VOLUME 22/4 – 2012 • €6
The world of European manufacturing
NEW HOLLAND - CLEAN ENERGY FOR AGRICULTURE PRESEZZI PRESSES FOR PERFECT SHAPES INNOVATION AND SAFETY ARE PRIORITIES FOR SABAF
PREMIUM BRANDS BOOST AUTO MARKET SHARE
Release mechanism Europe’s leaders say a break-up of the euro is out of the question. A group of UK analysts say it’s the only hope.
reaking up is so very hard to do, as the Walker Brothers reminded us back in 1965, although the Bacharach/David lyrics actually urged the young lady to ‘make it easy on yourself’ and go anyway (‘Don’t try to spare my feelings/Just tell me that we’re through’). Such generous – and realistic – sentiments are unlikely to be heard from Berlin as the possibility of a break-up of the eurozone looms ever larger. Chancellor Angela Merkel declares that even the departure of Greece would be catastrophic and cannot be contemplated; the troubled countries of the eurozone have no choice but to continue to try to reduce their debts and regain competitiveness by ever more severe austerity programmes, even if this means driving down demand and driving up unemployment for years to come. They should settle down in their debtors’ prison, stop cooking up schemes to escape through the window and study how to become more German. Break-up is unthinkable partly because it would be a devastating shock to the belief in an ‘ever-closer union’ that has driven the great European project – and the careers of countless politicians and bureaucrats – for more than 60 years. They might get over that. But there are also genuine fears that even one or two countries leaving could have economic consequences that would make the Lehman collapse look like a minor hiccup. The Economist has warned that a euro break-up would cause a global bust worse even than the one in 2008 –09 with Europe ‘ripped apart by defaults and bank failures’. Willem Buiter in the Financial Times has been even more apocalyptic: “Disorderly sovereign defaults and eurozone exits by all five periphery states would drag down not just the European banking system but also the North American financial system.” But what if there were to be ‘defaults and bank failures’ anyway, as seems all too likely? Would the peripheral countries then have more hope of recovery outside the euro rather than
inside it? And need exits be disorderly or might they be managed? It would be surprising if no-one in the finance ministries of Europe was trying to address these questions but if they are, they’re not letting on, for obvious reasons.
It can be done But if governments refuse to think out loud about exit scenarios, others have no such inhibitions. The offer of a £250,000 prize by the UK think tank Policy Exchange for the best plan for a euro break-up resulted in a short list of five erudite proposals, as well as a cartoon by a 10 year-old Dutch boy in which ‘the Greek guy does not look happy’. All five say that a break-up of some kind is not only practicable but essential, if not, indeed, inevitable. All five also agree about what’s wrong, as do most economists these days. Jonathan Tepper sums up: “The real problem for Europe is overvalued real effective exchange rates and extremely high debt.” Greece, Portugal, Ireland, Italy and Spain have built up very large unsustainable net external debts in a currency they cannot print or devalue, he says. “Greece and Portugal are arguably insolvent, while Spain and Italy are likely illiquid.” Roger Bootle agrees, pointing out that the peripheral countries suffer from unsustainable debt burdens, some in the public, some in the private sectors, and a crippling loss of competitiveness because of high costs and prices. “The attempt to regain competitiveness and work down the debt burden through austerity alone is bound to fail” as the constant pushing down of wages and prices reduces demand and actually increases the real value of debt. Tepper points out that what the architects of the euro have created is a modern day gold standard which forces adjustment in real prices and wages instead of exchange rates. And the burden of this adjustment always falls on the weaker countries. So long as periphery countries stay in the euro, they will bear the burdens of adjustment and be condemned to contrac-
tion or low growth. Even if countries default, they will still suffer from impossibly overvalued exchange rates. The conclusion is simple: “Only exiting the euro can restore competitiveness, rebalance Europe and create growth.” But can it be done? Tepper argues that there are plenty of precedents, few of them disastrous. “During the past century 69 countries have exited currency areas with little downward economic volatility,” he says, before looking at the examples of Austria Hungary (1919), India and Pakistan (1947), Pakistan and Bangladesh (1971), the USSR (1992–95) and Czechoslovakia (1992–93). From these cases he concludes that while the mechanics of currency break-ups are complicated, they are perfectly feasible. And he notes that the dire predictions over the years for the consequences of emerging market defaults and devaluations (Asia 1997, Russia 1998, Argentina 2002, Iceland 2008) did not prove accurate; instead countries experienced two to four quarters of contraction followed by years of high GDP growth. In the case of the eurozone, Tepper says that fears of disaster are similarly misplaced; markets have already moved to discount the deteriorating situation and the withdrawal of several countries would merely unwind existing imbalances and crystallise losses that are already present. Defaults and debt rescheduling are inevitable and should be embraced. Coupled with devaluations through exiting the euro, they would give the European periphery de-levered balance sheets and restored competitiveness and allow it to grow again quickly. The only hope for growth for the periphery, he concludes, is “exit the euro, default and devalue.” What’s that sound coming from Athens, Madrid, Rome, Lisbon and Dublin? Why if it isn’t Engelbert Humperdinck, still sprightly after all these years: ‘Please release me, let me go/ n Release me so I can grow again’. Industry Europe 3
Editor Peter Mercer
Production Manager Kamila Kajtoch
Deputy Editor Victoria Hattersley
Administration Anna Chamberlain Amber Dawson Kayleigh Harvey
Profile Writers Abigail Saltmarsh Felicity Landon Piotr Sadowski Emma-Jane Batey Barbara Rossi Philip Yorke Joseph Altham
Art Administration Tania Balderson Advertising Manager Andrew Briggs Sector Managers Matthew Howe Eniko Kovacs Milada Preslova Massimo Ragazzo Jesse Roberts Helen Leisi Mac McCarthy Anthony McClintock Ben Snowing Kevin Gambrill Stephen Moore Richard Thomas Lisa Ackroyd John Cliff Mauro Berini Martin Gisborne
Art Director Gareth Harrey Art Editor Rob Czerwinski Designers Leon Esterhuizen Paul Abbott Claire Bidle Web Development Neil Robertson IT Support Jack Everson
CONTENTS Comment 1 4 5
Opinion Release mechanism Bill Jamieson Why has the euro not sunk? James Srodes Disappointed Democrats
Automotive Industry 6
Europe’s premium puzzle
Volume brands caught in squeeze
Automotive news The latest from the industry Electric illusions Volvo warns on green targets
News 14 16 18 19 20
Winning business New orders and contracts Linking up Combining strengths Moving on Relocations and expansions Industry people Appointments Technology spotlight Advances in technology
Reports 21 22
Focus on France Ian Sparks reports from Paris Focus on Germany Allan Hall reports from Berlin
Chemicals Industry Europe Alkmaar House, Alkmaar Way, Norwich, Norfolk, NR6 6BF, United Kingdom Tel: +44 (0)1603 414444 Fax: +44 (0)1603 779850 Email: firstname.lastname@example.org email@example.com Web: www.industryeurope.net
© Industry Europe 2012 No part of this publication may be reproduced in any form for any purpose, other than short sections for the purpose of review, without prior consent of the publisher. POSITIVE PUBLICATIONS
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4 Industry Europe
Speciality chemicals SKW Diversification success VRV
Consumer 32 37
Nature’s beauty secrets Oriflame Cosmetics Leading by listening Godrej Consumer Products
Food & Drink 42 46
Brewed in Hungary Dreher Breweries The fresh approach to frozen food Findus
Heavy Vehicles 54 58 66 70
Machine power Lännen Tractors New sustainable horizons New Holland Innovation continues at Solaris Solaris Bus & Coach
Driving the farmer forward Weidemann
Marine 74 80 84 88 93
Saving energy and costs ABB Marine New composite horizons ABG Group Award-winning transportation services APL Supporting innovation offshore Bourbon Perfect pitch Hydra Tech
VOL 22/4 98 102 106
Above: Oriflame p32
Charting new waters I.M. Skaugen Expanding horizons Lurssen Taking wind power on board Stena Line
Materials Handling 110 114 118 121 126
Smarter material handling Atlet Heavy lifting Bolzoni Handling a worldwide reputation Italcarrelli The business of lifting Sarens Enhancing customised drive technology SEW-Eurodrive
Measurement & Control
Above: New Holland p58 Below: Hydra Tech p93
131 136 140 144
Gas control Spectron A Hungarian centre of excellence NI Hungary Under control Saia-Burgess Controls Making systems efficient Sensata Technologies
Above: Sarens p121 Below: Presezzi Extrusion p157
Metalworking 148 154 157 166 172 176
Leading the world in sustainable steel production Arcelor Mittal A constant commitment to progress Eduard Kronenberg
Pressing ahead Presezzi Extrusion Optimising power-plant efficiency Hamon Group The extrusion solution ProfilGruppen The appeal of steel Ruukki
Below: Atlet p110
180 184 188 192
Putting a new gloss on sales Albéa Leadership strengthened with extraordinary performance Subor Perfecting polyamide yarns Xentrys Pipes of perfection Pipelife
Also in this issue... 197 200 204 208 211 218 224 228 232 236 240
Navigating the future Avinor Solutions for sustainable productivity
Above: Pipelife p192 Below: Sabaf Group p218
Renewable power generation Babcock & Wilcox The world’s coolest controls Daikin Visibly superior Fuyao Innovation with a conscience Sabaf Group Clean and green Nilfisk-Advance The science of success Sanofi Moving forward Stöcklin Logistik New era in medical diagnostics 77 Elektronika Mineral wealth Kaolin Industry Europe 5
Executive Editor of The Scotsman
Why has the euro not sunk? By all conventional measures the euro is obviously over-valued. So what’s keeping it up?
here was a time, not all that long ago, when countries with debt and deficit problems or economic contraction (or both) experienced a fall in their exchange rate. This worked to make exports more attractively priced, encourage growth, reduce unemployment and boost tax revenues. The risk, of course, was inflation. But interest rates were raised to keep the lid on domestic demand: contradictory policies, it would seem, but a combination that worked to buy time for structural reforms to improve productivity and competitiveness. Economies muddled through. Today the eurozone is wracked with recurring sovereign debt problems, austerity programmes, persistent recession and chronically high unemployment. By all measures, the euro currency should fall. Indeed, an enduring mystery for some is why the euro has not collapsed long before now. If you are exporting into the eurozone, an orthodox currency devaluation would not be good news, working to raise the cost of imported product to local buyers while improving the price competitiveness of eurozone exports. But it could prove a price worth paying if the end result is a stabilisation of eurozone debt and deficits and improvement in the underlying economies, boosting confidence and investment. So why has the euro not sunk long before now? Looking at the big picture, the problem is that the United States has been pursuing, in effect, a policy of aggressive devaluation. It has allowed its budget deficit and debt to let rip. It has resorted to central bank monetary easing. And it has slashed interest rates on its sovereign bonds. There’s not much of a case, on this perspective, to buy the dollar at all. But the alternatives (in paper currency) are no better. The result, from a euro perspective, 6 Industry Europe
is that the dollar is a difficult currency to be weak against: the euro looks stronger than its fundamentals would merit because other countries are also, through QE, writing an assisted suicide prescription for their own currencies. Little wonder gold has had such a run. Within the eurozone itself, there is, of course, strenuous resistance from Germany, its economically most powerful member, to tolerate a devaluation against other currencies that would work to raise the cost of imported raw materials and thus inflation. Germany has never been in much of a mood to help weaker members of the eurozone struggling with an exchange rate that is far too high for their domestic economies now mired in recession – their fault for running huge welfare programmes without the economic wherewithal to finance them. Thus the euro crisis merry-go-round continues: weak eurozone economies cannot recover, their debt and deficit problems persist, and yet more austerity measures are embarked upon – aggravating the very problem they are supposed to rectify.
Pain in Spain Alarm bells have once again begun to ring across the eurozone. This is because the massive offer by the European Central Bank of more than €1 trillion of cheap money to commercial banks to enable them to buy the bonds of their stricken national governments cannot of itself lift economies out of recession. Spain is a classic example. Its descent into recession has meant that the 2011 budget deficit hit 8.5 per cent of GDP against the 6 per cent target, rendering the planned 2012 deficit of 4.4 per cent in the words of HSBC economist Janet Henry, “completely unachievable.” The new compromise target of 5.3 per cent looks barely
less ambitious given its reliance on curbing the 17 autonomous regional governments. The result is an absolute mess. It does no favours for German exporters unable to sell their Audis to their crisis-stricken euro neighbours, while there are few independent buyers of Spanish government debt other than of course the commercial banks artificially puffed up with that cheap 1 per cent LTRO money from the ECB. Simple solution? Spain applies to the EU for a bail-out. Unfortunately, the bail-out kitty is just not big enough to meet Spanish government needs and Germany – already alarmed at the bail-outs for Greece, Portugal and Ireland – would find calls to expand the eurozone bail-out fund even further to meet the needs of Spain intolerable. By any conventional measure, the euro should by now be much lower than it is. But here is the greatest mystery of all: eurozone prime ministers, finance ministers and EU policymakers are determined to defend the euro to the last ditch. It is, in their view, the single greatest construct in the drive to ‘ever closer union’ – the overriding purpose of the European project. An unravelling of the single currency is politically unthinkable – even though it is continued membership of the euro that is deepening the crisis across Spain, Portugal, Italy and Ireland. Little wonder that some commentators have reached back to the collapse of the Roman Empire in their search for parallels. But Rome did not ‘collapse’ in the sense we understand today. In fact, the historical analogy may prove even more depressing: Rome did not so much collapse as suffer a withering loss of power that extended for generations before the final overthrow of the puppet emperor Romulus Augustus in 476. By then, the power and prestige of the Eternal City had been utterly hollowed out. There may be worse parallels, but not many. n
Veteran commentator on Washington & Wall Street
Disappointed Democrats Could it be that Barack Obama faces more problems with his own party base than he will from Mitt Romney?
ut aside the news media stereotypes about race and political party membership and concentrate for a moment on what three years of the Obama presidency have actually produced in the way of policy initiatives. Not only is one hard pressed to suggest how Governor Romney would have done differently, but there is growing unease among the president’s own core constituencies. Although the question is not being phrased quite so bluntly in the mainstream US media, it remains one of the frustrations of the Romney campaign that they cannot set out a clear distinction between what their candidate would do as president that is so very much different from what Mr Obama is doing. Meanwhile Mr Obama’s opinion poll approval rating remains stuck below 50 per cent, in large part because both independent voters and Democratic Party activists are disenchanted with what their man has done in his first term. Not that they are inclined to switch to Mr Romney; it’s just that they are frustrated with the way things have gone. By any fair standard the economic recovery that Mr Obama can point to as part of his record can be summed up by two words: elusive and exclusive. Overall economic growth, while better than the two previous years, remains at or below a three per cent annual expansion rate that still leaves nearly 13 million adults out of work.
The most favourable headlines are being devoted to Wall Street’s remarkable burst of prosperity – share prices up 22 per cent on a yearly basis and the overall corporate earnings of the 500 corporations represented in the Standard and Poor’s index are up 23 per cent over their pre-recession high point hit in 2007. And the White House, despite some embarrassments over bad bets on speculative high-tech energy ventures, can point with pride to the return of a number of US manufacturing companies who have begun to locate factories back in America rather than abroad. Boeing will build a new plant in South Carolina; Caterpillar has sited a new plant in Georgia while Intel will open its largest new factory in Oregon instead of somewhere in Asia. Yet three of Mr Obama’s Democratic Party core constituencies are very unhappy indeed. Environmentalists, who often contribute both manpower and money to the party, are miffed at the president for talking a great deal about boosting ‘alternative’ energy production from wind, solar and other nonhydrocarbon sources, even as he has renewed permits for the big petroleum giants to resume drilling offshore for oil.
Union blues The more disaffected however are the big labour unions which feel betrayed by the president on a number of fronts. When the
government bailed out Chrysler and General Motors three years ago, one of the neat manoeuvres made by the White House was to transform the auto worker unions into shareholders in those companies. This abruptly ended more than a hundred years of adversarial relations between the car makers and their unions – any wage demands granted the unions now would come out of their pension schemes. It took a while for that to sink in. Union leaders worry that their share of the private sector workforce is a microscopic 6.9 per cent. Worse, much of the gain in new jobs, even in newly created jobs in old manufacturing sectors, is going to non-union workers at wage levels that are compressed well below what they had been even five years ago. According to one study, US labour compensation is now at a 50-year low relative to both company sales and US gross domestic product. One of the reasons Caterpillar can open a new factory in America is the fact that traditional wages for such manufacturing workers had been 28 dollars an hour, but the earth moving giant will now pay 12 dollars an hour. Such a wage squeeze goes right to the bottom line of the corporate profits report. In the boom year of 2007, American manufacturers could generate an average of $378,000 for every worker on payroll; last year that output number was $420,000 per worker and none of it went to increased wages.
Nor is the wage squeeze confined just to the manufacturing sector. Construction – both home and infrastructure – remains moribund with a 17 per cent jobless rate among its skilled workers. The jobs that have been created recently are almost all confined to the lowest end of the wage scale. According to one report fully 70 per cent of the jobs created in the last six months are concentrated in hotel and restaurants, healthcare, retail trade and temporary office support. This is a sector that normally employs just 29 per cent of the workforce but now is the main source of new jobs. All at hourly wage levels that are distinctly sub-par. This leaves Mr Obama’s other core constituency – AfricanAmericans and Latino voters – in a double bind. They are the principle victims of the wage squeeze. Worse, the home mortgages many of them carry continue to deteriorate as house prices are forecast to decline by other 3.7 per cent this year. Any action to relieve the burden many of these families face with debts that exceed the value of their houses will not be forthcoming any time soon. That means a fresh round of foreclosures will continue to test the loyalty of the president’s most devoted supporters. Much can happen between now and November but there is not much Mr Obama can do to reverse the impression that he is something less than a traditional n Democratic Party stalwart. Industry Europe 7
EUROPE’S PREMIUM PUZZLE
Europe’s mainstream auto manufacturers are being squeezed between premium and ‘value’ brands. Tony Lewin reports.
Range Rover Evoque – high-fashion style sets a new premium trend
does not take a trained statistician to spot a pretty dramatic trend in the make-up of European car sales, be they the returns for individual months or for the whole of 2011. Paradoxically, despite the background of continuing economic stress, high-status premium brands are enjoying record profits and their best-ever sales; meanwhile their mainstream counterparts, lurching from one calamity to the next, are facing an existential crisis. At the same time, Asian-badged interlopers are snapping at their heels, stealing customers from those familiar mid-market brands and further undermining their viability. Outwardly, car industry chiefs navigated the January results season with a sense of relief that, rather than crashing alarmingly, the overall sales total had slipped by little more than 1 per cent compared with the previous year – a year whose figures had been artificially flattered by the last of the scrappage incentives then in force in many countries. Inside, however, many CEOs knew how much they had had to spend
8 Industry Europe
Skoda Fabia – unpretentious quality is a winning recipe in tough times
to lure reluctant customers to their products; not only was such a level unsustainably high but, more importantly still, an attack was coming from below, too. This clear new trend may come to mark a historic turning point in the European car buying preferences. A couple of starkly contrasting sets of results will make this clear. Despite the best efforts of costly promotion campaigns, sales of Renaults, Peugeots and Citroens fell by over 8 per cent in 2011, as did those of Toyota. Honda and Mazda plunged even more alarmingly, losing between a fifth and a quarter of their customers. For Fiat it was a giddy-making 17 per cent slide. Yet, over the same space of time, and with the same worrying messages coming from the European economy, sales of Audis and BMWs in Europe shot up by 9 and 5 per cent respectively. Mercedes grew, too, as did Toyota’s premium label Lexus. Something is clearly happening here, yet the too-hasty and perhaps counter-intuitive conclusion that these results herald a shift from small cars into big and prestigious ones
would also be wrong. Among the industry’s most spectacular gainers have been the Koreans, with their mainly low-cost focused Hyundai and Kia brands, both up almost 12 per cent; also up by a similar proportion were Volvo and Nissan. Mini, which makes no big cars at all, boosted its sales by nearly one fifth. Market leader Volkswagen, which makes cars of all sizes, was also able to increase its sales sharply – yet Ford and General Motors, in the shape of Opel Vauxhall, took knocks of 3 and 2 per cent respectively, despite introducing fresh models. Two parallel phenomena appear to be in evidence here, and both are working to the detriment of the classic middle market volume sellers, as personified by models such as the Opel Astra, Renault Mégane and Peugeot 307. On the one hand there is a distinct move away from the familiar big brands towards premium labels such as BMW and Audi; this shift is an entirely understandable one in troubled times as buyers seek the security and lasting appeal of a blue-chip marque in preference
to the more superficial showroom gloss of a mainstream label. What is more, the momentum of this shift is set to increase as premium makers such as BMW and Lexus downsize – but not necessarily down-price or simplify – their offerings to appeal to buyers seeking cars that combine compactness, sophistication and low fuel consumption. Audi has already proved this point with its compact A1, the size of a Polo but clearly seen as a premium product; BMW, already successful in this sphere with its Mini brand, will double its representation with new, smaller BMW-branded models overlapping with the top Minis in size. Even Jaguar is said to be toying with the idea of a car the size of a Golf.
New phenomenon There is nothing new about the steady advance of the premium brands into the smaller segments of the market – it has been
gaining pace for almost a decade. What is new, however, is the second clearly discernible trend – the advance of the ‘value’ brands, most notably Renault’s Dacia range and Kia and Hyundai from Korea. Though its performance in EU27 markets softened slightly in 2011, Dacia has been a big success in eastern Europe, Russia and other markets on the EU’s periphery. The brand’s unexpectedly high margins have surprised many in the industry and have been an important factor in supporting the core Renault operation as it faltered in the market. Dacia’s temptingly low prices have generally been seen as drawing in buyers who would otherwise have bought a used car: the impact on sales of new models from mainstream brands has thus remained relatively limited. The same cannot be said for Hyundai and Kia, two of 2011’s most dramatic risers. The two brands have long since deserted their
original cheap-and-cheerful identity: now, with decent European-focused engineering, attractive styling from designers lured from top German companies and with manufacturing sites in Slovakia and the Czech Republic, Kia and Hyundai models are appealing to buyers across the board, scoring well in comparison tests and reliability surveys.
What makes the difference? The stark contrasts in the fates of superficially comparable products prompt the obvious question: what are the differences that determine whether a brand – or a model – is a success or a failure? Most automakers know the answer, but few are capable of coming up with the goods. To succeed, it helps to be premium, in other words to appeal to customers in search of quality and easily recognisable status: here, Audi and BMW are masterful, but in the past
Industry Europe 9
Nissan Juke – funky urban crossover that's a big hit in Europe
Mini – premium flavour is a hit with buyers – despite downturn
others such as Jaguar and Cadillac have come unstuck by trying to apply token premium touches to modest products. It helps, too, to offer the consumer a product with a clear proposition, something he or she can believe in. Volkswagen is a case in point: it enjoys the unrivalled respect – and thus healthy margins – as a big-numbers producer of quality cars that stand above the petty squabbles between other brands. That’s also why Skoda, with its solid, unpretentious family cars built from VW group components, has been such a brilliant success: these models appeal to buyers’ senses of quality and integrity, eschewing passing fashion. The same does not always apply to Skoda’s Spanish sister brand SEAT, even though its models mix the same ingredients and, in principle at least, are built to the same standard of quality. It is tempting to attribute the success of Kia and Hyundai to a parallel but equally powerful motivation – the belief that consumers feel they are beating the system and getting better value by turning their backs on the mainstream brands. It will be interesting to see how this thinking evolves as the Korean brands become more firmly established in Europe. The third and perhaps most easily understood differentiator is innovation – either in engineering or, more frequently, in style. Why are the UK factories of Nissan working round the clock to satisfy consumer demand while other carmakers’ plants are laying off staff? Because Nissan’s Qashqai, a family car with the high-riding poise of a stylish sportutility vehicle, caught the European zeitgeist perfectly, and its even more extreme Juke, a fashionably tough-looking urban runabout, is drawing in younger buyers. Significantly, one
of the briefs given to the Juke’s design team was for the car to be noticed even by people who weren’t looking. The new Range Rover Evoque is arguably another style phenomenon, though at a much more premium position in the market, and BMW’s Mini brand has successfully exploited its stand-out looks for more than a decade. The track record of technical innovation in promoting consumer demand is less clear; engineering cleverness per se is not much of a draw unless it is linked to a real-life customer benefit such as the fuel economy of Toyota’s hybrid Prius. Citroen, for most of its history a prolific though financially shaky technical innovator, has recently found it more beneficial to invest in style than science: its DS line of high-fashion derivatives of standard models have been successful in commanding a semi-premium image and the healthier transaction prices that follow.
Peugeot 208 – the small car whose success is vital for PSA
Audi A1 – VW Polo underpinnings, premium prices
10 Industry Europe
Buy, hold or sell? So, where does all this leave the so-called squeezed middle, the familiar brand names trapped between the rise of the new value brands and the downward march of the premium makers? A favourite game played by big-name financial analysts at automotive conferences is a quick-fire ‘buy, hold, sell’ assessment of key auto industry players. Extending the focus to a global one, and with Volkswagen, Toyota and General Motors all locking horns as they vie for the title of world sales leader, it is clear that the second division players could be caught in the crossfire and that accurate predictions are tricky. The list of obvious ‘buy’ stocks is fast contracting. Already, Saab has become a casualty,
profit is still eluding Ford and GM’s European operations, and hard-pressed Peugeot, having cancelled its programme for a low-cost car, badly needs its new 208 hatchback to succeed in order to stem the decline in the group’s sales. Renault, likewise, is betting heavily on its upcoming fourth generation Clio to bring showroom traffic, and its big gamble on electric cars risks wobbling as consumer interest fails to ignite. The gamble taken by Fiat with its virtual takeover of Detroit’s Chrysler is bigger still: opinion is evenly divided on whether this will be the making or the breaking of the oftentroubled Italian carmaker, now heavily dependent on its fashionable 500 city car. Against this background, and with the honourable exception of Nissan, the brands based in Japan are missing a major opportunity by going largely unnoticed; a senior Honda Europe executive recently admitted the company had made a serious mistake in delaying investment in new models. It would be a brave individual indeed who elected to invest in a business facing such an uncertain future. Nevertheless, it is still the German producers that stand out as the least risky propositions. The VW family of brands is on a seemingly unstoppable growth path, Mercedes is vowing to regain its habitual leadership of the premium segment and BMW is investing heavily in an entirely new process of lightweight construction that could be the key to the future viability of electric cars. And, finally, there is the mighty Toyota, now wiser and better organised after its well publicised recall campaigns of 2010: this is a huge company, traditionally cautious and slow to react but always willing to listen. n It would be unwise to bet against it. Kia Sportage – stylish design succeeds in a slowing market
New developments in the Automotive industry
Rolls-Royce posts record sales for 2011 R
olls-Royce Motor Cars has revealed record sales results for 2011. 3538 cars were sold globally during the year, a 31% increase on the 2010 total of 2711 cars. The figure represents the best sales result in the company’s 107-year history; the previous record of 3347 cars having been set in 1978 during the Silver Shadow II era. “We had an outstanding year in 2011,” said Torsten Müller-Ötvös, chief executive officer, Rolls-Royce Motor Cars. “Our business is in excellent shape. We are developing our dealer network, moving into new markets like South America, expanding our manufacturing operation in West Sussex to meet global demand and have plans to develop our product range.” Visit: www.rolls-roycemotorcars.com
New Renault-Nissan plant in Tangier inaugurated
February His Majesty King Mohammed VI inaugurated the new Renault-Nissan Alliance plant in Tangier, Morocco. Production at the Tangier plant will begin with two new Entry models: the new family car, Lodgy, and a small van which will also be available in passenger car form. In addition to permitting higher production volumes, the new factory will enable the Entry range to expand, along with the models manufactured at the existing Pitesti (Romania) and SOMACA (Casablanca, Morocco) plants which are currently running to maximum capacity. Visit: www.renault.com
Lamborghini increases deliveries in 2011
utomobili Lamborghini has completed the Fiscal Year 2011 with a double digit increase in deliveries and turnover. Global deliveries increased by 300 units from 1302 up to 1602. This is an increase of 23% compared to the previous year. Turnover increased from €271 million to €322 million (plus 19%)
GM and PSA Peugeot Citroën global alliance
eneral Motors and PSA Peugeot Citroën have revealed details of their global strategic alliance. The alliance is structured around two main pillars: the sharing of vehicle platforms, components and modules; and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers,
with combined annual purchasing volumes of approximately $125 billion. As part of the agreement, GM plans to acquire a 7% equity stake in PSA Peugeot Citroën, making it the second largest shareholder behind the Peugeot Family Group. Visit: www.psa-peugeot-citroen.com and www.gm.com
Mister Mercedes stays for another three years
he board of management of Daimler AG has extended the contract of Dr Joachim Schmidt as executive vice-president sales and marketing, Mercedes-Benz Cars until 30 September 2015. Dr Dieter Zetsche, CEO of Daimler AG and head of Mercedes-Benz Cars: “Dr Joachim Schmidt has realigned sales and marketing and thus set the course for sustainable growth in sales. He represents the Mercedes-Benz brand like no one else. We are delighted that he joins in the same period. The core growth drivers included further increase in deliveries of the highest selling Lamborghini of all time, the Lamborghini Gallardo, and the introduction of the new Lamborghini Aventador LP 700-4 flagship model. The United States and China confirmed their status as the largest single markets for Lamborghini, followed by the UK, Germany, Italy and the Middle East.
our management team for another three years.” Dr Joachim Schmidt has been a member of the board of Mercedes-Benz Cars sales and marketing, since October 2009. In this function, he is also responsible for the management of global and national affiliates as well as of the ‘Sales & Marketing Executive Committee’, which consists of sales and marketing heads of all automotive businesses. Visit: www.mercedesbenz.com “We look back onto 2011 with some satisfaction, as a year of our return to growing deliveries. The year was hallmarked by renewed interest in the Gallardo range, but especially by the triumphant arrival of the Aventendor,” comments Stephen Winkelmann, president and CEO of Automobili Lamborghini. Visit: www.lamborghini.com Industry Europe 11
New developments in the Automotive industry
Jaguar Land Rover and Chery Automobile Company Ltd to form joint venture company in China
aguar Land Rover (JLR) and Chery Automobile Company Ltd have reached agreement on a proposed joint venture in China. The agreement follows extensive talks between JLR and Chery on establishing an equal partnership company. The scope of the proposed joint venture (JV) would include manufacture of JLR- and JV-branded vehicles; establishment of a research and development facility; engine manufacture; and sale of vehicles produced by the JV company.
In a joint statement, Dr Ralf Speth, JLR chief executive officer, and Mr Yin Tongyao, chairman and chief executive officer of Chery Automobile Company Ltd, said: “Working together on this proposed joint venture is an exciting prospect for both JLR and Chery. Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realise the potential of these iconic brands in the world’s largest car market. Visit: www.jaguarlandrover.com
Nissan ups investment in Indonesia
New record for Audi deliveries in China
issan CEO Carlos Ghosn has announced a ramp up of investment in Indonesia, adding $400 million to increase production capacity and sales. This follows $313 million pledged last July, part of plans to triple sales growth in the ASEAN region. “In my opinion, this is just a step towards a bigger future. Because it’s a rich country, it has a very big population and we have a steady growth,” said Ghosn. “There is no doubt in my mind that this is going to be one of the engines of growth of the world, after the BRICS would have reached their plateau.” With economic growth exceeding 6% last year and an expanding middle class, Nissan has high expectations for Indonesia, which overtook Thailand as the largest car market in ASEAN. Visit: www.nissan-global.com
Honda to build new production plant in Indonesia
Honda Prospect Motor (HPM), Honda’s automobile manufacturing and sales joint venture in Indonesia, has announced plans to build a new automobile production plant with annual production capacity of 120,000 units. The plant will be located within the property of the
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udi set a new record on the Chinese market in February. With a total of 31,352 vehicles delivered in China and Hong Kong, the company increased sales by 66% over February 2011. This marks the first time that Audi has topped the 30,000 unit mark in one month. This growth was driven in particular by the Audi A4 L produced in Changchun with 8564 deliveries (up 77%), and by the Audi Q5, which posted an increase of 97% to 7480 units delivered. Sales of the Audi A6 L also increased 25% to 9371 units despite the impending model change. Visit: www.audi.com
11 Millionth Opel Meriva produced at Figueruelas Plant
he President of Aragon’s government, Luisa Fernanda Rudi, accompanied by GM Spain’s managing director, Antonio Cobo, have driven from the assembly line of the Opel/Vauxhall factory in an Opel Meriva which is the 11 millionth unit manufactured in this plant. The 11 millionth Meriva will go to the Italian market, a highly successful market for the Meriva. Since the launch of the first generation in 2003, Meriva has traditionally occupied the first or second place in its segment in Spain. Meriva is the number one in terms of quality in its segment according to the independent German technical quality watchdog, ‘TÜV’, and also the leader when it comes to flexibility with its exclusive FlexFix bicycle carrier which is unique to the industry. Visit: www.gm.com existing HPM plant in the Karawang Industrial Park in a suburb of Jakarta. Combined with the current capacity of 60,000 units, HPM’s total annual production capacity will be 180,000 units. The new plant, an investment of approximately 3.1 trillion Indonesian rupiah (approximately 27 billion yen), is scheduled to become operational in 2014.
HPM is planning to produce small-sized vehicles such as the BRIO developed for Asian markets. Based on its vision for the continuing expansion of the small vehicle market in Indonesia and an increase in exports to ASEAN countries, Honda will further enhance its production capacity and product line-up in Indonesia. Visit: www.honda.com
Volvo launches new V40
tefan Jacoby, president and CEO of Volvo Car Corporation, made a distinctive statement about the company’s sharpened competitive edge when he revealed the all-new Volvo V40 at the 2012 Geneva Motor Show. “The all-new V40 will change the balance of power in the C-segment. Its class-leading driving dynamics, fuel efficiency and full
deck of safety and support features make it outstanding in the class,” he said. The world-first Pedestrian Airbag Technology stands out among the new features. The pedestrian airbag lifts the hood when inflating, softening up the hood and cushioning parts of the A-pillars and windscreen area. Visit: www.volvocars.com
hubject GmbH joint venture set up
ŠKODA expands in Russia
central element for the increasing expansion of electromobility in Germany is taking shape. To enable all future users of electromobility to access a nationwide charging infrastructure comfortably and securely, BMW Group, Bosch, Daimler, EnBW, RWE and Siemens have formed a joint venture. Known as ‘hubject GmbH’, the new company is based in Berlin. It considers itself a pioneer of electromobility. Its purpose is to develop and operate a data platform that will create an integrated charging infrastructure for mobility and vehicle providers. Visit: www.hubject.com
ooperation with its partner GAZ is strengthening the position of the Czech brand on the Russian market. Besides the ongoing manufacture of ŠKODA vehicles at the Russian plant of the Volkswagen Group in Kaluga, the production of other ŠKODA vehicles is currently being increased by its Russian partner GAZ in Nizhny Novgorod. “We see great growth potential for ŠKODA in Russia, which is why we need additional production capacities,” Prof. Dr. h. c. Winfried Vahland, the chairman of the board of ŠKODA, said at the occasion of the opening of a new training centre for its Russian partner GAZ.
In the first month of the year, ŠKODA’s sales figures in Russia have already risen 42% and are thus increasing twice as fast as the overall car market. Visit: www.skoda-auto.com
Volkswagen and DRB-HICOM start vehicle production in Malaysia
he Volkswagen Group Malaysia and its partner DRB-HICOM have officially started production of the Volkswagen Passat on a SKD basis in Pekan. In the presence of the Prime Minister of Malaysia, Datoë Sri Najib Razak, and a large number of guests from politics and industry, Volkswagen and DRB-HICOM also laid the foundation stone for a new production hall at the plant in Pekan. In the second stage, two additional models, the Volkswagen Jetta and Polo, are to be produced here on a CKD basis for the Malaysian market. Dr Michael Macht, member of the board of management of Volkswagen Aktiengesellschaft with responsibility for group production said: “Today’s start of production is a key step in the long-term development of the Malaysian automobile market. By expanding its activities in Malaysia, the Volkswagen Group will significantly reinforce its position in this key market.” Visit: vwww.volkswagenag.com
SEAT grows in Morocco
EAT is enlarging its footprint in Morocco. The Spanish car manufacturer ended 2011 with a growth in registrations of 28%, 18 points more than the local market. SEAT delivered more than 1000 cars in the country, a record result for the Moroccan market, something that gives the brand a market share of slightly more than 1% in
a market where overall sales are just short of 100,000 units. Moroccan buyers prefer the SEAT Ibiza, followed by the Leon. The popularity of SEAT products has led the company to consolidate its presence in Morocco with the forthcoming opening of another two dealerships – one in Casablanca and another in Marrakech. Visit: www.seat.com Industry Europe 13
ELECTRIC ILLUSIONS Volvo Car Corporation has warned that EU targets for cutting carbon dioxide emissions are being jeopardised by the absence of harmonised incentives to consumers.
tefan Jacoby, president and CEO of Volvo Car Corporation, says that jobs, investment and competitiveness in the European car industry could be threatened by the European Commission’s approach towards vehicle electrification. “Volvo Car Corporation urges the EU to coordinate incentives whilst supporting research and development. The European automotive industry risks losing the present technological leadership if this doesn’t happen,” he said. “In the long-term, this jeopardises our industry’s competitiveness and European jobs.” Volvo Car Corporation has also raised concerns about the viability of the European Commission’s White Paper on Transport, 14 Industry Europe
which states that greenhouse gas emissions in the transport sector will have to be cut by at least 60 per cent by 2050 to achieve the EU’s climate change goals. The paper also calls for the use of conventionally fuelled cars in cities to be halved by 2030 and then completely phased out by 2050. “European car manufacturers are facing a very difficult challenge when CO2 legislations requiring electrified cars are implemented without initiatives that make these cars affordable for a growing number of consumers,” said Stefan Jacoby. In 2011 fewer than 50,000 battery electric vehicles were sold in the world, equivalent to a market share of about 0.1 per cent. The figure suggests that the car market will continue
to be dominated by traditional combustionengine models for the foreseeable future. “It is far too early to dismiss the conventional diesel and petrol power trains. We continuously improve their efficiency. In the last two years Volvo has brought CO2 emissions from our diesel and petrol model ranges down by 13 per cent,” said Jacoby.
Unrealistic predictions Whilst there has been no official target set for the implementation of electrification within the EU, industry studies indicate that several member states are overestimating the speed at which electrified vehicles are being introduced. The European Commission’s own study, ‘A European Strategy on Clean and Energy
Efficient Vehicles’, forecasts only 3-4 per cent market share for battery electric vehicles and plug-in hybrids by 2020, with a rise towards 30 per cent expected by 2030. “Both predictions are unrealistic. Considering the lack of coordinated governmental incentives and the high battery system costs, the market share for electrified vehicles will struggle to pass the one per cent mark by 2020,” said Stefan Jacoby. One main factor preventing a rapid increase of electric vehicles on the roads is that the cost for the electrification technology is not being reduced fast enough. “The automotive industry’s cost reduction efforts can’t fully compensate for the additional battery system cost. Pan-European subsidies and incentives are needed to support a successful market introduction. Unfortunately such necessary initiatives are jeopardised by the current debt crisis,” said Stefan Jacoby.
Developing the technology Nonetheless, Volvo Car Corporation is determined to be a leader in auto electrification. Deliveries of its C30 Electric car to customers in Europe have already begun. With a range of up to 150km, the Volvo C30 Electric has a 24 kWh battery pack, of which 22.7 kWh is used to power the car. The batteries (2x140 kg) are fitted both where the fuel tank is normally located and centrally in the vehicle. This means that the luggage space remains intact. A 111 hp electric motor offers 220 Nm of torque. In addition, the car has a 400 Volt highvoltage system. The lithium-ion batteries are recharged via a regular 230 Volts power socket. The electric motor’s instant torque delivery gives the Volvo C30 Electric acceleration from
0 to 70 km/h of just 6.0 seconds. The car has a top speed of 130 km/h. “150 km is a considerably longer distance than 90 per cent of all commuters in the world cover per day. The average figure is 45 km/day. This means that the C30 Electric could be used for daily commuting,” explains Lennart Stegland, director of Volvo Cars’ Special Vehicles division. Now, 2012 has seen the technology taken another step forward with the launch of the new Volvo V60 Plug-in Hybrid. The XC60 Concept is an electric car, a highly economical hybrid and a powerful high-performance car all rolled into one. At the touch of a button, the driver decides how the available power from the combination of the high-performance gasoline engine and the electric motor is to be utilised. The front wheels of the XC60 Plug-in Hybrid Concept are powered by a fourcylinder turbocharged gasoline engine from the forthcoming VEA (Volvo Environmental Architecture) engine family. This engine produces 280 horsepower and maximum torque of 380 Nm (280 lb.-ft.). Power delivery to the wheels comes via a newly developed eightspeed automatic transmission. The rear axle of the XC60 is driven by an electric motor producing 70 horsepower. It is supplied with power from a 12 kWh lithium-ion battery pack installed under the floor of the load compartment. “The V60 Plug-in Hybrid is a great car and we have seen immense interest from the market,” says Stefan Jacoby. “However, while we have worked hard to bring the price tag below €50,000, incentives are needed to reach a broader customer base.” Volvo is now taking the next step in its electrification strategy by producing cars
with Range Extenders – electric cars that are fitted with a combustion engine to increase their range. A three-cylinder petrol engine under the rear load compartment floor is connected to a 40 kW generator that can drive the car’s electric motor when the battery is depleted. The generator can also charge the battery at the same time. The Range Extender increases the electric car’s range by up to 1000 km.
Falling behind Volvo says that electric mobility must be achieved through cooperation between the vehicle industry, governments, infrastructure providers, electric energy providers and scientific institutions. In China, for example, the government has earmarked 15 billion US Dollars to support its domestic vehicle industry’s research and development within electrification. This far exceeds the EU and the United States commitment to electrification. n Mr Stefan Jacoby, Volvo Cars’ president and chief executive officer
Industry Europe 15
New contracts and orders in industry
Strabag consortium awarded Pedemontana Skanska to construct combined heat and power plant in Sweden Lombarda motorway contract kanska has received a contract to construct a
utostrada Pedemontana SpA has awarded the contract for Lots B1, B2, C and D of the Pedemontana Lombarda motorway in northern Italy to a consortium led by European construction group STRABAG. Work on the €1.7 billion order will begin before the summer of 2012 in order to hand over the motorway in time for the Milan Universal Exposition in 2015. The order for the STRABAG consortium includes the construction of a 52km dual carriageway motorway with two or three lanes in each direction as well as 50km of spurs and connecting routes to the existing road network. The contract also comprises 50 cut-and-cover tunnels as well as two bored tunnels including the technical facilities, three bridges with a total length of 3km and an approximately 80km bicycle trail. The new motorway in the heart of Lombardy’s economic zone will connect the city of Bergamo in northern Italy with Milan’s Malpensa Airport, strengthening northern Italy’s east-west link, relieving the local roads in the north of Milan and providing a boost to the local industry. Visit: www.strabag.com
bio-fueled combined heat and power plant in Lund, Sweden. The assignment includes the ground work as well as construction of the plant. The customer is Lunds Energikoncernen AB. The contract amounts to SEK 310 million, which will be included in the order bookings of the first quarter 2012. “We are very happy to have been given the trust to construct the new combined heat- and power plant in Lund. This is an exciting project where our competence in laying the foundation as well as constructing the facility will come in use. The project also has a strong focus on sustainability, since the power plant will be fired with bio-fuels such as wood chip and straw,” says Hans Fransson, district manager, Skanska Sweden. To facilitate the deliveries of fuel the power plant will be built in connection to the railway. When the power plant is completed it will supply about 50,000 households in the area with district heating. The time of construction is estimated at about two years and construction starts in March 2012. Visit: www.skanska.com
Geldof nets contract with LBC in Port of Antwerp
eldof, the total engineering and steel construction project contractor, has won a new contract with LBC worth around €20 million. The company will build seven storage tanks for various base oils in the Port of Antwerp. The project also includes the delivery of two filling stations. The entire project will be completed by the end of the year, and will mean LBC can offer its clients increased capacity while working faster and safer with more flexibility. As well as the tank construction, Geldof will also take care of the engineering, safety, pump system and preliminary studies. “Because we are managing the entire project and coordinating
SKF receives SEK 350 million order from Vestas
KF has received an order worth around SEK 350 million from Vestas for the delivery of main shaft solutions to the Vestas V112-3.0 MW turbine. Deliveries started in 2011 and will continue into 2013. “Vestas is a very important player in the wind energy business and we have been
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the various parties involved, we will be able to deliver faster. This is where we are much stronger compared to other suppliers. We also have plenty of engineers with lots of experience in similar projects. One hundred people will be involved in the project in total,” says Reint Berghmans, project director at Geldof. This contract reinforces Geldof’s new strategy which is evolving increasingly from purely metal processing to contracting for complete EPC contracts (Engineering, Procurement and Construction management). Visit: www.geldof.be working with them for many years. Our role as the primary development partner for the V112 and our extensive knowledge and experience in wind energy have enabled us to develop a unique solution for this new turbine,” says Tom Johnstone, SKF president and CEO. “Wind energy is a key industry for the SKF Group and we continue to invest in this business by developing
new solutions to enable more cost-effective wind energy generation.” SKF provides dedicated solutions that optimise the reliability and performance of new and existing wind turbine designs. SKF main shaft solutions for the wind segment are designed to withstand axial and radial loads and operate under harsh conditions. Visit: www.skf.com
WINNINGBUSINESS NACO appointed International shipping group chooses MAN propulsion package advisor to Viracopos
panish concern Empresa Naviera Elcano, SA, the international shipping group, has placed an order for two medium-speed MAN L27/38 engines as part of a propulsion package for a new vessel. The units will be constructed at the MAN Diesel & Turbo facility in Frederikshavn, Denmark, and will power a 7000-dwt asphalt and oil products tanker to be built at Sedef Shipyard in Turkey. The 6-cylinder main engines each deliver 2040kW at 800 rpm. Elcano has chosen the engines as part of a MAN Diesel & Turbo propulsion package that also comprises an Alphatronic 2000 propulsion control system, a MAN Alpha VBS Mk 5 CP propeller, and a double-reduction gearbox with multiple PTO clutches operating at 1200kW at 1200 rpm. Characterised by its heavy-duty propulsion and manoeuvring power performance, the robust L27/38 engine series performs well over the entire
load range, offering an immediate load response and quick acceleration. The L27/38 is smokeless at idling, part-load and full-load, is optimised for hightorque layout, and emits low levels of NOx while minimising fuel-oil consumption. Visit: www.man.eu
Russian Ministry of Defence and Irkut Corporation sign SU30SM fighters contract
ussian Defence Minister Anatoly Serdyukov and president of IRKUT Corporation Alexey Fedorov have signed a contract for the delivery of Su-30SM multirole fighters for the Russian Armed Forces. IRKUT Corporation will supply 30 of these aircraft to the Defence Ministry by 2015. Anatoly Serdyukov noted that upcoming entry of the modern two-seat supermanoeuverable aircraft into the Russian Armed Forces will significantly increase the combat power of the Russian Air Force. The multirole Su-30SM fighter, designed by the Sukhoi Design Bureau, is the latest model in the Su-30MKI combat aircraft family. These
fighters, serially manufactured by the Irkutsk Aviation Plant – a branch of JSC IRKUT Corporation – are able to successfully compete in the global aircraft market. The Su-30SM two-seat supermanoeuverable aircraft is equipped with a phased antenna array radar and is capable of using the current and future high-precision weapons grade ‘air-to-air’ and ‘air-to-surface’. Besides performing military missions, the fighter could be used for training pilots for prospective multirole supermanoeuverable one-seat fighters. Visit: www.irkut.com
Bouygues Bâtiment International and partners win Zagreb Airport concession contract
national Company), have been designated by the Croatian government as the preferred bidders for the Zagreb Airport concession. The concession contract includes: financing, designing and construction of a passenger terminal which will replace the current one; and operating the entire airport for 30 years, including the runways, the current passenger terminal during the entire con-
éroports de Paris Management (a subsidiary of Aéroports de Paris), Bouygues Bâtiment International (a subsidiary of Bouygues Construction) and Viadukt (a Croatian construction company), all members of the project company Zaic (Zagreb Airport Inter-
International Airport development team
ACO Netherlands Airport Consultants, a member of the DHV Group, has successfully collaborated with a strong local and international team for the concession bid of Viracopos International Airport. Led by Brazilian contractor UTC/ Constran, the consortium will be responsible for the management and development of the airport for the next 30 years. The consortium, which includes UTC/Constran (contractor), Triunfo Participacoes (investor) and France’s Egis Avia (operator) won the concession with a bid of $2.2 billion. Viracopos Airport currently processes more than 5 million passengers annually and its traffic is expected to grow to 15 million passengers annually within the next 10 years. The current infrastructure and more specifically the terminal building will need to be modernised and expanded. Ben Hasselman, project director of the NACO team, said: “Our role was to optimise the bid and development opportunities for this airport. Since our consortium has produced the winning bid, NACO will be associated for the coming years with airport planning at Viracopos Airport.” Visit: www.naco.dhv.com
struction period, the new terminal once it is completed and future property developments. The construction works will be carried out by Bouygues Bâtiment International in conjunction with Viadukt and other acknowledged Croatian contractors. Aéroports de Paris Management will be responsible for operating and maintaining the airport. Visit: www.bouygues-construction.com Industry Europe 17
Dassault Systèmes and National Composites Centre join forces
assault Systèmes, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, and the UK National Composites Centre (NCC), have announced the signature of a partnership to create a collaborative environment where the NCC and its partners will work on tomorrow’s advanced composites products, thanks to Dassault Systèmes’ Version 6 3D Experience platform. As the first
official Associate Member, Dassault Systèmes joins other companies and enterprising academics to develop new methods and technologies to become the UK’s hub for design and rapid manufacture of high quality composite products. Inaugurated in November 2011 and located in the Bristol & Bath Science Park (UK), the NCC provides its members with a collaborative modeling and simulation environment based on Dassault
DHV and Royal Haskoning to merge
CN TETRAGEN acquires Nokia Siemens Networks’ Expedience business
ngineering consultancies DHV and Royal Haskoning are to merge. The new company will be one of Europe’s leading independent project management, engineering and consultancy service providers and will rank globally in the top 10 of independently owned, non-listed companies and top 40 overall. The intended name of the new company will be Royal Haskoning DHV. With its headquarters in Amersfoort, the Netherlands, the company’s 8000 staff will provide services from more than 100 offices in over 35 countries. Together, they deliver solutions to clients in planning & transport, delta & water technology, maritime, aviation, industry & energy and buildings. The new combination will have a turnover in excess of €700 million. Visit: www.dhv.com
Rio Tinto to sell its speciality aluminas business
io Tinto has received a binding offer for its speciality aluminas business from H.I.G. A period of exclusivity has been agreed to with H.I.G. Guy Elliott, chief financial officer of Rio Tinto said, “The potential sale is in line with our strategy of continuing to streamline our
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Systèmes’ V6 solutions to develop innovative composites products in a neutral space, with unique design-to-manufacturing user experiences. Dassault Systèmes has a longstanding leadership in providing composites solutions for sustainable innovation, addressing key challenges in industries such as aerospace, automotive, marine and energy. Visit: www.3ds.com
TETRAGEN, a privately held Spanish technology holding, has acquired Nokia Siemens Networks’ proprietary, fixed-wireless broadband business, Expedience. Under the terms of the transaction, CN TETRAGEN acquired the complete Expedience portfolio, assets and the active customer and supplier contracts. The Expedience business is not part of Nokia Siemens Networks’ mobile broadband portfolio based on widely adopted industry standards. CN TETRAGEN has in-depth knowledge of the Expedience portfolio and recognises an opportunity to provide outstanding products and services to the operators who have invested in the technology. CN TETRAGEN has set up a company called Nexpedience Networks to operate the Expedience assets. “With this acquisition, we are in a good position to ensure continuity for the manufacturing of the Expedience technology while developing a solid roadmap for its future. We are extremely committed to achieving this,” said Kiriako Vergos, chairman and CEO of CN TETRAGEN. Visit: www.nokiasiemensnetworks.com
Funkwerk AG sells Avionics GmbH subsidiary
unkwerk AG has sold all shares in Funkwerk Avionics GmbH, Waal; the subsidiary was taken over by investment and management company DREI Unternehmensbeteiligung GmbH, Lübbecke. The contract rigorously continues the strategic reorientation initiated by Funkwerk in 2011 to focus on the company’s core sectors. The aim is to concentrate primarily on growth fields with strong margins, shedding any and all peripheral sectors in order to use the company’s resources more efficiently. Funkwerk aluminium group through the divestment of non-core assets.” The specialty aluminas business is the largest integrated supplier of non-metallurgical grade aluminas with four production sites: Gardanne, La Bâthie, Beyrède in France, and Teutschenthal in Germany. It employs 730 people. Visit: www.riotinto.com
Avionics GmbH operates in the aerospace industry. Its product range includes radio equipment, emergency transmitters, navigation technology, transponders, and displays for small and light aircraft. The company is no longer part of the core business of the group’s Automotive Communication segment. The latter had been restructured as part of the group’s focusing strategy to concentrate exclusively on OEM supply for automobile and lorry manufacturers. Visit: www.funkwerk.com
LINKINGUP Leoni Group sells Leoni Studer Hard AG to Synergy Health
Lecta to take over Polyedra
eoni, the leading provider of cables and cable systems to the automotive sector and other industries, is selling its Swiss subsidiary Leoni Studer Hard AG to Synergy Health, a leading global provider of outsourced sterilisation services to the medical device market and healthcare sector. The purchase price amounts to €47.6 million. The divestiture of the company, located in Däniken, Switzerland, comprises a Gamma and an X-ray sterilisation device, both providing irradiation services to the medical device, pharmaceutical and packaging industries. All of the 35 employees will also be taken over by Synergy Health. By selling the Swiss subsidiary, Leoni Group is adjusting its irradiation services portfolio. The company will focus on the electron beam crosslinking technology and expand the related business in order to strengthen its leading position in this field in Europe. As a consequence, Leoni will continue operating all its crosslinking installations in Däniken and Bautzen (Germany), which are a vital part of its core cable production value-chain. These services will from now on be provided by Leoni Group’s subsidiary Leoni Studer AG. Visit: www.leoni.com
ecta Group, the second largest European coated wood-free manufacturer, formed by Cartiere del Garda SpA, Torraspapel SA and Condat SAS has formalised, pending approval by the European Commission, the acquisition of Italian paper merchant Polyedra, currently belonging to PaperlinX Group. With this acquisition Lecta strengthens its position in Italy, one of the main strategic markets of the Lecta Group. In Italy, Lecta has its Cartiere del Garda CWF mill and a thorough knowledge of the coated wood-free and speciality papers markets in that country. Lecta has a great deal of experience in the distribution business through its own Torraspapel activities in Spain, France, Portugal and Argentina. With the acquisition of Polyedra, Lecta reinforces its position as the leading manufacturer and distributor in southern Europe. Polyedra, one of the leading paper merchants in the Italian market, has a prestigious image in all market segments and a global national coverage with a turnover of around €260 million. Visit: www.lecta.com
Wärtsilä to acquire assets and business of MMI Boiler Management
ärtsilä has signed a contract to acquire the assets and business of MMI Boiler Management Pte Ltd, the Singapore-based company specialising in the service and maintenance of boilers for marine and industrial applications. MMI Boiler Management has its main operations in Singapore and coverage throughout South East Asia and the Pacific region. The acquisition further strengthens Wärtsilä’s boiler services offering and enhances its leading position in the global marine services market. Furthermore, it supports Wärtsilä Services’ strategy of constantly developing its offering with value-enhancing services within existing customer segments. “MMI Boiler Management’s outstanding know-how in boiler services and its excellent customer relations across its market area strongly complements Wärtsilä’s offering for boiler services. This acquisition will further enhance our competitiveness and our position as the leading provider of services to the global marine market,” says Christoph Vitzthum, group vice-president, Wärtsilä Services. MMI Boiler Management will be integrated into Wärtsilä Corporation. All employees will continue as Wärtsilä employees after the acquisition, including the current four owners. Visit: www.wartsila.com
Anton Paar acquires the Petrotest Group
nton Paar – world leader in providing high-precision measuring instruments in the field of density and concentration measurement, determination of dissolved CO2, rheology and material characterisation of surfaces – has acquired the Petrotest Group.Petrotest will now be
called ‘Petrotest GmbH, a company of Anton Paar’ and continue operations at its headquarters in Dahlewitz, near Berlin. An expansion of the premises is planned. The acquisition of the Petrotest Group represents the largest purchase in the history of Anton Paar. The new 100% subsidiary will be managed by Florian Wierzbicki, the former
commercial manager of Petrotest, and Heinz Kindlhofer, business development manager at Anton Paar. Volkmar Wierzbicki, former owner and CEO of Petrotest reports: “I am pleased that an innovative and also value-led high-tech company such as Anton Paar will be the new owner of Petrotest.” Visit: www.anton-paar.com Industry Europe 19
Relocations and expansions across Europe
Brenntag opens new head office in India B
renntag, the global leader in chemical distribution, inaugurated its new head office in Mumbai, India. This new office represents Brenntag’s continued commitment to invest in India and to ensure the company has ample room for its planned growth over the next few years. Brenntag established its presence in India in 2008 and focuses on various industry segments such as Agro, Coatings, Food & Beverage, Leather, Lubricants, Personal Care, Pharmaceuticals, Plastics & Polymers, Polyurethanes, Solvents and Textile. The new office adds to the
company’s six existing offices located in all major industrial locations in India and Brenntag’s growing presence in the Asia Pacific region, which includes more than 40 offices in 15 countries. At the inauguration of the new office, Steven Holland, CEO of Brenntag Group, said, “India is a key market in Brenntag’s global strategy. By expanding our local presence in major cities like Mumbai, we are supporting our strategy of being the leading chemical distributor in both speciality and industrial chemicals.” Visit: www.brenntag.com
ATR opens its first training centre for pilots in Africa
support the growing number of ATR aircraft in Africa and to anticipate the associated development potential, ATR, the European manufacturer of turboprop aircraft, has just opened a new training center for pilots and maintenance technicians in Johannesburg, South Africa. This is the very first training center to be opened by ATR on the African continent. The center is equipped with a Full-Flight Simulator, offering training possibilities for the ATR 42-300, ATR 42-500, ATR 72-200 and ATR 72-500 models. To operate these new facilities, ATR has formed a partnership with Comair (operator
of British Airways southern Africa and kulula. com). ATR therefore benefits from the airline’s logistics and existing equipment at O.R. Tambo International Airport in Johannesburg. Lilian Braylé, Senior Vice-president of Product Support and Services of ATR, stated: “We are happy to be working alongside Comair to meet the growing need for ATR training in Africa. By opening this new center, we will be able to offer airlines the most modern training tools, highly qualified instructors, optimum course follow-up and a local service which is already proving beneficial.” Visit: www.atraircraft.com
Stanley Black and Decker invests in new distribution centre
his new 18,000m2 distribution centre is strategically located in Damparis, in eastern France, within close proximity of a number of the group’s manufacturing plants. Its ideal placement means that delivery times for Facom and Britool Expert products will be greatly reduced. The new distribution centre was designed by global logistics specialists Gazeley and boasts
state-of-the-art facilities. The building also demonstrates Stanley Black and Decker’s commitment to the environment. The offices which adjoin the distribution warehouse have reinforced wall insulation and the hot water is provided via a solar thermal installation. A water recovery tank has also been fitted, reducing fresh water consumption by 50%.
Tony Prueitt, UK Industrial and Automotive sales director, says: “The new distribution centre has been designed to provide Facom and Britool Expert’s European customers a first-class service. Our industrial and automotive customers in the UK and Ireland will start benefitting from the new centre from April 2012.” Visit: www. stanleyblackanddecker.com
Fortum to build the world’s first industrial-scale integrated bio-oil plant
The bio-oil plant, which will be integrated with the combined heat and power production plant (CHP) in Joensuu, will produce electricity and district heat and in the future also 50,000 tonnes of bio-oil per year. The bio-oil raw materials will include forest residues and other wood based biomass. “Fortum’s CHP plant in Joensuu will gain a totally new role in the value chain as we will
not only be capable of producing electricity and heat, but also of a third product – bio-oil. Even though bio-oil will initially be used to replace liquid fossil fuels, it may in the future also be a raw material for different biochemicals or traffic fuels,” says Jouni Haikarainen vice-president, Fortum, Heat Division, Finland. Visit: www.fortum.com
ortum is to invest about €20 million in the commercialisation of new technology by building a bio-oil plant connected to the Joensuu power plant in Finland. The integrated bio-oil plant, based on fast pyrolysis technology, is the first of its kind in the world on an industrial scale.
20 Industry Europe
INDUSTRYPEOPLE Crown Paints strengthens management team
rown Paints has appointed Joe Devitt as the company’s new managing director, with former chief executive Brian Davidson assuming the role of chairman. Joe Devitt, currently group commercial director, has worked at Crown Paints for over 20 years. “Following our successful sale to Hempel last year, we have continued to grow market share against a flat market and I am looking forward to leading the business in our future growth strategy,” he commented.
New director of VW Passenger Cars Aeternum appoints Lord
ollowing the recent announcement that Chris Craft has become managing director of Porsche Cars Great Britain Ltd, it has been confirmed that Robert Hazelwood will move from his current role as director of ŠKODA UK to replace Chris as director of Volkswagen Passenger Cars. Robert joined the Volkswagen Group in November 2005 as head of group synergies, before assuming the role of director of Volkswagen Commercial Vehicles UK in May 2006. After two years with Commercial Vehicles, he moved to his current position at ŠKODA.
Cunningham as advisor to the board
eternum Capital, the infrastructure developer and renewable energy specialist, has announced the appointment of Lord Cunningham as an advisor to the board. Lord Cunningham brings a wealth of experience in both politics and industry, following a career of over 40 years spent in both Houses of Parliament and with a number of companies in the energy sector. Lord Cunningham is an industry expert who has previously advised leading chemical firms such as Albright & Wilson, Dow Chemical Co. and Hays Chemical.
Dormer raises international profile with appointment
response to increasing global demand for its solid carbide and high speed steel cutting tools, Dormer Tools International has appointed Julie Heathcote as marketing and communications coordinator. Julie said: “This role is in answer to an increased need for structured communication due to expansion in key markets, particularly in the Far East. Many end users specify Dormer, so distributors around the world are very keen to work with us.”
Change at the helm of MTU Maintenance Hannover
angenhagen-based MTU Maintenance Hannover will have a new man at the helm: Holger Sindemann (43) has been appointed its managing director & senior vice-president, effective May 1. Sindemann takes over from Dr Martin Funk (50), who has led the largest of MTU
Maintenance’s companies for almost three years and will now be pursuing new challenges. MTU Maintenance Hannover specialises in the repair and overhaul of medium- and large-scale commercial engines, among them the GE CF6-50, CF6-80C2 and GE90110/115, the Pratt & Whitney PW2000, the IAE V2500 and the CFMI CFM56-7. Industry Europe 21
Advances in technology across industry
Start-up company scoops European technology awards
new Guildford, UK-based energy solutions company, called Naked Energy, has started scooping up awards for its innovative new solar panel which generates both electricity and hot water through a unique hybrid design. The PVT (Photovoltaic Thermal) panels developed by Naked Energy are a hybridised combination of vacuum tubes with photovoltaic cells – the result is a high electrical output (stronger than standard PV panels) with consistent hot water delivery, even in mid-winter. “Because Solar PVT produces more electricity per square metre than existing PV panels, with the added benefit of providing hot water, the payback period to a homeowner or business who invests in an installation is significantly reduced,” says managing director Christophe Williams. “It’s a simple solution to reducing domestic energy bills and leaves consumers with a clear conscience as far as climate change goes. Definitely we are in a win-win situation.” Visit: www.nkedenergy.co.uk
Scientists revolutionise electron microscope
esearchers at the University of Sheffield have revolutionised the electron microscope by developing a new method which could create the highest resolution images ever seen. For over 70 years, transmission electron microscopy (TEM), which ‘looks through’ an object to see atomic features within it, has been constrained by the relatively poor lenses which are used to form the image. The new method, called electron ptychography, dispenses with the lens and instead forms the image by reconstructing the scattered electron-waves after they have passed through the sample using computers. Scientists involved in the scheme consider their findings to be a ‘first step’ in a ‘completely new epoch of electron imaging’. The process has no fundamental experimental boundaries and it is thought it will transform sub-atomic scale transmission imaging. Project leader Professor John Rodenburg, of the University of Sheffield’s Department of Electronic and Electrical Engineering, said: “To understand how material behaves, we need to know exactly where the atoms are. This approach will enable us to look at how atoms sit next to one another in a solid object as if we’re holding them in our hands.” Visit: www.shef.ac.uk/faculty/engineering
Jellyfish inspires latest ocean-powered robot A
merican researchers have created a robotic jellyfish, named Robojelly, which not only exhibits characteristics ideal to use in underwater search and rescue operations, but could, theoretically at least, never run out of energy thanks to it being fuelled by hydrogen. “To our knowledge, this is the first successful powering of an underwater robot using external hydrogen as a fuel source,” said lead author of the study Yonas Tadesse. The creators of Robojelly, from Virgina Tech, have presented their results in IOP Publishing’s journal Smart Materials and Structures. A jellyfish’s movement is down to circular muscles located on the inside of the bell – the main part of the body shaped like the top of 22 Industry Europe
an umbrella. As the muscles contract, the bell closes in on itself and ejects water to propel the jellyfish forward. After contracting, the bell relaxes and regains its original shape. This was replicated in the vehicle using commerciallyavailable shape memory alloys (SMA) – smart materials that ‘remember’ their original shape – wrapped in carbon nanotubes and coated with a platinum black powder. The robot is powered by heat-producing chemical reactions between the oxygen and hydrogen in water and the platinum on its surface. The heat given off by these reactions is transferred to the artificial muscles of the robot, causing them to transform into different shapes. “We are now researching new ways to deliver
the fuel into each segment so that each one can be controlled individually. This should allow the robot to be controlled and moved in different directions,” said Tadesse Visit: www.http://ioppublishing.org
France Ian Sparks reports from Paris on the fall-out from the nuclear argument – and from the Socialists’ tax plans.
rance’s presidential election battleground is fast turning into a nuclear warzone for Nicolas Sarkozy as his support for the country’s atomic energy industry threatens a meltdown of his already flagging campaign. The French leader has been attacking his socialist rival Francois Hollande for months over a deal with the Green Party to reduce France’s dependency on nuclear power from 80 per cent to 50 per cent if he wins the election. Sarkozy has insisted he will maintain France’s position as the world’s most nuclear-dependent nation if he is returned to office on 6 May, and has visited a string of nuclear plants to pose beside workers in wearing overalls and hard hats. But in his determination to boost his nuclear credentials, he ultimately exposed himself to nationwide ridicule at an election rally in early April. In a bid to reassure the French people that nuclear power is safe, he told an audience of 5000 supporters in Normandy that the Japanese disaster at Fukushima last year was caused by the tsunami, and not by a failure of the nuclear technology. He then went a step further and falsely claimed he had actually visited the scene of the devastated nuclear plant. He told the rally: “I went to Fukushima with Nathalie KosciuskoMorizet (his environment minister), and unlike Francois Hollande, I can tell you the disaster was caused by the 42 metre high wave from a tsunami. Frankly, I don’t see the immediate risk of a tsunami in Alsace.” Mr Sarkozy was the first world leader to visit Japan after it was struck by a massive earthquake and tsumani in March last year. But journalists at French newspaper Le Monde who accompanied him on the trip insist he never left Tokyo. Mr Hollande leapt on the president’s gaffe to quip in the French media: “This is the first time in the history of the French republic that a candidate has told of a voyage he never
made. These are the kind of half truths that eventually become full-blown lies.” The socialist candidate’s campaign director Pierre Moscovici added that Mr Sarkozy “lies from morning, lunchtime to night,” while another socialist spokesman jokes on Twitter: “Nicolas Sarkozy is everywhere, on the Berlin Wall and at Fukushima. Now it’s the anniversary of the sinking of the Titanic... Was he on board that too?” Then as the president’s aides tried to defuse the blunder by admitting Mr Sarkozy ‘did not actually stick his nose’ into the Fukushima plant, another nuclear catastrophe swiftly reared up on the horizon.
Sarkozy has insisted he will maintain France’s position as the world’s most nucleardependent nation if he is returned to office Anne Lauvergeon, the former head of French nuclear energy company Areva and a self-confessed socialist, revealed to the press that Mr Sarkozy had once tried to sell a nuclear reactor to fallen Libyan dictator Muammar Gaddafi. Lauvergeon – dubbed ‘Atomic Anne’ in France – told L’Express news magazine: “The state, which is supposed to act responsibly, was supporting the folly of selling nuclear technology to Gaddafi. Hindsight may be a wonderful thing, but just imagine, if we had done it, how it would look now.” Without explicitly denying the allegation, Sarkozy’s spokeswoman Valerie Pecresse swiftly accused Lauvergeon of trying to ‘settle scores’ and of trying to discredit the president because she had been promised a seat in Mr Hollande’s future cabinet.
Looking for the exit While Mr Sarkozy tries to contain the fallout from his nuclear disaster, Mr Hollande is making no friends among France’s super-rich and big companies who, the latest figures show, are planning a mass exodus to Britain in panic at the left-winger’s pledges for massive hikes in income and corporation tax. Inquiries from wealthy French people for London homes worth more than five million pounds soared by 30 per cent in the first three months of this year and interest in homes worth between one and five million rose by 11 per cent, UK estate agency statistics showed. Mr Hollande has warned in his manifesto that he will increase taxes for incomes over one million euros a year from 50 per cent to 75 per cent if elected, and will also increase corporation tax from 33 per cent to 50 per cent and outlaw stock options. British estate agent Knight Frank said the socialist’s tax plans had sent French interest in luxury London homes rocketing. Liam Bailey, Knight Frank’s global head of residential research, said: “It is too early to see the impact of the proposed wealth taxes in France in terms of actual purchases in London. But there is strong evidence from our web search statistics.” Tax expert Armand Grumberg, a Paris lawyer at the firm Skadden, Arps, Slate, Meagher and Flom, told how at a recent lunch for bosses of France’s largest listed firms, the main topic was ‘how to get out’. He said: “Investment banks and international law firms would probably be the first to go, as they are highly mobile. “Other firms may find it harder to leave France, but the most damaging effects may be long-term as brainy youngsters who have the choice of where they set up new businesses decide they will not create jobs and new products for 25 per cent or less of the n fruits of their labour.” Industry Europe 23
Germany Allan Hall reports from Berlin on what German industry can teach America.
ot so long ago Germany was the sick man of Europe; sclerotic industries, archaic job-protection laws, inflexible working hours and a mindset that nothing would ever change. Now its economy continues to power on during hard times and firms big and small are opening their doors to visitors from abroad sent to Europe to learn how to do business. Who are they? Americans. Steven Rattner, a private fund manager who once advised President Clinton and now looks after the fortune of New York mayor Michael Bloomberg, said: “Germany is now a model for the United States.” Seeing as how post-WW2 Germany was forged in the image of America – from its federal states to its free-market system – that is a pretty big achievement for a country that would fit into Texas with plenty of room left over. Rattner and others are particularly impressed with the German model of ‘Kurzarbeit’ or shortening of workers’ time during a crisis to avoid widespread layoffs. Germany’s system for training skilled workers is also singled out for praise as a “clear role model for us or any other country,” while its “intelligent industrial policies” are also worthy of being imitated by Americans. Germany began to get to grips with its outdated model of doing things several years ago when its ‘Agenda 2010’ programme of painful and unpopular welfare reforms came into being. The safety net suddenly got smaller for millions of people who had grown accustomed to a comfortable life without work. Since then Germans have grown used to the notion that no job is for life, that flexibility is the key and that inability to change with the times means individuals will be left behind by them. A US news magazine joined in the chorus of praise for the German way recently, calling economic and social reforms ‘farsighted’, ena24 Industry Europe
bling firms to become “the most competitive industrial sector of any advanced economy.” The New York Times added: “The German economy has been one of the wonders of the world over the last couple of years.” Now it is America where the dream has become a nightmare; where the middle class sleep in tents or their cars, where jobs are scarce and growth barely discernible. The German trick, of staying competitive in a world where Chinese and Indian labour and costs are
“This is why Germany has emerged from the recession in relatively robust economic health, poised for continued job growth and enhanced competitiveness.” so much cheaper, is one it still has to master. And that is why the economists, entrepreneurs and small businessmen of America are beating a path to Germany’s door. “Americans, including policymakers, are increasingly taking an interest in Germany’s reforms and what it managed to accomplish in the last 10 years,” says Michael Spence, an American economist and the 2001 winner of the Nobel Prize in economics. “We need to be more like Germany,” concurred GE CEO Jeffrey Immelt.
The Mittelstand model Since the early 1980s, America has lost an average of over 200,000 jobs each year in the manufacturing industries and now less than 9 per cent of working Americans are employed in factories. Manufacturing as a share of gross domestic product has fallen to around some 12 per cent. Americans, essentially, want to know how Germany kept its industries going and its exports rising.
As a result they have focused, largely, on the Mittelstand, the small-to-medium sized family firms that make up the backbone of German industry. “These are companies that are family owned, they have a very long-term horizon, they don’t have to worry about the next quarter’s profits, they have stable ownership and they have competitive advantages as a result,” says Rattner. “These companies focus on producing sophisticated goods that emerging markets can’t easily replicate.” The trouble for America, however, is that it cannot easily replicate the German system without massive government interference – anathema to many Americans. America would have to legislate for the kind of training that German apprentices receive. It would have to legislate to give workers a say on the boards of companies; a system which works remarkably well and brings harmony to the workplace and remarkably few strikes. And the brutal hireand-fire policies of American firms would not engender the kind of loyalties that German workers have for their bosses – and bosses in the US, apparently always eager for the bottom line, are reluctant to stump up for increased education for their workers, even if their skills might enhance the black ink in the order book. President Obama is among those who said they want the system to change but it won’t be an overnight affair – yet the clock is ticking. Rob Atkinson, the president of the Information Technology and Innovation Foundation, a leading think tank in Washington, said: “America must learn from Germany – before it’s too late. Germany has mustered the discipline to think long-term and not merely about the next quarter. “This is why Germany has emerged from the recession in relatively robust economic health, poised for continued job growth and n enhanced competitiveness.”
SPECIALITY CHEMICALS SKW is the largest producer of urea and ammonia in Germany, with a product portfolio that covers a wide range of specialities for agrochemistry and industrial chemistry. Julia Snow introduces a modern company that is experiencing increased international demand.
Industry Europe 23
KW Stickstoffwerke Piesteritz GmbH was founded in Wittenberg in 1993, as a subsidiary of Bavaria-based SKW Trostberg AG. However, in the Piesteritz region the chemical tradition stretches back as far as the year 1915, so the company benefits from decades of experience as well as its centralised location directly on the Elbe, its nearness to the capital city of Berlin and the excellent road and rail networks.
24 Industry Europe
Over the years, the plant has been subject to ongoing investments and continuous expansion, and last year the company obtained renewed certification according to DIN EN ISO 14001, EMAS, DIN EN ISO 9001, OHSAS 18001 and FAMIQS for fodder urea. In September 2011, a special highlight was the replacement of a massive, 11-metre cigar-shaped piece of apparatus, which had
Schoeller-Bleckmann Nitec – The high pressure vessel specialist for the fertilizer industry …particularly for ammonia and urea plants Comprehensive material knowledge and four decades of know-how in the design and production of sophisticated pressure vessels result in optimum implementation of customers‘ requirements, while focusing on the highest possible quality in design and finish as well as on-time delivery.
Wide product range Corrosion resistant specialty urea grade materials – used for both solid and overlaid components – are used for the design and fabrication of such equipment by SBN for the urea synthesis. These include high pressure heat exchangers such as HP Strippers, HP Carbamate Condensers, HP Scrubbers, Pool-Condensers, Pool-Reactors as well as Urea Reactors, together with the necessary internals, such as liquid divider systems, reactor trays etc. For ammonia plants, SBN can also provide a wide range of equipment such as Ammonia Converter Shells and Internals as well as heat exchangers for the high pressure synthesis sections, such as Waste Heat Boilers. Depending on the specific conditions, for the high pressure shells either monowall or multilayer construction is being used, with completed high-pressure vessels having unit weights of up to and in excess of 500 tonnes. Materials processed include all carbon steels and low alloy steels for the pressure retaining parts.
Special Services Finally we offer in-situ repairs and modification of equipment including retubing of heat exchangers, relining of lined parts of heat exchangers, partial or total relining of reactors and revamping of ammonia converters. So for your next urea or ammonia project come to SBN for one-stop shopping.
Schoeller-Bleckmann Nitec GmbH Hauptstrasse 2, A-2630 Ternitz, Austria Tel.: (+43) 2630/319-0 | Fax: (+43) 2630/319-4119 | E-Mail: firstname.lastname@example.org | www.christof-group.com
been used for urea synthesis. After 36 years in operation it had been working for longer than any other unit like it in the world.
Research facilities SKW has at its disposal one of the largest research facilities in the medium-sized chemical industry. More than 50 staff work with excellent technical equipment in the fields of chemical research, agricultural application research and analytics. Their expertise and know-how, such as in the development of innovative fertilising systems, is sought after by many companies, institutes and laboratories worldwide, from well-known chemical institutes in neighbouring Berlin and Potsdam to the Academy of Sciences in Shenyang, China. The question of how to reduce ammonia emissions in agriculture, for example, was researched together with renowned universities in a project spanning several years, supported by the Federal Ministry for Education and Research.
Innovation in agricultural applications SKW products make an important contribution to the growth of plants and animals and the profitability of farms. Farmers need an extensive range of first-class fertilisers to 26 Industry Europe
ensure optimum plant nutrition, as well as professional advice on correct and professional use. They also require feed urea, as an effective and low-cost source of nitrogen for ruminant animals. With an innovation rate of more than 30 per cent, SKW’s chemical research engineers have an above-average level of success in achieving significant advances. Any new agrochemical products are subjected to many series of tests regarding environmental friendliness, yield contribution and labour savings. Field trials on over 170 hectares help to develop practical application recommendations for the use of fertiliser, from nitrogen losses, through weather influences and fertilising strategies, right up to food quality and crop productivity. The results are made available to farmers in an advisory service, through sales staff, at specialist conferences and within the context of the annual SKW field days.
Industry use To the industry, SKW is known as a competent and reliable supplier of process chemicals, such as ammonia, urea and nitric acid. The company’s specialist products are found in many areas of daily
life: amino resins act as an additive for the surface improvement of child-safe paints, others form part of the microencapsulation that allows the sampling of a new perfume scent by rubbing a magazine page. Others reduce emissions, like the NOx reduction agent, AdBlue® for the reduction of vehicle exhaust gases, or denitrogenisation agents for cleaning incineration gases in power plants and industrial facilities.
Logistics excellence More than two million tonnes of quality products are shipped from Wittenberg to customers throughout the world each year. Extensive transport capacities are available, with efficient facilities in rail and road dispatch including the company’s own 180-metre port on the Elbe river. On average 186 HGVs are loaded per day; goods in large quantities are automatically dispatched and the computerised loading stations for the filling of liquid fertilisers and bulk goods are equipped with a calibratable net weighing station. For the range of fertilisers alone, there is a capacity of nearly a quarter of a million tonnes, half of which is distributed in a decentralised manner at various locations throughout Germany.
Chemistry for the future Building capacity through staff development and training is one of SKW’s key principles. The local chamber of commerce has certified the company as a top-apprenticeship provider, for its range of 3.5-year apprenticeships in six different courses from training chemists and lab technicians to administrative and mechanical/engineering careers. The company is a part of the ‘Ausbildungspakt Wittenberg’, a cooperation of schools, employers, job centres and parents that promotes excellence in vocational training. The increasingly international market for fertilisers is showing increases in demand – in Germany alone the use of fertiliser has gone up from 1.6 to 1.8 million tonnes in 2010/11. At the same time political unrest in North Africa, Asia and Libya is affecting production, and supplies from China are expected to reduce further. Urea prices are likely to rise in the future, providing a stable market environment for the company. The company’s motto, ‘Chemistry for the future’, is not an empty phrase – rather, it is a central self-image to safeguard the company and the quality of life for today n and tomorrow. Industry Europe 27
SUCCESS More than 50 years of hard work and a successful diversification strategy have earned VRV the position of a world leading Group supplying, through three production units, the most important engineering companies, general contractors and end-users across the globe. Filomena Nardi reports. 28 Industry Europe
1956 three young artisans decided to set up a small factory in the Milan area, intended for the maintenance and repairing of equipment used within the pharmaceutical industry. The trio probably never imagined that 50 years later the initials of their surnames VRV would represent a world leading Group of companies specialised in the design and manufacturing of pressure equipment for the chemical, petrochemical, pharmaceutical and power industries. Today VRV operates through three production divisions: Pressure Vessels, Cryogenic and Process and Plants. The Pressure Vessel division designs and manufactures pressure equipment such as reactors, columns, heat exchanges and special vessels. The Cryogenic division is focused on the construction of equipment for the storage, transport and distribution of liquefied technical
gases. Process and Equipment, VRV’s third and last division, specialises in the design and manufacturing of complete units for drying, reaction and granulation of products under different forms.
Climbing towards Success A big turning point for VRV’s small workshop took place in 1974 when Massimiliano Spada, the current President, joined the business and began looking for new opportunities outside the pharmaceutical industry. From the very beginning Mr Spada promoted a diversification strategy, directing the activities towards the design and construction of medium to high pressure equipment for the chemical, petrochemical and power sectors. Due to its fast growth during the same year the company’s headquarters moved from Milan to Ornago, where the second generation
of the Spada family now works. In Ornago’s new facilities, VRV began producing the first pressure vessel unit in1976 and over the years the company has continuously expanded its product range in order to meet the needs of some of the most prestigious leading companies across the globe. After a great amount of hard work and the implementation of effective strategies, VRV is now one of the top market leaders in its respective fields.
Cryogenic Division: the beginning Innovation, diversification and internationalization processes have always been VRV’s main distinctive attributes. After a few years of leading the pressure vessel sector, in 1978 the Group decided to start a new production division using the expertise of one of its engineers specialised in the design of cryogenic equipment.
Based on Dewar’s flasks technology, cryogenic equipment does not need mechanical parts and does not require maintenance or power consumption with a consequently ever- increasing demand for cryogenic devices. In this scenario VRV designs and manufactures equipment for storage, transport and distribution of liquefied technical gases with the recent addition of new solutions such as portable homecare oxygen therapy units, LNG solutions and mobile storage tanks. During the course of the past 40 years this specific division has given great results to VRV which were further enhanced by the acquisition of Cryo Diffusion SA in 2001. This is a French company, established in 1965, that specialises in the manufacturing of vacuum superinsulated equipment for cryogenic gases. Its integration within the group has proven to Industry Europe 29
TAD LONG PRODUCTS is a leader company in Italy in the distribution of stainless steel seamless and welded pipes , fittings and the full range of bar products; our company has a strong presence in the chemical, petrochemical and mechanical engineering market segments, and, in the near future, developing synergies with our sister companies, is also going to penetrate the hydraulic and pneumatic application fields. As a result of its close relationship with major producers of long products all over the world, TAD LONG PRODUCTS is in a position to develop a system of synergies with the production sources, which guarantees a full service to its customers in terms of quality, certifications and brands. The fundamental philosophy is fully oriented towards customer satisfaction: quick and accurate answers to enquiries, comprehensive product range, flexibility, just in time material preparation and the capability to adapt very quickly to changing market conditions, are every day the key strength of TAD LONG PRODUCTS. Our goal is to further increase our market share by extending the product range and expanding the sales team: anyway TAD LONG PRODUCTS will remain faithful to its tried and tested business philosophy which has been making customers happy for 20 years!
Headquarters Via Washington, 70 - 20146 Milano Tel.: + 39 02 6268931 Fax: +39 02 29062465 E-mail: email@example.com
Sales management and warehouse Via Milano, 12 - 20816 Ceriano Laghetto (MB) Tel.: +39 02 9679751 Fax: +39 02 96797585 (seamless tubes) +39 02 96797584 (bars)
be a winning tactic and has also contributed to putting in place VRV’s bigger plan of supplying a complete range of cryogenic products at national and international level. As part of this plan, in 2010 a further division dedicated to the production of valves for the Cryogenic division and the Oil & Gas application was acquired. In fact the newly purchased company FEMA Srl has nearly 60 years of experience in the manufacturing of cryogenic, changeover and safety valves, as well as being involved in the aerospace industry.
Non-stop expansion Operating through three production facilities, two in Italy and one in France, VRV Group has a well established distribution network covering all of Europe and also reaching Asia, America and Oceania. However, successful companies like VRV never stop aiming at growing and exploring new fields of action. Taking into consideration the effects of the globalization process and the aggressive competition coming from
emerging markets like Asia, in 2008 VRV inaugurated a new production site in India in order to respond better to the increasing demand of local customers. The company - known as VRV India Cryogenic Equipment Pvt Ltd - based in Chennai (Madras, in Southern India) is focused in designing and manufacturing cryogenic equipment and is strategically located on the NH5 (the main highway in India) a few kilometers distance from the three major ports of Southern India. The company operates according to the same technology, construction procedures and quality standards applied in the rest of the group. Geographic expansion, modern facilities, up-to-date technology, the ability to keep quality standards and to meet the demand of its customers are the vital ingredients for the success of the group.
Great Expectations VRV currently employs 350 people and has a turnover of above €100 million, numbers that do not include the results achieved
by the recently launched Indian plant or the newly entered valve sector. According to a company’s spokesman the group is expecting to double the current revenue of its business with an addition of about 400 employees to its work-force over the next three years. Works are now being carried out to improve the production plant in Ornago and to increase the size of the Chennai facilities which should both be completed within 2013. Moreover in line with the group’s diversification strategies since mid-2010, VRV has established a working group to achieve the status as a manufacturer of pressure components for the nuclear industry. After more than 50 years of activity VRV has proven to be a very active and innovative group always searching for new solutions and new opportunities. Through its continuous investments targeted to internal reorganization, expansion and innovation, it seems like this organization can only move forward towards an even n brighter future.
Industry Europe 31
NATURE’S BEAUTY SECRETS 32 Industry Europe
Oriflame Cosmetics offers a wide range of high-quality beauty products that are sold in more than 60 countries worldwide. The company, which celebrates its 45th anniversary this year, believes in using natural extracts of herbs and plants as the basis for its cosmetics and skincare products. Joseph Altham spoke to Johan Rosenberg, Oriflame’s executive vice president global marketing and R&D, to find out how this philosophy has helped Oriflame to succeed in emerging markets.
hen Sweden’s Oriflame started to make beauty products in the 1960s, the company adopted an approach that has proved to be very popular with consumers. At the outset, Oriflame created a range of beauty products such as skin creams and mascara that used natural Swedish ingredients like birch extract. From the earliest days, the company always followed a strict policy of avoiding testing on animals. Another distinctive feature of Oriflame’s operations, which has been part of the
company’s business concept from the very beginning, is its reliance on direct sales. Rather than selling through retail outlets, Oriflame operates through sales consultants who can make money for themselves by selling Oriflame’s products. Many of these 3.5 million sales people deal in Oriflame’s wares as a sideline, but for some, becoming a sales consultant for the company is an opportunity to make a complete change in their lives and to build a new career. “Our business is built on independent sales consultants,” said Mr
Rosenberg. “For these people, Oriflame represents an income opportunity. Our products offer value for money, which is an important consideration nowadays, and we have a strategy which enables our sales consultants to take their business online.”
Natural ingredients Oriflame’s range runs to around 1000 products and the company brings out almost 500 new items every year. “Innovation is important to us. We are introducing new products all
Industry Europe 33
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34 Industry Europe
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the time to excite our sales consultants and capture the interest of our customers.” Oriflame has just released a new fragrance for men, the Fuse eau de toilette. This masculine fragrance has notes of sandalwood, cypress and cedar. The fragrance also contains an unusual ingredient, rock crystal extract, and the bottle is designed to look like a shard of rock crystal. “Right now we are at the point where we have just launched our Valentine’s offering. As well as the Fuse eau de toilette for men, we have
brought out a new fragrance for women, Ultra Glam, together with another new fragrance for women called Paradise.” Fragrances are only one of Oriflame’s business areas, which also include Colour Cosmetics, Personal and Hair care, Skincare, Accessories and Wellness products. In skincare, Oriflame has created a new range of eco-friendly products, Eco Beauty, based on natural ingredients like shea butter and coconut oil. “Respect for the natural world is in our heritage and close to our hearts.
We have developed the Eco Beauty range in cooperation with leading certification bodies like EcoCert, the Forest Stewardship Council, Fairtrade and the Vegan Society.”
Production values Oriflame is a large-scale operation, employing 8300 people and with annual sales in excess of €1.5 billion. The company manufactures around 60 per cent of its merchandise in its own factories, outsourcing the remaining 40 per cent of production. In Sweden, where Ori-
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flame was founded, the company has a highly automated factory just outside Stockholm for the production of toiletries. Oriflame’s largest factory, in Warsaw, manufactures over 350 different products and opened in 1995. “Poland was the first of our eastern European markets where we established a factory. The factory is well run and we have been able to build up a strong knowledge base.” A pioneer in eastern Europe, Oriflame was also quick to move into the emerging economies, and now has factories in China and India. “We operate a similar quality standard in all of our factories. In China, the output is purely for local consumption, but some of the products from our factory in India are intended for the global market.” Production is supported by Oriflame’s strong research R&D capability. “We have a big development centre in Dublin as well as a skin research institute in Stockholm. In Dublin we conduct tests on whether the consumers like the product. We also verify that the claims we make for the product are accurate, so any claims we make for our antiageing cream have been tested and validated on real consumers. As we introduce so many new products every year, testing is very important to ensure their quality.”
Market opportunities Oriflame has been particularly successful in Russia and the CIS (Commonwealth of Independent States, the countries of the former Soviet Union). Oriflame already has a factory near Moscow for the production of lipstick and lip gloss and will soon have another production site in Russia as well. “This will be a big complex, containing a warehouse and distribution centre as well as a manufacturing facility. The justification for this investment is that Russia is our single biggest market and the CIS as a whole is our largest sales region. We moved into Russia at an early stage. Our products are well positioned for the Russian market, where Oriflame is a trusted brand.” The company also identifies great potential to develop business through the medium of the internet. “Direct selling is a social business and hence we see a great potential for working also online using the same principles as traditionally. The entire business model is based on recommendations and that is also what consumers trust and look for online – this is a great opportunity for us and the industry.” n
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LEADING BY LISTENING The owner of some of India’s most recognised brands, Godrej Consumer Products Ltd, is steadily increasing its presence worldwide. Emma-Jane Batey spoke to COO Rakesh Sinha to find out how this is being achieved.
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one of the seven core business areas of the multi-billion dollar Godrej Group, Godrej Consumer Products Ltd is the market leader across India’s FMCG companies. Specialising in household products and personal care items, Godrej Consumer Products has branches throughout India and an increasing presence worldwide. The Godrej Group was founded in 1897 by inventor and commercial visionary Ardeshir Godrej who, along with his brother Pirojsha Godrej, created what was to become one of India’s most recognised and valued brands. The seven main companies within the Godrej Group encompass real estate, industrial engineering, domestic appliances, furniture, security, agri-care and Godrej Consumer Goods’ FMCG activities. With an annual turnover that exceeds $3.3 billion, Godrej is a name that is present in practically all Indian households in some way. Even though the group is an integral 38 Industry Europe
part of Indian culture, it actually achieves more than 25 per cent of its revenue from outside the country, thanks to its increasing presence overseas and sales activities in over 60 countries worldwide.
Part of the Godrej family As the COO of Godrej Consumer Products Ltd, Mr Rakesh Sinha told Industry Europe how being part of the group supports its day-to-day operations, as well as its strategic long-term growth plans. He said, “The Godrej name stands for innovation and quality in India, so we are very proud to be part of such a successful group. We have the strength of the group behind us when it comes to investing in the latest technology, which enables us to maintain our market-leading position domestically and continue to advance our position on a global scale.” In the 18 months since Industry Europe last spoke to Godrej Consumer Products, the company has enjoyed an impressive
growth that has kept it firmly on the Indian FMCG map. With an annual growth at more than double the rate of the industry, the company is justifiably proud. Mr Sinha continued, “We have seen higher than 20 per cent growth over the past year. We have worked hard to ensure that we deliver to our customers exactly what they want when they want it, so our sales figures clearly show that we have achieved that aim.”
Listen, understand Godrej Consumer Products’ growth rate is largely attributed to the fact that it listens closely to its customers and quickly acts on their changing demands. The company owns some of India’s most valued household and personal care brands, including Good Knight, Cinthol, Expert and Snuggy, and is committed to ensuring that its entire offer stays relevant to its customer base. Mr Sinha explained, “Staying close to our customers and understanding the
trends that are influencing their lives is incredibly important to us and we invest a great deal of time, money and resources in this area. We are continually fine-tuning our offer to guarantee that we are providing the right products at the right price.” Godrej Consumer Products gains this information through its constant contact with customers and relevant information. From speaking to customers directly on the shop floor, where Godrej employees ask about how they are getting on with their products and what feedback they have, to talking to general customers in shopping centres and workplaces, the company is happy to listen to any customer’s views. It also invests in syndicated research and data on shopper and consumer habits, both in terms of trend forecasting and real-time data. It then combines all the information to come up with a set of findings that closely reflect the actual mood and demands of its customer base, and puts this to good use in the marketing and R&D departments. Mr Sinha pointed out, “This information consistently influences our product launches, our upcoming product develop40 Industry Europe
ment, the redesigns of our products and packaging, and our advertising campaigns. We want our customers to know that we appreciate their feedback and that we always aim to offer products that perfectly suit their needs right now.”
Ready to grow With the rising level of young consumers in India having a major impact on the FMCG industry, Godrej Consumer Products is staying one step ahead of the trend but introducing youth-focused products that also meet the mega-trend of consumers of all ages wanting products that offer quality and value. This is seen in various groups demanding products that are either premium quality at a sensible yet higher price, or cheaper price points that still deliver on quality. The coming years will see Godrej Consumer Products expanding its global activities beyond its current markets in Asia, with the plan to focus on countries that have similar psychology and consumer behaviour as the Indian market – namely Latin America and Africa – where it can utilise the wider network of the n Godrej Group for targeted success.
Godrej and Lucid have a 15 year old partnership between them with Lucid supplying natural polymers as binders to Godrej for its mosquito coils. Over these years Lucid has worked closely with Godrej to modify the binders to achieve cost and performance efficiencies on Godrej’s finished products. As the binders supplied by Lucid are natural polymers based on agro raw materials they are subject to price fluctuations. Lucid has partnered closely not only with Godrej’s technical personnel but also commercial to guide them to make long term supply contracts when prices are beneficial. Lucid’s Marketing and Logistics Departments maintain close and regular contact with Godrej to ensure adequate and timely inventory is available This has led to a strong and efficient partnership between Godrej and Lucid. Lucid has received several “Star Vendor” awards from Godrej for its high level of quality and consistent products and services. The long partnership has sustained and grown over time as both have taken the time and effort to understand, respect and translate in to action the technical and commercial needs of each other. Lucid is proud of its partnership with Godrej and only sees it further strengthening in the years to come.
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BREWED IN HUNGARY Dreher Breweries Ltd, one Hungary’s oldest beer factories, has been operating successfully for nearly ten years as a subsidiary of SABMiller plc, one of the world’s largest brewers. Its flourishing partnerships with existing customers and its growth in the HoReCa sector will ensure that Dreher is in a position to move rapidly forward as the market increases. Edina Beale reports.
reher Breweries Ltd offers an extensive range of beer products; besides lager beers it also brews semi-dark, dark and wheat beers. Indeed, the company is proud of the fact that it currently produces three of the five leading Hungarian beer brands: Dreher, Arany Ászok and Kőbányai. The company aims to develop its product range in accordance with the changing market needs. “This year we will enter the flavoured beer segment,” reveals Mr Andrei Haret, CEO of Dreher Breweries Ltd. “Research shows that this category will
continue to expand in the coming years in Hungary. In the course of testing our new product, HB Zitrone, we have received very positive feedback; the consumers liked it, and described it as harmonic and refreshingly lemon-flavoured.”
Focused strategy Over the past 12 months Dreher Breweries has reinforced its leading position in Hungary in this very competitive sector to around 30 per cent market share. “This is the result of several years of focused strategic and implementation
work,” says Mr Haret. “More importantly, we have managed to grow in the HoReCa (hotels, restaurants, cafes) sector where there is still a real beer culture and where the best quality beers – mainly draught beers – are sold.” Dreher recognises the importance of establishing, maintaining and developing its business with its trade partners to provide a strong yet flexible framework for the business. This networking is extremely important in the ever-expanding HoReCa sector, in addition to the more traditional niches. The company has spent time and energy ensuring that its sales
team knows stuff. This training has paid dividends, with the sales force being voted the best in FMCG industry in 2008. In 2011, Dreher developed a marketing strategy that has brought benefits to the company, its customers and consumers. ‘Golden Fridays’ celebrates the end of the working week and the Dreher promotion provides a pint of Arany Ászok (Golden Aces) for the price of a standard glass. This is a simple 360-degree marketing campaign which has managed to bring consumers to come back to the pubs, thus raising brand awareness, increasing partners’ profits and keeping the customers very happy. Despite increasing excise duty, smoking bans and unfavourable weather conditions, all of which have an impact on this sector, Dreher is optimistic about the future. The year 2011 saw a slight increase in performance over the previous four years. Whilst there are no immediate plans for investment, the com-
pany is satisfied that it can meet the demands of its customers and consumers and still has capacity to grow.
Promising future As a leader in the Hungarian beer industry, Dreher Breweries strives to ensure its business is sustainable. It does of course strive to improve its own turnover, but acknowledges that to achieve this it must be supportive and encouraging of its customer base. The HoReCa sector is an area of significant growth. The possibility of thousands of new customers means that the company is prepared to go that little bit further to help this sector expand. The ‘Golden Friday’ programme is a great example of the company moving forward to develop existing markets and the results are impressive, with an increase of around 6 per cent last year, following years of decline. The Csendkirály (King of Silence) program is aimed at maintaining the delicate status
quo between those looking to have fun and the local residents. It was launched in partnership with the downtown districts of Budapest and the representatives of the HoReCa industry. “HoReCa units generally realise 15 per cent of their turnover in the late evening hours, a time slot which is already affected by statutory restrictions in certain cities and some districts of Budapest,” explains Mr Haret. “Several associations of HoReCa professionals and municipalities have granted their utmost support to this programme.” This has been a great success and will continue in 2012. Although irresponsible alcohol consumption affects only a small group in society, because of its negative health and social implications Dreher Breweries pays special attention to the issue and strives to mitigate the negative effects. The company encourages social dialogue on alcohol responsibility on its Facebook site and at the website alcohol.info.hu was created by the company for this purpose. n
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THE FRESH APPROACH TO FROZEN FOOD Global frozen food products manufacturer Findus’ Swedish activities have not only a long history in the region but also a clear focus on offering products that meet the demands of today’s consumers. Emma-Jane Batey spoke to Findus Sverige AB’s sales director, Patrik Niklasson, to find out how this is being achieved.
ounded in 1941 in Bjuv, Sweden, Findus Sverige AB is a key part of the global Findus Group, a leading frozen food and groceries provider with both retail and foodservice presence. Alongside other strategic Findus locations in the Nordics, UK and southern Europe, the Swedish operation is carefully developed to deliver a reliable local service that meets the needs of its local customers, while still adhering to the strict quality standards of the Findus Group. Sales director for Findus Sverige AB Patrik Niklasson appreciates how the vari-
ous locations of the company work together to deliver the best possible service and product quality. He told Industry Europe, “The Findus Group is based in London and the international offices work in clusters so that we can be targeting the local audiences. Findus Sverige is active within the Nordic region cluster alongside the UK cluster and France/Spain and we can all share information that is relevant across the cluster and have our own locally specific trends and profiles. As such, we can deliver a varied product range that addresses the
individual tastes and preferences of our local audiences while still utilising the Group power of Findus, which gives our consumers the best of both worlds – wherever they are in the world!”
Plenty of choice The Findus product range includes frozen food such as ready meals, vegetables, fish and bakery, and groceries including mayonnaise, soup, pasta sauce and jams. Findus is perhaps most famous for its frozen fish, offering both fish portions and fish in various
Industry Europe 47
A company in constant development
trängnäs Valskvarn is a traditionally private family business currently run by fifth- generation miller. Throughout history we have been associated with solid knowledge of flour milling, while we are known for always being able to deliver high quality products. Today’s modern mill was built in 1984 and our sales have since more than doubled. During the same period has also our facility been rebuilt on a number of times always to be able to meet increased demand. Today our facility has a capacity of 180 tons of wheat and 40 tons of rye per day. We are BRC certified since May 2005 and the management is actively working with the quality system so that will lead us to continuous improvement. In the current situation we are KRAV approved and certified under ISO 14001.
ROMERO is a producer of high quality pasta with large tradition. It is a 100% family business founded in 1926 which has been supplying different FINDUS factories for the last twenty years very successfully. It is one of the main pasta suppliers of European food industries and retailers. It offers a powerful production capacity (300 tons/day), the newest technologies and facilities but also flexibility to customer needs turning into an excellent rate of satisfaction and loyalty from their customers. Concerning the quality controls, these are the certificates of the company: ISO 22000, I.F.S., ISO14001, ISO 9001 and “Organic” pasta producer. Exports to 24 different countries (Europe, Asia, America and Africa). ROMERO can develop “tailor made” products, pasta with special ingredients, laminated/nest, low humidity, quick boiling, children shapes, etc.
www.pastasromero.com Pastas Alimenticias Romero, S.A. Avda. de Madrid, 43 - 50360 DAROCA - (Zaragoza) Spain Phone: (+34) 976 80 01 05 - (+34) 976 80 00 85 | Fax: (+34) 976 80 09 87 | E-mail: firstname.lastname@example.org
flavoured sauces and coatings. Mr Niklasson added, “A key part of our strategy is to ensure that we continue to offer freshly frozen fish and vegetables which can either be used for people to cook from scratch, such as individual portions of frozen fish or high-quality frozen peas, or products which have been carefully created to make cooking at home easier, such as fish in a tasty sauce. The healthy aspect of Findus’ products is a major ingredient in its sales and marketing communication, not least because frozen products often contain considerably more nutrients than poorly kept fresh products, par-
50 Industry Europe
ticularly vegetables. Mr Niklasson continued, “Our fish is frozen as soon as possible, which retains all its nutrients as well as keeping it wonderfully fresh until the consumer wants to cook it. Here at Findus we are committed to sharing the benefits of frozen products as they are sometimes seen as ‘second to fresh’ whereas actually they can be tastier, healthier and often cheaper. Our corporate policy “Vision Zero” also plays a part in this as it highlights our work towards delivering products without additives. Also, our frozen food is without preservatives since freezing is the natural way to preserve food. We’re bring-
ing this message to the consumer to make sure that frozen food products get the credit they deserve.” Findus also works actively with purchasing raw material from sustainable sources. Findus was first with introducing climate certified vegetables on the market in 2011 and aim to have 100 per cent MSC certified fish in its range 2012. The cost-effective benefit of buying frozen food is also clearly evident when it comes to the reduced waste. With Sweden ahead of even the wasteful UK when it comes to throwing away food, the message from Findus is
SWEET DELIGHT - frozen pastry producer - private labels - customised products - cakes, pies, slices, individual desserts - reliability, high quality, BRC certified
Pekarská 10, 155 00 Praha 5, Czech Republic Tel: +420 235 010 124 | Cel: +420 602 793 972 | E-mail: email@example.com | www.sweetdelight.eu
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Phone: +358 2 560 5600 E-mail: firstname.lastname@example.org www.lihajaloste-korpela.fi Huittinen, FINLAND
Pastas Alimenticias Romero Findus Sverige and Pastas Alimenticias Romero provide a magnificent example of how customer and supplier set a fruitful and long-term relationship. Mr. Francisco Romero (Managing Director of Pastas Romero) explains: “Our historical relation with Findus Sverige has been and is being a big success. We are delivering our products since twenty years ago to several Findus plants in Europe and we particularly congratulate ourselves about the cooperation with Findus Sverige. The rates of demand and reliability on supplier are very high. This means that the satisfaction when achieving success under these conditions is very high at both sides as well”
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clear – frozen food is not only often cheaper to buy in the first place but it is also very effective in reducing food waste as you only cook what you need and keep the rest frozen. Mr Niklasson said, “Frozen food represents great value – you can happily store food in your freezer for 12 months when you know it has been frozen as soon as it was caught or picked. We are also careful to manufacture our ready meals and ready-to-cook prepared frozen products just as you would at home – our mashed potato for example is just potatoes cooked in hot water with a little salt, then mashed with butter and milk. So we help
our consumers save time while giving them complete peace of mind that we’re giving them food that’s just as nutritious and carefully prepared as though they’d made it themselves.”
Positive outlook after a challenging market With Findus Sverige experiencing a challenging market for fish and vegetables during the global economic downturn, Mr Niklasson is confident that the steady increase is set to continue, particularly as the company has made a concerted effort in its marketing to highlight the cost and nutrition benefits of
frozen products. While the FMCG sector in general has seen issues in 2011 – the first reduced sales in the sector for many years – the company’s latest introductions to its portfolio address the current demands of its customers, such as more one-portion meals and additional lighter choices. Mr Niklasson concluded, “We expect 2012 to be a positive year, with our new products sitting neatly alongside our famous offer of frozen fish and vegetables. We are confident that consumers are coming back and optimistic about our organic growth thanks to our ‘pure n good food’ promise.”
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MACHINE POWER Lännen Tractors Oy is based in Finland and produces construction machinery for demanding applications such as laying power lines and burying cables underground. Joseph Altham spoke to Lännen’s sales and marketing director, Mika Hänninen, to find out how Lännen’s machines help to keep the trains running during the Finnish winter.
ännen Tractors is well known throughout the Scandinavian countries for its versatile and reliable machines. Lännen’s wheel loader backhoes are multipurpose machines that are widely used for infrastructure maintenance and on building sites, as well as for harvest work and in clearing the snow. Lännen manufactures the wheel loader backhoes in Loimaa, in south-west Finland. The Lännen Mobile Construction Equipment Group also includes a Swedish subsidiary, Lundberg, which manufactures multipurpose machines (tool carriers) at Skellefteå in northern Sweden. Overall, the Lännen MCE Group employs 150 people and has an annual turnover of around €45 million. The company has a strong presence in its home markets of Sweden and Finland, and also has dealers in several European countries including the Baltic countries, France, Slovenia and Spain.
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Lännen provides many different attachments for its tractors, such as hoists, ploughs and snow blowers, meaning that one machine can be adapted to perform many different tasks. Another advantage of the machines, says Mr Hänninen, is that they are stable and easy to use. “Few of our competitors can equal the stability of our machines, which are also outstandingly manoeuvrable. The people who use our machines really appreciate their ergonomic design, which makes the machine nice to drive.”
Cables and power lines In Finland and elsewhere, Lännen’s machines are often used to install overhead power lines and to lay cables underground. The ruggedness and stability of the machines make them well adapted to the task of installing overhead cables. The wheel loader backhoe’s superior
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off-road capability means that it can move easily over rough ground and work efficiently in the countryside. At the same time, the machine is stable enough to support a long boom, allowing the cable guy to work safely at a height of up to 19 metres. For installing overhead cables, there is also a separate pole grip for fixing new electricity poles into the ground. In Finland, Lännen’s tractors play a vital role in maintaining and repairing electricity and telecommunications networks. Unfortunately, overhead power lines can sometimes be brought down in a storm, leaving households without electricity. According to Mr Hänninen, there were severe power failures in Finland in
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December 2011 following heavy storms. “A lot of trees fell down and thousands of homes were left without power. This led to discussions about replacing many of our country’s overhead power lines with underground cables, as has already happened in Sweden. Finland will probably follow Sweden’s example and we expect underground power line construction in Finland to lead to an increase in the demand for our machines.”
Railway maintenance In Scandinavia, Lännen’s machines are especially popular for use in maintaining the railway system. “We have sold machines to the Finn-
ish railway company as well as to railways in Norway and Lithuania.” The machines can be fitted with many different attachments, which means they can do many different jobs on the track. “The wheel loader backhoes take care of the track and the surrounding area. Trains are usually electric, so there is a constant need to maintain the power lines.” Lännen’s machines can move rapidly up and down the railway with the aid of special rail wheels and if necessary the rubber wheels of the machine can even be lifted right above the track. The machine can be fitted with a plough or a bucket and in wintertime, Lännen’s machines perform a valuable function on Finland’s railways by clearing the
snow off the track. In summer the machines are used to cut back the undergrowth at the side of the railway and keep the track clear of grass and weeds. Heavy-duty tractors are essential in Finland so that the trains can be kept running throughout the country’s long winter. “Our tractors meet all the needs of railway maintenance in the climate conditions of northern Europe and reduce the manpower required for the job. A capable driver can take care of all the maintenance tasks which means you only need one guy for each machine.”
Investing for the future Although the economic environment in Europe may be uncertain, the Lännen MCE Group invested over €1 million in 2011 in new machines and equipment for the Loimaa factory. “We are aiming to increase our production capacity to meet future demand. We see good potential on our home turf in Sweden and Finland and we are currently exploring some exciting business opportunities in our export markets.” Exports already account for around 60 per cent of the turnover of the Lännen MCE Group and Lännen’s customers can rely on a strong after-sales service. The factories in Sweden and Finland have 2500 square metres of space for the storage of spare parts, enabling 97 per cent of orders to be delivered from stock, and Lännen’s dealers in Europe are on hand to provide high quality n technical support. Industry Europe 57
New Holland is a global leader in the design and manufacture of clean-energy tractors, harvesters and material handling equipment. Philip Yorke looks at the company’s futuristic, energy-efficient products that range from hydrogen-powered zero-emission tractors, to futurefocused T4 PowerStar models designed specifically for amenity and ground-care operations. 58 Industry Europe
ince 1895 New Holland has led the field in providing farmers with solutions that improve farming efficiency and productivity. Today the company remains committed to its hugely successful Clean Energy Leader strategy, which is designed to actively promote the use of renewable fuels, emissions reduction systems and sustainable agricultural technology. The company is part of the International Case Holland Group, a hugely successful conglomerate that has almost doubled its income in the past few years to achieve global sales of around €750 million in 2011. Net sales of equipment comprising both agriculture and
construction activities were recorded at more than $20 billion with strong sales achieved in Latin America and western Europe. New Holland’s unparalleled range of equipment offers cash-crop producers, livestock farmers, contractors, vineyards and groundcare professionals the largest choice of easy-to-operate farm equipment in the world. There are more than 80 product lines and over 300 models from which to choose. These state-of-the-art machines are complemented by the company’s own extensive network of after-sales support and spare part services, as well as a range of tailored financial products to suit every farm operator’s requirements.
Ground-breaking technology, greater efficiency Respect for the environment and the need to meet the diverse challenges facing farmers today, forms New Holland’s strategy to offer greater efficiency and productivity. The company is committed to integrating its latest energy-efficient engine technology to meet the stringent Tier 4A emissions regulations and manufactures the world’s largest range of Tier 4A compliant machines, comprising of 16 combines and 27 tractors. In addition, New Holland has taken sustainable farming to a new level with its revolutionary NH2™ hydrogen tractor, which runs exclusively on
pure hydrogen, a fuel which can be produced by the farmer on his own ‘energy-independent’ farm of the future. For many years New Holland has been committed to sustainable agriculture, and today biomass is considered to be the ultimate renewable energy source. Enhancing this commitment, the company offers a complete range of farming equipment to grow, harvest and process a complete range of biomass crops.
Optimising performance with zero emissions In 2011 New Holland Agriculture confirmed its leadership in the race to develop a zero
emission tractor that offered performance that compares with, or exceeds that of conventional diesel-driven machines. The world’s first hydrogen-powered tractor developed and produced by New Holland is already in service in Italy on the world’s first fully ‘energy-independent’ farm at La Bellotta near Turin. This latest breakthrough in farming equipment technology was launched by New Holland at the Agritechnica Trade Show in Hanover, Germany in November 2011 to critical acclaim. The new NH2™ has evolved from the company’s concept that won the Gold Innovation Award Medal Industry Europe 59
PETRONAS LUBRICANTS INTERNATIONAL PETRONAS LUBRICANTS INTERNATIONAL is a multinational company and a member of the PETRONAS Group (Petroliam Nasional Berhad). PETRONAS LUBRICANTS is one of the world’s leading manufacturers of lubricating oils for engines and industrial purposes. PETRONAS LUBRICANTS is currently present in more than 20 countries throughout the world and offers a huge range of products with around 30 different brands for any specific need and application. It is a technical and business partner to CNH, with whom it has an exclusive technical and commercial agreement that translates into dedicated brands and product ranges, such as AMBRA for NEW HOLLAND Agriculture and Construction machines. The partnership between PETRONAS LUBRICANTS and CNH aims to provide the highest level of technical support and submits each lubricant to strict tests to develop the most efficient solution for each vehicle and application. All products, from engine oils to greases and brake fluids, are the result of intense research and technical collaboration with CNH. To enhance the co-branding with CNH, all packs are marked with the partner company’s name and logo. Products from PETRONAS LUBRICANTS will enhance the efficiency of any vehicle, reducing downtime periods by optimising maintenance and relevant costs.
at SIMA in 2009 and was developed in association with CRF. Derived from the highly successful T6.140 model, this new tractor operates all the implements required for different seasonal farming operations. The new NH2™ tractor has doubled the power and torque of the original NH2™ model and significantly increased operational autonomy, whilst delivering optimal performance and zero emissions. The new machine has fuel cells
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that deliver double the power, providing an increase from 50 to 100kW. In addition, each of the new electric motors has a power output of 100kW with continuous torque of 950Nm and offers a maximum torque of 1200Nm. The latest NH2™ has a top crankshaft speed of 3000 rpm and achieves an incredible 96 per cent efficiency at maximum power. For further information on New Holland’s Clean Energy Leader strategy, visit the com-
pany’s dedicated website at: www.thecleanenergyleader.com and to find out more about the pilot Energy Independent Farm in Italy, visit www.labellotta.com.
Compact amenity tractors leading the field Unveiled at the 2012 BIGGA Turf Management Exhibition in the UK in January this year was New Holland’s latest T4 PowerStar utility tractor, equipped with turf/amen-
ity tyres and revolutionary VisionView cab. Steve Basnett, New Holland’s Compact Tractor Product specialist said., “The new T4 PowerStar is an all-new tractor, specifically designed to suit the needs of the growing amenity market. It has improved operator comfort and a larger cab to increase utility and ease of operation.” Mr Basnett added, “BTME provided us with a fantastic platform to showcase our latest ground-care products with customers
travelling from all over the UK to attend. It was therefore the ideal place to display this exciting new piece of equipment, about which we are already receiving great feedback from our customers.” This powerful New Holland machine is available in three distinct models, ranging from 55hp to 75hp, and includes the revolutionary, new VisionView cab, which is a market leader in its field. It is also 20 per cent larger than previous models and
includes a hi-vis panel that ensures excellent operator comfort and visibility. It also features an outstanding lifting capacity for a tractor of its size and comfortably manages 2150kg. Complete with turf/amenity tyres and compatible for an integrated front-end loader, the new T4 PowerStar makes an ideal loader or utility tractor and offers the advantage of a passenger seat to enable two people to travel securely and n in comfort.
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CONTINUES AT SOLARIS 66 Industry Europe
In 2011 Solaris Bus & Coach SA from Poland celebrated its 15th anniversary. Since production began in 1996, the company has built upon its spirit of innovation to become one of Europe’s leading bus manufacturers. The Solaris Tramino low-floor tram now also brings state-of-the-art mobility to urban rail. Piotr Sadowski reports.
olaris finished 2010 with another record business result, with 1120 buses delivered to customers – more than ever before. Turnover and employee headcount both recorded significant increases. Major milestones in the last year included the launch of tram production, and an initial order for 45 Tramino low-floor trams is currently being produced at two new facilities in the Greater Poznań region. Solaris is at the top of the Polish bus and coach market with a 42 per cent share. City buses continue to be a key market for Solaris and the company leads the Polish city bus market with a 54 per cent share (data for 2011). The company is also a major exporter: in 2011 1205 buses were exported to customers in Europe. The highest numbers of vehicles
were delivered to customers in Germany, France and throughout Scandinavia. German clients received 248 buses, an increase of 31 per cent on the year before, giving Solaris a 6 per cent share of the overall Germany bus market. French clients received 149 buses and Scandinavian clients 140 buses. The annual turnover of Solaris Bus & Coach SA was up 17 per cent to €370 million in 2011, compared to €294 the year before.
Urbino at the heart of the bus range The Urbino low-floor bus is available in lengths ranging from 8.6-metre midibuses to 18-metre articulated versions. A wide choice of ecofriendly drive trains makes the Solaris Urbino the leading solution for climate protection and sustainable mobility. In fact, at the 59th
UITP World Congress and Exhibition in Dubai (10–14 April 2011), Solaris exhibited an Urbino city bus. The vehicle is operated by host city Dubai’s Roads and Transport Authority. In fact, Dubai has a fleet of 225 Solaris buses, one of the largest in the world. Closer to home, in Europe, thousands of Solaris Urbino 18 low-floor city buses are already showing their credentials on city streets. The new Solaris Urbino 18 DIWAhybrid articulated city bus uses a Voith parallel hybrid system. A 150kW electric motor supports the diesel engine. Energy is stored in supercapacitors, resulting in reduced fuel consumption and lower wear and tear. In fact, the new version of the bus with the Voith DIWAhybrid is a trendsetting choice for state-of-the-art public transport. “Together with our partner of many
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years, Voith Turbo, we have now taken another important step towards sustainable electric mobility,” says Solange Olszewska, CEO of Solaris. “In choosing the Urbino 18 DIWAhybrid, our customers benefit from a parallel hybrid bus that makes no compromises in economy or reliability.” Dr Volker Zimmermann, managing director at Voith Turbo, also explains that technologies that further reduce costs for transport operators and make buses even more environmentally friendly have long been his company’s focus. Developing electric drives for the specific operating profiles of city
buses is a top priority for Voith Turbo and in the case of the parallel hybrid drive, the Urbino 18 DIWAhybrid is the reference application in Germany and Europe. Nineteen Urbino 18 DIWA hybrid buses are successfully running in regular public-transit operations for three German customers since the beginning of 2011.
Celebrating 16 years of operations “Among the keys to our success are our spirit of innovation and the high quality of our buses and trams,” says Mrs Olszewska. “Over the past year, these have helped us win new
customers for our products. More important still is the large number of existing customers placing repeat orders for our buses.” The company could not hope for better references than these. This year, Solaris again expects a good result with further sustainable growth. Among business development plans is the addition of further eco-friendly drive technologies to the product range, including the start of volume production of two new hybrid buses. One of them is the above-described Urbino 18 DIWAhybrid bus, delivered in
partnership with Voith Turbo. This and other hybrid buses, as well as tried and tested Solaris trolleybuses, provide valuable experience for the development of battery electric buses. A first prototype is scheduled to be completed before the end of the year. For urban rail, the Solaris Tramino family of low-floor trams will continue to give the highest comfort to passengers and excellent economic benefits to operators. Irrespective of order size, Solaris is able to offer variants of this modular platform, as well as tailor-made solutions. The current year is also a time for celebrations. On 22 March 1996, bus production at the plant in Bolechowo near Poznań opened with a workforce of only 36 people and an output of 56 buses in the first year. Within just a decade-and-a-half and led by Krzysztof and Solange Olszewski, Solaris has become one of Europe’s leading bus constructors, supplying n vehicles to 23 countries.
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DRIVING THE FARMER FORWARD Agricultural vehicle manufacturer Weidemann GmbH is continually expanding its portfolio to ensure that it offers everything needed for loading, carrying and lifting. Emma-Jane Batey spoke to the export sales manager, Mario Middeke, to find out more.
stablished in Germany over 50 years ago, agricultural vehicle developer and manufacturer Weidemann GmbH & Co has continued to focus on innovative products and accessories that support the agricultural industry worldwide. With a particular skill in designing loading, carrying and lifting vehicles that perfectly suit the needs of the smaller agricultural business, Weidemann has been able 70 Industry Europe
to establish a company that is widely considered to be a real partner to its customers. Export sales manager, Mario Middeke, told Industry Europe how Weidemann’s dedication to understanding the evolving needs of its agricultural customers worldwide has kept the company moving forward. He said, “Our company was founded on the premise of responding to the actual day-to-day demands and
challenges our customers face. Our pioneering vehicle Hoftrac illustrates this perfectly, as we were the first company to develop a machine that suited smaller farming businesses that needed to reduce or replace manual labour. The Hoftrac has continued to be an important product in our portfolio throughout the past 40 years, even though it has been joined by a series of other solutions.”
Investment in facilities Weidemann invested a considerable sum in 2007 in order to build a new factory, taking its total number of production facilities to three. It may introduce a second shift as demand continues to increase, with the company currently manufacturing around 10,000 vehicles each year. The Weidemann product portfolio includes a range of agricultural and commercial vehicles, including the Hoftrac, wheel loaders, telescopic loaders and related accessories. The best-selling product offered by Weidemann is its small-scale wheel loader. Bought by smaller farms and agricultural businesses as well as various council and municipal operations worldwide, the Hoftrac small-scale wheel loader has consistently
been its most popular product. Mr Middeke added, “As our main customer base is the smaller farming businesses, we totally understand how they work and what type of vehicle is beneficial to their activities. We also know how to develop our products to ensure that they are always keeping up-to-date with even small changes in the industry, or how our customers work.”
Knowing the trends Staying at the forefront of the small-scale agricultural industry’s trends and challenges is certainly a commercial advantage for Weidemann. It has a dedicated development department that fosters and maintains strong relationships with customers and industry influencers as well as conducting market research.
Weidemann’s latest industry research shows that many small-scale farms in Europe in particular are steadily increasing in order to stay commercial viable. Mr Middeke continued, “It used to be that farmers would order perhaps 40 lambs at a time, whereas now it may be 500 or even 1000, so of course they need different vehicle solutions to deal with it. We are seeing that where small farms would order one small vehicle or machine, they may now require an additional bigger machine or wheel loader. So we are developing solutions that cater to this trend for larger machines, which are more expensive, meaning that although the volume may go down a little from the small machines we are achieving the same turnover.” Industry Europe 71
BÜTER sees itself not only as a supplier of hydraulic cylinders and provider of ideas but, above all, as a partner to WEIDEMANN. BÜTER creates solutions to improve the functionality of their products- for example by creating a fully automated production method for screw-in hydraulic cylinders.
GRAMMER AG, Amberg, Germany, is specialized in the development and production of components and systems for automotive interiors as well as driver and passenger seats for offroad vehicles (tractors, construction machinery, forklifts), trucks, buses and trains.
More than 200 patents and registered designs impressively document the company’s know-how and ability. BÜTER is driven by its ambition to create competitive advantages for customers by providing innovative solutions and highest possible quality. This philosophy and partnerships with customers like WEIDEMANN made the company grow into a high-performance industry leader. Therefore, BÜTER would like to express its gratitude towards WEIDEMANN for beeing a trusted and highly valued customer.
Everywhere that people are on the move, GRAMMER sets standards of comfort, ergonomics and safety. GRAMMER is represented in 18 countries worldwide with 24 fully consolidated subsidiaries. We are market and technology leader in the offroad segment, supplying seats for both OEMs and Aftermarket. We have been supplying high-quality driver seats for Weidemann GmbH and the Wacker Neuson Group for several decades.
The variety of small to medium-sized machinery with reliable power offered by Weidemann is unrivalled in the European agricultural market. The company operates mainly in Europe, but has customers worldwide owing in part to its 100 per cent ownership by Wacker Neuson, the global manufacturer of light and compact equipment. Wacker Neuson acquired Weidemann in 2005, and its activities in 180 countries worldwide have opened up valuable sales channels for the company.
Global opportunities The plan for Weidemann is both to utilise the opportunities afforded by being a part of the global Wacker Neuson family and to continue
developing market-led vehicle solutions for small agricultural businesses. In addition to its current strong presence in western Europe, and growing market share in eastern Europe, Russia, South Africa and North America, it is hoping to break into a number of emerging markets. The global support from Wacker
Neuson means that the company has access to local contacts as well as its infrastructure, so it is already well-positioned to take its products and understanding of the market to countries where the Wacker Neuson brand is already well-known. Mr Middeke added, “We see exciting development potential in southern and central Asia and Turkey, with our research team already working hard to build relationships with possible partners, suppliers and customers. We know that there is an increasing need for our agricultural vehicles and related products across a number of international markets, so with our strong history, solid structure and passion for what we do, we’re certainly looking forward to a great future.” n
SAVING ENERGY AND COSTS The world’s shipping industry is under tremendous pressure – environmentally and economically. And it’s those factors that top the agenda when ABB’s Marine & Cranes business unit develops its products.
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ome tough regulations are already in place – and tighter regulations are on the way for the global shipping sector, which must not only battle to remain profitable in the current economic climate, but must also reduce fuel consumption and emissions dramatically to meet environmental targets. “By 2020, we will have a much stricter landscape when it comes to emissions from the shipping industry – the regulations are
coming,” says Eero Lehtovaara, senior vicepresident of ABB’s Marine & Cranes business unit. It’s not as if the shipping sector can just shut up shop tomorrow. More than 90 per cent of global trade is carried on the water and it’s generally accepted that without shipping, half the world would starve and the other half would freeze. Hence ABB Marine’s range of products, from its unique Azipod® vessel propulsion units to its electrical, vessel information
and control systems, are much in demand for their ability to reduce fuel consumption, emissions and costs for ship operators. “We focus on energy-efficient solutions which meet the requirements of modern society; we are moving more and more into technologies that pollute less, or offer the option to use less polluting methods of propulsion or energy usage – including, for example, in big city ports,” says Mr Lehtovaara.
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The Marine & Cranes business unit is a systems integrator within ABB’s process automation division, making heavy use of components and systems provided by different product units within the ABB Group. The business unit is involved in five main elements: propulsion units; electrical systems (its biggest revenue generator); vessel information and control systems (including automation), where there is a particularly strong emphasis on increasing the product range; cranes and terminals, where many customers are the same as in other segments; and, finally, services ‘a very important area’, says Mr Lehtovaara.
Azipod The Azipod family takes many of the headlines – it is the key product being promoted, and the range is continuously being improved, he says. The Azipod is now designed, manufactured and classified to give five-year main service intervals, to tie in with drydocking intervals. “We are working on extending the
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range and scope of delivery of the Azipod system, with new products and improved features. These new features can be used even to improve the energy efficiency of existing ships with Azipod propulsion.” Modifications to the Azipod in 2011 included a newly optimised fin shape and a new pod cap structure called X-tail; the altered fin shape receives water flow from the propeller at a less acute angle and its curved design redirects the flow more efficiently, while the X-tail strengthens water flow on ejection from the Azipod propulsor, minimising water swirling. These modifications have improved hydrodynamic efficiency by more than two per cent. Also last year, ABB worked with the Danish naval design and marine consultancy Knud E. Hansen to develop a highly fuel-efficient 2000 teu (twenty-foot equivalent unit) container feeder vessel. Compared to a containership with a conventional diesel-direct propulsion system, the main engine has been considerably downsized, and a range of other design
features offer improved efficiency in terms of speed and fuel consumption. This is ABB’s first move into container shipping with the Azipod solution – to date the 250 Azipod units delivered have been largely into the offshore oil & gas and passenger ships segments. “We intend to go into new segments of merchant shipping, like containers, where until now we haven’t been strong,” says Mr Lehtovaara. “We are looking at how best to address that part of the market; we feel that we need to be everywhere where our customers are and find new, highly energy efficient products suitable for those segments.” Based on upcoming and expected environmental regulations, a key aim is to produce a ‘zero emission’ port call vessel – where a hybrid propeller solution would enable the ship to use traditional heavy fuel oil for the main voyage, switch over to diesel for slow steaming, and connect to onshore renewable sources when in port – avoiding the use of either diesel or heavy fuel oil, with
associated emissions, when moored in the centre of a city, for example. Other recent developments have included the introduction of a new onboard DC grid system (direct current distribution for marine applications) – designed for ships with lowvoltage onboard power systems, such as offshore support vessels, tugs, ferries and yachts, it can reduce fuel consumption and emissions by up to 20 per cent.
Global expansion The Marine and Cranes business unit employs about 1100 people across 20 countries. There are main system engineering centres in Oslo, Helsinki, Shanghai and Singapore; Azipod production/assembly takes place in Helsinki and, since mid 2011, Shanghai. The new 37,000m2 manufacturing based in Shanghai was officially opened in August 2011 and is concentrating on production of the Azipod C, which is the compact pod range. “The factory is working well; we are very pleased with the quality and
efficiency we have achieved there,” says Mr Lehtovaara. “The new facility is meeting all targets in terms of scheduling and quality.” Two years ago, ABB announced that it was looking to strengthen its marine business presence in Brazil, in order to serve the growing market in Latin America; a key part of this will include the establishment of an Azipod C factory, marine service centre and specialised Azipod service centre, to help ABB serve Brazil’s fast-growing shipbuilding and offshore industry and also meet the statutory requirement for local content as set down by the Brazilian government. “A production plant in Brazil is still in our plans – but the plans have not moved forward to the timetable we hoped,” says Mr Lehtovaara. “Discussions continue, with the Brazilian authorities and others and we are hoping for a positive development very soon.” Despite the general doom and gloom of the shipping industry and wider economy, 2011 was a very good year for ABB Marine
& Cranes, and 2012 is looking positive with good revenue and bookings. A key advantage for ABB is that its products offer a lower through-life cost, compared with products from other market players that are cheaper to buy at the start, but have higher lifecycle costs. Although it is generally the shipyards that place the orders and pay the invoices, ABB is finding itself increasingly in direct contact with the end user of its products – “in a lot of cases when we are being chosen for the project, the reason is the owner’s preference”, says Mr Lehtovaara. “In the long run, we offer energy-efficient and high-quality services and products that are cost-efficient. We support our customers with products that are reducing emissions, reducing fuel consumption, increasing energy efficiency and lasting longer, with lower lifetime costs. We are one of the few companies in the world that covers all the areas that involve shipping. And we know that one plus one can definitely be n more than two.”
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Campbell Bay passenger vessel at WISL jetty
NEW COMPOSITE HORIZONS
Gas carrier - Reglas Nayantara at WISL for repair
Western India Shipyard Ltd (WISL) is part of India’s largest shipping and rig repair company, the ABG Group. Philip Yorke talked to Cmdr S.J. Mutreja, the company’s CEO, about its investment in a new rig repair platform and recent opportunities for growth in the repair and service of composite military vessels.
India’s largest composite ship and rig repair facility in the private sector, WISL is one of the world’s most advanced multi-dimensional and multi-purpose yards. WISL offers modern and efficient ship and rig repair and industrial services on a large scale. The range of services offered by the shipyard covers every aspect of ship and rig repair services for all types of vessels. These include bulk carriers, liners, cargo vessels, LPG carriers, dredgers, drill ships and passenger vessels. This is in addition to
Three rigs under repair at Western India Shipyard
Pollution control vessel - Samudra Prahari
providing repair services for oil and chemical tankers and naval and coastguard vessels. Offshore service vessels (OSVs) and jack-uprigs are also catered for. The company’s stated mission is to offer world-class ship repair services and products by integrating advanced repair processes. This is accomplished by utilising professional, streamlined operations in order to ensure complete customer satisfaction. Since the company was established in 1994 it has achieved the highest number of ‘turnarounds’
on the Indian subcontinent, with over 300 vessels being serviced or repaired by the Western India Shipyard Limited.
World class facilities WISL has the distinction of being the only shipyard offering full ship and rig repair services with dual accreditation, having been certified to ISO 9001:2008 by BVQI and IRQs. The company’s state-of-the-art floating dry dock “Westerner” is located at the WISL shipyard in Goa and has a capacity to repair ships of up
to 60,000 tons dwt and to accommodate vessels of up to 225m in length and 32.5m high. This ‘model’ WISL Shipyard was developed in collaboration with the world’s leading shipyard architects and designers with functionality at the centre of its conception. This modern yard is covered by a wide range of lift and carry facilities supplied by Portal/EOT/FDD as well as a variety of mobile cranes. The efficient layout of the shipyard means that repair schedules are kept to a minimum, saving both time and money for WISL’s cus-
Western India Shipyard aerial view
tomers. The yard also offers optimum lifting and transportation facilities and all workshops are centrally located in relation to the dry docks and repair jetties. The WISL yard is also strategically located at Mormungao Port Goa along the west coast of India. Mutreja said, “Our underwater repair facilities, dry docks and mandatory inspection services are amongst the best in the world and although around 80 per cent of our customers are based in India, a growing number are from overseas. Shipping companies from Greece, Singapore and Dubai are frequent
PFS Narayana ready after repair work
users of our facilities here in Goa. We are continually investing in new technology and services and are currently installing a new floating dock which, after receiving the necessary approvals should be fully operational within the next 5–6 months.” Mr Mutreja added, “We are seeing strong organic growth in our services but are open to making acquisitions should the right opportunity arise. The most exciting opportunity for growth at the present time is the prospect of work from the defence sector and we are currently doing major
repair work on a naval offshore vessel. As a result of our success in this region we anticipate that we should be getting some long-term work from this source. Most of our work is carried out on quick turnaround servicing projects which take approximately 40–45 days, but we are also looking at a requirement by one of our customers, ONDC, for conversion of their drilling units. As we currently repair and service drilling rigs, and could therefore extend our support our such production units. Today we believe that we can offer
NDT Test at Western India Shipyard
Machine shop - Western india Shipyard
the best technical support anywhere in the world and we constantly upgrade our technology and equipment whenever possible.”
An ideal ship repair partner WISL works in close association with its customers to offer the best solutions at the most competitive price and subscribes to the 5E’s principle: Efficiency, Expertise, Excellence, Efficacy and Esteem. This on-going commitment to customer service is backed up by a comprehensive range of services that cover the entire
spectrum of marine engineering repair services. This includes routine maintenance and damage repair, cargo hold/tank blasting and coating, main engine overhaul and rudder repairs. In addition the company offers propeller and tail shaft repair, derrick boom overhaul and major conversions and modifications. Highly specialised heating coil tests and electric works are also undertaken. Technical excellence is the cornerstone of WISL and it is applied across all its diverse services and operations. This is
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underscored by the list of marine companies who rely on the WISL Shipyard’s expertise. These include the Dredging Corporation of India, the Indian Navy, Great Eastern Shipping, ONGC, Ambuja Cements, Mercator Shipping and Ballast Medan among many others. WISL supports the education and training of its skilled workforce and has drawn up a set of training priorities for its engineers and managers on the latest quality systems to ensure that optimum results and service is n achieved for every project.
AWARD-WINNING TRANSPORTATION SERVICES
APL is a globally operating provider of container transportation services and a wholly – owned subsidiary of the Singapore-based Neptune Orient Lines logistics company. Industry Europe looks at the latest developments at APL.
lobal container transportation services company APL was founded over 160 years ago as the first New York to Asia shipping company. Acquired by Neptune Orient Lines (NOL) Group, a global shipping transportation logistics company based in Singapore, APL has grown to become the world’s fourth largest container shipping business. Listed on the Singapore Stock Exchange its two business units, APL and APL Logistics, provide supply chain management, consolidation services, freight forwarding and international logistics services. With a global staff of 11,000 based in 200 offices, APL provides seamless global connectivity by utilising its comprehensive fleet of modern vessels and commercially integrated routes.
Range of services APL’s container fleet offers services ranging from standard dry cargo containers to refrigerated and special containers. The service covers everything from equipment design to maintenance and repair. Containers can be refrigerated if need be, or adapted to contain hazardous materials, and APL also offers packing and loading services to ensure clients’ products will not be damaged during shipping. Oversized cargoes which pose unique challenges, such as military tanks or road-building machinery, can also be moved safely and efficiently by APL’s specially–trained professionals. All the biggest modern shipping companies, if they want to remain competitive, must also offer E-business solutions whereby clients can have easy access to
their shipment information and transaction over the internet. With APL, clients can manage their bills and track shipments online. Meanwhile, electronic data exchange systems allow them to communicate booking information and receive invoices etc without the need to send paper documents – a far more convenient and less time-consuming, not to mention environmentally friendly, method of document exchange.
Recent achievements APL received two major awards in 2011, underlining its position as one of the world’s leading and most trusted container transportation providers. In September it was named the world’s outstanding shipping
line, winning the prestigious Ship Operator Award at the Lloyd’s List global awards. The company was chosen from a shortlist of finalists including such globally renowned companies as Maersk Line, Pacific Basin Shipping and Seaspan Ship Management. Following on from this achievement, in October it received both the Global Ocean Carrier of the Year award and the Innovation IT of the Year award at the Containerisation International Awards, which took place in London. APL president Kenneth Glenn said at the occasion: “We’re
delighted to once more be recognised by industry peers for shipping excellence. This is an affirmation of our focus on providing customers with schedule reliability and service integrity.”
Worldwide presence APL serves more than 25,000 locations in 105 countries around the world. Its vessel routes cover Asia-Europe, Australia, Intra-Asia, Latin America, the Middle East, Europe-North America and Asia-North America. The main hubs for APL are Rot-
terdam for Europe, with the majority of its routes calling here for cargo to be loaded or unloaded and often discharged for feeder services on other transportation. In Asia, APL has a strong presence in its historic Singapore hub, as well as a number of Chinese ports, with its US coverage emanating from hubs on the west coast in LA and Seattle. In August 2011 APL announced a new service to further expand its presence in Latin America. The West Coast Express service will replace the Panama Andean
X-PRESS FEEDERS Headquartered in Singapore and established in 1972, X-PRESS FEEDERS has grown to become the largest feeder carrier in the world in terms of Shipper Owned Containers (SOCs). The company ranks 24th on the AXS global ranking of container ship operators. X-PRESS FEEDERS is set apart as a group by the fact that it runs as a completely independent feeder carrier that does not own, lease or operate any containers. It provides transportation services solely to container ship operators and does not serve proprietary cargo interests or the general shipping public – giving it a stronger focus.
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This focus on container ship operators is important for X-PRESS FEEDERS as it means it is not in competition with its customers, allowing it to act as a trustworthy and impartial sub-contractor. X-PRESS has a 200-strong team throughout the world, comprising highly trained shipping specialists who understand the specific needs of each customer and are able to provide them with highly effective feeding solutions.
Express 2 Service. The new service is a vessel-sharing agreement with Hamburg Süd, under the terms of which APL will operate two vessels and Hamburg Süd one vessel, each with a nominal capacity of 1300 TEU. This service links the South American west coast directly to Central America, and connects to the North American west coast and other major markets via APL’s global linehaul services. Currently operating a fleet of nearly 150 ships, APL has a mix of size and ownership, with both chartered and own ownership, although all ships in its fleet must meet the extraordinarily strict requirements of quality, environmental and maintenance standards that exceed international demands. As the majority of APL’s customer requirements are large, international intra-Asia, US or European logistics, the ships vary from 1500TU capacity to 9000TU capacity, giving APL the ability to delivery the largest loads worldwide. The quality and standard of the fleet is taken for granted at APL – the company believes this is a non-negotiable aspect prior to any charter or sale and leaseback agreement when adding to its fleet. It is this reliability that truly adds value to the n APL offer.
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Bourbon SA specialises in offshore oil and gas marine services and operates in the North Sea, the Gulf of Mexico, the west coast of Africa and many other regions of the world. In subsea services, Bourbon is playing a growing role in the development of offshore wind energy. Joseph Altham reports on Bourbon’s activities off the coast of Portugal, where it has just installed an offshore wind turbine.
he French island of Réunion lies to the east of Madagascar and is a major exporter of sugar. The old name for the island is Île Bourbon. The Bourbon company, which was founded in 1948, began life on Réunion producing sugar and rum. After 1979, when Jacques de Chateauvieux became the chairman, Bourbon took a new course, gradually withdrawing from the sugar business as it came to focus on marine services. Today Bourbon is based in Paris, with 8350 employees, 436 vessels and a presence in more than 30 countries worldwide. It provides offshore services both to international oil majors such as Exxon Mobil, Shell and Agip, and to state-owned oil companies such as
Petrobras and Saudi Aramco. The company separates its activities into two areas: marine services such as towing and anchoring drilling platforms; and subsea services, where its ships assist with inspection, repair and maintenance (IMR) in deep offshore oil fields.
Innovative technology As part of the energy mix, European countries want to develop sources of renewable energy, and Bourbon’s expertise is now supporting the development of offshore wind farms. In the North Sea, the Bourbon Enterprise has assisted with the installation of undersea electric cables for the new Greater Gabbard wind farm off the Suffolk coast.
“As of June 2010, Bourbon has been operating in offshore wind with the Bourbon Enterprise,” stated Patrick Belenfant, senior vice-president for business management, Bourbon subsea services. “This IMR vessel (dedicated to inspection, maintenance and repair of subsea infrastructures), first intervened on the Greater Gabbard Wind Farm, one of the biggest offshore installation projects on the south coast of England, before joining the BARD Offshore 1 field off Germany and ensuring operations until October 2011.” More recently, Bourbon has installed an innovative wind structure in the Atlantic for the Portuguese utility company Energias de Portugal (EDP). The wind turbine, now in place
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Navis The history of cooperation between Bourbon Offshore and Finnish DP manufacturer Navis Engineering begins in 2006, which saw the first contract between Bourbon and Beier Radio (USA-based Navis’ partner) on delivery of 36 DP2 systems for AHTSs and PSVs of Bourbon Liberty Series 100 and 200. A new large contract followed the next year on delivery of 40 DP2 systems more for the same AHTS/PSV series. Founded in 1992 in Saint-Petersburg (Russia) with international headquarters set up in 2005 in Helsinki, Navis Engineering delivered its first DP system in 2000. Although the company engineers had not had any real commissioning experience before, the strong level of engineering background made it possible for Navis together with Beier Radio to put together a considerable portfolio of DP deliveries to the leading ship-owners operating in the Gulf of Mexico in just a couple of years. In particular, Navis Engineering was the first DP manufacturer to successfully cope with the task of positioning the light weight low displacement crew boat equipped with powerful water-jets. The first successful delivery of the DP2 system for
near Aguçadoura, has a WindFloat foundation, meaning the structure could be assembled onshore before it was towed out to sea and anchored. The advantage of using floating structures is that there is no need to use heavy lifting equipment offshore. The WindFloat technology was developed by an American firm, Principle Power. Potentially, this invention could open up many more opportunities for wind power in deeper seas.
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a crew boat took place in 2002. Later on, a number of Bourbon weterjet-propelled Bourbon crew-boats were also equipped with the Navis DP. The current generation of DP systems manufactured by Navis is installed on a large number of Bourbon’s offshore vessels. Navis DP is known for clear and unambiguous presentation of information, timely error-free access to all the functions, high speed of response and stable performance. Combining simplicity and robustness with the power of the modern DP system, Navis DP makes it possible to maximally reduce the workload on the DP operator. This, in turn, allows the Bourbon fleet personnel to achieve the best results in completing the tasks faced. Bourbon Offshore and Navis Engineering continue to cooperate: a contract on delivery of DP2 systems for 15 new PSVs and 4 crewboats was signed last year. Apart from equipping the Bourbon vessels with DP systems, Navis provides worldwide service of all the systems delivered.
Expertise Bourbon’s anchor handling tug supply vessel (AHTS), the Bourbon Liberty 228, towed the offshore wind turbine platform out to sea, put it into the right position and anchored it. Setting up a new offshore wind turbine is a specialist assignment, requiring the skills of both engineers and sailors. Fortunately, Bourbon is capable of adapting to specific client demands. As Eric Verrière, managing director
of Bourbon’s French subsidiary, Bourbon Offshore Surf, observed, “The high level of Bourbon employees’ expertise allowed for the successful deployment of each step of the project: engineering and management, mooring system installation and pre-tensioning, WindFloat towing and on-site mooring, subsea installation and power connection.” Bourbon’s range of services for the offshore wind sector is comprehensive, cover-
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ing not only construction but also exploration and maintenance. Its IMR vessels are used in maintenance operations and also serve as floating hotels for employees working at a particular site. For exploration, the company has its own fleet of remotely operated underwater vehicles (ROVs). These subsea exploration robots are capable of making surveys of deep water and are equipped with advanced technology such as sonars and high-definition cameras.
2015 Leadership Strategy Diversification into wind power is one of the aims of Bourbon’s plan for 2015, the ‘Bourbon 2015 Leadership Strategy’. Under
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the strategy, the company is to invest around $2 billion to build new offshore vessels. These investments will allow the company to replace obsolete vessels more quickly on the continental offshore market as well as to achieve growth in its deep offshore operations. In total, Bourbon plans to have 600 new-generation vessels by 2015. Alongside the expansion of its fleet, the company intends to take on more staff and by 2015 there will be 12,000 people on the payroll. Recruitment at Bourbon is international and Bourbon has centres for training the crews in Marseilles, Singapore, Manila, Ravenna and China. The oil and gas industry has been using floating structures for many years, but in
renewable energy the WindFloat support structure, which enables wind farms to be established far out to sea in deep water, represents a major breakthrough. Bourbon stands ready to take on more offshore wind power projects in the future. “Bourbon has been actively involved in work on several wind farms since 2010,” stated Bourbon’s CEO, Christian Lefèvre, “and a number of other projects are due to be rolled out over the next five years. Bourbon’s fleet is ideally suited to providing solutions for the installation and operation of wind farms. Wind is a promising complementary activity for our offshore oil and gas marine n service offering.”
PERFECT PITCH Hydra Tech, based in the Danish town of Vrå, is a world-class manufacturer of custom hydraulic cylinders. The company has a large engineering and design department and produces cylinders for the offshore and marine industries. Joseph Altham interviewed Kim Weidemann, CEO of Hydra Tech, to find out about the company’s activities in wind power and its recent acquisition of AVN Energy.
ydra Tech has been making hydraulic cylinders since the 1970s. In the beginning, the focus was on cylinders for cranes and forestry equipment. Today Hydra Tech makes hydraulic cylinders for various applications including mining equipment, steel mills and lock gates. In 1989 Hydra Tech began to produce hydraulic cylinders for the offshore and marine industries, and these industries are now the company’s main customers. “Essentially, hydraulic cylinders help you move something that is difficult to lift,” said Mr Weidemann. “They also allow you to automate processes. For the offshore industry, we produce hydraulic cylinders for cranes, as well as drilling cylinders for rigs and platforms.” On ships, Hydra Tech’s cylinders are used in hatch covers and marine cranes. In the offshore environment hydraulic cylinders must be
capable of withstanding extreme conditions, so Hydra Tech treats quality and safety as top priorities. “In the offshore industry, the cost of a breakdown can be devastating. Quality of work and traceability of materials is a basic requirement.” All Hydra Tech’s production sites are certified to the international quality management standard, ISO 9001:2008. The company works with a number of regulatory certification agencies, including DNV, Bureau Veritas, ABS and Lloyds Register, to ensure that the necessary safeguards are in place and that all cylinders meet the appropriate standards for durability.
Acquisitions Hydra Tech’s main factory is at Vrå, in the north of Jutland. This factory has its own testing centre. “Every product is extenIndustry Europe 93
Our services include: Seamless and welded, square and round tubes in all grades. Rod materials in all grades. We have a wide product range, and with our extensive product knowledge, we are confident to serve you. Today time is money, and we know that materials on time are key for our customers. We look forward to receiving your inquiries and to prove that “it’s not size that matters.” Approved materials: Stål Gruppen delivers approved materials in all grades and sizes: • DNV, BV, LR, ABS, GL • 34CrNiMo6 Q+T • 42CrMo4 Q+T • 16MnCr5 • 17CrNi7-6/18CrNiMo7-6 • C60 • C45N • S355J2+N • S235JR2C+C • Free cutting steel 11SMn30K/11SMnPb30K
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Plating Solutions For many years, Plating Solutions complements the Hydratech business by supplying surface treatments for piston rods, based on a true partnership. This partnership results in a Hydratech product that lowers your operating costs and ensures sustainability. In this way, Hydratech is able to exceed her customers expectations. Hydratech and Plating Solutions are now developing a special, laser-cladded coating, which will result in another added-value product to the high quality Hydratech portfolio. Hydratech Industries is this way, can offer various solutions from single, double to even nickel chromium surface treated piston rods, next to the advanced laser-cladded coatings.
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sively tested to make sure that the system will be reliable and live up to the customer’s expectations.” Hydra Tech also has factories in China and the USA. Hydra Tech set up its factory in China, at Suzhou, in 2003. “As I am sure you know, a lot of shipbuilding takes place in Asia. We have a factory in China to supply this market.” Hydra Tech moved into the USA in 2010 when it acquired an American firm, CRC Manufacturing. “We bought our factory in Alabama in order to obtain a service point near the Gulf of Mexico. We wanted to have a local presence for trading with our American customers.” At the beginning of 2011, Hydra Tech made another acquisition, taking over the Danish company, AVN Energy, whose main factory is in Silkeborg. AVN Energy is one of the leading suppliers of hydraulic systems to the global wind turbine industry. In India, AVN Energy has a factory in Bangalore. “This factory makes components for the Indian wind power industry. There is a big market in India for wind turbines, and Indian companies are now establishing themselves in the global market.”
potential of renewable energy, and Hydra Tech aims to realise the opportunities available in this rapidly developing field. For Mr Weidemann, engagement in the wind power market is a key business objective. “The market has a growth rate of around 10 per cent per annum, and this level of growth is unlikely to stop.” As Mr Weidemann explained, hydraulic cylinders play a vital role in a modern wind turbine by controlling the turbine’s pitch. “A pitch system increases the efficiency of a wind turbine by positioning the blades at the correct angle to the wind.” Hydraulic pitch systems also have a fail-safe function. In severe weather and extreme wind speeds, they will turn the blades out of the wind, thereby minimising the risk of accidents or structural failure. AVN Energy has more than 25 years of experience in wind power. With a 1600m2 research and development centre, AVN Energy supplies custom-made hydraulic systems to wind turbine manufacturers worldwide. The merger with Hydra Tech has enhanced AVN Energy’s capacity to supply its innovative technology to customers around the world.
Hydra Tech has already built up extensive expertise in offshore energy, so expanding into the wind turbine industry makes sense. European countries are eager to explore the
The merger has also enabled Hydra Tech to achieve synergies. In Denmark, production of the hydraulic cylinders is being concentrated at the Vrå site, allowing the AVN Energy fac-
tory to the south in Silkeborg to focus on the other elements of the pitch systems as well as on turbine cooling technology. “At our factory in northern Denmark, we are extending the production hall by another 1400m2.” Hydra Tech is heavily oriented towards export and can take advantage of favourable trends in both wind power and the offshore sector. “The marine market is a bit saturated right now, but there is a lot of optimism in offshore because high oil prices are stimulating investment in deepwater equipment. Governments are turning to renewable energy as a way to realise their ambitions for lowering CO2 emissions, and this is one factor behind the growth in renewable energy.” Mr Weidemann added that Hydra Tech is currently looking for openings in South America, where the wind power sector could represent a promising new n market for his company.
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CHARTING NEW WATERS I.M. Skaugen (IMS) is a global, multi-faceted marine transportation and services group. Philip Yorke looks at the company’s diverse range of marine activities, its latest achievements and its strategy for future growth.
1916 Isak Marrtinius Skaugen laid the foundations of the I.M. Skaugen group when, as captain of the four-masted barque ‘Alcides’ he established the Eikland marine transportation company. Skaugen was quick to realise that steam vessels were the future for marine transportation, so he sold the Alcides and purchased a new steam vessel of 2040 DWT and christened it the ‘Eikland’ after the company’s first shareholder Mr Olaf Eikland. The Eikland was later joined by two more steam vessels and together they were employed in the North European seaways. Skaugen’s vision and dedication to service survives today along with its operational flexibility, which has made the company one of the most dynamic and successful in its class.
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Today the IMS Group employs more than 2000 people on a global basis, of which over 1000 are employed in China. The company operates 42 vessels and is listed on the Oslo stock exchange. It remains a family-owned business, at the helm is third generation, CEO, Morits Skaugen who was appointed in 1992 to head the company.
Exploring new horizons I.M. Skaugen SE is the group’s holding company which controls its three distinct operating divisions: Gas activities, China activities and Marine Transport activities. IMS is a fully integrated shipping company that designs, builds, owns, mans and manages its own vessels. The group’s customers are major international companies involved in the oil
and petrochemical industry, which IMS serves from its locations in Bahrain (UAE), Freeport and Houston (USA), Oslo (Norway), Singapore, Sunderland (UK) and Nanjing, Shanghai, Taizou, Zhangjiagang and Wuhan (China). In addition, the company also operates recruitment and training programmes from its installations in St Petersburg (Russia) and Wuhan (China) for the crewing of its vessels. As a leading marine transportation company, Skaugen is engaged in the efficient transportation of petrochemical gases, chemicals, LPG and LNG as well as in the transfer of crude oil and LNG. Leading the way in its dedicated marine transfer activities is SPT, based in Houston, USA, which is jointly owned by I.M. Skaugen (50 per cent) and Teekay Shipping Corpora-
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tion (50 per cent). Today SPT is one of the largest companies in the world, providing marine transfer of crude oil and LNG. Although predominantly serving the Gulf of Mexico, the company has extended its horizons to include lightering support services in Europe and West Africa. In order to reduce risk and increase revenues for its fleet of Aframax tankers, the vessels are also used for intra- and inter-continental voyage business. The company’s second major business activity is the provision of global support services. To this end, SPT supplies a wide range of services including workboats, mooring masters and lightering equipment for the support of other marine companies.
Maximising marine potential in Asia As long ago as 1995, I.M. Skaugen recognised the potential that the emerging Asian markets offered, and in particular, China. The company views China as a competitive market for shipbuilding and as a growing market
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for the transportation of petrochemical gases, LPG and LNG as well as a source of affordable crewing and management services. IMS was the first to pioneer the transportation of ethylene to and from China as well as the first to establish a passenger cruise business in China in the mid 1980s. Skaugen’s diverse business interests in China are organised under its Skaugen (China) Holding Company, which was established in Shanghai in 2008. This company is responsible for creating new business opportunities for the group and coordinating the company’s services throughout China. IMS continues to partner with businesses that are both costeffective and service leaders to expand its growth opportunities in the region.
Delivering advanced multi-task tankers IMS has an on-going new-building programme in China, of which three 3200m3 LPG vessels have already been sold and
delivered. In addition, Skaugen has also built three purpose-designed combination carriers with LPG/ethylene/VCM and Organic chemicals carrying capabilities, as well as up to ten advanced 10,000-12,000m3 LNG/ LPG/ehtylene gas carriers. This reflects the company’s commitment to the Asian market where it has built up considerable internal resources and infrastructure, to ensure the continuing ability to design and manufacture innovative and flexible low-cost vessels. In September 2011 Skaugen took delivery of the last of three vessels in the Wintergas series, which have the unique ability to carry a combination of gas and chemicals. Over the last ten years the company has built 18 gas carriers in China at a gross investment of more than USD $570 million. The new-building programme makes Skaugen’s Norgas fleet the most efficient and modern of all gas carrier operators in the world. The company’s strategy for further optimisation of its global and Chinese operations is
the building of ten new multi-gas carriers to meet the growing worldwide demand. The emerging markets have become the major growth engines for Skaugen and the rapid rise of the emerging markets has created a shortage of energy resources such as fuel, electricity and gas. As an important energy commodity, crude oil is also the key component in the petrochemical industry and one that the IMS group continues to dominate with ultra-modern tankers and a broad range n of flexible marine services.
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EXPANDING HORIZONS Fr. Lurssen is the world’s leading designer and manufacturer of super-yachts. Philip Yorke explores the unique expertise and dedication to perfection that has kept the company at the forefront of the superyacht industry, and its latest creations.
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r. Lurssen Werft was founded in 1875 and is now in its fourth generation of private family ownership. The company was founded by Friedrich Lurssen with a desire to create a leading shipyard that excelled in both quality and performance. With its headquarters in Bremen-Vegesack and five building shipyards in north Germany, Lurssen Yachts is responsible for designing and building some of the world’s finest luxury yachts of between 33 and 200 metres, and can claim to have produced the world’s first motor yacht in 1886. Lurssen utilises a number of specialist shipyards and connections worldwide to achieve its goal of total customer satisfaction and employs more than 1000 craftsmen and over 200 marine engineers. Today Lurssen’s reputation as a high quality, dedicated and discreet shipyard has
ensured its continued success. The company remains committed to incorporating the highest possible technical standards in all its designs and manufacturing processes in order to meet the specific and highly individual demands of its clients.
Creating perfection Lurssen prides itself on being at the cutting edge of marine technology and furthermore, associates itself with the fields of research and design, production technologies and system integration, as well as online ship management systems. Every Lurssen yacht is custom built to the most exacting standards and specifications; however, they are also engineered carefully to meet the stringent international standards for safety, seaworthiness and durability. One of the most important selling points for Lurssen is that they not only constitute a
source of pride and pleasure for their clients, but that they are also a statement that reflects the owners’ individual tastes and personality. Today Lurssen remains one of small nucleus of companies that make custom-built boats for the super-rich and is considered to be the global brand leader in its class.
Showcasing elegance The main opportunity to impress potential customers is to be gained at the world’s international boat shows and this gives manufacturers the opportunity to display their creations in the most beautiful settings. Lurssen attends the world’s most prestigious shows and this year (2012) its super-yachts can be seen and admired at Monaco where owners, their families and friends are hosted in one of Europe’s most glamorous yachting destinations. The Monaco ‘Rendezvous
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is between 21 and 24 of June this year. In October this year Lurssen will also be showcasing their skills at the Fort Lauderdale International Boat Show, where the SBYA (Superyacht Builders Association) is providing a new 16,000 square foot pavilion alongside a custom-built, floating air-conditioned barge. In addition, this year Lurssen’s Ace (project Rocky) yacht completed its sea trials in March and her delivery is scheduled for late spring 2012. Andrew Winch, who was responsible for the exterior as well as the interior design, gave the yacht a very unusual profile which is certain to turn many heads. 104 Industry Europe
The yacht’s large side arches surmount oval side balconies where the yacht’s name is placed and the cream-coloured hull with its gleaming, white superstructure underscores the true elegance of this majestic yacht. In a separate project, Lurssen launched its project Niki in the traditional fashion amongst a fanfare of complimentary press reviews. Espen Oeino has given Niki the most harmonious proportions and, with a length of 85.5 metres and a beam of 13.80 metres, she boasts extraordinary volumes that meet all the owner’s requirements whilst still maintaining exceptionally graceful and sleek lines.
Maintaining the legend Lurssen has always been a privately owned family business since it was founded almost 130 years ago and today it is managed by Friedrich and Peter Lurssen, who represent the fourth generation of family ownership. Both the Lurssen brothers who manage the company are actively involved in the day-today running of it and have face-to-face contact with their clients, which in turn builds a trust and commitment that is essential in a business of this nature. Lurssen clients also know that they can rely on complete discretion and that their
specifications and personal data will always remain confidential. Today the customers for Lurssen super-yachts are evenly split between the USA, Europe and the rest of the world and Lurssen protects not only all information relating to its clients, but also the company’s own financial status and performance, which remains a closely guarded secret. The whole design and development process is a very personal matter between the client and the company and Lurssen still relies to a large extent on the old-fashioned but proven method of creating a physical
scale model of the yacht. For this purpose, a full-time model maker is employed. Furthermore, Lurssen gives painstaking attention to detail at all stages, as well as in the degree of hand finishing involved, particularly for the deck areas and accommodation quarters. The materials employed in the vessel’s structures are typically of steel and aluminium, but there the application of conventional materials ends. As far as the interior fittings and finishes are concerned they are only limited by the imagination and creativity of Lurssen’s n own designers.
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TAKING WIND POWER ON BOARD Stena Line is one of the world’s largest and most successful ferry operators. Philip Yorke looks at the company’s culture concerning safety and the environment and at a philosophy that keeps it at the forefront of the ferry industry. We also take a closer look at Stena’s latest, innovative move to put wind power on board its ferries in order to reduce fuel consumption and supply sustainable energy at sea.
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tena Line was established in 1939 in Gothenburg, Sweden by Sten A Olsson who began by creating the metal trading company: Sten A Olssons Metallproduktor. Following several strategic mergers and some major acquisitions, including that of the UK operator, Sealink British Ferries, the company grew to become a major force in the ferry industry. In 2010 Stena Lines biggest reorganisation programme began with two brand-new super-ferries going into service. The investment was the biggest to date in Stena Line’s history with a total of SEK 7 billion being invested in the two new ferries and in the conversion of four of their sister ships.
Today the company operates 19 major ferry routes in Scandinavia and around the United Kingdom with connections between eight different countries. With its fleet of 35 modern vessels the company employs around 3000 people and in 2011 recorded sales of almost SEK 10 billion.
Innovation for a better world Stena’s vision for providing added value is that customers must have the best possible experience when they choose Stena Line for their travel, holidays, relaxation or freight transport. The company’s focus is firmly on constantly improving their services by developing innova-
tive products and services that optimise the travel experience for all. Traditionally the company has had a strong culture of innovation, with their own employees contributing thousands of ideas for everyday improvements, a great many of which have been adopted over the years. A recent example of Stena’s innovation at work is its introduction of the world’s first installation of onboard wind power on a passenger ferry. The Stena Jutlandica, which operates on the route between Gothenburg and Fredrikshaven, has been equipped with two wind turbines at the prow, which supply energy and reduce fuel Industry Europe 107
consumption. The project is part of Stena’s energy saving programme, which currently includes some 200 such environmental improvement projects. The turbines are mounted on four metre high masts on the prow of the ship and can generate about 23,000 kWh per year. The electricity they produce is used to power, among other things, the lighting on the Jutlandica’s car deck. The prow-mounted turbines also help to reduce the air resistance of the vessel at sea, resulting in a reduction in fuel consumption of between 80 and 90 tonnes per year. Stena Line’s operations in Scandinavia are already environmentally certified to ISO 14001. During recent years a significant number of environmental improvement measures have been implemented that have resulted in both lower energy and lower fuel consumption across a wide spectrum of operations. 108 Industry Europe
For many years now Stena Line has set itself stringent environmental goals which have resulted in its commitment to the environment to become prevalent in all areas of its operations. The company’s key objectives are to reduce energy consumption, reduce emissions into the atmosphere, reduce emissions into water, and to increase the proportion of its waste sorted at source.
Investing in new routes and ships Recently Stena Lines was able to announce that it had been granted full clearance by the Competition Commission to proceed with the acquisition of the DFDS sea routes from Belfast to Liverpool and from Belfast to Heysham. This important acquisition, which amounts to an investment of more than £40 million, will enable Stena Line to improve its services on the Irish Sea by offering several different alternatives for transportation between North-
ern Ireland and Great Britain. At the same time, the acquisition will improve service and frequency for both passengers and freight. As part of the deal, Stena Line will also acquire four ships from DFDS which will include the chartered Lagan Seaways and Mersey Seaways on the Belfast–Liverpool route and the freight carriers, Scotia Seaways and Hibernian Seaways. This will bring the number of Stena Line routes on the Irish Sea to six, thus adding to the existing BelfastStranraer, Dublin–Holyhead, Dun LaoghaireHolyhead and Rosslare–Fishguard routes.
New concepts in safety at sea Safety is the prime concern for all ferry operators and provides the foundation for all subsequent operational activities. At Stena Line there is no ceiling for investment in safety, and the company allocates resources pro-actively whenever the need
arises. Among the countless Stena Line safety procedures to be upgraded recently, there has been a new development in the method of lifting life rafts. Thanks to this latest innovation, life rafts can be lifted complete with the passengers on board onto a rescuing vessel in a single operation. Until now, those in distress have had to be winched aboard helicopters one person at a time. This latest development in safety improvement was the result of close collaboration with the Swedish Sea Rescue Society. This novel concept also uses the Swedish Sea Rescue Society’s small rescue runner craft, which are designed to round up the rafts and connect them to the assisting vessel. Stena Line also works to develop and improve the competence of its officers with training programmes held in association with the MRM (Marine Resource Management Institute) and the Chalmers University n of Technology.
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SMARTER MATERIAL HANDLING A
tlet AB is based on Gothenburg, Sweden and is one of the world’s leading manufacturers of warehouse trucks. The company was founded in 1958 when Knut Jacobsson decided to design and create a new truck from his home that offered better ergonomics and handling characteristics. From his two-room apartment, the company has grown to become a world-class and internationally respected materials handling expert that continues to set new standards for the industry. The company’s early focus on ergonomics and innovation has not diminished with time, and today it employs around 1500 people and is represented in more than 45 countries worldwide. During the early years pedestrian stackers and reach trucks dominated the warehouse truck market and it was at that time that Knut Jacobsson invented a stand-stacker that was unique, because it could be used in very narrow aisles with ease, thanks to its patented side stabilisers. The company’s culture of creativity and innovation lives on with the most recent technological and ergonomic advances to be found in two new ground-breaking models: the Presto PLP CD and the Tergo personal reach truck. 110 Industry Europe
Improving customer efficiency and profitability The single most important objective at Atlet trucks is to improve its customers’ profitability. Many of the company’s trucks are tailor-made in order to meet the unique challenges that await them in the material handling operations of companies, warehouses and manufacturing industries worldwide. Atlet designs, develops and produces trucks at Molnlycke, Sweden, adjacent to its head office where around 5000 trucks are manufactured every year. Here every fifth truck is produced to meet specific customer specifications, which creates a need for flexibility in design and assembly. The ultra-efficient robotics and assembly processes mean that the lead time from the date of order to delivery is usually 3 to 15 weeks depending upon the complexity of the specifications. All Atlet trucks are based on seven basic chassis with less than 3500 components involved and these are exhaustively tested for optimal reliability. The unique, Atlet modular system is the backbone of the company’s efficient product development and every Atlet truck’s trouble-free life cycle. The company’s customer-orientated process is designed
Atlet AB is a global leader in the design and manufacture of hightech warehouse trucks. Philip Yorke looks at what it is that keeps the company ahead of the competition and at its latest, innovative, ground-breaking products.
to improve material handling and deliver increased profits for the end user. Working in close partnership with its customers, Atlet is able to develop trucks that satisfy every customer’s most challenging demands. However, at Atlet everything begins with a full understanding of the customer’s materials handling operations and their specific needs. From the outset, the company continuously gathers input from its customers, often on the basis of pilot studies and after several intense questioning sessions. This is in order to determine the smartest way to produce each tailor-made truck. Before the final concept is defined, Atlet builds a full-scale prototype which is then rigorously tested at its facilities in Molnlycke, Sweden. Once the truck has been delivered to the customer, the Atlet aftersales organisation takes over and supports the customer throughout the truck’s entire life cycle. This means providing service, parts and updates in order to ensure cost-effective, efficient and secure internal material handling – from beginning to end.
Innovation and reliability driving sales In keeping with its innovative traditions, Atlet has developed a warehouse truck, at a
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stroke, that combines its high, doublestacker efficiency with long-distance capacity. The company’s ‘doubly efficient long-distance runner’, the Presto PLP CD, offers superior handling and ergonomic characteristics along with greater flexibility and efficiency. Jan Callderyd, Atlet’s senior product manager, said, “The all-new Presto PLP CD fits perfectly into the loading/unloading and cross-docking market segment, which means that we can offer our customers the 112 Industry Europe
best of two worlds in one truck. Ergonomics, safety and efficiency are our top priorities – and that is precisely what our customers expect from an Atlet truck like the new Presto PLP CD.” Another recent addition to Atlet’s product portfolio is the long-awaited Tergo, which is heralded as ‘The world’s most personal reach truck’. This new generation warehouse truck is designed to minimise operator fatigue and to be the most ergonomically perfected truck
on the market today. The new Tergo has been designed around the operator, by the operator. To enhance customer productivity, the new model offers a wide range of personal adjustments and innovations, thus providing a strain-free, variable and harmonious working environment for the operator. Atlet’s product development manager, Dan Ulmestrand, said: “Our aim was to design the world’s most personal truck. By involving users from the very beginning of the project
Be-Ge With over 60 years of experience in comfort of the driver environment we know what you’ll need to create a good workplace. In addition to obvious things as optimum seating comfort, quality and durability, most of our products are modular built. This creates great flexibility and allows the seat to be adapted to all our customers different demands, one of our main strength. Our many innovations also position our products in the forefront of technological development.
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and then continuously soliciting their input, the operators had a profound impact on the final result.” Ergonomics have been the hallmark of Atlet trucks since the early 1990s. Recently Chalmers University of Technology in Gothenburg carried out an extensive comparative ergonomic evaluation study. The study compared the new Atlet Tergo with three other comparable makes and showed that the Tergo offered more ergonomic working postures than
any of the other reach trucks. So we are very pleased that our hard work continues to pay off. Today our goal is to take a stronger position within the market for warehouse trucks, and this new launch of the Tergo reach truck helps us to secure our position as one of the world’s leading suppliers of high performance quality trucks.” In Europe, reach trucks form the main force in most internal material handling operations,
with a significant proportion being used within the food distribution sector. Bengt Kristiansson, vice-president of sales and marketing at Atlet, said, “In Europe we meet the demands from intensive food distribution to stack higher, heavier and faster, as well as meeting the requirements from new, fast-growing businesses in eastern Europe who require a more basic truck, but still with a focus on the operator and productivity.” n
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HEAVY LIFTING Based in the northern Italian city of Piacenza, Bolzoni has established itself over 60 years as not only the largest lift truck attachment producer in Europe but also a world leader in its field, writes Beverley Young.
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ounded in 1945 and family owned until the 1970s, Bolzoni began its European expansion by opening branches in Spain, France and the UK. In 2001 Bolzoni acquired Auramo, a Finnish company, forming the Bolzoni Auramo group. This growth then continued in 2006 when the group acquired Hans H. Meyer GmbH, merging the high quality products of two leading companies to provide the best product range on the market for forklift attachments.
With seven production plants and 18 companies, Bolzoni employs more than 700 people, and its recent investments in China guarantee its future growth. It now has branches throughout Europe and on every continent and turned over around €115 million in the year ending 2011, representing a healthy 25 per cent rise in revenues. But Bolzoni was not completely immune to the economic downturn of the past years as marketing director Carlo Fal-
larini explains: “2009 was, without doubt, a difficult year in our sector as forklift sales dropped to less than half that of the previous year as companies cut back on investment. Fortunately things began to pick up in 2010 and this has been further consolidated in 2011 which can definitely be seen as a year of recovery. 2011 also saw other success stories for Bolzoni and its reputation as a well respected industry, and one which its
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city of Piacenza is proud of, can be seen when, in July 2011, Chairman Emilio Bolzoni, was appointed President of Confindustria for Piacenza. Confindustria is Italy’s leading organization for the representation of its manufacturing and service industries and is present both locally and nationally. “Our present growth,” continues Mr Fallarini, “has been mainly linked to our traditional markets, Europe and the USA, Germany being our biggest market while Asia and China are an investment for the near future.”
So how did Bolzoni react to the downturn? “By looking to new, future markets in Asia and by innovating our products.” states Mr Fallarini.
Future expansion 2012, in fact, will be an exciting year for Bolzoni, the year in which their two new factories in China will open. The first, 200km outside Peking, is for the production of forks, and the second, 150 km from Shanghai, will produce more specialised equipment such as positioners, clamps, push-pulls, etc. These
factories, which have been built at a cost of €10 million, will serve not only China but far eastern countries such as Singapore, Korea, Taiwan - all those countries in which Bolzoni foresees a major future expansion. I asked Mr Fallarini about this project. “While Asia is already giving us positive results the two new sites we are completing in China, which will be operative in the spring and summer of 2012, are seen as a strong future investment for Bolzoni. It’s worth pointing out that the Chinese forklift industry is bigger
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than the European and American industries combined and as their industries develop and ‘refine’, needing more specialised equipment, so too will the sales of our forklift attachments.”
Constant innovation and research To maintain its position as leader in its field, Bolzoni has constantly invested in research and technology, renewing and improving its lines continuously. “In the last two years,” continues Mr Fallarini, “we have up-dated approximately 60 per cent of our range and we are particularly proud of our latest innovation, the i-MOVE (intelligent move). With this attachment
– known as a white goods clamp – we have successfully improved an electronic system we introduced 15 years ago making it even more sensitive and able to handle extremely fragile loads, such as electrical appliances, without the risk of the slightest damage.” When asked if he could pinpoint the reasons for Bolzoni’s success Mr Fallarini had no hesitation: “Our success stems from two fundamental aspects of our enterprise. The first is the high quality and technical characteristics of our product and the wide range of equipment we produce, fulfilling every industrial need as
far as forklift attachments are concerned. This is proven by the fact that we are the official and exclusive supplier for the world leaders in fork lift production. The second aspect which has led to our growth and success over the years has been our ability to cover all the main global markets for forklift production. Our extensive network means that we can serve our clients in over 40 countries not just with our range of products but also with aftersales support which is second to none.” Where forklifts are used, then, Bolzoni’s presence is n almost always guaranteed.
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HANDLING A WORLDWIDE REPUTATION Founded 50 years ago, Italcarrelli has built itself a reputation as a world leader in the design and construction of forklifts and ancillary technologies for storage – and then, in 1995, it added glass handling systems to its portfolio, with huge success. Felicity Landon reports.
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he first electric cars in 1969 … the first sideloaders and large-scale platforms in the late 1970s …a leader in the development of unmanned automatic guided vehicles (AGVs); Italcarrelli is a company that’s used to being out in front and it intends to stay there, says sales manager Davide Schiavon. “Certainly the continued innovation and technological research in order to provide our customers with cutting-edge machines is one of our unique strengths,” he says. “During the design process and production, much attention is paid to detail and quality of materials and components that are installed. We devote much attention to the training of users, and we guarantee our clients a timely and excellent after-sales service.” However, he says, Italcarrelli’s trump card is “definitely our flexibility and ability to adapt to all requests.” Customer satisfaction is based on responding to even the most complex challenges, he says. “And if customer satisfaction is the goal, that goal can only be reached through continuous improvement and updating of our products.”
Based in Chiampo, north-east Italy, Italcarrelli produces machines for the handling of any goods – especially very heavy and bulky ones. The range includes forklifts, sideloaders, flatbeds and platforms, and specialised equipment, to handle goods from production to warehouse, and from warehouse to shipping department. “We are present in many sectors, particularly the specialist ones such as the metallurgy and steel, glass, construction, shipbuilding, composite materials, chemicals, energy and heavy carpentry industries,” says Mr Schiavon. “The key to success is that our products in the special sectors can be customised, based on the needs of each individual customer, and innovative technologies that we install on our machines. And in the handling of glass, we are undoubtedly a world leader.” Italcarrelli’s customers are major manufacturers across all sectors and around the world; in the glass sector, that includes names such as Sisecam, Saint-Gobain, AGC, Pilkington and NSG. In other areas, it works with companies such as Arcelor-Mittal, Danieli, Allard Europe, Enel, Enichem, Lannutti and LG.
Global orders Italcarrelli recently signed a major contract with Sisecam, as the sole partner for the handling of glass in all four of new float lines to be built in Bulgaria, Russia and Turkey, and to supply the fleet of 46 machines also for plants already in operation in Turkey. “We also have an important contract for the supply of various large-scale, self-propelled platforms, including one for 400 tonnes, to a major Chinese company in the energy sector,” says Mr Schiavon. “This type of customer is very demanding, requiring highly productive machines able to work 24 hours a day, with low maintenance costs. In recent years we have met increasing demand for greater comfort and safety for operators, and for solutions to automate, as much as possible, the use of our resources in order to avoid possible errors by users. These priorities are the basis of our policy of machine design – our solutions are highly appreciated by customers who often use our characteristics as a reference for drafting the RFQ.” The Italcarrelli name encompasses a network of companies that work together Industry Europe 119
directly and indirectly, employing more than 200 people. The main company has two factories in Vicenza, one dedicated to the production of special machines in general and the other dedicated to the production of special machines for glass. There is also a production line in China, for standard forklifts only. “In our factories in Italy, where we produce special machines, we design, assemble and test our products. All other operations such as carpentry, mechanical work, painting, etc, are carried out by partners which are part of the network of companies created by Italcarrelli,” explains Mr Schiavon. “This system allows us to have high quality standards, as each of the companies is highly specialised in a certain type of work, and at the same time can be very flexible, with production in line with the market.” The company has a global presence. “Today we have machines that are operating everywhere from Australia to China, Southeast Asia and Middle East (Iran, Iraq, Saudi Arabia), India, Russia, North and South Africa, the Americas and, of course, Europe. We have an excellent sales team that can give support to
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all our agents in the world. Most of the special projects are monitored by our technicians onsite, so we can provide timely and comprehensive responses to all our clients and propose solutions.” Italcarrelli has machine maintenance agreements with companies throughout the world. But at the same time, its design engineers always focus on creating machines with simple maintenance requirements.
Electric experience When Italcarrelli produced the first electric cars in 1969, battery-powered machines were something of a novelty at the time. “Today, of course, they are practically the only choice, especially for machines working inside factories,” says Mr Schiavon. “Because we developed this technology much earlier than others, we were able to accumulate a lot of experience compared to our competitors. Italcarrelli has always invested heavily in the development of electric cars; we have tested many types of motors and electronic controls for maximum performance from our machines.” For several years the company has been using AC technology to allow the use of brush-
less motors, which are considerably higher performance compared to DC motors and require much less maintenance. Another very important period for the company was in the late 1970s, when it produced the first side-loaders and large scale platforms. “These types of machines are some of our main products which find application in many sectors such as steel, foundry, glass, heavy construction, etc,” says Mr Schiavon. In 1995 came the glass division. “Glass is an area where we have and we are still investing heavily. In a short time we managed to become a leader in this area, with a turnover in 2011 of €25 million, with operating machines in all major glassmaking factories around the world.” What comes next for Italcarrelli? The market has evolved significantly over the past year particularly, says Mr Schiavon. “Companies today must be very dynamic and have the ability to adapt to the ever-changing market. We worked very hard to get to this reference position and now our goal is to consolidate it by following our values, which to date have been so successful, together with new paths of innovative machines, such as AGVs, which are increasingly required by our customers. n
THE BUSINESS OF LIFTING Sarens NV is a recognised worldwide leader in heavy lifting and engineered transport. Abigail Saltmarsh looks at the company’s growth within the petrochemical, and oil and gas, industries.
arens NV has a long history in heavy lifting and engineered transport, and is today a major player in the market for equipment for the petrochemical, and oil and gas, industries. Business Development Manager, Dirk Verwimp, says the company now produces a range of heavy lifting and versatile cranes suitable for diverse projects in these industries, across the world. “We now have machinery and workshops in all the most strategically important places for
the petrochemical, and oil and gas, industries from Brazil and Canada to Australia, Africa and Kazakhstan.” he says. “We are also now active in places like Ivory Coast, China and Malaysia. Where the client goes, we will follow.”
A history in lifting Headquartered today in Wolvertem, Belgium, Sarens has been active in crane rental, heavy lifting and special projects since 1955. The group’s roots, however, go back to the 1930s when it was launched by a farmer who brought
his 12 children into the business. He started out with a horse and cart but quickly began adapting to his customers’ needs, looking for suitable technical solutions. Sarens would load, transport, build and assemble with the suitable equipment, always under competent supervision. This competence, combined with years of experience, eventually led to today’s expertise and specialisation. Today the Sarens group as a whole has 100 entities in 50 countries, and a yearly turnover of
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€430 million. It has more than 3000 employees yet remains a family business, with the fourth Sarens generation currently in management.
Safety first Over the years, products have developed and the company has reached out into different markets. Today, it operates in the power business, civil engineering, offshore and module yards, minerals, metal and mining, as well as maintenance and petrochemicals, oil and gas. Mr Verwimp says Sarens’s engineering, project and sales teams have a strong grasp of today’s high standards in the petrochemical, oil and gas, industries. Safety is always the utmost goal and whether it is dealing with a reactor of 1300 tonnes that is to be lifted by a crawler crane, a 1390-tonne splitter column of 125m in length, lifted by a tower system, or even the transport of a topside module of 15,000 tonnes, Sarens provides tailormade solutions for all heavy lifting and heavy transport needs. “New lifting and transport techniques are being introduced by our engineering department in close cooperation with our clients. This allows us, as a team, to execute modu-
KAMAG Sarens symbolizes for KAMAG the most highly respected and loyal customer. It is thanks also to Sarens that KAMAG has put, together with their specific know-how and suggestions, new ideas and developed and improved its range of modular SPMT’s. This cooperation was started in 1984 and still continues today. Sarens owns about 1000 lines of KAMAG SPMT’s and has carried out the most outstanding and spectacular transport jobs for size and weight. Even recently Sarens invested in a highly developed new SPMT with specific highlights regarding technical and electronic matters.
larisation and assembly of heavier components leading to safer projects with significant cost and time savings,” he says.
Heavy lift crane Equipment ranges from gantry lifting systems and lattice boom cranes (up to 3200 tonnes capacity) to telescopic cranes (up to 1200 tonnes capacity) and self-propelled modular trailers, SPMTs (more than 1000 axle lines worldwide). It also includes strandjacks, skidding equipment, barges and tower cranes. “A piece of equipment that is ideal for the very heavy lifting often required in the petrochemical, and oil and gas, industries is the Sarens Giant Crane (SGC-120),” he explains. This 3200 T capacity crane belongs to the top of the 1000 T plus class and we have 15 of these (1000 T plus class) in our fleet. They are extremely versatile.” The SGC-120, which saw construction and testing completed in March 2011. It is the product of the combined engineering skills of Sarens and its subsidiary, Rigging International of Alameda, California. It was the only third-generation, 120,000 Tm (3200 metric ton lifting capacity), constructed, and was designed to accommodate the heavy lifting requirements of refinery, oil and gas, mining, offshore platform and third-generation
components for nuclear power plants. Its features include reliable heavy lifting machine with high load moments, limited footprint and low ground bearing pressures that have minimal impact on other site works and flexible worldwide transportation in cost-effective standard shipping containers (approximately 155 containers in full config with jib).
Finding a solution Sarens also has a variety of gantry systems in its fleet, suitable for a spectrum of needs and loads. Tower systems can be used in combination with strand jacks or gantries can be equipped with their own jacking or climbing systems. Depending on the load and height of the gantries, external bracings might be necessary. It is possible to use towers in pairs (vessel lifts) or in multi-coupled lifting units (module lifts) to obtain the required lifting setup. The company has a broad experience in lifting with gantry systems. This ranges from working to lift of a top side of an oil rig of 12,000 tonnes to installing a 6000-tonne shipyard gantry at a height of 140m. “We have four types of gantries: Sarlift, SMLT, SARtower and SCT. What is special about us is that we can supply all these pieces
individually or in combination with other equipment,” says Mr Verwimp. “Our aim is to come up with a solution for our customer.”
Creative engineering The company specialises in “creative engineering,” he continues. This means coming up with the right solution and overseeing its delivery. With this in mind, it is looking for growth and it aims to push out in all areas of the petrochemical, and oil and gas, industries. “We are specialists at what we do,” he says. “We are in a strong position for the future, with a lot of projects ongoing in these industries. “We are looking for expansion in a number of geographical locations, especially in the USA. And although we may make some small acquisitions in the future, we do expect to see most of our growth achieved organically, because of the specialist equipment we n are able to offer.”
DRIVE TECHNOLOGY SEW-Eurodrive is the global leader in customised drive technology for a diverse range of manufacturing industries. Philip Yorke talked to two managing directors :Daniel Philippron, (Belgium/Luxemburg) and Ton Verschuren (Netherlands) about SEW’s unique, innovative products, its enhanced range of customer services and its commitment to sustainable development.
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was founded in Germany over 80 years ago by Christian Pahr. Ernst Blickle one of the employees whose entrepreneurial flair characterised the company and drove it forward, and whose legacy lives on today. SEW’s innovative drive technology can be found in countless industries throughout the world, driving conveyer belts, escalators, assembly lines and luggage carousels at international and regional airports. They can also be seen at work in sports stadia roofs, gravel plants and throughout manufacturing facilities in the steel, paper, chemical and automotive industries.
SEW-Eurodrive employs more than 500 researchers at its headquarters in Bruchsal, Germany to create the drive technology of the future. The company has an additional 14,000 specialists focused on bringing the best drive solutions to the world’s global manufacturing industries. This is how the company has evolved throughout its long history to become the undisputed market leader in the field of drive automation, with a turnover of more than €2 billion. Today SEW-Eurodrive offers its customers individual drive solutions from its comprehensive modular business concept. The company develops and delivers state-of-
the-art gear motors and frequency inverters, servo-drive systems, decentralised drive systems and industrial gear units, all of which are designed to suit a customer’s specific needs.
Creating the competitive edge SEW’s priority is to provide its customers with a competitive edge and to develop customised gear motors that meet the specific requirements of each individual customer’s specification. The company’s well known motto, “People do not need products they need solutions”, is evident in every aspect of SEW’s R&D programmes and its diverse range of customer care services, where its optimal drive solutions are created. The company also supplies the customised electronic solutions for its own drive components, stating that, “only if the control systems are perfectly matched to the drives, will there be an optimum through-flow.” This philosophy gives developers, designers and planners of systems and projects their dedicated drive solutions from one single source, which in turn allows them to put
in motion the optimal control efficiencies required in order to manage a wide range of manufacturing processes. Mr Philippron said, “In Belgium we have traditionally been focused on the steel and automotive industries but have moved forward to serve a much wider range of industries and to enhance and improve the scope of our customer services. We are investing in our consulting and engineering support capabilities and focusing on providing specialised services for the benefit of our customers and end users.” Mr Verschuren added “We also offer fast and reliable delivery schedules. And thanks to our high degree of independence as a private company, we can develop our own product based solutions and services to meet the diverse demands of our local OEM customers and those involved in the food and beverage industries”. “In Belgium we also have the potential to deliver a wide range of products, systems and technologies and can react faster than our competitors to market forces and the
changing needs of our customers. We offer a unique consultancy service and for those of our customers who have their own application technology resources, we can modify our products to suit their specific requirements.” Mr Philippron added, “We have an extensive product portfolio and are looking to extend our presence in the chemical industry where our products can play a major role in helping these industries to achieve greater efficiency and more sustainable development. As a 100 per cent private company we are innovative, flexible and motivated to create the best solutions for our customers. We are focused on strong organic growth and have 65 manufacturing sites, assembly plants and branches located in 46 different countries worldwide. We are well known for our innovative, energy-saving solutions and are currently manufacturing over 2 million advanced gear motors for our clients every year.” Mr Verschuren said “We are also the clear market leaders in our business segments and lead the field in providing the most advanced, energy-saving solutions. With our unique
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Mobil SHC high-performance synthetic lubricants: Recom-mended by SEW-EURODRIVE As a leading company in the field of drive engineering, SEW-EURODRIVE realises the importance of advanced lubrication in helping to increase producitvity. That’s why SEW-EURODRIVE recommends Mobil SHC high-performance lubricants for factory-fill and service refill worldwide. Mobil SHC gear oils can significantly extend equipment life, oil drain intervals and improve the energy efficiency of machines. These advanced lubricants provide outstanding protection, even under the toughest operating conditions. SEW-EURODRIVE has relied on ExxonMobil’s range of high performance lubricants since 1995. In partnership, both companies strive to help manufacturing and processing companies achieve a competitive edge in their operation.
customer service portfolio, CDS™, we offer a complete and comprehensive drive service for our whole product range, from our smallest gear motors through to our heavy, industrial gear units and advanced-drive electronic systems. These specialised services cover the entire life cycle of a product, from installation and start-up through to its operational phases and maintenance schedules, and if required, to complete modernisation and optimisation.” Today, the global SEW-Eurodrive service network offers a perfectly coordinated range of services to ensure that its customers’ equipment runs smoothly and that all their drive requirements are met in the shortest possible time. The company’s local portfolio of services
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includes express assembly, installation and start-up, a repair field service and spare parts delivery. This is in addition to providing hot-line technical advice, training, application programming and documentation. In Marche en Famenne (Be) a unique service activity was developed to support the BeNeLux market as well as the industries in the North of France for the repair of all brands industrial gears.
Sustainability – an integral concept At SEW-Eurodrive, sustainability is an integral concept that combines ecological, social and economic considerations in a meaningful and productive way. The company’s aspiration to see the big ecological picture
applies to every aspect of its every-day business activities. Whether it concerns quality control, environmental protection, products or communications, the theme runs through all areas of its manufacturing processes. In addition, every two years, SEWEurodrive publishes a retrospective sustainability report. These reports provide the company’s customers and partners with detailed information regarding its global environmental commitment and progress, with transparency being the foundation of its corporate philosophy. This openness provides the dialogue for future sustainable developments within the company, and for its customers and n partners around the world.
GAS CONTROL Frankfurt-based Spectron Gas Control Systems is supporting customers in a range of industries in the safe use of gas, and they are about to take their specialist expertise into Asia – as Julia Snow found out from Johan van der Klift, the managing director.
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as is present all around us every day, in carbonated drinks and other food production, as well as in hospitals, laboratory environments and industrial and electronics manufacturing. The nature of gasses is as varied as the industries they are used in, and there are high standards of safety to be met – from the use of gas in medical or hospital environments through to the handling of highly toxic gases in petrochemical plants. Spectron Gas Control Systems GmbH offers a whole range of solutions, containing all the appropriate components for a wide spectrum of gases and applications, from a simple
valve for industrial gases up to fully automatic gas cabinets for semiconductor gases, from pressure regulators to complete supply systems. The product portfolio also includes alarm and control systems for gas applications, as well as gas purification systems to improve or secure the purity of the gases.
New location Spectron is part of the global Messer holding group, which has over 110 years of history in gas applications in the cutting and welding industries. Last year the company split from the Oxyfuel division’s activities, and became
an independent limited company. Around €1 million was invested in the new location for the company, resulting in a cutting edge set up, says Mr van der Klift: “We have a total of 1500m2 here, which house 11 modern Just in Time production cells. We have a clean room as well as a brand new ultrasonic cleaning machine and a vacuum testing machine. We recently rented an additional 400m2 nearby, which we are about to utilise.” 60 staff work in the Frankfurt headquarter which combines all main business functions, including assembly, quality control, R&D and sales. In addition there is a team of 12 staff in a
smaller production and sales team in Coventry, UK, which was acquired 4 years ago and acts as the company’s competence centre for gas applications in the semi conductor industry. Environmental considerations are central to the business, says Mr van der Klift: “Our production is clean, because we outsource nearly all manufacturing and the assembly we do here has no environmental impact to speak of. Our products contribute to ‘green technologies’ because they are needed in environmental and energy analysis, like using gases to measure emissions for example.”
Applications Modern gas applications require highly specialised expertise, says Mr van der Klift: “Although the industrial use of gases goes back to the early 20th century, for a long time it was simply for cutting and welding. In the last 20–30 years technologies and processes have evolved beyond recognition, giving rise to more specialised applications.” So where is Spectron’s expertise needed today? “Basically anywhere where gases are used and where equipment is used to reduce pressures or manage flows.” Mr van der Klift, explains: “This could be anywhere in food, medical, petrochemical, automotive or manufacturing processes – but I would say that our main business is in high-purity, toxic or corrosive gases. These are more difficult to control and we can support users to do so safely. Our
German Premium-Quality Uncompromising premium quality: This is what COG offered to their clients for more than 140 years now. As an independent manufacturer COG is a specialist in the production of precision O-Rings and elastomer seals. COG delivers from Europe’s largest O-Ring stock (more than 45,000 items from stock) most various materials, including FFKM/FFPM. This German manufacturer is a leading supplier in the seal technology thanks to their comprehensive stock, flexible production facilities and customer service commitment.
strength is that we can customise our products to respond perfectly to the challenges of each individual application.”
Markets Spectron is present in the market with an inhouse team of sales engineers who work with the German and UK customers. In all other countries there are distributors who look after end users or installers. Spectron’s reference list contains all the big names in gas-related industries. “Most of the large gas suppliers are on our customer list – and the cutting and welding sector is still an
important one for us too. But as a component manufacturer we also have significant sales to laboratory furniture makers and laboratory installers.” Germany is still the most important market for the company but with the low predicted growth rates in Europe, Spectron is about to make a serious move to benefit from the more rapid expansion of industries in Asia. “We expect our future growth to come from China and India, where 10–12 per cent growth rates are a reality. We recently invested €250,000 into our Chinese location, where we’ve had a sales and service office for a while.
We’ve created full facilities for configurations and repairs and aim to double our staff from 4 to 8 by the end of the year.” However, a firm commitment to Germany is part of Spectron’s strategy, says Mr van der Klift: “When we became an independent business unit last year, we decided to continue producing in Germany. Only here, we feel, can we guarantee the top quality and the levels of customer support that are needed for our highly customised solutions. Still, we can remain competitive because our lean production, smart design and the use of modular components allows us to keep prices realistic.”
Future outlook In the coming years, Spectron aims to develop the distribution network further, in order to penetrate markets both in Europe and in the growing Asia-Pacific area. The company experiences strong demand from the semi conductor market, in particularly from the burgeoning photovoltaic technology used in solar energy applications. “It is important to us to be seen as leaders in quality and technology.” Mr van der Klift emphasises. “Our dedicated R&D team is very strong in redesign and innovation – so we have some real surprises in the pipeline for Achema n in Frankfurt this July.”
Since 1976, National Instruments has equipped engineers and scientists with tools that accelerate productivity, innovation and discovery. NI’s reputation as an industry leader is built on proven technology, visionary leadership and consistent financial and organic growth. 136 Industry Europe
ational Instruments provides engineers and scientists with an integrated software and hardware platform that accelerates the design and implementation of any system that needs measurement and control. Customers use this platform to develop and test measurement, control and embedded systems in industry, from design to production, in advanced research and in teaching engineering and science. The Austin-based (Texas, USA) company opened its new plant in Debrecen, Hungary, in 2001. This subsidiary company that focused
only on hardware production in the very beginning, now has more than 1000 employees working in 13 different departments including legal, finance, HR, IT and engineering. These departments provide support for not only European but also global teams and projects. With this headcount, NI Hungary is the second biggest employer in Debrecen/fourth biggest employer in Hajdú-Bihar county. More than 600 people work directly on the production field and 60 employees are engaged in Research and development activities in four different engineering departments (ICT and
FVT process engineering, calibration software engineering, sustaining engineering). The typical NI approach is to make products in a high-mix, low volume process. ninety-five per cent of the orders received for products are manufactured at NI Hungary. Defective components are repaired at the plant, and multiple calibration services are also available. Dr László Ábrahám has been the general manager of NI Hungary since the opening in 2001. Last year, in 2011, the Debrecen based plant celebrated its 10-year
anniversary as well as commemorating the 35th anniversary of the global company. Mr Ábrahám’s 10-year governance shows the stability of the company – there were no requirements for additional capital input and the company also maintained its relationships with all its partners. According to a survey carried out in 2010, NI Hungary is the 64th highest earning company in Hungary. The company’s skilled and efficient workforce and their hard-working contribution to the business activities enabled NI to achieve global success.
Award winning, innovative products The Hungarian plant is a major player in the measurement, control, embedded systems and graphical design industry. Year by year it expands its product range with hundreds of innovations. Currently it produces 2500 different kinds of products – introducing two new ones daily. In the spring of 2011, the company’s myDAQ personal laboratory tool, received two different Innovation Awards: the Hungarian Chamber of Commerce Award of 2010 and the Public Foundation Award Industry Europe 137
for Industry Progress. Today nearly 30 Hungarian universities use the myDAQ tool because this instrument makes the education effective and more practical. MyDAQ’s sales have been increasing dynamically – in Hungary and also in foreign markets. The company’s core value system includes the aim of continuous improvement, which is why NI works hard on innovation. Many multiple products are under development which will be the top of the line in their own
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segments. Besides NI’s hardware products, one of the main software solutions, LabVIEW, is also in the lead in innovation among other product family ranges. LabVIEW is a graphical programming environment used by millions of engineers and scientists to develop sophisticated measurement, test and control systems using intuitive graphical icons and wires that resemble a flowchart. It offers unrivalled integration with thousands of hardware devices and provides hundreds of built-in libraries for
advanced analysis and data visualisation – all for creating virtual instrumentation. The LabVIEW platform is scalable across multiple targets and OSs, and since its introduction in 1986, it has become an industry leader.
Sustaining growth despite recession In 2009 NI Hungary launched more products than ever and has even managed to gain some benefit from the recession by implementing plant-wide innovation
with all available engineering, technician and operator capacity and with the aid of Kaizen and Lean tools. As a result of these activities, NI Hungary reached nearly 15-20 per cent efficiency growth in production. 99.5 per cent of products are being distributed in foreign markets which helps to maintain competitiveness. As part of the “New Hungary Development Plan” Government Fund, NI had the opportunity to start working on two new production lines (currently eight lines are operated) that created 30 new jobs. NI believes that investing in its employees enables it to achieve higher efficiency in the long term. NI hires the best and brightest people, maintains an open and innovative corporate culture and empowers employees to progress their careers with the company. It invests 16 per cent of its profits in research and development. This approach has enabled the company to compete in the medication industry so that they can manufacture front-ranked products. Based on this strategy NI Hungary is aiming to become a centre of excellence and with this key strength hopes to reach its next goal of achieving a turnover of USD 2 billion by 2020. National Instruments’ technology leadership stems not only from the products it makes but also from who they are and how they operate. The company’s collaborative, entrepreneurial corporate culture spurs innovation in every area of the business, and a deep commitment to corporate responsibility guides its focus on issues critical to the success of key stakeholders and society. The National Instruments’ 100-year Plan, NI has become a technology pioneer by investing in not only products but n also in the people who make them. Industry Europe 139
UNDER CONTROL The Swiss company Saia-Burgess Controls manufactures electronic components for the automatic control of infrastructure systems such as heating, ventilation and air conditioning. Joseph Altham interviewed Patrick Marti, the director of corporate cales at Saia-Burgess Controls, to find out how the company’s control systems are helping organisations to lower their energy consumption.
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aia-Burgess Controls describes itself as a PLC company. PLC stands for programmable logic controllers, components that are used to control for instance HVAC (heating, ventilation, air conditioning) inside a building. The company was founded in 1920 and originally made timer switches for such applications as staircase lighting. Earlier, its switching devices employed electric motors but in the mid 1970s Saia Burgess pioneered the development of electronic PLCs. “The motors and switches were replaced by electronics and became programmable,” said Mr Marti. “A PLC is a unit on which you can program defined behaviour. It operates on the basis of the signals it receives from outside to carry out the actions you require. For example, a PLC in an air conditioning unit will record values from temperature, humidity and air quality sensors
and will then decide how and whether the air conditioning needs to be switched on or not to reach the required air qualities.”
Big projects Room control is one of the simplest applications of the Saia PLCs. On a much larger scale, Saia’s programmable devices are used to manage conditions in numerous infrastructures like buildings, warehouses, district heating, water treatment, on board ships and inside tunnels. For infrastructure automation, it is vital to employ programmable control devices that are durable and reliable and Saia’s products are designed to last between 18 and 25 years. In big projects, like the Lötschberg tunnel under the Alps, Saia’s PLCs control and monitor many different processes.
“A large tunnel is really the sum of many applications, from lighting and ventilation, CO2 monitoring, emergency lighting, fire detection and alarming to traffic control systems and radio network, that all have to be permanently monitored and controlled. Our programmable devices manage all these applications with ease, from controls to communication and visualisation. As the tunnel is 35 kilometres long, you can see why our customers need their investment to last at least 15 years without any problems.”
PLCs for the digital age Saia’s PCD range of control devices can be connected to a personal computer and the information they hold can be viewed online. In general, connecting a PLC to the web makes the equipment easier and more accessible to
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control, as Patrick Marti explained. “In today’s automation environment, the user needs to interact with the tools he has and knows – to modify the room temperature without being either a heating engineer or a programming specialist. So users often need to interact with the automation devices from a PC. For example, thanks to the integral web-servers in all controllers, the person at hotel lobby is able to view the particular status of any room personally and in case of questions from the guest, he can immediately interact with the room and if necessary adjust the air conditioning for the guest.” Saia Burgess even offers automatic control devices equipped with a web-based touch panel that displays the information on screen. These devices help housekeeping staff in hotels and apartment blocks to control a building’s electricity and central heating. “A typical user of our web-based panels might be a janitor in an apartment block who needs to monitor the functioning of the building. The panel lets him get information directly on the cabinet, making it easier for him to operate the installation.” Even if PLCs are designed to communicate with computers, a PC cannot serve as a substitute for a PLC. “The function of a PLC is to control the application. It
must operate in a stable, reliable way over decades. Maintaining PC and upgrading the software over that period of time is by far too expensive for professional applications. Saia PLCs give you the necessary stability and robustness for your controls tasks but also let you access the data using your own IT.” In regions with aging population, it gets harder to hire enough technical skilled people. In parallel, automation gets more complex to cope with ever increasing legal, safety and comfort expectations. And energy saving is not anymore just wishful, it becomes compulsory. For this reason, Saia includes all the data storage and interfacing right into the controller, to make sure that all data necessary to operate properly a process are available for anybody with the tools – office - ERP – Internet Explorer.
Saving energy When the data can be viewed on a PC, it can also be recorded and analysed. “People need to be able to exchange data easily without the aid of specialised software. Data in Saia controls systems are stored in Excel format and can be accessed from anywhere. This means that all you energy consumption data are always accessible from anywhere. The system
is even able to send you a mail on demand with all the data. This makes the data easy to exploit.” Data capture has an important role to play in lowering energy consumption. “In addition to the fact that you need data to influence the behaviour on energy consumption, it provides valuable information to base an investment case or to deliver a diagnostic about an installation. With a ventilation system, for example, you can monitor how much power the fan is consuming. As the power consumption of the motor fan depends on the airflow, dirty air filters increase the energy consumption. Likewise, with pumps, data on the electricity consumption can indicate a malfunction.” In today’s world, organisations need to pay much greater attention to the amount of energy they use and Saia’s technology can make a unique contribution to improving energy efficiency by delivering easily the right data to the right person. “People are naturally sensitive to the cost of energy and the regulations are making it obligatory for new designs to be built in a way that enables energy use to be monitored. In Germany, especially, the government wants to adopt energy-saving policies so Germany is likely to be a growing market n for us in the future.”
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MAKING SYSTEMS EFFICIENT Sensata Technologies is a world leader and early innovator in mission-critical sensors and controls, which help to improve the safety and comfort for millions of people every in a wide range of applications. Julia Snow reports on the most recent acquisition and the company’s positive 2011 results.
ensata Technologies Holding N.V. is one of the world’s leading suppliers of sensing, electrical protection, control and power management solutions with operations and business centers in eleven countries. On average, Sensata manufactures 20,000 different products and ships over 1 billion units a year under the brand names Klixon®, Airpax®, Dimensions™, Qinex™ and – the most recent addition to the brand family Sensor-NITE. Sensata’s products optimize the customers’ own leading-edge technologies and thereby play a vital part in maintaining efficiency and safety in nearly every field of daily life, from automotive, aircraft, industrial or military applications to heavy vehicles, heating, air-conditioning and ventilation technology
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right through to data and telecommunications and recreational vehicles.
Over 100 years of ongoing growth The corporate roots go back well over a century, when the General Plate Company was founded in Massachusetts in 1916 to provide gold plate to the Rhode Island jewelry industry. As the company grew a number of mergers and acquisitions took place, and in 2010 it was floated on the New York Stock Exchange. Today a total of 12,500 employees are employed in the two main business segments of Controls and Sensors. Sensata’s European head offices are located in Almelo in the Netherlands, and in addition there are Business Centers and
manufacturing sites in Belgium, the Netherlands, Brazil, Bulgaria, China, the Dominican Republic, Japan, Korea, Malaysia, Mexico and the United States. A worldwide network of Sales & Marketing offices is looking after the customers in their home markets, generating 25 per cent of business in Europe, 33 per cent in Asia and 42 per cent in the Americas.
Positive end of year results In their recently published Fourth Quarter and Full Year results the company was able to report a net revenue of just over $1.8 billion in 2011, which represents an increase of $286.9 million, or 18.6 per cent, from the previous year. Tom Wroe, Chairman and Chief
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Executive Officer, said, “The fourth quarter was a challenging quarter given the continued volatility and uncertainty in the macro-economic environment. However, we are pleased that we were able to close the quarter slightly ahead of our revised estimate and today, are reporting net revenues for the full-year up 19 percent over 2010. While certainly not immune from macro-economic forces, we continue to be confident in our growth strategy and the pillars of our long-term financial model.” While Sensata’s ‘Controls’ business segment is a major player in worldwide electrical and power protection industries, the company’s activities in the ‘Sensors’ segment have established market leadership in markets as diverse as automotive, heating, ventilation, air conditioning and industrial fields.
Market leader in industrial sensors A sensor measures stimuli and converts them into a signal, which can then be read by an observer or an instrument. Sensata is the number one supplier when it comes to pressure sensing for HVAC/R, automotive, and industrial markets, making pressure sensors with ceramic capacitive and hermetic technologies for a full range of automotive and heavy vehicle off-road systems — from
improving safety and performance to helping the environment by reducing vehicle emissions and improving gas mileage. The range of industrial sensors includes Airflow Sensors, Analytical Sensors (Spreeta), Automotive Sensors & Switches, as well as Termperature and Pressure Sensors. Sensata’s high-added-value electronic and electromechanical sensor systems and subsystems are in demand in the fields of Aircraft & Military, Automotive, HVAC/R, Industrial, Motors & Rotating Equipment and Transportation. Although Sensata Technologies is headquartered in Attleboro, Massachusetts, European customers are supported by an application and quality engineering, sales and customer support team out of Sensata’s European business and technology development centre located in the Netherlands. Supply flexibility within Europe is ensured by delivering all products from a central warehouse: the logistics center in the Netherlands.
Important acquisition In the third quarter of 2011 Sensata Technologies completed the acquisition of Sensor-NITE, from the Elex Group for €225 million. With recorded revenues of approximately $135 million in 2010 Sensor-NITE is a leading manufac-
turer of high temperature sensors used in the exhaust after-treatment systems of diesel and leading-edge gasoline engines. The business is headquartered in Belgium and owns manufacturing sites in Sofia and Botevgrad, Bulgaria. Sensor-NITE’s leading market position and differentiated technology is considered an ideal fit with Sensata’s core Sensors business, and is expected to provide a new technology platform and strong growth opportunities, particularly in powertrain systems. By leveraging both Sensata’s global footprint and the worldwide customer base the new joint offering will expand its reach to address the increasing demand for cleaner emissions around the world. Sensata expects that the acquisition will contribute to current and future net revenue and Adjusted Net Income growth. The acquisition is in line with the company’s previously announced objective to make acquisitions that are close to the core and accretive to Sensata’s business. The long-term potential for Sensor-NITE’s technology is considered substantial, and plays an important part in accelerating Sensata’s long term organic growth - given the expansion of emissions regulations to the commercial diesel market and the stricter emission requirements on a n worldwide basis.
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LEADING THE WORLD IN SUSTAINABLE STEEL PRODUCTION Arcelor Mittal is the global leader in integrated mining and steel production. Philip Yorke looks at how this huge concern is pioneering high-tech solutions both in steel production and sustainability and at its continuing programme of investment in new plant and renewal.
rcelor Mittal is the world’s leading steel and mining company and is the successor to Mittal Steel, which was originally founded by Mr Lakshki N. Mittal in 1976. The new company was created by the merger between Arcelor and Mittal Steel in 2006. Today, with more than 100 million tonnes annual production capacity and over 260,000 employees spread across 60 countries, Arcelor Mittal is the clear market leader. The company is also the leader in all major global steel markets, including automotive, construction, household appliances and packaging. Furthermore, Arcelor Mittal manages its own leading research and 148 Industry Europe
development operations and its sizeable, captive supplies of raw materials and extensive distribution networks worldwide. Currently Arcelor Mittal employs more than 1400 full-time researchers at 11 laboratories worldwide and in 2010 invested more than USD320 million in research and development. Arcelor Mittal is listed on the NY stock exchange as well as on other leading stock exchanges throughout Europe, and in 2011 posted revenues of more than USD94 billion. With an industrial presence in more than 20 countries, spanning four continents, the company covers all the key steel markets, from emerging to mature.
Developing sustainable mining and steel production Through its core values of sustainability, quality and leadership, Arcelor Mittal commits to operating in a responsible way with respect to health, safety and the well-being of its employees as well as to contractors and the communities in which it operates. The company is also committed to the sustainable management of the environment. As a testament to this commitment, the company’s recent commencement of iron ore production in Liberia meant developing a sustainable mining operation there. This involved finding solutions to a number of key
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challenges. To date, Arcelor Mittal has invested more than USD800 million in repairing roads and infrastructure, whilst also supporting the need for education and healthcare among the local population. In addition, the company supported the reconstruction of a 240km railway, port and hospital, as well as new school facilities. These developments will not only serve and enhance the local communities, but will enable the iron ore to be mined efficiently and in a more environmentally friendly manner. Within the first twelve months Arcelor Mittal expects to ship over four million tonnes of iron ore from Liberia.
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At the official opening ceremony held in Monrovia, Lakshmi N. Mittal said, “It gives me great pleasure to announce the formal launch of our mining operations in Liberia. Quite apart from the significant impact this will have on the local economy, I’m also proud that our approach to this exciting new market represents best-practice in terms of responsible business.” In further support of its commitment to environmental protection, Arcelor Mittal Poland recently invested more than PLN 140 million in the construction of two new production facilities at its plant in Dabrowa Gornicza, Poland.
This investment involved the installation of a new PCI (pulverised coal injection) blast furnace and the complete modernisation of its number 2 sinter belt. The latter will result in a significant increase in the production of sinter, which is the charge material for its blast furnaces. In addition, two brand new electrofilters with a capacity of 900,000m3/h in total, will contribute to a major reduction in dust emissions at the site. Manfred Van Vierberghe, CEO and deputy BOD chairman of ArcelorMittal Poland, said, “We are proud of the fact that we are able to continue our investments despite challeng-
ing market conditions. Both PCI installation and modernised sinter belt are excellent investments, not only from a business point of view, but also because they improve our environmental footprint.”
Optimising service and value Arcelor Mittal has grown steadily through the acquisition of numerous steel-making companies and other assets. These in turn constitute its major operating subsidiaries. The group is divided into six major operating segments: Flat Carbon Americas, Flat Carbon Europe, Long Carbon Americas and Europe, AACIS (Asia, Africa, & Commonwealth of independent states), as well as Mining and Distribution Solutions. All the company’s operating subsidiaries belong to one of these clearly defined business segments. Arcelor Mittal’s commitment to a programme of continuous improvement in terms of service, innovation and sustainability is supported by its significant global presence and its ability to use its size and reach to optimise customer services across the company. At the same time, Arcelor Mittal customers can benefit from the economies of scale, only possible with such a large organisation. The company has also expressed a commitment to ensure that different parts of the business are empowered to make decisions, thus guaranteeing accountability at the right level within the company. Arcelor Mittal’s shared services include those of purchasing, energy, shipping, IT, legal, real estate and by-product sales. The company’s shared service teams work diligently to make sure that best practice is followed throughout the group, whilst also sharing the best local practices with the n entire organisation. For further information about Arcelor Mittal, its products and services, visit: www.arcelormittal.com Industry Europe 153
COMMITMENT TO PROGRESS The medium-sized German firm EDUARD KRONENBERG (EK) started out making steel leaf springs for pocket knives and tool parts. Now, almost a century and a half later, it is the global market leader for connecting elements, and serves mainly the insulating glass industry.
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Glass facade - with EK connectors inside
Nylon cross connector for transom windows
Pre-inserted straight connectors within sundry Warm Edge Spacer bars
make more than 600 million parts a year,” says Ralf M. Kronenberg “and we deliver them all over the world.” These parts comprise straight connectors and corner keys for spacer bars, accessories for Georgian bars, spring washers, miscellaneous stamped parts, bent parts, plastic parts and many more. They may be mostly invisible but the parts are so crucial that EK has become a leading supplier for the insulating glass industry (and the solar sector), for the automotive industry, for electrical engineering companies and for industrial fastener firms, as well as for local industry in and around Solingen in NorthRhine Westphalia. In all business units EK meets the requirements of the tough quality norm ISO TS 16949.
The company is the only supplier to make steel and nylon connectors for insulating glass frame compounds from a single source and this has made them a market leader worldwide. EK supplies all major manufacturers of spacer bars.
Quality, improvement and innovation EK works according to three main principles – it always demands utmost quality, it fosters improvements and innovation and it has the courage to develop in markets that are oriented to the future. “In a constantly globalising world, we have to keep our minds open for new markets, sectors, products and challenges,” says Ralf M. Kronenberg, who is the fifth generation to manage the family-run firm with his cousin Frank. “We do this happily.”
Moreover, Kronenberg highlights the fact that the family name stands for long-term partnerships, for dialogue, for proximity to customers. “We do not base our company decisions on the stock markets.” It is such principles and attitudes which have allowed the firm, which opened in 1867, to gain a good reputation and expand solidly. It now has 70 employees who work out of two plants in Solingen. “Our position is clear: we are what we are today because of our longstanding employees their commitment and motivation, knowhow, ideas, creativity and performance.” Thus, employee training is an important aspect of EK’s company philosophy. Moreover, although there is constant investment in modern, state-of-the-art technology and equipment the workforce is not jeopardised,
Modern progressive tool in modular design
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Spring disks for shock absorbers
insists Ralf M. Kronenberg. “Our employees work mainly in construction, development and quality control, on which we place great value. Our employee numbers are growing.” The core element of the company is the modern in-house tool manufacture.
Made in Germany This, as well as the fact that EK is glad to work in Germany where quality engineering and infrastructure are so conducive to productive partnerships, is also why the company has never thought of going to a cheaper production location. It is currently planning to build a new production plant to consolidate the two existing sites in Solingen. “The goal is to become more efficient, more flexible and faster, thanks to shorter distances, better connections and possibilities for expansion,” says Mr Kronenberg. “We are investing in our future but remaining in the region.” Thus customers, suppliers and employees can remain assured of continuity. “We don’t consider ourselves only a supplier but also a strategic partner and provider of solutions,” points out Mr Kronenberg. “Whether customers want standard stamping, bending and injection-moulded solutions or tailor-made advice and proposals, the company is there to help.” 156 Industry Europe
Expanding for the future To this end, EK has never failed to pull out the stops when it comes to high-quality, modern equipment. It uses only highperformance automatic stamping presses made by such prestigious firms as Bruderer, Haulick & Roos and Raster and it recently acquired a fully automatic spot welding machine with laser marking for component assembly of new spring disks for shock absorbers used in modern vehicles. Having conquered the insulating glass industry, the company hopes to expand further in other industries. “We also want to enter new markets and develop new products,” says Kronenberg. “But we have to build upon our existing strengths. We already have firm partnerships with our customers and high export quotas.” The aim is to grow continuously. Mr Kronenberg is optimistic about the future. Although the firm is keeping a close eye on the euro crisis and its impact on world markets, the fact that German engineering has a such a good reputation and there is an ongoing global demand for products made in Germany plays in EK’s favour. “Thanks to the new plant we will be even better equipped.” Moreover, the rising emphasis on energy efficiency and green building is increasing demand for insulating glass and thus the
connecting elements EK makes will remain vital for decades to come. “Our philosophy is sustainability and continuity,” says Mr Kronenberg. “It would contradict our philosophy not to be interested in the environment, the efficient use of resources and recycling.” EDUARD KRONENBERG has been doing n this successfully since 1867. www.kronenberg-eduard.de Insight to a modern and clean serial production
With a family history in industrial machine technology Presezzi Extrusion is now one of the most important extrusion press suppliers on the global market and its name has become synonymous with high-level technology and flexibility in the development of different kinds of extrusion presses, writes Beverley Young.
ocated in the north of Italy just outside Milan, the company finds itself in one of the most advanced industrial areas in Europe for metal processing. I spoke to CEO, Valerio Presezzi about how his company was formed and the reasons for its success. “I grew up in the world of mechanical engineering”, Mr Presezzi begins, “gaining experience in our family company, Bruno Presezzi, which produces mechanical components for energy systems. In 1994, I decided to form Presezzi Extrusion focusing on the production of extrusions in aluminium, copper and brass using the latest technology and innovations. We now have two main production centres, the first here just outside Milan and the second at Brescia in the Verona area; sales, at the moment, come to around €40 million a year.” Presezzi Extrusion is geared towards expansion and at the moment is working on a joint venture with a multinational company which will take its production beyond the Italian border. “This will enable us,” states Mr Presezzi, “to gain an even greater impact on the developing countries of the Far East and South America.”
Metalcam has an integrated end to end production cycle that combines in a single site: • Product and process engineering • Steel production according to specific customer needs • Forging • Heat treatment • Machining Metalcam offers a wide range of finished products for the following industrial sectors: • Oil and Gas • Mechanical • Power Generation • Shipbuilding
Metalcam S.p.A. I-25043 Breno (BS), via Leonardo da Vinci 3 Phone: +39 0364 238 1 Fax: +39 0364 320 768 Email: email@example.com www.metalcam.it
Via della Valletta, 7 - I 25080 Paitone, BS Tel: +39 030 6896953 Fax: +39 030 6896943 E-mail: firstname.lastname@example.org
TECHNOLOGY IS INSIDE
Metalcam is one of the most important Italian manufacturers of open die forging on high-quality steels.
Via G. Vittorio, 23 T: +39 02.9566025 20060 Vignate (Italy) F: +3902.9567227 P.IVA 11569960153 E: email@example.com
S.r.l. OLEODINAM IC
A & PNEUMATIC
Hidrux Srl • Via Industrie, 9 / B • Zona ind.le sud • 20884 Sulbiate (MB) - Italy Phone: 039 6840154 • Fax: 039 6200264 • E-mail: firstname.lastname@example.org • www.comas.com
Foundry and mechanical workshop Non ferrous metals We supply crude alloys- pre-processed alloysfinished bushing according to customer’s designnuts-fifth wheels-sliding gibs Tel: +39 0309031617 - Fax: +39 0309031427 - email@example.com - www.bronzitaly.it
A research ‘philosophy’ Presezzi presses, with their cutting-edge technology, built using the most advanced software and 3D projection, have proved to be particularly successful in the automobile, railway, shipping and aerospace industries. “Our highly skilled research and development department uses FEM calculations which are normally only used in universities and research institutions,” states Mr Presezzi. Significant investment in research has resulted in the production of extrusion presses which have obtained the highest level of built-in automation and energy saving, thanks to an
innovation patented by Presezzi known as Presezzi Extrusion Energy Saving System (PEESS) which guarantees a 20–30 per cent saving of energy depending on the type of production. The first machine to be developed with this system was sold in Germany in 2009. With its Italian market already well established Presezzi now exports 90 per cent of its production to countries such as Germany, Poland, USA, Canada, Russia and China and every piece of machinery is equipped with a unique after sales back-up system which is also a result of the company’s dedication to research. It is the ‘black box’ data system.
“Every machine,” explains Mr Presezzi, “is fitted with a black box which enables us to constantly monitor its function from our Italian offices 24/7. In this way we are immediately aware if any irregularities occur and can intervene at once. For this reason we rarely need to go out to customers to intervene locally, saving all round on costs. Should a more hands-on approach be needed, however, we can instantly call on our branch offices in China and the USA.” “We have also just recently opened a new division which concentrates exclusively on energy,” states Mr Presezzi. “This division is
already staffed with a group of qualified engineers who are working with the universities of Milan and Pisa. At the moment, we are working on an experimental project involving the production of energy through mud purifying.”
Cost-effective trouble shooting Presezzi Extrusion does not only create highperformance and reliable presses but can also supply any specific complementary tools and accessories to use with this machinery such as Isotherma, Data Manager and centre press shearing. These accessories are not only designed to fit Presezzi Extrusion presses but
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also those made by other manufacturers, and the company is proud of its speed in delivery, from the designing to the supplying of any spare part. This is part of Presezzi Extrusion’s revamping programme whereby the company can improve the performance of any older press by creating custom efficient and affordable solutions, essential in today’s economic climate. These revamping processes can be either partial, in which certain parts such as the main cylinder or extrusion tie rod are replaced, or ‘complete’ in which the entire mechanical, electrical and oil hydraulic parts are replaced. Among the company’s goals
is further expansion with the opening of a network of new offices around the world in order to provide even greater support to overseas customers and also to observe more closely the new trends and needs of foreign markets. “We are constantly driven by the desire to produce more efficient and cost-effective machinery,” claims Mr Presezzi, “and to ensure that all our customers receive immediate service. For this reason we are ISO 9001 certified. It is this attention to the quality of our products and customer service which is at the heart of n Presezzi Extrusion’s success.”
BRUNO PRESEZZI BRUNO PRESEZZI is an Italian engineering and manufacturing company of machinery for production of aluminium strip (twin roll continuous casting lines). Five machines are installed in Italy, one in Turkey, and two complete lines with related melting and holding furnaces are now at commissioning in the Emirates. BRUNO PRESEZZI has also been for over 30 years a worldwide, reliable supplier of cores and shells for twin roll casters, with top performance for durability and strip productivity. Hydro Aluminium has selected BRUNO PRESEZZI as a key supplier for these products, and has recently assessed it at top level for quality and reliability. New design and materials solutions for rolls are being introduced to improve product quality and productivity, as well as cost effectiveness. The BRUNO PRESEZZI Patented design of caster rolls with grooved shells is well established today and is going to be further improved to fully exploit its capability for enhanced performance. New steel grades are under development with the same goal of improving the cooling efficiency. Hydro Aluminium is testing and well recognizing the potential of the innovative solutions of BRUNO PRESEZZI for the improvement of its continuous casting process and of the quality of its flat rolled products.
The Hamon Group is a global leader in engineering, contracting and project management for cooling systems, heat exchangers and pollution control. Philip Yorke looks at the impressive growth of this international group and its pioneering contribution to waste heat recovery and cooling systems for some of the world’s largest power-plant projects.
OPTIMISING POWERPLANT EFFICIENCY T
he Hamon Group is based in Mont-StGuibert, Belgium and is a global leader in the field of engineering, contracting, design and project management. The company’s diverse activities include the design and manufacture of critical components, as well as the installation and after-sales servicing of cooling systems, process heat exchangers, air pollution controls and industrial chimneys employed in power generation projects. This market sector includes oil and gas installations, as well as other heavy industries such as metallurgy, glass and chemicals. The Hamon Group is committed to the sustainable development of its processes and manufacturing activities, as well as to providing its customers with innovative systems and cutting-edge technology at the most competitive prices. The Hamon Group
is divided into five distinct business units: Cooling systems, Heat Exchangers, Air Pollution Control and Industrial Chimneys.
Advanced, power-saving cooling towers Back in the early 1980s many of the world’s large power plants were equipped with tall natural draft cooling towers (NDCTs). At that time they were wrongly associated with nuclear power plants and very few were constructed in the west because of the lack of large power plant projects and obvious visual impact constraints. However, this trend is now reversing due to the significant power saving that modern NDCTs can generate. In addition to the benefits of power saving, NDCTs offer silent operation as there are no cooling fans employed, and offer greatly reduced maintenance costs. Furthermore, they are compact and provide
greater operational longevity, often much longer than plant life expectancy. Hamon has designed and built more than 300 NDCTs worldwide and has unparalleled expertise in this field. This includes specialised installation projects in hazardous and seismic risk areas as well as in locations exposed to severe weather conditions. Hamon is also committed to offering the most cost-effective solutions for the entire lifetime of field-erected cooling towers and has a wide range of heat transfer media suitable for any industrial water and seawater installations, as well as those requiring low pH solutions.
Pioneering air-cooled condenser technology Thanks to the Hamon Group’s ranking as a leading world-class supplier of dry cooling systems, the company recently received one
of the biggest orders tendered for in the power generating sector. This involves the supply of 10 lines of air-cooled condensers (ACCs) for the prestigious PP10 power project in Saudi Arabia, which will increase its power capacity by 40GW over the next ten years. This prestigious contract was awarded to Research Cottrell Dry Cooling (RCDC) a long-serving member of the Hamon Group, in January 2012, and forms an important part of the strategic future power plan of the Kingdom of Saudi Arabia. The plant is located in Riyadh which is a desert region that has to import all
its water from desalination plants along the coast over 400km away. The utilisation of the Hamon Group’s advanced RCDC air-cooled condenser technology avoids the consumption of cooling water, which was a key requirement of the Saudi Electricity Company. RCDC’s scope in its contribution to the project includes the engineering and manufacturing of the ACC bundles as well as the procurement of complete systems, including pumps, vacuum units and piping. The site erection will be carried out under the supervision of RCDC in 2013 and the
start-up is planned to commence in 2014. This new ‘super-project’ will increase the sales of Cooling Systems BU by around 15 per cent in 2012 and 2013 compared to company sales in 2011.
Milestone agreements signed in China Towards the end of 2011, the Belgian Economic mission to China took place and this was led by HRH Prince Philippe, where two signing ceremonies were inaugurated involving Hamon Thermal Europe. At this significant signing, Hamon entered into a
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memorandum of understanding (MOU) with China Nuclear Power Engineering Corporation (CNPE). This confirmed the Hamon Group’s cooperation in the construction of a series of large, natural draft cooling towers for China’s latest nuclear power plants. During the formal meeting, Hamon and China Nuclear Power Engineering agreed to cooperate on the design and implementation of the super-large cooling towers for the Hue Xianning nuclear power plant. These towers were conceived to maximise power plant efficiency and to contribute to the protection of the wildlife on the river by avoiding the warming of its waters. These Hamon Group Towers will set a new world
record, being the largest natural draft cooling towers ever constructed. Francis Lambilliotte, Hamon CEO, said, “I am very proud to sign these two milestone agreements. Hamon is a century-old company that continuously improves on its technologies developed by generations of engineers. It’s thanks to these investments that we sell our products across the world, even in the most competitive markets.”
New acquisition boosts growth prospects A few months ago, the Hamon Group completed its acquisition of Deltak, a global leader in the design and construction of waste and heat recovery solutions, as well as heat recov-
ery steam generators for the power and process industries. Since it was founded in 1972, Deltak has developed a blue-chip portfolio of clients that rely on its innovative solutions to meet their energy needs. This latest acquisition will create significant added value for the Hamon group, which is already recognised as a world-leading supplier of cooling systems. Synergies between the two companies will be fully exploited as the Deltak customer base is the same as that of the Hamon Group. Furthermore, the acquisition will allow the group to become more active in the combined gas-fired generation, cycle-power industry, which is expected to see substantial growth in the years to come. n
SOLUTION Innovative Swedish aluminium extrusion and component creator ProfilGruppen is appreciated across Europe for its concept to completion service. Emma-Jane Batey spoke to sales manager Johan Anicic and design engineering manager Andreas Helmersson to see how this is being achieved.
ith 350 employees and its head office in Åseda, Sweden, where the company was first established 30 years ago, aluminium extrusion and component creator ProfilGruppen brings its innovative solutions to customers in a number of industries across Europe. The company’s skills lie in the development, manufacture and marketing of custom-made aluminium extrusions and 172 Industry Europe
components, with the majority of its clients in the automotive, electronics, interior design and industry and construction sectors. Sales manager Johan Anicic told Industry Europe how ProfilGruppen continues to build its excellent reputation for quality and flexibility. He said, “We don’t make any of our own products, or offer standardised products. We create customer-specific solutions for each project in
order to guarantee that we are delivering the best product for the job. Our technical knowhow is such that we can perfectly advise and develop an aluminium solution that utilises the material capabilities of aluminium to our clients’ best advantage.” ProfilGruppen believes that the extensive capabilities of aluminium over steel and other metals means that functionality can be
built in from the outset. Design engineering manager Andreas Helmersson explained, “It’s our extrusion and material knowledge that help to set ProfilGruppen apart from the competition. We build in the advanced functionality of aluminium right from the initial concept and design phase, so by offering features that cannot be delivered with steel, we are certainly making the most of our aluminium knowledge. For example, instead of using welding equipment to create pockets
or have to add on screws as you would with steel, we can make the extruded aluminium do this directly when actually making the initial product. This saves time and money, as well as providing a very strong yet flexible product.”
Always adding value Focused on working with new and existing applications where using aluminium can add value, ProfilGruppen is committed to working closely with its clients. By helping customers
to choose or design their product and being present right from the initial concept stage, the ProfilGruppen team is able to ensure that the aluminium extrusions or components are more efficient in terms of production too. The company can also assist in supporting its customers in changing from using steel and other materials to using aluminium by managing the production process at every stage. Mr Helmersson pointed out a further practical benefit of using aluminium: “We are
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Your small part supplier
continually looking at ways in which we can add value to our customers’ products using our aluminium experience, so the fact that our extensive knowledge of machining and processing aluminium products and treating the aluminium surface so that it is stronger and provides a better environmental protection for exterior applications is a key benefit.” ProfilGruppen’s workforce is composed of technical and engineering specialists alongside
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creative designers and product-specific sales people. The company’s long-term commitment to working with its customers right from the very concept stage of its projects highlights the importance of maintaining a team of which all members have a strong knowledge of aluminium. Mr Anicic added, “As all of our extrusions and components are built specifically for the customer in response to their exact demands
for each project, it is crucial that our teams – across all areas of the business – know how best to advise our customers at each stage.”
Investing in skills Working with extruded aluminium is a skilled craft, with experts needed to effectively use the state-of-the-art equipment housed at ProfilGruppen’s production site. In order to maximise the impressive talents of its workforce, the
company regularly invests in both machinery and the various support functions. Mr Anicic said, “One of our main ongoing areas of investment is to increase productivity wherever possible, particularly as we frequently invest in machinery so we want to make sure that each piece of equipment – and each person – is being utilised to the best of their capabilities. To
stay cost-competitive, we ensure that all our customer-specific products are produced as quickly as possible while still retaining the high quality standards we’re known for.” As different alloys of aluminium are required for various stages of the extrusion production processes, including cooling and transportation, ProfilGruppen has also invested in its
capacity in order to handle these different alloys as effectively as possible. Improving processes is also a part of its ongoing investment programme, with Mr Helmersson pointing out that the popular ‘lean production’ philosophy is implemented across ProfilGruppen in order to be more efficient at every stage of the production process as well as the delivery of products. As a relatively small player in the European extrusion market, ProfilGruppen is proud to stay close to its high-quality, customer-specific production values, with a tight-knit workforce that passes on its expertise to the customer wherever possible. Working alongside customers as a value partner from design to final product is a unique differentiator for ProfilGruppen, and certainly one which is appreciated. Mr Anicic concluded, “Even though we are a small Swedish company, we serve a great many global customers who all appreciate our ability to listen carefully and act quickly, to deliver strong, flexible products that meet their exact requirements. We know our customers need material support and specific know-how of aluminium behaviour and functionality, and n we are committed to fulfilling that need.”
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THE APPEAL OF STEEL Finland-based steel producer Ruukki has an impressive list of international project wins and ongoing expansion plans. Business director Esko Vattulainen spoke to Industry Europe’s Emma-Jane Batey.
eadquartered in Helsinki and present in 27 countries worldwide, Ruukki is in a constant state of growth and development, with new locations, new projects and new employees joining the 11,700-strong workforce on an ongoing basis. Well-known for its high-quality specialist products, Ruukki provides metal-based components and integrated systems to construction, and the company has a wide selection of metal products and services. Business director Esko Vattulainen is responsible for the project business, and tells Industry Europe: “The last five years have seen Ruukki’s growth continue strongly, even though there were some difficult times during the downturn in 2008 and 2009. Since the end of 2009 the market has been good in some areas such as eastern Europe and Russia. We are more than happy with our current structure
and plan to maximise the opportunities that are available in our current markets, as well as being open-minded to new opportunities.”
Concept to completion Within Ruukki there are three complementary divisions working together to offer a complete integrated mining and metals service. Joining the longest standing division of Ruukki Metals, Ruukki Engineering and Ruukki Construction combine to deliver new projects with new opportunities not previously available to the company. Mr Vattulainen explained, “The three divisions allow us to move beyond being a steel producer and into the complete project sphere. Our strategy was to make sure that the engineering and construction divisions eventually grew bigger than the metals division so that we could continue to produce metals to the same high standard
that we’re famous for, but to also specify and use those metals in high-spec projects that would benefit from our expertise and complete metals understanding.” With this aim being achieved, the engineering and construction divisions at Ruukki now represent a larger proportion of its turnover than the production of metals. Mr Vattulainen is specifically focused on the construction division, which itself has three separate business units. The materials and services unit offers products such as steel frames, facades and roofs, including all related design, erection and installation. The component business unit provides the necessary steel items such as steel sheets required for the installation process. The infrastructure business unit is focused on the smaller production projects and is able to call on the extensive project experience across the company. Industry Europe 177
Local and international The main geographical market areas for the contruction business continue to be in northern Europe, with a very strong performance region-wide. The company’s activities in eastern Europe and Russia have developed apace, with a growing number of projects in western Europe. Mr Vattulainen continued, “Eastern Europe is an important market for us, supported by our network of production facilities with many in Finland, one in Poland, Russia and Romania. We also have a number of smaller local production sites in countries such as Norway and Lithuania, which allows us to deliver both a local and an international service. Some production sites just service their own local projects, but the Finnish site for example backs up these secondary sites with whatever they need.”
Ruukki plans to continue to utilise this network of production facilities, in order to ensure that its costs remain competitive and its quality remains high. The company is committed to making sure that each production facility plays to its strengths, with intense training for its workforce and a close understanding of its technical capabilities. With Ruukki continually adding to its workforce with highly experienced specialists, enthusiastic graduates and technically advanced production workers, the company is clear that all of its sites are at the top of their game.
Building stronger projects Recent project wins highlight Ruukki’s achievements. The company has recently won a €13 million-plus steel structure contract for the Kaunisvaara mine in Sweden and in July
it made the first of many deliveries of steel structures to the offshore wind farm project in the North Sea for Kvaerner Verdal AS. In the construction business Ruukki’s plans for the coming years see it dedicated to continuing its geographical focus on its existing northern Europe market whilst building up its activities in eastern and western Europe and Russia. Rather than aiming to work in a large number of countries, Mr Vattulainen explained how the company prefers to focus on “the best countries for our construction project business, where we can add value for our customers and utilise the cost and technical advantages of our production facilities”. n
PUTTING A NEW GLOSS
Albéa is a global leader in the packaging of cosmetics and fragrances, as well as oral and personal care products. Philip Yorke talked to Paul Sefcik, the company’s cluster manager for tubes eastern Europe, about its innovative cosmetics packaging and plans for further expansion. 180 Industry Europe
he Albéa group has grown to become one of the world’s most successful and innovative packaging companies with a clear focus on the cosmetics and skincare industries. Its product portfolio is one of the most extensive in its field, ranging from plastic and laminate tubes to mascaras, lipsticks and lip glosses. The company also produces compacts, plastic closures, shells and spray caps, as well as jars, lids, cosmetic accessories and promotional items. Today the company employs 9500 people and operates 33 manu-
facturing facilities worldwide, of which 13 are based in Europe. In 2011 the group recorded sales of $1 billion.
Product innovation and creativity driving sales The Albéa group’s vision is described by François Luscan, its president and CEO, as: “to be the best global packaging company in the eyes of our people, our customers and our shareholders.” To maintain its ‘topdrawer’ position, Albéa offers a truly global dimension to its operations, as well as innovation, operational excellence and highly creative design teams. The company also lists its core values as integrity, accountability, trust, transparency and teamwork. Evidence of the success of this philosophy can be seen in the countless examples of the global brands that form its customer base. Recently Albéa launched its unique, ‘SpinArt™’ rotating lip-gloss products, which consists of three rotating lip-gloss applicators that deliver a perfectly homogenous formula onto lips with maximum shine in just one step. In addition, their bold, eye-catching design gives them a distinctive, shelf-appeal advantage.
Another recent Albéa exclusive is its new, watershine lipstick produced for Maybelline New York. Working in close collaboration with Albéa, Maybelline New York has created a new lipstick with an exceptional design for its ‘Illustrious’ top-of-the-range lipsticks. With a special copolyester (PCTG) pink cap and silver-plated ABS plastic base, this newest lipstick features a unique design that combines elegance, shine and subtle lines that create an appearance that is both modern and exciting. The launch of this latest addition to Maybelline’s Colour Sensational range was launched in Europe and the USA through the group’s extensive, worldwide industrial platform. Mr Sefcik said, “As a truly global player, we provide a wide range of dedicated customer services and prefer to be seen as a global company, but with a domestic and local focus. Furthermore, we do not just serve the big cosmetic and fragrance brands but also smaller companies and those who would like to take advantage of our creativity and production expertise to launch new products. We can offer our customers a standard range of products
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Schekolin AG – high quality lacquers for packaging Schekolin AG is a medium-sized company specialised in the development of packaging coatings with focus on food, beverage, cosmetic and pharmaceutical industries. It offers innovative and customer specific coating solutions. The wide product portfolio comprises solvent-borne and water borne coatings, UV coatings and powder coating. The offered solutions are taking in consideration the latest regulatory requirements (e.g. FDA) and newest guidelines (e.g. REACH, VOC). This enables the packaging industry to have one partner for economical and ecological coating solutions.
Schekolin AG Industriestrasse 3 / PO Box 80 Gamprin-Bendern Prinicpality of Liechtenstein Contact person: Sandro De Gruttola Phone: +423 375 75 72 Email: firstname.lastname@example.org www.schekolin.com
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as well as customised products that benefit from our latest technologies. These include our advanced printing technologies, which offer photo-like special effects and metallic, mirror finishes. “In addition, we provide applications that offer advanced technology processes for the design and manufacture of ‘flip-top’ closures. These are created for items such as toothpaste, which involve special peel and seal, ‘virgin’ flip-top membranes. We cover the whole range of possibilities when it comes to packaging for our market sector and provide design, prototype and testing services as well as a full range of packaging consultancy services. In addition, our financial strength means that we can continue to invest in new technology and offer special design and added-value services for our customers.”
A clear strategy for growth A continuous programme of investment in new technology and manufacturing capabilities, in association with innovative design teams and dedicated customer services, has provided a firm foundation for growth. Whilst continuing to grow organically, the group is also open to acquisitions providing that they
offer operational synergies and complement their existing product ranges. In keeping with this strategy, Albéa recently announced its acquisition of Eyelematic, one of America’s leading manufacturers of metal parts, as well as well as for plastic injection, decoration, anodising and assembly. Eyelematic is based in Conneticut, USA, and its three manufacturing plants already serve the world’s largest brands on the American market, with a diverse portfolio of products for the cosmetic, skincare and perfumes sector. This important acquisition adds to the group’s broad range of capabilities, with the integration of metal forming, which in turn provides an even greater choice of packaging solutions for Albéa’s existing customers. As part of its strategy for growth, Albéa is committed to creating innovative products with the lowest possible environmental impacts. All Albéa products continue to benefit from the ‘Eco-design’ 3R philosophy: (reduce, recycle, replace) developed in association with its own research department and university partnerships. This has enabled it to offer its customer’s design and packaging based upon renewable and recyclable materials.
Mr Sefcik added, “We take our commitment to the environment seriously throughout our manufacturing processes to ensure an efficient integration of eco-design in all our activities. In terms of the future we are also looking at extending our capabilities in key European markets, such as France, Germany, the UK, Poland and particularly in Russia where there is a strong developing market for the big cosmetic brands. In addition, we are increasing our presence in the growing Asian markets. I am pleased to say that despite the economic downturn in Europe, the cosmetics, personal and oral care markets seem to be weathering the storm better than most.” n
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WITH EXTRAORDINARY PERFORMANCE
The Turkish Company Subor is a leading provider of Glass fiber Reinforced Polyester (GRP) pipes as well as fittings, manholes, tanks and silos for a range of applications including potable water, irrigation, waste water, industry plants and energy.
Subor Pipe Industry and Trade Inc. was established in 1996 in Turkey, Istanbul as a joint venture between “Yapı Merkezi Holding” and “Amiantit Group of Companies” and began operating with one manufacturing line with a staff of 30 in 2007. 50 per cent of Subor shares are owned by Yapı Merkezi İnşaat ve Sanayi A.Ş. that is one of the greatest Turkish engineering and general contracting companies. Subor’s foreign partner, which owns 50 per cent of Subor shares, is Saudi Arabian based Amiantit Company. Amiantit Group is one of the largest pipe manufacturing groups in the world and owns manufacturing facilities and technology centers in many countries around the world. Subor specializes in the manufacture of GRP pipes and fittings for both the domestic and overseas markets. Since its establishment the company has grown constantly and has expanded its production capacity by over four times. Even during the height of the economic crisis in 2009 it was able to invest in a new manufacturing line which is capable of producing GRP pipes up to a diameter of 4 meters and increased the overall production capacity by 33 per cent. In fact, during the economic crisis it was still able to increase its turnover by 24 per cent in 2009 compared to the previous year. This 184 Industry Europe
ability to stay strong in challenging economic times has allowed Subor to be an unrivalled manufacturer of GRP pipes in terms of total capacity throughout Turkey and Europe, with a manufacturing capacity of 800 km GRP pipes of different diameter per year at its three manufacturing lines at Sakarya and one manufacturing line at Şanlıurfa. Subor continues to be an effective force in the worldwide pipe market owing to its existing installed capacity, its continuing investment, its experienced staff of 500 and an innovative and a creative corporate culture that prioritises the sharing of knowledge.
Globally recognized quality In its history of more than 1000 projects in Turkey and abroad, Subor has supplied 5 million meters of GRP pipes and fittings in diameters up to 4 meters. Subor broke a record in 2011 by reaching the highest yearly production by weight in its history. Subor’s products are present in 33 countries throughout three continents, with 50 per cent of its output currently destined for export. Its largest markets are the Balkans, the Middle East, Russia, the Turkic Republics and North Africa.
During 2011, Subor continued to open up new markets while also strengthening its existing markets and added Iceland, Montenegro and Morocco to its export network. This global success is largely down to the company’s complete solutions for a wide variety of projects from irrigation to potable water, including industrial plants, energy investments, wastewater, and storm water. It manufactures GRP pipes with a diameter range of 300-4000 mm, and 1-32 bar pressure. Their high corrosion resistance requires no cathodic protection or additional insulation, and means they can be used safely in the chemical transfer pipelines for industrial plants, geothermal lines or the cooling water and circulating water lines of power plants. Furthermore, according to the company, the fact that the fittings are made from the same material makes them particularly suitable for irrigation projects. The special pipes it produces for newly installed urban sewerage lines and rehabilitation projects are made of ECR-type fiberglass with sulphur corrosion resistance. All Subor’s GRP pipes are manufactured in accordance with the respective standards of the USA, Germany, Belgium, Norway and Switzerland. They are also certi-
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CPIC/FIBERGLASS is one of the leading fiberglass manufacturers in the world. The whole range of fiberglass products is based on traditional E glass, environmentally friendly ECT glass, chemical resistance ECR glass and high strength and high modulus TM® glass.
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fied for “compliance to the food codes” and for “drinking water conformance” by organizations such as the US-based National Sanitation Foundation (NSF).
Growing with new investments… According to its 2012 strategic growth plan Subor is planning to invest in a new manufacturing plant in one of its regional export markets. Subor is planning to commission its new plant at the beginning of 2013. The investment includes two manufacturing plants costing approximately USD25 million and creating an employment of 120 persons. In 2010 Subor signed a contract to manufacture and install GRP pipes with DN 4 meters for the Kralkızı Dicle Main Channel Second Part Irrigation Project – siphon lines, in a joint venture with the contractors Ufuk İnşaat and İnelsan İnşaat.
The project, which is contained within the city borders of Diyarbakır, is part of the GAP (South-eastern Anatolia Project) – one of the biggest regional development projects taking place in the world today and covering the basins of the Euphrates and Tigris, as well as the nine cities (Adıyaman, Batman, Diyarbakır, Gaziantep, Kilis, Mardin, Siirt, Şanlıurfa and Şırnak) located in the upper Mesopotamia plains. Subor’s GRP pipes were chosen for this project owing to their high corrosion resistance, easy and fast installation, economy and short manufacturing period. According to the agreement, Subor provided a total of 10.700 meters of GRP pipes with diameter class DN 4 meters, pressure classes PN 6-10 and stiffness SN 5000. The pipes were shipped to the construction site by low bed trucks and the installation of the pipes in 7 meters deep trench was carried
out by Subor’s experienced field services team. The field service team also carried out leakage tests on the coupling connections of the GRP pipes using Subor’s exclusively designed hydraulic field equipment. In 2011 Subor exported GRP pipes in Iceland for the first time by providing 4 metre GRP pipes to the Laxa II SHPP Project. Within the scope of this project, a total of 348 metres of GRP pipes in diameter DN 4 meters, pressure class PN 10 and stiffness SN 5000 have been produced and shipped. After visiting both the Sakarya manufacturing plant to observe the manufacturing process and controlled testing of the pipes, as well as the Diyarbakır Kralkızı Project construction site, where DN 4000 GRP pipes are being installed, the Icelandic company was pleased to order these high technology GRP pipes for the project. n
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PERFECTING POLYAMIDE YARNS Xentrys is a global leader in the production of high quality ‘nylon 6’ polyamide carpet yarns. Philip Yorke talked to Dominique van den Neucker, the company’s research and development manager, about innovative product design for the contract market and sustainability in relation to its product portfolio.
entrys is part of the “domo chemicals” Group, which is a global player in the field of nylon, nylon intermediates and engineering plastics. Xentrys is one of its flagship companies focused on the development and manufacturing of polyamide ‘nylon-6’ BCF (bulk continuous filament) carpet yarns for the contract and residential carpet markets. As a leading and globally active manufacturer of carpet and textile yarns, the company’s production processes are fully integrated and managed to optimise sustainable production methods and processes. In Leuna, near Leipzig in Germany the company’s entire production cycle, from the raw material, caprolactam, to the finished polyamide yarn, is all concentrated in one purpose-built location. This means significantly reduced transportation costs and low CO2 emissions.
Innovative new products Xentrys’ key market sectors include the textile floor covering market in the form of wall-to-wall carpets and tiles as well as other 188 Industry Europe
sectors such as, for example, mattress ticking industry. New product development has always been a priority at Xentrys and today the company is committed to not only improving the quality of its nylon yarns, but also to significantly improving the sustainability of its products and manufacturing processes. Currently, mainly white yarn is manufactured, but the company is also producing more spun-dyed (solution dyed) yarns as well. And since this yarn is dyed already in the production stage by adding pigments, this method offers not only technical advantages but also ecological benefits to the customer. Xentrys offers both these yarn types in a wide range of counts, lustre levels and dye affinities. Mr van den Neucker said, “Most of our R&D is carried out in Leuna, and gives us a competitive advantage, as all our processes can be developed, produced and implemented at one site. We are also upgrading our current machinery to give us more flexibility and the capability to produce even higher quality yarns. Our expertise in developing new products for the high-end market as well
as for contract applications means that we can offer customised products specifically designed to meet the most exacting criteria. In the growing contract market we are interested in helping to reduce the environmental impact of building materials. Most of our new developments are specifically custom-made according to the criteria that each customer sets us. We then propose yarns which create new effects and qualities that can be applied to a finished carpet tile or carpet.” Mr van den Neucker added, “We have an extensive in-house development centre with all possible facilities, ranging from cabling, air-entangling and tufting to dyeing and finishing. These modern facilities can be utilised by our customers, where it only takes a few hours to process a yarn into a finished product. Since we are a fully integrated company, starting from the production of caprolactam over polymer and ending with a finished yarn, we can also use this integration to change and develop our basic raw materials in order to bring further innovation into our product mix.”
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Delivering sustainable benefits At the recent Domotex trade fair in Hanover, Germany, it was announced that Xentrys is the first carpet yarn manufacturer to obtain an ‘Environmental Product Declaration’ (EPD), which is issued strictly in accordance with EN 15804 and verified by the IBU (Institut Bauen und Umwelt eV). With its strong focus on sustainable development, Xentrys has been able to provide a clear view of the environmental impact of its products, and especially those being used in the carpet
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industry. This allows architects to determine which products to select when considering the design of sustainable building projects. With the individual Xentrys EPD, a decisive advantage for the sustainability assessment of building products can be achieved, compared to generic data that is based only upon sector data. Furthermore, Xentrys prides itself on being a reliable and high-performance partner for sustainability in the floor covering sector. Its products all meet strict environmental,
health, quality and social standards and the company is committed to a programme of continuous development in all its sustainable production processes.
Leading the way in residential and contract sectors In the highly competitive residential carpet market, Xentrys leads the field by offering high product quality with excellent priceperformance ratio. The company’s yarn production is tailored to suit any customer’s
individual requirements in terms of dyeability, luster, yarn count as well as filament crosssection. The company’s best known brand in this sector is Xentrylon™. At the high-end of the market, Xelux™ and Xelux™ Color are the premier brands in the polyamide-6 contract field and one which offers an unparalleled range of colours and aesthetics. Through the intelligent application of its production technology, the texture and appearance of Xelux™ and Xelux™ Color can be developed according to suit any customer’s requirements and both meet the highest standards of quality n and durability. Industry Europe 191
PIPES OF PERFECTION Pipelife, one of the world’s leading suppliers of plastic pipe systems and plastic fittings, is enjoying a period of growth. Emma-Jane Batey spoke to Pipelife Norway’s export manager Trygve Blomster to find out more.
stablished in 1989 and with its global headquarters in Vienna, Pipelife is one of the world’s leading manufacturers and suppliers of plastic pipe systems and fittings. Employing nearly 2700 people across its 27 sites in 27 countries, Pipelife is an international group of companies that is fully owned by Wienerberger from Austria, the world’s largest brick producer, which itself is listed on the Vienna stock exchange. Although Pipelife is not a listed company, its results are shown through its owner, with its turnover in 2011 reported as more than €800 million. Pipelife’s activities in Norway actually reach back more than 50 years, with the plastic
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pipe production company that is now part of the group playing a leading role in Norway under a different ownership. Today, Pipelife is the largest producer and supplier of pipe systems in plastic across the Nordic region, and its products are synonymous with quality, performance and innovation. Pipelife Norway’s export manager Mr Trygve Blomster told Industry Europe more about how the Norwegian activities fit into the group structure as a whole. He said, “Norway is one of the countries where Pipelife has two production facilities, both of which are strategically located to be able to deliver the best possible quality and service to our customers. Owing to our excel-
lent location on the shore line of a sheltered fjord, our PE pipes can be manufactured straight into the sea as we are right on the shoreline, which gives us incredible benefits in terms of logistics and production practicalities. In fact, on our website there is a video and a presentation showing the delivery of a huge pipe from our facilities, and this perfectly highlights how we use our location to its best advantage.”
All types of pipes A key supplier of innovative products for plumbing, water, gas energy and power distribution, telecoms and industrial sectors, Pipelife manufactures pipes for both above and below
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ground. The two Norwegian plants each have a technical speciality. Large PE pipes in long lengths are produced at the Stathelle plant, and PVC and polypropylene pipes and parts are manufactured in Surnadal. The company also operates sales and support offices in the cities of Oslo, Bergen and Trondheim. Mr Blomster continued, “Our Norwegian headquarters are also in Surnadal – it’s just 130km west of Trondheim in central Norway. Here we manufacture all the
pipe systems for our domestic market using two different raw materials: UPVC and polypropylene. The pipes are also produced for all water and wastewater pipes for the whole region, with these two applications being very important for the company. They are used for applications such as electrical conduits, water, sewage and wastewater pipes for kitchens and bathrooms, and various types of agricultural pipe systems. So you can see that there is a common thread of skill and expertise that
Skanska is a leading international project development and construction company, developing offices, homes and infrastructure projects, such as schools and roads. We create sustainable solutions and aim to be a leader in quality, green construction, work safety and business ethics.
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runs throughout our product range, and we use this considerable know-how to guarantee that our plastic pipes and plastic parts are of the very highest quality.” The Stathelle plant is located 160km south west of Oslo and this facility is dedicated to polyethylene piping, which is a specialised process in that it involves the manufacture of extremely large pipes in very long sections, with continuously extruded pipes available up to 600 metres long. More
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Welding of OD 2100mm PE stubend to the pipe end at Pipelife’s plant in Stathelle.
than 50 per cent of the production from the Stathelle plant is exported to sales markets across the world.
Global delivery Mr Blomster added, “Our export reach is pretty impressive and we are a truly global business. Our major markets are in Europe and across the Mediterranean region, with Sweden, Spain, Israel and North Africa all performing particularly well. As we mainly provide pipes for marine applications, we supply many customers on the Atlantic side of Africa, South America and across the Middle East and South East Asia.” It is the marine applications that can truly take advantage of the long continuously extruded Pipelife pipes, which are regularly
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produced in lengths of 500–600 metres and in outside dimensions of up to and including 2.5 metres wide. Mr Blomster pointed out, “That’s pretty big stuff! We are the first and only production line in the world that is capable of producing such large continuously extruded pipes. With the unique location allowing us to extrude the pipes directly into the sea there is nothing else like it in the world. It’s a beautiful location too – a protected industrial area right on a fjord. Our logistical set-up makes it easy for us to deliver these massive pipes in five to 10km in each shipment to customers by sea too and as we’re certainly competitive in terms of price, we are justifiably proud of our excellent offer.” Pipelife expects to continue on its positive trend through 2012 and beyond by main-
taining its strong performance in the marine sector and utilising the growing trend for large pipes in the desalination and power generation market worldwide, which is particularly strong in the Mediterranean region where Pipelife is already prominent. Mr Blomster concluded, “Norway has continued to perform well while most of Europe has suffered with the economic crisis, probably because we have our own oil and gas and other energy sources, which is beneficial for Pipelife and our range of products. We expect strong growth in the coming years as we make the most of the expansion in power generation, desalination and traditional sewer outfall businesses, and we will also look to grow in developing countries in Africa and South America.” n
NAVIGATING THE FUTURE The state-run company Avinor is responsible for planning, developing and operating the Norwegian airport network, as well as operating air traffic control towers and control centres. Recently, as Industry Europe discovers, it has also been making advances in aircraft navigation systems.
vinor was established as a state-run company in 2003 to develop and operate Norway’s airport network, administered by the Ministry of Transport and Communications. Today it operates 46 airports in Norway, 12 of which are run in cooperation with the country’s armed forces. These include large airports such as Bergen, Stavanger and Trondheim.
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Recent efficiency improvements have meant that the year 2011 has been Avinor’s most successful yet. A total of 44,275,213 passengers travelled through its airports last year, which was four million more than in 2010 and in fact constitutes a record for the company. In addition to planning, developing and operating the Norwegian airport network, Avinor operates air traffic control towers and control centres. It also has a wholly owned subsidiary, Oslo Lufthavn AS, which operates the main airport at Gardermoen.
Advances in air navigation Another growing area for Avinor is the development of infrastructure for aircraft navigation. Its Air Navigation Services Division is divided into two main areas: Air Traffic Management
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and ATM/CNS Systems (or ‘Air Traffic Managment/Communication, Navigation and Surveillance Systems’). The first of these is responsible for providing air traffic services within Norwegian aerospace, as well as designated parts of the North Atlantic airspace, for both civilian and military operators. It is divided into five business units, including the meteorological services. The second main area, ATM/ CNS systems, is responsible for the installation and management of ATM/CNS equipment to the Air Traffic Management division and to 52 aerodromes in Norway. In March last year (2011), the company became the first air navigation services provider to deploy the new arrival route system know as Point Merge System (PMS) over the eastern Norwegian airspace. This advanced
new system gives both pilots and air traffic controllers a greater degree of predictability when the aircraft is approaching the airport. The system works by determining the order of aircraft to descend into the airport once they have reached the meeting point, or ‘Point Merge’. It is expected that this system will also be used for the airspace above Dublin, Munich, Brussels, Paris, Rome and Vienna in the near future. Avinor has been preparing for the implementation of this new system as far back as January 2010, when it began the extensive training of its personnel at its Røyken control centre. It is estimated that each air traffic controller employed by Avinor completed 40–50 hours on a simulator before the system was actively deployed.
In addition to offering far greater efficiency in terms of aerospace navigation, according to Avinor the new system can also provide an average reduction in CO2 emissions of 300kg per flight. This is because with the new system the aircraft engines are able to practically idle as it descends to the runway, as opposed to the old system where the pilot had to employ full use of the throttle at every stage of the aircraft’s descent.
Reducing environmental impact Indeed, at a time when the pressure on companies to reduce their environmental footprint grows ever more acute, Avinor is taking this responsibility very seriously. In October 2011 it announced its intention of investigating the possibility of setting up biofuel production for aviation in Norway. To this end, it has obtained tenders from some of the leading consultant communities in Norway who will investigate what it would take to establish commercially viable biofuel production for aviation in Norway. The development of biofuel is important for the sustainable future of the aviation industry,
which currently accounts for around two per cent of global man-made greenhouse gas emissions. With a doubling of air traffic expected in the next 15–20 years, biofuels will be an important part in the efforts to reduce aircraft emissions.
New chapter in European aerospace In December 2011 Avinor, along with the air navigation services providers of Estonia, Finland and Latvia (EANS, Finavia and LGS), provided the European Commission with the necessary documentation to establish a North European Functional Airspace Block (NEFAB) by December 2012. The establishment of NEFAB is expected to provide a huge boost to north European aerospace, including increased flight efficiency, higher safety levels and lower CO2 emissions. According to a feasibility study, the calculated benefits of the Functional Aerospace Block are expected to reach as much as €340 million for the period 2012–2025. This partnership will certainly aid Avinor in its mission to continue improving both the operational and environmental efficiency of its services. n Industry Europe 199
SUSTAINABLE PRODUCTIVITY With a new business area structure, a continuing process of strategic acquisitions and a focus on product innovation, Atlas Copco is helping customers all over the world to improve their productivity. Peter Mercer reports.
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arlier this year the Atlas Copco Group decided to modify its business area structure to strengthen its focus on specific product and customer segments. The company’s divisions for portable compressors and generators, road construction equipment and construction tools joined together in a new Construction Technique business area. The divisions for underground and surface drilling products as well as crushing, loading, hauling and exploration equipment now work under the umbrella of Mining and Rock Excavation Technique. The Stockholm headquartered global group is thus now organised in four, more tightly focused business areas, in place of three. Its Compressor Technique area is now focused on stationary equipment for air and gas related services – industrial compressors, gas and process compressors, air and gas treatment equipment etc – while Industrial Technique continues to specialise in high-quality industrial power tools and assembly systems for the automotive and aerospace industries as well as for general industry. “With more focused business areas, each will have a strong platform from which they can develop the offering for their customers,” said Ronnie Leten, president and CEO of the group. “The modified structure also allows us to better capture the sales and service syner-
gies between our construction businesses and capitalise on the future growth of construction projects around the world, especially in emerging markets.”
Global reach, local service Atlas Copco is a company with a global reach – its activities span more than 170 countries – and in 2010 it had 33,000 employees and revenues of SEK 70bn. Its Construction Technique business contributed SEK 11.2bn of this total and has product development and manufacturing units in Belgium, Germany, Sweden, China and Brazil. It supplies compaction and paving equipment to civil engineering contractors across the world as well as light construction tools such as breakers, cutters, drills and handheld compaction equipment to trade contractors and rental companies. Its portable compressors and generators are used to provide power in all kinds of construction applications. “The new structure will enable us to combine product families so we can present customers with a greater and more integrated service and at the same time have fewer people facing those customers. So our service will be more productive, more efficient and more distinct from that of our competitors. But we won’t at all
reduce our ability to offer local services, through our many component businesses; we deliver global solutions but we will still leave it to local managers to decide what suits their markets best.”
Quality counts The new Construction Technique business area faces, of course, a global market that has seen continuing uncertainties over the last three years but Mr Gaar says that while the total volume of business in this market has declined, Atlas Copco’s market share has grown – and continues to grow. “Our mission is to help customers increase their productivity with more efficient products and equipment and this is even more important for them when times are hard,” he explains. “Customers come back to us because they need quality products and first-class service. In developing markets especially, there are big opportunities for Atlas Copco construction tools as customers in Russia, India and China explore how to replace old equipment with new, high-quality products that will increase their productivity. They are just as capable as our European customers of seeing the difference between low-cost and high-quality products.” Michael Gaar adds that Atlas Copco is also continuing its acquisitions strategy,
looking for companies that will help it to strengthen its local presence all over the world. Last July, for example, the Group acquired the Spanish generator manufacturer Gesan. Based in Zaragoza, Gesan supplies generators to more than 85 countries, and Europe, Russia and Africa are its most important markets. “Gesan complements Atlas Copco’s generator business very well geographically. We also expect synergies in sales, service, purchasing and manufacturing,” said Ronnie Leten. Atlas
Coco will keep the Gesan brand name and the business will operate within the Portable Energy division of Construction Technique.
Continuing innovation “We will continuously review potential acquisitions to add new technologies,” said Ronnie Leten, “but it is even more important that we remain focused on product development and innovation.” In fact, Atlas Copco was named last August in a Forbes magazine list as one of the world’s 100 most innovative companies.
An excellent example of this innovative spirit is the new conceptual battery-powered asphalt roller that has been developed by Dynapac, the Swedish compaction and paving equipment manufacturer that has been a member of the Atlas Copco group since 2007. The Dynapac CC900E is not only emissionfree; it is also very quiet in operation and offers the same compaction performance as its diesel-driven counterpart, the CC900. For normal tasks this electric roller will work for a full day on one charge and can be recharged
overnight. Thanks to its low noise level and emission-free drive the CC900E is ideal for indoor operation and work in noise-sensitive environments. It is currently being evaluated by customers in the field prior to full production.
Growth potential Atlas Copco continues to develop markets all over the world but it sees the greatest current potential for growth in China and the USA. At the beginning of 2011 it announced an investment of SEK 60m in a new research and development centre in Nanjing, China. The new centre will provide customers within the Chinese mining and construction industries with specialist engineering services, laboratories and testing facilities. In the USA, Atlas Copco has recently acquired the compressor distribution business of the Tencarva Machinery Company, a long-time distributor of the Swedish company’s products. The acquisition brings it closer to its customers in Tennessee, Virginia, Mississippi, Maryland and Delaware. Michael Garr said, “but we now have the right people there, we have good logistic systems and a growing network of dealerships. We see the USA as a market with a very high potential for Atlas Copco.” n
Quality welding and machining ASG Machine Manufacturing Ltd. has more than half a century experience in the field of production of medium weight (1-10 ton) welded machinery structures. Welded and machined parts are produced according to clients’ technical documentation and requirements. Manufacturing from steel with increased yield point and versatile wear plates including Hardox 400 & 500 and HiTuf are our strengths. We have an accredited material testing laboratory to make DT and NDT tests on steel structures. We have all the required international certifications to process these materials (EN ISO 9001:2008, DIN 188007 class “E”, EN 1090-1, DIN EN ISO 3834-2 etc.) As a supplier of Atlas Copco Rock Drills we manufacture welded structures of underground mining machinery.
Hungary H-2800, Tatabánya, Mészáros u. 4. Tel: +36-34/515-901 • Fax: +36-34/515-915 E-mail: email@example.com • www.asg.hu
GENERATION 204 Industry Europe
The Babcock & Wilcox Group is a USA-based provider of design, engineering, manufacturing and construction services to the energy and power industry. The company has a strong base in Europe with its Danish operation Babcock & Wilcox Vølund A/S – a company dedicated to converting household waste and biomass into thermal energy.
abcock & Wilcox (B&WV), headquartered in Baberton, Ohio, is one of the world’s leading suppliers of equipment and technologies designed to serve the global power generation industry, including nuclear, renewable and fossil power. Today it has many high-profile customers throughout the world, both industrial and government. Its products find application in a large
number of sectors, including construction, fossil power, nuclear, pulp and paper, and industrial power. At the core of the company’s business is its production of a wide range of boilers. It offers chemical recovery, marine, heat recovery steam generator and waste-to-energy boilers, amongst many others. Alongside this, its service includes a full range of boiler
replacement parts and auxiliary equipment in order to keep its clients’ equipment operating at optimum levels.
Nuclear power services In the area of nuclear power the company’s range of products covers commercial nuclear plant components, including reactor vessels and recirculating steam generators. It is also
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currently in the process of deploying its B&W mPower™ reactor – a scalable, modular, passively safe, advanced light water reactor system. It is capable of generating capacity in 180 MWe increments to match its customers’ specific load growth projections. It is expected that the reactor will help reduce the risks associated with deploying nuclear power and become a cost-effective solution to US energy needs whilst also lowering greenhouse gas emissions. The group has won many high profile contracts in the area of nuclear power. For example, in 2010 its subsidiary Babcock and Wilcox Nuclear Operations Group, Inc. won a $2 billion contract for the manufacture of nuclear components to support the US defence programmes, including the manufacture of naval nuclear power systems for submarine and aircraft carriers. The second release of this order, for $600 million, was received in January 2012.
Environmental activities Babcock & Wilcox is also dedicated to greener energy solutions, integrating environmental protection into its new boiler and 206 Industry Europe
power system design processes as well as helping clients develop their existing plants to meet the ever-tougher global environmental regulations. Its environmental products include solutions for, amongst other things, carbon dioxide control, emissions monitoring, mercury control and nitrogen oxides control. The company also has a strong base in Europe in the area of converting household waste and biomass into thermal energy. Headquartered in Esbjerg, Denmark, and 100 per cent owned by The Babcock & Wilcox Company, Babcock & Wilcox Vølund (B&WV) offers its customers an exceptional degree of multinational synergy, namely over 140 years of thermal energy production in North America plus 75 years of experience in Europe. The two businesses, however, are not images of each other. B&W in the USA is a world-famous boiler manufacturer for the power and utility industry, while Vølund is concerned with waste related plants, and to some extent, biomass combustion systems. In addition to dedicated waste combustion systems, B&WV has developed a second line of technology for use in the
combustion of biomass, providing either full systems or components if they are required by other companies. Biomass can be described as fast-growing crops such as different types of wood, straw etc, or it could be more exotic items such as nuts, agricultural by-products such as rice husk, the remains of cotton plants after the crop has been picked, and so on. In Finland and Sweden the forestry industry also produces a considerable amount of biomass as a byproduct of its normal operations. As an example of the company’s work in this area, in 2011 B&WV was awarded a contract worth more than $30 million to design and supply a boiler, combustion system, emissions control components and other equipment for the expansion of a waste-to-energy, combined heat and power plant in Lidköping, Sweden. The project is scheduled for completion in early 2013.
New developments Babcock & Wilcox is continuing to diversify and expand its portfolio of products and services. In December 2011 it announced the acquisition by one of its subsidiaries of
Anlagenbau und Fördertechnik Arthur Loibl GmbH (Loibl), a privately held Straubing, Bavaria, Germany-based manufacturer of material handling equipment. Loibl is a German-based supplier of material handling products, serving a variety of power generation and industrial markets in Europe, which will be complemented with the introduction of Allen-Sherman-Hoff’s fly ash and bottom ash handling technologies.
Brandon C. Bethards, president and CEO of B&W, commented at the time: “Loibl’s outstanding reputation, advanced technology and more than 50 years of experience will be valuable additions to B&W’s portfolio of products.” R&D will also continue to be an important focus for B&W in its development of new products and services, as it has been since its founding in 1867. From the initial
improvements of Wilcox’s original safety water tube boiler to the first supercritical pressure boilers, and from the first privately operated nuclear research reactor to today’s advanced environmental systems, innovation and the new ideas of its employees have placed B&W at the forefront of safe, efficient and clean steam generation and energy n conversion technology. www.babcock.com Industry Europe 207
THE WORLD’S COOLEST CONTROLS Daikin is a global leader in the design and manufacture of advanced refrigeration and air-conditioning products. Philip Yorke takes a closer look at Daikin Europe’s latest on-line controller and other groundbreaking new products.
aikin Europe NV is based in Belgium and is the sales and manufacturing headquarters responsible for the production, marketing and distribution of air-conditioners in the EMEA countries. The company was founded in Ostend in 1973 and today operates the most advanced air-conditioning plant in Europe covering more than 150,000 square metres. This extensive, modern facility produces equipment for markets as diverse as Norway and South Africa. The recent addition of two new European production facilities in the Czech Republic has added production capacity and optimised lead times for its markets worldwide. The company also has a number of wholly-owned affiliates in Spain, Germany, France, Belgium Portugal, Greece, Italy, Poland and South Africa, as well as in Sweden, the UK and the Netherlands.
Advanced super-efficient systems Daikin Europe offers a unique range of advanced super-efficient air conditioning and refrigeration products and systems for commercial, residential and industrial applications. These products include split air conditioners,
208 Industry Europe
heat recovery units, sky air units, air and water cooled chillers as well as state-of-the-art VRV systems and packaged units. In addition, Daikin produces a range of home-heating units, air purifiers and a complete suite of userfriendly, air-conditioning management and monitoring control systems. All of these systems guarantee that optimal energy efficiency is achieved throughout the long operational life of the product, a philosophy central to Daikin Europe’s mission which is underpinned by a continuous programme of research. Diakin has pioneered heat recovery technology for many years and by combining its new REYAQ-P VRVIII model with an HXHD hydrobox it has produced the world’s most efficient in its class, whilst at the same time significantly extending the advantages of the heat recovery process. The resulting free, recovered heat can also be used to produce hot water to satisfy the demand for domestic hot water and the provision of heating to radiators and under-floor elements. The company’s innovative ‘hydrobox system’ includes all the connections, pumps, filters and valves to connect to any water circuit.
Furthermore, intelligent control of the water temperature eliminates the need for a mixing valve by producing the exact water temperature whenever it is required. Daikin places a high priority on maintaining its global reputation for quality and reliability. As a result, quality is implicit throughout its product supply chain and all units are rigorously tested as part of the company’s determination to avoid any possible equipment failure in the field. Compliance with ISO 9001 and EUROVENT product test requirements are supported by 24-hour monitoring under simulated field conditions, which in turn is underpinned by the full, technical backing of the company’s Japanese parent company: Daikin Industries Ltd. It is worth noting that Daikin is the only air-conditioning manufacturer in the world that produces both its own compressors, and refrigerants.
New technology brings new benefits Recently Daikin Europe announced the launch of its latest online controller, which sets new standards in remote control technology. The company released the high-tech
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device with the slogan, ‘Always in control no matter where you are’. This latest control solution is available to suit a wide range of Daikin split units and allows the operator to control heat pump systems from anywhere in the world via a laptop, tablet or smart-phone that has internet access. By simply entering the URL or running an app on a supported device, full access is gained to the system’s main functions. This new online controller is fully compatible with selected Daikin split systems such as Daikin Emura and Nexura as well as with other wall mounted, floor standing and ducted systems in the company’s split range. Another ‘first’ from Daikin is its new ‘streamer technology’ air purifier. This portable unit is designed to decompose allergens and other harmful bacteria and to release the ‘purified air’ back into circulation, thereby enhancing the health aspects of the environment. Traditional air purifiers based on the simple filter system are often insufficient to meet the high expectations and demands of their users. To address this issue, Daikin undertook research into the problem which resulted in the complete re-engineering of Daikin Streamer Technology. Today, instead of a simple filter, a multi-layer system is employed with six
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independent elements designed to capture, remove and decompose not just allergens, but also dust particles, odours, pet hairs, moulds, pollens and mites, which results in a far higher degree of air purification all round.
Increasing focus on sustainability Daikin’s commitment to energy conservation and sustainability is matched only by its ongoing dedication to innovation and quality. The company is a global leader in its field concerning energy conservation and often pre-empts international and local legislation in these areas. In 1988 Daikin became the first European air-conditioning manufacturer to achieve ISO 14001 certification and all its affiliate companies are expected to meet these stringent requirements within the next few years. Geert Opdedrynck, assistant director of Daikin Industries Czech Republic (DICZ) said, “Environmental issues are high on our agenda. DICZ has had the ISO 14001 certification since 2006 as well as holding a number of other environmental accreditations. As a company we are at the forefront in applying all the many environmental regulations, even before they become a legal requirement. For example, our complete range of products was fully compliant six months before the
EU’s Restriction of Hazardous Substances (RoHS) came into force.” Daikin confirmed that it will continue to make significant investments in energy conservation and has endorsed a managed programme of sustainability to achieve optimal environmental outcomes throughout its n manufacturing processes.
VISIBLY SUPERIOR Fuyao is a global leader in the manufacture of automotive safety glass and high-technology glass for industry. Philip Yorke spoke to Norbert Geisinger, the company’s European managing director, about its latest research projects and customer support programmes and the strategy behind its growing success in Europe and Asia.
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he Fuyao Group is a joint venture corporation founded in Fuzhou, China, in 1987 and was the first company in its field to be listed on the Shanghai Stock Exchange in 1993. Today the company employs more than 14,000 people worldwide and is by any standard a highly successful, global manufacturing company and one of the world’s top four manufacturers of glass for the automobile and manufacturing industries. Since its inception, the company has adopted some of the world’s most advanced management programmes,
such as the Oracle ERP IT system with its proven international manufacturing management models and business processes. In addition, Fuyao is fully certified to ISO 9002, QS 9000, VDA6.1, ISO14001 and TS16949. As a mark of the exceptional standards achieved in both manufacturing and costefficient service, the company received the 2000 Gold World Excellence Award in 2007, for quality, cost and delivery from the US Ford Motor Company. More recently in 2008 the Group’s CEO, Steven Cho, received the Sup-
plier of the Year Award from General Motors, for outstanding contribution to the manufacturing of world-class vehicles, as well as winning the Gold Prize for the best Supplier.
Extending value-added services The Fuyao Group produces a wide portfolio of products from laminated glass, tempered glass and hollow glass to silver mirror glass and float glass. However, the company also offers a wide range of value-added services for its OEM and Tier 1 customers, as Mr Geisinger
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Ayrox To achieve our goals we have selected the company Ayrox as one of our our long term reliable technology providers. For some 20 years ago we bought the first soldering machines for our heatable backlite production from them. This technology is still in use in several of our production facilities.
Antaya Technologies Innovative glass connections The leading global supplier of automotive on-glass attachments for power and signal applications. Over twenty years providing custom high quality components for demanding automotive glass applications for evey major OEM. All components are available with our ELV compliant lead free solder.
For information on our on-glass components, our lead free solder or our custom designed controlled resistance soldering, contact email@example.com or visit us at www. antaya.com
In 2007 Ayrox helped us to get a major addition to our product range by supplying the first PVB wiring machine used to produce heatable windscreens for vehicles. Heatable windscreens are a value-added product installed into top of range Chinese and European cars. One of our latest challenges came with the automated installation technics at car assembly lines which requires windscreens to have silicone free edges. Here again Ayrox is our number 1 provider of silicone free vacuum rings used in lamination process of windscreens.
explained, “We add value to the products that we import from China for our European customers by adding profiles to the top and bottom of the windows as well as by providing a variety of chemical applications. We also offer a range of value-added services when it comes to logistics, which means that our customers do not need to carry stocks of our products as we warehouse these on their behalf, so that they can be delivered on a ‘just-in-time basis. We also provide a design service that offers new programmes and the creation of drawings for new products from data prepared in China.” “Here in Germany we act as a very important communication centre between Europe and China, especially in terms of new projects and in relation to providing feasibility studies and acting as a conduit for communications with our OEMs. In Europe today we manufacture automotive safety glass for VW-Audi, GM, BMW, Daimler and Volvo as well as for second-tier suppliers such as those who produce sunroofs for cars and recreation vehicles. Other major
clients for us include Jaguar Land Rover and Honda UK.” Mr Geisinger added, “The competition in the automotive industry is very strong but we have a number of key advantages. For example, most of our tooling is done in-house and is more competitively priced due to the low labour costs involved. Furthermore, because of the fact that car production lines for vehicles such as the Audi A4, VW Tiguan and BMW 3 series are seeing strong growth and are produced also in China, and because we are able to provide everything on site, it is possible to bring a share of this business to Europe. We also enjoy close contact with our OEM customers and currently are in a transition stage to offer further improved communications and consultancy services to our clients.” “This increased focus on customer service is backed by a strong group performance enabling us to offer a new range of dedicated services and special project teams allocated to our customers. At Fuyao, our various R&D departments are also working to become the first to launch an entirely a new type of
high-technology safety glass product known as ‘Switchable Glass’. This is the safety glass product of the future and will enable drivers to switch from clear glass to tinted glass at the touch of a button.” Fuyao’s test facilities are among the most advanced in the world and the company has invested more than €5 million recently in inspection and testing instrumentation equipment. These facilities represent the most advanced techniques available for mechanical testing and the testing of environmental resistance, optical performance and the material analysis of vehicle safety glass. The company’s extensive laboratories are able to conduct tests in compliance with all international standards including GB9656, ECER43, ANSI Z26.1 and J1SR3211.
Asian markets driving global sales In China, Fuyao has captured more than 50 per cent of the domestic OEM market and has been approved as a qualified, key supplier to eight of the world’s leading automotive manufacturers: GM, Audi, Bentley, VW, GM, Ford,
Antaya There has been a significant increase in the number of features that are available as part of the car glazing systems. Gone
GKN Sinter Metals
are the days when the only feature that could be found on a typical backlite was a defroster grid circuit. Now most vehicles have complex antenna grids, anti-theft systems, integrated
The global automotive industry is more competitive and demanding than ever.
lights, wipers, and cameras, with additional features to come. We have partnered with Antaya Technologies Corporation, an American company with a subsidiary in China, to help us stay on the leading edge of the development of these features.
To meet these ambitious requirements we need strong and trustworthy partners within the components industry. Our main focus is therefore on a joint development.
Antaya manufactures customized connections for us that fit individual applications to the most demanding global automotive quality standards. In addition, Antaya is the world’s largest supplier of lead free on-glass connections. With help from
More than 20 different, exclusively designed mirrorbuttons made from GKN Sinter Metals powder metals are the result of this innovative cooperation.
Antaya, we are pleased to report that we are the only Chinese glass suppler that has fully validated lead free connectors as a general drop in replacement for leaded parts. In addition to complying with many OEM and governmental requirements, the lead free initiative has immeasurable benefits for the health of our employees.
Toyota, Honda, Nissan, PSA, Volvo, Hyundai and Daimler. Fuyao’s advanced manufacturing techniques are supported by low labour and overhead costs, which means that automobiles manufactured in Asia can be more competitively priced for the European markets, as well as for the emerging markets of the world, thus helping to drive new sales. In addition, as living standards improve for people in the developing markets, motor cars have come within the reach of an increasing number of households. Today Fuyao is ranked as number one in China and number for in the world. The company is committed to becoming the global leader in safety glass manufacturing and technology. To help it to achieve its objectives, Fuyao is planning to build its own glass research institute and an international scientific research centre to develop both upstream and downstream industrial safety glass products. Today, specialised high-technology glass manufactured by Fuyao includes self-cleaning, titanium silver coating, silicane coating and low-e n coated safety glass products.
Both market – leading companies are committed to the highest standards of quality and customer satisfaction.
INNOVATION WITH A CONSCIENCE The Sabaf Group is one of the world’s leading manufacturers of gas home appliance components and hinges for domestic ovens, washing machines, dryers and dishwashers – but it also has a social conscience. Barbara Rossi talks to CEO Angelo Bettinzoli to find out more.
abaf was originally established as a familyrun producer of various brass products in Brescia, Italy, soon after the end of World War II. In the 1960s, with the economic boom and rapid growth of the household appliances sector, the company decided to begin producing valves for gas cooking appliances. A further development occurred in the 1980s when, alongside valve products, the company started designing and manufacturing burners for gas appliances. In the 1990s it was listed on the Milan stock exchange and underwent an organisational change to promote growth. This was followed in the next decade by the acquisition of the Italian company Faringosi Hinges Srl, the establishment of Sabaf do
Brasil, and the transfer of core production processes to the new site in Ospitaletto, Brescia, where it also began the production of its new light aluminium alloy taps.
Today’s product range The Sabaf Group designs and manufactures components for gas cooking appliances, such as taps, thermostats, burners, accessories and hinges. The last category of products, manufactured by Faringosi Hinges Srl, facilitates the smooth opening and closing of oven, washing machine, dishwasher and dryer doors. Burners currently hold the greatest market share, followed by taps and thermostats and hinges. In addition to the design and manufacture
of these products, Sabaf offers assistance services and has a hi-tech testing laboratory where it can test its products’ compliance with all relevant worldwide legislation. In terms of new products, Sabaf is currently developing new special dual taps made of extruded aluminium alloy. The company has also developed a new set of burners, initially developed to meet the needs of the Chinese market but which, later on, has been engineered to be suitable for other markets. It’s based on a high power, efficient dual burner with various flamespreader options: an aluminium one for standard usage, a brass ring one for high end products and a torch burner
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Since 1971, Tavelli F.lli Snc has been making use of its technical expertise to design and manufacture aluminium, Zamak and plastic die casting moulds, used in various sectors such as telecommunications, the automotive industry, electronics and the most recent market concerned with renewable energy. The company covers a total of 1,500 square metres and employs a staff currently consisting of 20 employees. Our facility manufactures equipment used for die casting parts with presses up to 1,200 tonnes. Equipment used in the department: 1 5-axis machining center Mikron HPM800U, 3 High speed CNC milling machines (DMG, Mikron), 3 CNC milling machines, 2 Small milling machines, 2 CNC EDM (Agie), 1 Wire cut EDM Robofil 440 SLP, 1 Delta grinding machine, 2 Lathes, 1 Mould testing machine with wax, 1 3D measuring machine. Programs used in the technical department: Pro Engineer 3D CAD (CREO), Autocad 2D CAD, 3D CAD Delcam / Mechanical Desktop, WorkNC CAM / Cutting. The company strives daily to maintain high standards of procedure allowing it to obtain the certification ISO 9001:2008.
Tavelli F.lli snc via Seradello, 163 - 25068 Ponte Zanano (BS) - Italy Tel: +39 030 831453 Fax: +39 030 8911579 E-mail: firstname.lastname@example.org / email@example.com
which is particularly suitable for Chinese wok cooking. They share the same platform and therefore, just by changing the top part, one or the other can be mounted on the same cooker or hob. Sabaf is also designing a new and versatile low energy consumption burner, available in two versions sharing the same platform. This means that, just by changing the top section, the two versions can again be alternatively mounted on the same cooker or built-in hob – offering the option of a simplified burner targeted to the Indian market in particular, or a double-flame three-power burner suitable
for the European and American market. In 2010 the accessory range was completed with the addition of electrodes.
Investing in the future The Sabaf Group had sales revenues of €77.5 million in the first half of 2011 and employs 700 people. The group is composed of the holding company Sabaf SpA and of the subsidiaries Faringosi Hinges Srl, based in Milan, and Sabaf Do Brasil which manufactures burners for the South American market. The group also includes Sabaf Immobiliare, which manages its real estate, as well as Sabaf Appliance
Components (Kunshan) Co., Ltd., Sabaf US Corporation and Sabaf Mexico S.a.d.c.v. which are presently all commercial companies. However, both the Chinese and Mexican sites have warehouses which could easily be transformed into future production sites. In the first quarter of 2011, Sabaf also established a company in Turkey which is set to become another production site. This 10,000m2 site is currently under construction and is expected to be ready by the first half of 2012, when it will start the production of burners. The group increased its production capacity by adding 4000m2 to its Ospitaletto factory.
The new building was completed at the end of 2011. In 2010 Sabaf also invested in a new project – a tap made of light aluminium alloy which can be mounted on any type of cooker or built-in hob. This product is already available on the market. Sabaf supplies its products to manufacturers of domestic gas cookers, built-in hobs and ovens as well as manufacturers of home appliances such as washing machines, dryers, ovens and dishwashers. forty-one per cent of sales are in Italy, 8 per cent in the rest of western Europe, 25 per cent in eastern Europe and the remaining 26 per cent in the rest of the world. However, a lot of the products sold in Italy are for appliances which are then exported. In the future the group intends to increase its presence in China and
India, thanks to the above-mentioned special products taht it has developed for these markets, as well as in the USA with its series III and special burners. In the main, Sabaf intends to follow an organic expansion pattern. Its strategy is to pursue growth on international markets, replicating its cultural and industrial model in emerging countries.
Taking responsibility Sabaf aims to continue offering high quality and advanced technology, resulting in superior product performance in terms of environmental friendliness. The main material used by the group, aluminium, requires less energy expenditure during its processing than other materials employed in the
We are a company which has been active in the packaging sector since 1952. Our activities consist of the manufacturing of various items able to satisfy the diverse needs linked to the commercialisation of your products. Such items are as follows: * CONVERSION OF BOXES, BIG BOXES, DIVIDERS, BEEHIVES ETC WITH LOW/WAVE, MICRO/WAVE, GLOSS, TRIPLE AND MICROTRIPLE CARDBOARD, BOTH PATTERNED OR PLAIN. Furthermore, the optimisation of production costs has allowed us to make our products strongly competitive on the packaging sales market, nevertheless maintaining a high qualitative level.
Bianchi Imballaggi Srl Via Rango 16 25065 Lumezzane (BS) Tel: 030826431 - Fax: 0308921879 firstname.lastname@example.org
industry and also allows it to manufacture products which can offer energy saving advantages to end users, as well as lower CO2 emissions. The group’s strategies also include the continuous development of new products to better meet customers’ needs. Furthermore, Sabaf will carry on developing the technical skills of its employees, its image and its reputation. It has achieved the latter thanks to the attention it dedicates to social issues, such as the Sabaf Charter of Values initiative, written according to the methodology recommended by SEAN and the Instituto Europeo per il Bilancio Sociale (IBS), which is based on the most important legislation and guidelines regarding human rights and corporate social responsibility both n in Italy and globally.
CLEAN AND GREEN
Danish professional cleaning equipment specialist Nilfisk-Advance is one of the world’s leading producers of professional cleaning equipment. Today the company is firmly committed to being an environmentally responsible organisation.
ilfisk-Advance is based in Denmark but has production facilities in Asia, Europe and the Americas as well as sales companies in 43 countries, and distributors in 70 countries. It is partly this global presence that has allowed it to maintain its success for over a century since its establishment in 1906 by a Danish engineer Mr P.A Fisker, with his partner Mr Nilsen. Since the late 1980s Nilfisk-Advance has been a part of the NKT Group, and following this it began to enjoy a period of rapid development as opposed to the steady growth it had seen over the previous decades. With a series of acquisitions of smaller companies it has been able to expand its product portfolio and international presence.
The majority of the company’s business is with B2B customers (around 85 per cent) although a small percentage of its products, including the high-pressure washers manufactured by its subsidiary Alto, are for the consumer market. However, the company continues to be best-known for its industrial and professional cleaning equipment.
Range of products Nilfisk-Advance’s cleaning solutions have a number of applications, including industrial, construction, automotive, schools and offices, shopping centres or domestic, for example. Its range includes industrial vacuum cleaners, which makes up around 35 per cent of its business, floor-care equipment such as floor
scrubbers and sweepers (40 per cent) with the rest (15 per cent) consisting of high-pressure washers for the consumer market. The company doesn’t develop specific products for certain markets. Instead, its philosophy is one of ‘universality’ whereby its range is the same across all group companies. It believes that this is the best way to offer its customers consistency and the highest quality products. This strategy has led to a widening of its product range as it is able to focus on the development of each of its lines rather than customising certain areas. A company spokesperson explained: “We are offering everything required, from small vacuum cleaners up to very large industrial sweepers for big industrial sites, for example, car manu-
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Annovi Reverberi was established in 1958 and specializes in the sector of high pressure pumps. www.annovireverberi.it
A quality partner that can offer specific and turnkey solutions both for the industrial sector and the Mass Merchandisers, accurately studied and tailor-made to meet the particular requests and requirements of each individual customer. Currently Annovi Reverberi produces approximately 1,000,000 pumps per year and exports about 80% of its products.
Annovi Reverberi S.p.A. Via M.L. King, 3 41122 Modena, Italy Tel. +39 059 414411 Fax +39 059 253505
facturers, coal mines or steel foundries. We cover the full range – but of course, we can’t produce everything everywhere. Our factories specialise in particular product ranges.” Product development is a key part of the company’s activities. Its aim is to renew all its lines every three to four years to keep up with current market demands. Generally, the purpose of product development is to meet the customers’ need to cut their overall cleaning costs. This means creating products that run continuously and have maximum up-time.
A green company For Nilfisk-Advance, the most important focus moving forward is to offer products which are both efficient and environmentally friendly. It is a participant in the United Nations Global Compact and the Carbon Disclosure Project. It calls this environmental strategy ‘Green meets Clean’. All its new products are developed with the aim of ‘providing equal or enhanced clean-
ing efficiency while using less energy, less water and less detergent’. Nilfisk-Advance operates a ‘customer focused development process’ as it believes that optimal environmental products begin in the design and concept phase of product. Its website states that ‘incorporated in our global development process is the obligation to consider the four key environmental factors in our industry: energy, water, less detergent and disposal. In line with this environmental focus in product development, the company has introduced its EcoFlex System – a new cleaning technology that achieves both environmentally sustainable cleaning methods as well as the highest standards of effective cleaning. It is a series of patented dispensing systems which allows the user to clean using only water without detergents. Where surfaces are very grimy and in need of both water and detergents, the EcoFlex will reduce water consumption by 50 per cent and the need for detergents by 35 per
Cleaning Division Via Aldo Moro, 40 41030 Bomporto, Modena, Italy Tel. +39 059 8199 011 Fax +39 059 8199 000
A.R. North America, Inc. For the North American market 140 - 81st Avenue Northeast Fridley, Minnesota USA 55432 Tel. 763-398-2008 Fax 763-398-2009
cent. Thus, it ensures a clean environmental for the user whilst also minimising the consumption of resources. EcoFlex is also simple to use, as the company website explains: “With the touch of a button, EcoFlex allows the operator to effortlessly switch between chemical-free, water only cleaning and varying degrees of detergent use, down to pressure flow rates. EcoFlex combines effective, efficient and sustainable methods to set the new n standard in green cleaning”.
THE SCIENCE OF SUCCESS The Hungarian arm of global pharmaceutical giant Sanofi is committed to upholding the country’s tradition for excellent chemistry. Emma-Jane Batey spoke to the managing director, Christophe Gourlet, to find out how this is being achieved.
ith its head office in Budapest, the Hungarian activities for global pharmaceutical corporation Sanofi are spread across three state-of-the-art production facilities. Present through all business areas of the group, with extensive capabilities in R&D, chemistry, pharmaceutical production and its own sophisticated international distribution platform, Sanofi in Hungary is a valued member of the global Sanofi family. Sanofi is the world’s fourth largest pharmaceutical company, with more than 105,000 employees across its activities in over 110 countries, including nearly 19,000 researchers dedicated to developing new
and improved formulas and products. The world’s leading vaccine manufacturer, Sanofi Pasteur provides vaccines to over 500 million people each year.
Yesterday, today and tomorrow Sanofi Hungary has its production facilities in Budapest, Csanyikvölgy and Veresgyház – each carefully equipped with the latest machinery needed to create advanced pharmaceutical solutions. When the company acquired the 10 year-old local pharmaceutical and chemistry company Chinoin Inc in 1991 the whole Hungarian operation underwent a considerable investment programme, which continues to pay dividends today.
Managing director Christophe Gourlet told Industry Europe how this investment adds value to the company: “At the time of the acquisition we underwent a major investment programme to ensure that our scientists had access to the very latest equipment. The massive revamp of our Hungarian facilities at that time allowed us to really cement our market-leading position and we have remained dedicated to continual improvement and maintenance ever since, meaning that our facilities have stayed impressive for more than two decades.” Sanofi Hungary is now realising the value of its considerable investment 20 years ago as the developments and innovations gener-
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Ness Technologies Strategic partner for healthcare industry services in Central and Eastern Europe, North America and Asia
Ness Technologies is a global provider of IT and business services and solutions with specialised expertise in software product engineering; and system integration, application development, consulting and software distribution. From creating the strategy, all the way through implementation and support we always offer the optimal solution to our clients in a customised way. We believe and profess that the key to success in business life is the consistent mapping of new opportunities and continuous development of operations. Pharmaceuticals and Life Sciences companies need technology partners who understand the challenges and complexities of the industry. Ness services encompass each of the major areas of the business designed to help clients improve their competitiveness and effectiveness, lower their overall cost of operations, and improve operational flexibility. Ness Hungary Solutions for healthcare segment: ‣ Efficiency improvement ‣ Enterprise system and application (ERP technology leaders: SAP and Oracle) ‣ Business Intelligence and Information Management, Mobile BI ‣ Major Business Intelligence platforms including Business Objects, Hyperion and Cognos ‣ Information architecture and business analytics strategies ‣ Data warehouses ‣ Enterprise and management information dashboards ‣ Regulatory Affairs ‣ Application engineering centers ‣ Solution Engineering ‣ Knowledge management ‣ Web Portal and Collaboration
Ness Hungary Kft. Bartók Béla út 105-113 1115 Budapest, Hungary Tel: +361 - 481 - 4550 E-mail: email@example.com www.ness.com/hu
ated by the teams using the equipment and facilities are now creating value both for the company and for the country.
Delivering every time One specific area in which the company continues to invest heavily is its distribution platform. This strong network allows Sanofi to maintain its position as the ninth largest exporter in Hungary, delivering to over 50 countries whilst maintaining a 10 per cent domestic market share. Mr Gourlet added, “Our large internal distribution network is key to keeping the strength and performance of our export market. We are continually working on ways to ensure that we are as efficient and effective as possible, delivering the right product for the right patient at the right time. In the export market we have almost no commercial presence as our activities primarily rely on the extensive global demands of the Sanofi group; we only sell through Sanofi affiliates.” The local and international markets for Sanofi Hungary both appreciate the core business activities of the two production plants, one of which focuses on solid form production and the other of which is offering injectable products. Producing chemical products, active ingredients and generic prostaglandin products, the Sanofi Hungary product portfolio
delivers a wide range of treatment across its global network. Following the considerable investment in the 1990s, its production capabilities were given such a boost that Sanofi is the first company in the world to deliver generic prostaglandin products.
High standards The environmental standards at Sanofi Hungary are taken just as seriously as the quest for continuous pharmaceutical innovation. Mr Gourlet explained, “This is a very important topic for us, especially as one of our plants is right in the middle of a city. We take the issues connected to the local environment very seriously as it is imperative that we protect our region; after all, we are in the business of keeping people healthy. We go beyond the required regulations in all areas of our business and are proud of our high standards. We have been widely recognised for this too.” In order to maintain its market-leading position and history of excellence in creating and producing pharmaceutical and chemistry products, Sanofi Hungary also takes the issue of recruitment and training seriously. With Hungary recognised worldwide for its advanced education of scientists, and pharmacists in particular, the company is committed to finding and keeping graduates
to ensure that it has “the next generation of scientists ready to find the next Sanofi Hungary innovation.” In order to attract intelligent youngsters, the company participates in major exhibitions as well as the prestigious International Year of Chemistry, of which it was a major partner. The company’s strong support of PhD students also ensures that it is in close contact with suitable team members. As Sanofi Hungary looks toward the future, it plans to maintain its position as a
highly valued economic player in Hungary even though the country has experienced some difficulties during the global recession. Its company-wide philosophy that “health should be considered an investment rather than a cost” is also a key factor in its expected growth. The many international government-promoted programmes centred on the development of prevention medication are also central to n its long-term plans for success.
FORWARD For more than 75 years, Stöcklin Logistik AG has offered innovative logistics solutions to satisfy the highest requirements across the world. Abigail Saltmarsh reports.
Stöcklin Logistik AG everything moves quickly – after all, it is essential that customers’ products are conveyed, stored and retrieved with the utmost efficiency. The Switzerland-based operation has been in the business for more than 75 years now and prides itself not only on its high quality equipment and effective systems but also on its ability to offer total solutions, says marketing manager Damaris Gruetter. “We can provide our customers with the whole implementation of their intralogistics solutions,” she explains. “Right from the moment a building is being constructed, we can work with the builder and the company to ensure the best solutions are developed.”
State of the art From dedicated production facilities with their own modern infrastructure, Stöcklin develops equipment ranging from simple
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hand trucks to conveying systems, storage and retrieval machinery for all types of load carriers, right up to the complete systems for intralogistics. The company combines state-of-the-art technology with high-quality materials for flexible and reliable, highperformance solutions, and has more than 1000 installed comprehensive systems around the globe. “The two main areas we focus on are forklift trucks and total systems,” explains Miss Gruetter. She goes on: “We have one production facility in Dornach, Switzerland, and another in the Czech Republic, where we concentrate on welding and mechanical production. “Because we can see a situation where we will have to do more in the Czech Republic, due to the lower costs, we have recently invested a lot in that production facility. Production at this site still uses the
Swiss technology and technical ability even though we do not focus on research and development from the facility.”
New products Stöcklin Logistik has continued to move forward through its determined focus on product development. This sees regular launches for innovations designed to improve processes for its customers. One such product, for example, is the new MASTer series for fixed-aisle warehouse control. During development, the company used the latest findings of mast construction and control technology, combined with its many years of experience. The light, torsion-proof mast design allows for high acceleration and travel speeds as well as short warehouse cycle times. The curve-capable devices are adequate for warehouses with various aisles, says Miss Gru-
Industry Europe 233
etter, but they have a relatively small handling capacity. For this quite cost-effective solution, however, customers can choose between a number of devices that travel between the aisles with switch (RGB-K) or transverse offset technology (MASTer-Q). They can control all of the warehouse aisles as an individual device.
Range of temperatures The change in habits in food consumption has led to massively increased demand for automated deep-freeze storages within the past few years, she continues. “Stöcklin recognised this trend at an early stage and developed solutions for storing goods in areas with controlled temperature to meet the high requirements of the foodstuffs and pharmaceutical industries,” she says. “All standard elements from Stöcklin can be adapted for use in storage where there
are temperatures from -30 deg C up to 40 deg C, which is really quite special.” In deep freezing, it is not sufficient to only adapt the electrical components, cables, various oils and greases for usage in low ambient temperatures but it is also necessary to use materials suitable for deep-freeze zones in the company’s steel construction. “Stöcklin can guarantee a continuous deep-freeze chain from initial storage to picking and shipment. With our experience in intra-logistics and wide range of knowhow in product development, we guarantee smooth customer service from planning to after-sales maintenance,” she adds.
The PowerShuttle Another new product is the PowerShuttle (PS). This is moved by the AS/RS (automated storage and retrieval system) in front of a shelf
1. Tekno MP is specialized in the design and manufacture of drive units for electric vehicles. Thanks to over 30 years experience and to a dynamic and qualified structure, TEKNO is your ideal partner for the development and construction of any kind of transmissions. Wide product range, automation of production processes and focus on quality have made TEKNO an international outstanding player. 2. Competence, technological innovation and research for fullpackage solutions are the key factors in our activity. The “Design, Research and Development” department enables us to quickly react to the market demands and to manufacture customized products and solutions. 3. Our philosophy is based upon quality and services to fully satisfy our customers, through the respect of standardized procedures, according to UNI EN ISO 9001:2008 and 14001:2004 norms. 4. Steel, spheroid cast iron, aluminium, bronze and titanium are the predominant materials we machine.
channel and then moved horizontally into the channel on the rail. Here, a pallet is either set down on the rails or picked up and retrieved from storage. This is all accomplished without any cables to the parent vehicle, the AS/RS. The PS communicates by radio and is positioned by a laser distance measurement device in combination with absolute encoders and sensors. It is available in versions for one or two pallets (single or double PS) and is laid out for three-shift operation, seven days a week. It is also suitable for use down to -30 °C. The PS is driven by a power source with SuperCaps and emergency battery (on-board voltage 24V DC). The double layer capacitors (SuperCaps) are recharged within maximum of 10 seconds over pressure contacts on the AS/RS every time they dock.
We manufacture all main components of our gearboxes, and all production steps are monitored and checked through informatics systems like Advance Planning and Scheduling (APS) and Manufacturing Execution System (MES). The partnership with selected suppliers enables us to guarantee a constant quality level in thermic and surface treatments. 5. We can offer, assemble and certify the complete “drive system” package, according to the customers’ specifications. Modern testing tools and software can supply all necessary documents referred to project data. 6. Our main fields of application are materials handling, AGVs, cleaning machines, indoor lift platforms and, potentially, any other electricaldriven application. 7. A deep knowledge of our markets, a strict partnership with leading suppliers and a well-established technical and sales service allow us to reach and keep an excellent balance between quality and price.
via Morandi 10, 21040 Caronno Varesino (VA), Italy • Tel: +39 0331 760 511 • www.tekno-mp.it
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The long service life of one million charging cycles is a major advantage of this low maintenance power source. To ensure that the PS operates reliably even at highly differing temperatures, the energy management system monitors the heat development and operating voltage. “Another of our recent innovations is the BOXer,” Miss Gruetter points out. “This is the lightest, and therefore most energy-efficient, automated storage and retrieval unit for small parts on the market. “Stöcklin also offers the BOXer series as a complete, ready-to-use system consisting of small parts unit, container-conveying equipment, shelf storage and retrieval unit, loading aids (containers, boxes), control and
warehouse management. It is suitable for standard containers and for boxes of different sizes and types.”
Continuing to improve Stöcklin’s products and systems are suitable – and indeed employed – in a wide range of industries. Food, particularly frozen, and pharmaceutical are areas where the company currently sees strong demand. “Our main market is in Europe, we are market leader in Mexico and have a lot of customers in South America. Our aim now is to target the USA,” she says. “Despite the currency situation of Switzerland, which is unfavourable for manufactures based in Switzerland, we are still able to
show our customers the added value of our innovative products and reliable services.” One other strengths of Stöcklin is to build up together with the customer a partnership, this means to develop together a solution, provide him with the perfect equipments he needs and take care of him in a long-term with a reliable after sales service. She adds: “Our products will, of course, continue to be more and more innovative. We want to provide our customers with the best solutions and to be able to offer them whatever they need, from the modernisation of their existing systems through to the implementation of completely new intralogistics solutions right from the start of a n new build.”
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NEW ERA IN MEDICAL
DIAGNOSTICS The electronic medical device manufacturer 77 Elektronika started its operation as a family business in 1986 in Hungary. The company’s focus on innovation and product development resulted in rapid growth and enabled it to achieve a significant global presence. Edina Beale reports. 236 Industry Europe
ince its establishment, 77 Elektronika has been developing and manufacturing two core products: blood glucose monitoring systems and urine analysers. From the very beginning the company’s strategy was to continuously develop and improve its product ranges. One of its recently launched products is Ideal, a new blood glucose meter for personal use which is capable of measuring blood glucose level with laboratory accuracy. “This is a major step forward for both our company and for our customers. In addition to accuracy, measuring is much quicker, and less blood is needed to get results,” adds Mr Zettwitz Sándor, the company’s owner and founder who still manages its day-to-day operations. In the field of urine analysers there are three product ranges: a small output device
used by GPs, a middle range manual device for laboratories and the large automated urine analysers. The products in the small and medium-size range product portfolio have been completely replaced recently by newly developed products. The second generation of large automated urine analysers have just been developed and its market launch is keenly anticipated in April this year. “We have developed numerous technical solutions in these machines which has made the use of the device simpler, which means many more examinations can be carried out with significantly more accurate results than was possible before,” reveals Mr Zettwitz. Between 6 and 7 per cent of blood glucose meters are exported, although in the foreign markets the large urine analysers are more dominant. The European Union is the most
important market, where 77 Elektronika has already sold more than 800 machines. The emerging markets in China and Turkey have also led to increased orders over recent years, with 350 machines sold to date. The company has experienced significant growth in the South American market, especially in Brazil, and other markets are also being explored. Today the firm exports to 80 countries altogether including Australia and several other overseas countries.
State-of-the-art facilities A total of 360 people are employed by 77 Elektronika in three different sites in Budapest and one other production site outside the capital. The company’s annual turnover reached HUF 10.5 billion this year, which accounts for 13 per cent growth compared Industry Europe 237
to last year, and 22.6 per cent growth compared to the year 2009. In line with its ever-increasing sales revenues, the company has gradually outgrown its production capacity which has led to the need to enlarge its facilities. Last year a state-of-the-art production facility was built, providing sufficient capacity to cope with the increased demand for large urine analysers. The company has also invested in establishing a suitable production facility to manufacture its own cuvettes (disposables for the automated analysers). “Customers who purchase our
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machines will also buy the cuvettes from us. This is a small but complex plastic product that can only be produced in a clean room,” explains Mr Zettwitz. “In the last two years we invested HUF 8–900 million to create two of these clean room facilities.”
Sustaining future growth The company’s leading position in Hungary as a blood glucose meter supplier has been threatened recently by the increasing competition arriving from the Far East. “Our policy has been to manufacture premium quality
products in the domestic market at 30–35 per cent cheaper than global market prices. However, competitors from the Far East are able to undercut our prices. Unfortunately, in today’s climate the fact that we supply products developed and manufactured in Hungary is no longer an advantage in the domestic market.” However, sales figures in Hungary show a boom in the market of automated urine analyser machines. The company managed to sell 15 pairs of machines last year, which is very good considering the small size of the country and the current economic climate. At the same time, the soon-to-be launched second generation and the already-started third generation developments of 77 Elektronika automated urine analysers should enable the company to maintain its advantages against rivals in the global market. “This new development is protected by nine patents, which enable us to acquire one third of the
global market against two large rivals that had been major players prior to us having a global presence,” confirms Mr Zettwitz. “Our current focus therefore is to carry out the completion and the launch of the second generation of the large urine analyzers, which will introduce new and improved sample results using the Auto Image Evaluation Module.” This year 77 Elektronika expects to achieve a turnover of HUF 11.5 billion. The company has already earmarked cash for investment in research and development. The medical world is one where there is a continuous need to improve existing technology and develop new solutions. Two things are certain: firstly, with an aging population the need for this company’s products will continue to grow; secondly, 77 Elektronika has the foresight, skills and ability to research, identify and implement the new technologies and is taking steps now to secure n its place in the future. Industry Europe 239
MINERAL WEALTH The mining company Kaolin AD supplies kaolin and silica sand for making ceramics and glass. Joseph Altham reports on a Bulgarian company with a wide range of products and operations in several eastern European countries.
aolin is based in Senovo, in the north-east of Bulgaria, but operates mines throughout the country. The company is most active in the Ruse and Varna regions and also has mines in the south of Bulgaria near Topolovgrad. Kaolin is a type of clay that is used for making porcelain and ceramics. The Kaolin company controls one per cent of the world’s resources of kaolin. Kaolin AD also quarries silica sand, which is used to make glass and as an ingredient in concrete. The company produces and sells more than 1.5 million tonnes of silica sand per year and supplies silica sand for many special purposes. For manufacturers of crystal glass, Kaolin provides silica sand with an especially low iron oxide content (less than 0.015 per cent). Kaolin also supplies high purity silica sand to the construction sector for advanced applications such as water filtration.
Value-added products Kaolin is not only a major mining company but also develops innovative solutions for industry and construction, offering a total of 180 different products. The company’s value-added products meet the specialist needs of several different industries. One example is the limestone that the Kaolin company mines and processes. At Igna-
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tievo, near the port of Varna, Kaolin produces a calcium carbonate additive for animal feed. Another important application for the limestone mined by Kaolin is in power generation, where it is used for flue gas desulphurisation. To generate electricity, power stations in southern Bulgaria often burn lignite, which produces sulphur dioxide. Limestone can neutralise the harmful emissions and thus protect the environment from pollution. Kaolin-based products for ceramic applications account for a significant proportion of the company’s sales; in fact, it is Europe’s second-largest producer of chamotte. Made from refined kaolin, chamotte is needed in the manufacture of sanitary ware in order to give the washbasin a stable shape and increase resistance to deformation. The company also mines feldspar, which is used in the ceramics industry for glazes; and dolomite, which is used in the production of flat glass.
Expansion At the beginning of this century, Kaolin decided to follow a new course and started making acquisitions. By 2006 it had obtained control of three Bulgarian mining companies: Magma 97, Ustrem 2001 and Ogneuporni Glini. As a result of this acquisition strategy, Kaolin also owns a subsidiary in Serbia producing quartz sand. While Bulgaria is still Kaolin’s largest market, the company now sells extensively to Romania, Turkey and Italy and has become a major investor in Ukraine. In 2007, the company bought a 51 per cent share of PKSP, Ukraine’s second-largest producer of silica sand. Following the deal, Kaolin built a new production facility for PKSP in northern Ukraine, at Oleshnya. The Oleshnya site, which opened in 2010, employs the latest sand processing technologies to produce high quality silica sand for manufacturers of flat and container glass. The facility has a capacity of 2000 tonnes per day and its customers include such big names as Saint Gobain, Pilkington and Vetropack, all of which have eastern European plants. The construction of the Oleshnya facility involved an investment of $15 million and has led to the creation of 100 new jobs. Kaolin regards the Oleshnya site as one element in a wider strategy of expansion. With customers in over 50 countries and sales figures n up, this strategy seems to be working.
ADVERTISERSINDEX A Aarhus Karlshamn Sweden AB Aarts Plastics AB Strangnas Valskvarn ACT Group Agco Sisu Power Oy Alfagomma Hydraulic SpA Americhem Europe Ltd Andritz Hydro GmbH Annovi Reverberi Antaya Technologies Corp Arrow Electronics Hungary ASG Gépgyártó Kft Atlantic Multipower Germany GmbH & Co. OHG Atlas Copco Italia SpA Atlas Copco Kompressoren und Drucklufttechnik GmbH Avery Dennison Italia Srl Ayrox SCRL
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P 134 P 160 P 165 P 220 P 122 P 95 P 116 Inside back P 116 P 186
D Danish Crown AS DHL Global Customer Solutions
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F F.W. Hempel Metallurgical GmbH Fitscher Guss GmbH & Co. KG Flextrus AB Forlini Davide Carpenteria Fratelli Garletti Srl
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P 170 P 91 P 230 P 160 P 221 P 238 P 150
Officine Meccaniche Ciocca SpA OMC Sas di Redolfi Ellero & C. OMSO SpA Opsis AB Owen & Palmer Limited
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S S.A. Eredi Gnutti Metalli SpA Saginomiya Europe Sp. z.o.o.(Danfoss) Sasol Wax GmbH Schekolin AG Schoeller-Bleckmann Nitec GmbH Sepam Srl SGL Carbon Simal International Pte Ltd Skanska Norge AS Stål Gruppen ApS Steerprop Ltd Stocchetta Cilindri Srl Surefil Beauty Products Limited Sweet Delight AS
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T T.I.M.E. Service Catalyst Handling GmbH Tad Long Products Srl Tavelli Fratelli Snc Tecnomec Srl Tecomec Srl Tecsis SA Tekno MP Telatek Oy Trelleborg Pipe Seals Lelystad BV Trelleborg Wheel Systems
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W Weidmüller Schweiz AG
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Y Yeun Chyang Industrial Ltd
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Z Zschimmer & Schwarz