Sapa Group - Shape Magazine 2003 # 1 - Aluminium / Aluminum

Shape A magazine for the Sapa Group’s stakeholders

No. 1, 2 0 0 3

PR E SS STOP

HEAT TRANSFER

Sapa acquires one of Europe’s largest producers of profiles

One of Sapa’s hottest companies

CH I NA Expansion for Profiles and Heat Transfer Sapa and I KEA become partners

100-YEAR HISTORY

ALU M I N U M BY DE S IG N – exhibition on world tour

Shape

A magazine for the Sapa Group’s stakeholders No. 1, 2003

Collaboration between Sony and Sapa yielded results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Sapa Heat Transfer world leading in heat exchangers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Aluminium profiles in newly constructed Polish basilica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Heat sinks – exciting new area . . . . . . . . . . . . . . . . . . . . . 7 Sapa Profiles in partnership with IKEA . . . . . . . . . . . . . . . 8 Major order for bicycle lockers for Sapa in the Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Aluminium by design- exhibition on world tour . . . . . . . . 10 Analysis by Anders Haskel . . . . . . . . . . . . . . . . . . . . . . . . 12 Laser technology – seminar in Vetlanda . . . . . . . . . . . . . 12 Danish innovation – aluminium in laboratory fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Profile school . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Aluminium – the metal of the future . . . . . . . . . . . . . . . . 14 Sapa expands in China. . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Aluminium conference in Rome . . . . . . . . . . . . . . . . . . . . 16 Environment, health and safety . . . . . . . . . . . . . . . . . . . . 17 Aluminium – the environmental metal . . . . . . . . . . . . . . . 17 Sapa around the world – announcements . . . . . . . . . . . . 18 German-Polish collaboration resulted in glowing ideas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

The editing of this issue was completed on April 22, 2003. Shape is a magazine about the Sapa Group. It is published in eight languages twice annually and is intended for customers, shareholders, analysts, journalists, employees and others. Shape is also available via the Internet at www.sapagroup.com. Editor in chief: Eva Ekselius. Production: RHR Reklambyrå AB. Malmö, Sweden. Changes of address: Customers should inform their contact person at Sapa, shareholders the institution that manages their account, employees their salary department and others the Communications and Investor Relations Department on +46 8-459 59 00. © Sapa AB, 2003 Feel free to quote us, but please indicate your source. Sapa is an international business group, which develops, manufactures and markets value-added aluminium profiles, profile-based components and systems, and heat-exchanger strip in aluminium. Following divestments and restructuring in 2002, today’s Sapa has sales of approximately SEK 2.7 billion and has nearly 6,500 employees in Europe, the US and Asia. The Group is one of Europe’s leading manufacturers within its field. Major customer segments include the construction and engineering industries.

LEAD ARTICLE

Generating growth in a recession A year ago, I warned that the market would continue to be weak, although, at the same time, I stated that we were well prepared to tackle the recession if it were to persist. I was proven right on both counts. The longawaited upswing in the economy has yet to materialize, but by rationalizing at an early stage, improving the efficiency of our operations and continuing to focus on growth areas such as Poland, China and Heat Transfer, we were able to double our profits and conclude 2002 with a very healthy balance sheet. During the first quarter of 2003, the trend from the end of 2002 continued and profits increased by 66 per cent. Sapa is the world’s largest independent manufacturer of extruded aluminium profiles and the world’s second largest producer of aluminium strip for heat exchangers in the auto motive industry and we are continually increasing our share of the market. For Profiles, this increase has been most apparent in North America and for Heat Transfer in China. In Europe, we have combined maintained market shares with improved profits. Since the early 1990s, our volumes have increased almost four times as rapidly as the total market. Half of this increase is attributable to internally generated growth and half through acquisitions. During 2002, we expanded in Poland, the Czech Republic, Spain and China. Value-added operations expanded with the acquisition of Pressweld in the UK. This acquisition strengthens our position as a supplier to the automotive industry and represents an important building block in our Automotive business

segment. During early 2003, we have worked intensively to further strengthen the Group and to extend our positions. Heat Transfer’s successes in Asia have inspired us to increase our investments in that market by establishing value-added refinement of profiles in China. This process began during the first quarter. During the second quarter of 2003, we have also acquired 56 per cent of shares in our major Belgian competitor Remi Claeys Aluminium. RCA is one of Europe’s largest independent manufacturers of profiles, systems and welded tubing in aluminium. The company complements Sapa’s profile, building-system and heat-transfer operations extremely well. The acquisition strengthens our market positions in the Benelux countries, France and Germany. I am proud of the positive atmosphere that prevails within the Group, characterized by customer orientation, professionalism and an increasing openness to changes that strengthen our competitiveness. We are ready for continued expansion. I feel that our strong business concept creates added value in several dimensions – for our customers, employees and shareholders.

Staffan Bohman President and CEO of Sapa

Sapa AB is listed on the A-list of Stockholmsbörsen (Stockholm Exchange).

Our website, www.sapagroup.com, contains information about the Group, its operations and markets, as well as financial information. The next issue of Shape will be published during the autumn of 2003. Sapa AB (visiting address: Humlegårdsgatan 17), Box 5505, SE-114 85 Stockholm, Sweden Tel +46 8-459 59 00 Fax +46 8-459 59 50 www.sapagroup.com

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Sapa acquires major Belgian producer of aluminium profiles PR E SS STOP

Financial information: • Interim report, three months ended March 31, 2003 April 11, 2003 • Interim report, six months ended June 30, 2003 July 18, 2003 • Interim report, nine months ended September 30, 2003 October 20, 2003 • Preliminary report on full-year 2003 • 2003 Annual Report

Sapa is currently in the final stages of acquiring Remi Claeys of Belgium, one of Europe’s largest independent manufacturers of aluminium profiles, systems based on aluminium profiles and welded aluminium tubing. Operations are located primarily in the Benelux countries, France and Germany. In 2002, the company posted sales of EUR 293 M and an operating margin of 4.5 per cent. The company has 1,100 employees. Remi Claeys is listed on the Euronext exchange in Brussels.

Sony met Sapa and made beautiful music! Large picture screens and surround sound – today, an increasing number of people are going to the movies at home. Hometheatre systems have become prominent items of furniture in our living rooms. Loudspeakers in particular play an important role. Sony therefore took extreme care in selecting a partner to manufacture loudspeaker casings for its new Home Movie systems.

Last year, Sapa in Poland delivered nearly 500,000 speaker casings for Sony’s new DAV-S550 Home Movie system.

Sony places stringent demands on anodising and perfect surface finish.

Sony’s new, super-compact audio and video systems are part of the rapidly accelerating trend in integrated home entertainment. Design is an important element. Most consumers want products that do not require large amounts of space and do not conflict with the interior design features of their homes. Accordingly, Sony focused sharply on the appearance of its new DAV-S550 system. Particularly stringent demands were placed on the five micro-satellite speakers, which are the components of the system visible in the living room. Extensive demands on surface finish and logistics It was important to find a supplier that could meet Sony’s demands on design and finish. The Japanese design team chose aluminium to create a quality, high-tech image. But they were not satisfied with aesthetic appearance alone. In an industry that lives on continuous introductions of new products,

logistics are critical. The supplier would have to provide large delivery volumes at short notice. There could quite simply be no weak link in the logistics chain. Sapa won on precision, surface finish and beneficial partnership Sony ultimately chose Sapa’s production unit in Poland, which was the only supplier able to meet Sony’s demands on quality and logistics. The surface finish quality, for example, was better than anything Sony’s Japanese designers had seen previously. A contributing factor in Sony’s selection of Sapa was the company’s approach of working in close partnership with its customers. Or to quote Peter Arndt, Managing Director of Sapa Poland: “We were asked to produce some samples and sent them to Tokyo. Initially, we had some problems with small differences in anodising between different series. We discussed the problem openly and honestly with the customer, which

created greater confidence in our ability to solve the problem – which we did! Sony’s order is a good example of how we operate in close partnership with our customers, with the determination to adapt to their needs. This generates results.” Fast work led to success Sapa manufactured the aluminium casings for the speakers that were introduced in Europe just before the start of the 2002 Christmas shopping season and became a huge success. The finished casings are delivered to assembly plants in Hungary that deliver the assembled products to Sony in Germany, which markets the equipment in Europe. In only eight months, a number of problems were solved with this advanced large-volume product requiring complex production. S

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S A PA H E AT T R A N S F E R

One of Sapa’s hottest companies “We manufacture aluminium strip for brazed heat exchangers. Nothing else.” Sapa Heat Transfer in Finspång, Sweden lives by a very simple and powerful vision. As early as in 1977, it became the first company in Europe to deliver commercial quantities of specially plated, aluminium sheet.

At that time, the company was the plate and strip division of Gränges Aluminium. A method had been developed allowing a brazed surface finish to be applied to aluminium strip by hot rolling, facilitating the production of heat exchangers. The method made it possible to replace copper with lower-weight aluminium in radiators and other heat exchangers in passenger cars. Since then, the development curve for Sapa Heat Transfer has pointed upward. Shape recently met the roller king himself, Michael Mononen, President of Sapa Heat Transfer in Finspång, and some of his employees. We talked about Heat Transfer’s success in a time characterised by weak global demand. Strong increase in volumes “Our delivery volumes increased by 13 per cent last year, and 38 per cent in the fourth quarter,” says Michael Mononen. “The strong increase was attributable to a decline in competition and the simple fact that our specialisation makes Heat Transfer an attractive choice for our customers. In addition, our operations in China have developed extremely well. “We are the only company in the

world that specialises in materials developed specifically for brazed heat exchangers. We concentrate our resources on efforts to refine our complex production process and strengthen the competitiveness of our customers by offering them continuously improved solutions.” World-leading company in continuous development Since 1977, development has progressed steadily and, during the 1990s, tonnage increased by about 20-25 per cent annually. When production of strip for beverage cans was discontinued in 1997, the company turned its attention to materials for heat exchangers in motor vehicles, which became a special product area where the company invested wholeheartedly. The transformation was based on a clearly defined strategy of change. Today, Heat Transfer holds a leading global position, manufacturing 60,000 tonnes annually. The path to the company’s current success was characterised by determined strategic efforts conducted in parallel with continuous development campaigns.

Logistics are important “Heat Transfer is the clear market leader in strip used in the production of automotive radiator tubes and also of the clad fins that are included in airconditioning system condensers. In the remaining, ‘thick materials,’ some work still needs to be done, and we are currently concentrating on this area. Logistics are also important,” says Michael. “We must be able to deliver the right quality and quantity at the right time, and reduce our lead-times.” “It should also be noted that we work with no less than 1,000 different items. We have more than 30 basic alloys that are complemented with different braze-metal coatings for different brazing requirements and different types of heat exchangers. A large number of variations rapidly emerges, as well as rather complicated flows,” says Mattias Joelsson, logistics manager. The total through time in production is about 30 days. The process starts with the casting of core and braze-metal alloys. The braze-metal slabs are hot rolled to thick plates. The core slabs are scalped on the surface and thereafter joined to the brazemetal plates by welding. The welded

Sapa Heat Transfer rolls aluminium strip for heat exchangers used by the global automotive industry. From left to right: hot rolling, cold rolling and the finished product – brazed heat exchangers.

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Michael Mononen, President of Sapa Heat Transfer, stands by a 10-tonne aluminium blank that is hotrolled to produce strip with a thickness of 0.2 mm for heat exchangers used by the world’s automotive industry. Sapa Heat Transfer in Finspång has annual sales of SEK 2 billion and 650 employees, including 425 in Finspång, and operations in Sweden, China, South Korea and the US.

assemblies weigh about ten tonnes. These assemblies are then heated and hot and cold rolled to a thickness of about 1 mm. After hot rolling, and in all subsequent processing, the material is in coil form. The lead time from scalping the core slab to a cold rolled 1-mm strip has been reduced from 14 to seven days. The lead time for further cold rolling and slitting to achieve the final product has been reduced from 23 to 11 days. Accordingly, lead times have been reduced by about half. Intermediate stocks shorten lead times “Our planning horizon is three months. Customers place their orders three months before they need their deliveries. A great deal can happen during a period of three months. Our intermediate station stocks offer one way to reduce lead-times. Currently, about 80 per cent of all orders pass through our intermediate stations.” Greater strength through broader customer perspective “The greatest challenge for Heat Transfer is creating value-added for customers. To achieve this objective, we must understand the entire process, from our suppliers through to product deliveries to the customer. We are working to broaden our perspectives and skills so that we can better contribute to our customers’ competitiveness. Naturally, this will also strengthen our position,” continues Michael. Strongest growth in China In Europe and the US, growth with regard to car radiators is limited.

Over the long term, market growth will amount to a few percentage points annually. The market potential in Asia is different, with particularly strong market growth in China. “Growth in Europe is attributable in part to increased utilisation of air conditioning in small cars. There is also a trend toward larger heat exchangers in parallel with improved automotive performance standards. Asia is different. Private motoring is increasing in Southeast Asia, and especially in China. Our delivery volumes in China increased by nearly 60 percent during 2002,” says Michael. Promising outlook “Limited growth in mature markets has partly been offset by the disappearance of several competitors. Naturally there may be other companies planning to capture market shares in the future. At this time, however, we do not see any clear signs of this happening.” It is doubtful that large rolling mills will maintain a product as complicated as heat-exchanger strip over the long-term perspective, since it will never account for a significant percentage of their overall production. It is easier for a strictly specialised company such as Heat Transfer to achieve success in this market. Heat Transfer is number two in the world today, with about 15 per cent of the global market, which offers strong potential for continued growth. “But we have to position ourselves and continue to streamline our processes. And we are doing that now. Naturally, we are also looking at other markets where our skills and expertise can be applied. For the time being, however, we are focused on our present course, which we believe offers good growth potential. If we can show that we create value for customers, our business will also grow, which is exactly what we have seen during the past year,” concludes Michael Mononen. S

Three-stage rolling Sapa Heat Transfer rolls aluminium strip for tubing and fins, as well as producing coils and other thicker materials that are included in heat exchangers. Heat Transfer delivers to customers such as Valeo, Behr, Denso, Calsonic and other automotive industry tier-1 suppliers. Heat Transfer’s production begins with a 10-tonne slab and then follows a process comprising three main stages. 1. The slab is rolled from a thickness of 575 to 4 mm in a hot-rolling mill. The braze-metal plates are applied to the slab before hot rolling. The process can involve up to five layers of alloys, resulting in a “multi-clad” material. 2. Cold-rolling comprises several phases at different rolling mills. The finished thickness of the thinnest strip is 50 µm. 3. After cold rolling, the strip is cut into widths of 12 to 1,400 mm based on customer specifications. S

Intensive development work The activities of Sapa Technology, the Group’s research and development centre, are divided equally between Heat Transfer’s materials development and profile operations. Profiles account for 80 per cent of the Group’s business operations, with Heat Transfer accounting for 17-18 per cent. In co-operation with Heat Transfer, Sapa Technology develops new alloys and improves existing ones to meet market demands on durability, ease of processing, brazing characteristics, malleability, corrosion properties and production costs. The centre also works on the continuous development of Heat Transfer’s own production processes, monitors new technological developments and participates in international co-operation programmes. The highly interesting activities of Sapa Technology will be presented in a coming edition of Shape. S

Metal production since 1580! Aluminium rolling operations began in Finspång during the 1920s. The first brazed heat-exchanger strip was produced in 1975. Finspång is one of Sweden’s oldest industrial communities, with industrial production activities dating back 400 years. Sapa Heat Transfer is a direct descendent of Finspångs Bruk, which was founded during the 1580s. Finspångs Metallverks AB was established in 1913 with copper production. Gränges entered the picture in 1969 and, today, Heat Transfer is a part of the Sapa Group. Under various names, Heat Transfer in Finspång has manufactured semi-finished aluminium products, sheet and strip since the 1920s. S

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Sacred architecture aluminium profiles for new Polish basilica In 2000, one of the largest

that abandoned operations in the Polish market before the structure was completed. This meant that investors and Okna were suddenly left to fend for themselves,” he explains.

doors (one for each week

The basilica is twice as wide as Notre Dame in Paris, twice has high as the cathedral in Milan and its steeple is 141 metres high. The basilica has also become an important pilgrimage destination in Poland.

of the year) and 365 win-

Building system deliveries

Tomasz Karwatka was familiar with the project and, in collaboration with designers from Sapa, he was able to offer the customer a smart solution. The profiles for the windows consist of Sapa Profile’s standard Thermo 74 building system, which were delivered from Vetlanda in Sweden to the Netherlands. The external “cover” profiles” were pressed by Sapa Aluminium BV in the Netherlands and subsequently shaped, gold-anodised and polished along with profiles from Sweden by two Dutch co-suppliers.

churches in the world was inaugurated in Lichen, Poland. The church has a calendar motif, with 52

dows. The structure was inspired by Saint Peter’s in Rome and is one of the largest churches built in Europe since the end of the Second World War.

Sapa delivered aluminium profiles for this monumental ecclesiastical structure. In advance, Tomasz Karwatka, President of Sapa System sp.z.o.o. in Poland, had established contacts with PPU Okna sp.z.o.o, a window and door manufacturer, and independent architect Barbara Bieleckas, finalizing negotiations to secure the contract for Sapa. “Sapa had the best capabilities to deliver aluminium profiles in the shapes and colours that were required for the complex structure, and we made the final deliveries,” says Tomasz Karwatka. “Initial deliveries were made by an American company

Cross-border operations

operating philosophy,” says Kent Johansson, export manager for Sapa Profiles’ building systems in Sweden. “Since the profiles were going to be anodised and processed in the Netherlands, the project was also complicated from a logistics perspective and from a Polish taxation perspective. Our systems and solution offered obvious financial advantages for the customer, based mainly on our ability and experience in cross-border operations.” S

Three Sapa companies involved “This project clearly reflects our cross-border

Inspired by St. Peter’s in Rome, one of the largest churches in Europe reaches toward the sky over Poland. The basilica’s steeple is 141 metres high. Sapa delivered window profiles for this complex construction project.

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Heat sinks – exciting new area For many years, Sapa has provided heat sinks for the electronics industry and we consider ourselves the leader in the manufacture of cooling components. Actually, it is quite natural to construct heat sinks in aluminium since the material has favourable conduction qualities and is easily processed through cutting and other techniques. Extrusion technology, heatconduction capacity, low weight, low cost and the highly mouldable nature of the metal are significant advantages in the production of heat sinks.

Are heat sinks really a “new” area when you have been delivering cooling components since the 1960s? In collaboration with a few largescale customers, we have worked in a focused manner to improve the qualities of our heat sinks. This is true of both the basic material, which has been optimised to provide the best heat conduction with maintained hardness, and the techniques for extruding cooling profiles with high, slim fins. What does optimising the basic material mean? In its basic state, unhardened aluminium is soft but has favourable conduction properties. As hardness is increased, heat conduction decreases. Because a hard material is required for tooling, while a soft material is required for heat-conduction purposes, an awkward situation arises. Producing efficient

cooling components using cutting techniques becomes difficult. We have therefore invested an extensive amount of development work into optimising alloys for heat conduction while maintaining hardness. The result is the EN AW 6063 variant currently used in our heat sinks. This allows us to produce cooling components using advanced processing while retaining heat-conduction capacity. The alloy is one of the factors behind the success of our heat sinks. What is meant by the technique being refined? Another success factor is the technique of extruding cooling profiles with high, slim fins, while also being able to maintain narrow gaps between the fins. There is a relationship of more than 11:1 between the height and breadth of the obtrusions on extrusion dies for today’s advanced cooling profiles. In other applications, this ratio is generally 3:1 or 4:1. What drives development forward? In collaboration with our customers, we have gradually improved the characteristics of cooling components. To date, customers’ requirements have been met and even exceeded. We place customers and their requirements in focus. There are no standard heat sinks in our range. Instead, we concentrate on developing heat sinks that meet our customers’ specific needs. What does the future hold? We have a number of development projects under way that could result in major products in coming years,

including advanced liquid-cooling components where friction stir welding (FSW) technology can be used. To remain one step ahead of the market, we collaborate with a number of suppliers of advanced cooling technologies and several academic institutions. When our customers require a particular solution, we want to have the experience necessary to meet their expectations. What can Sapa offer?

Shape interviews graduate engineer Lars-Erik Lindström, sales technician at Sapa Profiler AB in Sweden.

We can offer help in optimising heat sinks, designing fins that provide the maximum heat conduction. We are able to simulate and verify the characteristics of the cooling component. We can also optimise the design for costefficient production and refinements such as coating. Assisting us is Sapa Technology, which has the equipment for this, including a wind tunnel and expertise in FEM calculations. What should I bear in mind as a customer? We want to know the external conditions. Together we can then develop a heat sink that solves the customer’s problem in a costefficient way. No one else in the industry has our holistic know how from design to series production. S

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Pir, Ramp, Avsikt, Åsnen, Billy, Stolmen and Seim are all names from IKEA’s product range and are well known to a large number of people throughout the world. What is not known to everyone is that the products incorporate aluminium profiles. SAPA PROFILER

Best in the world! necessity in cooperation with IKEA Today, Sapa is a major supplier to IKEA and has IWAY approval. A few years ago, IKEA’s senior management noted changes in society concerning the environment and ethical issues and established an in-house standard, IWAY, as a platform for raising all suppliers to a minimum level regarding such matters as the working environment and the external environment. If a company is unable to meet the requirements of the standard, it is excluded from conducting any business with IKEA. This is a stance that applies globally. In recent years, Ulf

Svensson at Sapa Profiler AB in Vetlanda and his sales team have proven that we are able to meet IKEA’s requirements. Over a ten-year period, we have continually advanced our positions. In actual fact, the collaboration began back in the 1970s, although the partnership has truly gathered pace in the past few years. How have we been able to achieve such great success in our efforts with this world-leading company? “We have applied a longterm approach,” explains

Ulf Svensson. “And now, when aluminium and stainless steel have become a trend in the furniture industry, we have had the opportunity to come on board at an early stage, being able to present smart solutions and production schedules. Collaborative partner Today, Sapa acts as a partner. We live in a society where time is an increasingly scarce

Bike lockers for MSEK 40! Sapa’s Dutch company, Sapa Aluminium BV has secured an order for aluminium profiles for a new type of bicycle locker by Armada Outdoor International, one of Europe’s leading manufacturers of unassembled street furniture.

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The Sapa sales team that works with IKEA. From left: Christer Johansson, Helén Carlsson, Johanna Almqvist and Ulf Svensson.

commodity. New items must be added to the product range at an increasingly rapid rate. In turn, this demands more rapid development and

The Dutch are a nation of cyclists. There are 20 million bicycles for 16 million inhabitants. In Amsterdam and the other principal cities, 16 percent of bicycles change hands (involuntarily) each year. This makes bicycle storage a highly topical subject in the Netherlands. To promote the use of collective transport and reduce the risk of bicycle theft, the Dutch national rail company has initiated an extensive project to equip all of the Netherlands’ 380 rail stations with secure bicycle-parking facilities. The installation of the lockers is to be completed in 2006. Fierce competition for contract Five companies competed for the contract. The proposals were judged according to their aesthetics, security, functionality, space-efficiency, overall cost and investment cost. Armada Outdoor International, in

shorter periods for producing prototypes and finished products. “You cannot be a pro at everything,” says Ulf. “IKEA is something of a trendsetter in the industry and is highly skilled in design. We are professionals in profiles and can contribute technical support and assistance with development and design where aluminium profiles are concerned. We form part of their development

chain and by joining the process early on, we are able to optimise the product.” Delivers final product Working with this worldfamous Swedish company is always a challenge. “We are not only competing with Swedish and Nordic companies. We are competing globally. Actually, it’s not just a matter of supplying the aluminium

collaboration with Sapa, won the contract. The Dutch rail company appreciated the special design, which is largely based on aluminium profiles used as the framework for the bicycle lockers. Armada also placed considerable emphasis on Sapa’s logistics capabilities. “Our possibilities as a Group to offer technical assistance and extensive support convinced Armada to select us as the total supplier for the full range of profiles,” says Rob Hogendorf, account manager at Sapa in the Netherlands. Production in both the Netherlands and Sweden Once completed, the lockers will provide space for more than 100,000 bicycles. The profiles are produced at Sapa’s press facilities in both Sweden and the Netherlands. All further refinement takes place in the Netherlands where the profiles

pro-files. We provide a finished product. For bathroom and kitchen-unit doors, we must provide a finished product that includes all components such as hinges, handles, screws and the glass. We are involved with the entire chain right up to the finished product that is packed in IKEA’s packaging and shipped to central warehouses in Sweden, Germany, Belgium, France, Poland, Switzerland, the UK, Malaysia and North America. It isn’t easy being best at everything,” affirms Ulf Svensson. “But if we want to continue working with IKEA, we also have to be the best in the world at accessories.”

areas and fields of operations. Currently we deliver to only a few of these. In other words there is great potential. Aluminium profiles are at IKEA to stay. According to Ulf Svensson and his colleagues at Sapa, this is a long-term commitment. Aluminium is not just a trend – today it is a product concept. “IKEA has high requirements and is a demanding customer,” explains Ulf Svensson. “Because this is a matter of mass production, we conduct quality assurance at an early stage. Accordingly, we must constantly improve – and we do. The process of improvement is central to our partnership with IKEA!” S

Great potential IKEA is actually several customers. The Group includes several business

are also powder coated with a graffiti-resistant lacquer. “Aluminium profiles are well suited to this type of outdoor project, where demands on durability and resistance to corrosion are high. The order is the result of close collaboration between Armada Outdoor International and Sapa,” says Jos van Leeuwen, President of Sapa Aluminium BV in the Netherlands. Smooth cooperation A second stage required the installation of prototypes at 40 stations. This was a difficult task that was solved through strong teamwork between Armada and its suppliers. “The various suppliers cooperate well. The collaboration with Sapa works particularly smoothly. They meet our requirements and their account managers provide useful support. Their back office plays an

active role in day-to-day procedures and is extremely friendly to deal with,” says Dorus Mimpen, projectlogistics manager at Armada. Realistic tests Extensive testing preceded the commencement of production. Naturally security played a large role and no effort was spared in making the bicycle lockers theft-proof. “The most difficult part was proving that a professional bike thief would not be able to open the locker in less than five minutes. We brought in a professional thief who was allowed to use any tools he liked. After several failed attempts, we convinced our ‘test thief’ to give up,” says Jacco Zwart, sector manager at Armada. S

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ALU M I N I U M Exhibition on world tour

As treasured as gold. That was the general perception of aluminium when it was first introduced to the market in the early 1900s. It was a rare and exclusive metal. Today, it is taken for granted. “Aluminium by Design” is an exhibition that shows aluminium in different perspectives and illustrates the significance of the metal to modern design. The interdisciplinary structure of the exhibition provides the material with the appreciation it deserves. It describes how aluminium has inspired creativity and contributed to new innovations in virtually all sectors of industry, from furniture, sculpture, jewellery, architecture, fashion, transportation, consumer and industrial products to experimental avant-garde movements.

150 different objects The history of bronze, iron and copper dates back to antiquity. Aluminium was introduced for the first time at the Paris Universal Exposition in 1855. The chemist Henri-Sainte-Claire Deville had succeeded in efforts to manufacture enough aluminium to produce the first ingots, and the first small items were presented at the exhibition. The history of aluminium gained momentum in parallel with the industrial revolution of the early 1900s. It was actually the mobilisation, chaos and damage caused during WWII that provided aluminium with the strong impetus that carried forward to its breakthrough as a common metal material for everyday products and applications. The exhibition shows the diversity of application areas (150 different objects are on display), from simple soda cans and kitchen devices to sophisticated aircraft components and architecture. Modern design During the 1920s and 30s, aluminium became a favourite material

“Chaise Longe No. 313,” 1932. Designer: Marcel Breuer.

Prototype in aluminium, leather and fabric, 1937. Designer: Frank Lloyd Wright.

for prominent furniture designers and architects. Members of the avant-garde such as Marcel Breuer, Ludwig Mies van Der Rohe, Le Corbusier and others made significant contributions that strongly identified aluminium with modern design. It became fashionable to experiment with the material in totally unrelated areas of application. Later, in the mid-1960s, fashion designer Paco Rabanne was inspired by contemporary architecture and sculpture. His interest in metal was vividly represented in his surroundings, and his metallic minidresses were almost immediately depicted by the media as futuristic and symbolic of a new approach to fashion design.

RCA Victor Special, Model N Phonograph, 1937. Designer: John Vassos. Manufacturer: Radio Company of America.

The exhibition is not limited to displays of early design history. Furniture designers and architects are also represented, including Marc Newson’s Lockheed Lounge from 1986, his vision of “a floating metallic form, like a gigantic drop of mercury,” and Philippe Starck’s Hudson Chaise, a chair completely in aluminium from 2000. Up-to-date

Biscuit Box, British, early 20th century. Manufacturer: N.C.J for Carr & Co. (retailer)

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The utilisation of aluminium is expanding. Architects and designers

BY DE S IG N Eros aluminium sculpture, Piccadilly Circus, 1887-1893. Artist: Sir Alfred Gilbert.

still refer to aluminium as the material of the future, always up-to-date. Aluminium has a multi-faceted roll in today’s shifting and tolerant world of design, and a qualified guess is that aluminium will play the same role for a long time into the future. Technology and alloys are being developed and new application areas are being discovered constantly. More than 100 years have passed since the San Gioacchino church in Rome was fitted with aluminium domes, and more than 100 years have passed since the aluminium sculpture of Eros was erected at Piccadilly Circus in London. A material for the future, with a history dating back more than 100 years. S

Mini-dress, 1968. Designer: Paco Rabanne.

FACTS

The “Aluminium by Design” exhibition is now on a world tour. It started in 2000 at The Carnegie Museum of Arts in Pittsburgh, PA, in the US, sponsored by the Alcoa Foundation, before moving on to New York and Montreal. The European Aluminium Association (EEA) has now

Chair, 1932. Designer: Marcel Breuer

brought the exhibition to Europe. It has been shown in London and Brussels. On June 9, it will be moved to La Villette in Paris,

Aluminium violin, 1932. Manufacturer: Aluminium Musical Instrument Company.

where it will be shown until November 5, 2003.

Lockheed Lounge, 1986-88 Designer: Marc Newson

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The Iraq conflict has cast its shadow over virtually everything going on in the world today. A weak economy, falling share prices, high oil prices – it has not been easy to be an optimist during these past winter months, and those who wish to do so can easily paint a dark scenario for the future, especially considering the great uncertainty of the global political situation.

A promising future despite everything

T

The current stock market climate has allowed psychological factors to have an unusually large impact. Lower share prices are scaring away buyers and forcing new sellers to the fore. Money is seeking out safe havens, in this case interest-bearing investments. That has resulted in bond yields falling to record low levels. Low interest rates are, in turn, providing an indication that the dismal development of the world’s economies will continue, since the interest situation reflects growth prospects. However, I do not think we should lock our gaze solely on current events. Those who look up will discover that despite everything, there are a few glimmers of hope. Although there has long been talk of a turnaround in the economy, nothing much has happened. Now most analysts are predicting an upswing towards the end of 2003 and that 2004 may be a fairly good year. What’s to say that the analysts

Lasertechnology seminar in Vetlanda

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have it right this time? One strong indication is those very low interest rates and the fact that the economic downturn has lasted so long. Companies have now largely adapted after the boom years of the late 1990s. Many of the investments that were made when the economy was at its peak will soon need replacing. This includes investments in computer equipment. Low interest rates are also creating a favourable climate for consumers. Smaller amounts of household budgets are being spent on housing costs. Instead, that money is being channelled into other forms of consumption. Cutbacks at many companies have resulted in large profits despite a weak world economy. This is especially true of a number of Swedish companies. Stock-market analysts are also anticipating that profits are on the rise. That should mean that the long downturn experienced by the world’s stock markets will soon

The Laser Group industrial association recently organised a laser-technology seminar at Sapa Profiler in Sweden. The goal was to provide engineers and production technicians with skills and ideas about the advantages of the technology in order to develop the use of laser technology in the engineering industry. “We’ve been utilising existing cutting and welding techniques for a number of years now. Thanks to our development work with friction stir welding,

by Anders Haskel

be over. Investors must overcome the psychological resistance that they have built up during three years of falling share prices. The fact of the matter is that, based on normal expectations for future earnings, there are now quite a few companies that are more attractively valued than they have been for many years. Many of the factors I have mentioned in this article are, in various ways, significant for Sapa and other engineering companies. General global uncertainty is inhibiting growth. At the same time, demand for aluminium is growing somewhat faster than the world economy, and there is no reason to believe that this trend will be broken. While 2003 might well prove to be yet another in-between year, 2004 may well see matters beginning to look very positive again for Sapa’s customers and, consequently, for Sapa as well. S

we have made significant progress in the area of joining techniques. In the UK, we are already utilising laser cutting at Sapa Pressweld,” says Sapa’s technical director Åke Andersson. Lars Forsberg, who is overseeing changes at Sapa Profiler in Sweden, sees advantages to the method. “It results in better welding joints, less aluminium waste and increased durability. I hope that we will soon be able to invest in this method,” he says. S

Åke Andersson, technical director for the Sapa Group, left, and Lars Forsberg, who is overseeing changes at Sapa Profiler in Sweden, study a profile that has been welded using a so-called hybrid laser.

Five years ago, Labflex opened the door to the future. An entirely new series of laboratory furniture, based on aluminium profiles, has set a new industry standard. Sapa was a valuable collaborator during the development effort.

“We were somewhat surprised by the many possibilities offered by aluminium profiles,” says Søren Thomsen, project manager at Labflex, which manufactures laboratory furniture.

LABFLEX

Innovative Danish design uses aluminium in laboratory fittings Since its inception in 1961, Labflex of Århus, Denmark has made a name for itself in the laboratory world. The company supplies laboratory furniture worldwide. Traditionally, such furniture has been made out of wood and steel, but a few years back Labflex embarked on a new course. New vision for lab furniture “We were looking for fresh design impulses and hired external designers who recommended aluminium,” explains Søren Thomsen, project leader at Labflex. “Today, the ventilation of aggressive gases in laboratories is so effective that one can easily use aluminium.” The new furniture concept was named Matrix and completely changed people’s notions of laboratory furniture. In the past, everything was bolted down, but since aluminium combines low weight with high strength, furniture can now be made portable. Matrix is extremely flexible and can be positioned and moved according to need. “Matrix can provide a free span of up to four metres without interfering table legs, while supporting up to one tonne of pressure. A corresponding steel construction would be much too heavy,” says Søren Thomsen.

Electrical conduits and surface treatments Although Matrix is Labflex’s only furniture series in aluminium, the material is also gaining ground in other products. In the past, wires were hidden in plastic channels. Today, aluminium profiles serve both as load-bearing elements and as electrical conduits. Labflex has also utilised Sapa’s technology in areas other than profiles. They chose Sapa’s HM-white surface treatment for their white Omega series, an electro-coating process that provides an absolutely smooth colour layer of uniform thickness. “With powder coating thickness can vary, but with HM-white the entire surface layer is exactly 10 µm thick, which ensures that our snap-lock mechanisms work,” explains Søren Thomsen. Close collaboration Five years ago, Labflex only had a couple of tools at Sapa. Today that number is much larger and continues to grow. “Today, if a customer has a special request, we solve the problem ourselves. You don’t have to produce too many metres of aluminium profiles to recover tool costs, and it

The Matrix Wall is ready for use with gas and electrical installations hidden in support beams and columns. With its aluminium-based Matrix line, Labflex has set a new standard in laboratory furniture.

doesn’t cost anything to store the tool at Sapa,” says Søren Thomsen. Sapa is always involved as a consultative partner during the design phase, providing advice on durability and production methods. But as aluminium profiles have become an integral part of production at Labflex, they have been able to manage a larger share of the design work themselves. Moreover, Søren Thomsen has participated in Sapa’s Profile Academy – an introduction to the use of aluminium profiles – which he heartily recommends. “The seminar straightens out many questions and makes aluminium a material you can comprehend,” concludes Søren Thomsen. S

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Is future bright Utilising the elasticity of aluminium Aluminium’s low elasticity modulus (approximately one third that of steel) sometimes results in limitations on usability. But when talking about snap functions within the context of profiles, it is an obvious advantage! Snap locking is an old and well-tested technique for joining profiles. In addition to the material being elastic, the extrusion process has obvious advantages during formation. Dimensioning The appearance and dimensions of a snap joint depend entirely on the requirements and the conditions. Common to all designs are the diagonal insertion surfaces and a jam. Other considerations include adapting the thickness of the material in the spring leg to the length of the leg, the length of the profile that is to be snapped, the alloy and the surface treatment. Hooks are designed differently depending on whether the joint is intended to be permanent or easily reopened. In dimensioning, it is important to check that the tension in the material does not exceed the tensile yield limit, which would result in permanent deformation and the loss of the snap effect. Surface treatment Surface treatment is very important. Anodising results in low friction and facilitates snapping, untreated surfaces are significantly rougher. Powder coating also results in low friction, but on electrostatically powder-coated profiles, the paint surface can, in extreme cases, exceed 100 µm on every surface. In a snap operation, four separate surfaces are almost always involved. That could result in a total dimension increase of 0.4 mm, which must be taken into consideration when designing the profile. Problem solving – a concrete example A designer wanted to create space for a light fixture by snapping together an upper and lower profile. Since the profiles were approximately 160 mm wide, the demands for design and measurement tolerances were too great. To deal with this problem, the snaps were moved to the middle. Since the profiles could be about two metres long, it was still difficult to mount by hand in long lengths. The solution finally implemented was a third profile, cut in shorter lengths (40-50 mm), which provides significant advantages in mounting and eliminates all earlier problems. S

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The question is rhetorical. Aluminium fulfils the visionary dreams of every age. Jules Verne’s aluminium moon vehicle became a reality when Apollo 11 landed on the moon in 1969, exactly 100 years later. Today’s large cities, with their aluminium framed glass facades are reminiscent of the futuristic cities in Flash Gordon magazines from the 1930s. The question is, what are our current visions for the future? And how will these affect demand for aluminium? Sapa looks at trends Docere Intelligence AB, a leading businessintelligence analysis firm, has assisted Sapa in exploring trends that will influence the future use of aluminium. According to Docere, it is important to find subtle indicators, such as an increase in the consumption of professional sports and kitchen equipment. The underlying trend could be that sports have become a lifestyle, which may in turn indicate that we are growing increasingly focused on experiences and want to demonstrate this through various attributes. Docere looked at trends within the automotive sector,

telecom, interior design and sports. In the shadow of IT and biotech Exciting developments in materials are taking place in the shadow of IT and biotech, involving polymers, nanotechnology, carbon and composite materials of various kinds. Competing against these new materials is aluminium, a traditional and multifaceted material. It has always had an image as a high-tech material of the future. Polished or brushed aluminium is used in everything from cars and bicycles to laptop computers and furniture to profile products as high-tech. Aluminium is also perceived as environmentally friendly since it is so easily recycled. Lighter cars The automotive industry anticipates that its use of aluminium will increase by at least 50 per cent over the next five years, the reason being to save weight. Consumers want more luxurious cars, with more equipment and greater comfort. At the same time they want cars that are more fuel efficient and environmentally friendly. The solution will be an increasing number of parts made of aluminium.

Sony’s smart little gleaming aluminium electronic dog is a fitting symbol for the futuristic nature of aluminium.

for metal of the future?

Telecom industry’s need for cool Within the data and telecom industries the use of aluminium is growing due to an increasing need to cool electronic components as they become ever more compact. The expansion of 3G networks and broadband is also resulting in a greater need for antennas, connection cabinets and cooling fins.

and the new Le George restaurant at the Centre Pompidou in Paris. The development of “smart” homes is also likely to increase the need for aluminium. When all the electronics in a home are connected together and made accessible via the Internet, solutions will be needed for running cables. Aluminium mouldings will solve the problem.

Attractive and smart in the home

Shiny aluminium sporting goods

New, innovative materials, such as carbon fibre and plastics, are being used increasingly in interior and furniture design. Aluminium is also taking a prominent position in furniture and fittings. Examples include Philip Starck’s Hudson chair

Innovative materials are to be found everywhere in the sports world and a growing number of ordinary sports enthusiasts are using professional equipment. Today, sports are viewed increasingly as a lifestyle choice, meant to be shown off. Many lifestyle sports are mate-

rial intensive, such as mountain biking, golfing, inline skating, sailing and snowboarding. And gyms with aluminium exercise equipment are sprouting up everywhere. A bright but competitive future The future looks bright for aluminium. New innovations, such as aluminium foam, are exciting – it is

ten times more rigid than sheet metal, weighs only half as much, is sound and heat insulating and floats. But there are, of course, also threats, such as carbon, which is becoming increasingly commonplace. Another threat comes from new materials being developed with highly specific properties adapted to particular needs. S 24000000 tonnes

8000 tonnes

65000 tonnes

128000 tonnes

1900

1913

1920

537000 tonnes

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681000 tonnes

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In 1854, it became economically feasible to produce significant amounts of aluminium. The first smelting plants were established in 1888 in France, Switzerland and the US. Since that time, aluminium usage has steadily increased.

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This year’s “Aluminium 2000” conference was held in Rome on March 1822. While one’s first association with Rome might not be aluminium, there is an interesting connection. The Chinese symbol for aluminium, the world’s most common metal.

Sapa expands in China Sapa continues its expansion in China. The Swedish company Sapa Profiler is establishing operations for qualified processing in Shanghai. The investment includes the leasing of plant facilities and the purchasing of CNC machinery and other essential equipment. Sapa Profiles (Shanghai) Ltd. is expected to be fully operational by the start of 2004 and will initially employ around 20 people. “This investment Arne Rengstedt, President of Sapa was necessitated Profiler AB in primarily by our Sweden. telecom customers,” says Arne Rengstedt, President of Sapa Profiler. “As our major international customers expand overseas, we want to follow them, providing onsite service. China is a strategic market for Sapa and, over the long term, this investment will serve as a springboard into a market with significant growth potential.” David Littler has been appointed President of the operation. He has extensive experience in the Chinese business world, coming most recently from Sapa Heat Transfer, which has been established in Shanghai for some time. Sapa Heat Transfer manufactures heat-exchanger strip for the global automotive industry. S

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In 1897, the dome of the San Gioacchino Church was covered in aluminium sheet metal. The roof remains intact to this day!

Rome, the capital of aluminium for five days The conference dealt with everything relating to the aluminium semi-manufacturing industry, from markets to foundry technologies, extrusion, rolling and the surface treatment of sheet metal and profiles. There were also opportunities for field trips. Strong growth in China Among the more interesting presentations was Benson Wu’s, which covered aluminium extrusion in China. Examples were given of the incredible development being experienced in China. Consumption of extruded products increased from approximately 350,000 tonnes in 1993 to almost 1,500,000 tonnes in 2002. Today there are approximately 2,000 extrusion presses in China. Wu predicts a phase of consolidation during the coming years, with increased productivity through the transfer of western technology, more exports to the west and the closing down of smaller operations. Weak demand in Russia Russia stands in stark

contrast to developments in China. M. Lokshin and G. Makarov discussed the production of semi-manufactured aluminium goods in Russia. There, the consumption of aluminium in 1990 was 1,930,000 tonnes – a figure that had fallen to 402,000 tonnes by 1999. Technology push essential Bruno G. Ruettimann gave a presentation about the impact of globalisation on Western European aluminium semi-manufactured products and components, discussing the

effects of increased globalisation on our industry. He emphasised that current developments with increased exports from places like China will continue, as will consolidation within the aluminium industry. In order to ensure continued positive growth, companies will have to become larger while simultaneously differentiating themselves more, partly through the use of new technologies. Ruettimann said that a “technology push” will be essential. S

Fastest growing product areas in China, according to Benson Wu 1. Automotive. Estimated market for 2003 at 200,000 tonnes. 2. Cooling profiles for the electronics industry. It has been estimated that 65 per cent of the world’s production of computer motherboards takes place in China. The annual need for cooling profiles was estimated at 60,000 tonnes. 3. The transportation industry, especially the manufacture of trains, is estimated to require 100,000 tonnes of aluminium profiles over the next five years. 4. The construction Industry. It is estimated that 3.3 million apartments are built annually, which would correspond to an annual requirement of 550,000 tonnes of extruded construction profiles.

C O M M O N P LAT F O R M F O R

Environment, health and safety Since 1999, Sapa’s Environmental Council has dealt with Group-wide environmental issues. Those responsible for the environment at various companies have used the forum to share information and experiences, with the goal of making their environmental efforts more efficient.

Al

Al is the chemical symbol for the metal aluminium, with an atomic number of 13, density of 2,699 g/cm3, a melting point of 660.77°C and a boiling point of 2,467°C.

Aluminium is everywhere. For every 100 kilograms of earth, almost 8 kilograms are aluminium. Supply could be considered virtually limitless! Life on earth is adapted to aluminium. However, acidification, caused by the burning of coal and oil, is upsetting the natural balance and leaching out some aluminium into especially acidic environments. Otherwise, aluminium is one of the most beneficial and environmentally friendly raw materials we have. Aluminium is justifiably known as “the green metal.”

Relatively harmless extraction of raw material

Lage Knutsson, Sapa Technology, Bengt Sundström, Sapa Profiler AB, Ulrika Björn Sapa, Heat Transfer, Staffan Johannisson and Ulf Lindstrand, Sapa Profiler AB, Jan de Hoop, Sapa Aluminium BV and Joao Moreira, Sapa Portugal S.A. Eric Burgess, Sapa Profiles Ltd is not pictured.

The Group’s processes, emissions, permissions and plans are reported annually in Sapa’s Environmental Communication Platform. The Environmental Council is now being renamed as Sapa’s Council for Environment, Health and Safety and will be expanding its operations to include the key areas of health and safety, in other words issues relating to the working environment. Since the summer of 2002, Ulf Lindstrand, administrative director for Sapa Profiler AB, has chaired the council, which brings together representatives from a number of Sapa companies. “Each company employs different standards on these issues. Statistics and regulations differ between countries. Consequently, the first step will be to create uniform reporting principles for matters

such as accidents. Our ambition is to complement the existing Environmental Policy with a policy at Group level regarding Health and Safety,” says Ulf Lindstrand. Initial efforts will be conducted in several stages. The first will be to complement and summarise existing statistics. The resulting data will then form the basis for the implementation of shared definitions throughout the Group. Consequently, future reports and summaries will provide a better overview of accident statistics. “In this ongoing effort, we will attempt to implement best practices by studying the routines and safety efforts of various Sapa companies, as well as looking at the approaches of external companies, in order to be able to continually improve our efforts,” concludes Ulf Lindstrand. S

The raw material from which aluminium is extracted is bauxite, which exists throughout the earth’s crust. The world’s aluminium needs can be met by mining 16 square kilometres of land per year. This land can be easily restored in an environmentally appropriate manner once the bauxite has been mined.

Recycling highly profitable Scrap aluminium is a very important part of the aluminium supply. Melting down scrap aluminium requires only five per cent of the energy and environmental impact expended in producing new metal. The manufacture of one kilogram of new aluminium consumes the amount of energy existing in three litres of gasoline. However, recycling one kilogram of aluminium consumes only 0.15 litres of gasoline! All aluminium products can be recycled again and again without a reduction in quality. In products where aluminium is just a small part that cannot be separated, it is recycled through energy recovery. When burned, aluminium gives off just as much energy as coal and twice as much as paper. Moreover, no residual gases are formed, only ash in the form of aluminium oxide.

Aluminium makes life easier Designs made of aluminium weigh, on average, only half as much as corresponding steel products. This saves huge amounts of energy. If automobiles were made 100 kilograms lighter through the use of aluminium, the estimated gasoline savings in Sweden alone, with its 8 million inhabitants, would be 300 million litres per year! Products that weigh less consume less energy and result in fewer emissions during transport. Aluminium can be extruded as profiles with built-in functions. Making such items out of steel would require extensive processing with the resulting energy consumption. The mechanical machining of aluminium is easier than for many other materials. Aluminium is able to withstand corrosion and is used, to a large degree, for construction purposes where it results in reduced external maintenance. S Source: “Aluminium makes life a little easier,” published by MetallKretsen AB.

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S a p a

a r o u n d

Sapa at the Scandinavian Masters in Barsebäck, Sweden July 31 – Aug 3, 2003 Summer is here and we are making preparations for Sweden’s largest, annually recurring sporting event – the Scandinavian Masters golf competition. Sapa continues to be one of the main sponsors of the event, together with Scandic, Carlsberg, Volvo, Eurocard and Vodafone, among others. This is the sixth time that the highly regarded facility on the shores of the Sound in southern Sweden will be the site of the Swedish world-class competition. This year, the course is even longer and narrower. All of the greens have been redesigned and several holes have been changed. A firstclass championship course awaits. Key European tour event The tournament has created a unique position for itself within professional golf. It attracts several of the world’s best players and provides international competition at the highest level. In terms of spectators, the Masters event has led the PGA European Tour since its inception. The spectator record dates back to 1995 at Barsebäck when Jesper Parnevik won in front of a crowd of 121,800 people. Those high spectator figures make the tournament the largest on the European tour after the British Open. The tournament is also a popular television event on all continents.

Approximately 260 million viewers, in more than 100 countries, are able to follow the tournament live. This year, a special effort is being made to attract the next generation of golf stars. At the time of going to press, we know that Calle Pettersson, also known as “Big Dog,” will be coming to this year’s Masters event. Calle, who is ranked among the top 60 players in the world and who has recently made a strong showing in the US, appreciates the opportunity to play in Sweden. Dane Thomas Björn has also been contracted. Playing at Barsebäck is almost like playing on home turf for Denmark’s best ever golfer. Graeme McDowell is also ready for this year’s tournament. S

Classic American aluminium mailbox Sapa Anodising Inc., of Oregon in the US, recently solved a problem for Salsbury Industries, a large manufacturer of various kinds of mailboxes. Salsbury attempted to construct a mailbox out of a single piece of extruded aluminium. However, it was not possible to make it costefficient, despite the simple design. Sapa solved the problem in an elegant manner by basing the mailbox on two profiles with a snap lock construction that simplified the manufacturing process and resulted in a sturdy one-piece mailbox. In other words, Sapa succeeded in creating the one-piece mailbox that Salsbury wanted. A piece of creative thinking that represented a profitable transaction for both companies – and a decorative addition to American homes! S

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w o r l d

Acquisition of UK components company

When simple things are difficult

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Sapa has acquired the UK firm Pressweld Ltd. in Gloucester, two hours west of London. The company specialises in the design and machining of aluminium profile components and systems for prestigious brands in the automotive industry. Typical applications include highly polished doorstep profiles, grills, details for wood-veneer backing, components for airbag housings and decorative panels and frames. “Pressweld has experienced strong growth in recent years and we are convinced that the purchase will result in favourable synergies,” says Sapa CEO Staffan Bohman. “Pressweld strengthens our position in the Automotive business segment.” “We have a clear ambition of expanding into the area of value-added products. Through Pressweld, we will gain a significant market presence that we did not have before, especially within the automotive area. The acquisition will strengthen our position as one of Europe’s leading suppliers of intelligent solutions based on aluminium profiles.” S Automotive and Pressweld displayed some of their products in a small exhibit presented in connection with seminars at Jaguar and Land Rover. The new hydroforming and friction stir welding technologies generated a great deal of attention.

Sapa Automotive and Sapa Pressweld to collaborate In an attempt to capitalise on synergies to increase sales, Sapa Automotive and Pressweld have organised a number of business meetings. Together they have visited customers such as Renault, Jaguar and Land Rover. “Automotive and Pressweld have overlapping areas of expertise, enabling us to offer our customers a broader and more complete product assortment,” says Percy Ekström, head of Sapa’s Automotive business segment. S

Building Systems New business segment coordinates Sapa’s construction operations

Award winning Sapa façade in the UK Sapa Building Systems customer Bromsgrove Glass in the UK recently completed a construction project in Cheltenham. The building, designed by the Beswick Partnership in Tewkesbury, has been cited by Cheltenham’s Civic Award Society for its modern design. According to the jury, it is “well designed with careful

•• •

consideration given to form, materials and detailing.” The thousand squaremetres showroom was built for UK auto company Warners, which is a Peugeot retailer. The impressive glass façade is constructed using Sapa’s 313 Gridframe profiles and 202 Stormframe doorframes. The large auto

showroom, which contains a café, boutiques and a high-tech workshop, was tailor-made for Warners in order to create a different experience for visitors. The large, two-storey glass surface that forms the façade and its tower dominate the area and provide strong visual support for the Warners and Peugeot brands. S

Three new sales offices Sapa’s primary markets are Europe, the US and China. Our goal is to be a borderless company with the ability to serve our customers globally in these markets.

A new sales office in Spain complements existing operations on the Iberian Peninsula. An extrusion plant already exists in Portugal, developing, manufacturing and marketing aluminium profiles and systems for the construction sector, which accounts for 40 per cent of the Group’s sales. Through our office in Spain, we are further able to profile ourselves towards customers within the building industry. For Sapa, Eastern Europe and China are priority markets with significant potential for growth. That is why expansion is continuing with new sales offices in the Czech Republic and China. The Czech Republic has increased in significance in recent years. The country has a strong and growing industrial base and exports to the Czech Republic from our Polish pressing plant are increasing steadily.

“This is how the company will continue to grow,” says Group CEO Staffan Bohman. “Organically, by extending out our positions to markets where we are already operating, through greater collaboration with existing customers and through acquisitions, such as the purchase of Pressweld in the UK.” The new sales office in China is a natural part of Sapa’s strategy to expand outside of Europe. Sapa Heat Transfer has been established in China since 1999 and of course the country is also an important future market for aluminium profiles. Several of our large customers are becoming increasingly global. In order to easily provide them with service, specific systems and solutions, we have decided to follow them out into the world. S

A new, Group-wide business segment, Sapa Building Systems, has been formed in order to better take advantage of the Group’s combined expertise and resources. The goal is to create the conditions necessary for the profitable collaboration and development of Sapa’s various building systems. This includes, for example, production, product development and purchasing, but perhaps to an even greater degree, marketing and sales in existing and new markets. Sven Magnusson heads the business segment. “We work very closely with all stages of the business process. Distribution, customer-adapted solutions and project support Sven Magnusson, are important compohead of Sapa Building nents. We collaborate with Systems. producers, architects and builders. We think that buying from Sapa should be easy and profitable and that it should assist development,” says Sven Magnusson. The construction industry is often very locally anchored, both in terms of architecture and national building standards. However, changes are in the works. The EU’s demand for greater harmony between various standards among countries is influencing development, as are all other international agreements, such as various environmental programs. “No less than 40 per cent of our collective energy consumption goes toward heating or cooling buildings! By investing in modern systems, energy consumption can be lowered, as can the environmental impact. Safety issues place various requirements on fire, noise and burglary security, and in extreme cases against bullets and explosives. At Sapa we have advanced products that are able to meet all kinds of new demands and we are developing continuously,” concludes Sven Magnusson. In Building Systems, Sapa sees greater opportunities to strengthen its already prominent position within the European construction sector, while at the same time creating a platform for both geographic growth and future acquisitions. S

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German-Polish collaboration resulted in glowing ideas JK Ergoline is Europe’s leading manufacturer of solariums. The company operates in an industry where aesthetically pleasing shapes are of great significance to the success of a product in the market. However, JK Ergoline had another demand on their list: “alles aus einer Hand,” everything from one supplier. It was against this background that collaboration with Sapa was initiated in spring 2002. The result was a new series of solariums that has now been successfully launched.

Today, JK Ergoline’s primary focus is on developing, manufacturing and marketing solariums. It has been highly successful at doing so. The company has gone from being a small sauna manufacturer thirty years ago to developing into the worlds leading manufacturer of solariums for professional use. Solariums for home use also form part of their line-up. In its home market of Germany, Ergoline is estimated to hold a market share of more than 55 per cent. 12 profiles machined into 24 parts Armed with Ergoline’s expertise on solariums and Sapa’s experience with profiles, work began. Together, the two companies developed 12 cross-sections, which, after machining by Sapa, became 24 different parts in the new solarium series. Sapa delivers parts ready for assembly. These profile solutions have integrated functions for aspects such as joining, which reduces the need for machining and simplifies assembly work. Anodised for sake of hygiene The parts are anodised. This is to provide the solariums with a decorative finish, although the anodising also has other advantages. Surfaces are more durable to the touch, repelling dirt and meeting

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JK Ergoline is Europe’s leading manufacturer of solariums. Aesthetically pleasing shapes are of great significance to the success of their products. Anodised profiles provide the solariums with a decorative finish.

From Ergoline’s website:

Solariums for brittle bones The profile solutions integrate functions such as joining, reducing the need for additional processing.

exacting requirements for hygiene, an important aspect in solariums. Moreover, the finish is very durable – the oxide layer is harder than glass. German-Polish collaboration Sapa in Germany was responsible for initial contacts with the customer, but Sapa in Poland soon became involved, since production takes place at the Polish facility. Once serial production had begun, close collaboration with a production manager was an absolute necessity. As mentioned previously, JK Ergoline demanded “alles aus einer Hand.” This involves not only profile extrusion, mechanical processing and anodising – logistics questions are also high on the agenda. S

Up until our thirties, calcium is stored in our bones, making them hard. Calcium is also needed in other parts of the body, however. If the body does not receive enough calcium then it “steals” what it needs from the skeletal structure. In order to be able to absorb the calcium in our food, our bodies need vitamin D. This is the only vitamin that the body can produce on its own. To accomplish this UV-B light is required. From October to March, sunlight at our latitudes contains practically no UV-B at all. It quite simply disappears into the atmosphere. According to Dr. Albrecht Falkenbach of the Gasteiner Heilstollen Sanatorium, the body’s production of vitamin D ceases entirely and even if we eat a calcium-rich diet we are unable to replace that important mineral. The low dose of UV-B generated by solariums is sufficient to restart vitamin-D production. Conclusion: not only a suntan but also strong bones. S

Additional information about JK Ergoline is available at: www.ergoline.de.