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April 2012

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CONTENTS April 2012

Pulling it back





cross Asia, many manufacturers continue to develop great products for world markets. On a daily basis, we read of companies from many countries moving their production plants to China or Indonesia or Vietnam or Korea.

efining your business’ niche market is by no means an easy process. Simple as it sounds, some companies neglect the importance to better position themselves, or never really manage to find their unique value.

Not many go the other way. I receive mail about the cost and quality differences in Manufacturing across ASEAN as against having a re think about things and leaving the manufacturing at home. China is a case in point – isn’t China always the case in point? – which this year is taking a slightly more conservative approach to GDP. We are so used to China at nine to ten percent, that anything less causes concern. But maybe not this year. In 2012 the time is right for China to re-evaluate its manufacturing direction and look to its own companies who manufacture for themselves and not for overseas firms on contract. Cost is the reason for western countries manufacturing in Asia. But what does this do for their own economies, their own creative people and their own job market? Analysis needs to be done on the amount of contracted manufacturing in Asia and I am sure the figures will stagger us. The raw and recycled materials possibly can’t be obtained cheaper than in Asia so the method arrived at for cost efficient manufacturing in one’s own country is difficult and getting harder by the day. So much dependency on Asia contract manufacturing companies. It doesn’t appear that anytime soon the trend can be reversed. Please share your thoughts on this subject to words@xtra.

















Applied Materials Inc., global leader in providing manufacturing solutions for the semiconductor, flat panel display and solar photovoltaic industries, and the Institute of Microelectronics (IME), a world-renowned research institute under the Agency for Science, Technology and Research (A*STAR), officially opened the Centre of Excellence in Advanced Packaging at Singapore’s Science Park II today.




n today’s fast-moving business environment, the ability to change automated assembly and production systems quickly and efficiently, at lowest cost and risk across multiple global locations, is vital.















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




case study

JBM Neel Metal maintains market leadership with FARO


efining your business’ niche market is by no means an easy process. Simple as it sounds, some companies neglect the importance to better position themselves, or never really manage to find their unique value. The JBM Group, however, has definitely well-engineered its place in the Indian automotive sector as a distinctive leader.

The portable FaroArm can be deployed directly at the production line, yet still ensuring precision and accuracy.

Within the JBM Group of 13 companies, JBM-Neel Metal Products (JBM-NMP) is one of the fastest growing. Based in Northern India, JBM-NMP has two plants in Gurgaon and another in Faridabad, with more being planned for expansion. The company specializes in manufacturing automotive components, and some of its products include exhaust systems and motorcycle rims. “We supply automotive components and fixtures for two-, three- and fourwheelers to domestic and export markets,” shared Mr Rakesh Kumar, Operations and Systems Manager. “Our clientele comprise industry leaders such as Maruti, Honda, Piaggio, Suzuki, Hero Motors, Eicher and Mahindra.” In line with the group’s quality policy, it has always been a priority for JBM-NMP to achieve total customer satisfaction. The company does so by delivering

products and services that meet or exceed customers’ exact requirements and expectations in a timely fashion. “In order to ensure the quality of our products, verification of part dimensions and accuracy has always been of utmost importance,” explained Rakesh. “That is why we are always on the lookout for the best technologies available to help us perform quality assurance and improve efficiency.”

More than Just Precision & Accuracy Obtaining tight tolerances on measurements is the most scientific and reliable way of upholding product quality. It is no wonder why JBM-NMP opted for extremely high precision levels offered by fixed coordinate measurement machines (CMM) early on. However, due to the large size and immobility of fixed CMMs, JBM-NMP faced a set of

challenges that came with this option. “The fixed CMM required a controlled environment away from the shop floor in order to properly function, which meant we need to transport product parts to the machine for measurement jobs,” said Rakesh. “Not only was that labor-intensive and time-consuming, large or unconventionally-shaped parts could not be measured by the fixed CMM equipment.” JBM-NMP’s metrology needs include inspection, alignment, calibration, dimensional calculations and reverse engineering. These arise in the various stages of automotive component and fixture production that the company undertakes. As part of the company’s continued efforts to uphold quality and improve capabilities, JBM-NMP’s refusal to be limited by its existing equipment fueled the search for more viable options. Rakesh revealed, “While the fixed CMMs fulfilled our need for accuracy and precision, we needed more than just that. We want portability and the ability to measure complex shapes easily.”

Portability, Versatility & Increased Productivity After thorough research, the team at JBM-NMP found the FaroArm to be the perfect solution to their problems. In 2009, JBM-NMP purchased two sets of FaroArm Platinum, 8ft and 12ft in length, to cater to different measurement volumes. With the new portable FaroArm, JBM-NMP engineers were able to conduct measurement checks right by the production line without compromising on precision or accuracy. As a result, the company’s levels of

case study



efficiency were greatly increased. “Eliminating the need to move large parts lightened our workload significantly,” remarked Rakesh. “Using the FaroArm, we can complete the same measurement task with half the resources previously required!” And because the FaroArm was available in models of varied lengths, JBM-NMP was able to perform measurements on larger parts that did not fit in the fixed CMM before. Additionally, the FARO solution offered unique features that competitor models did not possess. “The infinite rotation afforded by the 6-axes in the articulating arm made it very easy for us to measure our more complex auto components,” commented Rakesh. “The FaroArm had no problems accessing difficult-to-reach areas at all. Without the need to manufacture expensive, customized templates for those components, we not only saved time but will also enjoy cost-savings in the long term.”

Measurement results can be shared with customers through easily-generated reports provided by the software.

As is evident, JBM-NMP sealed its leading position because of its commitment to deliver quality products to clients. This spirit of excellence has enabled the company to reach and maintain its leadership position where automotive components are concerned. Rakesh concluded, “We look forward to enjoying greater achievements from our partnership with FARO. As we continue to equip our facilities with worldclass technologies, we know we’ll have the ability to provide our clients with the highest level of quality in our products, thereby maintaining our industry position.” Neel Metal Products Ltd. is one of the fastest growing companies of the JBM group with diversified product profile. It boasts of a oneof-a-kind Steel Service Centre, a wide range of presses with 3-axis and 5-axis laser cutting machines and welding equipment. u



business news

Airtel launches


harti Airtel has launched its operation in Rwanda, expanding its footprint on the African continent to 17 countries. Airtel has already said that it will invest over USD 100 million in its operations over the next three years and generate direct and indirect employment opportunities.

Commenting on the launch, Mr. Manoj Kohli, CEO (International) & Joint MD, Bharti Airtel said, “We are delighted to launch our operations and bring Airtel to the people of Rwanda. We believe that Rwanda is an extremely promising market and this launch further strengthens our footprint in eastern Africa. It will be our endeavour to bring world-class and affordable services to our customers in Rwanda and add value to the economy. We would like to thank the Rwandan government for giving us this opportunity, and we are committed to contributing to their aim of bridging the digital divide in the country.” “The government welcomes Airtel into our country.  We are looking to partner with the private sector to provide good quality, accessible and affordable telecommunications services,” says Right Hon. Dr. Pierre Damien Habumuremyi, Prime Minister, Rwanda. Hon. Dr. Habumuremyi added: “We are especially excited about the prospect of connecting Rwanda with the rest of the East African region and, indeed, with the rest of Africa. As Rwandans begin engaging in business ventures and looking for regional partners, telecommunications companies – like Airtel – that are able to provide access to a pan-African wireless network, become a crucial part of expansion.” Airtel has also partnered with IBM in a move that will enable the teleco to offer superior customer experience in Rwanda. The partnership will see IBM deploy and manage the information technology (IT) infrastructure and applications to further support Airtel’s goal of providing innovative mobile services. “As part of our strategic services agreement, we are happy to assist Airtel with its entry into the Rwandan market and ensure the very highest levels of support,” says Steve Martin, IBM Vice President and Senior Project Executive, Airtel Africa. “Rwanda is an important market for IBM and we are actively strengthening our local presence and increasing our ability to serve our customers and partners in the country.” Ericsson, the world’s leading provider of services and technology to telecom operators, was selected to manage the network from end-to-end, including OSS/ BSS solutions and managed services.

Lars Lindén, head of Region Sub-Saharan Africa for Ericsson, says: “This solution is using the latest Ericsson portfolio, and will be the first Airtel network designed as an all-IP solution. That means Airtel will be able to provide advanced services to its subscribers, expand quickly to accommodate quick growth, and keep operating expenses down.” Additionally, this launch has set a record. Lindén adds: “The inaugural call was placed on the system on March 7. It took just 83 days to build this network from the start – the fastest Greenfield launch in history in Sub-Saharan Africa.” Rwanda is among the fastest growing telecom markets in Africa and, according to the National Statistics Institute of Rwanda, mobile penetration in the country was at 38.4 per cent as of July 2011. The rapidly growing private sector – which includes telecommunications infrastructure and ICT – presents many opportunities for the development of the industry and the country’s economy. In fact, according to the World Bank, each 10 per cent of broadband penetration results in a 1.3 per cent increase in per capita GDP growth in developing countries. Airtel was awarded the license by the Rwanda Utilities Regulatory Agency (RURA) last year to operate 2G and 3G GSM mobile services. Currently, the Airtel brand is present in both Francophone and Anglophone markets across the continent, spanning Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda, and Zambia. Bharti Airtel Limited is a leading integrated telecommunications company with operations in 19 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the company’s product offerings include 2G & 3G mobile services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national and international long distance services to carriers. In the rest of the geographies, it offers 2G and 3G mobile services. Bharti Airtel had over 246 million customers across its operations at the end of February 2012. u nextSTEP Visit:

business news



Fukushima recovery, experimental offshore floating wind farm project


consortium made up of Marubeni (project integrator), the University of Tokyo, Mitsubishi, Mitsubishi Heavy Industries, IHI Marine United, Mitsui Engineering & Shipbuilding, Nippon Steel, Hitachi, Furukawa Electric, Shimizu and Mizuho Information and Research are participating in an experimental offshore floating wind farm project sponsored by the Ministry of Economy, Trade and Industry (METI). This experimental project consists of three floating wind turbines and one floating power sub-station off the coast of Fukushima. The first stage of this experimental project will begin in 2012 and consists of one 2MW floating wind turbine, the world’s first 66kV floating power sub-station and undersea cable. In the second stage of the project two 7MW wind turbines will be added between 2013 and 2015. Fukushima Prefecture expects this experimental project to spawn a new industry in renewable energy

and create employment as part of recovery efforts in the wake of the Great East Japan Earthquake. Through this experimental project, Fukushima Prefecture hopes to develop a large wind farm industry. It is understood that one of the most important themes of this experimental project is the coexistence of the fishery industry with the offshore wind farm industry. To ensure this the consortium will work hard to maintain good relations with the local fishery industry through strong communication while at the same time pursuing the commercialization of this offshore wind farm project. Creating a practical wind farm business scheme through this experimental project could lead to the deployment of large scale floating wind farms in the future. Moreover, taking advantage of the experience and knowledge gained through this, the world’s first floating wind farm, this business could be expanded on a global basis and lead to the development of a new Japanese export industry. u

Fears fuel coal mining success in North America


onflicting public fears surrounding nuclear disaster and environmental destruction will fight it out to decide the fate of the coal mining industry in North America, according to a new report by industry intelligence experts GBI Research.

The new report* shows that coal consumption in the region is anticipated to remain strong in the future, despite campaigns and government legislation which seeks to lower fossil fuel usage and carbon footprints. North America is one of the largest coal producing regions in the world. The major coal-producing mines in the region are all located in the United States, within the Appalachian coal region, the Interior coal region and the Western coal region, which includes the Powder River Basin. Canada also has a significant number of smaller coal-producing mines in the provinces of Alberta and British Columbia. Power generation accounted for around 90% of total consumption in North America during 2011, highlighting the importance of coal in the region. The recent Fukushima disaster saw nuclear energy threatened in the wake of a tsunami on the Japanese coast, and nations around the world have altered their perceptions on power sources accordingly. Many

have become wary of nuclear energy, with countries such as Germany abandoning this method of power generation entirely, all the while creating support for coal power generation. Nonetheless, the opposition against greenhouse gas emissions from end-use industries cannot be overlooked. Fossil fuels are widely lauded as environmentally damaging, and various government plans to reduce national carbon footprints may directly oppose the use of coal as a method of generating power. North America produced approximately 1,027 million metric tons (MMt) during 2011, accounting for around 14.1% of total global coal production. During the same year, power generation accounted for 910.3 MMt, or 93% of total coal consumption in North America. Coal-fired power plants both within and outside the region will drive demand over the decade. The consumption of coal in North America is expected to grow to 940.4 MMt over the next eight years, largely the result of increased demand from several planned and upcoming US coal-fired power plants due for completion by 2015, which will bring in a combined capacity addition of 11.5 gigawatts (GW). u



business news

India confirms boycott of EU aviation emissions rule


ensions continue to run high over the inclusion of aviation in the EU’s Emissions Trading System (ETS), after Indian government officials confirmed that New Delhi would be asking its airlines not to participate in the scheme. Meanwhile, the trade group representing the largest US airlines is now calling upon the White House to pursue a case against the Brussels plan at the International Civil Aviation Organization.

“Though the European Union has directed Indian carriers to submit emissions details of their aircraft by March 31, 2012, no Indian carrier is submitting them in view of the position of the government,” India civil aviation minister Ajit Singh said. “Hence the imposition of a carbon tax does not arise.” The move makes India the second country to take concrete action against the inclusion of aviation in the Brussels scheme, with China having earlier banned its own airlines from complying with the EU ETS without government approval. Beijing has also reportedly halted the orders of US$14 billion worth of jets from Europe’s flagship airplane manufacturer, Airbus, in response to the aviation emissions

rule. However, this claim has been contested by China’s aviation regulator, Li Jiaxiang, who indicated in an interview with Bloomberg that the country’s airlines have not been barred from buying Airbus planes. The US has also warned that it could take “appropriate action” in response to the scheme, but has yet to take any concrete steps. However, Airlines for America - the trade group that had, together with three US airlines, unsuccessfully challenged the legality of including aviation in the scheme at the European Court of Justice - is now callingon the administration of US President Barack Obama to bring a case through the International Civil Aviation Organization (ICAO), the UN civil aviation body.

“There is a clear path for the United States to force the EU to halt the scheme and protect US sovereignty, American consumers, jobs and international law,” said Airlines for America President and CEO Nicholas E. Calio. The EU rule, which requires airlines to surrender carbon permits for the emissions they produce during all flights taking off or landing in the 27-country bloc, has been criticised by various non-EU governments, which argue that Brussels is exceeding its legal jurisdiction by charging for aviation emissions over an entire flight, rather than just those in EU airspace. In response to the Brussels plan, over 20 countries - including the US, China, India, and Russia met in Moscow in February to agree on a basket of possible countermeasures against the inclusion of aviation in the EU scheme (see Bridges Weekly, 22 February 2012). The 22 February announcement on possible countermeasures fed fears that the row could soon escalate into a global trade war. Under the EU ETS - of which the aviation element entered into force on 1 January - airlines are required to buy permits for 15 percent of the carbon they emit; permits for the remaining 85 percent will be provided to them for free. Carriers will have to surrender permits for 2012 carbon production by 30 April 2013.

Photo: Josef P. Willems

Air industry renews call for global scheme Aviation industry officials from both EU and non-EU countries, meanwhile, are strengthening their push against the Brussels aviation emissions rule, adopting



manufacturing technology


Applied Materials and A*STAR to drive advanced 3D chip packaging



pplied Materials Inc., global leader in providing manufacturing solutions for the semiconductor, flat panel display and solar photovoltaic industries, and the Institute of Microelectronics (IME), a world-renowned research institute under the Agency for Science, Technology and Research (A*STAR), officially opened the Centre of Excellence in Advanced Packaging at Singapore’s Science Park II today. Singapore’s Minister for Trade and Industry, Mr. Lim Hng Kiang, presided at today’s opening ceremony.


a declaration at the end of a twoday summit in Geneva last week urging governments to use the ICAO to negotiate a global deal on aviation emissions. At the meeting, South Africa one of the countries opposing the inclusion of aviation in the scheme - urged Brussels to suspend the aviation component of the scheme for two years, in order to allow time for a global agreement on aviation emissions to be worked out. “Aggressive unilateralism and extra-territorial measures are not the way to go in an increasingly globalised world,” South African tourism minister Marthinus van Schalkwyk said in outlining the proposal.


The call for additional time backed by a US government representative and industry bodies from Europe and the Middle East - was echoed by various aviation industry executives, with the chiefs of Airbus and its often-rival Boeing both making similar pleas.

The EU has said that it would only consider changing its legislation should the 191-member ICAO come up with a sufficiently ambitious global aviation emissions agreement.

“This is not about Boeing and Airbus; it is about what is best for our customers and how we are going to get the whole industry to reduce its environmental footprint,” Boeing chief executive Jim Albaugh said after the aviation industry meeting.

The European Commission had originally maintained that it preferred that the Montrealbased organisation be the body responsible for regulating aviation emissions. However, the EU later chose to include aviation in its emissions trading system after it deemed the UN body’s progress to be too slow.

“Give ICAO time to come up with a global regime. Stop it now, don’t go down the road of a trade war,” Airbus Chief Executive Tom Enders argued.

“Fine, let’s create a global scheme, but it cannot take 100 years to get it done this time,” EU Climate Commissioner Connie Hedegaard said on Tuesday. u



manufacturing technology Centre of Excellence in a The Advanced Packaging has been

built with a combined investment of over USD$100 million from Applied Materials and IME. The world-class facility features a 14,000 square foot Class-10 cleanroom and is equipped with a fully-integrated line of 300 millimetre manufacturing systems to support the research and development of 3D chip packaging, a critical growth area for the semiconductor industry. The Centre will be the most advanced lab of its kind dedicated to wafer level packaging and will combine Applied Materials’ leading-edge equipment and process technology with IME’s leading research capability in 3D chip packaging. The Centre positions Singapore as a global leader in semiconductor R&D and is expected to help accelerate the development and adoption of 3D packaging technology globally. Traditionally, chips are connected to packages using wires attached to only their edges. This approach limits the possible number of connections from the chip and the long wire connections result in signal speed delays and power inefficiencies. With 3D chip packaging, multiple chips can be stacked on top of each other and connected with wiring that runs vertically through the stack - called through-silicon vias (TSVs). When used to stack memory chips on logic chips, this technology is expected to reduce package size by 35%, decrease power consumption by 50%, and increase data bandwidth by a factor of eight or more times. Conceived to support research collaboration between Applied Materials and IME, the Centre will also allow both parties to pursue independent research initiatives including process engineering, integration and hardware development. For Applied Materials, this is a significant addition of new capabilities in Singapore. The Centre also serves as a demonstration of how A*STAR

is able to develop and nurture a local ecosystem for advanced R&D through partnerships with leading corporations. Research activities are already underway with a team of over 50 personnel. “Today, we are not only opening the most advanced wafer level packaging lab of its kind in the world, but we are also opening a new product development capability for Applied Materials in Asia,” said Mike Splinter, Chairman and Chief Executive Officer of Applied Materials. “This Centre will strengthen our ability to advance new technologies and allow us to work more closely with our customers in Asia.” On the collaboration with Applied Materials, Mr. Lim Chuan Poh, Chairman of A*STAR, said, “The combined efforts of Applied Materials and A*STAR’s Institute of Microelectronics are a continuing testimony to A*STAR’s spectrum of excellent and industry-relevant scientific capabilities. It reaffirms our strategy of leveraging a suite of capabilities to form meaningful and impactful public-private research alliances which catalyse the growth of private sector R&D activities in Singapore. This will create many high-value jobs locally and help to further anchor Singapore’s semiconductor manufacturing base.” Professor Dim-Lee Kwong, Executive Director of IME, added, “The Centre of Excellence is a prime example of a strategic relationship fostered between two leading players in the global semiconductor value chain and will spur the development of innovative wafer-level packaging technologies to be implemented globally. This collaboration will enable the semiconductor industry to accelerate the adoption of 3D chip packaging.” Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar

photovoltaic products. Our technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world. At Applied Materials, we turn today’s innovations into the industries of tomorrow. Learn more at www.appliedmaterials. com. The Institute of Microelectronics (IME) is a research institute of the Science and Engineering Research Council of the Agency for Science, Technology and Research (A*STAR). Positioned to bridge the R&D between academia and industry, IME’s mission is to add value to Singapore’s semiconductor industry by developing strategic competencies, innovative technologies and intellectual property; enabling enterprises to be technologically competitive; and cultivating a technology talent pool to inject new knowledge to the industry. Its key research areas are in integrated circuits design, advanced packaging, bioelectronics and medical devices, MEMS, nanoelectronics, and photonics. For more information about IME, please visit The Agency for Science, Technology and Research (A*STAR) is the lead agency for fostering world-class scientific research and talent for a vibrant knowledge-based and innovation-driven Singapore. A*STAR oversees 14 biomedical sciences and physical sciences and engineering research institutes, and six consortia & centres, located in Biopolis and Fusionopolis as well as their immediate vicinity. A*STAR supports Singapore’s key economic clusters by providing intellectual, human and industrial capital to its partners in industry. It also supports extramural research in the universities, and with other local and international partners. For more information about A*STAR, please visit www.a-star. u



manufacturing technology

Better Business Throughout Asia u



manufacturing technology

Autodesk unveils new desig


utodesk has unveiled its new 3D design and engineering software portfolio for manufacturers, offering a complete set of integrated and interoperable suites and cloud services to simplify design, visualisation and simulation workflows from product development through delivery. The new Autodesk design suites are geared especially for manufacturers and include Autodesk Product Design Suite and Autodesk Factory Design Suite. The new suites provide a broad range of cloud services to help manufacturers more efficiently design, build and deliver better products faster and at reduced costs. The new Autodesk Simulation family of products delivers a faster, more accurate and flexible approach to predicting, optimizing and validating designs earlier in the design process. Autodesk’s 2013 portfolio provides customers with a faster path to ROI for product development and delivery. The 2013 suites and scalable cloud services help manufacturers improve productivity and minimise upfront investment.

Autodesk enhances interoperability, collaboration Autodesk suites provide comprehensive workflows to connect desktops to mobile devices and to the cloud. These workflows enable manufacturing customers to develop complete definitions of product designs; integrate electrical and mechanical design to increase productivity; predict product performance; and visualize designs or complete factory layouts in 3D. Autodesk’s 2013 design suites integrate with Autodesk 360 cloud offerings to better enable collaboration. Cloud-based

assets promote design sharing and reuse. The suites also offer interoperability with the new 2013 version of Autodesk Vault product data management software and the companyís next generation, cloud-based alternative Autodesk PLM 360. Autodesk Vault software enables workgroups to organize, manage and track their engineering CAD data, manufacturing bills-of-material and change processes from a centralised location. The 2013 Autodesk Product Design and Factory Design suites are available in three costeffective, convenient editions: Standard, Premium and Ultimate. Delivering a comprehensive software solution, the Autodesk Product Design Suite enables design, visualisation and simulation capabilities, helping to drive innovation with integrated, discipline-specific tools and workflows built for Digital Prototyping. New for Autodesk Product Design Suite 2013 are the addition of

one-click workflows created to help customers seamlessly move through the engineering design process, advanced cloud-based services for simulation and the inclusion of additional software allowing customers to realise their end-to-end design process.

Autodesk Product Design Suite 2013 updates include: • Autodesk Inventor software in the Standard edition, establishing 3D parametric design as the foundation to the engineering design process and providing a solution that delivers powerful 3D design and drafting capabilities. • AutoCAD Electrical software and Autodesk Inventor Routed Systems in the Premium and Ultimate editions, delivering a complete integrated electromechanical system capable of producing an entire product definition, including fully defined tubing, piping and hydraulic systems. • Autodesk Navisworks Simulate in Premium and Ultimate editions, providing integrated electromechanical, markup and visualization workflows capability.


manufacturing technology


gn suites and cloud services The Autodesk Product Design Suite has been an invaluable tool for Sunkist Research and a big part of their success, from generating animations in Autodesk 3ds Max Design, to overlaying a 3D model in a real-time factory environment to actual engineering design and 3D modeling with the Autodesk Inventor suite,

Digital prototyping to the factory floor You can enhance AutoCAD and Autodesk Inventor software with exclusive access to interoperable, layout-specific workflows, new cloud-based factory asset resources and powerful visualisation and analysis tools that help increase design accuracy, efficiency and communication. Specifically, the one-to-one synchronization between 2D AutoCAD drawings and the 3D Inventor assembly within the suite means changes made in the AutoCAD drawing will propagate to the Inventor 3D layout, and changes in the 3D layout will propagate back to the original 2D drawing. The bidirectional associative workflow of the suite provides veteran AutoCAD users with a familiar, easy to learn process for generating compelling 2D and 3D factory layouts while improving efficiency and accuracy. Autodesk Factory Design Suite allows modelling ofpackaging lines in a digital environment. Says Brian Strothcamp, senior designer with the Barry-Wehmiller Design Group. “We can visualise different options more easily to find innovative and practical solutions. Interactive, 3D walkthroughs give our clients confidence that our factory layouts will satisfy all their needs.”

Accurate and compelling product documentation Autodesk Inventor Publisher 2013 extends the value of Autodesk Design Suites by leveraging the same 3D digital model used in the design process for developing highly visual and interactive 2D and 3D technical documentation that helps explain and differentiate products and processes. Inventor Publisher 2013 features faster performance, new video output formats that can be published directly to YouTube and Facebook, and many new interoperability additions, such as new file import formats, automatic update with new assembly formats and integration with Sketchbook Designer.

Autodesk Simulation: Fast, accurate and flexible The Autodesk Simulation family of products delivers a fast, accurate and flexible approach to predict, optimise and validate designs earlier in the design process. The new family includes 2013 versions of Autodesk Simulation Mechanical, Autodesk Simulation CFD, Autodesk Simulation Moldflow and serves as a comprehensive set of simulation software tools that are easy to integrate into each phase of the product development process.

Enhancements to the 2013 simulation portfolio include: • Autodesk Simulation allows for results to be imported into Autodesk Showcase to create high-quality photo realistic

renderings and presentations. • Autodesk Simulation CFD is up to a 34 times improvement in overall solve time, while Autodesk Inventor Fusion enhancements include the ability to create associative internal and external fluid volumes, the ability to detect interferences, and automatic model simplification. • Autodesk Simulation Moldflow and Autodesk Moldflow Insight WS Allows designers and manufacturers involved in injection molding simulation to address the trend towards lightweight designs. The cloudenabled tools provide access to computation power and enable the user to solve multiple scenarios in parallel, thereby reducing previous limitations and increasing productivity. “Articulinx is a small, yet innovative company. Our unique technology requires that we have the ability to run multiple simulation computations in parallel without being bogged down or losing productivity,” said Rick Lilly, R&D engineering manager at Articulinx. “We selected Autodesk Insight WS so that we could easily scale our Moldflow access, and it works amazingly well for us.” u




Delivering smarter water treatment services



eolia Water Solutions & Technologies and Appear, a mobile enterprise application platform specialist, announce that a new mobile cloud application has been rolled out for Veolia in Singapore.

Veolia has selected Appear IQ enterprise mobile platform to design, manage and support a new mobile application with the aims to track pick-ups and deliveries and ensure the ultimate quality of its Service Deionization (SDI) activities. Through its state-of-art and fully automatic regeneration center in Singapore, Veolia handles 25,000 cubic meters of resin every month, and offers a convenient, safe and economical method that ensures the sustainable supply of the highest quality water through a large range of exchangeable columns (Anion, Cation, Mixedbed, and Activated Carbon). This flexible SDI solution does not require system installation, chemical handling and maintenance. Laurent Besson, General Manager of Veolia Water Solutions & Technologies in Singapore, explains: “Keeping track of thousands of purification column units across the country is a challenging task for our engineers. With the Appear IQ mobile cloud approach, we successfully implemented a cost-effective solution covering all our needs, for a fraction of the cost of a dedicated turnkey solution.” The Appear IQ solution developed for Veolia includes several unique features such as intelligent data caching on the device - as network connectivity can be highly variable in the field, integration with Dropbox for cost-effective data sharing and a powerful cloudbased architecture for lower operational costs. Vincent Dollet, Chief Technical Officer of Appear, highlights the innovative design of the solution: “The solution facilitates

deployment of applications without the upfront cost and complexity of buying and managing the underlying hardware and software platforms. We provide support for application development, testing, deployment and hosting as well as backend integration, security, scalability and storage.” With better data capture and process tracking, Veolia is able to deliver the highest possible level of customer service while optimizing its field service operations. Veolia Water Solutions & Technologies (VWS), subsidiary of Veolia Water, is a leading design & build company and a specialised provider of technological solutions in water treatment. With over 9,658 employees in 57 countries, Veolia Water Solutions & Technologies recorded revenue of EU 2.15 billion Euros in 2010. Veolia Water, the water division of Veolia Environment, is the world leader in water and wastewater services. Specialised in outsourcing services for municipal authorities, as well as industrial and service companies, it is also one of the world’s major designers of technological solutions and constructor of facilities needed in water and wastewater services. With 96,260 employees in 67 countries, Veolia Water provides water service to 100 million people and wastewater service to 71 million. Its 2010 revenue amounted to EU 12.1 billion. Appear is a mobile software specialist with expertise in context-aware application infrastructure, enterprise mobile solutions and consumer locationbased services. Appear’s flagship product, Appear IQ, is a mobile

enterprise application platform (MEAP) used to mobilize field service applications. Appear IQ focuses on cost savings and customer service improvements by optimizing mobile workflows and making business critical mobile applications available to employees in real time on their mobile devices. Leading organisations such as MTR Stockholm Subway and Netherlands Railway have chosen the Appear IQ platform due to its compelling ROI, its proven reliability/adaptability in large scale deployments, and the possibility to extend its reach to consumer applications. Appear pioneered the field of context-aware software ten years ago. Their vision is to leverage user context in order to ensure mobile users have exactly the information they need, when and where they need it. Appear is constantly innovating around areas such as human-machine interfaces, machine-to-machine communication, context-aware computing and cross-platform mobile infrastructure, in order to deliver a software infrastructure able to support the next generation of smart devices and smart objects. More information is available at u




Unique ‘micro-loop mirror’ design may enhance integrated laser on silicon


ctive optical fibers with silicon photonic chips can carry a lot more information for data interconnect than copper cables. Silicon photonics can also be the material of choice for wiring ‘lab-on-a-chip’ devices — however, the construction of such devices is not without its challenges. One of the greatest difficulties is the implementation of lasers because silicon is a poor light emitter, but is commonly required for a photonic system on chip.

facets of the chip. These mirrors are not perfect and further reduce operation efficiency. To improve on the latter aspect, the researchers have now come up with a unique mirror design, known as a micro-loop mirror (MLM). Light emitted from one end of the laser is guided along the waveguide, around a narrow bend and is then directed back into the device (see image). The mirror at the other end of the device is still formed by the interface with air, so that laser radiation can exit the device. The MLM achieves a remarkable 98% reflection efficiency of light. Such low losses mean that the MLM laser is comparatively efficient. The successful demonstration of this technique is remarkable, considering that more than 30 fabrication steps are needed to fabricate the device, and in view of the fact that the MLM requires delicate and high-precision fabrication. The researchers aim to further enhance the laser, for example, by miniaturizing the device.

Scanning electron microscope image of the silicon-based micro-loop mirror. Light entering the waveguide from the left is guided around the loop and redirected back into the laser structure. The inset shows the laser spot photographed with an infrared camera.

Doris Keh-Ting Ng at the A*STAR Data Storage Institute and co-workers have now successfully fabricated a laser on top of a silicon chip1. The III-V semiconductor materials are bonded to silicon to provide optical gain and the laser has a unique mirror design that promises enhanced device operation compared to the conventional feedback mirrors based on device facets. “Integrated Si/III-V lasers can take

advantage of low-loss silicon waveguides, while addressing the problem of low light emission efficiency that silicon devices typically have,” says Ng. Attaching a Si/III-V laser on top of silicon requires challenging fabrication techniques, and device performances can suffer as a result. Furthermore, any laser requires mirrors to maintain lasing action. Typically, such designs rely on the interface between air and the semiconductor, that is, the

“Further improvements, for example, at the interface between the mirror and the lasing structure itself could lead to even better performance,” says Ng. “Laser with lower threshold and higher output power can possibly be achieved, leading to a potential solution to develop high-speed and lowcost optical communications and interconnects on electronics u chips.”

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The origin of organic magnets


theoretical model for the unusual occurrence of magnetism in organic molecules may help develop this class of material for electronics applications. Electrical engineers are starting to consider materials made from organic molecules—including those made from carbon atoms— as an intriguing alternative to the silicon and metals used currently in electronic devices, since they are easier and cheaper to produce. A Riken-led research team has now demonstrated the origin of magnetism in organic molecules1, a property that is rarely found in this class of material, but is vital if a full range of organic electronic devices is to be created. The permanent magnetic properties of materials such as iron stem from an intrinsic mechanism called ferromagnetism. Ferromagnetism in organic materials is rare because their atomic structure is fundamentally different from metals. One of the few examples identified to date is called TDAE-C60: a compound comprising spherical carbon cages attached to an organic molecule known as tetrakis-dimethylaminoethylene. Since its identification in 1991, many theoretical and experimental studies have provided some insight into the mechanism driving this unexpected ferromagnetism, but the explanation was not definitive. A full understanding would help

A compound comprising C60 (right), a spherical molecule of carbon atoms, and TDAE (left), tetrakis-dimethylamino-ethylene, is unusual because it can display magnetic behaviour at low temperatures.

materials scientists to develop more advanced magnetic materials in the future. “A precise model for organic magnetism could aid the design of high-density recording materials for use in nextgeneration memories,” says team member Hitoshi Yamaoka from the Riken SPring-8 Center, Harima. Materials scientists are particularly interested in understanding the electronic structure of TDAE-C60 and how this relates to its ferromagnetic properties. To this end, Yamaoka and his colleagues from research institutes across Japan studied this material using a powerful technique known as photoelectron spectroscopy (PES). They fired x-rays at a single crystal of TDAE-C60, and this radiation excited electrons in the crystal, which then escaped from the surface. The researchers measured the number and the kinetic energy

of these electrons from which they could infer information about the electronic structure. “From these experiments on a single crystal we could establish an exact theoretical model for organic magnetism,” explains Yamaoka. “We propose that the transfer of one electron from the TDAE to the C60 causes the magnetic properties of TDAE-C60.” The existence of the resulting positively charge TDAE state was also supported by the team’s theoretical calculations. With this thorough understanding of organic magnetism, the next step will be to apply the material to practical applications. “The problem with the TDAE-C60 organic magnet, however, is that the magnetism only appears at temperatures below 16 kelvin,” says Yamaoka. “The next step will be to raise this transition point.”u




Nanowires have superior electrical and mechanical properties


iniaturised pressure sensors are widely used in mechanical and biomedical applications, for example, in gauging fuel pressure in cars or in monitoring blood pressure in patients. Woo-Tae Park and co-workers at the A*STAR Institute of Microelectronics1 have now developed a nanowire-based sensor that is so sensitive it can detect even very low pressure changes.

Most miniaturised pressure sensors harness the intrinsic properties of piezoresistive materials. A structural change in such a material, induced for example by an external force, results in a complementary change in its electrical resistance. However, piezoresistive materials have two major limitations. Firstly, these materials are not particularly sensitive, which means that low pressures produce weak electronic signals. Secondly, these materials can generate a lot of electrical noise, which can mask the true measurement signal. An ideal transducer should have a high signal-to-noise ratio (SNR). Park and his co-workers have now used nanowires to create a pressure sensor with enhanced SNR properties. Previous research has shown that nanowires can exhibit high piezoresistive effects because of their small size. To take advantage of this, Park and his co-workers used state-of-the-art material

processing techniques to suspend two silicon nanowires between two electrodes on a silicon-oninsulator substrate. Each wire was a few hundred nanometers long and approximately 10 nanometers wide. They were covered in amorphous silicon which both protected them and acted as an electrical connection, referred to as the gate. The researchers attached to this a circular diaphragm: a twolayer membrane of silicon nitride and silicon dioxide. Any stress in the diaphragm was therefore transferred to the nanowire structure. The team characterised their sensor by passing a controlled stream of air across it. Ammeters measured the current flowing through the device as a known electrical potential was applied across the two electrodes. An additional voltage, the gate bias, was also applied between one of the electrodes and the gate. Park and his co-workers

demonstrated that they could achieve a four-fold increase in pressure sensitivity by reversing the direction of this gate bias. This, they believe, is a result of the bias voltage controlling the confinement of the electrons within the nanowire channels — a concept commonly employed in so-called field-effect transistors. An assessment of the device noise characteristics also showed significant improvements with the right choice of operating parameters. Park and his co-workers believe that the device provides a promising route for applications requiring miniaturized pressure sensors that use little power. u

HyIntensity fiber laser earns Product of the Year award


ypertherm has announced that its HyIntensity HFL015 Fiber Laser system was selected as the Product of the Year by readers of the NASA Tech Briefs’ bi-monthly, Photonics Tech Briefs. Half a dozen members of Hypertherm’s Fiber Laser team accepted the award this week from NASA Tech Briefs manager Edward Marecki, who drove up to New Hampshire to personally present the award.

NASA Tech Briefs began as a publication chronicling significant research at the space agency, and is read by nearly 200,000 members of the photonics engineering

community. Every year, readers vote the most significant new introductions for the industry for the Photonics Tech Briefs Readers’ Choice Product of the Year.

“It is exciting every time we receive an award, but to receive an award like this from engineers, who are undoubtedly exposed to breakthrough technology every day, is truly an honor,” said Douglas Shuda, marketing manager for Hypertherm’s HyIntensity Fiber Laser systems. Hypertherm’s HyIntensity HFL015 Fiber Laser system is a 1.5-kilowatt system notable because it was





electronica China and productronica China successful


lectronica China and productronica China welcomed 664 exhibitors from 19 countries in Shanghai. The number of exhibitors saw an increase of more than 38 percent compared to 2011. 41,847 visitors, 10 percent more than 2011, had a look on core technologies from renowned original leaders worldwide. The shows displayed the latest development of worldwide electronic industry and unveiled the future market opportunities.

Mr. Zhang ShuQing, Senior Vice President of MMI Shanghai said,” electronica China and productronica China always have its uniqueness to display the foremost technologies and solutions from leading companies such as Infineon, IR, Komax, muRata, TE connectivity and Vicor. We are also very happy to serve fast growing Chinese electronics industry.” electronica China and productronica China covered the whole spectrum of the electronics industry, including IC, passive components and manufacturing equipment. Philip F.W.Harting, Senior Vice President Connectivity & Networks of Harting said about progress of the show: “I’m very satisfied with the fair. The number of exhibitors has increased dramatically from last year. This is a very positive development. And also the numbers of visitors were very positive. The Chinese market is becoming more and more important for us, because China is currently oriented on innovation.”


Herve Branquart, Director Automotive solutions of On semiconductor BVBA commented, “Just a few minutes after the show’s kick-off, many of our key customers came to our booth. This show was getting more and more popular and there were a lot of engineers visiting us. We also met visitors from Beijing. This is a good sign that Shanghai could attract visitors from so far away. electronica China starts to be a well-known brand, and people can see here most key players from China.” At electronica China, visitors could find a range of global leaders from IC, passive component and power segment such as Bourns, Infineon, IR, KEMET, Murata, Omron, Panasonic, Recom, ROHM, STMicroelectronics,TDK, Vicor and many

the first fully-integrated fiber laser system designed specifically for cutting applications, including marking and fine-feature cutting. The systems have since been joined by two more HyIntensity Fiber Laser systems—the two-kilowatt HFL020 and the one-kilowatt HFL010. Visitors can learn more about all three HyIntensity systems by visiting www. Hypertherm designs and manufactures advanced cutting systems for use in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes handheld and mechanized plasma and laser systems, consumables, as well as CNC motion and height controls and nesting software. Hypertherm systems are trusted for performance and reliability that results in increased productivity and profitability for tens of thousands of businesses. The New Hampshire based company’s reputation for metal cutting innovation dates back more than 40

The Hypertherm team receiving the award

years, to 1968, with Hypertherm’s invention of water injection plasma cutting. The company, consistently named one of the best places to work in America, has more than 1,200 associates along with operations and partner representation worldwide.




more. The connector segment - electronica China’s largest segment - was represented by European and American connector manufacturers such as FCI, Harting, Molex , PHOENIX CONTACT and TE Connectivity. Japanese players like HRS, JAE, Misumi all assembled together to serve the fast-growing Chinese engineering needs. Another highlight was the automotive segment. Leading car manufacturers and tier one players such as BOSCH , Changan, Chery, Delphi , Dongfeng Motor, GAEI of GAC and SAIC shared their foremost research findings with engineers and buyers in automotive electronics. Meanwhile experts from tier two players including Atmel, dSpace, Elmos, ETAS, Fairchild, Freescale, Fujitsu, Horiba,ICS, Infineon, IR, KPIT Cummins, Melexis, NXP, Vector and many more presented their innovations into the future of automotive electronics. At productronica China, cable processing and green manufacturing were the main themes. Industry leaders such as JAM, KODERA, Komax, PS, Schaefer, ShinMaywa, Schleuniger and many more had formed the most competitive cable processing segment. Green manufacturing concept was promoted by EMS, dispensing, soldering and tool leaders. 

Meanwhile, visitors also attended two further innovation forums at productronica China on wire harness and green manufacturing. The next electronica China and productronica China in Shanghai will be held on March 19-21, 2013. u

Know-how for global thinkers and practitioners A total of 132 speeches attracted over 13,000 visitors at twelve intriguing “Innovation Forums”. Visionary experts and leading companies were invited to share the latest technologies, analysis and comments on the industry development according to “the 12th Five Year plan” in China focusing on the energy saving and environmental protection. YC Yang, Director of Business Development FAE ASIA & Computer / Peripherals of Vishay China shared as a speaker of the International Power Electronics Innovation Forum his observation: “electronica China and productronica China were very successful this year. I felt that our technical and designing advantages were further promoted and our goal has been well achieved.” At electronica China there were ten innovation forums covering automotive electronics and testing, new energy vehicle, power, medical electronics, LED, telecommunications, portable technology, embedded systems and connector. Every year International Automotive Electronics and Testing Innovation Forums are regarded as topclass technical events. Experts from automobile manufacturers, tier one and tier two suppliers as well as scholars featured around 40 speeches on the critical issues including powertrain, safety, ITS, infotainment and testing of both traditional and electric vehicles.




Automation brings everything to


ew products, which are to be increasingly smaller, more powerful and– despite that – more inexpensive are the great production engineering challenges in the electrical and electronics industry.

Many solutions will demonstrate that automation is the key to fulfilling these requirements, and these solutions will be shown at the international trade fair AUTOMATICA 22, which will take place on the grounds of the New Munich Trade Fair Centre from 22 to 25 May 2012. Electrical and electronic installations are increasingly penetrating more areas of life with tablet computers and smart phones, with continually new, intelligent household helpers, with changed forms of energy generation such as photovoltaics and with electromobility. The success of products normally depends on the price and quality. The optimum of both criteria can only be achieved with cleverly designed automation. Armin Wittmann, Exhibition

Director of AUTOMATICA also emphasised: “Automation plays an extremely important role in the electrical industry with its demanding installation tasks. The last AUTOMATICA in 2010 also proved this, at which almost one-fourth of the visitors were from the electrical industry.” The need for electrical engineering is going to grow further, as can be seen from current trends. The stimuli from innovations thanks to touchscreens, flatscreens and 3D displays is creating increasingly higher turnover for the industry. The desire for less energy consumption and miniaturization of devices is also generating higher demand. Armin Wittmann is convinced: The answer to these challenges can only be increased automation of production. Practical solutions for this can be found at AUTOMATICA 2012.”

Fast, intelligent and accurate positioning Assembly and handling technology, robotics and machine vision – focal points of AUTOMATICA – are faced with different tasks in the electrical industry on one hand, and on the other hand they are growing together more and more. In assembly and handling technology, for example, fast but at the same time accurate positioning is one of the main tasks. This task can be fulfilled using handling systems, in which a machine

vision system with integrated CoDeSys-PLC steers the electrical axes quickly to the targeted spot, for example. This is a solution that provides advantages when you have to home in on many test spots quickly and accurately in checking components. The camera detects which test spots are unoccupied and can be populated. Solutions for increased flexibility and time-saving are the focus when it is a matter of gripping several parts simultaneously and placing them from one tray or blister into another with a different reference grid. Pick-and-place systems can help here, in which the distance between grippers is variable. The trend is generally to assembly and handling systems that fulfil highly complex tasks, but still cause the least amount of work for users. Manufacturers are correspondingly in demand that can provide turnkey systems. They provide complete solutions composed of hardware and software and handle installation, so that the user can concentrate completely on his actual core competence.

Flexibility thanks to simplified robot programming Robotics is reacting to the requirement for increased flexibility, for example, in new developments of control software. One trend is going in the direction of simple programming. Another trend is to simulation options, which are integrated increasingly into the programming environment. As a result, users can already test workflows virtually before operation start-up. The pace of work can be increased thanks to increasingly




ogether in the electrical industry Production in Germany – How Does Automation Help” will take place on specifically on this topic starting from 3:15 p.m. on 23 May. Among others, the speakers will be Dr. Andreas Gutsch, Project Coordinator Competence E, Karlsruhe Institute for Technology KIT), and Dr. Eric Maiser, head of the battery production industry group in the VDMA E-Motive forum. 3D inspection is becoming more efficient and easier to operate

lighter robots with optimised weight distribution without adversely affecting the accuracy of positioning or the path behaviour. If visual component inspection is required but not possible due to stationary systems, then robotics and machine vision work together, for example, in that a robot with an industrial camera moves to the position of the component. A completely new field, in which the robot suppliers as well as companies in assembly and handling technology first have to familiarize themselves, is battery production for electric vehicles and storing renewable energies, because lithium-ion cells were not previously combined into such large units as for electric drives. Direct voltages between 200 and 400 volts are created, which require new safety mechanisms, including in production. Despite this, it is especially important here to manufacture larges series at low costs, because the battery is the most expensive single component in an electric car, and acceptance of overall electromobility depends on its price. Especially with respect to batteries and power

electronics for cars and energy supply, perfect quality assessment and perfect backtracking must be ensured in addition to cost reductions. Because this area represents a new market segment for automation specialists, AUTOMATICA is promoting progress in battery production with its special exhibition “Battery Production and Automation Technology”. It is being is being held in collaboration with the German Engineering Federation (VDMA), special Productronic Division, Rhineland-Westphalia Technical University (RWTH) Aachen, the Fraunhofer Institute for Production Technology and leading companies from battery mechanical engineering and will take place in Hall A2. The special exhibition will show the complete production environment of batteries: from coating electrode materials all the way to complete modules. Current trends will be presented and their feasibility in actual practice will be discussed in the AUTOMATICA Forum in Hall B1. A panel discussion about “Battery

Machine vision as an all-round technology has relatively few difficulties with the special requirements of electrical and electronics production. After all, comprehensive modules of devices and techniques are available to put together customised solutions. These are already being used very often. For example, numerous tasks have already been solved using machine vision systems from visual inspection of simple electrical components such as cable and plugs all the way to finely structured solar cells and complex products such as printed circuit board assemblies. The advantages of 3D machine vision are moving increasingly into the forefront of the electrical industry. This is not the least due to the fact that the technological requirements have developed further quickly and an increasing number of solutions are available, which combine speed, precision and simple operation. Most products are based on procedures such as laser triangulation, structured light projection or stereo vision. Their advantage is their robustness and precision. In the meantime, solutions are available for inspection of both stationary and moving components. u





Global solvent market

he market experts from Ceresana forecast the global solvent market to earn revenues of about US$33 billion in 2019. Especially the dynamic economic development in emerging countries like China, India, Brazil, or Russia will continue to boost the demand for solvents.

The market research institute expects worldwide solvent consumption to increase at an average annual rate of 2.5% over the next years. Accordingly, the growth rate seen during past eight years will be surpassed.

Winners and Losers The most frequently used solvents are alcohols, such as ethanol, n-butanol, isopropanol, and methanol. About 6.4 million tonnes of alcohol-based solvents were utilized worldwide in 2011. Demand for ethanol and ethers is projected to rise at an aboveaverage growth rate of more than 3% per year between 2011 and 2019. Demand for halogenated solvents is especially declining in Western Europe and North America. Also aromatics and pure hydrocarbons will continue their downward trend. Amongst other things, the most comprehensive report worldwide analyzes how the use of solvents will develop in individual markets. Most important buyers include producers of paints and coatings. They are followed by a considerable distance by printing ink manufacturers: The printing ink industry accounted for somewhat more than 8% of global solvent demand in 2011. The pharmaceutical industry came in third place, followed by cosmetics and adhesives. Furthermore, solvents are used in a broad variety of other industrial applications, for example in chemical manufacturing processes, cooling circuits, chemical dry-cleaning, and as deicing agents. The adhesive industry is expected to record the strongest growth in solvent use. Besides private

consumption, adhesives are increasingly used in industrial applications. They allow for easy, safe and flexible connections, which are usually inexpensive and light-weight. Emerging and developing countries stimulating growth With a roughly 39% share of global consumption, Asia-Pacific is the largest solvent outlet, followed by North America and Western Europe. Asian countries will further increase their shares in the global solvent market – mainly at the expense of saturated industrial countries. Many emerging and developing countries benefit from an increasing solvent demand – above all in the paint, coating, and adhesive industries. For example, solvent demand in the paint & coating industry is predicted to increase by 2.9% per year until 2019. Mainly emerging and developing countries will boost this trend: Rising prosperity in these countries will result in an increasing per-capita consumption of paints.

Environmental awareness influencing market The market for solvents is considerably influenced by legal regulations and the growing environmental awareness of end-consumers. Changes targeted at reducing the environmental impact of solvents will focus on both production methods and further substitutions of specific solvent types. The manufacture of solvents from renewable resources reduces the dependence on petroleum and improves the CO2 balance. Western Europe and North America will continue to pursue

their goal of reducing emissions of VOCs (volatile organic compounds). The shifting from solvent-based paints to waterbased or other solvent-free paints is negatively impacting the solvent demand in these regions. In the other regions, environmental protection is far less important. However, this is going to change in the long term. The Study in Brief: Chapter 1 is a short and concise overview of the most important information on the different types of solvents, their production, characteristics, raw materials, and application areas as well as legal situations. Chapter 2 is a presentation and analysis of the global solvent market – including forecasts up to 2019: Demand and revenues are given for each world region. Chapter 3 provides detailed data on solvent demand and revenues in 14 countries. In addition, this chapter provides in-depth information on the demand for solvents in the paint & coating, printing ink, adhesive, cosmetics, and pharmaceutical industries as well as in other application areas. Chapter 4 offers comprehensive analyses on the solvent demand in the different application areas. The data on demand development is split by Western Europe, Eastern Europe, North America, South America, Asia-Pacific, the Middle East, and Africa. Continues page 24


23 Continues page 26




Pakistan implements ‘Negative List’ for India trade


n Islamabad’s latest step toward granting New Delhi most favoured nation status by year’s end, Pakistani officials announced that India will now be able to export all products into Pakistan, with the exception of a ‘negative list’ of 1,200 items.

most favoured nation status in 1996, Pakistan had previously refused to grant MFN status to its neighbour due to the countries’ disagreements over the Kashmir region.

Unsteady past trade relationship After years of trade tensions, both sides have been trying to foster better trade relations in recent months as a way of improving political and economic ties. “Flourishing trade is the biggest confidence building measure among any two nations,” India’s Trade Minister Anand Sharma said earlier this month.

India’s Trade Minister Anand Sharma.

The Statutory Regulatory Order issued by Pakistan’s Commerce Ministry on Wednesday 21 March indicates that Pakistan will now be able to import over 6,800 items from India under the new policy. Previously, Pakistan traded with India under a ‘positive list’ structure that allowed imports of fewer than 2,000 items. From page 22

The move follows Islamabad’s landmark announcement last year that it was planning to grant its neighbour with most favoured nation (MFN) status, a WTO requirement that mandates all members to treat their trading partners equally (see Bridges Weekly, 9 November 2011). While India granted Pakistan

Global solvent market

Chapter 5 provides detailed analyses on the demand and revenues of individual groups of solvents, such as alcohols, ketones, esters, ethers, aromatics, pure hydrocarbons, and other solvents. The following solvent types have been analyzed separately: ethanol, n-butanol, isopropanol and methanol, acetone and methyl ethyl ketone as well as toluene. Chapter 6 provides profiles of the largest solvent manufacturers – clearly arranged according to

contact details, turnover, profit, product range, production sites, profile summary, and product base. In-depth profiles on 335 manufacturers include Arkema S.A., BASF SE, BP PLC, Daicel Chemical Industries, Ltd., Eni S.p.A., Exxon Mobil Corporation, JX Holdings, Inc., LyondellBasell Industries N.V., Nippon Refine Co., Ltd., Petróleo Brasileiro S.A. (Petrobras), Royal Dutch Shell PLC, Sinopec Corp., SK Innovation Co., Ltd., The Dow Chemical Company, and Total SA. u

“Pakistan is moving in the right direction in terms of bringing economic content into the political relationship,” India’s Foreign Minister S.M. Krishna told reporters in New Delhi. “This would certainly help strengthen our bilateral ties.” The two sides saw another breakthrough in trade relations in recent months, when India dropped its long-standing objections to an EU request for a WTO waiver that would allow Brussels to temporarily grant trade concessions to Pakistan to help the country’s economy recover from the floods in 2010. (See Bridges Weekly, 8 February 2012) Bilateral trade between the two countries equalled approximately US$2.7 billion though March 2011, though indirect trade via other Asian countries is estimated to be much higher. Meanwhile, India’s trade with another Asian neighbour - China - stands at more than US$60 billion annually. According to India’s Associated Chambers of Commerce and Industry, the move to normalise trade relations could potentially increase cross-border trade by over US$6 billion by 2014. u




Taking steps towards cleaner energy


brilliant technology that converts the kinetic energy from footsteps into lowenergy electricity has been developed by a graduate in the United Kingdom. The technology can be used to power anything from lighting and signage - to mobile phones and iPads, with any surplus stored in batteries. Pavegen Systems is a “cleantech” business founded by Loughborough University industrial design graduate Laurence Kemball-Cook in 2009. It recently negotiated its first major external funding, winning investment from partners including Renaissance Capital Partners and a syndicate from London Business Angels. The company has already won a contract for an installation at Westfield’s new headline 2012 Olympic site in Stratford, east London - the largest urban shopping centre in Europe - where its energy-conversion tiles will be scattered along the central crossing between the shopping mall and the Olympic stadium. The recently opened mall expects an estimated 30 million customers in its first year - “That should be enough feet to power about half its [the mall’s] outdoor lighting needs,” said Kemball-Cook, Pavegen’s chief executive officer. Pavegen’s concept has won a string of awards including the “Big Idea” category at the Observer newspaper’s 2011 Ethical Awards. It could be particularly attractive where connection to an electricity distribution grid is not feasible or where there is a special requirement for a low-carbon power source. A standard Pavegen tile contains a central luminaire that glows when walked over; the harvested energy

can also be used to power lowenergy pedestrian lighting, wayfinding signage and advertising, especially in high-footfall urban environments. When stepped on, the flexible top surface of the tile, made from 100 per cent recycled rubber, is depressed by about five millimetres - not much but enough to harvest significant amounts of kinetic energy, said Kemball-Cook. In standard form, some five per cent of the electricity produced is used to light up the central LED unit, and 95 per cent can be battery-stored for up to three days. These proportions can be varied in other applications driving other forms of low-energy lighting. Although each step produces only enough electricity to keep an LED-powered street lamp lit for 30 seconds, Kemball-Cook described the tiles as a real-world “crowd-sourcing” application, in the way they harness small contributions from a large number of individuals. “For example, we recently came back from a big outdoor festival where we got over 250,000 footsteps - enough to charge 1,000 mobile phones,” he added. “Our customers are deriving value from Pavegen’s installations in a number of ways. As well as the energy generated, branded tiles are also proving a popular marketing tool.” The company also plans to exploit

its patented technology on roads and is developing a prototype system that will harvest the energy from trucks and cars on motorways and in cities to power street furniture such as lighting and LED information boards. “The additional funding comes at a crucial time as we scale-up production and work with our corporate partners to supply their sites with the capacity to generate renewable energy and communicate their commitment to the environment,” said Laurence Kemball-Cook. “It wasn’t long ago that I was learning all about business angels in enterprise lectures at Loughborough University, and I’m delighted that we have closed such a significant deal.” With a manufacturing site near Brighton and an imminent move to larger offices in central London, Pavegen is expanding its executive team to deliver the kinetic flooring technology to a number of key clients and markets. Kemball-Cook’s business idea was supported in its infancy through the Student & Graduate Enterprise at Loughborough University and he was presented with a Graduate Enterprise Award in 2010. Student enterprise manager Marina Pickles said: “129 business ventures were launched by our students and graduates in 2009/2010. Pavegen is a shining example of graduate enterprise.” u



case study

Fiber laser makes the cut


utting technologies are continuously evolving, and one of the most significant recent advances in the field is fiber laser. Fiber laser technology has been available for only about three to five years; so many companies are still getting acquainted with it, and are just beginning to appreciate the differences between fiber and the more ‘traditional’ CO2 laser.

Of the key thermal cutting methods involving oxyfuel, plasma, and laser technologies, laser cutting offers the best cut quality, especially for fine features and holes that have less than a 1:1 diameter-to-thickness ratio. This makes laser the most appropriate method for stringent precision cutting needs in any industry. And within the laser cutting category, fiber laser is garnering a lot of attention because it offers the speed and cut quality of CO2 laser, but costs significantly less to maintain and operate. This makes fiber laser so promising as a cutting technology that many experts believe it will soon overtake other laser systems.

Key advantages of fiber cutting In CO2 laser, CO2 gas is involved in the transmission of the beam. In fiber laser, however, transmission works through diodes and fiber cables. Instead of relying on mirrors to transfer the light beam, fiber laser systems rely on multiple solid state pump diodes to generate a laser beam, which is then transmitted through a flexible fiber cable to the laser cutting head. This offers a number of benefits, the first being table size. Unlike gas lasers, where mirrors must be a set distance apart, there is no size restriction for fiber laser. It is even possible to install a fiber laser cone right next to a plasma cutting head on a plasma cutting table, which wouldn’t be an option for CO2 laser. Also, the ability to bend or coil fiber means

that the systems are relatively compact when compared with gas systems of comparable power. But perhaps the most important and significant benefit of fiber laser is its energy efficiency. Because of fiber laser’s completely solid state digital, monolithic design, fiber lasers have higher wall-plug efficiency than CO2 laser. For every unit of power that passes through a CO2 cutting system, it’s common that about eight to 10 percent is actually used.

Fiber laser is garnering a lot of attention because it offers the speed and cut quality of CO2 laser, but costs significantly less to maintain and operate.

Whereas for fiber laser, users can expect much higher power efficiency figures of between 25 to 30 percent. In other words, a fiber system consumes about 3 to 5 times less energy overall than CO2 versions, making it up to 86% more energy efficient.

laser systems require regular maintenance; mirrors need to be maintained and calibrated, and resonators need to be replaced. Fiber laser solutions on the other hand hardly require any maintenance, if any at all. CO2 laser cutting systems require CO2 lasing gas, which can collect impurities that need to be cleaned out regularly.

Fiber lasers also feature positive light properties such as a shorter wavelength, which improves beam absorption into the material being cut, and enables the cutting of non-conductive metals such as brass and copper. A more concentrated light source creates a smaller spot and longer depth of focus so fiber laser can cut thin materials fast and medium thickness materials more efficiently. Up to 6mm (1/4”), a 1.5kW fiber laser has cut speed equivalent to a 3kW CO2 laser.

This can cost at least US$20,000 annually for a multi-kilowatt CO2 laser system. In addition, many CO2 cutting formats use high-velocity turbines to move around the lasing gas, and these turbines will require maintenance and eventual overhauling. And lastly, because fiber solutions are more compact and have a smaller footprint compared to CO2 systems, there are less cooling requirements, and energy consumption is significantly reduced.

This translates to increased output, yet with lower business costs because the operating costs for fiber cutting are lower than that of traditional CO2 systems.

The combination of low maintenance and higher energy efficiency translates to the fact that fiber laser has a smaller carbon footprint, and is therefore more eco-friendly than CO2 laser cutting.

There’s also the issue of maintenance. Traditional gas


case study What to consider when adopting fiber laser There are a few important things to take into account when adopting fiber laser. Eye safety is the first. The light from a fiber laser system is at a wavelength that is hazardous to the eye, so good eye protection is a must. Comprehensive training for proper system operation and safety is highly recommended as well, since the technology has only been around for five years or less. Many operators do not have much experience cutting with fiber, so this lack of experience needs to be filled by some good initial training in controlling fiber cutting systems. Another consideration is the material to be cut. While fiber laser is excellent at cutting most materials, it cannot be used to cut acrylic or polycarbonate, and can only cut wood or fabric in limited applications. Also, the thickness of material to be cut is an important factor in deciding when to use fiber laser. Thicker materials will require more power to cut, and in those instances, laser cutting may be less attractive of an option. This is where the ability to install fiber laser right next to a plasma cutting head may be well utilised. Operators can cut thinner material requiring tight tolerances with fiber laser, before quickly and easily switching to plasma. It is even possible to cut the same part with two different cutting methods. For example, an operator can choose to cut the outside of a part with plasma, and then any inside shapes with fiber laser. One good final consideration is to assess which components are necessary for a comprehensive laser cutting set-up, and how to acquire each part. A system that comes complete with the laser power source, gas console, laser cutting head and height control, the computer-numeric control (CNC) and cutting

control programmes will offer the valuable benefit of an allin-one off-the-shelf solution. With a comprehensive solution, the process of purchasing and integrating the fiber laser is much less complicated. Consider shortlisting a system that was optimised specifically for cutting, where cut parameters were identified in advance so that cutting can begin as soon as power is supplied.

Conclusion In summary, fiber laser offers many unique benefits over the traditional CO2 laser cutting systems such as higher energy efficiency, lower maintenance costs, and a more compact solution - but it may not be right for everybody. It is important to consider safety and training, the type and thickness of material most often cut, as well as the cut quality needed, before choosing a comprehensive laser solution. Yet as much as laser cutting is able to offer multiple benefits to companies today, it is still a relatively new technology that is rapidly evolving. This only means that laser will likely see continued improvements to meet its true


potential in the years to come, so companies can look forward to cutting even faster and better with the fiber laser technology of tomorrow. NextSTEP Visit: Hypertherm designs and manufactures advanced metal cutting systems for use in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes handheld and mechanised plasma and laser systems, consumables, as well as CNC motion and height controls and cutting software. Hypertherm systems are trusted for performance and reliability that results in increased productivity and profitability for tens of thousands of businesses. The New Hampshire based company’s reputation for metal cutting innovation dates back more than 40 years, to 1968, with Hypertherm’s invention of water injection plasma cutting. The company, consistently named one of the best places to work in America, has more than 1,000 associates along with operations and partner representation worldwide. u

Advantages of Thermal Cutting Processes Oxyfuel

• For metal plates thicker than 75mm (3”) • Suitable for carbon steel; not effective on stainless steel or aluminium


• Suitable for cutting thickness from between gauge to 75mm (3”) • Preferred over CO2 and fiber laser cutting for materials >1/4” (6mm) • Able to cut a wide range of material thicknesses and metal types, including ferrous and non-ferrous material, and can be used on rusted, painted, or grated metal

CO2 Laser

• Excellent cut quality and productivity on material ranging from gauge to 12mm (1/2”) thickness • Cuts well for fine features on thin plate of around 6mm (1/4”) • High-powered systems enable cutting a broad thickness range with good tolerance

Fiber Laser

• Best cut quality with highest energy efficiency on material less than 6mm (1/4”) • Good for fine features on thin plate < 6mm (1/4”) • Better cut quality than plasma on holes with less than a 1:1 diameter to thickness ratio • Lower operating and maintenance costs compared to CO2 laser; 86% more energy efficient than CO2 laser





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Faster computational methods of next-generation electronic systems


he overall performance of modern computers and communications networks is dependent on the speed of electronic components, such as transistors and optical switches, as well as the quality of the wire network that powers and relays signals between these electronic components.

Power and signal integrity are two important parameters for gauging the quality of a wire network, but simulating these parameters for next-generation electronic systems can take a considerable amount of time, particularly when there is a large number of components involved. Zaw Zaw Oo at the A*STAR Institute for High Performance Computing and co-workers1 have now significantly decreased the amount of computer time needed by developing a modelling technique that is much more efficient. In general, there are two different approaches to simulating power and signal integrity of a wire network. One approach is to use exact equations to describe the power and supply networks. This approach is computationally efficient, but the exact equations are difficult to derive for complex networks â&#x20AC;&#x201D; for example, those that involve irregularly-shaped ground planes. The other approach is to use numerical methods to describe these complex networks. However, this approach not only requires considerable CPU time

and memory, but also becomes unworkable for very large networks. The researchers therefore used a hybrid approach to combine the benefits of analytical and computational models. They had previously developed a hybrid model capable of describing the power networks in multi-layer circuit boards. In their present work, they extended this model to include the signaling network, as well as loads attached to the circuit board.

Oo and colleagues tested their model on a case consisting of a multilayer circuit board measuring 35 mm by 30 mm, which included multiple ground plates, signal traces and vias connecting different layers, and capacitors decoupling different power supply circuits. The reaction of the circuit board to input signals with frequencies up to 20 GHz was calculated using both their new hybrid model, and a numerical finite element model. While the results matched well over the entire frequency range, the new hybrid model required only 48 seconds of CPU time and 0.71 Mb of computer memory to run, compared to 1960 seconds and 74.2 Mb for the finite element approach. u

The researchers considered circuit boards which include one or more pairs of parallel plates that serve as electrical grounds, or deliver power. Their model treats each pair of plates as an individual circuit, in which signal and power flow can be calculated using parallelplate and transmission line theory. Once each of the individual network have been characterised, they are combined together to Wire traces delivering power and routing signals describe the entire, original among active components in printed circuit boards circuit board. can limit performance if not designed properly.




Virtual engineering offers leaner, faster manufacturing


n today’s fast-moving business environment, the ability to change automated assembly and production systems quickly and efficiently, at lowest cost and risk across multiple global locations, is vital.

Now, innovative computer experts have created a software tool with the potential to save a wide variety of manufacturers many millions every year. Academics at Loughborough University, England have developed a virtual-reality engineering environment that offers manufacturers a faster and more focused tool for the creation of their automation systems - from electronic goods assembly to the food and packaging industries. The Business Driven Automation (BDA) system has been made in the automotive sector in partnership with the Ford Motor Company, ThyssenKrupp System Engineering and Schneider Electric. BDA provides a virtual reality (VR) engineering environment for manufacturing companies to enable them to validate and change automated assembly and production systems quickly and efficiently, at minimal cost/risk across multiple global locations. The approach is highly generic and applicable to almost all industrial automation sectors. Today’s automation systems are difficult and complex to service, reconfigure and integrate. Moving away from these traditional, slower practices, the new software engineering tool enables rapid configuration and modification of factory automation systems. At Loughborough’s Innovative Manufacturing & Construction Research Centre (IMCRC), the project’s principal investigator Professor Rob Harrison said: “We have developed innovative software to give a quick, accurate, virtual 3D prototype view of

assembly machine behaviour before they are physically built. We aim to make these tools much easier and faster, and we want to see them used throughout the machine lifecycle, not just at initial design and build.” Virtual design tools help Ford engineers to improve the design aesthetics, engineering and ergonomics of its cars and trucks. Speaking for Ford’s manufacturing engineering department, Les Lee, said: “Collaboration offers opportunities for reduced costs, faster time-to-market, improved customer satisfaction, strategic thinking and quicker problem solving. The IMCRC BDA project is a fine example where measurable benefit is being delivered with shared knowledge utilisation and the creation of innovative products.” Ford is a global automotive industry leader that manufactures or distributes automobiles across six continents. With about 200,000 employees and 90 plants worldwide, the company’s automotive brands include Ford, Lincoln, Mercury and Volvo. The commercialisation of the IMCRC project received funding support from the UK’s Engineering & Physical Sciences Research Council (EPSRC) through the knowledge transfer account awarded to Loughborough University. It has also received support from the intellectual property commercialisation team that is part of the university’s enterprise office. Launched in 2001, the purpose of the EPSRC-funded Innovative Manufacturing Research Centres (IMRCs) was

to provide a focal point for research excellence, collaborate actively with UK businesses and facilitate knowledge transfer and exploitation of research results; making a vital collective contribution to the future of the UK economy and society. Loughborough is one of the country’s leading universities, with an international reputation for serious research, excellence in teaching, strong links with industry, and unrivalled achievement in sport and its underpinning academic disciplines. It is consistently ranked in the top 20 of UK universities in national newspaper league tables. Loughborough University’s IMCRC is the largest of the EPSRC-funded centres, in terms of the number of academics, size of grant and breadth of work undertaken. The centre covers a range of research issues, from design, processes and materials to business and management and includes manufacturing, construction, systems engineering and computer science. A main advantage of the centre is the cross-disciplinary research, as many projects bring together academics from different areas to investigate a problem. The purpose of the centre is to provide a focal point for research excellence, to actively collaborate with UK businesses and facilitate knowledge transfer and exploitation of research results, making a vital collective contribution to the future of the UK economy and society.







business news

Hypertherm retires MTC brand name


ypertherm, a U.S.based manufacturer of advanced cutting systems, will begin marketing its ProNest, TurboNest, NestMaster, and Design2Fab software under the Hypertherm name from today. The change reflects Hypertherm’s commitment to delivering innovative, user-friendly cutting solutions that help fabricators, jobs shops, and other similar businesses become more profitable. In addition, it ensures customers receive even greater performance benefits from Hypertherm’s line of integrated metal cutting solutions. Hypertherm software products will deliver the same built-in process expertise, best-in-class ease-of-use, and outstanding technical support as before, and these products will continue to support a number of different cutting processes including plasma, laser, oxyfuel, and waterjet. The software can be used to program traditional X-Y machines as well as combination punch, plate processing, reposition,

“This rebranding will not change the way current and future customers receive technical support and product updates. Endusers can continue to contact their existing representative for any of these needs.”

contour bevel, and rotary pipe / tube machines. “Though MTC has been a part of the Hypertherm family for more than three years now, we are excited by this name change. It cements Hypertherm’s commitment to nesting software, and continued advanced research and development in the CAM software arena,” said Derek Weston, product marketing manager for Hypertherm’s line of software, who was previously with MTC.

Hypertherm designs and manufactures advanced cutting systems for use in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes handheld and mechanized plasma and laser systems, consumables, as well as CNC motion and height controls and CAM cutting software. Hypertherm systems are trusted for performance and reliability that results in increased productivity and profitability for tens of thousands of businesses. The New Hampshire based company’s reputation for metal cutting innovation dates back more than 40 years, to 1968, with Hypertherm’s invention of water injection plasma cutting. The associate-owned company, consistently named one of the best places to work in America, has more than 1,200 associates along with operations and partner representation worldwide. u

Joint efforts to set up transportation research centre


he signing of a tripartite Memorandum of Understanding (MoU) has paved the way for The Hong Kong Polytechnic University (PolyU) to work together with the King Mongkut’s Institute

of Technology Ladkrabang (KMITL) and the Expressway Authority of Thailand (EXAT) on the establishment of a Research Centre on Transportation Technology and Railway Engineering.

The signing was witnessed by Dr Sakda Panwai from the Director’s Office of Expressway System Engineering Research and Development and Professor Philip Chan, PolyU Deputy President and Provost. u







Indonesia Oil and Gas Expo (IGEX) 2012

11-13 April


ChinaPlas 2012 –The 26th International Exhibition on Plastics and Rubber Industries

18 April 2012



18-20 April


4th Annual Global CSR Summit

19-20 April


EMEX 2012

1-3 May 2012

Auckland, New Zealand

Buildex Kenya

5 May 2012


China Aviation Manufacturing Summit 2012

8 May


Vietnam Manufacturing Expo

24 May


International Conference on Production, Energy and Reliability (ICPER 2012)

12 June

Kuala Lumpur

International Conference on Advances in Manufacturing Technology

June 15 2012


Manufacturing Expo 2012

21 June 2012


InterPLAS Thailand 2012

21 June 2012


InterMold Thailand 2012

21 June 2012


Automotive Manufacturing 2012

21 June 2012


Factory Automation 2012

21 June 2012


Fluid Power 2012

21 June 2012


Industrial Energy Efficiency 2012

21 June 2012


Industrial Components & Subcontracting 2012

21 June 2012


Fluid Power

21-24 June


International Manufacturing Technology Show

10-15 September


Medical Manufacturing Asia

12 September 2012 Singapore

Asia Manufacturing Strategies Summit 2012

15-16 October


Medical Fair Asia

12-14 Sep 2012

Suntec Singapore

Medical Manufacturing Asia 2012

12-14 September

Suntec Singapore

OS + H Asia 2012

12-14 Sep 2012

Suntec Singapore

IEW International Energy Week

16 18 Oct 2012

Kuching, Borneo




Metallurgical Corporatio


etallurgical Corporation of China Ltd. (“MCC” or the “Company”, HKSE: 1618) published its 2011 annual results announcement, which sets out that newlysigned contract value of the Company amounted to RMB227.9 billion, a year-on-year increase of 4.3%; operating revenue of the Company amounted to RMB229.7 billion, a yearon-year increase of 11.3%.

However, due to the continuous loss of MCC Huludao Nonferrous Metals Group Co., Ltd., net profit of the Company was RMB3.71 billion, a year-on-year decrease of 33.4%; net profit attributable to equity holders of the Company amounted to RMB4.24 billion, a year-on-year decrease of 20.3%. Although the overall profitability of the Company curtailed slightly in 2011, its traditional construction business still recorded a significant growth in profit. • Newly-signed contract value of the Company amounted to RMB227.9 billion, a year-onyear increase of 4.3%; • Operating revenue of the Company amounted to RMB230.2 billion, a year-onyear increase of 11.3%; • Due to the continuous loss of MCC Huludao Nonferrous Metals Group Co., Ltd., net profit of the Company was RMB3.71 billion, a year-on-year decrease of 33.4%; • Although the overall profitability of the Company curtailed slightly in 2011, its traditional construction business still recorded a significant growth in profit. MCC primarily engaged in engineering and construction, equipment manufacturing, resources development and property development with diversified business across a number of industries and countries. In 2011:

1. Enhanced comprehensive strength In 2011, the Company further

enhanced its comprehensive strength and ranked no. 297 among Fortune 500 companies in “Fortune” magazine published in 2011, up 18 places, ranked no. 7 in the “225 Global Largest Contractors” by “Engineering News Record” (ENR), up one spot over last year. As a company principally engaging in traditional engineering and construction contract, the Company received 5 Luban Awards, 9 National Quality Construction Awards, 4 National Prizes for Outstanding Survey and Design and 150 High Quality Awards in the Metallurgical Industry (Engineering) in respect of the projects undertaken or in which it had participated, of which engineering accounted for 27 awards, 99 accounted for design and 24 for survey, revealing increasing competitiveness of its core business.

2. Prominent technological achievements In 2011, the Company invested RMB2.029 billion in technology. As of the end of 2011, the Company has 9 national technology innovation platforms, 52 provincial and ministerial technological innovation platforms and 42 MCC engineering technology centers, under which the Company applied for the approval of 54 national key scientific research projects in 2011 with 2,886 new applications for patents, accumulating 5,984 effective patents. We received 2 National Science and Technology Awards and 8 Metallurgy and Technology Awards, completing the verification of 176 technology achievements and the compilation of 45 national standards and industry standards with our

remarkable technological achievements, being the forerunner among state-owned enterprises.

3. Increasing construction of affordable housing while proactively promoting the energy saving and environmental protection industry In 2011, the Company actively involved in the construction of affordable housing. As of the end of 2011, the Company’s total investment in development project plan amounted to RMB 50.87 billion, with planned GFA of 20.637 million sq.m. Investment for the period reached RMB9.31 billion, with area under construction of 10.824 million sq.m., area of newly commenced construction of 4.307 million sq.m. and area completed of 1.231 million sq.m. In addition to the affordable housing business, the Company also stepped up efforts in the emerging energy saving and environmental protection sector. In 2011, a number of representative projects, namely Shandong Yongfeng sintering flue gas desulfurization project, Xinggang sintering residual heat power generation project, Dongbei special steel base environmental relocation project in Dalian, Yangzhou waste-to-energy project, Jinan waste-to-energy project, Xiangyang waste-to-energy project as well as Qinhuangdao wasteto-energy project, have all been completed.

4. Taking the initiative to explore overseas market In 2011, overseas operating revenue of the Company amounted to RMB13.97 billion, up 12.1% year-on-year. Newlysigned big contracts include the project for petroleum engineering institution of Kuwait University and the India Tata KPO coking project. On 11 August 2011,




on announces 2011 results the Turkish Islamic Windermere (ISDEMIR) steel mill 4# 3,000 m3 blast furnace designed by Huatian Engineering & Technology Corporation, MCC, a subsidiary of the Company, successfully produced iron, being the largest blast furnace in Turkey as well as China’s largest overseas constructed blast furnace so far. On top of the engineering and construction, the Company also actively expanded overseas equipment manufacturing, resources development and property development business.

5. Steadfast growth in traditional business As the largest metallurgical engineering contractor in the world, the traditional principal business of the Company will maintain stable development as a result the factors such as optimization of steel varieties and rising demand for high-end products; energy-saving and emission reduction, technological upgrade and relocation of urban steel factories; phasing out of outdated production capacity for new capacities; and adjustment in layout of steel industry, the completion of Zhanjiang and Fangchenggang premium steel bases during the 12th Five-Year Plan period. Meanwhile, with the new targets set in respect of reducing cost and increasing profit and energy-saving and emission reduction, there will be new needs for technology upgrading for metallurgical equipment and thus more growth potential for advanced metallurgical equipments, which will benefit the Company’s metallurgical equipment business.  As one of the enterprises under the central government which early started corporate transformation, the Company has been actively developing non-metallurgical engineering market at home and abroad. During the 12th FiveYear Plan period, factors such as the steadily rising urbanization

rate in China increases as well as demand for construction of welfare housing projects and environmental friendly green projects will create much room for the Company’s non-metallurgical engineering business to grow. In addition, with the development of the infrastructure construction market and the environmental friendly construction sector at home and abroad, the Company, as a national innovation enterprise and leveraging on the strength of industrial chain integrating science, technology and construction, is to embrace new development opportunity.

6. New Businesses start to reap While consolidating and developing its traditional principal businesses, the Company proactively presses ahead its transformation initiative. In particular, with respect to the resources development segment which is one of the key transformation businesses, against the backdrop that the domestic demand for major metal resources such as copper, iron ore, lead, zinc and nickel keeps rising in recent year, the Company focused on development of rare metal mineral resources and overseas resources, and thus secured abundant rare resources. As such, this business will see more and more economic benefits as time elapses. Property development, another important business undergoing transition, suffered some extent as the government tightens the commodity housing policy. However, as a leading player in the field of development and construction of subsidized housing capable of survey, design and construction, the Company stands to benefit from the boom of subsidized housing development encouraged by the government. 2012 will be a critical year for the Company’s move to change economic development mode and accomplish transformation

and upgrading. The Company will conduct comprehensive analysis of the current situation and existing problems, optimize resources allocation, innovate management mode, improve sophistication level, prevent different kinds of risks, build and develop the characteristics and competitiveness of the Company’s principal operations so as to achieve the transformation and scientific development and make the Company stronger and more outstanding.

The company will: 1. Expand further into the market of engineering contracting, push the Company to shift from a player in the metallurgical engineering industry to a services provider of integrated solutions while vigorously tap the overseas metallurgical market so as to cement the Company’s leading position in the metallurgical engineering market; 2. Enhance the Company’s independent research and development capabilities to transform from an equipment manufacturer to a core equipment manufacturer and production online service providers; 3. Leverage our advantages in green, energy-saving and environment-protection technology to shift from a comprehensive property developer to a distinguished property developer at the forefront of the green buildings and environmental ecology; 4. Speed up the development of strategic new industries related to our principal business activities to create a new pillar industry as soon as possible; 5. Expedite the construction of the resources projects on hand for early commencement of production and to ensure early payback. Lastly, develop the Company into a first-rate conglomerate with international competitiveness. u




Asia Manufacturing News April 2012  
Asia Manufacturing News April 2012  

Asia Manufacturing News April 2012