group material technology | gmt china start-up …...electroless nickel (dnc) room for further...

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Group Material Technology | GMTCHINA START-UP PROJECT

Speaker: Oliver N. Jäger CEO Group Material Technology

IHAA 15th Technical

Symposium

Weehawken, NJ, 25 September 2014

GMT goes China

Content Page:

Introduction to Aalberts Industries - GMT 3 - 7

Background and Market Conditions 8 - 10

Motivation to Invest 11 -13

Executive Summary: China Start-Up 14 - 15

Main Challenges 16 - 17

Project Realization and Major Project Steps 18 - 20

Location and Offered Processes 21 -36

IntroductionAalberts Industries

Group Material Technology- Company Network -

Decentralised structure with significant operational management responsibilities small holding; 13 employees

Equity ratio: 52,8 %

Small team of group managers reporting to the holding

Aalberts Industries N.V.Aalberts Industries N.V.

Aalberts Industries – Organization

Description of Aalberts´ Business Segments

Group Material Technology Company NetworkA Group within Industrial Services

Surface treatment Heat treatment / Vacuum Brazing

GMTGroup Presence

= Heat treatment = Surface treatment

USA

China

Turnover: approx 300m €p.a.

Sites: 60, o/w 55 in Europe

Employees: approx 2,800

North Sea

Atlantic Ocean

Mediterranean Sea

Europe

Background & Market ConditionsGreenfield Project in China

Mastertitelformat bearbeiten

China ApproachBackground & Market Research

Passenger car production ramped up significantly in China during the last decades and further growth is still anticipated

Due to local content requirements a local supply chain will be established

GMT/AHC was asked by their current customers to be part of the Chinese supply chain

Further market opportunities will be offered by Chinese suppliers

Assuming a comparable market share as in Germany, would let to a turnover of around USD 100 million

Key Facts

* Source chart: diverse automotive statistics

Strategic View China ProjectSix Major Economic Automotive Zones

Chongquing, Chengdu, Liuzhou:CHANA (Chang´an Ford Mazda, Chang´an Suzuki etc.), Lifan, Sichuan FAW Toyota, FAW-VW Chengdu, SAIC-GM-Wuling, Dongfeng Liuzhou, etc.

Wuhan, Zhengzhou, Xiangtan:Dongfeng (Dongfeng Peugeot Citroen, Dongfeng Honda), Great Wall, Geely Xiangtan etc.

Guangzhou, Shenzhen, Haikou:GAIG (Guangqi Honda, Honda China, GAC Toyota), Dongfeng Nissan, BYD, Hafei Shenzhen, Haima, etc.

Shenyang, Changchun, Harbin:FAW Group (FAW-VW, FAW Car, Sichuan FAW Toyota Changchun), Brilliance Jinbei (Brilliance BMW), Shanghai GM Norsom, Hafei, etc.

Beijing, Tianjin, Dalian, Jinan, Yantai:Beijing Benz, Foton, FAW Toyota, Tianjin FAW Xiali, Chery Dalian, Siontruk, Shanghai GM, etc.

Shanghai, Nanjing, Wuhu, Ningbo:SAIC (Shanghai VW, Shanghai GM, etc.), SAIC Nanjing, Chery, Geely, etc.

Yangtse River

Delta Zone

Motivation to Invest

Motivation to Invest

In general:

Development and growth of Automotive Industry*

Localization

Market related:

Mainland China does not have a nationwide service network in the areas of technical, functional surface treatment as well as for the heat treatment of metals established reliably; only supplied by smaller local suppliers

Steady increasing automobile production in China, especially in the field of premium cars

Comparable price structure with the existing one in Europe

Market conditions and needs correspond with our experience and high-tech solutions in the premium segment

* German Automotive manufacterer are currently represented with approx. 200 locations in China

Key Considerations

Initiate business in China by implementing surface treatment

Automotive shall be initial focus, starting with established European partners, followed by domestic Chinese customers

Participate in the strongly growing automotive market

– mid-term production estimate: 30 Mio. cars p.a.

– compared to 2010: 12,9 Mio. cars

Locate the plant in the Yangtze River Delta region for market entry associated with manageable risk

HART-COAT® to be implemented first followed by DURNI-COAT®

Further growth includes the introduction of heat treatment; stamping might offer an additional growth potential

Area required is 25 mu (16,667 m2 / 16.67 ha) + 25 mu (onwards)

Executive Summary- China Start-Up -

Hangzhou AHC Surface Treatment Ltd.Executive Summary

Group Material Technology has set up a state-of-the art plating plant in the vicinity of Shanghai

Main processes are Hart Coat (HC) and electroless nickel (DNC)

Room for further extension e.g. for corrosion protection on the basis of zinc/zinc-nickel is given

AHC China will provide full coating services for applications in automotive, aerospace and mechanical engineering

SOP: HC line in May 2014 / DNC line in July 2014

First orders acquired in June 2014

Key FactsKey FactsLocationLocation

Hangzhou

Shanghai

Ningbo

Nanjing

Main Challenges

Main Challenges

Local authorities

Land purchase

Inflation exchange

rate

Budget adjustment

Different mentality and

culture

Surface treatment

permit

Project Realization & Major Project Steps

First Activities in 2010/2011

Automotive market survey, including visits to BMW, Geely Volvo, General Motors, Mercedes and Volkswagen

Analysis of main automotive T1 suppliers, including visits to Bosch, TRW, INA, Continental, Voith, Kolbenschmidt etc. as well as domestic suppliers, e.g. Bohai Piston and Wanxiang

Select potential development zones in the Yangtze River Delta (Shanghai, Nianjing, Hangzhou, Ningbo)

Select potential plating parks (rental basis, no own plating license)

Make contact with reference companies located in the Development Zones

Compile relevant environmental data and achieve assessment by the Environmental Protection Bureau as to whether the GMT project will be granted

First & second round of interviews (> 10 candidates) for MD China

Project Management Schedule

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1 Market analysis

2 Preparation

3 Board approval

4 Project Kick-Off

5 Management recruitment

6 Selection of Development Zone

7 Land purchase

8 Selection of equipment supplier/

general constructor

9 Authorities´ approval

10 Building / construction

11 HC - Order

12 - Installation

13 - SOP May

14 DNC - Order

15 - Installation

16 - SOP July

17 Waste water - Order

18 - Installation

19 - SOP May

2011 2012 2013 2014PROJECT PHASE

*

*

*

T

O

D

A

Y

*

*

*

Location and Offered Processes

Location Hangzhou Building – General Layout

Main plant characteristics:

The company will be able to employ 300 employees.

The layout has been optimized with respect to production flow and minimum distances between warehouse and process equipment.

The plant sets up its operation automatically, incl. laboratory, quality assurance and testing.

The waste water management complies with highest international standards.

Total floor space covered is 7590 m2 (66 m x 115 m)

General Production LayoutGeneral Production Layout

offices/ administration

goods warehouses

DNC plant

HC plant

extension area

waste water treatment

HC manual line

laboratory line

HC Plant - Layout OverviewSupplier: PAL

DNC Plant – Layout OverviewSupplier: PAL

Location HangzhouConstruction Process

Production Hall

Street View

Location HangzhouHART-COAT® Production Line

Location HangzhouElectroless Nickel / DURNI-COAT® Production Line

Location HangzhouWaste Water Treatment

Location HangzhouManual Line

HART-COAT®

Industrial Coatings for Aluminium Alloys

Plating window Running direction 600 mm Width 3.000 mm Depth 1.200 mm

Processes available: Hart Coat® (3 bathes) Technical Eloxal (1 bath) Blackening Cold Sealing Further extension possible

Aluminium alloys to be used: Wrought aluminium (Die)cast aluminium With Cu content up to 6 wt.%

Equipment DetailsEquipment Details

Outstanding hardness

High electrical insulation

Excellent adhesion

High thermal insulation

Good dimensional accuracy

Optimum anti-friction properties

High wear resistance

Excellent corrosion resistance

Main PropertiesMain Properties

HART-COAT®

Process Variants and Typical Applications

Process variants HC HC – CU HC - GD HC - GL

Suitable alloys Wrought aluminiumalloys as well as sand and permanent mold cast

Aluminium alloys with a high copper content (2% to 6%)

Die-cast aluminiumalloys with high copper and/or silicon content

Wrought, cast anddie-cast aluminium alloys with limited copper, silicon and lead content

Applications Pneumatic and hydraulic cylinders, compressor wheels, lifting gear, insulators, hot-plates, screw conveyors, spacers, clamping and retaining mechanisms, cylindrical tubes, rocker arms, surgical instruments

Guide pulleys, pistons,nozzles, valves, rollerbearings, centrifuges,camera components,bearing shells, cam plates, levers, pulleys, coils

Housings, guidecylinders, guide plates,mounting plates,clothes iron plates,shock absorbers,gears and rack drives,clutch components,cylinder heads

Components requiringan especially smooth and wear-resistant surface

Layer propertiesdepending on alloy

High wear resistanceExcellent corrosion resistanceOutstanding hardnessOptimum anti-friction properties

Excellent adhesionHigh thermal insulationHigh electrical insulationGood dimensional accuracy

Resistant to temperatureSuitable for consumer goodsFood compatible

DURNI-COAT ®

Outstanding hardness


Good dimensional accuracy


High wear resistance

Excellent corrosion resistance

Main PropertiesMain Properties

Uniform layer formation

Electrical conductivity

Plating window Running direction 600 mm Width 1.100 mm Depth 1.500 mm

Processes available: Electroless nickel (DNC) (3 bath) Electroless nickel + PTFE (1 bath) Further extension possible incl. DNC +

SiC

Coating chemistry covers a wide range from 3 to 14 wt.% of Phosphor

To be applied on aluminum as well as on zinc cast alloys

Equipment DetailsEquipment Details

DURNI-COAT®

Process Variants and Typical Applications (I)

DNC 450 DNC 520 DNC 700 DNC-AL

Fields of use Especially ductile and corrosion resistant

Especially corrosion resistant

Especially wear resistant

Aluminium and aluminium alloys

Lead Free DNC 471 DNC 571 DNC 471

Applications Components with high corrosion and chemical loads

Pump components for use with natural gas and crude oil, food handling and processing

Mining equipment and components, metal fittings and hydraulic flaps, vehicle components

Structural parts for textile machines, printing presses, packaging machines, control system technology, electronics, electrical engineering vehicle components

DURNI-COAT®

Process Variants and Typical Applications (II)

DNC-ZNGD

PTFE-DURNI-DISP

SIC-DURNI-DISP

SIC-9-DURNI-DISP

Fields of use Die-cast zinc Dispersion layer with embedded PTFE

Dispersion layer with embedded SiC

Function increa-sing coating

Lead Free

Applications The motor vehicle sector (e.g. carbu-rettors, lock fittings, badges), electrical engineering/ domestic appliances, light machine construction

Structural pneumatic and hydraulic components, mould construction, control levers, door lock fittings, shafts, bearing seats, textile machine parts

Brake discs, cylinder running surfaces pistons, valve plates, structural pneumatic and hydraulic parts, feeding funnels, rollers, track rollers

Friction-locked connection, transmission systems

Contact

Dr. Jörn GroßmannExecutive Management/Business Development

(m) [email protected](p) +49 2237 502 - 332(w) www.groupmt.com

Oliver JägerCEO

(m) [email protected](p) +49 2237 502 - 340(w) www.groupmt.com

Kelly LuoGeneral Manager

(m) [email protected] (p) +86 1390 1816 850(w) www.ahc-china.com

General Material Technology GmbHBoelckestrasse 25 – 57

50171 Kerpen (North Rhine-Westphalia)

Germany

General Material Technology GmbHBoelckestrasse 25 – 57

50171 Kerpen (North Rhine-Westphalia)

Germany

Hangzhou AHC Surface Treatment Ltd.,

China

Hangzhou AHC Surface Treatment Ltd.,

China

Management Board: Oliver Jäger, Ralf Krämer, Helmut Nolte, Udo Witte | Court: Köln HRB 42489

End of Presentation

group material technology | gmt china start-up …...electroless nickel (dnc) room for further...

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