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Investor site visit Burlington automotive catalysts plant Investor site visit Burlington automotive catalysts plant
Burlington, 22 February 2013Burlington, 22 February 2013
2
Complete automotive catalyst system offer for reduction of exhaust gas emissions
One of 3 world leaders•
30% market share in light duty market (passenger cars)
•
Establishing position in heavy duty segment
R&D intensive business with R&D expenditure > 10% of revenues (ex PMs)
Globally positioned•
5 regional R&D/test centres
•
11 plants, on 5 continents
Automotive Catalysts At a glance
3
What is an automotive catalyst?
Combustion engines produce toxic emissions due to incomplete combustion of fuel and the generation of by-products
Automotive catalysts are needed for reducing these toxic emissions
Legislation enforces this by setting emission limits for vehicles Non-toxic by-products
•
Carbon Dioxide (CO2 )•
Water (H2 O)•
Nitrogen gas (N2 )
Canning•
Metal housing•
Insulation
Toxic pollutants•
Carbon Monoxide (CO)•
Hydrocarbons (HC, NMOG)•
Nitrogen Oxides (NOx )•
Particulate Matter (PM)
Washcoat•
(Inert) fine particulate support materials (Al, Ce, Zr, …)
•
Supporting precious metals (Pt, Pd, Rh)
Substrate (ceramic or metallic)
4
Internal surface area of 1 catalyst brick =
the size of ~3 football fields
Internal surface area of 1 substrate =
the size of a typical office
Substrate(Substrate Manufacturer)
Catalyst(Umicore)
Catalytic Converter(Canner)
What is an automotive catalyst?
5
Development phaseCatalyst & emission system architecture
Contract negotiation
Business model
End-of-life phase
Substrate manufacturer
Recovery of precious metals from automotive catalysts (in business unit PMR)
Catalyst manufacturer Canner
End consumer
Car/engine manufacturer
Production phase
6Recycling of autocats and other secondary materials
in BU PMR
Supply Metal Product Application Market
Transport IndustryTransport Industry
Passenger carsPassenger cars
Non-road ApplicationsNon-road Applications
SCR catalyst systemsSCR catalyst systems
3-way gasoline catalyst systems
3-way gasoline catalyst systems
Diesel particulate filtersDiesel particulate filters
Diesel oxidation catalyst
Diesel oxidation catalyst
Heavy duty diesel and CNG engines
Heavy duty diesel and CNG engines
Light duty dieselLight duty diesel
Light duty gasoline engines
Light duty gasoline engines
Lean burning gasoline engines
Lean burning gasoline engines
NOx storage catalystsNOx storage catalysts
Primary sourcesPrimary sources
Products & applications
End-of-life materials e.g. spent autocats
End-of-life materials e.g. spent autocats
Secondary materialsSecondary materials PalladiumPalladium
RhodiumRhodium
PlatinumPlatinum
7
Business drivers
Growing global light duty vehicle production•
Light duty vehicles (LDV): passenger cars, SUVs and light trucks
•
Heavy duty diesel (HDD): trucks and buses
•
Non-road applications
Emission legislation and air quality standards are becoming more stringent in developed and emerging markets
CO2 emission reduction•
Impacts engine complexity and fuel types used in different regions
•
Determines choice of powertrain
8
Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Japan/Korea
North America
Europe
Global light duty vehicle production outlook
Car production
0
10
20
30
40
50
60
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
[M vehicles]
Middle East/AfricaSouth AmericaSouth AsiaChina
Established Markets Emerging Markets
9
Global powertrain development Internal Combustion Engine (ICE) remains dominant
Contains combustion engine Requires catalyst system
Car production
0
20
40
60
80
100
120
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Umicore estimate based on external data sources
EV (Electric Vehicle)PHEV (Plug-in Hybrid Electric Vehicle)HEV (Hybrid Electric Vehicle)ICE flex fuel, CNG, LPGICE gasoline (Internal Combustion Engine)ICE diesel
[M vehicles]
10
Challenging CO2 emission targets pushes advanced engine configurations
•
Down-sized turbo-charged gasoline
•
Gasoline direct injection
•
Lean burning gasoline engines
•
Diesel
•
(Flex fuel)
•
Start-stop mechanism
•
HEV: Mild HEV Full HEV
•
PHEV: Parallel Range extender
•
EV: BEV FCEV
Advanced ICE configurations
Electrification of the vehicle
Requires more complex emission control catalyst solutions
Requires larger battery and still automotive catalyst (except EV)
ICE Internal Combustion Engine-powered vehicleHEV Hybrid Electric Vehicle
PHEV Plug-in Hybrid Electric VehicleEV Electric Vehicle
BEV Battery-powered Electric VehicleFCEV Fuel Cell-powered Electric Vehicle
11
Umicore’s product offer covers all powertrain possibilities
ICE HEV PHEV EV
Normal Start-stop Mild Full Parallel system
Range extender BEV FCEV
Emission control catalyst
Relative size +++ +++ +++ ++ ++ +
No emission control catalyst
Relative complexity + + + ++ +++ +
Battery
Relative size + + ++ ++ +++ ++
Relative complexity + ++ +++ ++ ++ ++
Fuel cell No fuel cell +++
12
Global emission legislation present in most regions and becoming more stringent
US regulation
EU regulation
Japanese regulation
No legislation
EU inspired regulation
13
Regional positionsMarket leader (#1 or #2 position)
Smaller player (distant #3)
Circles indicative of 2012 light duty vehicle production volumes (≠
catalyst revenues)
Umicore’s global leadership position
NorthNorth AmericaAmerica
EuropeEurope
ChinaChina
KoreaKorea
SouthSouth AmericaAmerica
JapanJapan
IndiaIndia
RussiaRussia
AustraliaAustralia
South EastSouth East AsiaAsia
Middle EastMiddle East AfricaAfrica
14
Umicore’s global footprint in automotive catalysts
Burlington Canada
Tulsa USA
Himeji Japan
Onsan Korea
Ansan Korea
Suzhou China
Rheinfelden Germany
Karlskoga Sweden
Hanau Germany
Florange France
Americana Brazil
Auburn Hills USA
Port Elisabeth South Africa
Production plant
Production plant & R&D / Techn. dvlpt. centre
R&D / Technology development centre
Pune India (under constr.)
Automotive Catalysts in North America
Automotive Catalysts in North America
16
Moderate growth of light duty vehicle production expected in North America
Production in 2016 expected to reach record 2000 level
Corporate Average Fuel Economy (CAFE) regulation •
35.5mpg (miles per gallon) to be reached by 2016 (now 23.1 – 27.5)
•
From 2017 to 2025 fuel economy will increase to an average of 54.5mpg
•
CAFE regulation pushes towards more efficient engine types
•
Focus on turbocharged gasoline direct injection
•
Diesel market acceptance is increasing gradually
New Emission legislation•
EPA Tier 3 is currently under review at the OMB
•
CARB LEV (Low Emissions Vehicle) III cuts emissions by 50% of current most stringent SULEV legislation
•
Green House Gas Standards (GHG) includes standards for secondary emissions (N2 O, methane and particulates)
Car production
0
5
10
15
20
2011
2015
2019
XEVICE flex fuel, CNG, LPGICE gasolineICE gasoline DIICE diesel
[M vehicles]
Source: Umicore estimatebased on external data sources
17
Gradual implementation of LEV III (SULEV20) emission standards to be reflected in vehicle fleet
100%
0%Sa
les
shar
e
2010 20202010
Sales share to be reached
to meet emission norms
Source: CARB 2010
70
20
125
ULE
V
SULE
V160
LEV
-88%NM
OG
*+N
Ox
[mg/
mile
]
30
ULE
V70
SULE
V20
50
ULE
V50
Emission categories
* NMOG: Non-Methane Organic Gases
18
ULEV
SULEV
SULEV20
Various emission categories require more and more advanced catalyst technologies
TWCTWC TWC
TWC TWC
TWCTWC TWC
•
Low light-off
•
On-board diagnostics
•System requirements
•
Increased Hydro Carbon (NMOG)
performance
•
Robustness over lifetime
•
Combined NMOG/NOx performance
•
Stricter particulate mass standards
•
Durability increased to 150,000 miles
19
Umicore’s market position in North America
CARB LEVIII and EPA Tier III pending legislation offers catalyst growth opportunities
Umicore has a leadership position in the North American market•
Catalyst production in North America started in 1983
•
Acquisition of Delphi catalysts activities in 2007
Strong technology portfolio and system knowledge available to support the market requirements•
State of the art technology development centre in Auburn Hills to manage local development programs
•
R&D centre in Tulsa to support local engine development
Burlington plant, Canada
Auburn Hills tech centre, USA
Tulsa plant, USA
20
Automotive Catalysts North America footprint
Burlington, Ontario, Canada• Catalyst Production since
1983
• Precious Metal Salt Production
• North American Prototype Lab
Tulsa, Oklahoma, USA• Catalyst Production since
1974
• North American Satellite R&D
Auburn Hills, Michigan, USA• Headquarters AC-Americas
• North American Technical Center
21
Quality, health, safety & environment
All three of our North American sites are certified to external standards•
Quality ISO / TS 16949
•
Environment ISO 14001
•
Health & Safety OHSAS 18001
Generalized Process Flows
Generalized Process Flows
23
Receipt of sponge at vault
Verify weights& purity
Transfer pgm
to salt production
Digestionof pgms
Sampling&
qualityrelease
Furtherprocessing
of pgmsolutions
TransferPM
solutionto vault
TransferPM
solutionto Vault
Sampling&
qualityrelease
Generalized process flow for precious metal solutions
24
Catalyst Washcoat Slurries
Drying /Calcining
Catalysts for Delivery to Customers
Pt, Pd & Rh Solutions
Pure Pt, Pd & Rh
Metal
Chemical Raw Materials
Catalyst Coating
100% piece control
Substrates or Filters
For Multiple Pass Products
Labe
ling
Generalized process flow for automotive catalysts
Umicore Burlington OperationsUmicore Burlington Operations
26
1979
Degussa Canada Ltd – Import/distribution business for chemicals & fabricated precious metal products
1983
First phase of the Canadian Catalyst Manufacturing Plant + Precious Metal Refinery Sampling Facility
1986
Major expansion of Burlington Catalyst Plant and construction of Gold Refinery
1991
Closure of Gold Refinery and creation of our NA Automotive Catalysts Management Team
2001/02
Major Catalyst Plant Expansion
2003
Umicore Acquisition
Diesel CatalystExpansions
2005/06Line Up-grades
2009/10
History of the Burlington site
27
Production operating on a 24/7 schedule•
Emission control catalyst production•
Gasoline
•
Light-duty diesel
•
Heavy-duty diesel
•
Precious metal solution production
North American Prototype / sample production facility
AC-North American Customer Service & Accounts Receivable
Administrative Office – Umicore Shokubai USA, Inc.
Burlington operations scope
