Transformer market and copper conductors

IWCC Joint Meeting 2008, ViennaPage 1


PresentationPresentation

Transformer Market Transformer Market

& &

Copper ConductorsCopper Conductors


AgendaAgenda

� Global Economies – Key indicators

� Market drivers for Transmission

investments

� Projected growth of Transformer and

Generators leading to higher

consumption of Copper

� Usage of Copper Conductors in

Transformers and Generators


Copper Products in TransformersCopper Products in Transformers

CTC

Glass Yarn PICC



CTC for several applicationsLV, HV Windings

Netting Tape CTC for LV windings of GSU Transformers

Cooling Duct CTC for Industrial Transformers

CTC for Traction Transformers



Transformer WindingsTransformer Windings



Transformers with ASTA InsideTransformers with ASTA Inside


Copper Products in Power Copper Products in Power

Generation EquipmentGeneration Equipment

Roebel bar for Power Generators


Copper Products in Power Copper Products in Power

Generation EquipmentGeneration Equipment

Generators with ASTA Inside (China 3 Gorges Project)Generators with ASTA Inside (China 3 Gorges Project)


AgendaAgenda



investments







TRENDS & MARKET DRIVERSTRENDS & MARKET DRIVERS

�� Demographic change, Demographic change,

population growth and population growth and

urbanizationurbanization

�� Environmental awarenessEnvironmental awareness

�� Fuel diversificationFuel diversification

�� Capacity additionCapacity addition

�� Replacement in mature Replacement in mature

marketsmarkets

�� Distributed Generation Distributed Generation

(Smart Grids)(Smart Grids)

Energy Sector Market GrowthEnergy Sector Market Growth

186

58

260

70

2007 2010 (Est)

Energy Market Bn Euro

11% pa


Global Economy Global Economy –– Key IndicatorsKey Indicators

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Japan

Asia

Taiwan

Kore a

NIEs

Singapore

Hong Kong

Philippine s

Thailand

Ase an

M alaysia

Indone sia

Asia (e x Japan)

India

Vie tnam

China

%2005

Regional Economic Overview: GDP GrowthSource: Focus Economics


Mega trends

Population Growth

UrbanizationIncreased Living Standards

Ageing InfrastructureRegionally New Demand

Fossil Fuel ScarcityPrimary Energy Cost Increase

Environmental Protection

Growing Electricity DemandReplacement & Renewal DemandHigher Energy & Material EfficiencyUrban & Environmental Suitability

Volume Increase

Innovation

Mega Trends in the MarketMega Trends in the Market


�� Highest level of investment in Electricity Highest level of investment in Electricity

infrastructure in next decade infrastructure in next decade –– 11 TUSD in 11 TUSD in

next 25 yrs.next 25 yrs.

�� Investments in Power Transmission and Investments in Power Transmission and

Generation should gain prominence in next Generation should gain prominence in next

decade.decade.

�� Investment in Power is going to be spent Investment in Power is going to be spent

on maintenance and replacement of on maintenance and replacement of

existing capacity in Developed world and existing capacity in Developed world and

addition of new facilities in Developing addition of new facilities in Developing

world.world.

Investments In Energy Infrastructure (2005Investments In Energy Infrastructure (2005--2030)2030)


World Generation Capacity 2003World Generation Capacity 2003--’’3030

Gigawatts

Source: OECD

History

2007 2010 2015 2020 2025 2030

N America 1130 1200 1220 1280 1370 1483 1.1%

Europe &

Eurasia1978 1304 1353 1426 1488 1553 1.1%

Asia &

Oceania1177 1487 1696 1897 2112 2369 3.1%

Middle

East175 237 251 261 269 276 3.0%

Africa 127 156 170 181 194 210 2.5%

C & S

America223 271 319 369 417 460 3.1%

Total

World4810 4655 5009 5414 5850 6351 2.0%

ProjectionsRegion /

Country

CAGR

(%)


World Electricity Generation (Projection) World Electricity Generation (Projection)

Source: OECD

0

1000

2000

3000

4000

5000

6000

7000

2000 2010 2015 2020 2025 2030

Oil

Nuclear

Renewable

Natural Gas

Coal

(Gigawatts)


Annual Growth In Electricity GenerationAnnual Growth In Electricity Generation

2.9

3.52.9

3.8

3.9

4.4

2.31.4

0.81.5

0 1 2 3 4 5

C & S America

Africa

Middle East

Other Asia

India

China

Europe / Eurasia

Asia

Europe

N America

Source: EIA

AVERAGE ANNUAL PERCENTAGE CHANGE (2000 – 2030)


World Net Electricity Consumption (World Net Electricity Consumption (ProjProj))

Source: OECD

1904521699

24371

2713330116

0

5000

10000

15000

20000

25000

30000

35000

2010 2015 2020 2025 2030

(Billion KWH)


AgendaAgenda



investments







Market Drivers for Transmission Market Drivers for Transmission

Investments Investments –– NA & EUNA & EU

�Rising Electricity Demand (1.5% annually from

2000-2030)

�Inadequate Cross-Border Transmission Capacity

�Desire for Greater Market Integration

�Eastward Expansion to Accession Countries

�Need to facilitate Integration of Renewable

Sources

�Replacement Markets



Investments Investments -- BrazilBrazil

�Mixed Progress on Electricity Reform

�Distribution Mostly Privatized in 2002

�Looming Shortages due to Lack of

Investments

�Lula’s “New Model” to Increase Capacity

�3,500 MW Build Out Needed Annually

�Up to $6B/year Investment Expected

�Priority Placed on Biomass Cogeneration

�Up to 2,000 MW to Contracted in 6 months

�Urgent Transmission Build Out Needed


�Infrastructure neglected for more than 40 Years

�Government to Invest $7B/year for Transmission

�Wholesale Electricity Sector to open fully in 2011

�New Laws require Private Capital to meet

growing Thermal Sector needs

�Siberian Hydro-capacity Expansion

�New Transmission from Distant Suppliers

Required


Investments Investments -- RussiaRussia



Investments Investments -- IndiaIndia

�Electricity Act 2003

�Power Sector Reform : Improvement in

operational efficiencies by Utilities

�Target for “power for all” by 2012

�Frost & Sullivan: Revenues - $5.3 BINR in 2012.

�Reforms and enlargement of the power distribution

network under India’s APDRP is driving the growth

and strengthening of sub-transmission lines.

� Increase in transmission grid reliability and Voltage

levels will result in heightened demand for power

transformers.



Investments Investments -- ChinaChina

Growing Demand for Electricity in China to Boost

Power and Distribution Transformer Markets

� Exceeding the global growth rate of 3.0 percent, the

installed power generation capacity of China is

growing at an annual rate of 8.0 %.

� The sudden boost in demand for power generation

in turn increases the need for transformers.

� Also, China’s accession to the World Trade

Organization (WTO) and the exceptional

performance of the manufacturing sector has

fuelled the increase in the consumption of power by

both urban and rural sectors.


AgendaAgenda



investments







Energy Distribution NetworkEnergy Distribution Network

FACTS

TransformerMonitoringSystem forall voltagelevels

GeneratorXm

SysteminterconnectingXm

Shuntreactor

Oil-immerseddistribution Xm

GEAFOLcast-resin Xm

TractionXm

HVDC

Systemtransformer

ConverterXm

FurnaceXm

Voltageregulator

TransformerLifeManagementProgram


World Current Market Potential for World Current Market Potential for

TransformersTransformers

RegionLatent Demand,

US $ M % of Globe

Asia $7.901 32.04%

Europe $6.236 25.29%

North America & the Caribbean $6.232 25.27%

Latin America $2.011 8.15%

Middle East $1.004 4.07%

Africa $0.968 3.93%

Oceania $0.310 1.26%

Total $24.662 100.00%

(US $ M)


WORLD MARKET FOR TRANSFORMERS

33%

25%

25%

8%

4% 4% 1%

Asia

Europe

North America &the CaribbeanLatin America

Middle East

Africa

Oceania

World Current Market Potential for World Current Market Potential for

TransformersTransformers


Power Transformer Market (MVA)Power Transformer Market (MVA)

8.7%718906925661056586455117850833Africa

Region 2005 2006 2007 2008 2009 2010 CAGR

Western Europe 224925 251975 253517 256408 252358 253525 2.01%

Eastern Europe 33180 42230 44270 44230 47280 43060 4.44%

Former USSR 60150 71630 83100 99540 102580 121930 12.50%

Middle East 58430 87200 109660 106780 116570 122090 13.07%

South Asia 45910 85800 66170 107240 124670 113790 16.33%

Far East 644450 707190 684030 684910 686450 696630 1.31%

South America 47230 52980 57910 61980 67650 69000 6.52%

C America&Carr. 6460 8250 14290 12990 15250 14880 14.92%

North America 303517 334458 369267 374633 409300 418650 5.51%

Oceania 11270 12480 13050 10690 11170 11310 0.06%

TOTAL 1,486,355 1,705,371 1,753,908 1,820,457 1,902,534 1,936,754 4.51%

Source : Golden Reports


AgendaAgenda



investments







Copper Consumption in TransformersCopper Consumption in Transformers

ProductEstimated Demand

2008 [MT]

CTC + PICC + Enamel +

Paper*312,000

Transformers (Traction &

Cast Rasin) Flat7,000

Round Wires (Paper +

Enamel)350,000

Copper Foils 200,000

TOTAL 869,000


Major Power Transformer OEMsMajor Power Transformer OEMs

Major ones considered


MetrodMetrod’’s Global Presences Global Presence

Austria

MalaysiaIndia

ChinaUSA


Metrod Flat Products, MALAYSIAMetrod Flat Products, MALAYSIA

� New 100% owned subsidiary -Metrod Flat Products Sdn. Bhd.

formed in 2007 to focus on strip business

� The new company has started its operation in April 2007.


ASTA AUSTRIAASTA AUSTRIA

� Located at Oed, outskirt of Vienna in Austria.� One of the world’s largest manufacturers of CTCs for transformer

industry and Roebel bar for generator industry.� Pioneering work in the field of development of CTC technology� Annual capacity of 21000 Mt out of which 14300 MT is for CTC � 100% subsidiary of Metrod Malaysia � 1814 Foundation “Metallfabrik OED” (Matthäus von Rosthorn)


ASTA CHINAASTA CHINA

� Located 400 Km north-west of Shanghai

� Manufacturer of Continuously Transposed Conductors for transformer industry.

� Annual capacity is being upgraded to 7000 Mt.

� 100% subsidiary of Metrod Malaysia


ASTA USAASTA USA

� Located at Waynesboro, State of Georgia, USA.

� Manufacturer of Continuously transposed conductors for transformer industry.

� Annual capacity is being created for 4500 Mt.

� 100% subsidiary of Metrod Malaysia.

� Production to start from Q1 2009.


ASTA INDIAASTA INDIA

�Located at Savli, Vadodara, India.

�Green field project.

�Manufacturer of Continuously Transposed

Conductors for transformer industry.

�Annual capacity is being created for 4500 Mt.

�100% subsidiary of Metrod Malaysia.

�Construction of building started.

�Production to start from Q1 2009.


Thank you

Documents

Transformer market and copper conductors