TRENDS FOR THE BRAZILIAN FOUNDRY INDUSTRYBrazilian Foundry Association – ABIFA

Oct/2013

MAIN TOPICS

1) Brazil in figures2) Infrastructure3) Cast Metal in Brazil and Worldwide4) Cast Metal - Characteristics5) Exports – Evaluation6) Trends of Brazilian Industry

BRAZIL

POPULATION: 201 MILLION

AREA: 8.5 MILLION km2.

GDP: 2.39 TRILLION US$ (2012)

Economy: The largest in Latin America and 6th in the world

Car fleet: 32.1 million (2010)

Export 2012: 242,6 billion US$

Import 2012: 223,1 billion US$

MAIN TOPICS

1) Brazil in figures2) Infrastructure3) Cast Metal in Brazil and Worldwide4) Cast Metal - Characteristics5) Exports – Evaluation6) Trends of Brazilian Industry

Foundry IndustryRaw Material (%)

Surplus to export

5

100

28,8

100

36,5

100

40

0

20

40

60

80

100

Pig Iron Aluminum Ferroalloys

production exports

95,7

258,8

0

50

100

150

200

250

300

Installed Energy Potential

Foundry IndustryElectric Power

Hydro Generation is the main source

6

• Foundry Technical Courses

• Metallurgical Engineering

• Foundry MBA

• Foundry Engineering

Foundry IndustryWell-Trained Manpower

7

MAIN TOPICS

1) Brazil in figures2) Infrastructure3) Cast Metal in Brazil and Worldwide4) Cast Metal - Characteristics5) Exports – Evaluation6) Trends of Brazilian Industry

Foundry in BRAZILRegional Production

South + Southeast = 91%

Foundry Industry World Production

2011*• 1 º CHINA 41,260,000• 2 º USA 10,008,000• 3 º INDIA 9,994,000• 4 º JAPAN 5,474,008• 5 º GERMANY 5,466,696• 6 º RUSSIA 4,300,000• 7 º BRAZIL 3,343,685• 8 º KOREA 2,340,200• 9 º ITALY 2,213,287• 10 o FRANCE 2,046,826• 11 º MEXICO 1,651,679• 12 º TAIWAN 1,447,582

* Source: Modern Casting/Dec 2012

10

MAIN TOPICS

1) Brazil in figures2) Infrastructure3) Cast Metal in Brazil and Worldwide4) Cast Metal - Characteristics5) Exports – Evaluation6) Trends of Brazilian Industry

Foundry IndustryIron Casting – Characteristics

Distribution of the Production

7th. World Production

BASE YEAR 2012

Sales Revenue billion US$ 6.56Direct Jobs (thousand) 40.45

Production t/year 2.4MillionInstalled Capacity t/year 3.5Million

Nb. of Companies 521 – 95% Small/Medium

12

Foundry Industry Gray Iron + malleable / nodular (2012)

unit: thousand ton

13

Foundry Industry Steel Casting - Characteristics

Distribution of the Production

6th. World Production

BASE YEAR 2012

Sales Revenue billion US$ 1.72

Directs Job (thousand) 4.18

Production thousand t/year 258.1

Installed Capacity (th) t/year 320

Nb. of Companies 192 - 95% Small/Medium

14

Foundry Industry Carbon Steel Casting/Manganese/Stainless (2012)

unit: thousand ton

15

Foundry Industry Aluminum Casting – Characteristics

Distribution of the Production

13st. World Production

BASE YEAR 2012

Sales Revenue billion US$3.64

Directs Job (thousand) 4.3

Production th t/year 241

Instal. Cap. th t/year 320

Nb. of Companies 334 - 95% Small/Medium

7

Foundry Industry Aluminum Pressure Die Casting / Gravity (2012)

unit: thousand ton

7

Foundry Industry General Characteristics (Iron+Steel+Non Ferrous)

BASE YEAR 2012Sales Revenue billion US$ 11.4

Directs Job (thousand) 64.1

Production Million (t/year) 2.9

Installed Capacity (t/year) 4.2 million

Companies132595%

Small/Medium

7th. World Production18

MAIN TOPICS

1) Brazil in figures2) infrastructure3) Cast Metal in Brazil and Worldwide4) Cast Metal - Characteristics5) Exports – Evaluation6) Trends of Brazilian Industry

Foundry IndustryMetalcasting Exports – ton and thousand US$ (2000-11)

Iron + Steel + Non Ferrous

Foundry Industry Exports by Metal – ton (2000-11)

(Iron, Steel and Non Ferrous)

21

Foundry IndustryMetalcasting Exports by Metal – (thousand US$)

Iron, Steel and Non Ferrous

22

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

280244

332

421

555

702

811873

990

476

881

1.129917

52 41 54 50129

215

329 245 272

136164 207 191

66 52 61 94168

178234 236 232 151

140185

254

Ferro Aço Não FerrososIRON STEEL NON FERROUS

Foundry Industry Exports by Destination – US$ - %

Iron + Steel + Non Ferrous

23

MAIN TOPICS

1) Brazil in figures2) Infrastructure3) Cast Metal in Brazil and Worldwide4) Cast Metal - Characteristics5) Exports – Evaluation6) Trends of Brazilian Industry

• Vehicle Production - Domestic Demand expected to be at 2020 = 6.3 million vehicles

• Considering the positive effects of it in the domestic production of machinery and other sectors of the foundry customers

• Considering investments in infrastructure for international events in Brazil (FIFA World Cup – 2014 and Olympic Games –2016 )

• Considering investments in Petrochemical Industry, pre-salt and Transports

Necessary Investments (2013 – 2017) Considerations:

25

Installed Capacity 2.77 billion US$ + 1,300 th ton

Technology

Consider 2.21 billion dollars to increase the installed capacity and560 million dollars to improve technology

Foundry Industry Necessary Investments (2013 – 2017)

26

PRODUCTION FORCAST – 2013

METALS (t) FORCAST INSTALLED CAPACITY

OCCUPANCY RATE

IRON 2700 3530 76%

STEEL 230 320 72%

NON FERROUS 270 350 77%

TOTAL 3200 4200 76%

Foundry Industry Production x Installed Capacity (ton)

28

Associação Brasileira de Fundição - ABIFABrazilian Foundry Association – ABIFA Av. Paulista, 1274 – 20o. Andar – S.Paulo-SP - BrasilPh: (+55 11) 3549-3344 and Fac (+55 11) 3549-3355www.abifa.org.br Oct/2013

29

THANK YOU !

謝謝