As Magnox nuclear power stations come to the end of their design life, many companies in the supply chain have to adapt, Exec finds out how Magnesium Elektron is meeting these challenges
Written by Lucy Mowatt and produced by Rahim Ali
Established in 1934 as a primary producer of pure magnesium, Magnesium Elektron is a company that has seen numerous changes in its industry. In 1935 the company took on its current name and by the mid-1940s it was changing direction and starting to focus upon the development and production of magnesium alloys, used for lightweight structural applications. Graham Wardlow, Managing Director of Magnesium Elektron’s UK operations says: “The company has a strong background in magnesium technology which is used for the development and production of high performance alloys.”
Magnesium Elektron’s operations are overseen by its parent company, Luxfer Group. “Everything has to fall within the Magnesium Elektron divisional strategy, and that process has to fit with the overall strategy of the Luxfer Group,” Mr Wardlow explains. “Any major capital investment decisions always go through the group.”
Luxfer funded the development of a unit in the Czech Republic, which became operational in 2001. “We made a significant investment in the Czech plant in 2001 to better service the needs of our customer base in mainland Europe,” Graham Wardlow says. “The operation was a spin-off of recycling activities we were doing here in Manchester for the automotive industry. It needed a low cost base that was near to our customers.”
This Czech unit’s sales and marketing activities are overseen in the UK, but it has its own Czech management team and acts as a satellite plant. The Magnesium Elektron division of Luxfer also owns a total of six operations in the US. “Here in the UK, we have a diverse product range and service a global customer base,” the UK MD explains. “The products from here primarily go to North America, Europe and Asia.” He goes on to say that Magnesium Elektron’s Manchester facility currently exports 75 percent of output.
High performance alloys
The alloys produced by Magnesium Elektron are high performance, and following the decline in Magnox nuclear power generation, it is promoting the latest generation alloys to the aerospace, defence and speciality automotive markets. “We’ve been developing aerospace alloys since the early 50s and as time has gone on we’ve had to develop higher strength alloys with the ability to resist higher and higher temperatures,” Graham Wardlow states. These new products are also more corrosion resistant than the earlier alloys produced, meaning they have an extended range of applications.
ELEKTRON 21 is one of the newest materials developed and is aimed primarily at the aerospace and defence industries. The product is stable at relatively high temperatures and is easier to cast than its predecessor alloy. “So far ELEKTRON 21 has been cast by around 30 foundries around the world and is already undergoing extensive evaluation by eight aerospace companies. A number of aerospace companies have already specified the material. It is the only magnesium alloy to gain entry into the MMPDS-03 aerospace design handbook with full A&B basis design allowables. “This gives designers added confidence in what the minimum properties of the material will be in a given design situation,” Wardlow states.
The product also has numerous advantages over aluminium. Significantly, magnesium is two thirds of the weight of aluminium, which means ELEKTRON 21 helps to maximise fuel efficiency and reduce emissions.
“We are now seeing interest in ELEKTRON 21 from the commercial aircraft industry, which in the past has generally avoided magnesium because of corrosion issues in the 1960s & 70s,” Wardlow says.
Magnesium Elektron is not only involved in the development of cast magnesium alloys. The company has also developed a new wrought magnesium product, known as ELEKTRON 675, which again, as well as being light, is high strength at elevated temperatures. ELEKTRON 675 is still under development but samples are available for evaluation as a pre-extruded bar or section. “This is a very high strength material, certainly at high temperatures where it significantly outperforms aluminium. It has also shown to have good ballistic properties,” Graham Wardlow says. This has led to interest from the US Army, with whom Magnesium Elektron North America, a sister company in the Division, has signed a $1.6 million development contract. The objective of the programme is to develop lightweight armour plate material for army vehicles.
2007 saw the Magnesium Elektron Division expand its portfolio with the acquisition of Revere Graphics Worldwide, a world leader in the graphic arts industry. This company is involved in the development and manufacture of photo engraving plates that are used to make intricate dyes for the embossing & labelling industries; an area in which Magnesium Elektron already has presence. In purchasing the company, not only has Magnesium Elektron gained new customers, but it has also added zinc, copper and brass to its graphic arts product portfolio.
Focus on research
Ten people are employed at Magnesium Elektron’s Research Centre in Manchester with other R&D personnel being located in other Divisional companies in Europe and North America. “We tend to take on people at either graduate or PhD level,” Mr Wardlow says. The company has built up relationships with local colleges and universities who carry out research projects on the company’s behalf. It is this focus that ensures Magnesium Elektron is at the forefront of its industry.
In addition, these close relationships support people development programmes for Magnesium Elektron’s employees. The company has seen a number of team leaders gain manufacturing management diplomas and even MBAs. Wardlow himself is testimony to the company’s nurturing attitude: “I started out as a technician in the Research Centre, did part time studies and then went off full-time to Imperial College in London to study full time for my degree in Materials Engineering,” he says. “When I came back I was offered a commercial role and the chance to do a four year MBA.” Magnesium Elektron usually funds its employees’ educational studies and it is this approach which encourages personal development. “This type of approach is becoming more critical as it’s generally accepted in the high performance materials sector that there is a skills shortage within the UK.”
Making business faster
The operations in Manchester have also implemented systems focused upon “consolidating the business in a constructive way”. The company is looking at its operating efficiency in numerous areas through a series of ‘Velocity Projects’ guided by Oliver Wight Consultants. Graham Wardlow explains what this entails: “It is basically assessing a process and deciding what is value added and what is not and then trying to eliminate the latter.”
For 2008 the company is planning to run six Velocity Projects, which will reduce levels of working capital and ensure efficiency from the receipt of an order through to the collection of payment. “The process is also beneficial in bringing together sales and operational personnel to assess their activities and to gain an understanding of each others’ issues,” Graham adds.
This year the company will work to achieve the ISO 14001 environmental certificate, adding to its numerous quality management awards, while also reinforcing the ELEKTRON brand. It not only wants to raise awareness within its target markets, but also within the local and national communities. The UK MD explains the reasoning behind this. “We are a medium sized manufacturer of high performance materials, exporting the vast majority of our products. We develop leading edge technology allowing end users around the world to utilize the lightweight characteristics of magnesium. This is becoming increasingly beneficial as society strives to reduce its carbon emissions.”
Today’s R&D activities within Magnesium Elektron UK are as ground breaking as the development of the magnesium alloys used in the first commercial nuclear power stations back in the 1950s. In more recent times, all of the company’s research & development activities have been self-financed. It does seem somewhat ironic that in 2008, one of the company’s latest alloy development programmes will be supported by funds from across the Atlantic.
Click here to read the corporate brochure on Magnesium Elektron
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