Avalloy company overview

Introduction

Avalloy is a South African company involved in the production of high performance alloys that are used in a variety of applications.

Avalloy is a niche operator in the superalloys market, and it is positioned to take advantage of current and future demand.

Inside Avalloy’s Facility

History

Avalloy is incorporated in the Republic of South Africa with its head office situated at the plant at the Nuclear Energy Corporation of South Africa (“NECSA”) industrial site at Pelindaba in the North West province, between Johannesburg and Pretoria.

The plant and equipment was originally acquired by Anglovaal Mining Ltd (“Avmin”) in the year 2000 and a site and facilities for melting were acquired at Pelindaba. Avmin completed a feasibility study in 2001 and the detailed design was completed in 2002. The Avmin Board gave approval to the project in 2003, with construction starting in 2004.

Avmin, in a restructuring process, was acquired by African Rainbow Minerals Ltd (“ARM”) in 2004. In 2005, ARM resolved to sell the plant as it was identified as a non-core business. In 2006, a company that is owned by Basileus Capital acquired the assets from ARM and commissioned the VIM and VAR processes. Almost immediately, Avalloy commenced accreditation processes with Rolls-Royce, Howco and Europea Microfusioni Aerospaziali (EMA). Production commenced a short while later and Avalloy embarked on a marketing drive.

This accreditation process was enhanced by Rolls-Royce’s investment in Avalloy.

Avalloy today has a team with the necessary skills and expertise to substantially increase the production within the plant to meet expected increases in orders.

Process

Avalloy is a producer of superalloys, which operates two types of furnaces, a Vacuum Induction Melting (VIM) furnace and a Vacuum Arc Re-melting (VAR) furnace. The production process consists of two main processes.

1. Cast Alloys

This is a VIM process, whereby a recipe of metals is melted in a vacuum to ensure the removal of deleterious gases and metals, to produce cast stick in various sizes ranging from 50 to 175mm and 450mm ingots. The furnace is a 4-ton Leybold furnace. It is supported by three smaller VIM furnaces that are suitable for special melts, process research and development programmes.

Below is a diagrammatic representation of the VIM process. Once the current capacity is reached, management will look to add more in the form of another furnace.

Example of a Vacuum Induction Melting Process

2. Wrought Alloys

This is a process whereby an ingot is processed through a VAR. This process ensures the further refinement and homogenisation of the ingot. The VAR is a twin-station, one megawatt furnace, capable of producing 450mm diameter ingots up to 2.0 tonnes each. This VAR is supported by a 50kg VAR, which will be used for research and development. Below is a diagrammatic representation of the VAR process.

Example of a Vacuum Arc Re-melting Process

The current maximum installed capacity of the VIM plus VAR combination is approximately 4 000 tonnes of product per annum when operated on a three-shift basis. Avalloy has also recently purchased a top hat furnace and gained access to local forging facilities. A top hat furnace is used to homogenise the product. This is a type of heat treatment that affects the grain structure and improves the mechanical properties of the alloy, i.e. stress rupture, creep rupture and ductility.