter Basten our addressable cost base (i.e., excluding raw material costs) Driving What is the context for operational excellence in Constellium? Peter Basten: We have a longstanding culture of improving the by more than 5%. Can you give an example of this kind of approach? important since we are no longer a primary producer. So, the sales force needs to be educated about that risk and to work excellence way we work because, as a manufacturing company, every improvement in our production processes has a direct effect P.B.: The scrapping of can body stock coils at our Neuf-Brisach plant sometimes reached many coils a month. We discussed closely with the finance department, who arrange the hedging with brokers, and with the metal purchasing department. As in sales on the bottom line. Our approach is two-fold; to reduce costs and improve the productivity of people and machines; and sec- ondly to improve the top line, with a better approach to the this, and introduced a Daily Management review, which is basic- ally a stand-up meeting at 8.00am where we look at the coils marked for destruction and see how we can save those coils for Lean Sales, the focus is on maximizing the time spent with customers, improving profitability, and minimizing time on order intake, invoices or claim management services. As with all our and production market, better pricing and better service to the customer. or immediately address the problem. As a result, the number of coils scrapped was halved – and that’s a major financial saving. operational excellence programs, we have achieved a great deal, but can always improve. How are you delivering on these? Constellium is committed to excellence P.B.: We have two improvement programs underway – Cost How does BEST fit in? So what’s next? in all aspects of its business, both above Improvement Initiatives (CII) on the cost and productivity side P.B.: BEST has been running for several years and the focus is P.B.: The CBS (Constellium Business System) is the next step. and below the line. Peter Basten, Vice and Building Excellence in Sales Today (BEST) on the revenue on all levers of sales excellence: practices, processes, people We will still have CII in 2012, to really reduce our cost base struc- side. CII is a two-year program that started in 2011 and focuses and performance. In 2011, though, we looked at two particular turally. Then we will launch a comprehensive lean program President Strategy, Business Development on reducing operational, purchasing and SG&A costs, while areas – risk management in our contracts (metal and FX) and throughout all the plants and sites of our company. This program and Business Improvement, discusses BEST looks at all aspects of sales. Lean in Sales. will encompass new standards, new KPIs and new tools the way various programs are deployed to improve our operational performance, from the worskshop to address different areas of Constellium’s What are the main features of CII? Can you tell us more about these? to headquarters. The CBS, which will be led by Pierre Vareille activities. P.B.: It involves a range of measures at plant level; reviewing P.B.: The risk refers to the fact that our customers want a known will transform Constellium into a unique company, with our organization, improving our scrap rates, optimizing main- or fixed price for the aluminium they buy, whereas our cost unmatched quality and service to our customers, competitive- tenance spend and improving energy efficiency. As an example, is based on a fluctuating rate at the London Metals Exchange. ness and people empowerment. It will involve every employee we use a lot of gas and electricity in our furnaces, so we’ve To protect ourselves against potential losses, we take out of Constellium since we will embark together on this exciting undertaken major projects to improve the fuel efficiency of our hedging positions on the futures market. This is particularly but never ending journey.36 37
    • Delivering excellence Environment, Health and Safety This systematic approach applies not only to our own staff, Walter Bürgi, but also to all our contractors. Director Environment, Health and Safety Achieving ISO standards Along with training, EHS FIRST, is supported by rigorous internal “Success so far, audits, which are carried out each year to assess its effectiveness. However, we do not rely solely on the inspections of our own but now for plant and function managers. All our plant ISO certificates the next level” are regularly renewed, following inspections by external audit- ors, while any new plants acquired by Constellium have two How far up the agenda is EHS years to implement EHS FIRST, including these certifications. at Constellium? ISO recognition is important as it shows the world outside that It’s very obvious at management leveI that there is real ownership. If you go Constellium operates to international standards and provides to a meeting, even at corporate level, us with a means of checking that our systems are working the first topic is always EHS. Executive properly. management wants to be regularly updated and plays an active role Safety Breakthrough in further developing this approach. EHS FIRST has clearly proved to be effective. However, this is After all, you cannot run a business not where the story ends. Constellium has launched an ambi- successfully without running it safely. tious new program for site safety, entitled Safety Breakthrough, What’s the idea of Safety which aims to deliver the same kind of step change in safety Breakthrough? improvement as we have already achieved. Building on the We are in the top quartile in the metal foundation of EHS FIRST, Safety Breakthrough will target industries for safety, but that’s no longer EHS For Constellium, the safety of our people is of paramount importance, especially when it comes to operating furnaces at 800° Celsius, molten metal casting, hot rolling and powerful specific areas where we can improve. Rules and Standard Operating Procedures, for example, will be reviewed with the involvement of the people affected by them to ensure they are enough. Our ambition is to be up among the very best across all industries, if not to become the best manufacturing Putting safety extrusion presses. Environment, Health and Safety has long been a priority, notably with a key turning point coming in 2003 sufficiently clear and can be easily applied. Meanwhile, front line managers will be encouraged to drive ever-greater safety company in the world for safety. We want everyone to return safe and well after a day worked at Constellium. By 2015, at the top with the release of EHS FIRST, our company-wide EHS system at all sites, both manufacturing and R&D. It’s a continual improvement process that embraces everyone, from board compliance on the shop floor. EHS is of fundamental importance because it’s about personal safety and the operational excel- lence of the business; and Constellium is committed to both. we want to have reduced yearly accident figures by a factor of six and to have eliminated serious incidents altogether. of the agenda level to teams on the shop floor. And it works. Accidents have been reduced by a factor of four between 2004 and 2011. How do you sum up Constellium’s message on EHS? ENHANCING FRONT LINE SAFETY Constellium recognizes the overriding Internal efficiency, external recognition We have come a long way and been successful, but now we want to achieve importance of Environment, Health While EHS FIRST aims for the internal implementation Much of the focus for the Safety Breakthrough will be on Front Line a step change in safety. The key to of best practices, it also includes external recognition by Managers and their role in driving further improvements in shop-floor and Safety in a dynamic industrial safety. A starting point for this is already underway in the form of an this will be the empowerment certification to ISO standards such as 14000 and 18000. and involvement of all our employees, environment such as ours. A systematic assessment tool that all Front Line Managers at our plants have been Internally, the delivery emphasis is on line management, and completing. The checklist, which covers a broad range of safety because that’s what creates ownership. approach across the company has plant managers in particular. Training is clearly an important It’s not so much about systems anymore, operating issues, is then reviewed with the manager’s supervisor, delivered real benefits in recent years, part of delivering those best practices, with all our managers followed by an agreement on the next development steps to improve because we have those in place. but there is still work to be done. completing a mandatory EHS FIRST Leadership training course their capabilities. The results of the company-wide exercise will It’s about the people and leadership. that lasts two days. In addition, site-specific training is provided be reviewed with sites, Business Units and HR to see if action needs to be taken at corporate or local level, and in what particular form for everyone, while further training modules are available – training or coaching, for example. This EHS decision-making process in areas such as risk management, leadership safety tours, closely follows Constellium’s lean approach – by first analyzing the compliance with rules management, man-machine interface situation and then defining the actions to be taken, step by step. safety and machine safeguarding.38 39
    • Delivering excellence Health and safety Recordable Case Rate development 0.8 0.77 0.71 0.6 0.64 0.4 0.2 0 to maintain this focus on serious injury risks and is deploying 2009 2010 2011 processes in the scope of the Safety Breakthrough that will Includes medical treatment, restricted work empower managers and operational staff to deal with safety and lost time injuries as well as fatalities. Rates matters more effectively. For 2012, the targets are an RCR of are calculated per 200,000 working hours. 0.4 and a maximum of three serious injuries. To achieve these Safety Breakthrough objectives, work is underway to further strengthen safety leadership at all levels, with a particular focus on Front Line Managers. The objective is to improve compliance with procedures, particularly by Serious injury development 8 involving employees in the development and revision of those procedures. Meanwhile, the roles and responsibilities of staff 7 6 involved in risk management are being more precisely assigned 6 to make the process even more effective. Along with increasing 5 4 individual buy-in, sites are also implementing action plans to close any gaps which may be preventing them from achieving 2 Health and safety Safety Constellium’s concern for employee safety is reflected in the continuous improvements we have been able to achieve a safety breakthrough. 0 2009 2010 2011 at work in recent years. In fact, the average Recordable Case Rate (RCR) improvement between 2007 and 2011 was about 17%, For 2012, the targets are Includes serious injuries as per Constellium definition (injuries with a risk of death, major complications or permanent disability). Rates are calculated per 1,000,000 working hours. The health and safety of our employees year on year. Since 2008, these figures include all persons on site – whether our own employees, project contractors or visitors. a Recordable Case Rate is of paramount importance to Constellium. Though the improvement rate has dipped since 2009, it is still of 0.4 and a maximum Though the company enjoys a top-quartile about 8% year on year, while Constellium’s overall performance belongs to the industry’s best-in-class group of companies. of three serious injuries. performance in this area, we are now Health Performance Development There are several reasons for this: looking to achieve a further improvement Implementation of our EHS FIRST Management System 35 31 0.56 in accident reduction at our facilities at all sites since 2003; Health 30 0.50 worldwide. Continuous improvement of the system through specific The key focus in 2011 was on further improving hazardous 25 26 23 0.43 26 20 programs; substance management. The relevant directive was completely 15 Leadership Safety Tours at all sites since 2004. revamped, and the approval process for using hazardous 10 11 11 The main focus in recent years has been on fatality and serious substances was improved, particularly for substances of major 5 injury prevention, involving a range of programs covering man- concern. Users of such substances have to regularly provide 0 machine interface, molten metal safety, contractor manage- evidence that they search extensively for less hazardous 2009 2010 2011 ment, risk management of non-routine activities, working alternatives and, if available, have to switch to them. asbestos-related cases at height, truck driver safety and hazardous energy control. Many sites have implemented their individual employee health other cases In response to a fatal accident in 2010, extensive work was improvement programs (including engineering solutions occupational disease rate (per 200,000 h) carried out in 2011 to improve the stacking of materials, along for noise reduction, elimination of ergonomic risks due to with a guide to best practice. Constellium is determined technical solutions, etc.). Recognized occupational health cases.40 41
    • Delivering excellence Environment Protecting At Constellium, we care about people and the environment. Our commitment to the environment means a great deal more than just having policies on paper: it’s also about promoting Some Initiatives In terms of environmental impact, the work carried out at various sites in Europe and the United States over the course Ravenswood: more efficient furnaces An upgrading of the melting furnace with regenerative burners has delivered a 30% improvement in its energy efficiency. Mean- the environment a culture of respect – a core value of our company, developing sustainable strategies and investing in equipment and training of 2011 shows just how Constellium’s commitment is turned into practical energy-saving initiatives. while, the organizing of a best practices workshop has enabled technicians to optimize the setting of regenerative burners on to reduce the footprints of our facilities. Through technically another unit – producing a 20% increase in energy efficiency. Constellium actively supports sustainable advanced solutions and innovative processes, we work tirelessly Děčín: key improvements in three areas Elsewhere, an upgrade project at the Soaking Pit has enabled development, both through its own to reduce our energy consumption and greenhouse gas A broad range of improvements have been made at our plant what were two separate heat treatments to be combined into initiatives and within the industry emissions. In 2013, the aluminium industry will be integrated in the Czech Republic, improving its energy efficiency and one on the same piece of equipment. into the European Union (EU) Emission Allowance Trading underlining Constellium’s highly practical approach to sustain- organizations such as the European System. These regulations present an opportunity for Constellium ability. A new production workshop lighting project, using the Neuf-Brisach: new burners boost efficiency, save energy Aluminium Association. Improving the to be innovative in preventing and minimizing adverse environ- latest T5 fluorescent tubes, has led to a 70% reduction in energy The installation of oxyfuel burners for the recycling furnace has energy efficiency of our plants, through mental outputs, including waste, emissions and discharges. consumption while improving the actual lighting conditions. improved energy efficiency by more than 40% and increased new equipment, optimization of existing We also look forward to helping our customers to do the same. A new boiler has meanwhile been installed at the plant, saving productivity. An electromagnetic stirrer installed at the end of systems or sharing of good practices, an impressive 2,000 MWh, and further gains in energy efficiency the year on a melting furnace is set to make a 10% energy saving, is a continuous process. Operating within the EU’s regulation for Registration, Evalu- have been achieved by the introduction of variable speed drives while a plant boiler project to recover more heat from the melting ation, Authorization and Restriction of Chemical (REACH) frame- in the casthouse compressors. furnaces’ exhaust will deliver energy improvements of more than work, Constellium has implemented REACH in a coordinated 30% in that area. manner with customers and suppliers. Valais: optimizing plant and equipment A new treatment process at the Steg casthouse has created Singen: focus on melting furnaces and water consumption In addition, our sites are ISO 14001 and OHSAS 18001 certified, energy savings of 140 MWh a year, while optimization of the Alterations to two melting furnaces have been among the main underlining the fact that the environment is at the forefront homogenization furnace has further cut consumption. In the energy saving projects at the Singen casthouse. Water consump- of our concerns for our employees and the wider community. plate shop, annual savings of more than 1.5 MWh have been tion at the plant has been a particular target in recent years, achieved in particular through optimizing pumps. with a reduction of 28% being achieved between 2009 and 2011.42 43
    • Delivering excellence Environmental indicatorsEnergy conservation Waste 2010 2011 Variance 2010 2011 VarianceEnergy (TJ) 11,085 11,155 +0.6% Total Waste (T) 76,284 73,453 -3.8%Specific energy consumption (1) out of which 100.3 97.3 -3.0%(Ref: 100 in 2006) – hazardous waste 73% 78%(1) – non hazardous waste 27% 22% Energy consumption per processed unit, consolidated with a normativeapproach through the different Constellium processes. Total Waste per KT processed 63.73 59.32 -6.9%2010 performance was penalized by a lower activity level compared to 2006.Main energy sources: Natural Gas (57%) and Electricity (36%) Among the Hazardous Waste, salt slags, drosses and skimmings (casting and recycling activities) represent 84% and are subject to recovery of reusable materials.GHG direct emissions Water consumption 2010 2011 Variance 2010 2011 VarianceTotal (KT eq. CO2) 555 536 -3.4% Total Water (cu. m) 25,654,778 26,634,972 +3.9% out of which – ground water 22,503,381 23,445,728 +4.3% – surface water 2,810,997 2,863,480 +1.8% – water from the public net 340,400 325,764 -4.5% Water used per KT processed 21.43 21.51 +0.4% (cu. km/KT) Air emissions 2010 2011 Variance -3.4% -6.9% NOx (metric t) 461.86 476.71 +3.2% Particulate materials (metric t) 148.84 123.43 -16.5% GHG DIRECT TOTAL WASTE PER EMISSIONS KT PROCESSED SO2 (metric t) 320.33 319.27 -0.3% VOC (metric t) 355.33 319.75 -11.1% Coordination: Corporate Communications Department, 2012 Design and production: All Contents Written by: Trevor Huggins (English Service) Photo credits: © Constellium, A. Doyen, T. Lang, D. Sarraute and G. Uféras.
    • Constellium HeadquartersTupolevlaan 41-611119 NW, Schiphol-RijkThe NetherlandsPhone: +31 20 654 9780Washington Plaza40-44, rue Washington75008 ParisFrancePhone: +33 1 73 01 46