Asia Manufacturing News December 2011 - January 2012 by NZ Manufacturer

ASIA MANUFACTURING NEWS â&#x20AC;˘ DECEMBER 2011 / JANUARY 2012

SUCCESS THROUGH INNOVATION

December 2011 January 2012

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

CONTENTS December 2011 January 2012

Maintaining the advantage

anufacturing environments are rapidly evolving due to global competition and changing customer requirements. This is from the Lead Article (Page 5) that in a very comprehensive way describes the need to maintain competitiveness and look after critical business decisions in Asia, South Pacific regions. So how is your company managing this? Vehicle manufacturers seem to be pretty much on to it and I am always being informed of key refinements to manufacturing environments, especially from South Korea. So have your say as well and email words@ xtra.co.nz and we will publish your observations and share your manufacturing methods with our readers around the world. We also look at Product Data Management (PDM) and the need to look at such an integrated system (Page 19). There is no point wasting valuable time looking for or recreating designs that already exist, which can put your company at a competitive disadvantage. Using existing designs can save time and money and bring new products to market faster. A fascinating read! Energy conservation and environmental protection is now the catch phrase for sustainable global growth. Do you agree with that observation? In China the State Council is looking at ways for sustainable growth by developing an innovative model. So Speeding up Green Technology in China (Page 30) describes a campaign underway to do better business environmentally. This is a sound initiative especially with economic indicators around the globe showing a slowdown of activity. Seizing the moment is definitely the way to go. Our Asia Pacific economies face huge challenges. And that’s okay – through issues arising new opportunities are created. Let us all grab hold of 2012 and make it a successful business year.

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EVOLVING AUTOMATION SYSTEMS DRIVE ADVANCES IN MANUFACTURING

anufacturing environments are rapidly evolving due to global competition and changing customer requirements.

NEWS❒❒❒❒❒❒ 10 LAGARDE EMPHASISES ASIA ROLE IN GLOBAL RECOVERY

10 LANZATECH JOINS GROUP ON COAL TO FUEL PROJECT

13 BIOPLASTICS TO MORE THAN TRIPLE

13 WORLD DEMAND FOR INDUSTRIAL VALVES TO APPROACH $94B IN 2015

14 AUTODESK INTRODUCES CLOUDBASED LIFECYCLE MANAGEMENT

15 SOLID-CARBIDE ROUTER FOR CFRP

15 DELCAM GIVEN CADCAM AWARD FOR CHINA

16 TNA OPENS PLANT IN QINGDAO

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

SHORT TERM PROFIT – BEYOND LOCAL MARKET

he laid-back and relaxing ambiance at the Harbour Plaza Metropolis Hotel gave way to the hustle and bustle brought by a unique event “Beyond Entrepreneurship Forum: How to develop an innovationdriven venture” organised by The Hong Kong Polytechnic University.

NEWS❒❒❒❒❒❒

19 PRODUCT DATA

MANAGEMENT – 5 KEYS TO SUCCESS

ow often do you find yourself spending valuable time searching for a model or a file? Have you ever had to recreate a model because you could not find the original? Have you ever spent time creating a design only to discover later that one of your colleagues had previously modeled a similar design that would have met your needs?

NEWS❒❒❒❒❒❒

16 HYPERTHERM REBRANDS

29 HYUNDAI ACCELERATES

17 A*STAR SIMTECH GAME

30 SPEEDING UP GREEN

TURBONEST CAM NESTING SOFTWARE CHANGING

18 IMAGE SENSORS FOR SMARTPHONES

24 MICROELECTRONICS:

HARNESSING HOTSPOTS

25 MHI ESTABLISHES MANUFACTURER IN INDIA

26 GLOBAL CHELATING AGENTS MARKET IN TRANSITION

27 SPURRING THE GROWTH OF ECOFRIENDLY INDUSTRIES

28 LARGE ORDER TO ROCKWELL AUTOMATION

DEVELOPMENT WITH RAPIDFORM 3D TECHNOLOGY IN CHINA

Asia Manufacturing News is published bi-monthly and offers the reader business information and news. Asia Manufacturing News welcomes editorial contributions and encourages readers to share their reflections and views with us. Asia Manufacturing News uses information provided in good faith. We give no guarantee of accuracy of the information. No liability is accepted for the result of any actions taken or not taken on the basis of this information. Those acting on the information and recommendations do so entirely at their own risk. Managing Editor: Doug Green phone: 0061 06 870 9029 Advertising Manager: Max Farndale phone: 0061 06 870 4506 Web Master: Dan Browne. SUBSCRIPTION: NZ $80 per year for the printed version. NZ $40 per year digital. Subscription payment or general contact can be made to: Media Hawkes Bay Ltd, PO Box 1109, Hastings, New Zealand. mediahb@xtra.co.nz or words@xtra.co.nz Please email or fax us your credit card details. Fax: 06 878 8150 Or by posting a cheque to the above address. Digital Subscription payment available at: words@xtra.co.nz Single copies NZ $8.00 www.asiamanufacturingnews.com

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

trends

PolyU-made space tool set for inter-planetary mission

This historical mission, also known as the “Phobos-Grunt” (which means soil of Phobos, the largest moon of Mars), marks the first strategic interplanetary collaboration between China and Russia. This is also the first interplanetary mission of Russia after the dissolution of the former Soviet Union. PolyU has been entrusted with the responsibility of designing a mission-critical space tool known as the “Soil Preparation System” (SOPSYS) for the Sino-Russian Mars Mission. Of interest to the scientific community will be the mission’s first bold attempt in the history of mankind to land on the Martian moon Phobos and collect soil sample for in-situ analysis. If the mission goes as planned, the spacecraft carrying both PolyUmade space tool and Chinese satellite Yinghuo-1 will go near the Red Planet in November 2012. The explorer will then release Yinghuo-1 into orbit around Mars; and seek to release the Lander carrying PolyU-made SOPSYS onto the surface of the potatoshaped Martian moon Phobos. SOPSYS weighs merely 400 grams and measures slightly larger than a cigarette pack. It is capable of grinding and sifting Phobos rock to the size of less than 1mm in diameter and then from it into a plug of measured size for in situ analysis. This procedure is considered a crucial step in understanding the evolution of the universe and the formation of the planet Mars. www.asiamanufacturingnews.com

PolyU researchers have been working closely with IKI (Space Research Institute of the Russian Academy of Science) and the Russian aerospace company NPO Lavochkin in testing the functionality of SOPSYS under extreme environment. Dr Alexander V Zakharov, Chief Scientist of the Space Research Institute of the Russian Academy of Science and Project Scientist of the Phobos-Soil project, also visited PolyU and discussed the stringent requirements for testing the qualifying model of this tool with PolyU engineering scientists working on the project. The aerospace authorities of China and Russia agreed to jointly probe Mars and its innermost moon Phobos, following the signing of space collaboration agreement as witnessed by Chinese President Hu Jintao and former Russian President Vladimir Putin on 26 March 2007 during a state visit of

Chairman Hu to Russia. Apart from in-situ analysis, the probe will also be making a Mars-Earth return journey to study the soil sample and the effect of cosmic radiation on the Life capsule containing bacteria onboard the spacecraft. This collaboration with Russian Space Agency is made possible with the unremitting efforts of PolyU Fellow Dr Ng Tze-chuen, who is a dentist by profession; and Professor Yung Kai-leung, Associate Head of the University’s Department of Industrial and Systems Engineering. They have put much effort in negotiating with space authorities and showed their experience of developing space tools and working with the Russian Space Agency and European Space Agency. The University has a wealth of experience in developing space tools and for space agencies over the years. SOPSYS is also designed by Professor Yung and locally manufactured at the University’ Industrial Centre. The development of space tool by

Russian spacecraft carrying the state-of-the-art space tool made by The Hong Kong Polytechnic University (PolyU) embarked on a one-year space journey to the Red Planet at the Baikonur Cosmodrome in Kazakhstan in November.

trends

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

Evolving automation systems drive advances in manufacturing

anufacturing environments are rapidly evolving due to global competition and changing customer requirements.

As a result, manufacturing systems are becoming more complex and interconnected but the classical programming and data management techniques are increasingly incapable of effectively managing the greater levels of integration. To maintain competitiveness, intelligent software control programmes are required to operate at faster speeds; information integration becomes imperative in achieving timely and accurate data retrieval to support critical business decisions.

the intelligence of machines is such that traits like reasoning, knowledge, planning, learning, communication, and perception provide machines with the ability to move and manipulate objects to improve commercial outcomes. While intelligent software still has a long way to go to achieve this, increasing embedded computing in distributed intelligent devices provides improved system operation. Combining sophisticated software and distributed smart devices

produce ‘intelligent software’. These agents often include features such as embedded diagnostics, communications, calibration and control activities that are typically performed in a programmable logic controller (PLC) or other distributed control system. By having the ability to respond to changes in conditions such as unexpected component failure, environment changes, workload changes or system operating objectives, these agents provide superior and reliable performance. Intelligent software devices that can evolve to overcome challenges and self-heal to prevent

Paul McRoberts, Industry Solutions Manager-Initiatives, South Pacific Region, Rockwell Automation discusses the importance of intelligent software for increasing productivity in manufacturing plants. The notion of intelligent software has existed for a long time, but a paradigm shift is occurring in how critical and complex automation systems are designed, configured, and controlled. To achieve ‘artificial intelligence or self healing’ would be the ultimate goal; a system where PolyU researchers can be dated back to 1995 with the launch of the Space Holiner Forceps for Russian astronauts working on the MIR Space Station. The Holinser Forceps, which function like a pair of dental forceps, were designed and developed by PolyU scientists and engineers from a concept initiated by Dr Ng. The idea was further developed into the Space Forceps System which consists of 70 inter-

connectable components for used by astronauts in space. In 1995, four sets of Holinser Forceps were ordered by the Russian Space Agency for use by astronauts in precision soldering at the MIR Space Station. In 2003, PolyU scientists also designed and developed the Mars Rock Corer which was carried onboard the Beagle 2 Lander in a spacecraft of the European Space

Agency’s Mars Express Mission. Although the Beagle 2 Lander reportedly crashed on the surface of Mars, PolyU researchers never give up their dream for space exploration. Professor Yung is also involved in designing the “Camera Pointing System” for Phase 2 of China’s lunar exploration programme, which will be carried on board the Chang’e-3 spacecraft scheduled to be launched towards the end of 2012.u www.asiamanufacturingnews.com

ASIA MANUFACTURING NEWS â&#x20AC;˘ DECEMBER 2011 / JANUARY 2012

trends

downtime are being actively developed. This technology has proven to be widely adaptable to a range of complex systems and industrial applications.

Intelligent and integrated manufacturing The success of a companyâ&#x20AC;&#x2122;s manufacturing capabilities is often measured by their ability to respond to market changes. Traditionally, the production management system used by manufacturers was based on Enterprise Resource Planning (ERP) applications. In this model, a set of separate software applications are used for different parts of planning, scheduling, and execution processes. Significant limitations are entailed with this approach resulting in disconnected planning and execution processes. The move towards an intelligent and integrated environment will bring the flexibility and efficiency needed by manufacturing systems. The integration of a manufacturing system allows functional areas such as design, analysis, planning, purchasing, cost accounting, inventory control and distribution to be linked, providing valuable information about the status of a particular plant. EtherNet/IP remains the industrial network of choice for many manufacturing plants, providing an integrated system with the agility and flexibility that is essential for competitive manufacturing in todayâ&#x20AC;&#x2122;s global market.

Autonomous Control Systems Intelligent software has the potential to create an automated control system that can be applied to a diverse range of industries. There are generally several components to be incorporated into an autonomous control system including variable frequency drives, intelligent www.asiamanufacturingnews.com

software and networked motor condition monitoring devices.

system failures without external intervention.

Typically, these systems integrate drives, intelligent relays, motor control centres, sensors and other monitoring devices on a common data-driven Ethernet/IP communications network.

If a variable on a machine is changed, autonomous control allows the machine to automatically re-configure so that there is no misalignment. The higher the degree of automation, the more critical is the integrity of the data used to control the machines. Once achieved, the plant will essentially run itself.

This provides precise motor control intelligence as part of a strategic maintenance program. Technology has allowed for significant advances in generating high level, advanced control software. By increasing productivity on the plant level, the software does not affect the day to day running of the machines eliminating the need for complicated maintenance requirements. These intelligent software applications are aiming to be generic, self-healing type systems for companies that want to take their technology to the next level. Autonomous control systems must perform well despite significant uncertainties in the plant and the environment for extended periods of time. In addition, they must be able to compensate for

The concept of intelligent software being combined with functional system elements to provide superior system operation enables industry to achieve reliable performance, irrespective of changing plant conditions.

Intelligent software and overall equipment effectiveness Recent advances in integrated manufacturing intelligence systems have expanded the performance capabilities of overall equipment effectiveness measurements. OEE is established by determining overall capacity and planned production time compared with loss due to Continues page 8

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

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ASIA MANUFACTURING NEWS â&#x20AC;˘ DECEMBER 2011 / JANUARY 2012

trends

From page 6

downtime, performance or quality limitations. Business enterprise systems are required to collect, organise and report data detailing information about potential inefficiencies in a manufacturing plant. Addressing these deficiencies with integrated manufacturing intelligence systems has expanded the performance capabilities of OEE measurement. Intelligent manufacturing software allows information to be digitally captured in real-time simplifying interpretation. The challenge for software developers is to overcome the limitations associated with manufacturing plants having to sort through millions of data points to determine how best to interpret the findings. Intelligent software systems need to be adaptable to analyse individual parameters for varying applications. Systems require the functionality to bring data from multiple disparate sources to integrate and present the data in meaningful ways. To address this increased system complexity, many new central control systems require the configuration of distributed intelligent devices and the integration of their control capabilities into an overall coordinated distributed control system.

Integrated safety and motion control Manufacturing plants are increasingly realising the importance of integrating safety controls to help minimise worker injuries and increase overall cost savings. The safe control of motion has many benefits including efficient maintenance of an application without disrupting power supply to machinery, safe speed control www.asiamanufacturingnews.com

and safe control of potentially hazardous movement. Efficient translation of data to produce an action, or exact motion to help maximise safety, continues to be the backbone of intelligent software advancement. Control of intelligent agents that can interact with actuators and sensors provides the ability to address motion control in large, complex manufacturing systems. Relying on a single, central controller has significant limitations because damage to that controller or to the communication infrastructure used can result in a loss of controllability. Safety hazards are inevitable when motion control is compromised. A distributed, survivable and adaptable architecture can be achieved by distributing the intelligence of the system among multiple controllers. Embedding standalone or multiple intelligent agents inside the controllers, results in an advanced level of motion control. Distributed Control Agents (DCA) interact with intelligent agents in a

manufacturing system to achieve a functional outcome. Intelligent agents use Job Description Language (JDL) parameters and Foundation for Intelligent Physical Agent (FIPA) classifications to encode messages. The use of agents in automation allows for the design of more flexible and smarter control architectures. By leveraging an agent communication layer (ACL) on top of communication networks such as EtherNet/IP, a manufacturing system is able to achieve coordination of dissimilar systems. The message parameters that are required for effective agent communication will vary according to the situation. Intelligent agents possess the capability to detect equipment failures and to isolate failures from propagating allowing for increased safety and productivity and reduced downtime in a manufacturing plant.

Energy Efficient Solutions Energy management is a complex but important factor in optimising production processes

trends

ASIA MANUFACTURING NEWS â&#x20AC;˘ DECEMBER 2011 / JANUARY 2012

with these changes. By coordinating and integrating production activities within a manufacturing enterprise, intelligent agents provide increased productivity and profitability. Intelligent agents are increasingly able to incorporate logic and collaborative reasoning parameters to detect faulty components, process problems and inefficiencies in a manufacturing plant.

in manufacturing plants. Globally, manufacturers are putting systems in place to reduce water, air, gas, electricity and steam consumptionâ&#x20AC;&#x201D;resources widely required by processing plants. Recent advances in intelligent motor control, incorporating variable speed drives, intelligent software and networked motor condition monitoring devices allows for a measureable impact on energy use and operational efficiency. Intelligent software can offer significant energy savings by improving process diagnosis, stability and consistency in operations and by improving the control response to operating changes.

while reducing greenhouse emissions.

Intelligent software leads manufacturing into the future Manufacturing environments are rapidly changing as a result of increased global competition and changing customer needs. Advances in intelligent software technology continue to provide manufacturing enterprises with the capabilities and flexibility to deal

By eliminating the need for centralised control, autonomous intelligent agents display the capabilities for predictive reconfiguration of production processes, thereby reducing downtime and increasing productivity. With the manufacturing environment constantly evolvingâ&#x20AC;&#x201D;the ultimate goal is to develop adaptive, selfhealing systems that can react to their environment and modify their behaviour accordingly to maximise production efficiencies. u

Manufacturers can use energy consumption data to identify variables in energy costs across all equipment on the plant floor collectively and also with individual machines. Energy management can be applied to machine design practices by improving efficiency of equipment components such as motors and drives or by attaching monitoring devices to assist with data collection. By collecting accurate energy consumption data, manufacturers can modify the OEE calculation to include energy efficiency, allowing them to achieve higher profitability www.asiamanufacturingnews.com

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

business news

Lagarde emphasises Asia role in global recovery

hristine Lagarde, Managing Director of the International Monetary Fund (IMF) has emphasised the important role of Asia, and especially China, in achieving global economic recovery.

“The rise of Asia in the global economy is really the defining economic success story of modern times. And so today, it is no surprise that Asia is propelling the global recovery,” she said in a speech at the International Finance Forum in Beijing. She noted in particular the achievements of China in growing by an average 10 percent a year and pulling half a billion people out of poverty over the past three decades. “No wonder that when I visit this region, I feel that I am filled with hope and optimism about the future.” Ms. Lagarde said that “in our

increasingly interconnected world, no country or region can go it alone. We are bound together by our economic success--or failure.” She added that the advanced countries had a special responsibility to enact policies to restore confidence and lift growth. She said that she was encouraged by the framework agreed by Euro Area Leaders on October 26 and the G20 endorsement of it at Cannes. Ms. Lagarde called on the advanced economies to strike the appropriate balance in fiscal and monetary policies to promote stability and growth, push ahead

with structural policies to boost competitiveness and employment, and strengthen financial regulation to make the financial sector safer and to put it back in the service of the real economy. u

LanzaTech joins group on coal to fuel project

anzaTech and Yankuang Group, one of China’s largest coal producers, are to produce fuels and chemicals using LanzaTech’s biological fermentation process and synthesis gas from Yankuang’s coal gasification unit.

The companies signed a Memorandum of Understanding (MoU) in front of US Ambassador Gary Locke as part of a US Trade Mission to Shandong Province, which included Dr James Zhang, LanzaTech’s VP of Business Development. LanzaTech has already successfully proven its proprietary gas fermentation platform can be used to convert biomass syngas at laboratory scale and envisages a demonstration facility will be operational by the second half of 2012. Dr Zhang says the agreement with Yankuang highlights China’s commitment to the development of clean energy solutions. “Deployment of this technology www.asiamanufacturingnews.com

throughout China presents an exciting opportunity for promoting sustainable industry and we see China’s lead in this as reflective of its continued commitment to green growth,” he says. Mr Zhang Minglin, Group VicePresident of Yankuang Group, said after the MoU signing: “Our goal is to adjust coal chemical production structure and increase the efficiency of our process, by reducing our carbon footprint while maintaining growth. There is increased interest in China in coal-chemical development that is in line with China’s energy and environmental plan.” As the world’s largest producer and consumer of coal, China is an ideal location for LanzaTech’s

coal-fuels and chemicals technology. LanzaTech has developed a novel gas-liquid fermentation process that produces fuels and chemicals from gas resources. Backed by global investment, LanzaTech employs a strong technical team based in the USA, China and New Zealand and has a rapidly growing patent portfolio. LanzaTech has international agreements in the steel, coal, refining and chemicals sectors and its technology is being scaled to commercial production. Yankuang Group, established in 1976, is headquartered at Jining, Shandong. It is one of the coal mining, state-owned enterprises in People’s Republic of China. It is not only engaged in coal production and sales, coal chemicals, civil engineering, machinery manufacturing, transportation and electricity, but also garment business and trade. u

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

developments

Short term profit – beyond local market

he laid-back and relaxing ambiance at the Harbour Plaza Metropolis Hotel gave way to the hustle and bustle brought by a unique event “Beyond Entrepreneurship Forum: How to develop an innovation-driven venture” organised by The Hong Kong Polytechnic University.

A huge success, the event drew around 300 aspiring young entrepreneurs and founders of start-up companies. Among them were supportive alumni and students from the University as well as a group of over 40 investors and entrepreneurs from Silicon Valley on their global tours for cross-border business opportunities who are collectively known as “Geeks on a Plane”. The half-day forum brought together elite entrepreneurs and business owners to share their tips on how to start and sustain a business that is innovation-driven, and connect young entrepreneurs and entrepreneurs-to-be with the resources, mentors, and business connections. The Forum began with keynote speeches by two founders of successful technology start-ups: Silicon Valley technopreneur Mr Jonathan Siegel and PolyU alumnus Dr Johnny Ng. Jonathan from the Geeks on a Plane is a venture partner at Accel Partners and the founder of multiple successful companies, including ELC Technologies, one of the most experienced mobile, cloud and web application developers worldwide. He is now advisor to a number of cloud technology companies and also an angel investor. Having gone through the bumpy ride of starting his own businesses, he is passionate about supporting young entrepreneurs and sharing his experience. At the Forum, instead of sharing secrets to entrepreneurial success which everybody was expecting, he surprised the audience with “Jonathan’s Failure”. To him, failure was a valuable experience; it was something he

PolyU Executive Vice President Mr Nicholas W. Yang delivering his welcoming address.

has never anticipated with the seeds for successful business at his disposal, including a team of seasoned professionals, technical expertise and funding. According to Jonathan, the key to profitable business is “to know your numbers well”, in other words, to base decision on good accounting with accurate projection on both prices and costs. It will be a no-go if the costs of acquiring a customer outweigh the customer lifetime value. Jonathan’s next key factor for success is with a failure plan on hand, that is, to be prepared to close down when the business keeps turning a loss. In order to do that, he suggested the aspiring entrepreneurs to set targets and milestones which allow them to review actual performance against their targets in a sensible and systematic way. “If you’re not making enough money to keep you going, it’s time to cut lost and say goodbye,” Jonathan emphasised that in the early days, he had once put his

blood, sweat and tears in creating a new product but he ended up realising there were better and cheaper competitions available in the market. Therefore, he made a decisive action by dropping the product immediately. He was glad as he was able to launch a new product six weeks later, which became so successful that it was eventually being acquired. Jonathan also pointed out a risk factor that has rarely been considered: Family. The risk involved in having one’s own business may be too much for worrying parents. Parents are usually very protective of their children and they just hope that their children to have a steady income. Jonathan suggested, “To strike out on your own, you have to be open-minded and think out of the box.” According to Jonathan, the recipe for success is to be passionate, hardworking, and “skin in the game”. “You really have to give all of yourself to that and enjoy it along the way,” he said.

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

developments next to share his story of a The “blood, sweat and tears” was Dr.

When they were about to give up, the tide turned. They won a tender from the HKSAR Government’s Education Bureau to develop educational software for school children. Their product stood out from the intense competitions and won over trust from the client. Since then, Johnny won many accolades including “Ten Outstanding Young Digi Person” in 2000 and “Innovative Entrepreneur of Year 2003”. And most importantly, Johnny has proven his belief right: “with knowledge and expertise, everything is possible”.

Johnny Ng, founder of Goldford Venture, a Greater China concept venture firm focused on early stage opportunities in TMT (Technology, Media, Telecom), education, and healthcare industries. Graduating in 1996 with First Honour in BEng of Manufacturing Engineering, he was selected as a “Teaching Company Associate” under “Teaching Company Scheme”. This allowed him to pursue his doctorate degree while gaining practical experience in a manufacturing company. With good training and excellent learning and research facility offered by PolyU, Johnny developed his full potential which served him well later in his own business. Together with two other talented young men, he started a new company with merely $15,000 and with an idea “to work on something they are interested and put our knowledge into good use”, a simple dream that has never been easy. As many self-made businessmen did, Johnny and his partners built everything from scratch. With tiny capital and zero income, his new venture funding ran out quickly after a couple of months.

Johnny also believed that it is the innovation in core technology or in a product that brings true value to customers. To turn a business into a success, he suggested to keep an eye on the long-term instead of immediate rewards, which produces a drive for reliable products and services. He emphasised that it takes time to build up credibility and a strong reputation, which makes a business truly grow and sustain. “Don’t forget about the power of a strong business network. A successful entrepreneur must learn to make the most of their precious time,” Johnny commented. Following Johnny’s speech were two experience sharing

panel discussions from local entrepreneurs and GOAP respectively. The Forum concluded with an interactive co-creation session where participants were actively involved in the discussion on how to build a more vibrant ecosystem for nurturing more innovative and high impact entrepreneurs in Hong Kong. One of the participants Mr. Choi pointed out that the local innovative entrepreneurs should be ready to tap into the huge market in the Chinese mainland and be part of the phenomenal growth. Beyond Entrepreneurship Forum is one of the signature programmes in the “PolyU Entrepreneurship Parade” this year which is an initiative of the University to cultivate a “Do-well Do-good” entrepreneurship culture among PolyU students and graduates, and to nurture socially responsible entrepreneurs and leaders of tomorrow. Special thanks were given to a number of organisations for their support of the event, including AIESEC, BizTechDay, Geeks on a Plane, Make a Difference, Right Ventures, The Hong Kong Federation of Youth Groups, and Youth Business Hong Kong. u

Experience sharing session from local entrepreneurs www.asiamanufacturingnews.com

developments

ASIA MANUFACTURING NEWS â&#x20AC;˘ DECEMBER 2011 / JANUARY 2012

Bioplastics to more than triple

lobal demand for biodegradable and bio-based plastics will more than triple to over one million metric tons in 2015, valued at $2.9 billion.

Bioplastics have moved past the initial phase of market introduction and are now experiencing robust increases in demand in virtually all parts of the world. Gains will be fueled by a number of factors, including consumer preferences for environmentally sustainable materials, improved performance of bioplastic resins relative to traditional plastics, and the introduction of commodity plastics produced from bio-based sources. Ultimately, however, price considerations will be the primary determinant of bioplastic market success, and it is expected that rising petroleum costs will allow some bioplastic resins to

be able to achieve price parity with conventional plastics by the end of the decade. Biodegradable plastics accounted for 90 percent of the world bioplastics market in 2010. Excellent growth is forecast for the two leading biodegradable plastics, starch-based resins and polylactic acid (PLA), both of which will more than double in demand through 2015. The fastest gains for biodegradable plastics, however, will be seen for polyhydroxy-alkanoate (PHA) resins, which are just entering the commercial market. Despite the strong advances for biodegradables, nonbiodegradable bio-based resins

will be the primary driver of bioplastics demand through 2015 and beyond. Gains will be fueled by the availability of commercial quantities of bio-based polyethylene from Braskemâ&#x20AC;&#x2122;s 200,000-metric-ton-peryear plant in Brazil, which opened in late 2010. Two other bio-based polyethylene plants -- as well as a bio-based polypropylene facility -- are also in the planning stages and are expected to open around 2015. Additionally, industrial production of fully bio-based polyethylene terephthalate (PET) is forecast to become a reality by the end of the decade. As a result, demand for non-biodegradable bioplastics will rise from 30,000 metric tons in 2010 to 1.3 million metric tons in 2020. u

World demand for industrial valves to approach $94b in 2015 G

lobal demand for industrial valves is forecast to increase 5.4 percent per year through 2015 to $93.5 billion.

Gains will be driven by continuing robust gains in the Asia/Pacific region, as well as strong recovery in the US and West European markets from a weak 2010 base. In the developing world, especially in China and India, valve suppliers will benefit from rising urbanisation. Valve demand growth in the US will outpace the global average through 2015 due to recovery in the domestic economy after the 2007-2009 recession. Valve demand in Japan and Western Europe will also recover from recent declines, but advances will continue to considerably lag the world average through 2015.

The oil and gas industry will see strong growth in valve demand, with increasing offshore, shale and tar sand related exploration activities helping boost sales of higher-end products. Among the countries that will record robust increases in the unconventional oil and gas sector are Brazil, Canada, Nigeria and the US. The nuclear power market for valves will see weak gains in the developed world in the aftermath of the 2011 Fukushima disaster in Japan. Weakness in the nuclear power generation sector will be offset by increasing valve sales to coal-fired and combined cycle

natural gas power plants. The global market for automatic valves will outpace that for conventional valves, due to the continuing efforts of process manufacturers to improve operational efficiencies. The strongest gains will be registered in sales of separately sold automatic actuators, which are used together with standard valves to allow for automated valve functions, and are less expensive than automatic control and regulator valves with actuators pre-installed. Nevertheless, conventional valves will account for 54 percent of world valve demand in 2015, with suppliers benefiting from the lower cost of these products relative to highly engineered automatic valves. u www.asiamanufacturingnews.com

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

developments

Autodesk introduces Cloudbased lifecycle management

utodesk has previewed a new solution designed to transform how manufacturers manage the entire lifecycle of a product--from its conception, through design and manufacture, partner and supplier management, procurement, quality, compliance, service and more. Autodesk is tapping into the cloud to deliver a new approach to product lifecycle management (PLM), which enables companies to capture and manage product information and processes to continuously improve the products they manufacture.

• Autodesk 360 for PLM with

Autodesk’s new PLM offering, which is expected to be generally available early 2012, is part of Autodesk 360 -a set of secure, easy to use and affordable solutions developed to streamline product and project business processes.

• Autodesk Vault an on-premise

Autodesk 360 for PLM is for companies of all sizes, from small companies eager to deploy PLM for the first time to large enterprises that have become disenchanted by PLM, due to the complexities and high costs associated with traditional PLM implementations. Autodesk 360 for PLM will enable customers of all sizes to achieve the full promise of PLM with a scalable, configurable and intuitive solution. Building upon the company’s leadership with cloud-based solutions, Autodesk 360 for PLM is geared for manufacturers that need to manage business processes throughout the entire lifecycle of a product - from the earliest concept to retirement. Autodesk 360 for PLM will comprise:

• Autodesk 360 Nexus, a new,

cloud-based solution that will anchor –

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affordable, easy-to-use and simple-to-deploy software as a service that helps make the benefits of PLM business applications available to users anytime, anywhere with less cost and risk. product data management software that enables engineering workgroups to organise, manage and track their entire designs, engineering bills-of-materials and change processes. Autodesk Vault will work seamlessly with the Autodesk 360 Nexus.

• Autodesk Buzzsaw, enabled

by Autodesk Cloud, Buzzsaw’s cloud-based supplier allows customers to securely exchange designs and documents with external partners and distributed teams, regardless of their location. Autodesk Buzzsaw Mobile ensures that users have the most up to date information, wherever it ís needed.

Global research firm IDC estimates the PLM software applications market will grow to $20.5 billion by 2015. The processes required to

Autodesk’s new PLM offering which is expected to be generally available early 2012.

commercialise and maintain products are increasingly complex and dispersed. Frequent interactions result in an overload of design, process, and business information that decision-makers and distributed teams must sort, prioritise, and manage over the lifecycle of their products. Unlike the expensive, complicated, engineeringcentric, and difficult-to-deploy PLM systems available today, Autodesk 360 Nexus is more readily and easily configurable to meet customer-specific product lifecycle process needs across the enterprise. Employees in a range of roles from planning to product development to supplier management, quality and compliance, service and more will have greater ability to eliminate bottlenecks and access product and project-related information more quickly regardless of their location. Until recently, PLM has been the near-exclusive domain of large businesses, mainly due to the high cost and expertise related to deploying and maintaining the systems.No company should be excluded from the benefits of PLM technology, commented Kross. An IDC Manufacturing Insights report released in June 2011 revealed that manufacturers identified the top three business benefits of cloud systems as: reducing total hardware spend; improving IT staff productivity and end user service levels; and reducing total spend on software licensing and maintenance. Autodesk 360 Nexus will better enable customers to start small but scale fast to meet demand, and fit easily within their existing business environment. u

technology

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

Solid-Carbide router for CFRP

ecause of their high strength-to-weight ratio, carbon-fiberreinforced polymer (CFRP) parts are appearing more often in aerospace applications and are emerging in such fields as auto racing, sporting equipment (longboards and rowing shells), and many others. But the properties that make such parts so useful make them very difficult to machine. The resins are light, but break and snap, rather than shear off in chips like metals and alloys. The carbonfiber reinforcements are extremely strong, which can dull cutting tools quickly. They also can be layered in different directions, causing these layers to delaminate when drilling holes. With years of experience providing custom cutting tool solutions to aerospace and other composites users, Kennametal is now introducing a line of Beyond solid-carbide KCN05™

routers specifically engineered for successfully machining CFRP. Four router styles are available:

• A ball-nose router dedicated for pocketing and profiling

• A down-cut style with left-hand flutes that compress fibers as it cuts

• A compression-style router with left-hand flutes on the shaft and right-hand flutes at the bottom, which also compresses fibers into the material

• A burr-style router with many thin flutes for increased productive cutting

Each have unique geometries specifically geared to working in CFRP, but all possess a solid-carbide substrate and HP diamond coating for higher speed u capabilities and longer tool life.

Delcam given CADCAM award for China

elcam for SolidWorks integrated CAM system was presented with the Ringier Technology Innovation Award for CADCAM software by International Metalworking News for China, the leading China market metalworking industry magazine, at the recent China International Industry Fair in Shanghai.

The competition, which is organised by Ringier Trade Publishing Ltd, is in its sixth year. It is judged by a panel of experts from industry associations and research institutions within the metal cutting industry. Their opinions are supplemented by internet voting from users of the nominated products, making this a very prestigious and hotly contended award. The Awards ceremony was held in the Shanghai New International Expo Center on 3rd November. More than 120 high-level delegates attended. Other winning companies included StarragHeckert, DMG, SECO Tools, ABB, Mitsubishi Electric, Wuhan HuaGong, Maschinenfabrik Berthold Hermle

and Agie Charmilles. Delcam for SolidWorks combines the benefits associated with Delcam’s PowerMILL and FeatureCAM CAM systems. It is based on Delcam’s proven machining algorithms that are already used by more than 35,000 customers around the world. These strategies ensure increased productivity, maximum tool life and immaculate surface finish, even when cutting the hardest, most challenging materials. At the same time, Delcam for SolidWorks has the same strong focus on ease of use as FeatureCAM, including all of the knowledge-based automation that makes the software so consistent and reliable. Most importantly, Delcam for SolidWorks includes

FeatureCAM’s Automatic Feature Recognition system which automatically extracts detailed feature information from the SolidWorks model. Once the features have been identified, Delcam for SolidWorks undertakes automatic selection of cutting tools, machining strategies, and feeds and speeds, to complete the programming operation. Delcam for SolidWorks is fully integrated into the SolidWorks environment so that the program looks and behaves like SolidWorks. It offers full associativity so that any changes in the CAD model are reflected automatically in the toolpaths. However, this associativity is more intelligent than that offered in many other integrated CAM systems. Delcam for SolidWorks does not simply modify the existing toolpaths but also reviews the choice of cutting tools and machining strategies, and changes them if necessary. u www.asiamanufacturingnews.com

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

technology

tna opens plant in Qingdao

ackaging solutions specialist tna has further cemented its position as a leader in global packaging after recently unveiling its newest manufacturing plant in Qingdao, China. The plant, one of a series of new developments around the world, demonstrates tna’s commitment to both the China and Asian markets by providing local turnkey manufacturing solutions to its customers.

Second largest after the US, China had a gross industrial output of USD$183.9bn in 2010 according to the Chinese Packaging Federation. Huge growth in the Chinese sector has been partly attributed to the packaged food industry which has seen up to 20% growth per annum in recent years, and the new plant demonstrates significant investment into growth in this sector. The new Chinese manufacturing plant, which spans 7650m2, incorporates two separate factories and office space and follows a period of recent expansion across three continents. tna now produces its award winning end-of-line packaging solutions including the tna robag® 3 vertical form fill and seal (VFFS) bagger and tna roflo® VM distribution system in Australia, the United Kingdom and now Qingdao, China. After a period of exhaustive research, Qingdao District Chengyang, Jihongtan Subdistrict www.asiamanufacturingnews.com

was chosen because of its strong industrial base and its proximity to both Beijing and Shanghai. Excellent transport infrastructure including Liuting International Airport, Qingdao Port and a comprehensive road network make Chengyang an ideal base from which to reach out to industrial customers and ensure stable continuity of supply and service. “Investing in a market in which we are already active and which is predicted to enjoy double digit year-on-year growth for the foreseeable future wasn’t a difficult decision for tna,” comments Michael Green, managing director of tna. “Any global business wanting to be taken seriously in China really needs to invest on the ground. As a result of tna’s global credibility, we’re able to create a manufacturing footprint and a number of new jobs in an extremely important market for us. This is all designed to ensure that tna can meet the huge increase

in packaging demand from the Chinese and wider Asian market.” tna China is headed up by David Le Blanc. tna is a leading global supplier of integrated food packaging solutions with over 6,000 systems installed across more than 120 countries. The company provides a comprehensive range of products including spraying, distribution, seasoning, weighing, packaging, metal detection and verification solutions, plus promotional and cutting equipment. tna’s unique combination of innovative technologies, extensive project management experience and 24/7 global support ensures customers achieve faster, more reliable and flexible packaged food products at the lowest cost of ownership. u

Hypertherm reb

ypertherm has launched a rebranded version of its industryleading CAM nesting software, TurboNest. The software, formerly sold under the “MTC Software” brand, will now be promoted using the Hypertherm brand.

Aaron Zou, Director of Hypertherm China said, “Three years ago, Hypertherm purchased MTC Software, a world-leading CAM nesting software developer and marketer based in the USA. Until now, Hypertherm has promoted its software using the MTC Software family brand. At this time, after careful integration of the MTC Software products and team into our company, we are excited to offer the nesting software products using the Hypertherm brand. So now we have Hypertherm TurboNest, which includes numerous features provided specifically to meet

technology

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

A*STAR SIMTech game changing

IMTech established Singapore’s first Large Area Processing Research Programme as it sets sights on creating a new industry to produce innovative large area printed electronics and functional films that are cost-effective, energy-efficient and environmentally friendly. Key sectors such as advertising, building, consumer electronics, healthcare and printed media will be transformed from roll-to-roll manufacturing capability to tap the global market estimated to exceed US$40B by 2020.

Key business leaders from the organic and printed electronics industry throughout Asia, Europe and the US converged recently in Singapore for the international symposium on roll-to-roll processing of printed electronics and functional films to share on advanced technologies, applications and market opportunities.

(SIMTech), a research institute of the Agency for Science, Technology and Research (A*STAR) and in co-operation with the Organic and Printed Electronics Association and the Singaporean-German Chamber of Industry and Commerce, the event was held in conjunction with the roll-out of SIMTech’s Large Area Processing Programme.

Hosted by the Singapore Institute of Manufacturing Technology

Emerging applications such as photovoltaics, flexible electronics

and solid-state lighting which require large area functional and often flexible surfaces are the key factors driving up the demand for roll-to-roll manufacturing. With a global market valued at US$2B in 2011 and expected to worth over US$40B by 2020, it opens up immense commercial opportunities for key industry sectors such as advertising, building, consumer electronics, healthcare and printed media. Unlike conventional semiconductor fabrication which requires batch processing of wafers, the large-area processing system involves a continuous printing press-like manufacturing process compatible with flexible polymer. Using roll-to-roll processing, functional materials Continues page 18

brands TurboNest CAM nesting software the needs of the Asian market. I believe our OEM channel partners and industry end-users will appreciate the software’s ease-ofuse and powerful features. Also, our associates in Asia are trained in software support for cutting applications, so customers can be confident that they will obtain assistance on the software, if they need it.”

associate for more details.

Business partners working to sell and support Hypertherm nesting software products, including ProNest, TurboNest, and NestMaster, are encouraged to install the rebranded TurboNest. They may contact the local Hypertherm office or sales

Hypertherm systems are trusted for performance and reliability that results in increased productivity and profitability for tens of thousands of businesses. The New Hampshire based company’s reputation for metal cutting innovation dates back more than 40 years, to 1968, with Hypertherm’s invention of water injection plasma cutting. The company, consistently named one of the best places to work in America, has more than 1,000 associates along with operations and partner representation worldwide. u

End-users will appreciate the software’s ease-of-use and powerful features.

Hypertherm designs and manufactures advanced metal cutting systems for use in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes handheld and mechanized plasma and laser systems, consumables, as well as CNC motion and height controls and cutting software.

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

technology

From page 17

can be printed on thin, lightweight, flexible and transparent plastic films. Broad industry applications include ambient lighting, portable backlight for outdoor advertising, portable signages, automotive, aerospace and buildings. By leveraging on disruptive manufacturing technology platforms, SIMTech’s Large Area Processing Programme aims to develop more innovative “Made in Singapore” products with novel coating, patterning, embossing web control and web inspection techniques that are not available in the industry today. Dr Lim Ser Yong, Executive Director of SIMTech said, “We are collaborating closely with the print and media industries in Singapore to capture emerging market opportunities in state-ofthe-art high speed printing such as inkjet printing, screen printing and flexographic printing to deposit functional materials in roll-to-roll manufacturing processes. This will transform the printing industry into a new industry in printed electronics and functional films.” Ms Julia Ng, Director of

Dr Lim Ser Yong, Executive Director of SIMTech

Manufacturing and Construction Division of Singapore Workforce Development Agency (WDA) said, “We are pleased to support the inaugural international symposium where advanced technologies, applications and market opportunities are shared among key business leaders. Large Area Processing is an emerging technology, which will create new employment opportunities for the workforce. To this end, WDA will continue to work closely with SIMTech to leverage this technology to build new manpower capabilities.”

Strategic industry-driven collaborations with key industry partners include application examples such as printed heating film for blood or liquid warming in medical applications and printed lighting film for ambient or decorative lighting in advertising and building applications. SIMTech is hosting the first-ever OE-A Working Group Meeting in Asia and the Symposium on Roll-to-Roll Processing of Printed Electronics and Functional Films. The sponsors are aNexus, Coatema, Dimatix and Singapore Workforce Development Agency. u

Image sensors for smartphones

pplied Materials, Inc. has announced its new Applied Producer(R) Optiva CVD system that enables the manufacture of state-of-the-art, backside-illuminated (BSI) image sensors used in the most advanced smartphones, tablet PCs and high-end cameras. The innovative Producer Optiva system is uniquely capable of depositing low temperature, conformal films that boost the low-light performance of the sensor while improving its durability - a critical benefit that can lower costs by significantly enhancing device yield.

protects it from the environment. Importantly, the Optiva tool is the first CVD system to enable >95% conformal deposition at temperatures less than 200 degrees Celsius - which is vital for temperature-sensitive polymers and adhesives used in sensor fabrication.

Emerging backside-illuminated image sensor designs for the latest smartphones and tablets demand ultra-low temperature manufacturing process. New CVD technology permits superior light collection for optimised image capture and lowers manufacturing costs by significantly increasing device yield.

The Applied Producer Optiva CVD system can also be used to deposit conformal insulating liners for through-silicon vias (TSVs) in 3D chip packaging. In this application, low process temperatures are critical to protect the adhesive used to bond the wafer to its temporary carrier. u

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Advanced image sensors are equipped with microlenses positioned directly above the photodiodes to increase the lightgathering ability of each pixel. The Producer Optiva system enhances the performance of the microlens by covering it with a tough, thin, transparent film layer that reduces reflections and scratches, and

analysis

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

Product Data Management – 5 keys to success

If you are not using an integrated product data management (PDM) system, chances are you can relate to these scenarios. In today’s global economy, wasting valuable time looking for or recreating designs that already exist not only puts you out, but also puts your company at a competitive disadvantage. Adapting, leveraging, and reusing existing designs can save you time and save your company money. It can also help you bring new products to market faster, improve your company’s profitability, and win new business. Companies that use an integrated PDM system can maximise the effectiveness of design reuse by efficiently addressing the associated challenges. This paper examines the five key benefits of design reuse and explores how SolidWorks Enterprise PDM software can help you turn design reuse into a winning strategy.

It’s much faster to adapt existing components or design elements for use in a new design than to start with a blank slate. The essence of design reuse is to leverage existing designs in some way—either by completely reusing the design, which can eliminate design time, or by modifying or updating the design, which takes less time. In addition to reductions in modeling time, design reuse carries the potential for significant time and cost savings in downstream engineering, manufacturing, purchasing (saves time with fewer transactions, vendors, and material acquisition costs), and assembly operations.

Second key to success Leverage proven concepts There is an old saying that if it’s not broke, don’t fix it. Existing

designs carry the advantage of actual market circulation, and have already withstood the test of the consumer. These designs represent proven concepts and are known quantities with established performance histories and warranty return rates. Working from an existing design, a designer can have greater confidence that the design will perform as advertised. It’s less risky from a customer satisfaction and field failure perspective to leverage a validated, proven concept than to go off in a completely new direction. By working from a previous design, a designer can maintain design intent while adding aesthetic improvements. Design reuse can also spark innovative ideas and possible enhancements that a blank slate typically cannot deliver.

First key to success – Slash design time Time is more than money. Getting a new product to market or responding to a project faster than the competition is a critical requirement for success in today’s competitive marketplace. Given these deadline pressures, it does not make sense to start every new product design or new proposal from scratch—especially when studies show that the majority of new product designs (as much as 85 percent in some studies) contain intellectual property from prior designs. www.asiamanufacturingnews.com

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

analysis

a Third key to success – Increase quoting speed and accuracy Winning a competitive bid demands a promptly delivered, accurate quote. Existing designs and proposals typically include accurate estimates about the costs and lead times required in the past. Accessing information on previously used design components and updating that information into proposals can save time and improve accuracy when estimating new projects. In addition to helping companies turn around accurate proposals on bid projects, design reuse can also facilitate and streamline the quoting process between manufacturers and outside vendors. For example, with an integrated PDM system, purchasing can access models and drawings for quoting purposes without having to take time away from a designer or engineer.

Fourth key to success – Reduce data duplication and SKUs Design data is a manufacturer’s lifeblood. However, when data is mismanaged, disorganized, or unwieldy, it can become a burdensome drag on product development. In most organizations, a healthy percentage of engineering data is either lost or difficult to locate due to the misfiling of files and documents. This can lead to data duplication, an unnecessary growth in the number of stock keeping units (SKUs), and additional data storage costs. It’s more cost-effective to reduce the number of parts in your database. In addition to making it easier for designers to locate and reuse existing components, reducing the number of SKUs or part numbers can reduce costs across the entire organization, because the addition of a single www.asiamanufacturingnews.com

part can add many hours of work and additional costs downstream.

Fifth key to success – Integrate global resources For many manufacturers, product development has increasingly become a worldwide effort, with design and engineering resources spanning the globe. While many product development centers once operated independently—each designing and manufacturing products for their own specific markets—more and more companies are taking advantage of their overall design talent by encouraging collaboration on a global scale. It’s much more efficient to leverage existing designs, whether they were created in the next office or on another continent. Although design modifications are often necessary to meet the customer needs and nuances of a particular market, the ability to reuse a design created elsewhere in the organization can save a substantial amount of time and money.

Find the right design quickly and easily To reuse a design, you first have to find it. How can you determine if a design like yours already exists?

Where do you look for it? How can you know which design has similar characteristics to your needs and if you have the right revision? How do you account for all of the references, associations, and interrelationships between parts, assemblies, drawings, bills of materials, documentation, and manufacturing information? If you are counting on part numbers and file names to provide the specificity of information that you require, you might have a long, agonizing search, adding unnecessary overhead to the process. In fact, according to Gartner Research, manual data management costs between 40 to 60 percent of a designer’s time— time better spent helping your company succeed. With an integrated PDM system like SolidWorks Enterprise PDM, you can utilize powerful search capabilities to quickly find the files you need and take advantage of design reuse. Because the system tracks data by design properties rather than project numbers or file names, finding the right file is a snap. For example, locating a 5-inch (127 millimeter) diameter, ?-inch (6.35 millimeter) cutting blade that utilizes a 6-hole bolt pattern using file names would be extremely difficult compared to searching on any of those properties using SolidWorks Enterprise PDM.

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

With the powerful search capabilities of SolidWorks Enterprise PDM, you can search on design properties and find the file you need in a matter of seconds. All product related information is neatly displayed in a single window eliminating the need to navigate through a complex maze of separate windows.

Manage access to secure data and control revisions What happens once you find the file that you need? How do you make sure that you don’t overwrite a file or work with the wrong revision? Do personnel outside of engineering—such as manufacturing, purchasing, and field service personnel —require access to design data? How can they view the file they need without accidentally corrupting, deleting, or changing a design? Perhaps the biggest challenge associated with design reuse is securing data to make sure that no one can inadvertently alter, overwrite, or delete it. Maximizing the returns on design reuse demands a guarantee that the data will remain as you found it, for use by someone else. Using an integrated PDM system like SolidWorks Enterprise PDM, you can rest assured that your data is safe and secure. Because the system allows you to implement tight revision controls, formalize workflows, and administer access rights, you can ensure that only designated personnel can authorize making file alterations or rolling to another revision. Some personnel only require “read” access, while others might not have CAD access but can still access other design documents. Tight revision controls not only safeguard your data, they can open up opportunities for new business with customers that maintain stringent document control requirements.

To make finding the required file even easier, SolidWorks Enterprise PDM employs both thumbnail and detailed 3D viewing capabilities, providing a visual way to find relevant models, drawings, and images. Collaborate and share data globally while keeping it secure As design teams grow and become increasingly global, design professionals need to be able to navigate, track, and safeguard digital product design information. You cannot regularly visit a design team member to discuss data management when the colleague’s office is located on another continent. Yet, you still need to collaborate and cooperate with overseas divisions, other departments, customers, and external partners, particularly when pursuing a design reuse strategy. In today’s global business environment, geographical barriers have fallen and many manufacturers support and encourage global design collaboration because it’s more efficient, boosts productivity, and makes good business sense. While one group may have originated a particular design, another division might be able to save time by reusing the design, or even offer ideas for making it better. Sharing your company’s intellectual property with an overseas

collaborator demands a high level of data security. With SolidWorks Enterprise PDM, you can easily manage access and share design data anywhere in the world, enabling easy, effective collaboration. You can replicate portions of design data to different servers or provide secure web access to design data. The ability to make secure, controlled information available to whomever needs it anywhere in the world can be an important competitive advantage, giving your company the flexibility to function as a truly global entity.

Streamline change management When you pursue a design reuse strategy, the one thing you can count on is that there will be many changes to existing designs and components. How can you manage these updates, and make sure that you capture and add them to your internal systems? How will design modifications affect your engineering change order (ECO) process, particularly when you are adapting a design from another division or location that might follow a different process? Most manufacturers have their own distinct business processes for introducing new designs and making changes to existing

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

analysis

In order to maximize your a designs. return on a design reuse strategy,

terms of how designs are modeled, reviewed, approved, tested, and manufactured. Maximizing the efficiency of design reuse requires an understanding of how the part was originally modeled, including how a designer added features and parametric relationships. Establishing modeling best practices provides a common design methodology that everyone can leverage in order to reduce the effort required to execute design reuse.

you need a means for tracking and managing the increased volume of changes that you can expect. An effective PDM system like SolidWorks Enterprise PDM can help automate many of these tasks. SolidWorks Enterprise PDM has a built-in engineering change process that can help you standardise your process for reviewing and approving parts by the extended design team. You can also customise your ECO process and automatically revise it if any changes are made to new designs. With SolidWorks Enterprise PDM, you can easily manage the increased volume of design changes that are part of a design reuse strategy.

Likewise, everyone needs to follow your company’s designated workflow processes in order to realize the substantial, potential benefits of design reuse. If everyone follows their own individual approach, it is increasingly difficult to duplicate all of the attendant processes, which is the underlying objective of design reuse.

Automating workflows, standardising modeling practices

SolidWorks Enterprise PDM ensures that everyone follows your designated processes by providing tools for defining and formalizing your organisation’s approach

To implement design reuse effectively, everyone in your product development organization needs to be on the same page in

to product development. Welldefined processes, combined with the system’s built-in notification capabilities, ensure that designs are modeled similarly, the right people review and approve product designs and changes, and the appropriate steps are followed before a design is released for production.

PDM makes design reuse effective for growing your business You now know the five key ways that design reuse can help you get products to market faster and win new business. However, as this paper describes, realizing the benefits of design reuse is not without its challenges. In order to leverage design reuse to its fullest potential, you will need an integrated PDM system. The remaining question is: How do you go about choosing the PDM system that makes the most sense for your business? nextSTEP Visit: www.solidworks.com

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

developments

Microelectronics: harnessing hotspots

tiny generator built from silicon nanowires can harness energy from the surplus heat produced in electronic circuits. The new thermoelectric generator uses silicon nanowire ‘legs’ to collect heat from hot spots in electronic circuits. Electronic devices often develop ‘hot spots’ that can become detrimental to performance. Much research has focused on developing methods to cool the system, or, even better, convert the excess heat to electricity by exploiting the thermoelectric effect — where a thermal gradient induces the movement of charge carriers. However, previous attempts at building chip-level generators have failed because the incorporated materials were not compatible with the technology used for constructing integrated circuits, such as complementary metal oxide semiconductors (CMOS). Navab Singh and co-workers at the A*STAR Institute of Microelectronics and the National

University of Singapore1 have now created a nanoscale thermoelectric generator (TEG) using silicon nanowire arrays. Silicon, which is compatible with the base materials in CMOS, had previously been discounted due to its poor performance as a generator in bulk form, but it has proved far more effective on the nanoscale. “Silicon nanowires have much better thermoelectric properties than the parent material, because they have much lower thermal conductivity,” Singh explains. “Also, state-of-the-art equipment is already available for processing silicon. Therefore, if thermoelectric coolers and energy harvesters can be fabricated using silicon nanowires, they can be low-cost, scalable, high-yield devices.”

The researchers constructed their TEG by connecting together two different metal plates using vertical legs made from alternating bunches of n-type silicon nanowires, in which excess electrons carry the charge, and p-type nanowires, in which the charge carriers are ‘holes’ caused by missing electrons (see image). According to Singh, the biggest challenge was connecting the nanowires to the metal plates to allow a low resistivity contact and provide the optimum thermoelectric performance. To do so, they adapted established techniques from CMOS fabrication. “However, high contact resistance on the wire tops remains an issue and our design needs further improvements,” says Singh. As an electrical generator, a TEG could be used to ‘self-power’ a section of an electronic circuit. “Further, they can be used to generate power and supplement batteries in most high heat flux systems like automobiles, semiconductor lasers and photo detectors,” suggests Singh. They could also provide an efficient, low-cost cooling system for removing hot spots. Singh believes nanoscale TEGs could also be used in medical science to power implants in the human body: “A nanowire thermoelectric power generator fits the bill perfectly. They can be scaled to appropriate size and since they lack moving parts, they are reliable and could span the lifetime of the patient. Energy could then be extracted using the temperature gradient between the body and the environment.” u

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developments

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

MHI establishes manufacturer in India

itsubishi Heavy Industries, Ltd. (MHI) and Anupam Industries Limited (Anupam) of India have jointly established Anupam-MHI Industries Limited, a company to manufacture heavy-duty material handling equipment, including quayside container cranes, in India.

The creation of the new JV is aimed at aggressively exploring India’s fast-growing market, with the Asian and Middle East and Africa (MEA) markets also in sights, by strengthening business collaboration between MHI and Anupam, to which MHI has already licensed related technologies, and further enhancing the cost competitiveness of their products. Plans call for the JV to establish two plants respectively overseeing production and assembly of structural components and to commence operation in the first half of 2012, having annual production capacity of 60 units. The new JV is capitalised in the amount of 1,880 million (188 crore) rupees, with Anupam holding 51% and MHI owning 49%. The head office is located in Anand, Gujarat, India’s westernmost state. The company handles manufacturing, marketing

and after-sales service for port-use loading and unloading equipment, including container cranes and unloaders; bulk material handling systems for transferring bulk products such as coal; and steel plant logistics systems, including overhead traveling cranes. Mr. Mehul Patel of Anupam serves as CEO of the new company. Anupam, which was founded in 1973, is India’s largest overhead crane builder. The company has completed numerous deliveries of various cranes to the steel, power, construction, cement, shipyard, fertilizer, petrochemicals, and heavy and general engineering sectors. In 2010 MHI licensed heavy-duty material handling equipment technology to Anupam. By combining MHI’s product development and manufacturing expertise and engineering knowhow relating to installation with Anupam’s production bases and local marketing/service network,

the two companies are engaging dynamically to develop their market in India. The two parties have discussed establishing a JV in the country from the beginning of their collaboration. The heavy-duty material handling system and port cranes market is expected to grow significantly in Asian countries, including India, which views port facility improvement as one of the country’s growth strategies, as well as in the Middle East, Africa and Latin America. Going forward MHI will continue to strengthen its aggressive marketing activities, leveraging the new JV with Anupam as a production base that will further enhance MHI’s capability to respond to the needs of the global market. Mitsubishi Heavy Industries headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers. MHI’s diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and airconditioning systems. u

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

innovations

Global chelating agents market in transition

helating agents can be used in a great variety of applications and the potential for innovation of chemical additives is far from being exhausted.

The market research institute Ceresana Research forecasts the global chelating agents market to reach more than 5 million tonnes in 2018. In 2010, the Asia-Pacific region was the largest outlet, generating about 45% of worldwide demand for chelating agents. The region was followed by Western Europe and North America.

process water treatment or agricultural technology. Here, particularly the demand for biodegradable chelating agents has been increasing during past years. Some reasons for this are ecological concerns because of the bioaccumulation of chelating agents and the resulting consequences for humans and environment.

The Study in Brief:

Chapter 1 is a short overview of the most important information on the different chelating agents. It offers information on their classification, characteristics, application areas, legal situation, and environmental and health aspects.

Apart from becoming more environmentally friendly, modern chelating agents are becoming increasingly efficient and easier to use. The current report provides profiles of manufacturers of such new and modified chelating agents.

Chapter 2 provides an overview and analysis of the chelating agents market – including forecasts up to 2018. The demand for each chelating agent type is explained in detail. Moreover, you will gain insight into the development of individual regions and global market dynamics. The report also provides essential market data related to the individual application areas.

Since the markets in Western Europe and North America are already very saturated, they will register sluggish growth in the coming years. Market trends in these regions will be characterized by substitutions and the introduction of chelating agents into new application areas. In the remaining world regions, almost all application areas offer great potential for growth.

Chapter 3 analyzes the demand for the most widely used chelating agents worldwide. The demand data is divided into 7 world regions (Western Europe, Eastern Europe, North America, South America, Asia-Pacific, Middle East, and Africa) and into application areas, such as cleaners & detergents, pulp & paper, agriculture, photographics, and textiles.

Ceresana expects the cleaners and detergents market – the largest application area for chelating agents – to see moderate growth. Pulp production will especially increase in the Asia-Pacific region. The pulp industry was the secondlargest outlet for chelating agents as soon as in 2010. Chelating agents are used in the production of bleached pulp and the deinking of recycled papers.

“Producers and users of chelating agents will have to follow the trend of replacing conventional chelating agents by new environmentally friendly ones – also outside of Western Europe and North America,” forecasts Oliver Kutsch. The study explains how legislative changes and growing environmental awareness will impact the market.

Innovation and EcoFriendliness

Most demand for chelating agents is generated by the cleaners and detergents market.

Chapter 4 provides 106 profiles of chelating agent manufacturers – clearly arranged according to contact details, turnover, profit, product range, production sites, profile summary, product basis, fields of application, and brand names. Producers include Akzo Nobel, Archer Daniels Midland, BASF, Cargill, Clariant, Dow Chemical, Kemira, Lanxess, Merck, Mitsubishi Rayon, Nippon Shokubai, Tate & Lyle, Trumpler, and Zschimmer & Schwarz.

Growth Driver AsiaPacific Most demand for chelating agents is generated by the cleaners and detergents market. “Especially chelating agent manufacturers will benefit from strong growth in demand for modern cleaners and detergents in Asia-Pacific and South America,” explains Oliver Kutsch, managing director of Ceresana. The most comprehensive market report worldwide examines how demand for chelating agents will develop in the individual application areas. In addition, the study highlights opportunities offered by new innovative products.

The use of innovative chelating agents is also growing in other application areas, such as www.asiamanufacturingnews.com

nextSTEP Visit: www.ceresana.com/en/ market-studies/additives/chelatingagents u

innovations

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

Spurring the growth of ecofriendly industries

o spur the growth in eco-friendly industries, A*STAR’s research institute, SIMTech, is spearheading a slew of R&D initiatives in green technologies in collaboration with Nanyang Technological University (NTU) and National University of Singapore (NUS).

The Singapore Institute of Manufacturing Technology (SIMTech), a research institute of the Agency for Science, Technology and Research (A*STAR), is taking on the challenge of green manufacturing by spurring R&D collaborations on remanufacturing technologies with NTU and NUS as well as launching initiatives to grow eco-friendly industries. Three Joint-Labs with NTU to develop technologies relevant to Remanufacturing are set up and Remanufacturing and Green Packaging Initiatives for industry are rolled out.

Investing in 10 New Projects in Remanufacturing Technologies SIMTech is engaging with NUS and NTU on 10 new projects to jointly develop competitive remanufacturing technologies for Singapore’s manufacturing companies. This is the first such instance of significant investment in remanufacturing projects by the Science and Engineering Research Council (SERC) of A*STAR. The projects were awarded by SERC in September 2011. The projects address critical technologies for remanufacturing of combustion engines and automation equipment in the analysis of defective components, salvaging used components to functional requirements and enabling technologies that will ensure efficient remanufacturing operations? from planning and scheduling, component inventory forecasting to in-process job

tracking. Said Dr Raj Thampuran, Executive Director, SERC of A*STAR, “Remanufacturing is a key market space that is under tapped by our local industry. A*STAR’s investment in R&D of remanufacturing technologies will not only spur the growth of new industries, with firm foundations in these technologies, but also enhance the environment by reducing greenhouse gas emissions. We may well see the growth of more eco-friendly industries in Singapore in the near future.”

Three Joint Labs for Remanufacturing Technologies SIMTech is also collaborating with NTU to establish three joint research labs to develop remanufacturing-related technologies in refurbishing and reliability assessment. Refurbishing technologies include cleaning, cladding, welding, and surface treatment to recover the functionality of the parts to be remanufactured. Reliability assessment technologies evaluate the remanufacturability of the remanufactured parts and to assure their warranty. In addition to delivering cutting edge technologies, the jointlabs will also serve as platforms to nurture R&D manpower for the remanufacturing industry, transforming into centres of excellence in the respective technical areas to benefit more industry sectors. The initial focus of the joint-labs will be in reliability, precision machining,

and 3D additive manufacturing. Provost of NTU, Professor Freddy Boey, said: “The joint labs aim to come up with innovative manufacturing and industrial processes that are sustainable, efficient and cost-effective – factors which are crucial to the industry of today. Given NTU’s expertise and strengths in engineering and sustainable manufacturing, I am sure our latest collaboration with SIMTech will be a resounding success. This endeavour is also very much in line with NTU’s five-year strategic plan, where Sustainable Earth has been identified as the key research area in our efforts to scale new heights as a great global university.”

Remanufacturing and Green Packaging Initiatives for Eco-friendly Industries The Remanufacturing Initiative for industry, supported by SPRING Singapore, aims to enhance remanufacturers’ competitiveness, develop remanufacturing related capabilities in local companies and grow remanufacturers in Singapore. The initiative targeting at remanufacturers, precision engineering service providers, and companies interested in venturing into remanufacturing collaborates closely with Caterpillar Reman Singapore to help match and develop relevant capabilities to support its local operation. Ten companies from industry are members of this initiative. The potential value of outsourcing to local companies is estimated to be worth over US$100 million per year. On yet another front, to encourage environmentally friendly packaging, SIMTech is launching the Green Packaging Initiative to address the demand and technical challenges faced by

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

innovations

goods packaging producers, food and beverage retailers, packaging designers and producers. SIMTech works with MNCs, OEMs and SMEs to share knowledge, develop technical competency, innovate green packaging solutions and implement environmentallyfriendly packaging through the use of renewable, recyclable or recycled content materials, the elimination of potentially toxic materials, the use of renewable energy sources and the use of production processes that optimise material, energy and water utilisation. To date, 10 companies are participating in this initiative.

and Green Packaging Initiatives, companies have an added avenue to create value-added products with manufacturing processes that are also more environmentally friendly.”

Dr Lim Ser Yong, Executive Director of SIMTech said, “In a time where environmental challenges have taken centre stage, companies are seeking the know-how and the tools to incorporate sustainable manufacturing into existing business operations to reduce cost and environmental impact. With the launch of the Remanufacturing

This conference focused on industry trends, value-creation and cost reduction through corporate sustainability policies, innovative waste reduction and recycling, and energy efficiency in manufacturing. It brings together thought leaders to share strategies, practices and technologies that make business more environmentally-friendly.

Inaugural Conference on Sustainable Manufacturing To create greater industry awareness and participation in sustainable manufacturing, SIMTech organised the Sustainable Manufacturing Centre Annual Conference 2011 in November at SIMTech.

Remanufacturing Remanufacturing is the process of creating a like new product from used products. The remanufacturing process involves dismantling, cleaning, salvaging, replacing worn components before re-assembling and testing. A company can potentially save between 60% to 90% in terms of energy, materials, water and air pollutant emissions by remanufacturing an endof-life product, compared to manufacturing a new product. In addition, the process retains more than 80% of the product’s original value. This makes remanufacturing a green and high value-add industry with enormous growth potential. The global remanufacturing market exceeds US$100 billion (APEX, 2007). With limited natural resources, gaining new capabilities in remanufacturing opens a window of opportunity for high-margin business growth in a rapidly expanding market. u

Large order to Rockwell Automation

ockwell Automation PlantPAx process automation system provides a flexible, scalable platform to deliver integrated information, control, power and safety.

Daewoo Shipbuilding & Marine Engineering (DSME), a South Korean shipbuilder established in 1973 in South Korea, has awarded a $6 million+ order to Rockwell Automation (NYSE: ROK) and its Global Solutions team to provide emergency shutdown, fire and gas safety systems, and engineering services for four new DSME offshore drill ships and options for three more ships. Rockwell Automation will provide leading safety system technology using its PlantPAx process automation system, FactoryTalk View, AADvance process safety and project management expertise. Three orders have already been signed; additional orders are expected by mid-2012. “Rockwell Automation offers a proven, robust safety system www.asiamanufacturingnews.com

for DSME’s offshore vessels and rigs. They have the experience and expertise to design, develop and deliver these systems, working with their partners here in Korea,” said H.G. Choi, director of purchasing, DSME. “Based on our long, successful relationship, we are confident in the ability Rockwell Automation has to provide the integrated information, control, power and safety systems we need for this important project.” “This win is significant because it propels Rockwell Automation to the forefront of control and safety solutions for offshore vessels and drilling rigs,” said Terry Gebert, vice president and general manager, Rockwell Automation Global Solutions. “Our solution is unique as it provides a single, flexible, scalable platform using

the PlantPAx system to meet the specifications of an integrated control and safety system. Our experience, oil and gas domain expertise, and global resources will help DSME run a profitable and sustainable operation.” To better serve its Korean customers, Rockwell Automation recently opened a new customer briefing and competency center in Seoul. The center houses working models that demonstrate integrated, flexible and scalable automation systems operated by multidisciplined controls and the PlantPax system. “This new facility highlights plantwide optimization, machine builder performance and sustainable production solutions using a wide range of our advanced automation products, and information architecture,” said Bob Ruff, president, Rockwell Automation Asia Pacific. “Our customers, partners and others will be able to visualize the power of advanced technology.” u

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

Hyundai accelerates development with Rapidform 3D

yundai Motor Company is using Rapidform XOR and Rapidform XOV 3D scanning software to speed product development and ensure the quality of its new vehicles.

Hyundai’s R&D division has standardised on Rapidform for the creation of CAD models from 3D scan data, a process that is becoming more popular as automakers and other manufacturers realise the time and cost savings offered by 3D scanning. Hyundai’s R&D division employs 3D scanning in several different areas, including its design studio. As part of the design and styling process, clay models are created, refined and then captured with a 3D scanner. Hyundai uses Rapidform XOR to convert the 3D scan data into NURBS surfaces and sections which are further refined into Class A surfaces in a surface modelling software. These Class A surfaces are then used to develop Hyundai’s new cars. The company also uses Rapidform XOR for parametric solid modelling. After scanning powertrain and other mechanical components, Hyundai engineers create CAD models in Rapidform XOR, without the need for any other software. By building the CAD models in Rapidform, Hyundai doesn’t need to use a separate license of CAD to convert 3D scans to solid models, which

saves time. More importantly, it reduces the chance for errors because accuracy is tracked in real time by Rapidform’s Accuracy Analyser technology.

Rapidform XOV is the only software to use the intelligence of CAD to make point cloud based inspection faster and easier than ever before.

Hyundai’s pilot team, which builds the first series of every new vehicle, uses Rapidform XOV to check the quality of each new product’s body-in-white (BIW). After a BIW is produced, it is 3D scanned and the data is imported into Rapidform XOV. Quality engineers then compare the scan to the original CAD design, checking both the contours and specific dimensional features of each BIW. Using geometric dimensioning and tolerancing (GD&T) and deviation analysis, they’re able to pinpoint problems and address them quickly.

INUS Technology helps companies unlock the power of 3D scanning. The company’s software solutions are the most widely installed products for reverse engineering, 3D imaging and inspection using 3D scan data around the globe.

Rapidform XOR has been recognised as the “only viable choice for parametric solid modelling” from 3D scan data in a U.S. Air Force-funded study.

Rapidform makes 3D scanning an extremely powerful tool for a variety of applications and is used in fields such as manufacturing, R&D, quality inspection, medical research and civil engineering. Leading companies including Audi, Ford, Hyundai, Toyota, Rolls Royce, Volkswagen, Hitachi, Panasonic, Oakley, Samsung, Sony, Alcoa, and Benteler use Rapidform’s advanced technology to innovate throughout their research, design, manufacturing and quality control processes. u

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ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

business news

Speeding up green technology in China

ince the introduction of the “Ambient Air Quality Standards” and the announcement of temporary coal price intervention for power generation in November from the “Sino-Japanese Energy Conservation and Environmental Protection Comprehensive Forum” to the “United Nations Climate Change Conference”, there have been frequent launches of major policies with regard to “Energy Conservation and Environmental Protection”, and numerous relevant international cooperative activities. All of these proved that with increasingly scarce resources, ever more severe environmental problems, and emphasis on sustainable growth, “energy conservation and environmental protection” has become the main theme of sustained global growth, welcoming a golden age for the growth for related industries. On 26 Nov 2011, State Council Vice Premier Keqiang Li indicated in his opening speech for the “Sino-Japanese Energy Conservation and Environmental Protection Comprehensive Forum”, that with the worsening of the Euro Debt Crisis, many countries are experiencing slower growth and rising prices, the probability of a long-term global economic downturn has expanded. To maintain robust growth, an innovative growth model is more than necessary to provide strong momentum for a balanced sustainable growth. Emphasising “Energy Conservation and Environmental Protection” is an important breakthrough for economic development transition, which helps create new driving forces, overcome the bottleneck from China’s resource constraints, and eventually realizes sustainable socio-economic growth. Vice Premier Li’s latest remarks have attached greatest importance to the energy conservation and environmental protection sector. China’s strong emphasis and its determination to promote the energy conservation, environmental protection and related industries is self-evident. In fact, this was not the first time a senior Chinese official highlighted the importance of energy conservation and environmental protection at an international forum. www.asiamanufacturingnews.com

Looking at China’s recent macroeconomic growth, it is obvious that energy conservation and environmental protection has become a keyword in sustainable socio-economic growth. At the same time, its impact and status has been increasing. Premier Wen has mentioned in the government reports that China will promote an energy conservation and environmental protection oriented, and civilized production and consumption model, and strive to build a resource conservation-orientated and environmentally-friendly society. In 2009, during the “China International Energy Saving, Emissions Reduction and New Energy Technology Expo”, President Hu put great emphasis on actively promoting energy conservation and emission reduction, and developing renewable energy, which are key measures to implement the concept of scientific development, and increase sustainable socioeconomic growth. According to industry experts, compared to developed countries, the efficiency of resource utilisation in China is still very low. Based on the statistics, China accounts for 4% of the world’s total GDP, while the consumption of coal, iron, and aluminium accounts for more than 30% of world’s total resource. In recent years, rapid growth of China’s economy posed great environmental impact on several parts of the country. Economic growth also resulted in more severe resource restraints. Therefore, to ensure a fast and healthy economic growth, the structure of China’s economy has to undergo a transition, i.e. to switch from a “high input,

high energy consumption, high pollution, and low output” economic model to a “low input, low energy consumption, low pollution, and high output” economic model. Undoubtedly, as the myth of global warming is turning into a reality, and China’s economy finds itself at the crossroads of a major transition, energy conservation and environmental protection has already become the theme of both China and the world’s development. This is not only driven by global trends, but also a logical choice.

Active rollout of macropolicies If we observe closely, policies that support energy conservation and environmental protection are being actively rolled out, with six to seven launched just in the second half of the year, which did not even include policies for subsectors. November was the peak period for energy conservation and environmental protection policies introduction and meetings. Early that month, the “Nationwide Environmental Protection Regulations and Environment Economy Policy Formulation Plan for the 12th Five-Year Plan Period” was announced. On 16 Nov 2011, the “Ambient Air Quality Standards” were introduced. On 26 Nov 2011, the “SinoJapanese Energy Conservation and Environmental Protection Comprehensive Forum” was held. On 28 Nov 2011, the “United Nations Climate Change Conference” was held. At the end of November, the announcement of temporary coal price intervention for power generation became a

ASIA MANUFACTURING NEWS • DECEMBER 2011 / JANUARY 2012

business news momentary nationwide subject of focus. Relevant responsible parties in the NDRC mentioned that these control measures not only benefit the coordinated growth of the coal and power industries, but also help keep unjustified energy consumption under control, especially for high energy consumption sectors with faster-than-expected growth, encouraging structural adjustments to the economy, and energy conservation and emission reduction. What is the reason behind the active rollout of relevant policies? The answer may lie in the continuous socio-economic growth of the human society. Starting with the “United Nations Framework Convention on Climate Change” in 1992, followed by the “Kyoto Protocol” in 1997, and then by the “Copenhagen Accord” signed at the United Nations Climate Change Conference in Copenhagen in Dec 2009, international society is developing a heightened awareness, reaching a consensus, jointly calling for the development of standardised and quantifiable guidelines to control greenhouse gas emissions. There is also a need to control global warming, and realise harmonious development between human and nature. Global climate change has a far-reaching impact on the existence and development of human beings, and is a common challenge faced by countries across the globe. Although China is a developing country, the mission to grow the economy and improve living standards is arduous. Foreseeing the importance of sustainable socio-economic growth and scientific development, the “Energy Conservation Law of the People’s Republic of China” was formulated in 1997, which included energy conservation and emission reduction in the regulatory scheme. Its amendment formulated in 2007 further elaborated that energy

conservation a basic policy of China. The State implements an energy strategy of promoting energy conservation and development concurrently while giving top priority to conservation”. The “National Climate Change Programme” formulated in the same year laid out the guidelines, basic principles, key areas, policy measures, and detailed steps to address climate change. At the United Nations Climate Change Conference in Copenhagen in 2009, China made a solemn commitment to reduce China’s carbon emissions by 40%-45% by 2020 on the base of 2005, which is an ambitious target. Therefore, establishing a lowcarbon economy and promoting coordinated, balanced and sustainable development will be the key area of focus of China’s economic growth.

A Golden Age for Industrial Growth As one of the key strategic new industries supported and cultivated by the State, industry experts foresee that along with China’s increasing focus on and investments in the environmental protection industry, including the launching of supportive policies and raising of environmental standards, the energy conservation industry is welcoming a golden age of growth for the next 5 years with enormous market potential. In addition, with increased policy support, the growth of key subsectors and leading players in the energy conservation and environmental protection industry will exceed the industry average. President Hu pointed out at the APEC CEO Summit that during the 12th Five-Year Plan period, China’s environmental protection industry will continue to grow rapidly. In 2015, the gross industrial output value of the environmental protection industry is expected to exceed Rmb 2 trillion. From 2011 to 2015, investments in the environmental protection industry will reach Rmb 3.1 trillion,

doubling that of the past five years. China’s green industry and environmental protection industry will become the key fields for attracting and utilising foreign investments. The strong demand for green technology and the favourable investment environment will provide a broad market and enormous investment opportunities for international and local enterprises. At the same time, according to some sources, the “12th Five-Year Development Plan for Energy Conservation and Environmental Protection Industry” will be launched soon, and the National Environmental Protection Conference which will be held every five years, may talk about the growth rate of the environmental protection industry which will exceed that of fiscal income in the same 12th Five-Year Plan period. At the same time, China encourages leading and competitive energy conservation and environmental protection companies to expand in size and strength. During the 12th Five-Year Plan period, around 100 environmental protection companies with over Rmb 1 billion of annual output will be formed. It is evident that promotion of the energy conservation and environmental protection industry will permeate the entire process of China’s modernisation, creating a positive market outlook and bringing in unlimited business u opportunities. www.asiamanufacturingnews.com

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