PLANT WEST September October 2012

$12.00

ADVANCING CANADIAN MANUFACTURING Volume 7, No. 03 >> Supplement, PLANT >> September/October 2012

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Natural

GAS

Westport Innovations bets on the other alternative fuel to power cars

HIGHLIGHTS Athabasca heats up bitumen extraction MARL Technologies takes a subsea plunge Apply CBM to hydraulics care for savings Global competitiveness: We’re No. 14!

PM 40069240

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Editorial

Opportunity knocks, despite the critical din

10

W

hen it comes to matters of economic growth, Canada’s oil sands are front and centre. They’re the object of heated debate and criticism internationally, and increasingly at home.

So many complaints. Energy is inflating the value of the dollar and making it tough for manufacturers and exporters. Oil sands development is destroying the landscape.

Tailings ponds are killing ducks and they’re bad for the eco-system. There’s not enough being done to curb greenhouse gas emissions, which are accelerating with rapidly growing development and production. And we learned mere weeks after Alberta enacted legally enforceable pollution limits on the oil sands that industry data indicates those limits will soon be breached by emissions of acid rain-causing sulphur dioxide and nitrogen dioxide.

There is also the din created by the pipeline debates. Northern Gateway and Keystone are creating a furor among premiers, native groups, governments, environmentalists and regular folks concerned about the environment, spills and who gets to pluck the fattened, golden goose.

These are all legitimate concerns, but before the goose ends up in the fryer, a few words about harvesting the eggs.

The Canadian Energy Research Institute (CERI) has deployed stats that show new oil sands development will amount to about $84 billion a year for the next 25 years, and that all provinces benefit. About $117 billion will be spent on goods and services in the other provinces, and they’ll also pick up 23% of the employment.

Obviously, Alberta is benefiting the most – it’s looking at $184 billion just in royalties, but there’s also plenty of business for qualifying local manufacturers as development proceeds, and there are the MRO needs of existing operations (estimated by CERI at $19 billion in 2012). The trick for local firms is to get in the door.

At the last National Buyer/Seller Forum (March 2011), Chris Eland from consulting firm Sierra Systems, previewed the results of a study that analysed supply chain opportunities, particularly for Alberta metal fabricators. There were some useful tips for companies planning to capture some of that MRO procurement.

The report notes more emphasis is placed on location, service capability, support services, history, past performance and references. Supply costs are a key criterion, as is quality, complying with standards, codes and certifications; meeting delivery times, specs and being on budget; maintaining a high level of safety and environmental performance; providing top-notch service, especially for critical machines and components; and innovation capability to improve processes.

This is the kind of information companies can expect to glean from this year’s National Buyer/Seller Forum (Oct. 23-25) in Edmonton, an event that should be on the calendar for any western company eyeing the oil sands procurement bonanza.

In the spirit of full disclosure, the event (www.nationalbuyersellerforum.ca) is under new management: JuneWarren-Nickel’s Energy Group, part of the Glacier Media Group (publisher of PLANT and PLANT West), is running the show in partnership with the Alberta Government and Canadian Manufacturers & Exporters.

The new proprietors have set up a great web site (The Canadian Oilsands Navigator, www.canadianoilsandsnavigator.com) that provides detailed information on all the projects in the oil sands.

Despite all the critical chatter, there are opportunities for manufacturers that can deliver specialization, innovation and value.

The goose awaits.

Joe Terrett, Editor Comments? E-mail jterrett@plant.ca.

Vol. 7, No. 03, September/October 2012 A supplement to PLANT Executive Publisher: Tim Dimopoulos 416-510-5100 tdimopoulos@bizinfogroup.ca Publisher: Michael King 416-510-5107 mking@plant.ca, mking@cienmagazine.com

District Sales Managers: Amanda Bottomley 416-859-4527 abottomley@canadianmanufacturing.com Catherine Martineau (Quebec) 647-988-5559 cmartineau@bizinfogroup.ca Deborah St. Lawrence 416-510-6844 dstLawrence@canadianmanufacturing.com Derek Morrison 416-510-5224 dmorrison@canadianmanufacturing.com Ilana Fawcett 416-510-5202 ifawcett@canadianmanufacturing.com

Group Editorial Director: Lisa Wichmann 416-510-5101 lwichmann@canadianmanufacturing.com

Market Production: Barb Vowles 416-510-5103 vowlesb@bizinfogroup.ca

Editor: Joe Terrett 416-442-5600 ext. 3219 jterrett@plant.ca

Circulation Manager: Diane Rakoff 416-510-5216 drakoff@bizinfogroup.ca

Assistant Editor: Matt Powell 416-510-5145 mpowell@plant.ca

Editorial Advisory Board: Robert Hattin, Hattin Holdings • Ron Harper, Cogent Power • Greg MacDonald, Wentworth International Services • Roy Verstraete, Anchor Danly

Contributing Editors: Ron Richardson, Steve Gahbauer Art Director: Kathy Smith 416-442-5600 ext. 3215 ksmith@plant.ca

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BIG MAGAZINES LP Vice-President of Canadian Publishing: Alex Papanou President of Business Information Group: Bruce Creighton

12 Features

>> SUSTAINABILITY 6

ENERGY Westport Innovations is looking at the consumer car market to broaden the appeal of natural gas for more sustainable power.

>> MANAGEMENT 7

PRICING STRATEGY Despite what you may think, you can raise prices and incease your margins.

>> INNOVATION 8

DESIGN MARL Technologies takes its expertise from landlocked Edmonton to develop a subsea drill for use off the coast of Australia.

10 EXTRACTION Athabasca Oil Sands Corp. has developed a thermal process that will liberate hard to tap bitumen trapped in rock cavities.

>> TRENDS

11 ECONOMY Canada slides to 14th on the WEF competitiveness rankings.

EXPORTING A coherent strategy is needed for trade with Asia.

>> OPERATIONS

12 MAINTENANCE Use condition-based maintenance to find the silent killers in hydraulic systems.

TECH TIP How to prevent bearing failures.

LEADERSHIP What it takes to be a maintenance leader.

>> TECHNOLOGY

11

13 PRODUCTS AND EQUIPMENT What’s new in industrial products, machinery and equipment.

PLANTWARE Verify ethernet connectivity; Calculator targets pump costs.

Departments 4 PLANT Pulse Industrial News Careers

5 Events 14 Postscript

PLANT—established 1941, is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. Tel: 416-442-5600, Fax: 416-510-5140 80 Valleybrook Dr., Toronto, ON M3B 2S9 PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 E-mail: privacyofficer@businessinformationgroup.ca. Mail to: Privacy Officer, 80 Valleybrook Drive, North York, ON M3B 2S9 SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information contact us at 1-800-387-0273.

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publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. Publications Mail Agreement #40069240. Performance claims for products listed in this issue are made by contributing manufacturers and agencies.

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PLANT WEST receives unsolicited materials including letters to the editor, press releases, promotional items and images from time to time. PLANT WEST, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. This statement does not apply to materials/pitches submitted by freelance writers, photographers or illustrators in accordance with known industry practices.

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ISSN: 1929-6738 (Print), 1929-6746 (Online)

PLANT WEST 3

12-09-18 10:31 AM

Departments

>> Industry View

>> Pulse

Economy expands as global risks wane

T

he second quarter was somewhat disappointing, according to the economic outlook

by RBC Economics Research, but moderate growth is expected through 2013.

The latest Economic and Financial Market Outlook by the bank forecasts that Canada was caught up in a disappointing global trend in the second quarter, but monetary policy, continued business spending, supportive labour market conditions and an improving trade balance will lay the foundation for real GDP growth of 2.1% this year.

Western Canada will lead growth rankings this year and next. Alberta tops the rankings for the second consecutive year, with Saskatchewan and Manitoba following closely behind. BC and Ontario will grow at rates just above the national average, while growth in the remaining provinces will be below that average.

Activity remains brisk in Alberta’s energy sector with mega oil sands projects fuelling “unprecedented” capital investment spending in the province. RBC notes, however, that recent volatility in global energy markets has given way to increased caution in the industry, but it doesn’t expect significant change in conditions that would dent spending this year.

In Manitoba, manufacturing sales for transportation equipment and machinery have held up relatively well, nondurable goods production has been weak, specifically in the food processing industry. RBC expects these issues to ease as this year progresses.

US housing construction is recovering this year, which is good for BC’s softwood lumber exports, but they have a have a long way to go to return to precrash levels.

Lumber exports to China fell this year as natural gas exports to the US dropped significantly, and exports to Europe were undermined by that continent's economic woes.

Saskatchewan‘s solid economic momentum was recently buoyed by an acceleration in provincial employment growth following surprisingly modest gains in 2011. Recent strongerthan-expected gains in manufacturing sales, wholesale trade and retail sales also show the underlying vigour in the provin-

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Shell to build $1.35B Quest CCS project

Ballard ethanol systems headed to Africa

Joint venture will be the first carbon capture project CALGARY: Shell Canada is going ahead with its Quest carbon capture and storage (CCS) initiative for the Athabasca Oil Sands Project in Alberta.

The joint venture owned by Royal Dutch Shell plc, Chevron and Marathon Oil (with support from the Governments of Canada and Alberta) will be the world’s first CCS operation.

Shell, as the majority owner, will be the project designer, builder and operator.

“If you want to achieve climate change goals, CCS has to be part of the solution. We are helping to advance CCS technology on a number of fronts around the world, but Quest will be our flagship project,” said Peter Voser, chief executive officer of Royal Dutch Shell.

Bitumen produced by the Athabasca Oil Sands project is piped to Shell’s Scotford Upgrader near Edmonton. From late 2015, Quest will capture

Heavy hauler on the job at the Scotford Upgrader near Edmonton.

and store more than one million tonnes a year of CO2 deep underground.

The CO2 will be transported 80 kilometres via underground pipeline to a storage site north of the Scotford site, where it will be injected more than two kilometres underground into a porous rock formation called the Basal Cambrian Sands (BCS). The formation is located beneath layers

Federal, provincial governments collect $9B in mining revenue OTTAWA: Canada’s mining industry paid more than $9 billion in aggregate mining taxes and royalties, corporate income taxes and personal income taxes in 2011, an increase of more than $700 million over 2010, according to a report by the Mining Association of Canada (MAC) and ENTRANS Policy Research Group.

“Despite fiscal policy changes, payment levels were buoyed by generally higher metal prices and increased production,” said Pierre Gratton, MAC’s president.

Natural Resources Canada said the mineral sector experienced a 21% increase in the value of production last year to a record $50 billion stemming from a combination of higher prices and expanding output.

Most of the increase comes from Alberta, Saskatchewan, Newfoundland and Labrador, and Ontario. The study shows a steady increase in overall mining tax and royalty payments since 2009, when payments declined almost 60% during the recession.

Alberta and Saskatchewan accounted for the largest portion of royalties and mining taxes at 64% from bitumen and coal, and potash and uranium.

Newfoundland and Labrador saw royalty and mining tax revenues rise by almost 70% from higher iron ore and nickel prices, and increased volumes from the Voisey’s Bay operation.

Ontario’s annual revenues more than doubled from $72 million to $180 million from higher gold and copper prices.

45 Xcelsiors heading for San Francisco WINNIPEG: The San Francisco Municipal Transportation Authority has approved the purchase of 45 heavy-duty 40-foot Xcelsior diesel-electric hybrid buses from Winnipeg bus manufacturer New Flyer Industries Inc. New Flyer buses represent about 8% of San Francisco’s fleet of 800 buses and trollies.

The lighter-weight Xcelsior hybrids, which feature improved fuel economy, disc brakes and LED headlights, will replace 13-year-old buses currently in service.

Production is to begin early next year at New Flyer’s plant in St. Cloud, Minn. for delivery by the end of the summer.

Financial details were not available.

New Flyer employs 2,000 people at plants in St. Cloud, Crookston, Minn.; and Winnipeg.

PHOTO: SHELL

of impermeable rock.

Shell said sophisticated monitoring technologies will ensure the CO2 is permanently stored.

Quest is projected to reduce CO2 emissions from the Scotford Upgrader by up to 35%.

The Globe and Mail pegged the cost for a 10-year run at $1.35 billion. Alberta is kicking in $745 million and Ottawa $120 million.

VANCOUVER: Ballard Power Systems has signed an equipment supply agreement for up to 192 ElectraGenTM-ME methanol fuelled power generation systems with its African distributor Inala Technologies.

Financial details of the agreement, which is effective through October 2013, were not released.

A purchase order for the first 32 systems has also been received, with plans to deploy the systems over a telecom network operated by an African company.

It’s been a busy summer for the Vancouver-based clean-energy fuel cell provider.

In August, Ballard announced the sale of 102 of its fuel cell generators to a telecom provider in Indonesia. In July, the company acquired IdaTech’s fuel cell product lines in a deal worth $7.7 million.

>> Careers

Westbridge Energy Corp., a Calgary-based oil and gas exploration and development company, has made some changes to its board. Mark Frewin, a partner with law firm McCarthy Tetrauly, is now chairman. Joining as director is Kevin Everingham, a corporate finance advisor. Both were members of the advisory board. Tosan Omatsola, an exploration and development geoscientist, the company’s technical advisor, joins the advisory board.

Richard Winterich has been named COO of Calgary-based Ridgeline Energy Services. Previously he was the CFO of Mobility Electronics, a start-up technology company. Ridgeline Energy applies proprietary technology to treat water generated from industrial and commercial wastewater markets.

Molly Moroni has joined RotoMetrics as sales director for Canada and the US. She will be responsible for supporting new business development initiatives for the company, which produces rotary and flexible cutting die technologies for industrial customers. Karen Moreland moves to the newly created role of vice-president of global marketing and business development. She joined the company in 1989 and in 2010 helped develop the company’s first manufacturing operation in Thailand.

Feroz Ashraf, executive vice-president and head of global mining and metallurgy at SNC-Lavalin, a global engineering and construction firm based in Montreal, is retiring. Dale Clark replaces him. He has handled a number of signature projects for the unit and has more than 25 years of international experience in engineering, project management and corporate leadership.

Griffiths Energy International Inc., an international oil and gas resource developer based in Calgary, has appointed John Bentley to the board. Bentley, chairman of Faroe Petroleum plc, Scotgold Resources Ltd. and deputy chairman of Wentworth Resources Ltd., brings more than 30 years of experience in establishing, developing and managing international natural resource businesses.

Pro-Trans Ventures Inc., a specialized transportation and logistics provider in Western Canada, has appointed Scott Hamilton CFO. The chartered accountant comes to the Calgary-based firm with 20 years of experience at several small cap companies.

Tim Turner joins the board of United Hunter Oil & Gas Corp., a Calgarybased energy projects firm operating in Canada and the US, as a director.

He’s president and CEO of Mogul Energy International Inc., an exploration and production company based in Houston.

September/October 2012

12-09-19 10:43 AM

Industry View << Departments

New plant for Pinkwood I-joists Production destined for western markets

CALGARY: Pinkwood plans to open a new, highcapacity I-joist manufacturing plant in Calgary, with production to begin in March.

The plant will employ 20 people and produce I-joists protected with Pinkshield, the company’s proprietary pink coating developed at a pilot Pink protected I-joists.

PHOTO: PINKWOOD facility in Calgary. The coatjoists and other wood products says ing resists mould, moisture and fire. it will be the first such manufacturer Pinkwood’s new $4.5 million plant in the world to commercially prowill be 56,400 square-feet on a 6.77duce protected joists as part of the acre site and capable of producing standard quality specification.

60 million linear feet with projected The entire production will be sold sales of $70 million sales. in Western Canada.

The Calgary manufacturer of I-

BioteQ building Chinese water plant VANCOUVER: BioteQ Environmental Technologies Inc. is building a $3.2 million water treatment plant at the Dexing Mine site, located in south-eastern China with a Chinese joint-venture partner.

BioteQ, a provider of industrial wastewater treatment technology, will be developing the project with Jiangxi Copper Company, the largest copper mining company in China.

They’ll share equally in the capital costs of the plant and in the profits generated from operations.

Revenues from the operation of the new plant will be based on copper recovered, identical to the recovery facility at Dexing.

BioteQ will contribute to the engineering design and will work with JCC on the procurement of key process equipment. The plant is to be operational by next July.

Bri-Chem adds fluid storage in NM EDMONTON: Bri-Chem Corp. is adding its eleventh storage area for the distribution of drilling fluid products and stimulation additives for the US oil and gas industry in Farmington, NM. The fluid storage is located in the yard of Bri-Chem’s transportation partner which will handle delivery of the products to locations in New Mexico servicing the Mancos Shale formation.

Bri-Chem is an Edmonton-based provider of drilling fluids and steel pipe for the oil and gas industry, CIEN ad2 10-06-08 1:01 PM Page 1

www.dvsystems.ca sales@dvsystems.ca 1-800-668-8558 www.plant.ca

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CALGARY: Keyera Corp. will construct a 30,000 barrel per day de-ethanizer at its NGL fractionation and storage facility in Fort Saskatchewan, Alta.

The de-ethanizer will allow the company to process an ethane-rich stream of NGLs (C2+ mix) to create specification ethane for petrochemical producers in Alberta and a propane-rich stream of NGLs for Keyera’s fractionation facilities.

The Calgary-based company is one of the largest natural gas midstream businesses in Canada.

The project is expected to carry a $110 million price-tag and the project will be completed by early 2014.

The company has also entered into a long-term, fee-forservice agreement with a large producer in the deep basin of west central Alberta to provide commercial support for the project.

The producer will furnish C2+ mix to Keyera for processing into products, including ethane, propane, butane and condensate. Keyera is currently in discussions with other producers interested in contracting for the remaining de-ethanization capacity.

Keyera’s has NGL and crude oil infrastructure, including pipelines, terminals and processing and storage facilities, as well as an iso-octane facility in Edmonton and Fort Saskatchewan.

>> Events AME Chicago 2012 AME Oct. 15-19, Chicago The Association for Manufacturing Excellence (AME) presents its international conference featuring best practices from the world’s best lean practitioners. Visit www.ameconference.org.

Global Business Forum CME Oct. 17, Location TBA Leading Canadian thinkers on export barriers, opportunities and best practice; networking and trade exposition will give attendees tips towards boosting export practices. Presented by Canadian Manufacturers & Exporters (CME). Visit www.cme-mec.ca.

National Buyer/Seller Forum June Warren-Nickle’s Energy Group Oct. 22-25, Edmonton Strategies for buyers and sellers along the oil sands supply chain.

Event partners include June Warren-Nickle’s Energy Group, Glacier Media Group (publisher of PLANT), Canadian Manufacturers & Exporters, and the Alberta government. www.nationalbuyersellerforum.ca.

Physical Asset Management Certificate Program C-MORE Nov. 5-9, Toronto Nov. 12-14, Toronto Centre for Maintenance Optimization & Reliability presents this certificate course to help maintenance pros batter manage their plant assets. Visit http://cmore.mie.utoronto.ca, Educational Programs.

FABTECH 2012 SME Nov. 12-14, Las Vegas The Society of Manufacturing Engineers (SME) showcases metal forming, fabricating, welding and finishing technologies. Visit www.fabtechexpo.com.

CME Trade Summit CME – Manitoba Nov. 20, Winnipeg Trade event for SMEs presented by Canadian Manufacturers & Exporters (CME), Manitoba division, features speakers, practitioners and services for the support of international sales and growth plans. Visit www.cme-mec.ca/english/events/events.html.

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Sustainability

>> energy

Driving natural gas WestPort innovations Makes the case for natural gas PoWered vehicles.

Widespread consumer adoption, however, will depend on infrastructure development.

Matt PoWell, assistant editor

P

rospects for Canada’s natural gas industry haven’t been rosy as it struggles with low prices and growing competition from the US, it’s only export market. But it may get a boost from another industry sector that is recovering from its life and death struggle during the 2008-2009 recession. The automotive industry is heavily engaged in a quest for alternatives to gasoline power that will get consumer buy-in.

Westport Innovations is betting on natural gas. The Vancouver-based company has invested more than $300 million developing natural gas technologies for transportation applications since 1998, and is now partnering with some significant players, including General Motors, Ford, Chrysler and Volvo. Not to mention the strong stable of fleet customers who use the company’s natural gas conversion technologies and truck engines.

The company’s expertise is in developing heavy-duty natural gas engines, injectors, combustion chamber geometry and control strategies for fuel systems.

It has an impressive patent portfolio of about 400 projects, 130 of which are active and another 115 pending, according to its website. Most importantly, it has patent applications in virtually all of the world’s automotive manufacturing hubs, including the US, China, Brazil, Mexico and Canada.

“We rely on partnerships to bring our products to market because we don’t invest in large scale manufacturing operations,” says Ian Scott, president of Westport LD, the company’s light-duty division. “We focus on developing IP and technology, so it’s important to partner with the OEMs and leverage their strengths in manufacturing.”

Partnerships have added to Westport’s worldwide presence. There are, to name a few, ventures with China’s Weichai (Westport will provide natural gas engine for heavy-duty trucks), Sweden’s Volvo (a bi-fuel turbo-charged engine for the Volvo V70), and Ford (the Westport Wing system, a bi-fuel system for Ford’s F-250 and F-350 pick-up trucks). In fact, Westport has a conversion facility next door to Ford’s pick-up truck assembly plant in Louisville, Ky.

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The details of the technologies involved in the second part of a partnership with General Motors are mostly confidential, but Scott says Westport is working on light-duty innovations that will focus on advanced power-train development and combustion efficiencies.

The company estimates there was about 13 million natural gas vehicles on the world’s roads in 2011. That number is expected to jump to 50 million in 10 years, representing about 9% of the world’s transportation fleet.

The fact that the supply of natural gas is abundant, and that the Harper government is focused on natural resources to drive its economy gives credence to Westport’s vision.

But developing alternative fuel options for consumers comes down to the level of risk automakers are willing to accept, and the infrastructure necessary to bring options to the mainstream.

So what makes the most sense?

Electric vehicles certainly address the emissions issue, but automakers are struggling with range, which has stunted sales. Bio-fuels are attracting a lot of attention, but widespread commercialization is a challenge.

Hybrids are struggling Hybrids are more widespread, but they’re struggling in the Canadian market, a hint that customers are increasingly risk averse and show reluctance to change, according to Dennis DesRosiers, president of DesRosiers Automotive Consultants in Richmond Hill, Ont. “Hybrids have been on Canadian roads for 13 years, and there’s still only 100,000 out there,” he says. “They have a place, but the vehicle companies are somewhat stuck because there’s so many options. No one wants to commit completely to one.”

Which brings us to natural gas. There is a lot of it and there are similarities to petroleum when it comes to engine performance and range. There’s also economic benefits. Natural gas conversion kits, which cost about $6,000, are a lot cheaper than fronting big money for an electric vehicle, such as the Chevrolet Volt with a price tag of more than $40,000.

“It’s important to have these technological developments because transport remains the only part of the economy that generally depends on one fuel source,” says Alicia Milner, president of the Canadian Natural Gas Alliance.

“We need alternatives going forward.

Advancements reduce risk and capture benefits, such as lower emissions and

jobs in the supply chain. There’s lots of benefit in diversification.”

She says natural gas reduces vehicles emissions by up to 25%. Those reductions get even better when you consider the green natural gas options – such as bio-methanol – in development.

Natural gas already provides about a third of Canada’s energy. We’re also the world’s third largest producer of natural gas.

“There’s a dramatic increase in natural gas reserves in North America,” Scott says. “We have more than a 100 year supply in Canada alone, so from an energy security perspective, it makes sense. It’s cleaner and there’s quick pay backs.”

Natural gas vehicles have about a twoyear pay back terms, he adds.

“Electric cars, in many duty cycles, don’t see anything even close to that,” he says.

So, why isn’t natural gas powering more passenger vehicles on Canada’s roadways?

It comes down to infrastructure development.

“You can’t talk about a new mainstream fuel without talking about the infrastructure,” says Peter Frise, CEO of Auto21, an automotive R&D think-tank based at the University of Windsor. “You have to figure out how you’re going to distribute it, store it and dispense it.”

Frise concedes that natural gas lends itself better to fleets because developing the infrastructure is a simpler task. Vehicles operate in a contained geographic area and return to base every night. He is, however, optimistic that widespread natural gas use isn’t far off.

“If there’s the infrastructure to sup-

September/October 2012

12-09-18 10:34 AM

Management

>> Pricing Strategy

Getting the price right

Common mistakes and what to do about them

By Mark Borkowski

B

Westport expects there will be more than 50 million natural gas powered vehicles on the world's roads in the next 10 years.

PHOTO: WESTPORT INNOVATIONS

port widespread use when it comes to consumers, it makes sense,” he says.

“Performance wise, there’s virtually no difference compared to petroleum powered vehicles.”

Infrastructure development may be why many of Westport’s partnerships are targeted abroad, in countries that have sufficient resources to support the technologies it’s producing. And there are some opportunities the Canadian market could leverage. Fiat for instance, which acquired Chrysler in 2009, dominates the natural gas market in Europe, owning about 80% of the space’s market share.

There’s a strong Canadian connection with Chrysler’s manufacturing facilities in Brampton and Windsor, Ont. Fiat now offers its entire line-up of passenger vehicles with a bi-fuel option that

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allows them to run on both petroleum and natural gas in Europe. Chrysler also announced it will produce it’s uber-popular Dodge Ram 2500 pick-up truck in a compressed natural gas version, becoming the first North American OEM to do so.

That leaves the gas companies to join the mix. The fuel source is starting to take off in the US, thanks to major gas players such as Shell, which has invested more than $300 million in a refueling network that will see 200 natural gas pumps at 100 stations across the country. It also has a small liquid natural gas plant in Calgary that produces the equivalent of 300,000 gallons of diesel a day.

Milner says home refueling options would also boost consumer confidence in the fuel source. General Electric and Chesapeek Energy have released plans

to jointly develop an affordable, in-home natural gas refueling station, similar to those available for plug-in electric vehicles.

“Demand for natural gas is declining for residential uses as homes get greener and tighter to boost energy efficiencies,” she says. “So the natural gas companies are looking to capitalize on new markets, and this is evident with the development of home refueling systems for natural gas vehicles.”

While she says the technology is too expensive for widespread use in its present format, it could be a game changer if natural gas vehicles catch on.

Westport Innovations hopes that’s the case.

usiness is challenging these days, especially when it comes to exporting while a strong loonie holds sway, but you can still improve margins.

Atenga Inc., which provides pricing advice to businesses commercial and industrial companies worldwide, contends you can raise prices and improve sales volumes at the same time.

Dennis Brown, a partner at the Californiabased company, identifies 10 of the most common mistakes companies make and what to do about them: • Basing prices on costs. This invariably leads to prices that are too high – or more often – too low. Base prices on customers’ perceptions of value.

• Basing prices on the marketplace. Find ways to differentiate products/services to create additional value for specific market segments.

• Attempting to achieve the same profit margin across different product lines. Profit is optimized when the price reflects the customer’s willingness to pay.

• Failing to segment customers. The value proposition for any product or service varies in different market segments. Reflect that difference.

• Holding prices at the same level for too long, ignoring changes in costs, competitive environment and customers’ preferences.

Acclimate customers and sales forces to frequent price changes.

• Incentivizing salespeople on revenue generated rather than on profits. Avoid volume-based sales incentives for pushing volume at the lowest possible price.

• Changing prices without forecasting competitors’ reactions. Know your competitors, predict their reactions and prepare for them.

• Using insufficient resources to manage pricing practices. Cost, sales volume and price are the three basic variables that drive profit.

• Hastily calling price meetings to set the final price for a new product or service. Establish internal procedures to optimize prices.

• Spending a disproportionate amount of time serving your least profitable customers. Eighty per cent of a company’s profits generally come from 20% of its customers.

Focus on the 20%.

Understanding what your customers value leads to better pricing, higher sales volumes and much better margins.

Mark Borkowski is president of Torontobased Mercantile Mergers & Acquisitions Corp., which specializes in the sale of privately held companies. Visit mercantilemergersacquisitions.com. E-mail Dennis Brown at dbrown@atengacorp.com.

Comments? E-mail jterrett@plant.ca.

Comments? E-mail mpowell@plant.ca

PLANT WEST 7

12-09-19 10:46 AM

Innovation

>> design

Taking the

plunge oveRcoMiNg The chALLeNges oF suBseA dRiLLiNg MARL Technologies develops an innovative device for use off Australia’s coast.

By NoRdAhL FLAksTAd

I

t sounds unfathomable. Located in Edmonton, more than 1,000 kilometres from tidewater, MARL Technologies Inc. has built a sophisticated, remotecontrolled device that’s been boring into the seabed three kilometres below the surface of the Pacific Ocean off Australia. Unlikely as this scenario seems, it’s true.

Discovering how the Edmontonbuilt underwater device finds itself at such depths requires drilling into some corporate history. Best placed to tell the story is MARL founder and still-active manager Ron Innes. In the late 1950s, he provided drilling services to engineering and construction companies doing soil testing. But he found it hard to acquire suitable equipment – especially drilling units that were compact and light enough for transport to remote locations aboard Lockheed Electra and Twin Otter fixed-wing aircraft, or even Bell helicopters. Necessity spurred invention and his company, Mobile Augers and Research Ltd., which pioneered the use of continuous dry auger drills in Western Canada, started developing and building drilling units for its own use.

By 1977, Innes had established MARL as a sister firm to custom-manufacture drills for Mobile Augers. Soon it was taking orders for drills mounted on trucks and tracked vehicles from other firms serving the geotechnical industry.

MARL’s reputation for producing innovative and technically superior – though Innes stresses, by no means, less-expensive – drills spread far beyond Alberta. A particularly fortuitous linkage occurred in 1992 when a Vancouver business contact at ConeTec connected Innes with John Gregg, president of Gregg Drilling & Testing Inc., a prominent subsurface sampling and investigation firm headquartered in Signal Hill, near Long Beach, Calif.

At the time, a so-called cone penetration test (CPT) used to determine geotechnical properties of soil, was popular in Europe but just coming into its own in North America. Gregg Drilling wanted a truck-mounted unit to house CPT testing

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equipment. (From the outside, trucks employed in soil and environmental testing look much like the seismic and other equipment-laden trucks common in the oil patch). MARL proved up to the task.

It designed and built hydraulic presses capable of applying the 30 tonnes of pressure needed to push the sampling cone into the ground and exert 70 tonnes to extract it.

MARL took the initiative and manufactured a truck that exceeded Gregg’s expectations by including add-on features such as an onboard toilet. The overall high technical quality of the product generated additional orders from Gregg Drilling, and cemented a business relationship that has lasted to this day.

Improbable adventure As a result, Innes wasn’t all that surprised four years ago to receive a phone call from Gregg. However, he was a bit more bemused when Gregg told him he was looking for someone to help manufacture a drill able to operate remotely 3,000 metres below the ocean surface and drill 150 metres into the seabed to obtain core samples. This, while being controlled by an operator aboard a support ship located up to five kilometres from the borehole.

A skeptical initial response was: “John, do you know how much salt water we have in Edmonton?” Gregg retorted: “I know people who know about salt water.

I need people who know about drills and how to build them.”

So the landlocked Edmonton firm was launched on an improbable subsea adventure. Three years later MARL would see its handiwork plummet to the very depths of Davy Jones’s Locker.

Major technical advances have been made in the development of motioncompensating ships where drillstrings are lowered and powered from a vessel on the surface to penetrate the seafloor in search of oil or gas, or to explore the earth’s mantle. However, as they delved into the design process, members of the MARL engineering team soon discovered they were developing a very different denizen of the deep. MARL was challenged to reach new innovative heights – or more accurately, new depths.

“It was a challenging project and you do wonder just how we got the contract given where we’re located, but it was a

Mechanical egineer D.J. Elford (left), company founder Ron Innes and design team leader Daniel Teeuwsen with a photo of the SubSea Drill.

Teeuwsen and Elford with a traditonal truck-mounted drill manufactured by MARL.

very rewarding,” says D.J. Elford, a mechanical engineer and seven-year MARL staffer who was part of the engineering team that worked on the design of the underwater drilling platform for about two years.

It was, Elford stresses, very much a collaborative effort inside and outside MARL. In addition to working with Gregg Drilling’s marine subsidiary, MARL collaborated closely with Schilling Robotics LLC, another California company tasked with engineering the telemetry controls and power systems.

Diving is all about the right balance between daring and deliberation.

Certainly MARL had to strike the right balance. The challenge lay in designing something not so heavy that it would snap the cable used to lower and raise the drilling structure with a ship-based launch and recovery system (LARS).

This same cable served as the umbilical cord delivering power to drive a 150 hp electric motor and providing a communication link between the remote-control drill below and the mother ship above.

The 10-tonne (in air) drilling structure is

September/October 2012

12-09-18 10:35 AM

Innovation

>> Extraction

In-situ feels the HEAT TAGD STEPS UP AS A GAME CHANGER Athabasca Oil Sands pilots a more sustainable in-situ bitumen extraction process.

BY MATT POWELL, ASSISTANT EDITOR

T

here’s a lot of talk these days about how to move oil sands bitumen through super pipelines to US and Asian markets. But there are also some hot developments on the extraction side.

Techniques such as hydraulic fracturing aren’t popular topics of conversation among environmentalists, but Athasbasca Oil Sands Corp. has tested (and proved) a new technology that might actually generate some positive buzz.

The process is called TAGD (thermal assisted gravity drainage), which applies thermal conduction to soften the bitumen rather than super-heated steam.

The process cuts water and energy use in half, and that’s a potential game changer in the extraction game.

Athabasca, which has a market capitalization of $5.4 billion, expects to receive regulatory approval by 2014 for the $50 million pilot located at the oil play 90 kilometres northwest of Fort McMurray.

A two-year drilling, construction and installation phase will follow.

“We have a field test in full swing now,” says Bruce Roberts, Athabasca’s chief reservoir engineer. “The pilot will give us an understanding of what kind of recovery rates we can achieve. It’s not much different from SAGD [steam assisted gravity drainage] in terms of production, but it’s far more cost effective and much better for the environment.”

Roberts expects TAGD recovery rates to be about 65% – similar to SAGD. The pilot project will also give the company a better understanding of TAGD’s cost and energy requirements, he says.

The bitumen trapped in the company’s Leduc oil play lies below the oil sands in a carbonate formation that can’t be

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mined using other in-situ extraction processes.

SAGD uses super-heated steam to melt the viscous bitumen to a point where it flows to the bottom of a well bore. It’s sucked out from there by a twin well that’s about six metres deeper.

“Carbonate reservoirs have lots of fractures, so when you inject steam, it goes to the most conductive pathway,” Roberts says. “The steam flows into those fractures, which leads to uneven heating of the reservoir.”

SAGD uses a lot of water and energy, and requires support from significant surface operations. Dundee Capital Markets suggests in a report that about 70% of a SAGD operation’s capital costs go towards water handling, conditioning and treatment.

No water necessary “Water usage is a big issue in Alberta, so cutting that out of the equation is a huge benefit,” he adds.

Because TAGD uses electric heaters and thermal conduction, it only requires about half a cubic-metre of water per cubic-metre of bitumen, a savings of more than six times that of SAGD. That’s a major competitive advantage.

“You’re not using steam, so you don’t need water, which cuts both energy and water costs right off the bat,” Roberts says.

“Surface facilities are much simpler.”

Roberts says only about 3% of the oil sands is actually mineable. The rest needs to be extracted using in-situ processes. The company’s Leduc carbonate asset is one of those in-situ formations that has approximately 17 billion barrels waiting to be coaxed to the surface, enough for Athabasca to produce up to 40,000 barrels a day for about 40 years.

TAGD uses electrical heat tracing installed in horizontal wells to warm up the carbonate formation. During testing, Athabasca says two well pairs were drilled horizontally, and spaced eight metres apart. Electric heaters were installed

Top: Athabasca's Leduc carbonate play contains 17 billion barrels of crude bitumen. Centre: Crude bitumen in a carbonate formation. Bottom: TAGD uses thermal conduction to coax the bitumen out of the sponge-like carbonate, that lies 150 metres below the Leduc oil sands.

PHOTOS: ATHABASCA OIL SANDS CORP.

in both wells, while a pump was installed in the lower well. It heats the carbonate to about 120 degrees C, which is warm enough to soften the bitumen so it floats to the surface.

“Heating by conduction is much more uniform,” Roberts says. “We’re essentially heating the rock instead of just the bitumen. Conductive heating isn’t impacted by fractures, which makes the process more energy efficient because it takes less to do the same job.”

Thermal heating reduces the bitumen’s viscosity to about 10,000 centipoise (cP), similar to cold-flow heavy oil, which is typically warm enough to be extracted using generic cavity pumps.

The company also announced in August it was seeking a partner for the

project. Now, the rumour mill is swirling with news that Kuwait Petroleum is readying a $4 billion joint venture with Athabasca.

It’s no stranger to partnerships. In 2009, it sold a 60% stake in its MacKay River and Dover oil sands projects to PetroChina. Earlier this year, however, it sold the remaining 40% stake, making PetroChina the first Chinese company to fully control a play in the oil sands.

With a $50-million commitment to the pilot plant, Athabasca is betting TAGD will prove to be a more sustainable way of liberating some of the 17 billion barrels of sticky, black bitumen stored in Leduc’s subterranean bank vault.

Comments? E-mail mpowell@plant.ca

September/October 2012

12-09-18 10:35 AM

Economy << Trends

We’re less

>> Exporting

competitive

Trade with Asia

A coherent strategy is needed

Canada drops to 14th globally

Countries in Northern Europe are consolidating strong competitive positions.

A World Economic Forum report notes less favourable research and innovation are factors in our slide.

A

s the competitiveness gap widens in Europe, Canada’s global position has also slipped from 12th to 14th, according to an annual competitiveness ranking by the World Economic Forum, an independent global organization based in Geneva.

The Global Competitiveness Report 2012-2013 shows Switzerland topping the rankings for the fourth straight year, with the US in seventh place (slipping two places) and Canada residing in the top 20.

Canada continues to place near the top of the 144 countries measured in the report thanks to “highly efficient” markets with high rankings for goods (13), labour (4), financial (11), well functioning and transparent institutions (11) and excellent infrastructure (13). However, the report notes this year’s ranking was dragged down by a “less favourable assessment” of research institutions and the government’s role in promoting innovation through procurement practices.

Human resources ranks highly (seventh for health and primary education, fifteenth for higher education and training), but higher education, ranked eigth two years ago, is on a downward trend.

The Conference Board of Canada, which helped manage the distribution of surveys in Canada, noted the country has dropped five places since 2009.

“Canada is a developed economy and … at a stage where its capacity to innovate successfully determines its overall success. Businesses must be able to compete on the basis of developing new or improved products, services, models, and processes,” says Daniel Muzyka, president and CEO of the Ottawa-based think tank.

He says Canada is not taking full advantage of its strong economic fundamentals, well-educated workforce and efficient markets to build higher valueadded products and services.

“Too often, Canada fails to commercialize its good ideas into marketable products and services or capture the value from growth,” he says, suggesting all

www.plant.ca

PHOTO: THINKSTOCK

stakeholders need to do more.

The US report notes a low public trust in politicians and a perceived lack of government efficiency among business leaders, but America continues to be a major global innovator and its markets “work efficiently.”

Filling out the top 10 are Singapore (2), Finland (3) having overtaken Sweden (4), The Netherlands (5), Germany (6), the UK (8), Hong Kong (9) and Japan (10).

Overall, Canada is still doing well, says Doug Watt, a director of research at the Conference Board. Efficiency enhancers in goods, labour markets, financial and technology use are all ranked highly. “[Countries] at the top of the rankings leverage those qualities to be more innovative,” he says. “Right now we’re treading water. If we do that for too long, we’ll sink.”

f Canada wants to secure its place in Asia, it will require comprehensive engagement that extends beyond a commercially focused, and bilateral-centred approach, according to a taskforce report published by the Asia Pacific Foundation of Canada.

ADF cites Canada’s contact with various Asian organizations as key to building trade relationships.

Canada is a member of APEC, and talking to the Association of Southeast Asian Nations (ASEAN) and the ASEAN Regional Forum (ARF). It also participates in non-official forums such as the Pacific Economic Cooperation Council (PECC) and the Shangri-La Dialogue. Canada is not a member of the ASEAN Defence Ministers’ Meeting ++ or the East Asia Summit.

Final approval is pending to join TransPacific Partnership (TPP) trade negotiations but ADF said Canada has not concluded a single free trade agreement with any Asian country.

“Some might question the value of Canada joining processfilled forums in Asia, but keep in mind the rules of engagement in Asia are different,” says Don Campbell, a co-author of the report. “Being active participants at these tables is critical to building long-term trust with Asian counterparts.”

Securing Canada’s Place in Asia: Institutions, Means and Mechanisms offers the following recommendations: • Establish a coordinating unit with access to senior government officials on Canada’s participation in Asia and convene on a regular basis with non-government stakeholders.

• Formalize and sustain a bilateral dialogue with the US focused on Asia.

• Strengthen existing bilateral dialogues with strategic Asian partners including China, Japan, India, South Korea and Indonesia.

• Seek early admission into the East Asia Summit.

• Volunteer to chair and host APEC in 2017.

• Seek admission into the ASEAN Defence Ministers Meeting ++.

• Appoint a Canadian Ambassador dedicated to ASEAN. • Conclude as a matter of urgency a FTA with South Korea.

• Pursue as a top priority comprehensive economic partnership negotiations with Japan.

• Move towards a trade agreement with China.

• Conclude trade negotiations with India.

• Secure final approval for participation in the TPP negotiations.

The Vancouver-based Asia Pacific Foundation of Canada is a not-for-profit, independent resource for Canadians on contemporary Asia and Canada-Asia relations.

Comments? E-mail jterrett@plant.ca.

Profit from the Synergy of two great products ...

Venanzetti Vibrators

ROSTA Screen Mounts

Make an impact on your bulk processing!

Use the Venanzetti Vibrators in conjunction with the ROSTA Screen Mounts.

ROSTA Inc. 12 Douglas Road, Unit # 6, CA-Uxbridge, Ontario L9P 1S9 Phone ++1 (905) 852 19 29, Telefax ++1 (905) 852 18 61 info@rostainc.com, www.rostainc.com

PLANT WEST 11 05 Rosta ad (Plant).indd 1

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04/10/2007 01:02:59 PM

12-09-19 10:52 AM

>> Maintenance

Use CBM to effectively monitor the factors that affect hydraulic components.

BY STEVE GAHBAUER

C

ondition-based maintenance (CBM) is gaining traction, and for good reason. It’s based on machine condition rather than elapsed time or running hours, and reduces time and money spent for unnecessary preventive maintenance, such as time-based oil changes.

This is especially true of hydraulic systems maintenance, according to a presentation at the Toronto MainTrain maintenance conference presented by the Plant Engineering and Maintenance Association of Canada (PEMAC).

Kevin Eaton, responsible for OEM support services, warranty administration and failure analysis investigations at Bosch Rexroth Canada, said to get the most from CBM, establish what is “normal” for a piece of equipment or system.

Every machine is different, so review its characteristics and history with the maintenance department and the original equipment manufacturer.

CBM of hydraulic systems is all about knowing your enemy, says Eaton. Fluid condition is critical. Monitor items that cause degradation or wear, follow cause and effect backwards to the first measurable factor, identify the “silent killers” and how they affect hydraulic components, and check whether they are measured reliably and what influences the measurements to cause false alarms.

The silent killers in hydraulic fluids are particle contamination, water content, and the relationship between operating temperature and fluid viscosity.

To determine the contamination level, use the ISO 4406 code, which defines cleanliness and provides guidelines for acceptable levels.

Water in hydraulic fluids accelerates the aging process of the oil, resulting in oxidation, additive depletion, reduced lubricant film strength, and corrosion. It also negatively affects bearing life.

Although there is always some water present in hydraulic systems, it’s a con-

KNOW your ENEMY

FIND THE SILENT KILLERS IN HYDRAULIC SYSTEMS

Comments? E-mail jterrett@plant.ca.

Water in oil-based fluids can be just as destructive as particle contamination.

cern when it becomes free or emulsified.

Viscosity, the most significant factor in hydraulic systems, is defined as “the amount of resistance to flow.” It determines how thick or thin a fluid is at any given temperature. Low viscosity results in component damage. On the other hand, excessively high viscosity damages system components through cavitation, which results from the thick fluid’s inability to fill a void created by a moving part.

Through thick and thin If too thick and too thin is bad, how do you determine the correct viscosity?

Temperature. The target for a hydraulic system should be based on the optimum fluid viscosity for the most sensitive component in the system. Eaton suggests you address temperature-related issues before

HOW TO PREVENT THEM

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Wanted: Agents of change

it’s too late, because damage throughout the system can be significant. ISO standard 10816-1 provides guidelines for velocity range limits and machine classes.

To optimize maintenance performance on hydraulic systems: • use machine history and OEM specifications to establish machine “normal”; • interpret condition by change in historical trends; • use permanently mounted sensors to ensure measurement consistency; • detect, then analyze; and • don’t confuse condition monitoring with alarm monitoring.

Hydac International has introduced the CMU 1000, an electronic evaluation device for permanent online condition monitoring of machines and systems. Information recorded by sensors connect-

Bearing failures ome 90% of the more than 10 billion rolling bearings produced each year outlive the equipment in which they operate, but when they do fail in a main production line or in critical equipment, losses can amount to millions of dollars.

Rolling bearings are the heart of most machines. Once a bearing is damaged, it will gradually deteriorate until it becomes unserviceable.

Here are some useful maintenance tips from bearing manufacturer SKF to ensure bearings remain effective:

>> Leadership

PHOTO:THINKSTOCK

>> Tech Tip

S

ed to the CMU 1000 is transferred via different ports or as an analogue value to other devices. A backlit LCD display and three coloured LEDs indicate status and display messages and values.

The CMU 1000, used on stationary and mobile machines, is operated onsite where data is added using a built-in keypad within the menu structure. Special features include eight input channels for HSI or SMART sensors, eight input channels for analogue sensors, four input channels for digital signals, two output channels for analogue signals, four relay switching outputs with changeover contacts, a USB slave port for PC connection, a USB master port for storing measured data on a standard memory stick, and an ethernet interface.

For more condition-based monitoring tools visit www.trended.com and www.hydac.com.

Steve Gahbauer is an engineer and Toronto-based freelance writer, the former engineering editor of PLANT and a regular contributing editor. E-mail gahbauer@rogers.com.

What it takes to be a maintenance leader

A

PHOTO:THINKSTOCK

Operations

• • • •

Respect and adhere to specifications.

Select the bearing type that fits the application.

Align bearings properly.

A clean environment during the mounting process provides a good start for long service life.

• Always use appropriate tools for mounting and dismounting bearings.

• Choose the correct seal.

• Make sure the right lubricant is applied at the right time, in the right place, and of the right quantity.

sset management is basically a matter of managing culture change and it requires a strong leader.

“It’s not enough to have an asset management plan, you also need a strong asset management policy, a champion and a leader to assemble a team and change company culture through a collective way of thinking, common assumptions, methods and practices,” says Chris Lloyd, managing director of CAS Ltd., a software development and business IT support company in Edinburgh, Scotland.

Speaking at the Plant Engineering and Maintenance Association of Canada (PEMAC) MainTrain conference in Toronto, Lloyd outlined the key characteristics of a maintenance leader: • Develops a good team through trust and respect. To succeed, that person must guide and inspire, set the right tone, share his ideas, focus on learning and expand knowledge; and be a change agent.

• Possesses vision, passion, communication and interpersonal skills, coaching abilities and flexibility. Must be comfortable with ambiguity and able to create value, collaborate and seek knowledge.

• Is courageous, perseveres, and is persistent, consistent, compassionate, committed, competent and delegates.

• Leaders never please everybody: it’s how they deal with disagreements that matter.

And the good news is that leadership skills are learnable.

September/October 2012

12-09-18 10:39 AM

Products and Equipment << Technology

Isolates input signals.

VOLTAGE STABILITY FOR POWER DEVICES MicroPower Direct’s IGD962 hybrid integrated circuit drives N-channel IGBT modules, providing I/O isolation, high speed, drive voltage stability and fault protection necessary to control most MOS gated power devices.

The IGD962 converts TTL compatible input signals into a fully isolated +15 V/-8 V Gate drive with a peak drive current of 5 A. An internal, high-speed optocoupler provides 3,750 VAC control signal isolation, with a CMR ratio of 30 kV/µS for switching at high speed. A built-in desaturation detector protects against short circuits, while a fault signal goes off if the detector is activated.

MicroPower Direct, a supplier of power conversion products based in Stoughton, Mass., recommends the IGD962 for high frequency welding systems, solar converters, uninterruptible power supplies and automotive and appliance motor drives. www.micropowerdirect.com

Powered by two 12 V AMG batteries, the drives respond to floor-positioned RFID tags for speed control and obstacle sensor views. An optical communication control system between the drives and stationary devices controls an opportunity charging station and powered conveyor load/unload transfers.

Creform, a material handling specialist based in Greer, SC, says two powered conveyors with photo sensors individually control zoned power rollers to keep parts separated, eliminating part-to-part damage. Mechanical load safety stops swing down for load transfers to offboard conveyor stations then swing back up when pulling away for load security during transit. The conveyor portion features clear covers to protect against airborne dust and debris.

Split drives respond to floor position RFID tags.

HIGH-SPEED MACHINING REDUCES CHATTER

Creform Corp.’s AGV carts for automotive manufacturers are equipped with split-drive, bi-directional bolt-on drive units that follow a magnetic tape guidepath to ensure accurate and repeatable tracking in space restricted areas.

MAG’s XTi super profiler for aerospace machining demonstrates a 90-cu.-in.-perminute metal removal rate. The 3-axis, 5-spindle profiler maximizes dynamic stiffness and sustained power in titanium roughing operations.

SLIP AND STALL RECOVERY A-BLQ-E computer controlled, belt-driven linear stages from Zaber are equipped with integrated stepper motors and controllers. A built-in rotary encoder offers closed-loop operation with slip/ stall recovery features, while requiring only 48 V of power.

Stages connect to the RS-232 port of any computer or they’re daisy-chained with up to 254 A or T-series devices per chain. Six-pin mini din cables interconnect between units in close proximity.

With travel lengths up to 2.1 m, and a maximum speed of 2.0 m/s, A-BLQ-E stages are suitable for rapid positioning over large distances. High load capacity of up to 20 kg and torsional stiffness make them suitable for large payloads, while 10 µm repeatability allows the stages to be used for precise positioning.

Zaber Technologies is a manufacturer of motion control products based in Vancouver. www.zaber.com

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TROUBLESHOOT FOR IMPROVED PRODUCTIVITY

Spindle motors reach 3,500 rpm.

Five spindle motors reach up to 3,500 rpm, each rated 51 kW (68 hp), producing 2,523 Nm (1,860 ft.-lb.) of torque. The machine is engineered with a spindle support structure that’s incorporated into a stiff, heavyweight gantry for superior damping. The cross rail is 77% larger than previous designs to add stiffness, rigidity and damping for high-horsepower, chatter-free machining.

The XTi offers a HSK 125A tool interface as an option.

Five 6-pocket tool exchangers, located at each end of the work zone, permit five exchanges per machine. X-axis motion is powered by rack-and-pinion drives on both rails, while Y and Z axes are driven by large-diameter ballscrews, with a counterbalance and brake on the Z. MAG is a manufacturer of machine tools and systems with Canadian operations based in Mississauga, Ont. www.mag-ias.com

The LinkRunner AT Network Auto-Tester from Fluke Networks quickly troubleshoots and verifies ethernet connectivity.

Simplicity and faster test speeds ensure technicians at every skill level automatically perform a Reduce errors standardized set of tests and call backs. and reduce errors, speed problem resolution and improve productivity by reducing errors and call backs.

Fluke Networks, an Everett, Wash.based provider of network test and monitoring solutions, has included a full-colour 1/4 VGA display that stores up to 50 test results for documentation and escalation of issues to other teams.

A unique profile function creates a custom testing methodology with a variety of tests, and standardizes those tests as one or more profiles on a single tester (or fleet of testers) for consistent results. www.flukecanada.ca

The carts have a total capacity of 660 kg (1,460 lb.) and travel at a maximum speed of 50 m/min. www.creform.com

CARTS ENSURE REPEATABLE TRACKING

www.plant.ca

>> Plantware

Handles industrial applications.

Estimate lifetime costs.

MICROPROCESSORS ARE LEAD-FREE

CALCULATOR TARGETS PUMP COSTS

Rochester Electronics has developed a lead-free AM188EM microprocessor to address more strict environmental requirements for a range of industrial control applications.

The AM188EM microcontroller’s enhanced on-chip peripherals include an asynchronous serial port, 32 PIOs, a watchdog timer, an additional interrupt pin, a synchronous serial interface, a PSRAM controller, a 16-bit reset configuration register, and enhanced chip-select functionality.

Rochester Electronics is a manufacturer of semiconductors based in Newburyport, Mass. www.rocelec.com

What does a pump cost over its lifetime?

Use Met-Pro Global Pump Solutions’ online calculator to get an estimate for one or more pumps.

Input your data including initial pump costs, installation costs and annual recurring costs such as maintenance. The calculator will take into account energy costs and generate an analysis including a pie chart.

Generate results by visiting http://www. mp-gps.com/products/pump-life-cyclecost-calculator.

Met-Pro Global Pump Solutions-Fybroc is a supplier of pump technologies based in Telford, Pa. www.mp-gps.com

PLANT WEST 13

12-09-18 10:40 AM

Departments

>> Postscript

EU free-trade deal heralds a new era

BY BRIAN LEE CROWLEY AND JASON LANGRISH

N

egotiations on the wide-ranging free trade agreement between Canada and the 27-member European Union – the largest market in the world – are expected to conclude this year. This is a vital development. Trade policy has mostly stalled for a generation, putting the country’s prosperity at risk.

We need a bold trade agenda. The rising value of our exports is important to the economy, yet Canada has become

would ensure that government procurement is open, “fairCETA and reciprocal… ” uncompetitive in several areas and effectively shut out of markets where we have a competitive advantage.

Productivity growth should be another major contributor to Canada’s prosperity, yet our performance has been lamentable. One reason is we throw many obstacles in the path of Canadians trying to do business in their own country, which fragments our domestic market, undermines economies of scale and

limits export opportunities.

This is exacerbated by domestic markets that are effectively closed to real competition, preventing the entry of innovations from abroad from entering our market.

Telecommunications is an obvious example. The OECD reports our internet services are among the slowest and cellphone bills are the most expensive.

While Korea and Japan move to fifth gen-

eration mobile and internet technology, Canada remains 3G. We can do better, and free trade will help. To reinforce this point, Statistics Canada found Canadian businesses that entered new markets between 1990 and 2006 became more productive than those that maintained the status quo.

Trade, in effect, allows Canadian companies to use other countries’ workers when they can’t find the workers they need at home. This becomes more important as the population ages with the attendant pension and health costs.

Finally, tearing down barriers to investment in foreign markets and increased protection for investors improves the opportunities for better returns to Canadian investors.

The Canada-EU Trade Agreement (CETA) would allow Canada to make progress on all these fronts and more with the world’s single largest market.

The agreement won’t merely improve access for Canadian exporters to a market of 500 million. Intellectual property provisions will be upgraded to a standard consistent with other advanced economies, such as in pharmaceuticals, which is likely to result in increased investments.

Fair procurement CETA would ensure that government procurement is open, fair and reciprocal: not only will Canadian governments (and taxpayers) have access to better quality goods and services at more competitive prices, suppliers will be able to bid freely on government contracts in the EU – a market worth $2.4 trillion.

The agreement would also make it easier for Canada to bring in skilled European workers, a key benefit as the aging population impacts our own pool of workers in coming years.

These advances are essential if Canada is to successfully negotiate access to Asia’s markets, as well as strengthen its influence with the US and at the World Trade Organization. The US has not yet negotiated free trade with Europe so an early deal will give Canadian companies privileged access to both markets – a position enjoyed by few other countries in the world.

The value of trade consistently rises faster than national economies grow, so openness is key to improving Canadians’ economic prospects. That makes successfully negotiating trade deals such as CETA a matter of vital national interest.

Brian Lee Crowley is the managing director of the Macdonald-Laurier Institute, a public policy think tank in Ottawa. Visit www.macdonaldlaurier. ca. Jason Langrish is executive director of the Canada Europe Roundtable for Business. Visit www.canada-europe. org. Distributed by Troy Media.

Comments? E-mail jterrett@plant.ca.

14 PLANT WEST September/October 2012

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