The Influence of Disruptive Innovation on Today's Aluminum Products

<strong>The</strong> <strong>Influence</strong> <strong>of</strong> <strong>Disruptive</strong> <strong>Innovation</strong> 

on Today’s Aluminum Products 

Product - Alloy - Process 

2006 March 17 

Alcoa Technical Center 

Robert E. Sanders, Jr. 


Alcoa Center, PA 15068

<strong>Disruptive</strong> Technology 

– a look back 

• Which developments had the greatest impact 

on the shape <strong>of</strong> the industry after 100 years? 

• Aluminum mill products only 

– Ignored refining, smelting developments 

• What other innovations were spun <strong>of</strong>f as a 

result <strong>of</strong> these developments? 

2006 March 17 

Alcoa Technical Center

<strong>The</strong> Panel – An Alcoa Perspective 

• Harold Hunsicker, 1936-1979 

• John Hatch, 1940-1973 

• Ron Bachowski, 1959-1996 

• Paul Lyle, 1952-1985 

• John Jacoby, 1955-1994 

• special assistance from 

– Don Stewart, Jim Staley, Dave Smucker 

2006 March 17 


Aluminum Shipments by Major Market 

(2004 A. A. Statistical Review) 

United States and Canada 

Major Market 

Product Form 

Transportation 

Building & 

33.9% Construction 

Ingot 

14.8% 

31.6% 

Exports 

8.2% 

Sheet, Plate 

& Foil 

45.7% 

Other 

10.1% 

Containers 

& Packaging 

20.3% 

Consumer 

Durables 

6.4% 

Electrical 

6.4% 

Extrusion 

& Tube 

17.4% 

Other 

5.4% 

11,372 M tonnes (25.1 billion lbs) 

2006 March 17 


North American Al Shipments AA Data - 2004 

Producer Shipments by Major Market 

30,000 

Statistics for 1960-2000 represent U.S. markets only. 

U.S. & Canada 

25,000 

20,000 

Millions <strong>of</strong> Pounds 

15,000 

10,000 

5,000 

2006 March 17 


- 

1960 

1962 

1964 

1966 

1968 

1970 

1972 

1974 

1976 

1978 

1980 

1982 

1984 

1986 

1988 

1990 

1992 

1994 

1996 

1998 

2000 

2001r 

2003r 

Source: Estimated by the Statistical & Market Research Committee <strong>of</strong> the Aluminum Association, Inc. 

Transportation 

Containers & Packaging 

Building & Construction 

Consumer Durables 

Electrical 

Machinery & Equipment 

Exports 

Other Domestic

20 th Century “Top 10” 

1. DC Casting Alcoa, 1930’s 

2. Discovery <strong>of</strong> Age Hardening Germany, 1908 

3. Two-Piece Beverage Can Reynolds, Coors 

4. Aluminum Extrusion Process Alcoa, 1905 

5. Continuous Molten Metal Treatment Alcoa, 1950’s 

6. Alloy 6061 Alcoa, 1930’s 

7. Electrical Conductors Alcoa, 1908 

8. Continuous Casting Hunter, Properzi, Hazelett 

9. Shape Casting Alloy (A356) Alcoa, 1960’s 

10. Extrusion Press Quenching Alcoa, 1930’s 

2006 March 17 


Timeline for Aluminum 

Product Development 

356.0 

2024 

5182 

Alloy 

Duralumin 2017 195.0 

6061 

6063 

7075 A356 

7050 7055 

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 

Aluminum 

Extrusion 

Hoopes 

Process 

Continuous 

Casters 

Beverage 

Can 

Can 

Lightweighting 

ACSR 

Press 

Quenching 

DC 

Casting 

Metal 

Filtration, 

Degassing 

Process 

2006 March 17 


Market Needs Drove <strong>Innovation</strong> 

Everything else flows from there 

<strong>The</strong> Market 

Fabrication Process 

<strong>The</strong> Product 

Molten Metal Process 

• Cost 

Alloy Composition 

•Attributes 

• Competing Materials 

2006 March 17 


Electrical Conductors: 1908 

2006 March 17 


2004 Production in North America 

~350,000 Tonnes 

Market Needs 

• Lighter and cheaper 

conductor vs copper 

Direct benefit 

• First high volume 

application for aluminum 

Side benefits 

• Economical fab methods 

• Quality control established 

• Hoopes process for high purity

Discovery <strong>of</strong> Age Hardening: 1908 

Market Needs 

Stronger product (they 

didn’t know what other 

properties they needed). 

Direct Benefits 

First applications <strong>of</strong> 

Aluminum to aircraft – 

arguably made possible 

today’s aircraft industry. 

Spin Offs 

Began a continuous series 

<strong>of</strong> alloy improvements 

– 2xxx, then 6xxx, then 

7xxx alloys with more 

desirable (and targeted) 

properties for specific 

aerospace (and other) 

applications. 

2006 March 17 


Age-Hardened Alloy Development 

Alloy and Year <strong>of</strong> Registration 

6xxx 

• 6151 - 1928 

• 6061 - 1933 

• 6063 - 1944 

• 6351 - 1958 

• 6262 - 1960 

• 6005 - 1962 

• 6060 - 1972 

• 6082 - 1972 

2xxx 

• 2017 - 1916 

• 2014 - 1928 

• 2024 - 1932 

• 2011 - 1934 

• 2219 - 1954 

• 2124 - 1970 

• 2324 - 1978 

• 2524 - 1995 

7xxx 

• 7075 - 1943 

• 7178 - 1950 

• 7475 - 1969 

• 7039 - 1962 

• 7050 - 1971 

• 7150 - 1978 

• 7055 - 1991 

• 7085 - 2002 

2006 March 17 


Aerospace Alloys – 

Strength Vs. Year First Introduced 

Yield Strength, ksi (Typical, L-Direction) 

100 

90 

80 

70 

60 

50 

40 

Upper Wing 

Fuselage Skin 

Lower Wing 

Thick Product 

Al-Li Alloys 

2017-T4 

Junker F13 

Wings, Fuselage, Others 

7075-T651 

B29 

2024-T3 

DC3 

Wings, Fuselage, Others 

7178-T651 

707 

2020 Wing Plate 

RA5C Vigilante 

2090-T83 Thin Plate 

Atlas/Centaur Payload Adapter 

7075-T7351 

DC10 

7075-T7651 

L1011 

7050-T7451 

A6 

2195-T8M4 Thin Plate 

Ext Fuel Tank <strong>of</strong> Space Shuttle 

7150-T651 

757/767 

7150-T6151 

A310/MD11 

2324-T39 

737 

7150-T7751 

C17 

7055-T77 

777 

2324-T39 Type II 

777 

2097 Thick Plate 

F16 Bulkhead 

A6013-T6 

A318 

2524-T3 

777 

7055-T795X 

A380 

7055-T765X 

A380 

7085-T7X5X 

A380 

2026-T3511 

A340-500/600 

C433-T351 

A340-500/600 

A340-500/600 

A380 

A318 

30 

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 

Year First Used in Aircraft or Aerospace 

2006 March 17 


High-Strength 7xxx Alloys 

Alloys 7150, 7085 Aircraft (Upper Wings) 

Alloys 7175/7050/7085 Forgings 

Alloys 7050/7055 Sports Equipment 

Alloys 7150/7055 Extrusions 

2006 March 17 


Direct Chill (DC) Casting: 1935 

Market Needs 

Larger aluminum 

wrought products: 

sheet, plate, 

extrusions 


Bigger coils and parts 

Higher recovery 

Better ingot quality 

Spin Offs 

Higher performance 

(fatigue, ductility) 

New alloy compositions 

(5xxx, 7xxx) 

2006 March 17 


Continuous Molten Metal Treatment: 

1950’s-1960’s 

De-gassing and Filtration 

GA 35774.22 

Coil 

Market Needs 

Better quality 

wrought products 

sheet, plate, extrusions 

Metal in 

Guide tube 

Fluxing gas 

mixture 

Rod feeder 

Master 

alloy rod 

Tabular alumina flake 

Baffle 

To casting 

unit 

Outlet 

Tabular 

alumina 

balls 

Holding 

furnace 

A622 unit 

A528 unit 

Rotating vaned 

disperser 

Gas disperser tubes 


Higher performance 

(fatigue, ductility) 

Wire, can sheet, aerospace, LNG 

Better fabricability, recovery 

Spin Offs 

Larger ingot 

In-line grain refining 

(better castability) 

Higher solute alloys 

2006 March 17 


Property Improvements due to Casting and Metal Treatment 

2006 March 17 


Two Piece Beverage Can: 1960’s 

40% <strong>of</strong> North American market for FRP 

Market Needs 

• Low cost, user friendly 

beverage container 

• Easy opening, quick chill 

• No effect on flavor 

• Manufactured by 

high-speed processes 


• 200 billion can/year market 

• Largest single market for 

aluminum 

2006 March 17 


Spin Off Benefits from RCS Technology 

• Rolling Technology 

– Multi-stand mills 

– Gauge control systems 

– Lubrication 

• New Alloys 

• Draw and Iron Technology 

• Recycling Technology 

– Delacquering and melting 

2006 March 17 


2002 

2003 

2004 

2000 

2001 

U.S. Aluminum Can Reclamation 

80.0 

70.0 

60.0 

50.0 

40.0 

30.0 

20.0 

Billions <strong>of</strong> Used Beverage Cans Collected 

10.0 

0.0 

1972 

1973 

1974 

1975 

1976 

1977 

1978 

1979 

1980 

1981 

1982 

1983 

1984 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

1995 

1996 

1997 

1998 

1999 

2006 March 17 


80.0 

70.0 

60.0 

50.0 

Recycling Rate (%) 

Number <strong>of</strong> Cans Collected Percent <strong>of</strong> Cans Collected 

Source: <strong>The</strong> Aluminum Association, Can Manufacturers Institute and Institute <strong>of</strong> Scrap Recycling Industries 

40.0 

30.0 

20.0 

10.0 

0.0

Alloy 6061: 1933 

Market Needs 

• Al product with mech. 

properties = mild steel 

• Weldable 

• Corrosion resistant 

• Good finishing 

Process Requirements 

• Robust alloy: Rolled, 

forged, extruded at low pressures 

• Can be quenched slowly 

2006 March 17 


Continuous Casting: 1940’s-1950’s 

25% <strong>of</strong> US FRP is continuously cast 

Market Needs 

• Reduce cost <strong>of</strong> commodity products 

Direct Benefits/Side Effects 

Low capital 

• More producers can compete 

Lower conversion costs 

• Cost sensitive products have 

moved to continuous casters 

• Foil, wire, building products 

2006 March 17 


Continuous Cast Product Examples 

Lidding 

Wire 

Impact Extrusions 

2006 March 17 


Fin stock 

Formed containers

Structural Castings 

A356 patented in 1960’s 

Market Needs 

Low cost structural 

products – early castings 

had low ductility and 

fatigue resistance 


Improved mechanical properties 

opened markets for aluminum 

wheels and other structural 

components 

2006 March 17 


Spin Offs 

• New casting technologies 

• Higher solute alloys

2006 March 17 


<strong>Influence</strong> <strong>of</strong> Metal Purity on Alloy Properties – circa 1937

Automotive Usage <strong>of</strong> Aluminum Cast 

and Wrought Products: 2.56 Million MT 

Ingot 

Sheet & Plate 

Foil 

Rod & Bar 

Forgings 

Extruded (other) 

• Auto total 5,655 B lbs 

• Ingot 4,400 

• Sheet and Plate 655 

• Foil 104 

• Rod & Bar 96 

• Forgings 103 

• Extruded (other) 297 

2.00 Million MT <strong>of</strong> Castings 

2006 March 17 


Extrusion Press Quenching 

6063 patented in 1940’s 

Market Needs 

Low cost shaped product 

to construct windows, 

doors for post-WW2 

building boom. 


Opened markets for aluminum 

extruded shapes to compete in 

building product market. (by far largest 

market for extrusions.) 

Spin-<strong>of</strong>fs/Process Impacts 

• Developed specific 6xxx 

alloys to optimize speed 

and properties w/o HT 

• Allows low capital entry 

into the market. 

2006 March 17 


400 

300 

200 

100 

0 

2006 March 17 


Extrusion Usage By Market 

2004 Aluminum Association Data 

363 

Building and Construction 

Applications 

176 170 163 

56.7 

39.5 33.1 

17.7 

Doors & Windows 

Passenger car 

Trailers 

Store front 

Trucks/buses 

Consumer durables 

Bridge/highway 

Other B & C 

Volume (MT x1000)

Summary 

• Today’s market for aluminum products was shaped by disruptive 

process innovations during the 20 th century 

– DC casting and melting treatment allowed for improved quality, 

bigger parts and new alloys to be produced. 

– Continuous casting and extrusion press quenching enabled 

aluminum to be competitive with other materials. 

• Age hardening Al alloys were a key factor in the development <strong>of</strong> 

today’s modern aircraft. Alloy development based on the 

precipitation hardening concept continues to the present time. 

• <strong>The</strong> 2-piece beverage can grew into aluminum’s largest market 

and greatly influenced rolling and recycling technologies. 

• <strong>The</strong> use <strong>of</strong> aluminum for EC applications highlighted the need 

for quality control and consistency in composition and 

properties. 

• <strong>The</strong> development <strong>of</strong> robust alloys (A356, 6061) was crucial in 

establishing aluminum’s role in structural applications. 

2006 March 17 


Implications for Future Product <strong>Innovation</strong> 

What is the next aluminum can? 

• In any large volume market, aluminum will compete 

with steel, plastic or wood 

– Low cost is key - drives alloy and process choices 

– Exploit functionality <strong>of</strong> product forms 

– Look for light weight and durability advantages 

• Processes to reduce the cost <strong>of</strong> base metal will help 

our competitive position vs other materials 

• Understand the real needs <strong>of</strong> the customer: 

– Understand his value proposition 

– Exploit forming, joining, finishing savings 

– Look at total life cycle including recycling 

2006 March 17 


Implications for Alloy Development 

• Where material cost is not the driver, exotic (and pr<strong>of</strong>itable) alloy 

and processes are viable…. properties which reduce customer’s 

cost or greatly improve performance must justify the price. 

– Aircraft, space, sports equipment 

– Composite materials which combine Al properties with other 

materials 

• For commodity markets (transportation), alloys will become 

more standardized and competition will be based on process 

consistency 

• It may be hard to recognize a breakthrough until years after it 

happens….Lessons learned from MMC, powder metallurgy, Al- 

Lithium 

2006 March 17 


Implications for Process Development 

• Low cost traditional processes 

– Extend continuous casting to higher solute alloys, 

higher performance products 

– Eliminate unneeded processes via better process 

control (Anneals, SHT, side trims, cleaning) 

• Low cost manufacture <strong>of</strong> composite materials 

– Combine Al with other materials to improve 

functionality (Forming, service temperature, 

specialized corrosion characteristics, wear, ….?) 

2006 March 17

The Influence of Disruptive Innovation on Today's Aluminum Products

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