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The chart shows the increase of CO2 emissions from 1990 to 2008 in the energy/industry sector. This means an increase of 32% in this sector.

Even though the increase in CO2 emissions in the transport sector will be significantly lower in the forecast until 2008, it still is causing a lot of concern. And due to the immense pressure to reduce CO2 emissions, the automotive industry has in the past agreed to decrease emissions to 140g per km by 2008 but at the moment the prospect for achieving this is looking bleak.
The EU Commission insists on reducing the numbers even further and is planning to set the standard at 120g per km by 2012.

Making vehicles lighter and more efficient without compromising on safety, quality or comfort must therefore become part of the technology development in the automotive (and aviation) industry. Significant weight reduction can be achieved through the use of aluminium or magnesium in car design. Keronite makes this possible by improving surface characteristics. The use of 1 kg of aluminium, can replace 2 kg of conventional materials. For every 100 kg of aluminium used in a car, there is a CO2 emission saving of 10 g per km driven. And each time 10 kg of steel are replaced by 4 kg of magnesium, there is a saving of 100 kg of greenhouse gas emissions over the lifetime of the vehicle, or 4 million tonnes p.a. if every passenger car produced were to make such a substitution.

Keronite treatment greatly improves the wear and corrosion resistance of light alloys and enables their use in a variety of automotive and other applications. Treated parts provide a higher durability and can easily be recycled. Also, Keronite as a pre-treatment reduces the time of possible following treatment processes and makes the production more energy efficient.

The electrolyte solution used in the Keronite process contains no chrome, no hazardous or harmful heavy metals, no ammonia and no other toxic chemicals. The non-hazardous liquid requires no complex treatment prior to disposal and presents no danger to those handling it. It provides an excellent alternative to other, ‘non-green’ surface treatments

Aluminium
Being one third lighter than steel, aluminium has a very good strength:weight ratio. Especially automotive manufacturers are more and more seeking to improve fuel efficiency without compromising safety, performance or environment. But aluminium products have long since established themselves in applications in transport (automotive and aviation sector), building and construction (panels, window frames, etc.), mechanical engineering (manufacturing of high strength machinery), packaging (beverage cans, food containers, etc.). The table shows a rough balance of all sectors.

Applications for aluminium
Aluminium is now being used in a wide variety of automotive applications including engine parts, interior components and a growing number of structural parts. Other industries are also starting to recognise the benefits of working with aluminium. There are applications not only in aerospace and other forms of transport, but also in a growing number of electrical engineering applications and in the iron and steel industry. Applications range from cast engine blocks to extremely thin aluminium foil for the packaging of medication.

Aluminium prices have stayed relatively stable over the past two years. The global use of aluminium exceeds that of any other metal, except iron.

Price development of metal products in %
(May 2003 = 100%). Source department of statistics, Germany


What are the benefits of aluminium?


- Extremely lightweight
- Ductile
- Outstanding casting characteristics
- Easy to machine
- Can be recycled


Aluminium Market in China
World production of aluminium increased by 9% in 2006, and is expected to increase by a further 8% to 36.5 million tonnes in 2007 and to continue growing at an average 6% p.a. to reach 47 million tonnes by 2012. China accounted for around 80% of the increase in 2006. European production increased by only 3% and the US actually showed a 1.5% reduction.

Aluminium prices increased by 35% in 2006 as a result of the strong demand from China and the falling stock levels worldwide. Prices are expected to fall by around 8% in 2007 as the growth in global demand is now more than satisfied by new capacity, so stocks are rising again. By 2012, aluminium prices are expected to be around 40% lower than they were in 2006.

Most of the new capacity is in countries with low energy costs, and this is expected to force some of the older high cost smelters to close. The markets showing the most significant increases in capacity are Russia, Iceland and the Middle East.

China is expected to remain the world's largest consumer of aluminium for the forseeable future, largely because of increasing car production (from 8 million vehicles in 2006 to an anticipated 20 million by 2010) and investment in infrastructure. In 2006, China accounted for around 25% of world consumption of aluminium, and the US for around 18%. In 2006, consumption in China increased by 17% and is expected to grow by a further 22% to around 10 million tonnes this year. It is expected to continue to grow at an average 12% p.a. through 2012. Despite this, the per capita consumption in China remains low compared with other developed economies.

Domestic production in China has doubled since 2002 and is likely to continue rising. However, because aluminium production is so energy-intensive (15 megawatts of power are required to produce 1 tonne of aluminium), the government is trying to slow the growth through the imposition of higher export taxes (increased from 5% to 15%) and various restrictions (size, capital investments, environmental standards etc) on any new smelters. In 2000, there were 146 aluminium smelters in China with a combined capacity of 30,000 tonnes. By 2006, the number had reduced to 89, but the capacity had increased to 135,000 tonnes.

Value-added aluminium products are entitled to an export rebate in China, so there is likely to be an increase in down-stream activities.

Magnesium

One quarter the weight of steel and one third lighter than aluminium, magnesium has the best strength:weight ratio of all structural metals and exceptionally good diecasting characteristics.

With the growing importance of China as a producer of magnesium, prices have inevitably started to fall relative to competing materials. As a result, the use of magnesium castings in the automotive industry has become more attractive and demand is expected to double over the course of the next decade.

What are the benefits of magnesium?

- Extremely lightweight
- Very strong
- Extraordinarily stiff
- Resistant to impact
- Good heat dissipation qualities
- Ductile
- Outstanding casting characteristics
- Excellent damping qualities
- Good EMI shielding properties
- Easy to machine
- Can be recycled


Source: World Mineral Statistics Database, BGS


Source: Taiwan Magnesium Association

Which magnesium alloy?
AZ91D is the most widely used of all magnesium alloys. 
It is ideal for high pressure die-casting applications and is extremely strong.
AM50 or AM60B are best suited to use in automotive applications,
as they have such good casting characteristics and are also strong and ductile.
AM20 is often the material of choice for safety components as it has excellent impact resistance and energy absorption.
There are a number of new alloys now available with improved
elongation and therefore enable the production of thinner walls,
better corrosion resistance which has always been the weakness
of magnesium, and improved creep performance

Applications for magnesium
Magnesium is now being used in a wide variety of automotive applications including engine parts, interior components and a growing number of structural parts, for example:

Engine: Cylinder head covers; intake manifolds; gearbox housings; engine blocks; oil pans; bed plates
Interior: Steering column and steering wheel components; clutch and brake pedal brackets; airbag retainers; mirror brackets; door handles; handbrake levers; heat sinks; headlight retainers
Body: Instrument panels; front end cradles; seat frames and components;
roof rails; door frames; wheels; radiator supports; bonnets; boot lids

Other industries are also starting to recognise the benefits of working with magnesium. There are applications not only in aerospace and other forms of transport, but also in a growing number of consumer products such as mobile phone cases; laptop housings; camera and binocular housings; MP3 players; bicycle components; suitcase frames; hand tools.

Example for magnesium applications
For example, the global production of magnesium notebook cases is expected to increase by 52% from 2005 to 2007 and mobile phones will go up by 29%. Production of digital camera cases is expected to grow by 34%.

Magnesium as a substitute for zinc
The price for zinc saw an incredible high at the end of last year with growth rates up to 250% in a 12 month period. Even though this trend in the price increase seems to slow down a bit this year, zinc die-casters are waiting for a market turn expected to restore the old, typical price levels. However, the overall opinion from investment firms is that the levels will remain high in a foreseeable future. This is mainly due to the growing demand from Asia, particularly from China. The country is currently changing from being an exporter to becoming a major importer.

It appears that the worldwide production will not be able to keep up with the demand. This, of course, is driving the price.

The global market of magnesium die-castings is expanding 15% – 20% per year. Advances in casting technologies and good market conditions will further increase this growth in cast components. Particularly the substitution of zinc and aluminium in high-pressure die-castings with magnesium opens up very attractive alternatives for die-casters. Keronite treatment greatly improves the wear and corrosion resistance of magnesium so casts can be used for a large variety of applications.


The dominance of China


China has dominated world supplies of magnesium since 2005. They supplied 4% of world demand in 1995 and now supply around 72%. The US, on the other hand, supplied 45% of world demand in 1995 and by 2007 has only one producer (US Magnesium), accounting for only 7% of world production.

In 2006, total world production was 726,000 tonnes (of which 526k from China, 43k from the US, 50k from Canada, 50k from Russia). This represented an 8% increase over the previous year. China increased production by 12% compared with 2005. Production in the US, Canada, Norway and France has fallen by around 100,000 tonnes whilst it has increased by around 250,000 tonnes in China.

Production of magnesium in tonnes

In 2006 domestic consumption of magnesium in China increased by 50% to 150,000 tonnes.

There are 81 operational magnesium producers in China at present, and a further 50 that are not currently producing. The total capacity is around 815,000 tonnes - almost 100,000 tonnes more than the total world production in 2006.

80% of Chinese magnesium production or 50% of world production is based in Shanxi province.

In the past, the focus in China has been on ingot production rather than downstream processing, but massive amounts of public money are now being invested in switching the focus to end products: central government has invested Yuan 41 million in the development of new magnesium alloys and in die casting technologies. In addition to this, local governments and a variety of research institutes have invested Yuan 600 million in magnesium-based technologies and applications.

The production of magnesium end-products is focused in three regions: Shanghai for automotive; Chongqing for motorcycle and automotive; Quingdao for 3Cs.

Around 25% of magnesium producers have recently switched from coal-fired manufacturing to the use of waste gas from coke ovens. It now costs them only Yuan 500 to produce a tonne of magnesium compared with Yuan 3000 per tonne for coal. At the same time, they are helping to solve a major pollution problem facing the coke industry.

 
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