Washington State Department of Commerce
The Composite Industry
in Washington
Commerce Research Services
October 2011
Research questions
• What are carbon fiber composites, and why are they
important?
• What does the supply chain look like in Washington?
• How does Washington compare to other domestic and
international regions with carbon fiber activity?
Project methodology
• Phase One:
o Descriptive, qualitative and quantitative research
o A “snapshot” of the carbon fiber supply chain statewide
• Phase Two:
o Determine key comparators and inputs that support industry
development
o Compare Washington’s industry to other regions
What are carbon fiber composite materials?
Carbon fiber composites are the “new aluminum”
• Aerospace, transportation, marine, wind energy, and
recreation industries are committed to replacing aluminum
with carbon fiber composites
• Variable tensile strength and durability make composites
highly customizable and useful in a variety of applications,
including consumer products and biomedical devices
Why is the carbon fiber industry important?
Prospect of dramatic growth in the coming years
Global composites market expected to reach
$27.4 billion by 20161
• Low-cost labor countries will not dominate the industry;
the quality of the finished product is most important
• Jobs created will be high-value with many external
multipliers
Why is the carbon fiber industry important?
Why is the composites industry important?
Governor aims to make Washington the
“Silicon Valley of Composites”
• Position state as global leader in automobile, energy, and
consumer composites
• Diversify carbon fiber expertise gained through aerospace and
Boeing’s 787 project
Carbon fiber leaders in Washington
Washington’s carbon fiber supply chain
The Dept. of Commerce has identified over 80 carbon fiber supply
chain locations in Washington3
•
53 composite supply-chain companies headquartered in state
•
13 foreign companies with in-state operations at 17 locations
•
1 major precursor manufacturer: SGL Group
•
•
31 composite manufacturers at 70 locations, including:
o Hexcel, Saint-Gobain, Toray, Triumph
50+ composite fabrication companies at 70 locations, including:
o AIM Aerospace, C&D Zodiac, Fokker Aerostructures
Washington’s carbon fiber supply chain
•
•
25 input manufacturers and 31 input distributors at 65 locations:
o American Autoclave Company, Aronson-Campbell Industrial
Supply, Composites One, Janicki, Heatcon
24 supply-chain locations employ fewer than 50 workers
Primary industries served:
•
40 locations involved in aerospace composites
•
20 locations focus on defense
• 15 locations serve the automotive, energy, and recreation industries
Washington’s carbon fiber supply chain
Industries Served as Percentage of In-State Operations
Aerospace
Defense
Automotive
Recreation
Marine
Energy
Industrial
Tooling
Consumer
Medical
Agriculture
0%
5%
10%
15%
20%
25%
30%
35%
40%
Washington’s carbon fiber supply chain:
Revenue data
Initial revenue estimates4
• Aggregate gross business revenue increased by over 11% from 2009
to 2010
o 2009 revenue: $2.98 billion
o 2010 revenue: $3.32 billion
o 72 of 80 locations included in estimates
o Estimates do not include Boeing or SGL
Washington’s carbon fiber supply chain:
Revenue data
Washington Composite Companies
Aggregate Gross Business Revenue in Billions of Dollars 2000-20104
5
4
$3,317,087,303
3
2
1
$999,950,492
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Washington’s carbon fiber supply chain:
Employment data
Initial employment estimates5
•
Employment decreased by almost 7% from 2009 to 2010
o 2009 employment: 8,494
o 2010 employment: 7,940
o 69 companies out of 84 UBIs included in estimates
o Estimates do not include Boeing and SGL; SGL’s Moses Lake
facility will employ more than 200 workers at full capacity
How are composites manufactured?
Generally, carbon fiber manufacturing includes five stages:
1. Precursor preparation
2. Spinning/stabilizing fibers and producing yarn
3. Weaving fabric
4. Pre-impregnating the fabric (prepreg)
5. Fabrication and the composite part: autoclave molding, vacuum
bag molding (resin infusion), press molding or pultrusion
How are composites manufactured?
The precursor
Raw material is made into long,
thin strands under .01mm in
diameter
• Derived from polyacrylonitrile (PAN),
cellulose, petroleum or tar pitch,
phenolics, and rayon
• 39,280 tons produced globally in 2010
• Global demand will increase to 89,000
tons in 2015 and 134,000 tons in 2019
• Wind energy industry demand will
almost quadruple to nearly 38,000 tons
in 20156
How are composites manufactured?
The precursor
Precursor processing is the most energy-intensive
component of the carbon fiber supply chain:
• Energy accounts for one-third of the manufacturing cost for low-grade
fiber and increases with high-grade fiber
• Total production costs can reach $7.88 per pound of high-grade fiber6
Process uses heat:
•
Oxidative stabilization heats fibers to 572° F
•
Carbonization process heats fibers to 1300°to 1600° F
•
Final processing can use heat as high as 4500° F7
How are composites manufactured?
The yarn
Several thousand strands are
twisted together to form yarn
• Used in prepregs, filament
winding, pultrusion, weaving, and
braiding
• Rated by linear density (weight by
unit length) or number of
filaments per yard count
• Some carbon fiber yarns can
tolerate over 750,000 PSI
(pounds per square inch) before
failure
How are composites manufactured?
Weaving and the prepreg fabric
Yarn is woven into fabric and
combined (impregnated) with
resins and additives to form
prepreg fabric
• Carbon fiber can be combined
with glass fibers, Kevlar,™ nylon,
and polyester
• Prepreg is ready to fabricate
• Due to heat sensitivity, prepregs
based on thermoset require
refrigerated transportation and
storage facilities
How are composites manufactured?
The composite part
Prepreg is molded into
shape to form composite
parts
Prepreg fabric can be
fabricated in a variety of ways,
including (but not limited to):
• Autoclave molding
• Resin infusion
• Press molding
• Pultrusion
How are composites manufactured?
Autoclave molding
Used to manufacture large parts
requiring strong material with
minimal air bubbles (voids)
1. Layers of prepreg fabric are
placed into molds
2. Molds are vacuum bagged and
placed in an autoclave
3. Elevated pressure and
temperature in autoclave cures
composite material8
How are composites manufactured?
Resin infusion
Used to fabricate large or
irregular parts
Design modifications can be
made quickly and economically
1. Prepreg fabric is placed into
two-sided molds
2. Molds are placed in a vinyl or
polyurethane bag and resins
are injected
3. Vacuum is applied to shape
material and eliminate voids
How are composites manufactured?
Press molding
High-volume production of flat
or moderately curved parts
1. Carbon fibers are injected with
resins, and formed into shape
with a heated press
2. Composite part is cooled
How are composites manufactured?
Pultrusion
Used to fabricate tubes and rods
Most efficient fabrication process;
almost entirely automated
80-90% of the cost is materials
High quality and low scrap
1. Yarn is pulled through
thermosetting resins and fillers
2. Material is pulled through a shaped
die, cured, and cut to desired
length9
What does the supply chain look like?
The supply chain can be thought of as “buckets”
1. Raw materials manufacturers, processors, and distributors
2. Inputs / machinery manufacturers and distributors
3. Composites and prepreg manufacturers and distributors
4. Composites fabricators and parts manufacturers
5. Research institutions, workforce training, and trade associations
6. Original equipment manufacturers (OEMs)
7. End users
8. Waste disposal and recycling
Recycling Facilities
Raw Materials Examples
Operational:
Precursor Processing – The Basics
OEMs:
Acrylonitrile
powders
Recycled Carbon
Fibre Ltd.,plastic
Coseley,
UK
1.
Spinning:
Acrylonitrile
powder
is mixed with
Composite Fabrication:
Mitsui Kinzoku, Omuta City, Japan
another
plasticMethyl
like methyl
acrylate
and the
OEMs manufacture original
equipment
ACMAAmerican
Composite
acrylate
Composites
Manufacturer:
plasticspecific
is spun
into fibers
using
composite
materials.
Manufacturers
Association
These
companies
make
End-Users:
parts
for end-users
or OEMs,
though
Potential:
Methyl
methacrylate
they do not
manufacture
composite
fabrics or
original
equipment
Combine
processed
raw
materials
with
Key
Machineryprepreg
and Supplies
for
Composites:
2. Stabilizing:
Fibers
are
chemically
altered
to
be
Some OEMs manufacture
their own
http://www.acmanet.org/
These
are the additives
people,
companies,
and
Adherent Technologies,
proprietary
Albuquerque,
NW
to make prepreg
more thermally
prepreg,
and for
many
fabricate
their own stable
Nitric
acid
Methods
fabrication:
that
use carbon
Firebird
Advancedinstitutions
Materials,
composite
Raleigh,
fabrics
NC fiber-based
Autoclaves
parts.
Some OEMs
use vacuum
contracted
Autoclave
molding,
products
molding,
every
press
day.molding,
TheySC
include
thermal
airlines,
Materials
Innovation bag
Technologies,
Lake
City,
3.inCarbonizing:
Fibers
are teachers,
exposed to
high heat,
companies
specializing
composite
Sodium
hypocholorite
expansion,
and pultrusion
doctors,
golfers,
tennis
*Somenurses,
composite
manufacturers
also
Chemicals:
Silicones,
resins,
adhesives
without
oxygen,
to
expel
non-carbon
atoms
fabrication to manufacture their parts.
players,
hikers,
kayakers,
chefs,
Recycling
fabricate
R&D:
parts,
though not
all police
fabrication
Coating
materials:
epoxy,
nylon,
polyester,
urethane
officers,
artists
and
musicians,
governments,
companies
manufacture
their
own prepreg
Tooling
and fabrication
equipment:
robotics,
4. span
Treating:
Surface
is
slightly
oxidized
to
OEMs using composites
nearly
every
computer
users,
bus and
drivers…everybody!
Aircraft
Fleet
Recycling
composites
Association,
cutting
devices,
vacuum
devices,
molds
mold
improve bonding qualities
industry: aerospace, agriculture,
Boeing, agents,
Hexcel,mechanical
Mitsubishi, Toho
Tenax, Toray
release
presses
automotive, consumer goods, defense,
5. Sizing:marine,
Fibers are coated to protect from
energy, industrial applications,
Finishing products: paints, pigments, sanding
damage
medicine, recreation, and
more!during winding or weaving
products
Supply chain vertical integration
Janicki Industries, Inc.
Sedro-Woolley
SGL Group
University of Washington:
– multiple
locations
Moses Lake, Vancouver
AutomobiliBoeing
Lamborghini
Advanced
Composite
Structures
Hexcel
• Designs
and
builds
precision
tooling
for
Heatcon
Composite
Systems
Laboratory,aerospace,
Burlington
Kent
marine, and
wind
energy and
Tukwila
Christensen
Shipyards
Vancouver
•
Leading
producer
of carbon fiber
Center for Advanced Materials in Transport Aircraft Structures
Electroimpact
transportation
industries
precursor
Mukilteo
• One of the
world’s
leading
composites
•
Heat
blankets,
autoclaves,
curing
Clover
Park
Technical
College
Insitu - Bingen
manufacturers
• Provides
state-of-the-art
engineering
systems,
and
tooldue
kits
forskilled
composite
• Located
in
WA
to
labor and
•
Manufacturer
of
factory
services,
project
management,
and
composite
Edmonds
Community- Anacortes
College
manufacturing
and power
repair
James Betts
Enterprises
hydroelectric
automation
and
tooling
• Prepregs, reinforcements,
molding
fabrication
solutions
for aerospace
compounds,
honeycomb,
tooling
Everett Community College
•
Adhesives,
resins,
prepregs,
Nolimitz Windsurfing – White
Salmon
• adhesives,
Polyacrylonitrile
(PAN)
produced with
materials,
and
carbon
fiber
• R&D lab explores
new
composite
fabrication
primers,
andRayon
release
for
Mitsubishi
in agents
Otake,
Japan
National Resource Center for Materials Technology
Education
•
Designs
automated
fiber
materials and
techniques
composite repair
RainSong Graphite Guitars
- Woodinville
placement
systems,space
post
• Serves
commercial
aerospace,
Olympic College
• PAN
material
turned
processed into
riveting
systems,
automatic
and defense,
wind
energy,
and
•Composite
repair
courses
Westport Shipyards – Westport
carbon
fiber training
in Moses
drilling
machinery,
andLake
industrial
applications
Peninsula College
offered globally
assorted jigs and robotics
• Carbon fibers processed in Landshut,
Western Washington University
Germany for use in the assembly of
BMW’s Megacity vehicle
Washington State University:
School of Mechanical and Materials Engineering
Key comparators:
Washington’s competitive advantages
• Education and workforce: Workforce development supported by an
extensive network of universities, community colleges, and technical
colleges offering materials technology programs. Large regional
institutions researching materials technology.
• Energy: Nation’s leading hydroelectric power producer. Lowest industrial
electricity prices in the nation: $0.022 - $0.042 per kilowatt hour
depending on location.10, 11
• Industry presence: Aerospace, biomedicine, and marine industry
clusters
• Infrastructure: Extensive air, water, railway, and road infrastructure
Education: Washington’s assets12
State
Higher
Education
Institutions
Population
w/HS Diploma
Population
w/Bachelor’s
Degree
Population
w/Graduate
Degree
Washington
78
89.3%
30.3%
10.8%
Alabama
72
81.9%
22.0%
7.7%
Michigan
106
88.1%
24.7%
9.4%
North Carolina
133
83.0%
25.6%
8.6%
Utah
38
90.2%
28.7%
9.1%
United States
66 (Median)
84.5%
27.5%
10.1%
Education: Washington’s assets
US NEWS TOP MATERIALS SCIENCE GRADUATE PROGRAMS13
Rank
1.
2. (Tie)
4. (Tie)
School
Massachusetts Institute of Technology
Northwestern University
University of Illinois– Urbana-Champaign
University of California– Berkeley
University of California– Santa Barbara
Score
4.8
4.6
4.6
4.5
4.5
Rankings Among Comparator States
9.
22.
26.
42.
46.
52. (Tie)
University of Michigan– Ann Arbor
North Carolina State University
University of Washington
Michigan Technological University
Michigan State University
University of Utah
Washington State University
4.2
3.3
3.2
2.7
2.6
2.5
2.5
Education: Washington’s assets
PUBLIC UNIVERSITIES
University of Washington
• BS: Aeronautical and Astronautical Engineering, Industrial Engineering
• MS: Aeronautics and Astronautics, Aerospace, Industrial Engineering
• PhD: Materials Science & Engineering, Industrial Engineering, Mechanical Engineering
• Automobili Lamborghini Advanced Composites Structures Laboratory
Washington State University
• BS: Materials Science & Engineering, Mechanical Engineering
• MS: Materials Science & Engineering, Mechanical Engineering
• PhD: Materials Science & Engineering, Engineering Science, Molecular Bioscience
Western Washington University
• BS: Plastics Engineering Technology, Manufacturing Engineering Technology
Education: Washington’s assets
PUBLIC COMMUNITY & TECHNICAL COLLEGES
Clover Park Technical College
• Certificates: Aerospace Composite Technician, Machinist Apprentice
• AAT-T: Manufacturing Technologies
• AAS-T: Material Science – Composites, Nondestructive Testing
Edmonds Community College
• Certificates: Materials Science Technology
• AAS-T: Materials Science Technology
• ATA: Manufacturing & Materials Technology
Everett Community College
• ATA: Advanced Manufacturing — Composites, Aviation Maintenance
Education: Washington’s assets
PUBLIC COMMUNITY & TECHNICAL COLLEGES
Olympic College
• Certificate: Manufacturing Technology
• AS: Materials Science Engineering, Aeronautical Engineering, Industrial Engineering
Peninsula College
• Certificate: Composite Structures
• AAS-T: Composite Structures
Energy – How Washington Compares14
Average Retail Price of
Industrial Electricity to
Ultimate End-User, 2011
Average Retail Price of
Industrial Natural Gas,
2011
3.85 ¢ / kWh
$9.40 / 1,000 ft2
Alabama
5.85 ¢
$5.55
Michigan
7.35 ¢
$8.61
North Carolina
5.63 ¢
$7.19
Utah
4.68 ¢
$5.46
United States
6.58 ¢
$5.08
State
Washington
International Snapshot:
China’s challenges
The Chinese carbon fiber industry is developing slowly and faces
significant obstacles to growth and expansion
•
•
•
Since the 1960’s, U.S. and European export controls prevented sharing
carbon fiber technology with China due to national security and defense
concerns.
Lack of independent intellectual property rights makes it difficult for Chinese
companies to import technology. Developing technology from “scratch” is
costly.
Most Chinese companies produce low-quality carbon fiber and cannot
produce an equivalent to Toray’s lowest-grade T300 modulus.15
International Snapshot:
China’s challenges
China: Estimated Carbon Fiber Production and
Demand in Tons, 201015, 16
10,000
9,000
9,000
8,000
7,000
6,000
Approximate import
dependency ratio: 84 – 89%
5,000
4,000
3,000
2,000
1,000
1,000
100
0
Domestic Market Demand
Domestic Production
Average Manufacturer
Production
International Snapshot:
Why Japan is competitive
The Japanese carbon fiber industry is well-established, export-centric,
and poised for continued growth. The country is home to world leaders
Mitsubishi Rayon Co., Toho Tenax, and Toray Industries
•
Japanese manufacturers shipped 16,028 tons of carbon fiber in 2010, a 66.2%
increase from 2009.
•
Three Japanese companies – Mitsubishi Rayon, Toho Tenax, and Toray Industries –
account for 50.8% of global carbon fiber production.
•
Japan’s carbon fiber export ratio has expanded continuously during the last two
decades, from 57.2% in 1991 to 78.6% in 2010.
•
The industry is supported by the Japan Carbon Fiber Manufacturers Association, which
is exploring new commercialization opportunities and promoting life-cycle assessment
methods for reducing the industry’s environmental impact.17
International Snapshot:
Why Japan is competitive
Japan: Annual Carbon Fiber
Shipments, in Tons17
Sources
1.
Lucintel. 2011. Growth opportunities in global composites industry 2011-2016. February. Available
online: http://www.lucintel.com/reports_details.aspx?RepId=RPT1007
2.
Sloan, Jeff. 2011. Carbon fiber market: cautious optimism. High-Performance Composites. 1 March.
3.
Washington State Department of Commerce: Research Services carbon fiber supply chain
database.
4.
Washington State Department of Revenue
5.
Washington State Employment Security Department
6.
Boswell, Clay. 2011. Carbon fiber picks up speed. ICIS Chemical Business. 30 May.
7.
Warren, Dave and Cliff Eberle. US Department of Energy. 2009. Precursor and fiber evaluation.
8.
Daniel, Isaac M. 2006. Autoclave molding process. Northwestern University School of Engineering.
Available online: http://www.composites.northwestern.edu/research/processing/autoclave.htm
9.
http://www.pultrusions.org
10. U.S. Energy Information Administration. 2011. Form EIA-826, monthly electric sales and revenue
report with state distributions report.
11. Grant County Public Utility District. 2011. Rate schedule no. 15 – large industrial service. Available
online: http://gcpud.org/customerService/rateSchedules/Rate%20Sch%2015.pdf
Sources
1.
U.S. Census Bureau
2.
U.S. News. 2008. Materials: best engineering schools.
3.
U.S. Energy Information Administration. Available online:
http://www.eia.gov/cneaf/electricity/epm/table5_6_a.html
4.
ReportLinker. 6 Sept. 2010. Trend Analysis on Global Carbon Fiber Market.
5.
Market Research News. 2011. Global and China carbon fiber industry report, 2009-2010. Available
online: http://www.salisonline.org/market-research/global-and-china-carbon-fiber-industry-report2009-2010/
6.
Japan Carbon Fiber Manufacturers Association. 2011. Activities of the statistics working group
(year 2010). Available online: http://www.carbonfiber.gr.jp/english/index.html