Aluminum giant, Alcoa Inc. (AA) has introduced its breakthrough manufacturing technology– Micromill – which will manufacture the most advanced aluminum sheet on the market.
The Micromill will also be the fastest, most productive aluminum casting and rolling system globally, taking only 20 minutes to turn molten metal into coil, whereas a conventional rolling mill takes around 20 days to do so. It also reduces the usage of energy by 50% and has a remarkably smaller footprint than a traditional rolling mill.
The Micromill process, patented by Alcoa, considerably changes the microstructure of the metal, and produces an aluminum alloy that has 40% greater formability and 30% greater strength than aluminum that is presently used. The process also adheres to the stringent automotive surface quality requirements. Automotive parts made with the Micromill material will be twice as formable and their formability characteristics are comparable to mild steels.
Moreover, the Micromill material will provide customers with lighter, more fuel efficient, safer and more stylish vehicles in the future. It can also be conveniently shaped into intricate forms, such as the inside panels of automobile doors and external fenders, which are usually made of steel. As the material provides 30% greater strength, it is dent resistant and allows production of automotive sheets which are thinner and lighter than previous generations. With this, the automakers can also avail reduced system cost.
The Micromill’s continuous casting technology will be able to cater to the increased demand for automotive sheet content per vehicle which is expected to increase eleven-fold between 2012 and 2025. Alcoa stated that it has secured a strategic development partner and has completed successful consumer product trials. The company is in the process of qualifying Micromill material for next generation automotive platforms.
Alcoa currently carries a Zacks Rank #2 (Buy).
Other mining companies worth a look include Orbite Aluminae Inc (EORBF), MAG Silver Corp. (MVG) and Lake Shore Gold Corp. (LSG). All of these hold a Zacks Rank #2 (Buy).
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