EuroWire September 2014

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can start production; how much automotive sheet is needed now; and projected growth in demand of up to 40 per cent over the next decade. Margins for automotive body sheet are as high as $600 per metric ton, six times that of canstock, and Alcoa and Novelis believe that high barriers to entry will protect their hold on the lucrative market for the foreseeable future. But Ms Martell and Ms Mason noted that the rapid shift into automotive sheet illustrates how quickly a hard-fought innovation can spill over and bene t the competition, in an industry struggling with weak margins and overcapacity. (“Alcoa and Novelis Steel for Next Test in Aluminum Auto Race,” 19 th June) A prize worth the striving The rivals to Alcoa and Novelis are moving quickly. Nor have the two leaders been idle. Among developments noted by Reuters are these: † In May, Dutch-based Constellium, which counts Volkswagen among its customers, sealed a joint venture with Japan’s UACJ Corp to produce automotive sheet in Kentucky, starting in 2016. † Aleris, which supplies Audi and Mercedes from its Belgian rolling mill, is in the “ nal stages” of a study looking into starting US body sheet production, Mr Demetriou said. † Aleris and Constellium must contend with production from Alcoa’s new line in Davenport, Iowa, and lines recently commissioned by Novelis in Oswego, New York. Alcoa is also adding capacity in Tennessee and Novelis has another line coming at Oswego. Smaller players with less nancial clout and no automotive experience could also weigh in, entering lower-risk supply deals. The can sheet maker Wise Metals is in talks with Toyota Tsusho Corp and Kobe Steel Ltd to supply coil for body panels and heat exchangers from its Alabama plant. According to Reuters a decision was expected in September. † The sector would appear to justify all this ambition. A study by Ducker Worldwide indicates that automotive aluminium demand in North America will rise to 4.5 million metric tons by 2025. That represents just under ten per cent of current global consumption. “The next ten years,” independent analyst Lloyd O’Carroll told Reuters , “could very well be the best for [aluminium] rolling mills in the industry’s history.” To prod other makers into expanding beyond gasoline-burning cars Tesla Motor o ers its patents free – at small risk to itself “Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters” in California, Tesla Motor Co CEO Elon Musk wrote in a 12 th June blog post. “That is no longer the case.” The company had just announced that it would not take legal action against any company using Tesla patented technology for electric cars.

The Metropolitan Transportation Authority denied any neglect. As reported by the Advance , the MTA said that it has “eyes on the ground” in Shanghai; has engaged welding experts to oversee the work every six weeks; and pledges that the most stringent quality control is being observed. Senior project engineer Carl Redmond, one of a group of MTA o cials to present an overview of the project to the newspaper’s editorial board, asserted that “sophisticated quality control” measures are in place and that any issues with welding non-conformance “get corrected.” “The fabrication of the panels goes through a series of tests,” said Mr Redmond. “We are absolutely convinced the quality is high.” † Last year, the MTA defended its purchase of more than $2 million worth of the Chinese material, saying it was essential to providing greater resiliency in high winds. At the time, Ms Randall recalled, the MTA chairman pointed to an “absence of domestic steel fabricators capable of satisfying the requirements for a project of this scope and complexity.” Tutor Perini hired the Chinese Railway Shanhaiguan Bridge Group to fabricate the panels from steel plate acquired from Angang Steel Group, China’s second-largest steel maker. The structure of the orthotropic deck is to be continuous, without expansion joints that can leak and deteriorate. And, the MTA says, the inch-deep material will be virtually pothole-proof. “We’re one of the top players in Europe in automotive rolled products. We’re looking to duplicate that in the United States.” In an interview with Reuters , Steven Demetriou, CEO and chairman of Aleris International, was expressing the determination of a new player to compete in Detroit with Alcoa Inc and Novelis Inc. This, after the aluminium giants spent decades coaxing US auto makers to overhaul their factories to mass-produce vehicles made of lighter-weight aluminium rather than steel. And Aleris (Beachwood, Ohio) has plenty of company. Allison Martell and Josephine Mason of Reuters supplied context. This year, with the launch by Ford Motor Co of its new aluminium-intensive F-150 truck, the two industry leaders are nally reaping the bene t of their long campaign: a once-a-generation shift in demand for an industry struggling with weak metal demand. But, the reporters wrote: “A handful of up-and-coming rivals are riding their coattails into an industry that could be worth $10 billion in a decade.” Since Ford unveiled the truck’s new design, Constellium NV (Paris) has announced plans to build a US body sheet plant, while Aleris and Wise Metals Group (Muscle Shoals, Alabama) mull a foray into the burgeoning US sheet market. Novelis (Atlanta, Georgia) and Alcoa (Pittsburgh) claim not to be worried about competition, given the several years before rivals The new deck is expected to have a life span of 75 years. Automotive Ford Motor’s launch of its F-150 truck paves the way for upstarts eager to take on Alcoa and Novelis

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September 2014