DANIELI and ALCOA Sign Letter of Intent to License Alcoa’s Breakthrough Micromill TechnologyTM

Danieli Group, a global supplier of plants and equipment to the metals industry, and lightweight metals leader Alcoa announced this week that they have signed a letter of intent and will work toward an agreement to sell Micromill equipment and license the patented Micromill technology. As part of the collaboration, Alcoa will grant Danieli exclusive rights to sell Micromill equipment. In addition, the companies will work together to license the Micromill alloys and process technology to potential customers around the world, initially targeting Europe, South America, and Southeast Asia.

Alcoa’s Micromill technology produces an aluminum alloy that is 40 percent more formable and 30 percent stronger than today’s automotive aluminum, while meeting stringent automotive surface quality requirements. Compared with parts made from high strength steel, automotive parts made with Micromill material are twice as formable and at least 30 percent lighter.

Gianpietro Benedetti, Chairman of Danieli Group, said: “This agreement presents another milestone in the history of Danieli, being a front runner in the metallurgical plant industry with special focus on disruptive processes for various metals. Now we can offer the Alcoa Micromill, the fastest, most productive aluminum casting and rolling system in the world – a traditional rolling mill takes around 20 days to turn molten metal into coil; Micromill does it in just 20 minutes. Danieli is ready today to begin discussions with interested parties on the application of this revolutionary process technology.”
“This agreement puts Alcoa’s disruptive Micromill technology on the fast-track to commercialization,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “Micromill technology has the potential to change the face of the aluminum rolling industry – producing material with unrivalled characteristics, through a revolutionary manufacturing process. Our partnership with Danieli will move this proprietary technology from pilot plant to full-scale production, unlocking value for our shareholders and bringing high-tech metal to customers around the world.”

Specific terms of the letter of intent with Alcoa were not disclosed.
Danieli is dedicated to advancing present industrial standards with new plants and products, will therefore strive onwards to further enhance the present capabilities into further new and even wider products for future demands.

About the Alcoa Micromill
The Micromill is Alcoa’s proprietary technology that manufactures the most advanced aluminum sheet on the market. The Micromill process dramatically changes the microstructure of the metal, producing an aluminum alloy that has 40 percent greater formability and 30 percent greater strength than the incumbent automotive aluminum used today while meeting stringent automotive surface quality requirements. Additionally, automotive parts made with Micromill material will be twice as formable and at least 30 percent lighter than parts made from high strength steel. The Micromill alloy has formability characteristics comparable to mild steels.
The increased formability of Micromill aluminum makes it easier to shape into intricate forms, such as the inside panels of automobile doors and external fenders, which today are generally made of steel. The increased material strength improves dent resistance, enabling the production of automotive sheet that is thinner and even lighter than previous generations. It is also the fastest, most productive aluminum casting and rolling system in the world. A traditional rolling mill takes around 20 days to turn molten metal into coil; Micromill does it in just 20 minutes.