Уерпц45нconstruction europe july august 2015 by loodwedadd

C O N S T R U C T I O N THE MAGAZINE FOR EUROPEâ&#x20AC;&#x2122;S CONSTRUCTION INDUSTRY A KHL Group publication

www.construction-europe.com Volume 26 Number 6 July-August 2015

CE-100 p14

Engines p45

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Rental p37

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CONTENTS

C O N S T R U C T I O N

IN THIS ISSUE

Volume 26 Number 6 JULY-AUGUST 2015

REGULARS

C O N S T R U C T I O N THE MAGAZINE FOR EUROPE’S CONSTRUCTION INDUSTRY A KHL Group publication

ISSN 0964–0665 © Copyright KHL Group 2015 This issue is mailed on 8th June 2015. Subscription rates for 1 year: £205, €245, US$330. Subscription rates per single copy: £14, €18, US$25. For further information please visit www.khl.com

NEWS & BUSINESS

NEWS REPORT: FIEC

WORLD NEWS

Volume 26 Number 6 July-August 2015

ON THE COVER JCB’s Stage IV Ecomax engine. See engines feature, starting on p45

FINANCE & CE BAROMETER

www.construction-europe.com

CE-100 p14

Engines

Rental p37

Attachments p27

p45

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Circulation audited by BPA Worldwide

KHL OFFICES UNITED KINGDOM (HEAD OFFICE) KHL Group Southfields, Southview Road, Wadhurst, East Sussex TN5 6TP. Tel: +44 (0)1892 784088 Fax: +44 (0)1892 784086 e-mail: ce@khl.com www.khl.com/ce AMERICAS KHL Group Americas 3726 East Ember Glow Way, Phoenix, AZ 85050, USA. Tel: +1 480 659 0578 Fax: +1 480 659 0678 e-mail: americas@khl.com CHINA KHL Group China Room 768, Poly Plaza, No.14, South Dong Zhi Men Street, Dong Cheng District, Beijing 100027, P.R. China. Tel: +86 10 6553 6676 Fax: +86 10 6553 6690 e-mail: cathy.yao@khl.com

KHL SALES REPRESENTATIVES ADVERTISEMENT MANAGER David Stowe, UK Head Office Direct tel: +44 (0)1892 78 6217 david.stowe@khl.com UK Lynn Collett, UK Head Office Direct tel: +44 (0)1892 786219 lynn.collett@khl.com FRANCE Hamilton Pearman Tel: +33 1 45 93 08 58 hpearman@wanadoo.fr ITALY Fabio Potestà Tel: +39 010 570 4948 info@mediapointsrl.it SPAIN Mike Posener, UK Head Office Direct tel: +353 86 043 1219 mike.posener@khl.com SWEDEN, FINLAND, DENMARK, NORWAY Peter Gilmore Tel: +44 (0)20 7834 5559 pgilmores@aol.com TURKEY Emre Apa Tel: +90 (0)216 302 5382 emre.apa@apayayincilik.com.tr

LAW & CONTRACT

CECE

FIEC

EQUIPMENT

CE-100

FEATURES THE CE-100 LEAGUE TABLE

1 2 3 4 5 6 7 8 9

REVENUE € M COMPANY 39043 Vinci 34881 ACS 26515 Bouygues’ Construction Divisions 22099 Hochtief 15754 Skanska 13948 Eiffage 12873 Saipem 12476 Strabag 10074 Technip

2014 COUNTRY RANK CHANGE France 1 Spain 2 France 3 Germany Sweden France Italy Austria France

4 5 6 8 7 10

1 -1 1

GERMANY, AUSTRIA, SWITZERLAND, BENELUX AND EASTERN EUROPE Simon Battersby, UK Head Office Direct tel: +44 (0)1892 786232 simon.battersby@khl.com CHINA Cathy Yao Tel: +86 10 6553 6676 cathy.yao@khl.com JAPAN Akiyoshi Ojima Tel: +81 (0)3 3261 4591 ojima@media-jac.co.jp KOREA CH Park Tel: +82 2 730 1234 mci@unitel.co.kr USA/CANADA Matt Burk Tel: +1 312 929 3478 matt.burk@khl.com Jonathan Cervero Tel: +1 312 929 3247 jonathan.cervero@khl.com Alister Williams Tel: +1 312 680 6775 alister.williams@khl.com

The top of this year’s CE-100 league table is little changed from last year, but further down it is clear that strong individual markets are driving growth for domestic contractors. Chris Sleight takes a look

ATTACHMENTS

Efficiency, ease of use and safety are among the most important elements of an attachment. Sandy Guthrie reports on the latest news in this part of the industry

RENTAL

There is no doubt that construction is still important for Europe’s rental companies. Steve Ducker, editor of CE sister magazine International Rental News, examines this crucial market sector

ENGINES

Work by engine manufacturers is already well underway in preparation for the next round of emissions regulations. Sandy Guthrie investigates some of the latest developments

MEMBER OF

KHL TEAM EDITOR Sandy Guthrie e-mail: sandy.guthrie@khl.com direct tel: +44 (0)1892 786234 EDITORIAL DIRECTOR Paul Marsden BSc EDITORIAL TEAM Lindsey Anderson, Alex Dahm, Lindsay Gale, Laura Hatton, Cristián Peters, Murray Pollok, D.Ann Shiffler, Chris Sleight, Helen Wright, Euan Youdale

LAW & CONTRACT CORRESPONDENT Virginie Colaiuta CECE REPORT Produced in co-operation with the Committee for European Construction Equipment FIEC REPORT Produced in co-operation with the European Construction Industry Federation PUBLISHER James King

PRODUCTION AND CIRCULATION DIRECTOR Saara Rootes PRODUCTION MANAGER Ross Dickson e-mail: ross.dickson@khl.com Direct tel: +44 (0)1892 786245 DESIGN MANAGER Jeff Gilbert EVENTS DESIGN MANAGER Gary Brinklow

The paper in this magazine originates from timber that is sourced from sustainable forests, managed to strict environmental, social, and economic standards. The manufacturing mill has both FSC & PEFC certification, and also ISO9001 and ISO14001 accreditation.

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SUPPORT SERVICES Julie Wolstencroft FINANCIAL CONTROLLER Paul Baker

BUSINESS DEVELOPMENT DIRECTOR Peter Watkinson BA (Hons)

FINANCE DEPARTMENT Alison Filtness Gillian Martin

OFFICE MANAGER/ EVENTS COORDINATOR Clare Grant e-mail: clare.grant@khl.com direct tel: +44 (0)1892 784088

CREDIT CONTROL Josephine Harewood e-mail: josephine.harewood@khl.com Direct tel: +44 (0)1892 786250

CIRCULATION MANAGER Helen Knight e-mail: helen.knight@khl.com direct tel: +44 (0)1892 786244

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NEWS EVENTS DIARY

2015 Bauma ConExpo Africa September 15-18, 2015 Johannesburg, South Africa www.bcafrica.com BICES 2015 September 22-25, 2015 Beijing, China www.e-bices.org World Crane & Transport Summit November 4-5, 2015 Amsterdam, NL www.khl-group.com/ events/wcts World Demolition Summit November 6, 2015 Amsterdam, NL www.khl-group/events/ Demolition-Summit

2016 World of Concrete February 2-5, 2016 Las Vegas, US www.worldofconcrete.com Bauma April 11-17, 2016 Munich, Germany www.bauma.de Hillhead June 28-30, 2016 Buxton, UK www.hillhead.com

2017 Samoter February 22-27, 2017 Verona, Italy www.samoter.it

Holcim and Lafarge merger has now been completed The two companies have finally joined to become the world’s largest construction materials producer

olcim and Lafarge have finally completed their merger to form LafargeHolcim – which will be the largest construction materials producer in the world with 115,000 employees in 90 countries and annual sales of in the region CHF33 billion (€31.65 billion). As previously announced, Lafarge executive Eric Olsen is CEO of the company, while Wolfgang Reitzle, formerly of Holcim, and Lafarge’s Bruno Lafont are co-chairmen. Speaking on 10 July, Reitzle said, “Today’s closing is a historic event – not only for our two founding companies but also for the industry as a whole. “LafargeHolcim has a unique business portfolio, is the

Trouble for Russian machinery production Construction machinery production in Russia is close to collapse, according to a report by research company PMR. It said limited financial potential had led to “insignificant amounts” being put into research and development (R&D). PMR said that this lack of investment affected new kinds of equipment and improvements to existing product ranges. Limited productivity and high running costs had stunted the competitiveness of Russian machinery, it said, not only on world markets but also at home. Most Russian

construction machinery manufacturers have been unable to face competition from foreign brands, it claimed. In PMR’s report – Construction Machinery Market in Russia 2015 – it said that the cost advantage from lower energy prices had narrowed significantly in recent years, as Russia had been forced to reduce the gap in energy prices as a condition of joining the World Trade Organisation (WTO). Furthermore, it said, with obsolete production facilities in most cases, Russian manufacturers increasingly had to use

De-tiering kits from Volvo Volvo Construction Equipment has launched kits which allow machines fitted with European Stage IIIBcompliant engines to be de-tiered for sale as used machines in lesser regulated markets. The modification is necessary as diesel with very low sulphur content tends not to be available outside highly regulated markets like Europe, Japan and the US. Ultra-

industry benchmark in R&D (research and development) and offers its customers the widest range of innovative and value-adding products, services and solutions – from smallholders to large enterprises and most complex projects.” Lafont added, “This new company is built on the rich history and culture of Lafarge and Holcim and its teams. The merger has not only resulted in a larger and more global company but brings about a unique set of complementary capabilities to capitalise on. “Under the leadership of Eric Olsen, the new group will foster a new operating model and create more value for all our stakeholders.” ce

low sulphur diesel is essential for Stage IIIB and higher emissions control systems. The systems available from Volvo are for its four, six and eight cylinder (D4H, D6H and D8H) medium duty engines from about 100kW to some 385kW. They allow the engines to run on fuel with as high as 1,000 parts per million (ppm) of sulphur. The conversion process

Western parts in their machines to be able to increase competitiveness. PMR said that all of these factors had inevitably led to price rises for the final products, particularly in 2014 and 2015 with the plummeting Ruble making the import of components much more expensive. It said that until 2012, when Russia joined the

WTO, there had not been enough support from the government for domestic production of construction machinery, and that this had almost exclusively been apparent in the form of increases in import duty rates. It added that since 2012, import duty rates had been reduced or kept at existing levels but not increased. ce

The European Bank for Reconstruction & Development (EBRD) has arranged financing for the development of a €1.12 billion hospital in Etlik, a suburb of the Turkish capital Ankara. The hospital campus will be designed, built, equipped and managed under a public private partnership (PPP) model by Ankara Etlik Hastane Saglık Hizmetleri İşletme Yatırım (Ankara Etlik Health Investment). This private development company

involves a physical change to the engine as well as a software update. The kits work by deactivating the exhaust gas recirculation (EGR) system and replacing the diesel particulate filter and diesel oxidation catalyst with a conventional muffler. Once completed, the conversion is permanent and the engine cannot be used in regulated markets. ce

CONSTRUCTION EUROPE JULY-AUGUST 2015

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NEWS

Off-Highway Research joins KHL Group International market research and management consultancy company Off-Highway Research has been acquired by KHL Group, owner of Construction Europe. Off-Highway Research specialises in the research and analysis of international construction and agricultural equipment markets, and is the largest of its kind in the world. The consultancy was formed in 1981 as part of The Economist Intelligence Unit (EIU) and will continue to operate as an independent entity – retaining its brand name – within KHL Group. David Phillips, managing director of Off-Highway Research, will continue to lead the company in that role. He said, “We have known and worked with KHL for many years and see this deal as the exciting next phase in Off-Highway Research’s long-term expansion plans. “Having started the company 34 years ago, I feel that the time is now right to pass the baton on to new owners. KHL and its management team are very familiar with our business, and are keen to develop it still further.” James King, managing director of KHL, said, “This is one of the most exciting developments in KHL’s 25-year history. To work with such an internationally respected company as Off-Highway Research is a fantastic opportunity for us. “David Phillips and his excellent team have built an unparalleled reputation as the world’s leading construction equipment research company and management consultancy. We acquired Off-Highway Research not to make radical changes but because we have always respected and valued what it does in providing invaluable information in our sector.” King added, “While our traditional print media is still growing, this acquisition continues to transform KHL towards its long-term vision of becoming a full-line information, data, events, research and communications company, all delivered to our readers in whatever format they prefer to consume it in, whether that is digital, print or face-to-face.” King (left) and Phillips at the contract signing

is a joint venture between Italian contractor Astaldi and Turkish counterpart Türkerler. The project comprises 11 hospital buildings with 3,566 beds. Under a 27.5-year concession, the buildings will be leased to Turkey’s Ministry of Health. The private developer will act as facilities manager, providing building maintenance and nonclinical services, while medical services will remain the remit of the Ministry of Health.

BUSINESS NEWS ■ BREAKER DEAL Mining equipment manufacturer Joy Global has acquired Doosan Infracore’s hydraulic breaker and attachment business Montabert for €110 million. Joy Global said that Montabert’s revenues for the 12 months to the end of March 2015 were some US$100 million (€91.62 million). ■ PROFIT WARNING UK-based Balfour Beatty has issued another profit warning, saying that the UK accounted for approximately two thirds of the additional shortfall. In January, the international infrastructure group announced a cut in forecast profits following a review of its UK construction business by accountants KPMG. Now, it has provided an update ahead of its results for the six months ended 26 June, 2015. ■ POLISH SALE Porr Bau, a whollyowned subsidiary of Austrian-based Porr, has agreed with Bilfinger to purchase Bilfinger Infrastructure, based in Poland. In 2014, according to Porr, Bilfinger Infrastructure reported operating revenue of €166 million – of which around €32 million was in Norway – and turned a profit. The purchase price is said to be €21.5 million, and Porr said part of the purchase price would be settled by assuming Bilfinger’s obligations to Bilfinger Infrastructure. It is subject to approval by antitrust and competition authorities. Bilfinger has also announced plans to sell its troubled Power division. The decision to sell the power business came as the company

announced yet another profit warning. ■ NZ MOVE Vinci has acquired HEB Construction, which it describes as a leader in the New Zealand construction market. HEB is active in the civil engineering, engineering structures, hydraulic engineering, road, earthworks, and marine and port construction markets, among others. HEB generated revenue of some €230 million in 2014. Vinci has also announced a strategic partnership with Colombian construction and real estate company Constructora Conconcreto. ■ DEAL COMPLETED UK contractor Kier has completed its purchase of Mouchel, having acquired the entire issued share capital of MRBL, the de-listed company created when Mouchel was acquired by its management and lenders in 2012. Mouchel provides advisory, design, project delivery and managed services to the highways and transportation, local government, property, emergency services, health, education and utilities markets in the UK, the Middle East and Australia. ■ RECORD YEAR Record full-year results are expected by UK housebuilding and construction group Galliford Try, in an update on trading for the year ended 30 June, 2015. It predicted profit before tax to be “towards the upper end” of the analysts’ range. In the housebuilding sector, it said that the sales rate had improved further since the recent UK General Election.

CONSTRUCTION EUROPE JULY-AUGUST 2015

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NEWS

UNACEA in Samoter agreement for 2017

KHL.COM

Italian association for construction equipment manufacturers to support show

talian construction equipment manufacturers’ association UNACEA has signed an agreement with Veronafiere, organiser of the Samoter construction exhibition, to help promote the next show – which is staged every three years, with the next one to be held from 22 to 25 February, 2017. This will be the 30th time that the Verona-based exhibition has taken place. In 2017, as in 2014, Samoter will be co-located with the Asphaltica exhibition for the road building industry. The agreement covers joint promotion, training and communication on domestic and international markets. It was signed and presented by Ettore Riello, president of Veronafiere, along with Giovanni Mantovani, CEO, and Paolo Venturi, president of UNACEA. Venturi said, “We were delighted to sign a collaboration agreement with Samoter in order to develop closer synergy benefiting all companies in the sector.” For its part, UNACEA said it wanted to raise environmental issues in the run-up to Samoter and during the show. It said this would include issues around engine exhaust emissions as well as a focus on the difficulties and dangers that Italy faces from

UNACEA president Paolo Venturi (left) with Veronafiere president Ettore Riello at the signing of the agreement

earthquakes. Talking about the country’s seismically active geology, Venturi said, “The authorities must invest in the land to repair it and provide future protection.” On the subject of engine emissions, he said, “There are many areas in Italy where there are air quality issues and infractions, but nothing is being done. “On one hand, Euro II cars cannot be driven in Italy, but Stage II excavators can still be used. We need municipal orders to ban the use of old-Stage equipment in built-up areas.” Samoter was last held in May 2014. It was a sparse show compared to previous events, with many of the industry’s big names not taking part. The only major international earthmoving equipment manufacturer to take exhibition space at the show was Komatsu. Riello acknowledged the problem, saying, “The last edition was tough but we feel it was successful. We are ready to invest in the future because we believe there are opportunities for the industry in this country.” Veronafiere‘s commercial director, Diego Valsecchi, added, “We are talking with all of the big names in the industry about 2017. We do not have commitments at this stage, but we have a dialogue.” He added that the decision to hold the 2017 Samoter show in February – a time when weather in Verona can be poor – came at the request of the majority of exhibitors. He said that this majority felt that a May time-slot was too late in the year for their seasonal industry. A key factor which hindered Samoter 2014, was that the exhibition came at an historic low in the Italian construction equipment industry. According to UNACEA, the Italian market was some 79% lower in volume terms in 2013 than at the post-crisis peak of 2007, when almost 30,000 machines were sold. Venturi said, “There are some signs of recovery. 2014 was up 10% and the first quarter of 2015 was also good. The market is gaining, but there is still instability and in volume terms we are still very far from 2007.” ce

Industry videos A video discussing a new report on the European used tracked excavator market is available for viewing at khl.com. The report has been produced by KHL Group and Lectura. In the new video Chris Sleight discusses the key findings of the report which looks at price, market and machine trends in the used tracked excavator market from 2010 to 2014. The report draws on information on some 50,000 used crawler excavators offered for sale in Europe over the period. The video can be found on khl.com’s Videozone at www.khl.com/videozone or by scanning the QR code below. Also available from the Videozone are a number of videos from the 2015 International Tower Crane (ITC) conference, organised by CE sister-magazine International Cranes and Specialized Transport. The conference was held in London, and included two round-table panels: one on tower crane foundation loads – and with presentations on new FEM and CIRIA guidelines – and a second on operator access for tower cranes. Marco Gentilini, vice president of Terex Cranes, spoke to Murray Pollok of KHL, as did Dave Holder, director and general manager at HTC Wolffkran. In another video, Jean-Charles Delplace, business development manager at Trimble Navigation, spoke to the conference about the future of cranes within the connected site. Also from the conference, Martin Seban, project manager at IHS Consulting Services, presented construction forecasts and an end markets overview, while other topics included attracting new talent to the tower crane industry, and the tower crane value chain and the worldwide market.

This month’s podcast for Construction Europe will be available online within a few days of the magazine’s publication. To listen, go to: www.khl.com/audio-podcasts

CONSTRUCTION EUROPE JULY-AUGUST 2015

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NEWS REPORT: FIEC CONGRESS

Simplified and smarter legislation is needed FIEC put its case to European Commission President Juncker at its annual Congress, which heard that the construction industry was showing signs of growth. Sandy Guthrie reports from Brussels

Marchand, “Finally, 2014 was a turning point”

PHOTOS: IVAN VERZAR

small amount of growth in the overall EU construction industry has been reported by FIEC (the European Construction Industry Federation) for 2014, with the trend forecast to continue this year. FIEC vice president Jean-Louis Marchand, who is responsible for economic issues, said, “It looks like the construction industry hit rock bottom in 2013. “Finally, 2014 was a turning point, but the return to growth remains very fragile and it started from a very low level.” Marchand was presenting FIEC’s annual statistics to the FIEC Congress 2015 in Brussels, Belgium, where representatives of the EU construction industry put their demands for stronger competitiveness to European Commission President JeanClaude Juncker, who told them that the plan which bears his name “must be a success”. Juncker added, however, that an investment plan itself was not sufficient, and that it was essential that a global background allowed companies to operate in a peaceful setting. He also said that without simplified, smarter legislation, the plan would not succeed. “No growth is possible if we fail to pay attention to our industries in Europe,” said Juncker. FIEC president Johan Willemen said, “If we want to set the basis for long-term sustainable growth of the economy and of employment in the EU, then it is time to move from ‘blind’ to ‘smart’ austerity. “What everybody needs, is ‘enough and now’ and not ‘too little, too late’.” The annual congress, with contractors from all over Europe, focused on the main drivers for stronger competitiveness of the

Juncker, “Let’s remain humble, but also ambitious”

construction industry – which, in 2014 represented almost 9% of the EU28 GDP – in the light of the Juncker Plan for investment, growth and jobs. Willemen said, “ The construction industry welcomes the Juncker Plan and we intend to play our role in the development of ‘good’ projects. But in order to be successful, we also need a new mindset for a real collaborative approach between our companies and the public sector, at all levels, as well as with the financial sector.” He said, “It must also be ensured that SMEs (small and medium-sized enterprises), which constitute the largest share of our companies, can also fully benefit from the plan.” During the discussions, it was suggested that the Juncker Plan should not be all about building new infrastructure, but also about the maintenance and upgrading of existing infrastructure. FIEC said that the cost of investment would not be lower if necessary renovation or rebuilding work were to be postponed. It said that a balance between resource efficiency and the competitiveness of the

construction industry must be found. It added that measures that were too ambitious and maybe even unnecessary would prove to be counterproductive and would damage competitiveness in the long term. FIEC called for a level playing field to allow genuine competition between contractors, rather than “between social security and taxation systems”. It said there was therefore a need for strengthening the fight against all forms of fraud and, in particular, social fraud and undeclared work. The European construction industry, it said, stood ready to accept these challenges and to take an active role in the implementation of the Juncker Plan, based on the know-how and experience of all its stakeholders. Juncker told the congress, “Let’s remain humble, but also ambitious.” Presenting the FIEC statistics, Marchand said, “More than ever, FIEC calls on European and national decision makers to replace blind austerity with smart austerity. This is what FIEC has kept asking for over the past few years – there can be no growth without investment, and the Juncker Investment Plan confirms that.”

He said EU total construction output amounted to €1.21 trillion in 2014, which represented a small increase of 0.7% over 2013. “We will need time to catch up with the pre-crisis levels, but at least this positive trend seems to be continuing in 2015 as well.” He forecast a rise of 0.8% for this year. FIEC’s statistics showed that behind the small growth for the EU as a whole, huge disparities remained between northwestern countries and southeastern countries. It said that in particular, the housebuilding segment regained significant momentum in 2014, up 2.3%, and was now leading the recovery. This trend was expected to continue at a similar pace in 2015 with a rise of 1.6%. The non-residential segment was said to have stabilised finally, with a fall of 0.1% in 2014 and stable in 2015. FIEC said that against this backdrop, the civil engineering segment was still struggling to recover (-2.1%), and that most Member States were not investing in public infrastructure, despite an increasing need. In spite of the troubled period, the construction industry remains one of the major engines of Europe’s growth, said FIEC, adding that construction represented 8.8% of the European Union’s GDP and 3 million enterprises – the vast majority of which were SMEs. ce

Willemen, “We need a new mindset for a real collaborative approach” CONSTRUCTION EUROPE JULY-AUGUST 2015

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WORLD NEWS

CHINA Chinese construction equipment manufacturer Zoomlion has issued a profit warning for the first half of this year. It says it expects to make a net loss of CNY300 to 380 million (€44 to 56 million) for the first six months of 2015, compared to a profit of CNY900 million (€132 million) for the same period last year. In a statement to the Hong Kong stock market, the company said the reason for the earnings downgrade was, “the continuous slowdown in growth of fixed assets investment of the State (China), especially the slowdown in the growth of real estate investment. The demand in the construction machinery market continued to be weak, which represented a relatively substantial persistent impact on the overall sales revenue and net profit of the company.” Zoomlion added that these were preliminary, unaudited figures, and that full details would be included in its half-year financial statement. QATAR A consortium led by Salini Impregilo has won the €770 million contract to build the Al Bayt stadium in Al Khor, Qatar. The facility, some 50km north of the capital, Doha, is scheduled to be used as one of the venues for the 2022 FIFA World Cup. The contract comprises €716 million for the design and construction of the stadium and some €53 million for operation and maintenance of the facility. Salini Impregilo’s consortium partners on the project are Galfar and Cimolai. The stadium will have an area of some 200,000m2 and provide seating for 70,000 spectators. The contract also includes an auxiliary building for security and administrative functions, and an ancillary building for electrical and mechanical plant. The completion date is September 2018. CHINA China-based access platform manufacturer Dingli is set to start production in a new 83,000m2 factory in August and said its recent IPO would provide an opportunity to merge with or buy another access equipment company, likely to be in Europe or North America. The manufacturer said its revenue for 2014 was CNY537.6 million (€78.66 million) and the new plant’s capacity would allow revenue growth of 30% each year. Based in Hangzhou, the same city as the manufacturer’s existing factory, it is based on a total area of 120,000m2 and includes a large covered outside testing zone. Inside the facility is a state-ofthe-art automated scissor assembly line, including all processes through to painting. SAUDI ARABIA A Bechtel-led consortium has begun tunnelling on Line 1 of the Riyadh Metro in Saudi Arabia. The Riyadh Metro is set to be the country’s first underground rail system. The consortium, which includes Saudi company Almabani General Contractors, Middle East-based Consolidated Contractors Company (CCC), and Germany’s Siemens, is responsible for the US$10 billion (€9.09 billion) contract for the design, construction, signalling, electrification and integration of Lines 1 and 2, as well as supplying the metro carriages. The work includes 39 stations, two of which are key interchange stations.

NEPAL

Close to €200 million in aid for Nepal approved Asian Development Bank to provide funds in aftermath of earthquake

he Asian Development Bank (ADB) has approved US$200 million (€181.63 million) of funding to help Nepal “build back better” after the April 25 earthquake, and the Bank said a further US$400 million (€363.25 million) was available for reconstruction work. The funds will be used to provide emergency assistance in the aftermath, as well as to rebuild public infrastructure such as roads, schools and other public buildings. ADB president Takehiko Nakao said, “I truly believe that Nepal will emerge stronger from this catastrophe and continue along the path of inclusive and sustainable growth.” In addition to the US$200 million emergency assistance, a further US$50 million (€45.40 million) is being provided. This includes a US$3 million (€2.72 million) disaster relief grant, US$30 million (€27.24 million) in budget support for rural finance, and a US$15 million (€13.62 million) grant from the Japan Fund for Poverty Reduction. The ADB could allocate a further US$350 million (€317.82 million) to reconstruction work. While announcing the financing package, Nakao highlighted five principles for effective reconstruction. He said the first was “building back better,” which is to say rebuilding structures to earthquake-resistant standards. The second principle was inclusiveness – paying attention to the needs of the poor, rural residents, and other vulnerable social groups, who have suffered more from the earthquakes than others. The third need was said to be a robust institutional set up for reconstruction. Nakao said strong leadership was critical for the success of the new agency for reconstruction. Fourth, he highlighted the importance of improved capacity of the government. A sound governance and fiduciary risk management system should be in place. Finally, effective donor co-ordination and government ownership is critical to successful reconstruction. ce

World Trade Center plans Plans for final part of the redevelopment of the World Trade Center in Lower Manhattan, New York, US, have been revealed by architects BIG (Bjarke Ingels Group), based in New York and Copenhagen, Denmark. The 2 World Trade Center (2 WTC) tower will rise to 408m, and it is said that it will be “respectfully framing” the 9/11 Memorial Park alongside 1 WTC, 3 WTC and 4 WTC. The 80-plus story building is in the area of Manhattan known as TriBeCa, and is being developed by Silverstein Properties. The design of 2 WTC is said to have derived from its urban context at the meeting point between two very different neighbourhoods – the

Financial District with its modernist skyscrapers and TriBeCa with its lofts and roof gardens. Seven separate building sizes and depths are stacked on top of each other, creating 3,530m2 of outdoor terraces.

The base of the building uses the maximum area of the site, housing TV studios and 9,290m2 of retail space over multiple levels. The 2 WTC project is expected to be completed in 2020. ce

PICTURE BY DBOX

WORLD IN BRIEF

2 World Trade Center will consist of seven segments of different sizes CONSTRUCTION EUROPE JULY-AUGUST 2015

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WORLD NEWS US

WORLD IN BRIEF

Construction figures best in seven years More than 8% increase over last year as figures reach nearly €1 trillion

he value of US construction put in place for the 12 months to the end of May was US$1.04 trillion (€945.39 billion) – an 8.2% increase on a year ago and a 0.8% increase on April’s figure, according to the US Census Bureau. The year-on-year growth in residential construction was 8.2%, with this segment of the market rising to US$366 billion (€332.79 billion) for the last 12 months. Some US$359 billion (€326.53 billion) of this total was private construction activity, with just US$6.6 billion (€6.00 billion) being financed by public funds. In the US$669 billion (€608.34 billion) non-residential sector, there was growth almost across the board, with only the public safety, power and water supply construction segments seeing a fall compared to a year ago. The most robust growth was in the manufacturing construction segment, which was up just shy of 70% compared to a year ago at US$90 billion (€81.83 billion). The amusement and recreation, lodging, office, and conservation and development construction segments also saw strong growth. While total private construction was up 10.3% year-on-year for a total of US$752 billion (€683.60 billion), public construction was up just 2.8% to US$283 billion (€257.26 billion). Again, the power and public safety segments were down sharply, but this was offset by growth in most other areas. According to the Associated General Contractors of America (AGC), at US$1.04 trillion, construction output was the highest it has been since October 2008. ce

CHINA

New R&D centre for Liugong Construction equipment manufacturer Liugong has opened a new global research and development (R&D) centre in its home city of Liuzhou, China. The company said the investment was a major milestone and would expand its R&D capability. The facility covers 110,000m² and includes a 22,000m2 office complex,

a testing centre, prototyping facilities, and seven laboratories, as well as extensive outdoor testing facilities. It can seat 1,200 engineers. Development of the project began in 2013 and the total investment to date has been CNY270 million (€39.50 million). Liugong said the new R&D centre would initially focus on major research, development

The opening ceremony of the new Liugong R&D centre in Liuzhou

and testing for its earthmoving equipment ranges. One of the first projects will be the completion of research and development, as well as testing, the latest models of H Series wheeled loaders. Liugong also has R&D facilities in India, Poland, the UK and US. Liugong Group chairman Zeng Guang’an said, ‘‘R&D is the nucleus of the future and the ability to be innovative is an uppermost priority for the future. At Liugong, R&D has always been major focus. The new centre is a significant commitment to future technology, with many more scientific and technological advances being made. “We are confident it will provide all tools we need to become the gamechanging company in the construction equipment industry.” ce

US A joint venture between one of Hochtief’s North American subsidiaries, Flatiron, and Dragados USA has won the US$1.23 billion (€1.12 billion) contract to construct a 97km stretch of the high speed rail between Los Angeles and San Francisco. Hochtief is controlled by Spanish contractor ACS, and Dragados USA is a wholly-owned subsidiary of that company. The California High Speed Rail Package 2-3 is a design-build project awarded by the California High-Speed Rail Authority. The project runs through California’s Central Valley and includes construction of at-grade and aerial sections of high speed train infrastructure, grade separation structures, relocation of 8.8km of existing track, waterway crossings, roads and utilities. Hochtief expects the design phase of the project to take some 18 months, with construction starting in late 2016 and completion in four years. INDIA Indian’s largest contractor, Larsen & Toubro (L&T) said it won INR2,035 crores (€291 million) worth of orders in June. Contracts won by its building and factories business included a turnkey construction office project in Hyderabad for an un-named global information technology company. L&T said the scope of its work would include engineering design, civil, structural, and architectural work as well as mechanical and electrical installation, along with other services. Among the wins for L&T’s transport and infrastructure business was an engineering procurement contract (EPC) to construct a 110km stretch of four-lane dual carriageway along the route between Maharashtra in Solapur State to Bijapur in Karnataka. COLOMBIA A consortium comprising Austria’s Strabag (37.5%), Spain’s Sacyr (37.5%) and Concay of Colombia (25%) has been awarded the €900 million contract to design, build, finance and operate the 176km Autopista al Mar 1 in Colombia. Strabag said the construction value of the 25-year concession project was “a middle triple-digit million Euro amount.” The motorway is in the Department of Antioquia in northwestern Colombia and will link Medellín, the capital of Antioquia, with the cities of San Jerónimo and Santa Fe de Antioquia, before continuing to Bolombolo. The project involves the completion of 75km of new motorway, the modernisation of a 65km section plus the construction of numerous bridges and tunnels. HONG KONG/CHINA IMIC Group subsidiary Leighton Asia has won the contract from the Hong Kong Government to build a boundary control point on the border between Hong Kong and China for AU$1.2 billion (€813.85 million). The Liantang/Heung Yuen Wai Boundary Control Point buildings will include the terminus station for the high-speed rail link into China from Hong Kong, being built as part of the Hong Kong‐Zhuhai‐Macao bridge. The project comprises construction of a passenger terminal building and nine other main ancillary buildings including fire and police bases, vehicle examination buildings and a number of bridge structures. Work is scheduled to begin later this year with completion in 2018.

CONSTRUCTION EUROPE JULY-AUGUST 2015

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NEWS REPORT

Europe’s top The top of the CE-100 league table is little changed from last year, but further down it is clear that strong individual markets are driving growth for domestic contractors. Chris Sleight reports

here was little change at the top of the CE-100 league table of Europe’s largest contractors this year, with the six largest companies remaining unchanged from the 2014 edition. Vinci remained in the No 1 spot, as it has done ever since the company was formed some 15 years ago. There were a few small changes lower down, but overall, the same ten companies which stood at the top of the rankings last year were back again in 2015. In fact the top 20 or so places were fairly static, and it is not until Salini Impregilo’s leap into 25th position from 51st a year ago that any remarkable changes in position can be noted. The company’s impressive rise is because 2014, the year from which financial results are taken to compile the 2015 CE-100, was the first full year of trading since Salini and Impregilo merged. There are also several UK construction companies which stood out for their notable rises up the CE-100 this year. Kier was up 20 places to No 28, again partly due to a merger. Its acquisition of May Gurney in 2013 added a big chunk of revenues to its top line in 2014, the first full year following the deal.

GREAT STRIDES But rises up the table were not all about acquisitions. The UK house builders like Barratt Developments, Persimmon, Taylor Wimpey, Berkeley and Bellway have all made great strides up the CE-100 in the last year on the back of a buoyant UK residential market. In fact the buoyancy of the UK

construction sector in general is particularly telling. There are a total 22 UK companies in the CE-100 – more than any other country – and an impressive 19 of them have improved on their positions from last year. That is the best performance of any national group in both absolute and percentage terms. Over the years it has been apparent from looking at the CE-100 that growth in any particular country’s construction market tends to benefit its domestic contractors the most. It also follows that market downturns tend to see companies lose places. On this basis, Spain and the Netherlands stood out as being among the more troubled major European markets. Of the 11 Spanish contractors in the CE-100, seven lost places compared to last year’s positions. Meanwhile, half of the ten Dutch contractors in the league table fell away compared to the 2014 league table. Among the smaller markets, there were more fallers than risers among the Finnish, Norwegian, Russian, Portuguese and Turkish contractors. Falls for the Russians, Portuguese and Turks are perhaps not surprising given the state of their home markets. Indeed, the biggest faller in this year’s CE-100 was Russia’s RZD Stroy, down 25 places. However, it was perhaps unexpected among the Nordic contractors. Indeed, it is a little surprising that more Italian and Greek contractors moved up the table than down it in this year’s CE-100, which goes to show the strong/ weak domestic market equals growing/shrinking contractors is

THE CE-100 LEAGUE TABLE

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

REVENUE € M COMPANY 39043 Vinci 34881 ACS 26515 Bouygues’ Construction Divisions 22099 Hochtief 15754 Skanska 13948 Eiffage 12873 Saipem 12476 Strabag 10074 Technip 8952 Balfour Beatty 8802 Ferrovial 7697 Bilfinger 7314 Bam Group 7151 Abengoa 6499 Acciona 6334 FCC 6251 NCC Group 5220 Spie 4796 Peab 4701 Petrofac 4434 Laing O’Rourke 4400 VolkerWessels 4386 Enka 4334 Carillion 4096 Salini Impregilo 3916 Barratt Developments 3731 Obrascon Huarte Lain 3664 Kier Group 3613 Interserve 3511 Compagnie D’Entreprises CFE SA 3498 Fayat Group 3332 Taylor Wimpey 3305 Ed Züblin 3193 Persimmon 3167 Boskalis Westminster 3149 Tecnicas Reunidas 3009 Porr 2943 Mostotrest 2901 Sacyr Vallehermoso 2862 Veidekke 2753 Morgan Sindall 2630 Berkeley Group 2540 Astaldi 2420 DEME 2404 Implenia 2388 Techint Engineering & Construction* 2370 Nexity 2368 Mota-Engil 2200 Jan De Nul* 2193 Galliford Try 2128 Isolux Corsan 2104 Van Oord 2044 Lemminkäinen 2001 Besix 1984 Keller Group

2014 COUNTRY RANK CHANGE France 1 Spain 2 France 3 Germany Sweden France Italy Austria France UK Spain Germany Netherlands Spain Spain Spain Sweden France Sweden UK UK Netherlands Turkey UK Italy UK Spain UK UK Belgium

4 5 6 8 7 10 9 12 11 14 13 17 15 16 23 20 22 19 24 21 25 51 30 26 48 38 50

1 -1 1 -1 1 -1 1 -1 2 -1 -1 5 1 2 -2 2 -2 1 26 4 -1 20 9 20

France UK Germany UK Netherlands Spain Austria Russia Spain Norway UK UK Italy Belgium Switzerland Italy

27 36 29 44 28 32 37 34 31 33 43 57 45 40 42 55

-4 4 -4 10 -7 -4 -4 -8 -7 2 15 2 -4 -3 9

France Portugal Belgium UK Spain Netherlands Finland Belgium UK

35 47 54 60 39 62 52 49 61

-12 -1 5 10 -12 10 -1 -5 6

CONSTRUCTION EUROPE JULY-AUGUST 2015

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NEWS REPORT

contractors THE CE-100 LEAGUE TABLE REVENUE 2014 € M COMPANY COUNTRY RANK CHANGE 56 1955 Glavstroy* Russia 46 -10 57 1897 Swietelsky Austria 71 14 58 1868 Heijmans Netherlands 56 -2 59 1842 Bellway UK 75 16 60 1839 ISG UK 69 9 61 1805 LSR Russia 67 6 62 1779 YIT Finland 59 -3 63 1775 Strukton Groep Netherlands 64 1 64 1716 Teixeira Duarte Portugal 63 -1 65 1700 TBI Holdings BV* Netherlands 58 -7 66 1600 Max Boegl Germany 70 4 67 1570 Goldbeckbau Germany 76 9 68 1563 JM Sweden 72 4 69 1561 Willmott Dixon UK 81 12 70 1545 Maire Tecnimont Italy 66 -4 71 1545 Ellaktor Greece 80 9 72 1544 Renaissance Construction* Turkey 73 1 73 1542 Tekfen Holding Turkey 68 -5 74 1376 Bauer Germany 74 75 1364 Comsa EMTE Spain 65 -10 76 1329 Costain Group UK 86 10 77 1302 Wates Group UK 84 7 78 1289 RZD Stroy Russia 53 -25 79 1211 Trevi SpA Italy 79 80 1183 Budimex SA Poland 83 3 81 1183 AF Gruppen Norway 77 -4 82 1166 Ballast Nedam Netherlands 78 -4 83 1143 Per Aarsleff AS Denmark 92 9 84 1142 Pizzarotti Italy 82 -2 85 1116 Bloor Holdings UK 95 10 86 1083 Kaufman & Broad France 88 2 87 1072 Redrow UK 99 12 88 1067 CMC Ravenna Italy 89 1 89 1000 Sisk Group* Ireland 91 2 90 1000 Condotte d’Acqua* Italy 85 -5 91 1000 Dura Vermeer* Netherlands 87 -4 92 934 GEK Terna Greece 98 6 93 909 Bowmer & Kirkland UK 97 4 94 900 Köster Germany 94 95 836 Miller Group UK 93 -2 96 780 Bonatti* Italy NEW 97 702 Metrostav AS Czech Republic 96 -1 98 699 Van Wijnen Netherlands NEW 99 684 SRV Group Finland NEW 100 675 Aldesa Spain 100 -** Estimate

There is also the point that exchange rates can have an impact on the CE-100, as all companies are ranked in Euro revenue terms, based on the average exchange rate over the year in question. That did not have a huge bearing on this year’s CE-100, but with the Euro down against many other European currencies this year, UK, Scandinavian, and Central and Eastern European contractors may get a boost in the 2016 edition. ce

not a hard and fast rule in today’s internationalised world.

FUTURE DEVELOPMENTS Just as mergers tend to propel contractors up the CE-100, divestments tend to send them lower. So in the next year or two the likes of Bilfinger and Balfour Beatty will probably fall down the CE-100 as the divestments and restructuring of the last year or so start to be reflected in their full-year revenues.

Financial analysis Total revenues for this year’s CE-100, which is based on 2014 figures, came to €426 billion. This was a 1% fall on the CE-100 2014 total of €430 billion, and about a 2.5% drop from the all-time high of €439 billion seen in the 2013 CE-100, based on 2012 figures. But while top-line performance has slipped away over the last two years, profitability has improved. This year’s CE-100 achieved an average operating margin of 4.85%. That compares favourably with the all-time low of 4.18% seen in 2012. This illustrates the point that bigger is not necessarily better as far as contractors are concerned. It also highlights that profitability is a better barometer of the market than revenues. From 2009 to 2012, revenues for the CE-100 steadily rose, but we know this was the most challenging market downturn in the post-war era. The same period saw profits gradually eroded. The common theory on this is that in difficult times, contractors take on lower margin jobs than they usually would to keep revenues and cash flow going. Now that markets are recovering, construction companies can perhaps be more choosey, and this is reflected in their bottom lines. The average CE-100 contractor employed 19,777 staff last year, which was a 3.6% decline from last year’s CE-100 average of 20,509. This may mean the improvement in profitability has been driven by reducing headcount as a means of cost-cutting. 450

400 350

6.92%

430

406

407 384

5.66% 5.75%

300 250

439

7.19% 378

426

334

5.97%

297 5.02% 5.01%

265

4.40%

200

4.72%

4.85%

4.18%

4% 3%

150

Sales (€ Billion)

2013

2012

2011

2010

2009

0% 2008

0 2007

1% 2006

50 2005

2004

100

2003

METHODOLOGY: The CE-100 is based on sales revenues in 2014 – either full or financial years. It is compiled from a range of sources including audited annual accounts, companies’ own statements of revenues and information from reputable third parties such as Dun & Bradstreet. In some cases CE has estimated company revenues.

379

Operating Margin (%)

CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 15 News Report CE100.indd 15

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FINANCE

Grexit threat Stock markets around the world fell in June and early July as Greece flirted with an exit from the Eurozone. Chris Sleight finds out more

s CE went to press, the Greek government had just agreed a deal with its creditors to refinance the national debt. Although the conditions had yet to be accepted by the Greek electorate, it looked at the time of writing that the last minute deal had averted Greece’s exit from the Eurozone (Grexit). Stock markets around the world had lost ground as the ill-tempered talks continued, particularly in early July when Greece’s lack of funds prompted it to close banks and limit cash withdrawals. Given what was at stake, it was

The implications of a Grexit are that Greece would replace the Euro with a new devalued currency. So any investors in the country could have been looking at serious losses EQUIPMENT MANUFACTURERS Company

Currency Price at start CEE Index 293.67 Astec Industries US$ 43.06 Atlas Copco (A) SEK 251.80 Bell Equipment ZAR 8.40 Caterpillar US$ 87.93 CNH Industrial € 7.98 Deere US$ 88.98 Doosan Infracore WON 10450 Haulotte Group € 18.10 Hitachi CM YEN 2222 Hyundai Heavy Industries WON 135500 Kobe Steel YEN 223 Komatsu YEN 2547 Kubota YEN 1942 Manitou € 17.77 Manitowoc US$ 19.85 Metso € 26.43 Palfinger € 26.57 Sandvik SEK 100.90 Tadano YEN 1672 Terex US$ 28.47 Volvo (B) SEK 113.70 Wacker Neuson € 22.69 Period: Week 21 - 28

Price at end 277.62 39.78 229.40 8.80 81.69 8.35 94.54 9700 16.64 2007 120000 185 2269 1977 16.69 18.26 24.28 26.32 91.30 1760 22.36 105.50 19.16

Change Change (%) -16.06 -5.47% -3.28 -7.62% -22.40 -8.90% 0.40 4.76% -6.24 -7.10% 0.38 4.70% 5.56 6.25% -750 -7.18% -1.46 -8.07% -215 -9.68% -15500 -11.44% -38 -17.04% -278 -10.91% 35 1.80% -1.08 -6.08% -1.59 -8.01% -2.15 -8.13% -0.25 -0.94% -9.60 -9.51% 88 5.26% -6.11 -21.46% -8.20 -7.21% -3.53 -15.55%

surprising that markets did not fall further. However, the losses were relatively limited – the FTSE and the DAX were down just over 5% between weeks 21 and 28 – about the same as France’s CAC 40 index. Markets outside Europe were more lightly affected, with the Dow losing 4.03% of its value over the same period and the Nikkei 225 dropping just 2.09%. The implications of a Grexit are that Greece would replace the Euro with a new devalued currency. So any investors in the country could have been looking at serious losses. However, the issues between Greece and its

creditors have been brewing for years, so investors have had plenty of time to limit their exposure, should the country have left the Eurozone. The issue now is whether Greek Prime Minister Alexis Tsipras can sell the refinancing agreement to his Parliament and electorate, and whether he can keep his job. The refinancing offer still calls for cuts to pensions and higher sales taxes, which run against his election mandate of an end to austerity. The deal accepted is a tougher one than was rejected in the Greek referendum of July 5. The latest offer is also a long way from a permanent solution

CONTRACTORS Company CEC Index Acciona ACS Astaldi Balfour Beatty Ballast Nedam Bam Group Bauer Bilfinger Bouygues Carillion Eiffage FCC Ferrovial Hochtief Salini Impregilo Keller Group Kier Lemminkäinen Morgan Sindall Mota Engil NCC (B) OHL Peab (B) Sacyr Vallehermoso Skanska (B) Strabag SE Taylor Wimpey Tecnicas Reunidas Trevi Group Veidekke Vinci YIT

Currency Price Price Change Change at start at end (%) 217.72 207.78 -9.94 -4.56% € 72.90 69.26 -3.64 -4.99% € 30.63 28.45 -2.18 -7.12% € 8.16 8.20 0.04 0.43% UK£ 2.54 2.18 -0.36 -14.15% € 1.75 1.57 -0.18 -10.29% € 3.82 3.94 0.12 3.03% € 16.50 15.32 -1.18 -7.15% € 40.32 34.42 -5.90 -14.64% € 37.96 31.59 -6.37 -16.77% UK£ 3.26 3.43 0.17 5.15% € 53.25 49.69 -3.56 -6.69% € 10.81 8.95 -1.86 -17.21% € 20.26 20.08 -0.18 -0.89% € 68.28 71.25 2.97 4.35% € 4.13 4.22 0.09 2.13% UK£ 9.94 10.62 0.68 6.89% UK£ 13.06 14.21 1.15 8.81% € 11.23 11.64 0.41 3.65% UK£ 8.05 8.01 -0.04 -0.45% € 2.80 2.40 -0.40 -14.36% SEK 268.40 265.10 -3.30 -1.23% € 19.90 15.86 -4.04 -20.30% SEK 66.15 63.75 -2.40 -3.63% € 4.09 3.43 -0.66 -16.18% SEK 177.20 176.40 -0.80 -0.45% € 21.52 20.56 -0.96 -4.46% UK£ 1.83 1.87 0.04 2.45% € 45.25 43.78 -1.47 -3.25% € 2.26 1.86 -0.40 -17.64% NOK 91.50 91.25 -0.25 -0.27% € 55.15 53.86 -1.29 -2.34% € 7.01 6.82 -0.19 -2.71%

Period: Week 21 - 28

CONSTRUCTION EUROPE JULY-AUGUST 2015

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FINANCE to Greece’s problems. There is no write-off of debt, it has just been rolled-over to a later date, so the circus of talks is likely to start up all over again the next time payments can’t be made.

CONSTRUCTION SHARES Equities in construction companies fell more or less

MATERIALS PRODUCERS Company

Currency Price Price Change Change at start at end (%) CEM Index 186.34 175.17 -11.17 -5.99% Buzzi Unicem (Ord) € 14.49 13.23 -1.26 -8.70% Cemex (CPO) MXP 15.31 13.98 -1.33 -8.69% Cimpor € 1.21 0.96 -0.25 -20.66% CRH € 25.82 25.23 -0.59 -2.30% Heidelberg Cement € 76.16 71.82 -4.34 -5.70% Holcim CHF 75.50 72.25 -3.25 -4.30% Italcementi € 6.18 6.08 -0.10 -1.62% Kone (B) € 39.96 35.30 -4.66 -11.66% Lafarge € 65.10 62.15 -2.95 -4.53% Saint-Gobain € 42.69 40.93 -1.76 -4.11% Schindler (BPC) CHF 162.80 154.90 -7.90 -4.85% Schneider Electric € 69.82 62.49 -7.33 -10.50% Titan Group (Common) € 21.04 21.40 0.36 1.71% Vicat Group (Common) € 63.40 63.30 -0.10 -0.16% Wienerberger € 15.12 13.98 -1.14 -7.55% Wolseley UK£ 40.09 41.62 1.53 3.82% Period: Week 21 - 28

in line with the wider markets between weeks 21 and 28. The CET Index for the whole industry was down 5.45%, with the biggest fall coming in the Materials sector. The CEM Index for this segment was down 5.99% over the sevenweek period, with almost all the individual companies which make up the index losing ground. In fact, one of the only two gainers over the period was Greece’s Titan Cement, which just goes to show that investors may well have priced-in any risk of a Grexit to their valuations of Greek companies. The biggest faller in the sector was Cimpor, which seems to be losing ground as a result of its exposure to the Brazilian construction market. This took another blow in June, with the arrest of two high profile

contractor CEOs for their alleged links to the Petrobras bribery scandal. Other big fallers in the sector included Kone and Schneider Electric. There were also some big losses among construction equipment manufacturers, with the CEE Index for the sector losing 5.47% of its value. Again, most of the companies which make up the index saw their share prices fall between weeks 21 and 28, and those that did gain only managed fairly modest improvements. The best was Deere, which was up 6.25%. The biggest faller was Terex, which saw its shares drop 21.46% in value between weeks 21 and 28. There was no news relating to Terex’s end markets, or demand

Some of the falls for the Asian manufacturers may be linked to the strange things which have been happening on China’s stock markets

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CE 07-08 2015 Finance.indd 18

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FINANCE CE BAROMETER

VALUE OF €1 Beginning End of period of period

Change (%)

0.7165 134.93 1.0410 1.1150

0.7198 135.79 1.0453 1.1113

0.0033 0.85 0.0043 -0.0037

0.46% 0.63% 0.41% -0.33%

EUROPEAN CURRENCIES British Pound 0.7165 Bulgarian Leva 1.9563 Czech Koruna 27.332 Danish Krone 7.4570 Hungarian Forint 306.54 Norwegian Krone 8.4070 Polish Zloty 4.0867 Romanian Lei 4.4460 Swedish Krona 9.2830 Swiss Franc 1.0410

0.7198 1.9557 27.118 7.4623 313.54 8.9637 4.1985 4.4552 9.4026 1.0453

35.3000 -0.0006 -0.214 0.0053 7.00 0.5567 0.1118 0.0092 0.1196 0.0043

0.46% -0.03% -0.78% 0.07% 2.28% 6.62% 2.74% 0.21% 1.29% 0.41%

Period: Week 21 - 28

for its products to trigger this, so it should perhaps be seen as part of the general market malaise. Other big fallers over the same period included Hyundai, Kobe Steel, Komatsu and Wacker Neuson. Some of the falls for the Asian manufacturers may be linked to the strange things which have been happening on China’s stock markets. Until early June, Chinese shares had enjoyed a near year-long rally, despite the lack of any underlying economic good news to support it. The effect was thought to be more of a technical impact as the state loosened requirements for bank deposits, allowing money to flow to the stock markets. This seemed to create a bubble, with stocks becoming overpriced against the backdrop of unspectacular (for China) economic growth. But when the inevitable sell-off came, the Chinese government took some unusual steps to try to shore-up its over-inflated market. These included providing loans to buy shares, encouraging state funds to invest, restricting selling, particularly shorting of shares, and suspending IPOs. The problem is that the markets kept falling, which is a new experience for a government which is used to being able to manipulate and control its economy through intervention. The issue is not so much the fall of the stock markets, but the fact that having tried and failed to control the drop, the Chinese government may have made the

panic worse than it should have been. These concerns have spread, to a certain extent, to neighbouring countries like Japan and South Korea, which are among China’s main trading partners. Meanwhile, contractors got off relatively lightly, with the CEC Index for the sector losing 4.56% of its value between weeks 21 and 28. As in other parts of the construction industry, more companies’ share prices fell than rose during the seven-week period, but there were some useful gains for the likes of UK contractors Carillion, Keller and Kier. On the down side, there were double-digit losses for Balfour Beatty – following yet another profit warning – Bouygues, FCC, Mota Engil, OHL, Sacyr and Trevi Group.

CURRENCIES Despite the threat posed to the European single currency by a Grexit, the Euro had a reasonable few weeks against other

Early summer weakness Following May’s cool-down in sentiment, results for the June CE Barometer survey pointed to further softening. In headline terms, the picture remained positive, with the overall CE Climate for the industry coming in at a balance figure of +17.8%. The balance figure is the percentage of positive responses minus the percentage of negative responses. However, compared to May’s result of +22.2% and April’s figure of +30.3%, this pointed to a steady softening in sentiment over the early part of the summer. A summer slow-down is often seen in the CE Barometer’s results, but it tends to come in the prime vacation period of July and August, rather than this early in the year. The figures could therefore point to a genuine market slowdown, rather than a seasonal effect. Indeed, when asked about current activity levels, a positive balance of just +1.7% of respondents said they expected to busier in June than the previous month. This compared to a figure of +23.5% in May, and so was clearly indicated a big step down in confidence. It was the main reason that the CE Climate figure was significantly lower in June than in May. But there were other signs of weakness. A positive balance of only +7.8% of respondents said activity levels in June were higher than a year previously – again a big jump down from the results to this survey question in April and May. But respondents were nothing if not optimistic about the future. A positive balance of +44.0% of people who took the survey said they expected activity levels to be higher in a year’s time. Of course, with other results indicating the industry had a tough time in June, this is perhaps to be expected – a “things can only get better” mindset. ce

BOOM

CEE (Equipment) CEM (Materials) CEC (Contractors) CET (Total) Dow FTSE 100 Nikkei 225 CAC 40 DAX Xetra

TAKE PART

currencies. It was up against major exchange currencies like the British Pound, Japanese Yen and Swiss Franc, as well as most of the other European monetary

Period: Week 21 - 28

Beginning End of period of period 293.67 186.34 217.72 227.04 18285 7012 20203 5119 11805

CESSION

The survey, which takes just a one minute to complete, is open to all construction professionals working in Europe. The CE Barometer survey is open from the 1st to the 15th of each month on our website. ■ Full information can be found at www.cebarometer.eu

KEY INDEXES Index

WN TURN DO

British Pound Japanese Yen Swiss Franc US Dollar

Change

U UP T R N

RESERVE CURRENCIES

277.62 175.17 207.78 214.68 17549 6633 19780 4866 11212

Change

Change (%)

-16.06 -11.17 -9.94 -12.36 -737 -379 -423 -254 35

-5.47% -5.99% -4.56% -5.45% -4.03% -5.41% -2.09% -4.95% -5.02%

units. Its only real losses between weeks 21 and 28 were against the US Dollar (-0.33%) and the Czech Koruna (-0.78%). Again, this illustrates that the finance community seems relaxed about the potential outcome of Greece’s talks with its creditors. This either means they have minimised their exposure and have otherwise priced-in the impact of a Grexit, or that they have taken the view that the stakes for the Eurozone are so high that Greece will be kept in the currency bloc, no matter how many final deadlines pass and how ill-tempered the talks become. It is probably a combination of the two. ce CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 2015 Finance.indd 19

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20/07/2015 09:03:13

LAW AND CONTRACT

Electronic disclosure – get with the protocol David Greenwood, associate in the London office of Pinsent Masons, examines some of the pitfalls at the point of disclosure in dispute resolution

isclosure is the stage in a dispute resolution process where the parties put their cards on the table and let the other party – or parties – see their documents. In years gone by, that used to mean dusting off the hard copy project files and site diaries, and handing over boxes and boxes of paperwork for inspection. Now e-mail is so prevalent and it is commonplace for a contractor to generate many thousands – and often millions – of electronic documents during the currency of a project, it is less straightforward to identify and disclose the relevant documents. While concentrating here on the steps a party must take to comply with an order for Standard Disclosure in the Courts of England and Wales, many of the same pitfalls and techniques have a broader relevance to any disclosure exercise, whether in arbitration proceedings, a different jurisdiction or both. Disclosure is likely to be contentious. Parties are often suspicious of their opponent’s approach to disclosure, fearing that the really important documents will be omitted. One way to avoid criticism later down the line is to agree a joint disclosure protocol with the other parties at the outset. In March 2013, TeCSA, TECBAR and the Society of Construction Law jointly produced some practical tools for operating in the eDisclosure arena. One such tool was a draft

eDisclosure Protocol. While specifically designed for cases conducted in the Technology & Construction Court, it can also be used in any piece of civil litigation. The eDisclosure Protocol provides standard wording to help parties agree how they will conduct document identification, preservation, collection, processing, review and exchange. Agreeing a disclosure protocol – whether using the standard wording from the TeCSA/ TECBAR/SCL eDisclosure Protocol or a bespoke process – will bring the disclosure debate to the fore earlier and, provided both parties comply with the protocol, neither party should have nasty surprises or real cause to complain after exchange of documents. While some more prudent contractors might preserve and organise their documents with disclosure in mind, even before any dispute has crystallised, for the majority of contractors the process of preserving the potentially relevant documents, data mapping and agreeing a collection strategy only starts once a formal dispute resolution process has begun or is firmly on the horizon. The TeCSA/TECBAR/SCL eDisclosure Protocol encourages parties to list their data custodians and electronic document repositories. Before a party can sensibly populate this part of the protocol, it has to fully understand its own IT infrastructure and the names of the individuals who are

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most likely to unlock its relevant documents. Time spent data mapping and discussing the respective lists with the other party (or parties) at this stage can save time and costs in the long run.

TECHNOLOGY Having collected thousands – or millions – of electronic documents from servers, hard drives and laptops, there are a number of technology driven techniques to reduce the number of documents that need to be reviewed. In the first of three examples which might be agreed in a disclosure protocol, the parties often agree to use positive or negative key words as a means to cull the document universe. Positive key words are used to extract documents which do not contain any of the positive key words, whereas negative key words are used to extract documents which do contain a negative key word. There is no need for each party’s lists to be identical, as each party’s key words will be applied to its own unique data set. In a second example, the computer can identify duplicates and near duplicates, and remove them from the document population. Thirdly, the computer can identify junk e-mails (such as java script with no tangible content) and remove them. Key words are often a contentious area and months can be wasted negotiating precise terms and Boolean operators. While the second and third examples are less likely to be controversial, the disclosure protocol is often used to record the agreed approach. The traditional two-stage review envisages paralegals reviewing for relevance during the first stage review, and then

more qualified lawyers reviewing a reduced pool of documents for relevance and privilege during the second stage. While this remains prevalent, TeCSA/TECBAR/SCL eDisclosure Protocol refers to computer assisted review, sometimes known as predictive coding. Computer assisted review is the process whereby a lawyer, who is well versed in the subject matter of the case, teaches the computer which documents are relevant and which are not. The computer then applies its understanding to the full population of electronic documents. While this technique is very popular in the US, it is less well tested in Europe. Nevertheless, the increasing capability of the software, together with the perceived time and costs savings, means that computer assisted review is likely to become more popular over the coming years. Parties often agree not to provide a list of electronic documents. This is particularly the case where the electronic documents are exchanged by hard drive, as the accompanying schedules of metadata are tantamount to a list in any event. Similarly, the logistics for exchange are typically agreed informally between the parties. The disclosure protocol should, however, deal with the treatment of privileged material, the provision of a privilege log and how to claw back inadvertentlydisclosed documents in more formal, precise terms. Disclosure can be a hotbed of controversy, debate and dispute. It often takes far longer and costs far more than expected, often leaving the parties feeling short changed. Agreeing a sensible disclosure protocol with the other party – or parties – at the outset, should go a long way to protecting against these common pitfalls. ce CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 2015 Law and Contract.indd 21

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20/07/2015 09:04:32

FIEC

Budget for transport, energy and telecomms The recent early announcement of a record investment from the European Commission came as a surprise – but a good one, according to FIEC

n 29 June, the European Commission announced a record investment of €13.1 billion granted to 276 European transport infrastructure projects selected in the framework of the first call for projects of the Connecting Europe Facility (CEF) – the new budget line dedicated to transport, energy and telecommunication. Together with the recently adopted Juncker Investment Plan – which is expected to mobilise not less than €315 billion, mostly from private investors – the CEF is intended to play a major role in responding to the EU’s investment deficit, which is priority number one of the European Commission. Beyond the transport sector, this investment should be of benefit to Europe’s growth and jobs in a broader way. This early announcement came as a good surprise, as the European Commission originally said that the list of selected projects would be presented “during the summer”, without further details. Moreover, while a sum of €12 billion was originally budgeted for this call, the European Commission exceptionally managed to mobilise one more billion. According to the Transport Commissioner, the Slovenian Violeta Bulc, this is the largest

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investment plan ever made by the EU in the transport area. Also, this investment should lever additional public and private financing for a combined amount of €28.8 billion. Indeed, the EU contribution represents a co-financing for projects. The EU’s contribution share varies between 20% and 80%, depending on the type of project. These 276 projects have been selected from among 700 proposals submitted following the call for projects launched in September 2014, and requesting funding for a total of €36 billion – that is, three times more than the available envelope.

ADDED VALUE Subsequently, the projects have been selected according to their highest European addedvalue, as well as a number of other criteria, namely favouring projects of the Core Network of the Trans-European Transport Network (TEN-T) – that is, the nine European Corridors identified – and environmentally-friendly modes of transport, in particular, rail, inland waterways and ports. Flagship projects selected include, among others, the trans-Baltic Rail Baltica corridor project, the Brenner Base Tunnel between Austria and Italy, the Fehmarn Belt Fixed Link between Germany and Denmark, as well as the Caland Bridge with the Netherlands. Other smaller-scale projects target cross-border links. All in all, France, Germany and Italy get the lion’s share of this investment. In particular, France managed to secure almost €2 billion of CEF grants for the Seine-Escaut waterway link with the Benelux countries, and the Lyon-Turin railway tunnel with Italy, as well as other smaller ports and cross-border projects. This is seen as a real success by the French Government. This list of projects was due

to be officially adopted by the CEF Committee on 10 July, after having received opinions from Member States for the official adoption of the funding decision announced. The Executive Agency for Innovation & Networks (INEA) will then establish the individual grant agreements with the beneficiaries until the end of the year, and follow up the implementation of the selected projects. A new call for proposals will be launched in October 2015, which will receive an envelope of €7 billion. In the framework of the CEF, a total of €24 billion will be made available until 2020 in order to co-finance TEN-T projects in EU Member States. Some €11.3 billion of this total amount will be dedicated to cohesion countries – that is, basically, Eastern European countries. According to the Commission’s estimates, the implementation of TEN-T could help create 10 million jobs and increase European GDP by 1.8% by 2030. Among the other major proposals which have been selected for EU funding under the CEF are, on the Baltic to Adriatic corridor, the Koralm railway line from Graz to Klagenfurt in Austria; the lifting

of bridges and the upgrading of the Belgian Albert Canal; work to upgrade the Karlsruhe, Germany, to Basel, Switzerland, line; the expansion and new construction of the Germany high speed line from Stuttgart to Wendlingen; the construction of a railway line from Wendlingen to Ulm, also in Germany; and the upgrading of the line from Oldenburg to Wilhelmshaven in Germany, with electrification, subsoil improvements and new construction for some sections. In Spain, the Mediterranean corridor section between Valencia, Tarragona and Barcelona, the implantation of UIC rail gauge has been selected, as well as phase two of the new southern rail and road access to the port of Barcelona. There is also a new lock at the port of Terneuzen in the Netherlands; improvements to North Adriatic ports; studies and work on the Atlantic corridor, on the section between Bergara and San Sebastian in Spain, and Bayonne in France; a new line for Bordeaux, France; the modernisation of the line from Serqueux to Gisors in France; and the redevelopment of Dublin Port’s Alexandra Basin, which will create capacity and remove a bottleneck at a core port. ce

These 276 projects have been selected from among 700 proposals submitted following the call for projects launched in September 2014, and requesting funding for a total of €36 billion – that is, three times more than the available envelope CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 2015 FIEC.indd 23

20/07/2015 09:06:05

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20/07/2015 09:09:16

CECE

The implications of modern technology This year’s CECE-CEMA Summit in Brussels will be putting disruptive construction equipment technology firmly in the spotlight

igital technologies and new business models are transforming traditional value chains in the construction equipment industry. The implications this has for the whole sector and its people, individual companies, construction processes, for Europe as a manufacturing location, and for the design of

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suitable EU regulations, will be discussed and examined at the CECE-CEMA Summit, in Brussels, on September 23 and 24. Construction machines are already high-tech inside. They are getting smarter and smarter with every generation as digital technologies have made their entry into the sector. They make it easier and more profitable for companies to bundle equipment and services together. Companies already integrate intelligence and connectivity into construction machines themselves. So-called “smart services” are becoming more and more an integrated-portfolio in the construction equipment industry as an excavator is sold together with regular monitoring and maintenance services, and a machine tool is sold with adaptable software solutions. Machines are getting tailored more and more for a specific job for a specific customer.

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Machines, operations, services and people are increasingly connected to each other. “Big data” is in the business, as machines talk to each other, the soil and other conditions on job sites can be surveyed with highprecision tools to the operators’ seats, or even by drones. Intelligent machine control equipment is able to handle blades or buckets automatically, so that operators can perform high-precision work. Construction data will be stored and can be used for other machine appliances. By using these technologies, they also support what today is called smart construction jobs. Construction equipment manufacturers put a great deal of effort into achieving safe and highproductivity jobsite operations by connecting all information on sites through information and

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communication technology. They also apply its accumulated data to the maintenance work on ageing infrastructure, and reconstruction of natural disaster-destroyed regions. What is surprising is that this happens almost unnoticed by policy makers and the public. Politicians sometimes seem worried that too few European businesses are seizing the opportunities offered by digital technologies, and that they are slow to change or aren’t investing enough. The boundaries between industry sectors are already blurring. The value is being reshuffled among business partners, old and new, and across the value chains. According to a recent report launched by the European Commission, in the near future, 30 to 40% of the automotive value chain may pass through digital platforms. This means that our industry needs to be even smarter to reorganise the value chains to make them more agile, responsive and competitive. At the CECE-CEMA summit, organised jointly by the construction and farming equipment trade associations, the industry will put these exciting developments in the public spotlight, and reflect on the impact on the regulatory framework, which will have to keep up with the new realities. It will consider whether Europe will be able to provide the right regulatory framework and the necessary incentives to support the investments companies are making in order to be at the forefront of innovation. The industry is calling for a competition-fit framework to help master the transformation into the new, digitally-driven world, integrating new developments and providing stability where it is needed.

Industry panellists will discuss with politicians how EU regulators can support the smart machine trend and establish the right framework to unleash the potential of machine manufacturers in Europe.

SMART REGULATION This is why the conference theme was chosen to be Smart Regulation for Smart Machines. The event offers a chance for industry leaders to talk to policy makers in Brussels, and to address industry and company-specific concerns, doubts and needs. High-level speakers will come from major European construction equipment firms, the European Parliament and the European Commission. The event’s second day will feature a Technical Forum, focused on intelligence in innovation and information technology, as well as the traditional Economic Forum, which will provide an update on the general scenario of the construction equipment sector. The second part of this forum will be an interactive panel discussion. Europe and North America are currently the growth engines for the worldwide construction equipment industry. It is not natural that mature markets rank highest in equipment sales growth. It will discuss whether the renaissance of established markets will continue, further fuelled by the envisaged EU-US trade agreement, or whether the focus will shift back to emerging markets when the recovery in North America and Europe has come to an end. Another spotlight will be on engineers of the future. Inovative and creative technical experts and young engineers will present their projects. Registration for the summit is open, and further information is now available at www.cece-cema-summit.eu. ce CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 2015 CECE.indd 25

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20/07/2015 09:14:34

ATTACHMENTS

Hooking up Efficiency, ease of use and safety are among the most important elements of an attachment. Sandy Guthrie reports on the latest developments

The new Cat Pin Grabber Coupler for hydraulic excavators is designed with safety and performance in mind

he ways an attachment can be fixed to a machine are always being updated and improved to help the operator, and to meet the demands of the modern jobsite. The new Cat Pin Grabber Coupler for hydraulic excavators, for example, is said to be designed with safety and performance particularly in mind. Its two-stage locking system is said to ensure positive work-tool engagement and provides audio/visual verification of proper attachment for the operator. The new coupler’s internal mechanism then combines with continual

hydraulic force from the machine and actual digging forces to keep the work tool secure. Cat said the coupler’s efficient design not only reduced weight, allowing big bucket payloads without compromising strength or durability, but that it also maintained optimum breakout forces and digging power. The new coupler is available in a narrow configuration that remains within the width of narrow trenching buckets to reduce backfilling. It is available for excavator models 311 through to the 349 (D, E, and F Series) and is compatible with Cat work tools and most competitive buckets. In addition, most F Series models have factory-installed auxiliary hydraulic systems ready to operate the coupler. Geith launched a mechanical coupler earlier this year – with two others expected soon – for use on compact excavators from 2 to 4 tonnes. Geith’s new mechanical coupler claims a fast release mechanism that ensures speedy operation and ease of use

The new mechanical coupler is designed to increase the efficiency and productivity of a mini excavator with its single visit quick release, and ease of use and low maintenance. Jürgen Gremez, global sales and marketing manager, said that an attachment could be picked it up and secured in one easy movement. An audible sound and two visuals confirms to the operator that the attachment is properly engaged and in a safe position. The release tool provided is used to disengage the dual locking system. The ability to reverse buckets is said to increase versatility while the low tip radius maximises breakout force. Geith added that the fast release mechanism ensured speedy operation and ease of use. It said that operating the new coupler with standard pin on attachments – with fixed centres – made it a cost effective and economical solution. Two other mechanical couplers – for 1 to 2 tonne and 4 to 6 tonne excavators – will complete the range this year. The fully automatic Liebherr Likufix quick CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 2015 Attachments.indd 27

20/07/2015 09:08:42

ATTACHMENTS coupling system, which has been feature on Liebherr hydraulic excavators for years, is now also available for wheeled loaders in the midsized design series (L 524 to L 542). It said that Likufix made Liebherr the only construction machine manufacturer to offer an automatic hydraulic coupling system for wheeled loaders combined with a hydraulic quick-change system. By using the push button in the cab, the operator can safely and rapidly change between multiple mechanical and hydraulic attachment tools, claimed Liebherr, saying that in the case of wheeled loaders, this could be between high-dump buckets, screener crusher buckets, pipe grabbers or concrete mixer buckets. It said that contractor Feickert – with multiple equipment changes needed during sewer construction in a housing development at Friedrichshofen, near Ingolstadt, Germany – has found that Likufix delivered increases in productivity. Feickert has a large number of machines fitted with Likufix, including 75 hydraulic excavators, six L 538 Liebherr wheeled loaders and an L 524 Liebherr wheeled loader. Axel Schupp, head of machine technology at Feickert, said, “We are very satisfied with Likufix. The system is robust, safe and reliable.”

Liebherr Likufix quick coupling system is now also available for wheeled loaders At Friedrichshofen, Feickert is using two Liebherr A 900 C Litronic wheeled excavators and a Liebherr L 538 wheeled loader. “Rapid changes are no problem with Likufix,” said Schupp, “as this only takes a few seconds in the cab. You do not need to get out because everything is done via push button.”

TILTROTATOR In May, Swedish firm Engcon introduced the sixth tiltrotator in the Generation 2 series – the EC204, optimised for excavators in the 2 to 4 tonne class. It said the new model could be fitted with an integrated grab or extra hydraulic function. Martin Engström, business developer, said, “The EC204 is a product that can be directly traced to customer requests which later materialised into a finished product.”

On the verge of a discovery An attachment to help fix damaged verges is now available on international markets from a company called By The Way, in collaboration with Dutch contractor Kleis, and farm machinery company Lotterman. The Kleiser uses a tyre, but fixed in a horizontal position on a wheeled excavator boom. The makers claim that the rotating tyre digs up the verge alongside newly laid asphalt, placing the loosened material next to the asphalt. It is then compacted by the wheels of the excavator. Harm Lotterman, the man behind By The Way, said that verges had been restored by adding soil from elsewhere or by using a crane with a digger to scrape off part of the verge and filling in the ditch beside the road surface. He said this led to an increase of verge height and drainage problems, which in turn cost time and money to solve. Jan Kleis, from Kleis, had the idea for the new technique. He went to Lotterman and discussed the possibilities of building a machine based on his idea. Sander Lotterman designed a prototype and built it, and during the first trial run, the machine was said to have worked, and even exceeded expectations. Harm Lotterman – who holds the patent and will look to promote the product outside the Dutch municipality of De Wolden, where the Kleiser was first used – claimed excellent results for grass verges, and verges reinforced with gravel, milled The Kleiser uses a asphalt, rubble, etc, as well as rock-hard tyre attached to a clay verges. The attachment’s flexible wheeled loader positioning enables it to work around trees and obstacles.

He said that in the Nordic countries, it was as common to have a tiltrotator on smaller machines as it was on the slightly larger models, and many customers in recent years have called for a more powerful model than the EC02B. In the long term, it will be replaced by the EC204. There have been some changes in ownership in the attachments world this year. Doosan recently sold 100% of the shares of French company Montabert to Joy Global, a leading supplier of advanced equipment, systems and services for the global mining industry. According to Joy Global, the Montabert product line will complement its existing fleet of hard rock equipment. In Sweden, Investment AB Latour – a mixed investment company – signed an agreement to acquire 18% of the holding company for Steelwrist through its Latour-Gruppen. The idea behind the acquisition is to build an industrial group, with Steelwrist as a key element, in the area of quick couplers, tiltrotators, electronics and tools for excavators and other tool carriers. Stefan Stockhaus, CEO of Steelwrist, said, “Latour’s long-term investment perspective is very important for the future development of the group, and we can now more actively look for faster expansion opportunities, both in terms of geographies and products. “The objective is to develop further the very competitive position we already have in our home market internationally.” Björn Lenander, CEO of Latour Industries AB and a new board member in the company, said, “Today, more than 90% of all new excavators sold in Sweden are equipped with a tiltrotator, but the penetration is less than 5% in large and nearby markets like Germany, France and the UK. Engcon’s EC204 is optimised for excavators in the 2 to 4 tonne class

CONSTRUCTION EUROPE JULY-AUGUST 2015

CE 07-08 2015 Attachments.indd 28

20/07/2015 09:08:55

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ATTACHMENTS “We are, therefore, strongly positive regarding the growth potential in Steelwrist and will work actively together with the other owners to strengthen further the company’s position as the fastest growing manufacturer of tiltrotators in the world.”

CHANGE OF NAME Another Swedish company has a new name following ownership changes. Indexator Rototilt Systems has officially changed its name to become Rototilt Group. It said the name change was a natural development of the ownership changes in Indexator companies in October 2014. CEO Anders Jonsson will now focus his ownership and commitment on Rototilt, while sister company Indexator Rotator Systems is now owned by Hans and Pia Jonsson together with Åke Karlsson. Rototilt said that under this “undramatic change” lay a larger, longterm decision about continued product development and a determined marketing initiative in North America and Europe. Jonsson said, “We see enormous growth potential in places like North America and Central Europe where tiltrotators are still not used to the same extent as in Scandinavia, but where developments are beginning to pick up speed.”

Geith coupling chosen by French company The Guyonnet Terrassement Company, which specialises in public works in the Vendée region in the west of France, was looking for an intermediary solution between its Engcon and Nox couplers to equip its JS210 excavator from JCB. General manager Lionel Guyonnet said, “Our challenge was simple – we needed a coupler without the offset that gets spoiled in time.” Dealer M3, which operates from Brittany to the Basque country and is a historical partner of Guyonnet Terrassement, noticed that, in the west region of France, clients usually used an offset on the excavator boom. Matthieu Bonnet, who has dealt with Guyonnet for several years, said this habit led to an important and costly modification of the excavator. He suggested, therefore, the PowerTilt with an integrated Geith coupler. “They were four competitive advantages for this solution – no modification to the machine boom, easy and rapid assembly on the excavator, reduced costs and the reliability of Geith products,” he said. Guyonnet Terrassement, which works for demolition sites as well as outdoor construction, used this Geith-JCB coupling for the past nine months, especially for landscaping and grinding. Lionel Guyonnet said, “Since we were already using hydraulic couplers, the adjustment period was natural and spontaneous. Today, I especially appreciate the work comfort and the quality of the design, down to the very last detail.” PowerTilt with an integrated Geith coupler was suggested

WHERE

EXPERIENCE COUNTS FRD Europe BV www.frd.eu CONSTRUCTION EUROPE JULY-AUGUST 2015

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ATTACHMENTS Trevi’s RC 20 model is designed to replace traditional oxy-fuel cutting

Rototilt’s compactors come in three sizes

The company said the challenge on new markets lay in explaining the concept of Rototilt “and how it turns an excavator into a very efficient tool carrier”. The key to success for Rototilt, it said, was in a well-established foundation in Nordic countries together with established sales channels, and an increased interest from end users and equipment suppliers on the new markets. Rototilt’s investment in modular production – which allows the customer to determine how the tiltrotator should be configured – will also be a significant success factor, it claimed As needs differ greatly from country to country and from contractor to contractor, all the major manufacturers will need to offer customised tiltrotator solutions, it said, adding that Rototilt already provided this freedom of choice. Rototilt said it was constantly developing new features such as the SeculeLock safety lock, and ICS control system with, for example, auto calibration and shaking-function. The latest Rototilt Positioning Solution connects the tool with the machine control system providing the exact position of the tool to the driver. Rototilt claimed to be continuing its efforts to maximise the contractor’s productivity and minimise the overall cost of ownership. With

its range of compactors, Rototilt claimed to be introducing a combination of efficiency and safety for work in excavations, pipe trenches, banks and on sloping or uneven surfaces. Per Väppling, sales and marketing manager, said, “Getting the job done both quickly and safely is Rototilt’s distinguishing feature. Combining our tiltrotator and compactor also produces a range of practical benefits, including the fact that you can work in confined areas or close to roads without needing to have people on the ground.” As well as working in excavations and on banks, Rototilt’s compactors also claim to be a more efficient solution on sticky ground or uneven surfaces Rototilt’s compactors come in three sizes for excavators from 3 to 30 tonnes and a

ENHANCING PERFORMANCE AND EFFICIENCY THROUGH

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CONSTRUCTION EUROPE JULY-AUGUST 2015

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ATTACHMENTS compaction force of up to 6.5 tonnes. All three models have low flow requirements – from 20 litres/m – and a low weight –190 to 475kg depending on size. Väppling said, “Optimised tools are an important part of our initiative to maximise contractor productivity. Our three complete bucket families make this all the more clear. We are now expanding our range of buckets to include heavier buckets up to 22 tonnes.”

Minnich machine-mounted drills are available in both hydraulic and pneumatic options

RECYCLING BUSINESS Italian manufacturer Trevi Benne has added a new model to the range of equipment and technology for the recycling business, in the recovery and in the separation of ferrous materials for environmental protection. It said its new Rail Cropper RC Series is a dedicated tool for the quick and efficient cutting of railroad and tram tracks within the scrap metal industry. The RC 20 model, coupled to a 15 to 30 tonne class excavator, is designed to replace the traditional oxy-fuel cutting process. Trevi Benne said the specific profile and interchangeable blades allowed the operator to cut the track efficiently, easily and safely. Caterpillar claimed its new E-Series hammers included 47% fewer parts than its D-series predecessors, allowing quicker and easier servicing. There are ten new Cat E-Series hammers – designed for use with mini excavators, skid steer loaders and backhoe loaders – available in both silenced and side-plate versions. Four sizes – H35, H45, H55 and H65 – are offered in two mounting configurations for installation on both Caterpillar and competitive carriers. In the demolition field, Caterpillar Work Tools is introducing three new demolition and sorting grapples.

The G310 GC, G313 GC and G315 GC Grapples are an addition to the current G300 Series. The Cat G300 GC grapples are designed for hydraulic excavators with operating weights ranging from 10 to 19 tonnes. Bert Heijligers, marketing communications manager, said, “Our economical new demolition and sorting grapples are purposebuilt to handle materials and fit our customers’ budget. They are designed to reach a broader family of customers and to compete in a fast growing market.” Cat added that rippers were now available on mini-excavators above 3 tonnes in Europe, and were available on F2 backhoe loaders in Europe, Africa, Middle East and CIS. Minnich Manufacturing’s machine-mounted drills are now available with a number of features which it said were engineered to increase safety and productivity in dowel-pin

drilling applications. They are available in both hydraulic and pneumatic options. Primarily used for full-depth repair, or patchwork, there are units for mounting on excavators, backhoes and skid steers, which Minnich said were particularly suited to horizontal patchwork jobs with a relatively long distance between the areas to be drilled. It said that apart from increased portability, the dowel pin drills were also a safe alternative for operators, eliminating fatigue by using the carrier to transport the drill. Minnich’s pneumatic machine-mounted drills are powered by a compressor, mounted to the counter-weight of the carrier or in the bucket of a backhoe. It pointed out that many patchwork jobs required the work to be done in high-traffic areas, which made it of the utmost importance to use a mobile carrier and drill combination. ce

Cat rippers are now available on miniexcavators above 3 tonnes, and on F2 backhoe loaders

Rotar scrap shear tackles steel During demolition of an old clay processing facility owned by the MTG Mittelhessische Tonbergbau company in the German town of Gießen, demolition company Weimer from Lahnau used the Rotar scrap shear for the first time. The old steel building used to house the Gail steam, stone and clay factory, which went bankrupt in the 1990s. For demolition of the 31m high steel structure, Weimer used two large Liebherr 964 excavators, with the Rotar RSS 50 scrap shear to tackle the steel construction with its supports that were 25mm thick, or more. The 6,200kg RSS 50 was connected to the Liebherr machines using a hydraulic quick-change system, which also enabled the operators to quickly switch between different types of equipment. With jaws of almost 800mm and a cutting power of 955 tonnes, the scrap shear was said to cut effortlessly through the steel beams. The Rotar RSS 50 bites steel of 25mm or more

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4/27/15 1:28 PM 20/07/2015 09:31:11

RENTAL

Still relevant Loxam is Europe’s leading rental company

There is no doubt that construction is still important for Europe’s rental companies. Steve Ducker, editor of CE sister magazine International Rental News, takes a look at that market

espite the well-documented struggles of some markets, particularly in the south of the continent, the construction sector remains hugely relevant to Europe’s rental companies. That’s the conclusion to be drawn from the ERN50, recently published by CE’s sister publication International Rental News (IRN), which ranks European rental operators by revenue. Of the companies listed, more than half supply construction equipment, including four of the top five and nine of the top 10. The combined 2014 revenue for the European-based business of the leading

quartet was almost €2.7 billion, or more than 25% of the €10.6 billion that the companies who made up the ERN50 earned between them.

LEADING COMPANY Europe’s leading rental company, as it was in 2014, is the French group Loxam, with revenues around €150 million higher than the next business on the list. However, it is a sign of the times that Loxam has had to become more international in its outlook in the past couple of years. And it is certainly an indication of the depression that the French construction market has suffered in that time. Despite investing more than €250 million in its fleet last year, and making two high-profile acquisitions outside its own country in the form of the Dutch general rental firm Workx and the Danish access company Dansk Lift, its annual revenue remained almost unchanged in 2014 at €812 million. This compared to €805 million the year before. More recently, the company has found it necessary to go outside Europe altogether to grow the business. In April, it bought an initial 25% stake in the rental firm Degraus of Brazil, which was only Revenues fell at Ramirent

its second venture away from Europe in its history, with a commitment that it would still be in the Brazilian market in 20 years’ time. However, managing director Stéphane Henon refused to write off Loxam’s traditional rental base. “Nothing has fundamentally changed,” he said. “Outside France, the recovery has started, most notably in northern Europe but also in Spain. Benelux had a reasonably good start to the year. It was the right timing in terms of the acquisition of Workx. Denmark is better than it was and Dansk Lift has given us some good synergies with general plant operators. “But activity in France is challenging – it’s a post-election year. We feel that there could be some measures taken by the government to improve the situation, but we don’t believe these would have a major impact before 2016.” He continued, “At the moment, civil engineering projects are decreasing, and when we listen to our customers they tell us they are struggling. “We are not managing big contracts with big customers. We’re managing thousands of small customers, hundreds of thousands of pieces of equipment and more than 600 branches. CONSTRUCTION EUROPE JULY-AUGUST 2015

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RENTAL “We’re always looking for diversification,” said Henon, “in the fleet, in a new range of equipment every year.”

NORTHERN STRENGTH The strength of the northern European market to which Henon referred is reflected in the identities of the second and third placed companies in the ERN50 – the Finnish-based duo of Cramo and Ramirent. Although they were the only companies in the list apart from Loxam to achieve more than €600 million of rental revenue in 2014,

both suffered a slight decrease compared to 12 months earlier. In Ramirent’s case, where its revenues fell from €634 million to €614 million, this could be explained by the fact that its areas of operation included a joint venture in Russia and Ukraine, an area that was both depressed and unstable at the same time. Closer to home, Ramirent enjoyed a brighter start to 2015 by signing a €40 million contract with Swedish property company AMF Fastigheter. This was to supply rental equipment for a major construction project

ERN50 European rental revenues 2014 RANK 15 14

11 22 33 44 56 65 77 8 15 9 13 10 10 11 8 =12 9 =12 11 14 14 15 12 16 17 17 16 18 19 19 21 =20 18 =20 20 22 23 23 22 24 26 25 27= 26 24 27 29 28 31= 29 30 30 37 31 35 =32 27= =32 36 34 31= 35 33 =36 34 =36 41 =38 40 =38 39 40 38 41 44 =42 45 =42 43 44 42 45 46 46 47 47 49 48 48 =49 50 =49

COMPANY

Loxam Cramo Ramirent Algeco Scotsman Sarens Kilotou Speedy Hire A-Plant (Ashtead) HSS Hire Zeppelin Rental Liebherr-Mietpartner Mediaco Levage Boels Verhuur Aggreko HKL Baumaschinen VP PLC Lavendon Group TVH Group Select Plant Hire Portakabin Mammoet Holding GAP Group ADCO Lambertsson Sverige Ainscough Crane Hire Nordic Crane Hewden Compagnia Generale Trattori Riwal Brandon Hire Prangl Gesellschaft Peinemann Holding Jewson Tool Hire Touax Utleiecompagniet Hertz Equipment Rental Corp Atlas Copco Specialty Rental Div Foselev Pekkaniska Group General de Alquiler de Maquinaria (GAM) Salti Skanska Maskin HUNE Rental Arcomet Grupo Eurogruas De Boer Structures Nixon Hire Gruppo Venpa 3 Malthus Matebat TOTAL (€billion)

2014 REVENUES €M

812 652 614 Est 595 Est 480 458 422 391 366 348 315 300 300 295 292 265 253 208 Est 205 Est 200 Est 200 180 Est 175 155 150 Est 145 136 115 110 103 97.6 95 Est 95 94.1 88.9 Est 85 Est 85 Est 80 80 74 67 Est 65 Est 65 65 Est 60 58 Est 47 Est 45 Est 35 35 10.64

in Stockholm which is scheduled to provide 35,000m2 of buildings and infrastructure by 2019. Despite this, however, chief executive Magnus Rosén described the first quarter of 2015 as “mixed” and said he was “not satisfied” with the level of profit produced in those three months. He did look ahead to a better 2016, which suggested that the raft of management changes introduced at the start of this year – leading to Rosén himself assuming overall control for Scandinavia, with Anna Hyvönen responsible for North Central Europe – may have had a greater impact by then. Cramo also went through a change at senior management level, with Eric Bengtsson, executive vice president of Scandinavia and A-Plant has moved into the top 10 of the ERN50

CONSTRUCTION EUROPE JULY-AUGUST 2015

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RENTAL Cramo’s Koivula – first quarter was promising

managing director of Cramo Sweden, leaving. Former CEO Göran Carlson replaced him. The group’s current president and CEO, Vesa Koivula, who is also president of the European Rental Association, described Cramo’s first quarter of 2015 as “promising” and quoted research from the construction industry forecast group Euroconstruct that said the company could expect to see growth in all its major markets except Estonia, Latvia and Russia.

largest of any European-headquartered rental company. It recently announced that it had signed a €70 million excavator and telehandler deal with JCB, having invested almost €50 million in 1,000 machines with the same company the year before. It coincided with JCB supplying the 10,000th machine since the first was purchased by A-Plant more than 25 years ago. JCB described it as one of the biggest orders it had ever received, and the significance for A-Plant was also considerable. Marketing director Asif Latief said, “This is the biggest order we have ever placed for JCB equipment, and this substantial investment in new machines signals our intent to offer our customers one of the youngest fleets in the industry.” With 135 service centres, 2,700 employees

and 30,000 customers across the UK, part of A-Plant’s growth has come from its programme of opening Tool Hire Express stores around the country, which aim to serve both trade and general public users under the same roof. One of its latest versions is in Widnes, Cheshire, in the north of England. It is

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NEW IN TOP 10 The real story could be found further down the list, with the UK’s Speedy Hire being joined in the top 10 for the first time by A-Plant – part of the Ashtead Group that also includes the American company Sunbelt Rentals – and HSS Hire. The presence of all three companies, who together accounted for annual revenues of almost €1.2 billion in 2014, confirmed both the strength of the UK construction market during the year and the extent of the expansion programme undertaken by both A-Plant and HSS. A-Plant, which was named Large Rental Company of the Year at the ERA/IRN European Rental Awards in June, started 2015 committed to a capital expenditure programme of well over €1 billion, easily the

The UK’s Speedy Hire had a steady year

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RENTAL Tool Hire Express is supplying contractors working on the €2.6 million Mersey Gateway project supplying a range of equipment to contractors working on the €2.6 million Mersey Gateway project to build a six-lane bridge over the River Mersey in the county. A-Plant already had preferred supplier status from the Merseylink Consortium to provide items such as tools, plant, powered access equipment and generators for the major construction project. Earlier in the year, A-Plant opened a similar store in Park Royal on the outskirts of London. The location meant that environmental considerations were to the fore, and at the same time A-Plant announced that it had become the first company of its kind to achieve whole fleet accreditation from Transport for London’s Fleet Operators Recognition Scheme.

ENTHUSIASTIC HSS Hire’s planned depot opening programme for 2015 is just as enthusiastic, if not more so, equating to a different set of new premises on a localised level every week.

Reviewing the first quarter of 2015, chief executive Chris Davies said, “We made excellent progress in 2014 as we continued to deliver strong growth across both our core and specialist businesses. We have made an encouraging start to 2015 and trading is in line with expectations. The roll-out of our local branches is continuing to plan and the customer response continues to be positive.”

HSS also backed up its organic growth strategy with the acquisition of All Seasons Hire, a supplier and installer of temporary large-scale heating and cooling equipment to buildings such as schools and hospitals, as well as raising almost €150 million when it listed on the London Stock Exchange in February. The All Seasons deal was worth close to €16 million. Davies said, “The product range is complementary to our existing smallerscale heating and ventilation business, a strong addition to our specialist division, and particularly valuable for facilities management clients.”

ANOTHER STEADY YEAR Speedy Hire was already a member of the ERN50 top 10 and produced revenues of more than €400 million in what was another steady year. The first half of 2015, however, has been a different story, and at the end of June the company announced that its profits for 2016 were likely to be “materially below expectations”. The reasons for the decline were stated as a lack of available equipment during the company’s network optimisation programme; a focus on strategic accounts at the expense of small and medium-sized enterprise customers; and poor customer service caused by the implementation of a new IT system. With chief executive Mark Rogerson stepping down, and Speedy facing its third change of management in 18 months, the company’s share price fell by more than 30%. HSS Hire also experienced a disappointing six months to June and a large fall in its own share price, which dropped by 27%. The worse than expected performance was attributed to weakness in key accounts across a number of sectors, including – ironically given the All Seasons acquisition – heating and cooling. However, the group did say it expected business activity to return to “more normalised levels” during the second half of the year. Despite the recent announcements from HSS and Speedy, the UK could still provide the HSS acquired All Seasons Hire

CONSTRUCTION EUROPE JULY-AUGUST 2015

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RENTAL companies most likely to emulate their 2014 performance this year. VP, which operates in Australia, Singapore and the Middle East as well as Europe, posted a 12% year-on-year revenue increase in the 12 months to 31 March, to €280 million, including more than €100 million from its Hire Station business which supplies small tools and equipment to construction and industrial customers. The company also acquired the trackside plant and equipment rental business of Balfour Beatty Rail for €7.5 million. Chairman Jeremy Pilkington said, “It has been a record breaking year for the group with significant progress made against all key metrics. “The economic outlook in the UK is more positive than it has been for some time and all group business divisions are identifying significant growth and investment opportunities for the future,” he said.

Hewden will probably invest €70 million this year He added, “Hewden is a company with a good brand, but it had possibly lost its way in terms of the direction it was going in. “We invested more than €80 million last year and will probably invest another €70 million this year, but it’s about knowing where to invest.” Murphy said, “We have a broad offering but it’s understated and we need to promote ourselves more and tell people about it.” In his closing address to the European Rental Association convention in June, association president Vesa Koivula said, “The construction market analyst Euroconstruct has estimated that in 2015, construction will increase in most of the European markets. “In the long term, the equipment rental market is expected to grow faster than

‘TIME TO BE NOTICED’ Meanwhile, Adrian Murphy, who took over as CEO of the €136 million-revenue company Hewden in January, has said, “It’s time we were noticed”. Hewden recently completed a major equipment deal with attachment manufacturer Miller, investing more than €1.4 million in more than 180 breaker attachments, having already completed a €2.7 million deal for 90 SDMO generators in February.

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construction, as more and more of our customers want more services and a deeper commitment from the supply chain.” He added, “Changes in demand usually follow those in construction, with a delay.” With the most recent European Rental Association/International Rental News RentalTracker survey also showing the most positivity from rental companies for some months – at least in all markets other than France – the signs for suppliers to the construction industry 2015 and 2016 look good. However, with some of Europe’s economies continuing to behave as unpredictably as they have ever been, those same companies will be bearing in mind that anything can happen. ce

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2015-06-29 14:35 20/07/2015 09:40:04

ENGINES The Kubota U55-4 is powered by a V2607-DI Tier 4 compliant engine.

Stage V planning Work by engine manufacturers is already well underway in preparation for the next round of emissions regulations. Sandy Guthrie investigates some of the latest developments

he spectre of Stage V in the longrunning emissions saga is hanging over the industry like a beacon in the distance, and there is nothing like an important regulation of this sort to concentrate the minds of research and development departments. As Daniel Grant, Kubota UK’s business development manager – engines, said, “For many manufacturers, thoughts have already turned to 2019, the year in which the first round of EU Stage V regulations will come into force – legislation that will affect the whole market, from manufacturer to operator.” Massimo Siracusa, vice president of product development and engineering for FPT Industrial, said, “An increase in demand for industrial engines is projected across the globe, with the potential to total more than 15 million units by 2018. “Meanwhile, the impending implementation of Stage V emission regulations within the EU will remain top of the agenda within the industrial market for the foreseeable future.” He added, “While only 20% of last year’s global production was governed by the strictest emission regulations, with the demand for industrial engines The John Deere 6.8 litre PowerTech PSS engine features EGR and SCR

increasing it is likely that regulations imposed on other countries with regards to emissions and fuel quality will tighten in response, and the upgrade to more recent technologies will be necessary to meet demand.”

INCREASED EFFICIENCY Meanwhile, the current emissions regulations have to be met, and all efforts have been targeted into increased efficiency as well.

JCB, for example, said that with its Stage 4/ Tier 4 Final solution for engines over 56kW, there would be up to a 5% fuel efficiency improvement. For Kubota’s Grant, a key element for engines today is correct maintenance, in order to ensure minimum downtime and maximum productivity – particularly with rental fleets. He said that despite significant advances in technology, the demands from rental firms remained consistent. “They want plant that will comply with the most up-to-date legislation, that it is durable, robust and, importantly, will give them a return on their investment,” he said. “First tier ownership is relatively short in the market now – two to three years being commonplace for fleets prior to being replaced with the latest models. As with all elements of the supply chain, downtime is bad for everyone, so the minimum amount of time needed to be spent on maintenance, service or repairs, the better.” He said the nature of maintenance had changed markedly since the old days of simply checking oil and fuel, and changing filters. “Today, a different skill set and a more complex understanding is required to care for machines with more electronic components and ones with intelligent engines – the introduction of active DPFs (diesel particulate filters) being a key development. “User maintenance is absolutely key to making sure that any downtime is minimised, and it’s in the interest of the hire company to ensure that end users – who will likely use a range of different machines as part of their daily work CONSTRUCTION EUROPE JULY-AUGUST 2015

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ENGINES “This ability to capture vital data has an important role to play as part of maintenance service agreements between the hire company and the manufacturer targeting first time fix solutions.” Many lessons have been learnt from the automotive industry, he added, and central to this has been an emphasis on using enhanced quality lubricants and high quality, ultra-low sulphur fuels (ULS). “By not adhering to correct maintenance practices, the whole life cost of machines can be seriously affected,” he said. “The introduction of more stringent machine regulations has resulted in cleaner, greener and more efficient technologies. “The increased cost involved as a result of developments to future-proof technologies isn’t in doubt, yet the gains in efficiency have resulted in machines that offer greater optimisation and increases in reliability, which is ultimately to the benefit of the hire company, end users and the manufacturers,” he said.

Siracusa, “The upgrade to more recent technologies will be necessary to meet demand” – understand basic functionality of the new powerplants and their specific maintenance practices.” He said that for the most part, typical operators were looking only for compliant machines that would get the job done in the most efficient manner. “As they are not owners, this commitment to look after the asset is not as strong as it might otherwise be, which makes the handover more challenging for hire companies.” Where new technologies like DPFs are concerned, the message about how it works, what it does and the necessity to allow for particular filter regeneration or burn-off, rather than simply override or consistently delay the cycle, is absolutely vital to making sure that the engine works at full optimisation, according to Grant. “When EU Stage IIIB legislation came into effect at the height of the market downturn,” he said, “Kubota took the tough, but correct decision initially to invest in and develop DPF technology, ahead of a DOC-only (diesel oxidation catalyst) solution. “This meant a bigger investment into our service network, training, education, procedures and new maintenance practices. We felt it would give our service network a leading edge in the market and make our

machines cleaner, more efficient and more reliable.” Grant said that advanced DPF-equipped engines enabled equipment manufacturers to collect operational data and monitor how machines are being used in the real world – whether it’s the intervals between maintenance (via the engine’s electronic control unit), or its performance on site.

REMOTE MONITORING One system that keeps an eye on how an engine is performing is John Deere’s PowerSight, which offers remote monitoring, prognostics, diagnostics for John Deere engines installed in OEM equipment. Stephane Cochet, technology integration engineer – telematics – at John Deere Power Systems, said, “Telematics systems continue

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ENGINES to gain traction in heavy equipment-based industries. “Using a combination of advanced hardware, software and communications technologies, a telematics system remotely collects and transmits real-time information about machine usage and health. “If the data is effectively managed and fully supported by expert service personnel, a telematics system can help customers make informed business decisions that increase productivity and reduce operating and maintenance costs.” Cochet added, “This all becomes increasingly important with the release of engines equipped with new emissions control technologies.” John Deere FarmSight for agriculture customers helps capture data for fleet management and maintenance, and now John Deere Power Systems has introduced a corresponding solution for John Deere off-highway diesel engines installed in OEM equipment in Europe – PowerSight. It claimed that PowerSight was an umbrella of John Deere technologies and solutions that integrated to help customers manage their equipment. It features four components – the JDLink machine monitoring system, remote diagnostics and programming, machine health prognostics, and the John Deere PowerAssist mobile app. It can be used for John Deere Tier 3/Stage IIIA, Tier 4 Interim/Stage IIIB, and Tier 4 Final/ >

Fuel regulation from m Parker Hannifin An advanced fuel regulation module, said to be the industry’s first fully integrated CNG (compressed natural gas) flow control and regulation system for medium- and heavyduty vehicles with 5- to 12-litre engines, has been launched nched by the instrumentation products division of Parker Hannifin. n. Claiming to be the global leader in motion and control technologies, Parker said its advanced FM80 withstood ood extreme variations in temperature, flow, vibration, supply pressure ssure and gas composition. It said current gas handling systems were typically comprised omprised of a rubber-like diaphragm regulator, filter, sensors and solenoid noid plumbed together with a multitude of fittings. Unlike these, Parker’s FM80 features an advanced FM80 metal piston-style regulator, or, coalescent filters, pressure sensors, a lock-off solenoid valve, heat exchanger xchanger and low-pressure relief valve, integrated in one compact body. dy. According to Madhukar Puniani, business development ment manager – natural gas systems, “Aside from being the only complete system The FM80 is said solution on the market, the Parker FM80 fuel regulation module to be able to offers several breakthrough features to improve performance and withstand extreme vehicle uptime. variations in “A larger oil sump means longer times between filter drains, temperature, flow, helping increase driver productivity and asset utilisation. Innovative vibration, supply technology prevents freezing problems in the winter and eliminates pressure and gas leakage of gas into coolant from wear of soft diaphragms and seals composition over time.” FM80 was engineered for medium- to heavy-duty vehicles like delivery and day cab trucks, cement trucks, school and mass transit buses, and waste refuse/ recycling vehicles.

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Transforming Your Business. Cummins Tier 4/Stage IV engines are built on a legacy of exceptional reliability and durability. Available for a range of industrial applications from 49 to 665 hp (37 to 496 kW), they use leading engine technologies which delivers the optimum balance of performance and efﬁciency. This provides faster cycle times in a cleaner, quieter package. Cummins has the power to transform your equipment – and business. Visit us at cumminsengines.com or follow us @cumminseurope. +44 1325 554829

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ENGINES Stage IV off-highway engines installed in OEM equipment. “JDLink connects equipment owners, fleet managers and distributors or dealers to equipment in the field by automatically collecting, transmitting and managing information about where, when and how equipment is being used, as well as critical machine health data,” he said. It offers details of location, geofencing,

engine hours, maintenance alerts, idle time, use, fuel consumption, maintenance intervals, other engine settings, optional cellular/satellite dual mode, and apps for iOS and Android mobile devices. Additionally, it provides visibility to the health of emissions components, soot level and diesel exhaust fluid levels.

STRONG RESPONSE Geoff Stigler, John Deere’s sales and marketing director for EAME (Europe, Africa and Middle East), Asia and Australia, said there had been a strong initial response to the company’s latest series of Stage IV engines ranging from 2.9 to 13.5 litre models. Stigler said, “It has taken a significant investment to achieve Stage IV emissions standards. We have been working on this since 2007, through developing SCR (selective catalytic reduction) systems and proving components. “One of the main reasons we have been so careful is that we wanted to make sure that this will be seamless for customers – so that when they get into a Stage IV piece of equipment, we want machines to perform at least the same, if not better, than they did with Stage IIIB and previous stages, in terms of performance characteristics.” He added, “We have achieved increased JCB’s Stage IV Ecomax engines claim up to 5% fuel efficiency improvement

performance with our engine platforms despite now having much more stringent emissions regulations. We’ve achieved a 90% reduction in NOx (nitrogen oxide) and diesel particulate matter (PM). In some cases we have actually increased the power of engine platforms.” Stigler said, “All of our platforms are capable of meeting Stage V emissions levels, though the levels for this have not yet been finally agreed, they are close to doing so. We are in a good position on this.” Massimo Siracusa at FPT said that across the European, American and Japanese markets, near zero NOx and PM levels had been achieved. In the current Stage IV emission regulations, PM is restricted in terms of mass, a level FPT Industrial engines said it complied with, without any particle matter reducing device. Siracusa said, “On top of the PM mass restrictions under discussion for Stage V, a particle count restriction will also come into force – the particle number limit of 1 x 1,012g/kWh for non-road engines will need to be achieved and particle filter traps will become mandatory. “In order to achieve this, FPT Industrial will not deviate from its long-term SCR-only strategy. As one of the few manufacturers to use an Exhaust Gas Recirculation (EGR)-free solution, we will continue to work on the competitive advantages that we have already achieved with Tier 4B/Stage IV.”

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ENGINES Kohler’s KDI Power Unit range is designed for the power ower generation market rket He said the company’s patented nted High Efficiency Selective Catalytic talytic Reduction (HI-eSCR) solution n was being developed further, with ith the new generation incorporating ting a particle filter that was integrated ated on the SCR to fulfil the Stage V emission mission requirements, avoiding any effect fect on the aftertreatment layout. “Our aim with this is to make the evolution as cost-efficient ent for manufacturers as possible, reducing educing layout changes to a minimum. Therefore, no further investment is required red from the vehicle manufacturer, making itt a much more cost-effective solution when compared to more complex systems.” JCB said its Stage IV/Tier 4 Final engine strategy built on the success of its Ecomax

T4i engine that has bee been b n in use in most JCB machines. machines Engines over 56kW meet Stage IV/Tier 4 Final emissions legislation by using a compact SCR system for NOx reduction, while engines less

Foundation of new building The foundation stone for German engine manufacturer Deutz’s new shaft centre was laid recently by Dr Helmut Leube, chairman of the company’s board of management, together with Jürgen Roters, Mayor of Cologne. The building will have a total area of 13,500m2 and will be situated next to all other units at Deutz’s head-office site in Ottostrasse, Cologne-Porz. It will provide 140 permanent positions for the manufacturing of crankshafts and camshafts for Deutz engines. The company said that by bringing together its shaft centre activities at the Porz site from 2016, it would gain logistical advantages thanks to the proximity to the assembly line. It added that the shaft centre was particularly designed in accordance with lean principles aimed at optimising the value chain. Some €26 million is being invested in the new shaft centre, and approximately €15 million of this sum will be spent on the building, including fitting it out with state-of-the-art energy technology. Around €11 million will go on new machinery and equipment. The existing shaft production site in Cologne-Deutz will be vacated in stages, with approximately 130 items of machinery and equipment being moved to Porz between the first quarter and the end of 2016. Dr Leube said, “Our decision to build the new shaft centre represents an investment in our future because we are safeguarding our ability to innovate and compete. The shaft centre will turn Cologne-Porz into an integrated site for large-scale production series.” The construction project, handled by Goldbeck, is expected to take nine months.

Among the people marking the laying of the foundation stone were Jürgen Roters (fourth from the left), and then left to right, Helmut Leube, Michael Wellenzohn of the management board, Werner Scherer chairman of the Deutz general works council, and Margarete Haase of the management board

than 55kW require no aftertreatment to meet the new regulations by using “innovative, efficient combustion technology” to deal with emissions within the engine combustion chamber. It claimed that for engines over 56kW, there would be up to a 5% fuel efficiency improvement, easy installation into existing machinery, and a compact one-can SCR exhaust solution. It added that it would be possible for JCB dealers to de-tier for the used equipment market in less regulated territories. Alan Tolley, director of engine programmes at JCB Power Systems, said, “We have continued to use innovative in-cylinder technology to reduce exhaust emissions within the JCB Ecomax engine, rather than relying on extensive aftertreatment. “Through recalibration, and the addition of our one-can SCR solution, we have delivered a range of technologically advanced engines that meet the requirements of Tier 4 Final within existing packaging requirements.”

TURBO ENGINE Earlier this year, German engine manufacturer Motorenfabrik Hatz launched another version of its 2-litre 4H50TIC turbo engine. The new version – 4H50TI – was developed specifically for export to countries where only diesel fuel with high sulphur content is available. It is available alongside the 4H50TIC DPF, which was introduced in mid-2014. Managing director Wolfram Hatz said there it had been a big jump to these engines, with a lot of test engines needed on the way. The 4-cylinder 2-litre 4H50TIC diesel engine, equipped with the Bosch common-rail system, has three variants, which, depending on the exhaust aftertreatment, are now available worldwide. But Hatz said his company had a philosophy of always making an engine that would fit a special requirement. “We have a whole department of application engineers,” he said. “Our yearly average is to produce 400 engines, but of that, only about 10 are the same.” The newly-developed 4H50TI, without exhaust aftertreatment, has been developed by adapting existing components such as common rail, injectors and high-pressure

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ENGINES pump, and because of the elimination of sulphur sensitive components such as EGR and DOC, it is said that the engine could be operated with diesel fuel with a sulphur content of up to 5,000ppm. Hatz said that because of the elimination of the exhaust aftertreatment and as a result of the requirements of the emissions legislation, the 4H50TI claimed higher performance. The maximum output is 62kW and the maximum torque 265Nm. It said that with just 158kg, the total weight of the 4H50TI was considerably less compared to the Tier 4/Stage IIIB version, the 4H50TIC. The 4H50TI will be available from autumn 2015. On the other hand, the 4H50TIC DPF engine is equipped with a separable DPF and DOC. It is compliant with the Clean Air Act (LRV) of the Federal Office for the Environment (FOEN) in Switzerland and registered in the corresponding particulate filter list. The latest Hatz engine complies with the requirements of the Air Pollution Control Ordinance and can be used in applications which are operated in Switzerland. Hatz said that through the use of the particulate filter in conjunction with the certificate from FOEN, the 4H50TIC DPF may also be used in areas where special demands for the exhaust after treatment apply – for example, for underground use, tunnel construction as well as in emissionsensitive metropolitan areas with their local requirements where often a DPF is mandatory.

DEVELOPMENT WORK Vincenzo Perrone, managing director of engines at Kohler, said considerable development work had gone into its latest 3.4 litre KDI 3404 turbo common rail diesel engine to comply with Stage IV. The series, which ranges between 55 and 100kW in power, is claimed to be the most compact in its class – which the company said was down to its design without a DPF filter. It also claimed to have class-leading fuel consumption, which it attributed to its improved injection system. The four-cylinder KDI 3404 range has an electronically-controlled EGR valve, and has been developed with a focus on improved productivity. It is being built at Lombardini’s facilities in Reggio Emilia, Italy, under the branding of its parent company, Kohler. The new engines complete the existing KDI diesel series, which includes 1.9 and 2.5 litre models, with power options between 30kW and 100kW. Perrone said Kohler had waited until Stage IV regulations were firmly in place before unveiling its latest range. He said, “The range is well positioned to capture the clear trend of engine downsizing – with machines becoming more complex and expensive, there’s the need to optimise performance, efficiency and productivity.”

The Hatz 4-cylinder 2-litre 4H50TIC has three variants

Perrone said that one of the key industry challenges over the coming years would be in terms of the continued development of engine electronics, and how that would improve efficiency further. With the Stage V emissions due in 2019, he said the company would deploy a DPF module that could be easily added to the KD series to ensure it remained emissions compliant. “The key is to integrate the engine into the machine. It’s not enough to have a great engine – we also have engineering application support, which does a great job extracting all the performance possible from our engines. “That’s an area where we excel – we have experts who are very passionate about their work, who are working with customers to engineer the most efficient manner of placing engines into vehicles.” The Power Unit line of KDI Diesel engines has been specifically developed by Kohler for the power generation market, and it has recently been expanded with the addition of a new 3.4-litre model to the range. Kohler Engines have engineered a complete line for the low- and medium-power generator sector, covering a range of 20 to 60KVA at 50HZ (1,500rpm) and 20 to 70KVA at 60HZ (1800 rpm). MTU has been chosen to power Bomag’s new 2m cold milling machines. The German company’s new 2m cold planer generation – the BM 2000/75 – was unveiled earlier this year. With milling widths up to 2,200mm, the new planer is designed for applications in heavy engineering projects such as motorways and airports. It is powered by a 10-cylinder Series 1600 engine from MTU with 567kW output. Series 1600 units comply with Tier 4 emissions regulations without the need for SCR exhaust aftertreatment or diesel particulate filters. MTU said that optimised component

configuration allowed the transmission of high engine power to the milling drum virtually without losses. Bomag also uses MTU drives to power its 1m cold milling machines that are used for the selective milling of lane and ground linings. Its BM 1000/35, 1200/35 and 1300/35 models are each driven by 6-cylinder Series 1000 inline engines that deliver 260kW. They comply with EU Stage IV and EPA Tier 4 emissions regulations and are equipped with both EGR and SCR systems. Markus Lang, product manager for milling machines at Bomag, said easy maintenance and a long service life were key principles at his company “MTU engines fully satisfy these requirements, and the fact that they are also very low on fuel consumption is appreciated by our customers as a big asset,” he said. Volvo Penta has doubled the warranty on genuine Volvo Penta parts and accessories that are purchased and installed at a Volvo Penta dealer. The engine company offers a comprehensive 12-month warranty on genuine Volvo Penta parts, but has extended that warranty to 24 months for parts and accessories that are purchased and fitted at an authorised Volvo Penta dealer. It pointed out that not only was the part itself under warranty, but the labour involved in fitting the part was covered as well. Anna Müller, director of business development for aftermarket, said, “We already provide a generous warranty on our genuine Volvo Penta parts and accessories, and this will continue as a benefit for all Volvo Penta customers. But we wanted to offer an extra level of protection for customers who buy parts and have them installed through our Volvo Penta dealers. “The quality of our parts and accessories, together with our professional dealer network around the world, makes it possible for us to offer even more comprehensive coverage for customers.” ce

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EQUIPMENT

New generation rotary telescopic handlers Four Bobcat models are said to be designed as easy-to-use machines

obcat has launched its new EVO generation of Stage IIIB/Tier 4 Interim rotary telescopic handlers – four models providing maximum lifting heights of 15.7m, 18.7m, 20.5m and 24.1m. The TR38160, TR50190, TR50210 and TR40250 rotary telehandlers have been designed as easy-to-use machines, which Bobcat said meant combining more comfortable and safer operation with the latest developments in the field, and a wide range of new features offering higher performance and increased productivity. The TR38160 EVO model is powered by the Kubota V-3800 DI T 3.8 litre 4-cylinder Stage IIIB/Tier 4 interim compliant diesel engine providing 74.5kW of power at a rated speed of

The TR50190 has a lift capacity of 5.0 tonnes

2,600rpm. The new telehandler offers a maximum lifting capacity of 3.8 tonnes and a maximum horizontal reach of 13.4m. The TR50190, TR50210 and TR40250 models are powered by the FPT-NEF Series 4.5 litre Stage IIIB/Tier 4 interim diesel engine with an output of 105 kW. The TR50190 and TR50210 models both have a lift capacity of 5.0 tonnes, while the TR40250 telehandler has lift capacity of 4.0 tonnes. The maximum horizontal reach in the three models is 16.4m, 18.0m and 20.5m. The TR38160 has a 400° rotating capability and the TR50190, TR50210 and TR40250

models have 360° turntable rotation available. An auto wheels alignment

Tunnel excavator from Liebherr Liebherr-France is launching a new model of the R 950 Tunnel crawler excavator, replacing the R 944 C Tunnel. Developed by Liebherr-France in Colmar, France, the model is dedicated to the construction of tunnels and has an operating weight of approximately 45 tonnes. The Liebherr-designed diesel engine delivers power up to 150kW or an optional 190kW complying with Stage IV/Tier 4 Final. The new machine can adapt to a tunnel height of 5 to 8m. The height adjustment facility automatically stops the movement of the excavator to avoid impact with the surroundings. Liebherr said the short swing radius, as well as the rear and lateral cameras, also minimised the risk of collision with walls, surrounding material and staff on site. It said the productivity and flexibility of the R 950 Tunnel crawler excavator was enhanced by the diversity of the tools in tunnel applications – bucket, hydraulic hammer, drill, drilling rail, etc. It added that the breakout forces had been increased compared to the previous model. The R 950 can adapt to a tunnel height of 5 to 8m

feature – optional on the TR38160 model and standard on the other three models – is said to allow the operator to change the steering modes easily. Bobcat said the three autoalignment steering modes provided excellent manoeuvrability, even in tight and difficult working environments. The stabilisers have both individual and all-at-once activation to ensure machine stability in all types of terrain. Full operation control for the stabilisers and position indicators are provided on the control panel. The four models have a new higher-mounted cab that is said to offer outstanding all-round visibility. A larger back window opens up the field of vision to the rear of the machines. The Double Sensi-Touch Joystick controls have increased functions for the operator which Bobcat said improved productivity while maintaining safety and comfort. It said all important machine functions were displayed on the new control panel, which has a digital display offering a clear overview of machine performance. ce CONSTRUCTION EUROPE JULY-AUGUST 2015

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EQUIPMENT

Volvo models for lesser regulated markets Wheeled loaders are said to provide high breakout forces for powerful digging

olvo has introduced the three-model G Series range of wheeled loaders that are intended for sale in Russia, the Middle East and other lesser regulated markets. The 12.8 tonne L60Gz, 15.2 tonne L90Gz and 19 tonne L120Gz all feature a Z bar linkage that the company said provided high breakout forces for strong, powerful digging and complete bucket fill with the hardest of materials.

The L120Gz is powered by a Volvo D7E delivering 179kW

The machines also feature loadsensing hydraulics that provide power only when required, to help reduce fuel consumption. Power on the two smaller loaders comes from a Volvo D6E

diesel that develops 114kW on the L60Gz and 128kW on the L90Gz. The L120Gz is powered by a Volvo D7E delivering 179kW. The L60Gz and L90Gz can be equipped with a general

Concrete machines from Atlas Copco A new line-up of Atlas Copco concrete machines includes SVE/SVG-truss screed, BG-series trowels and WTS830 spreader wagon, and is described by the company as being safe, simple and light. The SVE/SVG screed is described as a lightweight complement to Atlas Copco’s heavyduty BT90 modular screed. SVE/SVG can handle the 25m wide concrete pours needed in, for example, tunnel, road and exhibition hall construction. A single operator can assemble the screed without special tools, said Atlas Copco. Unlike the BT90, the SVE/SVG is made especially for medium- to high-slump concrete with less pulling resistance. With its new BG series walk-behind trowel range, The BG375 trowel is a high capacity machine operators can fine-tune the machines according to their needs, according to Atlas Copco. The centrifugal clutch available for every model with a petrol engine is a new feature. It said it was a proven solution that engages if the operator lets go of the handle by mistake. The centrifugal clutch is guaranteed to stop the trowel within the 180° to 200° range, well before the handle completes a full turn. The BG375 and BG475 trowels are high capacity machines, available with foldable handles in a short and long version. The BG245 trowel is made for smaller areas but carries all safety features of the larger models. The WTS830 is a new hand pushed wheeled topper spreader that is said to be lighter than other comparable spreader wagons. It has a mesh drum that anchors the topping to the slab and reduces dust during operation.

purpose, standard-duty bucket or a heavy-duty version optimised for loading shot rock, providing durability and wear resistance. The L120Gz can be equipped with a standard- or heavy-duty bucket, as well as a re-handling bucket optimised for handling, stockpiling and loading processed material, including aggregate and sand. The spade nose rock bucket has high penetration capabilities and is said to be suited for loading shot rock, while the light material bucket is a high capacity bucket for low density materials. ce

XCMG’s teles Chinese equipment manufacturer XCMG has unveiled a line-up of three telescopic handlers, with lifting capacities up to 4.5 tonnes and lifting heights to 16.7m. The smallest model, the XCT670-70, has a maximum capacity of 3.5 tonnes and a maximum lift height of 7.15m. It can lift 2 tonnes at this height, and 1.25 tonnes at its maximum forward extension of 3.51m. The XCT670-140 also offers a 3.5 tonne maximum lift capacity, but has a lift height of up to 13.7m at a maximum forward extension of 3.51m. The XCT680170 has a 4.5 tonne lift capacity with a maximum lift height of 16.7m. ce

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