GENERAL NEWS
Global market for hydroformed parts
The global automotive hydroformed parts market worth is estimated , by analyst Coherent Market Insights , at US $ 12 billion in 2023 , exhibiting a compound annual growth rate ( CAGR ) of 7.4 % from 2023 to 2030 .
Hydroforming is a metal fabricating and forming process which allows the shaping of metals such as steel ; stainless steel ; copper ; aluminium and brass . This process is a specialised type of die moulding that utilises highly pressurised fluid to form metal . It is one of the most advanced forming techniques used in the automotive industry .
“ The increase in stringent government rules regarding emissions , the rise in demand for lightweight vehicles and [ growing ] vehicle production is expected to drive growth . However , a rise in the usage of composite materials and high initial capital investments can hamper the growth of the market . Increasing sales of electric and hybrid vehicles , the rise in complex automotive parts and higher numbers of better and durable automotive parts are an opportunity for growth of the automotive hydroformed parts market ,” explained the analyst .
According to Coherent ’ s report , North America is expected to account for the largest share of the global automotive hydroformed parts market , due to the presence of large numbers of automotive manufacturers in the region . The U . S . is the largest market for automotive hydroformed parts in North America , followed by Canada and Mexico .
“ The presence of major automobile manufacturers and their focus on lightweighting vehicles has driven the demand for hydroformed parts . The region has witnessed the adoption of hydroformed components in various vehicles including passenger cars , SUVs and light trucks ,” continued the analyst .
The automotive industry is also seeing a trend towards miniaturisation , as manufacturers look to create more compact and fuel-efficient vehicles . Hydroformed parts can be used to create complex and intricate shapes ( e . g . the Chevrolet Corvette Stingray uses a hydroformed aluminium chassis ).
“ One of the main trends in the automotive industry is the increasing demand for
Below : Hydroformed structural components for motorcycle frame ( image : Salzgitter ). lightweight vehicles . This is being driven by stricter emissions regulations , as well as the need to improve fuel economy . Hydroforming is an ideal technology for manufacturing lightweight parts , as it allows for complex shapes to be created with minimal material waste . This is especially important for electric vehicles , which need to be as lightweight as possible to maximize range . For instance , Ford F-150 uses a hydroformed structural cage , made of high-strength steel , in its F-150 pick-up trucks . This eliminates the need for welding , which reduces weight and improves strength ,” added the analyst .
Market opportunities include the increased integration of Advanced Driver Assistance Systems ( ADAS ); hydroformed parts can provide the necessary structural support and mounting solutions for these advanced systems . Hydroformed parts can also be used to manufacture components such as EV charging station housings , mounting brackets and cable management systems .
Market restraints , cited the analyst , included the lack of standardised design guidelines and manufacturing processes for hydroformed parts as well as higher levels of complexity on manufacturing times . n
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Nippon Steel Corporation to buy U . S . Steel
Nippon Steel Corporation ( NSC ), Japan ’ s largest steelmaker and one of the world ’ s leading steel manufacturers , and United States Steel Corporation ( U . S . Steel ) have entered into a definitive agreement pursuant to which NSC will acquire U . S . Steel in an allcash transaction at US $ 55.00 per share . This represents an equity value of approximately US $ 14.1 billion plus the assumption of debt , for a total enterprise value of US $ 14.9- billion . The US $ 55.00 per share purchase price represents a 40 % premium to U . S . Steel ’ s closing stock price on 15 December 2023 . The transaction has been unanimously approved by the Board of Directors of both NSC and U . S . Steel .
NSC ’ s acquisition of U . S . Steel will enhance its manufacturing and technology capabilities and enable it to expand the geographic areas in which it can operate . The transaction will further diversify NSC ’ s global footprint by significantly expanding its current production in the United States , adding to its primary geographies of Japan , ASEAN and India .
As a result of NSC ’ s acquisition of U . S . Steel , its expected total annual crude steel capacity will reach 86 million tonnes ( accelerating progress towards NSC ’ s strategic goal of 100 million tonnes of global crude steel capacity annually ). NSC President , Eiji Hashimoto , confirmed that it is committed to honouring all of U . S . Steel ’ s existing union contracts .
NSC Executive Vice President , Takahiro Mori , commented : “ We believe this transaction is in the best interests of our two companies , providing strong , immediate value for U . S . Steel shareholders while enhancing NSC ’ s long-term growth prospects .”
President and Chief Executive Officer of U . S . Steel , David B . Burritt , added : “ NSC has a proven track record of acquiring , operating and investing in steel mill facilities globally – and we are confident that , like our strategy , this combination is truly ‘ Best for All ’. This transaction realizes the tremendous value today in our company and is the result of our Board of Directors ’ comprehensive and thorough strategic alternatives process . For our U . S . Steel employees , who I continue to be thankful for , the transaction combines likeminded steel companies with an unwavering focus on safety , shared goals , values and strategies underpinned by rich histories .
“ For customers , U . S . Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers ’ evolving needs . This announcement also benefits the United States – ensuring a competitive , domestic steel industry , while strengthening our presence globally . Our shared decarbonisation focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals ,” he concluded .
The transaction is expected to close in the second or third quarter of calendar year 2024 , subject to approval by U . S . Steel ’ s shareholders , receipt of customary regulatory approvals and other customary closing conditions . n
6 | ismr . net | ISMR February 2024