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July 2011 $8 per copy 12 months subscription


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CONTENTS July 2011

In the scheme of things


e are always being told to make more, better and not be held back with product development for the good of the economy in our country.

We are not told to take a ‘measured’ approach to what it is we do and the impact of the product on the market and also its effect on the consumer. Take, for example, cell phones. The information is out there, backed up by medical research, that cell phones are not a good thing to use. That they actually are not good for our health and either should not be used at all or in moderation. However, society is at the stage where cell phones are indispensable. To have a world without cell phones would mean the removing of such a strong communications medium to bring about the need for a huge quantum shift all over the world. How to communicate except by landline or the internet. If they were the only choices would that be a bad thing> How did we get on before cell phones – were we happy, balanced human beings who still kept in touch with each other? Of course we were. We used to write more letters, send more telegrams and probably visited each other so that the social connections in our society were very strong. My point is not the demise of the cell phone but consideration being given to what we manufacture. Some products contain additives, others are made of recycled components, some are soluble, and others serve our life’s purpose so well that they never wear out.



s an established annual event in the region, and held in a different country every year, it was surely not going to be too long before the Delcam Asian Technical Summit found its way to India.





Our manufacturing world has gotten to the point where we dare not turn back with what we do. It may be cost factors, supply and demand…or the neverending cycle we can’t get off.


It takes a strong person to say enough is enough.









n November last year, the UN reported that there are many more people with cellphones in the Indian population than those with access to a toilet.



t is known as the resource curse, a paradox where countries rich in oil, gas, and extractive minerals are unable to translate such wealth into sustainable development, and instead are roiled by poverty, poor health, and rampant corruption.















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Delcam turns to India


s an established annual event in the region, and held in a different country every year, it was surely not going to be too long before the Delcam Asian Technical Summit found its way to India. And with Delcam’s India subsidiary celebrating its 10th anniversary and it also being the 10th Summit in the series, was indeed the opportune year for the UK CADCAM company to select Pune, a city some 170 km from Mumbai in India’s Maharashtra state and home to a growing number of manufacturing enterprises, as host for the event. Typically held over two to three days, through presentations, demonstrations, and discussions with company executives, the Asian Technical Summit aims to give Delcam’s customers (in the selected country), as well as region-wide media, an up close and personal look into the company’s latest software offerings for the design, manufacture and inspection of 3D complex shapes, as well as an insight into strategic direction and company performance. As for that performance, well, given that Delcam’s solutions are sold into manufacturing industries such as automotive, aerospace, die and mould, it was not too surprising to learn that Delcam’s steadily increasing revenue momentum from the year 2000 was abruptly halted by the Great Recession of 2009. However, happily for the company, 2010 saw a strong recovery in business even to the extent that record revenue of £18.1 million was recorded for the first six months of last year.

to expand our sales network, especially in Asia. We continued to expand our presence in new vertical markets such as healthcare. And we continued to take market share from competitors,” he affirmed. As Martell later explained, the fact that the majority of the company’s shareholders are also Delcam employees allows the management team to take a longer term view of the business and not be transfixed by short term, quarterly financial objectives. “Increasing our product development investment despite the recession is proof of our strategy to build for the future. It’s also important that we continue

to do this – continue to bring out advanced and enhanced solutions – because we want our customers to get excellent value for money from their continued investment with us,” he emphasizes.

New in Show The Asian Technical Summit is the traditional forum for Delcam to showcase the fruits of its investment in product development in this part of the world. And the India event was no different, with a number of upgrades and brand new releases discussed and demonstrated. Some highlights below. Delcam’s flagship PowerMILL CAM software ramps up user productivity through the use of background-processing and multi-threading technologies. Background processing allows programmers to prepare data in the foreground while calculating toolpaths in the background, while multi-threading significantly reduces toolpath computation time by allowing calculations to be divided between the cores in a multi-core CPU. Also getting a speed boost – via

Rather than battening down the hatches and insulating itself from the chill winds of the recession, Delcam took a contrarian approach to the downturn, as managing director Clive Martell explained to the assembled delegates in Pune. “We continued to increase investment in product development. We continued

Faster time to machining with the productivity-boosting background processing and multi-threading capabilities of PowerMILL CAM.


focus support for 64-bit machines and improved memory management – is Delcam’s feature-based CAM for production machining applications, FeatureCAM. The latest release also introduces fully automated de-burring and chamfering for 2- or 2.5-axis parts, and has a Vericut interface to facilitate the simulation of NC programs. Delcam for SolidWorks (DFS) enables users of Dassault Systemes’ SolidWorks CAD software to reap the benefits of Delcam’s CAM expertise and functionality from within the familiar SolidWorks environment. DFS combines the advanced strategies of PowerMILL with the ease of use of FeatureCAM. With full associativity, changes in the CAD model are reflected automatically in the toolpaths in terms of not just modification of existing toolpaths, but also review/change of cutting tools and machining strategies. The PowerSHAPE CAD system now incorporates the Parasolid software kernel – the “most significant development” in the design software since it was released more than a decade ago, says Delcam. The result: solid modeling operations up to five times faster, and rapid, conversion-less import of Parasolid

native XT third-party models (over 40 percent of all 3D CAD designs are estimated to be in this format. PowerINSPECT, Delcam’s solution for computer-aided inspection now offers easier creation and editing of inspection sequences, including the capability to insert new items in the sequence at any point. Also now possible is automatic surface inspection using raster strategies.

Products Plus Plus “A relatively small number of our customers currently have more than one Delcam product,” said marketing manager Peter Dickin. Hence our new ‘solution selling’ approach – which involves us moving from a product centric organization to a customer centric organization.” The thrust of this new marketing strategy outlined by Dickin in Pune is identifying client needs beyond the initial enquiry and supplying a broader range of products to each customer. Thus, for example, offering the PowerINSPECT metrology product to a traditional machining customer, or providing multiple CAM solutions to cater for a range of CNC machines in a customer’s facility. Garner Holt Productions of San Bernardino, California, the


world’s largest manufacturer of animatronics, special effects and show action equipment for theme parks, was cited by Dickin as an example of successful solution selling. To produce the dinosaurs, cartoon characters and other animated figures that the company makes, Garner Holt uses a combination of Delcam programs: CopyCAD for reverse engineering, PowerSHAPE for detail design, and PowerMILL for toolpath generation. This approach to go beyond traditional point-selling of products is also illustrated by the growing prominence of Delcam’s Professional Services Group, which has now been converted into an independent subsidiary, Delcam Professional Services (DPS), which as well as being the first stage in a significant expansion planned for its process development activities, now also encompasses the Tooling Services Division, since renamed to the Delcam Advanced Manufacturing Facility. The services provided by DPS include providing extra design and programming resources (for when the customer’s existing staff are overloaded) through to developing completely new turnkey processes for the production of novel designs, including the manufacture of prototypes or initial production runs. Such services are attracting increased demand, says Delcam, as many companies are stretched in terms of engineering resource and have limited capacity to introduce new products and develop new processes.

In Good Health

Delcam for SolidWorks: Delcam’s CAM functionality can now be integrated directly within the SolidWorks user environment

As outlined by Delcam MD Clive Martell, geographical market expansion has been accompanied by sectoral expansion into new industries, the most notable being healthcare. With the company already releasing dedicated products such as DentCAD




and DentMILL programs for the design and manufacture of dental restorations, and OrthoModel and OrthoMill software for the development of orthotics (orthopedic devices), in 2009, the Healthcare Division (www. was established in order to provide concentrated resources and expertise to meet the specialized needs of the sector. On hand in Pune to give an update on the Division was its business development manager Chris Lawrie. “The next generation of technology for the medical sector is CAD/CAM,” he announced. “In the last 12 months, our dental solutions have seen 94 percent growth, and our orthotics solutions more than 400 percent growth.” While the primary customers of custom orthotic insoles are medical patients such as those suffering from diabetes or needing to correct their gait, footballers and other sports people as well as military personnel also form part of the client base, although the key market is still healthcare. The rapid growth in Delcam’s orthotics solutions sales should perhaps not be too surprising given the stark advantages of a digital manufacturing process compared to the traditional manual method of making orthotics: customer lead time per pair of just one day versus three days; labor cost of £9.57 versus £46.20, according to Lawrie.

offers hardware! From conception to product in less than a year and with more than 60 units sold, the iQube, as it is called, is already the leading foot scanner on the market, says Lawrie.

economy. Central planning and capital constraints meant there were few entrepreneurs and few opportunities.” explained Vineet Seth, managing director, Delcam India.

“For the orthotics market there was no appropriate scanner available that provided the functionality that our customers needed,” explained Clive Martell when quizzed by Metalworking Asia. “So we decided to develop one ourselves.”

“However, since 1990 there has been marked change: markets have opened up for foreign investment; capital is widely available; entrepreneurship is encouraged; collaboration is invited and welcomed. And the result is that India is now the fourth largest economy (by purchasing power parity) in the world.”

So does this signal a strategic move by Delcam into hardware? Well, not really, it seems. “Where necessary we will look at developing hardware but clearly our focus is on software,” affirms Martell.

Rapid Rise No doubt, Delcam’s long-time focus on global expansion helped to cushion it from the worst ravages of the recession, as manufacturing activity in markets like China and India held up in contrast to the declines in Europe and the US. In India, the company’s increasing presence reflects the rise in economic growth and importance of the country over the last two decades. “For many years after independence, public sector enterprises dominated the

For evidence of this vertical trajectory you only have to look at the swift rise of Delcam in India, as the three-man liaison office of 2005 has transformed into today’s 130 people-strong subsidiary with headquarters in Pune, 14 branch offices around the country, and the home of Delcam’s international customer support desk. “We are now the largest CAM vendor in India, with a leadership position in automotive, having the preferred system for computeraided inspection, and being active and investing in newer domains like aerospace and dental,” said Seth, no doubt especially proud of Delcam’s achievements given his status as the company’s very first employee in India. u

That digital process comprises scanning a patient’s foot, creating a 3D CAD representation in OrthoModel, and then creating 3D toolpaths with OrthoMill CAM software so as to enable automatic cutting of the orthotics pair from the selected material. For that first step, scanning, Chris Lawrie announced that Delcam now has its own solution in terms of a hardware device to scan a person’s foot or a cast of the foot. Yes, this software company now

Driven by stellar performance of its solutions for the dental and orthotic footwear markets, business development manager Chris Lawrie reported high growth for Delcam’s Healthcare Division.




How LOHAS is changing business in Asia


pending over $300+ billion dollars annually, the demographic called LOHAS, continues to change the way marketers conceptualize the 4 P’s of marketing. LOHAS is Lifestyles of health and sustainability. The consumer group identifying themselves with LOHAS are a megatrend not to be overlooked or taken for granted.

Consumers have traditionally expected governments to take the lead in protecting the environment, but now they are looking more to the corporate world to take action, rather than individuals. Increasingly, Asians want economic growth but believe it should be achieved through greener industry. Market research conducted in 2010 revealed an untapped multi-billion dollar demand from households with significant purchasing power that relates to exactly this. THE LOHAS Asia and NMI research on China, for example, questioned 1,000 consumers across the five cities of Beijing, Chengdu, Dalian, Guangzhou and Shanghai. Results showed that 88% agreed that it is important for companies to be mindful of their impact on society. With China having overtaken Japan as the world’s secondbiggest economy, the LOHAS consumer demand is on the rise month by month and there is an urgency for the market to respond. Asia isn’t regarded as a pioneer on the CSR front, but in recent years, action on CSR is growing amongst Asian firms. In Hong Kong, Malaysia, China, and more recently Singapore and Thailand, stock exchanges are playing an increasing role in raising the visibility of businesses and encouraging reporting on sustainability. However, despite years of education on the issue, businesses

across Asia still carry the common misperceptions of CSR being equivalent to philanthropy, which is what you do with your profits while CSR is what how you go about making those profits. Given the real concern from knowledgeable consumers, this also means companies have to deliver more than just lip-service and stand true to what they claim. Governments are also helping to develop CSR practices, such as in Singapore with the Green Mark Scheme for buildings as a key initiative to promote sustainability in the building sector. The Singapore Government is also pursuing sustainable fashion as another sector, and launching new subsidies for industry training.

Results of LOHAS Market Research In January 2010 LOHAS Asia partnered with The Natural Marketing Institute in pioneering LOHAS Consumer Research in Asia-Pacific, conducting an online survey across 10 countries. More than 18,000 consumers were surveyed, to provide indepth research on the LOHAS consumer and marketplace across the following countries: Australia, China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand. Some of the highlights show very real desire for sustainably-made products in Asia, with Indonesia, China and India leading the way. As always, we have to look

closely at China and India as the biggest market opportunities, and here we have high numbers seeking sustainably-manufactured products. This is a clear message and opportunity to manufacturers but even more encouraging, they will buy them if they are more available and most are willing to pay a 20% price premium for them. By contrast, there are significantly fewer consumers willing to pay a 20% premium in Korea, Singapore and Australia. But, these are rich economies, so the market opportunity per share point is higher and worth chasing. In one of the clearest messages from this research, consumers in Asia-Pacific are prepared to boycott brands they feel are overpackaged. This behaviour contrasts with experience in other markets in the West, where the likelihood of over-packaging actually damaging purchases is low. This is an area where the biggest markets show the most extreme reaction to the question, with China, Indonesia and India leading the way with a strong likelihood to boycott over-packaged brands.  In April 2010, LOHAS Asia Pte. Ltd launched The HUB, a business network for companies and service providers in tune with LOHASian values to network, market and collaborate in new opportunities and joint-ventures. nextSTEP







Cashing in on Vietnam boom

n Danang, half way between Hanoi in the north and Ho Chi Minh City in Vietnam a property development boom is driving a confident local economy.

GDP growth in the vicinity is powering along at over 12% a year, about twice the national average, as beach side resorts spring up to cater for burgeoning tourist numbers while government plans and incentives go after overseas investors to set up in high tech, bio tech and IT industrial parks. This city of 1 million people lies alongside an excellent harbour and beaches that out-do Piha. They enjoy great weather and wonderful baskets of tropical fruit. You can sense their ambition is to build an eastern Riviera, plus education and skills training establishments to create jobs for their young people. Vietnam’s population of 84 million in all is indeed very young; over half are under 30 years of age, and in striving to develop better paying jobs for them the most advanced technologies available are being sought. Visitors to Danang are flying in in

droves from Western countries, and wanting to eat western foods at least for some of the time. They’re flying in as well from the big neighbours to the north: China, Taiwan, Russia and Japan, and those places are where a lot of the large investment is coming from, as well as from the US. Apart from dairy, meat and other food and beverages what does Danang have to attract New Zealand manufacturers? Export New Zealand joined forces with the Combined ASEAN New Zealand Business Council to take a trade mission there to find out close up. One challenge was to identify the demand, and likely channels to market for New Zealand food and wine for a resort such as Danang in particular. Another was to find out what was required for New Zealand made building products to meet local standards, and identify which authorities had jurisdiction. A third challenge was to meet up

By Gilbert Peterson with business partners that mission delegates could work with. To meet these objectives we packed in a programme of economic and sector briefings, meetings with officials, site visits, and pre-arranged business matching. We toured a port, a shipbuilding yard, a ceramics factory and a brewery. Building up trustworthy business partnerships are rarely achieved overnight; building good business in Vietnam as for elsewhere in South East Asia depends on developing sound relationships. Nonetheless Mike Petersen of aluminium window and door joinery manufacturer, NALCO reported they were invited to participate in a $US1bn resort development project in Danang. Early talks are underway on the viability of opening a representative office in Vietnam on behalf of New Zealand construction businesses, and orders are expected for a range of NZ produce including cherries, apples and meat cuts.

Mission leader Sir Ken Stevens, HE Heather Riddell, NZ Ambassador to Vietnam and Graham Sims, NZ Trade Commissioner and Consul General in Ho Chi Minh with host at a business meeting in Danang


news Ron Hendl of Waikato stainless steel fabricator Hendl and Murray reported making a lot of contacts he wouldn’t have otherwise, some of whom will come to New Zealand to discuss more business. “Its been very useful,” Hendl said. Building research executive Chris Kane of BRANZ reported many opportunities for New Zealand firm for builders’ supplies. The networks and contacts we established are “incredibly valuable,” Kane said. For his own company, Glidepath Group, Sir Ken Stevens said the opportunities he unearthed in Vietnam exceeded expectations. New Zealand Consul General and Trade Commissioner in Ho Chi Minh, Graham Sims said: “Having been on the mission, if you come to Vietnam as individual businesses, we will now know what to expect, and can partner with you, and set up a programme for you.”

Sir Ken Stevens, leader of the Vietnam Trade Mission, and Managing Director of Glidepath Group said “The Trade Mission to Viet Nam was well worthwhile. The meetings organised ahead of the mission were well positioned and went off on time and without a hitch. “Delegates got a lot for their money. If you came here on your own, you would not get this.

Sir Ken Stevens said the opportunities he unearthed in Vietnam exceeded expectations. “The calibre of the NZTE Beachheads board members who we met is awesome. They are such eminent members of their local business communities and it does the heart proud to learn about their input and effect in accelerating exporters into complex markets.


“I personally found the Vietnam team at NZTE to be just the best team I have worked with in NZTE’s network. Graham Sims proved to be a very competent and technically savvy Trade Commissioner. “On the social side it is as well to record the fund raiser for the Christchurch earthquake fund at Ho Chi Minh City saw over 300 people attend. It raised US$96,000 and I must congratulate our Australian bros as they turned out in numbers in support. “I personally enjoyed leading the mission and I would encourage exporters wishing to expand their markets to join a trade mission as the benefits are many fold.” u *Gilbert Peterson is Communications Manager for the Employers & Manufacturers Association. He co-managed the Export NZ/ASEAN NZ Combined Business Council Trade Mission to Vietnam in March.

Delegates inspected a ship building yard in Danang



product update

The world’s most innovative measurement arm, the FARO Edge


ARO Technologies, Inc. (NASDAQ: FARO), the world’s leading provider of portable measurement and imaging solutions, introduces the FARO Edge, the most advanced, state-of-the-art FaroArm ever produced.

The FARO Edge is a portable measurement arm that allows manufacturers to easily verify their product quality by performing inspections, tool certifications, CAD-to-part analysis, and reverse engineering. The latest generation of the FaroArm product line continues to eclipse competitive models in every category. The Edge improves production, quality, and reverse engineering processes by rapidly verifying or scanning parts with confidence and accuracy. The new Arm also simplifies the user experience with improved performance, portability and reliability. “The FARO Edge was designed with our customers’ input and built with our experience,” stated Jay Freeland, FARO’s President & Chief Executive Officer. “It offers unparalleled simplicity for the user while maintaining all the existing benefits of a FaroArm and it demonstrates our continued leadership in this space through innovative and disruptive technology.” The all new Edge features the first ever integrated personal measurement assistant.  With its built-in touchscreen and onboard operating system, the Edge revolutionizes portable metrology by providing stand-alone basic measurement capability.  A laptop is no longer needed to perform quick and simple dimensional checks, or to optimize system performance with it’s on board diagnostic routines. Additional industry-leading areas of improvement and capability include:

• Enhanced Connectivity –

Bluetooth, WiFi, USB, and

Ethernet ready. Multiple device management through networking.

• Smart Sensor Technology –

Improved sensors warn against excessive external loads, correct for thermal variations, and detect possible setup problems.

• Ergonomics – Improved weight distribution and balance for reduced strain and easeof-use. Patented internal counterbalancing providing comfortable, stress-free use.

• Multi-Function Handle Port –

Seamless and interchangeable accessory integration. Quickchange handle. Expandable capability.

“Everything about the Edge was designed from the ground up to boost productivity and deliver the

best performance from any portable arm CMM,” said Orlando Perez, Product Manager - FaroArm. “The FARO Edge changes absolutely everything.” Learn more about the FARO Edge at u

Miniature ceramic heaters


new approach to miniaturised heaters is proving to be outstandingly reliable, versatile and economic. Miniaturised ceramic heaters capable of independently controlling their dissipation are replacing Nichrome elements universally used until recently in domestic medical and military applications. It is now possible to mass produce incredibly small controlled dissipation 230 V elements onto small 12 mm x 9 mm ceramic substrates capable of operating at over 350° celsius. Besides heaters the technology can be used for such diverse applications as thermal print heads, molecular gas flow sensors and tracking transmitters.

Thick Film technology is used wherever high reliability is required, such as space satellites and heart pacemakers. Circuit elements are physically printed sometimes in multiple layers on thin ceramic sheets and then fired at high temperature typically 850°C to form working electronic modules. u



Better Business Throughout Asia



product update

CNPV passes international standards


NPV Solar Power SA, a leading integrated manufacturer of solar photovoltaic products, has passed the OHSAS 18001 international standards for occupational health and safety after auditing by TUV Rheinland.

CNPV continues to charge through the certifications accreditations as part of its commitment to business excellence. Barely pausing to breathe, determined to succeed, the Company continues to invest in its systems and people. Recognising that the rigours of external assessment bring much higher benefit that the approval itself, the Company continues to stretch its targets and “punch above its weight”. Never a Company to take the easy option, it instructed TUV Rheinland to audit against OHSAS 180001 after making internal preparation over a period of six months. The announcement is not only the achievement of OHSAS 18001, but the first Chinese PV Company to achieve accreditation for ISO 9001, ISO 14001 and OHSAS 18001 from TUV Rheinland, one of the most respected certification bodies in the world. The lead auditor for TUV Rheinland confirmed, “As a result of CNPV’s

accreditation for this Health and Safety standard, and a collective review of our database, we can confirm that this is the First Chinese PV Company to have achieved accreditation for Quality, Environmental and EHS systems from our organisation. We are delighted to work with them as they proceed onto their next qualification, which judging by the speed of their recent commitment, will be in the near future.” “Fantastic,” confirmed Mr. Zhang Shunfu, CNPV’s CEO and Mr B. Veerraju Chaudary, CNPV’s COO & CTO. “To be able to confirm from TUV Rheinland that our commitment to the health and safety standards of our employees is on the right track is very fulfilling. Our choice of TUV Rheinland, one of the most reputedand challenging certification bodies, was driven by our wish to test our systems, hopefully finding where we could, and can, improve to the benefit

of all. When we subsequently found out that we were the first Chinese PV Company to achieve accreditation for the three systems from this demanding certification organisation, our desire to develop further was further stimulated. Our long term strategy of growth requires clear and careful systems management. We have set demanding targets for ourselves, taken the harder

options where possible, all in the knowledge that by making change and constantly evaluating our performance we can achieve the approaching targets more efficiently. We are delighted that we have achieved this milestone on our strategic map, it gives us great confidence to push forwards quickly onto our next challenge.” OHSAS 18001 is an Occupation Health and Safety Assessment Series for health and safety management systems. It is intended to help organizations to control occupational health and safety risks. It was developed in response to widespread demand for a recognized standard against which to be certified and assessed. u

Bulk packaging to reach $56 billion in 2015


orld demand for bulk packaging is projected to rise 5.8 percent per year to $56.0 billion in 2015.

Advances will be driven by growth in manufacturing activity, especially in key end-use industries such as chemicals and pharmaceuticals, and food and beverages. Together, China and the US -- the two largest markets -- will account for close to one-half of value gains in bulk packaging demand between 2010 and 2015. Film wrap will see the fastest gains, benefiting from growing requirements for the bundling and protection of goods during warehousing and distribution. Demand for film wrap will also be bolstered by retail trends.

Although shipping sacks will continue to represent the largest product type, shipping sack demand will experience belowaverage growth through the forecast period and beyond. Strong price competition and increasing use of alternative products -- such as flexible intermediate bulk containers (FIBCs) and various rigid bulk packaging types, including material handling containers and drums -will serve to limit gains in shipping sack demand. Demand for drums will benefit from an upswing in global chemical and pharmaceutical production, as chemicals comprise by far the leading application for drums. Growth in pail demand will be slightly below average, due to competition from other packaging formats.

The Asia/Pacific region will post the most rapid increases and remain the biggest regional market in the world, due to its large food and beverage, and chemical and pharmaceutical industries. Central and South America, Eastern Europe, and the Africa/Mideast region will also experience above-average growth, though advances in these areas will stem from relatively small bases (collectively, these three regions will only account for twelve percent of global bulk packaging demand in 2015). Overall, the fastest growth will be seen in Asia, specifically in India, China and Indonesia. u nextSTEP Visit:






Canadian bank building a wealth presence in Asia


MO Financial Group has announced its acquisition of Hong Kong-based Lloyd George Management, a boutique investment manager with $6bn in assets under management. The move may prove to be an important milestone on its path to developing a more substantial footprint in China, as well as highlighting the growing importance of the Asia-Pacific wealth market.

Lloyd George Management was founded in 1991 and has about 80 employees. It has offices in Hong Kong, London, Singapore, and Mumbai, as well as in the US, and is a specialist in Asia and global emerging markets. BMO, one of Canada’s leading banking groups, has been seeking to build up its presence in China and East Asia, particularly its wealth management operations, according to Gilles Ouellette, president and chief executive officer of the group’s private client division. According to the bank, the acquisition of Lloyd George will provide it with immediate cross-selling opportunities, as it can distribute Lloyd George products to its established client base in the US and Canada. However, in October 2010, BMO also became the first Canadian

bank to incorporate in mainland China, giving its subsidiary, Bank of Montreal China Co. Ltd., the ability to operate like a Chinese bank and offer local clients a greater range of products and services, such as wealth management. The emerging markets expertise of Lloyd George Management, with an on the ground presence in many key markets, will substantially increase BMO’s capabilities to deliver such services in the region, which has experienced rapid growth in its high net worth (HNW) client base. The bank respects the staff expertise and knowledge, a value it has built up over the years and invited all personnel to stay on. The bank has already stated its intention to expand in the region, and in December 2010, it aimed to

almost quadruple its staff in Asia to about 1,000, as it seeks to diversify away from the slow growing markets of Canada and the US. Due to the relatively modest size of the deal, Datamonitor expects further acquisitions by BMO in the region to be forthcoming, as it has come through the recent financial crisis relatively unscathed and able to pursue growth through M&A unlike many of its Western rivals. BMO will need both further acquisitions and organic growth to realize its targets for Asia-Pacific and China.

Consequently, while the deal makes sense in terms of the immediate benefits that it brings to the bank’s existing North American wealth management clients; it should be seen as just one part of a plan for building up a banking presence in mainland China. By giving it the personnel and a platform with which to service more lucrative HNW Chinese clients the deal will give BMO a crucial head start over many of its European and American rivals in the mainland market. u

Brenntag opens chemical distribution facility in Indonesia

In Indonesia, Brenntag markets a diversified line of specialty and industrial chemicals for a variety of applications, including personal care, coatings, food & beverage, pharmaceuticals, textile, rubber, plastics and polymers, agro, feed, refrigeration, polyurethanes and

minerals. The new facility adds to the company’s seven existing warehouses in Indonesia and Brenntag’s growing distribution network in the Asia Pacific region which also includes more than 40 distribution centers. At the inauguration of the new site, Steven Holland, COO of Brenntag, said, “We’ve seen a growth in the demand for chemical distribution in the Asia Pacific region, especially in Indonesia. By expanding our local presence, we are making an investment to better serve our customers with advanced support and meet growing market demand; it will also strengthen our presence in the region.” “The new facility will further

bolster Brenntag’s ability to provide a number of services including storage, re-packing large-scale quantities into smaller quantities, delivery and other supply chain solutions,” said Henri Nejade, President and CEO, Brenntag Asia Pacific. With an in-house Coatings application laboratory, the facility offers value-added services to its customers by meeting specific requirements for the formulation and customization of various blends of industrial chemicals. It provides further technical application support with a sample room, designated cool rooms for textile, food and beverage products, and two rooms to safely


JAKARTA Brenntag has unveiled its new distribution facility in Jakarta built to meet growing market demand. The facility will provide a bigger storage capacity than the current warehouse in Jakarta, and allow Brenntag to improve and expand value-added customer support throughout the supply chain, from purchase and formulation through to packaging and logistics.





Steven Holland hitting the gong (in lieu of ribbon cutting) with the Brenntag Asia Pacific Management Board and Tony Susanto looking on.

store hazardous and flammable products. Built on a 10,000 m? plot of land in MM2100 Industrial Town in Cibitung in West Java, the new facility has a storage capacity of 5,000 m? of floor area with 6,600 pallet position.


Like all of Brenntag’s facilities, its Indonesian distribution center complies with local and international safety and environmental regulations. Currently, Brenntag in Indonesia holds ISO 9001:2008 certification and is applying for ISO 14001

and OHSAS 18001 certifications. Brenntag is committed to providing value to its customers and suppliers through superior supply chain management, single sourcing, technical application support and other value-added services. u

SACLA laser sets new record

IKEN and the Japan Synchrotron Radiation Research Institute (JASRI) have successfully produced a beam of X-ray laser light with a wavelength of 1.2 Angstroms, the shortest ever measured.

This record-breaking light was created using SACLA, a cuttingedge X-ray Free Electron Laser (XFEL) facility unveiled by RIKEN in Harima, Japan. SACLA (Spring-8 Angstrom Compact free electron LAser) opens a window into the structure of atoms and molecules at a level of detail never seen before. The use of ultra high-intensity X-ray free electron laser light to explore the miniature structure of matter, until recently inconceivable, is today transforming how we visualize the atomic world. By providing much shorter wavelengths and higher intensities than other lasers, XFEL enables researchers to directly observe and manipulate objects

on an unrivalled scale, opening new research opportunities in fields ranging from medicine and drug discovery to nanotechnology. One of only two facilities in the world to offer this novel light source, SACLA has the capacity to deliver radiation one billion times brighter and with pulses one thousand times shorter than other existing X-ray sources. In late March, the facility marked its first milestone with beam acceleration to 8GeV and spontaneous X-rays of 0.8 Angstroms. Only three months later, SACLA has marked a second milestone. On June 7, SACLA successfully increased the density of the

electron beam by several hundred times and guided it with a precision of several micrometers to produce a bright X-ray laser with a record-breaking wavelength of only 1.2 Angstroms (a photo energy of 10 keV). The new measurement far exceeds the previous record of 1.5 Angstroms set in 2009 at the only other operational XFEL facility in the world, the Linac Coherent Light Source (LCLS) in the United States. With experiments soon to commence and user operations at the facility to begin by the end of fiscal 2011, this new record offers a taste of things to come. nextSTEP Email: Hitoshi Tanaka, Director,XFEL Research and Development Division, RIKEN SPring-8 Center u



business news

Ascent of Ethylene – a new market study


thylene is the most produced petrochemical. Producers are back on the road to record sales.

Ethylene is needed for plastic bottles, textile fibers and water pipes. The most produced petrochemical is mainly used for the production of plastic. A new study of the market research institute, Ceresana Research, shows that ethylene producers are recovering from the sharp drop in the year 2009. By 2017, worldwide ethylene revenue will reach again the current 2008 peak volume, which is more than 160 billion US$. Ethylene prices already recovered during 2010, after they had declined at an average rate of 35% in 2009.

China, the pioneer The Asia-Pacific region will continue to dominate the market in future and generate more than a third of worldwide demand. The pioneer will be China which


will rise to become the greatest ethylene consumer worldwide, and will therefore drive out the United States to the second place, followed by Saudi Arabia. However, countries of the Middle East exhibit the largest increases in ethylene production and demand. Volumes in the Middle East have doubled over the past eight years, and there is expected to be a further doubling by 2015.

Ethylene becomes polyethylene More than a third of the sold ethylene is processed into polyethylene, which is for example used in construction materials made of HDPE, or LDPE packaging. The production of ethylene oxide accounts for roughly 11% of global ethylene demand. Ethylene oxide is mainly used to produce ethylene glycol which is a pre-product of polyester. The production of textile fibers is, above all, growing significantly in Asia. Additionally, producers of ethylene oxide are

profiting from the substitution of glass by PET bottles.

A comprehensive analysis On 812 pages, the Market Study Ethylene, explores the ethylene market, and includes forecasts until 2017 in regard to demand, production, import, export, revenues and prices. The study offers a comprehensive insight into the development of the seven world regions. 55 countries are analysed: demand divided by applications, production, capacities and trade as well as their influencing factors. Applications include HDPE, LLDPE, LDPE, ethylene oxide, EDC, ethylbenzene and acetaldehyde, ethanol, linear alcohols, vinyl acetate, and alphaolefins. The study provides you with a useful list of 117 profiles of manufacturers and is available from: en/market-studies/chemicals/ ethylene/ u

Interpack 2011 highlights

eld in Duesseldorf, Germany, in May, interpack had its finger on the pulse of shifts in consumer demand. The global market for sustainable packaging is projected to reach $142.42 billion by 2015, according to a report from Global Industry Analysts (GIA). Growth drivers include increased awareness about environmental hazards related to disposal and recycling of packaging wastes, government initiatives to minimize greenhouse gas (GHG) emissions, and stringent regulations. Unlike other segments of the packaging industry, sustainable packaging showed impressive growth from 2008 to 2009, and has been immune to the economic downturn, according to the report. GIA says sustainability has helped

companies cut costs and reduce packaging waste by using recycled and reusable materials. Similarly, a recent report from Pike Research indicates that the sustainable packaging market is growing much faster than the overall packaging industry, and is expected to double in size from $88 million in 2009 to $170 billion in 2014. These results are inline with the findings from, the Natural Marketing Institute (NMI) and LOHAS Asia’s first in-depth survey on LOHAS consumers in AsiaPacific conducted in January 2010, which produced surprising and encouraging results indicating an excess demand across 10 Asia countries. An increasing number of experts are in agreement that the LOHAS trend is no longer merely a simple

transitional movement, but rather an entire wave of a permanently changing culture which will also completely transform the foundations of the Asian business, societal and consumer worlds. The interpack 2011 event showed entire value creation chains: From the production and refinement of packaging products and packaging materials - over packaging and distribution - right up to quality assurance and consumer protection. • Processes and machinery for the packaging of: food and beverages, pharma and cosmetics, consumer goods (non-food), industrial goods • Packaging materials, packaging means and packaging production • Processes and machinery for confectionery and bakery • Services u

business news



First appointed resellers in China

BEIJING – Icona Solutions, Ltd., which develops, supplies and supports the innovative perceived quality simulation and visualiSation software solution, aesthetica, has appointed its first two value-added resellers in China. Beijing-based Sili-Tech Co. Ltd. ( and Shanghai-based Shanghai RPT Automotive Engineering Co. Ltd. ( will be responsible for selling and supporting aesthetica in the rapidly growing domestic Chinese automotive design and manufacturing industry.

“The Chinese automotive industry is a key growth market for us,” said Tim Illingworth, chief executive, Icona Solutions.

“However,” he noted, “the domestic Chinese automotive manufacturers realise that in order for them to succeed in this rapidly growing marketplace, one of their major tasks is to increase the perceived quality of their vehicles. That’s where we see major opportunities for Icona Solutions and aesthetica.”

New partners will help Chinese automotive manufacturers increase the perceived quality of their vehicles through the use of Icona’s aesthetica software.

“With 3.5 million cars sold in China in the first three months of 2010 – a 76% increase over the same three months last year – and 42% growth in 2009 over 2008 as a whole, forecasts indicate that sales of cars and light trucks will reach some 25 million annually by 2014, with an estimated total ownership of 130 million vehicles by that time.”

Commenting on their appointment, Jason Li, managing director, Sili-Tech, which is a CAE consulting and systems integration specialist and Siemens PLM Software CAE solutions partner in China, with customers in the automotive, aerospace and ship building industries, said, “We are proud that Icona Solutions selected us to be their partner in China and we are excited by the opportunities that exist in the Chinese automotive industry for

SEOUL – INUS Technology, Inc. ( has announced t that its worldwide revenue for the first quarter of 2011 represents a 38% jump from the same period in 2010.

in object and feature recognition intelligence and a full featured tool set.” John adds, “What takes me an hour to do in XOR3 takes about ten times the effort/time in [regular CAD software].”

The company experienced their best sales year ever in their 13 year history in 2010. Given that pattern, the company expects 2011 to show accelerating growth, as its products become more popular among manufacturers, research institutions and universities.

The company’s success in Q1 2011 sales is internationally attributed, especially in Japan which broke all previous sales records, even despite the economic effects of the tsunami. “Our sales performance this year is a continuation of our robust growth through all of 2010,” said Calvin Hur, CEO of INUS Technology. “This growth is an indication that manufacturers around the world are recognising the benefits of Rapidform. We’re coming out of a tough business climate, but as we continue to drive innovation and make 3D scanning more productive for our

a unique software solution like aesthetica.” Meanwhile, Fang Ming, general manager, Shanghai RPT Automotive Engineering, which counts Chinese automotive companies including SAIC, JAC, NAVECO, Chengfeng and GW among its customers and is a leading reseller of Dassault Systémes’ full line of CAD/CAM/ CAE and PLM software solutions, said, “Icona Solutions’ aesthetica software is an ideal complement to the mainstream vehicle design and engineering solutions that our customers use on a dayto-day basis, so we see major opportunities in helping them to improve the perceived quality of their vehicles through the use of aesthetica.” “Both Sili-Tech and RPT have the technical expertise and the market knowledge that will enable aesthetica to make its mark on the Chinese automotive industry”, said Illingworth. “We are looking forward to working with them in taking Icona Solutions to the next level in the worldwide automotive industry.” u

Manufacturers adopt 3D scanning

Industry trends indicate that more organisations are investing in 3D scanning technology for research and development, manufacturing and quality control. John Morewood, Owner of ZipBit, Inc. in San Francisco says, “Rapidform XOR3 is by far the ‘gold’ standard with powerful built-

customers, we’re seeing strong demand for our best-in-class software.”

The company’s line of Rapidform software products works in conjunction with 3D scanners from every major manufacturer. Rapidform XOR software is used to make CAD models from 3D scan data, while Rapidform XOS software is focused on creating high quality mesh and surface models from 3D scans. Rapidform XOV and InspectWorks allow companies to take a 3D scan of any object and compare it to a CAD design for verification purposes. By and large, Rapidform is considered the leader in reverse engineering technology. INUS Technology helps companies unlock the power of 3D scanning. u




Hypertherm Introduces Fiber Laser Technology to Asia

SHANGHAI – Hypertherm announced the release of its HyIntensity™ Fiber Laser HFL015 cutting system in Asia at Beijing ESSEN. The HFL05 and other cutting edge Hypertherm products were on view at Booth E1027 at the Shanghai New International Expo Centre from 2 to 5 June 2011. Unlike products from many other fiber laser manufacturers, HyIntensity™ HFL015 is an allin-one package that includes the power source, cutting head, gas supply, operator interface consoles, motion controls, and software. Hypertherm believes this solutions-based approach will make it much easier for partners and customers to use laser cutting for their fine-feature cutting requirements. The system operates on familiar Hypertherm control platforms, with pre-developed cutting processes for significantly simplified table integration and operation, as well as higher levels of efficiency when compared to other laser cutting solutions. A single-emitter diode-based design enables extremely reliable performance.

“Our fiber laser system is unique in that all of the components are engineered and designed to work together. Cutting application specialists defined and validated all of the cutting parameters so our partners and their customers can easily use laser for a broad range of applications including marking, efficient processing of gauge and fractional materials, and fine-feature cutting,” said Doug Shuda, Hypertherm’s fiber laser product manager. “Hypertherm partners and their customers no longer have to choose between plasma and laser. They can choose both, applying the best cutting

technology for each particular job.” Fiber laser offers several advantages over CO2 laser systems. It requires virtually no maintenance, is more energy efficient, and takes up less space. The power supply is much smaller than CO2, yet fiber delivery enables the beam to travel greater distances allowing for installation on larger tables. Hypertherm’s introduction of a fiber laser system follows several years of intense research and development. The company applied more than four decades of metal cutting expertise to develop a powerful system that builds upon Hypertherm’s existing plasma cutting system offerings. Hypertherm designs and manufactures advanced metal cutting systems for use in a variety

of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes handheld and mechanized plasma and laser systems, consumables, as well as CNC motion and height controls and cutting software. 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




Hypertherm Unveils Newest CNC at Beijing ESSEN 2011 including True Hole™ Technology, recent advances in Phoenix Software further expand the functionality of Hypertherm CNCs for multiple plasma bevel designs, waterjet, and rectangular tube/ round pipe cutting.

SHANGHAI – Hypertherm launched its latest computernumeric controller (CNC), MicroEDGE Pro, with the latest Phoenix Version 9 Software at Beijing ESSEN. It was the first time the new CNC had been available to customers worldwide. Visitors viewed the MicroEDGE Pro and other cutting edge Hypertherm products at Booth E1027 at the Shanghai New International Expo Centre from 2 to 5 June 2011.

Also new for MicroEDGE Pro is Hypertherm’s proprietary Hypernet communication which quickly allows connectivity between the CNC, ArcGlide torch height control, and HyPerformance plasma or HyIntensity™ Fiber Laser through use of an Ethernet cable improving cut process setup. All necessary cut process parameters can be embedded in the customer part program in the CAM Software to reduce setup time while eliminating common process

Like all Hypertherm controllers, the MicroEDGE Pro is designed for reliability and ease of use. Building on the combined strengths and successful history of the MicroEDGE CNC and EDGE Pro CNC, the model delivers customisable performance for a broad range of cutting applications to maximise productivity and profitability. In addition to Hypertherm’s expertise in plasma cutting

errors and improving productivity. “We are sure our customers will enjoy the many new benefits of this CNC for new cutting machines or field upgrades,” said Peter Brahan, leader of Hypertherm’s Automation team. “The MicroEDGE Pro builds on the reliability gained from process and production improvements and incorporates the advanced features built into Phoenix software to deliver improved ease of use and versatility.” u

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business news

J-REP to fund construction of Logistation Moriya in Japan

TOKYO: J-REP, a specialist provider of Japanese logistics solutions, majority owned by Macquarie Goodman Japan Pte Ltd, has announced that it has secured a non-recourse 3-year senior term loan of 1.9 billion Yen from ING Bank N.V., Tokyo Branch. The facility will be used to fund the construction of J-REP Logistation Moriya in Japan.

Paul McGarry, Representative Director and CEO of J-REP, said: “We are very pleased to expand our banking relationships by partnering with ING Bank on this transaction. The financing terms provided are very attractive

and reflect the high quality of this development. We are keen to work with ING Bank again and are in discussions with them in relation to the financing of a number of potential future projects in Japan.” Christine Tran, Managing Director, ING Commercial Banking, Real Estate Finance commented: “This high quality project provided us with an opportunity to expand our relationship with Goodman Group by supporting their operations in Japan. We are looking forward to the next transaction with the Japan team. u


On completion, J-REP Logistation Moriya will provide over 33,000 sqm of high specification warehouse space for Nippon Express. The facility is ideally located approximately 50

kilometers north-east of Tokyo on the Joban Expressway providing easy access to the Saitama, Tokyo, Chiba and Ibaraki Prefectures. The facility will be used by Nippon Express as their integrated document storage centre providing same day and next day services to its clients in the greater Tokyo region.

Titanic lifters hoist 75,000 tons with safety and precision

The PLC-controlled 700 bar technology can control, from a central point, hundreds of compact high-pressure (700 bar) hydraulic cylinders being used to lift, shift and manoeuvre onshore and offshore resources structures

during construction, manoeuvring and positioning. Applications of the technology range from petroleum drilling platforms and exploration machinery to land-based


SINGAPORE: Sophisticated hydraulic technology that can safely lift, balance, weigh and launch massive resources structures up to 75,000 tons or more is being introduced by Enerpac South East Asia


business news infrastructure items such as bridges, wharves and loading/ unloading facilities. The Enerpac technology – including synchronous lifting technology already proven on some of the world’s most challenging objects and structures – is designed to provide optimum control and stability during the lift and ongoing safety by protecting the structures’ integrity during the lifting and manoeuvring. “Not only does the PLC controlled lift provide minute control down to 1mm or less during the lift, measured over hundreds of cylinders arranged in clusters - but also it can account for variation in load over the floor or keel of the structure,” said Enerpac South East Asia Managing Director Mr Joseph Wang. “This means system operators can maintain outstanding control over huge numbers of cylinders to apply exact force as it is needed in particular parts of a structure as it is hosted for weighing, balancing or prior to skidding into position for launch. “By maintaining the internal integrity of the structure - and not exposing it to susceptibility to developing cracks and faults


caused by uneven stresses during lifting - the system helps to ensure the durability and safety of the structure in service.” The technology is remarkable for the precision with which it can lift huge weights – 75,000 tons easily exceeds the weight of many famous ships, including the Titanic (approx 50,000 tons) battleship USS Missouri (58,000 tons loaded) as well as the amount of steel in the Sydney harbour bridge (approx 50,000 tons). Enerpac Integrated Solutions projects include engineering the supporting assembly of the ‘Bird’s Nest’ stadium in Beijing, the launch of the world’s highest viaduct, France’s Millau Viaduct, and lifting the famous Golden Gate Bridge in San Francisco for seismic retrofits. The PLC-controlled ultra-heavy lifting technology is available globally through its Integrated Solutions organisation, which recently incorporated the Dutchbased Hydrospex heavy lifting specialists and Singapore-based Team Hydrotec into its portfolio of capability in the accurate control of positioning, speed and force to facilitate the precise movement of some of the largest and bestknown structures on Earth. Mr Wang said South Asia has


intensified its onshore and offshore resources development, including deep drilling projects in more than 1000 m of water. “The standards of stability and safety required reflect exactly these proven capabilities,” he said. The range of technologies available from the one organisation extends from PLCcontrolled and synchronous lifting, through to specialised technologies of such as those of Hydrotec and Hydrospex. Hydrospex designs and manufactures systems and products for the heavy lifting market internationally, including strand jacks, hydraulic gantries and skidding systems. Its customer base includes heavy lifting companies such as Mammoet, Sarens, Burkhalter and its US partner Bigge. Based in Singapore, Team Hydrotec provides engineering and integrated solutions systems to the Asian energy, ship building, mining and other industries. Projects in which it has been involved include weighing a 16000 ton oil rig platform, ship lifting, crane repair and torque wrench applications in industries including metal fabrication, oil and gas, construction utilities, steel, ship building, manufacturing, aerospace, rail, materials testing, chemical, electrical, agriculture, research, and mining. Team Hydrotec has also developed a computerised metal camber system to bend I beams quickly and accurately to the ideal angle offering maximum strength and loading when used to build bridges. Hydrotec and Hydrospex will operate as part of Enerpac’s Integrated Solutions business within the industrial Segment of Actuant, working closely with the Industrial Tools Division of Enerpac. u



business news

Airbus renews its support for UN biodiversity campaign

JAPAN – Aircraft manufacturer Airbus extended its support for the United Nations Convention on Biological Diversity (CBD) in Aichi Nagoya, Japan. It builds upon an existing partnership which since 2008 has seen the company use its global reach to help educate young people worldwide about the importance of biodiversity – the rich variety of life on earth. In recognition of its support to date, Dr Ahmed Djoghlaf, Executive Secretary of the CBD presented Airbus with an award. Previous recipients include the likes of Mr. Lee Myung-bak, the President of the Republic of Korea. Airbus is among a number of leading companies invited to attend a ministerial dialogue: ‘Business Solutions to Achieve the Aichi Nagoya Biodiversity Targets’.

The session will feature plans for a UN-led initiative on ‘business and biodiversity’. Others present include Japan’s Minister of Environment and the President of The World Bank Group.

Receiving the award on behalf of Airbus, Dr. Rainer Ohler, SVP Public Affairs, Communications and Environment said: “We want to help the CBD in raising awareness amongst young people and industry about the crucial role biodiversity plays in our lives and our futures. Not only is this the right thing for any global company to do, but if the aviation industry is going to further improve its environmental performance, nature may just hold some of the answers.” Dr. Ahmed Djoghlaf, Executive Secretary of the CBD, added:

“Companies also depend on biodiversity and its loss represents a very real business risk. As users and beneficiaries of biodiversity, businesses have an integral role to play in its preservation and management. We at the CBD are delighted that Airbus continues to demonstrate its support and we call upon more companies to follow its example.” Drs. Djoghlaf and Ohler hope to encourage others to join Airbus in using its global reach to back The Green Wave. The CBD’s initiative encourages young people to celebrate life on earth and in particular on the International Day of Biodiversity, 22 May. As the celebration passes through the world’s time zones it creates a ‘Green Wave’ of awareness and activity from east to west around the planet. u

Trade with China

NEW ZEALAND – Most of New Zealand’s exports to China are agricultural but that might be about to change. One of the unexpected opportunities of the Free Trade Agreement (FTA) with China for New Zealand is the attraction of investment from companies in other countries that already export to China but are subject to tariff barriers.

Manufacturing companies, particularly those in Europe, are looking at New Zealand as a prime location to manufacture in and to access the China market from. To date, most of the exposure that New Zealand heavy engineering has had to China has been the nemesis of ‘cheap’ imports’, though there have been some notable exports as well, usually in the more specialised

and higher-value end of heavy engineering.

As offshore companies begin to look at New Zealand as a gateway to China, established local companies need to be aware of the opportunities that may develop. These could include becoming local suppliers to these companies which might allow access to international supply chains or entering into joint ventures. As a manufacturing base for highvalue products, New Zealand has the additional advantage of being a relatively low-cost producer in comparison with much of Europe and the USA. So it is hardly surprising that offshore companies interested in the China market are looking seriously at investing

Industry Commentary by Heavy Engineering Research Association Industry Development Manager Nick Inskip here. New Zealand companies will certainly be watching with interest u

business news



Albitech moves to acquire market share in Asian aerospace sector

ISRAEL – SolidWorks CAD Solution Partner, Albitech Ltd, the developer of the SolidWorks Gold Certified Solution partner program, Inspection Geni (IG), has appointed Advanced Technology Enterprise (ATE) as its authorised Singapore reseller. “The addition of IG to the solutions portfolio on offer by ATE will position us to benefit from ATE’s solid representation in the aerospace, defense, automotive and engineering sectors,” said Doron Sashkis, CEO of Albitech. “We provide leading edge CAD / CAM / CAE / PDM technologies and innovative solutions to these industries,” said Sng Eng Sim, General Manager, ATE. “Our clients range in size and represent all industry segments and we believe that Inspection Geni will be a natural fit to the solutions we offer them.

“Quality control is vital to the success of any manufacturing project, particularly in these sectors, and we believe that our customers will gain major value by having the ability to automatically create Interactive Dimension trees, balloon drawings and First Article Inspection sheet reports within SolidWorks,” he added. “The combination of Inspection Geni V 3.0 and SolidWorks 2011 allows manufacturers that use SolidWorks to both speed up their inspection processes; and give users the ability to work with multiple versions and multiple drawings without any limits on the ability to track changes – areas that have been shown to be significant pain points,” added Sashkis. According to Sashkis, IG addresses both of these points by automating

traditionally manual inspection process. “IG automatically balloons SolidWorks drawings and generates inspection reports in Excel or PDF formats,” he said, “providing designers and product managers with a single uniform platform to deal with inspection reports.”

IG’s ability to track design changes directly in SolidWorks without the use of a PDM is also seen as an industry game changer. “Creating interactive chronology-based dimension trees, and offering complete dimension change tracking reports for companies that do not have expensive PDM systems, is a significant benefit,” he concluded. Inspection Geni is a SolidWorks Gold-Certified Partner add-on that enables designers and engineers to expedite business processes, automate approval processes, slash costs and enable paperless documentations for storage and retrieval. Inspection Geni allows manufacturers to close the gap in going fully paperless by completely eliminating the need to print documents for inspection using its fast,

Centre in Singapore. We provide leading edge CAD / CAM / CAE / PDM technologies & innovative solutions to the engineering industries. Our clients range in size and represent all industry segments, giving our team members the opportunity to change the world, one client at a time. The company’s engineering team brings with them many years of experience to ensure our clients enjoy the full benefit of our solutions. The senior management team brings with them over 50year of combined experience in the field of engineering.  With extensive industry domain knowledge, our people can compliment your engineering and manufacturing team, to achieve higher efficiency and effectiveness in the workplace. ATE has an array of proven solutions offerings in our arsenal - SolidWorks Suite of Products, 3DVIA Composer, SolidWorks Gold Partner products: SolidCAM 3DQuickPress, and SimpoeWorks. In addition, we also represent Altair HyperWorks, PBS Works and more! u

low-cost, and fully digital system. Albitech Ltd was founded in 2007 and offers consulting and programming solutions for multiaxis CNC Machines, developing software tools that enabling engineers and manufacturers to dramatically increase productivity, slash development costs and boost time to market, Rapid ROI and Adopt Environmentally Friendly Industry Standards. Advanced Technology Enterprise (ATE) is the fastest growing SolidWorks Authorised Reseller & Certified Training / Support





Trade Shows August 2011 KOREA 2011 International Conference on Applied Mechanics and Manufacturing Technology 18-19-20 August. Jeju,

September 2011 AUSTRALIA EPSM-ABEC Biomedical Engineering 14-18 September, Darwin Convention Centre. NEW ZEALAND Rugby World Cup CHINA ICC-China 20-21 September, Xi’an CHINA China Paper/China Forest 19-21 September China International Exhibition Centre, Beijing. CHINA VIV-China 21-23 September 21-23 September CHINA Airport and Air Traffic Xpo China 2011, 23-26 September, Beijing

October 2011 CHINA CEBIT Asia 2011 26-29 October, Shanghai Exhibition Centre CHINA 2011 International Conference on Engineering and Business Management 28-30 October. Shanghai. INDIA International Journal Conference in Recent Trends in Civil Engineering. 30 October, Trivandrum, Karala. www.ijce.engineersnetwork

November 2011 MALAYSIA Engineering Conference IENCON 30 November – 2 December, Pulman Hotel, Kuching, Sarawak. www.feng.unimas

December 2011 SINGAPORE 2011 IEEE International Conference on Industrial Engineering and and Engineering Management 6-9 December. Furana

my say




The quest for a ‘new’ normal

t was estimated that there were more than 670 million cellphone connections in India by August last year, with the number said to be growing by close to 20 million a month, based on official government data. The cellphones are mostly sold in the malls and neighbourhood outlets patronised by the working class. It is a frenzy involving more that half of the present Indian population of about 1.2 billion. By comparison, the UN data showed, only 366 million Indians had access to a private toilet or latrine in 2008, “leaving 665 million to defecate in the open”. About 18% of India’s urban population and 69% of its rural dwellers defecated daily in the bushes, the beaches and open fields, according to a World Health Organisation and UN Children’s Fund report. It underlines the perplexing disparities and priorities of the country which experiences vibrant economic growth of about 8% a year. While it is true that tens of millions have benefited from India’s emergence as an economic power, the basics are clearly in need of more attention. Just last month, a study by the World Bank’s Water and Sanitation Programme found that the lack of toilets costs India more than US$50 billion a year — mostly through premature deaths and hygiene-related diseases. It suggests that India bear a higher economic cost than other Asian countries — Vietnam, Cambodia, the Philippines and Indonesia — from inadequate collection of human excreta. Consequently, the study noted more than three-quarters of the premature mortality-related economic losses are due to deaths and diseases in children less than five years of age. Diarrhoea among children in that age bracket accounts for more than 47% of

the total health-related economic impact. Ironically, India is known for its relatively cheap, world-class medical care for tourists, mainly from the developed world. As we take stock of the first decade of the 21st century, such a situation, or “old” normal, is not familiar to India alone. Indeed, it is a real dilemma for the world in general and developing countries in particular. This cannot be more pressing from the view of at least three major global agendas sanctioned by the international community through the UN, which will see their completion in less than five years. These are the Millennium Development Goals, Education for All Programme and the UN Decade on Education for Sustainable Development, which ends in 2014. Given the assessments to date, there seems little hope that any of these goals will be satisfactorily met, implying that global commitment to things “international” is still wanting, let alone equity in living standards in the international community. These are the most pressing issues as we move forward in the much-touted globalised borderless village when in reality there are still many divides, ranging from structural to the intangible, that serve as barriers to improving participation under the so-called globalisation banner. Several age-old disparities remain deep-rooted, be it in relation to wealth, ethnicity, language and geography between the urbanites and ruralites globally. Asia, in particular, and the non-

In November last year, the UN reported that there are many more people with cellphones in the Indian population than those with access to a toilet. Professor Tan Sri Dato’ Dzulkifli Abd Razak, Vice-Chancellor of Universiti Sains Malaysia. Originally published in ‘The Edge Malaysia’ on the 10th January 2011.

West in general, are therefore at a crossroads. The dilemma they face is either to seek a “new” normal in redefining what development means in the context of sustainable development or accommodate the prevailing Western-centric “old” normal of what development is. As an executive director of an organization that works in the Indian slums put it: “How can we talk about development without health and education?”. In other words, for the slogans of “borderless”, “globalisation” and “internationalisation” to have an inclusive global meaning, the status quo needs to be revisited. The major challenges ahead will be even more complex should some of targets of the global agendas mentioned above fail to be realised. Put together, we are hard-pressed to keep up with the adage that Continues page 26



business news

Philippines new home base of

MANILA – The Foundation which improves the social and economic impact of grassroots telecentres around the world is pleased to announce that it has officially opened its doors today in the Philippines. The international initiative is now transferred from Canada’s International Development Research Centre (IDRC), where it was housed and grown since 2005, to the foundation, an independent, nongovernmental organization based in Manila. “We welcome with open arms,” says Sec. From page 25

Ray Anthony Roxas-Chua III, Chairman of the Philippine government’s Commission on Information and Communications Technology (CICT). “To locate this global initiative in the Philippines is truly an honor that confirms our nation’s status as an emerging leader in rural informatics.”

Created in 2005 by IDRC, Microsoft, and the Swiss Agency for Development and Cooperation, has brought the benefits of the knowledge society to poor and isolated communities by making telecentres stronger and more sustainable. Telecentres are public places where people can use

The quest for a ‘new’ normal

“education is a leveler of society”. And this became apparent in the last few years when education took a back seat in many developing countries that were experiencing economic problems following the uncertainties in the world economy. Leaders of governments and institutions took the easy way out by cutting costs, thus squeezing the poor even more. In many countries, education is a tradable commodity driven by fee hikes, making accessibility to education a lot tougher. In short, the future is predictably gloomy if the “old” normal remains unchallenged to meet the demands of a society that is more equitable and sustainable internationally. We need to urgently seek new parameters, keeping the societal context in mind to cater for the diverse interests, missions and visions of the international community. We have to move out of the “onesize-fits-all” trap. The present

ecosystem is no longer tenable as we create a just post-industrial society in the coming decades. The international development secretary of the UN is reportedly set to deliver a withering critique of the failure of some of the world’s most economically developed countries to contribute to international disaster relief funds, which are already short of US$100 million for 2011. The criticism comes amid evidence that despite the Haitian earthquakes and recent Pakistan floods, many governments are cutting back on donations to emergency relief funds. Last year has already been dubbed “a dreadful year for humanitarian disasters”. And it looks like the quest of a “new” normal needs to be intensified and serve as a wake-up call to the rich nations. We need to fulfill the global agenda that the world committed itself to some 10 years ago. Otherwise, there will more of the same in the decades to come. u

computers, the Internet and other emerging technologies to help promote economic and social development. “’s transfer to the Philippines represents success for us”, says Rohinton Medhora, Vice-President, Programs at IDRC. “It is also very much in keeping with IDRC’s mandate of building capacity in the developing world by housing and then transferring programs when they are able to function independently.” Since 2005, and now the foundation has worked with 200+ telecentre networks and organisations spread across 70 countries to provide the support, tools, and opportunities that telecentres need to help people overcome poverty and create economic opportunities. Together, we reached approximately 40-million telecentre users and counting. “Microsoft is proud of what has accomplished in its first five years,” says Akhtar Badshah, Senior Director, Community Affairs, Microsoft. “We look forward to seeing the initiative we helped create continue to make a difference in development through the new Foundation.” The Foundation will continue to be a catalyst for the worldwide telecentre movement and work toward building an inclusive knowledge society. We will also work to deepen its engagement with the 200+ telecentre network partners who have already helped make our global initiative a success. The foundation gratefully acknowledges the support of IDRC, Microsoft, SDC and the CICT. u

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IPv6 Readiness Tracker utilises Google Analytics

BRISBANE – The Asia Pacific Network Information Centre Research and Development Lab

(APNIC Labs), in partnership with RIPE Labs, has launched a tool to help network operators test the IPv6 capabilities of their users. The release of this tool coincides with World IPv6 Day, a global “Test Flight” opportunity for any network operator wishing to participate by offering their services over IPv6. Regional IPv6 allocations have steadily increased during the past 18 months, especially since the Asia Pacific region began rationing IPv4 address space to extend the life of the free pool for as long as possible. Full IPv6 deployment still presents challenges for many network operators, who have concerns about their users experiencing service disruptions during IPv6 deployment.

This code tests the IPv6 capability of your clients using a separate test set, and does not require you to set up your own systems on a dual-stack platform.

affect end-users’ experiences.”

If you are already using Google Analytics to track the way clients interact with your content, then this is a simple addition that will allow you to understand the extent to which visitors to your web content are capable of using IPv6 and estimate the level of performance impact that this may have.”

APNIC’s Role in the Internet Community

The IPv6 Tracker is a simple code that can be utilized by anyone with a Google Analytics account, monitoring visitor traffic to assess the effect of IPv6 deployment on any individual website. The reporting structure shows statistics on the interaction between end users and web content over IPv4, IPv6, or dualstack networks.

“As an added benefit, aggregated statistics will contribute to the ongoing research on IPv6 deployment,” Mr Huston said.

As one of the five Regional Internet Registries (RIRs), APNIC is a source of information and a point of exchange among members of the community. APNIC Director General, Paul Wilson, said IPv6 deployment is only possible with cooperation and action across the entire Asia Pacific Internet community and other stakeholders. “We are taking a proactive role in IPv6 deployment by offering the IPv6 Tracker, to help regional organizations make betterinformed decisions. This tool makes it easy for network managers to present a tangible

It is available from:

business case for IPv6 deployment,” Mr Wilson said.

“We would encourage anyone in any phase of IPv6 planning to use this tool, as it will not actually

nextSTEP Contact: Louise Flynn u

“This is the best contribution APNIC can make to World IPv6 Day, because it allows site operators to measure their clients’ IPv6 capabilities Bbefore making any commitments to offer their services over IPv6,” Mr Huston said.

KUALA LUMPUR – Realising that efforts to reduce the release of heavy metal contamination in industrial waste have not taken seriously, Universiti Sains Malaysia (USM) has come out with a new innovation that can absorb heavy metals that are hazardous to man through the use of green technology made from fungal and local industrial waste.

created by Assoc. Prof. Mashitah Mat Don, from the School of Chemical Engineering, USM.

“The advantage of this approach is that you don’t need to make any changes to your content platform.

The product known as ‘Green BioSorbent for Heavy Metals Removal’ (PycnoSORB) was

While most operators may recognize the need to devise a plan for IPv6 deployment, the next step is justifying space in the budget for that plan. APNIC Chief Scientist, Geoff Huston, said the Google Analytics tracker presents a viable learning opportunity for many network operators without risking accessibility to their users.

USM invents heavy metal absorber for industrial waste According to Assoc. Prof. Mashitah Mat Don, PycnoSORB has been tested and it can filter almost all hazardous metals in industrial waste before being released into ecosystem. “Most of the waste treatments currently used by the industry are based on precipitation, evaporation and absorption by

Continues page 29



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A*STAR offers precision engineering capabilities SINGAPORE – Riding on Singapore’s strong 10.5% annual growth by the manufacturing sector in 2010, the Singapore Institute of Manufacturing Technology (SIMTech), a research institute of the Agency for Science, Technology and Research (A*STAR), aims to help the Precision Engineering (PE) industry soar to greater heights by equipping the industry with innovative and advanced technological capabilities to migrate into the specialised oil & gas, aerospace and medical technology (medtech) industries. The three initiatives provide research and development platforms, technical expertise and facilities which the Small and Medium Enterprises (SMEs) within the PE industry can leverage on. The Precision Engineering Centre of Innovation (PE COI), a national resource located at SIMTech, is proactively developing new initiatives and technologies to upgrade the PE SMEs.

Oil & Gas Initiative The Oil & Gas initiative develops and equips the PE companies with the critical processes needed to produce high value oilfield equipment products, tools and components. The initiative aims to develop indigenous deep-hole gun drilling capabilities on exotic materials to attract a new range of high performance and corrosion resistant oilfield equipment manufacturers to Singapore. Twenty two companies— including oilfield equipment manufacturers, equipment builders, gun drill manufacturers and sensors/lubricant manufacturers are participating in an International Gun Drilling Benchmarking Project led by

SIMTech with participants from the USA, Germany, UK, Japan and Singapore.

Aerospace Initiative Taking a multinational corporation-led approach, a research consortium is formed by aerospace multinational and local companies to create niche capabilities in component and MRO manufacturing and nondestructive testing. Aerospace companies are able to capitalise on SIMTech’s cutting edge facilties including CT X-ray for internal structure measurement, residual stress measurement system, material characterisation, robotic automation, ultra precision machining and cutter design to develop advanced manufacturing solutions.

MedTech Initiative The medtech initiative, launched in October 2009 with 26 members, helps local companies venture into the growing medtech industry through a mix of value chain, technology and capability development projects. PE and electronics companies leverage on this initiative to carry out strategic research and development of medtech technologies through alliances with different industry players in the medtech value chain at lower risks and costs. Driven by SIMTech and supported by IE Singapore, Singapore Economic Development Board, SPRING Singapore and the Singapore Workforce Development Agency (WDA), Singapore Precision Engineering and Tooling Association and the Biomedical Engineering Society, the medtech initiative aims to diversify the capabilities of local manufacturing industries to medtech manufacturing and help

them to overcome barriers in this shift. Since its inception, the Consortium has 31 members. A Polymer Biomedical Product Design Collaborative Industry Project was completed. Six companies have gained competent capability in the design and manufacture of moulds and computer-aided simulation of moulding processes, specifically applicable to high value biomedical devices. In capabilities enhancement, close to 60 industry engineers have completed the Workforce Skills Qualifications (WSQ) Graduate Diploma in Medtech Manufacturing jointly developed by SIMTech and WDA. Courses in Federal Drug Administration and European Union regulatory requirements, standardisation, characterisation and manufacturing were also held. Dr Lim Ser Yong, SIMTech’s Executive Director, commented: “The 3 initiatives showcased at MTA 2011 and implemented by PE COI are driven by industry needs. These efforts will shape the future of the PE industry to focus on high value-add and complex manufacturing, offering the PE industry a sustainable avenue for growth and development.” A*STAR is the lead agency for fostering world-class scientific research and talent for a vibrant knowledge-based and innovativedriven Singapore. A*STAR oversees 14 biomedical sciences, and physical sciences and engineering research institutes, and seven consortia & centres, which are located in Biopolis and Fusionopolis, as well as their immediate vicinity. A*STAR supports Singapore’s key

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economic clusters by providing intellectual, human and industrial capital to its partners in industry. It also supports extramural research in the universities, hospitals, research centres, and with other local and international partners. The Singapore Institute of Manufacturing Technology (SIMTech) is a research institute of the Science and Engineering Research Council (SERC) of the Agency for Science, Technology and Research (A*STAR). SIMTech develops high value manufacturing technology and human capital to contribute to the competitiveness of the Singapore industry. It collaborates with multinational and local companies in the precision engineering, electronics, semiconductor, medical technology, aerospace, automotive, marine, logistics and other sectors.

Oil & Gas Technology In the oil & gas sector, deep gun drilled holes are created on extremely hard and corrosion resistant, nickel and chrome-based alloys to serve as safety, control, wire-lines and flow-line holes to allow for effective command, control and communications between the down-hole tools with the surface control crew. To facilitate communication between surface and the down-hole tools, companies need to create high aspects ratio holes of 700 that are of 5m deep ? 7mm in diameter to accommodate flow and wire lines. Many of these down-hole tools are now equipped with highly sensitive instruments such as gamma rays,

X-rays and magnetic resonance imaging that requires an added layer of protection using nonmagnetic materials such as Inconel 718, Incoly and K-Monel. Such materials are not only expensive but extremely difficult to drill and machine. If the drills are made with incorrect geometry or the drilling parameters are sub-optimal, these will cause rapid tool wear, drill breakages and misalignment of holes which will lead to costly damages in terms of lead time and material costs. SIMTech’s oil and gas initiative is ready to impart knowledge on straightness control in gun drilling of holes, new tool geometry for nickel alloys, gun drills, machine tools, materials and lubricant required for the manufacture of oilfield and down-hole equipment through its line-up of workshops, seminars, consultancies, collaborative industry projects and consortia.

MedTech Technology Printed Functional Film is a disruptive technology platform for unmet needs in applications that cannot be addressed using conventional semiconductor or circuit board technologies. By leveraging on roll-to-roll processing and additive patterning of printable functional materials, functional films such as printed heater and printed lighting can be achieved. Potential applications for printed heater include wearable heater and demister in buildings and transportation. Potential applications for printed lighting include backlighting and ambient lighting.

To create a long-term cutting edge capability, surface finishing technologies are of particular value in the aerospace industry. To improve process yield and create high productivity and part reliability, a collaborative research project is being organised in the area of controlled surface finishing through peening. This project aims at creating understanding in peening capability and peening limits for both manufacturing and MRO activities in the industry. nextSTEP Contact: Ms Lee Swee Heng, Singapore Institute of Manufacturing Technology (SIMTech) u From page 27

USM invents heavy metal absorber

ion exchange resin methods and they incur a high cost. However, through PcynoSORB, heavy metals can be separated using fungal and recyclable industrial waste. This can reduce the cost for the process,” she said while chairing the special media conference related to the research at the Chancellery Conference Room, Universiti Sains Malaysia. She added that PycnoSORB is cheap and easy to produce, fast and can absorb heavy metals at a low wastage concentration. Furthermore, it can be recycled 5 times for every usage. According to Assoc. Prof. Mashitah, PycnoSORB does not have negative effects on the environment or humans and it has the potential to be used by the automotive, electronics and coating industries which are directly involved in the process of segregating heavy metals from the industrial waste produced. The research, carried out with coresearchers, Prof. Subash Bhatia and Yus Azila Yahya from the School of Chemical Engineering was funded by a USM Research grant of RM 40 000. u




ASEAN countries should manage the growth and development of the internet


resently, the distribution of IP addresses in ASEAN countries is managed by an external agency based in Australia and is regarded as having failed to understand the needs of the ASEAN countries that subscribe to the service.

According to Professor Sureswaran Ramadas, the provision of IP addresses for ASEAN countries is managed by the Asia Pacific Network Information Centre (APNIC) which is based in Australia and all ASEAN countries have to pay the company for the addresses. Although APNIC receives payment, it is unable to provide proper service to ASEAN countries for various reasons. One of them is the failure of APNIC to fulfil local needs and contribute to the economic development of ASEAN countries that have paid for the service. “Thus, it is only right that internet services in ASEAN countries are managed locally through the establishment of the Regional Internet Registration (RIR), based in the ASEAN country itself and which can understand the needs of these countries,” he said while presenting his Professorial Public Lecture titled ‘Who Rules the Internet?’(‘Siapa Yang Menguasai Internet?’). According to Prof. Sureswaran, the RIR that is currently in operation supervises the distribution and registration of internet addresses in ASEAN countries. As this RIR does not have executive committee members from ASEAN countries, it has created a vacuum in their internet development. “Thus, ASEAN countries could consider the need to establish their own RIR, perhaps known as ASEANNIC so that ASEAN countries could reap benefits that match the payments being made to RIR. Prof. Sureswaran Ramadass is currently the Director of the National Advanced IPv6 Centre, Universiti Sains Malaysia. He received his Bachelor of Science degree in Electrical Engineering/Computer Engineering (Magna Cum Laude) and a Master’s in the same course from the University of Miami, Florida in 1987 and 1990 respectively. He then received his Ph.D in Computer Science from Universiti Sains Malaysia in 2000. He is well-known for his research on internet networking which he started when he began serving in USM in 1992. He was made Wireless World Research Forum Fellow in April 2010 for his contributions in Next Generation Networks and received the National Academic Leader (Tokoh Negara) Award in 2008 from the Minister of Higher Education, Malaysia.

Professor Sureswaran Ramadas

In 2009 and 2007, he received the Malaysian Innovation Award from the Prime Minister of Malaysia and the Minister of Science and Technology, Malaysia for his contributions towards developing network security monitoring as well as the development of Multimedia Conferencing Systems. Professor Sureswaran is also responsible for the successful listing of Mlabs System Berhad, a hightechnology video conferencing company in the Malaysian Stock Exchange in 2005. Mlabs is the first university-based company to be listed in Malaysia. He was the Chairman of the Research Steering Committee for Malaysian Research and Education Network (MYREN) and is the IPV6 Domain Head for MYREN. He was also the Chairman for Asia Pacific IPv6 Task Force, involved in promoting IPv6 globally. To date, Prof. Sureswaran has published more than 110 journals and research papers, over 12 patents and is involved in various development programmes, conferences, seminars and workshops related to network research. He has also received more than USD7 million in research funding and grants from various organisations towards development of network research. u




Breaking the Resource Curse NEW YORK – It is known as the resource curse, a paradox where countries rich in oil, gas, and extractive minerals are unable to translate such wealth into sustainable development, and instead are roiled by poverty, poor health, and rampant corruption.

Timor’s sustainable development, something is going very wrong. With only one million people, new laws and institutions, and $7 billion in oil revenues, all signs point in a positive direction,” said Susan Maples, a policy researcher and analyst at the VCC.

The country of Timor-Leste, also known as East Timor, has an abundance of oil and gas, as well as an opportunity to put in place mechanisms to spend the revenue that flows from it responsibly. Toward that end, it has enlisted the Vale Columbia Center on Sustainable International Investment (VCC) at Columbia Law School to help ensure its resources lift up the nation and create a vibrant, diversified economy based on the well-being of its people before the resources run out.

Maples, who has done extensive comparative research on extractive industries and sustainable development, has been to TimorLeste multiple times to strategise with officials on oil-sector development.

“Timor-Leste has the development indicators of a country with extreme poverty, like some of the highest rates of malnutrition and maternal mortality, but they have a $7 billion oil revenue account,” said Lisa Sachs ’08, the VCC’s Associate Director. The VCC received an $800,000 grant from the Open Society Institute last year to promote integrated development in TimorLeste in collaboration with the Revenue Watch Institute. Experts from the Earth Institute at Columbia University are also involved in the project, which is being managed by the VCC. Timor-Leste offers a rare opportunity, in that it is a small country of one million people, still in the nascent stages of government and institution-building. Timor-Leste only gained full independence in 2002, after four centuries of colonial rule by Portugal and a quarter-century of often-violent occupation by Indonesia. Oil revenues to Timor-Leste first came on line only in 2005.  “To put it in the most dramatic terms, if the international community cannot support

The early indicators are indeed promising, said Jen Chao the VCC’s Resident Coordinator in TimorLeste. “You have this political will that doesn’t always exist in other resource-rich countries. Everyone is working to make this oil revenue translate into sustainable development.” How to do this is the crux of the project.It focuses on increased investment in agriculture, health, education, and infrastructure, using the experience of best practices in other places such as the Millennium Villages, one of the Earth Institute’s key projects. The VCC also is providing advice on a framework that encourages beneficial foreign investment in the country. “If you add up the returns on investments in human capital, health and infrastructure in a country that is impoverished, the returns are probably 10 times greater than what they’d get in a U.S. Treasury bond,” Sachs said. “But that thinking is not the norm. Our approach is don’t wait until the institutions are strong enough. Let the international community help start building the institutions. There’s no point in missing a generation.” Despite all the oil revenue, TimorLeste remains a nation that is 80 percent agrarian, which has prompted efforts by the VCC and Earth Institute to help diversify the economy toward increased

Jen Chao with Timor-Leste Prime Minister Xanana Gusmao

agricultural production and tourism. “We’re taking a holistic approach to this project,” Sachs said. “Susan is looking at how the oil will be taken out of the ground at the same time as an agricultural specialist is suggesting which seeds are best for development and food security.” Other colleagues, like VCC economic analyst Perrine Toledano have been helping to calculate a five-year public investment plan that spans various sectors, including infrastructure and health. While Timor-Leste is a country that does not lack in international assistance, the advantage of the project is that the team works directly with the government. “We were specifically invited by the government. We’re not doing any program work that’s not through them,” Chao said, whose efforts have been bolstered at the Law School by students who work with the team on comparative research of treaties and other legal analysis. “Working with students is one of my favorite parts of this type of work,” said Sachs, who like Maples and Chao, are alumnae of the Law School’s Human Rights Clinic run by Peter Rosenblum, the Lieff, Cabraser, Heimann & Bernstein Clinical Professor in Human Rights. “Peter is someone who has seen the connection between development and human rights,” Sachs said. “He claims that our center keeps poaching his former students, but it’s because he’s teaching this connection between investment, development and human rights.” u



Asia Manufacturing News July 2011  

Asia Manufacturing News July 2011