Multifaceted Impact: Defense Industry, Metal Prices, and Environmental Trends Shaping SecoWarwick's Path
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Defense industry
Russia's aggression against Ukraine has translated into a significant increase in investment in armaments. Deliveries of equipment from western countries to Ukraine have necessitated the rebuilding of military capabilities, benefiting the arms industry. SecoWarwick has exposure to the arms industry through the supply of equipment primarily to the aerospace industry (jet engine components, landing gear, fuel installation, engine blades, turbine blades and brakes, fasteners and other critical components). Ultra-fast induction furnace (VIM) for aerospace and vacuum system for carburizing and hardening customized UniCase Master Custom.
Metal prices, environment, carbon footprint, savings
Higher prices for industrial metals (steel, copper, aluminium) have proven to be a strong driver for the metalworking and metal forming industries. Higher raw material prices and the concept of a circular economy in the European Union (circular economy) are increasing interest in recycling and metal recovery. In addition, demand is supported by an increasing awareness of environmental impacts (see ESG, including CO2). Below are some examples of applications for SecoWarwick solutions:
- NG-DRI steel transformation. Pressure, atmospheric and vacuum furnaces can be used for the 'zero-emission steelmaking' process. Currently, around 150mn tons of steel are produced in Europe, of which ~80mn tons are produced using blast furnace technology. Over the next 50 years, the rising costs of CO2 (on average, blast furnace technology produces more than 2t CO2 per ton of steel) and the cross-border tax (CBAM), which is being introduced from 2026, will encourage manufacturers to resort to zero-emission technologies like NG-DRI, or carbon capture). Potentially, in the case of SecoWarwick, this could be an opportunity to sell up to 300 units (several thousand units across Europe) over a five-year timeframe at a few million euros apiece (several billion PLN in sales in a few years).
Use of SecoWarwick furnace with NG-DRI technology in collaboration with GreenIron
- Increasing interest in recycled aluminum - electrolysis requires approx. 17,000 KWh per ton of metal to produce mined aluminum, while the energy intensity of recycled aluminum is ~300-350 KWh. The growing awareness of automotive corporations will drive the growth of the recycling market, especially when corporations start adding up Scope3 emissions. Aluminum and steel are likely to be the first metals for which corporations will be willing to pay significant premiums if the metal comes from recycling (increase in demand for scrap melting furnaces)
- Increasing the efficiency of production lines. Investment in savings on the energy raw material consumption side. For example, the Vortex furnace reduces component processing time by up to 30% compared to other technologies. The Jet Caster furnace halves casting crystallization time and increases production efficiency by 82% (40% reduction in energy intensity). The ZeroFlow furnace gives an 8x reduction in ammonia consumption in the nitrocarburization process.
- no gas emissions when processing metals. The VECTOR furnace line uses no fossil fuels in the process and emits no greenhouse gases and no harmful substances.
- production of amorphous metals, processing of titanium and rare earth metals in general, production of metal powders for 3D printing.
