Constellium is committed to developing, producing and selling sustainable products: Nicolas Brun, VP Communication, Cons

AlCircle had the opportunity to interact with Mr. Nicolas Brun, Vice President; Communication for Constellium, a global leader in the design and manufacturing of innovative specialty downstream aluminum rolled and extruded products, serving primarily the aerospace, packaging and automotive end-markets. Mr. Brun updated AlCircle about Constellium’s current and future projects, its commitment towards sustainable development and shared his view on the aluminium industry.

Excerpts from the interview:

AlCircle: Could you tell us in brief about the products and services of Constellium and its new projects and expansions?

Mr. Brun: Constellium has a strategic footprint of manufacturing facilities located in the United States, Europe and China. Our business model is to add value by converting aluminum into semi-fabricated products. We are the supplier of choice to numerous blue-chip customers for many high value-added aluminum products with performance-critical applications.

Constellium operates 23 production facilities and one research and development (“R&D”) center and has more than 8,000 employees. It is our view that our portfolio of flexible and integrated facilities is among the most technologically advanced in the industry. We believe that our presence in Europe, the United States and China strategically position us to service our global customer base. Constellium is the leading global supplier of aerospace plates, the leading European supplier of can body stock and a major global supplier of automotive structures. Our R&D center located in Voreppe, France, is a world-class research center dedicated to aluminum, and is central to our capacity for innovation, from research to market launch.

In November 2013, Constellium was awarded a multi-year contract to supply aluminum alloy airframes to The Boeing Company. The contract also includes the continued supply of AIRWARE®, the low-density Aluminum-Lithium solution, for the Boeing 787 Dreamliner airplane. The AIRWARE® technology can deliver up to 25% weight reduction contributing to lower CO2 emissions considerably.

In the automotive segment, the company has recently announced its plans to invest in rolled Body-in-White capacities: up to €200 million over the next three years to further grow its Body-in-White (BiW) business in Europe and, together with UACJ, approximately $150 million to serve the North American automotive market.

Constellium works closely with automotive manufacturers on the design and production of structural components and modules from the earliest development stage to production. In February 2014, it announced the launch of new aluminum high-strength Crash Management Systems (CMS) technology designed for the front and the rear of a vehicle for enhanced structural protection in the event of a collision.

AlCircle: Please tell us in brief about Constellium’s proposed joint venture facility that is expected to supply Body-in-White aluminum sheet for the automotive industry.

Mr. Brun: Constellium has recently announced its intention to create a joint venture with UACJ, through Tri-Arrows Aluminum Inc.(TAA), UACJ’s subsidiary with Sumitomo Corporation and Itochu Group to serve the North American market. The JV is expected to include a continuous heat treatment and conversion line with an initial target capacity of 100,000 metric tons supplied by cold rolled coils from both partners’ rolling mills. The planned facility is designed to allow for expansion beyond 100,000 tons. The total joint investment by both parties is expected to amount to approximately $150 million.

Current Corporate Average Fuel Economy (CAFE) regulations require significant reductions in fuel consumption by vehicles. The intrinsic lightness of aluminum makes it a perfect material for the automotive industry to meet these improvements. Automakers in the United States have already started to convert key models from steel to aluminum which we believe should translate into a significant increase in demand. We estimate that the U.S. market for Body-in-White aluminum rolled products could grow from less than 100,000 tons in 2012 to approximately 1 million tons in 2020. Constellium expects to benefit from this significant growth potential. UACJ is the ideal partner for us to serve U.S. customers with high-quality automotive sheets for Body-in-White applications like hoods, doors, roofs and structural parts of cars and trucks.

AlCircle: Please tell us in brief about the initiatives Constellium is taking in its commitment towards sustainable development.

Mr. Brun: Maximizing value for all our stakeholders over the long run is the essence of Constellium’s ambition with respect to sustainability. Sustainability is certainly not a new concept for us – we have a century of history behind us. But it is definitely one that we want to take to another level and to place at the heart of our strategy. By creating a Sustainability Council that reports directly to the Executive Committee and drawing up a Charter and a Roadmap that set out our vision and future direction with measurable targets, Constellium has underlined sustainability as a critical factor of its success. Our stakeholders understand that the company cannot be driven by economic success alone.

In its Sustainability Report 2012 entitled ‘Altogether more sustainable,’ Constellium has set measurable targets for governance, people, operations and products, endorsing as well as industry targets to emphasize the need for increased cooperation throughout the aluminum value chain. We are working to minimize the environmental impact of all our operations in the key areas: energy, water and waste. Constellium is committed to developing, producing and selling sustainable products, meeting the needs and reducing the environmental impact of our customers now and in the future. In this respect, reporting to the Carbon Disclosure Project has enabled us not only to make all its greenhouse gas emissions data openly available, but also to identify areas of improvement with respect to climate change.

In the same spirit of cooperation, Constellium is a founding member of the Aluminum Stewardship Initiative that aims to set an environmental, social and governance standard for companies involved in the aluminum value chain. Constellium has also been awarded the Silver Recognition Level rating by EcoVadis, a rating agency that specializes in sustainable development and ethics.

AlCircle: What is your outlook for the aluminum industry from the perspective of the present recessionary condition in the market? Which industrial sector do you think has the potential to boost the demand for aluminum?

Mr. Brun: We believe that Constellium is well positioned on selected strategic end-markets that require innovative and value added products, technological expertise and efficient assets: aerospace, automotive and packaging. We use our technological capabilities to develop tailored products in close partnerships with our customers, with the aim of building long-term relationships. As we highlighted in our Third Quarter 2013 Results, market conditions are good in aerospace and automotive and the can body stock business remains stable.

As far as the automotive market is concerned, the past few years have seen a notable increase in the use of aluminum flat rolled products in premium car models in Europe. We believe that this growth will continue in light of stringent European legislation on CO2 emissions and resource efficiency. Industry consensus is growth of auto body sheet from 200,000 tons in 2012 to 600,000 tons in 2020 in Europe and from 100,000 tons in 2012 to approximately 1 million tons in 2020 in the United States. Constellium expects to benefit from this market growth as the integration of aluminum components continues to expand not only in premium vehicles but in the high-volume car segment.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.