Transformer Market And Copper Conductors

IWCC Joint Meeting 2008, Vienna

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Presentation

Transformer Market & Copper Conductors IWCC Joint Meeting 2008, Vienna

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Agenda
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 IWCC Joint Meeting 2008, Vienna

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Copper Products in Transformers

CTC

Glass Yarn IWCC Joint Meeting 2008, Vienna

PICC Page 4

Copper Products in Transformers CTC for Traction Transformers

Netting Tape CTC for LV windings of GSU Transformers

IWCC Joint Meeting 2008, Vienna

CTC for several applications LV, HV Windings

Cooling Duct CTC for Industrial Transformers

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Copper Products in Transformers Transformer Windings

IWCC Joint Meeting 2008, Vienna

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Copper Products in Transformers Transformers with ASTA Inside

IWCC Joint Meeting 2008, Vienna

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Copper Products in Power Generation Equipment Roebel bar for Power Generators

IWCC Joint Meeting 2008, Vienna

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Copper Products in Power Generation Equipment Generators with ASTA Inside (China 3 Gorges Project)

IWCC Joint Meeting 2008, Vienna

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Agenda
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 IWCC Joint Meeting 2008, Vienna

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Energy Sector Market Growth Energy Market Bn Euro 11%

pa 70


Fuel diversification 260

186

IWCC Joint Meeting 2008, Vienna


Demographic change, population growth and urbanization
Environmental awareness

58

2007

TRENDS & MARKET DRIVERS

2010 (Est)


Capacity addition
Replacement in mature markets
Distributed Generation (Smart Grids) Page 11

Global Economy – Key Indicators China Vie tnam India Asia (e x Japan) Indone sia M alaysia Ase an Thailand Philippine s Hong Kong Singapore NIEs Kore a Taiwan Asia Japan

0.0 2005 1.0

Source: Focus Economics IWCC Joint Meeting 2008, Vienna

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0 % 10.0

Regional Economic Overview: GDP Growth Page 12

Mega Trends in the Market Mega trends Population Growth Urbanization Increased Living Standards Ageing Infrastructure Regionally New Demand Fossil Fuel Scarcity Primary Energy Cost Increase

Environmental Protection

Growing Electricity Demand Replacement & Renewal Demand Higher Energy & Material Efficiency Urban & Environmental Suitability

Volume Increase Innovation

IWCC Joint Meeting 2008, Vienna

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Investments In Energy Infrastructure (2005-2030)


Highest level of investment in Electricity infrastructure in next decade – 11 TUSD in next 25 yrs.
Investments in Power Transmission and Generation should gain prominence in next decade.
Investment in Power is going to be spent on maintenance and replacement of existing capacity in Developed world and addition of new facilities in Developing world. IWCC Joint Meeting 2008, Vienna

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World Generation Capacity 2003-’30 Gigawatts

Region / History Country 2007

Projections 2010

2015

2020

2025

2030

CAGR (% )

N America

1130

1200

1220

1280

1370

1483

1.1%

Europe & Eurasia

1978

1304

1353

1426

1488

1553

1.1%

1177

1487

1696

1897

2112

2369

3.1%

175

237

251

261

269

276

3.0%

127

156

170

181

194

210

2.5%

223

271

319

369

417

460

3.1%

4810

4655

5009

5414

5850

6351

2.0%

Asia & Oceania Middle East Africa C&S America Total World Source: OECD IWCC Joint Meeting 2008, Vienna

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World Electricity Generation (Projection) (Gigawatts)

7000 6000 5000

Oil Nuclear Renewable Natural Gas Coal

4000 3000 2000 1000 0 2000

2010

2015

2020

2025

2030

Source: OECD IWCC Joint Meeting 2008, Vienna

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Annual Growth In Electricity Generation 1.5

N America

0.8

Europe

1.4

Asia

2.3

Europe / Eurasia

4.4

China

3.9 3.8

India Other Asia

2.9

Middle East

3.5

Africa

2.9

C & S America

0 Source: EIA IWCC Joint Meeting 2008, Vienna

1

2

3

4

AVERAGE ANNUAL PERCENTAGE CHANGE (2000 – 2030)

5 Page 17

World Net Electricity Consumption (Proj) (Billion KWH)

30116

35000

27133

30000

21699

24371

19045

25000 20000 15000 10000 5000 0

2010

2015

2020

2025

2030

Source: OECD IWCC Joint Meeting 2008, Vienna

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Agenda
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 IWCC Joint Meeting 2008, Vienna

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Market Drivers for Transmission Investments – NA & 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 IWCC Joint Meeting 2008, Vienna

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Market Drivers for Transmission Investments - Brazil
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 IWCC Joint Meeting 2008, Vienna

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Market Drivers for Transmission Investments - Russia
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

IWCC Joint Meeting 2008, Vienna

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Market Drivers for Transmission Investments - India
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. IWCC Joint Meeting 2008, Vienna

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Market Drivers for Transmission Investments - China 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. IWCC Joint Meeting 2008, Vienna

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Agenda
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 IWCC Joint Meeting 2008, Vienna

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Energy Distribution Network

Generator Xm Shunt reactor

HVDC

System interconnecting Xm

FACTS Converter Xm System transformer Oil-immersed distribution Xm

IWCC Joint Meeting 2008, Vienna

Voltage regulator

GEAFOL cast-resin Xm

Furnace Xm

Transformer Monitoring System for all voltage levels

Transformer Life Management Program

Traction Xm

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World Current Market Potential for Transformers (US $ M)

Region

Latent Demand, US $ M

% of Globe

Asia

$7.901

32.04%

Europe North America & the Caribbean

$6.236

25.29%

$6.232

25.27%

Latin America

$2.011

8.15%

Middle East Africa

$1.004 $0.968

4.07% 3.93%

Oceania

$0.310

1.26%

Total

$24.662

100.00%

IWCC Joint Meeting 2008, Vienna

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World Current Market Potential for Transformers WORLD MARKET FOR TRANSFORMERS 1% 4% 4% 8% 33%

Asia Europe North America & the Caribbean Latin America

25%

Middle East 25%

Africa Oceania

IWCC Joint Meeting 2008, Vienna

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Power Transformer Market (MVA) 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%

Africa

50833

51178

58645

61056

69256

71890

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

8.7%

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

Source : Golden Reports IWCC Joint Meeting 2008, Vienna

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Agenda
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 IWCC Joint Meeting 2008, Vienna

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Copper Consumption in Transformers

Product

Estimated Demand 2008 [MT]

CTC + PICC + Enamel + Paper* Transformers (Traction & Cast Rasin) Flat Round Wires (Paper + Enamel) Copper Foils

200,000

TOTAL

869,000

IWCC Joint Meeting 2008, Vienna

312,000 7,000 350,000

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Major Power Transformer OEMs

Major ones considered IWCC Joint Meeting 2008, Vienna

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Metrod’s Global Presence USA

Austria

China

India Malaysia IWCC Joint Meeting 2008, Vienna

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Metrod 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.

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ASTA 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)

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ASTA 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

IWCC Joint Meeting 2008, Vienna

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ASTA 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.

IWCC Joint Meeting 2008, Vienna

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ASTA 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.

IWCC Joint Meeting 2008, Vienna

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Thank you

IWCC Joint Meeting 2008, Vienna

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