Zinc is not only a metal used for die casting: first of all it is a natural occurring element that is essential for life and it is considered a “Life Saving Commodity” by the United Nations. Zinc indeed plays a fundamental role for our planet: it is vital for the natural development of biological processes of every living thing, such as cell division, protein synthesis, immune system and growth. It is therefore an essential element for life.

Furthermore zinc is highly recyclable, when it reaches the end of its life cycle it can indeed be recycled without losing any physical property, thus representing a new source of raw material. Approximatively 45% of available zinc at the end of life cycle is recovered and recycled; in Europe and in the United States this percentage reaches even 50%.

It is exactly this characteristic that is a key element for sustainability and development of a circular economy.

Zinc contributes to circular economy

Circular economy is an economic model based on waste reduction and on the development of a circular life cycle, at the end of which a product is no more considered a waste for disposal but is instead a new source of raw material. Zinc fits perfectly in this model: zinc life cycle indeed starts from mining, goes through refining process in order to be used in the modern society and ends with recycling stage at the end of its useful life. During this cycle zinc contributes in different ways to the well-being of our planet:

• It is highly recyclable, thus reducing need for new raw material and exploitation of natural resources

• It protects steel used for infrastructures and transport from corrosion extending the life cycle of steel products

• When used for coating steel it contributes to the reduction in CO₂ emissions

The countless areas of use of zinc and its excellent physical properties therefore confirm the great importance that zinc life cycle has for our planet. Here in Bruschi we are proud to use a highly sustainable material, essential for life and for the protection of the riches of our Earth.

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In their study titled “Automotive Parts Zinc Die Casting Market – Size, Outlook, Trends and Forecasts (2018 – 2024)”, latest data are presented on the revenue numbers, product details, and annual  generation of revenue of some major firms. In addition to this, the report also covers competitive analysis in marketing and strategic management, monitoring of the external and internal factors which affect the market dynamics and Regional and Global Variety.

We will now see in details the core topics and conclusions of the report.

Zinc die casting in automotive

Zinc die casting is commonly used in automotive industry because of its high degree accuracy and reliability even with mass scale of production. Zinc characteristics of high manufacturability, precision, strength and wear resistance makes it an ideal material for many different uses, both for car interiors and exteriors.

Zinc die casting also offers many advantages in terms of cost saving and design freedom, thanks to its process that requires lower energy costs for smelting and longer tool life than aluminium, its close tolerances precision, its excellent finishes for smooth and textured surfaces. This is why, while being used in smaller quantities than aluminium, zinc is still fundamental for the construction of some components, such as door locks, inertia disks, retractor gears, pigeon gears, sensor components and others.

Growth of Zinc Die Casting Market in Automotive

According to Envision Inteligence report, zinc die casting in automotive parts market valued at $2.55 billion in 2018 and is estimated to reach a value of $2.92 billion in 2024 at CAGR (Compound Annual Growth Rate) of 2.75%.

This result is given by the intertwining of complex variables, that determine the growth of the market. Some factors, such as the increased costs of raw material, could lower the consumption of zinc in automotive market. However, the global growth of automotive market and zinc benefits in terms of functionality and aesthetic features of zinc, widely counterbalance the decrease in consumption in favor of zinc alloy use. 

All of these elements combine in a positive payoff, represented by a positive growth.

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About Envision Inteligence

Envision Inteligence is an agency working within the areas of market analysis, enterprise intelligence and consulting. They are experts in analysis and consulting for numerous enterprise domains to cater to the wants of each particular person and company shoppers, enhancement, company financing and resolution making based mostly on market analysis, helping in growing acceptable technique and offering consultancy based mostly on in-depth analysis.

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Supplier’s impact on VA/VE

An increasingly important part of procurement strategy is to involve suppliers and strengthen collaboration in product development, cost reduction and enhancement activities.

Joint Value Analysis/Value Engineering is one of the best ways to pursue long-term goals and to establish good business relationships with suppliers: trust and open-share of information and ideas are the basis of commercial collaborations.

Informing and involving suppliers in VA/VE activities can help to clarify the process definition and to encourage alternative proposals, resulting in more competitive price and/or better product.

The benefits of cost saving, process improvement, and transparent communication are shared between suppliers and customers. The former is able to determine a calculated cost reduction, to show potential quality improvement or scrap reduction with supporting data; the latter can benefit from open communication, cost reduction and/or better quality.

A supplier involved in VA/VE analysis can make proposals for:

Component design changes

These modifications are usually proposed by a dedicated engineering department and studied using simulation and analysis tools to support customers since the beginning of a project. These changes can help to reduce scrap production and component’s weight, to improve structural and mechanical qualities of the piece and to prevent future issues. All these activities lead to improved functionality of the components, therefore increasing their value.

These changes may regard:

• Materials or specifications
• Dimension or tolerances
• Components substitutions

Manufacturing or assembly process changes

With simulation software, it is possible to try out a number of process variations to obtain the best optimization possible without wasting any material. These tools make it easier to spot critical points and to apply correction where needed, especially in those situations in which the root cause may not be clear just by analyzing the casted component.

Modifying the process and the technologies involved before creating a prototype or casting a trial batch grants a great saving in terms of material used and less machine time wasted. In other words, during a VA/VE analysis the simulation of manufacturing process can increase the value of the product by reducing costs.

Some of these changes may regard:

• Tests reduction
• New process technology
• Part reliability

Logistics

A better communication between parts is crucial to achieve a functional supplier network. Sometimes the supplier can take care of shipments costs, adjust schedules to meet urgent needs, or even arrange shipments to make the most FLT (Full Load Transport) possible, thus cutting costs.

Some area of Logistics in which suppliers can help are:

• Reduced freight costs
• Packaging improvements
• Inventory management

Once the customer’s procurement receives proposals, a team composed of experts from different departments will review them to determine feasibility and eventually merge the new obtained result in their procurement strategy.

How a Die Caster can support VA/VE activities

Product engineers are always trying to reduce production and material costs, maintaining at the same time the quality of products. Value Analysis / Value Engineering is fundamental to reach that goal.

We can classify manufacturing costs into:

• Raw materials
• Labor
• Process

Let’s see each point in details.

Raw materials

As every procurement strategy specialist knows, raw materials prices depend on a wide range of factors, from widespread availability to fluctuation of the market.

Sometimes a change in material can be necessary to keep the production costs under control, or to cut unnecessary costs and increase the revenue for a product. For example, choosing to use zinc instead of aluminum, stainless steel or any other material could help to cut costs.

But even when using the same material, there may be differences in price and quality: for example, zinc alloys come in wide varieties and in different price sets. Choosing the right kind of alloy is important not only for the final product, but it could also help saving. To be sure to choose the best material both in terms of technical quality and cost-wise,  it is advisable to ask your supplier for advices by involving its team in your VA/VE analysis.

Labor

The manufacturing process necessarily includes labor costs: some of these may be avoided by speeding up the operations, for example through the use of automations, or by carefully designing components to reduce after-production operations and make the assembly easier.

Process

Process requirements can vary greatly depending on the industry. When considering die casting industry, the typical cycle time is composed of the following phases:

• Injection time;
• Die casting technical time;
• Mold shifting/lubrication time;
• Control time;

There are different ways of optimizing these processes, but in many cases automations and IT can help. Some programs can simulate the entire production cycle: based on data acquired from the analysis, it is possible to anticipate any issues and minimize risks, finding the most suitable solution for each project.

To conclude, we have seen how involving die casting suppliers in a jointed VA/VE analysis can help improving different phases of the production: from product design to process optimization, almost every area can benefit from an expert suggestion. Therefore, contacting suppliers while developing a new procurement strategy could increase the value of a product, either by improving component’s functionality or by reducing production costs.

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What is ZAMAK

The acronym ZAMAK identifies a group of zinc alloys that were originally invented by New Jersey Zinc Co. and they are composed of four main metals: zinc, aluminum, magnesium and copper. This combination of elements proved so fit for foundry work that it soon became synonymous for “zinc alloy for die casting” worldwide.

The advantages brought on by this wide diffusion are remarkable: using a shared terminology to identify the same chemical composition prevents misunderstandings between designers and discrepancies in shared projects, while making it easier to acquire the right material.

Among the mechanical characteristics of this group of alloys, the most noteworthy are a rigidity 1,3 times higher than aluminum and a breaking load almost 2/3 times the one of steel, in addition to enduring a yield strength close to its maximum load. Moreover, it is important to remember some of its less-known physical characteristics:

• Electromagnetic shielding power
• High rate of vibration damping
• Non-sparking material

Some of these traits make it possible to create products with unexpected qualities, as in our project for a heatsink, in which we studied the equivalence in thermal conductivity between zinc alloys and aluminum alloys. Click here to read more

Why use an alloy instead of pure metal?

To answer this question it is necessary to analyze alloy’s physical, mechanical and microstructural qualities: the mix of different elements affects some key properties in metal shaping, such as corrosion resistance, electrical conductibility, tenacity and breaking point. In addition, the use of alloys lowers the melting point of metal, saving energy destined to furnace heating and reducing melting pot’s erosion.

Alloys give a chance to choose the chemical composition and the microstructure more suitable for solidification process and for operations following casting. The choice relies also on the type of component to produce, considering the importance of functional properties requested, such as:

• Pressure resistance;
• Corrosion resistance;
• Surface finishing;
• Dimensional accuracy;
• Wear resistance;

Just as important are the production requirements: when dealing with metals for hot chamber die casting it is necessary to keep in mind the following list of factors.

• Fluidity
  Fluidity is a technological property of alloys that measures their ability to flow into the mold cavity filling even thin depths. It is defined as a technological property because it is determined not only by the material, but also by the process characteristics, in particular by the solidification process and by the thermal exchange with the mold.

• Hot cracking resistance
  This value indicates the alloy’s ability to endure stresses caused by contractions during cooling and solidification.

• Solidification Shrinkage
  This property affects the chances of shrinkage porosities and cracking of the die casted component.

For quick processes like hot chamber die casting, it is better to use alloys with high hot cracking resistance, whereas there aren’t particular requirements regarding fluidity, so that even alloys with low fluidity can be used.

ZAMAK for die casting

There are 3 main types of zinc alloys for die casting:

• Alloys with ~4% aluminum;
• Alloys with 8-27% aluminum;
• Patent alloys;

For each of these groups there are products with different percentages of secondary metals. The alloys most fitted for hot chamber die casting are ZAMAK 2,3,5 and 8: these alloys have an aluminum percentage ranging from 2,5% up to 8,8%.

Aluminum is used in zinc alloys for 3 main reasons: first of all, it reduces the melting point of the alloy, therefore lowering the thermal energy required by machines and granting energy saving. It also reduces alloy’s corrosion level towards steel: since both melting pot and die are made of steel, less corrosion means a longer tool life. Last of all, it improves the fluidity of the alloy, making it possible to obtain thinner depths and to ease molding. If an alloy loses aluminum, its fluidity lowers as well, and the risk of hot cracking and sticking increases.

Copper is the third component in order of quantity in ZAMAK, and it can vary from 0% to 3,5%. Unlike aluminum, which is always contained in the alloy, copper is optional: this happens because, even if the presence of copper can improve mechanical qualities, hardness and wear resistance, at the same time it can reduce elongation percentage at breaking point and alloy’s tenacity. In addition, it can also cause dimensional instability: dimensions of the cast will increase with the passing of time.

Magnesium behaves similarly to copper: it can become an advantage or a disadvantage. Depending on the amount it can be considered either as part of the alloy or as a contaminant: for example, it can be added to an alloy to contrast the effects of intergranular corrosion, but it can negatively affect fluidity in doses larger than 0,05%. Other effects linked to magnesium presence are: increased alloy hardness, higher risk of hot cracking and other problems related to surface finishing.

It should now be clear that even small percentages of foreign elements can have a huge impact on die casting, and not always positive ones. Therefore, it is fundamental to check and test raw material, to avoid to find out in the middle of the production that the formation of defects in die casting was caused by a small percentage of contaminants in the alloy.

In the following table are listed some materials, sorted by their influence in die casting:

How to choose the right kind of ZAMAK

The most used type of ZAMAK in die casting are ZP5 and ZP3. They are cheaper than ZP8, which is used only for those projects that require higher hardness or dimensional balance. ZP2 offers similar results in term of wear resistance and mechanical qualities, but it is more affected by dimensional expansion and shrinkage caused by aging.

We can summarize main traits of the most common alloys as shown in the table below:

To conclude, the choice of the alloy depends on the projects requirements. Since even the smallest variation in the amount of a certain component has a great impact on the final result, it is important to choose carefully and rely on trusted suppliers.

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Over 30% of world’s currently processed zinc is reprocessed from either production scraps or dismissed components. Recycling involves all processing phases, and all zinc based products are recyclable. Moreover, zinc coating doesn’t prevent recycling of other metals or alloys. In fact, thanks to the most recent technologies, like the electric arc furnace, even zinc powder produced during galvanized steel’s recycling can be collected and reused, thus further reducing waste of material.

ZINC ROLE IN CIRCULAR ECONOMY

Thanks to its metallurgic characteristics, once that zinc-made products come to their end of life they can be gathered and processed to be reconverted into new products. In 2010, almost 4 million tons of zinc were recovered and reintroduced in the productive cycle by using the modern recycling systems.

Zinc industry constantly invests in new technologies to increase the efficiency of scraps recovery, thanks to which is possible to lower the pollution caused by continued mining extraction and to safeguard natural reserves of zinc.

On a global scale, almost 45% of zinc is saved and recycled. In developed countries like Europe and North America, recycling percentage is even higher, reaching 95% when considering brass and roof coverings production.

Although it may go unnoticed, the use of zinc in everyday life can significantly help in reducing the environmental footprint through its many applications. This help to improve the circular economy.

BRUSCHI COMMITMENT TO A SUSTAINABLE PRODUCTION

In addition to the use of a highly recyclable raw material, Bruschi is committed to maintaining an efficient production and following international standards in matters of environmental safety. Because of this, the company applied for and achieved important certifications like ISO 14001 and SMETA 4-Pillars.

ISO 14001

ISO 14001 identifies a standard of environmental management system inspired by the PDCA model (Plan-Do-Check-Act).

For this certification, the company must define its goals and environmental policy, as a signal of a real commitment to constant improvement and control of the adequacy of its environmental management system.

Therefore, it is necessary to identify how company’s process could impact the environment and to define an objective evaluation system of said impact (e.g. gas emissions, water discharge, correct disposal of hazardous substances and waste), identify law imposed limits and define its own ecological goals. Next phase requires an active application of the established set of rules, through definition of resources, roles and responsibility in the environmental management system. Related files should always be kept up to date and periodically checked. Monitoring should be constant, especially in regard of operations at risk of high environmental impact.

Bruschi dedication to keep up-to-date and ecologically safe is shaped on this model, maintaining a constant control of production quality not only for our clients, but also for the environment.

SMETA-4 PILLARS

In February of 2017, Bruschi achieved the certification SMETA 4-Pillars, which involves the subscription to a shared ethical and behavioral statute, confirming its devotion not only towards the environment and a sustainable production system, but also towards labor’s right, safety and health.

SMETA 4-Pillars directions for environment are based on the following requirements:

• Observance of all applicable local and national environmental laws;
• Ability to demonstrate possession of relevant valid permits, including those for use and disposal of resources;
• Awareness to end client’s environmental standards/code requirements and monitor their performance against these.

It’s also required that the company subscribing for the SMETA 4-Pillars produces clear environmental policy and environmental impact assessment documentation; waste management policies and water, energy and resource conservations programs should be arranged, along with air-emission, boundary noise and effluent discharge limitations. Moreover, all required licenses and certificates should be maintained, in order to comply with local law and be aware of customer requirements for continuous improvement.

To know more about this certification, please feel free to consult our article Bruschi achieves SMETA 4-Pillars certification or official Sedex – SMETA organizer – website.

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Bruschi strongly believes in business ethics, and has always been committed to producing solutions that will not only apply to our customers, but that will lead us toward a better future for us all.

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Commodity prices volatility impacts on economy: some possible reasons

There are about five main reasons for commodity prices volatility. Below a little explanation on them.

State of commodity market
It is basically about supply and demand. If supplier drives a condition of oversupplying prices tend to be lower but, on the other hand, if demand is greater than supplier possibilities prices tend to be higher. Due to globalization, also if the demand rise just in a part of the world, for examples in emerging economies areas, this affects fluctuation of markets in the whole world.

Technical condition of the market
Investors, traders, and other market participants use the same price charts. This situation, related to the human behaviour and to globalization, improves prices volatility in case of a big issue or a lucky trend.

Speculation in commodity markets
The third reason is about the role of speculation in commodity markets. There are many different points of view about speculation in commodity markets: some people think it is a valuable economic function, others think that financial markets in terms of commodity should be disconnected from real economy. Whatever you can think about it, the role of speculation is undeniable for commodity prices volatility.

Interaction between physical and financial markets
The critical issue between physical and financial markets is related to the lack of data. In fact, price volatility in commodity markets is strictly linked to uncertainty. The quality and timeliness of data, related to territories where raw materials are, does not help market stability.

Global macroeconomic landscape
Prices of commodities are related to changes in the global macroeconomic landscape. Economical and political issues, or natural disasters, can affect price.

As said, obviously reasons for commodity prices volatility are led by many variables, but in this article we want to focus on the first reason listed: from the angle of metals and products demanded by middle class in emerging economies.

Focus on metal

Raw materials have a huge impact on production costs: this is why it is important to manage commodity prices volatility. To define these prices many variables are involved: above all, the rise of metal prices is led by middle class’s products demand in emerging economies and especially in Asia.

This is true for any kind of commodity, but mainly for metals.

Metal is directly liked to the economy situation and it is not considered a safe asset: in fact, a decline in metal prices leads to decline of the economy.
In these terms, to analyse the commodity market it could be considered an economic indicator about the situation: an overview about the present and a forecast for the demand.

Obviously, these commodity prices volatility impact on zinc die casters and manufacturers but, as I said before, metal price could be used as an important KPI to understand present and future of economy.

Consumer prices related to commodity prices volatility

From 2015 to 2017 (March), according to World Bank Group, metal commodity prices are increased by 17% while consumer prices, measured by OECD have grown only by 1,68%. This is the huge issue because the inflation rate forecast for 2018, around 2,17% according to OECD Inflation Forecast, will not fix the gap.

Obviously every company or industry has its particular situation, but the trend is undeniable.

In this terms profit margins, related to consumer prices, have been decreased due to an important increase in the cost base. In addition, became more volatile and unpredictable, because of commodity prices fluctuations. This trend pushed manufacturers to an aggressive focus on cost saving to avoid an unacceptable increase of customer prices. This is valid for the entire manufacturer industry, but especially for foundry in Europe and in North America. In particular for die casting industry, which is strictly related to a few raw materials such as zinc, copper, aluminium, magnesium, lead, pewter and tin-based alloys.

This is about the past. What about the future?

The rise of middle class consumer

Due to middle class consumer in emerging economies, commodity prices have been raised up and western manufacturers are paying the price for that.

According to the Brookings Institution the global middle class is expected to rise from 3 billions in 2015, to over 5 billions in 2030. This forecast is about global situation, but most of this increase will be in Asia. If, in addition to this, you consider the fluctuations between euro and dollar this opens an interesting scenario.

How to manage commodity prices volatility in metal terms

As said commodity prices volatility could be a huge issue to manage. Below you can find some strategies to follow in order to lead your business in case of an important increased of commodity prices.

– Being a part of a larger buying group allows more negotiating power
– Managing financial derivatives for commodity sector
– Recycling and reusing your scraps

These strategies could be useful to manage commodity prices volatility, but it is impossible to consider them as structural changes: above all, if the subject of discussion is about metals and manufacturing, in particular die casting. In fact, to go into depth on company issues about price it will be definitely necessary to work on production side and not only on financial side.

Work on production side: the co-design activity

In terms of die casting and manufacturing, an important service that a die caster can offer to its client is co-design: a fundamental selection of activities to increase the value of the products and cutting costs.

Co-design is the collaboration between the client and the die casting supplier in an important moment in product design step. In fact, during this phase, the exchange of information and experiences allows the supplier to highlight critical points and qualities requested by the client such as aesthetical, functional and structural ones.

Weight reduction, no further machining, die optimization are only some of advantages in a production cycle which involves design, casting, machining operations and assembly. Benefits that allow to save material and to avoid extra costs.

That is the main point.

Working on production side is the long-term way to manage commodity prices volatility.

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