AMG applies metallurgical based technologies to provide solutions for industrial challenges. AMG provides vacuum furnace solutions for high purity metals and is also a producer of specialty alloys and metals used to improve the characteristics of their end products. AMG applies this knowledge to help meet the growing demand for energy and resource conservation in development of advanced applications in the energy, transportation, infrastructure and specialty metals and chemicals industries.

Transportation

Aerospace
The global aerospace industry is an essential part of an increasingly connected world, with aviation growth projected to be 5-6% per annum for the next twenty years. Global aviation accounts for about 2% of global CO2 emissions and this figure could rise to 15-20% by the year 2050¹. To help offset this environmental impact, the global aerospace industry is aiming for an additional 25%² improvement in fuel efficiency and CO2 emissions, primarily through technological enhancements by 2020.

Reducing structural weight is one of the major ways to improve aircraft performance. AMG produces a number of specialty alloys and coatings including Gamma Titanium Aluminide (TiAl) used to help reduce weight and improve operational performance of aircraft. AMG also develops and produces advanced vacuum furnace systems used to make titanium and other high-purity materials used in aerospace applications.

Automotive
Highway vehicles release about 1.7 billion tons of greenhouse gases (GHGs) into the atmosphere each year – mostly in the form of CO2. Each gallon of gasoline burned creates 20 pounds of GHG, underscoring the increase in legislation aimed at reversing this trend.4 The European Union, for example, has set mandatory emission reduction targets for new cars. This legislation is the cornerstone of the EU’s strategy to improve the fuel economy of cars sold on the European market. The fleet average to be achieved by all new cars is 130 grams of CO2 per kilometer (g/km) by 2015 – with the target phased in from 2012 – and 95g/km by 2021, phased in from 2020.5

Similarly, in the United States, the National Program for greenhouse gas emissions and fuel economy standards was developed jointly by the Environmental Protection Agency and the National Highway Traffic Safety Administration and applies to light duty cars and trucks in model years 2012-2016 (first phase) and 2017-2025 (second phase). Together the final standards are projected to result in an average industry fleet wide level of 163 grams/mile of carbon dioxide (CO2) in model year 2025, which is equivalent to 54.5 miles per gallon (mpg) if achieved exclusively through fuel economy improvements.6

The development of advanced applications is essential in limiting energy expenditure, both in the manufacturing process and in use. AMG’s heat treatment services business processed over 100 million automotive components in 2014, enabling its customers to improve the fuel efficiency of the vehicles they produce.

1 The Committee on Climate Change, September 9, 2009.
2 IATA
3 IATA The IATA Technology Roadmap Report June 2009
4 US Department of Energy: http://www.fueleconomy.gov/feg/climate.shtml
5 European Commission, Climate Action: http://ec.europa.eu/clima/policies/transport/vehicles/cars/index_en.htm
6 United State Environmental Protection Agency: http://epa.gov/otaq/climate/regs-light-duty.htm#new1

Infrastructure

A need to improve existing global infrastructure could lead to as much as $35 trillion in public works spending over the next 20 years¹. Demand for vanadium, over which 90% goes into steel, is forecast to grow at a compound annual growth rate of 4.9% for the decade ending 2018² . This demand will be driven both by an increase in infrastructure expenditures and an increase in vanadium usage per ton of steel in developing countries. For example, structural steel in China contains only 1/3 of the vanadium per ton of steel as in North America³.

Through the use of a proprietary, environmentally friendly process, AMG is the largest producer of ferrovanadium in North America and the largest recycler of waste streams used to produce vanadium in the world. AMG’s advanced technological process recovers these valuable specialty metals from hazardous waste, eliminating the need to landfill this waste. AMG estimates that the energy consumption used to produce recycled vanadium is approximately 60% of primary manufacturing routes.

Benjamin Tal, CIBC World Markets, January 26, 2009
CPM Group statistics, July 2008
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Energy

The United Nations forecasts that the global population will grow approximately 40% between now and 2050 to 9.1 billion people¹, an increase of 2.6 billion people, or more than the entire world’s population in 1950. Energy demand is expected to grow even faster – an 86% increase by 2050² . CO2 emissions could jump 56% by 2030, leading to an eventual increase in average global temperature of up to 6°C. It is estimated that over “$22 trillion in investment will be needed in energy-supply infrastructure by 2030³” in order to compensate for global growth.

AMG is meeting this demand through research and development on nuclear technology for the safe storage of nuclear waste, vacuum furnaces used in the production of solar silicon ingots and specialty alloys used to help make industrial gas turbines more fuel efficient. In addition, AMG Silicon produces silicon metal used for the production of polysilicon by the solar energy industry.

1UN Population Division
2Energy Information Agency’s International Energy Outlook 2009
3Nobuo Tanaka, Executive Director of the International Energy Agency (IEA), in his key note address to the 11th International Energy Forum (IEF) Rome April 2008

Specialty Metals & Chemicals

Specialty metals and chemicals are products that enhance existing products, and are used to create new products that enhance standards of living in the context of stable development. Utilizing its extensive background in metals based material technologies, AMG produces innovative specialty metals and chemicals for a wide variety of applications. AMG focuses on creating intermediate products that enhance the performance of our customer’s end products while promoting sustainable development.

Over the last century AMG’s predecessor companies have been developing the “next generation” materials to improve the quality of life and spur innovation. Specifically, AMG is focused on producing customized metallurgical solutions that meet the market’s exacting demands. Included in AMG’s product portfolio is tantalum, a material used as a capacitor in electronics. AMG produces vanadium based chemicals that improve the insulating and infrared absorbent properties of structural glass and chemical compounds that improve the melting point of enamels used in cookware or electrical housings.

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