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AMM Awards: 2012 Aluminum Excellence Finalists

Keywords: Tags  Almex USA, Aoki Science Institute, Aloca, Amcor Felxibles, Novelis, Dubal, Wise Alloys, Aluminum Shapes Novelis Ulsan


Like the aluminum industry itself, American Metal Market will be rolling out something valuable this month when we announce our first-ever Awards for Aluminum Excellence to recognize the best in the industry.  Here, we profile the finalists: 15 companies and four individuals.  We will announce the winners at a June 12 ceremony during our second annual Aluminum Summit June 11-13 in New York.


BEST INNOVATION TECHNOLOGY/PROCESS:

Almex USA

Long Beach, Calif.-based Almex USA Inc. has developed the Minicast, a modular, scalable, environmentally friendly in-line scrap recycling facility. Aluminum extruders and forgers, as well as machine shops, generate up to 50 percent of their metal buy as turn-around scrap. While larger plants have in-house remelt facilities, smaller mills sell into the secondary market. The Minicast allows those mills to recycle the turn-around scrap quickly and on site, lowering conversion costs, saving transportation expenses, reducing carbon footprints and lowering inventory carrying costs. Almex estimates those savings at 25 to 35 percent, depending on volumes involved. The Minicast, which is scalable to match the growth trajectory of mills, can be applied to capacities as low as 200 tons per month or to more than 3,000 tons per month.


Aoki Science Institute

Aoki Science Institute Co. Ltd., Tokyo, sought to develop a highly efficient aluminum die-casting lubricant whose consumption would be far less than that of conventional emulsion lubricants. The result was oil-type lubricant WFR. After developing WFR, Aoki offered the innovative lubricant to aluminum die casters to improve production efficiency, saving production costs and reducing carbon dioxide generation. Aoki’s lubricant sales volume is increasing about 15 percent every year and has a 12-percent share of the Japanese market, and research and development costs have already been recovered. Aoki has been able to establish business relationships with large companies such as Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Peugeot SA, Ryobi Ltd. and Toyota Motor Corp., reducing operational costs and improving the environmental impact at many of the companies.



BEST INNOVATION, PRODUCT:

Alcoa

Moving to ensure the fleet of new airplanes to be built over the next several decades continue to use aluminum rather than plastics or composites, Alcoa Inc. has launched an effort to develop a set of materials that would beat composites in terms of performance. The Pittsburgh-based company’s research and development team also is working to develop an entirely new set of aluminum-lithium alloys that exceed anything else in the market and do so at a lower cost. Alcoa developed a new generation of aluminum-lithium alloys that provide up to 10-percent weight savings over composite-intensive planes; lower the cost to manufacture, operate and repair planes by up to 30 percent compared with composites; allow for a 12-percent increase in fuel efficiency, on top of a 15-percent improvement in efficiency from new engines; and deliver passenger comfort features, such as higher cabin pressure, larger windows and higher humidity.


Amcor Flexibles

Amcor Flexibles Inc.’s Canny product is the first wrinkle-free, thin-wall aluminum bowl. Primarily aimed at premium or indulgence food markets, it is designed to meet the needs of customer convenience for products and meet the requirement of being easy to open. Canny is the result of more than two years of development by Amcor Flexibles to make a product that would combine practical and attractive features amid growing demand for more convenient and safe packaging. The Canny aluminum bowl is smooth, with no sharp edges and an easily peelable membrane that reduces spillage. Canny also is 30 percent lighter than traditional ring-pull aluminum bowls.


Novelis

Jaguar Land Rover, a customer of Atlanta-based Novelis Inc. for more than 20 years, needed a solution to reduce the weight of its new Range Rover Evoque to help make it the most fuel-efficient Range Rover model ever. Novelis was selected as the sole supplier of aluminum sheet for the all-new Evoque, providing the automotive aluminum sheet for the vehicle’s hood, roof and structural parts. Novelis’ greatest challenge was in developing a high-strength, lightweight roof that is joined to a steel structure. Since aluminum and steel have different thermal expansion coefficients, the roof stiffness had to be increased to avoid deformations with temperature changes. To meet this challenge, Novelis created a new high-strength aluminum alloy, Anticorodal-600 PX.



BEST BROWNFIELD/GREENFIELD TECHNOLOGY PROJECT:

Dubai Aluminium

Dubai Aluminium Co. Ltd. (Dubal) in the United Arab Emirates owns and operates one of the world’s largest single-site aluminum smelters, capable of producing more than 960,000 tons of aluminum per year. It supplies all of its own electric power, with an on-site generating capacity of 2,350 megawatts. The electricity needed to power the operations is a big expense—fully one-third of the cost of aluminum production—and to continue growing while becoming more competitive globally, Dubal had to find a way to cut that power cost. Over the course of three years starting in June 2007, Dubal worked with General Electric Co. to implement a complete overhaul to update its power management and generation operations at the Jebel Ali site. The system monitors, controls and optimizes the generation, purchase, sale and consumption of electric power.


Novelis

Atlanta-based Novelis Inc. is investing more than $200 million to expand its Oswego, N.Y., facility to support the automotive industry’s growing production of aluminum-intensive vehicles. Specifically, the expansion will supply more material for both outer and inner automotive body panels. The demand for these products is being driven by Corporate Average Fuel Economy requirements that vehicles meet stiffer fuel economy requirements by 2015 and 2025. The project comprises an 180,000-square-foot expansion that includes two continuous anneal and solution heat-treatment lines and an automated storage retrieval system. The expansion started in August 2011 and the new lines are expected to be operational by summer 2013, increasing the company’s North American automotive sheet capacity more than fivefold.


Wise Alloys

In order to realize its objective of increasing used beverage can (UBC) melting capacity, Muscle Shoals, Ala.-based Wise Alloys LLC decided to embark on a $25-million expansion of its Alabama Reclamation Operations division. The project has since been renamed “Element 13.” Current and future volumes necessitated contracting several third parties to melt UBCs and transport the molten material to Wise Alloys’ northern Alabama facility. Wise constructed a 42,000-square-foot building, a 250,000-pound-capacity melting furnace, a delacquering kiln, a 1,500-horsepower aluminum can shredder, baghouses and all associated utilities, environmental systems and sundry support equipment. The greenfield project, which was dedicated earlier this year, included engineering, procurement and construction, as well as associated testing and practice development.



ENVIRONMENTAL RESPONSIBILITY/STEWARDSHIP:

Aluminum Shapes

Delair, N.J.-based Aluminum Shapes LLC says its goal is to become the most sustainable green aluminum extrusion company in the world while lowering its operating expenses. Aluminum Shapes uses significant power for its eight extrusion lines, heat-treat systems, casthouse, anodizing system, paint system and fabrication equipment. A cooperative partnership with the state of New Jersey and Allentown, Pa.-based power company PPL Energy Services LLC aims to leverage all available alternative energy sources. A major solar farm and methane gas conversion plant has been installed at a cost of $12 million to exclusively supply the company.


Novelis

In May 2011, Atlanta-based Novelis Inc. unveiled its companywide sustainability commitment to significantly improve the life-cycle impact of its aluminum products. Novelis has committed itself to increasing the amount of recycled aluminum input material in its manufacturing process to 80 percent by 2020 from 33 percent in 2010. Novelis is elevating sustainability as a critical element in its business model, one that it says will deliver greater economic, environmental and social rewards to the company, its customers and the world at large. Novelis is a global leader in rolled aluminum production, providing 17 percent of the world’s rolled aluminum for use in manufacturing a wide range of products. Novelis is also the world’s leading recycler of aluminum beverage cans, keeping 1.2 billion pounds of aluminum out of landfills each year.


Novelis Ulsan

Due to a concentrated effort to improve environmental practices, the environmental incident rate at Atlanta-based Novelis Inc.’s plant in Ulsan, South Korea, has been reduced to zero, with its last minor incident occurring in May 2001. Novelis has spent 5.6 billion won ($4.9 million) over the past five years on capital investments related to environmental performance. Critical items include a molten metal and dual tilting project; greenhouse gas reduction by reduced consumption of energy and an increase in recycling rates; improvement of recycle shop bag filters and side well hoods; reduction of air emissions and improvement of working conditions; installation of odor-control facilities at its coil degreasing line and tension leveler; and installation of a cold-mill Schneider filter dust-control facility and fume-control facility.



LOGISTICS/TRANSPORTATION PROVIDER OF THE YEAR:

American Electric Power/AEP River Operations

American Electric Power Co. Inc.’s AEP River Operations LLC, St. Louis, offers the largest covered hopper fleet of any carrier, and the company is still growing. Whether shipping raw materials, anode coke or primary metals, AEP has barges to meet the needs of the aluminum industry. Complementing the barge operations is a fleet of more than 70 towing vessels ranging from 1,550 to 11,000 horsepower, moving more than 80 million tons of cargo for customers last year. Professional staff, along with highly trained crews on vessels, ensure customers’ objectives are met every step of the way. AEP is a Responsible Carrier Program (RCP)-certified company, and its mission is to be the leading supplier of safe, competitively priced marine transportation to its customers.


Dearborn Distribution Services

Dearborn, Mich.-based Dearborn Distribution Services has been successful in adapting its “just in time” service model for the automotive industry to the aluminum distribution market after 26 years of delivering automotive-grade steel products. Dearborn Distribution has registered its entire facility with the U.S. Commerce Department as a foreign trade zone operator. The 34-acre operation, which includes 490,000 square feet of inside storage space, moves 20,000 to 30,000 tons of metal weekly via truck and rail. The company’s proprietary warehouse management system has been adapted to manage inventories for its customers based on a broad spectrum of data elements.



CHARLES-MARTIN HALL ALUMINUM ADVOCACY

Kevin J. Anton

Kevin J. Anton is chief sustainability officer at Alcoa Inc., Pittsburgh, and a member of the Aluminum Association’s executive committee. Through his work and guidance, he helped the U.S. aluminum industry publish its first-ever sustainability report, showing the positive effects the industry has had over the years and forming the base point to improve further. Anton has gathered leaders from the industry, the world of recycling, can makers, fillers, and plastics and glass companies, along with others who play a part in the recycling supply chain, and encouraged them to explore ways to collaborate to increase the recycling rate of any and all materials through an initiative called Actions to Accelerate Recycling. So far under his leadership, the used beverage can recycling rate—now at 58 percent—has reversed course to show significant growth after previously declining at a steady rate.



Stephen Gardner and Steve Williamson

As the economic crisis fell on North America in 2008, Stephen Gardner, vice president of communications at the Aluminum Association, and Steve Williamson, chief commercial officer at Louisville, Ky.-based Tri-Arrows Aluminum Inc., launched the association’s sustainability work group. First on sweat equity and then on a meager start-up budget, the work group ramped up a campaign on two fronts: communications and an industry-wide data-gathering initiative. With solid messages and good supporting data, the work group has risen to full committee status in the Aluminum Association. The work group, previously funded by voluntary contributions from member companies, now is a core-funded program, making the program’s benefits accessible to all aluminum companies, their customers and suppliers. The most significant accomplishment was the publication of Aluminum: The Element of Sustainability in September 2011. Jinlong Marshall Wang, sustainability specialist at the Aluminum Association, led an industry-wide effort to collect and sort key manufacturing data sets from producers that chronicled the success in reshaping the aluminum industry’s environmental footprint.


Nick Madden

Novelis Inc.’s role in driving meaningful change in the direction, focus and transparency of the London Metal Exchange is re-legitimizing the role of the LME as a viable component of the aluminum supply chain. Novelis senior vice president and chief procurement officer Nick Madden took a leadership position in the warehousing debate in May last year by directly addressing the LME in a letter in which the Atlanta-based company expressed concerns about load-out rates. In the letter, Novelis recommended a significant increase in required load-out rates by LME-approved warehouses, particularly in Detroit. The letter pointed out that all-time high aluminum premiums in North America and other regions were the direct result of bottlenecking that had arisen in warehouses due to limited out-flow under the LME load-out rules, and cited the pain caused by the bottleneck issue in terms of higher prices to aluminum consumers.



SCRAP SUPPLIER OF THE YEAR:

David J. Joseph

By moving closer to customers and offering around-the-clock support, David J. Joseph Co. (DJJ) has achieved distinction in its service to international consumers and local suppliers. The Cincinnati-based company opened a Hong Kong trading office in 2008, staffing it with seasoned DJJ nonferrous traders and providing 24-hour trading and administrative support. (DJJ also boasts a dozen brokerage offices in the United States and Switzerland.) The company also has initiated a front-line customer-service training program for all scale operators, cashiers, dispatchers, greeters and inspectors. Today, DJJ’s Metals Group is making system enhancements that will allow suppliers and consumers to easily check the status of shipments and orders and offer suppliers flexibility in choosing when they would like to receive payment.


CMC recycling

Commercial Metals Co. Recycling has grown into an industry leader with operations in more than 60 locations globally with the capacity to process and ship more than 4 million tons of ferrous and nonferrous scrap annually. Founded in 1915 as a single-location, family owned and operated scrap processing facility in Dallas, CMC Recycling buys, processes, sells and manages scrap in collaboration with its partners, regardless of their size, throughout the United States and around the globe. CMC Recycling enforces strict guidelines regarding the types of scrap it will and will not purchase, coupled with a rigorous process of inspecting all inbound materials and proper maintenance of equipment. These practices demonstrate a commitment to operating its facilities in a manner that protects human health, natural resources and the environment, CMC Recycling says. CMC operates recycling facilities in Alabama, Arkansas, Florida, Georgia, Kansas, Louisiana, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.



ALUMINUM MILL EXCELLENCE AWARD:

Alcoa Davenport

As a result of changes at its Davenport (Iowa) Works, Alcoa Inc. has expanded and converted the plant into a two-market facility, changing it from the world’s premier aerospace supplier to an aerospace and automotive facility. Performance and operational metrics for the plant, including safety, are outstanding, according to Pittsburgh-based Alcoa. A $300-million expansion aimed at further servicing the auto market added 150 full-time jobs, and Alcoa earned the right to further supply the aerospace market through on-time delivery performance and quality performance.

Gulf AluminIum Rolling Mill

Gulf Aluminium Rolling Mill Co. (Garmco) is the largest downstream aluminum rolling mill in the Middle East, with installed capacity of 165,000 tonnes and plans to double in size by 2017. The Bahrain-based company has developed strategically to sell its products globally through Bahrain and its worldwide network of 25 international outlets, significantly reducing the impact of time zones and cultural barriers and improving service to its customers. Garmco, which has quality certifications such as ISO 9001, ISO 14001, BS 18001 and BS 25999, has established its reputation through the quality of its products and customer service.


Logan Aluminum

Logan Aluminum Inc., a joint venture of Novelis Inc. and Tri-Arrows Aluminum Inc., provides can body sheet, coated and bare-end sheet, and tab stock for the growing aluminum beverage can industry. Since it began production in 1984, the plant in Logan County, Ky., has grown to more than four times its initial capacity and currently provides aluminum for more than 40 percent of the beverage cans produced in North America. The plant last year achieved records in almost all aspects of its business, including its best-ever customer satisfaction index (CSI) rating. Measuring customer satisfaction via five componentsÑcapability; frequency of incidents; duration of incidents; returned goods authorization rate (for both Novelis and Tri-Arrows); and preferred supplier ratingÑLogan ended 2011 with a record-high CSI of 164.6 percent.


Novelis Pindamonhangaba

Novelis Inc. is Brazil’s leading producer of flat-rolled aluminum products and its largest recycler of beverage cans, processing about 8 billion cans in 2010. Novelis’ Pindamonhangaba facility, an integrated hot-rolling, cold-rolling, remelt and recycling complex in S‹o Paulo state, produces aluminum sheet to supply the beverage can, automotive, civil construction and foil markets. It also includes South America’s largest recycling center, with a 200,000-ton-per-year recycling capacity. The plant has made two significant investments since it began operating in 1977, with the last large capital investment in 1999. Novelis has identified the need to prepare for rapid growth, particularly in the beverage can business.



ALUMINUM SMELTER EXCELLENCE AWARD

Aluminerie Alouette

Aluminerie Alouette Inc., an independent producer of primary aluminum in Sept-Îles, Quebec, is an international consortium that includes Austria Metall AG, Hydro Aluminium, Investissement Québec, Marubeni Corp. and Rio Tinto Alcan. With 1,000 permanent employees and a production capacity of 600,000 tonnes per year, Aluminerie Alouette is the largest employer in Sept-Îles, the largest primary aluminum smelter in the Americas and the 10th largest worldwide. The Sept-Îles operation, on the cutting edge of technology, is constantly enhancing its manufacturing processes. Aluminerie Alouette produced its first metal in June 1992. A Phase II expansion completed in May 2005 increased annual production to 550,000 tonnes from 245,000 tonnes. That project is still considered a benchmark in aluminum smelter construction and start-up. Another expansion is in the works that would boost the company’s capacity to more than 900,000 tonnes per year.


Dubai Aluminium

Dubai Aluminium Co. Ltd. (Dubal) in the United Arab Emirates owns and operates one of the world’s largest single-site aluminum smelters, capable of producing more than 960,000 tons of aluminum per year. The Jebel Ali site produces high-quality finished aluminum products in three main forms: foundry alloy for automotive applications; extrusion billet for construction, industrial, forging and transportation purposes; and high-purity aluminum for the electronics and aerospace industries. It serves more than 300 customers, predominantly in the Middle East, Far East, southeast Asia, Europe and North America. Built on a 1,200-acre site, the major facilities of the smelter complex include a 1-million-tonne-per-year primary aluminum smelter, a 2,350-megawatt power station, a large carbon plant, and casting operations capable of producing more than 1.1 million tonnes per year.




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