(AOF) – Remelting and recycling aluminum scrap requires only a fraction of the energy needed to produce primary aluminum. However, recycled aluminum contains impurities that adversely affect the specific properties of the material. The collaboration between Nexans and Trimet aims to coordinate the optimization of the supply of raw materials and the development of innovative materials.
For example, Nexans has optimized the sorting of aluminum waste on its production sites in Europe through RecyCâbles, a Nexans-Suez joint venture, with a view to their reintegration into the production of electrical cables. With its mastery of recycling, Trimet promotes circularity by using this waste to develop a high quality alloy that meets mechanical and electrical performance requirements.
“Our project shows that recycling offers enormous potential for reducing CO2 emissions. I am proud that Nexans can now provide its customers with a product offering superior quality while improving the circular economy. Nexans is thus continuing its research strategy new sources of value for its customers,” said Vincent Dessale, Chief Operating Officer of Nexans.
“For us, recycling is an important part of sustainable aluminum production. The development of high-quality alloys with the lowest possible carbon footprint contributes significantly to this,” says Philipp Schlüter, CEO of Trimet Aluminum SE and Chairman of Trimet France SAS.
Nexans plans to maximize the use of electrical wires containing recycled aluminum in 2023. The group will thus be able to meet the growing demand from its customers for products with a favorable eco-balance.
For its part, Trimet is expanding its range of recycled products in the electrical wire sector. In doing so, the aluminum producer builds on its commitment to decarbonize production while making an additional contribution to the energy transition.
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Key points
– Group created in 1901 specializing in cables for electrification;
– Turnover of €6.1 billion achieved at 82% with 4 target sectors: buildings & territories for 41%, industries & solutions for 23%, high voltage & projects for 13%, telecoms and data for 5%;
– Breakdown of sales at 45% in Europe, 31% in the Americas, 14% in Asia Pacific and 8% in the Middle East, Africa and Russia;
– “Electrifying the future” business model focused on the electrification value chain covering from energy production to transmission, distribution and consumption;
– Split capital with 3 strong positions – the Chilean Invexans Pack for 28.8%, BPI France for 7.69% and the employees for 6.3%-, Jean Mouton chairing the 14-member board of directors, Christopher Guérin being General manager ;
– Very healthy financial position with debt reduced to €74m, hence an upgrade in its rating, cash of €1.8bn, giving an equity ratio of 5% and a leverage effect of 0.2 .
Challenges
– Strategic ambition 2022-24 “Winds of change”:
– concentration on 4 sectors and reorientation of the portfolio towards electrification,
– €200 million investment in submarine high voltage by 2023 in Norway and the United States,
– deployment of the SHIFT Performance program
– financial objectives: €6 to 7 billion in turnover and operating margin between 10 and 12%;
– Dynamic innovation strategy with 100 M€ invested in the 15 R&D centers (1,800 patents):
– efficiency: eco-design approach,
– intelligence: use of digital twins to increase the return on assets and limit working capital requirements,
– simplicity: Plug & Play cabling for renewable energy installations?
– AmpaCity, a new global innovation hub dedicated to carbon-free electrification;
– 2030 environmental strategy validated by the SBTi:
– 46.2% reduction in scope 1 and 2 CO2 emissions of 46.2% vs 2019 and 24% by 2030 for those emitted in scope 3 (suppliers),
– intermediate objectives for 2023: certification of industrial sites at 93%, 70 to 80% of sales of products contributing to the energy transition and 80% of connected and recyclable cables,
– full deployment of the E3 tool (Economy, Environment, Commitment) for measuring performance;
– Contribution of the Colombian cable manufacturer Centelsa to the strategy of electrification offers;
– Good start for the cable ship Aurora and the American cable factory and increase in the order book of €2.1 billion in power transmission and production.
Challenges
– Diversity of profitability between branches, buildings & territories being the lowest margins;
– Inflation, in particular of the price of copper, offset by the SHIFT Performance and Prime and Amplify plans and the increases in selling prices;
– Shortage of semiconductors and raw materials: launch of Ultracker, a set of solutions for supply chains;
– After a 6.7% increase in sales at the end of September, the 2022 target has been raised twice by operating profit of between €500 and €600 million, and free cash flow between €225 and €250 million;
– Redemption of shares.
The Threat of Open Technology, RAN
Equipment manufacturers will have to face this threat in the next few years. This new architecture consists in replacing the traditional antennas by software allowing more interoperability thanks to the cloud. Telecom operators will thus be able to reinforce innovation and increase their choice of suppliers. They will also be able to have access to more services and flexibility for network deployment and management costs which should decrease. For the moment, none of the major operators has switched to this new technology. Nevertheless, the freedom of choice of suppliers is a decisive element, underlined by the decision of Europe and the United States to sanction the Chinese Huawei for national security reasons.