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AMG TITANIUM ALLOYS & COATINGS
GfE Metalle und Materialien GmbH

MASTER ALLOYS
Future Security of Supply With Master Alloy...
Overview
- AMG Titanium Alloys & Coatings (GfE)
- Master alloys for titanium alloys
Alloy systems, raw materials and produ...
AMG Titanium Alloys & Coatings (GfE)
AMG Advanced Metallurgical Group N.V.
(Netherlands)

AMG Graphite
& Silicon

AMG Anti...
Master Alloys for Titanium Alloys
- Alloy Systems What is a Master Alloy?
- A Master Alloy is an alloy containing two (bin...
Master Alloys for Titanium Alloys
- Raw Materials and Production (1) How is a Master Alloy produced?
- Raw materials are m...
Master Alloys for Titanium Alloys
- Raw Materials and Production (2) How is a Master Alloy produced?
1st step
V-Oxide

2nd...
Master Alloys for Titanium Alloys
- Properties Why are Master Alloys used?
- Improve heat and corrosion resistance
- Impro...
Master Alloys for Titanium Alloys
- Applications (1) What are potential titanium alloy applications?
- Master alloy (e.g. ...
Master Alloys for Titanium Alloys
- Applications (2) What are potential titanium alloy applications?
e.g.
Operating temper...
Master Alloys for Titanium Alloys
- Supplier Base Where are approved and certified suppliers located?

Russia
Germany
Nort...
Influences on Future Demand (1)
- Estimated current global master alloy consumption: ~ 6,000 mt/a
- New civil aircraft des...
Influences on Future Demand (2)
- Number of new airplanes will increase – mainly driven by
the Asian/Pacific region expans...
Influences on Future Supply
- Political
(trade barriers, strikes, shortage in energy, etc.)
- Pricing
Raw materials are de...
Influences on Future Demand and Supply
Therefore it may be seen that consumption of titanium alloys
will increase and with...
Necessary Commitments of the Supply Chain
- Suppliers to the master alloy producers are:
expected to provide clear strateg...
Necessary Commitments of the Supply Chain

- Suppliers to the Masteralloy producers -

- We, as master alloy producers, mu...
Necessary Commitments of the Supply Chain
- Master Alloy producer expectations from the Customers
include:
balancing purch...
Necessary Commitments of the Supply Chain
- (cont‘d) Master Alloy producer expectations from the
Customers include:
Intens...
Necessary Commitments of the Supply Chain
Only a close alliance of
… all suppliers to the master alloy producers
… us as m...
Summary
- A master alloy is not a commodity
- Without master alloys there are no titanium alloys
- The titanium industry r...
Thank you for your attention!

GfE‘s team during the 100 year anniversary in 2011

Guido Loeber

Future Security of Supply...
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Future Security of Supply with Master Alloys

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Transcript of "Future Security of Supply with Master Alloys"

  1. 1. AMG TITANIUM ALLOYS & COATINGS GfE Metalle und Materialien GmbH MASTER ALLOYS Future Security of Supply With Master Alloys From a European Point of View ITA conference Las Vegas, October 9th 2013 Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  2. 2. Overview - AMG Titanium Alloys & Coatings (GfE) - Master alloys for titanium alloys Alloy systems, raw materials and production Properties, applications and suppliers - Influences on future supply and demand - Resulting challenges for the supply chain - Summary Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  3. 3. AMG Titanium Alloys & Coatings (GfE) AMG Advanced Metallurgical Group N.V. (Netherlands) AMG Graphite & Silicon AMG Antimony Silicon metal Natural graphite Antimony ore and -trioxide AMG Engineering AMG Processing AMG Mining AMG Mineracao Tantalum ore Niobium ore 3,275 employees 15 countries AMG Titanium Alloys & Coatings Master alloys for Titaniumand Superalloys Ti Aluminides Coating materials Vanadium Chemicals and Oxides Metals-based powders AMG Vanadium Ferrovanadium Ferronickelmolybdenum AMG Superalloys AMG Aluminium Tantalum- and Niobium oxide Chromium metal Ferrotitanium Metals-based powders Aluminium master alloys Additives Revenue 1,216 $m in 2012 AMG ALD Vacuum Technologies Vacuum furnace systems Own & Operate heat treatment facilities Gross Profit 197 $m in 2012 4 markets (energy, aerospace, infrastructure, specialty metals & chemicals) 3 business segments Guido Loeber EBITDA 85 $m in 2012 Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  4. 4. Master Alloys for Titanium Alloys - Alloy Systems What is a Master Alloy? - A Master Alloy is an alloy containing two (binary), three (ternary) or more elements (multinary) with a defined composition, e.g. binary: VAl (for Ti 6-4), MoAl, NbAl ternary: MoAlTi (for Ti 6-2-4-6), VAlFe multinary: AlSnZrMoCr (for Ti 17), AlMoVCrTi (for Ti 5-5-5-3) and is a semi-finished product manufactured for use as a raw material by the titanium industry Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  5. 5. Master Alloys for Titanium Alloys - Raw Materials and Production (1) How is a Master Alloy produced? - Raw materials are metal oxides + aluminum as well as auxiliary materials which will be mixed/homogenized - The alloy is produced via an aluminothermic (thermite) smelting process within a refractory-lined or copper vessel V2O5 + Al Guido Loeber VAl + Al2O3 + heat Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  6. 6. Master Alloys for Titanium Alloys - Raw Materials and Production (2) How is a Master Alloy produced? 1st step V-Oxide 2nd step Al VIM-Process Vacuum Induction Melting AluminoThermic Reduction Process Slag Metal VAl 65:35 Crushing Al VAl 50:50 Crushing Sizing Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA Inspection: - Magnetic separation Visual inspection Blacklight inspection X-ray inspection Automatic sampling Chemical analysis Screen analysis Release by QM
  7. 7. Master Alloys for Titanium Alloys - Properties Why are Master Alloys used? - Improve heat and corrosion resistance - Improve mechanical properties of base titanium … are used to metallurgically create microstructural stabilization providing associated physical and chemical properties … … Master alloys are mandatory in order that titanium alloys meet with the performance targets of the final application … Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  8. 8. Master Alloys for Titanium Alloys - Applications (1) What are potential titanium alloy applications? - Master alloy (e.g. VAlFe) + Ti sponge form an electrode - This electrode will be made molten via a Vacuum-Arcfurnace (VAR) to form a Ti alloy ingot (e.g. Ti 10-2-3) - The ingot will be mechanically processed to a final part e.g. undercarriage / bogie Guido Loeber structural part Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  9. 9. Master Alloys for Titanium Alloys - Applications (2) What are potential titanium alloy applications? e.g. Operating temperature [°C] Ti-64 up to 400 Ti-6246 Ti-834 up to 550 up to 600 disc e.g. blade Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA Titanium Aluminides up to 730
  10. 10. Master Alloys for Titanium Alloys - Supplier Base Where are approved and certified suppliers located? Russia Germany North America Guido Loeber China Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  11. 11. Influences on Future Demand (1) - Estimated current global master alloy consumption: ~ 6,000 mt/a - New civil aircraft designs require much more titanium alloys per aircraft than past models 10 12 11 9 B 787 9 7 B 777 wt.-% Ti 8 wt.-% Ti 7 6 B 757 5 4 1 0 1950 B 737 Guido Loeber 1990 A 380 A 300 A 340 A 330 A 321 1 B 727 B 707 1980 A 318 A 320 2 B 747 1970 5 3 B 767 1960 6 4 B 747-SP 3 2 A 350 8 10 2000 2010 2020 0 1970 1980 1990 2000 2010 2020 Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  12. 12. Influences on Future Demand (2) - Number of new airplanes will increase – mainly driven by the Asian/Pacific region expansion … - … but the general tendency is to use more Ti alloy scrap - Performance targets of particular titanium applications may require a shift to different types of titanium alloys which requires different types of master alloys … - … but there may be technological changes in materials (composites, Ti Aluminides) which will decrease the usage of master alloys Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  13. 13. Influences on Future Supply - Political (trade barriers, strikes, shortage in energy, etc.) - Pricing Raw materials are depending on other industry sectors (e.g. Vanadium quotation is linked to the steel industry) - Currency exchange rates (USD, EUR, RMB, REAL, etc.) - Strategic focus of the approved and certified suppliers - New market participants Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  14. 14. Influences on Future Demand and Supply Therefore it may be seen that consumption of titanium alloys will increase and with it the importance of master alloys will be unquestioned … … but at the same time the supply chain may be subject to external influences. Is the supply chain in danger and is there a need for action? Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  15. 15. Necessary Commitments of the Supply Chain - Suppliers to the master alloy producers are: expected to provide clear strategic commitments supporting the titanium industry with sustained supply of consistent quality materials encouraged to show more flexibility regarding pricing (fixed prices, formula prices, settlement basis, etc.) encouraged to have the willingness to share commercial risk (e.g. consignment stock, payment terms, etc.) Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  16. 16. Necessary Commitments of the Supply Chain - Suppliers to the Masteralloy producers - - We, as master alloy producers, must: balance the expectations of our customers and the capabilities of our raw material suppliers while taking into consideration our own constraints provide our products to specification, on time and at a price level manageable for all participants of the supply chain be innovative in developing technical solutions for present and future master alloy requirements as well as leading cost reduction programs Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  17. 17. Necessary Commitments of the Supply Chain - Master Alloy producer expectations from the Customers include: balancing purchasing orders within the approved and certified supplier base understanding and accepting the influence of currency exchange rates outside the USD economic area with regard to master alloy pricing Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  18. 18. Necessary Commitments of the Supply Chain - (cont‘d) Master Alloy producer expectations from the Customers include: Intensifying cooperation with the master alloy producers, for example, by: - early involvement in R&D activities - providing reliable mid/long term forecasts bringing us to a position of adjusting capabilities and capacities at the right time…because we cannot simply „turn on and off“… Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  19. 19. Necessary Commitments of the Supply Chain Only a close alliance of … all suppliers to the master alloy producers … us as master alloy producers and … all of our customers will increase the security of supply for the future! Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  20. 20. Summary - A master alloy is not a commodity - Without master alloys there are no titanium alloys - The titanium industry requires a healthy master alloy supplier base - Commitments along the supply chain are essential, at the end of the day, the message … „prices must go down“ is much too simple … Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
  21. 21. Thank you for your attention! GfE‘s team during the 100 year anniversary in 2011 Guido Loeber Future Security of Supply With Master Alloys From a European Point of View October 6-9, 2013 • Caesars Palace, Las Vegas, Nevada, USA
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