Industry Europe – Issue 24.5 by IndustryEurope

VOLUME 24/5 – 2014 • €6

The world of European manufacturing

BRADKEN – EXPERTS IN HEAVY DUTY CASTINGS KONCAR LOOKS BEYOND ITS HOME MARKET TARKETT OFFERS COMPLETE FLOORING SOLUTIONS

ERA OF CHANGE FOR RAIL INDUSTRY

OPINION

PETERMERCER

Quis custodiet ipsos custodes? Democracy is not always the best solution. Look at Europe’s song contest.

ow much more excitement can the people of Europe take? Already drained by the drama of the Eurovision song contest they are now faced with months of intense campaigning by the rival candidates for the next President of the European Commission. A TV debate has already aired in 24 languages on 49 channels across the continent and as battle is joined between the spitzenkandidaten, tempers, according to Der Spiegel, are getting heated. Tempers probably got pretty heated too among the 180 million people in 45 countries who apparently watched Europe’s annual festival of terrible music and appalling taste. Certainly officials from Russia, Belarus and Armenia seemed none too happy about the victory of Conchita Wurst (aka Thomas Neuwirth) – they had already complained that the mere participation of the Austrian would ‘insult millions of Russians’. It’s true that Conchita’s victory cry – ‘we are unity and we are unstoppable’ – did sound a little threatening as well as incomprehensible but within the Eurovision tradition of pushing the boundaries of gender identity, a bloke with a beard who likes to wear frocks was surely no big deal. Many of Europe’s older generation may, of course, feel that few additions to the canon of songs for swinging transvestites can ever match the poetry of Monty Python’s 1969 ballad, ‘I’m a lumberjack and I’m OK’ – ‘I cut down trees, I skip and jump/I like to press wild flowers./ I put on women’s clothing/ And hang around in bars’. But no doubt university departments of gender studies across Europe are happy to have something new to chew over. Actually, if tempers are indeed rising in the chancelleries of Europe over the election of the new Commission President it is probably because all the main candidates are also crying ‘we are unity and we are unstoppable’ – they are all devoted federalists who believe that a United States of Europe is the EU’s ineluctable destiny. They are also the

candidates of the main political groupings in the European Parliament, which does nothing to recommend them to the EU heads of government who have up till now chosen the Commission President themselves without any tiresome democratic fuss. Everyone knows that the EU has a big problem of political legitimacy. As its debt reduction regime traps the ‘periphery’ countries in seemingly endless recession, people are ever more inclined to protest, ‘We never voted for any of this’. So back in 2009, with the Lisbon Treaty, it seemed one way to address this ‘democratic deficit’ would be to ensure that the European Parliament should in future be consulted over who should be the president of the (unelected) European Commission. It’s true that the Parliament itself has hardly any democratic credibility – it can’t initiate legislation and talks to itself in 24 languages – but at least its members are elected. But now MEPs have taken this new role to mean that the candidate of the largest political group in the Parliament should be first in line for the Commission job. So although the current president, Jose Manuel Barroso, does not step down until November, campaigning for the presidency has become intertwined with campaigning for the elections for the Parliament this May. So if the European Socialists end up as the biggest group, Martin Schulz, already president of the Parliament, will be the man for the Commission job and if the centre-right European People’s Party wins it will be Luxembourg’s former Prime Minister Jean-Claude Junker. If something else happens it might be former Belgian Prime Minister Guy Verhofstadt.

No politics, please Predictably the British are not happy with any of this. Apart from what they see as the rabid federalism of all the Parliament’s candidates and the fact that they are all virtually unknown outside Brussels and Strasbourg,

the UK government is apparently concerned about this ‘politicisation’ of the Commission. Downing Street is said to regard the linking of the selection of the Commission head to the Parliamentary elections as ‘an idiotic idea’, not least because it rules out candidates who might be much more heavyweight contenders but who can’t be considered because they are current heads of governments. That could include Polish Prime Minister Donald Tusk, Irish Taoiseach Enda Kenny and Finnish PM Jyrki Katainen. But what the British really mean when they object to ‘politicisation’ is that they don’t want more democracy in the EU, they don’t want the people of Britain voting for some president any more than they would want them voting for the Secretary General of NATO or the UN. The truth is they don’t really like people voting for the European Parliament itself since, however absurd its pretensions, it does give the EU the appearance of a federal state. The British – or most of them – want the EU and all its works to be a series of agreements and shared competencies between national governments, not a supra-state. Voters should elect their national governments and then let them get on with it. Of course, the single currency has pushed its members down a road to evercloser union from which there may be no turning back. And to make that acceptable you do need some form of supra-national democratic accountability. Good luck with that, the British will say. As for the Commission president, it is quite likely that when it comes to it the heads of state will ignore the Parliament’s candidates and pick their own man or woman for the job. That would be a much better way to run the song contest too. You could get someone with taste and refinement, like Carla Bruni or Vanessa Paradis, to just pick the winner. That might mean that France won every year but n that wouldn’t be so bad. Industry Europe 3

CONTENTS Editor Peter Mercer

Production Manager Kamila Kajtoch

Deputy Editor Victoria Hattersley

Administration Anna Chamberlain Amber Dawson Kayleigh Harvey

Profile Writers Abigail Saltmarsh Felicity Landon Piotr Sadowski Emma-Jane Batey Barbara Rossi Philip Yorke

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

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

Above: Rail Industry p6

Industry Europe Alkmaar House, Alkmaar Way, Norwich, Norfolk, NR6 6BF, United Kingdom Tel: +44 (0)1603 414444 Fax: +44 (0)1603 779850 Email: photos@industryeurope.net adcopy@industryeurope.net Web: www.industryeurope.net

© Industry Europe 2014 No part of this publication may be reproduced in any form for any purpose, other than short sections for the purpose of review, without prior consent of the publisher. POSITIVE PUBLICATIONS

A Square Root Company

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

4 Industry Europe

Comment 1

Opinion Quis custodiet ipsos custodes?

Bill Jamieson Slow euro recovery makes

it tough for exporters

Rail Industry 6

Era of change The Big Three under pressure

Rail news The latest from the industry

Tunnel visionaries 20 years of the Channel Tunnel

News 14

Winning business New orders and contracts

Linking up Combining strengths

Moving on Relocations and expansions

Industry people Appointments

Technology spotlight Advances in technology

Notice board New products and processes

Reports 22

Focus on Germany Allan Hall reports from Berlin

Focus on France Ian Sparks reports from Paris

VOL 24/5

Above: Minerva p77

Building & Construction 24

Building homes, making places Berkeley Group

The clean winner Gustavsberg

Wood – the sustainable choice Metsä Wood

A cut above the rest Savema

Changing floors Tarkett

Electronics Above: Berkeley Group p24 Below: Tarkett p46

Global presence, Italian roots Bitron

Beam of brilliance Jenoptik

Setting new global standards Robert Bosch

Above: FACO p90 Below: OJ Electronics p94

Food & Drink 77

Spreading healthier options Minerva

Heavy Vehicles 82

Driven by innovation NAF

The Wielton way Wielton

HVAC 90

Taking the heat off Faco

Dual success OJ Electronics

Material Handling 98

Global airport logistics solutions Siemens

Logistics and Airports Solutions

Above: Bradken p104 Below: Končar p126

Metalworking 104 Consumables with a difference Bradken

Above: Jenoptik p66 Below: Wielton p86

108 Heavy lifting Bridon

Minerals Processing 112 The full service provider FLSmidth

Mining Equipment 116 Sharpening the focus Metso

Rail 120 Fast-track to efficiency Siemens Rail 126 Building effective partnerships Končar Industry Europe 5

COMMENT

BILLJAMIESON

Executive Editor of The Scotsman

Slow euro recovery makes it tough for exporters For British companies hoping to boost exports into the continent and the euro area in particular, this has been a difficult and frustrating time.

he business headlines at home speak of strengthening recovery, with upbeat business surveys from the Confederation of British Industry, the British Chambers of Commerce, Markit and others pointing to a continuing improvement. Most UK forecasters are now fully signed up to the ‘Three Per Cent Club’ – a growth rate that is above the UK long term trend rate and the best outcome since the onset of the global financial crisis in 2008. But in the eurozone the story is not so encouraging. The good news is that with the figures for the first three months of the year, the eurozone has now sustained positive growth for four consecutive quarters. The year-on-year advance of 0.9 per cent from 0.5 per cent in the fourth quarter of 2013 was the best annual growth rate chalked up since the third quarter of 2011. But neither the pace of recovery, nor prospects for the rest of the year, look as encouraging as in the UK – so long regarded as the sick man of Europe. Growth across the eurozone was pegged at just 0.2 per cent quarter-on-quarter in the three months to end March, dashing hopes that recovery was gaining momentum. This was only half the growth rate that had been widely expected, unchanged from the 2014 fourth quarter growth rate and only marginally up on the 0.1 per cent expansion seen in the third quarter. And, not for the time, that overall figure of 0.2 per cent masked real variance across the single currency area. Germany led the way with a robust 0.8 per cent rate of expansion, helped by mild weather. Spain saw a firming recovery while France saw renewed stagnation. There was a fall back in Italy and sharp relapses in the Netherlands and Portugal.

The eurozone seems no nearer to creating that high growth, employment rising nirvana held out at its inception, inspired by the belief that a shared currency would lift all the boats across the single currency area.

Weak demand That it has been tough for those exporting into the eurozone can be seen in the latest current account numbers. The euro area’s current account surplus has hit a record high of 2.5 per cent of GDP – almost four percentage points higher than at the trough in 2008. Weak domestic demand is the dominant factor here as import growth and investment collapsed. The marked exception was Germany where net trade was reported to have been negative in the first quarter as exports of goods fell and imports rose ‘markedly’. Periphery countries in the euro area accounted for most of the increase in the current account balance. Analysts at Citi group expect that the surplus will rise a bit further – to 2.9 per cent of GDP this year – and decline only gradually thereafter. “This is because we expect domestic demand (and imports) to pick up only modestly.” Aside from Germany, Spain provided some cheer, achieving a third successive quarter of growth, with the rate accelerating to 0.4 per cent quarter-on-quarter. This raises hopes that the Spanish economy is establishing sustainable recovery even though it still faces serious problems. By contrast, French GDP was disappointingly flat quarter-on-quarter – and might have contracted but for a strong positive contribution from inventories. This fuels concerns over

the underlying state of the French economy and makes the government’s growth forecast of one per cent look ever more optimistic. Furthermore, question marks over Italy’s recovery were raised as it disappointingly and worryingly suffered renewed mild GDP contraction of 0.1 per cent quarter-on-quarter. And the Netherlands saw GDP fall back by 1.4 per cent after growth of one per cent in the fourth quarter of 2013. Latest survey evidence and data points overall to the eurozone seeing modest growth in the second quarter. GDP growth is set to be limited to 1.1 per cent this year, improving to 1.6 per cent next as significant constraints remain. The performances of the French and Italian economies in the first quarter fuel suspicion that they will struggle to grow by any more than 0.5 per cent. It also highlights the pressing need in both countries to enact meaningful structural reforms. This standstill performance across the eurozone as a whole and the outlook for only modest improvement should reinforce pressures on the European Central Bank for stimulative action. What a long wait it has been – and deflation worries persist, with the risk that demand will not be strong enough to prevent inflation remaining below one per cent for a prolonged period. Since one of the ECB’s main aims is to weaken the euro, it is soon more likely than not to cut its refinancing rate from 0.25 per cent to 0.15 per cent or 0.10 per cent and even take its deposit rate marginally into negative territory (minus 0.1 per cent). It is also possible that it could announce measures to help liquidity given latest figures showing a continuing fall in lending to businesses. However, a full dive into the pool of n Quantitative Easing still looks unlikely. Industry Europe 7

ERA OF CHANGE The European rail industry is still dominated by Alstom, Bombardier and Siemens but the Asian competition is moving in. James Abbott, editor of Modern Railways magazine, reports.

hat is to become of Alstom, one of the European ‘Big Three’ of railway manufacturing? Speculation was rife in the spring of 2014 after General Electric of the USA made an offer to buy Alstom’s power turbines and grid business for €12.35 billion. The cash-strapped firm welcomed the offer, which did not include Alstom’s Transport division, but the French government was not so keen on having such a major part of the French industrial establishment passing into American hands. The Hollande government was instead pressing for a European solution, in which arch-rival Siemens of Germany would take Alstom’s power business in a swap with some or all of Siemens’ rail assets – which would leave Alstom as a rail-focused company. Siemens initially expressed little enthusiasm for the idea. The early talk was of a deal in which Alstom would take Siemens’ high-speed train expertise and merge it with the French company’s famous Train à Grande Vitesse production. Suburban train and loco production would move too, but light rail and metro work would have stayed with Siemens under this scenario. As the month of May 2014 wore on the German company seemed to be warming to the idea of a deal with Alstom, and talk was of not only a part, but all Siemens’ rolling stock production assets transferring to Alstom, with a joint venture being set up for signalling equipment. Under this scenario the French govern8 Industry Europe

ment would, through a holding company, increase its stake in Alstom from under 1 per cent to around 10 per cent, giving it more say in future over the direction of the group. As Industry Europe closed for press the full details of any Siemens counter-offer to the GE bid (if indeed the German company eventually chose to make a formal bid) remained to be seen. But if the so-called European solution to the Alstom question is realised, it will radically alter the landscape of railway equipment manufacturing in the continent. For many years, Canadian firm Bombardier, whose railway equipment arm is headquartered in Berlin, has been the largest of the European ‘Big Three’. If three become two, the new Alstom will be larger than Bombardier. Alstom already owns an important manufacturing facility in Germany: the former LHB works at Salzgitter producing suburban trains. Adding the large Siemens plant at Krefeld to this would make the French company a major player on the German scene.

Asian influence In the 1990s Europe was top dog in the railway equipment manufacturing world, but in recent years the picture has changed. Urbanisation in Asia has made that continent the biggest market in the world for railway equipment, and now Chinese and Indian manufacturers are large players (Japan has long had a large railway equipment sector). But the Asian firms are still largely building for domestic con-

sumption and the European Big Three remain important players for railway equipment that is traded across borders. Joint ventures in China cement a presence for the Europeans and Japanese in the biggest market in the world by volume. The Asian and European railway equipment worlds are becoming further enmeshed. Japanese company Hitachi is building the first Asian-owned assembly plant in Europe, at Newton Aycliffe in County Durham in northeast England. This is being set up on the back of an order to manufacture 863 vehicles for inter-city trains for the Great Western and East Coast main lines in the UK. The Great Western and East Coast trains will keep Newton Aycliffe busy up until the end of the decade and the interesting question will be what happens then. Hitachi will no doubt be hoping that it can emulate the success of the nearby Sunderland car plant of fellow Japanese company Nissan, the most productive auto facility in Europe and a major exporter to the Continental mainland. Less positive is the example of the railway wagon manufacturing plant in York set up by the American company Thrall Car in the 1990s to address a requirement for freight vehicles in the UK, but which failed to gain further orders and closed once the specific requirement was met. The search is now on for additional work to supplement Newton Aycliffe’s initial order, but Hitachi recently missed out on 585 vehicles for trains for the new Crossrail suburban

line in London – that contract went instead to the sole remaining historic rolling stock manufacturing plant in the UK, Bombardier’s Derby factory. Hitachi also lost out on a bid to build suburban trains for Hamburg. Further Asian influence can be seen in a recent order for vehicles for the Stockholm metro, which went to Bombardier. Nothing unusual there – Bombardier is a long-time supplier to the Swedish capital. But the bodyshells for these cars will be coming from Bombardier’s joint venture company in China, which could presage further interlinking of the European and Asian industries.

Second tier players Elsewhere on the European railway equipment manufacturing scene, there is speculation as to what will become of Italian supplier Ansaldo. The company has had a disastrous recent history in rolling stock manufacture, capped by rejection on quality grounds of a fleet of high-speed trains built in Italy for the high-speed line linking Brussels to Amsterdam. The cancellation of the order was the culmination of a long-running saga that soured relationships between the Italian and Dutch governments and left the Italian company seriously out of pocket. In contrast to the ailing rolling stock side, Ansaldo’s signalling equipment arm is a vigorous player in that market and has been linked to Hitachi in recent reports. But it seems unlikely that the Japanese company would take the signalling unit if a condition of any sale was that it took on the rolling stock unit as well. Contrasting with the Italian company is Spanish firm CAF, which persists as a successful independent business in a market increasingly dominated by global players. From its factories at Zaragoza and Beasain

in northern Spain, CAF exports 80 per cent of its output to markets ranging from New Zealand to South America and most of the northern hemisphere as well. A large chunk of CAF’s equity is owned by local building societies and the firm retains an independent streak in its approach to manufacturing. While the European Big Three increasingly run assembly plants, where components from toilets to couplings are produced by sub-contractors and assembled at the main contractor’s site, CAF still has integrated manufacturing facilities. At the Beasain plant in the Basque hills you can still see molten metal being forged into railway wheels in the same factory that puts the trains together.

Diesel quandary There is change afoot in the European diesel locomotive market. With most of the continent’s main lines being electrified, electric locomotives supplied by the Big Three dominate the loco market. But diesel remains important in the freight sector, as many byways used by freight trains are not electrified. The likes of Siemens and Bombardier are catering for this by bringing out ‘last km’ models, where electric locos are fitted with small diesel engines to get them over those last few unelectrified kilometres to freight sidings. There remains some requirement for straight diesel locos. The market is tiny compared to North America, where General Electric and Caterpillar-owned EMD turn out diesel locos by the hundred for hauling freights three or four thousand kilometres across the Great Plains. In Europe, the industrial areas are more closely grouped together, which means rail does not have the same natural advantage for freight that it does in North America.

The US giants have produced locomotives for Europe, but it has not been an altogether happy experience. EMD did well in the UK in the 1990s and tried to emulate that success on the Continental mainland, but red tape in the approval process has left the American firm increasingly exasperated. GE followed with a model for the UK but has failed to gain volume sales in Europe. There has been some talk of the GE loco plant in Erie, Pennsylvania, going to Alstom as part of a deal over the two companies’ power generating capacity, but failing that coming to pass the two continents’ loco manufacturing industries look set to diverge as the Americans find Europe unrewarding by comparison with their home market. That leaves a small European diesel loco industry, with the Big Three having a residual capacity for diesel locos. In addition, the German firm Vossloh has plants in Kiel in Germany and Valencia in Spain turning out locos powered by Caterpillar engines, but another German railway equipment supplier, Voith, has given up the game and closed its loco plant in Kiel in order to concentrate on rail vehicle components and overhaul. There are independent suppliers in Poland and the Czech Republic supplying eastern European markets. A complicating factor in the diesel loco market is that the European Commission is enforcing harsh emissions standards known as the IIIb directive. Worst affected by this is the UK, as that country has a tight loading gauge (the clearance between train and lineside structures) which requires small bodyshells, making it difficult and expensive to fit exhaust cleaning kit in a loco. Under special dispensation from the Commission, EMD and Vossloh are currently building a last handful of new diesel locos for the UK that meet the previous IIIa emissions Industry Europe 9

standard, but after that the economics of new locos alter radically. The perverse effect of the Commission’s activity could be to push freight to road haulage, which is generally held to be more environmentally damaging than rail.

Operations On the operating side of the railways, the most interesting countries are Sweden and the UK, as these are the EU member states that have done most to liberalise their markets. Elsewhere, state-owned railways continue to dominate. The UK lets all its passenger operations out on franchises of seven years or more. While private sector companies such as First Group and Stagecoach participate, subsidiaries of the German, French and Dutch state-owned railways are also important players – which is not quite the sort of competition envisaged by the architects of the British railway privatisation 20 years ago. The French state railway SNCF is a 20 per cent shareholder in NTV, a company that competes in the high speed rail sector in Italy. Meanwhile the German state railway DB has tentacles spreading over most of the continent following an aggressive acquisition programme that some allege was indirectly subsidised by 10 Industry Europe

the German government through its generous infrastructure grants in Germany, leaving DB with spare money to invest elsewhere. It began with expansion in rail freight and DB’s cargo arm is now the biggest player in rail freight in the Netherlands and the UK as well as Germany – and has important operations in several other countries. On the passenger side, major expansion outside Germany came with the acquisition of Arriva, which was the most active of the privatised British transport companies in the Continental rail market. The European Commission insisted DB divest itself of Arriva’s operations in Germany, where DB is already the dominant player in competitions for local train operating concessions, but in other countries it continues to trade under the Arriva name. In a joint venture with MTR, the company that runs the Hong Kong mass transit system, DB has the concession to run the London Overground network in the British capital. Through Arriva, DB runs suburban train operations in Stockholm and elsewhere. While the Germans are running the suburban trains in the Swedish capital, MTR has the concession to run the Stockholm metro. The Chinese company is looking to expand further in Europe and is now eyeing the inter-city mar-

ket in Sweden. Sweden has recently abolished the monopoly of state operator SJ in the longdistance sector and MTR is buying new trains from Swiss company Stadler with the intention of competing with SJ on the lucrative Stockholm to Gothenburg route. MTR’s services are expected to start running in the autumn. n

A Class 68 diesel loco for Direct Rail Services of the UK takes shape inside the Valencia factory of Vossloh

NEWS

New developments in the Rail industry

Roxtec safety seals chosen for LU invites Thales to tender London Underground upgrade for new signalling system

reater Manchester based cable seal manufacturer Roxtec has been commissioned by Transport for London (TfL) to supply the upgrade of the London Underground (LU) system, providing seals for trackside modernisation. Roxtec UK managing director Graham O’Hare said the company’s seals are being used because of their proven track record in protecting against multiple hazards. “We offer more than the standard firestop solution,” he said. “Roxtec products seal against fire, gas, water and vermin and can provide electromagnetic compatibility.” Visit: www.roxtec.com

ondon Underground (LU) has invited Thales to tender for the contract to transform capacity and reliability on the Circle, District, Hammersmith & City and Metropolitan lines (Sub-Surface railway). The delivery of the contract would see the signalling replaced and modernised – improving the journeys of millions of people who use the lines, which comprise 40 per cent of the Underground network, each day. Thales, who have been installing the signalling on the Northern line, presented LU with a signalling solution that would meet the intricate operational requirements of the oldest and most complex parts of the Tube network. Visit: www.tfl.gov.uk

INDUSTRYNEWS Bombardier and Deutsche Bahn Sign Contract for 29 Trains

Dtionmultiple units from Bombardier TransportaDB Schenker Logistics carries ABB for the S-Bahn Mitteldeutschland commuter service in central Germany. The contract transformers from St Petersburg to Novosibirsk railbetween the Deutsche Bahn subsidiary DB Regio eutsche Bahn has ordered 29 TALENT 2

arlier this year, DB Schenker transported four transformers for ABB Group some 4000 kilometres from the port of St Petersburg to the Novosibirsk Hydroelectric Power Station, a branch of OAO RusHydro. The cargo, with a total weight amounting to 280 metric tons, had to be partially knocked down to be transported. DB Schenker’s Russian national company ZAO Schenker won the bid for the project by offering particularly high service and the shortest delivery time. Within a short period, the documents were gathered for customs clearance, railroad transportation of the heavy-weight pieces – weighing over 60 metric tons each – was made ready, and the necessary permits were obtained from the authorities for the final leg of the journey by road to the construction site. “The choice of rolling stock and the design of a special method for securing the cargo wasn’t easy,” said Pavel Zahrov, head of project forward-

ing at ZAO Schenker. “The dimensions, the weight, the supporting surface, the transformers’ unusually high and shifted center of gravity – all these factors did not allow the application of traditional methods for placing and securing cargo, even in the case of using special-purpose railroad wagons. That’s why we developed a special solution that we coordinated with Russian Railways.” Visit: www.dbschenker.com

Siemens presents new ICE 3 in Berlin

ber 2013. “This has enabled us to substantially reduce vehicle bottlenecks which have been occurring for years due to the tenfold increase in the frequency of axle tests which was introduced in 2009,” said Grube. “For our customers, this means more reliability and greater punctuality.” The new ICE 3 offers a new level of quality when it comes to service and comfort. For

ochen Eickholt, CEO of Siemens’ Rail Systems Division, recently handed over the eighth and last of the new ICE 3 trains of the first consignment to Rüdiger Grube, chairman and CEO of Deutsche Bahn AG, in Berlin. The new trains have gone into operation on the Cologne-Frankfurt (Main)-Stuttgart route successively since the end of Decem-

and Bombardier is valued at approximately 146 million euro ($203 million US). The order marks the 13th call-off from a framework agreement concluded in 2007 with a volume of more than 1 billion euro ($1.4 billion US). “Our successful TALENT 2 trains fulfil Deutsche Bahnís requirements perfectly in energy and cost efficiency, environmental friendliness and passenger comfort. We offer our customer an optimal, market-oriented service,” added Dr Lutz Bertling, president and COO of Bombardier Transportation. The principal characteristics of the TALENT 2 electric multiple unit (EMU) platform are its innovative, modular concept and the high degree of standardisation, which allows for a flexible train configuration. The platform concept allows for numerous variants of the same train type. The train sets can be equipped with a variety of different technical modules. Visit: www.bombardier.com example, passengers can keep informed about the train’s progress on the new overhead monitors and dine comfortably in the 16-seat, fully equipped onboard restaurant while traveling through Germany at speeds of up to 300 kilometres an hour. In addition, the Series 407 scores high marks for lower energy consumption and enhanced technical reliability. Visit: www.siemens.com Industry Europe 11

NEWS

New developments in the Rail industry

Eurostar opens new ticket office at St Pancras

urostar has unveiled the first phase of a brand new ticket office in St Pancras International station, as part of an extensive programme of station improvements to enhance the passenger experience. The stylish new ticket office has been relocated from St Pancras station’s southern entrance to Eurostar’s existing check-in area dramatically improving customer access. The new ticket office features a striking contemporary design in a bright, elegant and welcoming space with dedicated ticket desks where passengers can speak to Eurostar’s customer service staff about their bookings. The new St Pancras ticket office forms part of a wider investment programme, which includes work currently underway at Lille Europe station to significantly increase the capacity of the Eurostar terminal in order to accommodate anticipated growth in the volume of connecting passengers. In addition, there are a series of planned upgrades to Eurostar’s lounges for business travellers with work to transform the Brussels Midi lounge schedule to commence this summer. Visit: www.eurostar.com

Eurotunnel completes mobile telephone and internet connections in Channel Tunnel F

or its 20th Anniversary, Eurotunnel has installed British mobile telephone services inside the North Running Tunnel with the help of UK operators Vodafone, EE and O2 UK and the equipment supplier, Alcatel-Lucent, with services commencing on 6 May for Vodafone and EE, and soon for O2 UK. With the goal of improving services for customers, the fibre optic GSP-P retransmission system for 2G1 and 3G2 mobile telephone and internet which will enable passengers on board Le Shuttle and high speed passengers to use their mobile devices to make calls and use the internet inside the Channel Tunnel is similar to that installed in the South Tunnel in July 2012 (direction France-UK) by the French operators, in time for the London Olympic Games. Visit: www.eurotunnel.com

Record number of passengers at Deutsche Bahn

nce again, more passengers on Deutsche Bahn trains: in 2013, the number of passengers increased again compared to the previous year. Throughout the year, DB transported 2.016 billion passengers in German rail passenger transport, 42 million more than in the previous year. This positive development was primarily supported by a sustained growth in local transportation. “This upward trend is good news in this, the 20th anniversary of the German rail reform,” explained Dr Rüdiger Grube, chairman of the management board, at the presentation of the 2013 annual results in Frankfurt. He pointed out that the numbers of new car registrations and domestic German air passenger numbers had declined and concluded, “the general mobility trend is clearly leaning toward train travel.” Visit: www.bahn.com

New Voith plant for rail vehicle components in China V

oith is investing €25 million in the construction of a new plant for rail vehicle components in Shanghai. The opening of the new plant is meant to boost the step-by-step expansion of rail vehicle component production in China for the Asia-Pacific region. In addition, Voith will set up an engineering centre to develop and adapt components on site to meet local customer requirements. Voith Turbo already has assembly and production sites for rail and commercial vehicle drive components, which was opened in 2007 at the Xinzhuang Industrial Park in the Minhang District of Shanghai. The Group Division also holds a 50% stake in two joint ventures: the gear unit manufacturer Voith Lutong Urban Rail Gearbox Technology in Changchun and the Scharfenberg coupler producer Voith Schaku KTK Coupler Technology in Shanghai. Visit: www.voith.com

Alstom to supply suburban trains in South Africa

lstom has announced that PRASA (Passenger Rail Agency of South Africa) and Gibela have concluded the financial close of the contract for the supply of 600 XíTtrapolis Mega commuter trains (3600 cars) over a period of 10 years. The contract includes the construction of a local manufacturing facility 12 Industry Europe

in Dunnottar, 50km east of Johannesburg. In addition, Gibela will provide technical support and supply of spare parts over an 18-year period. This project is one of the biggest in rail transport worldwide and is the largest contract ever signed in Alstom’s history. It confirms the intent of the company to establish itself as a leader in fast growing markets.

PRASA will be supplied with the XíTrapolis Mega, the new XíTrapolis train developed by Alstom to fit South Africa’s 1.067m gauge. The first 20 trains will be produced at Alstom’s Lapa plant in Brazil. Then the 600,000 m≤ manufacturing site in Dunnottar will produce the 580 trains destined for manufacture in South Africa.  Visit: www.alstom.com

INDUSTRYNEWS Tata Steel track supply deal with French rail operator

ata Steel has won a two-year contract to supply more than 200,000 tonnes of track to French rail operator SNCF. The contract will see Tata Steel supply the majority of SNCF’s rail requirements in lengths of up to 108 metres from its plant in Hayange, Northern France. The order was secured following a €35 million investment by Tata Steel in 2011 which allowed the Hayange mill to produce 108m lengths of rail that SNCF will use throughout France’s standard and high-speed networks. The new order is an extension of a previous contract with SNCF. The Hayange rolling mill is supplied with steel from Tata Steel’s Scunthorpe steelworks in the UK. Visit: www.tatasteeleurope.com

Ansaldo STS opens line M2 of the Ankara Metro

he M2 line, which runs 16.5km and serves 12 stations, is part of the project for the modernisation of the Ankara Metro network. The overall project has been awarded to the consortium led by Ansaldo STS and including Alsim Tesisleri Alarko Sanayi Ve Ticaret AS. Within the framework of the contract, Ansaldo STS’ scope of work covers the design, supply, installation, test and commissioning of the new signalling systems and subsystems, CBTC (Communications Based Train Control), IXL Interlocking, ATS (Automatic Train Control), DCS (Data Communication Systems) to equip the new lines M2, M3 and M4 and respective new fleet of trains, as well as updating the existing signalling systems on the M1 line, depot and trains. Visit: www.ansaldo-sts.com

Official start of Oxford to London rail project

visit by the UK Secretary of State for Transport marked the start of major work on the Chiltern Railways Oxford to London Marylebone project, a landmark new rail route that will be the first to connect a major British city with London in over 100 years.

First phase of London Bridge station rebuild finishes

he first phase of the dramatic rebuild of London Bridge railway station was finished on schedule at the end of March when the first two new platforms were brought into use and the next two closed for redevelopment. The overhaul of London Bridge is Britain’s biggest ever station redevelopment and when complete the station will be longer than the Shard is tall, with a new single concourse larger than the pitch at Wembley at street level to provide more space and easier connections to other rail services and the Underground. Improved links will join the two communities to the north and south of the station and help boost economic regeneration in the area. Visit: www.networkrail.co.uk

MTU to supply diesel engines to Pesa M

TU has received an order from Polish rail vehicle manufacturer Pesa Bydgoszcz SA for ten Series 4000 locomotive diesel engines. The Type Gama 111Db locomotives from Pesa are to be fitted with 16-cylinder Type 4000 R84 units from MTU, a subsidiary of Rolls Royce Power Systems AG. The engines are certificated for EU Stage IIIB emissions regulations, and will go into operation in 2015, powering the locomotives and driving the passengers of the Polish rail company PKP Intercity. Their 2400 kW output means the diesel engines can take the Gama locomotives up to a top speed of 160kph. The MTU drive units achieve EU Stage IIIB compliance using exhaust gas recycling, common rail injection and diesel

Once completed, the project will provide Oxfordshire with a new rail route to London, improve services between Bicester and Oxford, and re-establish a direct rail link between Oxford and High Wycombe. The new line between Oxford and London Marylebone is planned to launch from Oxford Parkway in Summer 2015 and from Oxford city centre in Spring 2016.

particulate filters. The engines’ two-stage turbocharging technology delivers high charge-air pressures for enhanced power with minimum particulate emissions. Visit: www.mtu-online.com

Rob Brighouse, managing director of Chiltern Railways, said: “Chiltern Railways has invested £130 million in our landmark Oxford to London Marylebone project that will deliver significant economic benefits for those living and working along the route and transform travel for people in Oxfordshire.” Visit: www.arriva.co.uk Industry Europe 13

TUNNEL VISIONARIES For hundreds of years, probably since the English Channel was created after sea levels rose, schemes have been made to span the 21 miles of water separating the UK from the rest of Europe with tunnels and bridges. Robert Williams celebrates 20 years of the Channel Tunnel.

he first plan in recent times was developed by Albert Mathieu Favier. In 1802 the French mining engineer proposed to tunnel under the English Channel with illumination from oil lamps, horse drawn coaches and an artificial island mid channel for changing horses. Napoleon supported the plan but the British vetoed it, fearing that he wanted to build the tunnel in order to invade England (although one would think that soldiers emerging from a tunnel would have been rather easy to stop…). There were many other plans that never left the drawing board until, in 1973, Prime Minister Edward Heath and French President Pompidou signed an agreement to push ahead with a Channel tunnel. Work actually started on this tunnel, although it was soon abandoned. Then, in 1984, French president Francois Mitterrand and UK Prime Minister Margaret Thatcher jointly agreed to construct a link across the Channel. There were ten proposals, including various tunnels and bridges. The proposal that 14 Industry Europe

won was the plan for the Channel Tunnel, submitted by the Balfour Beatty Construction Company (this later became Transmanche Link). The tunnel would be the longest undersea tunnel in the world with 38km out of the 50km length under the sea. The geology of the Channel was examined and digging began simultaneously from the British and the French coasts, with the finished tunnel meeting in the middle. On the British side, construction began near Shakespeare Cliff outside Folkestone; the French side began near the village of Sangatte. The short stretch of tunnel dug in 1974 was used as the starting and access point for tunneling operations from the British side for today’s tunnel. Huge tunnel boring machines, (TBMs), cut through the chalk marl, collected the debris, and transported the debris behind it using conveyor belts. As the TBMs bore through the chalk, the sides of the newly dug tunnel had to be lined with concrete. This concrete lining was to help the tunnel withstand the intense pressure from above as well as to help

waterproof the tunnel (although the tunnel is, on average, 40metres below the sea bed). The project used eleven boring machines each of which were the length of two football fields and capable of chewing though 250 feet of earth a day. On the British side six were lowered into an excavation near Dover’s Shakespeare Cliff. Three were pointed toward the channel to make the underwater portion of the tunnel and three toward the mainland to make the tunnel approaches. In France the same thing was done with five machines at an excavation near Sangatte. The Channel Tunnel is actually two parallel railway tunnels and a third, smaller, service tunnel that is used for maintenance, including communication cables and drainage pipes. One of the most challenging tasks on the project was making sure that both the British side of the tunnel and the French side actually met up in the middle. Special lasers and surveying equipment was used; however, with such a large project, no one was sure it would actually work.

Englishman Graham Fagg and Frenchman Phillippe Cozette carried out the ceremonial break through on 1 December 1990. It took until 6 May 1994, however, before the tunnel was official opened for business in a formal ceremony involving British Queen Elizabeth II and French President François Mitterrand. Crossover tunnels, land tunnels from the coast to the terminals, piston relief ducts, electrical systems, fireproof doors, the ventilation system, and train tracks all had to be built, as well as the two large train terminals at Folkestone and Coquelles. Overall, the project cost £4.65 billion (equivalent to £12 billion today), 80 per cent more than expected.

The tunnel today The two rail tunnels are 7.6m in diameter and 30m apart. Each rail tunnel has a single track, overhead line equipment and two walkways (one for maintenance purposes and the other for use in the event of an emergency evacua-

tion and on the side nearest the service tunnel). The service tunnel is a road tunnel used by electric and diesel-powered vehicles, where air pressure is higher to prevent smoke in case of a fire in one of the rail tunnels. The walkways are also designed to maintain a shuttle upright and in a straight line of travel in the unlikely event of a derailment. Two undersea crossovers allow trains to switch from one tunnel to the other during night maintenance periods so that individual sections of the tunnel can be isolated. The overhead power lines are also divided into sections, so that maintenance work can be carried out in stages. Electrical power supplying the tunnels, drainage pumps, lighting and the trains, is provided by substations on each side of the Channel. In the event of loss of power from one side, the entire system can be supplied from the other side. As well as being the world’s longest undersea railway tunnel, more than 270 trains run

each day, that is one train every 3 minutes at peak times. The Truck Shuttles carry up to 32 heavy goods vehicles and some of the Freight Shuttles weigh in at 2,500 tonnes. These 800-metre long trains run at 140 kph. The Passenger Shuttles travel at the same speed and transport up to 120 cars and 12 coaches. The Eurostar trains travel at 160 kph below the sea. The Channel Tunnel is a true feat of engineering. At the height (or depth) of construction 15,000 people were employed. When you next take a journey under the Channel, you should remember the ten workers, eight of them British, who were killed during construction, most in the first few months of boring. And mark the words the Queen observed in her speech to open this Wonder of the World, “The mixture of French elan and British pragmatism, when united in a common cause, has proved to be a highly successful combination. The tunnel embodies that n simple truth.”

Industry Europe 15

NEWS

New contracts and orders in industry

KONGSBERG signs contract for deliveries to F-35 Joint Strike Fighter

ongsberg Defence Systems has signed a contract with Lockheed Martin valued at 160 MNOK for deliveries of Rudders & Vertical Leading Edges for Production Lot 8 (LRIP 8) for the F-35 Joint Strike Fighter. The contract is a continuation of deliveries from the five previous production lots (LRIP 3-7) and supports the continued business relationship between KONGSBERG and Lockheed Martin. “We are pleased that we reached an agreement for additional vertical tail leading edges and rudder components for the F-35 Lightning II and it is a testament to the continuing long-term interna-

tional cooperation between Lockheed Martin and KONGSBERG,” said Susan Ouzts, Lockheed Martin vice-president, F-35 International Programs. “This contract demonstrates KONGSBERG’s continued competitiveness in high end manufacturing and represents a new significant milestone for our aerostructures business. We are pleased to be a supplier of quality products to the F-35 program, supporting the continuation of our longterm cooperation with Lockheed Martin,” said Terje Bråthen, executive vice-president Aerostructures, Kongsberg Defence Systems. Visit: www.kongsberg.com

Success for Nordex in the United Kingdom

ordex SE is continuing to grow in the United Kingdom, having been awarded a further two projects with a combined installed output of 25MW by renowned customer RES. The six N90/2500 turbine Jack’s Lane Wind Farm is located in North West Norfolk and at 15 megawatts (MW) could generate sufficient renewable electricity to meet the average needs of more than 10,600 homes each year. The 10MW Woolley Hill Wind Warm in Huntingdonshire, comprises four N100/2500 turbines capable of powering more than 8,000 homes.

RES and Nordex previously worked together on several projects in Northern Ireland with a total installed capacity of 90MW. The current partnership builds on this previous relationship, with the Nordex N90/2500 turbines used at Jack’s Lane Wind Farm, and N100/2500 model at Woolley Hill Wind Farm proving to be the most cost-effective option for delivering fully optimised energy yields for the respective projects. “We are pleased to be able to execute a further two projects with our core customer RES for our

proven N90 and N100 turbines,” said Nordex management board member Lars Bondo Krogsgaard. Visit: www.nordex-online.com

CSUN and PV-Systems sign 15 MW framework contract C

SUN, a specialised manufacturer of solar cells and modules, has signed a 15 megawatt framework agreement with the Turkish company EPC PV-Systems at the Solarex exhibition in Istanbul. The framework agreement covers CSUN 250-60P modules produced at CSUN Eurasia’s factory in Istanbul as well as deliveries from

Surface Generation signs major aircraft engine production deal

urface Generation has announced that IHI Corporation, the Japanese engineering giant, is to use its Production to Functional Specifications (PtFS) process to create lightweight jet engine parts for a major next generation single aisle commercial aircraft program. IHI has signed a five year contract

16 Industry Europe

China. The modules will be used in several unlicensed ground mounted projects across Turkey. The first projects will be constructed in the Antalya region. Mr Hüseyin Köse, one of the owners of PV-Systems, explains: “We chose to cooperate with CSUN in Turkey, based on my long-term experience with their products in services in to use Surface Generation’s patented PtFS technologies to produce thousands of carbon fibre reinforced thermoplastic guide vanes. The PtFS process encompasses a range of active thermal management technologies, allowing temperatures to be dynamically controlled to the exact requirements of each mould area and process stage. This uniquely allows manufacturers to continuously adapt

Greece and Bulgaria, where we installed more than six megawatts of their modules in our projects. The quality of the products provided by CSUN has proven to be outstanding and we are very satisfied with their services. The framework agreement will ensure module availability for our expansion plans in Turkey.” Visit: www.csun-solar.com heating and cooling levels in real-time, assuring quality and maximising throughput.   Ben Halford, chief executive at Surface Generation, comments: “Every gram counts when it comes to building lighter more fuel-efficient aircraft, so being able to economically massproduce complex composite parts is a major step forward for the industry.”   Visit: www.surface-generation.com

WINNINGBUSINESS

Seasight Davits wins order for Humber Gateway offshore wind farm

easight Davits has won an order for the delivery of 73 offshore wind platform cranes for the Humber offshore wind farm. Seasight Davits won the order in close competition with other leading platform crane manufacturers in Europe, and the order confirms the attractiveness of SeasightDavits’s own-design davit crane, which is designed with the purpose of hoisting tools and spare parts from the crew vessels. The design of the platform crane takes its point of origin in keywords such as easy maintenance, operational reliability and user-friendliness, which now are going to be a part of the Humber offshore wind farm. This is another step into the offshore wind market, after Seasight Davits last year delivered the platform cranes to the Northwind Offshore Windpark. Visit: www.seasight-davits.com

Plexus signs well order with Galp Energia P

lexus Holdings has been awarded a contract with new customer Galp Energia Tarfya BV to supply surface wellhead and mudline equipment services for an exploration well offshore Morocco. The value of the contract, which sees Plexus secure a new territory and further strengthen its position in North Africa, is estimated at approximately £600,000 with revenues expected to commence in April 2014. Under the terms of the contract, Plexus will supply its 18-3/4” POS-GRIP surface wellhead and mudline systems for use on a standard pressure 6000 PSI exploration well. Plexus Holdings is a dominant force in the North Sea oil and gas industry with an everexpanding global presence. It provides various products to the Oil & Gas industry using its patented POS-GRIP Friction Grip Technology. Visit: www.plexusplc.com

UK partnership secures major MOD contract A

trio of leading UK-based and owned defence sector players, led by Coventry-based Morgan Advanced Materials – Composites & Defence Systems and including Ricardo and Ultra Electronics, has clinched a highly prestigious contract to support and develop the Ministry of Defence’s Cougar family of protected patrol vehicles. The Cougar Post-Design Service (PDS) programme which covers the Mastiff, Ridgback and Wolfhound vehicles fleets is set to be worth up to £20 million over the first two years and could

be extended for as long as seven years in total. Of particular importance to the programme will be the optimisation of safety on the platforms, in addition to configuration management, legal compliance and standardisation of the platforms by rationalising the component supply chain. The team won the bid against strong competition by best meeting the key criteria specified by the MoD such as quality, software, safety, environmental impact and vehicle integration, as well as the ability to provide a truly sustainable support solution.

LSR Group wins major Moscow housing contract

and 342m2 of underground parking. To win the contract, LSR Group offered the best project execution conditions and was fully compliant with the requirements in terms of financial soundness, strong international credit ratings and successful implementation of large-scale development projects in the largest regions of Russia. The project is planned to be completed by 31 December 2022.

SR Group has won a contract for the redevelopment of the industrial area of the ZiL plant in Moscow. It is planned to build 1.57 million square metres of housing there. The project will include 584,000m2 of housing, 365m2 of apartments, 167m2 of office premises, 98m2 of commercial areas

The contract will cover a fleet of more than 600 vehicles, comprising in excess of 20 variants. Visit: www.morganadvancedmaterials.com

Aleksandr Vakhmistrov, CEO and chairman of the executive committee of LSR Group, comments: “Redevelopment of the ZiL territories is a milestone event in Moscow’s history and the largest construction project in the Russian capital for the last 20–30 years. Our integrated approach allows us to create a completely new standard of living in Moscow.” Visit: www.lsrgroup.ru Industry Europe 17

NEWS

Combining strengths

Superlas acquired by Trelleborg T

relleborg has, through its business area Trelleborg Industrial Solutions, signed an agreement to acquire the privately owned Superlas Group. The company develops and manufactures industrial hoses for a range of industries, such as construction and civil engineering, processing, industrial cleaning and tanker transportation. The acquisition consolidates Trelleborg’s market leading position in industrial hoses. Superlas has manufacturing facilities in Turkey and sales offices in Austria and the UK. Sales are global and in 2013 amounted to about SEK 400 million. The transaction forms part of Trelleborg’s strategy to strengthen its positions in selected attractive market segments. “The acquired operation is a major manufacturer of medium/low pressure industrial hoses and one of the world’s largest in mandrel-build hoses. Superlas Group offers a product range that complements Trelleborg’s product portfolio very well. By combining these offers, we create favourable opportunities for further geographic expansion, particularly in North America and Asia while strengthening our market position in general,” says Mikael Fryklund, president of the Trelleborg Industrial Solutions business area. Visit: www.superlas.com

Saab and ThyssenKrupp sign MoU

hyssenKrupp Industrial Solutions AG, a subsidiary of ThyssenKrupp AG, and Saab AB have signed a non-binding Memorandum of Understanding concerning the sale of the Swedish shipyard ThyssenKrupp Marine Systems AB (formerly named Kockums) with operations in Malmö, Karlskrona and Muskö to Saab AB. Both parties agree that during the negotiations phase, the integrity and the operating ability of ThyssenKrupp Marine Systems AB must be safeguarded. The Memorandum of Understanding is in line with Saab’s ambition to expand its activities in the naval area and meets the needs of Sweden for an industrial solution regarding design, production and maintenance of submarines and warships. An acquisition of ThyssenKrupp Marine Systems AB will enable Saab to meet this ambition. Saab serves the global market with worldleading products, services and solutions ranging from military defence to civil security. Visit: www.saabgroup.com

ERIKS acquires Maagtechnic Group

11 February 2014, ERIKS announced having reached an agreement with Datwyler to acquire all shares of the Maagtechnic Group. This acquisition was finalised successfully on 1 April 2014. The Maagtechnic Group is a leading European industrial service provider, serving OEM (Original Equipment Manufacturers) as well

18 Industry Europe

A merger of equals to create LafargeHolcim

olcim and Lafarge have announced their intention to combine the two companies through a merger of equals, unanimously approved by their respective board of directors and fully supported by the core shareholders of both companies. This new global company with European roots would deliver compelling benefits for all stakeholders. LafargeHolcim would be in the best position to contribute to addressing the challenges of urbanisation: affordable housing, urban sprawl and transport. The new group would increase its offer to customers through innovation delivered on an expanded scale, best in class R&D and a combined portfolio of solutions and products. Both companies have pioneered sustainability and climate change mitigation in the industry and are committed to take it to the next level. LafargeHolcim would have an enhanced presence in the global building materials sector with a number one position globally across cement, as MRO (Maintenance Repair Overhaul) with operating companies in Switzerland, France, Germany and the Czech Republic. Maagtechnic is active in the distribution, manufacturing, customising and engineering of the following competences: Sealing, rubber and plastics technology; flow and connection technology; power transmission and drive technology; tools, maintenance and safety products; and

concrete and aggregates and new opportunities to optimise production and commercial networks. After a strategic optimisation of the portfolio through a pro-active divestment process, in anticipation of regulatory requirements, LafargeHolcim would occupy complementary positions. Combined operations would include production sites located in 90 countries across all continents with the most balanced and diversified portfolio in the industry. Visit: www.lafarge.com

logistics and e-business solutions. With approximately 580 employees, Maagtechnic realised sales of around CHF 150 million in 2013. ERIKS is a leading international service provider offering a wide range of engineering components and related technical and logistics services. Visit: www.eriks.com

LINKINGUP Outotec purchases premium coated titanium anode business

utotec has acquired the business and IPRs of Republic Alternative Technologies Inc., a premium coated titanium anode engineering and fabrication company based in Cleveland, Ohio, USA. The acquisition complements Outotec’s offerings for sustainable electrowinning plants and supports the company’s strategy to grow its service business through providing life-cycle solutions to the customers.

Republic Alternative Technologies is the world’s first producer of innovative mixed metal oxide coated titanium anodes, which are used as an alternative to conventional lead anodes in electrowinning operations to produce copper, zinc and other metals. Thanks to low cell voltage, these coated titanium anodes consume 7 to15% less energy than conventional lead anodes. They are currently used in industrial

copper electrowinning plants in Arizona, New Mexico and South America. Republic Alternative Technologies has 18 employees and its sales in 2013 were approximately €9 million. Outotec plans to commercialise the application of coated titanium anodes also in zinc and nickel electrowinning processes and believes that the business has substantial growth potential worldwide. Visit: www.outotec.com

Alfa Laval acquires Frank Mohn AS A

lfa Laval has signed an agreement to acquire Frank Mohn AS, a leading manufacturer of submerged pumping systems to the marine and offshore markets. The acquisition, which strengthens Alfa Laval’s fluid handling portfolio by adding a unique pumping technology, will further reinforce Alfa Laval’s position as a leading supplier to the marine and offshore oil & gas markets. Alfa Laval has agreed to acquire Frank Mohn AS, with the product brand Framo, for a total cash consideration of NOK 13 billion, from Wimoh AS, a company controlled by the Mohn family. Frank Mohn, headquartered in Bergen, Norway and with approximately 1200 employees, generated sales of NOK 3.4 billion and had an order intake of NOK 6.1 billion in 2013. The operating margin is significantly above the Alfa Laval average. “Frank Mohn is an excellent company that we have been following closely for several years. It has highly skilled employees, high quality products and a market-leading position within segments offering attractive long-term growth prospects,” says Lars Renström, president and CEO of the Alfa Laval Group. Visit: www.alfalaval.com

Williams Grand Prix Engineering sells Williams Hybrid Power to GKN

illiams Grand Prix Holdings PLC is pleased to announce today the sale of Williams Hybrid Power Limited from Williams’ subsidiary, Williams Grand Prix Engineering Limited, to GKN Land Systems Limited in a multi-million pound transaction. This will see Williams Hybrid Power rebranded as GKN Hybrid Power. GKN has agreed to purchase the whole of the issued share capital of Williams Hybrid Power Limited from Williams Grand Prix Engineering Limited. Under the terms of the transaction, Williams Grand Prix Engineering Limited will also receive

additional consideration based on future sales and licences of the flywheel energy storage technology transferred with Williams Hybrid Power to GKN. Williams Hybrid Power has been majority owned by Williams Grand Prix Engineering Limited since 2010, and is a clean technology SME developing electric flywheel energy storage technology. Speaking about the agreement with GKN Mike O’Driscoll, Group CEO of Williams, said: “The Williams Hybrid Power business has been developed very successfully over the last few years, and is now at the point of broader market commerciali-

Chocolat Frey AG acquires SweetWorks Inc.

Leaf Confections Co., in Toronto, Ontario, Canada that employs around 250 workers. SweetWorks will continue to operate as an independent group of companies. SweetWorks and Chocolat Frey pursue comparable business models with the production of high quality chocolate and chewing gum. The assortment structures of the two companies complement each other

wiss company Chocolat Frey has acquired a majority of the stock of SweetWorks, Inc. retroactively as of 1 January 2014. Headquartered in Buffalo, SweetWorks operates a production plant in Buffalo, New York, with approximately 200 employees, and also owns a subsidiary, Oak

sation. GKN have the resources and expertise to fully realise the enormous potential of the motorsport proven flywheel technology, primarily within a variety of public transport applications.” Visit: www.williamsf1.com

strategically. Mutual synergies can be found along the entire value chain. All of the North American market activities of Chocolat Frey and SweetWorks will be combined under a single management. With the acquisition, Chocolat Frey is strengthening its market presence in the United States and Canada. Visit: www.chocolatfrey.com Industry Europe 19

NEWS

MOVINGON

Relocations and expansions across Europe

Mitsubishi Electric opens Branch in Dubai

itsubishi Electric Europe, MEU, is expanding its business in the Middle East region with a new Branch for its Automation Division in Dubai at Dubai Silicon Oasis. Mitsubishi Electric, already known in the Middle East as a supplier of power generation, transmission and distribution systems, elevators and escalators, transportation systems, visual & information systems and air conditioning, ranks among the top three global players in the Industrial Automation field. The opening of the new Branch office is aimed at expanding business in the Middle East region by supporting partners and clients, especially in target markets such as water treatment, infrastructures, building automation and oil & gas industry. Visit: www.mitsubishielectric.com

Barrett Steel launches Engineering Division into Ireland

part of its commitment to servicing the Irish market Barrett Steel has launched its Engineering Division into Ireland. Barrett Engineering Steel Ireland will supply a wide range of engineering steels and alloys from its warehouse and business unit in Maghaberry, Northern Ireland. David Reece, commercial manager, Barrett Engineering Steel Division, explains: “Barrett recognises the vast potential in Ireland and seeks to build on its successes. We already have a substantial presence in the North and South of Ireland with a portfolio of businesses in the General Steel and Tubular Product Divisions. This brand new business will provide the power generation, petrochemical, engineering, defence, industrial plant & quarrying industries with an extensive range of products and processing facilities. Visit: www.barrettsteel.com

Essilor inaugurates world’s largest ophthalmic optics research campus

ssilor has inaugurated a Centre for Innovation and Technologies (CI&T) Europe in Créteil, France, the world’s largest private campus dedicated to research and innovation in the ophthalmic optics industry. As a pioneer in all the major advances that have revolutionised the field

20 Industry Europe

Hutchinson launches Composite Technical Centre

utchinson’s new innovation centre is dedicated to the development of new composite products, materials and processes and, by the end of 2014, will employ 50 personnel. Located next to the Hutchinson Research Centre, the CTeC benefits from the whole group’s expertise in all areas as acoustics, material characterisation, mechanical vibration and thermal protection, in addition to its premium computing capabilities (supercomputing, reverberation room, anechoic chamber). The creation of the CTeC in Châlette-sur-Loing (France) allows a very high standard of support in the design, development and qualification of systems or composite parts: complex structures, fluid distribution systems, smart panels with their supporting structures. Today, the group has four sites, employing more than 700 personnel (two in France, one in Germany and one in Canada). Visit: www.hutchinson.fr

E.ON deploys new offshore installation support vessel T

he ‘Siem Moxie’, recently launched in Hamburg, is owned by the Norwegian marine operator Siem Offshore. Its specific role for E.ON will be to support work crews to the platforms and foundations in order to prepare for the submarine cable pull-in and terminations. In addition the vessel can be utilised to support the erection and maintenance of the wind turbines, which are typically installed once the installation of submarine cables has been completed. The ‘Siem Moxie’ will be deployed on E.ON’s Amrumbank West offshore wind farm project by Siem Offshore Contractors for the installation of the inner array grid submarine cable system. It will be the vessel’s first area of operation. Visit: www.eon.com

of ophthalmic optics, such as progressive lenses, plastic lenses, anti-reflective and scratch-resistant coatings and organic photochromic lenses, Essilor aims at stepping up the pace of innovation with this new research centre, thus providing all wearers with optimal vision. The goal of this CI&T is to push the ophthalmic lens’ physical limits to better

answer and anticipate consumers’ needs. Consolidating research and engineering teams and expertise at a single site will foster fruitful collaboration, accelerate projects as well as new product and technologies launches, supporting Essilor’s mission to improve lives by improving sight. Visit: www.essilor.com

NEWS

INDUSTRYPEOPLE Sulzer appoints new international sales manager

ne of Europe’s largest independent high voltage coil winding manufacturers, Sulzer, has appointed Adrian Larmour as a new international sales manager, where he will be responsible for developing new highvoltage formed coil business. Recent investment in the Sulzer coil manufacturing facility at the company’s Birmingham Service Centre has provided the opportunity for expansion in-line with growing demand from both Original Equipment Manufacturers (OEM) and Maintenance, Repair & Overhaul (MRO) customers for high-voltage coils. This appointment brings a great deal of experience in both sales and the management of large scale projects especially within the related power generation sector.

Coats chairman appointed chairman of GPG plc

oats’ parent company, GPG plc, has announced that Mike Clasper, currently a non-executive director of GPG plc and chairman of Coats plc, has also been appointed chairman of GPG with immediate effect. In addition, Coats’ non-executive director Ruth Anderson has been appointed as a non-executive director of GPG and chair of GPG’s Audit, Finance and Risk Committee also with immediate effect.

Airbus Group announces key management appointments Christian Cornille

Rafael Tentor

Appointments at Hollanders signify continued growth

ollowing the investment strategy implemented by Hollanders Printing Systems at the start of 2013, the company has made additional appointments designed to leverage its position in the digital textile printing segment. Jacco Aartsen Tuijn joins the Eindhoven-based manufacturer as CEO, with Rowan Bloemberg taking the role of marketing manager. “My role at Hollanders Printing Systems is to elevate and consolidate the company’s position as an important player in the digital textile printing industry, and to boost market penetration of all its products,” states Aartsen Tuijn. “The high quality construction and reliability of the ColorBooster family, and the diversity in range that we’re now able to offer,

is designed to attract both new and existing customers who want to benefit from dealing with a specialist manufacturer that fully understands this growing sector.”

Balfour Beatty Engineering Services (BBES) creates new chief operating officer role

ma Shanker has joined BBES from Network Rail where he has held a number of senior leadership roles, most recently as a project director in the Infrastructure Projects team. Uma will focus on broadening BBES’ portfolio of

irbus Group has made three key management changes at its Airbus Helicopters and Airbus Defence and Space Divisions as well as its Aerolia subsidiary. Former Aerolia CEO Christian Cornille is appointed executive vice-president – Industry of Airbus Helicopters. In this role, he will be in charge of raising the industrial model of Airbus Helicopters to a new standard, which is a key aspect of the Division’s transformation plan. Christian Cornille will be replaced at Aerolia by Cédric Gautier, who was nominated senior vice-president, head of the A400M programme in Airbus in 2011 where he achieved the civil and military certifications and first aircraft deliveries to the customers in 2013. Rafael Tentor, currently head of the Light and Medium aircraft programme as well as the Multi-Role Transport and Tanker programme in Airbus Defence and Space, will take over the A400M programme from Cédric Gautier. projects, the development of its ‘Modular Systems+’ mechanical and electrical modular construction business and improving BBES renowned operational and design capabilities, ensuring it is incorporating industry leading Building Information Modelling techniques on all future schemes and delivering the needs of its diverse customer base. Industry Europe 21

NEWS

TECHNOLOGYSPOTLIGHT GKN brings Formula One technology to public transport

KN is one of the first companies to receive funding from a joint UK government and automotive industry fund for projects to improve fuel efficiency and reduce carbon emissions. GKN Land Systems and its partners will receive a £7.6 million grant as part of a £15.6 million project to apply Formula One technology for use in public transport, initially city buses. The project is expected to deliver a 25% fuel saving for bus operators on inner city routes. Its Gyrodrive system is designed to store the energy generated by a bus as it slows down to stop, and use that energy to help accelerate the bus back up to speed, generating significant fuel savings. Jules Carter, head of Innovation at GKN Land Systems, explains: “Gyrodrive uses a high speed flywheel made of carbon fibre to store the energy generated as the bus slows down, which then generates electricity used by an electric motor to help the diesel engine drive the bus.” Consortium members that GKN is working with include bus manufacturer Alexander Dennis Limited, technology experts at Coventry University and S&S Windings, a leading niche technology SME. Visit: www.gknlandsystems.com

Advances in technology across industry

Dow produces first IMPAXX foam material in Europe

Single point control for emergency vehicles E mergency vehicles are outfitted with a number of complex and intricate systems that allow them to perform essential functions, from emergency lights and sirens through to radio communications and performance of pumping equipment. Recognising the potential for cost and time savings if control of these functions could be streamlined,

22 Industry Europe

Emergency One began its search for an alternative control method. Craig Grant, Mobile Applications manager at Bosch Rexroth, said: “Having reviewed the requirements set out by Emergency one at length, we advised that the RC36-20 controller would be the ideal solution. Designed as a universal central controller for complex mobile working machines, the RC36-20 uses the latest 32-bit TriCore technology to provide enhanced functionality that was only previously available for much larger static applications.” Developed specifically for mobile applications, the controllers can be integrated with software in combination with pumps, motors, valves, sensors, input devices and actuators, making for a complete system solution. Visit: www.boschrexroth.co.uk

ow Building Solutions, a subsidiary of The Dow Chemical Company, has successfully produced its first STYROFOAM™ extruded polystyrene (XPS) foam product containing the new Polymeric Flame Retardant (PolyFR)technology in Europe. The material, branded IMPAXX™, has been made for Michigan USA based Coastal Automotive, a supplier of energy absorbing materials to the automotive, motorsports and packaging industries. IMPAXX™ is the first commercial XPS foam product containing PolyFR in Europe. It is produced at the Dow STYROFOAM™ plants in Lavrion, Greece, and Drusenheim, France. Coastal Automotive will use the new IMPAXX™ material to produce pre-cut and custom molded parts for specific automotive applications. Dow’s IMPAXX™ is designed for the automotive industry, and is used in applications such as overhead systems, doors and pillar trims to help absorb energy during impact. Dow introduced the new PolyFR technology in 2011. It is a stable, high molecular weight, nonPBT (persistent, bioaccumulative, toxic) substance. This more sustainable additive enables XPS and expanded polystyrene (EPS) foams to continue to meet the increasing demands of international sustainability regulations. Visit: www.dowautomotive.com

NEWS

NOTICEBOARD Electrical proportional LASERTEC 65: Additive and subtractive machining in one setup valves improve processes

dditive manufacturing offers new possibilities for high complexity and individuality and the market for additive technologies is growing quickly. DMG MORI’s unique hybrid solution combines milling and laser metal deposition processes for additive manufacturing. The concept study of the LASERTEC 65 AdditiveManufacturing is based on a DMU 65 monoBLOCK® machine and has been developed by SAUER LASERTEC in Pfronten, Germany, in collaboration with DMG MORI USA.    The LASERTEC 65 AdditiveManufacturing features a diode laser mounted in place of a

cutting tool and the material is added by spraying metallic powder into the laser beam, melting the powder in layers into the base material. The process is up to 20 times faster than laser sintering in a powder bed. The LASERTEC 65 AdditiveManufacturing combines highly compact 5-axis milling and laser metal deposition, featuring a 2kW diode laser. All common metal powders can be processed, including steel, nickel and cobalt alloys, brass or titanium. Wear protection layers can also be applied on the base material. Visit: www.pfronten.dmgmori.com

FLEXI-DISC tubular conveyors for fragile materials

lexicon is now offering its FLEXI-DISC line of tubular cable conveyors for fragile materials, designed to integrate with upstream and/ or downstream equipment that sources material from single or multiple locations and delivers it selectively to storage vessels, filling machines or other processing equipment. The FLEXI-DISC conveyor moves material using high-strength polymer discs in 10 and 15 cm diameters that are affixed to a stainless steel or galvanised cable. The discs glide within smooth stainless steel tubing, moving fragile products gently, quietly and dust-free, horizon-

tally, vertically or at any angle, through small holes in walls or ceilings. The system can have single or multiple inlets and outlets and convey over short distances or hundreds of metres. Gentle handling offered by the conveyor makes it suitable for food products that are prone to breakage or degradation, including cereals, coffees, teas, dried fruits, frozen vegetables, grains, nuts, beans, peas, pet foods, seeds, snack foods and spices. Typical non-food applications include bulk chemicals, minerals, chopped fibreglass, microspheres, regrind, pellets, tobacco and other friable materials. Visit: www.flexicon.dk

or the first time, the German manufacturer WITT is supplying a retrofit module for dome-loaded pressure regulators (dome pressure reducers), thus allowing the operating pressure to be controlled remotely. The advantage: Even complex production processes can be monitored optimally. Using programmable logic controllers (PLC), the electrical proportional valve is controlled via either the electrical current (Ampere) or the voltage (Volt). Because pressure transmitters record and monitor the back pressure, setpoint deviations can be detected and automatically compensated for by the system. With a large setting range, operating pressures can be selected from 0.5 to 30 bar (7.25 to 435 psi). At present, it is the norm to set the operating pressure mechanically by hand – a procedure that has tended to be complicated and inaccurate in comparison to the electrical variant. Visit: www.wittgas.com

VOS develops ‘walk-to-work’ vessel concept

roon Offshore Services (VOS) BV Den Helder has completed a first, new ‘walk-to-work’ vessel concept design. The new design of vessel is aimed at providing a solution for the expected increase in client demand for offshore peopletransfer solutions (‘walk-to-work’) in the oil & gas and renewable energy markets.    The vessel will offer comfortable, hotel-type accommodation and work space for up to 60 special personnel, a dedicated mezzanine deck incorporating a walk-to-work system, DP-2 functionality and ample deck space. In addition, the vessel can be optionally equipped with under-deck (20-ft container) storage areas, crane functionality, including a motion-controlled crane, and with work boats supported by heave-compensated davits.

In recent years Vroon has offered several ‘walkto-work’ solutions and the experience gained has been invaluable in the development of this new vessel concept. The company is currently in discussion with prospective clients to jointly review the vessel design and make adaptations for specific needs. This new generation of vessels is based on a KCM design, under construction for Vroon

Offshore Services. Depending on client requirements, Vroon’s ‘walk-to-work’ vessels will be operational from 2016 onwards. Visit: www.vroonoffshore.com

Industry Europe 23

EURO-REPORT

FOCUS ON...

Germany Allan Hall reports from Berlin on a property opportunity that no-one wants.

uergen Naumann is the gatekeeper to the lost world of Wuensdorf...a piece of history that illustrates how one Germany remains two 20 years after the last Soviet soldier departed. Here, just 25 miles from the centre of Berlin, caretaker Juergen walks daily with the ghosts from three lost empires, a banished emperor and one vanquished dictator. Wuensdorf was once the biggest military base for the forces of the Soviet Union outside of Russia itself during the Cold War; a hermetically sealed world where close to 50,000 soldiers and support staff worked to keep the red flag flying in a country it vanquished in WW2. The clock on the belltower, built in the reign of Kaiser Wilhelm II, stands forever stuck at 11.16am, the time the Red Army pulled out of Wuensdorf for good on a hot August day in 1994. Now everything is silent, shared only with the flapping of the wings of birds that fly in through broken windows and the rustling pages of abandoned Pravda and Izvestia newspapers lying here and there. Built as a military complex for the Kaiser, it was later used as a training ground for Third Reich officers. Following the crushing of Hitler in 1945 the Soviets took up residency and Wuensdorf became a town within a town, a Soviet state within the satellite nation of East Germany. The Russian residents were supported by 10,000 Soviet and East German support staff. It was the HQ for a system poised to unleash tanks, rockets, men – and possibly even nuclear weapons – on the west if the Cold War ever turned hot. And now it is for sale. Acre after acre stretching into mile after mile, Wuensdorf is up for grabs – but no-one is buying. Would-be investors are invited to make their own bids and, while the price is not discussed, it is understood that the authority charged with selling it would not entertain 24 Industry Europe

anything under four million euros with the guarantee to spend millions more renovating the listed buildings. It would undoubtedly make a fine hotel and golf course or a leisure centre, OAP home or college. But it is in former East Germany, a region that has made great strides since reunification, but which remains the poor neighbour of the richer west. “Had these been buildings in the west, they would have been developed 20 years ago, no question,” said Frankfurt based property analyst Dieter Kowalski. “As it is, the Wuensdorf experience is typical of many potentially fantastic property developments in the old east that have never been realised.”

It (Wuensdorf) was the HQ for a system poised to unleash tanks, rockets, men – and possibly even nuclear weapons – on the west if the Cold War ever turned hot. And now it is for sale. Under Lenin’s eye For now Juergen, who came here in its Soviet heyday to compete against Russian soldiers in volleyball and pistol shooting competitions, is a watchman who shares his lonely rounds with just one solitary figure. His name is Vladimir Illyich Ulyanov, better known as Lenin. He has been toppled from his plinths in cities large and small since the Iron Curtain fell along with the Soviet Union,

but he remains master of the ghost town of Wuensdorf with the only remaining statue of its kind in western Europe. “It’s such a shame that this place was never used after the change,” said Juergen, a veteran of 19 years with the Peoples’ Army of the German Democratic Republic. “When they packed up and went home you could have eaten your food off the floors here. They had 50,000 men tied up here and they had to have something to keep them busy. “So they cleaned and they cleaned and then they cleaned some more. The joke around here was that the leaves of the trees were polished at Wuensdorf. So much could have been done with what was left behind. Then authorities offered to let schoolchildren use the Olympic-standard swimming pool, but they didn’t want to. The sports field was offered to another community who said no. “And so it was left to rot. Buildings that were built in the time of the Kaiser are still structurally sound. They can still be renovated. But until there is more infrastructure around here, what will they do with them?” What the Russians didn’t have at Wuensdorf they imported, and that included culture. In the theatre, where row upon row of seats marked with cyrillic writing wait for audiences which will never come again, the boards were once trod by the Bolshoi Ballet, and by actors who performed for the politburo in the Kremlin. The buildings go on forever, most of them in the mustard-coloured hue that they were first painted with when the Uhlans and the Pioneers of Imperial Germany, who would fight and die on the western front in WW1, first strutted about on their pristine floors. A spokesperson for the organisation charged with selling the buildings confirmed that a buyer still has to be found. She added: “We have had interested parties who put in bids but they came to nothing. n They are still for sale.”

EURO-REPORT

FOCUS ON...

France Ian Sparks reports from Paris on some problems on the railways.

rance’s state-run SNCF railways have landed themselves an unexpected €90 million bill after ordering 330 new trains that are 25mm too wide for station platforms. The SNCF is now frantically sending in workmen to widen the platforms at 1300 stations across France before the new rolling stock arrives at the end of 2015. The blunder happened after track operator RFF gave the wrong dimensions for its platforms to engineering company Alstom. The RFF’s measurements for the oversized trains related to platforms built less than 30 years ago, but most of France’s regional platforms are much older and too narrow for the new trains. France’s transport minister Frederic Culliver called the blunder ‘mind-boggling and tragically comical’, and Jean-Claude Delarue of the rail user group SOS-Usagers said: “This is hugely embarrassing and it’s not the first time they have made mistakes with platforms. It shows these bureaucrats are not in touch with the real situation. It’s outrageous how much tax-payers’ money they have wasted.” RFF chief Christophe Piednoel has confessed to the gaffe, telling listeners on France Info radio: “We discovered the problem a bit late, we recognise that and we accept responsibility on that score. It’s a bit like buying a Ferrari that you want to fit into your garage, but then realising your garage isn’t quite Ferrari-sized.” The Alstom industrial group is also at the centre of the latest French row over protectionism, after President Francois Hollande rejected a takeover by US giant General Electric on grounds of ‘national security’. Mr Hollande said GE’s €12.4 billion offer for the French manufacturer of power turbines and TGV highspeed trains was ‘unacceptable’ even though it was approved by the company’s board. Alstom is one of France’s largest private sector employers and is seen as central to the country, maintaining its position among the world’s major manufacturing powers. Being

taken over by a foreign company would be a massive blow to Gallic pride. The attempted grab by GE also comes amid a string of high profile company closures and record ten per cent unemployment – a picture that prompted the UK’s Economist magazine to brand the country as the ‘sick man of Europe’. But President Hollande is determined not to let Alstom be run from America, telling the French media in May: “The role of the state is to make sure the national interest is upheld. We have sufficient means of pressure to ensure that the outcome is good for Alstom, good for French industry, and good for the diversity of energy.” His economy minister Arnaud Montebourg also told GE chief executive Jeff Immelt that Alstom is a ‘strategic priority’ and insisted France must preserve ‘technological sovereignty’ over its nuclear industry. He added: “The main issue is that Alstom is trying to sell 75 per cent of a national jewel behind the backs of the employees, of the government, of most of the board and of the senior executives. The bid from General Electric raises the simple problem that the main part of Alstom, 75 per cent of the businesses, 65,000 employees in the world, is going to be run from Connecticut.” France has the legal power to demand guarantees that foreign investors do not erode the nation’s industrial core, but blocking the purchase by GE may be in breach of European Union competition law, which only allows governments to halt takeovers if public security or the free media is threatened – and neither are at stake in this case. Mr Hollande hinted that he preferred a rival €11 billion bid from Germany’s Siemens, adding: “There is another offer and we’ll see if it’s better.”

Netflix arrives Unlike GE, the US TV and film streaming website Netflix has overcome a raft of

French protectionist hurdles and is set to launch in France later this year. The company said its French launch would come ‘in late 2014’ as part of its push into the European market, where it currently only operates in Britain, Scandinavia and the Netherlands. A Netflix spokesman said: “Upon launch, broadband users in France can subscribe to Netflix and instantly watch a curated selection of Hollywood, local and global TV series and movies, whenever and wherever they like on TVs, tablets, phones, game consoles and computers.” Precise details on launch dates and pricing have yet to be announced, but French daily Le Figaro reported that Netflix would arrive in France in mid-September with a monthly subscription price of less than 10 euros – a cost similar region to Netflix’s other European services. The decision to go ahead with a French launch follows months of contentious negotiations between Netflix executives and the French government, which has put pressure on the US company to meet a number of rules designed to protect the French TV and film industry from foreign competition – the so-called ‘Cultural Exception’ – by barring the Internet streaming of films until three years after their cinema release. Streaming services based in France with annual earnings of more than 10 million euros are also required to hand over 15 per cent of their revenues to the European film industry and 12 percent to French film-makers. Netflix will also face competition from already established video-on-demand companies in France, such as Canal Play Infinity, offered by Vivendi’s Canal+. Netflix launched in 2007 and is now the world’s leading Internet television network, streaming more than a billion hours of digital films and television shows to online viewers n each month. Industry Europe 25

BUILDING HOMES, Tony Pidgley, Chairman

Rob Perrins, MD

Whether it is building one-off executive homes, luxury riverside apartments or thousands of houses in urban regeneration schemes, The Berkeley Group is focused on creating fully sustainable environments and great places to live. Peter Mercer talks to Chairman Tony Pidgley and MD Rob Perrins. 24 Industry Europe

Main image: Chelsea Bridge Wharf Inset: Chelsea Bridge Wharf prior to development

MAKING PLACES T

he Berkeley Group builds homes. In fact, over the last ten years, it has delivered more than 48,000 new homes, mostly in London and the South East of England. But Berkeley also builds neighbourhoods; it specialises in working with public and private partners to create successful and sustainable communities. That is why in the last ten years it has also cre-

ated 436 acres of public open space, more than 700,000 ft2 of community facilities and 2.8 million ft2 of commercial space. First established in 1976 as Berkeley Homes in Weybridge, Surrey, the Group has become, in less than four decades, one of the most successful property developers in the UK, with a current market capitalisation of some £2 billion. In the early days it

focused on one-off, high-quality executive homes, mostly sold off-plan, that offered buyers individuality and a high degree of customisation. Today Berkeley builds for everyone; its developments range from twenty or so high quality homes near market towns to luxury London riverside apartments and complex, mixed-use urban regeneration schemes that can comprise over four Industry Europe 25

thousand homes as well as schools, community centres, student accommodation and homes for senior citizens – even railway stations. In its first years Berkeley would build maybe three or four houses a year; today its biggest developments will take more than 20 years to complete. Yet while the scale of its operations has changed dramatically, Berkeley’s core values and its operating principles remain essentially the same. It is focused on integrity, attention to detail, individuality, continuing customer care and the creation not just of desirable homes but of vibrant and successful communities. “We have always had very clear aims and principles and while customer demands, the market and our business structures have become much more sophisticated, our guiding ethos remains very much the same,” says Tony Pidgley, founder of Berkeley Homes and now Chairman of the Group. “We are focused on delivering the finest, value-for-money products and to do this we employ the best people, trust in them

Kidbrooke development

26 Industry Europe

and give them responsibility and autonomy. Adding value is the essence of our operations; we typically buy land without planning permission and take responsibility for every phase of every development. “We have always sought to give every unit we build character and individuality. Now we are involved in so many large scale projects we need to combine that with creating communities to which people can feel they belong, places where they can feel safe, where children can play and where schools, shops and community facilities are on hand. We don’t just build a project and then walk away – we can be on a site for as long as 25 years, developing it, managing it and making sure it remains a great place to live. I’d say that what we do now is not so much home building as place making. Delivering great homes in amazing places is what Berkeley is all about.” Berkeley Group Managing Director Rob Perrins develops this theme by explaining that the key to providing desirable and suc-

cessful homes is what it has always been – making sure that people’s needs are exactly met – but that now Berkeley builds not just for up-market homebuyers but for everyone, the challenge is much more complex. “You have to establish exactly how people live inside their homes, what spaces they inhabit and in what ways,” he says. “We have always had, for example, a minimum bedroom size but now we have to take into account the ways in which many different kinds of people – with different family sizes, different lifestyles and so on – occupy their internal spaces. Making sure they have enough storage space, optimising the width of corridors – it sounds quite simple but in fact it often demands complex engineering solutions.”

Autonomous businesses At a quite early stage Tony Pidgley took the decision to develop his company through a devolved business structure of subsidiaries operating across Kent, Hampshire, North London and Sussex. Each of these divisions

Kidbrooke development Industry Europe 27

Royal Arsenal Riverside development in Woolwich

28 Industry Europe

was given a high degree of autonomy, with its own management team that was responsible for everything from finding the sites, buying the land, building the houses and selling them. The aim was to ensure that the entrepreneurial spirit of the original business was not lost as the company grew. This devolved structure continues to be at the heart of Berkeley’s business strategy; today a total of 22 autonomous operating companies give the group the breadth of expertise and the geographical reach to enable it to undertake any type of development. “At Berkeley we have always been determined to avoid becoming a corporate monolith,” explains Tony Pidgley. “Of course the Group takes care of treasury functions, accounting, tax and so on but beyond that it acts essentially as a banker to the divisions, agreeing investment budgets and strategic plans and then letting the divisional management teams get on with it. We don’t even have a central HR function – the divisions manage their own people. It’s all about encouraging self-motivation, responsibility, the fostering of different cultures and, indeed, competition between divisions. We believe it keeps everyone close to the customer and focused on delivery; it also gives everyone greater job satisfaction.” In addition to the autonomous operating companies the Berkeley Group is made up of distinct divisions that all have strong

brand identities. Berkeley itself carries forward the original business of small developments of executive homes but today also undertakes medium to large scale developments in towns, cities and the countryside that include mixed use schemes, riverside apartments, refurbished historic buildings and urban loft spaces. The St James division was originally a joint venture between the Berkeley Group and Thames Water. Today it handles projects that include private residential development, commercial property, and recreational and community facilities and has a reputation for creative solutions in sustainable mixed-use developments. St George specialises in mixed use sustainable regeneration in London. Its schemes have dramatically transformed large areas of brownfield land, reviving the city landscape and establishing thriving new communities. St Edward is a joint venture between Berkeley and the Prudential Assurance Company that specialises in high-quality residential developments, while Berkeley First is an award-winning developer of design-led contemporary homes that feature innovative architecture and intelligent space planning.

Urban regeneration It was during the early 1990s that Berkeley began to apply its expertise to the development of complex brownfield sites in towns

and cities throughout the country. The Group quickly gained a reputation for its innovative approach to urban regeneration and for its focus on mixed-use developments and the creation of sustainable communities. Today the Berkeley Group is a leader in the field of urban regeneration; its target is to build over 95 per cent of its developments on brownfield land. Its management teams have become experts in delivering attractive and sustainable communities while also extracting high value from the land it develops. “Brownfield development takes a lot of time and a lot of capital and you need experience to make it work successfully and profitably,” explains Rob Perrins. “Typically you will spend one to two years to get through the planning phase, another year to deal with the decontamination issues; then you have to construct the underground car park – an essential element of every large urban project – and then actually build the units.” Berkeley’s Chelsea Bridge Wharf mixed use development on the south bank of the Thames next to Chelsea Bridge is an impressive example of the scale and complexity of the Group’s brownfield regeneration projects. The site was originally warehousing but had been used as a car park for 30 years before Berkeley bought it in 2000 with an initial investment of £54 million. It took a total of nearly £252 million to complete the regeneration and today Chelsea Bridge Wharf Industry Europe 29

Woodberry Down Housing Estate

30 Industry Europe

comprises 1,128 homes (330 of which are affordable housing), 186,000 ft2 of commercial space, including a four-star hotel and spa, offices, retail and leisure facilities as well as 2.6 acres of public space. Further down-river, Berkeley’s Royal Arsenal Riverside development in Woolwich is still in progress. The site was acquired by the Group in 2001 but the scale of the project – on one of London’s largest brownfield regeneration sites – is such that it is estimated that it will take up to 30 years to complete. The site, which was bought by Berkeley for £43 million, was formerly used for the manufacture of military equipment by the Ministry of Defence. The Group expects to invest a total of £1 billion in this 76 acre project. When complete it will include 4,960 homes, of which nearly 2000 have already been delivered (including 610 affordable homes). Twenty one listed buildings have also been already refurbished. Royal Arsenal Riverside also features 3.5 acres of public space and 300,000 ft2 of commercial space, including a gym, hotel, shops, a museum, a pub and cafes. The development includes a district heating network supplied by a lowcarbon combined heat and power plant. It also includes a new railway station. Berkeley has invested £100 million in the development of a London Crossrail station at the site which will offer direct links to the West End in just 18 minutes. The Group has also helped to provide an on-site pier which now offers regular Thames Clipper river taxi services to both Canary Wharf and central London.

Estate transformation A very different challenge, though on a similar scale, is being met by Berkeley in its huge project to completely rebuild and transform Woodberry Down, a North London housing estate. Before the project began parts of the estate were in fact so distressed that they were used as sets for the Polish settings in Steven Spielberg’s film Schindler’s List. Now the site in Hackney is undergoing an unprecedented 25 year regeneration programme that includes the replacement of 2,000 existing houses with 5,000 new ones and the total transformation of the site with new shops, a school, a community centre, crèches, gyms and public spaces. Berkeley is employing pioneering concepts in sustainability, environmentallyfriendly housing, integrated community facilities and energy efficiency to transform what was one of London’s most deprived Industry Europe 31

areas into an exciting new mixed-community neighbourhood that will offer economic opportunity and a sustainable community as well as high quality new homes. Berkeley is to invest total of £1 billion in this project, which will be one of the largest developments of its kind in Europe. Fundamental to the success of the project is the active involvement of local people in the decision-making process. An influential residents’ organisation and a local social enterprise, the Manor House Development Trust, have both played a major role so far. Berkeley also keeps closely in touch with all the residents, holding weekly meetings onsite and producing a regular newsletter. The result, as a new report reveals, is that 90 per cent of residents say that they are satisfied with their lives in the new surroundings. Tony Pidgley says, “This is a real opportunity to create an exemplar regeneration scheme on a large scale, providing lasting benefits to new and existing communities in Hackney. As such, it is in perfect harmony with Berkeley’s commitment to promote the social and economic renaissance of urban areas. In our desire to deliver more homes we have to focus on creating places where people can thrive. In the past, housing booms have often created dreary places. This time, it must be different. What we are doing at Woodberry Down provides a blueprint for regeneration and for all the new development Britain needs to beat the housing crisis.” n Visit: www.berkeleygroup.co.uk

32 Industry Europe

Woodberry Down Housing Estate

THE CLEAN WINNER High-quality bathroom products supplier Gustavsberg is proud of its ability to marry the best of its long heritage with a commitment to fresh Nordic design. Emma-Jane Batey spoke with the marketing manager Katharina Klotz, to learn more about how the company is bringing its ‘modern classic’ style to customers across Europe.

ustavsberg has certainly earned its reputation for creating high-quality, affordable and accessible bathrooms. Founded in Gustavsberg, Sweden, in 1825, the company has a solid history of producing bathrooms for customers that value both functionality and beauty. A wholly owned subsidiary of the Villeroy & Boch AG Group, Gustavsberg is one of Sweden’s leading brands in the bathroom sector. With its HQ located just 20km outside Stockholm, the company has two produc-

tion facilities, both in Sweden, manufacturing products for customers across Scandinavia and, increasingly, further afield. Offering a combination of traditional quality with modern technology and contemporary design, the Gustavsberg promise is very much in tune with its reputation as a ‘safe choice’.

Brand awareness The marketing manager, Katharina Klotz, spoke to Industry Europe about the Gustavsberg brand and its strengths. She said, “Our

brand awareness is our key strength; we have earned our reputation for excellence over almost two centuries! People across Scandinavia are well-aware of Gustavsberg and what we stand for – attractive, functional bathrooms that make everyday life that bit more pleasing. Gustavsberg has been at Sweden’s side for so many years that we are part of the community. After all, we’ve been making Sweden’s toilets since they were first introduced!” The core values of Gustavsberg rest on the three points of Scandinavian design,

functionality and sustainability, and the company knows that to continue its success it must also continue to harness its strengths. Ms Klotz continued, “While we are certainly innovative, we also know what we do well and we work hard to make sure that we don’t change for change’s sake. That’s the real beauty of Gustavsberg.” Offering products for the entire bathroom, Gustavsberg’s portfolio includes everything needed to create bathrooms large or small, classic or modern, colourful or understated – all in the stylish Nordic design that has long been popular across Scandinavia and has become increasingly popular worldwide. The portfolio is suited to all types of bathrooms, from private homes to flats to multi-family buildings and large-scale public buildings. Ms Klotz explained how the Gustavsberg portfolio is the ‘safe choice’ for a broad range of customers. She said, “Even though we keep

our designs fresh and offer new colours and shapes, we know that buying a new bathroom is not something people want to do too often. Residential customers might only want to change their bathroom every 10 or 15 years, and for our project business, where customers are working on commercial renovation for rental properties, that might be only every 25 years. And the bathroom needs to look good and work beautifully all that time. So we have clever materials that don’t let white porcelain turn yellow, for example, and smart technology that means the flush works just as well in its 15th year as it does in its first. We have fun with our products but they’re not throwaway.”

Safe and stylish Even though Gustavsberg is known as a ‘safe choice’ for customers, that does not mean it is the boring choice. With the Gustavsberg reputation founded on its ability to

deliver high quality, Nordic design-focused bathrooms at an accessible price, the company is pleased to reliably provide a product and service that customers can trust. Primarily active across the Nordic and Baltic countries, Gustavsberg is the biggest name in bathrooms in Sweden and a major player in Finland and Norway. Offering two brands – Gustavsberg as the ‘safe choice’ for quality Nordic design, and Villeroy & Boch as a premium brand from its parent company – it is able to supply and deliver products across Europe. Ms Klotz added, “We work with classic outlets for bathroom products, quality DIY chains and we work directly with carefully chosen wholesalers too. We have strong relationships with the specifiers of project business too and are keen to speak with people who value the importance of good bathroom design for their projects.”

Industry Europe 35

Sustainability has long been a key issue for Gustavsberg and its latest product developments reflect this. The new hygienic flush toilet is a new generation product that is set to boost the company’s profile across Europe. With no upper rim, this optimised toilet is easy to clean and very hygienic as there are ‘no little corners for bacteria to hide’. Ms Klotz added, “This is the latest invention in toilets. The water flushes right up to the bowl. It looks great too.”

Another recent launch from Gustavsberg is its water-saving taps. Already popular worldwide – customers in water-restricted Australia are particularly pleased with the water economy – these taps have passed the strict Swedish legislation for A-Class wash basin taps and are suited to bathroom and kitchen applications. Gustavsberg is growing across the world, with Ms Klotz noting it has ‘big hopes for

Russia’. She concluded, ‘We will continue to grow in our existing markets as well as expanding into new markets. There is still huge potential for growth in our local Stockholm market as it is enjoying a surge of property development at the moment. We also see great opportunities in various European export markets where property development is partnered with a focus on n sustainability and good design.”

WOOD – THE SUSTAINABLE CHOICE Metsä Wood uses the finest wood from the northern forests to supply environmentally friendly wood-based products for construction, industrial customers and distributor partners across Europe. Peter Mercer reports.

etsä Wood is a major wood products supplier in Europe. It specialises in serving the needs of the building and construction industry with products and systems for roofs, walls, floors, frames and facades as well as producing a wide range of products for its distribution customers, including interior cladding and flooring and garden decking. It also supplies rough sawn timber, Kerto LVL and plywood to industrial customers including manufacturers of windows and doors,

cladding and moulding, furniture and flooring and garden structures as well as plywood for construction and a wide variety of demanding transport applications in trucks, trains, buses, delivery vans and cargo trailers. All of Metsä Wood’s core products use high-quality northern wood as a raw material. Thanks to the slow growth of trees in the northern forests, the company’s premium products are exceptionally durable, making them ideal for a wide range of highly demand-

ing applications and end-uses. For the home owner Metsä Wood’s products also have the advantage of presenting a very attractive appearance. Environmentally aware customers also appreciate that the timber raw material absorbs carbon dioxide as the trees grow in sustainably managed forests and this remains in the wood products for their entire lifetime. Metsä Wood reaches its customers through a comprehensive service network in more than 20 countries. In 2013 its sales were €897m and it employed around 2500 people. The company is a core business of Metsä Group, a Finnish forest industry group, whose products include tissue and cooking papers, consumer packaging paperboard, pulp wood products as well as wood supply and forest services. The Group’s total sales in 2013 were €4.9bn and it employs approximately 11,000 people. Metsä Group’s parent company is owned by 123,000 Finnish forest owners, and good cooperation with them guarantees the supply of certified wood raw material for production.

Pine and spruce products Metsä Wood’s core products include Nordic Premium Timber, plywood and Kerto LVL. High quality pine and spruce timber is used in all areas of construction as well by the manufacturers of furniture, windows and packaging

materials. Metsä Wood’s plywoods are also made from uniform quality spruce or birch; their production draws on more than a century of Finnish plywood manufacturing tradition brought up-to-date by intensive R&D. The strength, durability and easy handling of the company’s plywood panels make them ideal for a wide variety of demanding applications. Kerto is produced from 3mm rotary-peeled spruce veneers glued together to form a homogenous bonded structure. It is produced in three different types that offer technical performances specifically suited to joists, lintels, roof and flooring panels and stud in both load-bearing and non-load bearing structures. Thermo Wood is thermally modified wood; its excellent durability, dimensional stability and insulating qualities as well as its long-lasting ‘new’ appearance make it ideal for both outdoor uses and interior decoration.

Production assets Metsä Wood operates through 12 production plants and 16 upgrading and distribution units. “We have three major pine sawmills in Finland and two spruce sawmills. We are also managing the SVIR sawmill in Russia, and have a smaller sawmill in Estonia,” says Henrik Söderström, Metsä Wood SVP Timber and Upgrades. “Our Kerto production

plants are based in Lohja and Punkaharju in Finland and together they have an output capacity of some 230,000 cubic metres. We also have two plywood mills in Finland. “The sawmills produce rough sawn timber which then goes to our upgrading units for machining, finishing, impregnating, painting or other upgrading processes. These operations are located close to our main markets for finished products. Such units we have for example in the UK. Europe is and will remain our main market for upgraded timber products as it is for rough sawn timber but the latter is a global business and we are seeing significant growth in our sales in the Far East in particular.” Last year Metsä Wood completed a €30m investment in its sawmill at Vilppula, Finland. The project at the mill, which now has an annual capacity of 450,000m3 a year, included a new infeed, saw line and green sorting lines. “This is a strategically important investment for Metsä Group because it allows us to maximise the processing value of wood raw material,” said Kari Jordan, president and CEO of Metsä Group. “The new flexible saw line replaces two old ones, substantially increasing the sawmill’s production efficiency.” “The investment has made the Vilppula sawmill the most modern in the world,” adds

Henrik Söderström. “The speed of the old saw lines was 60 metres per minute whereas the new single line can run at a maximum of 180 metres a minute. Also, production flexibility and efficiency have been hugely increased, giving us a greater ability to respond to varying customer needs.”

Product development As a European leader in engineered wood products, investing in research and continuous product development is vital for Metsä Wood’s ability to meet the increasing requirements of its customers. The company focuses its R&D on two sites; the development centre for engineered wood products is located at the Kerto LVL mill in Lohja and development work on special plywood is carried out at the plywood mill in Suolahti. New products from Metsä Wood include Spruce MouldGuard, a surface impregnated softwood plywood that significantly reduces the risk of mould growth in comparison to unprotected plywood panels. The panels are

strong, light, rigid and easy to install using conventional woodworking tools and fasteners. FireResist is a new surface impregnated softwood plywood panel with enhanced fire resistant properties. It can be used in interior applications such as wall and ceiling structures for improved fire safety. Another key new engineered product is Metsä Wood Spruce WeatherGuard, a spruce plywood panel with a hydrophobic surface that rejects rainwater while still allowing the panel to breathe. It is an all-purpose construction panel that can be used in floor, wall and roof structures as well as agricultural structures, pedestrian bridges and renovating homes and buildings.

Sustainable products, sustainable processes A recent example of Metsä Wood’s ability to supply wood construction products for large scale projects is its 2013 contract to provide wooden structures for the new DB Schenker terminal being built in Vantaa, Finland. The

contract covers the delivery and installation of the frame, roof and exterior walls of a 12,000m2 extension to the transport and logistics company’s terminal. “We chose Metsä Wood because the costeffectiveness, schedule and environmental values of the delivery met our needs,” said Marco Furu, real estate director at DB Schenker. “The environmental goals of our parent company, Deutsche Bahn Group, form the guidelines for our actions. Sustainably built and maintained real estate is one aspect of reaching these goals. Metsä Wood’s wooden structures’ extremely small carbon footprint in comparison with other materials on the market was an important criterion for us.” But if the company’s products are inherently environmentally-friendly so are its investment decisions. In January 2013 it inaugurated a new bioenergy heating plant at the Kerto mill in Lohja that now supplies around 160,000 MWh of heat to the Lohja district heating network as well as process steam to the Kerto mill itself. “The new heating plant is pivotal in improving

the competitiveness of the Kerto mill because most of the previous fossil fuel-based heat production is now replaced by bioenergy heat,” explains Henrik Söderström, “and, of course, the fuel it uses comes from the mill’s own by-products, supplemented by forest chips and other wood-based fuels. We calculate that our bioenergy heating plant will decrease the annual carbon emissions of the Kerto mill and the Lohja area by about 40,000 tonnes.” Europe is likely to remain Metsä Wood’s principal market in the foreseeable future. “Our service network covers most European countries and thus we are well equipped for reliably serving our major customer segments of construction, industrial and distribution partners across Europe,” says Mr Söderström. “Our strategy is based on industrial efficiency. We have three focus areas to drive the industrial efficiency: partnerships, simplicity in operations and operational excellence. In terms of customer promise these mean commitment, reliability and quality – we believe these are all highly important attributes of an industrial supplier. In practice, these mean security of supply, lower inventories owing to high delivery reliability and qualities tailored to meet our partners’ needs. The demands of operational excellence dictate that we continuously seek to improve our environmental and safety performance throughout our operation. We have a proven track record for improving material efficiency and safety performance, particularly over the past five years. Combined with our primary raw material – renewable northern wood from sustainably managed forests – we believe these deliver an additional value to our customers.” n

KOTA™ - THE NEXT GENERATION IN MDF MOULDINGS KOTA™, produced by Balcas, is the latest innovation in MDF mouldings. It comes fully finished so requires no painting. Unique to KOTA™ is the application of advanced Eastman Cerfis™ Technology, which gives the product its smooth, ready-painted finish. This colourfast coating technology allows KOTA™ mouldings to be as tough as they are elegant. KOTA™ mouldings are complemented by a Fix, Fill and Finish system of adhesive, caulk and wax crayon to produce the first simple 3-step system for installing pre-finished mouldings and door linings. KOTA™ is available from major B&Q stores, Arnold Laver Timberworld, Champion Timber branches and selected merchant outlets in the UK and Ireland.

Public Institution of Social Security New HQ, Kuwait

A CUT ABOVE THE REST Savema SpA specialises in the processing of marble, granite and other natural stones for large-scale architectural projects and as semi-finished products (slabs). Mr Bosetti and Mr Panesi, commercial directors for finished and semi-finished products respectively, explain to Barbara Rossi why their company is a cut above the rest.

et up in 1975, Savema SpA is based in Pietrasanta, near the Tuscan town of Carrara, an area renowned all over the world for its marble. “What really makes us different from our competitors is the mix that we can offer. In fact, while we are very much at the cutting edge in terms of stone processing technologies and equipment – the technology used today to quarry, slab, cut to size, shape and finish the

stone is almost totally computerised - we also feature highly in terms of artisan know-how, handed down from generation to generation,” Mr Bosetti explains. “This is a sector where the human element is still extremely important, especially in terms of knowledge, and our staff members are invaluable in this respect. They are really experts in quarries all over the world with which Savema has set up a network for blocks and slabs procurement, and are dedi-

cated to scouting and selecting the right raw materials for each architectural project, where a mix of materials – originating in different countries – is usually utilised. Currently, either directly or through group companies, we have set up offices for block or slab procurement in Vitoria (Brazil), Bangalore (India) and Xiamen (China). Despite the fact that there are companies producing marble, granite and stone pieces all over the world, the true centre of this

Savema facility

Columns, VVIP Amiri terminal, details

Royal Library, Copenhagen

Columns, VVIP Amiri Terminal, details

Great Court British Museum, London

industry is still here in northern Tuscany, due to the high quality that we can offer and which is only possible thanks to the expert knowledge of our people and the proximity to the Carrara stone district.” Savema’s sister company Magti, which belongs to the same owners who set up Savema, imports blocks and slabs (of marble, granite and stone) which are then commercialised on both the national and the international market. Its activity is independent from that of Savema, although the latter often purchases and processes the materials imported by the former for its projects.

Take a look at our stones Savema operates in two fields: finished products for large construction projects and semifinished products (slabs). In the first category, important projects for which the company has supplied its products are the interiors of the VVIP Amiri terminal in Kuwait; the new

Mr Bosetti and Mr Panesi

headquarters of the Public Institution of Social Security, also in Kuwait; Freedom Tower and the 9-11 Memorial in New York; Miami Performing Arts Center; the Central Bank of Kuwait; the Mormon Temple in Rome; the Great Court in the British Museum and the Royal Library in Copenhagen, Denmark; Convention and Exhibition Center in Hong Kong; Van Gogh Museum in Amsterdam; National Geographic Building in Washington DC. In terms of semi-finished products the company supplies other marble producing companies and distributors all over the world. The company operates from a single site, occupying a very large area (75,000m2), where materials are processed from blocks to finished products. “This is where we also develop new products. We are working a lot on special finishes. In addition to traditional versions, we are also able to offer almost three-dimensional finishes, where the surface finish might be

Columns, VVIP Amiri terminal, details

brushed, flamed or washed with waterjetting,” Mr Bosetti adds. Over the past three years, Savema has invested more than €5 million in its facility for the introduction of innovative technologies, including high productivity cutting lines, equipment for making new finishes and textures, multi-wire gang saws and systems to reduce the environmental impact of industrial stone processing. In 2013, Savema exceeded €35 million in revenue, with an export share of approximately 80 per cent. Sales extend worldwide, with a higher concentration in the Middle East (36 per cent) and North America (25 per cent), areas that represent the most important markets for the supply of largescale projects of high quality and complexity. “Because of our activity and the important role of export we have not really suffered from the recession. Geographically the Middle East is an important market which

VVIP Amiri terminal, interiors, Kuwait

has grown significantly in recent times, followed by the USA, Europe (the UK in particular) and Italy. Monte Carlo is also a very interesting niche market, where currently we have two large projects. Eastern Europe is also interesting and we are trying to develop our commercial presence there. We have also been serving the Far East for several years and have commenced working in Latin America,” Mr Bosetti specifies. With regard to semi-finished products, Mr Panesi explains, “Italy is still a very important market for semi-finished products, followed by the Far East, the Middle East and the USA. We have a uniform presence in all of our markets, with marble generating 70 per cent of our share of turnover and granite the remaining 30 per cent. Granite semi-finished products are mainly sold in Europe, Italy and Africa, while their white marble counterparts are sold in the rest of the world. We have a strong presence in North Africa, and despite some import duty problems, we plan to fur-

9-11 Memorial, New York

ther develop our presence in this continent. We also plan to increase our presence on the US market, while Europe is fairly stable. “Other markets for future development are South America, where we are going to expand in terms of volumes and of a higher quality offer, and Russia. Local high-quality niche products are our strength. In this way we distinguish ourselves from low-cost competition coming from emerging countries. In Italy semi-finished products play a more significant role than their finished counterparts. Italy has always been our main market, while other countries have been more variable according to their political situation. We feel the effect of market changes (either of a positive or negative nature) much more quickly than the finished product department does.” Mr Bosetti outlines the company’s strategy. “Our commercial policy is that of achieving a more widespread presence on our existing markets. We are a company with a 40-year history and are well known

Savema Facility

in the sector. Now we want to increase the services that we offer, integrating the mechanical and chemical characteristics of stones into engineering of the anchoring system, in order to better guarantee and assure the security of the external skin of the building to the client.” The company will grow organically. “Our intent for the future is that of consolidating our organisational structure, transferring the know-how and expertise of our staff to the younger generation. We need to implement continuous professional training for all of our staff, so as to equip them with the special knowledge that we have. We need to consolidate both in terms of market segments and geographical markets, while at the same time working on developing the latter.” “Our suppliers of raw materials, machinery and equipment, including Magti, are real contributors to our success. We couldn’t have achieved what we have achieved without them,” Mr Bosetti concludes. n

ROC School, Sneek, Netherlands

46 Industry Europe

CHANGING FLOORS Tarkett is one of the world’s largest producers of flooring products but its aim today is also to become the leading agent of change in the global flooring industry, creating sustainable and inspiring flooring solutions that will enhance its customers’ quality of life. Peter Mercer meets Tarkett EMEA president, Remco Teulings’ at the company’s Nanterre headquarters.

Industry Europe 47

Wood plant, Hanaskog, Sweden

arkett is a global leader in innovative and sustainable solutions for flooring and sports surfaces. The France headquartered company, which posted record net sales of €2.5bn in 2013, serves customers in more than 100 countries across the world. With some 11,000 employees and 30 production sites in four continents, it sells 1.3 million m2 of flooring every single day for housing, hospitals, schools, hotels, offices, retail stores and sports fields. Its products include flooring in vinyl, wood and laminate, linoleum, carpet and rubber as well as synthetic turf and athletics running tracks. Despite the size of the company today, Tarkett claims that it is still driven by the same deeply rooted entrepreneurial spirit that inspired its founders and it is indeed still in the majority ownership of the Deconinck family, whose involvement goes back to1942, when Bernard Deconinck took over the management of Allibert, the French company that was to merge 30 years later with Sommer, a major French producer of modern floor coverings. The flooring division of Sommer Allibert then merged in 1997 with Tarkett AB, the Swedish company that had been producing high-quality wooden flooring since the 1880s. After ten years as a public company, Tarkett, as it was then called, delisted, and in 2007 the US venture capital company Kravis Kohlberg Roberts (KKR) acquired 50 per cent of the shares with the Deconinck family holding the other 50 per cent. Under the new ownership structure, there were significant changes in the senior management, and experts were brought in to accelerate the development and further rationallise the organisation. Then, in

November 2013, the company was listed on the Euronext Paris stock exchange, with the Deconinck family now holding a controlling share of 50.1 per cent and KKR reducing its holding to 21.5 per cent. Commenting on the Group’s record results in 2013, Tarkett CEO Michel Giannuzzi said, “Thanks to its balanced worldwide presence, diversified flooring products portfolio and efficient industrial base, Tarkett has been able to capture growth in the most dynamic regions of the world. 2013 was also a historic year for Tarkett with its listing on Euronext Paris. We remain confident that the Group can pursue its dynamics of sustainable and profitable growth in the coming years thanks to its commitment to innovation, its focus on operational efficiency and its strategy of selective acquisitions.”

Global expansion Smart acquisitions have certainly been a major part of Tarkett’s global expansion strategy, with more than 12 companies having been successfully integrated into the Group over just the last five years. Today Tarkett has 30 production sites in the world, located in Europe, North America, as well as in the CIS region, Brazil and China. Most of these plants operate relatively autonomously, although they certainly draw on each other’s strengths and share best practices. Tarkett’s global flooring operations are divided into three regions – North America, EMEA and CIS & other countries and in addition, there is a globally managed sports division. “In the EMEA region, we have 10 plants across France, Germany, Sweden, Luxembourg, Italy, Poland and the UK,” explains Remco Teulings, president of Tarkett EMEA.

Major acquisitions over the last decade have included FieldTurf, the specialist in artificial turf for sports and Beynon for tracks; the UK’s Marley Floors; and in North America, Johnsonite, the flooring and accessories specialist, Centiva in high end vinyl tiles and more recently Tandus in commercial carpets. The acquisition of Sintelon based in Serbia opened the Russian market to Tarkett, as well as markets in other CIS countries and in the Balkans. The Group’s most recent announcement of an acquisition, in April 2014, is of Gamrat Flooring, the Polish specialist in high-performance vinyl flooring for professional applications such as healthcare, aged care and education. Gamrat operates a flooring plant at Jaslo, in south-eastern Poland, with some 220 employees, and Tarkett sees this bolton acquisition as significantly strengthening its market position in central Europe as well as improving its manufacturing footprint in this region.

The luxury of wood Tarkett claims that the company offers one of the broadest flooring ranges and has the most diversified geographic exposure. These include heterogeneous and homogeneous vinyl, wood, laminate, rubber, carpet tiles and linoleum, as well as sports surfaces. The original company, Tarkett AB, began producing high quality flooring in 1886 in Ronneby, Sweden and the company can claim to have invented the structure of engineered wooden floors which continues to be the standard across the industry today. “Around 10 per cent of our global sales are in wood and laminate but wood products make up a much larger proportion of our

Industry Europe 49

Atelier – Seasons

European sales, predominately in Scandinavia, central and eastern Europe,” says Remco Teulings. ”We have wood plants in Sweden, Poland, France and Serbia. All of these plants use almost 100 per cent FSC and/or PEFC soft wood. We believe it is vital to maintain component production close to our raw material sources and equally to keep production of the finished product close to our customers. That is why Tarkett imports none of its components from Asia, and continues to produce everything in Europe. This is not only an important element in our sustainability strategy but also ensures the optimisation and cost-effectiveness of our production operations. We have invested significantly in our plants in Serbia and Poland so that they can supply semi-finished products, for example, to the Hanaskog plant in Sweden where wood flooring products can be finished exactly to customer requirements using stateof-the-art equipment.” Current conditions in the wood floor market in Europe are, however, challenging. Lower-end wood products in particular are suffering severe competition from Asian imports and from laminates, and the decline in the market that began in 2007 shows no sign of easing in the short term. “Demand for higher-end wood flooring products, however, is holding up quite well and this is where we are concentrating our production and marketing activities,” explains Mr Teulings. “Having wide and long wooden planks in different species of wood (besides oak), is very much in fashion among luxury retail stores, hotels and restaurants as well as in domestic housing.” Tarkett’s current wood portfolio is focused on the Atelier collection, aimed at upper end markets, and the Classic collection; each of these collections include multiple ranges and designs, from the Atelier solid oak range made in France for the traditional vintage look to the Classic Tango range of Ash White and Ash Ivory that bring a serene touch of white to the natural wood surfaces. The portfolio features both solid wood and engineered wood in different wood types in three-strip, two-strip

and one strip formats and covers the entire market, from entry level to upper price. “Tarkett wood floors are renowned as high quality products with a competitive price and an exceptionally long life,” says Remco Teulings. “They also benefit from our Proteco lacquer which offers the industry’s strongest surface protection against wear and tear, stains and micro scratches; this coating is available in semi-gloss, matt lacquer and hardwax oil. The trend in the market for wood floors is moving more and more to wider and longer planks (one strip) with a rustic or vintage look and in a variety of colours. Our floors are easy to install, with a range of gluefree locking techniques and come with an extensive range of accessories. “All the wood used in Tarkett flooring is sourced from sustainable suppliers. Almost all the softwood we use is FSC or PEFC certified and the ratio of FSC certified hardwood we use is increasing year by year.”

Solutions in vinyl In late 2012, Tarkett launched two new ranges of modular high-end vinyle tiles (LVT – luxury vinyl tiles), iD Inspiration 55-70, mainly for shops and stores, hotels, offices and homes, and iD Selection for residential premises. LVTs are relatively new to the global flooring industry; they have a heavyduty wear layer on the surface and can look very much like natural stone, wood and many other textures. The new Tarkett Inspiration and Selection ranges offer more than 200 different designs between them. The iD Inspiration range alone offers 60 wood effect designs, 42 stone designs and 13 different surface effects – a total of 75,000 potential combinations – to architects, designers, retailers and companies. Both ranges contain around 50 per cent recycled materials and both are 100 per cent recyclable. “The luxury vinyl tile market has enjoyed a massive growth – in just ten years LVT has gone from zero to become one of the largest flooring products globally, especially gaining market share against laminate and ceramics,” explains Remco Teulings. “It is strong,

Style Outlet San Sebastian de los Reyes, Spain Copyright: Nani Guttierrez Industry Europe 53

AKCROS CHEMICALS - Additives for Performance Proud to be a partner of Tarkett

Akcros Chemicals is a leading global brand in the polymer additives industry and is a major supplier of innovative, market leading, low emission additives to Tarkett with manufacturing facilities now established in Europe, US and Asia. Akcros specialises in offering high levels of customer support and has a broad product range which includes products developed specifically for the flooring industry such as: • • • • •

Low emission and high efficiency phenol free PVC Stabilisers Phenol free Phosphites Low emission Viscosity Modifiers Antistatic Agents Epoxy Plasticisers

Akcros has a highly sustainable, global product portfolio containing more than 50% of renewably sourced raw materials and is also: • • • •

Industry leading in technology and technical service Specialists in antimicrobial and antifungal protection of PVC Committed to Health, Safety, Quality and the Environment Accredited to ISO9001, ISO14001 and ISO 18001 management systems

Akcros is committed to the principles of Responsible Care, promotes products that conform to all the latest and pending regulations such as REACH & TSCA for chemicals and EPA/BPR regulations for biocides. For more information about Akcros please refer to our website www.akcros.com or contact us at info.eu@akcros.com

56 Industry Europe

Saint Nazaire Hospital, France

Medical Park, Gebze, Turkey

very durable, waterproof, with good acoustic properties and easy to maintain, and it is a modular product that comes in tiles or planks rather than in the rolls that ordinary vinyl is sold in. The latest generation LVT is even easier to install since the tiles just click together, making it as popular with the DIY homeowner as it is with professional fitters. “As with our wood business, Tarkett produces its commercial LVT locally, in Germany, to ensure the benefits of a short supply chain and to be able to respond quickly to the demands of architects and designers with different combinations of formats, colours and surface effects. In fact, far from looking to reduce material costs by importing from Asia, Tarkett intends to increase its LVT production in Europe also for the residential segment to remain close to and sensitive to the changes in market demand.” Tarkett’s iD Inspiration 70 was chosen for the renovation of the Madrid Shopping Centre of the Spanish clothing chain Outlet Factory; this project was part of the Spanish retailer’s programme to renovate all its centres in Spain and to rebrand itself as The Style Outlets. The designs from Tarkett were selected to help convey a more sophisticated and high-end image to the store. More than 11,000 m2 of LVT tiles were laid in the Madrid project and the shopping centre did not lose a single day’s trading. Tarkett’s iQ range of homogeneous vinyl flooring also offers outstanding durability and ease of maintenance for demanding applications in healthcare, education, offices and public buildings. The range is available in sheets and tiles and uses a phthalate-free plasticiser as well as being easily recyclable. Very few detergents and water are required for cleaning since the product requires only dry buffing to restore its original appearance throughout its lifetime. Tarkett’s iQ Granit homogeneous vinyl was selected for the new Saint Nazaire health complex in France. In 2012 a total of

66,000m2 of Granit flooring was laid in nine different colours to match the colour codes of each department of the hospital and health centre. “With an average life of 60 years, hospitals must be flexible and durable in terms of materials used, and flooring is no exception to this,” said Noel Moriceau, head technician at the hospital. “The quality of Tarkett’s iQ Granit PVC perfectly satisfies our main selection criteria – durability. It’s an extremely tough product that copes with all the wear and tear that flooring here must be able to withstand. And with simple daily floor mopping, iQ Granit discourages the growth of micro-organisms – a vital asset in a hygienic environment.” iQ Granit was also chosen for the flooring of 10,500m2 of patient rooms, hallways and polyclinics at the Medical Park Hospital in Gebze, Turkey. iQ Toro SC was also installed in 1,500m2 of operating rooms. As at the Saint Nazaire facility, hygiene and easy maintenance were key considerations in the choice of flooring, and the wide range of colours of the iQ range also facilitated the colour coding of departments. Tarkett also continues to produce the most traditional of modern floor coverings, linoleum. A great contemporary attraction of this product is that it is made from entirely natural raw materials such as linseed oil, jute and cork flour. Tarkett has used the same original recipe at its Narni site in Italy since 1898, while continually improving the performance of its linoleum products. Its new Linoville xf range offers a total of 112 colours and meets all the requirements of education and healthcare premises and offices. It is a 100 per cent natural product made from recyclable material with a homogenous construction (the colours and patterns go right through the material); it is also naturally fire-resistant and naturally bacteriostatic. In fact, the linoleum Veneto Essenza 100 per cent Linen is the first in the world to be Cradle to Cradle CertifiedCM Gold, in addition to the linoleum range already

60 Industry Europe

Cradle to Cradle CertifiedCM Silver since 2011. The C2C certification is one of the more rigorous and in-depth environmental certifications that exist today evaluating criteria such as content, reuse and environmentally responsible production.

Eco-innovation At the beginning of 2011 Tarkett signed a partnership with the international scientific institute EPEA to deploy the Cradle to Cradle principles although the company had already been engaged since 2009 in an ambitious sustainability strategy aimed at not simply minimising the environmental impact of production and products but also designing products for reuse with a positive impact.

In 2012 Tarkett was awarded the Cradle to Cradle Silver Certificate for its multi-layer parquet flooring ranges; this made it the first wood flooring producer in Europe with Cradle to Cradle certified products. “Tarkett is in fact the first Fench flooring company to promote and adopt the Cradle to Cradle concept in both its approach to new materials and in terms of product certification but sustainability has for long been the key to our innovation strategies,” explains Remco Teulings. “Our most recent eco-innovations include lowering the total VOC (volatile organic compounds) level of our vinyl range to 10 to 100 times below the European standard and developing new vinyl ranges that are based on phthalate-free plasticisers.

“We also take water and energy stewardship in our production processes very seriously. For example, the sawdust that we produce is used to generate energy for our plants or sold to third parties for energy production. Even the ashes are taken back to the forests and spread as fertiliser. Our strategy is to maximise the environmentally responsible character of our production and our products without slowing our growth or reducing our efficiency and profitability, nor compromising performance and aesthetics benefits for our customers. Getting that balance right requires a lot of investment and a lot of ingenious innovation but that’s what Tarkett is doing and will n continue to do.”

Industry Europe 61

GLOBAL PRESENCE, ITALIAN ROOTS

Headquartered in Turin, northern Italy, Bitron Industrie SpA is a privately owned multinational group and leader in the research, development and manufacturing of mechatronic devices and systems for the automotive, household appliances, HVAC and renewable energy sectors. Its focuses are quality, competitiveness, integrity and energy efficiency, writes Barbara Rossi.

62 Industry Europe

itron has a consolidated supply relationship with some of the most important names in the household appliances and automotive sectors and today it is organised into four business divisions: automotive, household appliances, HVAC and renewable energy. Some of the main products manufactured for the household appliances sector are solenoid valves, pressure switches, manual and electronic programme timers, user interfaces, thermostats, temperature and pressure sensors, water softeners, aqua-stop valves, integrated detergent and rinse-aid dispensers, hydraulic groups, micro-switches, push button switches, door interlocks and other components specifically demanded by its customers. For the automotive sector, Bitron is a leading global supplier of mechatronics products for automotive interiors (pedals, switches, sensors,

control panels and displays) and power-train components, as well as for the commercial vehicle, motorcycle and scooter industries. Components and systems for boilers, heat pumps, water heaters and other applications (including hydraulic groups, electronics components and heat exchangers) are produced by the HVAC division. The Endana devices for the optimisation, monitoring and safety of photovoltaic panels and systems are the specialism of the renewable energy division. Bitron employs about 5300 staff worldwide, operating from 13 manufacturing plants and 10 marketing and sales offices. Its most recent turnover exceeds €600 million, with a significant share being reinvested in R&D every year, an area to which the company dedicates about 9 per cent of its workforce. While most research is conducted internally, partnerships are

also in place with some universities for particular projects, such as for renewable energy products.

Milestones The origins of the company go back to almost 60 years ago, specifically 1955, when three brothers – Enrico, Giovanni and Carlo Bianco – set up as manufacturers of household appliance components. Significant growth took place over the years, and the company expanded both in terms of geographical scope and market segments served, also aided by a series of acquisitions. In 1992 there was the decision to create a new corporate identity, and thus all the companies of the group were renamed Bitron. Geographically, the first international milestone was reached in 1968, with the

Industry Europe 63

establishment of the Spanish plant, followed by a Brazilian site in 1985 and the acquisition of a French company in 1989. The following years saw the arrival of Bitron Poland in 1998, Bitron China in 2002 and Bitron Turkey in 2011. An important year was 1975, when the company entered the automotive market and started supplying Fiat; in 1969, with the acquisition of entryphone specialist Bitron Video, the company had already made the first step into electronics. In order to enter new markets in the new millennium the company commenced production of components for the HVAC industry. In 2004 this activity was extended to the production of complete hydraulic systems for boilers and, within a few years, Bitron reached the status of Italian leader in this field. This led to the creation of a business unit dedicated to the HVAC market, called Bitron HVAC systems. Although operating in a truly international dimension, the company is well-rooted in Italy where, as well as its headquarters, it has eight manufacturing plants. Alongside these, there are the international production facilities located in Spain, Poland and Turkey as well as two Chinese factories. As well as in Italy, sales and marketing centres are situated in France, Spain, Germany, the USA, Brazil and China.

Innovative, reliable, sustainable The company employs a vertical production model, thanks to which it has developed expertise in several different advanced manufacturing technologies. Together with its partners, Bitron has developed highly automated, flexible assembly and test processes ensuring product competitiveness and quality.

64 Industry Europe

Always attentive to innovation, and expanding its product range, in recent years the company has also started producing components for the renewable energy market. Sustainability is regarded as being of high importance and is implemented in terms of processes, packaging and energy requirement levels. The company helps its customers to build energy, water, fuel and chemical-saving products which can be easily dismantled and recycled at the end of their lives and is continuously working on the development of increased energy efficiency products. The Bitron manufacturing processes are designed to optimise energy usage and minimise environmental impact, and all the packaging employed can either be reused or recycled. The company’s newest facility is a highly efficient cogeneration plant

ensuring cost-effective environmentally friendly generation of energy and thermal power (by producing 3MW of electrical power and 3MW of thermal power). Innovative products and high technology will continue to be central to future growth. The group has recently opened a new technical centre in Germany, engaged in advanced R&D activities, as well as in technical assistance, for appliance components. The rationale behind this operation is to strengthen Bitron’s leadership in innovation and further to increase its focus on customer support. The choice of location, Amtzell (Baden-Württemberg), has been strategic, as Europe is the excellence centre for the household appliance sector. Here Bitron will develop

new electromechanical components for washing machines and dishwashers, such as detergent dispensers, water softeners, air breaks, drying units and flow meters, as well as refrigerant and water valves for refrigerators and other appliances. This new centre – designing, prototyping and testing components – employs highly skilled engineers with decades of experience in different appliance component fields and will cooperate with the other Bitron competence centres in developing new approaches to components and systems. With regard to the automotive sector, last year Bitron – which already supplies all the major car manufacturers – was awarded core supplier status by PSA n Peugeot Citroën.

Industry Europe 65

Jenoptik lasers for medical applications

BEAM OF BRILLIANCE Integrated optoelectronics group Jenoptik continues to utilise its competitive advantage to provide hightechnology solutions to its customers worldwide. Emma-Jane Batey spoke to Michael Fichtner, head of sales for Jenoptik’s Lasers business unit, to find out more.

Michael Fichtner, head of sales, Jenoptik’s Lasers business unit

66 Industry Europe

enoptik, headquartered in Germany, divides its activities into five divisions: Lasers & Material Processing, Optical Systems, Industrial Metrology, Traffic Solutions and Defence & Civil Systems. With major production sites abroad in the USA, France and Switzerland as well as shareholdings in Singapore, India, China, Korea, Japan and Australia, the group is represented in more than 80 countries worldwide and is listed on the Frankfurt stock exchange and included in the TecDax index. Its customers around the world mainly include companies in the semiconductor equipment manufacturing industry, automotive, medical technology, security and defence technology as well as the aviation industry. Jenoptik has approximately 3430 employees and generated sales of about €600 million in 2013.

Michael Fichtner is the head of sales for the Jenoptik Lasers business unit. He spoke to Industry Europe about how his business unit is integrated into the Lasers & Material Processing division of Jenoptik and into the whole Jenoptik group and how its performance is proving positive. “Within the Lasers & Material Processing division we have two units: Lasers and Laser Processing Systems. The Lasers unit offers the actual lasers and the other offers the related material processing. I’m specifically connected to the Lasers unit although both units work very closely together to deliver solutions to our customers and also to other Jenoptik divisions.” The Laser Processing Systems unit develops and manufactures complete systems that require lasers, such as specialist 3D metal cutting machines for applications like metal tube cutting and other applications that use robots to cut metal,

plastics and glass components with lasers. As this unit is focused on complete solutions, it also provides the software and everything else the customer requires. The majority of clients for this unit are in the automotive sector. The four other divisions of Jenoptik all utilise the optics expertise that the company’s reputation has been built on. The Optical System division is focused on developing and manufacturing precision optics, such as lenses for beam shaping in various applications, making glass that is shaped to fulfil a specific function. The Industrial Metrology division uses optical, tactile and pneumatic techniques to produce measurement systems with industrial applications. The Traffic Solutions division is dedicated to developing and producing traffic enforcement systems, otherwise known as speed cameras, based on laser, radar and sensor technologies, whilst the Defense & Civil Systems division makes lasers for defense applications such as target designation and range finding.

Diode laser manufacturing in Jena

The new femtosecond laser JenLas® femto 10 Industry Europe 67

Metal cutting with JenLas® fiber cw 1000

The Lasers & Material Processing division’s two units work closely together to provide complete laser solutions for its customers. Mr Fichtner is clear that this ‘onestop shop’ approach is a key element in the company’s ongoing success. He said, “We address all levels of the value chain, from passive to active, from systems to subsystems and complete functional systems. By offering everything from chips to complete

68 Industry Europe

systems, customers know that they can come to Jenoptik for any optoelectronic requirements. We also try to make the best use of our own components in our products and systems so that we can keep control of the quality. We know that our components are developed and manufactured to the very highest standards. So, not only does it allow us to keep control of costs, but it also means our guaranteed quality is second to none.”

Competitive advantage This competitive advantage also means that Jenoptik’s Lasers business unit always has internal customers for its laser diodes, making it a strongly performing unit within the company. Mr Fichtner described Jenoptik’s latest femtosecond laser as a ‘hot issue’, with its ability to support micro-medical applications such as tiny hole drilling for catheters or cutting of stents – thanks to

very short, accurate pulses, meaning that the local material is not heated. These systems are based on the disc-laser technology, which provides high optical pulse-to-pulse stability with high reliability for systems that can be used 24/7. The other recent product launch is the next generation of semiconductor laser chips with high power and greater efficiency which enable new applications such as “Direct Diode” material processing systems, the new type of laser systems. Mr Fichtner added, “Our products and systems – from laser sources and laser systems

right up to complete laser machines – are all totally precise, residue-free and low-maintenance. Our products are in great demand in a wide variety of markets for versatile laser applications. We offer semiconductor materials, diode lasers, solid-state lasers and fibre lasers, laser machines and exhaust cleaning systems. We work with our customers to develop components or systems, and integrate them into complete laser machines for laser material processing if desired.” With Jenoptik continuous working on innovative solutions to add to its successful

portfolio, the company’s dedication to providing ‘electro-optical efficiency’ to its customers is allowing it to stay at the forefront of its industry. Mr Fichtner concluded, “We have a number of key differentiators that help us to stay ahead of the competition, such as having our own wafer fabrication factory to produce semiconductor wafers for our lasers in-house. Our plans for future growth are focused on not creating ‘me too’ products but rather on continuing to harness our USP of developing and manufacturing high-value, optoelectronic products that utilise our laser expertise.” n

Industry Europe 69

SETTING NEW GLOBAL STANDARDS Robert Bosch remains the global technology leader in its diverse product portfolio and continues to set new standards for innovation and efficiency. Philip Yorke takes a closer look at an iconic, high-technology group that continues to excel in its chosen disciplines and outperform its competitors.

70 Industry Europe

he Bosch Group of Germany is composed of Robert Bosch GmbH and more than 360 regional companies worldwide. As an indication of how committed the company is to developing innovative products, last year alone the group applied for more than 5000 patents worldwide. The entrepreneurial Bosch Group was founded in Stuttgart in 1886 by Robert Bosch as a workshop for precision mechanics and electrical engineering. Today the company is a leading global supplier of technology and services, and according to its latest figures, in 2013 its 281,000 business associates generated sales of more than €46 billion. The group’s

operations are divided into four distinct business sectors: automotive technology, industrial technology, consumer goods and energy and building technology. The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group. 92 per cent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, which is a well-known registered charitable trust foundation. The Bosch Group’s declared aim is ‘to design products that fascinate, and improve the quality of life by providing solutions which are both innovative and beneficial’. In this way the company offers technology worldwide that is ‘Invented for life’.

Innovation and service driving sales Today the Bosch group is seeing strong growth across all four of its key business sectors after it experienced a slowdown in 2012. As one of the world’s leading service and technology companies, Bosch takes advantage of its global network and the opportunities they provide to generate strong and meaningful development. Bosch stays clearly focused on its core competences in automotive and industrial technologies, as well as in its products and services for professional and private customers. The company’s automotive technology sector is the world’s largest independent parts supplier to the automotive industry

Industry Europe 71

and makes a significant contribution to ensuring that driving is safer, cleaner and more economical than ever before. In its industrial technology sector the company strives to excel in control technology and packaging technology. In the company’s consumer goods sector Bosch provides a broad spectrum of products and solutions in the areas of power tools and household appliances. In addition, the Bosch Group’s energy and building technology sector is a global leader in the field of HVAC, solar energy and security systems. Bosch says that innovation can be inspired by its own extensive research capabilities or

72 Industry Europe

come about through an exchange of ideas and opinions with its suppliers or customers. Whatever the route, Bosch devotes a large proportion of its turnover to research and development, and these major investments make a difference to its products’ reliability and efficiency worldwide.

New high-tech solutions showcased At this year’s Hanover Trade Fair, held early in April, the Bosch Group presented an extensive range of networking and process optimisation solutions for industrial complexes of all types. The company’s ‘APAS assistant’, ‘APAS inspector’ and ‘APAS base’ offer a

Being a very well known and reputable die casting company in Turkey, the company was established in 1968 in Istanbul/Turkey. Today Çelikel is the leading aluminium high pressure die casting company in Turkey which is running its activities for different types of products especially in automative industry which have been exported to various foreign countries like Germany, Spain, UK, Brasil, France, Mexico, China, South Africa, etc… for its valuable customers such as BOSCH, VALEO, ZOLLNER, BSH, MAHLE, MAGNETI MARELLI, DTR, GATES STACKPOLE and VESTEL. It adopted itself to the growing trend for automotive industry in Europe by increasing the productivity with high engineering capabilities to overcome the fierce competition environment. The main goal is to be one of the best aluminium die casting company in the world while being recognized and respected by our worldwide customers as well as being an enterprise that increase its market share and value with ever-growing customer satisfaction by applying Lean Manufacturing Techniques. The strategy in this way is designed to create value by leveraging the company’s main strengths. Apart from the above statements, these include the leadership in the field of high pressure die casting in aluminium by automation system application to the die casting cells and establishing the R&D facility. We keep our success in sustainable developments by our total quality improvements and we have been getting awarded by our customers. 2010 2009 - 2010 2011 - 2012 2014

– Best supplier award for quality, reliability, flexibility, innovation and pricing from B/S/H Group. – Quality award from Bosch Group as one of the best global suppliers (only high pressure die casting company) – Quality award from Bosch Group as one of the best global suppliers (only high pressure die casting company) – Best die casting company and sustainable development award from Valeo

Çelikel has moved to its brand new facility in Kocaeli/Turkey with a 24000 m2 total closed area. The project planning has taken 8 months to finalize since it has been planned to be the most advanced die casting facility in Europe in every possible aspect. Both production equipments and environmental investments have been realized to reach this target. As a result, with pride and pleasure Çelikel is the first die casting company in Europe and the second die casting company in the world which has been awarded with Leed Silver Certification (new construction category) by U.S. Green Building Council. The facility was designed in way that promotes the most efficient ways of using energy and other sources. Many energy saving and source conservation applications play a role in obtaining this high performance. Here are some of the investments and applications; • Economizer system; which catches the waste gas heat and transfers in water to use in heating the building. Also with integrated absorption chiller, this heated water will be used in cooling the facility. This economizer system has full heating and 75% cooling capacity of the building, • BMS (Building Management System); where operator can control almost all mechanical, electrical, and plumbing systems that supporting production, security, and comfort, • Approximately 40% energy saving in lighting by selecting energy efficient lamps & fixtures, • Refining 75m³ domestic wastewater and 60m³ industrial wastewater per day, • Recycling 450 tonnes hazardous and nonhazardous wastes per year, • With the filtration system, the lifetime of hydraulic oil is increased by 250%. Çelikel not only use the natural resources in a most efficient manner possible but also very sensitive to environment by concerning and planting environment-safe systems. On the other hand in order to improve the die casting process, we present part design optimization proposals during the mould design phase with our 46 years of experience in the high pressure die casting industry, We also use MagmaSoft to simulate the molten metal behaviour in the die cavity and NX, CATIA and SolidWorks to exchange CAD/CAM data with our valuable customers without any compatibility problems. Along with the numerous investments, 22 high pressure die casting machines, 4 tower melters with a melting capacity of 180 tons/ day from different types of alloys, 10 Chiron CNC machining centers and a various other equipments, Çelikel continuously improves its products, capabilities and processes by matching lean manufacturing techniques with total quality awareness and provides better quality products and services than customer expectations by adding new values on every single part.

Çelikel Aluminyum Döküm İmalat San.ve Tic. A.Ş. Tel.: +90 444 82 55 | Fax: +90 262 658 06 96 | Web: www.celikel.com

unique look at the advanced technologies that will be available to tomorrow’s connected industries. In the future, flexible, networked smart factories will see people, machines and products all communicating with each other and working together. However, the APAS automation solutions from Bosch are available now and are designed to take over dangerous, strenuous and monotonous work functions leaving people free to focus on higher-quality, more productive employment. Bosch is also reaping the benefits of the launch of its new, direct injection system for the global automotive industry. Thanks to the worldwide trend to downsize, the gasoline direct injection technology sector is seeing strong growth. It is worth noting that one-third of all cars produced in China will feature gasoline direct injection by the year 2020.

Bosch technology leading the field There is virtually no aspect of modern motoring that is not touched by the hightech products developed by the Bosch

DMS AG, Mr. Hössl (right) at the 2012/13 BOSCH Global Supplier Award Ceremony

We are proud to provide high-standing and sustainable DDC-solutions (building and energy management) to such distinguished companies as Bosch, Audi, Porsche...

- more than just DDC-technology! DMS AG, Lorenzstrasse 2, 76275 Ettlingen | www.dms-ag.de

Group. All of the company’s nine automotive divisions are working at the cutting edge of new product development. Whether it is gasoline systems, electrical drives, chassis and systems controls or car multimedia systems, Bosch continues to lead the field. As part of its automotive technology business sector, the electrical drives division of Bosch develops and manufactures mechatronic components and systems for automotive body applications. The company’s innovative actuators and systems for engine thermal management, air-condition-

76 Industry Europe

ing and windshield cleaning are the most efficient in the world and are the components of choice for the automotive industry. By focusing on customer benefit, quality and competitive pricing the company has grown to become the market leader in this sector. Furthermore, the automotive electronics division is also a technology leader in its field and develops a range of micro-electric products for both automotive and nonautomotive applications. Sustainability and environmental protection issues are also high on the company’s list

of priorities. For many years now it has been making significant progress in the area of sustainability and environmental protection. This includes responsible use of natural resources and the promotion of resource-friendly mobility. Sustainable business practices have been on the Bosch agenda for many decades and these remain at the forefront of its environmental management programme today. n For further details of Robert Bosch’ innovative products and customer services visit: www.bosch.com

SPREADING HEALTHIER OPTIONS

Minerva is the oldest edible oil company in Greece and one of Europe’s best-known brands. Philip Yorke spoke to Kostas Kiriopoulos, the company’s head of supply-chain management, about the latest developments in their sector, together with Minerva’s strategy behind supply chain operations.

Industry Europe 77

was in the early 1900s that Minerva decided to enter the expanding edible oils market in Greece and since then it has grown to become the country’s largest producer of olive oil based consumer products. With exports to over 40 countries worldwide it is one of Europe’s best-known brands. Continuous investments in new packaging technologies and the creation of innovative products have helped the company to meet the diverse nutritional needs of modern day consumers worldwide. The excellent quality of Minerva’s olive oil relies upon a close connection with Greek agriculture and the traditions that have been built up over many decades. All Minerva’s products support the high quality and values of the renowned Mediterranean diet. The company’s innovative products are the result of years of in-depth research that provides the consumer with a wide range of healthy choices for maintaining a healthy and balanced diet.

Minerva’s strategic partnerships in the functional food sector, as well as its entry into the growing organic food market, has placed it among the top food producers in Greece and one of the most respected in Europe. In 1999, following a fire in its packaging unit, Minerva invested around €100 million in the latest state-of-the-art technology and this has been continuously upgraded and improved in order to maintain its leadership position in the edible oils market. As part of the PZ Cussons International Group the company is well placed to build upon its global sales and ‘top-drawer’ reputation.

Supply chain strategy Minerva is a company clearly focused on maintaining the high quality of its nutritional products and timeless values. These are designed to fulfil and realise its original vision of meeting the discerning nutritional needs of consumers. Now in its second century of

operations, Minerva is an even more dynamic, resourceful and fast-developing company. Mr Kiriopoulos said, “Since 2008 our country has suffered, like many others, from the global recession with consumption rates down by 20 per cent in many of the categories in which we operate. In this challenging environment we soon realised that making economies of scale was simply not enough and that real growth is very different from simply achieving enlargement. “Changing the dilemma from ‘how to improve costs’ to ‘how to compete’ was the key to our transformation plan. In a globalised environment, where volatility becomes the norm, trying to keep costs low is a never-ending headache. We cannot compete anymore as stand-alone entities; success comes from the way we manage our prime relationships with partners. “Investment choices was another key element, whereby we link our commercial

plans with our capital expenditure. When business growth comes from product A, you simply put the money there. Synchronisation between the supply chain and commercial demand is a prerequisite for success. “Creating a clear focus is the final thing we did; we are getting closer to each other, to respond faster, work simpler and deliver better. Lower levels of authority, higher levels of personal accountability is what we are aiming for. In order to survive and grow, meeting

new business challenges, supply chains have to be shorter, more resilient to disruptions, and focused on real value generation. “Overall, I would say that we are renewing our entire business strategy from a mechanical, scientific to an flexible, adaptable, organic model. And this strategy has got us there; our supply-chain remodelling has provided the fuel for our intensive promotional strategies and the expansion of our product portfolio for the growth of our international business.

The result has been a 20 per cent increase in exports, and we also see double-digit growth continuing throughout 2014. “In the Greek domestic market we are focusing on spreads although our olive oil and feta cheeses remain our international ambassadors. Traceability, small family farming and ethical sourcing as well as social responsibility and taste superiority are a few key attributes that consumers are demanding and our supply chain can offer better than others do.

“Our modern high-tech packing lines are also important attributes that make our supply-chain one of the most efficient in the business today.”

Growth enablers “Minerva is about people and brands. Two years ago we launched a talent management programme to enable people to contribute to their fullest potential in future business challenges. So, ‘caring’ about our ‘assets’ is one important thing; branding is the other – this expression of the unique values and attributes that make us exist, our essential truth. This is what we are and we are working hard to make it clear to the consumer.”

International presence The global expansion of Minerva’s key brands has been a slow process for the company when it comes to penetrating certain markets. What is therefore important is no longer a focus simply on its key European or Australian consumer markets but a global, interconnected effort to reach consumers across the globe. By broadening its product portfolio the company has made it easier to open doors in new and fast-growing consumer markets worldwide. n For further details of Minerva’s innovative, high-quality edible oil products and distribution services visit: www.minerva.com.

Since it produced its first axles over 50 years ago, NAF AG has been recognised for its ability to provide customers with innovative and practical drive solutions to their individual requirements. Peter Mercer reports.

DRIVEN BY INNOVATION N

AF Neunkirchener Achsenfabrik AG is a third-generation family-owned German company that has been producing axles and gearboxes for agricultural, construction and forestry machines for more than 50 years. Today its 450 employees at its headquarters and production centre in Neunkirchen am Brand in Bavaria produce axles, planetary drives, gearboxes, differentials and other drive components for customers all over the world. NAF AG is widely recognised as the market leader in powered bogie axles for forestry machines. The company was founded in 1960 by George Hemmerlein, a member of the Bavarian state parliament, and entrepreneur Kaspar Lochner from Munich, and it initially produced

82 Industry Europe

steering and rigid axles for construction machines. In 1970 a research and development centre was opened in Munich. In 1974 the company’s ownership changed, and in 2002 the formal status changed to a stock company, but all the shares are still held by the family. A key year in the development of NAF AG was 1976 when it began to produce bogie axles for forestry machines. “At that time four manufacturers of forestry machines in Scandinavia started to use hydrostatic drive lines and we received orders from all four for bogie axles with internal gearboxes,” says CEO Alfred Saam. “These were produced in quite small quantities in different designs for each customer but it was an important step for us into the for-

estry machine sector. Axles and other driveline components for the forestry industry today account for around two-thirds of our business. Indeed those four companies that approached us nearly 40 years ago are still regular customers. In addition, our speciality is still the flexibility in development and production that we demonstrated in meeting their different requirements and we continue to work very closely with customers to exactly fulfil their needs. In particular our Munich-based R&D team uses the latest technology, as well as more than 45 years of experience, to bring our customers innovative and practical drive solutions.” Today NAF AG’s products for forestry applications include transfer cases, planetary rigid axles, planetary bogie axles and portal

bogie axles for forwarder and harvester drive lines as well as planetary steering, rigid and bogie axles for skidders. For forestry trailers the company provides planetary rigid axles and high speed planetary bogie axles.

Global expansion NAF AG’s first expansion outside Europe came in 1999 with the founding of a sales office in Edmonton, Canada. “The owner of the company had actually studied in Edmonton so he knew the country well and had many connections, especially in the forestry industry, explains Mr Saam. “Today the office offers spare parts and technical services to customers not only in Alberta but to many in North America.” Expansion eastwards then followed in 2007 with the setting up of a sales and service office – NAF Russia Ltd – in Ekaterinburg, mainly to serve the developing Russian construction machinery industry. In 2011, NAF established a strategic sales partnership with company Gili in Qingdao, China. This office now supports NAF AG sales of axles and other drive components for construction and lifting equipment, scissor lift loaders for container handling and even for aircraft towing vehicles.

Continuous product development NAF’s motto is ‘Driven by Innovation’ and it continues to invest 5 per cent of its annual turnover in new product development. Its

R&D team at Munich is focused on developing innovative, high-performance drives that are extremely durable, serviceable and environmentally friendly. The company has also developed a flexible ‘building block’ modular production system that combines the advantages of individual and serial production process. This means not only that small production runs can be carried out with similar cost levels in comparison to high volumes but that there is a considerable

inventory cost saving as a result of using common components in different products. In its 54 years of business, NAF AG has registered many patents. In 1996 they patented oil-immersed multiple disc brakes in axles for construction machines. Later they transferred their know-how in forestry machine axles to develop bogie axles for construction machines and a range of drive components for articulated dump trucks. Then, in 2008, the company took

Industry Europe 83

another step forward in technology for the construction industry with its development of planetary drives with integrated, self-cooling oil-immersed disc brakes. Today NAF AG offers complete drivelines for construction equipment such as wheel loaders and mobile excavators – including transfer cases, planetary steering axles and planetary rigid axles – as well as drive line solutions for articulated dump trucks and a range of axles for motor graders and rollers. Three years ago NAF AG introduced a major innovation to its solutions for agricultural applications with its centrally driven steering axle, with adjustable track width, for combine harvesting machines. Up until then the only way to combine all-wheel drive with adjustable track width on harvesters was to employ two hydraulic hub motors, one on each wheel. NAF’s innovation was to develop a centrally driven system with just one motor on an adjustable track width steering axle. This centrally located design provides a weight optimised design, simplified hydraulic control and a doubling of the tractive effort in comparison to two motor systems. The adjustable track-width was integrated into the central drive concept to ensure the highest performance in all harvesting conditions and facilitate the use of tyres of different sizes and at different pressures to suit all conditions. And the innovation continues. Last year NAF introduced a new bogie axle for very

heavy construction equipment such as motorgraders and articulated dump trucks with payloads of up to 50 tonnes. And in 2014 it is bringing to market a shiftable planetary drive system for on-highway trucks that will enable them to perform efficiently in off-road conditions as well. NAF AG exports around 80 per cent of its €103m annual production, mostly to other European countries but it is seeing continuing growth in its North American, Russian and Chinese markets too. “We expect our sales in North America to grow from the current level of 6 per cent of turnover to around

10 per cent in the next four years and there is considerable potential to increase sales to Russia from today’s 4 per cent,” says Alfred Saam. “Of course, demand in China is certain to continue to grow too and we are looking at 5 or 6 per cent there, probably mostly in drive systems for construction machines. But actually, all over the world, cities are expanding, agriculture is becoming more mechanised: more people means more food production and more construction everywhere. All these machines need better drive systems and NAF is ready to n provide them.”

Industry Europe 85

THE WIELTON WAY In just 18 years Poland’s Wielton has grown into one of the leading manufacturers of trailers and semi-trailers in Europe. It is also widely recognised throughout the industry as a pioneer in the latest manufacturing technologies. Peter Mercer spoke to marketing and communications Director, Jacek Kurowski.

86 Industry Europe

ielton is Poland’s largest producer of semi-trailers and trailers. It is also the largest manufacturer of trailers in the central-eastern Europe (CEE) region and one of the top ten in Europe. Established in 1996, the company achieved sales in excess of 520m in 2013 and produced a record total of 6505 trailers, an increase of more than 10 per cent on 2012. In Poland itself Wielton sold 2360 trailers last year, making it the third largest supplier in its home market; the remaining 64 per cent of output was exported, mostly to countries within the CEE. Russia remains the largest export market, taking just short of 2000 trailers and semi-trailers in 2013. Wielton currently offers the widest range of trailers and semi-trailers on the Polish

market, with more than 60 different product types that can be adapted to the specific requirements of customers. “Our strategy is to maintain our dominant position in both Poland and the whole CEE region by continuing to invest in our production facilities and introducing the latest manufacturing technologies,” says Jacek Kurowski. “We have a reputation for innovation in both our products and our production processes; of the €11m that we have invested over the last five years, a third has been spent on new plant and machines. We have recently installed 32 welding robots – and there are more to come – and have completely modernised our paint shop. We currently also have a planning application in for a com-

pletely new stand-alone R&D centre that will be one of the most modern in the industry.” Wielton’s total current investment programme is intended to boost its production capacity to around 12,000 trailers per year and its revenues to more than 1 bn PLN within three to four years. Its product range already includes platform, curtain, box and refrigerated semi-trailers as well as tippers and container chassis. It also produces trailers for roller containers, tipper bodies and high volume combinations. Wielton is also a partner in the program Hardox In My Body SSAB.

Product innovation Wielton continues to extend and modernise its product range to meet the increasingly complex needs of the transport industry; more than 120 market-specific product enhancements were carried out during just the last year. “A lot of our recent R&D has focused on reducing the weight of our products, through developing aluminium chassis, for

example,” explains Jarek Kurowski. “We are also developing industry-specific solutions such as curtain-siders that are optimised for carrying liquids in bottles and semi-trailers that are specially designed for transporting consumer electronic goods. Poland is a huge exporter of fridges, washing machines, TVs and so on and the semi-trailers that carry these have to be designed to make loading and unloading as efficient as possible. That means that the skeleton of the trailer, the spaces between the vertical bars etc, has to be very carefully worked out. “We are also developing a new Bi-Rail concept to enable the complete package of the container and the trailer carrying it – rather than just the container - to be loaded on to a railway wagon, which can then be transported by rail anywhere in Europe. We completed the homologation of our first BiRail semi-trailer at the end of last year and we will be launching them on the market later this year.”

Agro launch The most significant development of Wielton’s product portfolio in the last five years has been the launch of its Agro range of trailers dedicated to the agricultural market. In fact, trailers for agricultural applications accounted for 800 of the total number of products sold in 2013 and nearly one-third of them went to export markets. “Poland is developing an excellent reputation as a manufacturer of agricultural trailers. We identified this business opportunity some five years ago and have now set up a stand-alone agricultural division,” says Mr Kurowski. “We are now number three in the country in what is an increasingly export-led business. In fact, most of our exports of agricultural trailers go to western Europe rather than the CEE countries. Our range is designed specifically for the agricultural market, with a heavier, more robust construction to cope with off-road conditions and with features specific to different agricultural

Industry Europe 87

crops – you need different side walls to load, unload and carry apples from those you need for grain, for example.

Working with SSAB Maintaining strong supplier relationships has been vital to Wielton’s continued growth. It has used SSAB’s high-strength steel in its products since its establishment – mainly the Domex brand but also Docol, Hardox and Weldox. Altogether SSAB supplies Wielton with about 5000 tons of product per year. More than half of this is Domex, followed by Hardox, both heavy plate and strip products. SSAB’s high strength steel is used in all truck bodies and trailers manufactured by Wielton. Domex is used in both the supporting parts of the trailer frame and the walls of 88 Industry Europe

various kinds of truck bodies such as beds and tippers. Hardox is used, amongst other things, for the bottoms of tippers. Wielton’s business strategy is simple: it’s about meeting the highest demands of its customers – and that is where SSAB’s high-strength steels play an important role. By using high-strength steels, Wielton can reduce the weight of its products considerably as well as making them stronger and longer-lasting. Moreover, it can reduce the need for welding and improves production effiiciency. Its close cooperation with SSAB is a crucial factor behind Wielton’s success.

Partnership with Knorr-Bremse Knorr-Bremse is the world’s leading manufacturer of braking and control systems for commercial vehicles. Wielton is one of the many

Polish companies to use the latest braking and control systems from Knorr-Bremse in its products. TEBS G2.2 is one of them. This is already the third generation of electronic braking system from the TEBS G2 family designed for trailers. In one compact unit the system combines the electronic control unit, sensor technology and pneumatic adjustment. In addition to the popular conventional suspension systems, Knorr-Bremse also offers its latest electronic suspension system. The iLvl Intelligent Levelling Control System is an electronically controlled air suspension system for trailers with groundbreaking functionality and the ability to be controlled by a driver. Regardless of the operation, the system responds in a second during the lifting and lowering of the trailer suspension. Even if the power supply is not available, the

driver can still raise or lower the trailer using pneumatic control buttons. The system also offers the simple possibility to program the suspension system functions, which in the case of conventional suspension systems are complicated and often expensive. Furthermore, Knorr-Bremse allows for simplified controlling via a remote control system based on a smartphone, which also keeps the driver away from the danger zone. The iTap Intelligent Trailer Access Point means that the driver does not need to use a valve or other control device attached to a side of the vehicle – he can remotely, from a safe distance, adjust the vehicle’s height to the ramp. iTap enables communication between the driver and the TEBS and ilvl system by a smartphone or tablet from the application specially developed for this purpose by Knorr-Bremse. Another of the Knorr-Bremse solutions responsible for security is a tire pressure monitoring system (Tire Pressure Monitoring System), whose main task is to measure the pressure and to inform the vehicle’s user when the vehicle’s values are too low or too high.

the east of the Caspian Sea – Kazakhstan, Uzbekistan etc,” explains Mr Kurowski. “With the increasing oil wealth of this region, there is a huge growth in construction and civil engineering work and therefore a big increase in demand for trailers. We have already set up a dedicated sales team for these countries.” A wider export market requires an expanded service network. Wielton already has a network of 60 service points all over Europe (including 23 in Poland) and has plans to further extend this network, initially in Russia. It is also investing in modern IT systems throughout the network to ensure quicker location and delivery of parts and more complete customer support. Increasingly, the IT systems have also to be multi-lingual. Wielton’s growth strategy for the next few years centres mostly on building on

its dominant position in the Polish market, extending its exports in central, eastern and western Europe and looking to new markets as well as continuing its investment in advanced production technologies. It may also consider acquisitions of manufacturers of trailers and semi-trailers, particularly in specialist applications such as refrigerated transport, tankers and livestock transport. “We are interested in moving into new industry sectors and in advancing into new geographical markets,” says Jacek Kurowski. “As we expand our exports, we need to ensure that we keep close to our final customers to keep delivery costs low and to ensure first-class service. So we are actively following acquisition possibilities wherever n there is a clear strategic advantage.”

Expanding exports Across its entire product range Wielton intends to build on its export success. In fact, last year the company won the ‘Eagle’ award from the Polish Ministry of Trade for its dynamic export performance. It is actively exploring new export opportunities within and beyond Europe. “We are particularly interested in the rapidly growing markets of the countries of Central Asia to Industry Europe 89

TAKING THE HEAT OFF Faco celebrated its fiftieth birthday in 2013. In her conversation with Mr Marco Dalla Rosa (board member) and Mr Mario Manfredi (technical and commercial director), Barbara Rossi learns how the company is increasingly shifting its focus from individual heat exchangers to more comprehensive systems (dry cooling and condensing solutions).

90 Industry Europe

aco is based in the Novara area of north-western Italy, very close to the border with Lombardy and within easy reach of Milan (about one hour’s drive). It designs and manufactures highly customised solutions for any heat transfer, heat recovery or cooling process application. Its range of products includes both individual heat exchangers for HVAC and industrial use and dry coolers and condensers. It also offers an engineering service, carrying out thermodynamic design, as well as fluid dynamic and noise analyses. “We started as a family company set up by my uncle and my father in 1963, making heat exchangers, first for comfort applications and then also for industrial and naval use,” Mr Dalla Rosa explains. “We have always offered products with a customised design, increasingly so over time, and have always regarded research and development as being vital to our success. This is proven by the fact that we started employing IT systems at the end of the 1960s, when not many companies did. I believe that our will to be at the forefront of innovation is one of our main distinguishing features, underlying our success. We are still a family company, led by both members of the founding family and externally recruited managers.

“Heat exchangers are still at the foundation of what we do, even if over the years we have widened our offer range with additions in terms of materials, treatments and a new line for what we call ‘our machines’ (i.e dry cooling and condensing solutions, incorporating heat exchangers as well). We operate from our 12,000m2 site and employ a team of 180 staff.” The company supplies solutions for applications in a wide range of industries, including HVAC, heat recovery, industrial cooling, chemical and petrochemical, pharmaceutical, food, shipbuilding (military, civil and off-shore), electro-mechanics, electronics and e-microelectronics, cogeneration and power units, steel, paper and textile.

A unique laboratory The company is equipped with its own laboratory for thermodynamic research, designed and run according to ASHRAE standards. “For each type of heat exchanger and combination of materials, we measure all actual thermodynamic parameters, which are then used in Faco’s proprietary selection software packages. This is a unique facility for a private company.” As part of its R&D facilities, Faco also has available an array of software and internal resources for

fluid dynamics simulation, for finite element structural analysis, as well as predictive evaluation and measurement of noise and vibrations. Modelling tools and laboratory testing work complement each other, with mathematical modelling being followed by product testing in the lab. “In this way our products arrive at the homologation phase, obviously still carried out by independent third parties, with a head start.” Faco holds a number of certifications, including ISO9001, AHRI (Air Conditioning, Heating & Refrigeration Institute), ASME VIII, ASME IX, EN 287, EN 15614, EN 13585 and EN 13134. In addition to these, the company complies with all relevant EC directives. “We have had our laboratory since the beginning and we have continuously improved it over the years. Now we are revamping it, because research is very important for us. In addition to this we are modernising our machinery as well as making commercial investments for further penetration of new and emerging markets,” Mr Manfredi explains. “While we intend to carry on offering our whole range, we have increasingly focused on ‘our machines’ and on heavier industrial and energy applications. For instance, for many years now we have been developing Industry Europe 91

Donelli Alexo Anticorrosion coating applications since 1911 Donelli Alexo, part of Donelli Group (est. 1911), is dedicated to meeting the most demanding anticorrosion, fireproofing and insulation needs of energy, chemical, onshore and offshore Oil&Gas facilities. Specialized in shop and on-site HVAC/R services include: • Anticorrosion & antibacterial coating of finned pack heat exchangers with Heresite and other technologies leading to energy saving; • Casing, piping, skid, and vents coating in accordance with ISO 12944 and all major end user/engineering specification; • Shell&tube lining and tubesheet rehabilitation with Säkaphen technologies; • Heat exchangers maintenance and environmentally friendly cleaning; • Consulting services including failure analysis, customized testing and joint development programs. Trained and experienced personnel, certified NACE/FROSIO/ACQPA inspectors, state-of-the-art painting shops in Italy and efficient equipment to operate Europe-wide at clients’ facilities represent distinctive factors. These ensure schedule fulfilment and compliance with environmental, qualitative and safety standards (i.e. Norsok, Total, EDF, Saudi Aramco, GE, Petrobras, ENI, etc…).

92 Industry Europe

solutions for nuclear power station applications and have supplied heat exchangers to various plants around Europe. We have also developed many applications for the naval field, in terms of heat exchangers both for comfort and for the engine room. “In terms of new products I would point to our SmartBox modules, designed for containerised installation. In fact, SmartBox is an extremely compact module that can be installed at one end of the container, composed of heat exchangers covering the full height of three sides and fans flushmounted on the upper panel. A dual section version of SmartBox is also available for cooling two separate circuits, such as the water jacket and the after-cooler.”

Consolidating markets Export has had an extremely important role for the last fifteen to twenty years and today amounts to 85 per cent of the company’s output, mainly sold in Europe, Asia and Africa. Western Europe is an important, consolidated market, where Faco carries out weekly deliveries and where Germany features very highly. Western Europe is followed by Russia, the Middle East and North Africa. “We tend to serve our consolidated markets through our commercial network, while supplying new countries directly. Even in Western Europe we supply directly when we deal with more complex products,” Mr Manfredi adds.

While Faco’s aim is to sell its whole range in all of its markets, realistically it knows that most of its sales in emerging countries are centred around its more value-added products, which local competitors are not able to manufacture to the same standard. “Europe and Italy are still centres of excellence in this field. We receive requests from all over the world and, while other markets have been growing rapidly, albeit unevenly (often linked to important but transient local projects, such as the Sochi Olympic Games or the construction of a chemical plant in the Middle East), Europe still plays a predominant and reliable role. We have to consolidate our presence on our existing markets and start distributing in the Far East.” Mr Dalla Rosa stressed how, as well as organic expansion, acquisitions could be part of the future growth strategy, although nothing of this sort is in the pipeline at present. “It could be an interesting idea, especially so as to be able to produce products in close proximity to their outlet markets. However, even if we were to pursue this strategy, we would certainly maintain all of our highly specialised production here in Italy, because we want to maintain our excellence, which is only achievable with the staff and technology that we have here. Also, any possible future foreign production would be for the sole purpose of serving local markets. Delocalisation is not something that we are interested in.”

The relationships created with its suppliers, based on collaboration aimed at fulfilling new emerging product requirements, are vital to the company. This is particularly important because Faco is continuously expanding the boundaries of the applications that it supplies. Mr Dalla Rosa concludes. “The chemical and oil and gas industries for instance are sectors that we have started supplying recently, as is offshore. We are increasingly moving towards the supply of whole systems, bypassing integrators, rather than n selling individual heat exchangers.”

Industry Europe 93

DUAL SUCCESS OJ Electronics is a global leader in the design and manufacture of underfloor heating and HVAC control systems. Philip Yorke spoke to Michael Snerling, the company’s vice-president of sales and marketing, about its latest innovative products and its ambitious plans for future growth.

J Electronics was established in Denmark in 1964 and today celebrates 50 years of progress in the design and manufacture of electronic systems for underfloor heating and HVAC controls. Over the years this privately owned company has built up an enviable reputation for its experience and know-how in electronic control systems and customised solutions. OJ Electronics is headquartered in Sonderborg, Denmark and today its products are available worldwide through its dedicated network of partners and distributors. The 94 Industry Europe

company also enjoys a strong international presence with affiliates and sales offices throughout the world including subsidiaries in the USA, the UK, Poland and Russia. OJ Electronics is committed to the development of intelligent solutions that ensure maximum user comfort while minimising energy consumption. With a reliable yet flexible supply chain, the company is able to deliver exceptional quality and performance throughout its range of diverse electrical systems. In 2013, OJ Electronics recorded sales of more than DKK 196 million.

New strategy for growth For its HVAC (heating ventilation & air conditioning) business, OJ’s strategy for growth is focussed on its major European markets as well as selected overseas markets. The company plans to strengthen sales in Germany, Benelux and France, where demand is already strong and where it has gained the recognition of many prominent AHU manufacturers. As the demand for ‘high-end’ controls is increasing, OJ plans to maintain its leadership position by offering its customers updated product

programmes designed to grow their business. This will be achieved by enhancing the company’s current core product ranges with the addition of new functions and energy-saving features. In addition, OJ will make its high-tech solutions more scalable and flexible in order to broaden its market coverage and product appeal. In another strategic move, OJ Electronics has decided to consolidate its success in the motor controls sector by establishing a new motor controls division. This new division will be the driving force behind a strong

and innovative sales strategy to promote the company’s next generation of advanced motor controls. Mr Snerling said, “Our new strategy for growth will see the company grow by two digit growth rates over the next three years. We have divided our floor heating activities into two divisions: hydronic and electrical systems, with developing a new generation of thermostats that offer the latest internet accessed Wi-Fi touch controls. Technology in this sector is moving fast and we are keeping ahead of the game through our

continuous programme of investment and the implementation of new technology. “As an OEM, we are also very flexible and are considered to be more of a business partner than just a supplier. We are dedicated to increasing the efficiency and thereby the profits of our customers. In fact, we often challenge them in order to provide them with optimal solutions. We have a strong position in Scandinavia and grow our business on several European markets when it comes to HVAC, and we are gaining market share through our in-house R&D Industry Europe 95

and unrivalled applications knowledge. Air handling unit producers come to us for our advanced standard systems, but we are also able to adapt these to provide tailormade functions and features based upon their individual requirements. Mr Snerling added, “Despite the continuing weak demand in the HVAC and underfloor heating sectors in Europe, Germany remains a strong growth market for us especially for our highly energy-efficient heating and ventilation products. In addition to the new-build construction market, we are now seeing growth in retro-fit applications as well, especially in the European metropolitan zones. One area that deserves special mention is our latest ‘Green Zone™’ control system which drastically reduces energy consumption for our customers. This new system is designed to function at different levels depending upon the differing demands of modern offices. Our latest sensors can

detect whether there are people in a room or not and how many occupants there are and regulate the air-flow accordingly. “Furthermore, we are keeping all our options open as far as the future is concerned and would consider different kinds of partnerships and corporations if they offer us the right synergies. However, we are currently focused on organic growth and the launch of a number of groundbreaking new products. Today the OJ brand is clearly defined by its quality, reliability and functionality as well as its ease of use and speed of installation.”

Unique zone control system Recently OJ Electronics launched its groundbreaking intelligent, zone-controlled VAV system. Branded as the ‘OJ Green-Zone™’, it dramatically reduces energy consumption while speeding up installation and simplifying operation. This new product solves many of

the challenges faced by today’s building managers. Different office zones have widely varying needs when it comes to HVAC systems, whether it is a canteen, a reception area or an open-plan office, and this all-new system creates and maintains the perfect air quality and climate in up to 125 individual rooms or zones in any one installation. This remarkable new system offers up to 65 per cent energy savings when compared to traditional systems. Jens Antonsen, the company’s product manager for HVAC, explained, ‘OJ GreenZone™’ optimises air and water flow, as well as temperature. This in turn means that the air-handling unit delivers only what is needed, and no more, and this results in major energy savings, which is money in the bank for building owners.” n For further details of OJ Electronic’s innovative products and services visit: www.ojelectronics.com

Omron`s MEMS technologies for HVAC Gabriel Sikorjak - PMM

The design specifications for new HVAC systems become ever more challenging. The need to save energy, improve accuracy and at the same time reduce cost is driving designers to seek innovative solutions. Omron Electronic Components Europe is meeting this need with MEMS technology based sensors, which can meet these demanding criteria and allow systems to respond dynamically to changing environmental conditions and occupant activities. Omron D6F series of flow sensors is built around a cutting-edge MEMS thermal chip and can be used in applications as Variable Air Valve control systems (VAV), Heat Recovery units (HRU) or air treatment systems for flow volume monitoring, flow rate control and clogged filter detection. The new D6F-PH digital differential pressure sensor, provides outstanding accuracy and repeatability. D6F-PH incorporates ASICs to carry out digital correction (linearity and temperature correction) making it more precise and less influenced by temperature than conventional analogue output sensors. The sensors are suitable for use in a bypass configuration, for example in VAV controller for air flow control. Omron offers the D6F-PH, with measurement ranges from 0-250Pa, +/-50Pa and +/-500Pa. A major issue with conventional PIR sensors is that they often disconnect services in rooms when occupants are stationary for a period. This is another area where Omron, with its MEMS technology, has provided a breakthrough in the form of the IR thermal sensor which detects occupation by sensing body heat. D6T provides a reliable trigger for energy saving in heating, air conditioning, lighting and other services when the space is empty. Equally D6T can be used to increase air flow when the space is crowded. As D6T sensors are able to monitor the temperature of a room, they can also be used to control the level of heating and cooling systems and maintain optimal room temperature levels, including floor heating applications. D6T can also locate the precise position or direction of a detected object. D6T sensors are offered in 1x8, 4x4 or 16x16 (under development) arrays and feature exceptional accuracy and noise immunity.

OMRON Europe HQ, Wegalaan 57, 2132JD Hoofddorp, The Netherlands Phone: +31 23 568 1200 | E-mail: info-components@eu.omron.com http://components.omron.eu

30 YEARS in Die and Die Casting Industry

YUJUN MECHANICAL TECHNOLOGY CO., LTD is a professional manufacturer of high pressure die and ALUMINUAL/ ZINC die castings. Yujun offers an extraordinary commitment to mould and die casting parts quality and a wide range of value added services for the finished product: • Strong upfront engineering support & Prototype Support • To assist client developing new die casting products • Quick turn around engineering change quotation & incorporation • Secondary finishing including trim, drilling, milling etc. • Responsible project management with APQP, PIST, and PPAP capabilities • Skilled technical support for production All of our production process follows ISO standard and EU/US quality standard. 90% toolings and parts are directly export to EU, US. Our cost effective, higher quality, quick response, convenient location (only 5km to Beilun port) are our key. For more information, visit www.yujuntech.com

Contact: Bella Zhou • E-mail: bella@yujuntech.com • Phone: 0086 15258167901

GLOBAL AIRPORT LOGISTICS SOLUTIONS The global giant Siemens’ Logistics and Airport Solutions Division provides its complete baggage handling, air cargo and mail sorting systems to clients throughout the world. But that is not all: the company also remains present after installation to ensure the smooth running of its clients’ facilities. Victoria Hattersley talks to Jörg Ernst, CEO of Business Unit Logistics and Airport Solutions, to find out more about its state-of-the-art systems and the major projects it has been involved in.

98 Industry Europe

eadquartered in Konstanz, Germany, Logistics and Airport Solutions Division (LAS) is active worldwide with its main locations the USA, Singapore, China and the Middle East. Its current comprehensive offering stems from the introduction of its first tray system for baggage handling in the early 1970s. Today its baggage handling systems and other products can be found in many of the world’s leading airports. Alongside this, it is a leader in the mail business, with about 23,000 mail sorting systems installed worldwide in more than 50 countries. Logistics and Airports Solutions (comprising both Airport Solutions and Postal and Parcel Services) currently employs more than 3000 people in R&D, production, installation and after-sales services. But it is not just the installation of baggage handling, mail sorting and parcel logistics systems that the company offers today: it is able to

assist its clients with the smooth running of their facilities long after its various solutions have been installed.

Complete solutions Siemens believes in the importance of offering clients a total service from installation to after-sales support – hence its strong global presence. As Mr Ernst says: “In this business it’s important to focus not just on manufacturing but also to be very close to customers. We have set up a global supply chain network for this purpose.” The ‘complete solution’ offered by Siemens covers every step of the processing chain. This includes: baggage handling technology; air cargo control systems; mail sorting systems; parcel logistics (from truck unloading to identification and sorting); optimised software solutions to oversee the entire logistical infrastructure; and post-installation customer services.

The company’s global IT team is particularly important for enabling its clients to manage their airports and increase productivity. For example, Siamos (Siemens Airport Management and Operations Suite) software is a state-of-the-art, modular IT solution designed to support airport operations. It includes applications for airport performance management, flight planning, resource management, statistics, reporting and billing and flight information display systems. The advanced system is highly customisable so it can be tailor-made to suit the needs of any client. Mr Ernst explains: “Our offerings comprise project management, design, simulation, engineering, IT and state-of-the-art mechatronics components and systems. Our systems and information technology solutions include software modules, material flow optimisation, supply chain management, e-business, warehouse and cargo management systems.” Industry Europe 99

Global leaders in mail sorting LAS has been operating in the mail business for over half a century: following the introduction of postal codes in Germany in 1960, it developed its first letter sorting system in 1962. Another milestone came in 1984 when the US Postal Service made an order for 406 of its OCR (optical character recognition) address letter readers. Today LAS is a world leader in this segment, with its activities covering parcel sorting, reading and coding, the production and installation of sorting machines, and the development of logistics software. LAS can provide its advanced solutions to its clients wherever they are in the world. For example, in 2010 it won a contract with Nanjing Air Hub to install 10 parcel sorting systems and a central control system. It also installed 12 loops of the Variosort EXB model cross-belt sorter, measuring 4800 metres over two levels. This was completed in 2012.

100 Industry Europe

In the area of mail sorting solutions, LAS has also recently received an order from Swedish Post for a culler facer canceller (CFC) and open mail handling systems to be installed. The former, for those of our readers not familiar with the term, is an automated system that faces mail into the correct position for date stamping or stamp cancelling. When the project is completed, four of these will have been installed to preprocess, sort and sequence standard letters and flats up to C4 format. The company has also been developing its customer services in this segment on a more general level. For example, its team is currently implementing several system enhancements worldwide involving reading, weighing and X-ray technology. Furthermore, it works on third-party hardware, for example the updating of proprietary control systems with Simatic PLCs.

LAS has developed a number of new postal and parcel sorting solutions, such as the environmentally friendly Variosort parcel sorter it recently installed at the UPS Hub in Cologne/Bonn. This has increased the hub’s output from 110,000 to 190,000 parcels per hour. Another groundbreaking parcel sorting solution is its Variomove system for parcel bulk unloading – winner of a 2011 Postal Technology award. Finally, it has introduced a new flexible flyer sorter in order to meet the demands of the growing market for small parcels and packets.

Innovative baggage systems As can be seen from the above, R&D has always been a strong focus for LAS, with activities in this area mainly driven by customer demands and feedback. For example, it is constantly working on new solutions to improve the overall performance of its airport

Industry Europe 101

baggage handling systems. Many of the new products have been developed and tested at the Siemens Airport Centre in Furth, Germany. The company showcased many of these products at Passenger Terminal Expo which took place on March, 25. - 27 2014. Mr Ernst gives us some recent examples of this: “We have been running our new tray system for baggage handling which is the heart of an airport. Furthermore,

102 Industry Europe

we have developed a new self-check-in bag drop solution which has got great feedback. It’s an all-in had one system that allows passengers do the self-service check-in and bag drop at the same location, as opposed to other systems that involve at least two steps.” LAS has also developed early bag store systems, such as the one it has installed at Dubai Airport Terminal 3 where around

5000 luggage trays can currently be stored. “This is like a small warehouse that allows passengers to store their luggage safely and enjoy their time at the airport.”

Major airport projects In the Airport Solutions segment, LAS continues to win high-profile contracts for some of the world’s biggest airports. In early 2014, together with the South Korean company

Posco, it won a contract to install a baggage handling system at the new Terminal 2 of Incheon Airport. This will cover the layout, engineering, assembly, commissioning and integration of the system, as well as connecting it to the existing baggage handling system. The entire project, which will allow for throughput capacity of more than 22,000 items of baggage per hour, is due to be completed by 2018 in time for the Winter Olympics in Pyeongchang. Mr Ernst says of this contract win: “Incheon is a masterpiece – one of the highest quality airports in the world. It is expecting more than 40 million passengers per year and it will be served by more than 88 airlines.” The company has also just completed, on time, a huge air cargo project at Hong Kong airport. It was designed for a throughput of 2.6 million tonnes of freight per year, thereby increasing the annual capacity of the airport’s existing terminals by 50 per cent to 7.4 million tonnes. The contract involved the installation of modern storage and conveying systems. The handling processes were specially adapted to the requirements of Hong Kong International Airport because particularly large quantities of transit and export cargo are handled there in comparison to other hubs. Furthermore, LAS has recently received an order from Emirates SkyCargo to expand its cargo capacity with a new terminal for its freighter operations at Dubai World Central Al Maktoum International Airport. The company’s brief is to equip the new cargo

terminal with modern storage and conveying systems to achieve a throughput of 700,000 tonnes of freight per year. By 2015 this is expected to increase by a further 300,000 tonnes. Work will commence on this project at the start of May 2014.

Temporary terminals Another growing aspect of Airport Logistics offering is the installation of its CapacityPlus temporary terminals. Mr Ernst explains what this involves: “If airports are going to be handling unusually large amounts of passengers, for example for a major sporting event, then they may want a temporary capacity increase. Our systems are highly flexible and perfect if a client has limited money and only wants a terminal for a certain period. The solutions come with high security features, air-conditioning, screens and everything needed for smooth check-ins. We have already had excellent feedback on this and it has huge future potential.” To use one example, Siemens recently installed four modern temporary terminals in Angola in a very limited time frame. These were in the regional airports of Soyo, Dundo, Saurimo and Luena.

Airbus and Boeing – you can see how full they are so, there are going to be a lot of goods and people transported around the world in the coming decades. This means the airports are going to need ever-more sophisticated systems of the kind we can provide, as well as increased capacity.” But this will not be its only focus for the future. The aim is to be close to its customers wherever they are in the world, providing them with a total solution. Mr Ernst concludes: “We want to be responsible for the systems we deliver throughout their whole lifetime. We work closely with our clients on each project, to tailor it to their needs and help them make the right decision for the future. We don’t just want to complete a project: we also want to leave a good name behind us. This is what n makes us stand out in our field.”

Positive outlook Looking ahead, Mr Ernst sees strong prospects for growth in both the airport and logistics sectors. “This is a good business to be in long-term. If you just look at the order books for the two biggest airline builders – Industry Europe 103

CONSUMABLES

WITH A DIFFERENCE With a presence across five continents, Australia based heavy engineering company Bradken is a leading global manufacturer and supplier of a wide range of cast and fabricated steel products to the mining, transport and general industrial markets. The company’s European operations are based in the United Kingdom, where it operates two foundries. Victoria Hattersley met with the General Manager for Europe, Anthony Rowett, to find out more.

ith around 5800 employees worldwide and an annual sales revenue of over AUD$1.31 billion (FY13), Bradken has a long-standing reputation as a global supplier of differentiated consumable products. The company has two core business focuses: a world class range of wear-resistant consumable and capital products designed for the mining and transport industries, and contract manufacturing services capable of producing the most complex engineered steel castings in the world from a weight of 1kg up to 25 tonnes. But Bradken is more than ‘just’ a manufacturer, it is a solutions provider. The driving force behind the organisation is its firm commitment to innovation and continuous improvement, which ultimately provides 104 Industry Europe

customers with value through the creation of customised product solutions. And it is this innovative ethos that allows Bradken to consistently work with some of the world’s most recognised names from Caterpillar, Rio Tinto and BHP Billiton to FL Smidth, Hitachi and AngloAmerican.

Evolution in the UK Bradken has a long and proud history. The business, then Bradford Kendall Ltd, was founded in 1922 by two Australian entrepreneurs (Leslie Bradford and Jim Kendall), who used the proceeds of a winning streak at the races to establish their first steel foundry in Sydney. In 2004, the Company, then under its present name, was listed on the Australian

Stock Exchange. Since that time Bradken’s story has been one of continuous success. Its global footprint has expanded through both organic growth and complementary acquisitions (including the purchase of the Atchison/ St Joseph foundry and manufacturing facility in the United States and the Scunthorpe foundry in the UK) in a concentrated effort to globalise its range of products and services. Today Bradken stands as one of the world’s largest combined foundry and heavy engineering groups with 59 manufacturing, sales and services facilities throughout Australia, New Zealand, China, the USA, Malaysia, South Africa, Indonesia, South America and the UK, giving it a truly international presence. Bradken’s history of operation in the UK dates back 25 years. When Industry Europe

featured the company in its very first edition, the group’s presence in the UK looked very different. At this time it was known as ‘Bradken North British’ and was based in an entirely different foundry in Bathgate, Scotland. This site is now closed. In 2006, Bradken acquired Firth Rixson Castings Limited with foundries in Scunthorpe and Darleston. These two foundries, in addition to the Bradken’s European Head Office facility in Rotherham (where its design department is also housed) form the core of the company’s current European manufacturing base, servicing clients from all over the continent and beyond. Bradken’s Scunthorpe foundry, which Industry Europe recently visited, has a history of more than 90 years in casting

production. The site operates a continuous improvement programme, as Bradken does at all its facilities, to drive improvement and efficiency. Last year (2013) for example, the company invested over €2 million in a new world-class heat treatment facility at the site resulting in improved safety, product flow and quality outcomes.

Core products and divisions Two distinct brands operate under the Bradken banner: the Bradken branded company, structured into four discrete divisions (Mining Products, Mineral Processing, Rail and Engineered Products), and the Cast Metal Services business, a supplier of traded and differentiated foundry consumable products and technical expertise to the cast metal industry.

It would be very difficult, if not impossible, to list all the products that Bradken is capable of producing. But it would help to give a general overview of the kinds of solutions it can offer. The Mining Products Division specialises in the design and manufacture of ground-engaging tools, buckets, crawler systems and excavator undercarriage components, and a range of wear-resistant products for fixed and mobile plant. In the Mineral Processing Division, Bradken is a leading designer, manufacturer and supplier of high-quality grinding mill, crusher and conveying products for the mining and quarrying industries. The Mineral Processing Division also manages and operates a metal recycling business that purchases and processes steel feed for Bradken’s Industry Europe 105

foundries globally, a growing segment, given the increased socio-political pressure for increased sustainability coupled with the high value of steel as a commodity. Bradken is also highly successful in the transport sector offering both products and services to the bulk minerals and freight transportation markets, including high quality rollingstock equipment (bogies and drawgear componentry), complete wagons (iron ore, coal, bulk minerals and intermodal) and rail equipment spare parts (the Express Parts business) and equipment leasing options to a global network of customers. Finally, the Engineered Products Division produces a wide range of highly engineered ferrous castings and machining services to the mining, resource, transportation and energy industries. This Division works with OEMs to manufacture highly specialised capital products that are ‘mission critical’ and require first-run production integrity. By drawing on its expertise in material selection, computer modelling and non-destructive testing, Bradken is able to offer customers turnkey solutions even under the most challenging and intense specifications. Products can include rock crusher components such as jaw plates and feed chutes,

106 Industry Europe

valves and nuclear castings, rollers or buckets for heavy earth-moving equipment, gearboxes for large machines and even exposed structural castings for use in building design. It is this Division for which the Scunthorpe foundry manufactures the bulk of its cast products. A look at the facilities and technologies at just this one site will give some indication of what Bradken is able to offer on a global scale. The foundry includes casting facilities, a machine shop, assembly and heat treatment. Its machining capabilities include vertical and horizontal boring, CNC vertical machining and rotary surface grinding. Before the finished products can leave the foundry they go through stringent quality and process control. This includes hardness testing, magnetic particles, microstructure, chemical analysis, sand control, ultrasonic examination and mechanical testing, as well as the standard measurements to ensure that every component has been made to the correct dimensions.

Design capabilities As mentioned above, the importance placed on product development to provide differentiated solutions for clients is what sets Bradken apart from its competitors. To this

end, its designers work with state-of-theart casting simulation software in order to develop client-specific solutions quickly and efficiently. 3D CAD/CAM design and patternmaking and virtual prototyping mean that Bradken’s designers can take a few days to come up with a solution that might previously have taken weeks. For instance, Bradken’s design department is often called upon by its OEM clients to develop consumable replacement components to be fitted onto their existing machines. A product can be modeled, modified and developed according to exact specification in terms of dimension, surface finish and so on. Innovation is an ongoing process and involves continuous improvement to develop products that are superior to the original. As Mr Rowett says, “The key emphasis is on creating better value for the customer. When we say ‘differentiated’ products, we don’t mean different for the sake of it. We mean ‘better’. We can solve issues that perhaps only became apparent once the machines were in use. It’s a process of constant evolution.”

Moving forward In Europe, Bradken has traditionally focused on the power and cement industries. How-

ever, Mr Rowett tells us that this is not likely to be the focus for future growth: “It’s simply down to the fact that a lot of the technologies or processes used for these sectors are gradually becoming obsolete. Instead, we will be developing in other areas. For example, at the moment, we are very strong in the European dredging industry and we see good prospects here for the future.” It is also possible that the group may set up manufacturing in other European countries. At the moment, it either exports its castings from the Scunthorpe and Darlaston foundries, or hires third parties to manufacture in Europe to Bradken’s own designs. He concludes: “Whether or not Bradken sets up manufacturing elsewhere in Europe will depend upon both where the opportunities lie and how economically viable it is to do so. But this is n certainly a possibility for the future.”

Capital Refractories specialises in the supply of refractory linings and associated products to the metal melting, foundry and cement industries around the world. The company manufactures a wide range of dry vibration rammable products for lining coreless induction furnaces, vacuum coreless induction furnaces and channel induction furnaces for the melting of steel and high temperature alloys, iron, copper, bronze, aluminium and masteralloys. Capital Refractories is one of the largest independent refractory companies in the UK and operates on a global scale with clients in over 30 countries. Capital has been manufacturing, supplying and installing high quality refractory products to metal melters for almost 50 years. Please visit www.capital-refractories.com for the contact details of our distributors worldwide. Capital Refractories Limited Station Road, Clowne, Chesterfield, S43 4AB, UK Tel: +44 (0) 1246 811163 Fax: +44 (0) 1246 819573 Email: enquiries@capital-refractories.com

Industry Europe 107

HEAVY LIFTING Bridon’s high performance wire and ropes are meeting the most demanding challenges in construction, mining and oil and gas extraction around the world. Peter Mercer reports.

108 Industry Europe

ridon International is the world’s leading specialist in the manufacture of steel wire and ropes for technically demanding applications in mining, construction, offshore oil and gas and in many other specialised areas of engineering. Its steel and wire rope has been used in high-profile projects across the world, from Wembley Stadium and the Newport City Bridge in Wales to the Inchon Munhak Stadium in Korea and the Kiev Olympic Stadium. “There are many rope manufacturers across the world but I think it’s fair to say that Bridon has no real direct competitor,” says managing Director Jonathon Templeman. “We produce technically advanced, very high performance ropes and wires that are almost like a machine – they are highly engineered, with moving parts that often require lubrication and they can cost as much as £1 million for a single rope. The core of our business is very heavy lifting – ropes for deep shaft mines, for example, can go down to more than 3 km in a single fall and deepwater offshore lifting can also require 3 km ropes that have to be able to withstand extreme pressures, low temperatures and corrosion from the sea. “Modern rope design is essentially the art of an intelligent compromise between strength and flexibility. Static and structural ropes priori-

tise strength because they don’t need to bend much but ropes for mining or offshore mooring must be able to cope with movement.” Bridon was formed as a company in 1924 from an amalgamation of wire rope producers, the oldest of which dates back to the late 18th century. In 2008 it was acquired by the specialist manufacturing investor Melrose PLC. Headquartered in Doncaster, South Yorkshire, Bridon currently operates eleven manufacturing units worldwide, four in the UK, three in North America and one each in Germany, China, Indonesia and New Zealand.

Neptune Quay In November 2012 Bridon opened its newest manufacturing facility, a state-of-the-art factory at Neptune Quay on the banks of the River Tyne that is capable of producing the largest and most complex ropes in the world, with pieceweights of up to 600 tonnes, for the offshore oil and gas industry. Neptune Quay is home to the world’s largest rope-closing machine (the stages of rope production include drawing the wire, stranding it and then closing it around a core). This machine, which was constructed to Bridon’s own unique specification, is enabling the company to produce far more complex ropes than has ever been possible before in such

large weights. These highly engineered ropes feature enhanced breaking loads, optimised bend fatigue performance, effective lubrication and minimal rotation under load. The Neptune facility ships to the company’s customers across the world and is a key element in its strategy of expanding into a range of developing markets where its ropes are used in the most challenging environments where they have to withstand the ravages of salt water and temperatures down to minus forty degrees centigrade. It has a central role in Bridon’s vision for the future and will act as a base for technological innovation in rope manufacturing across the world. “Neptune Quay is now our most important site for serving the offshore industry – its waterside location means we can load directly on to supply vessels and we have an innovative transport stander that can move units of more than 600 tonnes,” explains Mr Templeman. “But our nearby Willington Quay factory continues to produce many of our core products for construction, mining and industrial applications. Crane ropes, for example, for ports, steel mills and construction projects are made there. And at our headquarters, the Doncaster Wire Mill and Ropery, we have a 60,000 tonne wire mill that supports all the UK plants and the plant in Germany.” Industry Europe 109

Technology innovation Doncaster is also home to Bridon’s new Technology Centre which was opened in February 2013 specifically to lead the development of the world’s most advanced offshore ropes. However this major investment in personnel, unique test equipment and forensic laboratories will also advance the development of rope technology across Bridon’s core markets of mining, construction and fishing as well as in oil and gas. “As well as playing a key role in new product development the BTC also offers our customers an extensive range of unique facilities for testing, analysing and verifying new and used ropes. If a rope fails – and it won’t often be one of ours – we can carry out a detailed inquest,” says Jon Templeman. “The Centre also expands our ability to do more joint technological development with our customers. In the lifting world the

110 Industry Europe

demand is for longer, stronger and lighter ropes – offshore work is much deeper than in the past and mining is going to similar depths so customers want ropes that put the lightest possible load on their winches or cranes but still have massive lifting capabilities.” Recent technological innovations from Bridon include the Big T Bristar dragline rope that has been engineered to withstand the most challenging dragline applications in open-pit mining and the Tiger 24 LS hoist rope that delivers the lowest possible cost per tonne hoisted. The Endurance Dyform DSC8 crane rope is another significant advance with its very high breaking force and crush-resistant characteristics. “In the DSC8 we achieve the superior crush resistance by compacting the metal and it also benefits from the expertise we have developed in the technology of synthetic cores,” explains Mr Templeman. “Rather than injecting

the plastic to form the core we extrude it at the same time as drawing the rope. The next generation of ropes will be hybrid products that blend steel and synthetic strands in the same rope. We are currently doing a lot of research in this field.”

Global opportunities The global oil and gas production industry is currently Bridon’s fastest growing customer sector, making up 35 per cent of current business and expanding rapidly in regions such as the North Sea, the Gulf of Mexico, West Africa and Brazil. “Mining until last year made up around 20 per cent of our business but has fallen away following the problems in the global industry,” says Jon Templeman. “Fishing is a fairly small sector but it is solid and growing as fishing quotas are increased across the world while the construction and industrial demand tends to

T: +44 (0)1665 712800 E: enquiries@gvengineering.co.uk W: www.gvengineering.co.uk We offer welding and fabrication services, machine shop facilities and maintenance and installation services. We are also able to offer an engineering design service, enabling us to design and build equipment to our customers’ requirements. We also specialise in the design and manufacture of conveying equipment, and have a wide range of experience in chain, belt and elevator conveyors.

MAINTENANCE

WELDING & FABRICATION

MACHINING FACILITIES

24hr RAPID RESPONSE

follow the overall growth – or lack of it – in the UK economy.” Of course, Bridon serves customers in the construction industry across the world. A recent major project was for the new Doha International Airport for which Bridon supplied a total of 1400 stainless steel ropes, mostly to support a car park canopy. The 150 tonnes of Dyform strand was manufactured at Gelsenkirchen and delivered in time for the grand opening of the airport on Qatar National day in December 2012. Looking to future growth prospects, Mr Templeman sees opportunities across the world, in Asia, Africa and South America. “In China there is continuing rapid growth in the construction of ports and of other infrastructure projects and that means many more cranes that need our hoist ropes. The offshore oil and gas industry in China is also growing so that’s another valuable market for a company with our unmatched expertise. There is obviously huge potential for the offshore industry in Brazil, where we opened a warehouse and a service centre last year, and mining remains a strong market there as well as in Chile and Peru. Indeed, as our business grows in the region we may well find we need to set up a manufacturing operation in Brazil. In south-east Asia we already have facilities in Singapore and Indonesia and we have recently expanded our sales office in Russia and set up another in Poland. Africa too has huge potential for growth in oil and gas, mining and infrastructure projects. In fact, wherever in the world there is a need for really heavy lifting, Bridon n will be providing the answers.” Industry Europe 111

THE FULL SERVICE PROVIDER FLSmidth is a leader in the supply of equipment and services to the global cement and minerals industries. Peter Mercer reports on the company’s success in leveraging its expertise in cement technology into minerals processing and its fast-growing customer services business.

LSmidth won its first contract for a cement plant, near Limhamm in Sweden, in 1887. Today the Danish company supplies the cement and minerals industries globally with engineering, single machines and complete processing plants as well as comprehensive maintenance and support services that range up to the complete operation of customers’ processing facilities. FLSmidth currently offers its full service solutions in six core focus industries: cement, coal, iron ore, copper, gold and fertilisers; its technologies and services range from material handling in the quarry through the entire processing operations of the end product. Headquartered at Valby, near Copenhagen, a site it moved to in 1956, FLSmidth today employs more than 15,000 people all over the world and had revenues in 2013 of €3.6bn. Until the later part of the 20th century the company was focused on designing and 112 Industry Europe

producing machinery for the cement industry. It introduced the coal-fired rotary kiln to the European market at the end of the 19th century – an innovation from the USA that revolutionised cement production – and by the 1950s FLSmidth machinery was used in 40 per cent of all cement production in the entire world. In the following years the company continued to introduce new machines and processes that reinforced its position as a technology leader in the industry, including the ATOX vertical mill, which combined the grinding, separation and drying processes into a single unit. Since the 1980s FLSmidth has sold more than 300 ATOX mills.

Refocusing and expansion Then, following the economic recession of the 1980s, FLSmidth began to diversify into a number of other businesses until it had grown into a Group of some 125 companies in which two thirds of sales were in non-core

activities. However at the beginning of the 21st century it was decided to dispose of the Group’s non-strategic interests and refocus on the development and production of equipment, production plants, systems and services for the global cement and minerals industries. This return to the company’s roots was marked in 2006 when it was awarded a contract by Holcim to supply the world’s biggest cement production line at Ste Genevieve, Missouri, in the USA. At the same time the company began a series of strategic acquisitions that would enable it to expand its services into the minerals industries. Perhaps the most important of these was the acquisition in 2007 of the process division of the Canadian company GL&V, consisting of Dorr-Oliver Eimco and Krebs Engineers. The expertise in separation equipment for the metals and minerals industries that this purchase brought to the Group enabled FLSmidth to offer customers

the entire flow sheet of a typical minerals plant, from raw material extraction to the final end product. “Our strategy is to be the leading singlesource supplier in all the industries we serve,” explains President of the Cement Division Per Mejnert Kristensen. “We have built up this position in the cement industry over many years and, thanks to our strategy of key acquisitions, we can now offer the minerals industry the same complete service. In fact today around one third of our business is in the cement industry and two thirds in industries such as copper, gold, iron ore and coal. “This is vital to our continuing success since the cement industry typically experiences booms and downturns over cycles of six to eight years; so by leveraging our experience and technological expertise in cement equipment and plants, we can smooth out the market fluctuations. This expansion was reinforced by the global branding strategy that we adopted in 2009 – ‘One Company – One Name – One Source’ – highlighting our position as a supplier of the whole value chain to both

the cement and the minerals processing industries. So customers in the copper industry, for example, can now source from us everything they need for the complete processing operation – equipment for crushing, grinding, filtration, flotation, material handling, screening, thickening and even for sampling and on-line analysis.”

Core cement competence All of this market expansion has, of course, been made possible by FLSmidth’s experience over more than 130 years in undertaking large and small cement plant design and construction around the world. Over the last eight years the company has delivered more than 100 plants in Europe, Asia and Africa alone. Its ‘One Source’ strategy enables it to offer customers everything from process design and project management to equipment supply and commissioning, even including training for the operators who will run the plant. Recent projects for the global cement industry have included a complete new 6,000 tonnes per day production unit near Benin City in Nigeria. The contract between

FLSmidth and BUA International, the owner of local cement producer EDO, included mechanical and electrical engineering, equipment supply and sea transport, supervision of installation and commissioning and the training of staff. The complete package of FLSmidth machinery supplied included EV crushers for limestone and laterite, an ATOX 50 raw mill, a five stage in-line calciner preheater and two support kilns, a Cross-Bar clinker cooler, UMS cement mills and four packing plants. And when Russia needed to produce more cement in the run-up to this year’s Winter Olympics, FLSmidth helped to dramatically increase capacity at the JSC Verkhnebakansky cement plant, which is located east of the Crimean peninsula. The project involved creating a new production line alongside the existing small line without disrupting current production. FLSmidth developed an energy-efficient solution using the latest technology and supplied all the machinery for the plant as well as a stateof-the-art laboratory and control systems, including a RoboLab industrial robot. The company supplied a total of 4,900 tonnes

Industry Europe 113

We are located in Romania, Resita, a city with an old industrial history, and many manufacturing possibilities. We manufacture: • Welded assemblies • Steel structures • Rubber and metallic rubber vulcanised parts • Machined parts We have the following certifications: ISO 9001:2008, DIN EN 15085-2, EN3834-2, and we are approved by the Romanian Railway Authority for the manufacture of vulcanised parts. We can be reached at telephone 004.0255.213.817 and e-mail plastomet@plastomet.ro Proud to be Flsmidth suppliers.

LBH INTERNATIONAL A/S Main supplier for FLS Denmark.

Involved in expansion Phone: +45 65324611 | E-mail: sales@lbhint.com

www.lbhint.com

of key equipment and developed the documentation for manufacturing and the specifications for purchasing the remaining 13,000 tonnes. The new line has a capacity of 6,200 tonnes of clinker per day, making it the largest dry cement plant in Russia. It features one of the largest ATOX mills FLSmidth has supplied. During construction the old line never stopped production and, in fact, cement produced by it was used in the construction of the new line.

Cutting edge technology In all its business areas FLSmidth leads the way in improving environmental protection through cutting edge technology and optimised product manufacturing, fabrication and installation. “Our R&D activities are a huge part of the business we carry out in-house and our Dania R&D Centre in Denmark is the largest facility of its kind in the industry,” says Per Mejnert Kristensen, “Cement production is, of course, extremely energy intensive so a lot of our work in recent years has been in improving energy efficiency but we are also putting a lot of effort into reducing emissions. Our HOTDISC combustion system was introduced 14 years ago but it remains a highly effective process for burning alternative fuels in a controlled and environmentally-friendly manner. It can burn all forms of solid waste, from sludge or grains to huge used tyres or large pieces of timber such as old telephone poles and so turns otherwise useless and environmentally challenging solid waste into useful energy in a completely safe and economical way. Many new cement plants today are equipped with this technology.” FLSmidth is also an industry leader in the development of air pollution technology and offers a wide range of solutions to reduce particulate matter and gaseous emissions. With more than 8,000 systems installed worldwide, the company is a one-stop source for helping customers comply with environmental regulations all the way through from project development to after-sale services. FLSmidth is also leading the way in waste heat recovery systems. Its Kalina Cycle technology is a unique system that uses a binary work-

ing fluid of ammonia and water to achieve improved heat transfer and higher efficiency. The system is ideally suited to the waste gas streams of the pre-heater and clinker cooler vent of a cement plant.

Expanding services In 2010 FLSmidth won three major contracts for the complete operation and maintenance (O&M) of customers’ cement plants. At the time this was a new line of business which involved taking on the complete responsibility for staffing, equipment maintenance and spare parts and technical support for an agreed time span and within agreed production targets. “Our O&M operations have seen huge growth in the last four years,” says Mr Kristensen. “FLSmidth has more than 100 years’ experience in designing, manufacturing and installing cement plants all over the world as well as in servicing these plants and supplying spare parts. But now we are increasingly involved in taking over the operation and maintenance of cement plants as well and we are extending our O&M business into the minerals industry too.” “In effect we agree to take over the operation of our customer’s plant, guaranteeing output levels for an agreed price per tonne so the customer is only charged if we perform. By turning fixed costs into performance-linked variable costs, O&M offers our customers an attractive business solution and it helps us to smooth out the cyclical variations in the capital side of our business. The demand for complete new cement or minerals plants may go up and down over the years but existing plants need to be operated and maintained all the time.” Today long-term O&M contracts are showing significant growth potential in all six of FLSmidth’s focus industries, an important development since copper and gold have already joined cement as the company’s most important industries overall. A further step in this strategy was taken in 2012 with the acquisition of Ludowici, the Australian specialist in coal centrifuges and vibrating screens for the minerals industries. This move has given FLSmidth the strategic capability to offer a complete coal prepara-

tion flowsheet and significantly boosted its programme to further expand its vital Customer Services business.

Old and new customers “We are very excited about the growth opportunities in our Customer Services division, particularly in O&M contracts, but we are still very active in capital projects all over the world,” says Per Mejnert Kristensen. “We have long-standing relationships with many customers for whom we continue to deliver new and more efficient plants and we are also winning new orders in fastdeveloping regions such as the Middle East and Africa.” The Indonesian cement producer PT Semen Gresik, for example, is a well-known customer; cooperation between the two companies goes back to 1910 and the commissioning of PT Semen Padang’s first cement production line. The latest order, the fifth from the Indonesian company, came as recently as February of this year – following another order only two months previously – and is for a €42m greenfield cement plant in Central Java. Equipment for the new plant includes a raw mill, coal mill, preheater, kiln, burner, clinker cooler and silo equipment as well as a complete control system for the entire plant. By comparison, Qatari cement producer Al Khalij Cement is a relatively new customer, although FLSmidth has already supplied it with a cement plant in 2007. In December 2013 came a follow-up order for a duplicate cement production line for Al Khalij’s plant 100km east of Doha. This line is being supplied in cooperation with China’s CNBM International Engineering, which is the turnkey contractor for the project; FLSmidth’s role is to engineer the plant and supply the main equipment, which includes conveyor transport systems, mills, a complete pyro line and electrical and automation systems. “The FLSmidth and CNBM offering combines environmentally cutting-edge process know-how, engineering and equipment supply from FLSmidth with a cost-effective EPC contract,” says Per Mejnert Kristensen. “Together we can offer the customer the n best of both worlds.” Industry Europe 115

Metso’s mining, construction, automation and oil and gas businesses have been separated from its pulp, paper and power business to form a ‘new’ Metso that aims to deliver stronger growth and improved profitability. Peter Mercer speaks to Metso’s President and CEO, Matti Kahkonen.

SHARPENING THE FOCUS AT

the end of 2013, Finland’s Metso Corporation, the global supplier of technology and services to the mining, construction, pulp and paper, power and oil and gas industries, completed a demerger into two separate companies. Metso’s pulp, paper and power businesses have been transferred to a new company, Valmet, while the mining, construction, automation and oil and gas businesses remain part of Metso. 116 Industry Europe

Valmet, of course, is not at all a new name in Finnish industry. In fact, Metso itself was created in 1999 through the merger of Valmet, at that time one of the world’s most important paper and board machine manufacturers, and Rauma whose operations were focused on fibre technology, rock crushing and flow control solutions. So if it made sense to merge the two businesses in 1999, why has Metso’s board decided that they would now be better able to

profit from growth opportunities as separate companies? Matti Kahkonen, Metso’s President and CEO, says “Fifteen years ago, putting Rauma and Valmet together created a strong, broadly based company that could effectively compete on the global market but in the years since then both sides of the business have grown through acquisitions and investment and we are confident that they are both now large enough and competitive enough to succeed as separate players in the global market.

They have always been essentially different businesses, with their own core technologies, markets and customers, and as stand-alone companies they will now be able to focus more closely on their respective markets, speed up their strategy implementation, plan more effectively and improve their profitability. “We believe that our mining, construction and automation business will benefit from the independent governance and strategy that a separate company makes possible. Both Metso and Valmet are now sizeable, globally leading businesses with strong balance sheets, and strengthening their respective cultures, goals and their ability to execute their strategies independently will enable them to realise their full potential in the future.”

Intelligent solutions The new Metso is a global leader in providing processing equipment and services to its customers in the mining, construction and oil and gas industries. Its focus is on the continuous development of ‘intelligent solutions’ that improve sustainability and profitability, and on growing its services business through its worldwide networks and its deep understanding of its customers’ processes. Headquartered in Helsinki, the company employs around 16,000 people in 50 countries and had a turnover in 2013 of €3.9bn. It operates in two business segments: mining and construction, which delivers minerals processing solutions, crushing and screening equipment and services, and automation, which consists of process automation systems, flow control and services.

Globalisation is continuing to drive up demand for minerals and for construction materials and therefore for the equipment and services for which Metso enjoys a worldwide reputation. But at the same time raw materials and other resources are becoming scarcer and so plants are always looking for new ways to be more efficient in their operations and energy use. It is to meet these demands that Metso is developing its automation and intelligent processes and service solutions. Metso’s flagship automation system for minerals processing and aggregate production is Metso DNA, a scalable system that can be expanded step by step to build a complete plant-wide system that can include distributed control systems, advanced process controls, analysers and information management. Over the years this system has been delivered, for example, to mining customers in Scandinavia, Europe, Russia, Brazil and China. Indeed one of Metso’s long-standing customers, the Yara Siilinjarvi phosphate mine in Finland, has been boosting its productivity with the Metso DNA automation system since 1979. With accurate measurements and analyses, the plant has been able to optimise both the process and the use of raw materials. Being able to control the entire production chain has increased control accuracy and improved both the quantity and quality of the product of the plant. “Our automation segment’s process automation solutions are meeting the growing needs of our customer industries to improve process efficiency as raw materials

and energy sources become scarcer and costs increase,” explains Matti Kahkonen. ”With embedded automation systems, our machines are becoming more intelligent but we are also now able to offer systems that enable machines to communicate with each other so that the entire process of quarry operation, for example, can be automated. Automation is vital in helping miners to get more out of less, but it also has huge benefits in dramatically improving safety levels by removing operators from the immediate vicinity of the machines and reducing costs by enabling machines to be run from faraway locations with fewer skilled mining experts required on site.” Metso DNA systems have recently been ordered by SSGPO in Kazakhstan, Codelco El Teniente in Chile and Norilsk Nickel Kolskaya GMK in Russia.

Service across the world Today services already account for more than 50 per cent of Metso’s net sales, and the new company intends to further strengthen its position by continuing to expand its offer in both parts and services. Metso spare parts are designed in-house and manufactured according to strict design parameters, while its expert field service teams provide on-site support to its customers across the world. Metso also offers a global consulting service to the mining and construction industries through its process pechnology and Innovation division. The particular focus of this division is providing industry with total process integration and optimisation services; these

Industry Europe 117

Katsa Oy Metso Minerals has been cooperating with Katsa Oy Ltd for decades. According to Mikko Takaniemi, Driveline Specialist, Metso Mining and Construction, “The communication between ourselves and Katsa’s engineering department works seamlessly, and their technical knowledge is extremely impressive. With Katsa’s gearboxes we have been able to achieve the highest levels of efficiency and reliability in our equipment.”

include optimisation of mining (drilling and blasting), comminution, flotation and dewatering processes with the objective of reducing operating costs, increasing production rates and improving overall process, energy and water efficiency. “Metso is the leading services provider for the global mining and construction industries and we want to further develop and grow the business through stronger cooperation across our businesses,” says Matti Kahkonen. “Our machines are enormously robust and well-engineered and they last for years, but crushing rock is heavy work and so there is a constant demand for wear parts. This continuous demand of spare and wear parts is crucial in an otherwise cyclical and capital intensive industry. For example after the collapse in worldwide demand after the crisis of 2008, our capital business fell by 70 per cent but our income from services contracted by only 20 per cent.

Matti Kahkonen, Metso’s President and CEO

“But service today includes a lot more than spare parts. We now offer lifecycle service contracts in which we take over the service requirements of our customers’ equipment for extended periods, and we can also help them combine intelligent machines into the optimum integrated site process system. Over all we utilise our deep technological and process know-how to deliver intelligent services solutions that are designed to make a substantial difference to our customers’ businesses over the whole lifecycle of their equipment and processes.” To drive the growth in its services offer Metso has just appointed a new President of the Services business line in mining and construction. Juha Silvennoinen, formerly with ABB, is now responsible for the development of the company’s services business by strengthening synergies and realising new business opportunities.

Oil and Gas The demerger gives a new prominence to the company’s oil and gas business. Metso is already one of the largest global suppliers of oil and gas valves and the company sees good opportunities to expand what is already a €600m worldwide business. Metso delivers a wide variety of valves to the chemical and petrochemical industries, including control valves, emergency shutdown and blowdown valves and many other critical automated on-off applications. It has also supplied large quantities of valves, actuators and intelligent controllers to bioethanol and biodiesel plants across the world. Ball, butterfly and control valves from Metso are also performing reliably all over the world in the low temperature, cryogenic and ambient conditions required

by the LNG industry. In fact, more than 60 per cent of the world’s LNG flows through Metso’s Neles and Mapag valves. Drivers for growth in this business include not only the expansion of the LNG industry in the Middle East and Asia Pacific but also the shale gas revolution in the USA.

Global opportunities However, Metso plans to increase its presence in all its business areas throughout the BRIC countries and in other global growth areas. Last year it acquired, for example, a Chinese steel foundry which will improve its ability to supply wear parts to mining and construction industry customers in China and other markets in Asia Pacific. It also acquired the Chinese construction equipment supplier, Shaorui Heavy Industries, one of the leading mid-market producers of crushing and screening equipment in China, and formed a 50-50 joint venture with LiuGong Group Corp. Ltd to develop the track-mounted crushing and screening business in China. “We are also looking very closely at further opportunities in Sub-Saharan and South Africa, regions where we are already wellestablished with more than 1400 employees working in the continent,” says Matti Kahkonen. “There are huge natural resources in Africa, which means a growing demand for our mining equipment, and at the same time the region is having to develop its infrastructure – roads, ports, terminals and so on – very quickly, so our construction machinery is needed there. We believe that the more tightly focused ‘new’ Metso will be better able to build on these and all other global opportunities to achieve faster growth and improved n profitability in the years to come.”

FAST-TRACK TO EFFICIENCY The Siemens Rail Systems Division is a leading international provider of rail vehicles and related services. The company’s portfolio comprises the entire spectrum of railway rolling stock including the manufacture of advanced high-speed railway trains. Philip Yorke looks at the global company’s three business units and its latest news stories. These include the prestige Thameslink Programme, its major railway train contract in Finland and its ‘Stars for Rail Systems’ supplier awards event.

iemens Rail Systems Division is subdivided into three business units. The company’s High-Speed and Commuter Rail unit based in Krefeld, focuses on the manufacture of intercity and high-speed trains, while in Vienna, the Urban Transport unit manages all of Siemens’ business activities in the fields of metro trains,

120 Industry Europe

trams, light rail vehicles, passenger coaches and mass transit vehicles for driverless operation. The company’s Locomotives and Components unit is based in Munich-Allach and is responsible for all locomotive traction units and components. However, there is yet another support division, which is known as the Customer

Service Unit which offers customers a range of infrastructure services spanning the entire lifecycle of a rail system. Siemens is also the world’s leading provider of eco-friendly technology whose sophisticated products and solutions have enabled its customers to save more than 320 million tons of carbon dioxide (CO2) in 2013. This amount corre-

sponds to the total CO2 emissions produced by many of the world’s most populated cities combined.

ger comfort and flow, it also offers the higher safety standards imposed on mixed traffic and main railway lines.

Leading in light rail vehicles

Desiro-City success

Siemens is the market leader in the supply of light rail vehicles (LRVs) in North America, having built more than 1000 rail vehicles for 17 cities in the USA and Canada. One in every three light rail vehicles in North America is a Siemens vehicle. These advanced vehicles are built at the Siemens state-ofthe-art facility in Sacramento, California. This is the only permanent light rail manufacturing plant in the USA. Having provided vehicles for the North American market since 1975, the company has constructed a new assembly facility in South Sacramento in 1992, and a further $10 million facility was added three years later. Today Siemens produces the S70 vehicle family, developed especially for the American market. With its low-floor construction and optimal passen-

Siemens recently secured its biggest single contract in the UK market for its Desiro–City trains and maintenance depots for the prestige Thames link north-south commuter link. The €1.8 billion order is for the supply of 1140 new commuter rail carriages and for the long-term maintenance of the fleet. “The order is an impressive reminder of our leading position in the British rail market, where we enjoy an excellent reputation. Our commuter trains are seen as the most reliable in the country. Annually more than 350 trains travel over 80 million kilometres in Great Britain each year,” says Jochen Eickholt, CEO of Siemens Rail Systems. For the Thameslink project, Siemens invested around €50 million in the development of a new train platform. The new

Desiro City for suburban, regional and main line transport reduces overall energy consumption and track wear by up to 50 per cent compared to its predecessors. It is not only in the UK that Siemens is able to win major contracts. In Finland the Finish State Railways placed an order worth more than €300 million for an additional 80 locomotives including maintenance. In addition there is an option for a further 97 locomotives. This was the first order placed for the new Vectron broad gauge version. The all-new locomotives are designed to operate reliably even under extreme climatic conditions in Scandinavia in their long service life. “The selection was made after long and careful examination, and the electric locomotive manufactured by Siemens is well suited to the challenging conditions in Finland,” said VR Group’s president and CEO Mikael Aro. Authorisation for the new Vectron locomotives, which are based on a technical

Industry Europe 121

Glas Trösch AG Rail: Winner of the “STAR” in interior category from Siemens in 2014 Glas Trösch AG Rail has been nominated by Siemens Rail System Division as best supplier for the third time. After 2012 we were again awarded a “STAR” for the best supplier in the category “Interior”. Besides outstanding quality and reliability, product innovation plays a significant role for our company. Thanks to our company-owned developmental team, motivated staff and state-of-the-art manufacturing facilities, Glas Trösch AG Rail counts as one of the most competent suppliers worldwide in the field of high-end windscreens and cabin glazing for the most important train manufacturers.

platform, have already been granted for Germany, Austria, Hungary, Poland, Romania and Sweden.

Latest simulation technology The Siemens Vectron bogies are developed and manufactured in Graz, Austria. This is the world’s leading centre for bogie technology and one of the largest production facilities in the world for railway bogies. The units manufactured at Graz are installed in metros, trams, train-sets, high-speed trains and locomotives. The complete development expertise for bogies is concentrated at Graz where the latest simulation technology is used in product development. Among the 124 Industry Europe

simulations performed are those for riding stability, safety against derailment, clearance requirements and wheel and rail loading. Strength calculations support the overall development process, and production and robotic systems are also simulated and optimised early in the construction phase. The Graz plant covers a total area of 70,000m2 with production facilities and buildings occupying over 46,000m2. At Graz the emphasis is on car body construction, mechanical processing, painting and assembly.

Rising Stars At Siemens, suppliers who provide consistent, dedicated and innovative services are recognised and rewarded when it comes to the placing of future orders and are entered into the company’s special competition: ‘Our Stars for Rail Systems’. The winners of this prized ‘seal of excellence’ are selected from seven different categories and are subsequently presented with an award at an exclusive prize giving event. The seven categories are: carbody, interior, drive/brake, control and communication, services and project execution. On 25 March this year the following winners were announced: Jilin Midas Aluminium Industries Co for Carbody, Glas Trosch AG Rail, for interior, SKF Osterreich AG for drive/brakes, and Bachleitner & Heugel Elektronik OHG, for communications and control.

In addition, the following companies were also awarded stars: MTM Power Messtechnik Mellenbach GmbH for commodity parts, 1st in rail Ltd for service and Volante Verkleidungssysteme GmbH for Project Execution. Other nominees included K-Supra s.r.o., Hammerer Aluminium Industries GmbH, Techno-Composites Domine GmbH, Satek GmbH, Televic Rail NV, Lütze Transportation GmbH, PMA Deutschland GmbH, Sika Deutschland GmbH, PCS Power Converter Solutions GmbH, HOPPECKE Batterien GmbH & Co. KG, Zonegreen Ltd and Tiekra Service GmbH. The nominees are selected by a jury composed of representatives from Siemens Rail Systems management, strategic purchasing and the company’s other relevant business units.

Demand grows for Velaro high-speed trains The Volaro high-speed train from Siemens is the most successful in the world, with more than 160 trains in operation globally. Not only does this advanced train minimise operating and maintenance costs, but emissions are also extremely low in relation to the high transport capacity. The Velaro D is aerodynamically optimised and a fully elevated roof section reduces the sonic boom in tunnels. Energy efficiency is also enhanced by the feeding of surplus braking energy back into the power grid.

The German Railway (Deutsche Bahn) has already taken delivery of 15 eight-car high-speed trains from Siemens. The company has been providing comprehensive expertise in project management for projects such as this for more than 160 years.

Predictive maintenance Siemens trains are the most reliable in the United Kingdom thanks to the predictive maintenance carried out at the company’s facility at Kings Heath, Northampton. If train components are continuously monitored and sources of errors are eliminated at an early stage, then rolling stock can achieve close to 100 per cent reliability. The status of each of the 74 multipleunit trains serviced by more than 100 employees not only keep the 67 Desiro UK trains in good condition around the clock, but they also maintain seven 25-year-old English multiple train units. In the UK, predictive maintenance is a common method of achieving availability rates of approximately 99 per cent in spite of the complex structure of rail operators, leasing companies and repair shops. The UK’s regional trains manufactured at the Krefeld-Eurdingen plant in Germany are serviced and repaired in ten British depots including the UK’s biggest depot at Kings n Heath, Northampton. For further details of Siemens Rail Systems and services visit: www.siemens.com Industry Europe 125

Electric multiple units ZFBH 4412 & HZ 6112

BUILDING EFFECTIVE PARTNERSHIPS Leading Croatian rolling stock producer Končar Electric Vehicles has recently signed a contract worth €220 million to deliver 44 low-floor multiple units for Croatian Railways Passenger Transport. Vanja Švačko spoke to Mr Ivan Bahun, president of the managing board, about this deal and other current projects.

T Ivan Bahun

he main product range of Končar Electric Vehicles comprises electric tramcars, locomotives and electric and diesel multiple units. The company was established in 1970, when the first locomotive was produced. In four decades, the company has expanded its products portfolio, offering in addition modernisation and maintenance of electric vehicles as well as development and production of their associated equipment and components.

The company employs between 240 and 350 workers, depending on the project and structure of the deal. Since it is a part of the Končar Group, altogether more than 1000 staff are engaged in dealing with transportation and towing.

Competitive edge through synergy From the beginning, Končar Electric Vehicles kept on improving its portfolio and delivered a modern thyristor locomotive. Soon after, a

Low-floor tramcar TMK 2200-K

Electic multiple unit production

Low-floor multiple unit cockpit

Electric locomotives class HZ 1141

solution was found for converting old diode locomotives to the thyristor type. In parallel the company took over development and production of tramcars and multiple units, which in 2005 resulted in the serial production of low-floor trams and in 2010 with production of low-floor electric trains. The company delivers vehicles for regional, urban and suburban traffic. All Koncar’s work is carried out in compliancy with the latest European and international standards, including ISO 9001:2008 and ISO 14001:2004. “We are part of the Končar Group, which represents our business strength,” explained Mr Bahun. “In development and production we rely to a large extent on our partner companies within the Group. Through that

synergy we achieve a strong competitive advantage because in all stages of our work we are able to monitor and improve the development and production process.” Koncar Electric Vehicles works in close collaboration with its partner companies within the Group which provide major subsystems such as transformers, traction motors, power electronics and microprocessor control systems, bogie frames etc.

factory that needs to be modernised on a regular basis. The second category of investments is aimed at market and customer-driven product improvement to add flexible features. For the last seven years we have been investing in innovations in order to make our business fit for a new era.” Electric low-floor tramcars and low-floor trains are new products that demand a lot of investment to reach a viable market share. The company is also concurrently hard at work on projects of multi-system electric locomotive and vehicle power systems focusing on greater energy efficiency.

Intuitive investments Končar Electric Vehicles focuses its investments in two directions. The first is to support continuous technological progress and to process innovations required to maintain the highest quality of products and shorten delivery time. Mr Bahun said, “We have an up-to-date

Riding high In January this year Končar Electric Vehicles signed a €220 million contract for the

Tramcar Production

delivery of 32 electric multiple units (EMU) and 12 diesel electric multiple units (DMU) to Croatian Railways Passenger Transport. “Our client wanted both trains to have the same platform in order to keep down maintenance costs. With this new contract we have not only ensured an excellent deal in a financial sense, but have also guaranteed employment security for a large number of employees in the coming five to seven

years,” said Mr Bahun. “Our job does not end with selling our products. It is a longterm partnership with clients in which we continue to offer services and maintenance of the products throughout their lifespan.”

Limitless prospects Membership in EU has erased some formal barriers and given more room for expansion outside the region and improving

the sustainability of the business. Končar Electric Vehicles serves mainly the Balkan market (former Yugoslavia, Bulgaria, Turkey and Romania). However, plans are set to go beyond that region, where the competitive advantages can come to the fore. “The main advantages of our products lie not only in their quality, but also in flexibility to meet special requirements with the implementation of new technologies,” stated Mr Bahun. “Places

Low-floor tramcar TMK 2200

to expand are those where we can look for greater localisation of production and technology transfer and where we can connect with other companies as partners. Europe is not our limit. Although on a global scale we cannot be compared with large companies, in certain segments of our work we have a very attractive offer, years of international market experience and excellent references to act globally.”

One of the ways that brings the Croatian company closer to well-known European producers is being part of programmes for the development and production of main subsystems for rail vehicles. Some of the components (wheels, doors, windows, air-conditioning) are purchased from leading vendors such as Henschel, IFE, Scharfenberg, Knorr-Bremse, Voith etc.

Končar Electric Vehicles also cooperates with Siemens and other large companies. Mr Bahun explained, “Our key strategy is to take advantage of these high-profile connections and to turn them into knowledgeexchange relationships that enable us all to n become more competitive together.” Visit: www.koncar-kev.hr

Koncar - Electric Vehicles Zagreb

ADVERTISERSINDEX

A Ahlstrom Akcros Chemicals Akzo Nobel

54 54 50

Glas Trösch AG Green Air Energy Grupa Azoty Gruppo Donelli Gruppo Inox GV Engineering

124 81 55 92 92 111

P Plastomet 114 PMA AG 122 Professional Lifting Services Ltd 106 Progind Srl 64

B Balcas 41 BASF 51 BGH 118

C Capital Refractories Limited Çelikel Aluminyum Döküm İmalat San.ve Tic. AŞ Chryssafidis Citychamp Dartong ContiTech Cossa Polimeri Custom Patterns

107 73 81 75 129 65 107

D DHD Engineering Ltd 101 DMS AG 76 Dynea 61

Habasit AG 100 Hamerer Aluminium Industries GmbH 124 HME 130 HOSCH-Fördertechnik 114 Recklinghausen GmbH

I IMS GmbH

100

K Kasper Kovo s.r.o. Katsa Oy KEMONE Knorr-Bremse Knorr-Bremse Polska SfN Sp zoo Konvekta AG

101 118 59 129 89 129

Eastman 50 ELGEKA SA / Diakinisis 79 Evonik Industries AG 58

F 74 69

G Gaspari Menotti SpA 44 Gaujas Koks 40 Geberit 36

LBH International

Rocha Verde

S Satek 123 Savino Dei Bene SpA 44 Setra Group 58 SIG 114 SMT Technologies 96 SSAB 88

T Talent Plastics Herrljunga AB Techno-Composites Domine GmbH The Phoenix Abrasive Wheel Co. Ltd TWE Group GmbH

37 122 107 59

Faudi GmbH Fisba Optik AG

114

N NAF Neunkirchener Achsenfabrik AG 84 Ningbo Yujun Mechanical 97 Technology Co. Ltd Nordic Brass Gusum 36

O O’Keefe Construction 33 Omron 97

Ultimate Europe Transportation Equipment GmbH

128

V Volante Verkliedungssysteme GmbH

122

Z ZMDI 8

Industry Europe – Issue 24.5

Articles inside

Fast-track to efficiency Siemens Rail

Building effective partnerships Končar

Sharpening the focus Metso

The full service provider FLSmidth

Heavy lifting Bridon

Global airport logistics solutions Siemens

Dual success OJ Electronics

Consumables with a difference Bradken

Taking the heat off Faco

The Wielton way Wielton

Driven by innovation NAF

Spreading healthier options Minerva

Global presence, Italian roots Bitron

Wood – the sustainable choice Metsä Wood

Beam of brilliance Jenoptik

Setting new global standards Robert Bosch

A cut above the rest Savema

Building homes, making places Berkeley Group

The clean winner Gustavsberg

Changing floors Tarkett

Tunnel visionaries 20 years of the Channel Tunnel

Moving on Relocations and expansions

Winning business New orders and contracts

Bill Jamieson Slow euro recovery makes it tough for exporters

Era of change The Big Three under pressure

Technology spotlight Advances in technology

Focus on France Ian Sparks reports from Paris

Linking up Combining strengths