AN INTRODUCTION TO CONSTELLIUM S PACKAGING AND RECYCLING CAPABILITIES Don Farrington www.aluminum-us.com October 25-26, 2017
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
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
A GLOBAL NETWORK OF 25 FACILITIES
BLUE-CHIP CUSTOMERS Aerospace Packaging Automotive
OVERVIEW OF THE NORTH AMERICAN PACKAGING MARKET
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% 2007 2008 2009 2010 2011 Source: CRU. Note: North America includes Mexico
ENERGY DRINK CONSUMPTION COMPENSATES DECREASE IN CARBONATED SOFT DRINKS 251 +1.5% 242 227 231 214 219 9 20 Other Alcoholic drinks 14 22 25 30 51 64 8 15 22 25 33 48 68 8 16 21 25 38 40 46 17 20 26 45 72 74 +2.1% 19 20 27 43 44 79 20 28 47 42 84 2011 2013 2015 2016 2018 2020 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
MAIN COMPETITOR IS PET, BUT PET IS NOT CONSIDERED FOR BEER North America beverage consumption per selected packaging (billion litres) 111 194 10 634 21 202 14 513 17 177 39 805 2011 Energy Drinks Carbonates 116 769 10 018 4 036 17 982 15 204 16 090 48 569 2015 Source: Canadean 127 384 10 393 4 918 14 809 16 341 15 590 59 435 Other Soft Drinks Beer Source: CRU. Note: North America includes Mexico 2020 Glass +0.8% Metal PET CAGR 16-20 -0.1% +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
OUR PACKAGING AND RECYCLING OFFER
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
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
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
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.
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
OUR COMMITMENT TO RECYCLING
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.
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.
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.
RECYCLED CONTENT DOES NOT REFLECT ENVIRONMENTAL PERFORMANCE 1 2 3 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!
CONSTELLIUM RECYCLING PRIORITIES
JOINT RECYCLING PROGRAMS Every Can Counts CR3/ IRT M2P Aluminium Stewardship Initiative MPE EA/IAI Canibal (Collection Machine)
THANK YOU!
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