Our Answer to Future Automotive Constraints Abu Dhabi, September 10, 2014

Transcription

1 Our Answer to Future Automotive Constraints Abu Dhabi, September 10, 2014 Jean-Martin Van der Hoeven, Chief Marketing Officer, ArcelorMittal Europe Flat Products

2 Key contents Our Answer to Future Automotive Constraints Drivers & Challenges for Steel ArcelorMittal innovation at work: new products & new steel solutons Our committment to the automotive industry: we turn our solutions into reality!

3 Our Answer to Future Automotive Constraints Drivers & Challenges for Steel

4 Auto production grows to 100 M vehicles by with 30% vehicles produced in China - contrasted market recovery Europe (+ Spain/East) China: from 1 M cars in 2000 to 30 M in 2020 (1/3 of global production) Europe: market recovery; back in 2018/2020 to pre-crisis 2007 level New emerging markets: MENA, Asean, Andes Global platform development

5 Global regulation drives the push for weight reduction Ambitious targets for the next 5 to 10 years Powertrain efficiency and weight reduction: the 2 main ways to reach the C0 2 target. Europe already at 127 g CO 2 /km in 2013 and 15% vehicles registered in 2013 below 100g C0 2 /km. ArcelorMittal continues to respond to demanding regulations offering affordable and safe lightweight steel solutions

6 Lower steel intensity due to lightweight steel solutions, alternative materials and design improvement Optimized design and improved assembly process will also lead to steel intensity reduction. -33 Kilos/veh Volkswagen is using high strength steels in increasing amounts. It is a very cost effective way of reducing weight. Using new innovations in steel engineering it is possible to reduce weight without the use for more costly materials such as aluminium and carbon fibre. Armin Plath, VW s Head of Materials Research and Manufacturing Source: Article Volkswagen Replaces Aluminium With Steel To Save Weight And Money, written by Bertel Schmitt on January 24, 2013 for the Truth About Cars website. Weight of new Peugeot 308 BIW is decreasing by 70 kilo: 20 kilo linked to AHSS; 5 kilo linked to alternative materials but 45 kilo linked to optimized design, resizing of the car and advanced assembly process.

7 Our Answer to Future Automotive Constraints ArcelorMittal innovation at work: new products & new steel solutons

8 Innovation keeps steel as the material of choice I II III Usibor 1500P: first serial use of hot stamping of coated boron steels, patented by ArcelorMittal Generation 2: TWIP, X-IP Generation 3: AHSS solutions Generation 1, phase 3: Usibor for hot stamping Generation 1, phase 2 AHSS: Dual Phase, TRIP Steels, Martensitic etc. Generation 1, phase 1: HSLA, HSS Steel solutions developed to bring answers to the new requirements From a local player to a global provider of steel solutions ArcelorMittal Body Concept S-in motion S-in motion Electric Vehicles Heavy Trucks Light Commercial Vehicles S-in motion Light Pickup ArcelorMittal s leadership as solution provider recognized by EU/ North America OEMs

9 Continuous innovation in steel grades allows permanent weight reduction opportunities for OEMs Weight reduction in kg (Veh segment B) Target kg Requires new solutions Target kg Reachable with existing steel solutions (in particular massive use of hot stamping U1500P (included in wet zones) MS1500, U1500P Ductibor 500, door-ring, openings frame Upgrade with AHSS (TRIP800, DP1180, ) U2000, Low density Duplex, FeTiB2 -Integration of functions -More ambitious 3rd generation AHSS (HSHF) 31% BIW + Closures weight decrease in this extreme case! Product development portfolio 0 T TRIPDUAL MS1500 USIBOR2000 FeTiB2 3rd generation AHSS (Fortiform SF) Typical alignment of AM product development with OEM weight saving objectives

10 S-in motion A catalogue of solutions for weight reduction A catalogue of 60 steel solutions using: Advanced High Strength Steels Hot stamping Laser welded blanks Tubular products Long products Enabling: to save up to 73 kg or 19% of a typical C-segment vehicle s body-in-white and chassis weight to deliver a 13.5% reduction in CO 2 equivalent (eq) emissions during the vehicle s use-phase to achieve these savings at neutral cost without compromising the vehicle s safety performance Choose the best weight saving / cost compromises

11 S-in motion key figures and impact S-in motion roll-out in Catalogue of solutions for weight/cost savings: Up to 20% weight savings Reduction in Green House Gas (GHG) emissions during the phase of the whole vehicle -6.2 g CO 2 / km 31 customer events held in Europe, Asia, North America and South America at main car makers and Tier 1 suppliers 8,500 registered visitors (275 on average per event, incl. top management, purchasing, design engineers, ) 2013: events at European truck makers 3 main impacts on market Increased collaboration with OEMs on co-engineering activities Contribution to significant growth of Advanced High Strength Steels in the car industry Increase of our patented solutions (e.g. Usibor and Laser Welded Blanks) S-in motion was the single largest initiative of this kind worldwide

12 S-in motion weight savings ArcelorMittal patented solutions For the lightest Body-in-White concept: 16 parts made with laser welded blanks Usibor /Ductibor 35% of S-in motion solutions include Laser Welded Blanks (LWBs) LWBs offer the most effective way to optimize part weight and crash performances LWB Ductibor 500P / Usibor 1500P LWB Usibor 1500P / Usibor 1500P 11 *PHS= Press Hardening Steel

13 S-in motion light commercial vehicles New CO 2 legislation with penalties Baseline scope studied: 195kg 84% mild steel & HSS About 120 parts upgraded 2010 LCV average CO2 emissions Lightweight solution mass: 158kg 82% VHSS & UHSS 175g/km 2014 target 147g/km 2020 target HSLA_360 3% HSLA_340 1% Baseline material distribution FB_590 9% HSLA_300 20% DP_590 6% Mild Steel 24% HSLA_280 33% IF_300 4% Mass saving 19% (37kg) neutral cost ICE variant material distribution MS_ % DP_1180_HY 4% CP_ % USIBOR 6% Mild Steel 7% M_800 5% HSLA_280 5% DP_780 12% HSLA_300 Ductibor 6% DUCTIBOR 1% DP_590 9% FB_590 3%

14 S-in motion pick-up trucks ArcelorMittal Solution Hot stamping parts Weight kg weight saving vs baseline kg Weight saving vs baseline Cab % Front doors % Rear doors % Box % Tailgate % Upper body total % Frame % Underbody total % Total scope % 22kg additional weight saving with emerging grades

15 Among most efficient solutions: hot stamping + laser welded blanks Weld Thickness 2 mm Strong metal, e.g. Usibor 1500 Thickness 1 mm Soft metal, Ductibor 500 Laser welded blanks Ultra High Strength thanks to hot stamping LWB: The right steel grade and the right thickness at the right place

16 S-in motion BIW solutions for electric vehicles Redesign body-in-white (BIW) to accommodate the larger powertrain and create the battery protection Possible through extensive use of AHSS for BIW (58% up from 35%) Achieved BIW weight reduction of 30 kg (11%) compared to the baseline vehicle Only 10kg weight increase vs S-in motion ICE lightest solution despite heavier powertrain and need of the battery pack additional protection ICE power train weight:~220kg EV power train weight:~367kg

17 New electrical steels for electric motors Lightweight solutions for electric vehicles New high-performance steels for electric motors Launched in June 2012, icare is ArcelorMittal s new range of innovative (i) and environmentally friendly (e) electrical steels for the CAR of tomorrow. This icare offer is supported by 90 million investment on the annealing line in St. Chély d Apcher (France) Volume capacity: 120 kt/year, expandable to 250 kt/year to meet future demand Start production of new line: May main steel types: Save: for very low losses, extending the car s range Torque: for the highest levels of mechanical power output, boosting acceleration Speed: high strength electrical steels for high speed rotors, increasing performance at high speeds ArcelorMittal is positioning for the next generation of electric cars

18 Our Answer to Future Automotive Constraints Our committment to the automotive industry: we turn our solutions into reality!

19 Global presence global reach worldwide supply - proximity to OEM decision centres Automotive production facilities Alliances & JV Commercial Teams Vehicle production 2012 > 20 M veh > 15 M veh & < 20 M veh > 10 M veh & < 15 M veh > 5 M veh & < 10 M veh > 2.5 M veh & < 5 M veh > 1 M veh & < 2.5 M veh < 1 M veh Global automotive manufacturing presence through ArcelorMittal facilities, alliances and joint ventures Proximity to the customer by global presence of commercial teams and resident engineers Global distribution network *Sources: LMC forecasts ( ) for Western & Eastern Europe & Russia; IHS forecasts ( ) for all other regions. Personal cars and light commercial vehicles < 6 t ArcelorMittal is serving globally while increasing emerging region exposure 18

20 Downstream network: AMTB Americas Concord, Ontario, Canada Pioneer, Ohio, USA Murfeesboro, Tennessee USA Delaco Tonananda, NY USA (JV) Delaco Dearborn, Michigan USA (JV) Summit, Mexico (JV) San Luis Potosi, Mexico New project investigation Brazil Europe Birmingham, UK Bremen, Germany Neuwied, Germany Liège, Belgium Genk, Belgium Gent, Belgium Lorraine, France Senica, Slovakia Zaragoza, Spain Merelbeke, Belgium (Head office) Bamesa BAMI, Turkey (JV) India Arcelor Neel Tailored Blank Chennai (JV) Arcelor Neel Tailored Blank Pune (JV) China Shanghai Baosteel & Arcelor Tailor Metal (JV) New project investigation Australia ArcelorMittal Tailored Blanks Adelaide

21 Downstream network: Distribution + Stampers +Tubular offer NAFTA Gonvauto: Mexico Gestamp: Mexico USA ArcelorMittal: Canada: Brampton, Hamilton, London, Woodstock USA: Marion, Plymouth Mexico: Monterrey Western Europe ArcelorMittal Distribution Solutions: Belgium France Germany CLN: Italy Gonvarri: Germany Portugal Spain Gestamp: France Germany UK Portugal Spain Sweden Spain UK Magnetto: France Germany Italy ArcelorMittal: France: Chevillon, Vitry le François, Hautmont North Africa Bamesa Tanger: Morocco Turkey & Eastern Europe ArcelorMittal Distribution Solutions: Poland ArcelorMittal / Gonvarri JV: Slovakia ArcelorMittal / Otel Bamesa JV: Romania Bamesa Çelik: Turkey Gonvarri: Poland Magnetto: Slovakia Gestamp: Hungary Poland Russia Magnetto: Turkey Poland Turkey ArcelorMittal: France: Chevillon, Vitry le François, Hautmont Asia ArcelorMittal Distribution Solutions: China India Gestamp: China India Korea South America ArcelorMittal Distribution Magnetto: Solutions: Brazil (AMG + AMM) Argentina Gonvarri: Argentina Brazil Ferrosider: Argentina Gestamp: Argentina Brazil South Africa Toyota Tsusho SA Processing SA Steel Service Centres Stampers Tubular Partnerships with stampers as well as downstream solutions in service centres

22 AM/NS Calvert A key strategic investment for our automotive franchise Premier global hot-rolling and finishing facility $4 billion total investment, with equipment commissioning still ongoing (first coil in 2010) HSM production > 300Kt/month, 2014 YTD Commissioned galvanizing lines currently running full ArcelorMittal and Nippon Steel Sumitomo Metals Industries closed $1.55 bn acquisition of TK s Calvert Alabama facility on February 26, 2014

23 VAMA overview LYS Hot Strip Mill Auto steel consumption accessible to VAMA target products (market size in MT) BYD, Chan gan, Suzu ki, Target areas and markets CFM A & FAW- VW Hot Rolled Coils Daiml er Beij & Nissa ing n V A M A L VAMA: Valin ArcelorMittal Automotive SAIC, o Toyot u a, di GM, Honda, Nissa n & BYD FAW- VW & BMW Geely, VW, GM, KIA, Changfe SAIC ng, & Chery Fiat, DPCA, Dongfen Gua ngzg, hou Honda, JMC & Suzuki VAMA PLTCM 1.5 M tonnes Coupled pickling / tandem Capacity extension to 2.3 M tonnes possible 2 x walking beam reheat furnaces, reversing rougher, coil-box, 7 stand finishing with advanced laminar flow cooling. Dimensions: mm thickness range, width range mm Capacity: rated at 4.5 M tonnes Facility commissioned in Q Certified ISO/TS VAMA Mixed CAL 1 M tonnes Thickness mm Width up to 1,850 mm Coil weight 30t Includes AlSi pot, exposed capable TS up to 1200 MPa VAMA CGL 0.5 M tonnes Thickness mm Width up to 1,850 mm Coil weight 30t Includes GI and GA pot, exposed capable TS up to 1000 MPa US $850 M, 1.5 MT state-of-the-art production facilities (expandable to 2,5 MT) Located in Loudi City, Hunan, well positioned to serve a growing market 22

24 Our steel the fabric of life Through innovation, steel remains the material of choice