Materials conference discusses role of UK steel in a rapidly changing automotive industry
16 Sep 2002
Setting the scene for the steel division’s annual meeting of the Institute of Materials, Minerals and Mining (IoM3), Professor Garel Rhys OBE (pictured left), director, Centre for Automotive Industry Research, Cardiff Business School, said the major challenge for the automotive supply chain was coping with fundamental change in a dynamic automotive sector. In his opening address, Professor Rhys pointed to exciting times ahead with super competition, less product differentiation and severe price and non-price competition: “There is nowhere for the inefficient to hide.”
Addressing an audience of steel industry executives and technical managers, Professor Rhys said the global automotive industry remains one of the world’s greatest industrial and commercial sectors. Accounting for almost 10 per cent of manufacturing output and employing nine million people throughout the value chain within the European Union alone it continues to present a huge opportunity for suppliers.
“More motor vehicles will be produced in the world in the next 20 years than in the last 100 years of the motor industry’s existence,” said Professor Rhys. “Nearly 180 new production plants, each capable of making 300,000 vehicles a year, will be required to make these new vehicles, most in new manufacturing locations. This will need an investment of 80 trillion dollars in today’s money. The financial, logistical and operational requirements of achieving this will be huge.
”Commenting on how it would respond to this opportunity, Chris Hollick, executive director of Corus, said the company was facing up to the challenge of pursuing technology leadership.“Not many years ago the steel industry delivered uncoated, heavy gauge mild steel to the automotive industry. Nowadays, the automaker wants it gauge and width toleranced, grade and coating specific, with defined surface quality, delivered just-in-time – and all at the same price as 30 years ago.
”Mr Hollick drew attention to how improvements in the quality, service and technical performance of modern steels enable the carmakers to deliver to the end user a high quality product that is safe, durable and corrosion free.
“Needless to say, the steel industry has had to make a huge investment in application, product and process technology to meet those demands – and it must continue to do so.
”To build better relationships with key automotive customers and identify greater business opportunities, Corus has pursued a number of initiatives including setting up Corus Automotive Engineering, putting a group of elite vehicle engineers in place to talk the customers’ language.
Recent technological developments include investing in the world’s first two-dimensional tailored blank facility in the Wednesfield Steelpark, producing rear door inners for Jaguar’s X-Type saloon. Corus Hyfo in partnership with Tower Automotive has just won the world’s first production order for thin-walled hydroformed tubes for the new Lancia Thesis subframe.
Over the two-day conference (16/17 September 2002), speakers addressed a range of steel industry issues relating to the motor industry including the challenge of competitive materials, the latest developments in new processing technologies such as hydroforming, the specific requirements of the motorsport sector, as well as globalisation and consolidation of the supply chain.
Note to editors:
Synopsis of the conference papers available from Jackie Butterfield at the (IoM3) Jackie_Butterfield@materials.org.uk, or contact Rob Palmer at Automotive PR.
Press release can be downloaded from websites: www.automotivepr.com, www.corusgroup.com, and www.newspress.co.uk
Corus Automotive media enquiries:
Rob Palmer+44 1582 763255
rpalmer@automotivepr.com
Marco Ferrari +44 1582 763259
mferrari@automotivepr.com
Institute of Materials enquiries:
Jackie Butterfield
Jackie_Butterfield@materials.org.uk
Note for editors:
The Institute of Materials, Minerals and Mining was formed in June 2002 from the merger of the Institute of Materials and the Institution of Mining and Metallurgy. The Institute’s Steel Division is the largest technical division within the new institute. More information on the Institute’s website at www.iom3.org
