Quebec’s equipment suppliers cluster: A key contribution to its aluminium industry success Aluminium Valley April 2013 Malika Cherry By : Serge Roy Aluminium Valley Society Aluminium Middle East 2013 ® Quebec aluminium industry Saguenay LacSt-Jean Until recently Quebec was home to the largest concentration of aluminium smelters in the Western world 2 Aluminium Valley Society Spurs Growth Our mission Develop the Aluminium Valley® through the support of promising investment projects and by creating value. Our vision To make sure Aluminium Valley® is known and recognized as a worldwide aluminium industry leader. Our approach • Support the growth of SMEs already established on the territory; • Simplify the implementation of new ones. Our goal Guarantee an end-to-end production system in the region. 3 A success: equipment suppliers in Saguenay-Lac-St-Jean • Expanding aluminium downstream industry in the Saguenay-Lac-StJean area : most successful with equipment suppliers; • Supplying equipments and services to aluminium smelters : more then 30 small and medium size businesses; • Supporting all areas of activity related to primary aluminium production: – Casting, Carbon, Reduction, environment, etc. • Exporting worldwide, including in the Middle East: – Mecfor, Refraco, Equibras, STAS, Canmec 4 Key factors for success • Cluster of small and medium size companies; • Partnership with primary aluminium producers; • R&D commitment of primary aluminum producers; • Culture of innovation. 5 Equipment suppliers cluster S • Large local network of small companies delivering parts and services to the equipment suppliers • Low logistic cost as a result. Combines the benefits of a larger scale plant with the agility of small businesses 6 Partnership with aluminium producers • Strong partnership with aluminum producers forged over 70 years of relationship – Understanding primary producers needs and problems – Licensing technologies developed by primary producers – Testing new products in primary producers facilities • Technical and financial support from aluminum producers to strengthen equipment suppliers 7 R&D by primary producers • Saguenay Lac-St-Jean is home to new AP60 technology (Rio Tinto Alcan) • Equipment suppliers design products for AP-60, with RTA • – Performing in high magnetic fields – Adjusting to larger size of pots, anodes etc. Saguenay’s equipment suppliers expertise is available to develop other higher amperage technologies 8 Culture of innovation • High labor costs and small local market have led to: – innovation as a competitiveness strategy; – Innovation as an adaptation tool. • Large portfolio of new products have been developed to reduce conversion costs of existing smelters or capital costs of new ones. 9 Recent innovations from equipment suppliers (1) Electroslag Welding • Faster welding of busbars (a fraction of time needed with traditional technology) • Lower busbar repair cost • New designs for busbars possible Billet inspection • No contact technology • Replaces manual inspection • Can be retrofitted to existing systems • At the testing stage Current measurement tool • High precision, portable and lightweight • Detects inaccurate anode settings • Can be retrofitted to existing systems 10 Recent innovations from equipment suppliers (2) HF monitoring system Automated robot measuring HF concentration at the roof vents Travels on rails Vocal Alarm System Indicates to the operators areas of concern where intervention is required • Anode effect • Security announcements Portable vacuum cleaner Lightweight No footbridges nor equipment required to access rooftop of potroom Not subject to electro-magnetic fields Powered by compressed air 11 Recent innovations from equipment suppliers (3) Electronic measurement of furnace weight •Tilting furnaces •Accuracy of 250 kg Optimization of casting centres •Integration of best available technologies •Low cost automation •Optimization of mold density •Mold design •Increases % “right first time” charge analysis •Short payback 12 Larger players : a long history of innovation (1) From mobile to stationary: your global equipment supplier • Wide range of vehicles – articulated (MVA), rigid (MVR), haulers (MTA-MTC), remote controlled (MVT) •Designated equipment for cast house, pot rooms, carbon •Quick-connect design for multipurpose vehicle •Heavy duty long lasting equipment adapted for harsh working environments Refractory manufacturing, maintenance and engineering •Modular designs •Precast refractory shapes and components for carbon bake furnaces •Quick turnover of carbon bake furnace rebuild •Premium quality floor tiles for industrial applications •Patented side wall thermocouple system 13 Larger players: a long history of innovations (2) Potlining related products •Complete range of products related to potlining •Heating box for lining paste •Cathode bar extractor •Preheating system for CAFD •Platform 14 New chapter in aluminium: the Gulf. • The Gulf now: largest capacity of primary aluminium production in the Western world; • A new chapter in the aluminum industry in the Gulf has started as new technology is now being developed in the area – The DX reduction technology is the obvious example • A good network of local equipment suppliers will become increasingly important to getting these new technologies to market – Getting beyond process efficiencies with low cost design, ease of operation, low labour requirements, etc. 15 An obvious fit • The Quebec equipment suppliers have limited prospects for growth in their own country and need to look beyond North-America • The Gulf area is an obvious expansion area thanks to a large local market and lower cost manufacturing expansion opportunities • The Gulf smelters need a stronger base of local equipment suppliers to develop and market their own technologies • The fit is obvious How can we make it happens now? 16