Industry Europe – Issue 24.2

Page 1

VOLUME 24/2 – 2014 • €6

The world of European manufacturing






More brown than green Germany has put billions into renewable energy yet its CO2 emissions seem to be rising.


arlier this year a farm near the little town of Rasdorf, in central Germany, was rocked by an explosion. The roof of a cow shed was seriously damaged and one of the 90 dairy cows inside it was injured. Emergency services quickly determined that methane gas was to blame. If this had happened in the UK, near Cuadrilla’s exploratory wells in Lancashire, for example, before dawn the town would have been swarming with Green activists prophesying doom if prospecting for shale gas were allowed to continue a day longer. It would have been an iconic image – Europe’s equivalent of the famous water tap gushing flames in Colorado. That was methane too but, of course, it had nothing whatever to do with fracking for shale gas; the water was contaminated by gas from much nearer the surface, probably from coal seams. The methane in the cow shed turned out to have an equally mundane origin: it had built up to dangerous concentrations thanks to the night-long belches and farts of the cows themselves until something – perhaps a static electric charge or a Friend of the Earth lighting up a spliff – ignited it and blew the roof off. Methane from the insides of cattle is, of course, a major atmospheric pollutant. Every cow expels upwards of 200 litres of methane a day – equivalent to the pollution produced by a car. But still it’s probable that the German public was mightily relieved to learn that the bang in the night was nothing to do with any deviant search for more mineral energy resources. Their government was still holding fast to Germany’s Energiewende, the turn to renewable energy sources that was dramatically reducing its greenhouse gas emissions. That more than made up for farting cows. Didn’t it? Well, Germany’s green energy revolution is certainly ambitious. Eight nuclear plants have already been shut down and the last is set for closure in 2022. Power from the

sun, wind and biomass is meant to provide 80 per cent of electricity production and 60 per cent of total energy use by 2050. As a result, greenhouse gas emissions are predicted to fall dramatically – by 70 per cent by 2040, compared to 1990 levels, and by more than 80 per cent by 2050. And progress is certainly being made – last year renewables accounted for more than 23 per cent of Germany’s electricity production. Of course, this has been made possible only through huge subsidies. The government is guaranteeing 20 years of high prices for solar and wind energy and the output from renewable sources is given priority access to the national grid. That’s good news for the turbine and solar panel makers, for anyone who has the space to put up a wind farm and indeed for any home owner who has room on the roof for a few photovoltaic units. It’s not such good news for consumers who are currently facing a surcharge on their electricity bills to pay for all this of more than €20 billion in 2014. That works out at almost €220 per household per year. It’s even worse news for German industry, which is now bearing the burden of the highest energy costs in Europe – costs that are perhaps twice those of companies in the USA.

Old king coal But if German households and companies are prepared to pay the price, they do have the satisfaction of leading the world in achieving very significant reductions in CO2 emissions and saving the planet. Don’t they? Well, actually, no. The problem is the familiar one of intermittent supply and inadequate storage. When the sun is shining and the wind is blowing there is an abundance, even a surplus, of power. But very little of this surplus can be stored because the technology has not yet been developed

and may never be. So the gaps in the supply from wind and sun have to be filled with electricity from conventional power plants. Nuclear plants are ideal for this role as they emit no CO2 but they have been abandoned in Germany. The next best thing would be modern, highly efficient gas plants, which can respond even more quickly to fluctuations in demand. But no-one is building gas plants in Germany. Why not? Because the huge subsidies and privileges for wind and solar power make building new gas plants completely uneconomic. Even existing gas plants are generating less power – in 2013 output from these fell by 10 billion kilowatt hours. Energy producers simply can’t get high enough prices for power from gas plants to make them viable. So where can they get enough cheap power to fill the supply gap? From, it seems, their old brown coal and anthracite plants that renewables were supposed to replace. In 2013 power output from Germany’s brown coal-fired power stations reached its highest level in more than 20 years – a total of 162 billion kilowatt hours. In 1990, the year of reunification, brown coal stations produced around 170 billion kilowatt hours and that included many old eastern German plants. In 2012, for example, some old plants were shut down, taking out a capacity of 1321 megawatts, but new brown coal plants came on line with a capacity of 2743 megawatts. Taken together with power from anthracite coal plants, this means that it is electricity from coal that is making up for most of the energy production lost from the closure of the eight nuclear plants in 2011. So, even as power from renewable sources (and that does include wood) rises towards 25 per cent of the energy mix, Germany’s output of CO2 is actually rising. It’s not a great n result from €20-odd billion a year. Industry Europe 3

CONTENTS 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

Art Administration Tania Balderson Advertising Manager Andrew Briggs Sector Managers Matthew Howe Milada Preslova Massimo Ragazzo Helen Leisi Mac McCarthy Anthony McClintock Ben Snowing Anna Dudek Stephen Moore Martin Gisborne Victoria Pease

Art Director Gareth Harrey Art Editor Rob Czerwinski Designers Leon Esterhuizen Paul Abbott Claire Bidle Web Development Neil Robertson

Comment 1 4

Opinion More brown than green Bill Jamieson Europe stares into a Japan deflation

Telecoms Industry 6 9

IT Support Jack Everson

Telecom disruption, evolutions and surprises Game-changing technologies

Telecoms news The latest from the industry


Industry Europe Alkmaar House, Alkmaar Way, Norwich, Norfolk, NR6 6BF, United Kingdom Tel: +44 (0)1603 414444 Fax: +44 (0)1603 779850 Email: Web:

© Industry Europe 2014 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

A Square Root Company

US Industry Today, Industry Europe’s sister publication, is published in the United States of America. For further information or to subscribe contact: Sue Poeton, 100 Morris Avenue, Suite 202, Springfield, NJ 07081. Tel: +1 973 218-0310 Fax: +1 973 218-0311. Email: Web site:

4 Industry Europe

Above: Telecoms Industry p6

12 14 16 17 18 19

Winning business New orders and contracts Linking up Combining strengths Moving on Relocations and expansions Industry people Appointments Technology spotlight Advances in technology Notice board New products and processes

Reports 20 21

Focus on Germany Allan Hall reports from Berlin Focus on France Ian Sparks reports from Paris

Agriculture 25

Going for gold Rauch

Automotive 31 36

Creating a brighter future S.C. Elba Creative engagement Stadco

Chemicals 40

Innovative systems for the composite industry BÜFA Composite Systems

Electrical & Electronics 45 50 54 58

An international company LOVATO Electric Top security EVVA Making connections GN Netcom Hearing the difference GN Otometrics

VOL 24/2

Above: BÜFA Composite Systems p41

Energy 62 66

Leaders in boiler technology Ansaldo Caldaie The winning strategy is diversification Renco

Engineering 70 74

Food 78

Above: Rauch p25 Below: Stadco p36

Complete engineering solutions Lenzing Technik The great innovator Emerson and Renwick

Norwegian salmon from the heart of Poland Suempol

Forest Products 82 87 90

Above: Ansaldo Caldaie p62 Below: Suempol p78

Delivering exceptional fibre technology Metsa Fibre FAUS: One step ahead FAUS Woodworking know-how Fantoni

Heavy Vehicles 94 98

Trucks for professionals Sisu Auto New-look truck fleet Volvo Trucks


102 Setting a course for the midstream Golar LNG 107 Bulk shipping specialists Bocimar International

Material Handling

110 Delivering diverse handling expertise Terex-Fuchs 116 Masters of movement Vanderlande Industries


126 A pioneer in plastics extrusion Essentra Extrusion


Above: Metsa Fibre p82 Below: GN Netcom p54

130 Green cooling Huayi Compressors

Transport & Logistics Above: Terex-Fuchs p110 Below: Marco Polo p134

134 Funding greener freight networks Marco Polo

Also in this issue…

22 Compact cooling solutions Bronswerk Heat Transfer 137 Leading the way in intermodal rail ERS Railways

Volvo Trucks p98

Industry Europe 5




Executive Editor of The Scotsman

Europe stares into a Japan deflation Now the problem is a strengthening euro.


ever say Europe’s economies lack surprises. Two years ago the eurozone crisis was so acute there was widespread concern that the single currency would not survive. Greece would almost certainly be forced out. Spain and Portugal were tottering. Cyprus looked sick. Italian bonds were screaming northwards. A wholesale flight out of the euro seemed likely. Today it is the strength of the euro that is causing problems. Indeed, the single currency zone is now facing a Japan-style resort to negative interest rates. In recent weeks it has experienced a further upward twist by widespread stress experienced by several emerging market currencies. The prospect of an end to quantitative easing in the US and UK and the piecemeal approach of the European Central Bank to do “whatever it takes” as Mario Draghi confidently promised some 18 months ago has caused investors to pull funds out of developing country markets and repatriate funds in the expectation of higher (and safer) yields at home. The danger is that the strength of the euro may push the currency zone towards deflation – the very outcome that worldwide central bank intervention has been most anxious to avert. Such has been the concern that Banque de France Governor Christian Noyer recently commented that “any appreciation of the euro exchange rate would run counter to our price stability objective and would be negative.” The effects of a strong euro are by no means all negative. The eurozone’s trade surplus with the rest of the world has continued to grow as imports fell more sharply than exports. The result in November was an external trade surplus of €17.1 billion (£14.25 billion). The rise in shipments from the southern periphery is a sign that the bloc’s worst-hit economies are regaining competitiveness. Exports from Spain, Portugal and Greece were 6 Industry Europe

up by four per cent in the January to November period, compared to a year earlier. But now the eurozone is edging ever closer to deflation. While the strong euro has helped to boost the competitiveness of exports from the single currency zone, it also has the effect of making imports more expensive and discouraging domestic demand. The danger of deflation for businesses is that it weakens the propensity of consumers to purchase goods and services – opting instead to defer in the expectation that prices will be lower in the period ahead.

The danger is that the strength of the euro may push the currency zone towards deflation – the very outcome that world-wide central bank intervention has been most anxious to avert. Companies still deleveraging At present market expectations are that the year-on-year inflation rate in the first three months of 2014 will pan out at just 0.65 per cent, well down on the ECB’s current forecast of 0.95 per cent. The key question now is whether it feels confident enough about a return to headline inflation rates of around one per cent in the second quarter and beyond – climbing to 1.1 per cent in 2014 and 1.3 per cent in 2015) to argue that its monetary policy stance is still appropriate. If its summation is ‘yes’ it is unlikely it will see any need to change its interest rate stance or loosen monetary conditions further. But this would be to ignore the evidence, not just of a reluctance by eurozone compa-

nies to invest but of a continuing preference to pay back borrowings (‘de-leveraging’) rather than step up bank borrowing. Figures for December showed that private sector deleveraging continued, albeit at a slower pace. The ECB may take heart from evidence in a January bank lending survey that the net proportion of banks loosening their lending standards had increased to its highest level since the final quarter of 2006. But firms continue to pay down existing debt. And that’s not encouraging when recovery within the eurozone not only trails that of the US and UK but has become an embarrassment domestically (France in particular) and internationally. This creepy-crawly recovery pace is the dominant problem facing eurozone policymakers who have no evident conviction as to how to tackle it. Policy options range from further cuts in interest rates, more long-term refinancing operations for SME lending and direct asset purchases of the type undertaken by the US and UK, if not on the same scale. For the moment there is still a real prospect that if the currency continues to strengthen the ECB will ‘go negative’ on interest rates in the second quarter of the year. But the problem with this is that different economies within the eurozone are performing at different speeds – a phenomenon that has bedevilled the single currency since its inception. Current ultra-low ECB interest rates have encouraged a splurge of property investment in Germany and a move to negative rates would risk fuelling an asset price bubble. Yet the rise in the euro needs to be contained – and some commentators suggest that the eurozone’s peripheral economies need to see a domestic demand stimulus equivalent to a euro devaluation of 30 per cent. A single currency may bring advantages. Across diverse economies it continues to bring multiple headaches. n

Industry Europe 7

TELCOM DISRUPTIONS, EVOLUTIONS AND SURPRISES Software Defined Networking is a disruptive, game-changing technology. There’s a left-field development that’s orders of magnitude better than cellular: it could take M2M and the Internet of Things to the next level. 4G/LTE has stopped evolving and is enabling next-gen mobile apps like robotic telepresence. But there’s a telecoms elephant in the room: network complexity. Bob Emmerson reports on these developments.

Patient recovery is enhanced via the increased availability of the appropriate healthcare personnel and the ability to exchange information.


am starting with a surprise: robotic telepresence, and the way it has been developed by VGo in order to deliver the old-fashioned healthcare model, i.e. a doctor who had a friendly bedside manner. VGo’s robots bring the doctor to the patient: it’s both high-touch as well as high-tech and that combination is particularly important for children and elderly patients. These robots are being used in assisted living communities, long-term rehabilitation centres and nursing homes. They are also being deployed in schools, where they provide a physical classroom presence for children who have to stay at home. Independent mobility also enables critical social interaction. VGo kids are making new friends in class and hanging out with old friends between classes in the hallways. This is M2M at its most rewarding. Telepresence robots allow users to see, hear, talk and move around, just as if they were there, in the flesh. Moving can be fast or slow and VGo can also pivot in place. There are different driving methods, sensors to assist driving and avoid obstacles plus spoken visitor arrival announcements. They employ Wyless’ 4G LTE managed network, which facilitates the demanding requirement for real-time audio-visual communications combined with simultaneous remote control of the robot. 8 Industry Europe

Network complexity: the elephant in the room This development is both disruptive and surprising. For three decades we’ve thought of the network in terms of the plumbing, as a collection of switches, routers and load balancers. Now we need to see it as a collection of endpoints that interact in order to make things happen. Those hardware assets remain, but ownership and knowing where they reside physically doesn’t help an understanding of network complexity. In today’s dynamic environment it makes more sense to see networks as a collection of things that interact to perform a service. The end points, the people, the devices and the data they generate are the stuff that really matters. When defined in this way it becomes clear that networks are complex infrastructures and that, as a result of developments like BYOD (bring your own device), cloud computing, M2M and the IoT, they are rapidly becoming more complex. Thinking of networks in this way is a more meaningful definition for businesses, whose critical processes are executed on a network of devices, applications, and sensors. As more users join the network, with more devices, each with more sensors and apps, all sharing more information with each other,

so network complexity increases. This means that complexity, not bandwidth, is now likely to be the barrier to network growth and scale. This scenario also indicates the need for some kind of tool that will allow ICT management to measure network complexity, to quantify and understand the problem before attempting to manage it. Stu Bailey, CTO of Infoblox, and Professor Robert Grossman of the University of Chicago, have developed a mathematical equation for measuring network complexity. Their Network Complexity Index (NCI) evaluates the number of endpoints on a network and how they interact to perform key business functions. The software tool that Infoblox developed in order to generate a NCI figure is a free, open-source software application, known as Tapestry, that’s available for download from The ultimate aim of uncovering a business’ NCI is to better understand the change in the level of reliance that a business has on its network: how intertwined the network is with all of the core functions of the business. By taking regular measurements a business can gain information to understand just how fast its network complexity is growing. According to Bailey, this rate of growth is more important than a single, isolated measurement.

The HTC Evo shown here is one of the many innovative LTE-enabled smartphones employed by consumers and business professionals.

Reducing complexity As indicated earlier, proprietary hardware boxes – switches, routers, and load balancers – define today’s networks. However, knowing a network’s NCI should encourage ICT managers to think along different lines, i.e. focus on end points, users, devices and the data they generate. And a logical consequence of thinking differently is a new perspective on solutions that will reduce network complexity: automated network management today and Software-Defined Networking (SDN) in future. Automation allows network managers to offload mundane day-to-day tasks and focus on those that will add value to their organisation. In turn this makes the network management operation more efficient and more costeffective. Network complexity is expected to increase over time in most modern organisations. Organisations will need to manage this complexity carefully, with a particular emphasis on ensuring that rising complexity does not translate into increased cost. SDN, which is covered in the next section, is a hot topic and the evaluation of a network’s complexity index can be seen as a related development. SDN introduces programmability to the network and one of the benefits is the ability to view networks as communication fabrics that connect devices and that are partitioned in certain ways so that they are easier to manage and control.

Software-defined networking Traction is building behind this disruptive game-changing development. SDN enables networking to be an integral part of enterprise infrastructures and allows IT management to control Internet routing. However,

mobile network operators and mobile data have emerged as the key drivers, closely followed by data consolidation. We are moving towards a mobile computing environment and mobile data is driving the need to upgrade the networks of mobile operators. It’s not simply a matter of increasing capacity: high-density, high-speed, low-latency switches are required to manage subscribers as well as their devices and apps, particularly real-time apps like conducting financial transactions from your smartphone. And that is where next-gen Ethernet switches come into the equation. In wide-area SDN environments they can be programmed in a similar way to that of the LAN. Enterprises are employing virtual pools of computing resources that operate very efficiently in private and public clouds. IT is in control of these resources, but when it comes to the Internet they get what they get: an infrastructure based on proprietary, monolithic routers and switches. In a software-defined network these mainframe-type boxes are replaced with regular Ethernet switches, which are much simpler, packetforwarding devices. OpenFlow is the relatively new protocol designed to control flow tables in these switches and an OpenFlow controller can manage a distributed set of hardware switches as a single virtual switch.

SDN meets M2M in the cloud Although traction is building, SDN has become a somewhat contentious issue, which is understandable given the disruptive nature of this development. However, the benefits it can bring to networking are so powerful that it is a question of when, not if,

it goes mainstream. That said, the backing Ericsson is giving to an SDN architectural framework and their Cloud System indicates that we won’t have long to wait. The Cloud System provides a common delivery platform that gives the flexibility and elasticity to deploy software applications and customised network functions wherever they are needed in the network. The inclusion of service provider SDN architecture enables network resources to be allocated and controlled dynamically in real time. This combination enables network slicing, a new network and business model that will accommodate the individual service requirements of consumers and enterprises. In the case of M2M, this can involve slicing the network so as to accommodate the individual needs of different data streams down to a very granular level of control. If we consider the needs of drivers of connected cars, then different slices could be employed to match different application requirements. For example: • The vehicle manufacturer might be performing remote engine supervision while the navigation system would be receiving new map updates • In the back seat, the entertainment system might be streaming video content to young passengers • In the event of an accident the emergency road assistance would send an emergency call. This type of real-time, individualised service segmentation will soon be possible. The key benefit is the ability to provide different applications with different bandwidths together with a different Quality of Service.

LTE-Advanced Cellular network technology has transitioned from 2G to 3G to 3.5 G and now we have (LTE Long Term Evolution), which is marketed as 4G: marketed that way because technically it’s 3.9G. LTE-Advanced is the real 4G because it meets the ITU’s specifications for fourth-generation wireless systems. And though it will take time, it’s set to become the dominant global standard because it will deliver more network capacity, faster data speeds, and enable better coverage. Operators are moving to LTE because it’s more efficient, there is more capacity, network data rates are higher, and voice quality is higher because latency is lower and set-up times are shorter. Moreover, LTE is intrinsically spectrally efficient. End-to-end IP will deliver twice the voice traffic for the same slice of spectrum. Industry Europe 9

Although they are fully featured cellular networks that provide similar data functionality to those of mobile network operators, realising global coverage is not a realistic goal. Instead, they enable efficient, cost-effective delivery of M2M and IoT traffic.

Nokia Solutions and Networks is the world’s specialist in mobile broadband and the company is a leading provider of LTE networks: for example, they have helped three South Korean operators launch the world’s first commercial LTE-A service. South Korea is the most advanced country in the world in terms of LTE adoption. Migrating from LTE to LTE-A was realised via a fairly simple software upgrade and it results in a download data rate of 150 Mbps. The new 4G services mainly target the users of LTE-enabled smartphones, e.g. consumers who want to stream video to their device. But LTE will also be employed by professionals, including doctors and other users of VGo’s telepresence robots. Cellular networks have transitioned from circuit-switched technology through to packet switching, but LTE is significantly different because the network is based on a simple, flat, all-IP architecture that is significantly more efficient than that of earlier generations. 4G networks can therefore accommodate up to 10 times more traffic. There are issues: life would be dull without them, but they are relatively minor. Coverage is ubiquitous in the US and it’s a mandatory requirement in Germany, but the cost of rolling out a new network is high so many operators focus on urban areas. When coverage is missing LTE devices will fall back to 3G and call quality will be lower. However, there are operators who do not enable Voice over LTE (VoLTE) when they launch their 4G offer: calls will be made on a 3G network. More significant is the 10 Industry Europe

fact that a 4G data session will also fall back to 3G when a voice call is initiated: it will return when the call is terminated. However, these are interim issues and real 4G voice as well as concurrent voice and data can be provided and has been provided on some networks, such as the three Korean operators.

Bringing M2M right back to basics Despite considerable success, as evidenced by the plethora of innovative solutions for consumers, companies and society, there is a fundamental issue that the M2M industry, particularly the MNOs, chooses to ignore. Today’s 2 and 4G wireless networks are not truly fit for purpose: they do not and cannot enable the optimum delivery of M2M and IoT traffic. These cellular networks, for example, were designed for voice and high-volume data traffic, not intermittent payloads of under 30 bytes only requiring a throughput of 100 bps. Moreover the communications overhead can be 500 to 600 bytes: well over an order of magnitude higher. That particular issue has led to the development of lightweight protocols; however, protocols are only part of the problem. The real issue is intrinsic: what’s needed is a new kind of network – one that has to be designed from the bottom up using a technology that is fit for purpose. That was a very sweeping set of statements and while the need clearly exists, 2/3G cellular networks will continue to handle the bulk of the low data rate traffic and video traffic such as that of the VGo’s telepresence solution which

needs LTE’s high data rates. However, it’s clear that we have one of those opportunities / challenges scenarios. SIGFOX threw its hat into this arena using a patented radio technology that is currently based on UNB (Ultra NarrowBand), which employs license free spectrum. UNB enables the cost-effective transmission of data over a very narrow spectrum. The devices have outstanding sensitivity, which in turn minimises the number of antennas (base stations) needed for wide area coverage. The company has employed a nationwide cellular network in France, which is a very large country, using 1.500 antennas, which they financed for a very modest 3 million euros. Currently each base station can handle up to a million battery-operated devices. Cell density is based on an average rural range of about 30–50 km (18–30 miles), which is an order of magnitude better than other technologies. Networks are also up and running in the Netherlands and Moscow and coverage in Spain and the UK are scheduled for deployment in 2014. There is a lot to like about this development and SIGFOX is building an impressive list of partners and solutions. The company is also taking part in collaborative projects to design and test intelligent and innovative applications that leverage M2M/IoT connectivity. The relatively low cost of deploying a free spectrum network will allow companies and next-gen service providers to build urban and national networks and a nice feature is the fact that a company becomes the de facto owner of its network.

Conclusions This article covered a mix of disruptive, evolutionary and surprising topics. However while they can be seen as stand-alone developments, there are synergistic relationships that indicate the positive, multi-faceted direction in which telecommunications is proceeding. For example, high-speed 4G networks are to enable lifelike telepresence. The billions of mobile devices, the ‘things’ in the IoT, will not only drive traffic onwards and upwards, it will increase network complexity. But now we can quantify complexity and manage it. SDN will allow IT departments to take charge of corporate networks and thereby leverage the intrinsic benefits of cloud computing and communications. And finally we have a cellular wireless development that was specifically designed to handle M2M and IoT efficiently and in turn facilitate the deployment and usage n of next-gen apps.



New developments in the Telecoms industry

Apple expands worldwide access to educational content


pple® iBooks® textbooks and iTunes U® Course Manager are expanding into new markets across Asia, Latin America, Europe and elsewhere around the world. iBooks Textbooks bring Multi-Touch™ textbooks with dynamic, current and interactive content to teachers and students in 51 countries now including Brazil, Italy and Japan; and iTunes U Course Manager, available in 70 countries now including Russia, Thailand and Malaysia, allows educators to create and distribute courses for their own classrooms, or share them publicly, on the iTunes U app. Visit:

Deutsche Telekom launches partnership with Evernote


eutsche Telekom and Evernote are expanding their partnership to cover the 12 markets in the DT footprint in continental Europe in addition to Germany. With Evernote, customers can take notes, clip webpages, snap articles, create to-do lists and record audio using their mobile phones. The service is available in all 12 markets. DT customers who take advantage of the promotion will also benefit from advanced features

NSN opens new New CEO commences office in Tripoli, Libya role at CWC


able & Wireless Communications Plc (‘CWC’) has announced that Phil Bentley began his role with the company as chief executive officer on 1 January 2014, replacing Tony Rice. Phil Bentley commented: “I am delighted to be joining CWC as its CEO. I recently visited a number of our operations and met with Government partners in our Caribbean and Latin American markets with Tony Rice and the team. Our new office in Miami is taking shape, and I’m impressed with the quality of our people and the opportunities we have.” Visit:

BT awards subsea cabling contract to three firms


has awarded three firms a £26.9 million contract for an ambitious subsea cabling project which will help deliver fast, fibre broadband to the Highlands and Islands. Specialist vessels will lay 20 fibre optic submarine cables in a precise operation during May to October next year, providing a fibre broadband backbone which will eventually link communities from Kintyre to Orkney. Chelmsford-based Global Marine Systems will conduct detailed marine route surveys and supply the cables; Orange Marine, which is based in France but works globally, has been contracted to lay around 400 kilometres of subsea cables, while Hampshire-based A-2-Sea Solutions has been chosen to work onshore connecting the cables to BT’s terrestrial network. Visit:

Orange Business Services acquires Atheos


range Business Services has announced the acquisition of Atheos, becoming the largest European cyberdefense company and strengthening its position as a leading global player in advanced security services. Founded in 2002, Atheos is a pioneer of IT identity and security management on the

like an increased 1 GB monthly upload capacity, off-line notebook usage and accelerated picture recognition. The Premium feature set also includes Document Search, which allows users to search documents, presentations and spreadsheets within their Evernote Notebooks, and also Reminders, which ensure users stay on track with all of their personal and professional projects. Visit: or


okia Solutions and Networks has inaugurates its new office with advanced facilities in Tripoli, Libya. This modern office will enhance the company’s operational agility for delivery of its mobile broadband infrastructure for all operators in the country. The opening of this new office strengthens NSN’s presence in North Africa and reiterates NSN’s commitment to help operators in the Middle East and Africa region build worldclass mobile broadband infrastructure. Visit: French market. With 130 experts in cybersecurity, Atheos works with large French businesses to define, implement, and control their security strategies. The unique expertise of Atheos will combine with the existing competencies of Orange Business Services in security under a new common banner: Orange CyberDefense. “We have consistently recorded strong growth since our incorporation in 2002.

By joining Orange Business Services, we will benefit from its unique expertise of critical infrastructure to take us to the next level. Orange CyberDefense offers a credible response to the security requirements of large companies and government agencies,” said Michel Van Den Berghe, general manager and founder of Atheos. Visit: Industry Europe 11


New developments in the Telecoms industry

Mobile telephony in Channel Tunnel E

urotunnel and the British mobile telephone operators EE (formed following the merger of Orange and T-Mobile in the UK) and Vodafone have signed a 10-year agreement to offer mobile services in the Channel Tunnel. Customers of both operators will have access to 2G1 and 3G2 services in the North Tunnel (UK to France). Both

Altran and Alcatel-Lucent announce industrial partnership project


ltran and Alcatel-Lucent have formed an industrial partnership project to create an expertise and telecoms services centre in the area of Nantes. As part of the project, approximately 170 engineers specialised in 4G technology at Alcatel-Lucent’s Orvault site located in the West of France would be integrated into Altran’s telecoms and media teams. Altran has been a privileged partner of AlcatelLucent for more than 15 years providing R&D consulting and services at an international level. This partnership will create a privileged working relationship between the two engineering teams and as such will enable both companies to reinforce the fundamental basis of their collaboration. Visit: or

Fibre-optic network for the Oise Department of France


ouygues Energies & Services (a subsidiary of Bouygues Construction) and its subsidiary, Axione, in partnership with Sobeca, have been chosen to carry out the first phase of deploying a fibre-optic network in the Oise department, in northern France. The contract with the Oise Depart-

12 Industry Europe

EE and Vodafone intend to offer 4G data services throughout the tunnel in the future. The work will begin with the development of Providing such a wireless service 100 metres below sea level for the 20 million passengers who travel through the world’s longest undersea tunnel each year is a first. In order to deliver this service, Eurotunnel and its partners have overcome a series of technical challenges: the work was conducted without disruption to railway traffic, in a confined environment under stringent safety conditions. Eurotunnel has equivalent agreements with the French mobile operators, Bouygues Telecom, Orange and SFR, which cooperated for the successful installation of GSM-P services in the South Running Tunnel in 2012. Visit:

Continental and HERE map out the future of vehicle connectivity


ontinental, the international automotive supplier, and HERE, a business of Nokia and a leader in mapping and location services, announced that their teams will intensify their collaboration in bringing the Connected Car to life, focusing on Electronic Horizon, future Automated Driving functionalities and Intelligent Transportation Systems (ITS). The work will begin with the development of highly precise map technology for Continental’s Electronic Horizon platform that will enable a vehicle to continuously determine its position on the road to within 10-20cm. The maps will include a range of road information, including lane markings and connectivity, speed limit changes and more. Using this information, all types of vehicles will be able to comfortably react to shifting circumstances, such as changing speed limits, automatically. Visit: ment High-Speed Broadband Authority is worth €97 million. The first phase of fibre-optic deployment is part of a plan called ‘very high bandwidth for everyone, everywhere,’ which aims to equip the whole of the Oise department with a 100% optical fibre network delivering broadband to the domestic subscriber using a tech-

Telefónica and NII Holdings to provide wholesale voice and data services to Nextel in Brazil and Mexico


elefónica and NII Holdings have signed agreements whereby Telefónica will provide NII’s subsidiaries, operating under the Nextel brand in Brazil and Mexico, nationwide voice and data coverage services on Telefónica’s 3G wireless networks. When implemented, the agreements will expand the areas in which Nextel customers using 3G services in Brazil and Mexico can access voice and data services, supporting NII’s growth strategy. Both companies will work closely to implement the agreements as soon as possible. Telefónica and NII’s subsidiaries will continue to manage their spectrum and network assets separately to provide competing services. Visit:

nology known as FTTH, or Fibre To The Home. In all, 136,000 FTTH sockets are to be installed, outside those areas in which private operators have formally expressed the intention to invest in digital infrastructure. Visit: Visit:

INDUSTRYNEWS MTS’s network in Greater AT&T and Ericsson announce agreement for the connected car Sochi Area is fully ready M E ricsson has announced an agreement with AT&T to improve connectivity for products and applications that are powered by the Ericsson Connected Vehicle Cloud. The agreement creates a better consumer experience and helps advance the automotive cloud ecosystem by making it easier to connect in-vehicle technology and provide a path for the next generation consumer experience. Connected Vehicle Cloud is based on Ericsson’s Service Enablement Platform, providing drivers and passengers with access to applications directly from a screen in the car. Examples of consumer services include the ability to detect vehicle repair issues, automatically book service appointments, subscribe to in-vehicle

Wi-Fi, and on-demand infotainment. The solution is enhanced by its ability to send and receive information from third-party ecosystems players, such as satellite radio content providers, road authorities, and city and government sites. Visit:

obile TeleSystems OJSC (MTS), the leading telecommunications provider in Russia and the CIS, announces the results of its network modernisation in Sochi and Krasnodar Krai completed in 2013. During the year, network capacity has doubled while mobile Internet speeds in the cities across the region reached 42MB/s. As a result, the volume of the consumer traffic on the network increased two times. Andrei Ushatskiy, vice-president and chief technology officer of MTS, commented, “MTS is the market leader in Krasnodar Krai, which encompasses the Sochi region and in turn necessitates a high level of commitment to providing best-in-class services to our customers in light of the anticipated influx of guests at regional resorts.” Visit:

Industry Europe 13


New contracts and orders in industry

AREVA wins significant nuclear fuel contract from Dominion


REVA has won a $73 million nuclear fuel contract with the US utility Dominion for Unit 2 at its Millstone Power Station in Waterford (Connecticut). AREVA, which currently supplies fuel to Millstone 2, will provide fuel to the plant through 2035, when the operating license expires.In addition to the fuel fabrication, the scope of work also includes studies and engineering services. “The AREVA design has operated well in the Millstone Unit 2 core and helped us achieve our fuel performance goals,” said Kerry Basehore, director Nuclear Analysis and Fuel, Dominion. “With this contract, we will offer stability for Dominion in terms of pricing for decades into the future. This security of supply is invaluable to utility companies, and it was made possible through the reliability of our products,” said Markus Birkhofer, executive vice-president of AREVA’s fuel activities. Visit:

ProfilGruppen signs agreement with Volvo Cars


rofilGruppen has signed a contract for deliveries to Volvo CarCorporations. The contract, starting in 2015, makes ProfilGruppen a new supplier of aluminium components to Volvo Cars. The volume of the contract is expected to comprise several thousand tons of aluminum profiles.

14 Industry Europe

Balfour Beatty awarded Queen Elizabeth Olympic Park Stadium Contract


alfour Beatty, the international infrastructure group, has been awarded a £154 million contract to carry out the full transformation works to the London 2012 Olympic Stadium for its operator, E20 Stadium LLP, a joint venture between the London Legacy Development Corporation and Newham Council. This new contract encompasses the £41 million Stadium roof contract Balfour Beatty was awarded in the summer. Balfour Beatty will lead the transformation of the Stadium into an all-round multi-use venue, delivering a lasting sporting, cultural and commercial legacy in East London. The new venue will host five matches during the Rugby World Cup 2015 and will be the permanent home of West Ham United Football Club from 2016. Sustainable construction methods will include features of the existing facility being recycled

and incorporated into the new Stadium and the re-use of crushed demolition material, existing balustrades and sanitary ware. Once reconfigured the Stadium’s cable net roof, 84 metres wide at its deepest point, will be the largest cantilevered roof in the world covering every Stadium seat, improving acoustics and spectator experience. Works commence on site early in 2014 and are due for completion in the spring of 2016. Visit:

Meyer Burger awarded major strategic contract


eyer Burger Technology Ltd has successfully concluded an important strategic contract with a new customer. The contract includes delivery of high precision industrial slicing systems for about CHF 40 million. Meyer Burger signed an additional

Volvo Cars is one of Europe’s leading manufacturers of passenger cars and is part of the Chinese Geely Holding Group. “We are very proud of the confidence Volvo Cars has shown in ProfilGruppen by choosing us as supplier and future partner. Volvo Cars’ high demands on us as a supplier will contribute to our technical development. This contract will contribute

framework contract for diamond wire material from Group Member Diamond Materials Technology that has a potential value of about CHF 30 million in consumables during fiscal year 2014 (consumables to be called on an order-to-order basis). Both the systems (equipment) and the consumables (diamond wire) are being used for cutting and slicing applications in specialised non-PV technologies. Delivery of the system solutions is scheduled to begin in January 2014 and will be completed by the end of the first half of the year. The scheduled single-orders and corresponding deliveries from the framework agreement (diamond wire consumables) cover the entire fiscal year 2014. Visit: positively to the growth of our core business and allows us to further expand our automated processing business, which we aim at,” says Anders Frisinger, CEO of ProfilGruppen. As part of the contract ProfilGruppen will invest about 15 MSEK in an automated machining cell. Visit:

WINNINGBUSINESS Scania and GAZ Group deliver 120 buses to Moscow


cania is continuing to strengthen its position as a supplier of chassis to buses for Moscow’s public transport system in cooperation with Russia-based commercial vehicle manufacturer GAZ Group. In addition to 709 buses delivered to Mostransavto for operation in the Moscow region and Sochi, Scania and GAZ Group will now deliver 120 buses to Mosgortrans. The buses will be put into operation in the city of Moscow. The buses now being delivered are of the same model as the previous order – Golaz Voyage. They are built on Scania’s 2-axel chassis with Euro 4 SCR engines. All buses are equipped with the Scania Opticruise automatic gearchanging system. 50 of the buses will be fitted with special equipment for disabled passengers.

“We are pleased to note the continued confidence in Scania’s bus technology,” says Hans Tardell, managing director of Scania Rus. “With even more buses in operation in Moscow, our workshops will benefit from a significant increase in business.” Visit:

Ruukki to deliver steel for thermosolar plant in Morocco R

uukki has signed a contract to deliver 9000 tonnes of metal-coated, high-strength steel to the Spanish company CIE EGAÑA. The material will be used by CIE EGAÑA to manufacture the support arms for the parabolic reflectors in a new thermosolar plant to be built in Morocco. The new thermosolar plant will have an output of

Bluefish wins tender auction in Spain


luefish has been selected as the exclusive provider of four products within the oncology area in a two-year contract for the Andalusia region. The products are Anastrozole 1mg, Bicalutamide 50mg, Bicalutamide 150mg and Letrozole 2.5mg. Initial supply is planned for early 2014. Additional net sales from the contract are

125 megawatts making it one of the largest in the world and is the first to be built in Morocco. Ruukki’s deliveries, which will begin at the start of 2014, consist of metal coated, highstrength steel which will both strengthen and lighten the structures whilst the superior surface protection offered by the Galfan coating will prevent corrosion and extend product lifetime. Protection is key when products are constantly exposed to extreme weather conditions. Tony Harris, vice-president, Sales Western Europe & Africa at Ruukki, commented on the contract, “To secure this contract is particularly pleasing as it is consistent with Ruukki’s strategy to provide lighter, longer lasting solutions to our customers in order to create a more sustainable environment.” Visit: estimated to approximately SEK 15 million per year.While tender auctions for pharmaceuticals are common practice throughout Europe, so far, Andalusia is the only one of Spain’s 17 different regions where this method is applied. Bluefish has successfully built market share in major European markets by offering high quality generic pharmaceuticals.

SKF reaches SEK 370 million agreement with Hyundai Motors


KF has been nominated by Hyundai Motors as a supplier for business valued at approximately SEK 370 million. Within the terms of the agreement, SKF will deliver the recently launched robust MacPherson suspension bearing unit (MSBU). The solutions will be equipping both Hyundai and Kia vehicles like Ceed, Forte, Soul, i30, Sonata, K5, i40, Grandeur, K7, Santa Fe and Sorento. The length of the business is expected to last the life of each car model. Tryggve Sthen, president, SKF Automotive says, “I am very pleased to see our expanding partnership with Hyundai for the steering and suspension application with our recently launched robust solutions. Our engineering knowledge supports our customers in their journey to improve the performance of their vehicles. It is rewarding to have this recognition from Hyundai and I look forward to a continued growing partnership.” The new robust MSBU meets the increased performance demands in terms of higher reliability and increased operating life. Global car models must cope with a wider range of external forces in different driving conditions. This unit is able to support high load and withstand severe pollution with improved reliability. Visit:

Never compromising on product quality and patient safety, it markets its products in an innovative, responsible and cost-efficient way with the ambition of making modern medicines accessible to more people. Bluefish is operating in a large number of European markets. Its portfolio consists of 80 products and is growing. Visit: Industry Europe 15


Combining strengths

Cargotec establishes joint venture in China


argotec has established Sinotruk (Shandong) Hiab Equipment Company Ltd, a joint venture with China National Heavy Duty Truck Group Co., Ltd. (CNHTC), in China. Cargotec’s ownership in the joint venture is 50%. The plans for the joint venture were published in July 2012. Cargotec’s

estimated equity investment in the joint venture during the first operational year is approximately €10 million. CNHTC is a leading Chinese manufacturer of heavy-duty trucks and the parent company of Sinotruk. CNHTC’s extensive network, including dealers and service stations all over China, will be used by the joint venture for the distribution, sales and services of Hiab’s cranes and hooklifts. The joint venture will also further develop CNHTC’s existing truck crane offering and production base for the Chinese market. By combining both companies’ technical know-how, the joint venture is expected to become a significant player in the truck crane business in the near future, particularly in China. Visit:

Boeing and Saab sign joint development agreement


oeing and Saab AB have signed a joint development agreement (JDA) to jointly develop and build a new advanced, cost-efficient T-X Family of Systems training solutions for the upcoming competition to replace the US Air Force’s aging T-38 aircrew training system. The JDA, with Boeing as the prime contractor and Saab AB as primary partner, covers areas including design, development, production, support, sales and marketing. “Teaming with Saab will bring together our companies’ formidable technical expertise, global presence, and willingness to present an adaptable and affordable advanced pilot training solution,” said Boeing Military Aircraft president Chris Chadwick. “Boeing and Saab form the foundation for what will be the strongest, most cost-effective industry team.” The US Air Force T-X program will include aircraft and training that will prepare warfighters for the next 40 years. The Air Force plans to replace

Dassault Systèmes to acquire Realtime Technology AG


assault Systèmes has announced the signing of an acquisition agreement for an 84% controlling interest in Realtime Technology AG (RTT), the leading provider of professional high-end 3D visualisation software, marketing solutions and computer generated imagery services, benefit-

16 Industry Europe

the T-38 with a new Advanced Pilot Training Family of Systems and about 350 aircraft, plus associated ground-based training systems and logistics and sustainment support. The trainer solution from Boeing and Saab and other potential team members will be a newly designed aircraft, built to meet the needs of the USAF. Visit:

ing from the development of the fast-growing marketing automation market. This acquisition of Munich-based RTT will include its software division, known for its DeltaGen, PictureBook, POS Configurator and other solutions, and its marketing consulting services. It will also include subsidiary Bunkspeed, with its line of powerful and intuitive rendering software. RTT’s list of customers

Fortum sells its Finnish electricity distribution business


ortum has agreed to sell its electricity distribution business in Finland to Suomi Power Networks Oy, which is owned by a
consortium of Finnish pension funds Keva (12.5%) and LocalTapiola Pension (7.5%) together with international infrastructure
investors First State Investments (40%) and Borealis Infrastructure (40%). The total consideration is €2.55 billion on a debt- and cash-free basis. Fortum expects to complete the divestment
process during the first quarter of 2014 subject to the necessary regulatory approvals as well as customary closing
conditions. A total of 320 employees will
transfer with the business at closing with existing terms of employment.

 Fortum’s electricity distribution business in Finland includes two jointly managed grid companies: Fortum Espoo
Distribution Oy, with grids in the city of Espoo and surrounding communities and the city of Joensuu, as well as Fortum
Sähkönsiirto Oy, with several grid areas located mainly in southern and western Finland, but also in the north-western part
of the country. The combined network length of the companies is 79,000km, delivering approximately 12.6 terawatt-
hours of electricity to customers. Fortum’s market share of the local electricity distribution in Finland is approximately
20%. Visit: includes Hugo Boss, adidas, Airbus, Audi, BMW, Daimler, Electrolux, Eurocopter, Ferrari, General Motors, Harley-Davidson, Nissan, Porsche, The North Face, Toyota and Volkswagen. “The people at RTT have demonstrated remarkable talents in delivering innovative solutions to their clients,” said Bernard Charlès, president & CEO of Dassault Systèmes. Visit:


Clariant to acquire Indian masterbatch producer


lariant, a world leader in speciality chemicals, has announced the intention to acquire Plastichemix Industries, a masterbatch business in India, located in Vadodara with production facilities in Rania, Kalol and Nandesari in Gujarat (India). Plastichemix Industries is a leading supplier of black, white, filler and colour masterbatches, additive masterbatches, flushed pigments and mono-concentrates as well as engineering plastics compounds. With this acquisition, Clariant Chemicals (India) Limited (CCIL) will gain a leading position in the masterbatches business in India. The deal will enable the company to offer a strong and extensive product portfolio with customised products and solutions and to expand its customer base significantly. As part of the future business approach an upgraded Technical Service Laboratory will be introduced to offer the market highly innovative and customised products. “This acquisition is part of our global strategy to explore business opportunities in our Masterbatches business and to focus on emerging markets like India. The strong growth perspective of the plastics industry results in a bright future for the masterbatches business in India,” says Hariolf Kottmann, CEO of Clariant. Visit:

Sandvik acquires Varel International Energy Services


Atlas Copco buys Swedish drilling equipment company


tlas Copco, a leading provider of sustainable productivity solutions, has agreed to acquire Geawelltech, which sells, rents out and manufactures well- and geotechnical drilling equipment. Gruv Entreprenad Anläggning Welltech System AB, based in Jonsered, Sweden, has annual revenues of about MSEK 90. Geawelltech has for many years been an Atlas Copco distributor of well- and geotechnical drilling equipment, and the majority of revenues are generated from this business. The company also manufactures drilling rigs suitable for a wide range of applications.

Funkwerk AG divests control and signalling technology


unkwerk AG has sold its Kiel operations along with its Swedish subsidiary Funkwerk Information Technologies Malmö AB. Divesting its complete railway control and signalling technology business, previously part of Traffic & Control Communication (TCC), Funkwerk has

“Geawelltech has a strong position in Sweden as a one-stop shop supplier for customers within well- and geotechnical drilling,” said Johan Halling, business area president, Atlas Copco Mining and Rock Excavation Technique. “Ground engineering is a strategic segment for us, and this fits perfectly with the existing Atlas Copco product portfolio.” The acquired business will become part of Atlas Copco’s new Surface and Exploration Drilling division in the Mining and Rock Excavation Technique business area. Visit: set up Schienenverkehr System Technik GmbH (SST GmbH) as a new company to pool all assets of the Kiel site along with the shares of the Swedish subsidiary. The shares of SST GmbH have been bought by Scheidt & Bachmann GmbH, Mönchengladbach, a supplier of railway signalling technology for more than 100 years. Funkwerk AG has opted to sell its busi-

andvik has reached an agreement to acquire Varel International Energy Services Inc. (Varel). The acquisition price amounts to approximately US$740 million. Varel is a global supplier of drilling solutions focusing on drill bits, downhole products for well construction and well completion. The key customer segment is in the Oil and Gas sector, with some exposure to the mining and construction industries. The manufacturing sites are located in Houston (USA), Matamoros (Mexico), Aberdeen (Scotland), Tarbes (France), and Kurgan (Russia). The head office is based in Carrollton, Texas, USA. Varel will form a new product area within the business area Sandvik Venture. “The acquisition forms a platform to enable Sandvik to enter into drilling solutions in the oil and gas sector. The combination of Varel’s solid market position and strong customer offering, and Sandvik’s broader drilling solutions capabilities as well as the extensive knowledge in highly relevant materials and cutting technology, will support Varel’s continued growth,” says Tomas Nordahl, president of Sandvik Venture. Visit:

ness unit as a further step in the strategy to focus on its core segments. A further fact bearing on the decision to sell the unit is said to be the current consolidation of the market for signalling technology in which Funkwerk holds a relatively minor share with an annual sales volume of around €15 million. Visit: Industry Europe 17



Relocations and expansions across Europe

Constellium to invest in Body-inWhite production capacity in Europe

Barrett Steel launches Energy Products Division


he Barrett Steel Group has announced that it has created a new division specifically to service the global energy markets. The Barrett Energy Products Division unifies the various UK and US facilities under a new identity, supporting both UK and international growth. Managing director John Childs explains: “We strategically made the move into the Oil & Gas sector four years ago and have had year-on-year growth ever since. With continued investment in both people and equipment, the new division gives us a corporate identity that supports our vision of becoming a world leader as a solution provider for the energy industry.


Siniat opens lab facility at Bristol plant

Allison Transmission opens new facility in the Netherlands


onstellium NV plans to invest up to €200 million over the next three years to further grow its European Body-in-White (BiW) business. The past few years have seen a notable increase in the use of aluminium flat rolled products in premium car models in Europe. Constellium believes that this growth will continue in light of stringent European legislation on CO2 emissions and resource efficiency. “Constellium is strongly committed to developing its industrial platform and serving the automotive industry globally with innovative and value-added aluminium products. We will therefore continue to focus our energy and resources to develop our global BiW capacity,” stated Pierre Vareille, CEO of Constellium. Visit:


llison Transmission Holdings Inc. has opened a new multi-purpose facility in the Netherlands to better serve its customers across Europe, the Middle East and Africa. Located in Sliedrecht, the building centralises the company’s parts distribution, product customisation and customer training functions. “This facility further expands Allison’s capability to provide our OEMs with transmissions that are ‘installation ready’,” said Michael G. Headly, senior vicepresident of Global Marketing, Sales and Service for Allison Transmission. The integrated customer services will benefit Original Equipment Manufacturers (OEMs) and end users of Allison Transmission products. By building a Parts Distribution Centre (PDC) and Customisation Centre that is located close to major hubs for truck and bus manufacturing, Allison is demonstrating its ongoing commitment to customer satisfaction. Visit:

Axalta expands waterborne coatings capacity in China


xalta Coating Systems is expanding its manufacturing capacity for coatings with the construction of a new $50 million eco-friendly waterborne facility in the Jiading district of Shanghai. Axalta’s Shanghai waterborne facility will manufacture and supply up to 25,000 metric tons of its highly 18 Industry Europe

eading plasterboard manufacturer and supplier Siniat has invested more than £250,000 in the construction of a state-of-the-art new laboratory facility at its flagship manufacturing plant in Portbury, Bristol. The lab provides a modern, high-spec environment for Siniat’s production, maintenance and quality assurance teams and has enabled it to consolidate all three – which were previously based in different parts of the site – in one central, integrated location at the heart of the plant. The facility will also act as an area where Siniat can welcome customers and other visitors to discuss its latest innovations and demonstrate key product performance capabilities such as fire and water resistance. Stephane Mettavant, plant manager said, “We’ve embarked on an ambitious programme of change for our Bristol plant since becoming Siniat. It’s focused on improving facilities for our customers and our employees and creating an environment in which we can share our expertise.” Visit:

acclaimed waterborne products. Axalta’s technological leadership in waterborne paints and expanded capacity for waterborne production will support the long-term growth of an automotive industry that is extending into the southern and western areas of the country. Both Axalta products and the manufacturing facility itself will contribute to the overall sustainable develop-

ment of China’s automotive industry. Axalta’s waterborne production process utilises a global waterborne technology system to produce ‘Lean and Green Automotive Coatings’ that automobile original equipment manufacturers can use to significantly reduce volatile organic compounds (VOCs), energy consumption and investment. Visit:


INDUSTRYPEOPLE Hardide Coatings strengthens technical team Ioan Jones (seated) and Oliver Jones

Hellmann appoints first chief commercial officer


eading global logistics provider, Hellmann Worldwide Logistics, has announced the appointment of a new chief commercial officer, a newly created position within the company. Jochen Freese, who will be based in Hamburg, will manage the business development and sales for the company, thus taking over some of the current duties of the managing partner Jost Hellmann. As a member of the international executive board of Hellmann Worldwide Logistics, the focus of the role will be the strategic business development and growth of the air and ocean freight services, as well as the development of the sales and the solutions business Jost Hellmann, managing partner at Hellmann Worldwide Logistics, commented: “We are delighted to welcome Jochen into our global team and are excited to have created a new role for him. This is another big milestone to lead our family into the next generation and we are sure Jochen is the right person to do so.”


ardide Coatings, provider of advanced surface coating technology, has made two key appointments to bolster its team focused on developing tungsten-carbide based engineering solutions. Ioan Jones takes up the post of laboratory manager and Oliver Jones has been brought in as pre-treatment specialist. The duo will complement the current team of 29 staff, bringing additional metallurgy and chemistry expertise to the company. Hardide Coatings recently developed an innovative coating for TSP (thermally stable polycrystalline) diamonds to extend the life and improve the performance of drilling tools operating in extremely abrasive environments.

Pascal Juéry joins Solvay’s executive committee

New MD for Inwido Sweden


nwido Sweden , the market leader in window and doors, has appointed Mikael Carleson as its new managing director. Mikael will be responsible for all operations in Sweden including the brands Elitfönster, Outline, Erafönster, Diplomat, Hajom and SnickarPer. Mikael Carleson is a highly experienced and market oriented MD who has successfully led international operations at Alfa Laval, Höganäs and Cardo before coming to Inwido in 2012. Over the past two years he has been heading the business area Europe within the Inwido group.

New chairman and CEO of Airbus Group, Inc.


ean O’Keefe, chairman and chief executive officer (CEO) of Airbus Group, Inc, the company’s North American business unit, will resign his position effective 1 March 2014. His successor will be Allan McArtor, currently chairman of Airbus Americas. O’Keefe has elected to step down in order to fully address


olvay has appointed Pascal Juéry as a member of its executive committee. Pascal Juéry joined Rhodia’s executive committee in 2010. After the acquisition of Rhodia by Solvay, he was appointed president of Solvay Essential Chemicals. He was tasked with the reorganisation of Essential Chemicals and the creation of two new global business units, Soda Ash and Hydrogen Peroxides, which have been operational since the beginning of January.

ongoing medical issues due to injuries he sustained in a 2010 aircraft accident in Alaska. Tom Enders, CEO of Airbus Group, said “For nearly 13 years Allan has been a key member of the Airbus Americas senior leadership team and has served as its chairman during a period of significant growth and expansion. His previous government and private sector experience will be an invaluable asset

to Airbus Group and, with his aviation-rich biography, Allan will give us tremendous lift and thrust in the US.” Allan McArtor

Industry Europe 19



Advances in technology across industry

Audi launches strategic partnership with Global Bioenergies


udi is launching a strategic partnership with Global Bioenergies. The carmaker will work with the French biotechnology company to promote the development of non-fossil fuels. In addition to the Audi e-gas and e-diesel projects, the research into e-gasoline is part of Audi’s persistent efforts to find alternative fuels. Reiner Mangold, Head of Sustainable Product Development at AUDI AG: “We’re taking another step closer to carbon-neutral mobility with our partners at Global Bioenergies. We are supporting an innovative technology here which can be

Surface Generation technologies for lightweight automotive components

used to produce renewable fuel. This process does not create competition with food production and farmland.” e-gasoline is part of the overall Audi e-fuels strategy. Audi is already operating a research facility for the production of e-ethanol and e-diesel with its partner Joule in Hobbs, New Mexico. The Audi e-gas plant in Werlte began feeding into the grid a few months ago. Synthetically produced gas is used here to store electric surplus energy. Visit:

Making rail tunnels safer


urface Generation, a provider of advanced composite processing technologies, has announced that WMG at the University of Warwick has adopted its advanced composite processing technologies to develop new manufacturing techniques for lightweight, carbon fibre reinforced vehicle body architectures. PtFS encompasses a range of active thermal management technologies that uniquely allow manufacturers to continuously adapt heating and cooling levels in real-time during part production. These are crucial parameters for successfully manufacturing of carbon fibre parts, assuring quality and maximising productivity. Geraint Williams, project manager at WMG, comments: “Surface Generation’s technologies deliver a real step change for automotive thermoplastic components. The PtFS process is quicker and more efficient than traditional approaches and unlocks a significant market opportunity for affordable, lightweight carbonfibre reinforced components for vehicles at the top end of the high volume automotive market.” Visit:

20 Industry Europe


esearchers at the Universitat Politècnica de València in collaboration with EIGE – the Valencian Government’s Infrastructure Office – and a business consortium have developed an advanced emergency management system to act in case of fire in a railway tunnel and facilitate the evacuation of passengers and staff. The first subsystem developed detects the existence and location of fire throughout the length of the tunnel. Once detected, the system sends the corresponding commands to the anti-spread, ventilation and information subsystems to ensure a safe evacuation. The anti-propagation subsystem activates the unfolding of flameproof fabric on either side of the fire to prevent it from spreading, whilst leaving an opening in the top to allow a controlled expulsion of the smoke from the upper layers and avoid it mixing with the clean air from the lower layers. At this point, according to the researchers, the ventilation subsystem is essential in order to let out the smoke. “This system is designed to expel it as fast as possible so as to prevent it from cooling and mixing with clean air,” said Teresa Real, researcher at the Institute of Transport and Territory – Universitat Politècnica de València. Finally, the information subsystem consists of variable message signs that indicate the fastest and safest evacuation route. For further information, please contact


NOTICEBOARD BEUMER Group launches automated handling system for the tire industry


EUMER Group, a leading global supplier of automated material handling systems, has launched its first automated material handling system to be specifically designed for the tire production industry. The new Tire Tray System automates the handling of tires and provides full traceability and tracking of each tire throughout the production process. The automated system includes the integration of release agent spray systems, as well as the buffering and curing processes. The system offers advanced features such as fully automated loading and unloading; end-to-end

tracking of tires using RFID technology; and the ability to handle a wide variety of tire sizes within a single system. In addition to system-wide visibility and control, detailed management statistics enable the system to be continually optimised to enhance process efficiency. “By eliminating manual handling of tires throughout production, tire manufacturers can enhance workplace safety and continually monitor and optimise process efficiency,” explains Klaus Schäfer, managing director at BEUMER Group company, Crisplant. Visit:

GEMÜ: Precise dosing with In-house nitrogen production for maximum independence the compressed air specialist, will be launching a new range of nitrogen generators early in multi-port valve blocks BOGE, 2014. With these new generators, BOGE will be able to provide a complete system for generating


recise dosing of ultra pure water with heavy-duty switching cycles and a long service life – this was the customer request received by GEMÜ. The task was solved by using a multi-port valve block from the ‘iComLine’® series, which is made of ultra pure PVDF and features innovative seat diaphragm technology with PTFE. This combination allows very heavy-duty switching cycles and temperature resistance up to 150ºC. Multi-port valve blocks combine multiple valve seals in one unit. This means that plants can now be built much more compactly because the pipe connections, fittings and even various sensor components can be integrated. Through customised calculations and configuration of the regulating cones, it is possible to implement Open/Close functions along with very specific control characteristics. Thanks to a wealth of experience acquired over 20 years in the manufacture of stainless steel multi-port valve blocks, GEMÜ has now been able to transfer this expertise to the field of high-performance thermoplastics. Visit:

nitrogen, making users self-sufficient and guaranteeing a reliable and demand-dependent supply. Nitrogen is used in a variety of industries, including the oil and gas industry and in laser cutting, for increasing the shelf life of food and for fire and explosion prevention. BOGE is a system provider that offers users a closely tailored complete package for generating nitrogen. The centrepiece of this all-round solution is the nitrogen generator selected from the N 7 P to N 56 P range. Closely tailored to the nitrogen demand, it delivers purity grades of up to 5.0 (99.999%). Thanks to its modular design, the generator is easy to expand or retrofit the generator on site. Up to two expansion banks can be connected to each master bank. Each bank, in turn, takes up to eight discrete easy-to-fit modules. By combining even more of the complete systems, output can be increased to meet even higher demand. Since only the valves of BOGE nitrogen generators need to be inspected periodically, the units are virtually maintenance-free and do not incur any additional expense. Visit:

New Condux® impact mill Series – maximum flexibility


he concept of the CUM Universal Mill from NETZSCH-CONDUX Mahltechnik GmbH, which has been established in the market for many years, has been reworked. The mill has also been given the new name Condux®. Many special designs of the CUM that are already operating with great success have prompted the development work. Whilst retaining proven design features, an extremely flexible modular system has been created in the new Condux® Impact Mill series. Compared with conventional universal rotor impact mills, the Condux® clearly offers greater flexibility for product processing, since the proven design parameters are now realised in an application-specific ‘modular system’. Here, the integration of unnecessary features is eliminated from the outset and only those that the customer really needs for his application are offered. Decisive

for the design are application-specific housing constructions and bearings that are adapted to the various rotors. Moreover, the new mill is faster and easier to clean compared to the conventional model and, with a narrower gradation of the smaller model sizes, a frequently expressed customer request has been answered. Visit:

Industry Europe 21



Germany Allan Hall reports from Berlin on the huge growth in money smuggling across Europe’s borders.


here is a growth industry in Europe that is booming in every land, rich and poor. The sums involved are vast, the profits huge - and so are the risks involved. The only problem for governments is that this growth industry is illegal. It is money smuggling and it is being practiced with gusto by the mostly middle-class who want to keep their secret wealth away from the taxman. Cash seizures of undeclared money in eurozone countries topped a million euros a day in 2013 and are expected to spike still further in the new year. The culprits look normal – like the man seen sweating on the platform of the Parisian train station. Beads of perspiration dappled his forehead as he clutched his briefcase to his chest. For the plain clothes inspectors of French customs watching him at the Gare du Nord he seemed a prime suspect in the crime wave sweeping a continent wracked by financial discord. Sure enough a quick search of Boris Boillon’s briefcase turned up the contraband – 350,000 euros in mostly 500 euro notes. Customs officers across Europe call them ‘Bin ladens’ because they are the high-denomination currency beloved by terrorists. But it is not terrorists moving them around countries, continents and time zones; it is the cash strapped middle classes and a wealthy elite. Boillon, a former ambassador to Iraq and Tunisia and the holder of a Legion of Honour medal, is but one of the ‘cash commuters’ now being targetted by law enforcement across Europe. Police in France, Germany, The Netherlands, Spain, Italy, Belgium and Switzerland are investing in training dogs not to sniff out drugs but the kind of ink used in banknotes. The catalyst for this extraordinary wave of illicit money-movement is the decision by banks in Switzerland, Luxembourg, Liechtenstein and Monaco to abandon the age-old rules of secrecy governing accounts held by foreigners. 22 Industry Europe

Under pressure from the USA and the EU, these countries are warning their customers that if they donít declare their bank accounts to the taxman in the countries where they live, they will do it for them. That or issue a cheque for the amount they hold followed by the closure of their account. But a cheque is no good for individuals who would have to use it to open another account, thus flagging up to the taxman what they want to hide in the first place.

“For people who want to avoid taxes the only solution is to go to the country where their illegal account is held and take the money out in cash.” So people who wouldn’t dream of breaking the law in any other respect are now playing a high-stakes game of chance For the authorities the stakes could hardly be higher; in France alone in 2012 an average of 300,000 euros was seized a day, EVERY DAY, in undeclared money. It was hidden in crisp packets, in the linings of suitcases, in toothpaste tubes and, in several cases, in the pockets of children used as unwitting cash ‘mules’ by their desperate parents. Legally a mximum of 10,000 euros or its equivalent in other currencies can be transported across borders in Europe without a form being filled in to report what the cash is for and where it has come from. But this, of course, is not something the cash commuters are keen to complete. “Businessmen with minimal luggage, a family group on edge, people bound for a financial capital – these are some of the things that we look for,” said Philippe Bock, secretary general

of the French solidarity trade union for customs agents. “The Boillon case in July 2013 was not exceptional. We routinely find more than 350,000 euros. Every month it increases because of the euro crisis.”

Cash cache “For people who want to avoid taxes the only solution is to go to the country where their illegal account is held and take the money out in cash,” said Mathieu Delahousse, co-author of a new book out in France this week called ‘Cash Cache’, about the phenomenon. Early in 2013 Swiss agents stopped a man trying to drive into France with bearer bonds – they function virtually as cash because the owners are anonymous – worth 100 million euros. And in February sleuths aboard the Zurich-Paris express stopped a smuggler with 1.8 million euros wrapped in bandages around his leg. But despite the colossal amounts seized, they amount continent-wide to just five percent of what the customs and police say is moving around from black bank accounts to mattresses and hidey holes in family homes. In Germany, on the winding back roads leading into Luxembourg and Switzerland, officials set up flying squads of officers that swoop on suspect cars. They have discovered huge amounts of cash, both entering and leaving the Duchy, hidden in tyre inner tubes, in the window washer reservoir and even in air filters. Juergen Holtzmann, a Munich security specialist, said: “There is a mood abroad among many citizens of the EU that they feel their pockets have been picked by the superstate too deeply for too long. They have had enough. They have nest eggs hidden away and they want to protect them. “What they do is against the law. But there is more sympathy abroad for the little guy trying to get his money home than there is for an overarching state coming down upon him.” n



France Ian Sparks reports from Paris on more trouble in France’s declining industries.


new spate of ‘boss-nappings’ has erupted in France as militant workers react to soaring numbers of lay-offs and the highest level of unemployment in the nation’s history. Just over 10,200 more people were listed as jobless in December last year, breaking President Francois Hollande’s promise that unemployment would fall by the end of 2013 and bringing France’s jobless total to more than 3.3 million. The phenomenon of boss-napping, when angry staff take their managers hostage, had subsided since its peak in 2009. But the practice has now resurfaced as workers around the country face mounting redundancies. The latest incident took place in January at the La Montagne newspaper group in central France, when disgruntled employees locked two senior executives in an office after tempers flared during a meeting over redundancy pay for 78 print workers facing the sack. Company head Gilles Cremillieux and human resources chief Jerome Riviere later said they were ‘not harmed’ during their 24 hours in captivity, and talks resumed the following day. Earlier in January, workers at a Goodyear tyre factory in northern France held two executives captive for an entire week to protest the closure of the plant. There were eight similar boss-nappings in 2009, with executives being locked in offices, a conference room, the works canteen and even overnight in the company lavatories. A French government spokesman said after the latest hostage taking: “We deplore all acts of violence or situations of blackmail. What works is dialogue.”

Minister for subsidies The surge in boss-nappings also comes as Industry Minister Arnaud Montebourg clamours for the right to give more state subsidies to France’s ailing industrial

sector – launching a scathing attack on EU rules that restrict it. In a tirade aimed at European competition commissioner Joaquin Almunia, he said: “While our global industrial competitors get billions in subsidies, our bureaucracy is led by political leaders. Mr Almunia is a political leader who has not understood that the world has changed. It is like Rome surrounded by the barbarians. We all await the fall of Rome. It’s not funny.” He described a rule that requires all state subsidies above 200,000 euros to be notified to the commission as ‘obsoletism, autism, imprisonment and fundamentalism’ and said fellow EU members Germany and the UK were also calling for a revision of controls on state aid. In recent months, he has launched a drive to regenerate French industry under the banner ‘Made in France’ While the US, China and Japan were pouring billions of dollars into helping their industries, the EU was hindering companies and preventing them from merging to create ‘European champions’, Mr Montebourg said. He also released a letter to Mr Almunia which he sent in January, which added: “Unfair globalisation justifies an innovative and revised interpretation by you and your office of rules which have been invented by the commission, not decreed by EU treaties. This is how the commission is working to weaken our industry. Do you sincerely believe that this is reasonable?” Mr Montebourg also published the reply he received from Mr Alumnia, which read: “I deplore the caricature you make of the state aid control policy. Far from being a radical doctrine, this policy has proved to be useful and flexible. Some politicians still fail to understand that the European economy cannot be reinvigorated in a defensive way through protectionism.

Europe will not find its place in globalisation by launching a subsidy race with the rest of the world,” Mr Alumnia told the minister. Mr Montebourg has a record of public spats with EU chiefs and leading industrialists. Last June he branded EU Commission President José Manuel Barroso ‘the fuel’ of the far-right National Front and said Brussels ‘does not respond to any popular aspirations in the areas of industry, the economy and budgets’. He called Maurice Taylor, the chief executive of US tyremaker Titan International, ‘extremist and insulting’ after Mr Taylor said he would not buy a French factory because the workers were ‘lazy’. The minister has also made himself the face of his own ‘Made in France’ campaign – posing for the publicity photos sporting a Breton shirt and holding a Moulinex food processor – to urge consumers to buy French-made goods, even if they are not cheaper, in a bid to keep their own countrymen in work. He even suggested President Hollande should have used a French-made scooter for his secret late night visits to his mistress, the actress Julie Gayet. Asked by the LCI television news whether he would have advised Mr Hollande to swap his Italian scooter for a Peugeot one, Arnaud Montebourg agreed the government should make more effort to avoid buying foreign brands. He said: “Firms are chosen by putting out invitations to tender and there was already a controversial incident when the post office bought Taiwanese scooters instead of ones made in France. I’ve always tried to remind public sector bodies to be patriotic. “It wasn’t Mr Hollande who bought the scooter, it was a state-owned scooter, but it’s something that needs looking at. Every day we’re keeping an eye on this kind of thing.” n Industry Europe 23


Bronswerk’s ultra-high efficiency, ultra-low noise fan, the Whizz-Wheel, was the answer to the need for ultra-compact compressor coolers on an offshore platform in the Gulf of Mexico.

Conventional design


ir-cooled cooling has advantages compared to cooling with water. More and more fresh water cooling (rivers, lakes and below ground) is disallowed because of its potential thermal and biopollution. Sea and ocean water requires the use of expensive materials because of its high corrosion potential. Air-cooled cooling also has one main disadvantage: it requires a lot of plot space so that on offshore rigs space might become a particularly big problem. Here is the story of how to design ultra compact air-cooled coolers that fulfil the stringent space requirements on platforms.

The project The Litoral-A field is a big oil and gas field in the Gulf of Mexico. Since the accident in the deep part of the Gulf of Mexico several

years ago, Petroleos Mexicanos (Pemex) has been developing fields in the shallow part of the Gulf. The Litoral-A field is in the Bay of Campeche where the local water depth is 26 metres. In order to boost the current oil and gas production, the platform design is aimed at improving the flexibility of the Litoral Processing Centre and reduce flare gas using high pressure compression. The platform is to be capable of increasing the gas pressure to 85 bar.

The challenge The compressors for this platform were designed and supplied by a Houston-based compressor supplier, Dresser Rand in the USA. Air-cooled coolers were to be used for cooling. Bronswerk and Dresser Rand Houston (D-R) has supplied exciting combinations of

High efficiency (with Whizz-Wheel®) design

high pressure compressors and coolers in various offshore projects. The Litoral-A Project required a design combining safe and reliable cooling in a limited space. D-R approached Bronswerk at an early stage with the challenge of the project to find a solution for this situation and produce a design which would permit safe and reliable cooling in a tight space. Each of the compressors needs gas coolers for a 1st stage and a 2nd stage, a recycle gas cooler and an oil cooler. For this project Bronswerk gave D-R an initial indication of the size of the coolers based on the gas composition, flow, temperature and pressure. It soon became evident that space, weight and absorbed fan power were critical points in the overall module designs. The disadvantage of conventional air-cooled cooling now became apparent: there was not enough space for common air-cooled coolers.


Conventional #1 (without special considerations)

Plot space area


+/- 700m2

Absorbed power


+/- 330kW

Sound pressure level

85dB(a) @ 1m

>> 85dB(a) @ 1m

Table 1: Location/project contraints

Several conventional designs • Increase the number of rows of finned tubes in combination with a conventional *) fan. Using more rows while maintaining the external pressure drop of the finned tubes within an acceptable level will reduce the flow of cooling air. Leading to higher outlet temperatures of the air and a lower temperature difference between process flow and air. It became apparent that it would be impossible to meet the space requirements and on top of that the absorbed power was over 30 per cent higher than permissible. Furthermore, the noise level would be unacceptably high. • Various tube diameter sizes were considered, but none suited the specifications. • To overcome the high airside pressure drop, one fan below the bundle (forced draft), and one fan above (induced draft) was looked at. No improvement in the absorbed power and noise level was obtained. And, most importantly, this produced an unreliable design due to the unpredictability of the conventional fan performance. *) “conventional fan” should be understood as the best available low noise, high efficiency axial flow fans before the Whizz-Wheel® was available.

Bronswerk’s final design On the process side no limitations or problems were encountered. Within the specified maximum tube side pressure drop, several trial designs resulted in acceptable heat transfer. The problem was to ensure that the required flow of cooling air could be “pressed” through the finned tube bundle. Smaller bundle space means higher air veloc-

Standard Header design

Compact Header design

ity and hence a higher pressure drop for a given air flow. An increased number of layers (to bring the required cooling surface area within the limited plot area) also increases the pressure drop. Consequently, the resulting pressure drop on the airside was far higher than is common in air-cooled cooler applications and higher pressure drop means higher driving power and a higher noise level. The only feasible solution to the problem would be to employ a fan which delivered an optimal volume flow and static head within the constraint of maximum permissible power (in other words: highest efficiency). Also, the noise produced by that fan should stay below the maximum permissible noise level. The ultra-high efficiency, ultra-low noise fan, the Whizz-Wheel®, was considered. This fan is capable of achieving A) a 50 per cent reduction of absorbed motor power or B) for the maximum allowable motor power produce a higher airflow in combination with a higher static pressure head. The selection of this Whizz-Wheel® fan in combination with the higher number of tube rows led to the result that all of D-R’s strict requirements regarding space, absorbed motor power and noise level could be fulfilled. This placed D-R in “pole position” to win this job.

fewer components requiring maintenance. • No self-induced vibrations from the fans to the structure.

The figures • Compared to the best (smallest) design of the coolers when fitted with conventional fans*), the final Whizz-Wheel® based design requires 40 per cent less space. • In spite of this smaller space, the consumed motor power of the coolers is 25 per cent below the maximum allowable level. • With conventional fans*) (even with the larger space) the permissible noise level was exceeded by 5dB(A). In the final Bronswerk design, the noise level is within the permissible limit. • Although the coolers have more rows of finned tubes, the total height of the coolers is reduced by 0.6 metres. • Even the weight of the coolers is 15000 kg less than with the conventional fans*) The above advantages only consider the benefits for the cooler itself. But for such challenging projects, the main benefits are not only for the smaller cooler but in the following effects for the overall project: • The ability to provide a suitable module on an existing platform without modifying the platform structure. • Maintaining the weight of the module below the maximum crane lift capacity to avoid the need for a heavier crane. • Fewer fans, so fewer E-power connection points and cables, and

Comparison The information below provides the differences between conventional design and the high-efficiency design with the Whizz-Wheel®. The images above show the actual sizes of the two different design, showcasing a clear and meaningful reduction in plot space when the Whizz-Wheel® is applied.

Conventional #2


Plot space area



Installed fan power



Sound pressure level

+/- 90dB(a) @ 1m

<85dB(a) @ 1m

Total Height



Total weight of units

141 ton

126 ton

Table 2: Comparison

Conclusion The Whizz-Wheel® design has led to several applications in which the space occupied by the coolers could be brought to allowable ultra compact dimensions. Together with the two other advantages of these fans – strongly reduced power consumption and strongly reduced noise generation, the result is that for many air-cooled coolers or condensers – specifications can be met that were unimaginable before the Whizz-Wheel®.

Other weight and space-saving solutions Previous offshore cooperation between Dresser Rand and Bronswerk resulted in the application of another special Bronswerk development: the compact header cooler. In those joint projects, seawater was the cooling fluid and for the high pressure coolers these compact headers were used. This also resulted in an impressive reduction of weight and space. The compact header design results in a circa 50 per cent n weight reduction.

GOING FOR GOLD Farmers everywhere depend on the advanced technology of Rauch fertiliser spreaders. Peter Mercer speaks to Managing Director Norbert Rauch about how the company’s investment and innovation is helping to feed the world.


this November’s Agritechnica show in Hannover the world-leading specialist in fertiliser technology Rauch won a gold medal for its revolutionary AXMAT self-adjusting fertiliser spreader. The AXMAT is the first fertiliser spreader in the world to feature fully automatic adjustment of the spreading pattern for the required working width. An online monitoring system

detects changes in the physical properties of the fertiliser granules and adjusts for these in metering and spreading; the farmer no longer needs to set the spreading pattern by manual calibration or by practical tests. Managing Director Norbert Rauch, the third generation leader of the family business, explains the significance of this technology breakthrough for the world’s farmers.

”Fertilisers are very expensive – the value of fertiliser spread per year in Germany alone is about €2.7 bn – so controlling the exact quantity required for optimum crop yield and ensuring it is spread in the most effective way is very important for farmers. ”The first step in optimising spreader performance is to control the flow rate of the fertiliser on to the spreader discs.

High-quality, perfectly fitted and durable - Deutenberg Drahttechnik! Deutenberg offers a wide variety of products, tailored specifically to our customers’ needs. Our Products include: Welded- and stainless- steel wire mesh Gabion wire mesh Technical wire production Wire cable conduits Machine safety fencing Wire baskets and cages Please contact us with any questions you might have. Our team is always happy to help. We are looking forward to hearing from you! Deutenberg Drahttechnik GmbH | Auf den Geeren 22-24 | D - 59469 Ense / Höingen Contact person: Markus Loeser (sales manager) | Tel.: +49 : 29 38 : 978 36 – 40 | E-mail: |

Modern spreaders usually have two discs that distribute the fertiliser over widths that vary from 12m to 50m. In 1999 Rauch won a gold medal at Agritechnica for its EMC electronic flow control system. By measuring the drive torque of the spreader disc EMC can precisely calculate the correct flow rate in relation to the forward speed of the machine, the quantity of fertiliser per hectare that needs to be spread and the applicable working width. The driver simply has to enter the application rate and working width and the spreading rate is set automatically within seconds. ”With AXMAT we have now taken the second step, which is to ensure that the spreading pattern – what we call the spread fan – exactly fits the required working width. The problem is that fertiliser is not a standard product – there are probably more than 6000 types of fertiliser all over the world with granules of different weights and shapes. Until now farmers have had to use charts from the fertiliser spreader manufacturer to adjust the spreader. AXMAT is the first machine in the world that can measure the spread fan as the fertiliser leaves the

discs; it then compares this data to stored information on the optimum spread fan and automatically adjusts the machine. A maintenance-free radar sensor, that was developed for us by MSO Messtechnik und Ortung GmbH, 53902 Bad Münstereifel, automatically records the expansion of the spread fan and detects any deviation from the optimum setting for the working width. ”So now Rauch can provide farmers with systems that ensure both the correct flow rate and the correct spread pattern for all that expensive fertiliser. In effect, AXMAT closes the last gap in precise fertiliser spreading automation, so optimising both the economic and environmental aspects of fertiliser application across the world.”

Trend-setting technologies Founded in 1921 in Sinzheim, near BadenBaden, Germany, to produce agricultural machinery, Rauch developed its first fertiliser spreader in 1932. Today the company employs around 380 people and produces some 16,000 machines each year, mostly fertiliser spreaders but also winter service spreaders for use by municipal authorities

to keep the roads clear in winter. Between 2011 and 2012 it increased its turnover from €69m to €75m thanks to fast-increasing demand in both the home market and in export markets such as France, UK, Poland and other Eastern European countries. In 2009 Rauch moved its production and assembly operations to a new €20m factory at the Baden Airpark site at Baden airport. ”We closed five smaller factories in the area and brought all our production departments together under one roof,” says Norbert Rauch. ”Thanks to the perfectly coordinated process flows that this made possible we have achieved even higher levels of manufacturing efficiency. In fact, we have won an award from the ILM Institute of the University of Magdeburg for being one of the most efficient agricultural factories in a competition that included tractor manufacturers, who are generally much bigger companies than we are.” In fact, over the years Rauch has won many national and international awards for its innovations in spreader technology and has registered more than 150 patents. Its key strategy of ‘innovation and investment’ shows itself in the continuous further devel-

opment of trend-setting technologies and the launch of new, innovative production series such as the AXMAT and the AXIS – M EMC at this year’s Agritechnica. ”To maintain the pace of our innovation and our leadership in the market it is vital that we keep up an intensive dialogue with farmers and agricultural professionals and scientists to make sure that we are completely up to speed on today’s and tomorrow’s market demands,” explains Mr Rauch. ”In fact, Rauch has been placed eighth in the latest DLG image ranking for innovative companies, among world-leading companies in the agricultural machinery industry such as John Deere, Fendt, Claas, Lemken, Amazone, Krone and Horsch. ”We are working in many areas of technology advance, including GPS, Isobus, new generation sensors and ever-increasing automation – all to optimise the agricultural process for both the farmer and the environment. In a phrase, it’s about getting much more output for less and less input. ”There are, after all, still so many problems to solve in agriculture, despite the huge advances that have been made. It would be a tremendous advantage, for example, if we had sensors that could accurately measure the level of essential nutrients in the soil – lime, nitrogen, potash, etc. – so that we could deliver exactly the right chemical mix. We are not there yet but we are further

advanced in the work of ever-closer integration of the spreader – or other implement – with the tractor. The aim is to develop a modular, self-propelled machine that would be effectively controlled by the implement. So when you attached a spreader, a seed drill, a sprayer or whatever to the tractor the implement would automatically transfer all the necessary information about speed, flow rate, spread pattern etc. In effect the tractor and the different implements would become one multi-functional agricultural system.”

Global markets Rauch serves markets all over the world; exports currently make up more than 65 per cent of output. The company is the market leader in Germany and has a very strong position in the UK, France and Italy, where it is marketed under the KUHN brand. In fact Rauch’s relationship with KUHN, a €1 bn global leader in farm machinery with sales points all over the world, gives it more direct access to markets in North, South America and Australia than it could otherwise enjoy. ”Eastern Canada is a particularly promising market for us,” says Norbert Rauch. ”Farmers there typically work huge areas and are technologically advanced so they buy a lot of European machines, including Rauch spreaders sold under the Kuhn brand. In contrast farmers in Eastern Europe, Russia and Ukraine are still a long

way behind the West. During decades of state control they lost their essential knowhow and now are having to re-learn even the traditional skills. The first priorities in those markets are modern machines for tillage, drilling and harvesting but the next step will be spreaders for fertilisers and we are ready to supply what they need.” A fast-growing world population means ever-increasing demand for food which can be met only by continually improving the productivity of agriculture and advancing the technology of the machines available to farmers is essential to this effort. ”Twenty or so years ago people had maybe forgotten how important agriculture was to us all,” says Mr Rauch, ”but now its image has changed completely. It is a high-tech industry which depends on innovation and investment, just as our own company does. You can get an idea of agriculture’s new image from the size of the Agritechnica show these days; it is now the biggest indoor show in the world, with displays covering 42 hectares, and this year it attracted 450,000 visitors. ”Productivity and sustainability are the goals of the industry and fertiliser spreaders are a key element in achieving both. After all, fertilisers account for more than 95 per cent of the cost to feed the crop so the technology advances that we are making at Rauch play a central role in the strategic planning n of modern farmers.”

CREATING A BRIGHTER FUTURE S.C. Elba is the Romanian market leader in the design and manufacture of advanced lighting solutions for the automotive and general lighting sectors. Philip Yorke spoke to Bogdan Cocian, the company’s business development director, about its recent investments in new technology and move into new markets.

Industry Europe 31


lba is one of Eastern Europe’s flagship companies and one that has embarked upon a programme of continuous investment to make it a lean and high-tech player in the lighting industry. The company’s investment in new plant and technology, as well as in modern business practices, make it a high-class competitor that can match the best comparable companies in Western Europe. Elba was founded over 90 years ago in Timisoara, Romania, which was the first city in Europe to have electric street lighting. To complement its wide range of lighting products for commercial, public and architectural applications, as well as for outdoor and emergency lighting, the company produced its first automotive headlights in 1952. The early success gained by Elba in this area attracted the local OEM brand, Dacia. Thereafter, Elba was able to supply them with automotive lighting parts such as headlamps and rear lamps. Another major milestone was reached in 1995 when the company was privatised and the workforce became shareholders in the new company. 32 Industry Europe

Consistent growth followed this development despite the recent recession and in September 2013 the company successfully finished a relocation to its all new state-ofthe-art manufacturing facilities located on the banks of the Bega River, in the modern Freidorf Business Park, near Timișoara City. The new plant has two major production halls which extend to more than 40.000 square metres and comprise a fully automated automotive lighting plant, a purposebuilt general lighting plant, a tooling plant and Elba’s own extensive research laboratories.

A vision becomes reality Since the company was privatised in 1995 via an EMBO (Employee & Management BuyOut), Elba has been committed to realising its vision to harness its unparalleled expertise and know-how in order to become a ‘bestin-class’ supplier of modern lighting solutions for the benefit of its customers, consumers and the environment. Elba is a pioneer not only in its modern lighting solutions, but also as a private company that has been established entirely with Romanian capital, and with a shareholder structure that is clearly focussed on a sustainable business model.

Today Elba is an iconic brand, a prime example of the benefits of EMBO privatisation and of what can be achieved with dedication and a commitment to provide the best at all levels within the company. Cocian said, “Despite the tough trading conditions of the last five years we made major steps in terms of modernisation and the implementation of new technology. We have transformed our production capabilities with a state-of-the-art manufacturing facility and have also achieved a breakthrough in the automotive sector by winning orders from two new, major automotive OEMs, through several new projects. Our export situation continues to improve also in the general lighting sector and this has been driven by our special LED lighting and energy-efficient lighting products. We are fortunate to have a very motivated and highly skilled workforce, and this is divided between our four key areas of operation: our general lighting products that include traditional lighting fixtures and special luminaires, our automotive lighting products for global OEMs, our modern tooling factory, specialized in moulds for plastic injection and our extensive research

IDI Composites Europe is the leading global formulator of thermoset composites (SMC, BMC, MMC and CIC) adapted to customer needs. IDI Composites Europe based in Vineuil (41) is a major European player in the production of raw materials for molding parts in the areas of automobile transportation, truck, train and farm equipment. With over 40 years of experience, IDI works closely with its customers prescribers and users to identify the thermoset composite answering each application. A team of engineers, R&D department work at the technical centre to optimise product performance and offer innovative products.

Thermoset Composites High Performance Choose your level of mechanical properties, we will adapt reinforcement and organic matrix for all structural parts.

SMC & BMC Low Density Weight loss guaranteed!

Customised formula for all painting processes

laboratories, where we have very strong competence in photometrical and electromechanical developments.” Cocian added, “We feel that we are in a very good position to attract new business from the mature EU countries as we are fully certified to meet all the current legislation and the strict standards imposed, including those in relation to the automotive industry. Thanks to our low overheads and stateof-the-art production facilities we can now offer very competitive prices across all our products and expect to continue to grow our existing business in both of our key sectors. In addition to our extensive product catalogue we are also able to develop tailormade products to the highest specifications. We are on a strong and steady growth curve and are currently re-branding the

company. In fact our new company logo and website will be online and available in the very near future. To sum up, we are a quality and service driven company, with highly competitive prices. We offer design and production flexibility with the benefit of also being able to offer tailor-made products from initial concept right through to pilot runs and final volume production”.

Tailor-made solutions Elba designs and produces virtually every conceivable kind of lighting from decorative and architectural products to street lights, traffic lights, and even explosion-proof, dust-proof and water-proof units. Elba’s lighting fixtures can be equipped with tubular fluorescent, halogen sources as well as the latest compact, eco-efficient

and energy efficient LED lights. All these products fulfil or exceed the latest European standards including SR EN ISO/CEI and in addition, the company’s automotive lighting plant is further certified to ISO/TS 1649. Today Elba is seeing a significant increase in the demand for its tailor-made lighting services and it is well equipped to meet this demand with its ultra-modern laboratories and testing facilities. Here design activities are backed-up by dedicated IT support in the form of specific software, such as Catia, AutoCAD, Pro-E, LucidShape and SPEOS systems. The company also provides performance simulation for different lighting alternatives, as well as modelling, prototyping, performance measurement n and validation. For further details of Elba’s innovative lighting products and services visit:

Industry Europe 35

CREATIVE ENGAGEMENT Stadco is a global tier-one supplier of ‘body-in-white’ pressings and assemblies. The company’s German operation is unique in that it is engaged exclusively by Ford of Europe to provide just-in-time assemblies in sync with Ford’s own production lines. Philip Yorke spoke to the company’s managing director, Reinhard Rupprecht, about its unique relationship with Ford and remarkable new ‘organic-based’ composites that could change the way modern vehicles are manufactured.


tadco is well known globally as a leading tier-one ‘body-in-white’ (BIW) supplier to the world’s biggest automotive OEMs. The company’s core competences include the design, production and supply of steel and aluminium stampings and the manufacture of body structures of entire BIW assemblies. This is in addition to providing a wide range of products and a broad design service facility. The company is uniquely flexible and is able to offer customers an infinite variety of all-in-one solutions that range from low-volume niche to high volume production requirements. Today Stadco offers comprehensive solutions that include product development, prototyping, design and development and specific services involving research and design. In addition the company manufactures complex stampings and provides engineering, tool procurement and the construction of complete manufacturing

facilities. Stadco’s capabilities do not end with the automotive industry but are also valued by other manufacturing sectors such as the commercial vehicle market and the aerospace industries.

Synchronised success Stadco Saarlouis in Germany is where high-performance engineering and service excellence meet. Thanks to its unique inhouse expertise the company has entered an agreement with Ford of Europe to offer step-by-step productivity, which is dovetailed to fit perfectly with Ford’s own production line activities. With its high-performance capabilities and contribution from 330 fully automatic robotic systems, the result is perfect production harmony between supplier and customer. As a system supplier of BIW components to Ford of Europe since 1998, Stadco Saarlouis has become an integral part of the Ford Industrial Supplier Park. Super-efficient

production processes, state-of-the-art manufacturing facilities and over 300 highly qualified and dedicated staff, ensure that the company’s BIW assemblies are supplied at the right time, in the right quantity and in the right quality. Stadco not only supplies components ‘just-in-time’ (JIT) but also ‘just-insequence’ (JIS) according to the customer’s specific requirements. Mr Rupprecht said, “Our exclusive manufacturing arrangement with Ford is a unique business model that provides complex body-in-white parts in perfect synchronisation with Ford’s assembly plant, which is located close to our main facility in Germany. However, we are not restricted to supply only Ford of Europe as at another plant nearby we are developing lightweight engineering products that may revolutionise passenger car manufacturing in the future. We will be able to share this revolutionary technology not only with Ford but with other

Industry Europe 37

major OEMs such as Jaguar Land Rover in the UK and GM, VW etc in Europe. Mr Rupprecht added, “This research pushes the boundaries of bionic design engineering, which we started in association with the Alfred Wegener Institute for Marine Research in Germany. The research involves the exploitation of micro-organisms like ‘Diatoms’ or ‘deep-sea sponges’ which have unique properties combining exceptional strength with highly resistant lightweight properties. These structures can be used for strengthening body pillars, for example as glass fibre inlays. In addition, the new composite can be used for modern bumper-

beam systems. This innovative concept is typical of our ability to think ‘outside the box’ and we launched the concept recently at the Frankfurt Motor Show, which generated much interest. “As a company we are committed to lowering costs and to offering optimal efficiency to our clients. This means having the capability to provide manufacturing facilities that are not only more innovative and flexible, but that can also offer significant savings compared to the in-house production facilities of the same items. This commitment to product excellence and cost-effectiveness keeps us at the forefront of our industry”.

Fast-change flexibility Stadco has developed its own quick-change production cells which enable the manufacture of components for different car types in cycle times that are tuned to the second. This exceptional efficiency requires a wide variety of special handling devices and equipment, as well as tools, weld guns and grippers which are individually designed, installed and operated for each special application. Advanced industrial robots with load capacities ranging from 20 to 400kg are utilised for handling and welding operations. The fine-tuned coordinated interaction of all the facilities involved, and the close proxim-

ity to customers, means that a maximum level of process reliability, equipment availability and productivity is achieved.

Increasing global presence Whilst Stadco Saarlouis continues to set the best example for optimal client cooperation and fulfilment, it is also leading the field in the development of innovative, sustainable lightweight materials. This not only enhances its position globally but also provides a unique product pipeline as the company continues to extend its global reach. Stadco has a major presence in the UK and it also established a technical centre in India in 2008 in order to support both its

international OEMs as well as the domestic Indian automotive manufacturers. Today the company’s Indian presence is extensive and offers a wide variety of technical services as well as BIW prototype facilities. Furthermore, it provides Asian OEMs with the possibility of complete body structures and assemblies for both passenger car and commercial vehicles. In order to stay close to its global customers, Stadco continues to establish press shops and BIW assembly facilities around the world for its leading OEMs, which include Ford, GM and n Jaguar Land Rover. For further details of Stadco’s innovative products and services visit:

BÜFA Composite Systems manufactures gelcoats, bonding pastes, fire retardant systems, special products as well as application machines for the production of GRP parts in the wind energy sector, for building and construction, automotive, rail vehicles, sanitary, tanks and pipes, leisure and marine industry. Marco Siebel spoke with Marketing and Sales Director Matthias Bode about the company’s expansion plans.

Copyright: Baslux

40 Industry Europe

Copyright: Baravia



he global market never ceases to place new and interesting requirements with continuously new material definitions. Composites, which have practically no limits to their possibilities, have become the material of choice for many applications. As a system supplier BÜFA Composite Systems offers innovative, tailor-made composite products, excellent technical service, complete solutions and equipment as well as application expertise.

BÜFA Composite Systems has invested in the further development of suitable product solutions and in gaining application know-how for many years now. As the only developer and producer of reactive resin specialities as well as processing equipment, BÜFA Composite Systems acts quickly and flexibly. Processors of reactive resins need competent and innovative suppliers for the production of components made of glass fibre

reinforced plastics (GRP) but also for unreinforced applications. The extensive range of technologies that are available from BÜFA Composite Systems means an advance in knowledge for manufacturers in the the wind energy sector, for building and construction, automotive, rail vehicles, sanitary, tanks and pipes, leisure and marine industry. The gelcoats, bonding pastes, fire retardant products, pigment pastes and special products are processed with sophisticated Copyright: Mr. Sven Glaser

Industry Europe 41

42 Industry Europe

Copyright: Baslux

but robust, user-friendly and individual machines, equipment and system solutions offered by BÜFA Tec. BÜFA Composite Systems GmbH & Co. KG is part of the BÜFA Group, and has its headquarters in Rastede, not far from the city of Bremen, north Germany. The company employs 153 people. On an area of 75,000m2 they develop and produce complete solutions for the user of composite-materials which are then sent all over the world.

High, certified standards and regular investments in occupational safety, environment protection and technology ensure that the company’s commitment to sustainability reaches customers in the form of security of supply and future-proof products. In 1883 Büsing & Fasch was founded as a chemical trading and import company for dyestuffs (chemicals and oils) and dyed woods. In 1961 BÜFA started activities in the field of reactive resins.

Matthias Bode: “Our production and distribution network covers Germany, Austria, Switzerland, the UK, Spain, Poland, Czech Republic, Scandinavia (Finland, Norway, Sweden), Benelux, France, Italiy, Turkey, Estonia, Latvia, Lithuania, Russia, Ukraine, and China. We see opportunities growing in eastern Europe, in Asia and in Africa. At our in-house R&D and technical support centre in Rastede we have more than 20 engineers working on portfolio expansion and new product development.”

Lantor in Veenendaal (NL), the global leader in flexible core solutions for the composite industry, is offering an ever expanding range of product innovations. Servicing both traditional Coremat© and Soric© markets as well as covering new application areas. Many of these products combine traditional Lantor benefits such as Weight Saving and Surface Quality improvement with additional features. In an interview with Lantor Composites Product manager mr Reinier Jansen we discuss the newest innovation of Lantor. They are working on a flexible nonwoven for heating and de-icing purposes. The focus is the Composite industry and therefore it needs to be easily laminated with both polyester and epoxy resin systems. “We add a carbon like conductive additive to the nonwoven,” says Reinier Jansen. “Once it’s laminated it retains electrical resistance, creating heat when you put electricity through it.” How did they come up with that? “We already work with conductive additives for the electrical cable industry. The different layers in high voltage cables are separated by nonconductive, semi conductive or fully conductive nonwovens.” The innovation is to use those nonwovens and make them suitable for heat generation. “And to make them compatible for composites, in which they’re impregnated with rather aggressive epoxy and polyester,” Jansen adds. “We can work both at low voltages – below 100 Volt – and high (230+ Volts). And we can reach about 2 kW/m2.” This power and variable voltages make a wide range of applications possible, like de-icing of floor plates, heating of tooling systems and curing of bonding connections of Glass Fiber Epoxy pipes, just to name a few. Sampling and availability of this product should be up to speed around march 2014. At that time Lantor will also be commercially introducing the new product at the international orientated composites show JEC in Paris (Booth #H17).

Industry Europe 43

Copyright: Bombardier Transportations

Wind energy Wind power stations’ minimum operating life-span of 20 years, added to the ever increasing dynamic mechanical loads, make fatigue behaviour the decisive design factor when selecting materials. The quality of a rotor blade is determined by the reliability of many bonded joints. Thick adhesive beads are needed to bond shells and stays and yet the material must not run off the sloped walls. BÜFA produces bonding pastes fibrereinforced or without reinforcement, with low density for bonding sandwich constructions, low-shrink formulated, flexible or even pigmented bonding pastes. A gelcoat has the task of protecting rotor blades as well as machine housings from the influence of weather such as moisture, light, temperature and impact loads. Highly flexible materials with good impact resistance are thus the materials of choice. BÜFA has a wide range of gelcoat and topcoat products in brush and spray quality. Optimal thixotropic properties prevent sagging on vertical surfaces and the reactivity of the base resins used in conjunction with the specially formulated accelerators ensure fast and good curing. The options for pigmentation are practically unlimited: several thousand formulated pigment pastes are available for colouring the complete range of gelcoats. Matthias Bode: “The BÜFA Composite Systems programme includes specialities that meet the high demands on quality for this industry: bonding pastes on a vinylester base, highly flexible low styrene emission gelcoats, and firestop products. With our strong portfolio covering the whole composite industry we are confident that we will reach our 10 per cent annual growth target for 2014, and go beyond in the years to follow.” Fibre reinforced plastics have properties that make them especially interesting for the automotive industry. BÜFA Composite Systems produces polyester based products for the user of composite materials needed for vehicles, motor hoods, door elements, trunk 44 Industry Europe

lids, wind deflectors, roof and side elements for motor homes, buses and lorries. With BÜFA´s mould making systems you are able to produce high quality moulds extremely resistant to styrene and heat, and have a high mechanical loading capacity, a permanently good degree of gloss as well as dimensional accuracy. Thanks to new BÜFA developments in materials customers are now able to produce moulds of the highest technical quality with mirror-like surfaces in just one day instead of a week.

Marine The marine industry is an important field for glass fibre reinforced plastics. Individual elements, entire decks as well as complete ship hulls for sailing- and motor yachts and power boats are made of high quality fibre reinforced plastics elements. Because they must withstand permanent sunshine, salt water and repeated surface wear, the gelcoats used must meet the highest quality standards. Characteristics such as colour accuracy, resistance to osmosis and surface gloss are the most important material attributes. Along with gelcoat and topcoat qualities on an ISO/NPG and ISO base, BÜFA

Composite Systems also has a wide range of high quality bonding pastes in their programme. These include high quality vinylester bonding pastes for bonding hulls and decks, bonding pastes for sandwich constructions such as bonding foams and balsa wood, bonding pastes for universal use such as bonding wood, metal, and fibre reinforced plastics. BÜFA Composite Systems is extremely competent when it comes to the many international regulations concerning fire protection systems. An extensive range of BÜFA-Firestop products as well as extensive know-how is available for material requirements such as ignitability, flame propagation, smoke-gas development or toxicity of fumes. BÜFA’s fire retardant systems are developed and manufactured in both Germany and the UK, according to the ISO 5660 (Cone Calorimeter) and DIN 5510 and LOI (Limited Oxygen Index) standards. Matthias Bode: “BÜFA Composite Systems is a most innovative and reliable solution provider for the composite industry: we offer our customers tailor-made systems and a technical service that is unique in its industry.” n

AN INTERNATIONAL COMPANY LOVATO Electric’s successful history started in 1922 with the industrial production of oil-break and air-break switches. Over the years its product range has grown to include a number of electromechanical and electronic components for electrical equipment, such as motor protection circuit breakers, contactors, push buttons, limit switches, soft-starters, relays, digital multimeters and power factor regulators, amongst many others.


or over 90 years, LOVATO Electric has grown and developed until today it offers over 10,000 product codes complying with the strictest international standards. Indeed, in 1992 it became one of the first companies in Italy to obtain ISO 9001 certification. “Our production consists of 26 main lines that can be grouped into five main families: motor control and protection, control and signalling, circuit protection and isolation, automation and control and energy management. In particular, our main products are motor overload protectors, modular contactors, thermic relays,

switches, disconnect switches, timers, metering devices such as network analysers and energy meters,” explained company representative Massimiliano Cacciavillani. LOVATO Electric mostly supplies industrial machinery manufacturers who work in the packaging, food and beverage and moving and lifting industries. “Over the past few years, we have managed to enter the market of electronic products for the energy sector, such as energy meters, multimeters, network analysers, power factor correctors, switching units, soft starters and so on,” added Mr Cacciavillani.

International branches and investments LOVATO Electric, together with its eight foreign branches and 82 official distributors, is the reference point for the international distribution of LOVATO Electric products in over 100 countries. LOVATO Electric’s expansion to new geographical markets started quite early; in 1979, the first foreign branch of the company was set up. Today, the Italian company has branches in Spain, the USA, Canada, Poland, the Czech Republic and Turkey. “In June, we inaugurated our new production plant in the Czech republic, a country in

46 Industry Europe

which we have been present since 1991. Moreover, in 2012 we opened a new branch in Istanbul, Turkey in order to establish a presence in a market that has many commercial links with neighbouring countries,” said Mr Cacciavillani. “We are also investing in new products. The company will launch a line of electronic control units for the parallel control of generator sets and other types of electronic relay applied to PV technologies.” Further recent investments include the launch of a line of pushbuttons and switches, the so-called Platinum line, and some energy management and monitoring software called

Synergy. Designed for monitoring and managing LOVATO Electric products and equipped with communication ports, Synergy is monitoring and energy management web-based software that allows for the monitoring and control of electrical systems in a simple and efficient way.

Geographical markets The company’s headquarters are in Gorle, in the province of Bergamo where the main product lines are manufactured. “We also work with local suppliers in the region for the assembly of some products. Over

A.C.E. srl is an Italian company founded in 1967 and located in Agrate Brianza (MB). Its highly-qualified production of industrial wire harnesses allows A.C.E. srl to co-operate with leading international and national companies. For 15 years, ACE srl is a consolidated supplier of the company LOVATO SpA, for which it produces wire harnesses for very sophisticated equipment, using special miniaturised cables for high voltage application. A.C.E. srl is ISO 9001:2008 certified and was the first Italian company in the field “Wire Harness Production” to have obtained this certification in 1993. In addition, the Certification Authorities UL and CSA certified the products manufactured by ACE for direct export to the USA and Canada. The company staff currently consists of 50 employees, continuously trained by technical and management courses, in order to support the steady growth of the human resources, real corporate assets. The strength of a team well prepared , make A.C.E. to be recognised as a company of competence for different industries such as Railway, Lifts, Renewable Energy, Lighting, Industrial Automation and many more. The materials for the construction of the various harnesses are purchased directly from the manufacturers, leading companies with which there is a close collaboration. ACE is able to assist the Technical Office of its customers in the design phase and can provide complete technical documentation. All wire harnesses are subject to a 100% electric end control before being delivered to the customer.

O.M.R: 50 YEARS OF QUALITY, FLEXIBILITY AND TECHNOLOGY IN PRECISION MECHANICS Established in 1962, O.M.R S.r.l is a company which can offer 50 years of expertise in the production, and if necessary assembly, of mechanical components of various kinds for third parties, mainly obtained through machining with deburring tool machines. Over the years the company has adapted to the needs of a diverse clientele, developing a flexible organisation which allows it to serve various industry sectors, from traditional to new technology types. In order to find a solution to any customer’s need, within the time range and at the cost demanded by the precision mechanics market, O.M.R offers its professional expertise in the field of turned small metal parts, thanks to which it is able to fulfil clients’ expectations in any given situation. O.M.R Srl has a staff of twenty five people and its headquarters, including commercial and administrative offices, is based at the Brembilla (Bergamo) production plant. O.M.R. srl Officine Meccaniche Rinaldi Via Magnavacche,11, 24012 Brembilla (BG) Tel: +39 0345-98027 E-mail:

the years, we have moved the lines that require a higher level of manpower to our Czech plant, located in the southern area of Prague. We are working to expand our production capacity, especially through investing in technologies that guarantee a higher productivity rate,” said Mr Cacciavillani. “Our suppliers play a vital role in guaranteeing the quality of our products. We work side by side to develop new technologies, improve the production process and introduce new methods to test and calibrate products. We work with many important industrial groups, such as Emerson with whom we work in Italy, India and China.” The internationalisation of LOVATO Electric started in the 1970s and, thanks to this long-sightedness, its brand is today a symbol of reliability and a high level of technical assistance to all its customers all over the world. “More than 60 per cent of our turnover derives from export. However, Italy is still a strategic market for us and we believe we have great opportunities for growth here. Abroad, the most important geographical markets are Europe and North America. However, we are also achieving satisfactory results in Russia, the Ukraine and the Middle East.”

Future growth and goals “I believe our future growth will come from the development of innovative and competitive products. We are not planning acquisitions. In over 91 years of business, LOVATO Electric has acquired invaluable know-how thanks to our investments and our desire to satisfy customers. We are going to employ this knowhow by developing many new products and promoting our brand in new effective ways at the same time so that our great solutions will be known increasingly all over the world.” n

EVVA has been a byword for security for more than 90 years. Now it is taking a major step forward with the launch of a new range of electronic access control products. CEO Stefan Ehrlich-Adam explains the new strategy to Peter Mercer.


VVA, the Austrian family-owned company that has been leading the way in lock technology since 1937, has this year opened a new chapter in its development story. Already recognised as one of Europe’s leading manufacturers of access solutions that use both mechanical and electronic systems, the company is not only launching a new range of electronic access control systems but is also bringing the development and production of the electronic elements of its products in-house. “We have had an excellent relationship for many years with our provider of electronic access control technologies but we have now decided to develop our own systems,” explains Stefan Ehrlich-Adam. “This is an 50 Industry Europe

important step for us and will enable EVVA to develop into a truly independent producer and supplier of integrated electronic access control systems. We are launching in early 2014 the first products in our new portfolio – Xesar and Airkey – and these two new technologies will be the basis for continuing innovations. Unlike mechanical locking systems, electronic systems need updating continually – we will need to enhance their functionality at least every couple of years – so we will all have to think and move faster. But we don’t find this a problem; EVVA has been a by-word for innovation in security for more than 90 years, ever since and before the company was awarded the first patent for a cylinder padlock in 1937. Since then we have filed applications for more than

200 national and international patents – you could say that innovation is part of our DNA.” Xesar, which will be available in early 2014, combines high security with convenient and uncomplicated operation. All the elements of the system – wall readers, escutcheons and cylinders – may be programmed via a tablet PC. Time profiles can be monitored and access events read out and programming and operation is especially easy. Suitable for internal or external doors and for both highsecurity and high-traffic zones, Xesar can be used in all buildings and sectors, from small businesses to public institutions and large corporate organisations. With Airkey, mobile phones will become keys. Authorised users will simply hold up

their NFC-enabled smartphone in front of the EVVA electronic cylinder which will recognise the authorisation and open the door. All access authorisations are managed centrally in the easy-to-use Airkey software, ensuring that only people with access authorisation to specific doors can open them with their mobile phone. Airkey has already been proven in a big field test carried out at the Vienna University of Technology.

Differentiating solutions From its origins as an Austrian family business EVVA has grown into one of the leading manufacturers of security technology in Europe. Its headquarters and main production site are in Vienna and it serves its customers through a total of 13 subsidiaries across the continents as well as through distributors right across the world. It currently employs some 800 people, over 450 of them in Austria. It produces both mechanical master key systems and electronic access control systems for buildings

of all kinds, from flats and houses, hotels and restaurants, schools and hospitals to office buildings, industrial premises and retail and wholesale premises. “Despite the importance to the future of the company of electronic access technology we always remember that at EVVA our roots are in mechanical systems and we will continue to work on improving these, constantly looking to differentiate our solutions,” says Mr Ehrlich-Adam. “After all, whatever the sophistication of the electronic technology we can deliver, the basic securitisation of any building still rests on mechanical protection – the control and access systems still depend on a secure lock. We continue to work on developing additional tamper-proof locking elements to make our mechanical systems more secure. We put a lot of effort into lock cylinder security – thus increasing protection against illegal entry techniques – and into key copying security – to protect against illegal key duplication. Illegal key copying, for example, is a very dif-

ferent business from 20 years ago – people these days use the newest technologies available – so we have to keep at least one step ahead.” Whether they are mechanical locking systems or electronic access systems, EVVA’s solutions are always optimised to meet the needs of specific user groups. The first step, as Stefan Ehrlich-Adam explains, is to decide which level of technology is appropriate for each customer application. “Basically we offer simpler systems for applications such as residential buildings, intermediate systems for schools, sports and leisure centres and so on and the highest level systems for airports, energy facilities and other sensitive infrastructure developments.We explain to customers the different security levels we can supply and establish which is the most appropriate for their requirements. “Our core business is the design, manufacture and supply of security systems that are suitable for master key control, that is, a system which has one key which opens eve-

Industry Europe 51

rything and lots of other keys that open only some doors. The challenge here is to design a system that offers high numbers of combinations in a complex hierarchy; it is a challenging mathematical and technological problem. For example, if you want a reversible key – one that fits the lock either way up – that severely limits the number of combinations.”

Steady growth Although EVVA exports its products worldwide it remains very much a European business, selling over 90 per cent of output in western and eastern Europe. “Our family has been making locks since the 1860s and we have grown mostly organically, taking fairly small steps along the road,” says Mr EhrlichAdam. “We have advanced by constantly bringing new products to the market and expanding our presence country by country,

often by taking over our distributors and turning them into subsidiaries that can deliver products and services locally. But despite our conservative approach we have been able to grow substantially the size of the business in the last years and we are beginning to grow in more distant markets overseas.” EVVA has been sensitive to the issue of environmental protection for many years. In fact, the company recently won an award for its expertise in climate protection and energy efficiency from klima:aktiv, the Austrian Ministry for the Environment’s climate protection initiative. A programme to upgrade all lighting fittings with energyefficient lights begun in 2009 resulted in a reduction of 40 per cent in energy consumption at the Vienna production plant. “We have now taken a big step forward from this and installed a large photovoltaic

generating system that provides our basic energy requirements all year long,” says Stefan Ehrlich-Adam. “We continue to take a leading role in environmental protection projects with the city of Vienna and we are currently working on a CSR report. We are learning to look at environmental issues in a new way so that we can move forward with more profound initiatives. One of our goals, for example, is to develop an oil-free production facility. “Overall EVVA will continue along the path that we have set out on this year, developing electronic access solutions that are sophisticated yet easy-to-use and supporting our customers with more effective remote services. We will do what EVVA has always done – introduce new, even disruptive, ideas into what has always been a very n traditional industry.”

Industry Europe 53

MAKING CONNECTIONS Denmark’s GN Netcom is part of the GN Store Nord group, supplying headsets and other equipment under the Jabra brand. Industry Europe looks at the latest from the company.


hile GN Netcom prides itself on its ever-increasing business on the office side of its operation, it is also seeing significant growth in its mobile products. A number of exciting products are being launched in response to growing trends in both consumer and professional items – and more are on the way. “We are starting to really address these trends and, as a result, I think these new products will drive growth for us,” says a company spokesperson. “On the consumer side, these are mobile and communication products in the areas of music and fitness. Also, more and more people are trying to be more flexible and to have the option of working in different locations. They therefore want products that will enable them to do so.”

A global operation GN Store Nord’s history goes back to 1869 when the Great Northern Telegraph Company was founded. Initially functioning as a telegraph company, it today focuses on headsets, through GN Netcom, and hearing instruments and audiological diagnostics equipment, through GN ReSound. GN headsets are marketed globally under the Jabra brand whereas GN’s hearing instruments are marketed under the ReSound, Beltone and Interton brands. All products are largely manufactured in China. The total workforce comprises around 4100 employees of which approximately 900 are in Denmark. The group’s headquarters are in Ballerup, just outside Copenhagen. It sells its products worldwide and is seeing particularly strong growth in Asia.

Streaming sound One of the big developments for GN Netcom in the areas of music and sports is that technology has moved much further in supporting music streaming. And as demand has grown and technology improved so the company has developed more complementary consumer products. “One product is the Jabra Halo and another is the Jabra Clipper,” explains the company spokesperson. “Also, for music and sport, 54 Industry Europe

Industry Europe 55

we have developed the Jabra Sport, which is ideal for running or riding a bike.” The Jabra Halo connects easily to a mobile phone through Bluetooth and enables the user to stream music and to take calls wirelessly. A corded option can be used if the player of choice doesn’t support Bluetooth stereo/A2DP. The Jabra Clipper gives the wearer wireless stereo music and calls in one small Bluetooth clip. Its in-ear headphones block external noise, which enhances its clear, vibrant music and calling quality. It also automatically switches between music and incoming calls to the phone. “These are not the first wireless music or stereo products we have launched but streaming music has now really taken off. A lot of things have happened in wireless streaming of music content, which have been triggers. These have included Apple’s support on the iPhone and the development of the smart phone for streaming.” This year (2013) the Jabra Mobile division strengthened its portfolio by launching additional models of successful products. The distinct Jabra headsets, Jabra Revo Wireless and Jabra Vox, were launched to

target more preferences and users. With these launches, all of Jabra’s headsets that are targeting the attractive fast-growing segment where voice communication and music are integrating are available in both black and white to match the standard colours of smartphones. Meanwhile the popular Jabra Sport was launched in a Wireless+ edition with enhanced wireless performance and new innovative features. It offers users more flexibility with an adjustable behind-the-head cord and four sizes of ear gels to improve sound experience. All Jabra Sport products come with special features when used with the Endomondo Sports Tracker app, which is offered as a free download with Jabra Sport products.

Unified communication Another area of continued success for GN Netcom is unified communication. Today office communication takes place via different devices and media types. These include telephone landlines, mobile phones, video conferencing, email and soft phones – and employees can feel stressed and overwhelmed trying to juggle all the different channels and still work effectively.

Unified communication brings together all these devices and interfaces into one single integrated application. It makes it easier for people to connect, communicate and work together. The result is more productive employees and smoother interactions. This is another big growth area for GN Netcom and will continue to be so. It also sees the convergence of professional and mobile products, as people increasingly work in different places.

Looking ahead The office products side of the business continues to expand as well. Products such as the Jabra Speak 10, a small speakerphone that offers a hands-free solution for the office, for example, are proving particularly successful. “I think the overall shape of the company will remain the same for the next couple of years but hopefully we will have gained a bigger market share with these new products. We are still focused very much on our professional users, developing wireless products for call centres, but I do believe that expansion over the next years will come in these areas of sport and music for the consumer market and in unified communication for the office market.” n

Industry Europe 57

HEARING THE DIFFERENCE Part of the GN group, GN Otometrics is known for its innovative solutions for all types of ear-related diagnostics and as the largest global supplier of computerised audiology and hearing-instrument fitting equipment. Abigail Saltmarsh finds out more.

58 Industry Europe


Otometrics already has a reputation as a specialist in the field of diagnostic and screening equipment for hearing and balance related issues. Soren Holst, president of the company, and senior vice-president of the GN group, of which the company is part, says this reputation is only set to grow, along with product sales and the size of the company, as demand for its innovations just increases. “We are a global player in the industry, with more than 50 years’ experience and a worldwide network of customers using our products,” he explains. “We have already increased the size of the company significantly, and, as a result, have had to move to a larger space in

Copenhagen. We are growing at double-digit rates and we expect this to continue for the foreseeable future.”

A wide range of products GN Otometrics is a subsidiary of the Denmark-based GN ReSound, a leading international manufacturer of advanced hearing healthcare solutions. GN Otometrics, which designs and supplies a spectrum of earrelated diagnostics and computerised audiology and hearing-instrument fitting equipment, markets its products under the brand names of Madsen, Aurical, Hortmann and ICS. “We have a broad range of products, everything from when the clinician first screens

a newborn baby within 48 hours of its birth through to the fitting of equipment if it is required,” says Mr Holst. “Our products are used by clinicians in more than 70 countries across the world.”

ICS Impulse Keeping one step ahead of the competition is vital in this sector, he goes on, and making technological advances is essential. As such, GN Otometrics has a continuous focus on product development and research. “Over the past decade, we have been working with a research team in Sydney and have developed a whole body of scientific material and products based on a new way

Industry Europe 59

of diagnosing people with balance problems,” he explains. “From this, we have jointly developed a product, ICS Impulse.” ICS Impulse is the world’s first video head impulse testing device to combine high levels of accuracy with unrivalled patient comfort. It provides precise data based on real life, high frequency stimuli. It also detects more abnormalities than visual observation and reduces false negatives.

Improved Aurical The response to the ICS Impulse has been overwhelming, he says. Doctors and other professionals have responded with nothing but positive feedback since its launch. Another innovation offered by the company is its advanced Aurical equipment. This has set the industry standard for hearing aid fitting equipment. The system interfaces seamlessly with NOAH, the industry’s fitting and programming software platform. Portable and lightweight, it handles virtually every audiological function necessary in a hearing clinic. “For the past 15 years, we have been adding to and improving Aurical, which 60 Industry Europe

was the first fully computer-based fitting system. In recent years we have been introducing replacement modules for the original equipment. It is a fantastic clinical device that has been very well received. Indeed, the largest clinic in the world placed an order for hundreds before it was even launched!”

State of the art GN Otometrics outsources production of its components but carries out final assembly, quality control and calibration in Copenhagen. Its reach is global and it expects to see worldwide growth. “We are seeing our highest growth rates in places such as the BRIC countries,” admits Mr Holst. “But we expect our business to increase in all the markets in which we have a presence. Our emphasis on innovation will continue. We have a reputation for our achievements and are extremely positive about the future, which will see us continuing to launch new products and to replace our existing platform with ever more n accurate pieces of equipment.”

Industry Europe 61

LEADERS IN BOILER TECHNOLOGY With over 150 years’ experience in steam generation and burner technology, Ansaldo Caldaie SpA is today the largest Italian original technology boiler manufacturer. Industry Europe speaks to its MD, Ms Barbara Lefebvre, about the company’s current offer and future plans. Barbara Rossi reports.


nsaldo Caldaie has an impressive track record of over 1000 installed units in more than 50 countries worldwide and offers the full range of steam generator technologies: coal, oil and gas fired utility boilers; heat recovery steam generators (HRSG) for combined cycle power plants; biomass and waste-to-energy (WTE) boilers; low NOx firing systems; and rehabilitation, fuel conversion and after-sale services for existing boilers. Services for existing boilers are not limited to the models it produces itself. The company, in fact, also offers its services, such as retrofitting, for existing boilers of other makers.

Since 2001 Ansaldo Caldaie (Boilers) SpA, which was founded as Ansaldo in 1853, has been part of the Sofinter Group, which thanks to Ansaldo and two of its other companies, Macchi and Itea, offers a fully comprehensive range of utility and industrial boilers as well as combustion technologies. In fact, while Ansaldo Caldaie specialises in the largest utility boilers and Macchi is a leader in industrial boilers, Itea has developed flameless combustion technology for multi-use (both for industrial and utility plants). The technology developed by Itea is extremely sophisticated, using oxygen instead of air for

combustion purposes, with the process taking place in a pressurised reactor. This really represents the next generation in combustion, the answer for the future, when carbon capture will increasingly be strictly applied. The technology being developed is at the cutting edge in the sector.

Technology milestones Significant technology milestones in Ansaldo Caldaie’s history include the first supercritical coal fired boiler, at La Spezia in Italy, which has operated since the 1960s. This contributed to the continuing drive for increased efficiency of power plants, operating at increasingly higher steam temperatures and pressures, in parallel with the development of technology for available pressure part raw materials.

Today the most recently built plant of this type, 3 units with 660 MW output, operating at ‘ultra supercritical’ steam conditions, is at Torrevaldaliga Nord, in the centre of Italy. These units operate at very high plant efficiency, burning internationally traded coals, and have been operating successfully for more than three years at one of the cleanest power stations in Europe from an emissions perspective. “All our boilers today, whether firing coal, oil, gas or other fuels, are highly efficient and offer high performance with low emission levels,” says Barbara Lefebvre. “For 30 years we have been the world leading supplier of supercritical oil/ gas fired utility boilers. I believe that our success owes a lot to our flexibility and adaptability,

which have allowed us to survive and thrive over the years, unlike some of our competitors. Also we place enormous importance on research and development. We have a fully owned subsidiary, Centro Combustione Ambiente (CCA), which conducts combustion research from its 10,000m2 site, equipped with experimental plants and laboratories for burner testing, as well as chemical and electro-instrumental laboratories. The facility also has a 50MW test boiler allowing full-scale tests of utility boiler burners. The CCA is actually used by other companies in the market, including our competitors, for the testing of their products. And it is not only used for testing our kind of products, but a wider range. Even gas turbines burners have been tested here.”

Industry Europe 63

Biomass co-firing and other fuels In terms of new products the company has developed new combustion technology for retrofitting existing coal plants with biomass co-firing. It has also produced a new burner, of special significance for the Indian market, where coal with high ash content is used. This burner is optimal for this kind of coal because of its robustness and it has already been successfully installed at two plants in the country. Ansaldo Caldaie has also worked in a more niche area, which is that of lignite firing, a notoriously difficult fuel. Technology for this has been developed through work with some partners, so that the company has been able to enter this niche sector.

Investment decisions ensure competitive market positioning “Our operational headquarters are situated in Gallarate, near Milan, but our production site is based in Gioia del Colle, in the Puglia region of south-eastern Italy,” explains Ms Lefebvre. “Specifically the location of our factory is quite strategic, about 40km from the ports of Bari and Taranto, between the Ionian and the Adriatic Sea. This site is one of the largest boiler factories in Europe, and is equipped with the most advanced manu-

facturing facilities. I would like to stress the fact that while most of our competitors tend to delocalise production outside Europe, we have maintained our manufacturing at Gioia del Colle. We also own a subsidiary in India, headquartered in Chennai, and with a production plant in Trichy (Tamil Nadu), which practically replicates the Italian production range. At group level we also have another Italian plant, near Gallarate, and a factory in Romania. We source HRSG from Romania, while the second Italian factory mainly deals with industrial boilers. “We hold all relevant certifications with regard to quality, safety and environmental standards, at both our Italian and Indian facilities. Combined with this, we have invested in upgrading our boiler design tools, and expanding global procurement infrastructure. This enables us to remain competitive in today’s market.”

Egypt – market leading share Ansaldo Caldaie SpA also has a subsidiary in Egypt, where the company is the market leader in its sector. More recently it has been awarded a contract for the supply and construction of a 650 MW gas/ oil fired boiler for the Suez thermal power plant, following on from a contract for the supply and construction of Heat Recovery

Steam Generators (HRSGs) for the Banha Combined Cycle plant and from Abu Qir contract 2x650 MW oil/gas fired units now in commercial operation. The Egyptian subsidiary was set up to supply an after sales service, as well as project execution, to customers based there, so as to be able to assist them in the best possible way. This local service also supports the company’s global procurement infrastructure, with a presence in Egypt (from which it takes care of North Africa and the Middle East), China (for South-East Asia), Italy (for Europe) and India (for India itself). According to the geographical market supplied, Ansaldo Caldaie sells its products to public utilities, independent power producers (IPPs) or EPCs (or in consortium with EPCs).

Looking to the future “Geographically Egypt and India are prime markets for us and Italy and Europe are definitely key areas, says Barbara Lefebvre. “The Middle East is also important, followed by South America. I would say that future expansion targets will be South East Asia and the USA, where we want to significantly increase our presence. I expect our future growth to follow an organic path, but it will also involve strategic partnerships.

Growth will take place through expansion of our product and market base, accompanied by sound internal project execution capabilities. Our distinguishing features of on-time deliveries and customer satisfaction will help us in this endeavour as well. Our suppliers also have an important role to play in this. We have a very sound and reliable supplier base, which is extremely important to us, as our success relies on suppliers’ commitment to work with us. I expect our greatest growth to come from HRSG, because of the impact of shale gas in the energy sector and n the rethinking attached to it.”

A Heat Exchange engineering company, formerly known as OTAM, founded in 1959 and focused on specific customer needs. Design and manufacturing of gas-to-gas and gas-to-liquid heat-exchangers. 54 years long experience in engineering and manufacturing of these equipments. More than 15.000 heat exchange units installed all over the world and in the most demanding operation conditions; a wide diffusion guaranteed by our productʼs reliability consequent to the attention that is paid in each stage of planning and execution. Dedication to Quality, from the analysis of specific needs to the design, from the production to the testing stage and to after-sales service, is demonstrated by the certification, since 1996, of the Quality Systems ISO 9001 as well as many other certifications, such as the “H” module according to the PED directive, the “U” Stamp ASME or ADMK HPO. The are many applications for our heat-exchangers: in industrial drying process, in waste incineration plant, in boilers, in pollution control and abatement systems, in cogeneration systems and in power plants, in oil & gas, in chemical industry and in industrial refrigeration.

UNITERM, Srl | Via Cilea, 29 . 20093 Cologno Monzese (MI), Italy Tel. +39 02 2542948 | Fax +39 02 2538931 | E-mail: |

High-tech and know how at industry’s service.

New Componit is an Italian company with 25 years experience on high temperature solutions. We design, produce and install expansion joints, insulating blankets, safety shields. We use solution based on fabric, coated fabric, rubber, plastic material, elastomer. Expansion joints and insulation pillows are key components in power production and industrial processes. Each solution is customized around customer’s needs, developed with the support of best supplier, latest technology, highest quality materials.

THE WINNING STRATEGY IS DIVERSIFICATION Italy’s Renco SpA has certainly diversified, with activities ranging from oil & gas and construction to asset management and other services. This is the secret of its success, as its current president, Giovanni Gasparini, explains to Industry Europe. Barbara Rossi reports.

66 Industry Europe


enco SpA is headquartered in Pesaro, central Italy. Here the company was set up as a design and engineering organisation for the oil and gas sector in 1979 by Mr Rinaldo Gasparini, father of the current president. The company grew over the years, diversifying its activity to also include materials supply and construction services. In the 1990s, diversification started on a geographical basis as well, and Renco began building residential facilities in Kazakhstan and Russia. A lot of the building stock was not sold, but rented out and managed by the company itself. Renco, whose most recent turnover was €210 million and which employs 4000 worldwide, can boast of having completed 1000 projects globally, in over 50 countries, as well as having 16 subsidiary companies in 10 countries. It regards safety, quality and on-time performance as being the pillars of its activity.

Currently Renco is organised into four divisions: industrial plants, infrastructure, services and asset management. The industrial plants division deals with turnkey EPC contracting services, as well as with installation only, for upstream oil and gas plants, gas compression and storage systems, and power production and distribution systems (especially in terms of small to medium size generating stations). The division also supplies services to the renewable energy industry: for wind farms, photovoltaic systems and hydroelectric facilities. The service division deals with supplying and managing technical personnel to the oil and gas and energy sector. It offers consultancy services, plant management, staff training, alongside on-site NDT and safety valve hot checks. “We have a database of 15,000 sector experts whom we can supply, wherever they are needed,” Mr Gasparini tells Industry Europe.

“Through our construction division we have built an array of buildings. We started in Russia and Kazakhstan, constructing buildings for renting. To start with we were building residential facilities and offices for expatriate staff working for the oil and gas sectors. We then widened the boundaries of our work, both geographically and in terms of the type of buildings. We have diversified, so as to be able to face the competition from what used to be called emerging countries. We soon understood that the way to do this was to be able to carry out projects with a strong service or technological element. The medical construction sector fits this description; hence we have completed medical centres and facilities in various locations. “Our newest division deals with asset management. This side of the business was started in 2008 as a spin-off from the construction

Industry Europe 67

division. I would say that the real estate stock that we manage is equally divided between hotels and rented flats or offices.” The main contributor to Renco’s turnover, with a 50 per cent share, is the industrial plants division, while the remainder is equally generated from the rest. The balance among the different divisions varies from year to year, depending on market demand. Recently the company has further widened the boundaries of its work, including financial services in its

68 Industry Europe

range. “Every customer and every project is unique and we tailor our offer to them,” says Mr Gasparini. “We are also increasing our service quality, focusing on internal quality procedures.” The company already holds ISO9001, ISO 14001 and OHSAS 18001 certifications.

Spending time in Mozambique “Right now our attention is focused on Mozambique, where important discoveries for the oil and gas sector have been made.

We have actually entered this market with our construction division and are building a tourist village. We plan to then expand our activity in the country to the oil and gas sector. This is in line with our expansion strategy, as we establish our presence on a particular geographical market through one of our divisions, and then follow on with one or more of the others.” As well as Mozambique, other markets where Renco already has a branch and

where it intends to expand its presence are Iraq and the United Arab Emirates (in both of these markets the company has initiated its work through the oil and gas division). Currently the geographical markets ranking in first position in terms of importance are Kazakhstan, Armenia and the Congo, followed by other countries, such as Russia, Tanzania (Zanzibar in particular), Libya, France, Poland and Colombia. The type of presence and activity carried out in these different markets varies. For instance, in Armenia Renco is active with regard to construction, in Zanzibar it has a tourist village and in the Congo it works in oil and gas.

When asked about Renco’s future, Mr Gasparini says, “In the short term I see the future of my company as unfolding in terms of organic growth, while in the medium to long term, acquisitions could appear on our horizon. Definitely the different divisions will grow in a balanced way. This is a winning model because it balances cash flow, as well as creating synergies that we can use for growth purposes. The various divisions generate and facilitate work for each other, alongside offering savings, as many overheads are shared.” Renco has many existing strategic partnerships with companies which can

offer products and services complementary to its activity (mainly for oil and gas and construction). Again partnerships are usually established in a particular market for a particular division and, once consolidated, are n developed at a global level.

Industry Europe 69

COMPLETE ENGINEERING SOLUTIONS From its beginnings as a technical services provider to its parent company, Lenzing Technik has grown into a world-wide engineering services supplier that offers a unique variety of skills and technologies. Peter Mercer speaks to Managing Director Herbert Hummer.


enzing Technik was established in 1991 as a technical services unit of Lenzing AG, the Austrian-based market leader in man-made cellulose fibres. This move brought together several operations that had supplied Lenzing AG with services such as technical planning, process engineering and plant maintenance ever since the viscose fibre producer itself was founded 75 years ago. In 1999, however, the unit was given a new identity as Lenzing Technik GmbH & Co KG and established as a separate enterprise, although it remained a fully-owned subsidiary of the Lenzing Group. Managing Director Herbert Hummer explains the transformation: “Over time the unit had built up an extensive range of 70 Industry Europe

knowledge and capabilities focused on the production of viscose fibres. So when, in the 1980s, Lenzing set up its first overseas production facility in Indonesia, all the technical services for the construction of the plant were delivered by what was to become Lenzing Technik. This was the first opening to the outside world for the unit and its success encouraged a major reorganisation of the whole company in the 1990s, as a result of which it was decided to use the knowhow of Lenzing Technik not only to serve the parent company itself but also to seek new external customers for its expertise. This was the origin of our current business model.” Lenzing AG itself operates one of only two remaining viscose fibre production plants in

Europe – there used to be more than 30 – but it also has production sites in all major markets, including the US and the Far East. Producing more than 800,000 tons of fibres per year, it supplies the global textile and nonwovens industry with high-quality, man-made cellulose fibres. Years ago, viscose fibres were regarded as a cheap substitute for cotton but today they are recognised as premium products by a wide range of industries and are valued because of their natural origins – viscose, of course, is produced by the chemical processing of the cellulose in wood. Constant innovation has enabled Lenzing to bring the 100 years old viscose technology to new heights and to minimise the environmental impact of its production

process. Today it is the undisputed leader of innovation in the man-made cellulose fibre industry; its latest development, TENCEL, is a completely new technology which will shape the cellulose fibre industry for decades to come. Lenzing’s current business units are focused not only on textile fibres (for shirts, blouses, men and women’s wear and home textiles) but also on nonwoven fibres (for hygiene and household products and cosmetics) as well as engineering services, through Lenzing Technik.

Transferable technology When Lenzing Technik first began to look for customers outside its parent group it naturally focused on other producers in the viscose fibre industry. “However, we quickly realised that much of our expertise in plant construction for viscose processing as well as in automation and filtration, for example, was easily transferable to other industries,” explains Herbert Hummer. “So today our work is divided between Lenzing AG and external customers but only about 20 per cent of the external work is for cellulose producers; So it continues to be our business plan to broaden our customer base outside the cellulose industry.” Thanks in part to a series of acquisitions over the last 13 years, including pulp engineering company Beloit, plastic pipe and tank producer OKT, and PCB specialist Leno Electronics, Lenzing Technik is nowadays able to offer a remarkably wide range of services. For the viscose and fibre industries it provides process technology, engineering and equipment as well as project management, design and engineering, manufacturing, automation and assembly; for the pulp and paper industries it offers everything from consultation and planning to mechanical construction, including the procurement and delivery of equipment. Indeed it has developed a number of patented processes, equipment and machinery specifically for pulp production. For various other industrial segments the company also undertakes industrial plant construction, mechanical construction

and sheet metal product manufacturing as well as providing systems for all types of process automation, robotic systems and mechatronic solutions, including medical, electronic and mechanical components and devices. A major area of business development is in the delivery of environmental technology where Lenzing Technik’s years of experience in collecting and treating waste gases and waste waters enables it to offer customers a wide range of solutions to both industrial and municipal problems. Current services in this field include waste air purification, waste water treatment as well as filtration and separation for raw water and process water.

New TENCEL plant One of the largest projects currently being undertaken by Lenzing Technik is for the supply of all the key technology for Lenzing AG’s new TENCEL production plant on the site of the group’s corporate headquarters in Lenzing, Upper Austria. Some €130m is being invested in this project, making it one of the largest industrial investments in Austria at the present time. When the plant is completed in mid-2014 it will produce 67,000 tons of TENCEL fibre. Currently TENCEL is manufactured at the Lenzing plants in eastern Austria, the UK and in Alabama, USA ‘TENCEL is the fibre technology of the future,” says Herbert Hummer. “The production process is simpler than traditional fibre lines, with fewer steps and lower emissions. In fact the environmental impact of the new plant will be significantly less thanks to the almost completely closed cycle of the solvent employed. The superior performance of TENCEL makes it ideal for use in high quality home textiles such as quilts and bed linen, ladies outerwear and activewear and also in sensitive applications such as wound dressings and baby wipes. It can even be used to enhance the strength of plastics or to manufacture electro-technical components. Here at Lenzing Technik we are very proud to be supplying virtually all the key technology for a strategic investment of our parent company.”

Environmental solutions Lenzing Technik’s wide range of technologies for environmental protection has been developed from its long experience at Lenzing AG’s production site; the portfolio now includes biological and chemical-physical waste gas treatment, catalytic processes, wastewater purification as well as filtration and separation for raw water and process water. In waste gas treatment the company’s latest technology is the BIO-Oxidation process. This combines chemical-physical treatment with biological treatment to decompose volatile organic hydrocarbons (VOCs) such as methanol and formaldehyde as well as hydrogen sulphide. Bacteria and fungi in the compost in the biofilter oxidise the pollutant substances and convert them to oxygen, water and CO2. “The BIO-Oxidation process is highly efficient – it can achieve contaminant degradation rates of up to 98 per cent – and has much lower operational costs than traditional chemical processes,” explains Mr Hummer. “It has many applications in the timber industry; plywood production, for example, employs a lot of glues and resins which produce VOCs that have to be treated and the same is true of the abrasives industry where particles have to compacted with adhesives to manufacture grinding discs. We are also finding customers for this innovative process in the paint and coatings industry, the food industry and in chemicals and pharmaceuticals.” In the field of waste water treatment the latest innovation from Lenzing Technik is the IM-MS anaerobic reactor, which has won several adwards. This is based on a revolutionary mixer and membrane separator design that offers a much wider range of applications than other reactors on the market. Gases, liquids and solids are separated by means of a membrane that is integrated into the reactor and the elimination of recirculating pumps substantially reduces energy consumption and running costs. “The innovative technology of this system not only delivers high degradation rates, low operating costs and very high throughput for such a compact reactor but its design Industry Europe 71

eliminates any risk of blocking or clogging,” says Herbert Hummer. “In fact, these reactors can continue in uninterrupted operation for years.” Applications for the anaerobic water treatment system include industries such as paper and pulp, fibre, food, brewing and chemical as well as starch and sugar production. Indeed the process is ideal for the treatment of any highly contaminated industrial wastewater. Lenzing Technik’s innovations in filtration and separation technology have produced the new OptiFil® automatic backwash filter. This operates in fully automated flushing cycles and achieves the highest filtration efficiency while being highly resistant to corrosive media. Its space-saving design makes it suitable for a wide range of industrial applications. “Our filtration know-how was obviously built up in the context of viscose production but we have been able to develop and modify our solutions so that they are now widely used in, for example, the chemical, food and automotive industries,” explains Mr Hummer. “In the last sector, Volkswagen is one of our major customers. Before a vehicle chassis goes into the paint shop it passes through a cleaning bath, leaving a very high volume of impurities which are filtered out using our system. Because the backwash process is automatic the solids are removed from the cleaning bath while the filter continues to operate.”

subsidiary of the Austrian company. “We originally went to China to provide engineering support to the cellulose fibre production plant that Lenzing AG set up near Nanjing in 2005,” says Mr Hummer. “Now that we are established as a stand-alone company we can offer our expertise and our services to external customers, just as we do in Europe. We are focusing on industrial services and the manufacture of mechanical apparatus and components; our target customers are typically large chemical companies operating in China who want to work with partners who can offer European standards of quality but at Chinese cost levels.” Looking to the immediate future, Herbert Hummer says that one of the most interesting areas of innovation is in the development of robotic solutions. Lenzing Technik has

acquired a lot of experience in providing tailor-made robotic systems, especially in the field of handling applications. It can provide turnkey solutions for automated pallet packing, parts assembly and automated gluing, milling and soldering. “ An innovation project for 2014 is a robotic application for the unpacking of bales and boxes. “Robots for unpacking boxes may seem like a long way from cellulose fibre processing but the guiding R&D strategy of Lenzing Technik has always been not just the development of existing products and processes but also, by drawing on ideas from within our organisation and from external sources, the creation of new products, services and, indeed, business models. Creative innovation is at the n heart of everything we do.”

New opportunities In 2010 Lenzing Technik took a major step in its international expansion with the opening of a facility in China. Lenzing Engineering & Technical Services (Nanjing) Co., Ltd was established in Nanjing as a wholly-owned Industry Europe 73

THE GREAT INNOVATOR Emerson and Renwick is a leading manufacturer of production machinery. Abigail Saltmarsh reports on its reputation for engineering excellence.

74 Industry Europe


ith 90 years of engineering excellence behind it, UK-based Emerson and Renwick has every intention of staying at the front of its game for another century, according to a company spokesperson. He says the company has developed three clear fields where it continues to push ahead to develop production machinery that is cutting edge in its technology and offers simplicity of design and reliability.

“We are known as an innovator and we have a history of developing new products,” he says. “We focus on design and research. Our technologies will keep us out in front – in all the areas we work in.”

Market growth Founded in 1918 in Lancashire, England, Emerson and Renwick has grown and developed in line with market changes.

Today it focuses on production equipment in wall coverings, heat exchangers and nanotube technology. The company is headquartered in Accrington but it also has an operation in the US as well as a service centre in Shanghai. “We see our entry into the Chinese market as a very important one,” adds the company spokesperson. “The wallcoverings industry, in particular, is extremely fast growing in China.

Industry Europe 75

The market for wallcoverings used to be 15 to 20 million rolls used each year. Within five years, that increased to 130 million and it is still a growth area.” Growth in all areas is driven by new product launches. Emerson and Renwick has, for example, developed its own machines for producing wallcoverings. “This was patented about four years ago. It is an innovative process for infinity printing and it has given us the market edge,” says the spokesperson.

Making waves In the heat exchanger market, Emerson and Renwick serves the automotive sector. Here many of the tier two manufacturers use its equipment. “Some of our most innovative equipment relates to the twin screw, which is a patented process. This is about reducing machining and labour costs, and saving material.” In these machines, the independently driven twin screws are capable of synchronised or independent rotation, offering the ability to faultlessly insert tubes at a rate of

up to five tubes per second and then transfer a complete batch of tubes for seamless, multi-fin insertion.

Teaming up “Our third market segment is even more specialised,” the company spokesperson continues. “We work continuously on nanotube and emerging technologies. In nanotube technologies, we have worked with a Finnish company on some develop-

ments. We very much see this as an area of focus for the future.” One exciting development has seen the team develop a new material that can hold liquid yet remain dry on the surface. With any number of applications, one of its major uses would be in maternity hospitals, he suggests. “One square metre of this material can hold 20 litres of water, and it still remains dry on the surface,” he says. “This is ideal for the hygiene market as it can be incinerated afterwards.”

Looking ahead The company believes that it is vital to continue to push ahead in wallcoverings, heat exchangers and nanotube technologies at the same time. “Each of these areas can be cyclical. For example, the automotive business has been through a dip but is now starting to come back again. The idea is that the market will always be strong in at least one of our areas of focus.” With plans to expand further in China, Russia and eastern Europe, Emerson and Renwick is optimistic about the future. Its spokesperson says the company will continue to push new product launches and to make a name for itself in new technologies. “The whole point of this company is research and development – and that will remain the same,” he says. “We have been here for over 90 years and will continue to n be here for another 90 years.”

Heap Dawson Limited Heap Dawson Limited is a long established and well respected engineering company who specialise in the design and manufacture of high quality industrial heat exchangers and associated equipment. Our products are supplied to both manufacturers and end users of drying machines and ovens used in the rubber, plastics, paper, textiles, HVAC and food processing industries however we have the design capability and experience to meet many other industrial process requirements.

Specialists in the Design and Manufacture of Industrial Heat Exchangers EXTENDED SURFACE HEAT EXCHANGERS ■ Carbon Steel ■ Galvanised Steel ■ Stainless Steel ■ Steel Tube - Aluminium / Copper Fins ■ Stainless Steel - Aluminium / Copper Fins

■ ■ ■ ■ ■ ■


Our main line of business is the design and manufacture of industrial heat exchangers and economisers to fully support the manufacture of drying and curing equipment for all industries.

Prompt Enquiry Response Computerised Design Facility Short Lead Times PED 97/23/EC COMPLIANT Weld Procedures to BS EN ISO 15614 Welder Approvals to BS EN 287/1


Oldham Road, Rochdale, Lancashire, OB11 1BU - Phone: +44 (0)1706 656222 - Fax: +44 (0)1706 641852 E-mail: -


THE HEART OF POLAND Suempol, a company from Bielsk Podlaski, is Poland’s most experienced smoked salmon producer and one of the major salmon producers in Europe. Its policy of “the highest quality from the manufacturer to the customer” has made the company a supplier to the Belgian Royal Court.


uempol was established in 1989 as a family business by Urszula and Edward Siecinski. Initially, the company was focused on processing prawns from Belgium and the Netherlands. Prawns were processed and then exported back to the same markets, including the Belgian Royal Court. “The company proved to be a reliable, credible and trustworthy supplier and therefore it was easier for us to introduce a new product to the market, which was smoked salmon,” says Monika SiecinskaJaworowska, the company’s president of the board.

78 Industry Europe

Such western European countries as the Netherlands, Belgium and Germany were Suempol’s first foreign markets. In 1994, the company entered the domestic market. “Currently, our product portfolio includes salmon in every possible form: cold-smoked, marinated, fresh, hot smoked. Our products are sold both under our own brand and under the private labels of various European retail chains. What distinguishes us from our competition is above all, the guarantee of consistent quality and continual work on new products,” says Ms Siecinska-Jaworowska.

Why salmon? Salmon is one of the most healthy fish species, since it contains large amounts of fatty Omega-3 acids, which are beneficial for human sight and memory, for the functioning of blood vessels, heart and brain and for the prevention of cancers and Alzheimer’s disease. This type of fish is also rich in other nutritional ingredients such as selenium, iodine, calcium and vitamins B, D and E. Food experts claim that salmon helps our hormonal balance and the proper functioning of immunological system. Eating salmon is especially beneficial for children and the elderly, and also for those who are on a diet. As protein in salmon is easily absorbed, it makes it the ideal solution for people who are conscious of healthy eating and who, at the same time, like to eat tasty meals. Since Suempol uses only natural and fresh ingredients, with no preservatives or

artificial colourings, its products are not only tasty but also healthy. Salmon is recomenended by the Professor Zbigniew Religa Foundation of Cardiac Surgery Development (Zbigniew Religa was a prominent Polish cardiac surgeon and a pioneer in human heart transplantation in Poland) and is recommended as a preventative measure for heart disease. It also has anti-sclerosis, anti-thrombosis and anti-clotting qualities.

Confidence is more important than a contract “Fresh salmon is imported mainly from Norway. We only buy the best species of fish from north Norway and Alaska, which guarantees the top grade quality of our products. The companies that supply us with raw materials are our long-time, proven suppliers who have all the relevant certificates, and are subject to regular quality audits. They include companies

© Norge Industry Europe 79

80 Industry Europe

such as Carlestam, Marpol, Frutarom Polska, Pabex, Stanwes and Wipak. The key selection of our business partners is always trust and adherence to the word. For our family it is far more important than a contract prepared by lawyers. Therefore, the long-term relationships with our partners, especially in the German market have a major impact on the company’s current high market position. Suempol has certifications including ISO 22000, ISO 9001, IFS, MSC, BIO and the Discover Great Food mark. With many years of proven experience and constant work on creating the perfect product, we guarantee repeatability of taste”, explains Ms Siecinska-Jaworowska.

New companies, new products At the moment, the Suempol Group has three factories, in Poland, Germany and France. The entire manufacturing process takes place there. “We also own the company engaged in the acquisition of Norway’s best raw materials for our factories. From year to year we creates

more new jobs, both in Poland and Europe. Further acquisitions are related to the nature of the market, which involves delivering the freshest products in the shortest possible time. Each acquisition is an opportunity to expand our manufacturing facilities and logistics optimisation. Our plant in Germany allows us to deliver our products to the markets of western Europe within 48 hours and we are fully confident that consumers receive fresh salmon of the highest quality. As for Marcel Baey, the French premium salmon producer that has recently been acquired by Suempol, the primary purpose of the purchase is to strengthen the Suempol position in the premium segment and to introduce traditional technology to other markets in Europe,” adds Ms Siecinska-Jaworowska. The group’s annual revenue is estimated as €300 million. Exports make up 80 per cent of the company’s sales, while 20 per cent comes from the local market. Vacuum packed sliced smoked salmon is Suempol’s main export product. “Earlier this year we

were able to step into new markets, including Japan and Vietnam, and to extend our range with fresh products – fillets packed in MAP. With our logistics centres, placed in the best locations in Europe, we are able to provide consumers with a fresh product. We do not rule out further acquisitions in the future, but for now we’d rather focus on strengthening our brand by improving our existing products and creating new, innovative products, which are yet not available on the market,” reveals n Ms Siecinska-Jaworowska.

Industry Europe 81



Metsa Fibre is one of Europe’s largest and most successful softwood pulp manufacturers. Philip Yorke talked to Ismo Nousiainen, the company’s senior vice-president for production, about its groundbreaking energy efficiency and unrivalled customer support services.


etsa Fibre is a division of the Metsa Group, which was founded in Finland over 120 years ago. This highly successful and diverse forestry group’s products are all sourced from renewable and sustainably grown Nordic wood and represent the highest standards in pulp refining. The Metsa Group’s main products are tissue, cooking papers, board and paper, as well as pulp and special wood products. In 2012 Metsa Group sales totalled more than €5.6 billion. With over 12,500 employees, the group is active in more than 30 countries worldwide.

Metsa Fibre is an important division of the Metsa Group and is focused on the manufacture of bleached softwood and birch pulp for the production of high-quality fine paper, tissue paper and paperboard. The company is also one of the biggest pulp manufacturers in Europe. The annual capacity of its mills is over 2.4 million tonnes of elemental chlorine-free (EFC) bleached pulp. When the pulp provided by the company’s clients is included, then the annual sales reach over 3.3 million tonnes. Metsa Fibre’s product portfolio is also the world’s largest and includes the pulps

of other leading producers. In addition, the company offers unrivalled fibre expertise, as well as specialised development work and support services, such as logistics and warehousing for its customers. Today Metsa Fibre employs almost 1000 people and in 2013 recorded sales of more than €1.3 billion.

New pulp composition In 2012 the Metsa Group confirmed its €15 million investment in the development of a revolutionary new production process at its Joutseno pulp mill in Finland. This is the world’s largest single-line pulp mill and

a state-of the-art example of a sustainable pulp manufacturing facility. Construction began in the autumn of 2012 and today the plant is fully operational utilising the new manufacturing process that involves the latest polysulphide technology. The benefits of this breakthrough technology mean that Metsa Fibre’s new pulp grades provide significant energy saving in pulp refining, increased fibre strength properties and significantly lower wood consumption. This new pulp refining process makes it possible to improve the strength of customers’ papers, boards or tissue. Furthermore,

it is possible to optimise the end product by replacing some of the softwood pulp with other raw materials, without compromising the product’s inherent properties. Metsa Fibre’s technical customer support service is always on hand to assist clients with their individual requirements and to help them to maintain their competitive edge. Mr Nousiainen said, “We are the global technology leaders in softboard pulp and we operate four world-class pulp mill facilities here in Finland. We are committed to an ongoing process of improvement and renewal, in order to continue to provide better quality

Labtium Finnish based Labtium is internationally recognized as an impartial and independent company providing laboratory and expert services for industry and research organizations. Labtium’s annual turnover in 2013 was €9.5 million.

Our factory product range includes: • Monolithic • Bricks • Ceramic fiber • Consultation and installation management • Innovative installation techniques and installation service

Calderys Finland Oy • Tiilenpolttajankuja 5 A, 01720 Vantaa, Finland Tel: +358 (0)9 854 5060 • Fax: +358 (0)9 852 1461 E-mail: • Web:

Labtium’s cluster of laboratories provides cost effective and accurate analyses, expertise and consulting services for industries involved in: forest, energy, exploration, mining, and environment. We offer a full range of high quality testing, analyzing, calibration and expert services through our 120 professionals located in six different laboratories around Finland. Our services support our customers’ in their daily decision making.

pulp and product performance. Last year we made a major investment in a new type of pulp process involving polysulfide technology, which has changed the context and versatility of softwood pulp processing. We work in close partnership with our customers to develop new products and are monitoring our environmental performance at every stage of our manufacturing processes.” Mr Nousiainen added, “We also offer exceptional fibre expertise and comprehensive customer services in close cooperation with our in-house R&D department, to help our clients stay one step ahead of the competition. Every aspect of our operations is geared to finding the best possible fibre solutions for our customers and then delivering it. Furthermore, our modern, high-

capacity production facilities play an essential role in helping us to achieve this goal. “We have many long-standing customers in Europe and have also developed good relationships with our new customers in China. However, although this is clearly a growth market for us we believe that Europe will remain our biggest customer in the future as it comes out of the recession.”

Unrivalled environmental performance Metsa Fibre is considered to be one of the best in the world when it comes to environmental performance. Every Metsa mill has its own certified chain of custody management system for wood and they are all authorised users of the coveted PEFC label. In Finland, pulp mills generate most of the

country’s renewable energy and generate no fossil-based carbon dioxide at all during normal operations. Since the Metsa Group’s major investment programme in bio-energy production at its Joutseno pulp mill in 2012, the mill has become the first carbondioxide-neutral facility in Finland. Following the success of this investment other similar development work is under way at the company’s three other mills based in Finland. It is worth noting that until recently the company’s Joutseno mill relied entirely on natural gas to fire its lime kiln, but the new eco-friendly process uses wood bark to generate gas for firing the kiln. This pioneering work is important not only because of climate issues, but also because fossil fuel prices keep rising and this new method therefore provides operational stability for the company and its clients. Today the Joutseno mill has optimised its energy self-sufficiency, which can represent the production of over 200 per cent of its daily needs. This means that the mill produces much more energy than it consumes, which in turn can be equated to the supply of enough energy to heat a town the size of Lappeenranta, Finland, or Calais, France. n For further information about Metsa Fibre’s innovative products and services visit:

FAUS: ONE STEP AHEAD FAUS Group began as a small carpentry in 1953 and soon evolved introducing new industrial activities which led the company to be a pioneer in the world of laminate flooring, wall panels and mouldings. Currently, its products are distributed worldwide. Piotr Sadowski reports for ‘Industry Europe’.

Industry Europe 87


he success of FAUS in these 60 years is the result of a culture in which innovation and success in interpreting needs and provide solutions to the market, have been and continue to be, a priority. FAUS has grown to become firmly established as a distributor of outstanding wood-based products worldwide. “We have two major manufacturing plants, one in Spain, Gandia (Valencia) and the other one in the US, Calhoun (State of Georgia),” says Gonzalo Frey, CEO of FAUS Group. “The plants have, altogether, an output capacity of 15 million square metres per year. We are also supported by 20 commercial units worldwide and employ close to 250 people across our operations.”

Outstanding in quantity – outstanding in quality The annual production level is certainly impressive and the Group ensures that appropriate levels of investment are in place to guarantee sufficient output to meet the demand. With an investment plan for the next four years worth €9 million, FAUS ensured that production (around 30 per cent of the investment), 88 Industry Europe

technology (another 30 per cent), R&D and investigations into new products (15 per cent) and optimisation of processes (close to 25 per cent) all benefited from the capital spending. “It is also important to note that we give our utmost attention to the quality of our products,” adds Mr Frey. Using raw materials of the highest quality, ensuring ongoing training of staff and employing state-of-the-art technology, integrated at all stages and processes within the company, give us a strong edge over other competitors.”

As part of its expansion strategy for the coming years, FAUS is also working on further widening the geographical range of its distribution, with South America being one of the principal targets. “In fact, we have already started cooperating with business and commercial partners in a number of South American countries, including setting up certain projects, so this is certainly a direction of further growth for the future of FAUS, as well as our expansion across Eastern Europe,” adds the Group’s CEO.

Global player

Outstanding products

FAUS Group delivers outstanding products to more than 45 different markets. With the Georgia plant, it is able to reap the benefits of selling across the United States and Canada, which together account for 20 per cent of overall global sales. This is followed by distribution to several European markets, with the key ones being the UK (generating 20 per cent of annual sales), France (10-12 per cent), Spain and Portugal (15 per cent), as well as other Western and, increasingly, Central and Eastern European markets, including Poland, Russia and Ukraine.

FAUS Group delivers unique and innovative products which provide solutions to our customer’s needs. Most of its products are lifetime guaranteed for domestic use. In the manufacturing process, its laminate flooring, wall panelling and mouldings are made with the highest quality materials such as moisture resistant HDFs, impregnated papers, wood veneers, natural leather, textiles and numerous other materials. FAUS laminated flooring resists daily use, impacts and stains like no other flooring can. The surfaces are anti-allergenic, fire

resistant, easy to clean and to maintain, and, in addition, they are suitable for underfloor heating. Their durability is guaranteed thanks to in house developed technologies, such as our Wideplank, FAUS Loc System, Sealed Edges, Water-Resistant HDF, Pressed Bevelled Edges (Joint Guard)... The products come in a wide range of designs, using different types of wood, leather, oxide or slate as raw materials guaranteeing excellent results of the finished elements. Wall panels are another flagship group of products delivered by FAUS and the Group offers one of the widest ranges on the

market. They give homes warmth, simplicity and elegance, thanks to the different types of wood used, as well as different lacquers, textures, materials combined with different widths and shapes of panels. Covering walls with panels, in addition to creating unique visual effects, is also beneficial for low maintenance, acoustic and thermal insulation, and, naturally, helps to cover any defects in the surface of the wall. In addition, covered panels are an attractive alternative to solid wood: they are usually between 50 and 70 per cent cheaper than traditional solid wood, are hypoallergenic and do not

accumulate dust mites. They also have greater resistance to discoloration caused by sunlight.

Looking forward “Our vision for the next five years is to continue consolidating the market and further strengthen logistics, increase the range of products and gain new markets,” concludes Mr Frey. “I have to stress that we want to be working in strategic alliances with other market players, as through these partnerships we can offer an even broader range of choices n to customers worldwide.” Industry Europe 89

WOODWORKING KNOW-HOW Fantoni SpA produces office furniture, MDF and chipboard as well as other panels, flooring and walls. Industry Europe looks at the Italian company’s role within the vertically integrated Fantoni Group.

90 Industry Europe


rom its raw materials to its award winning furniture, the Fantoni Group is proud of its vertically integrated operation. Since Fantoni SpA was founded in 1882, it has carefully built up its operation, integrating its production processes to create an efficient system for transforming wood from raw material to finished product. Today the group is made up of La Con SpA, Novolegno SpA, Spik Iverika Patt Srl, Flooring SA and Lesonit DD as well as Fantoni SpA,

and it produces its own resins, impregnates paper for facing its own panel products and, with its hydro-electric power plants, produces a large part of the energy it needs for its own production processes.

Building the business The group’s history goes back to 1882 when it was founded by Achille Fantoni. The company grew from a craftshop to an industrial firm in the 1920s.

“Although it was a small company Mr Fantoni started using an external designer,” said a company spokesperson. “The furniture was made in single units, defined for each project and sold as part of an interior design project. He realised that working with designers was giving added value to the furniture and his name was much better known around the market. “The company moved to Osoppo in 1963 but in 1976 there was the earthquake which

Industry Europe 91

destroyed our industry and our company. We had to rebuild the furniture industry and our business. The following year, Mr Fantoni started the production of MDF in Italy.”

Recycled wood Today Fantoni is a group of international standing, producing office furniture, partition and equipped walls, MDF and chipboard panels, melanine flooring and sound-deadening panels and walls. Owing to the quality of production and the raw materials used, all its products are extremely durable. “The ability to recycle wood is very important,” says the company spokesperson. “We treat the wood which comes in to us in a wide variety of shapes. We then recycle it ourselves,

92 Industry Europe

we clean it, take out the silicates, aluminium, glass and refine it into fibre again and then make up chipboard. This recycled wood now represents 90 per cent of our chipboard.” Fantoni’s internal consumption of its own chipboard and MDF has always been a low percentage – around one or two per cent. “Our furniture is mostly made from our raw materials but we produce a lot of MDF and chipboard and much of it goes to other manufacturers now.”

High quality office solutions Fantoni’s long-term know-how in the office furniture sector, combined with its dedication to research and technological development, mean that the designers at its Research Centre continuously come up with exciting

new product lines, materials and solutions. For example, its highly popular MultipliCeo collection has expanded to include a versatile wall-mounted storage unit with the door handle integrated into the body of the unit. The range is enhanced with the scent of Cedar of Lebanon so that it not only looks beautiful but also exudes a pleasant aroma into the office environment. The executive bench and desk which are part of the range are 50mm thick with a luxurious Cedar of Lebanon veneer. Another part of Fantoni’s office furniture offering, the 28 system, includes a range of storage units. This has recently been expanded with sliding doors in Topakustik – a sound-absorbent material that combines great aesthetic appeal with acoustic comfort.

ITALY - Feletto U. / Udire Tel. 0039 0432 570772 - Fax 0039 0432 570774

The evolution of logistical services mandates the choice of reliable suppliers. MASOTTI has a long history in transport services and we have built a strong reputation for prompt and reliable deliveries, ensuring that our clients have a competitive edge.

MASOTTI is able to offer such a high quality service because we have a policy of only using our own vehicles, training our own personnel and continually updating our motor pool. Thanks to our location, close to the Austrian and Slovenian borders, MASOTTI successfully operates in the EU and Eastern European countries.

INTERNATIONAL TRANSPORTS of CHEMICALS Meanwhile, desks from the Quaranta5 and Framework 2.0 series are now available in a height-adjustable form with a crank handle that can simply be stored in a drawer after use, for customised ergonomics.

Vertical integration The vertical integration of the Fantoni Group began about 25 years ago to take care of the production of energy, glue, chipboard, MDF and paper etc for its own furniture.” “We believe this is a way to give value within our structure so that we better know

the limits and techniques on different steps of the chain. It gives us expertise across the whole production chain.” This philosophy is also evident in the fact that the Fantoni Group produces its own electricity, with its own thermal power and hydroelectric power stations. The latter, spread throughout the Friuli region, enable the company to meet, well in advance, the requirements of the Kyoto treaty relating to the use of renewable and clean sources of energy. One of the cogeneration thermal power stations is based at the Fantoni headquar-

ters in Osoppo. The second, located at the Novolegno factory in Avellino, with its two generators and annual production of 65 million kW, satisfies a significant portion of the factory’s energy requirements. MDF cannot be made from recycled wood in the same way as chipboard can and currently Fantoni imports its raw materials for the production of MDF from countries such as Hungary, Croatia, Slovenia and Austria. n

Industry Europe 93


PROFESSIONALS Sisu Auto is a byword in Finland for heavy duty vehicles that can handle anything that their military and civilian users throw at them. Now the company is looking to new markets and specialised vehicles to secure its growth. Peter Mercer reports.

94 Industry Europe


or some time Finland’s Sisu Auto has been working on finding new markets for its heavy duty trucks beyond its traditional markets of the Finnish Army and the forest, mining and construction industries. Now a major breakthrough has come with an order from Romania: Sisu’s 10x10 truck has been chosen as a platform for a new fleet of workover rigs to be supplied by local project prime contractor UPetrom 1 Mai SA to the operator OMV Petrom. The Sisu E15TP 10x10 heavy duty truck, with its ten wheels and caterpillar engine, has already proved its exceptional off-road capabilities as a bridge launching platform for the Finnish military. The extreme mobility and durability demanded in this role make it ideal for the equally demanding conditions encountered in oil field operations, where it will have to operate in all seasons and all weathers. The technology of the rig itself – the mast, platform, hydraulics etc. – is the responsibility of the co-supplier German company KOLLER Maschinen und Anlagenbau. Ewald Stoecke, the team leader of OMV Petrom’s Workover Rigs Intervention Business Unit, says, “The Workover Rig project will have a great impact on our operations and productivity. The Sisu 10x10 platform will give the workover rigs totally new mobil-

ity, significantly increasing their operational availability. The lower maintenance cost over their expected lifetime of up to 25 years is also a major benefit to us.” The first of the new workover rig packages are scheduled to be delivered in the second half of 2014. For Sisu Auto CEO Timo Korhonen, the order is of particular importance in that it takes the company not only into a new geographical market but also into a new application. “This is really good news for Sisu – we have broken into the market for platforms for the international oil industry which until now has been pretty much dominated by US companies,” he says. “It proves that the versatility and adaptability of the products and technologies that Sisu originally developed for the extreme conditions of military use are just as effective in the very different operational uses of the civilian sector. It is also an important benchmark as we expand our offering to the export market of special vehicles.”

Engineering inspiration Timo Korhonen is not only the CEO of Sisu Auto, he is now also the owner of the whole company, following his acquisition in 2013 of the 50 per cent of the company’s shares that he did not already hold. Beginning his

working life as a ship’s engineering officer in the Finnish Navy, Mr Korhonen has formerly been R&D director at Sisu as well as working on engineering research at Wartsila Diesel; he also used to run the Sisu truck racing team, first as manager then as owner. Returning to Sisu Auto in 2006, he took over as managing director in 2010 following an MBO of the company. “My experience is focused on engineering, at Sisu, Wartsila and with my own consultancy, which has years of experience providing engineering services to the vehicle industry,” explains Mr Korhonen, “and innovative engineering will drive Sisu forward to create new, profitable business opportunities by developing and adapting our excellent range of military and civilian trucks and finding new markets for our products and our engineering services. We have a great record as a supplier of exceptionally capable vehicles in our home market but Finland is too small a country to support our future success so we are looking not only for new customers for our products in foreign markets – the order for Romania is a great example of success in this drive – but also to make our engineering services available to commercial vehicle manufacturers right around the world. We are focusing on

Industry Europe 95

the vehicle industries in the BRIC countries, for example, and we are already supporting companies in China in the design and development of their trucks.”

Heavy-duty specialists Sisu Auto has specialised in the most heavyduty and most demanding class of trucks since it was established in 1994 as the successor to Oy Suomen Autoteollisuus AB, which had been producing trucks in Finland since 1931. Its current Polar range of trucks includes a rock gravel truck and a timber truck for transporting logs as well as a multi-purpose road maintenance truck, a crane truck, a carrier equipment transport truck and a roll demountable body truck. The company’s defence division manufactures armoured off-road vehicles for military purposes and Sisu Engineering provides engineering consultancy services to customers worldwide. A key feature of the Sisu Polar range is that each truck, including its superstructure, trailer and other equipment, is designed specifically according to the customer’s requirements and is delivered as a complete product. “Truck manufacturers usually just make the chassis but Sisu supplies the customer with a complete vehicle,” explains Timo Korhonen. “Working from some 300 96 Industry Europe

base vehicles, we consult with the customer to choose the number of axles, the wheel base, engine, transmission and so on to meet exactly his needs. All the components are pre-designed but each truck is specially configured for the customer.” The main component supplier of the Sisu Polar range is Daimler AG. The special strong Sisu chassis features a unique tandem drive that allows the rearmost axle to be raised and disconnected from the drive while the other option, Sisu bogie lift, replaces the tandem drive in many driving tasks – it features a lighter structure which means a larger payload and greater agility. There are three cab options in the range; in the high roof cab there is enough room to stand up inside.

Under one roof In 2012 all production of Sisu trucks was brought back in-house. This move brought to an end an arrangement to outsource assembly of two important delivery projects for the Finnish Defence Forces to Komas Oy, a specialist in sub-contracted assembly. Now all Sisu trucks are produced by the company’s own personnel at its Karjaa plant. “As sales move ahead, we need to have seamless cooperation between all depart-

ments, from design and R&D to production and marketing,” says Mr Korhonen. “We need to accelerate the production process and increase flexibility to deliver the customerspecific solutions that are our trademark. It’s much easier to do all this with all our operations under one roof; we have more control over every aspect of production, easier communications, quicker problem-solving and I believe that making the complete truck here at Karjaa helps to motivate our employees. Of course our factory is very small compared to those of our direct competitors, such as Volvo, but it’s important for us all that we have here a full vehicle production line and that complete Sisu trucks roll out of the plant ready for customers.” Sisu has also brought its domestic sales operations back in-house. “When we started to sell the Polar range we made a deal with a Finnish Mercedes importer to sell Sisu trucks alongside the German trucks but we have now brought the entire sales force back under our own control,” explains Timo Korhonen. “We see this integration of sales operations as crucial to our customisation offer. Our sales people begin the process by discussing with the customer his exact requirements and they then use our sales configurator program to establish the individual specification of the

order from the 300 base vehicles and 1500 module options. This information is then fed back to the factory where we have recently made major investments to ensure that we can produce these highly configured vehicles on what is still a serial production line. What we have to achieve is the capability and efficiency of a custom-made vehicle at not much more than the cost of a standard product. That’s why we need to coordinate and carry out the whole process here at Karjaa.” Looking to the immediate future, Mr Korhonen sees continuing opportunities in applying the experience that Sisu has built up in its military vehicle business to the civilian sector. “We intend to build upon our reputation as a developer of special vehicles for very demanding applications but we will also maintain our position in the domestic vehicle market, especially in the construction vehicle business where we have always been strong. Where we see really good opportunities for growth is in our newly developed ‘hybrid’ vehicles; that is, off-road vehicles developed from our military range that offer exceptionally high mobility and load carrying capacity. What we are offering is essentially the very high capabilities of trucks made for the army at the cost of a civilian vehicle. We are confident that it is a n winning formula.” Industry Europe 97

NEW-LOOK TRUCK FLEET Volvo Trucks is the second largest producer of heavy trucks and transport solutions within the entire truck industry, supplying the haulage industry with complete transport solutions. Since 2012 it has launched five new models, allowing it to completely renew its entire European truck range, as Industry Europe discovered.

98 Industry Europe


part of the Volvo Group – one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines – Volvo Trucks’ vehicles are sold and serviced in more than 140 countries today. Having produced its first truck in the late 1920s, Volvo now has eight wholly owned assembly plants and nine factories dedicated to this purpose, all owned by local interests. Around 95 per cent of this production capacity is located in Sweden, Belgium, Brazil and the USA. This production structure is supported by over 2300 dealerships and workshops. Overall, the company employs over 17,000 people. In addition to the trucks, its total offer includes aftermarket services and extended offers. Throughout its organisation, Volvo Trucks focuses on its core values: quality, safety and care for the environment.

Fleet overhaul In September 2012, Volvo Trucks began the process of renewing its entire European truck range. The result, eight months later, was the launch of five new and distinctive truck models – all including innovations and features that make the driver’s job far easier and more efficient. The first of the new trucks to be launched was the Volvo FH. This is packed with innovative features with the driver in mind, in order to make long-haul operations more comfortable, profitable and above all safe. This model, which comes with an extra cubic metre of space compared to the old Volvo FH, received the International Truck of the Year 2014 award. The launch of the FH was followed by the new Volvo FM, designed to be Volvo’s most versatile heavy duty truck which, amongst other innovative features, comes with two

engine alternatives and a variety of transmissions as well as increased driver comfort. The new Volvo FMX followed – a construction truck which has been developed to make driving on construction sites easier and safer thanks to its robust bumper, advanced steering and comfortable rear. As with the other models, its incorporation of the patented Volvo Dynamic Steering means that the driver can easily straighten out the truck on even the most uneven of surfaces. This dramatically reduces the risk of repetitive strain injuries. The new Volvos FE and FL models were the last two elements of this comprehensive overhaul of the entire fleet. These are easier to drive in urban environments than ever before, thanks to years of testing and product development. One of the most important priorities for the company in the development of these last two models was

Industry Europe 99

to improve the driver’s working environment by creating trucks that are both easy to drive and comfortable. Low noise levels have been optimised for city driving, and meticulous comfort tests have been carried out on uneven roads, over bumps and potholes.

‘The Epic Split’ In order to market the Volvo Dynamic Steering used in its new truck models, Volvo used some unconventional yet highly innovative B2B marketing strategies. Its YouTube commercial, ‘The Epic Split’, saw the Hollywood actor Jean-Claude Van Damme perform the splits between two moving Volvo trucks in order “to demonstrate the stability and precision” of the steering. Introduced in November 2013, the commercial has proved to be a huge online hit and the subject of thousands of conversations both on- and offline. 100 Industry Europe

Commenting on the success of this strategy, Per Nilsson, PR director for the Volvo Trucks brand, said: “The response is quite overwhelming. Sure, we were hoping for a success, but we didn’t expect it to be this big or come this fast.” In fact, since Autumn 2012 Volvo Trucks has released six entertaining films to showcase innovations in the five new trucks. This strategy itself is part of a larger shift in how Volvo Trucks is marketing its products to a wider audience. Mr Nilsson explained the rationale behind it: “Our marketing strategy is based on the insight that also in B2B, individuals make the decisions. Today’s trucks are high tech

machines, designed to ease the driver’s work, safeguard driver, load and surroundings and be as profitable as possible. But for the drivers and hauliers, it is not only factors like these that affect their choices, but also the image of the truck they are driving.”

Improved driving conditions All five new truck models offer a wide range of benefits for the driver. The cab environments have been renewed or upgraded with a focus on creating an effective, ergonomic, comfortable and safe workplace. Furthermore, the company has developed a solution to significantly improve safety on slippery winter roads or downhill gradients.

The Stretch Brake solution automatically retards the trailer and straightens up the rig on slippery downhill stretches. This was introduced in 2012 on the new Volvo FH Trucks pulling drawbar trailers and in 2013 on the new Volvo FM trucks pulling drawbar trailers. In 2014 it will also become available for the Volvo FH and FM semi-trailer rigs. “Drivers who have tested Stretch Brake came away very impressed with the system. As we now also introduce the system on tractor-semitrailer rigs even more drivers will be able to negotiate difficult downhill gradients both more simply and safely,” said Carl Johan Almqvist, Traffic and Product Safety n director at Volvo Trucks.

Industry Europe 101

SETTING A COURSE FOR THE MIDSTREAM Golar LNG is one of the world’s largest independent owners and operators of LNG carriers. Abigail Saltmarsh reports on the business.

102 Industry Europe


ith decades of experience, Golar LNG is in a strong position at the forefront of the LNG shipping industry, explains the managing director of Golar Wilhelmsen Management and chief operating officer in Golar LNG, Oistein Dahl. The company developed the world’s first floating storage and regasification unit (FSRU) projects, based on the conversion of existing LNG carriers, and today has four FSRU projects “Our strategy is to grow our fleet on a profitable basis and build upon our

industry leading position as a ‘midstream’ solutions provider,” he explains. “We will do this via operational excellence, customer relationships and our experience. “We are an experienced and professional provider of LNG shipping that places value on operating to the highest industry standards of safety, reliability and environmental performance and our success is directly linked to the service and value we deliver to our customers. Our customers and partners include some of the biggest participants in the LNG industry.”

He adds: “We are now progressing plans to grow our business further upstream via floating liquefaction (FLNG). Our strategic objective is to become an integrated midstream player in the LNG industry.”

Entering shipping Golar LNG was formed on May 10, 2001 from its predecessor, Osprey Maritime. Today it focuses on the acquisition, ownership, operation and chartering of LNG carriers and FSRUs through its subsidiaries.

Industry Europe 103

The business was originally founded in 1946 as Gotaas-Larsen Shipping Corporation. Gotaas-Larsen entered the LNG shipping business in 1970, when it ordered the LNG Carrier Hilli, which is still part of the fleet today. “Gotaas-Larsen was acquired by Osprey Maritime Limited in 1997 and then in May 2001, World Shipholding Ltd, a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family, our chairman and president, completed an acquisition of Osprey – acquiring the LNG shipping interest of Osprey,” says Mr Dahl. “World Shipholding remains our largest shareholder.”

Additional growth opportunities Golar’s FLNG strategy focuses on the development of low capital cost, rapid deployment floating facilities, utilising the

conversion of high-quality existing LNG carriers, floating technologies for the liquefaction of pipeline quality gas or associated gas (requiring minimal processing) and other innovative LNG solutions. “This strategy complements our industry leadership position in floating LNG regasification facilities development,” he says. “In an era of intense competition in the LNG industry and the high cost and long lead time of land-based LNG facilities, we believe our highly cost-efficient approaches, based on floating LNG liquefaction, storage and off-take, shipping and regasification facilities of the types now being developed by the company, will be key to substantial additional growth opportunities.”

Midstream floating solutions Since 2001, Golar has grown from a fleet of six LNG Carriers purely focused on LNG transportation, to a fleet dedicated to both LNG transportation and midstream floating solutions. Its strategy to become a midstream floating solution provider began in 2002 when

106 Industry Europe

it undertook a study with Saipem/Moss Maritime to consider the conversion of an existing LNG Carrier into a Floating Storage and Regasification Unit (FSRU) and in 2004 a similar study for the conversion into a Floating Power Generation Plant (FPGP). “In April, 2007, Golar was awarded its first firm FSRU commitments via the award of two long-term leases by Petrobras to employ Golar Winter and Golar Spirit as FSRUs.”

New vessels Today, Golar’s fleet consists of 13 vessels. Four of these vessels are dedicated to midstream floating solutions projects; the remaining nine vessels are currently under dedicated time charter or available for spot employment or conversion. Lately Golar has also been awarded two new FSRU contracts in respective Kuwait and Jordan. A shipbuilding project to add new vessels to the fleet is currently underway. “We have now received the first LNG Carrier. The newbuilding programme consist of totally 13 vessels of which 10 are carriers and 3 are

FSRUs. Scheduled for delivery between now and January 2015, all 13 160,000 to 170,000 cbm membrane type new-builds will feature the latest energy-efficient tri-fuel (gas/diesel/ fuel oil) engines, a 0.1 per cent boil off rate and 19.5 knot design speed,” says Mr Dahl. “These new-build carriers will be available n to meet a range of charter terms.”

BULK SHIPPING SPECIALISTS Compagnie Maritime Belge (CMB) has been involved in the dry bulk sector for over 25 years through its wholly-owned Belgian subsidiary Bocimar International. Industry Europe.


he dry bulk transportation sector has not had an easy ride in recent years but Belgium-based Bocimar International is determined to hold its own. According to its mother company, prospects in the industry look set to improve. Compagnie Maritime Belge believes Bocimar is ideally placed to take advantage of a revival of the freight markets. “The policy of long-term coverage for the fleet was not continued – owing to ‘low’ long term prospects – and has therefore reached a low. Bocimar’s exposure on the

spot market is consequently larger than ever, but by the same token it is also ideally placed to take advantage of a revival of the freight markets,”said a spokesman. “Moreover, the fleet is currently widely diversified with emphasis on the Handysize and Capesize types, the two segments that show a better age profile by comparison to the current new building order book. Taking into account continued scrapping, high scrapping values and a shrinking new building order book on the one hand, and

moderate optimism regarding the growth in world trade – not in the least from China – on the other, prospects are improving.

A history on the seas CMB has been involved in the dry bulk sector for over 25 years through its whollyowned subsidiary. Its history dates back to 1895 when, at the instance of the Belgian King Leopold II, British interests established CBMC in order to provide a regular shipping service to Congo. Industry Europe 107

On February 6, 1895 the passenger liner Léopoldville (I) was the first ship to leave Antwerp under the Belgian flag. Belgian shareholders headed by the Banque d’Outremer, later absorbed by the Société Générale de Belgique, took control in 1911. Until 1930, activities were limited to a shipping service to Congo, carrying passengers, cargo and mail. In 1930, CBMC

108 Industry Europe

absorbed the Belgian ship owner Lloyd Royal Belge. The company name was changed into CMB (LR) and the first additional lines to North and South America and the Far East were started. Today CMB’s shares are quoted on Euronext Brussels and are also included in the Next 150 index and the BelMid. The company is also an owner of ASL Aviation, a

joint venture with 3P Air Freighters, a private equity fund managed by Petercam. This company focuses its activities on providing aviation services in partnership with the major postal and express integrators leaders in Europe (DHL, Federal Express, La Poste). It supplements its aviation services with technical support services and leasing activities.

A reputation in dry bulk It was in 1962 that CMB entered the dry bulk trade. As the container emerged and replaced bales and pallets, CMB reorganised its liner trades. Gradually container vessels took over all traditional liner trade routes. The bulk trade division prospered and in 1975 CMB took a minority share in the tramping company Bocimar, absorbed completely in 1982. Currently Bocimar’s fleet consists mainly of Capesize and Handysize vessels. A number of vessels are owned in joint ventures with foreign shipowners such as the Wah Kwong Group (Hong Kong) and the Oak Maritime Group (Taiwan). The Bocimar Group has also historically had an extensive new building programme Bocimar business consists mainly of the transport

of dry bulk goods, especially coal, ores and grains. Over the years, it has acquired an outstanding reputation with blue chip charterers. This is reflected in its portfolio of contracts with customers from the steel and energy sectors. To optimise relations with the Japanese steel industry and Japanese charterers, Bocimar has an office in Tokyo that is operated under the name CMB Japan. The company also has offices in Singapore and New Delhi.

Taking steps So despite the challenges, Bocimar is determined to keep steaming ahead and to ride out any further storms that might be on the horizon. The company has recently concentrated on the introduction of slow steaming on both owned and chartered in vessels.

These measures not only have positive financial effects but also contribute to a decrease of the emission of greenhouse gases. In 2012, the Bocimar fleet was further expanded by a total of 12 vessels – three Handysize and nine Capesize units. At the end of 2012, therefore, the Bocimar fleet consisted of 48 fully or part-owned vessels. The outlook for 2014 and 2015 also looks promising. Bocimar expects that the forecast growth in seaborne trade mainly from iron ore will persist and have a positive effect on the dry bulk market. The expected growth of world seaborne trade of other commodities bodes well for the Handysize segment. Overall, the company is well positioned in both segments to take full advantage of improving n freight rates. Industry Europe 109


HANDLING EXPERTISE Terex-Fuchs is a global leader in the design and manufacture of advanced material handling equipment. Philip Yorke talked to Ron de Vries, the company’s general manager about its latest mobile port handling equipment and high-performance recycling ‘all-rounders’.


erex-Fuchs was founded in Ditzingen, Germany in 1888 by Johannes Fuchs, who began by producing material handling machinery for the agricultural industry. The company saw steady growth and was able to expand its operations still further in 1950 when its first excavator was ordered in large quantities by the German State Railways to support their coal-loading operations. By the early 1970s, a programme of continuous innovation and unrivalled customer service paid dividends with Fuchs securing business in over 70 export markets. This was followed by the launch of the world’s first hydraulic-lift slewing cab in 1975 and the celebration of its 20,000th Fuchs excavator. In 2002 another milestone was reached when the company joined forces with the $10 billion global Terex® Group, since when it has continued to build upon its enviable heritage and extensive range of excavators, cranes and material handlers.

Today the company employs over 350 people and is supported by more than 40 specialist dealers worldwide.

Focus on flexibility and performance For more than 125 years, Fuchs has built upon its reputation for innovative, highquality products that deliver outstanding productivity, versatility and cost-efficiency. Today the company’s patented design features make Terex Fuchs the brand of choice in its three core business activities: scrap handling, recycling and port handling machinery. With its clear-cut focus on these three market sectors the company stays one step ahead of the field and provides its customers with the competitive edge they need in today’s tough global markets. Mr de Vries said, “We rode out the global recession by making sure that we were as lean as possible and made economies wherever we could. There are positive signs that the market is recovering and we

anticipate that 2014 will continue to see an improvement in the materials handling sector. Materials handling is very much a niche business, and the scrap metal sector was the hardest hit due to the global slowdown in demand for steel. However, both our recycling and port handling divisions were more resilient to the economic crisis as they serve much more stable industries. The recycling business will always be there, and it continues to grow year on year. We therefore need to spread the risk more into the recycling and port handling business areas.” Terex-Fuchs’ port handling product portfolio will soon be enhanced by the launch of two new models: the MHL370, which will be available during the second quarter of 2014, and its big brother, the MHL390, which offers even greater reach and flexibility. “Since we acquired the Demag Cranes AG business a few years ago we now have a new route to market for our latest mobile harbour cranes, which we believe offer

Established in 1896, GTS is a leading manufacturer of electrical machines. From our headquarters in Mögglingen, Germany, we produce and develop generators as well as their electronic control units. Our long experience in the sector means that all our products have excellent performance features. We offer magnetic cranes, mobile welding equipment, hybrid vehicles and portable generators. They are manufactured according to the highest technological standards, being maintenance-free, robust, durable, technically precise and weather independent, amongst many other attributes. Our range of products and their specific industry applications today include: • Generators for Magnet Plate Applications: Our brushless double bearing generators with outputs ranging from 8–30 kVA are mainly for magnet place power supply applications on mobile cranes. They have the highest material handling efficiency owing to fast magnetisation and fast drop. • Built-In Generators for Paving Machines: Our double bearing generators with 7-40kVA output include electronic voltage regulation with the possibility of an electronic bus link and programmable low speed characteristics.

• Rescue Service and Military Technology: Our vehicle-based built-in generators are Cardan, hydraulic or belt driven. They are used for fire protection, rescue, disaster relief or other special purposes. • Maritime Applications: Owing to the highly corrosive properties of seawater, the applied materials have to meet the highest standards to guarantee a reliable performance. • Mobile Air Conditioning and Refrigeration Technics: We offer built-in generators for Cardan, hydraulic or belt driven systems inside buses or trucks. They are individually programmable through the use of frequency converters. Generators for Portable Power Generating Sets: These are for use in accordance with the portable DIN standard or as all-purpose power generating sets. They are single bearing generators and can be equipped with individual accessories such as switch cabinets, front panels, low speed automatic, bus link, electronics and so on.

Ziegelfeldstraße 62 + 65, D-73563 Mögglingen | Tel: +49 71 74 89 80 00 | Fax: +49 71 74 89 80 0 25 | eMail: |

the most diversified and flexible material handling specifications on the market,” Mr de Vries explained. The company’s state-of-the-art facilities at Bad Schonbom boasts 50,000m2 of productive floor space as well as an in-house R&D department. It also enjoys a strategically beneficial location between Frankfurt and Stuttgart, which Mr de Vries describes as unbeatable from a logistics and communications point of view. At Bad Schönborn, Terex-Fuchs adopts the highest automo-

tive standards in manufacturing processes and constantly brings in new technology to enhance their product offerings. “When it comes to extending our global reach, we are busy building our presence in South America and particularly in Brazil where we have already established a successful dealership,” Mr de Vries revealed. “Closer to home, we are increasing our number of dealers in Russia from one to six, all of which have to go through intensive training and familiarisation with our product range. We manage and

train our dealers to a very high standard and operate a dealer reward scheme whereby the best dealers are awarded three crowns, the most promising earn two crowns and the new dealers start with one crown in recognition of their initial achievements.” He added, “I believe that the future looks very positive for us as we have come through the recession leaner and more focused than ever before. We also have some very innovative and exciting new products in the pipeline for 2014.”

Resource-saving performance The company’s innovative, energy-saving measures offer economic viability, performance and resource saving that is available throughout its entire range of products. These refinements mean that Terex-Fuchs machines are already meeting today’s strict emission limits – as well as those likely to be imposed in the future. Today, Terex-Fuchs machines offer everything needed for the effective, high-volume handling of recyclables, whether on open terrain or in a covered industrial setting. When it comes to port handling, TerexFuchs also offers the most flexible, customised solutions across a wide range of mobile and stationary material handling equipment. With massive grabs and large working radius at the operative’s disposal, these impressive powerhouses are easily deployed across a diverse range of applications in port logistics operations, to provide the vital link between ship, road haulage, train, conveyor belt and n storage facility. For further information about Terex-Fuchs’ innovative range of material handling products and services visit:

MASTERS OF MOVEMENT Whether it’s handling baggage at airports or automating warehouses and postal sorting facilities, Vanderlande Industries has the solution. Peter Mercer reports on a Dutch company that is helping to speed things up all over the world.


anderlande Industries, the world-leading specialist in material handling systems for airports, warehouses, postal and postal sorting facilities, begins 2014 with a new CEO. Govert Hamers joins the company from the highly successful international shipbuilder IHC Merwede, where he has been CEO since 2005 and where he was responsible for growth in turnover from €450 million to almost one billion euros. Mr Hamers has been a member of the Supervisory Board of Vanderlande for the past two years, during which time that company too has grown significantly – in fact, Vanderlande’s turnover increased by some 30 percent from 2012 to 2013. “We are very

Director of Marketing and Communications Eric van der Linden

happy about Govert Hamers’ appointment,” said Paul Broekhuijsen, chairman of the supervisory board. “He knows the company well and has a great deal of experience in leading large, international, innovative organisations. We have every confidence that he will be able to further expand our strong position as a leading player in the market for automated material handling systems.”

Improving logistics Founded in 1949 in Veghel, Netherlands, mainly to supply conveyor systems to load agricultural produce onto ships in the nearby canal, Vanderlande is now a global operator and one of the largest and most advanced in the market, with extensive experience in many industries and in all the major regions of the world. Its core businesses provide automated material handling systems for baggage handling at airports, automation systems in warehouses and distribution centres and sorting solutions for parcel and postal facilities. Vanderlande implements material handling systems of all sizes, from local sorting depots up to the world’s largest facilities. All its systems and services focus on improving customers’ logistics processes; Vanderlande works closely with all its customers, from the initial analysis of the underlying business processes through to total life-cycle support. Its services range from logistics concept and system design, through engineering, software development, supply

chain management and manufacturing, to project management, system integration and customer services. “Over the years, we have moved from being essentially a manufacturer of machines for material handling into a high-tech systems integrator that develops a wide range of products, technologies and concepts through our own research & development and systems group,” explains the director of marketing and communications Eric van der Linden. “We still have our metal manufacturing plant in Veghel, where we make conveyors, sorters, shuttles and work-stations, but these

days we produce much of our equipment at suppliers with whom we have very close and long-standing relationships. We have a global supply network, covering Europe, the USA and Asia, and many of our major suppliers are themselves global operators supplying components to our sites in all of our worldwide areas of operation. Indeed we regard our own factory as a supplier, and it is benchmarked against all others. Assembly of our products still takes place here in Holland – often manually – followed by rigorous testing before being shipped out to the project site for installation. Throughout our primary role these days

is as a high tech systems integrator; indeed for some years now we have employed more software people than mechanical engineers. For example, we currently have some 130 people here in the Netherlands working on software for our baggage handling systems, and in Dortmund, Germany, 180 people work on developing software for warehouses, parcel and postal sorting systems. In addition to that, we also have established an office in India with 100 engineers.” Over the last few years, Vanderlande has also enhanced its reputation by developing its service concepts to customers. This business

area is growing, both in impact as well as in activities. “Traditionally, the focus was on mechanical maintenance and spare parts. It has developed towards an approach in which continuously improving business performance is the main driver. Topics like proactive maintentance, remote monitoring and diagnostics and focus on the end-to-end process performance have become paramount.” At this moment, Vanderlande operates worldwide on 800 service contracts simultaneously across all their business areas, adding value to their customers’ logistics performance.

Keeping the baggage flowing Vanderlande’s airport baggage handling systems take care of all stages of baggage transit, from check-in to the aircraft hold and from arriving flights to the reclaim carousel. Its baggage handling systems are designed, built and serviced for airports of all sizes. Belt, tub and/or track solutions combine operational effectiveness (low IR), short connection times and high conveyability, together with effective integral control of the whole baggage operation. The company claims that its proven technology, in-depth business knowledge and industry best-practices enable it to deliver the highest availability and capacity, transportation speed and reliability and the lowest costs per bag. Systems design includes redundancy, guaranteeing uptime.

One of the largest airport baggage handling projects undertaken by the company in recent years was for London Heathrow Terminal 5. Vanderlande was responsible for design, software development, manufacturing, installation, commissioning and integration of the Terminal 5 system. The system has a total of 12 transfer break lines and 132 check-in desks. Bags are automatically read, screened and sorted to their final flight build location via two Helixorter tilt-tray sorters. Early bags are stored in a Bagstore warehouse with 4000 positions, allowing individual access to each bag at any time via cranes. Late bags can be transported at high speed via Bagtrax directly to the head of the stands where the aircraft are parked. During the realisation of this project Vanderlande was part of the Terminal 5 Strategic Team and was supported by BAA’s Baggage Delivery Team. Vanderlande has been responsible for the operation and maintenance of the system, and in the meanwhile, due to the success, has been awarded for the IT supprt for the entire Heathrow airport, encompassing five different terminals.

Speeding up Nike Vanderlande is also one of the world’s top suppliers of automated logistics systems for warehouses and distribution centres, with a track record of automation of more than 1000 such facilities in recent years. It provides solutions for a wide range of indus-

tries, including food, fashion, parts, automotive, 3PL and e-commerce as well as for all kinds of parts and components. The company’s projects focus on the entire flow, from goods receiving, storage, order picking, shipping and all the related information flow. Its automated systems include warehouse management systems, warehouse control systems, order picking and fulfilment systems, automated storage and retrieval systems, sorting systems and conveyor and internal transport systems. When Nike needed to expand its distribution capacity for sports equipment at its Logistics Centre of Excellence in Laakdal (Belgium), it turned to Vanderlande. At this site, which is the heart of Nike’s distribution operations for the EMEA region, Nike operates an automated warehouse for apparel and another for footwear. In the 1990s Vanderlande built the material handling systems for these warehouses as well as two fully automated high bay warehouses for pallets and cartons. When Nike decided to build a separate distribution centre (DC) to free up capacity in its warehouses it asked Vanderlande to design and install a material handling system for the entire carton flow inside the new DC (except for the high-bay pallet warehouse). The total assortment is 25,000 SKUs and 43 million items are handled per year. The heart of the system is a 280m long loop sorter which will handle both automated inbound and outbound sorting of

cartons. The sorting capacity is 6000 items per hour. The new facility, which is built on three levels and covers 30,000m2 of floor space, distributes equipment such as footballs and sports bags to sales outlets in Europe, the Middle East and Africa.

Transferable expertise Vanderlande’s automated parcel and postal sorting systems provide solutions for hubs and depots of all sizes. With over 500 systems installed, the company focuses on providing real-time process and systems intelligence using IT solutions that enable customers to maximise the efficiency of their sorting processes and continuously improve their operations. Its systems cover the entire door-to-door process from arrival and unloading, through sortation up to loading and departure. “The challenges presented by the three main areas of our business – baggage handling and warehouse, parcel and postal automation – are very different,” says Eric van der Linden. “The logistics flow in airport baggage system is very different to a big warehouse, where very large numbers of individual units may need to be stored, picked and despatched. Warehouses that supply supermarkets, for example, may handle more than 20,000 different products; sorting and picking on that scale is a big software challenge. Nevertheless, Vanderlande is able to transfer technologies. Warehouse technologies, such as robots, have been

integrated into the baggage handling terminal at Amsterdam Schiphol Airports. “Nowadays, six robots are relieving the heavy labour of handling bags. Offering the customer efficiency, reliability and ergonomics.” “But it is nonetheless true that the experience of managing large complex projects across all our businesses is, in fact, largely transferable. For example, we can use some of the technology that we have developed for warehouse automation to improve the efficiency of early baggage stores – where baggage is stored before the flight – at airports. And it’s also important to us to develop a very flexible workforce; we like to offer our people the chance to move between different

departments and different business areas and, indeed, between the different parts of the world in which we operate. So we have people from China and India work in the Netherlands, Dutch and British people working in Asia and the USA and so on. All this movement within the company goes to foster a very international business culture in what is a global business and, of course, it offers our employees continuing challenges and opportunities.” Vanderlande’s confidence in maintaining its growth performance rests upon the simple facts of consumer choice across the global economy. “As the average wealth of people around the world increases, they want to travel so air traffic will continue to

grow strongly, airports will have to expand to accommodate more flights and all that baggage will have to be handled,” says Eric van der Linden. “At the same time people across the world want to buy more and more products on-line and all those goods need to be stored and distributed from automated warehouses. Then they all have to be delivered through parcel sorting facilities. Vanderlande will continue to supply ever more intelligent logistics systems for all three of these functions. These trends are our friends. People want to fly more, they want to buy more online and they need their goods delivering; we are the people who can supply the systems n to make sure it all works smoothly.”

NTS Prometal is a Czech daughter company of Dutch NTS-Group and offers manufacturing capacities using a wide range of CNC machining, CNC sheet-metal equipment, finishing lines and assembly stations. We support international OEMs by providing them with high quality parts and modules according to their original drawings and documentation. NTS Prometal specialises in small-series production and focuses on high mix - low volume job orders. Our significant advantage lies in complex and flexible solutions of customer’s requirements on one site, offering a one-stop shop. NTS Prometal Machining, s.r.o. • Hradek na Vlarske draze 222, 763 21 Slavicin, Czech Republic •

A PIONEER IN PLASTICS EXTRUSION From extrusion to co-extrusion, tri-extrusion and even quad-extrusion – Essentra Extrusion is a pioneer in the field of plastics extrusion. Abigail Saltmarsh reports.

126 Industry Europe


was launched in 1938 and in 1956 became one of the first companies in the Netherlands to extrude plastics. Several decades down the road, Essentra Extrusion is now recognised as an authority in its field, not only producing extruded profiles, but acting as a knowledge centre too. Ilja Postma, marketing and PR manager, explains the company has recently rebranded, bringing its heritage and long experience together with a contemporary approach to production and delivery. “Our parent company, Essentra plc, has progressively been creating a more unified culture, working together in a more coordinated way across the organisation so as to leverage the group’s collective skills more effectively,” she explains. “We believe that our re-branding as Essentra will make our offer

Han Schootstra, Managing Director

and our organisation more homogeneous, and will provide our customers with greater visibility as to the benefits of the company’s entire range of products and services, with more co-ordinated communication behind a single visual identity.”

Moving into plastics The company, which today works with suppliers such as Solvay, and TESA BSD, started out as Enitor, making chain guards for bicycles. After the second world war, the production of chain guards started demanding so much plastic section profiles that the family decided to make it themselves in their own factory. “Halfway through the 1950s, Enitor was one of the first to take advantage of the new extrusion technique. Here, plastic in its

solid state (often granulate particles) is fed through an extruder and then heated. “The molten plastic is forced into a mould under pressure, where it cools off in the desired form. With extrusion you can make any shape, quickly, in small runs and literally to measure.” says Managing Director Han Schootstra.

Investing in the future Today the company operates with 75 extrusion lines in state-of-the-art, high tech production facilities of 29,000 sq m at Buitenpost. Here the site operates on a 24-seven basis. “We have flexible production capacity because of our standardised equipment and we are able to offer added value through the integration of several production process steps,” says Han Schootstra. “We are now

128 Industry Europe

Excellent in Logistics

planning to invest in a new inline production facility for value adding foil development and wood grain effect for extruded profiles.” The group as a whole is a leading international supplier of specialist plastic, fibre, foam and packaging products with four principal operating divisions – Component and Protection Solutions, Porous Technologies, Packaging and Securing Solutions and Filter Products. Headquartered in the UK, Essentra plc’s global network extends to 29 countries. It has 5,000 employees, 42 principal manufacturing facilities, 64 sales and distribution operations and five research and development centres.

Unique products Essentra Extrusion does not produce standard products, Ms Postma explains. “Each profile that leaves our company’s door is a product of consultation and discussion with our customer. The majority of our products are in fact newly developed products based on unique customer specifications. “In view of the fact that we create hundreds of new products each year, it will come as no surprise that there are no specific examples in our brochure. Each development process is unique and, in principle, any profile is possible in cooperation with us.

“Our profiles are used in all branches of industry, both in the Netherlands and abroad. We deliver profiles for industrial uses, as well as construction, heating, ventilation, air conditioning and climate, doors, greenhouses, water treatment, building, furniture, retail and display, as well as many other applications.” Mr. Schootstra adds: “We want to continue to grow in all these areas and to be a key part of a group that is a leading supplier of speciality plastic, fibre, foam and packaging components.” n

GREEN COOLING Huayi Compressors Barcelona is the Spanish branch of the leading Chinese compressor manufacturing group Huayi Compressor Co. Ltd. Julia Snow found out more about the company from Dawen Huang, the general manager.


ounded in 1990, Huayi Compressor Co. Ltd is one of the world largest hermetic compressor manufacturers today with annual sales of more than 30 million units. It is a listed company on the Shengzhen stock exchange in China. Currently the company has more than 6600 employees and operates three subsidiaries – Huayi Compressor (Jingzhou) Co. Ltd, Jiaxipera Compressor Co. Ltd. and Huayi Compressor Barcelona – the focus of this article. Besides the Spanish production location Huayi Compressor Co. Ltd. has three manu-

130 Industry Europe

facturing sites in China dedicated to the production of compressors for household applications. The group is currently finishing the construction of a new factory in Jiaxing (Zhejiang Province, China) which will add a capacity of another 5 million compressors. The company’s philosophy is to protect the environment, save energy and produce highly efficient products. This intention is supported by advanced compressor production lines, controlled by regular inspections and testing equipment that guarantee stable and high quality.

Location in the heart of Europe Huayi Compressor Barcelona SL, which was acquired by Huayi Compressor Co. Ltd. in 2012, was originally established in 1962. Huayi Compressor Barcelona SL specialises in designing, manufacturing and selling hermetic compressors and condensing units for the light commercial refrigeration market. Operating under the Cubigel Compressors® brand, the products are supported by European quality production. Located in Barcelona, the company exports more than 90 per cent of its production and

employs more than 400 people. The annual capacity is 2.5 million compressors and condensing units. The company focuses on a product innovation strategy based on a strong R&D team formed by 25 technicians and engineers in Barcelona, their enhanced know-how and more than 50 years of experience providing a broad range of solutions to the commercial refrigeration industry.

Refrigeration expertise “We have one of the largest ranges of compressors for the light commercial refrigeration market.” explains Mr Huang. “The offer

consists of five ranges covering from 2.4 to 34 cc with powers from 1/24 to 1½ hp suitable for several voltages and working with all types of refrigerants and applications. At the same time we have a full range of condensing units associated with our compressor range. Most of our compressors are standard but, of course, we also carry out product developments together with our customers to meet the market requirements.” So, how has the product portfolio changed over time? “Over the last years we have been mainly working in enlarging our range of compressors with lower energy consumption and working with natural

refrigerants” explains Mr Huang, “and we will continue in the same direction in the coming years. On the other side we are also working on our product range to make it more competitive. As a result of this we will launch a new version of our D range during 2014, extending its use to more applications and refrigerants. After that, during 2015 we plan to do the same with our X range.” The most innovative product, the Green Cooling range by Cubigel Compressors®, allows efficiency improvements while reducing the energy consumption of the application up to 45–55 per cent compared to the standard versions. Green Cooling includes

Industry Europe 131

ITW ISPRACONTROLS is the global market leader for developing, producing and selling electronic ignition modules, switch harnesses and accessories like LED displays and user interfaces. Our Industry experience, worldwide outstanding service and the strong ability in developing innovative solutions allows us to offer a wide range of high performing and reliable products for different markets like Home Appliances, Outdoor Grills and Heating. We also develop and produce several kinds of electronic controls and user interfaces for the appliance market. We offer complete electronic main boards, touch sensitive technology for user interface (see and High Intensity LED Illumination Device (i.e., for laundry machines, dishwashers, dryers, refrigerators). Products: • Electronic Controls • LED Light • Switch Harnesses

• LED Gas Level Indicator • Spark Igniters Modules • Terminal Blocks

132 Industry Europe

also the variable speed compressor offering maximum efficiency by electronically selfadjusting the compressor’s speed to the appliance’s cooling needs, while improving COP up to 50 per cent.

Environmental concerns

Being part of Huayi group, however, enables us to plan business development activities in countries where there is still a lot of growing potential for our products, for example China and South America.” There is a very clear goal that the company has set itself for the coming years:

Huayi Compressor Barcelona SL plans to grow its activities and sales in order to become the second largest light commercial compressors producer in the world. It aims to do this by organic expansion and through some mergers and acquisitions over the next n five years.

Sustainability is always a key consideration, and major efforts have been directed towards the design of more environmentally friendly compressors. “In 2010 we launched the Green Cooling ranges that works with natural refrigerants like isobutene and propane. Our future developments will go in the same direction as the market is more and more asking for sustainable solutions. We also expect an increasing demand in the coming years for electronic compressors as they currently are the most efficient solution to reduce energy consumption and hence CO2 emissions.”

A global market outlook Most of Huayi Compressor Barcelona’s customers are based in Europe but its growth ambitions are not limited, says Mr Huang: “We sell worldwide, but currently our main market is Europe where we have a very strong presence. Industry Europe 133

FUNDING GREENER FREIGHT NETWORKS Headquartered in Brussels, the Marco Polo programme funds projects to ease road congestion and promote greener transport solutions throughout Europe. Launched in 2003, it has already been instrumental in aiding over 500 companies with a wide variety of projects, as Industry Europe discovers.


ny company or organisation that wants funding for direct modal-shift or traffic avoidance projects, shifting freight from roads to other routes such as rail or sea, can apply to Marco Polo for assistance. Its aim is to ease road congestion and its attendant pollution by promoting a switch to greener transport modes for European freight traffic. Projects funded by Marco Polo typically fall into five key categories which will be discussed below. These are: modal shifts from road to rail and waterborne systems; catalyst actions which promote modal shift; ‘motorways of the sea’ between major ports; traffic avoidance and common learning actions. Funding takes the form of an outright grant, with applicants meeting a series of conditions

to qualify. Requirements are kept simple and are as transparent as possible in order to put all applicants on an equal footing.

Modal shifts Both direct modal shift projects and intermodal projects combining the different transport modes – road, rail and waterborne – are eligible for Marco Polo funding. Whilst road freight transport will never disappear altogether, taking the pressure off by transferring at least some of it to other modes of transport is an important element in the driver for greener transport solutions. These kinds of projects account for by far the largest percentage of funding – around 79 per cent. An example of one such success-

ful project was MacAndrews’ Reefer Express project which focused on the transport of fruit and vegetables by sea rather than by land. MacAndrews used Marco Polo funding to launch combined short-sea and rail container services for refrigerated and general cargo to compete with trucks on the route from Spain to the Netherlands and UK. The ships link Bilbao in northern Spain, Tilbury in England and Rotterdam in the Netherlands.

Catalyst actions Accounting for around 10 per cent of the funding granted by Marco Polo, catalyst actions are highly innovative projects which focus on overcoming structural barriers to developing totally new approaches to non-

road freight transport. As such, they act as genuine breakthroughs or precursors to the ways in which goods will be transported in the future. A very successful project in this category which received funding of around €2.5 million from Marco Polo was the development of a Scandinavian Shuttle rail freight corridor between continental Europe and Scandinavia. This makes use of the Oeresund fixed link to connect southern and central Sweden to the Ruhr region of Germany via Denmark. This fixed tunnel and bridge link is

one of Europe’s biggest infrastructure projects co-funded by the EU. Each container or trailer has a mobile phone module with a GPS card reporting its position in near-realtime to facilitate cargo track-and-trace.

Motorways of the sea These projects are designed to offer what is described as a ‘door-to-door service’ which combines short-sea shipping with other forms of transport. As well as being more environmentally friendly than road transport, the projects funded by Marco Polo are also

highly innovative in terms of logistics, equipment, products and services. Motorways of the sea actions funded by Marco Polo are only for projects using larger ports, with a total annual traffic volume of no less than 1.5 million tonnes of freight. This is owing to the fact that, unlike other project using short-sea shipping, they work in line with the Trans-European Networks Motorways of the Sea network, which finances public-sector infrastructure to create networks. The most recent projects in this category funded by Marco Polo were the Ro-Ro Past

France, a freight ferry service sailing between Bilbao in northern Spain and Zeebrugge in Belgium; and FRES MOS – a service between St Nazaire in France and Gijon in Spain.

Traffic avoidance As Marco Polo states, traffic avoidance actions are not just about taking freight off the roads; they are focused on integrating transport into the production process itself. They must lead to a shift from road to other forms of transport of an average of 80 million tkm per year per contract or 4 million vehicle kilometres per year. The entire supply chain is made more efficient in this way as journey times can be cut, loads can be increased and the number of empty runs can be dramatically reduced. All of this, of course, eases the pressure on the environment for each journey. Actions must cover at least two countries, either two member states or one member state and a nearby third country. The Sirius2 Crating project was one traffic avoidance scheme that received funding from Marco Polo. This involves the use of an innovative packaging and palletising system to avoid the transport of empty bottles by road between a bottled water production plant in France and logistics platform in Germany. Another is

known as the Double Loading Network, and actually consists of two projects in one. The first uses a two-level semi-trailer for carrying non-stackable pallets. The second uses a form of semi-trailer that can carry jumbo-sized sheets of flat glass on the outward journey and that can be converted into a semi-trailer for transporting conventional freight pallets on the return trip. The service runs along several routes throughout Europe.

Common learning actions Finally, common learning actions funded by Marco Polo are those which lead to improvements in commercial services that offer alternatives to road transport. They focus on improving or sharing knowledge of advances in freight logistics and improving cooperation.

One such example of this was NorStella’s Short Sea XML project. This introduced the use of a computer programming language – extensible mark-up language (XML) – for exchanging data along the short-sea logistics chain. With this, NorStella was able to find synergies not just with other Marco Polo-funded programmes but other more general EU-funded research programmes. Another instance of common learning action which received funding was EWITA: this addresses the skills and labour shortage on Europe’s inland waterways by creating a common European training concept and practical training programmes for intermodal waterway transport. It offers the latest training concepts and state-of-the-art e-learning platforms for n waterborne logistics in Europe.



The award-winning ERS Railways BV is one of Europe’s leading private railway companies and a pioneer in the provision of fast, efficient and sustainable intermodal rail solutions. Victoria Hattersley talks to managing director Frank Schuhholz about its unique service offering and plans for future development.


ounded in 1994 as a small intermodal operator, today Rotterdam-based ERS Railways serves several European countries through its offices in the Netherlands, Germany, Poland and the Czech Republic. In August 2013 it was taken over by the UKbased Freightliner Group. Now running around 250 trains per week, the company employs 105 people and has a modern fleet of locomotives with over 400 leased container platforms, low-bed as well as double pocket wagons.

train running four times a week from Rostock, serving Brno in the Czech Republic. But as an intermodal specialist, ERS is also able to link up these various rail services with maritime operations. Mr Schuhholz explains: “Via, a Hamburg based railway undertaking, in which we have a 47 per cent share, we provide intermodal transport solutions to German hinterland destinations such as Munich, Nürnberg, Ulm and Stuttgart to name a few.”

Range of services

In the coming year, ERS is looking to expand its service offering to Poland, where it is already something of a pioneer. For example, it will be looking to connect Rotterdam with Warsaw. Last year, the innovative connection ERS already runs between Rotterdam and Poznan saw it win the prestigious ‘European Freight Operator of the Year’ title. Mr Schuhholz explains the significance of this: “The award was very important because we were up against tough competition. Our innovative connection between Rotterdam and Poznan was an important factor behind the jury’s decision. “When we entered the Polish market in 2012 there were no trailers being transported by rail to that country; they were mainly transported by road. We began the transition to rail and we now run five round trips per week. This has made a big difference to the Polish freight network. With the services we currently run, we can pull 15,000 truckloads off the road each year.” Aside from the above-mentioned award, ERS Railways has also received the Polish

ERS Railways offers a number of services throughout Europe, ranging from ‘open train’ container services for multiple customers, to regular services for single customers. From its Rotterdam base it serves the Milano region of Italy, running open train container services for a variety of container sizes (20ft, 30ft, 45ft and so on). The company also runs a service seven times a week from Rotterdam to Switzerland for one single customer; and from Rotterdam to Poznan in Poland five times a week. The latter is expected to increase to six round trips per week in Q2 2014.” Germany is an important hub for ERS with several services coordinated from its Frankfurt and Hamburg offices. These include, amongst others: a service from Krefeld to Warsaw running twice a week; three round trips per week for a single customer running from Ludwigshafen to Lübeck; and 16 round trips between Bremerhaven, Hamburg and Austria each week. Furthermore, there is a

Expansion in Poland

‘Ambassador of Innovation in Transport’ award – again from the innovative services between Rotterdam and Poznan.

Future development plans Looking ahead, ERS Railways sees huge opportunities in Europe when it comes to intermodal solutions. There is strong potential in the trailer segment owing to the increasing road tolls, driving restrictions and infrastructure issues which can make life that much more complicated for road-based forwarders. But market expansion is not the only priority for ERS: it is also dedicated to sustainability throughout its operations, and taking traffic off the roads is just a part of this. Since 2012 it has made the switch from diesel-operated to electric-operated locomotives for long distances. In the future there will be a strong focus on offering increasingly tailor-made solutions for its major customers on the existing trade lanes as well as for dedicated clients like DLS on the Germany-Poland corridor. Mr Schuhholz concludes: “We are seeing increasing numbers of shippers, such as big FMCG companies, who want a sustainable approach across the whole supply chain. They are far more likely to choose our solutions, therefore, if we together with our customers (forwarders, logistics companies and carriers) can offer benefits in terms of cost, efficiency and sustainability. “These are the topics we will have to be looking into in the future to convince customers that intermodal can offer many advantages n if it’s well implemented and executed.”




A.C.E. srl


Adamallys L.L.C.





PPHU Pabex Sp. J.

Heap Dawson Limited


PT. Sumber Jaya Aroma

Albini & Fontanot S.p.A.


HKM-Messtechnik GmbH


Antonio Guerrasio Srl


Hutchnison Srl


Azienda Chimica Genovese S.r.l.



Internorm Kunststofftechnik GmbH Inside back cover

Bernstein AG


Biele Group


Bito Systems NV Bronswerk Heat Transfer

118 Inside front cover



Interoll Fördertechnik GmbH


ITW Ispracontrols


80 104

S SC Rondocarton SRL


Sisu Axles


Smaltiflex Energia Srl


Suyin GmbH


T J Johnasia Singapore



Calderys Finland Oy


Krauss Maffei

Carlestam Poland Sp. z o.o.







Lantor BV Lincoln GmbH

Tesa BV




U 34

43 113

United Initiators


Uniterm Srl


V Vitronic


D Deuttenberg Drahttechnik GmbH



Doceram GmbH


Marex Ship Supply

Dorin Innovation

Outside back cover

E Eckelmann AG



Marpol S.A.


Masotti Srl


MGM Srl 26


Müller Elektronik GmbH & Co. KG

132 27




New Componit Srl


Fuchs Europe Schmierstoffe GmbH





Niek Dijkstra Transport BV


NTS Prometal Machining s.r.o.


GEKA GmbH 28 General Logistics Systems Italy SpA Getriebebau Nord GmbH & Co KG

47 123

O OCS Checkweighers GmbH

121 132



Officine Rasera srl

Grutech Oy


O.M.R. srl

GTS Generator Technik Systeme



Woodtai Enterprises Ltd