Thomas Horton presents information on bimetallic conductors as an alternative to solid copper conductors. Some key points include:
Bimetallics use a thin layer of copper bonded to a core metal of steel or aluminum, providing conductivity with stronger and lighter materials. They have more stable pricing than copper and are resistant to theft. While bimetallics have been used since 1915, there remains potential to further educate engineers and expand applications in fields like automotive and renewable energy. Fushi Copperweld aims to partner with cable manufacturers to develop innovative bimetallic solutions.
1. Thomas Horton, Global Marketing Director Fushi Copperweld, Inc. (Nasdaq:FSIN) Web Site Presentation www.fushicopperweld.com 26 July 2010
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Notas del editor
NOTES: SLIDE 1 — INTRO It’s very good to be here in Gothenburg with such a distinguished group of leaders in our industry, and thanks to CRU for inviting me to speak. My company, Fushi Copperweld is a great example of the new model for business in the 21 st century— a global operation combining both Eastern and Western leadership, methodologies and corporate philosophies. The world marketplace for wire and cable is changing Emerging markets vs. existing markets Competitiveness means exploring different technologies and really thinking with a different hat on Many of our presentations yesterday revolved around this industry’s dependence on copper SEGWAY TO NEXT SLIDE: If you manufacture any kind of conductive cable today… you are a slave to one crazy master
NOTES: SLIDE 10 — COPPER IS NOT THE ONLY WAY TO GO START WITH “BAKER” ANALOGY, BUT KEEP IT SHORT You know, most cable designers are about copper wire the way pastry chefs are about white wheat flour— they can’t imagine working without it! There are, of course, alternatives to white flour that make very tasty desserts— cornmeal, nutmeals, spelt, rice, soy, etc.— and have added nutritional benefts and other good properties The same is true of conductors— copper is the default, but there are times when other materials provide better benefits NOW GO THROUGH THE BULLETS ON THE SLIDE... “CAPACITY OVERKILL” IS AN IMPORTANT CONCEPT (NEXT SLIDE)
NOTES: SLIDE 4 — WHAT ARE BIMETALLIC CONDUCTORS? Exactly what it sounds like— two metals joined into one Core of aluminum or steel, concentric copper cladding Illustrated process can vary from manufacturer to manufacturer, but this is the cladding process in broad strokes WALK THEM THROUGH THE DIAGRAM, BUT BRIEFLY One of the most important properties of bimetallics is that the two materials are permanently bonded and cannot be separated— they function effectively as one conductor Bimetallics are available in a variety of form-factors: round or flat wire in any diameter, strand, bunched fine wire, braid wire, tape, strip or busbar (NEXT SLIDE)
NOTES: SLIDE 2 — SLAVES TO A CRAZY MASTER I am talking, of course, about copper’s incredible volatility in the commodities market. This graph is plotted for copper prices in dollars per ton, day by day, showing massive upheaval— and this is just since 2006 If we take a bigger sample, the swings are even more telling, and if we adjust for inflation, it’s even worse Why so volatile? Speculation… Speculation has actually forced larger shifts in pricing than normally you would see from real supply and demand SEGWAY TO NEXT SLIDE I know, because we purchase copper cathode ourselves… but we are very shrewd in making the most of our copper resources
NOTES: SLIDE 3 — BIMETALLICS CAN SET YOU FREE Bimetallics pricing is much more stable in comparison Because we use so little copper in manufacturing bimetallic wire, and because the core metals are cheaper, bimetallics can cost as much as 70% less than solid copper wire Today, I am here to spread a message about our products, bimetallic wire & cable Honestly, bimetallics are largely misunderstood in this industry, though they have been around a very long time Even when cable manufacturers are familiar with bimetallics, conversion to them isn’t a high priority “ We just build the cables our customers ask for” I’m going to challenge you all to take a good look at bimetallics as a very real way to increase your bottom line, improve margins, and frankly, build superior products (NEXT SLIDE)
NOTES: SLIDE 11 — SOLID COPPER IS BOTH EXPENSIVE AND COSTLY JUST GO THROUGH BULLETS ON SLIDE, EMPHASIZE THEFT COSTS SEGWAY TO NEXT SLIDE Copper is in high demand both legally and illegally The main reason copper continues to be dominant is that bimetallics need a little better PR… there are a lot of misconceptions that need to be cleared up
NOTES: SLIDE 5 — CLADDING VS. PLATING Many people use “cladding” and “plating” interchangeably— in fact, in some languages there is no word to distinguish between the two processes They are very different processes, although both produce “bimetallic” wires Cladding is far superior (WALK THEM THROUGH POINTS ON SLIDE— LEAN ON BAD ECOLOGICAL ASPECT OF PLATING IN THE LAST POINT OF THAT SECTION) • So, for our purposes, we’ll only be addressing clad conductors
NOTES: SLIDE 6 — BIMETALLIC ADVANTAGES JUST WALK THEM THROUGH THE BULLET POINTS ON THE SLIDE, GIVE SPECIAL ATTENTION TO SKIN EFFECT Skin effect is really what makes bimetallics so well-suited to high frequency applications WHEN YOU GET TO “THEFT DETERRENT”… DON’T GO TOO FAR INTO IT I’ll talk a bit later about the importance of theft deterrence in our industry, but it is one of the chief advantages of bimetallics Now I’d like to explain the two main types of bimetallic conductors
NOTES: SLIDE 7 — CCS JUST GO THROUGH THE BULLETS ON THE SLIDE… THE ILLUSTRATION IS YOUR SEGWAY TO THE NEXT SLIDE CCS is ideal for any application that requires high fatigue resistance or tensile strength
NOTES: SLIDE 8 — CCA AGAIN, JUST GO THROUGH THE BULLETS ON THE SLIDE… LEAN ON FINE WIRE CAPABILITIES As electronics get smaller and weight becomes an issue, CCA is a particularly good alternative because of its light weight
NOTES: SLIDE 13 — CHANGING ATTITUDES THIS IS WHERE WE SPEAK DIRECTLY TO THEM AND MAKE OURSELVES LOOK LIKE THE R&D LEADERS JUST GO THROUGH THE BULLETS ON THE SLIDE, UNDERLINING OUR COMMITMENT TO ASSISTING THEM IN THEIR R&D EFFORTS SEGWAY TO NEXT SLIDE: It is always in the best interest of our customers to come up with better solutions — and what is in our customers’ best interest, is in our best interest What follows is a little illustration of how we as a company listened to the needs of our market, and have been able to help craft a new product (NEXT SLIDE)
NOTES: SLIDE 9 — ADVANTAGEOUS APPLICATIONS These are some of the markets where bimetallic conversion has been successful and could be more widespread AGAIN, JUST GO THROUGH THE BULLETS ON THE SLIDE… USE THE ILLUSTRATION WHEN SPEAKING TO AUTOMOTIVE SEGWAY TO NEXT SLIDE: What keeps bimetallics from being the worldwide standard in these applications is a failure on the part of our own industry to recognize bimetallics as their own proper entity Copper is so completely dominant… but… (NEXT SLIDE)
NOTES: SLIDE 16— NEW VISTAS FOR BIMETALLICS JUST WALK THEM THROUGH… WHEN YOU GET TO BUILDING WIRE, WE HAVE A CASE TO MAKE: Here’s an example of how bimetallics can be used to reduce costs, and as such, boost margins for a low-margin application, building wire… we’ve heard at this conference that a lot of cable manufacturers want to get out of this market… that’s because copper is killing you In the West, there is a misconception that you can’t use CCA as building wire That’s because they’re thinking of it like aluminum Pure aluminum was used as a cheaper alternative to copper wiring back in the 1960s and 1970s Failure to understand the physical properties and install proper connectors led to fires This is NOT a problem with CCA… it uses copper connectors— copper-to-copper Safety is naturally the primary concern— emerging markets are the proving ground for CCA in building wire all over the world It is being used without incident as a safe, reliable and cost-effective building wire
NOTES: SLIDE 17— EMBRACING BIMETALLICS SUMMARY SLIDE JUST HAMMERING HOME OUR MAIN POINTS WALK THEM THROUGH THE BULLETS
NOTES: SLIDE 18— FUSHI COPPERWELD WHO WE ARE— AGAIN, NOT A HARD SELL… DON’T WALK THEM THROUGH THESE BULLETS, JUST LEAVE THEM UP ON THE SCREEN As the world leader in the bimetallics industry, we feel a duty to speak on behalf of all bimetallics suppliers We want our cable manufacturing partners to understand that bimetallics offer them an array of choices and possibilities that will make their products better Your success is our success I HONESTLY DON’T EXPECT TONS OF QUESTIONS, BUT BE READY… IF IT GETS CONTROVERSIAL IT WILL BE ABOUT: GALVANIC CORROSION: Tinning or other processes can eliminate corrosion WE JUST TAKE ORDERS, WHY SHOULD WE CARE?: If cable manufacturers suggest bimetallics, their savings can yield better margins CHINA AND QUALITY: First, make sure of the process: plated is not clad I can’t speak for all manufacturers, but I can speak for us— we are as committed to shipping quality products from China All our facilities are ISO certified for quality IMPORTANT QUESTION: