2015 Automotive R&D Event
Greg Ludkovsky, VP Global R&D , London June 2015
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Forward-Looking Statements
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from those expressed in, or implied or projected by, the forward-looking information and
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the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance
du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”)
made or to be made by ArcelorMittal, including ArcelorMittal’s Annual Report on Form 20-F for the
year ended December 31, 2014 filed with the SEC. ArcelorMittal undertakes no obligation to
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events, or otherwise.
1
Agenda
• R&D overview
• Product development
• Manufacturing technology optimization
• Design and co-engineering
• Summary
2
Global R&D key facts and figures
• Over 1,300 full time researchers
• Working on all process and development needs
• Expanding worldwide network of laboratories (currently 12 labs in Europe, North
America, and South America)
• Key challenges fully aligned with the group strategy: geography, value chain,
product differentiation
R&D budget spending by need
Construction
10%
Exploratory
Plates and specialities
6%
13%
Process 37%
57% Product
Automotive
60%
10% General industry
7%
Others
2014 R&D spend of $260m (1/3 for automotive sector)
3
Six R&D labs dedicated to automotive
industry
Canada
France
Hamilton
Maizières-lès-Metz
Montataire
Gandrange*
USA
East Chicago
Brazil
Tubarão**
Main missions:
• Develop new steels
• Improve the in-use properties of steels
• Find anti-corrosion solutions
• Invent breakthrough products
• Ensure technical service to customers
• Predict the behaviour of steel
565 people are adapting steel to the evolution of automotive industry needs
* Focus on R&D for Long Products
** Focus on steel innovations for the automotive, energy, construction, machinery and white goods industries.
4
Dedicated resident engineers bring
technical support to global customers
Germany
6 resident engineers
United Kingdom
North America
1 resident engineer
14 resident engineers
Japan
3 resident engineers
France
Italy
3 resident engineers
1 resident engineer
Spain
Republic of Korea
1 resident engineer
1 resident engineer
India
1 resident engineer
China
Brazil
2 resident engineers
1 resident engineer
ArcelorMittal also has six mobile Early Vendor Involvement (EVI) engineers with a
global remit responsible for processing and providing stamping and joining support
Committed co-engineering programs with key customers
5
Our vision and approach
Mastering Steel: Referential Engineering
Material
Non-Stop R&D
investment
More than
Steel
OUR VISION
OUR WAY
Cutting-edge
Technology Expertise
From Collaboration to
Co-creation
Out-of-the-box Design
Capacity
R&D mission
6
Product development
7
© ArcelorMittal 2014 – All rights reserved for all countries
Cannot be disclosed, used, or reproduced without prior written specific authorization of ArcelorMittal
Through innovation, steel remains the
material of choice
3rd Generation AHSS
Fortiform® for cold stamping
2nd Generation: TWIP, X-IP
1st Generation, phase 3: Usibor® for hot stamping
1st Generation, phase 2 : Dual Phase (DP1180 since 2008), TRIP Steels, Martensitic(MS>1200MPa since 80’s)
1st Generation, phase 1: HSLA, HSS
1990
1993
2003
2008
2014
• ArcelorMittal has developed a unique full range of coated Advanced High Strength Steels in
the last 25 years
• This has had significant impact on automotive construction:
– Safety: Most vehicles get 5 stars NCAP rating today
– Weight saving: Body structures are 25% lighter than in the 1980s
– Environment: 6% less greenhouse gas emissions than in the 1980s
– Corrosion protection: 12 years is the mainstream guarantee for corrosion thanks to the
huge share of coated products
ArcelorMittal has developed the broadest product offer in the world
8
Press hardenable steels for automotive
Heated blanks before hot stamping
• Lightweight design of vehicles with hot
stamping of Alusi pre-coated Usibor®
boron steel
– Very high strength (Up to 2000MPa tensile
strength)
– No springback, complex parts are feasible
Potential usage of hot-stamping technology
(S-in motion® concept)
– Very good corrosion-resistance
– Huge weight-saving potential for antiintrusion parts (up to 30%)
– Tailored properties with Laser Welded
Blanks (LWB) with Ductibor®
Potential usage of Laser Welded Blanks
Usibor® - Ductibor® (S-in motion® concept)
– Very fast growth all over the world
-
Press hardenable steels have become a mainstream solution for weight saving
9
Penetration of press hardened steels
Volkswagen Golf
High strength-steels
share: from 66% in Golf
VI to 80% in Golf VII
80%
Ultra highstrength steel
share: from 6% to
28% (24% PHS,
4% AHSS)
66%
HSS
UHSS
28%
6%
Golf VI
Golf VII
Armin Plath, Head of Materials Research and
Manufacturing, Volkswagen
“Volkswagen is using high strength steels in
increasing amounts. It is a very cost effective
way of reducing weight. Using new
innovations in steel engineering… it is
possible to reduce weight without the use for
more costly materials such as aluminum and
carbon fiber.”
According to an interview with Volkswagen
for Truth About Cars, Volkswagen found that
new HSS are:
• Six times stronger than conventional steels
they replace
• Instrumental in achieving a weight
reduction of 100 lbs. in the 2013 VW Golf
“Volkswagen replaces aluminum with steel
to save weight and money,” by Bertel
Schmitt, Truth About Cars, Jan. 2013
VW: constant progress in weight primarily due to Advanced High Strength Steels
10
Penetration of press hardened steels
Volvo XC90
 275 pounds lighter than its
predecessor and 440 pounds
lighter than most of its
competitors .
XC90's body & components structure
Quote from Volvo’s statement on 22 July 2014:
“To help keep the occupant space inside
intact in a crash, the all-new XC90 has literally
been made stronger in every sense. This is
achieved by more extensive use of hot-formed
boron steel, which is the strongest type of steel
presently used in the car body industry.
The complete safety cage around the
occupants is made from hot-formed boron steel
and is designed for maximum occupant
protection in all types of crash scenarios. The
hot-formed steel amounts to about 40 per cent of
the total body weight.”
Press hardened steels
40%
Other
60%
40% of the Volvo XC90 uses press hardened steel – the most in any vehicle
11
Broadening our product portfolio
• For more than 20 years, weight saving
solutions have been developed through
the regular increase of tensile strength of
the Advanced High Strength Steels
• Increase of strength is generally done at
the expense of formability (complexity of
shapes)
• ArcelorMittal has developed 2 ways to
change the game:
• Usibor® and Ductibor® hot stamping
solutions
• Fortiform® for cold stamping with
outstanding combination of formability
and strength
Part stamped with Fortiform®
ArcelorMittal automotive steel: various products offer formability and strength
12
Recap
Globalization of product portfolio
• Two major products research centers: Maizières-lès-Metz (France) and
East Chicago (USA)
• Managing a global product catalogue
• Cloning the existing solutions in the various regions (Europe,
NAFTA, South America, Asia) to extend availabilities
• Working within a global project structure to develop simultaneously
the emerging grades in Europe and NAFTA
ArcelorMittal offers a really global product portfolio
13
Recap
iCARe®: Steels for electrical mobility
• iCARe® is ArcelorMittal’s range of innovative
electrical steels for the automotive market:
 Save: reduces energy losses
 Torque: for the highest levels of mechanical
power output through high permeability
 Speed: high strength electrical steels for high
speed rotors
• Large number of products in the iCARe® range
provide technical solutions for automakers:
 Lower CO2 emissions and better fuel
consumption for hybrid vehicles
 Longer drive range
 Lower total cost of electrification
 Better power density of electric machines reduces size and weight of electrical drive trains
Plug-in Hybrid Volkswagen Golf
Electrical steel solutions for all types of electric vehicles
14
Manufacturing technology optimization
15
Innovative
door ring concept
Recap
- Mass savings
Honda’s Acura MDX
Materials, thicknesses and weldline positions can be tuned to optimize weight
16
ArcelorMittal developed a process for
Usibor® laser welding
• Before laser-welding, the aluminium-silicon coating near the edge is partially
ablated by laser (ArcelorMittal process)
• The top layer is removed to avoid excessive Al dilution in the weld
• The intermetallic layer is intentionally kept to guarantee corrosion protection
Remaining thin
intermetallic layer
AlSi Coating
~ 2 mm
Laser coating
ablation
1 – 1.5 mm
Blank A
Weld
Blank B
Laser welding
~ 1 mm
This process allows uniform hardness distribution
after hot stamping, guaranteeing the weld quality
Innovative developments to guarantee the weld quality
17
Hot stamped door ring - Honda’s
Acura MDX
 8.6 lbs. weight reduction per door, reducing 2014 fleet by ca. 600,000 lbs
 Improved fuel economy: 18/27 MPG for 2014 Acura MDX (AWD, V6) vs. 16/21
MPG for 2013
 Offers improved energy management through uninterrupted joints for smooth
load path
“Weight was one of the ways to improve fuel
economy. Taking weight out of a car and
making a car stronger is not an easy thing. In
spite of being a much stronger, safer car, it is
275 pounds lighter than the outline car.”
Jim Keller, 2014 Acura MDX Chief Engineer
Outstanding performances regarding weight and fuel economy
18
2014 Honda Acura MDX crash test
Small offset crash performance comparison
• Note deformations in the door opening area on comparison vehicle: ability to open the
driver side door after the crash event in 2014 Acura MDX
IIHS
IIHS
2013 Other OEM
2014 Acura MDX
Design without hot stamped door ring
Design with hot stamped door ring
Honda’s Acura MDX received the highest available safety ratings
19
Award winning solutions
Delegation from ArcelorMittal and Magna Cosma Int’l
American Metal Market’s 2014 Best
Innovation Process Award for the Honda
door ring
Automotive News' 2014 PACE Award in the
Manufacturing Process and Capital
Equipment category for the laser ablation
process
Door ring project awarded
20
Design and co-engineering
21
From a steel provider, to a global
solution provider
ArcelorMittal’s leadership as solution provider recognized by OEMs
1990
Contribution to
ULSAB/ULSAC
industry-wide
lightweight
effort
2004
ArcelorMittal’s
ABC
lightweight
project
2010
S-in motion®
C-Segment
Vehicles
demonstrates
the potential of
AHSS & PHS
2012
S-in motion®
Light
Commercial
Vehicles
2013
S-in motion®
Electric &
Plug-in Hybrid
C-Segment
Vehicles
2014
S-in motion®
Pickup Trucks
A long tradition of steel solution development
22
3 step methodology for co-engineering
BIW review
Preliminary masssaving assessment
PHASE 1
Identification of potential mass
saving solutions thanks to:
Benchmark
Refined
mass-saving
analysis
Forming
& welding
feasibility
PHASE 2
PHASE 3
Grade, Gauge & Geometry
optimization thanks to
numerical simulations
Forming and assembly
assessment
Springback counter measures
Crash FE analysis
Hot-forming
Steel grade properties
Roll-forming
Spot-welding
Engineered solution projects
Stiffness FE analysis
Laser Welded Blanks
23
S-in motion®: weight reduction solutions
• A catalogue of 60 steel solutions using:
–
–
–
–
–
Advanced High Strength Steels
Hot stamping
Laser Welded Blanks
Tubular products
Long products
Press hardened parts (Usibor®/Ductibor®)
• Enabling:
– to save up to 73 kg or 20% of a typical
C-segment vehicle’s body-in-white and
chassis weight
– to deliver a 13.5% reduction in
CO2 equivalent (eq) emissions during
the vehicle’s use-phase
– to achieve these savings at neutral cost
without compromising the vehicle’s safety
performance
54% AHSS
Processes
• Hot stamping
• Stamping of LWB
• Roll forming
29 parts
16 parts
2 parts
Choose the best weight saving / cost compromises
24
S-in motion® Pickup Trucks
S-in motion® Pickup Trucks
• 174 kg (23%) of weight savings compared
to baseline weight (748 kg)
• Optimal solution embarks 63% Advanced
High Strength Steels including 18% Press
Hardened Steels
• Solutions are validated for crash and
stiffness requirements
• Main complex parts are validated for forming
and assembly
22kg additional weight saving with emerging grades
25
S-in motion® Ultra Lightweight Steel Door
C-segment vehicle
Baseline Front Door
18.3kg
S-in motion® S1
Lightweight Steel Door
14.5kg
13.3kg
12kg
Short term
Short term Ultra lightweight steel door - Market ready
Weight breakdown
Medium term
Steel grades
1. Door inner
Laser welded blank AM05 0.8mm /0.6mm
2. Waist beam
MS1500 0.9mm & DP780
3. Door beam
Usibor®1500
Tensile strength values
Weight: 13.3 kg
Weight savings: 4.9 kg / 27%
Cost savings vs Alu: 30%
4. Hinge reinforcements
Usibor®1500
5. Outer panel
FF280DP (490DP) 0.6mm
Opening the door to more weight savings
26
Customer testimonials
Armin Plath, VW’s head of materials research and manufacturing:
“Volkswagen is using high-strength steels in increasing amounts. It is a
very cost effective way of reducing weight.”
Peter Mertens, Senior Vice President of research and development
for Volvo
“Volvo prefers boron steel to aluminum because of the strength properties
and the added safety in a crash.”
Mike Sweers, Chief Engineer for Toyota’s North American truck
division:
"If you are designing properly for the material, you can achieve the proper
weight savings. If you just try to make the mass reduction purely by
material itself, you’ll reduce weight but won’t optimise it. It all really starts
with design."
27
Key takeaways
• We understand the challenges and proved that steel can meet these
challenge
• We have products and market position to capture growth
• By leveraging the resources of our global R&D organization, ArcelorMittal has
become a unique provider of steel solutions for the automotive market:
• a broad global product offer, constantly in evolution
• a high level expertise in all processes and in-use properties
• an incomparable ability to provide highly engineered solutions for
weight and cost savings
• Advanced technological capabilities (Usibor® for hot stamping / Laser
Welded Blanks and Fortiform® range of 3rd generation AHSS for cold stamping)
• We are convinced that steel will remain the preferred material for car
manufacturing due to its unique ability to bring affordable weight saving
solutions
• We are investing to back this franchise business
Steel to remain material of choice for automotive industry
28
Q&A
New ArcelorMittal IR app and contacts
Daniel Fairclough – Global Head Investor Relations
[email protected]
+44 207 543 1105
Hetal Patel – UK/European Investor Relations
[email protected]
+44 207 543 1128
Valérie Mella – European/Retail Investor Relations
[email protected]
+44 207 543 1156
Maureen Baker – Fixed Income/Debt Investor Relations
[email protected]
+33 1 71 92 10 26
Lisa Fortuna – US Investor Relations
[email protected]
+312 899 3985
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