AN INTRODUCTION TO CONSTELLIUM S PACKAGING AND RECYCLING CAPABILITIES Don Farrington October 25-26, 2017

Transcription

1 AN INTRODUCTION TO CONSTELLIUM S PACKAGING AND RECYCLING CAPABILITIES Don Farrington October 25-26, 2017

2 A LEADER IN INNOVATIVE ALUMINIUM-BASED SOLUTIONS Approx. 11,000 full-time employees 4.7 billion in sales 24 manufacturing sites C-TEC, our world-class Technology Center Headquartered in Amsterdam, The Netherlands. Corporate offices in Paris, France, Zurich, Switzerland and Baltimore, USA

3 STRONG POSITIONS IN ATTRACTIVE END-MARKETS Constellium is a global aluminium rolling and extrusions company focused on three core markets PACKAGING AEROSPACE AUTOMOTIVE Can Body Stock: #2 Europe & #3 North America Closure stock: #1 Worldwide Aerospace Plates: #1 Worldwide Aerospace Sheet: #1 Europe Crash Management Systems: shared #1 Worldwide Auto Body Sheet (ABS): shared #2 Europe

4 A GLOBAL NETWORK OF 25 FACILITIES

5 BLUE-CHIP CUSTOMERS Aerospace Packaging Automotive

6 OVERVIEW OF THE NORTH AMERICAN PACKAGING MARKET

7 THE CAN STOCK MARKET IN NORTH AMERICA North American can stock market is expected to remain stable at 1,9 Mt over the next five years The market is resilient across economic cycles RESILIENCE OF CAN STOCK DURING LAST DOWNTURN 110% Total North American Flat Rolled Products Volumes North American Canstock Volumes 100% 90% 80% 70% Source: CRU. Note: North America includes Mexico

8 ENERGY DRINK CONSUMPTION COMPENSATES DECREASE IN CARBONATED SOFT DRINKS % Other Alcoholic drinks % Other sugar drinks Sports/Energy/Iced drinks Beer +3% -2% 0% +6% Packaged Water -2% Carbonates +3% Other soft drinks +3% US & Canada purchased beverage consumption (billion liters) Source: CRU. Note: North America includes Mexico

9 MAIN COMPETITOR IS PET, BUT PET IS NOT CONSIDERED FOR BEER North America beverage consumption per selected packaging (billion litres) Energy Drinks Carbonates Source: Canadean Other Soft Drinks Beer Source: CRU. Note: North America includes Mexico 2020 Glass +0.8% Metal PET CAGR % +3.0% Beer: metal packaging captures most of the growth volumes packaged in glass remain stable PET is not considered for beer Carbonated soft drinks: Volumes packaged in metal are decreasing even faster than those packaged in PET probably linked to increasing size of packaging Glass packaging is almost no longer used for CSD Other soft drinks Metal packaging is used for less than 10% of the volumes Energy drinks: Volumes remain anecdotical, but may represent an interesting niche for metal packaging No visible competition from PET or glass

10 OUR PACKAGING AND RECYCLING OFFER

11 OUR GLOBAL PACKAGING OFFER End stock Leading integrated supplier of the aluminum packaging market, from recycling to finished coils and sheets Significant recycling capabilities in our plants in Neuf-Brisach, France and Muscle Shoals, AL Supply a diversity of markets: beverage cans, food cans, wine and spirit closures, hair and body care aerosols, color cosmetics and perfumery luxury packaging Tab stock Body stock Dedicated technical support, innovation on products and processes End stock production

12 OUR PACKAGING NETWORK Singen, Germany 230kt rolling mill focused on specialties Integrated hot-cold rolling line allows unique metallurgical properties and short lead times Muscle Shoals, AL 450kt rolling mill focused on Can sheet Widest hot line in North America Capacity to recycle 20bn cans per year Neuf-Brisach, France 450kt rolling mill focused on packaging and automotive Capacity to recycle 3bn cans per year Voreppe, France World-class Technology Center Can and end making pilot line

13 CONSTELLIUM MUSCLE SHOALS AT A GLANCE 110 acres of covered surface Over 1,000 employees Continuous operation since 1941 Widest hot mill in North America UBC Recycling Hot Mill

14 MUSCLE SHOALS: A KEY PLAYER IN THE CAN STOCK AND RECYCLING MARKETS One of the largest suppliers of the beverage can market in North America One of the largest recyclers of used beverage containers in the world Muscle Shoals has the capacity to recycle the equivalent of nearly 20 billion cans a year almost 1/5 th of all the cans sold in the U.S.

15 INNOVATING IN PARTNERSHIP WITH OUR CUSTOMERS We are always looking at way to improve our products and services to our customers, and to partner with them on new product development. A new solution to save metal, reduce weight and improve production efficiency A project done with C-TEC, our R&T center, using its dedicated can and end making pilot line Support provided in several areas including numerical modeling, data analysis and aluminum metallurgy as well as innovated solutions such as convolute blank design Now patented and in use at one of our major customers Reduces the amount of metal lost during manufacture by optimizing its usage during the drawing and ironing process

16 OUR COMMITMENT TO RECYCLING

17 RECYCLING IN EUROPE AND IN THE U.S. Continuous improvement in Europe but slow overall progress in the U.S. The situation in the U.S. is complicated by different legislations and behaviors in different states. Although some areas provide efficient collection and sorting services, others provide none.

18 BOOST OVERALL SUSTAINABILITY THROUGH END-OF-LIFE RECYCLING We believe the ONLY way to improve the CO 2 footprint of aluminium products through recycling is to increase end-of-life recycling through industry-led programs and cooperation with adequate organizations.

19 LIFE-CYCLE ASSESSMENT KEY TO EVALUATING ENVIRONMENTAL IMPACT Life-Cycle Assesment (LCA) is a technique to assess the environmental impacts of a given product throughout its life, from raw material extraction for the original manufacturing process through to its usage and end-of-life. It is a key tool for aluminium which has impacts upstream and brings benefits downstream. We performed thirdparty-verified LCAdone by Quantis- on an aluminium beverage can.

20 RECYCLED CONTENT DOES NOT REFLECT ENVIRONMENTAL PERFORMANCE Recycled content includes industry process scrap and the part of end of life scrap versus process scrap is rarely or never mentioned! Recycled content can only work if there is enough available scrap, which is essentially dependent on scrap produced many years ago Increasing recycled content of a product is highly likely to happen by decreasing the recycled content of another one!

21 CONSTELLIUM RECYCLING PRIORITIES

22 JOINT RECYCLING PROGRAMS Every Can Counts CR3/ IRT M2P Aluminium Stewardship Initiative MPE EA/IAI Canibal (Collection Machine)

23 THANK YOU!

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