BRIEF CONSIDERATIONS REGARDING THE CURRENT

STATUS OF FORGINGS INDUSTRY

Romanian Forging Association

Ion BĂDOI (ATFR President), Nicolae ȘERBAN (ATFR Vicepresident)

CONTENT

1. MEMORIES-MAIN FIELDS OF FORGED PARTS PUT IN FUNCTION BETWEEN 1975-1989

1.1. MEMORIES-MAP OF ENTERPRISES FOR HOT METAL PROCESSING

MODERNIZED BETWEEN 80-90

2. FORGING ASSOCIATIONS TO THE EUROPEAN UNION LEVEL

3. FORGING ASSOCIATIONS TO THE WORLD-WIDE LEVEL

4. PRODUCTION OF FORGED PARTS IN THE WORLD-WIDE AND AT THE LEVEL OF EU

IN 2015/2016

4.1. EVOLUTION OF FORGED PARTS PRODUCTION IN THE PERIOD 2003-2017

5. MAIN FIELDS OF USE

6. PROGNOSIS FOR PRODUCTION OF FORGED PARTS BETWEEN 2017-2021

7. MAIN FIELDS OF FORGED PARTS USE

8. STRATEGIC TARGETS OF FORGING INDUSTRY ASSOCIATIO

8.1. TECHNOLOGY- STRATEGIC TARGETS

8.2. ENERGY & ENVIRONMENT- STRATEGIC TARGETS

9. PRODUCTION OF FORGING PARTS 0N NUMBER OF HABITANT IN2015 / 2016

10. PRODUCTION OF FORGING PARTS ON NUMBER OF HABITANT IN 2015/2016

11. PRODUCTIVITY OF FORGING PARTS IN 2015/2016

12. PRODUCTIVITY OF FORGED PARTS IN EUROFORGE MEMBER COUNTRIES IN 2015/2016

13. PRODUCTIVITY OF FORGED PARTS IN WORLD-WIDE IN 2015 / 2016

14. PROGNISIS OF GLOBAL FORGING MARKET SIZE

15. FORGING MANUFACTURING STRUCTURE

16. CONCLUSIONS

1. MEMORIES-MAIN FIELDS OF FORGED PARTS PUT IN FUNCTION

BETWEEN 1975-1989

1 TRACTORS & AGRIC. MACHINES 29.000 8 LOCOMOV., CARRIAGES, ROLLING STOCK 123.000

2 CARS, TRUCKS, BUSES 44.000 9 METALURGICAL & MINING EQUIP 12.000

3 ENERGY & NUCLEAR POWER EQUIP. 35.000 10 TRANSPORTED & LOADED EQUIP 23.000

4 OIL & CHEMISTRY EQUIP. 45.000 11 AIRCRAFTS & SPECIAL INDUSRTRY 9.000

5 BEARING & FASTENERS 10.000 12 EQUIP. FOR CONSTRUCTION MATERIALS 2.000

6 SHIPS & LEISURE BOATS 33.000 13 INDUSTRIAL FITINGS 31.000

7 HEAVY MACHINERY 23.000 14 HAND TOOLS / TOOLS FOR MACHINING 14.000

/1/ INTEC 25 years, Monografy page 19

1.1. MEMORIES- MAP OF ENTERPRISES FOR HOT METAL

PROCESSING MODERNIZED BETWEEN 1980-1990

/1/ INTEC 25 years, Monografy page 19

2. FORGING ASSOCIATIONS TO THE EUROPEAN UNION LEVEL

/2/ http://www.euroforge.org/members-partners/member-associations.html

3. FORGING ASSOCIATIONS TO THE WORLD-WIDE LEVEL

/3/ http://www.euroforge.org/members-partners/forgenet-international.html

4. THE PRODUCTION OF FORGED PARTS IN THE WORLD-WIDE AND

AT THE LEVEL OF THE EUROPEAN UNION IN 2015 / 2016

/4/ http://www.euroforge.org/statistics/production-figures.html

/5/ http://www.euroforge.org/fileadmin/user_upload/Downloads/NEU/EUROFORGE_Production_2016neu.pdf

/6/ http://www.euroforge.org/fileadmin/user_upload/Downloads/NEU/World-tons-2016n.pdf

/7/ http://www.euroforge.org/statistics/economic-trends.html

5. PROGNOSIS OF THE EVOLUTION OF GLOBAL

FORGING MARKET BETWEEN 2017-2021

/8/ www.technavio.com

/9/ https://investinganswers.com/financial-dictionary//ratio-analysis/compound-annual-growth-rate-cagr-1096

/10/ http://www.euroforge.org/fileadmin/user_upload/Downloads/NEU/Energy_Benchmark_2016.pdf

/10/ http://www.euroforge.org/fileadmin/user_upload/Downloads/NEU/Energy_Benchmark_2016.pdf

7. MAIN FIELDS OF FORGED PARTS USE

7.1. AUTOMOTIVE AND TRUCK

Cars and trucks may contain more than 250 forgings, most of which are produced from carbon or alloy steel. Forged

engine and powertrain components include connecting rods, crankshafts, transmission shafts and gears, differential

gears, drive shafts, clutch hubs, and universal joint yokes and crosses. Forged camshafts, pinions, gears, and rocker arms

offer ease of selective hardening as well as strength. Wheel spindles, kingpins, axle beams and shafts, torsion bars, ball

studs, idler arms, pitman arms, steering arm.

7.2. AEROSPACE

High strength-to-weight ratio and structural reliability improve performance. Many aircraft are "designed around"

forgings, and contain more than 450 structural forgings as well as hundreds of forged engine parts. Forged parts include

bulkheads, wing roots and spars, hinges, engine mounts, brackets, beams, shafts, bellcranks, landing-gear cylinders and

struts, wheels, brake carriers and discs, and arresting hooks. In jet turbine engines, iron-based, nickel-base, and cobalt-

base superalloys are forged into buckets, blades, couplings, discs, manifolds, rings, chambers, wheels, and shafts--all

requiring uniformly high-yield tensile and creep rupture strengths, plus good ductility at temperatures ranging between

1,000 and 2,000°F. Forgings of stainless steels, maraging steels, titanium, and aluminum find similar applications at

lower temperatures.

7.3. HIGHWAY, MINES, BUILDING AND AGRICULTURAL

Strength, toughness, machinability, and economy account for the use of ferrous forgings in off-highway and heavy

construction equipment, and in mining machinery. In addition to engine and transmission parts, forgings are used for

gears, sprockets, levers, shafts, spindles, ball joints, wheel hubs, rollers, yokes, axle beams, bearing holders, and links.

Farm implements, in addition to engine and transmission components, utilize key forgings ranging from gears, shafts,

levers, and spindles to tie-rod ends, spike harrow teeth.

/11/ http://www.euroforge.org/industry-portrait/where-to-find-forgings.html

7.4. ENERGY & RENEWABLE ENERGY

Renewable sources of energy – wind power, solar power (thermal, photovoltaic and concentrated), hydro-

electric power, tidal power, geothermal energy and biomass – are essential alternatives to fossil fuels. Their use

reduces our greenhouse gas emissions, diversifies our energy supply and reduces our dependence on unreliable and

volatile fossil fuel markets (in particular oil and gas). The growth of renewable energy sources also stimulates

employment in Europe, the creation of new technologies and improves our trade balance. Forged components are

found in virtually every implement of renewable energy, especially as generator blades of a wind turbine generator

system.

7.5. OIL AND WATER FITTINGS

For valves and fittings, the mechanical properties of forgings and their freedom from porosity are especially

suited to high-pressure applications. Corrosion and heat-resistant materials are used for flanges, valve bodies and

stems, tees, elbows, reducers, saddles, and other fittings. Oilfield applications include rock cutter bits, drilling

hardware, and high-pressure valves and fittings.

7.6. INDUSTRIAL MACHINE TOOLS AND TOOLS

Stationary and shipboard internal combustion engines include forged crankshafts, connecting rods, rod caps,

camshafts, rocker arms, valves, gears, shafts, levers, and linkages. Outboard motors, motorcycles, and power saws

offer examples of the intensive use of forgings in smaller engines. Industrial equipment industries use forgings in

materials handling systems, conveyors, chain-hoist assemblies, and lift trucks.

/11/ http://www.euroforge.org/industry-portrait/where-to-find-forgings.html

8. STRATEGIC TARGETS OF FORGING INDUSTRY ASSOCIATION

• Tooling--Increase die life by at least 10 times that of current levels.

• Energy--Reduce the total forging process energy input by 20% while cutting the per-piece energy cost by 75%.

• Reduce the scrap rate (increase material utilization) by 90%.

• Productivity--Improve per-employee productivity by 50%.

• Reduce per-piece labor costs by 60%.

• Quality--Reduce rejected or returned work to less than 25 parts per million.

• Environment- completely eliminate aerosol emissions within forging plants and recycle all fluids used to

forging plant.

8.1. TECHNOLOGY- STRATEGIC TARGETS

• Developing new lighter-weight, higher-strength, and higher-quality alloys

• Developing more reliable die materials.

• Surface modifications of the die-material interface are becoming increasingly important.

• Die design and modeling software an order of magnitude to the life of tooling.

• Advanced rapid prototyping technology will be incorporated into forged product design and engineering

processes.

• Powerful computer codes that are accessible to every forging company are needed to quickly and accurately

model material flow during the forging process and predict forged product microstructure and mechanical

properties.

• Advanced process controls and sensors must monitor all aspects of the forging process. automatically sense

and compensate for process variations in other operations.

/12/ https://www.forging.org/producers-and-suppliers/technology/vision-of-the-future#anchorprocesses

• New, "smart" forging presses and other pre-and post-forging equipment are needed to improve utilization

of energy, raw materials, and labor. They must facilitate efficient and capable of monitoring and

correcting the forging deformation process on a real-time basis for the economic production of net - and

near-net-shape forgings.

• Advanced lubricants will yield incremental progress toward an environmentally benign process, that

increases die life, process efficiency and improves product quality, reliability, and predictability.

8.2. ENERGY & ENVIRONMENT- STRATEGIC TARGETS

• Eliminate aerosol emission within the plant through the use of advanced die systems.

• The development of cost-effective new production methods (such as net shape forging) will eliminate the

need for post-forging removal of surface material.

• Develop new water-based synthetic die lubricants that eliminate graphite from the forging process.

• Reduce energy consumption through advanced heat recovery systems that maximize furnace or induction

heater.

• Increased use of induction heating and advances in combustion technology will significantly improve

energy efficiency.

• New ways to treat waste are needed to prevent damage to the environment.

• Renewable energy, advanced technologies for energy and resource efficiency, cogeneration, and other

waste reduction process improvements and other cost-effective environmental protection improvements

must be develope.

/12/ https://www.forging.org/producers-and-suppliers/technology/vision-of-the-future#anchorprocesses

33.5

28.2

24.0

18.3

7.0-9.0

5.0

2.3

34.0

47.4

37.3

17.2

7.55.5

4.52.2 1.8

5

10

15

20

25

30

35

40

45

50

Kg

/ H

ab

ita

t9. PRODUCTION OF FORGED PARTS ON NUMBER

OF HABITANT IN 2015 / 2016

15.4

5.8

3.7

0

2

4

6

8

10

12

14

16

18

EUROPE ASIA NORTH-SOUTHAMERICA

Kg

/ h

ab

ita

nt

10. PRODUCTION OF FORGED PARTS ON

NUMBER OF HABITANT IN 2015/2016

8883

56

0

10

20

30

40

50

60

70

80

90

100

EUROPE ASIA NORTH-SOUTHAMERICA

t /

em

plo

ye

e

11. PRODUCTIVITY OF FORGED PARTS

IN 2015/2016

137

125

107 106

100

90 89

62 60

54 53

0

20

40

60

80

100

120

140

160

Italy Turkey Spain Finland Sweden Poland Germany UnitedKingdom

France Slovenia CzechRepublic

t / e

mp

loye

e

12. PRODUCTIVITY OF FORGED PARTS IN EUROFORGE

MEMBER COUNTRIES IN 2015/2016

216

149

7463

54

3725

0

50

100

150

200

250

t / e

mp

lye

e

13. PRODUCTIVITY OF FORGED PARTS IN WORLD-WIDE IN 2015 / 2016

57.42

86.9

0

10

20

30

40

50

60

70

80

90

100

2015 2030

Ma

rke

t s

ize

, b

illi

on

s U

.S.

do

lars

14. PROGNOSIS OF GLOBAL FORGING MARKET SIZE

/12/ https://www.statista.com/statistics/760176/global-forging-market-size/

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

Germany Italy France Spain UK CzechRepublic

Poland Slovenia Finland Turkey Romania

68,0%

74,0%

79,0% 80,0%77,0%

47,0%

62,0%

83,0%80,0%

84,0%

30,0%

18,0%

9,0%

5,5%

9,0%

38,0%

17,6%

12,0%

1,0%2,7% 3,0% 5,0%Rate

of

ap

plic

ati

on

of

forg

ing

pro

ce

ss

es

, %

15. FORGING MANUFACTURING STRUCTURE

Closed die forging Cold forging Closed die forging of nonferouss

16. CONCLUSIONS

1. The top five places in the world-wide of forging parts production relative to the number of inhabitants are

occupied of Japan with 47,40 t/habitant, Taiwan with 37,30 t/habitant, Turky with 34,00 t/habitant, Germany

with 33,50 t/habitant and Czech Republic with 28,00 t/habitant.

2. The top seven places in the world-wide of forging parts productivity, respective forging production relative to

number of employees, with value over 100 t/employee are occupied of Korea with 216 t/employee, Japan with

149 t/employee, Italy with , 137 t/employee, Turky with 125 t/employee, Spain with 107 t/employee, Finland 106

t/employee and Sweeden with 100 t/employee

3. In 2015 the production of forged parts of EUROFORGE countries had an 18,23 % market share in global

market of forged parts. /EUROFOGE/

4. Germany and Italy produce together 3,848 thousands tone forged parts respective 56% in EUROFORGE

countires production and are the major manufacturing from EU due to automotive industry.

5. Total production of forged parts manufacturing in EUROFORGE countries reported to number of habitant, is

of by 2.5 times higher than in ASIA and about 4 times higher than in North-South America.

6. Medium productivity of forging parts manufacturing in EUROFORGE countries is of 88 t/employee, of 83

t/employee in Asia and 56 t/employee in North-South America

7. The global forging market is expected to exhibit healthy levels of growth through 2020, with a forecast by

increase the value of products and services of 8%. /Technavio/

8. 61% of the total revenues generated by the steel forging industry today come from the Asia-Pacific

region. It also has the largest forecast growth through 2020, of around 9%. /Technavio/

9. The global share of steel forging is dominated by the Asia-Pacific region, accounting for over 60% of total

industry revenues in 2015. China, India, and Japan are the three primary economies which drive the

industry forward. /Grand View Research/

10. Die-closed hot forging and cold-forged are principal hot processes within the steel forging industry. They

contributed an 80% market share in 2015 /Grand View Research/

11. Industrial forging products are the largest market segment within the steel forging industry, accounting

for 30% of all revenues. The aerospace and automotive sectors, and industrial segment, account for more

than 75% of total revenues. /Grand View Research/

12. Closed-die forgings are mainly used in the automotive and commercial aerospace segments. /Technavio/

13. Global market for open-die forging is represented by oil and gas, defense and aerospace industries.

/Technavio/

14. Contribution to cumulate GDP (Global Domestic Product) in 2030, by region will be: 23% Europe, 22%

United State, 19% China and 8% Japan. /CEPS report for ESPAS, 2013/

Thank you for your attention !