C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb

The generally improving business environment, well controlled costs
and the investments and acquisitions that were completed in 2010 will
be important contributors to the anticipated improved performance in
2011 and, more significantly, in future years.
$12 million. The titanium and super alloy industries saw strong growth in demand, supported
by improved short, medium and long-term forecasts for commercial aviation. We expect these
markets to continue to be strong in 2011.
Infrastructure
AMD produces chromium metal, ferrovanadium, ferrotitanium, ferronickel-molybdenum and
nickel boron that are used primarily in structural and stainless steels for infrastructure applications.
AMD’s 2010 sales to this market segment were $118.6 million, up 59% from 2009
and gross margins improved from $7.8 million in 2009 to $26.5 million. AMD’s ferrovanadium
sales volumes remained below capacity levels as the North American steel industry operated
at an average capacity utilization rate of only 70%; however, sales and margins on chromium
metal and ferronickel-molybdenum were strong, in line with the stronger specialty steel market.
Ferrovanadium index prices increased from $10.93 per pound vanadium in 2009 to $14.48 in 2010,
yet still well below prior year’s levels and sales continued to be finalized at substantial discounts
to the index. Steel capacity utilization rates are likely to improve gradually in 2011.
Energy
AMD produces metal and ceramic based target materials and coatings for photovoltaic end
markets and high purity chromium metal that is a critical element in super alloys used in land
based turbines. AMD’s primary product in this end market is a transparent conductive oxide
used in thin film photovoltaics. 2010 sales increased by 33% to $34.8 million and gross margin
percentages were maintained, increasing proportionately with higher volumes.
Specialty Metals and Chemicals
We produce a number of specialty metals, chemicals and powders used in diverse, critical
application end markets. Four of these are significant drivers of the division’s performance and
strategically important to the growth of AMD.
These primary products are: i) antimony trioxide and antimony based master-batches supplied
to the chemical industry for flame retardant applications, ii) aluminum master alloys and grain
refiners supplied to the aluminum industry to enhance the physical and mechanical properties
of aluminum, iii) tantalum concentrate and oxides used in electronics, and iv) super alloys and
aluminum alloy powders supplied to the pigments, coatings and chemicals industries. AMD
made substantial investments in these business lines in 2010 and expects that they will be
important components of our improved performance in the next several years.
This diverse end market segment generated sales of $357.8 million in 2010, a 46% increase
over 2009 and increased gross margins by 53%. The improvement in margins was driven largely
by increased volumes of aluminum master alloys as the aluminum industry rebounded from the
depressed levels of 2009. Strong operating performance improvements in aluminum powders,
primarily process and yield related, and increasing prices and higher volumes in antimony trioxide
were also significant factors in the improved performance in this segment.
24 Report of the Management Board | Business Review: Advanced Materials Division