Asia Manufacturing News October 2011

ASIA MANUFACTURING NEWS • OCTOBER 2011

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SUCCESS THROUGH INNOVATION www.asiamanufacturingnews.com

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ASIA MANUFACTURING NEWS • OCTOBER 2011

CONTENTS October 2011

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Reliance on Asia

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raser Cars has been handcrafting Lotus 7 replica sports cars in New Zealand since 1988.

The founder, Neil Fraser, had taken his own hand-built replica to New Zealand’s 1988 National Car Show and admiration for his car produced three orders on the spot. And so Fraser Cars was born.

airly or unfairly, the world is looking towards Asia to be a driving force through the continuing economic uncertainty.

It really is a measure of what the world has come to – large western countries, suffering huge financial stress, looking at where the best economic margins can be found.

The image of Asia reeking of cheap manufacturing companies, flooding the world with product is fairly accurate; however, it is a situation which has been allowed to grow topsy-turvey because the greed of the west has seen profits in the east. Western countries are up to their neck in Asian manufacturing, continually reaching for the bottom line, expecting maximum returns.

NEWS❒❒❒❒❒❒ 4 USING DESIGN AUTOMATION TO

Enough of that.

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Countries in the west see Asia as being stable, with good financial processes and a never- ending need for raw materials from countries like Australia which is supplying so much from the earth to China.

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Countries in the west see Asia as being a steady ship in a sea of high uncertainty across Europe where Greece and Britain, amongst others, are riddled in debt.

All we can do in our part of the world is do what we do best; keep our eye on the ball and work with our manufacturing systems which will continue to reap rewards. As to all the other ‘stuff’, things happen, times change – a lot of it will sought itself out, be refined under new economic structures.

DRIVEN BY TRADITION – HANDCRAFTING SPORTS CARS IN NEW ZEALAND

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REDUCE COSTS AND IMPROVE PROFITABILITY INTERVIEW WITH ALEX JANKOVIC DATA CENTER FINANCE AND INVESTMENT FORUM TO FOCUS ON GROWTH OPPORTUNITIES VIETNAM’S INDUSTRIAL OUTPUT SURGES 14 PERCENT FIRST ASIA-ARAB SUSTAINABLE ENERGY FORUM CLOSES IN NAGOYA DELCAM SUMMIT CELEBRATES ANNIVERSARY VIBRATION-ASSISTED MILLING CAN LEAD TO HIGHER-QUALITY SURFACES

13 INSPECTION GENI ON SHOW AT INNOVATION DAY, 2012

14 AWARD FOR ROCKWELL

AUTOMATION IN SOUTH EAST ASIA

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ASIA MANUFACTURING NEWS • OCTOBER 2011

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CONSUMABLES HAVE LONGER LIFE

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ypertherm, a U.S. based manufacturer of advanced metal cutting systems, is now selling consumables for Kaliburn Spirit plasma cutting systems that last at least twice as long as the OEM consumables.

NEWS❒❒❒❒❒❒

15 SUCCESS

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STORY OF ELECTRONICA INDIA

lectronica India 2011 & productronica India 2011 by Messe München International India Pvt. Ltd., started successfully for the first time at the Pragati Maidan exhibition centre in New Delhi.

NEWS❒❒❒❒❒❒

14 AUGUST MANUFACTURING OUT

22 RAPIDFORM VIABLE CHOICE FOR

16 NIGHT AND DAY RESPOSE WINS

24 EXCLUSIVE ACCESS TO HIGH-

PUT RISES PLAUDITS

18 NINTH INTERNATIONAL

SYMPOSIUM ON MARINE ENGINEERING 2011, 17 – 21 OCTOBER, JAPAN

18 INTERNATIONAL CONGRESS

ON FOOD ENGINEERING AND TECHNOLOGY

19 INTERNATIONAL WORKSHOP ON NANOTECHNOLOGY, 24-27 NOV, 2011 SELANGOR, MALAYSIA

20 ANWELL BREAKS INTO INDIA SOLAR FARM MARKET

20 INSTALLING SOLAR PANELS AT SCHOOLS AFFECTED BY EARTHQUAKE

21 INVESTMENT ON DUAL-USAGE

OF TECHNOLOGY CREATES CORE COMPETITIVENESS

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MODELING FROM 3D SCANS PERFORMANCE DESIGN OPTIMISATION

26 SWITCHING TO PRONEST

NESTING SOFTWARE INCREASES CHUNGYONG’S PRODUCTIVITY

Asia Manufacturing News is published bi-monthly and offers the reader business information and news. Asia Manufacturing News welcomes editorial contributions and encourages readers to share their reflections and views with us. Asia Manufacturing News uses information provided in good faith. We give no guarantee of accuracy of the information. No liability is accepted for the result of any actions taken or not taken on the basis of this information. Those acting on the information and recommendations do so entirely at their own risk.

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ASIA MANUFACTURING NEWS • OCTOBER 2011

technology

Using design automation to reduce costs and improve profitability

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cross most industries today, profit margins are narrow and will continue to become even thinner. Even in segments where margins are relatively healthy, competition and global outsourcing make cost reduction mandatory. Historically, the high cost of engineering has contributed so significantly to the attack on profit margins that numerous attempts have been made to cut the process time or the cost of engineering activities.

Most of these approaches have been point solutions, which can be highly important in their own right, but are not applicable across the board. Design automation, on the other hand, stands out as an effective means of dramatically cutting costs for a well-defined, well-proven range of engineering activities. This is especially so where business needs demand rapid, accurate quoting; consistent engineering; and, most important, minimum time to finished product delivery.

Driving design automation The majority of companies share a common goal of reducing design costs.

Traditionally, they have had two options: (1) to design less and standardise the product range, or (2) to design faster.

If you want to limit your customers’ choices, the first option is fine. However, the pressure to customise products has risen tremendously over the past few years.

In a recent Cincom study, 73 percent of total respondents viewed product customisation as critical for products over $100,000, while another 25 percent considered it crucial even for products under $1,000. This trend will only grow. The Cincom study revealed that 63 percent of engineers have seen requests for www.asiamanufacturingnews.com

customised products increase over the last five years, and 26 percent anticipate that the growth rate will be between 25 and 50 percent in the next two years.

Another survey of CAD users asked key questions about the users’ design processes. All survey respondents were aware of design automation since they work in various industry segments that document paybacks from design automation. These include almost all engineer-to-order products and many custom or customisable products—basically, any enterprise whose product must be touched by engineering for a significant percentage of orders.

A variety of companies across a multitude of industries are

By Sharon Toh,

General Manager SolidWorks, South Asia searching for ways to save time and lower costs in the engineering process. As a result, various vendors refer to different features or utilities as “design automation.”

Unfortunately, most of these are not useful mechanisms for automation because they cannot handle the entire job.

For companies that offer engineer-to-order products, design automation is specifically defined as a system that captures and more or less automatically applies that engineering activity to product variants resulting in finished designs in minimum time.

• System: a controller—rather than a random assortment of features—that provides an overarching workflow. Design automation systems often drive CAD systems and interact automatically with product lifecycle management (PLM), as

technology well as with other engineering and office applications.

• Engineering activity: all the calculations, rules of thumb, engineering precepts, and product lore that go into a product variant.

• More or less automatic: intelligent design automation systems automate some things, usually repetitive or donkey work, and keep their hands off others, generally areas where experienced engineers can quickly assess a design requirement and rapidly supply a creative solution.

• Product variants: families of products derived from a central or standard design that must be touched significantly by engineering before full product functionality can be gained.

From an engineering perspective, you can overcome the difficulties encountered in customising a product by using design automation software. This type of software evolved with CAD technology as a way to streamline customized product development.

The idea is to capture a company’s in-house design rules and thereby simplify the creation of variations on a theme.

ASIA MANUFACTURING NEWS • OCTOBER 2011

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Is design automation effective and efficient?

Design automation systems have been in use since the early 1980s, helping companies to save time and money. Recently, a machine builder accomplished all the engineering that once took 80 hours in less than one hour by implementing design automation.

Within 24 hours, an elevator manufacturer can now create quotes and drawings, including engineering and documentation, which once took weeks with manual methods. A lifting beam company can respond to customer enquiries with general arrangement drawings and a quotation in less than an hour— deliverables that previously took 16 hours.

Even small products benefit— component brackets that took 45 minutes to configure manually at one company are now done in less than one minute.

So, yes, design automation is both effective and efficient.

The benefits of design automation In the table below, the key benefits of design automation are reflected by organisational level.

From the table, we can see that design automation frees up engineering time formerly given to repetitive tasks, recalculation, and specification changes. The resulting benefits apply across the organization, from the individual engineer to the company as a whole.

Design automation in practice Design automation should be viewed as a new way of working, not as a single project with a beginning and an end that is only done once. With design automation, you can literally treat every part of an assembly as a variable design that can be automatically modified by inputs.

Doing so, however, would be a mistake. Your first step is to determine which variable parts require engineering while they are being varied, and which will generally be a subset of a given assembly. Then select a best candidate from among these to tackle the first design, which is typically a redesign that literally takes more time than it is worth.

Choose to design faster—and take your inspiration from the many companies who have successfully implemented design automation.

It is a perfect means to raise your visibility in the company, increase your company’s profitability on custom sales, and allow you to do what you do best—design innovative new products. u www.asiamanufacturingnews.com

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ASIA MANUFACTURING NEWS • OCTOBER 2011

interview

Interview with Alex Jankovic, General Manager Technology and Innovation, Metso Process Technology Mining IQ: What challenges are associated with improving processing productivity without capital investment and how can these challenges be overcome?

Alex: There are two main types of challenges; they include the organisational and technical challenges. Organisational challenges are required in order to implement a new way of operation which will result in increased productivity because we are not implementing any new equipment or additional equipment, so we need to change something to be able to get different results. So these changes mean that organisational changes are changes in KPI drivers, key performance indicator drivers and communication structure in the company. For example, in terms of key performance indicators, the mining manager will not have to minimise his drill and blast cost as one of his KPIs which are standard currently. Instead, his KPI will need to maximise fragmentation of the ore.

There needs to be dedicated engineers in the mining and processing plant and sales department that will be communicating daily in a structured way in order to maximise financial results. This is not the case now. It’s all very much separated and segmented and there usually needs to be additional incentives to the employees in order to improve their overall results. So people will need to be motivated to work harder because this means that a bit more work for everybody in the company. These challenges are real and not easy to implement and we usually have success with this only if we have a champion on site, the person at manager level who is able to enforce those changes.

There are technical changes because we need to change certain aspects of the operation, so we need the type of production process control for a more consistent operation that is crucial www.asiamanufacturingnews.com

for this concept and all aspects of a performance need to improve like people, equipment availability, monitoring systems, et cetera. It is always good to have an efficient data gathering and presentation system to allow this production analysis to be performed from the beginning to the endpoint of sale and this allows a better control and faster identification of the bottlenecks in the process. Also the overall technical expertise of the employees needs to be raised a bit, so these are the technical challenges that are required.

Mining IQ: What benefits can be realised by increasing overall project productivity?

Alex: These are fairly known in our industry. If we can increase the productivity, basically, that means that we’ll produce more of our product. But that’s a very understandable thing but the benefits are even bigger if you look to increase in net present value, because every mining operation has its sort of design life and over the life of the mine, we are meant to extract all of the metals in the ground. So if we do that faster by increasing productivity, that means that we are getting profit from this operation earlier and in terms of MPV, that’s very positive because all accountants know that money loses value over time and as soon as you can get the value out, the finance is often much better. So this should be an additional driver to sort of implement this strategy of increasing the productivity.

Mining IQ: What are the disadvantages of focusing on operating cost reduction of individual segments?

Alex: This is a standard way of operating in the mining process.

A mine processing plant and sales department all work more or less inside their own department, they don’t communicate very well and they have all their own cost that they’re trying to reduce. By doing that they may negatively affect the following steps in the chain of events. So for example, a

mining operation can reduce cost of drilling and blasting and still deliver a required amount of work to the processing plant which is good for them as that means that they can reduce the cost.

But the negative effect of that is if they reduce the cost of drill and blast, the fragmentation will become courser and then plant productivity is going to decrease.

So that’s a negative. So we are losing productivity of the plant so overall the effect is negative.

Another example involving iron ore production complex is for example, the processing plant here can increase the production of magnetic concentrate by producing a slightly lower grade concentrate.

So they can produce more tons and deliver that to the smelting or iron making process. However, in the iron making process, such concentrate would need to be treated with much more energy consumption and this will increase the cost on that stage which usually overweigh the benefits of the reduction of cost in the previous step. So the overall effect is again negative.

So the total overall financial results would be negative of such a strategy, so the whole process needs to be looked from the beginning to the end what’s the most financially viable strategy to implement, instead of just keeping each separate department cost minimised. u Alex Jankovic will be presenting at IQPC’s Business Improvement in Mining in October 2011.

For more information about the conference, to register or to request a brochure please visit: www. businessimprovementinmining. com.au. Or call 61 02 9229 1000 or email enquire@iqpc.com.au.

case study

ASIA MANUFACTURING NEWS • OCTOBER 2011

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Driven by tradition – Handcrafting sports cars in New Zealand

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raser Cars has been handcrafting Lotus 7 replica sports cars in New Zealand since 1988. The founder, Neil Fraser, had taken his own hand-built replica to New Zealand’s 1988 National Car Show and admiration for his car produced three orders on the spot. And so Fraser Cars was born.

Neil ran the business until 2006 when he sold it to his chassis maker, Scott Tristram, who now runs Fraser Cars with his wife, Ida. Based in Beach Haven, Auckland, New Zealand, there are now five people working full-time at the workshop where they build two models, the Clubman and the sportier Clubman S. The cars are available in kit form or as a finished vehicle. However, pretty much every car is unique because owners get choice over a range of components and attributes, from suspension set-up to upholstery, engine model to paintwork.

Manufacturing using traditional skills Quality New Zealand manufacturing is right at the heart of Fraser Cars. “Many people don’t instantly grasp what handcrafted really means,” explains Ida. “Basically we employ hugely talented craftsmen who put their souls into the cars.”

In the workshop you’ll see the pattern pieces lining the walls ready for hand-machining by a man who has worked on everything from specialist sonar buoys for the British Navy through to revolutionary motorbikes built to race the infamous Isle of Man TT course. An exmarine fabricator who forged

his career on luxury yachts uses painstakingly accurate welding methods to take the collection of hand-machined tubes and create the robust chassis. And the hugely experienced sheet metal engineer hand-forms the aluminium body around that chassis using many traditional hammer forming, shrinking and stretching techniques.

Fraser at home and abroad Worldwide there are 325 Lotus 7 replicas built by Fraser with around 35% of those still in New Zealand. Because the business now has a reputation for quality that rivals the company most associated with the replica, UKbased Caterham, they export regularly. Australia and Japan are the main export markets but the company is keen to expand into the US. Scott and Ida are confident that overseas clients aren’t just excited by the car; they are also excited by the standard of workmanship on offer.

Exporting into Japan has been a long-term project for Fraser Cars. In 1991 the business was introduced to Gold Autos in Osaka, Japan. They were keen to link with Fraser to fill a gap in the market. Although classic cars were popular, the original Lotus 7, as well as the Lotus 7 replicas

available at that time, were suffering from reliability issues.

The two businesses set about changing all this with the Fraser replica championing high-quality engineering and New Zealand manufacturing.

Over the next 15 years Gold Autos and Fraser introduced an average of two Fraser Clubmans per month into Japan. Popularity was very much down to the markets’ love of classic cars combined with the Fraser manufacturing skills which boosted reliability and improved the driving experience.

But as world markets suffered in recession, the export volumes have dropped. Fraser now supplies parts and upgrades to Japan with an occasional car being shipped.

But the relationship with Gold Autos remains very strong and Asia remains a key market.

Managing the build today and tomorrow As well as selling cars in Japan, Fraser also buys from Asian manufacturers although only for specific products, particularly the engines which usually come from Japan. Scott continues “We could source more components from overseas but we enjoy tapping into the creativity of our brilliant craftsmen in the Fraser workshop. Our customers choose Fraser specifically because of the handcrafted New Zealand manufacturing that goes into each car.”

For the future, Ida and Scott are keen to push sales at home and abroad with Asia being a major focus. Ida concludes “Fraser Cars has created a great reputation for quality in Japan through its partnership with Gold Autos. And we are really keen to reconnect with Asian markets over the next few years as the global economy returns to stability.” nextSTEP Visit: www.fraser.co.nz

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ASIA MANUFACTURING NEWS • OCTOBER 2011

business news

Data Center Finance and Investment Forum to focus on growth opportunities HONG KONG:

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nvestors in DataCenter and cloud markets will meet with operating companies, firms seeking funding, datapark owners and government representatives at the first Finance and Investment forum for datacenters which takes place in Hong Kong 26th October. (www.datacentresasia.com) Researched and produced by consulting firm BroadGroup, the first forum took place at the Cass Business School in London in 2007 and since then it has become recognized as the only annual international meeting point for investors, operators, professional intermediaries and legal counsel focused on the data center sector. Now, for the first time the forum has been extended to Asia.

The objective of the one-day forum is to bring together stakeholders and players in the sector across the finance and investment community, carrier neutral and carrier owned operational companies, government and regional investment authorities, property interests, law firms and professional intermediaries, to assess where the sector is heading and identify key opportunities.

Discussion will also cover emerging sector opportunities including China, types of finance available, mergers and acquisitions, fund raising activity and business models.

“Data Centers are critical infrastructure assets for all Asian economies and will support the proliferation of cloud, content and business expansion,” commented Hon Samson Tam JP, Member of the Legislative Council (Information Technology) in Hong Kong and who will be www.asiamanufacturingnews.com

addressing the event. “I look forward to participating in this timely forum which will give much needed focus to the finance and investment opportunities in the sector across the region.”

Leading representatives from across the Asia and Pacific region who will also speak include Jonathan Atkin, Managing Director, RBC Capital Markets; William (Bill) Barney, CEO, Pacnet; Bevan Slattery CEO Nextdc; Naoshi Ogikubo, CEO, Diamond Realty Management Inc; Adrian Yong, Managing

Director, CSF; Danny Cheng, Chairman and CEO, Banyano Data Center Solutions Ltd; Daniel Newman, Chief Financial Officer, GDS; Hiroyuki Kanou, SVP NTT Worldwide; Mark Smith, Managing Director of Asia, Savvis; Kosit Suksingha, Executive Director TCC Technology; Chris Wilson, Senior Vice President of Product Strategy and Management, Pacnet; Claude Achcar, Managing Director, Actel Consulting; and Steve Wallage, Managing Director, BroadGroup Consulting.

The forum is supported by Hong Kong Invest, and has as sponsors and partners Actel, Datacentres. com Daily News, Datacenter Journal, Boogar Lists, Bvents, ECM Plus, Allconferences.com and Balkans.com. u

Vietnam’s industrial output surges 14 percent HANOI: ietnam’s industrial output has surged by 14.3 percent from the same period last year, the Vietnam Business News reported.

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The non-alcoholic beverage and pottery/ceramic sectors delivered a 39 percent increase in production, with sugar production rising by 36 percent and flour milling and production up by 24 percent.

Shipbuilding activity however plummeted by 43.3 percent, with chemical and pharmaceutical production falling by nearly 10 percent.

According to the Vietnam Business

News, the country’s consumption index rose by 13.7 percent year-on-year, boosted by sharp increases in the sugar, ceramic products and non-alcoholic beverage sectors. u

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ASIA MANUFACTURING NEWS • OCTOBER 2011

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ASIA MANUFACTURING NEWS • OCTOBER 2011

business news

First Asia-Arab Sustainable Energy Forum closes in Nagoya NAGOYA:

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he Asia-Arab Sustainable Energy Forum, which took place in Nagoya in August with 120 people from 10 countries, along with research groups from Chubu University, the University of Tokyo and the Tokyo Institute of Technology, convened to discuss various aspects of sustainability in the energy supply and the Sahara Solar Breeder (SSB) Project, whose aim is to supply the world with electricity generated from solar power in the Sahara Desert.

An important part of the Forum came from the Algerian team (from USTO, Saida and Adrar), which shared its experiences to date.

The Algerians have been testing their capacity to operate locally in terms of attitude, knowledge, professional skill and institutional skill. The Algerian presence, with their interactive methodology and their participation in the plenary and SSB sessions, allowed the team to pursue a diverse dialog in regard to their research as well as their respective experiences within the SSB project.

The event sought to identify the most important challenges facing the research and economic sectors, and put forward new strategies that will identify the required skills to transform the research prospects based on the analyses and prospects of elementary processes and system design.

The concluding statements: u Basic technologies for the direct reduction of SiO2 purified from desert sands into solar Si have been designed and have reached an experimental verification stage. u We can expect dramatic cost reductions in the fabrication of Si solar cells with this new Si technology, making photovoltaic (PV) power generation in the desert promising. u Photovoltaic power generation from the desert should benefit local communities and be extended to the world. u Thanks to the establishment of a basic understanding on www.asiamanufacturingnews.com

high Tc superconductors and the advent of low cost superconducting tapes, development of various applications such as superconducting dc transmission and distribution systems is becoming reality. u Solar Breeder (SSB) technology, which combines desert power generation and global dc superconducting transmission and distribution, is vitally important to a sustainable energy future.

The 2nd and 3rd Asia-Arab Sustainable Energy Forums will be held in Algeria next year and Hirosaski, Japan in 2013.

The SSB Project, which began in 2008, proposes that silicon be extracted from desert sand, and used to manufacture a large number of solar cells at low cost.

Energy from the strong sunlight in the desert will be converted into electricity, and supplied to cities in North Africa and Europe with low loss by using high-temperature superconductors.

In superconductivity, when a material is cooled below a certain temperature, its electrical resistance becomes zero. This enables power to be transmitted at least ten times more efficiently than with conventional highvoltage power lines. Last year, Chubu University performed an experiment, transmitting a DC current for 200 m through low-resistance cables using superconducting materials. This experiment was a world-first success.

Solar cells are currently topical as an inexhaustible energy source that does not use fossil fuel, but as their manufacturing cost is high, they have not yet become widespread. Therefore, research on new technology is being pursued urgently. In the SSB Project, solar cell plants will be built near the Sahara Desert and other deserts worldwide, prior to supplying electricity.

AASEF delegate Professor Sataro Yamaguchi of Chubu University said, “Superconducting technology is evolving, and is now close to being practical. Japan, which has the most advanced superconducting technology, should proceed with codevelopment proactively. Ultralong power transmission lines can help any elctric generating source as they can connect the night- and day-time regions of our globe.

The SSB Project will make that technically possible in about five years.”

SSB Project Co-founder Professor Hideomi Koinuma of the University of Tokyo said, “The SSB Project is at the basic research stage, but it could become a new model for energy supply to replace fossil fuels. Although there are some economic issues, we would like to develop the Project by 2030.”

About the Sahara Solar Breeder Project The University of Sciences and Technology of Oran (USTO), Japan International Corporation Agency (JICA) and Japan Science and Technology (JST) are developing a long-term vision and strategy to boost the ideas for the realization and development of the Sahara Solar Breeder (SSB) project (proposed at the G8+5 Academies meeting in Rome, 2009). SSB advocates the view of undertaking collaborative basic, applied and development research, as well as industrial production

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ASIA MANUFACTURING NEWS • OCTOBER 2011

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business news

Delcam Summit celebrates anniversary

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elcam held its annual Asian Technical Summit in Zhuhai, China, from 6th to 8th September as part of the celebrations of the fifteenth anniversary of the founding of its Delcam China subsidiary.

The Summit is held each year to present the latest developments from the company to its leading customers, academicians and the technical media in the region.

This year’s meeting, which was sponsored by HP, was the eleventh in the series and the second to be held in China. Close to 200 delegates attended, mainly from China but also from 10 other countries.

The Summit featured presentations on the latest versions of Delcam’s range of CAM systems before their official launch at the EMO exhibition. Updates were also technical, commercial and X and financial support services to implement photovoltaic solar energy systems.

The development and realisation of the SSB project, in the Algerian Sahara (covering approximately 86% of the total area of the country) will tackle the key challenges and issues related to the field of PV. On August 4, 2010, USTO and JICA formed a joint group and signed a series of Memorandums of Understanding and bilateral agreements to announce the creation of a Sahara Solar Energy Research Center (SSERC), at the University of Science and Technology of Oran (USTO).

The most important objectives of SSB’s energy policy include five basic strategies:

included on the other software in the Delcam portfolio, including the company’s design and inspection programs, plus the dedicated software for the footwear, orthotics and dental industries.

Guest speakers alongside the Delcam presentations included Alastair Morgan, Consul General from the UK Consulate in Guangzhou, Kexin Chu, CEO/ Chairman of First Auto Works Die Manufacturing Co., Ltd., Marco Kormann from Adidas Group, and Naoto Kitayama from Japan’s Tatematsu Mold Co. Ltd. u Basic, applied, practical research and development, in Japan, North Africa, the Middle East, Africa, and other regions of the world; u Industrial production of silicon from sand; u Industrial production of cells, modules, panels, and other PV devices, u Building, operating, networking and monitoring Very Large Scale Photovoltaic Power Stations (VLS-PVPS); u Environment monitoring and gradual implementation of SSB. The group will encourage oilproducing countries to provide funding, in anticipation of oil resource depletion. nextSTEP Visit:www.ssb-foundation.com u

Delcam formed its Delcam China subsidiary in 1996 after making initial sales into the country through its joint ventures in Taiwan and Hong Kong. Delcam China now employs more than 50 staff in its headquarters in Beijing and regional offices in Shanghai, Shenzhen, Chengdu, Xi’an, Wenzhou, Qingdao and Quanzhou. In addition, the Delcam Hong Kong and Delcam Taiwan joint ventures operate two offices each in mainland China, and there are more than 30 reseller offices in the country.

The Summit came at a time when Delcam is setting new records for its business in China. Sales of software have increased by more than 50% in the first half of this year compared to the first six months of 2010.

This rapid growth has helped the company to reach 2,000 customers in the country. During the Summit, a presentation was made to Liang Zhenghua, General Manager of the 2,000th customer, Zhejiang KaiHua Moulds Co., Ltd. This mouldmaking company is typical of the hundreds of smaller toolmakers and subcontractors that are adopting Delcam software to increase their productivity, improve their quality and reduce their lead times.

However, Delcam’s customers also include many of the country’s larger organisations, including First Auto Works, Xi’an Aircraft Industry Group, Changchun Railway Vehicles, Dongfang Electrical Machinery, Gree Electrical Appliances and Pou Chen, one of the world’s major producers of footwear. u www.asiamanufacturingnews.com

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ASIA MANUFACTURING NEWS • OCTOBER 2011

product news

Consumables have longer life

SINGAPORE:

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ypertherm, a U.S. based manufacturer of advanced metal cutting systems, is now selling consumables for Kaliburn Spirit plasma cutting systems that last at least twice as long as the OEM consumables.

Testing shows the life expectancy of the consumables increases by two to three times when cutting at 275 amps and below, and increases more than 50 percent when cutting at 400 amps. In addition to lasting longer, the consumables deliver better and more consistent cut quality, resulting in the need for less secondary work.

consumables for Kaliburn reduce the overall cost of operation and deliver exceptional cut quality and process reliability,” said Martin Geheran, product marketing manager for Hypertherm’s Centricut brand. “At the same time, they maintain the fast cutting speeds that are especially important in today’s economic environment.”

The life and performance improvements are the result of advanced Hypertherm technology.

SilverLine electrodes contain a solid silver front so they wear more slowly; CoolFlow nozzles have an angled o-ring, deep cooling contours and thicker walls to extend the working life; and the swirl ring is made with lava instead of ceramic, making it more robust and economical.

The Centricut brand consumables are available for all Kaliburn Spirit and ProLine systems. Like all Hypertherm products, they are precision manufactured to tight tolerances so customers get consistent, reliable performance from their cutting system.

“These new Centricut

Hypertherm’s Centricut brand engineers and manufactures advanced plasma and laser cutting consumables. Its product line includes consumables that deliver

increased value to people who own most any non-Hypertherm cutting system including systems

by ESAB, Kjellberg, and Trumpf.

All Centricut brand products are engineered and manufactured to exacting standards and incorporate the latest technological advances that help to reduce operating costs, while delivering increased cut speed and quality. Centricut products include free technical support and come with same-day shipping. u

Vibration-assisted milling can lead to higher-quality surfaces SINGAPORE: n conventional milling operations, a workpiece on a table is typically fed past a rotating multi-tooth cutter, and the entire surface is processed by making a series of overlapping passes. This procedure, however, tends to leave unmilled remnants of material along the edges of the tool path compromising the quality of the finished surface.

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Jeong Hoon Ko and Kah Chuan Shaw at the A*STAR Singapore Institute of Manufacturing Technology in collaboration with colleagues at Nanyang Technological University have now shown that inducing ultrasonic vibration during highwww.asiamanufacturingnews.com

speed milling of small metal products can lead to smoother, higher-quality surfaces1.

Vibration-assisted machining has been applied in the past, but mainly to turning or lathing applications, in which the spindle speed was much lower than the vibration frequency. Even when vibration assistance was applied experimentally in milling, the tool spindles turned far slower than the vibration. In contrast, Ko and his co-workers experimentally applied ultrasonic vibrations in a high-speed micromilling system where the rotation frequency of the cutter was much faster than the frequency of vibration.

The researchers established

two different test rigs on which they could evaluate the effect of vibration assistance on the machined surfaces. They proceeded to run tests with and without vibrations, in line with and across the direction of the feed. They applied a wide range of spindle speeds and used tool paths with a confined width and depth.

Ko and his co-workers found that the height of the remnant material, called ‘cusp’, can be reduced by applying ultrasonic vibration during high-speed milling with narrow tool paths and removal depths of less than one millimeter, improving the quality of the milled surface considerably. The effect was greater when feed-

X

products news

ASIA MANUFACTURING NEWS • OCTOBER 2011

13

Inspection Geni on show at Innovation Day, 2012 HERTZLIA, ISRAEL: anisankar V, Training Manager, at SolidWorks VAR, Best Engineering Aids & Consultancies (BEACON), will be giving a live demonstration on the latest version of the software add-on, SolidWorks-Inspection Geni 3.1, at the SolidWorks Innovation Day 2012 in Bangalore.

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In line with the new SolidWorks 2012 version, Inspection Geni 3.1 offers a host of new features, including: • Automated functions such as Ballooning Dimension IDs & Track Changes History • Enhanced Performance and Quality improvements for a more continuous workflow • Fundamental changes to your product development process • Extensive support for project collaboration and team connectivity The unique selling point of Inspection Geni 3.1 - due for release worldwide in Q4 this year - is the new dimension-driven design change tracking feature which empowers designers by automatically recording a history of the changes made to

X directional vibration was applied

to the material than when the vibration was applied across or perpendicular to the feed, which resulted in the formation of wavy burrs. By comparing and analyzing the feed and cross-feed directional effects using advanced simulations, more accurate recommendations for surface quality improvement could be made. The team also showed that the level of surface roughness is dependent on a combination of factors including feed rate and tool profile, in addition to vibration and tool speed.

any drawing once it has left his desktop .

to all dimensions and custom properties,” he concluded.

According to Doron Sashkis, CEO, Albitech, the developer of Inspection Geni: “In the past this wasn’t possible as the process became a manual one once it left the designer’s desktop.

So should an error take place or a misunderstanding occur regarding a particular dimension, the designer would not be able to easily identify the problem,” he explained. “Typical drawings can have hundreds, or thousands of dimensions, and without a dimensional ID the designer will struggle to locate the problem and then correct it.”

About Inspection Geni

Today, using IG 3.1’s dimension ID’s and history module, designers are now able to promptly and accurately respond to any changes or inquiries.

Speaking from India, Sridhar M C said Inspection Geni 3.1.0 is SolidWorks software taken to a new dimension. “It offers customization of company specific property settings, and generates detailed history reports that benefits SolidWorks designers in India by allowing them to track the changes made

“We want to devise a new design that can enhance machining quality by tuning the vibration assistance direction,” says Ko. “Furthermore, we will test novel implementations, including a multiple-cutting mechanism. There are potential commercial applications for precision engineering using our vibration scheme in the die/ mold, biomedical and electronics industries.”

The A*STAR-affiliated researchers contributing to this research are from the Singapore Institute of Manufacturing Technology u

Inspection Geni allows designers and engineers to expedite business processes, automate approval processes, slash costs and enable paperless documentations for storage and retrieval.

Inspection Geni allows manufacturers to close the gap in going fully paperless by completely eliminating the need to print documents for inspection using its fast, low-cost, and fully digital system.

Albitech Ltd was founded in 2007 and offers consulting and programming solutions for multiaxis CNC Machines, developing software tools that enabling engineers and manufacturers to dramatically increase productivity, slash development costs and boost time to market, Rapid ROI and Adopt Environmentally Friendly Industry Standards Best Engineering Aids & Consultancies (BEACON) www. beacon-india.com – is India’s largest SolidWorks Value Added Reseller (VAR) & Solution provider in the area of Design & Manufacturing. BEACON has several best-of-breed partnerships in place that enables them to deliver a broad spectrum of industry solutions for CAD, CAM, Design Automation, Design Validation, Data Management, Documentation and Productivity Enhancement Tools. Their longstanding relationship over the years with the principles SolidWorks, SolidCAM and 3D Quick Tools, proves their commitment to the CAM/CAM/ CAE business and industry, and the large customer base built in a relatively short span of time, showcases their unmatched commitment to the customer and his success. u www.asiamanufacturingnews.com

14

ASIA MANUFACTURING NEWS • OCTOBER 2011

business news

Award for Rockwell Automation

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ockwell Automation received the prestigious 2011 Frost and Sullivan Company of the Year Award for the Programmable Logic Controller in the South Pacific and South East Asia region.

The award recognises the leading role Rockwell Automation has played in developing costeffective technology solutions with improved safety for programmable logic controllers (PLCs). It also confirms the commitment Rockwell Automation has made to the industry and the company’s position as a major participant in automation systems across many industries.

To qualify for the award, a company is measured on five key criteria: market share position, growth implementation, degree of innovation with products and technologies, gain in market share and leadership in customer value. Rockwell Automation scored consistently high in all five categories for the South East Asia, Australian and New Zealand region.

“Rockwell Automation winning this award confirms that the company’s customer value strategies are recognised by the automation industry, and in turn

Twain Drewett, managing director Rockwell Automation says that the Frost and Sullivan Award for Company of the Year for PLCs recognises the commitment that Rockwell Automation has made to develop a product that meets customer’s needs.

by the broader market,” said Twain Drewett, managing director Rockwell Automation Australia and New Zealand. “The PLC is continuing to evolve into a product that meets the customer’s requirements for plant-wide optimisation and sustainable production, while simultaneously helping to converge the IT arena into the manufacturing space.

This value-add of Rockwell Automation Customer Services and Solutions and the strength of our network of partners, has provided the PLC with ‘Best in Class’ differentiation,” concluded Drewett.

The Company of the Year Award, now in its fourth year, is presented

by Frost and Sullivan, a global industry analyst and growth consulting company with nearly 50 years experience. Frost and Sullivan are specialists in research and analysis that assists clients in making critical business decisions. The organisation’s reputation for rigorous research and methodology to identify best practices and world class performance has earned their awards global recognition from industry, media and investors. u

August manufacturing output rises SINGAPORE: ingapore’s industrial production grew at the fastest pace in five months in August after output of pharmaceuticals surged, offsetting a slump in electronics manufacturing as global demand weakens.

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Manufacturing, which accounts for more than one-fifth of the economy, gained by 21.7 per cent from a year earlier after a revised 7.6 per cent increase in July, the Economic Development Board said yesterday.

Singapore’s industrial production rose a seasonally adjusted 3.9 per cent in August from July, when www.asiamanufacturingnews.com

it climbed a revised 0.4 per cent from the previous month, the report showed.

Output in the biomedical sector, which accounts for 19.6 per cent of total manufacturing production, rose by 145.8 per cent from a year earlier, while output from the pharmaceuticals sector grew an even faster 156.7 per cent after a 46.9 per cent expansion in July.

Singapore’s pharmaceutical sector is dominated by a small number of firms, and output can fall significantly when plants change product lines or close for maintenance.Electronics output,

which accounts for 31.4 per cent of Singapore’s total factory production, contracted by 21.9 per cent on-year, compared with a 17.2 per cent decline in July.

North American orders for semiconductor equipment fell 8.8 per cent in August from a month earlier, a trade group report showed. The book-to-bill ratio, a gauge of industry health, was 0.8, meaning chip-equipment companies received US$80 (S$104) in new orders for every US$100 in sales. A ratio below 1 indicates a contracting market for chip-equipment tools. u

business news

ASIA MANUFACTURING NEWS • OCTOBER 2011

15

Success story of electronica India

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DELHI: lectronica India 2011 & productronica India 2011 by Messe München International India Pvt. Ltd., started successfully for the first time at the Pragati Maidan exhibition centre in New Delhi.

The event highlighted a continued industry focus on developing the eco system of electronics with a special focus on Automotive electronics including developing ‘intelligent’ cars, increasing the use of electronics in place of mechanical systems to promote safety, fuel efficiency and bring down emissions and EMS/Contract manufacturing focusing on Local Manufacturing.

“We as organizer are very pleased with the result of electronica India 2011 and productronica India 2011. For the very first time, there was participation from Korea, apart from China, UK, Germany, Hong Kong, Singapore and Taiwan, exhibiting latest technologies. In addition to the exhibition a symposium on Automotive Electronics, coorganized by ELCINA, provided an Indian perspective on technical and socio-economic trends that are intrinsically linked to the world of modern mobility”, says Mr. Darryl Dasilva, CEO – MMI India Pvt. Ltd. electronica India and productronica India that was spread across an area of 16000 square meters, featured 917 exhibitors from 25 countries.

Over 10250 visitors took the opportunity to meet the key players from the electronics industry.

“This has been our first participation with electronica India and we were impressed with the quality of visitors. The show gave us the opportunity to demonstrate our wide range

of innovative technologies and we also had the chance to reach potential customers,” says Ms. Sapna Mongia, South Asia Marketing Manager of STMicroelectronics.

“We see great potential in Indian market for electronics and technology. We are extremely excited about our participation at electronica India 2011 as it has helped us connect to our prospective clients for new business while fostering our existing ones. We would like to be a part of the show next year, wishing success to electronica India for 2012.” says Mr. Sunil Dhar from Renesas.

The four day event saw immense participation from companies like Agilent Technologies, ASYS, Avalon, Bergen Systems, EPSON, Juki, KAYNES Technology, Leaptech, Micro Commercial Components, MAXIM SMT, NMTronics, Nikon, Panasonic, QUAD Electronics, Renesas Electronics, STMicroelectronics, Tata Power SED to name a few.

Further to the conference on Automotive electronics, the “EMS/ Contract Manufacturing: The Indian Perspective” took place with high ranking panelists not only from the manufacturing side, but also from the buyers’ side.

The lively discussion between dignitaries and the audience underlined the high value of this new format.

The event is a key platform for companies in India and significantly contributes to help and boost the business for the Indian electronics industry adds Mr. P.S. Narotra from The Department of Information Technology, Ministry of Communications and Information Technologies which along with 15 industry associations have been supporting the trade fair to a very high extent.

The Indian electronics market appears currently in a robust condition. The long term outlook for India as an outsourcing location seems to be very good.

Experts from KPMG are expecting in the time frame from 2008 to 2013 a doubling of the revenue of the IT industry with an annual average growth of 14% for the EMS industry.

The overwhelming response from the exhibitors and visitors led to a strong rebooking of space for electronica India 2012 and productronica India 2012. It will be held at the Bangalore International Exhibition Centre from 11th to 13th September 2012. u www.asiamanufacturingnews.com

16

ASIA MANUFACTURING NEWS • OCTOBER 2011

case study

Night and day resp KHON KAEN, THAILAND:

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afety is the number one priority for maintenance supervisor Suwit Chaichumras at the BlueScope Lysaght factory at Khon Kaen in the heart of Thailand’s northeast.

Konecranes Thailand is able to safeguard this for him.

“We’ve been 17 years without a major accident at this plant and we intend to continue this record.

Our concern for the employees at BlueScope Lysaght makes this our first centre of attention,” he said.

“Along with safety comes good quality and Konecranes Thailand is able to ensure this too.”

Konecranes, with a branch in the city, is responsible for BlueScope Lysaght’s statutory crane inspections and certification of their four single-girder 6.3 ton overhead cranes – as well as regular servicing and maintenance.

The Khon Kaen factory’s roll forming operation is responsible for manufacturing and supplying metallic coated and painted flat steel products with familiar proprietary names that include ZINCALUME®, Clean COLORBOND®, TRUZINC® and GALVASPAN™ steel.

necessarily be the cheapest, but so long as they can satisfy those two requirements, we can renew their contract.

“Konecranes shares our concern to create a culture of safety, as well as our determination to continue our unblemished accident record.

“As well, it’s an advantage to us to use a provider who has an extensive branch network, including a maintenance team based right here in Khon Kaen.

“Their responsiveness is indicated by their willingness to be at our plant within hours if needed, rather than the next day, if they had no local branch. Their team has been known to work right

through the night to fix a problem and ensure we remain operational and in production. That’s the kind of service that BlueScope Lysaght requires,” Mr Chaichumras said.

Konecranes Khon Kaen Branch Supervisor Mr Suthee Polpakdee said, “We won the inspection and maintenance contract at BlueScope Lysaght because of our responsive service and comprehensive reporting system.

“A major advantage was that we have a team of maintenance engineers on the ground here, which means that we can quickly respond to BlueScope’s needs. We were already in Khon Kaen and didn’t merely set up the branch in order to win this inspection and maintenance contract.

“Konecranes Thailand provides a high-quality maintenance service and where safety and quality are customer priorities, we are able

These products are widely used for applications that include steel roofing, wall cladding, structural floor decking, high tensile purlins and sandwich panel systems.

The four cranes that Konecranes services for BlueScope Lysaght at Khon Kaen are all those of a different brand of crane supplier, but that isn’t an issue to Konecranes, which has vast experience with cranes of all brands, having 373,000 cranes of all makes under service contract worldwide.

Mr Chaichumras said that to ensure renewal of their contract, Konecranes must offer firstly safety, and also quality.

“Their crane servicing may not www.asiamanufacturingnews.com

Ms Taruesida Saintr, contract sales executive, Konecranes, Thailand, Mr Suwit Chaicuumras,maintenance supervisor, Blue Scope and Ms Suppawaree Tamrasae,marketing communication, Konecranes, Thailand.

ASIA MANUFACTURING NEWS • OCTOBER 2011

case study

17

ponse wins plaudits to overcome any price issues,” Mr Suthee Polpakdee said.

“Normally, we would renew our contract with customers every year, but the present contract with BlueScope Lysaght is for two years, so that’s a tribute to the trust they place in us.”

All statutory inspections at BlueScope Lysaght are based on the Konecranes ServMan crane inspection and service program.

The resulting report, which is given to the customer within two weeks of the inspection, consists of the following data: • the working condition of the cranes • the safety condition of the cranes • any actions required to improved the cranes’ safety • any actions needed to improve the operator and productional hazards • Kor Por 1 Certificate signed by a 2nd Degree Thai mechanical engineer The Konecranes maintenance service, including Condition Monitoring (CM), covers numerous items including cleaning of the crane, checking oil levels, measuring brake wear and changing linings if necessary, measuring the condition of all motors, checking the wire rope, and visual inspection of crane and wheel alignments. A full condition monitoring report is provided.

“That report is very useful to us.

The previous service provider who did our maintenance didn’t provide this,” Mr Chaichumras said.

“We’re also very impressed with the professionalism of Konecranes’ RailQ crane rail and alignment service. It’s very good technology, very high tech, and saves us the possible costs of future

breakdowns,” he said.

RailQ ensures the correct operating geometry of cranes and their runways, on the basis that precisely aligned runways and rails ensure the best operation now and in the future. The Konecranes’ proprietary tool uses highly-accurate laser equipment to measure straightness, elevation, rail-to-rail elevation, and span of the rails.

Mr Polpakdee of Konecranes Khon Kaen said, “We’re proud of our ability to win inspection and maintenance contracts against competition because of our superior reporting abilities and having staff available where and when the client needs them.”

Konecranes is the world’s largest crane service organisation. The Konecranes Group employs more than 10,500 people at more than 575 locations in 46 countries. The company’s maintenance services include: Compliance - Konecranes will customise a compliance maintenance program for lifting equipment to monitor and repair or replace items in accordance with local regulations and law.

Preventive Maintenance Programs - By scheduling routine repairs, maintenance work and inspections, Konecranes will help to not only prevent equipment safety issues, breakdowns and compliance violations but also prevent component failure. A primary aim is to prevent unnecessary production downtime - saving time and money.

Predictive Maintenance Programs - After scheduling routine repairs and inspections to ensure compliance and preventively maintain

equipment, Konecranes analyses and prioritises current and future repair needs. By predicting these needs, companies can reduce unexpected repairs, emergency repair costs and unbudgeted equipment purchases.

Reliability-Based Maintenance Programs – These allow companies to take predictive maintenance to the next level. By using innovative maintenance software, Konecranes can track the history of equipment. This lets them establish breakdown and equipment failure patterns and allows them to modify or upgrade existing components - increasing production uptime and the overall life cycle of the crane.

Full Maintenance Agreements - Whether a company has a large hoist or hundreds of cranes, Konecranes offers full-maintenance agreements that allow companies to have a fully managed staff ready to take care of your complete crane equipment and maintenance needs.

Many Konecranes customers enjoy the flexibility of controlling manpower levels and reducing technical and managerial costs – all the while dramatically increasing productivity.

Konecranes highly trained technicians and inspectors have the knowledge and tools available to take care of a customer’s crane needs, allowing the customer to concentrate his time and manpower on production. nextSTEP Contact Steve Gagnuss, Konecranes South-East Asia Regional Director, E: sales.singapore@konecranes.com W: www.konecranes.com.sg u www.asiamanufacturingnews.com

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ASIA MANUFACTURING NEWS • OCTOBER 2011

events

Ninth International Symposium on Marine Engineering 2011, 17 – 21 October, Japan JAPAN: SME KOBE 2011 will be held from 17 to 21 October 2011 in Kobe. The symposium will discuss the progress and future of marine engineering, focusing on the theme “Marine Engineering Technology friendly to Environment, effective to Energy Saving and robust to Economy Crisis”.

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International Symposium on Marine Engineering (ISME) has been held 8 times since 1973.

ISME is a worldwide technical conference which is organized

by the Japan Institute of Marine Engineering (JIME) aiming to exchange updated knowledge beyond the maritime fields, especially the marine engineering.

Last ISME, namely ISME Busan 2009, has been successfully held at Korea, co-hosting with Korea Society of Marine Engineering.

ISME KOBE 2011, is now being organized by the JIME and will be held from 17 to 21 October 2011 in Kobe. The symposium will discuss the progress and future of marine engineering, focusing on the theme “Marine Engineering Technology

friendly to Environment, effective to Energy Saving and robust to Economy Crisis”.

Shipowners, shipbuilders, machinery and equipment manufacturers, classification societies, research institutes, universities and others from related organizations around the world are invited to present their views, opinions, experiences, and results of their studies, research, and development on these subjects. Panel discussions and forum will also be held for special topics. u

International Congress on Food Engineering and technology BANGKOK: he upcoming International Congress on Food Engineering and technology (IFET 2012) will be held in IMPACT Convention Center, Bangkok, Thailand during March 28-30, 2012.

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On behalf of the Organising Committee, you are cordially invite you to participate in and contribute to the upcoming International Congress on Food Engineering and technology (IFET 2012 http:// ifetcongress.com/, which will be held in IMPACT Convention Center, Bangkok, Thailand during March 28-30, 2012.

IFET 2012, with the theme “Advanced Food Engineering for Better Health and Safety” aims to provide a forum for dissemination and exchange of ideas and recent advances in food engineering and related technologies among food engineers, food scientists, food technologists as well as general participants both from academia and, in particular, from industry. www.asiamanufacturingnews.com

IFET 2012 will cover a wide array of topics, including advanced food processing and packaging technologies, production of health-promoting foods and novel agro-based products as well as food safety and regulations.

IFET 2012 will feature a special format of oral sessions, in which expert speakers from both

academia and industry are only by-invitation. These oral sessions will provide critical review and discussion of recent advances in food engineering and technologies related to the theme of IFET 2012.

Academic lectures are planned to be given back-to-back with lectures on closely relevant topics u by industrial experts.

ASIA MANUFACTURING NEWS • OCTOBER 2011

events

19

International Workshop on Nanotechnology, 24-27 Nov, 2011 Selangor, Malaysia

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cademicians, researchers, scientists, policy makers and implementers, and government officials working in the field of nanoscience and nanotechnology in the developing/developed countries, are invited to participate in this international workshop.

Nanotechnology, which is the study of manipulating matter on atomic and molecular scales, involves developing materials or devices possessing at least one dimension sized from 1 to 100 nanometers. This field of science has gathered enormous significance in recent years and tremendous advancements have been made with a variety of applications in a range of fields of science and technology, including materials sciences, surface science, organic chemistry, molecular biology, semiconductor physics, microfabrication, electronics, energy, medicine, etc.

Nanotechnology has the potential to create many new materials and devices and it possibly holds solutions to world’s problems related to water, agriculture, nutrition, health and energy.

For developing countries, nanotechnology provides a new focus for research through its aim to manufacture from the ‘bottomup’ approach using techniques and tools being developed today to make complete, high performance products, showing its potentiality in the form of improved water purification systems, energy systems, healthcare, food production and communications, etc. However, nanotechnology has raised some concerns and speculation about the toxicity and environmental impact of nanomaterials, and their potential effects on global economics. These issues have led to a debate among advocacy groups and governments on the

necessity of special regulation on nanotechnology.

With a view to providing a forum for the academicians, scientists and researchers active in the fields of nano-science and nanotechnology to deliberate upon the aforementioned issues and to increase awareness of this field’s significance, the Centre for Science & Technology of the NonAligned and Other Developing Countries (NAM S&T Centre), New Delhi, India in collaboration with the Commission on Science and Technology for Sustainable Development in the South (COMSATS), Islamabad, Pakistan and the Institute of Microengineering and Nanoelectronics (IMEN), Universiti Kebangsaan Malaysia (UKM), Malaysia is organizing the 4-days International Workshop on ‘Nanotechnology in the Edge of Convergence’, on November 2427, 2011 at Selangor, Malaysia.u

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20

ASIA MANUFACTURING NEWS • OCTOBER 2011

business news

Anwell Breaks into India Solar Farm Market HONG KONG:

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echnologies Limited (“Anwell” or the “Group”), announced that its wholly owned subsidiary, Sungen International Limited, has won a contract worth approximately US$20 million to supply the Group’s in-house produced amorphous silicon (a-Si) thin film solar panel for a solar farm project in India. The thin film panel has been scheduled for delivery in the second half of this year.

Anwell’s expansion into India’s lucrative solar market is opportune as the country is aggressively expanding its solar power capacity. The Government of India has rolled out its National Solar Mission, a major 3-phase solar roadmap to meet a 20GW large scale grid-connected solar

power capacity target by 2022.

The 20GW solar masterplan is expected to attract an overall investment of about US$70 billion.

Anwell is moving firmly towards become a major producer of thin film solar panels worldwide. In June this year, the Group made

two announcements on securing a total of RMB 1.2 billion longterm funding from the municipal governments of Dongguan and Anyang in China. These funds are to be used for the construction of Anwell’s solar panel production plants in these two cities. u

Installing solar panels at schools affected by earthquake

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he Coca-Cola Japan Reconstruction Fund has decided to contribute 1.5 billion yen to the rebuilding of public elementary and junior high schools, with the funds being extracted from the 2.5 billion yen collected for reconstruction of the affected areas in the Great East Japan Earthquake.

With an eye towards expanding renewable energy in Japan, the Fund supports cleaner energy in

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the reconstruction of the affected schools by providing funding for the solar panel installation, an operation also promoted by the Ministry of Education, Culture, Sports, Science and Technology.

By installing new solar panels during the reconstruction work at the public schools in the regions affected, the Fund hopes to support the future of the children in the disaster regions through providing a teaching tool on clean energy that can educate about the environment.

Details such as the soliciting of eligible schools and timing for the contributions will be examined in consultation with the Ministry, local governments, and other

organizational bodies.

The Coca-Cola Japan Reconstruction Fund was established under the Coca-Cola Educational and Environmental Foundation by The Coca-Cola Company, the parent company of Coca-Cola (Japan) Co., Ltd. (head office: Shibuya-ku, Tokyo.

The aim of the Fund is to assist in the reconstruction of the disaster areas suffering from the effects of the Great East Japan Earthquake.

In accordance with the principles for activities of the Coca-Cola Educational and Environmental Foundation, the funds will be put to use mainly in the construction of educational and other public facilities needed for rebuilding the lives of children affected by the disaster.

This contribution will be the first specific proposed aid of the Fund. u

business new s

ASIA MANUFACTURING NEWS • OCTOBER 2011

21

Investment on dual-usage of technology creates core competitiveness HONG KONG:

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he military technology in civilian applications has made a major breakthrough in recent years, it is expected the technology is bound to be more widely applied since the uptrend of lowcarbon urban construction in the future. “City Skyline”, a project led by China Innovation Investment Limited (“China Innovation”, Stock Code: 1217.HK), China Trends Holdings Limited (“China Trends”, Stock Code: 8171.HK) and China Technology Education Trust Association (“CTE”), is a comprehensive program consisting of technology and products of “New Energy Resources”, “New Light Resources”, “New Materials” and “New Media”, which address the huge development plan of building a low-carbon city.

High-technology always takes the lead in applying in the military field, while military technology represents the highest level of technology in today’s world. The Shanghai World Expo held last year successfully showed the application and demonstration of the dual-use technology, which includes solar photovoltaic power plant, and the new energy automotive remote monitoring systems. All of them are from the military enterprise technology, reflecting the application of military technology in civilian areas has been made a major breakthrough.

China Innovation, China Trends and CTE jointly launched the “One Two Three Project of Boss Dream II: City Skyline” in Beijing last week, marking a start of the whole low-carbon plan. The project will fully adopt technology and products of “New Energy Resources”, “New Light Resources”, “New Materials” and “New Media” for the city’s traffic, lighting, building and office systems, providing low-carbon transport, low carbon lighting, low-carbon building and low carbon terminals based on the dual-use of industrial technology and low-carbon transformation and support, the overall energysaving rate can be reached over 90%.

As an investment expert in the field of dual-use technology and energy-saving industry of ‘Four New Industries’ including “New Energy Resources”, “New Light Resources”, “New Materials” and

“New Media”, China Innovation’s investment on Topsun Creation Limited (“Topsun”), Aesthetic Vision Limited (“Aesthetic Vision”), United Crown Century Company Limited (“United Crown Century”) and Blue Angel (H.K.) Limited (“Blue Angel”) has already covered the field of military storage battery, new lighting products, eco-materials and equipment, and energy-saving terminal. It is expected the above investments could diversely participate in each part of City Skyline.

City Skyline is a project all related to the construction and improvement of four low-carbon cases, in which the low-carbon transport refers to the new energy electric car, including bus routes, feeder buses, electric taxis and electric bikes. These vehicles make use of the aircraft battery and manufacturing; lowcarbon lighting promotes the new light source lighting, and uses LED ergonomically; low carbon building promotes the transformation of new housing with the use of military building technique; low-carbon terminal promotes the new media all-inone computers with the features of militarily strong resistance in high temperature, low temperature and shock, and dust-proof technology.

The four low-carbon cases undergo the energy management contract (CEM), referring to the payment of corresponding energy costs with free access to lowcarbon services, to achieve the implementation of low-carbon solutions in the city.

In addition, City Skyline completes the whole low-carbon cases from low-carbon protection, low-carbon finance and low-carbon talents, which refer to low-carbon way of implementing services, capital and human resourcing support respectively, to ensure the smooth construction of low-carbon city. In which the low-carbon protection consists of four sectors namely low-carbon office, low-carbon living, low-carbon conference and low-carbon exhibition, which will also make use of the photovoltaic integrated technology, LED lighting systems, eco-building insulation, and energy-efficient dual-use media terminal. The application integrated with the central hot water system, energy linkage lift, ground source heat pump, Low-E insulating glass and other popular energy-saving technologies and equipment, to achieve maximum energy efficiency saved for 90% or more.

China Innovation Investment Limited (“China Innovation”, Stock Code: 1217.hk), as an investment expert in the field of dual-use technology and energysaving industry, focuses on ‘Three-New Industries’, including “New Energy Resources”, “New Light Resources” and “New Materials”, promotes the military high-tech environment-friendly products to the civil market and wins a vast potential for future development. The Company is listed on The Main Board of The Stock Exchange of Hong Kong Limited on 28 August 2002.

For further information, please browse www.1217.com.hk. u www.asiamanufacturingnews.com

22

ASIA MANUFACTURING NEWS • OCTOBER 2011

technology

KOREA:

Rapidform viable choice for modeling from 3D scans

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NUS Technology, Inc. announces that a recent U.S. Air Force funded study evaluating CAD and reverse engineering software concluded that Rapidform XOR stands alone in its ability to create parametric solid models from 3D scan data.

The study was conducted by Dr. Kuang-Hua Chang of the University of Oklahoma and published in the journal CAD and Applications (www.cadanda.com).

This study offers an unbiased, expert opinion that confirms Rapidform XOR is the only viable choice for creating parametric CAD models from 3D scans.

INUS Technology invented the concept of creating parametric CAD models directly from 3D scans with the release of Rapidform XOR in 2006, and XOR remains the product of choice for those serious about fast and accurate reverse engineering of physical parts.

The U.S. Air Force frequently needs to regenerate designs of decades-old parts, and so commissioned the University of Oklahoma to study both 3D scanning software and hardware to determine the best available technology. INUS Technology had no knowledge of the study or its outcome until it was published in CAD and Applications.

Dr. Chang and his students surveyed the landscape of software available for converting 3D scans into parametric solid models usable in CAD, evaluated and then tested the front runners using practical examples. “We used five different examples in two rounds of testing,” said Dr. Chang. “The first round was surface modeling, and in the second round, we focused on parametric solid building.”

“We found that Rapidform is able to support parametric modeling www.asiamanufacturingnews.com

and transferring the solid model to CAD systems,” Dr. Chang continued. “When we say ‘viable option’, it’s based on two things.

One is the time and effort, the other is the accuracy.” According to Chang, other software “was able to generate a parametric solid model, but it took a long time and the solid model created was not very accurate.”

engineering software solution.”

The entire paper, including technical details of each tested software, is available for free download at http:// www.rapidform.com/reverseengineering-study.

“It’s very rewarding to see an unbiased study recognising the value of Rapidform XOR compared to other 3D scanning software,” noted Calvin Hur, INUS Technology’s CEO. “Thousands of customers have already recognized that Rapidform XOR is the best choice for reverse engineering, but this is the first objective study that confirms which software is best-in-class.

We encourage anyone considering 3D scanning technology to read this paper to make a welleducated decision on their reverse

INUS Technology helps companies unlock the power of 3D scanning.

The company’s software solutions are the most widely installed products for reverse engineering, 3D imaging and inspection using 3D scan data around the globe.

Rapidform makes 3D scanning an extremely powerful tool for a variety of applications and is used in fields such as manufacturing, R&D, quality inspection, medical research and civil engineering.

Leading companies including Audi, Ford, Hyundai, Toyota, Rolls Royce, Volkswagen, Hitachi, Panasonic, Oakley, Samsung, Sony, Alcoa, and Benteler use Rapidform’s advanced technology to innovate throughout their research, design, manufacturing and quality control processes.

For more information, please visit http://www.rapidform.com u

RIYADH: ore than 30,000 women in Saudi Arabia will be employed in the kingdom’s manufacturing sector over the next three years, a top Saudi official has said.

But although private companies only accounted for five per cent of working Saudi women, this number has increased by 27 per cent over the last two years, from 40,000 at the beginning of 2006 to 51,000 at the end of 2007.

Women in Saudi Arabia are already active in the fields of pharmaceuticals, clothing, food and manufacturing — but only a fraction of women were employed in the private sector.

Around 95 per cent of working Saudi women are in the public sector: 85 per cent in education, in both teaching and administrative positions, six per cent in public health, and four per cent in administration. u

Manufacturing to hire more women

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Better Business Throughout Asia www.asiamanufacturingnews.com

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ASIA MANUFACTURING NEWS • OCTOBER 2011

case study

Exclusive access to highperformance design optimisation SAN RAFAEL, CALIFORNIA:

A

utodesk a world leader in 3D design, engineering and entertainment software, introduced Autodesk Cloud, a collection of more than a dozen web-based capabilities, products and services that enable customers to extend their desktops with greater mobility, new viewing and sharing capabilities, and more computing power, helping them better design, visualize and simulate their ideas.

In addition, Autodesk Subscription customers will now have exclusive access to cloud-based, high-performance rendering and design optimisation, and enhanced collaboration capabilities. Autodesk Subscription now provides 3 GB of online storage for each software license on Subscription for greater access to design and engineering documents, anywhere, anytime.

“For more than a decade, Autodesk has embraced the power of the cloud to extend the functionality of our design solutions and help our customers work more effectively,” said Amar Hanspal, senior vice president, Platform Solutions and Emerging Business at Autodesk.

“With Autodesk Cloud, we are demonstrating an even greater commitment to helping our customers solve the world’s toughest design and engineering challenges.”

Autodesk has been a pioneer in cloud-based applications for the design industry — starting more than a decade ago with Autodesk Buzzsaw — and more than a dozen cloud-based offerings currently available to customers are now encompassed as part of Autodesk Cloud.

Autodesk Cloud provides a powerful foundation to enable all Autodesk customers to begin using the cloud to access and store their work from anywhere; www.asiamanufacturingnews.com

to view their work through web browsers or mobile devices; and to share their work with other users, even users without Autodesk software. Cloud applications such Autodesk Cloud documents, AutoCAD WS and the Autodesk Design Review mobile app provide users with the freedom to work where they can be most effective, and to view, edit and share designs anywhere and with almost anyone.

AutoCAD WS and the Autodesk Design Review mobile app are available now on the iOS App Store.

Additional cloud services exclusive to Autodesk Subscription customers give designers, engineers and digital artists sophisticated new capabilities, such as high-performance 3D visual communication, simulation and collaboration that were once limited to organizations with privileged access to expensive, high-end supercomputing centers.

These exclusive services include: Autodesk Cloud rendering.

Customers with an Autodesk Subscription to the Premium or Ultimate editions of Autodesk Design Suite or Autodesk Building Design Suite will have access to powerful rendering capabilities, helping them better visualize designs, increase the number of renderings they can create and reduce hardware investments.

Autodesk Inventor optimisation.

Customers with Subscription to the Premium or Ultimate editions of Autodesk Product Design Suites will gain an intuitive cloud-based simulation tool, enabling them to test multiple design options in the cloud, and to create more sustainable designs and higher quality products while reducing material, transportation and energy costs.

Autodesk Revit Conceptual Energy Analysis. Customers with Subscription to Autodesk Revit Architecture or Autodesk Revit MEP software, or select suites containing these products, can extend design beyond the desktop with powerful cloud-based energy analysis capabilities, helping them to quickly gain insight into the energy consumption and building energy costs of early design concepts from within the design application.

Autodesk Green Building Studio web-based energy analysis software. Customers with Subscription to Autodesk Building Design Suite and other select products have access to this cloud-based service that can help designers, architects, engineers and building energy analysts perform faster, more accurate energy analysis of multiple building design iterations, optimize energy efficiency and work toward carbon neutrality earlier in the design process.

Autodesk Buzzsaw software as a service (SaaS). Customers with Subscription to Autodesk Vault Collaboration AEC software now have access to cloud-based document, data and design management solutions for architecture, engineering and construction firms and owner-

ASIA MANUFACTURING NEWS • OCTOBER 2011

case study

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other services are exclusive to Autodesk Subscription customers.

Customers should contact their local reseller or visit www. autodesk.com/cloud to learn more.

operators, helping them centralize and securely exchange project information and enhance team collaboration.

Autodesk works with multiple partners, including Amazon and Citrix, to provide a scalable cloud computing infrastructure to meet customer needs. Autodesk has been working with Amazon Web Services for more than three years in order to securely host highdemand, scalable applications such as Autodesk Homestyler software and Autodesk Seek web service. Amazon Web Services provides Autodesk with the flexibility to scale computing around the world with Amazon Elastic Compute Cloud (EC2) and resilient storage capacity with Amazon Simple Storage Service (S3) and Elastic Block Store (EBS), as well as the ability to more efficiently deliver applications and content to customers.

Autodesk also teams with Citrix to provide customers with greater efficiency in their use of Autodesk applications.

Delivering solutions to end users with Citrix XenApp can help customers reduce workstation costs while still providing the software performance they need.

“Our relationship with Autodesk demonstrates how innovative and forward-thinking software

companies can leverage the power of AWS to provide greater value to their customers,” said Terry Wise, Director of Business Development at Amazon Web Services. “We are pleased to work with Autodesk to provide secure, on-demand, pay as you go cloud services, pushing the boundaries of what is possible in the design and engineering market.”

In addition to the new Autodesk Cloud services, Autodesk Subscription continues to provide the most up-to-date software, online technical support and flexible licensing privileges for customers looking to maximize their competitive advantage.

Subscription customers may access the new cloud-based services from within Autodesk desktop applications or through subscription centre.

Autodesk, Inc. is a leader in 3D design, engineering and entertainment software. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries. including the last 16 Academy Award winners for Best Visual Effects — use Autodesk software to design, visualise and simulate their ideas. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-theart software for global markets.

For additional information about Autodesk, visit www.autodesk. com.

Autodesk, AutoCAD, Autodesk Inventor, Buzzsaw, Green Building Studio, Homestyler, Inventor and Revit are registered trademarks or trademarks of Autodesk, Inc., and/ or its subsidiaries and/or affiliates in the USA and/or other countries.

Academy Award is a registered trademark of the Academy of Motion Picture Arts and Sciences.

All other brand names, product names or trademarks belong to their respective holders. Autodesk reserves the right to alter product offerings and specifications at any time without notice. u

Availability Autodesk Cloud services are available worldwide starting today in languages including Czech, English, French, German, Hungarian, Italian, Japanese, Korean, Polish, Portuguese, Russian, Simplified Chinese, Spanish and Traditional Chinese.

Some Autodesk Cloud services are available to all customers, such as Autodesk Cloud documents and the Autodesk Design Review mobile app, while

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ASIA MANUFACTURING NEWS • OCTOBER 2011

developments

Switching to ProNest nesting softwar T KOREA:

o efficiently manufacture parts from flat raw material, companies often use nesting software to analyse parts for production. A user-friendly software that requires minimal operator intervention is ideal, but for companies, it sometimes takes switching from one brand to another to find a perfect fit. This was the case for Chungyong Ind Co., Ltd., which replaced its previous nesting programme with Hypertherm’s MTC ProNest® and instantly started enjoying higher productivity and reduced material wastage.

Chungyong is a Korean manufacturer of parts used in shipbuilding. The company has two factories that produce ducts, gas pipes and hatch doors for shipyards like Samsung and Daewoo, who are their major customers.

Lee Seung-Ho, Chief Executive Officer (CEO) of Chungyong said, “Of our two production facilities, one focuses on cutting, and the other on welding. The nesting software is utilised in the first facility, together with our plasma cutting systems.”

Searching for a New Programme Since 2007, Chungyong had been using a nesting software from Germany. However, Chungyong’s operators were not satisfied with the software programme, as it was not easy to use and did not have auto nesting modules. Although the software came with a Korean user manual, this proved to be of little help because the instructions were difficult to understand.

Korean manual with simplified instructions, and post-purchase support was readily available.”

Because the software was simple to use and very effective, operators saved a lot of time and increased their productivity. It took the engineers just one day to get acquainted with the various features of ProNest, and they only needed to be familiar with one product for all of Chungyong’s cutting systems.

“The previous programme was more difficult to adapt to,” Lee shared. “Our operators took three days to understand how to use it. With ProNest, the engineers only needed one day, and they were able to pass the information easily to their colleagues. Also, the software is compatible with different types of cutting equipment, so we don’t need to purchase other programmes.”

Realising the Benefits Once operators were accustomed to ProNest, they benefitted from

the many features that increased production efficiency. One such function is the auto nesting module, where the desired cut parts are nested automatically with the simple click of a mouse, thereby minimizing waste within a given material. Another feature is the Bridge Cutting capability that links cut profiles together, so there is no need to pierce each new part profile. This led to time savings and consumables lasting longer.

With reduced production time, Chungyong increased throughput and turnover.

The company is now also able to maximise the use of its existing material inventory. The software’s Material & Inventory Optimisation function reduces scrap parts by viewing and avoiding material defects. The module also allows parts from different jobs to be nested and cut using the same piece of material, thus improving utilisation and reducing material wastage. Another feature of the

In late 2010, MTC Korea contacted Chungyong to introduce ProNest®, and highlighted the features of the software, which struck a chord with Chungyong.

After a satisfactory three-month trial, Chungyong proceeded to purchase the full version in January 2011.

Lee explained, “There was little difficulty in adopting ProNest as the programme was straightforward and had many functions that required minimal operator intervention.

Troubleshooting was also not a problem. MTC provided a www.asiamanufacturingnews.com

ProNest minimises waste with automatic nesting modules.

developments

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re increases Chungyong’s productivity software fills voids by nesting parts within parts, thereby maximising the use of materials. These have led to lower material costs, and in turn reduced production costs.

Another benefit derived from switching nesting software is that the nesting process now requires fewer operators. Chungyong uses a computer-aided design (CAD) programme to create irregular shapes. When the files are transferred to ProNest, the software is able to correct errors automatically, if there are any.

It can also extract information related to the material, thickness, class and customer from the Bill of Materials (BOM) layer in the CAD file so that operators do not have to key in the information again. The software can also unfold and flatten 3D SolidWorks files and import them for nesting, eliminating the need for manual manipulation. As a result, nesting became less labour-intensive, and Chungyong was able to transfer three employees to another department.

“Nesting is easier and faster now, and we have become more

productive,” Lee shared. “We now spend less on materials and production, and are able to optimise our staff strength. On top of that, we have received business from construction companies, expanding our scope to beyond shipbuilding.”

Growing the Company Certain ProNest functions have been useful for projects within the construction industry. The PIPE Parametric Fittings feature automatically generates flat-plate developments for pipe joints and transitions, and allows users to nest pipes of various shapes and with tee branches of different shapes. This is especially useful in the manufacturing of airconditioning system ducts for buildings.

Lee commented, “It is every company’s hope that its business will expand with every key equipment procurement decision made, and I am delighted that we have achieved this with the help of ProNest, amongst other factors.

We look forward to utilising the many functions of the software when we venture into other

industries.”

The company is pleased with the benefits achieved with using ProNest®, and will apply the software for their third factory.

“Our engineers are very satisfied with ProNest, so we want to continue using the programme,” Lee concluded. “It is user-friendly and easy to use, and we will definitely recommend the software to our OEM suppliers as well.”

Chungyong Ind is a Korean manufacturer of parts used in shipbuilding. The company has two factories in Korea that produce ducts, gas pipes and hatches. Two of its major customers are Samsung and Daewoo.

For 40 years, Hypertherm has been a pioneer in advanced high temperature metal cutting technologies. Setting the standard for cut quality and weldability, the company produces a wide range of automated and manually operated laser and plasma cutting systems. Hypertherm systems are trusted for fast, precision metal cutting and reliability that results in increased productivity and profitability for tens of thousands of businesses. The company has more than 900 associates along with regional operations and partner representation worldwide. For more information on Hypertherm, please visit www. hypertherm.com.

MTC Software, a brand of Hypertherm, Inc., has its central operations in Lockport, New York (USA). Established in 1984 to serve the software needs of the CNC sheet and plate processing industry, MTC Software was founded on the principles of innovative technology, thoughtful design to ensure ease of use, and

ProNest is able to correct errors in CAD files

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developments

PolyU wins industry’s support to promo HONG KONG:

W

ith strong support from the industry, The Hong Kong Polytechnic University (PolyU) has garnered momentum to further promote the use of its award-winning Solarpowered Air-conditioning System for installation on different types of vehicles, which now include mini-bus, taxi, public light bus and truck.

the occasion and showed their support.

Speaking at the press briefing, Professor Tong said the innovation has provided a practical solution to providing green energy for the

To mark the further use of solar energy on the road, the pioneering users and stakeholders gathered on the PolyU campus on 26th September to join the “Green Transport Powering Ceremony” and showed their commitment for green transport. Dr Kitty Poon Kit, Under Secretary for the Environment; Legislative Councillor the Honourable Miriam Lau Kin-yee; PolyU President Professor Timothy W. Tong; and Mr Jacky Lau, Vice President of Green Power Industrial Ltd. also addressed

Picture: The Hong Kong Polytechnic University

This green innovation was developed by Professor Eric Cheng of the University’s Department of Electrical Engineering together with Green Power Industrial Ltd. With the support of Swire CocaCola Hong Kong, the system was first installed on the top of a truck for carrying beverages and proved to work on the road last year.

Vehicles installed with PolyU-developed Solar-powered Air-conditioning System

From page 27

Switching to ProNest nesting software increases Chungyong’s productivity outstanding customer support.

Decades of industry experience, combined with a dedicated inhouse research and development team, allows us to stay at the leading edge of sheet and plate manufacturing technology.

Today, with thousands of users worldwide, MTC Software has grown to become a global brand recognised as the leading industry software for cutting applications, including oxyfuel, plasma, laser, waterjet, router, knife, and punch.

For more information on MTC, please visit www.mtc-software. com. u www.asiamanufacturingnews.com

business news

ote solar energy much-needed air-conditioners for professional drivers in Hong Kong.

He acknowledged the support of Swire Coca-Cola Hong Kong for this project from the stage of pilot testing. He also registered a vote of thanks to the Airport Authority Hong Kong and the transportation industry for supporting its use.

After the ceremony, the stage party joined Mr Cheng Hak-wo, Honorary Life President, Taxi Dealers & Owners Association; Mr Leung Hung, Chairman, Kowloon & NT Public & Maxicab Light Bus Merchants’ United Association; Mr Peter Goh, Managing Director (Motor Group China), Sime Darby; Mr Ricky W.K. Leung, General Manager, Technical Services of the Airport Authority Hong Kong; Mr Lance Wright, General Manager, Swire Coca-Cola Hong Kong, to see an array of seven vehicles installed with the Solar-powered Air-Conditioning System on the university campus.

The vehicle installed with the Solar-Powered Air-conditioning System differentiates itself with solar energy panels made up of photovoltaic modules atop. As it moves along the roadside, it will automatically harvest solar energy for storage in a specially made battery system supported by an optimized control system.

The solar power collected will support a stand-alone electric air-conditioner which can be switched on when the car engine is not running. This sophisticated system can also operate during cloudy or rainy days because solar energy is automatically stored in the battery during sunny weather.

Earlier this year, Professor Eric Cheng and his team had won a Special Prize and Silver Medal for the Solar-powered Air-conditioning System at the 39th International Exhibition of Inventions of Geneva which was held in April 2011. u

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GE expands to Pune PUNE:

G

eneral Electric, one of the world’s most admired conglomerates, has chosen Pune for its integrated manufacturing facility.

GE will invest $200 million (Rs1,000 crore, approximately) in the multi-technology and multibusiness facility that would come up in a 60 acre plot in Pune, GE’s India president and CEO John L Flannery announced in Bangalore on Monday.

It would have a manpower requirement of around 2,000 and help the company expand its product portfolio to increase its market share and revenues in India, he said.

The Pune facility will be a source for all of GE’s India businesses and help the conglomerate localise it products for India, Flannery said. GE said it plans to add another 6,000 to its workforce (GE currently employs 14,000 people in India) in the next two to three years.

Jeffrey Immelt, GE chairman and CEO (pictured left) said that the conglomerate was aiming to use the India technology centres — in Bangalore and Hyderabad — to develop 30% of its products for the local market. Currently 15% of the R&D centres’ product development is for the local market.

Discounting fears of a doubledip recession, Immelt said that was not what most businesses were seeing today. “I think it is a mixture of different sentiments that are going on,” he said, adding that “business is better than the mood”.

Immelt said that there was a robust demand for infrastructure products and that the growth in

the sector will continue.

“We still see robust demand for our infrastructure products and financial services in the Indian sub-continent. We will continue to focus on aviation, transportation, energy and healthcare to grow our business, which had seen about 30% increase last year,” Immelt said.

He said he remained bullish on India as it ranks among the three fastest growing businesses for GE. “We have substantial business coming up in the renewable sector, especially wind energy with orders for $100 million this year and hope to do $250-million business in the sector next year,” he said.

Immelt said that the unemployment rate in the US remains high at 9.1% and the “job creation in this recovery hasn’t tracked as strongly as anybody would like and it has been below previous recoveries”.

Immelt, also chairman of US president Barack Obama’s jobs and competitiveness council, said that there are close to two million jobs open currently in the US which could be filled by the right kind of training.

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ASIA MANUFACTURING NEWS • OCTOBER 2011

analysis

What investors have learned from the major earthquake JAPAN:

T

he Great East Japan Earthquake has dramatically altered the way the Japanese economy is seen. For example, the way that housing and real estate values are seen in Japan has changed since 3.11. Location value is what determines the values of homes and real estate.

Before the major earthquake, for example, locations for residential areas in the Tokyo metropolitan area with beautiful townscapes were highly appraised, even if they were landfill sites. The preferences of people toward residential areas have greatly changed since 3.11, however.

Safety is now more of a concern than factors such as convenience and comfort. Factors such as whether or not there are active faults or the durability of the ground, which had been viewed as relatively unimportant, have all suddenly become important issues. Let us take a look at the psychological changes that have occurred in people’s minds after the major earthquake through stock and housing prices.

due to the huge earthquake.

The Japanese stock market reacted to these two major earthquakes with up to about 6% drops in stock prices on a daily basis.

This can be seen as a universal scale for measuring the level of response that the market has shown to the major earthquakes as unexpected factors.

In the East Japan case, however, there were chain-reaction explosions at the nuclear power plant in Fukushima on March 15.

The market immediately reacted to this second unexpected factor, and the Nikkei average dropped 10.6% on that same day. In the Hanshin-Awaji case, there was no such second tragedy, and that is why the point drop range of stock

By Yuichiro Kawaguchi, Professor at the Faculty of Commerce, Waseda University prices one week after the major earthquakes was very different in each of these cases. The Nikkei average dropped only 8.3% at most in the Hanshin-Awaji case,

Major earthquakes and stock prices May 11, 2011 is the day that a 9-magnitude earthquake struck East Japan. On the following Monday, March 14, the Nikkei average stock price had dropped 6.2%. There was not much else in the news that was significant, and this dropping in stock prices was due to the huge earthquake.

On January 17 sixteen years ago, a 7.2-magnitude earthquake struck the Hanshin-Awaji area. The day that the stock market was affected the most by this earthquake was also the following Monday. On January 23rd, the Nikkei average stock price had dropped 5.6%.

There was not much else in the news that was significant, and this dropping in stock prices was also www.asiamanufacturingnews.com

The effects on housing prices that the Great East Japan Earthquake of March 11, 2011 had were far less severe than the effects on housing prices that the Great Hanshin-Awaji Earthquake of January 1995 had, when comparing the cycle components where trend components have been eliminated (my calculations upon referring to the TSE Home Price Index (Used Condominium, Composite of Tokyo Metro Area).

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analysis had remained stable at low levels for a long time when the Great East Japan Earthquake occurred.

Conclusion - What investors have learned from the major earthquake

The Relationship between Stock Prices and Housing Prices in Japan and US

but it dropped as far as 16.8% in the East Japan case.

Interestingly, although the market reacted differently to these two major earthquakes as shown above, the Nikkei average point drop range as of sixteen business days (about three weeks) from the earthquake disasters in both cases showed convergences at about the same levels (about 5% drops).

Major earthquakes and housing prices Markets such as the housing and real estate markets react differently to major earthquakes than the stock market does. Let us examine this while referring to the TSE Home Price Index, which provides monthly changes in the trading prices of used condominiums in the metropolitan area.

In order to understand the effects of major earthquakes, the longterm fluctuations (trends) must be eliminated from housing price fluctuations, and the fluctuations (cycles) that are disassociated from this are to be derived (Figure 1).

After the Great Hanshin-Awaji Earthquake, the cycle components of the housing price index of the metropolitan area dramatically dropped for a long period of time

(eighteen months). On the other hand, the dropping in prices after the Great East Japan Earthquake was no more than one-tenth of that in the Hanshin-Awaji case.

In the Hanshin-Awaji case, housing price cycles decreased the most eight months after the earthquake disaster so there is a chance that they will decrease the most around November 2011 in the case of the Great East Japan Earthquake. However, the point drop range should be very low when judging from the current situation.

Housing prices in the metropolitan area reacted differently with the two major earthquakes.

The following two factors may be the reasons why. The first is the difference in the types of earthquakes that struck. The earthquake in the Hanshin-Awaji type was an inland-type and the earthquake in the East Japan case was a trench-type, and the damages such as destroyed houses are far greater when there are inland-type earthquakes.

Furthermore, trends of housing prices already significantly dropped at the time around the Great Hanshin-Awaji Earthquake.

In contrast, housing price trends

New levels of stock prices and housing prices suggest the possibility that the Japanese economy is seen in a new and completely different way after the major earthquake. It can be said, however, that the effects on stock prices, housing prices, and so on that the Great East Japan Earthquake had are not so huge when compared with the effects brought upon by the bursting of Japan’s real estate bubble in 1990 or the fall of Lehman Brothers in the autumn of 2008. Figure 2 shows the transitions in stock prices and housing prices in Japan and the US from the bursting of Japan’s real estate bubble to now. The world has seen six rare phenomena including currency crises, fiscal crises, economic bubble collapses, and financial crises during the roughly sixteen years between the Great HanshinAwaji and East Japan earthquakes.

The Great East Japan Earthquake once again showed investors that rare circumstances occur frequently. The importance of risk management has been further elevated. u

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