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Bright outlook for PM in Canada
Bright outlook for PM in Canada The Canadian p o w d e r metallurgy (PAl) industry is led by a handful of export-orientated companies and represents a small but vibrant segment of the North American PM scene. A few Canadian firms in p o w d e r and parts production have "won big" through the quality, technology, and competitiveness of their products, and have a d v a n c e d to global p r o m i n e n c e in their sectors. Consultant Joseph Capus t a l k e d r e c e n t l y to the leaders of m a j o r PM companies in Canada and reports on their optimism for 1 9 9 4 . Highlights for selected companies are covered in the following pages.
T
he Canadian PM industry is looking forward to a successful year in 1994 -- a most welcome backdrop to the 1994 International Conference and Exhibition on Powder Metallurgy pM2TEC'94 taking place in Toronto this May. According to one industry observer, the Canadian economy is responding to low interest rates and stronger US growth. The Canadian PM industry is very dependent on North American automotive production, where stronger growth will provide a positive benefit to the whole PM industry. There are PM businesses in Canada active in major sectors of the industry. ferrous and non-ferrous powders, PM parts, hardmetals, PM advanced materials and other speciality products. Some of these companies are significant on the global level. On the metal powder production side, Inco Ltd represents the world's largest nickel powder source, while Quebec Metal Powders Limited, which recently completed a major expansion, is the second biggest iron and steel powder producer in North America. Together with Domfer Metal Powders, the Canadian ferrous powder industry capacity is close to 125 000 tonnes per annum, or about 30% of the North American total. In the PM parts production sector, Stackpole Ltd has come a very long way from the time when it was a small Ontario PM company. With three PM plants in Canada and one in the United States, it is not only the leading Canadian PM fabricator but ranks in the top tier of North American producers, with annual sales pushing
C$1O0 million. It has done this by pursuing the high-tech, high-density PM route, gaining market share by offering high-performance components as well as engineered systems and assemblies. According to its President, George Pataracchia, Stackpole's plans for the future will ensure its position as the leader of the Canadian PM industry. At the other end of the scale, Precitech Inc has recently started up in Quebec City as a specialist PM fabricator, aiming to carve out a niche for itself with high t e m p e r a t u r e sintering capabilities and speciality alloys. It is benefitting from participation in a government-assisted technology development p r o g r a m m e in partnership with other Quebec manufacturers and local universities. Another newcomer on the scene with help from government assistance programmes is Rotopress International Inc, of St-Laurent, Quebec. Rotopress is pursuing the commercialization of its rotary cold repressing technology, and expects to introduce its first RCR presses at the Toronto PM show. Although research is not intended to be a specific topic of this review, the significant efforts made by federal and provincial governments to encourage PM technology development in Canada are worth noting. In addition to the items mentioned above, there is basic PM research in progress at several government and university laboratories. Much of this work is in conjunction with industrial partners. Also, the funding of Westaim Technologies Inc, a five-year multimillion-dollar research programme under-
0026-0657194157.00 © 1994, Elsevier Science Ltd. 22
FOCUS
ON
CANADA
t h a t t h e s e c o m p a n i e s will begin to a s s e m b l e m o r e vehicles in N o r t h A m e r i c a a n d use m o r e N o r t h A m e r i c a n m a d e p a r t s . The i m p a c t of NAFTA is t h e r e f o r e seen a s n e u t r a l for C a n a d i a n c a r - p a r t s manufact u r e r s in general, a n d hence p r e s u m a b l y for t h e f o r t u n e s of C a n a d i a n PM m a n u f a c turers. In conclusion, t h e r e have been signific a n t a d v a n c e s in b o t h the p o w d e r p r o d u c i n g a n d PM p r o d u c t s s e c t o r s of t h e C a n a d i a n i n d u s t r y since t h e l a s t review in 1992(1). Although the recent recession r e s u l t e d in s o m e c u t b a c k s a n d p l a n t closures, t h e i n d u s t r y b o u n c e d b a c k in 1993 a n d t h e o u t l o o k is o p t i m i s t i c for t h e b a l a n c e of this year. •
t a k e n by S h e r r i t t Inc, t h e p r o v i n c e of A l b e r t a a n d t h e federal government, h a s allowed a m a j o r e x p a n s i o n of S h e r r i t t ' s a p p l i e d r e s e a r c h p r o g r a m m e s , several of which a r e p o w d e r m e t a l l u r g y related. The p a s s a g e of t h e c o n t r o v e r s i a l N o r t h A m e r i c a n Free T r a d e A g r e e m e n t ( N A F r A ) was c o m p l e t e d only in late 1993, so it is t o o early to see any impact. However, t h e view of s o m e m a j o r p l a y e r s in t h e PM i n d u s t r y is t h a t significant c h a n g e s are unlikely, since the North American industry has been o p e r a t i n g as one big i n t e g r a t e d m a r k e t for m a n y years. In general, a u t o m o t i v e p a r t s s o u r c e d from C a n a d a a r e e x p e c t e d to r e m a i n s t a b l e at a b o u t 15% for t h e 'Big Three' car m a n u f a c t u r e r s , a c c o r d i n g to a University of Michigan a u t o m o t i v e i n d u s t r y a n a l y s t . C a n a d i a n p a r t s p r o d u c e r s will c o n t i n u e to s u p p l y i m p o r t c a r m a k e r s with a b o u t 10% of t h e i r parts, d e s p i t e t h e fact
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AI'$RA
(1). M.A.Clegg,J.M. Capus, R.H. Angers, and J.A. Lund, P oWd e r Metallurgy in Canada," Int. J. Powder Metall., 1992, vol. 28, no. 3, p.249.
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FLUID AG is available to you -
Symplicity Flexibility Quality High performance
ABRA FLUID AG has outstanding achivments in SINTER-HIP and CIP pressing, for reserach and production purposes. We offer tailor made equipment in a quality which sets the standard worldwide. For more information please call us now. SINTER-HIP press lOPa - 200MPa, 2000°C
ASRA 23 MPR April lgg4
FLUIDAG
Industrie N611en, Birkenstrasse 109 CH 9443 Widnau/Switzerland Telephone 071 / 72 78 72, Fax 071 / 72 78 75
T
he Canadian PM industry is looking forward to a successful year in 1994 -- a most welcome backdrop to the 1994 International Conference and Exhibition on Powder Metallurgy pM2TEC'94 taking place in Toronto this May. According to one industry observer, the Canadian economy is responding to low interest rates and stronger US growth. The Canadian PM industry is very dependent on North American automotive production, where stronger growth will provide a positive benefit to the whole PM industry. There are PM businesses in Canada active in major sectors of the industry. ferrous and non-ferrous powders, PM parts, hardmetals, PM advanced materials and other speciality products. Some of these companies are significant on the global level. On the metal powder production side, Inco Ltd represents the world's largest nickel powder source, while Quebec Metal Powders Limited, which recently completed a major expansion, is the second biggest iron and steel powder producer in North America. Together with Domfer Metal Powders, the Canadian ferrous powder industry capacity is close to 125 000 tonnes per annum, or about 30% of the North American total. In the PM parts production sector, Stackpole Ltd has come a very long way from the time when it was a small Ontario PM company. With three PM plants in Canada and one in the United States, it is not only the leading Canadian PM fabricator but ranks in the top tier of North American producers, with annual sales pushing
C$1O0 million. It has done this by pursuing the high-tech, high-density PM route, gaining market share by offering high-performance components as well as engineered systems and assemblies. According to its President, George Pataracchia, Stackpole's plans for the future will ensure its position as the leader of the Canadian PM industry. At the other end of the scale, Precitech Inc has recently started up in Quebec City as a specialist PM fabricator, aiming to carve out a niche for itself with high t e m p e r a t u r e sintering capabilities and speciality alloys. It is benefitting from participation in a government-assisted technology development p r o g r a m m e in partnership with other Quebec manufacturers and local universities. Another newcomer on the scene with help from government assistance programmes is Rotopress International Inc, of St-Laurent, Quebec. Rotopress is pursuing the commercialization of its rotary cold repressing technology, and expects to introduce its first RCR presses at the Toronto PM show. Although research is not intended to be a specific topic of this review, the significant efforts made by federal and provincial governments to encourage PM technology development in Canada are worth noting. In addition to the items mentioned above, there is basic PM research in progress at several government and university laboratories. Much of this work is in conjunction with industrial partners. Also, the funding of Westaim Technologies Inc, a five-year multimillion-dollar research programme under-
0026-0657194157.00 © 1994, Elsevier Science Ltd. 22
FOCUS
ON
CANADA
t h a t t h e s e c o m p a n i e s will begin to a s s e m b l e m o r e vehicles in N o r t h A m e r i c a a n d use m o r e N o r t h A m e r i c a n m a d e p a r t s . The i m p a c t of NAFTA is t h e r e f o r e seen a s n e u t r a l for C a n a d i a n c a r - p a r t s manufact u r e r s in general, a n d hence p r e s u m a b l y for t h e f o r t u n e s of C a n a d i a n PM m a n u f a c turers. In conclusion, t h e r e have been signific a n t a d v a n c e s in b o t h the p o w d e r p r o d u c i n g a n d PM p r o d u c t s s e c t o r s of t h e C a n a d i a n i n d u s t r y since t h e l a s t review in 1992(1). Although the recent recession r e s u l t e d in s o m e c u t b a c k s a n d p l a n t closures, t h e i n d u s t r y b o u n c e d b a c k in 1993 a n d t h e o u t l o o k is o p t i m i s t i c for t h e b a l a n c e of this year. •
t a k e n by S h e r r i t t Inc, t h e p r o v i n c e of A l b e r t a a n d t h e federal government, h a s allowed a m a j o r e x p a n s i o n of S h e r r i t t ' s a p p l i e d r e s e a r c h p r o g r a m m e s , several of which a r e p o w d e r m e t a l l u r g y related. The p a s s a g e of t h e c o n t r o v e r s i a l N o r t h A m e r i c a n Free T r a d e A g r e e m e n t ( N A F r A ) was c o m p l e t e d only in late 1993, so it is t o o early to see any impact. However, t h e view of s o m e m a j o r p l a y e r s in t h e PM i n d u s t r y is t h a t significant c h a n g e s are unlikely, since the North American industry has been o p e r a t i n g as one big i n t e g r a t e d m a r k e t for m a n y years. In general, a u t o m o t i v e p a r t s s o u r c e d from C a n a d a a r e e x p e c t e d to r e m a i n s t a b l e at a b o u t 15% for t h e 'Big Three' car m a n u f a c t u r e r s , a c c o r d i n g to a University of Michigan a u t o m o t i v e i n d u s t r y a n a l y s t . C a n a d i a n p a r t s p r o d u c e r s will c o n t i n u e to s u p p l y i m p o r t c a r m a k e r s with a b o u t 10% of t h e i r parts, d e s p i t e t h e fact
---
AI'$RA
(1). M.A.Clegg,J.M. Capus, R.H. Angers, and J.A. Lund, P oWd e r Metallurgy in Canada," Int. J. Powder Metall., 1992, vol. 28, no. 3, p.249.
~!
FLUID AG is available to you -
Symplicity Flexibility Quality High performance
ABRA FLUID AG has outstanding achivments in SINTER-HIP and CIP pressing, for reserach and production purposes. We offer tailor made equipment in a quality which sets the standard worldwide. For more information please call us now. SINTER-HIP press lOPa - 200MPa, 2000°C
ASRA 23 MPR April lgg4
FLUIDAG
Industrie N611en, Birkenstrasse 109 CH 9443 Widnau/Switzerland Telephone 071 / 72 78 72, Fax 071 / 72 78 75