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OEM. Steve Mahan April 12, 2012. OEM Development Value “Drivers”. Rod & Bar Successful implementation of wide bar (Kalamazoo) Defense and Aerospace 6042 commercially viable “4 th generation” product meets critical customer criteria Development within OEM customer base moving forwards
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OEM Steve Mahan April 12, 2012
OEM DevelopmentValue “Drivers” • Rod & Bar • Successful implementation of wide bar (Kalamazoo) • Defense and Aerospace • 6042 commercially viable • “4th generation” product meets critical customer criteria • Development within OEM customer base moving forwards • Automotive, Electrical connector, Defense • Select large diameter rod compliments 3” and under driving improvements in repeatable machinability and grain structure • Automotive High Performance • LA KB 12 (grain refined / close tolerance) • Automotive • 1st stage processing enhancements • Defense and Automotive
OEM DevelopmentValue “Drivers” • Rod & Bar • Challenges • Forging Rod (Kalamazoo production) • Defense and Automotive • Small Diameter SAE (Under .500”) • Defense • OEM incursion by NanShan (late 2012) • SAPA and Independents reaction • HA rod customers looking for straighter product • Alcoa pricing strategy • Defense Market exposure
OEM DevelopmentValue “Drivers” • Specialty Tube • High strength (Chandler) • Larger diameter extruded development creates new market entry • Aerospace • 7X series • Defense, Sporting Goods • Lower strength (Chandler & SAE) • Push to re-enter electrical T & D • Re-start KB 25 machinable variant in heavy seamless tube and seamless shapes • M & E connectors • Fluid Power • Challenges • Foreign product incursion into U.S. • Off shore sourcing ( manufactured assemblies)