quebec’s equipment suppliers cluster: a key contribution to its aluminium industry succe ss

Quebec’s equipment suppliers cluster: A keycontribution to its aluminium industry success

®

April 2013

Malika Cherry

Aluminium ValleyBy : Serge RoyAluminium Valley SocietyAluminium Middle East 2013

Quebec aluminium industry

Saguenay Lac-St-Jean

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Until recently Quebec was home to the largestconcentration of aluminium smelters in the Western world

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Aluminium Valley SocietySpurs 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 goalGuarantee an end-to-end production system in the region.

A success: equipment suppliersin Saguenay-Lac-St-Jean

• Expanding aluminium downstream industry in the Saguenay-Lac-St-Jean area : most successful with equipment suppliers;

• Supplying equipments and services to aluminium smelters : morethen 30 small and medium size businesses;

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• Supporting all areas of activity related to primary aluminiumproduction:

– Casting, Carbon, Reduction, environment, etc.

• Exporting worldwide, including in the Middle East:– Mecfor, Refraco, Equibras, STAS, Canmec

Key factors for success

• Cluster of small and medium size companies;

• Partnership with primary aluminium producers;

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• R&D commitment of primary aluminumproducers;

• Culture of innovation.

Equipment suppliers cluster• Large local

network ofsmallcompaniesdelivering partsand services to

Sthe equipmentsuppliers

• Low logisticcost as aresult.

Combines the benefits of a larger scale plant with theagility of small businesses

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Partnership with aluminiumproducers• Strong partnership with aluminum producers

forged over 70 years of relationship– Understanding primary producers needs andproblems

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– Licensing technologies developed by primaryproducers

– Testing new products in primary producers facilities• Technical and financial support from

aluminum producers to strengthen equipmentsuppliers

R&D by primary producers•

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Saguenay Lac-St-Jean is hometo new AP60 technology (RioTinto Alcan)

Equipment suppliers designproducts for AP-60, with RTA

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Performing in high magnetic fields

Adjusting to larger size of pots,anodes etc.

• Saguenay’s equipment suppliersexpertise is available to developother higher amperagetechnologies

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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 toreduce conversion costs of existing smelters or capitalcosts of new ones.

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Electroslag Welding• Faster welding of busbars (a

fraction of time needed withtraditional 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

Recent innovations from equipment suppliers (1)

Current measurementtool

• High precision, portable andlightweight

• Detects inaccurate anodesettings

• Can be retrofitted to existingsystems

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Vocal Alarm SystemIndicates to the operators areasof concern where intervention isrequired• Anode effect• Security announcements

Portable vacuum cleanerLightweight

Recent innovations from equipment suppliers (2)

HF monitoring systemAutomated robot measuring HFconcentration at the roof vents

Travels on rails

No footbridges nor equipmentrequired to access rooftop ofpotroom

Not subject to electro-magnetic fields

Powered by compressed air

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Recent innovations from equipment suppliers (3)

Electronic measurement offurnace 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

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Larger players : a long history of innovation (1)

Refractory manufacturing,maintenance and engineering

•Modular designs

•Precast refractory shapes and components for carbonbake furnaces

•Quick turnover of carbon bake furnace rebuild•Premium quality floor tiles for industrial applications•Patented side wall thermocouple system

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From mobile to stationary: your globalequipment 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 harshworking environments

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

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New chapter in aluminium: the Gulf.

• The Gulf now: largest capacity of primary aluminiumproduction in the Western world;

• A new chapter in the aluminum industry in the Gulfhas started as new technology is now being developedin the area– The DX reduction technology is the obvious example

• A good network of local equipment suppliers willbecome increasingly important to getting these newtechnologies to market

– Getting beyond process efficiencies with low cost design, easeof operation, low labour requirements, etc.

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An obvious fit• The Quebec equipment suppliers have limited

prospects for growth in their own country and need tolook beyond North-America

• The Gulf area is an obvious expansion area thanks toa large local market and lower cost manufacturingexpansion opportunities

• The Gulf smelters need a stronger base of localequipment suppliers to develop and market their owntechnologies

• The fit is obvious

How can we make it happens now?16