VAMA – Valin ArcelorMittal Automotive Steel – leading supplier of hot stamping material in Chinese market announces a price adjustment to be valid for the H1/2018.
New base price for Usibor®1500 is RMB 8,800 /T Basis Price Ex Works VAMA factory. Extras will be added for different spec and logistics upon delivery point.
The base price of RMB 8,800 /T is an ex works base price without VAT for Usibor®1500, and does not include any extras for specific sizes, tolerances, surface treatment, coil weight, packing, transport and financial costs.
The key drivers for this price adjustment are related to the consistent raw material prices increase (iron ore, coking coal) as well as to precious metals price increase in international market.
VAMA determined to provide comprehensive steel solutions with high technology products helping our customers to achieve challenging targets in terms of weight and emission reductions as well as increasing the safety of the vehicles.
Start of validity: January 2018
Just after the Slight Cold (23rd Solar Term), from Jan. 3 to 6, 2018, ValinArcelorMittal Automobile Steel Co., Ltd (VAMA) and Loudi Economic & Technical Development Zone organized 47 volunteers to launch the natural gas safe use voluntary service for 11 residential communities including Loudi Gangdu Garden, Xianren’ge and Chunhe Garden etc., in order to improve residents’ awareness of safe use of the natural gas. Volunteers explained and publicized cautions of safe use of the natural gas for residents, including the danger of non-standard uses of gas and their corrections, and they also conducted indoor examination for 53 families, checked whether any hidden danger of gas leakage of the natural gas pipelines and explained the daily safe use and the method of self-detection on site. Volunteers had brought warmth and safety to residents of these communities.
6 Cautions for Safe Gas Use
Volunteers are divided into 6 groups and separately visited 11 communities. They distributed a total of 10,000 materials about safety to community residents and focused on popularizing the 6 cautions for safe use of the natural gas among residents:
3 Measures to Detect Gas Leakage
From Jan. 3 to 5, VAMA Health and Safe Production Center organized the special examination of gas safety against the natural gas station of the production area, the acid regeneration calciner and high-pressure natural gas station of the dining hall and conducted overall examination and one-on-one safety presentation for 31 families living in neighboring 11 residential communities. On Jan. 6, divided into 6 groups, 14 volunteers of VAMA natural gas safety team provided the indoor natural gas examination service for natural gas users of the community for free with the “secret tool”, identified on site the hidden danger for a total of 22 families in 9 residential communities and summarized and reported the investigation results to Huarun Gas Company for correction. At the same time, they showed gas users how to check the gas leakage in daily life, including smelling and reading the alarm, identification by soap water and reading the gas meter etc.
To VAMA, safe production and safe living are placed above all else. It is the responsibility for each company of the park to construct a safe community. The natural gas safety promotion campaign this time aimed to improve residents’ awareness of safe use of natural gas, popularize the basic measures for safety precautions, prevent the accident from occurring and build a safe production park and safe living community jointly with all others.
The global automotive manufacturing industry operates within a busy regulatory environment. This is certainly the case here in China. Things are moving very quickly, with a regulation framework that is becoming more stringent and demanding. So the challenge for suppliers is not only to match the regulation but to do so within the very short timescales set by the authorities.
There are two main aspects. One is to drastically improve fuel efficiency in China’s car fleet, with the target to reach an average consumption of no more than 5 litres per 100 kilometres by 2020. A further target of a maximum of 4.5 litre per 100 kilometre is anticipated for the period after.On emission standards, China wants to achieve a Euro 6 equivalent by 2020.
Then comes safety regulations. It is very likely that new crash management standards will be in place in China by next year, raising the requirements here to match those of the US.
A further issue to consider is supply chain reform. The government wants to see China’s industry move from pure manufacturing base to one with more high technology content, and that there be greater domestic ownership of the key developments that are driving the industry.
The latter particularly resonates with China’s domestic car makers who are receiving a strong push and pull from the government to upgrade technology content in the products they are developing and selling domestically.
There is also an enormous impact on the supply side.China’s government wants to make sure that solutions and products are available locally to support its initiative.In other words, they want the automotive industry to strive for self-sufficiency in innovation and supply components rather than rely on the need to import.
In all of these aspects around innovation, advancement and supply, VAMA is ready to play a key role.
As a joint venture between ArcelorMittal and Valin Group,VAMA covers a full range of steels commonly used in car design. The ArcelorMittal-owned and patented family of steels start from mild steel grades and extends to steels that have very high strength limits, e.g. Dual Phase products DP980 and DP1180HY.
In addition, new product launches for the Chinese market
Over a relatively short period of time, hot stamping technology has forged a path with impressive speed into the Chinese market. It was first introduced by the international OEMs and has quickly been adopted by the domestic car makers over the past three or four years.
The situation now is that the number of hot stamping lines in China is equivalent to that of the rest of the world combined.
VAMA has been developing new steel grades in this hot stamping family. The Usibor 2000 steel grade is a new and even stronger steel, due to come to market next year. It will assist OEMs reduce the weight of cars even further. From a
car that is, say, 300kg, Usibor 2000 can win back around 20-30kg, helping to meet environmental regulations but, as the grade is stronger, without jeopardising safety.
VAMA will be licensed to produce ArcelorMittal’s latest grades for hot stamping, Usibor 2000 and Ductibor 1000, for the Chinese market
Looking at other grades, Ductibor 1000 is being developed to combine high strength with high ductility helping OEMs produce parts with a complex shape. They can still use hot stamping technology and retain the high crash resistance and energy absorption qualities.
As one example, VAMA is working with OEMs on a door ring, a body side reinforcement made from hot stamped steel grades. VAMA is able to supply blanks, pre-welded, that the OEM’s press shop can stamp — in a single operation —to create the part.
In addition, VAMA and ArcelorMittal have been working on steel technologies for parts such as visible panels (boots,roofs, doors) where car makers require higher quality surface standards.
As a joint venture between ArcelorMittal and Valin Group, VAMA covers a full range of steels commonly used in car manufacturing
EV car production
The role of AHSS in EV production is becoming more and more important and these cars are a high priority in China.In 2020, China’s target is to produce two million electric cars; and to double that by 2025. Weight savings in this type of vehicle are crucial as the battery itself accounts for much of car’s overall weight.
Looking specifically at the requirements for electric vehicles, the battery and the battery cover also come with significant safety and crash protection considerations. There will be strong push to get AHSS into this type of car.
Meeting demand in China
As a major VAMA shareholder, ArcelorMittal offers great support on a technology level and VAMA will be licensed to manufacture the latest grades, Usibor 2000 and Ductibor 1000, for the Chinese market. ArcelorMittal also brings competence in co-engineering. As regulation becomes
VAMA’s other major shareholder is Hunan-based supplier Valin Group, which provides the primary material.Upgrades and technology transfer at the production facility means that VAMA can be sure that the base material it receives from Valin successfully matches the requirements and standards expected within the automotive industry.
VAMA – Valin ArcelorMIttal Automotive – leading supplier of hot stamping material in Chinese market announces a price adjustment to be valid for the H2/2017.
New base price for Usibor® 1500 is RMB 8,700 /T Basis Price Ex Works VAMA factory. Extras will be added for different spec and logistics upon delivery point.
The base price of RMB 8,700 /T is an ex works base price without VAT for Usibor® 1500, and does not include any extras for specific sizes, tolerances, surface treatment, coil weight, packing, transport and financial costs.
The key drivers for this price adjustment are related to the consistent raw material prices increase (iron ore, coking coal, metallic scrap) as well as to Aluminum raw material price increase.
VAMA confirms its commitment in serving the market with high technology products enabling our customers to achieve challenging targets in terms of weight and emission reductions as well as increasing the safety of the vehicles.
Start of validity: September 01st 2017
ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to participate the 5th Global CEO Council meeting with Premier Li at the Great Hall of the People on 7th Jun 2017. During the meeting, Mr. Mittal talked about ArcelorMittal has invested heavily in leading R&D centers, most advanced production facilities to meet high requirements of clients. Automotive steel is one such example where we are the leading supplier worldwide to automotive manufacturers.
ArcelorMittal has extended automotive steel franchise to China, with major production facility (VAMA, in partnership with Hunan Valin Group), in Hunan province, with investment of around $ 1bn. High strength light weight steel for automotive can make automotive industry more environmental friendly and enhance passenger safety.
VAMA is an example of supply side reform – whereby it takes hot rolled coils (which are in excess supply) and using high technology process to convert into high strength automotive steel (which are in short supply).
- Technology interconnection, innovation exchanges, technical exchange organized by VAMA&GONVVAMA and GAEI
On the morning of May 4, a technology interconnection and innovation exchange meeting between GAEI and VAMA&GONVVAMA was held in the GAEI building. In spite of the rain, more than 130 guests arrived at the venue, a multi-functional conference hall that can accommodate only 100 people formerly.
GAEI is the first stop of VAMA&GONVVAMA technology interconnection and innovation exchanges in 2017. VAMA&GONVVAMA introduce weight lightening steel solutions, door ring and other technical exhibitions, S-in Motion ® technical posters, etc. at the GAEI.attracting more than 200 representatives fromGAC Motor, GAEI and others, covering materials, body, NVH,vehicle integration, R&D, stamping, welding, safety and other fields.
Fan Jiachun, Vice-President of GAEI,attended the meeting and delivered the greeting remarks, welcoming on-field technical exchanges from VAMA&GONVVAMA and expressing expectations for future cooperation.
VAMA CEO Fernando made an address to the participants that VAMA&GONVVAMA, one of the few full-range automotive steel products and solutions providers in China, would be committed to supplying the most advanced and comprehensive automotive steel solutions for the automotive industry in China, helping carmakers cope with the challenges of lightweight, safety and environmental protection.
"VAMA and GONVVAMA always put customer’s demand at core position. We will invest the available resources and technologies into the current and potential projects in GAC, to fully support the future development of GAC."
· Venue and exhibition layout
· Vice-President Fan Jiachun visited exhibition area
· VAMA&GONVVMA advanced automotive steel products and solutions are presented in various forms at the exchange site, attracting a great number of GAC guests.
· Technical experts from ArcelorMittal, VAMA&GONVVAMA make themed presentations to the customers.
· Customer representatives listen to the presentation carefully and exchange with the technical experts.
New Audi A8 follows recent trend of automakers to increase the use of advanced steels
Audi’s A8 switches back to steel after experimenting with aluminium in its luxury models. Scheduled for release in 2018, the body structure of the new A8 will be made up of over 40 percent steel, following the trend to use more advanced steels. That’s a marked turnaround on the all-aluminium body-in-white which Audi developed for the A8 in 1994.
Press hardenable steels lead in safety
Steel has moved on dramatically since the 1990s. Around 17 percent of the new A8 body structure will be comprised of press hardenable steel (PHS), some of which will be supplied by ArcelorMittal. These steels have yield strengths up to 1500 MPa after press hardening. The strength-to-weight ratio of these grades outperforms even the most advanced (and costly) aluminium.
“There will be no cars made of aluminium alone in the future. Press hardened steels (PHS) will play a special role in this development. PHS grades are at the core of a car’s occupant cell, which protects the driver and passengers in case of a collision. If you compare the stiffness-weight ratio, PHS is currently ahead of aluminium."
—— Dr. Bernd Mlekusch, head of the Audi’s Leichtbauzentrum
Change in composition of the A8 body structure
One area that benefits is safety. Dr. Bernd Mlekusch, head of the Audi’s ‘Leichtbauzentrum’ (Lightweight Construction Center) was recently quoted as saying that the use of more steel in the new Audi A8 should help to improve the way cars are made lighter: “There will be no cars made of aluminium alone in the future. Press hardened steels (PHS) will play a special role in this development. PHS grades are at the core of a car’s occupant cell, which protects the driver and passengers in case of a collision. If you compare the stiffness-weight ratio, PHS is currently ahead of aluminium.”
(source: Frankfurter Allgemeine Zeitung, ‘Audi: more steel in cars in the future’, published 11 April 2017)
Growing trend to use advanced steels
The use of AHSS in today’s vehicles is outpacing the steel industry’s own forecasts:
Increase in the use of AHSS grades in automotive 2006-2015 (source: Steel Market Development Institute – SMDI):
New joining technologies
With the advent of new joining technologies, it has never been easier for automakers to incorporate advanced high strength steels into their vehicles. As these technologies mature and are adopted by carmakers, the use of PHS in the multi-material vehicles of the future is set to grow strongly.
Life Cycle Analysis benefits
ArcelorMittal and the steel industry as a whole have been working collaboratively to educate automakers and stakeholders on the importance of life cycle analysis, or LCA. LCA looks at total emissions generated during the three stages of a vehicle’s life – production, drive phase and disposal.
“Right now, regulations only consider tailpipe emissions generated during the drive phase,” said Brad Davey, chief marketing officer, NAFTA and global automotive for ArcelorMittal. “However, each material used in vehicle production contributes to lightweighting and improves fuel economy, but each does so at a different cost to the manufacturer – and to the environment.”
Studies show that aluminum emits four to five times more GHGs than steel. “If we want to know how “green” a vehicle really is, we have to measure emissions over its entire life cycle. Otherwise, choosing an alternative material over advanced steel will result in a huge and irreversible environmental mistake,” said Davey.