The development of scientific expertise at AMAG - A success story
An interview with Prof. Peter Uggowitzer
AluReport: As a long-standing member of the Supervisory Board, and in particular as Chair of the Scientific Advisory Board, you will undoubtedly have followed AMAG’s development very closely. How would you assess the company’s current level of scientific expertise compared to the situation a decade and a half ago?
PU: In response to your first comment, I’d like to say that I’ve been connected to AMAG through professional and personal contacts since 2007, so for 17 years now, and have followed the development of the company’s R&D activities very closely over this period. If I had to give the company a grade for the progress it has made in developing its scientific expertise over the last decade and a half, it would have to be “outstanding”. As a university lecturer who has felt the waves of scientific research over many decades - firstly through 30 years at ETH Zurich and, through a further seven years after retirement as a professor at my alma mater, Montanuniversität Leoben - I’m delighted to see how the company has continued to develop and improve.In the world of science, change is the only true constant, a fact that AMAG has embraced with resolve and endurance. By investing in research and development and recruiting talented minds, the R&D team has expanded its capabilities and elevated its understanding of aluminium as a material to new heights. As a wise person once said: “The secret of progress lies in the perseverance of individuals and the ability of the collective to adapt.” AMAG has internalized this secret and has continuously adapted in order to keep pace with the challenges and opportunities of the ever-evolving scientific landscape in relation to aluminium.The journey may have been taxing now and then, with a number of obstacles to overcome along the way, but ultimately the pursuit of knowledge, understanding and excellence has always been at the forefront. This is the only way to develop new, high-margin products for the market in an efficient, targeted manner. This progress is evidence that, with dedication and determination, any organization - and anyone - can surpass the limits of what they originally hoped to achieve.
AluReport: That certainly sounds impressive. Could you perhaps provide a more specific illustration of this change?
PU: First, I’ll try to do this with figures, comparing the figures for 2008 and 2023, that is the period from AluReport #1 to just before this anniversary issue, AluReport #50. Let’s start by looking at the numbers for scientific output in the form of publications and patents. In 2008, the company had four publications in scientific journals and 18 conference papers; in 2023, these figures had increased to 14 and 49 respectively - a roughly threefold increase! The number of patents has also risen continuously, from three patents filed and three granted in 2008 to 20 granted and a further 13 filed in 2023.I’m sure you’ll agree that these are very impressive figures. It’s a great achievement and deserves respect.
AluReport: Behind this achievement, however, are the people who work intensively on R&D projects. What do their figures look like?
PU: I’d like to start by mentioning the AMAG employees who are working on doctoral theses and the doctoral students at various universities who are supported by AMAG. While there were only two such doctoral students in 2008, this number had risen to an impressive 19 by last year and is expected to rise further in 2024. Above all, however, I would like to mention the people who conduct applied research and development work at AMAG. At the moment, we have 170 technology specialists, of whom 66 have corresponding academic qualifications - compared to just 16 with an academic background 15 years ago.
AluReport: Research activities like these also require appropriate financial support, though. How has this increased?
PU: In this context, it’s primarily the figures related to internal R&D projects that are of interest. A decade and a half ago, the company financed 31 projects with an average annual budget of €30,000 and a term of a little over 1.5 years. At present, the company is financing 80 projects with an average annual budget of €140,000 each - and a project term of just over five years. The number of projects has therefore increased by a factor of 2.5, while the annual budget has risen by a factor of 4.5. This means that the budget for internal research at AMAG has increased more than ten-fold.In addition to internal support for research, it’s also important to mention the company’s financial commitment to research projects at university institutions. While this is where the majority of doctoral theses are written, it is always with supervision and support from AMAG. The Christian Doppler Labs are an important vehicle for this work. In recent years, for example, the partnership with the CD Lab for Advanced Aluminium Alloys at Montanuniversität Leoben - staffed by a post-doc researcher and seven doctoral candidates - has been very fruitful. However, a considerable number of dissertations are also embedded in research projects facilitated through collaborations with universities under the umbrella of the Austrian Research Promotion Agency (Österreichische Forschungsförderungsgesellschaft - FFG), through the Materials Center Leoben (MCL) and the COMET Competence Centers. The company’s total research budget for 2023 was roughly €22 million.This level of research expenditure has made AMAG the manufacturer of semi-finished aluminium products with the highest R&D intensity in the Western world for seven years in succession, stretching back to 2017. As a result, AMAG’s research expertise has increased to such an extent that the company is now more than able to hold its own with industry giants. We mustn’t lose sight of the fact that, while AMAG has been successful in this Champions League of aluminium, its competitors are typically 10 to 40 times larger. The only way AMAG can stand its ground in the face of this fierce competition is through efficient product development and by maintaining a consistently high proportion of specialty products of 50-60% in its portfolio. A simple trial-and-error approach would be wholly inadequate: AMAG would be left behind by its competitors, who have larger R&D budgets in absolute terms.
AluReport: Successful scientific endeavor requires a stimulating environment to promote exchange and cultivate ideas. What are your impressions in this regard?
PU: Whenever I’m in contact with AMAG employees, whether on site or digitally, it’s clear to see what a stimulating, inspiring climate the company has created. As the Chair of the Scientific Advisory Board, I have the enjoyable task of attending three project reviews and a doctoral candidate seminar in Ranshofen each year. In a packed seminar room, the individual R&D topics and dissertation assignments are presented and eagerly discussed. As a university professor who has held over 1,000 lectures in his time, I reckon I’m able to assess the level of attention in an auditorium fairly well. So, it’s always pleasing to see how AMAG’s R&D team and the doctoral candidates approach their tasks with an infectious blend of motivation and curiosity as well as the high scientific caliber of the discussions.Another stimulating initiative is the annual Innovation Prize and the Best Paper Award. The Scientific Advisory Board serves as the jury, selecting the prize-winning projects in the categories of “process innovation” and “product innovation” and the prize-winning publications in the categories of “scientific publication” and “technological publication”. We also present the prizes at a lavish awards ceremony, which provides further motivation.At this point, I’d like to point out that the jury has a very demanding role to perform. This year’s submissions, for example, comprise 16 innovation projects and 20 publications of invariably high quality. Choosing the best entries was not an easy task.
AluReport: Who determines which topics should be the focus of research?
PU: There are at least three levels in determining this. The first is basic research, which is predominantly conducted at our partner universities and is characterized by considerable latitude and scientific freedom, though the needs of AMAG also provide direction. In this regard, I’d like to mention a recent outcome from this cooperation on basic research: crossover alloys. These are a new class of alloys that, thanks to their advanced design, combine favorable characteristics of existing alloy families. These include the combination of 5xxx and 7xxx families, which has produced AMAG CrossAlloy®57, an alloy with an outstanding mix of characteristics. It’s ideal for use in high-strength structural components in automotive manufacturing as well as complex heat-treatable, high-strength components produced through superplastic forming in various industrial sectors, including high-strength panels in the transport sector.The second level is research topics with a clear link to a given product or process. The content of these research projects is usually dictated by company management in conjunction with the Scientific Advisory Board. These activities are typically based at the AMAG Center for Material Innovation (CMI). The CMI plays a decisive role in initiating and supervising project work, diploma theses and dissertations. Close cooperation with academic partners on the one hand, and customers on the other, is characteristic of the CMI. I’d like to mention the company’s expertise in simulations as a particularly successful example of topic-setting: it essentially did not exist 15 years ago but is now a topic with high international visibility. The team at the CMI engages with the issue of microstructure development throughout the process chain, especially with substructure, recrystallization, crystallographic texture and precipitation kinetics. The three-dimensional simulation of material structure during rolling and subsequent annealing treatments facilitates efficient, targeted and swift adjustments to ensure optimized process design and new product development.The third development relates to the R&D tasks needed, for example, to satisfy the demanding qualification criteria set out by some customers. These are usually internal R&D projects with a strong practical focus, concentrating on aspects such as process and product development, pilot systems, demonstration tests and data analyses. Such projects help us to better understand production parameters and product characteristics, and how to make targeted adjustments to them.These activities can be divided into rolling technology and casting technology. Again, I’d also like to highlight some successful simulation projects.In terms of rolling, we’ve mapped out a virtual process chain of hot rolling and cold rolling, which has enabled us to efficiently implement new rolling strategies and improve material characteristics by applying optimal process windows.In terms of casting, we’ve created a continuous casting simulation that has allowed us to identify - and thus avoid - hot-cracking tendencies in high-strength 7xxx alloys, which means higher process stability and fewer rejects.It’s with respect and admiration that I can report a lively transfer of knowledge between the different levels of the R&D system I’ve mentioned here, including input from employees in production roles. This transfer is bidirectional, flowing from university labs to professionals working in rolling mills and foundries - but also vice versa, from operational specialists to doctoral candidates and professors. I believe this is an exceptionally important piece of the overall R&D puzzle at AMAG and also reflects, in a very special way, the company’s positive working atmosphere.
AluReport: Do you have any concrete proposals for the company’s R&D activities over the medium to long term?
PU: AMAG has a diverse portfolio of alloys and is in a strong position with regard to its use of secondary aluminium. The task facing the company is to maintain this advantage over its competitors - and, ideally, to consolidate it, not least given the current geopolitical uncertainties. Achieving this, however, requires proper scientific and technological expertise.This brings me to decarbonization, an important topic for AMAG over the short to medium term. In this context, AMAG should not only strengthen the important role of recycled materials but also integrate climate-neutral technologies throughout the process chain. Replacing fossil fuels with electricity, including by introducing plasma torch technologies, is absolutely essential. However, there are still many unanswered questions in this regard, especially in relation to smelting scrap with organic deposits. The use of hydrogen as a climate-neutral alternative to natural gas will also play an important role in foundries in the future. Hydrogen combustion, however, leads to elevated water vapor levels within furnaces, and further research is required into the potential implications for alloy quality and the service life of furnace aggregates.So, as you can see, there are a whole host of vital questions to explore in the future. The Management Board will evaluate the necessary R&D-related actions with the support of the Scientific Advisory Board and direct our activities accordingly. At this point, an important piece of advice for our R&D activities over the medium to long term would be this: keep going with the same motivation, curiosity and intelligence! I’d like to underpin this advice by recounting a well-known parable. An Indian king by the name of Shiram loved playing games and was told by one of his advisors of a game called chess. The king was so fascinated with the game that he decided to have its inventor, a vizier called Sissa, brought to his court. When the vizier arrived, he impressed the king with his knowledge. By way of thanks, the king offered to grant the vizier one wish. Sissa humbly asked the king for a simple reward.He asked the king to place a specific number of grains of rice on each square of a chess board. There would be one grain on the first square, two on the second square, four on the third square and so on, with the number of grains doubling each square. The king agreed without realizing the consequences of his promise. Yet, as his servants began to count out the grains of rice and place them on the chess board, the king soon realized that the amount of rice would increase astronomically. While the king was rich, he wasn’t able to provide the sheer volume of rice he had promised.Not only does this story teach us the importance of understanding exponential growth, it offers two further lessons. First, it is highly advisable for a king (i.e. management) to listen attentively to his viziers (i.e. researchers and scientists) and to take their insights seriously. Second, this parable is a reminder that even small changes and advances can accumulate over time to have an enormous impact.
My answers to your questions show quite emphatically that AMAG’s Management Board and Supervisory Board are aware of the benefits that a positive relationship between a king and his viziers can bring. This can be seen not least in the development of the company’s turnover figures between 2008 and 2023. While it is not always immediately possible to precisely quantify the contribution of increased investment in R&D, and in particular in basic research, it would not be unreasonable to suggest that the rise in the company’s sales from €0.78 billion in 2008 to roughly €1.46 billion in 2023 - facilitated by improved products and efficiency gains - would have been impossible without the contribution of a significant increase in scientific expertise.
The company recently received a special honor that serves as further evidence of this. Europe’s largest aerospace corporation, AIRBUS, presented AMAG with three prizes for its commitment to continuously improving quality and supply chain processes in an AIRBUS project: the 2024 SQIP ACCREDITED AWARD for outstanding performance in relation to product quality and on-time delivery, the 2024 SPECIAL AWARD FOR INNOVATION and the 2024 SPECIAL AWARD FOR SUSTAINABILITY.I can still vividly remember how, in 2008, a lengthy catalog of technical materials issues was drawn up, targeting optimizations in strength characteristics combined with ambitious fracture toughness levels in 7050 plates - and which, with scientific support, we successfully worked our way through. Back then, I also contributed to the first use of thermodynamic simulations to improve homogenization treatments. I was able to supervise another optimization process very recently, this time for 7475 plates. By drawing on our now extensive scientific expertise, we were able to satisfy high expectations by optimizing the chemical composition and implementing strict production specifications. Ultimately, we successfully qualified the product for production at the new hot rolling mill.
The seed of scientific expertise sown by the AMAG Management Board has sprouted and grown, with the company now reaping the rewards in the form of three prestigious awards. A strategy like this can only succeed, however, with support over a number of years from the Supervisory Board and shareholders.
