Hydro Annual Report 2011b

In 2011, we established an electronic tool named Scrap Portal
to raise competence and efficiency within the organization.
Most remelters are using the portal for all scrap procurement.
The portal is also used to coordinate scrap collection with customer
deliveries. We have planned to finalize the development
of generating management reports that look at various aspects
of our scrap buying in March 2012.
In the area of recycling, we have lifted our budgets even further
as a joint effort between our Metal Markets, Rolled Products
and Extruded Products business areas. This includes funding
for projects related to closed-loop recycling of downstream
products, recycling-friendly alloys and products, upgraded
scrap processing, and furnace technologies that help improve
recycling rates and quality of scrap and metal produced. The
scope of all our recycling-related projects also includes reduction
of total waste and waste sent to landfill. Hydro participates
in national and EU-funded projects to support our
ambition as a company and industry.
Hydro has embarked on an extensive R&D program to develop
post-consumer scrap-recycling technology following market
demand for products with a low carbon footprint. The R&D
program includes joint projects with external research institutes
such as SINTEf and NTNU in Norway, and RWTH Aachen
in Germany. In 2012, we expect to finalize some projects to
prepare for investments in specific recycling plants.
We also engage in other joint projects. One project is funded
by Norsk forskningsråd: the AlEnergy project on Mass flow
Analysis (MfA), blending tools and melting/refining technology
together with NTNU and SINTEf. There are four BMBf
(German federal Ministry of Research and Education) funded
projects, one with CUTEC in Clausthal-Zellerfeld on SPL
inertization for alternative fuel usage, and three with RWTH
Aachen, covering bio-fuels, alloy recycling and aluminium
recovery from incinerator ashes. Another project with RWTH
Aachen on salt optimization recieves funds from the German
Industrial Research Comittee AIf (Arbeitsgemeinschaft industrieller
forschung).
In Norway we receive support from several public institutions
to further develop our smelter and casthouse technology as
well as downstream activities. These include Enova, The
Research Council of Norway and Innovation Norway. In
2011, we received approximately NOK 42 million from these
institutions, while we were granted NOK 190 million to be
paid out in the years to come if certain projects are implemented,
see also page 52.
Product development
Implementing and commercializing innovative product ideas
and concepts are core activities. Innovation often takes place in
joint projects with the customer once needs have been identified.
Numerous new products are launched every year.
vIABIlItY perForMAnCe
Innovation
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The carbon footprint of our solutions is gaining increasing
attention and relevance, especially when looking at new applications
of aluminium and when improving the ecological performance
of existing ones. Our approach to involve customers
and key stakeholders in developing better solutions helps us to
differentiate and become the partner of choice. for example,
our Rolled Products business area works with packaging manufacturers
to improve certain packaging material, to provide
high functionality while improving recycling rates.
We also work closely with customers to develop products that
save energy and reduce emissions. Aluminium façades can
lower operating costs and help enable buildings to produce as
much energy as they consume during operation. We have constructed
three such buildings in Hydro, in Germany, france
and India. Heat pumps, integrated photovoltaic systems and
intelligent building design all contribute to energy neutrality.
By bringing our building systems operation’s R&D team closer
to product development, we plan to increase sharing and
thereby strengthen the Domal, Wicona, Technal and Alumafel
brand centers, and to increase the speed-to-market of new
products. This includes utilizing competence from our India
unit, where craftsmen come closer to our brands’ range of specialty
products and systems, working mode and overall product
offer. In fact, the operation’s six locations in Europe and
one in India work as if they were in the same location. In addition
to the technical specifications of the products, delivery
time is an important competitive factor. A separate KPI has
been introduced to reduce the elapsed time from project to
product to customer delivery.
Through our Rolled Products business area, we have a strategic
research partnership with the University of Aachen in Germany,
aiming at modeling the entire rolling process chain. An
example of Rolled Products’ innovations in 2011 is the development
of a high-strength alloy that can contain 80-90 percent
of heat exchanger-clad production scrap. The new alloy
has been cast and rolled for seam welding, and the first trial
orders for the automotive industry have been produced.
HyGROSAL is a special aluminium coating that makes rotary
heat exchangers more efficient by allowing a combined transfer
of heat and mass. As a result, less energy is required for e.g. air
conditioning and cooling of industrial buildings and sports
arenas.
Best practice sharing
We strive toward business excellence through continuous
improvement, utilizing people, technology and systems to be
able to generate maximum value for our customers. Through
decentralized power and responsibility, decisions are made by
those best able to take them. Our business systems define the
underlying principles needed to create a performance culture in
a unit. One example is our Aluminium Metal Production System
(AMPS), which is our best practice system and standard for