VAHTERUS NEWS 1/2015
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PSHE – A COMPACT AND FLEXIBLE SOLUTION FOR THE PRODUCTION OF LAUGHING GAS p. 12
Dear partner,
VAHTERUS NEWS 1/2015
VAHTERUS & 2014 2014 was a very successful year for Vahterus. We delivered 28% more heat exchangers to our customers than the year before and our revenue approached to 40M€. Regarding small and medium sized companies such growth is relatively rare and not easy to achieve, but ever so interesting to pursue.
Publisher
Vahterus Oy
Editor in Chief Sari Kesälä
Lay-out
We have our long-lasting relationships with our excellent customers to thank for the growth. Throughout the years we have been fortuned to develop new, tailored heat exchange solutions together with our customers. Together we keep on discovering new ways and opportunities within somewhat traditional technology – that is a true joy to witness. With enthusiasm we continue to improve heat transfer for the sake of our customers.
Interviews
The year 2014 was a financially sound one, too. We improved our operations as a whole, all the way from order to delivery. Our delivery reliability increased and our delivery cycle shortened with 20%. The good results give us strength and faith in continuing to invest in R&D as well as means for investments in equipment and machinery, which are necessary for growth. Also the growth of our sales network consumes resources, but we are prepared.
History
As a whole, I can gratefully state that the year 2014 was a good one. For that I owe thanks to the Vahterus staff, and to you, our great customers.
Mainostoimisto Tekokuu Hilkka Rissanen Raija Herrala Terhi Raumonen
Press
Euraprint
On the cover
László Silóczki, Linde Gas Hungary Zsolt Kövessy, Polycool Kft.
Vahterus Oy
Pruukintie 7 FI-23600 Kalanti FINLAND Tel.: + 358 2 840 70 sales@vahterus.com
Vahterus LLC, America
PO Box 77264 Charlotte NC 28271 USA Tel.: +1 704 846 5050 sales.americas@vahterus.com
SOMETHING NEW Our aim is to always provide something new for our customers – and we have managed to do so over the years. I claim that Vahterus can produce the world’s most versatile solutions for welded plate and shell heat exchangers: whether concerning applications, heat exchanger materials or operating pressures and temperatures. Our production line can now produce plates up to 1.5 mm thickness. For applications that require more reliability and a long operating time, thicker plates are the right solution. I encourage you to ask our sales people about the benefits the new thicker plates could bring to your heat exchange solutions. To improve our customer service, we also brought our telephone switchboard back as an in-house service. We believe it makes our personnel easier to reach for our customers. We also took a significant step forward in the research of heat exchange as the Vahterus’ steam laboratory was installed to the Turun Seudun Energiatuontanto Oy’s power plant in Naantali. The laboratory enables tests for steam and water applications with significant power. I express my deepest thanks to the CEO of Turun Seudun Energiatuotanto Oy, Tapani Bastmann, for making the cooperation possible. As the energy industry is an important and growing business sector for Vahterus, the laboratory tests are of great value to us.
Vahterus GmbH
Benzstrasse 2 63768 Hösbach GERMANY Tel.: +49 6021 181 700 webmaster@vahterus.de
Vahterus Heat Exchangers Shanghai Co. Ltd
Room 1741, Building #2, Shanghai Arch 533 Lou Shan Guan Rd., Changning District Shanghai, CHINA 200051 Tel.: +86 21 5162 8535 sales_china@vahterus.com
Vahterus (UK) Ltd
Office 36, Aspect Business Centre, Aspect House, Aspect Business Park, Bennerley Rd, Nottingham, NG6 8WR UNITED KINGDOM Tel.: +44 1332 863175 vahterus.uk@vahterus.com More news and articles can be found at www.vahterus.com
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ACHEMA 2015 ACHEMA exhibition is the most important exhibition of the year for Vahterus. The process and chemical industry needs more efficient and economical heat exchangers, as energy efficiency and competitiveness grow increasingly important. I’m convinced that for heat transfer in the process industry plate and shell heat exchangers are the solution of the future – which makes Vahterus’ new PSHE heat exchangers a product of the future. At our stand we present our latest and most important solutions for heat exchange as well as our outstanding cleaning techniques. You are most welcome to visit our stand and challenge us to find solutions for your unique heat exchange needs.
25 YEARS TOGETHER Vahterus has been in operation for 25 years now. In this issue we shortly reminisce the past years during which Vahterus has grown, from almost out of nothing, to a significant heat exchanger manufacturer in the world. Those who know me know that home and country are things I highly value. Family and loved ones are everything to me. I am ever grateful to have worked on this demanding and interesting field with our own crew: people from Kalanti, West Coast of Finland and Finland in general. Topped of by you – our long-lasting partners and customers. With our innovative Vahterus technology we continue to work for a cleaner environment and a better future for the generations to come. Dear reader, we have a great task before us. Let’s do it together.
There aren’t enough words to express the meaning and importance of my family in my life. We have gone through a lot together, including hardships, and we continue to go forward one day at a time. The time spent together with my wife Sinikka, in my private life as well as at Vahterus, has been the corner stone of my life. With gratitude I think of also those who we had the pleasure of working with over the past 25 years, but are no longer here to share our success with us. As I’m writing this, Simon & Garfunkel’s Bridge Over Troubled Water is playing on the radio. As I listen to the lyrics, I can’t think of a better meaning for life. When we keep in mind the priorities of life: health, loved ones and work (in this order), they will lead us to the right direction.
Dear reader, I thank you for the generationlong path we have travelled together for the sake of better heat transfer and better future. Together we succeed!
Mauri Kontu Managing Director
Sinikka Kontu, Mauri Kontu and Jorma Laaksonen, who has worked at Vahterus Oy since 1990
The Power of Vahterus Where does Vahterus’ energy and strength come from? The company has 25 years of operation and growth behind it. As the chairman of the board, I’ve been able to observe its success closely throughout the years: in a sense as an insider but yet far from the operational level. My perception is of course also influenced by my close family ties to the management and Kalanti – the village where I too was born. The key factors behind Vahterus’ success are entrepreneurship, understanding and determination. Mauri had a strong vision of a new kind of a heat exchanger with new structure and production procedures – and of its success. Naturally it required deep knowledge and understanding of the field of heat exchange. From the very beginning Vahterus has understood the meaning of innovations, technology and patents as competitive advantage in offering new solutions to the customers. Entrepreneurship and family business values have remained strong throughout Vahterus’ history. It is visible on the ownership base as well as on the ability and willingness to take controlled risks. Like a family Vahterus’ takes care of its people – I’ve witnessed this with great respect even through the hardest of times. Vahterus has always focused on understanding the customers and on listening to them. For Vahterus it means developing better, innovative solutions for heat exchange in cooperation with the customers. In the end, it is the customers who pay the salaries of both the staff and the owners. What is remarkable and distinctive about Vahterus is the extraordinary management of growth and know-how and the way the company continuously solves challenges and bottlenecks coming its way. Since the company’s annual growth has been measured in two-figure numbers for 25 years now, it’s no wonder that Vahterus has had to face continuous
challenges in production, sales, HR, technology – in just about everything. Solving these in such a great manner could only have been done with determination, insight and successful investments in know-how and expertise. For this we have the excellent management and leadership to thank. Vahterus and its owners are known of and driven by their affection to the region: Kalanti, West Coast of Finland and Finland – in this order. Even though nearly all of Vahterus’ customers are outside of Finland. Locality has been a true strength in the company and also valued by the customers. When visiting the factory Vahterus’ customers have often been very impressed by the professionalism and expertise they encounter. The company has chosen to continue following the strategy of strong growth. I believe the cornerstones of Vahterus – family company values, locality, know-how, customer orientation and challenging old ways – will bring Vahterus to its goal. As someone has wisely stated about the source of vitality: ”Having more dreams than memories creates vitality and drives you forward”. In my opinion, this has been the case with Vahterus as well – we have great memories of the years passed but the dreams of tomorrow give us energy and encouragement to reach our goals. I thank Vahterus for including me on this 25-year journey of determined success.
Aappo Kontu Chairman of the board
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Financial director as fast as lightning
25 YEARS OF INNOVATION AND INSPIRATION “Success comes from collaboration with employees and customers” The end of one thing is often the beginning of another. This was the case in 1988 as well, when the manager invited all employees in for a cup of coffee and announced that Rauma-Repola would be closing down the HVAC factory attached to the Uusikaupunki shipyard, and that would be best for everyone. Someone with a degree in engineering and who had been working at that department with a hundred colleagues for ten years, did not agree. He had recently bought a farm and started a family. Something had to be done to secure an income. “When the HVAC factory started manufacturing the first Finnish plate heat exchangers, I was able to write my thesis on it in 1978. And then, I became stuck in this field,” says Mauri Kontu, the CEO of Vahterus Oy. Thus, the roots of Vahterus can also be found at the boiler factory in the shipyard. When the company was founded on 05.09.1990, named after Mauri’s childhood village, the idea behind it was to develop something new in the field of plate heat exchangers. Vahterus’ first production premises were situated in the farmyard of Mauri’s childhood home, a former pig house. Behind the walls you could hear the bleating of sheep that his wife, Sinikka, was looking after. There, a few employees started manufacturing plate & shell heat exchangers. Mauri himself had just taken on a full-time job at an engineering firm, and was initially involved in Vahterus’ operations only as a side4
line. Vahterus’ first CEO was Sinikka Kontu, currently the company’s Financial Director. She had been active in the financial field before, and had worked at a bank, for example.
Mauri and Sinikka initially met through sport, because both were involved in longdistance running. Mrs Kontu, née Tyynelä, is actually one of the fastest Financial Directors in Finland: she has won around thirty Finnish Championships over various running distances, and she also ran a world record time for U18 girls. Sinikka represented Finland in the Munich Olympic Games when she was 18, and her 1500-metre running record is still unbeaten in Finland. What does a background in endurance sports give to an entrepreneur? “Endurance, ambition, goal orientation, determination, toughness,” Sinikka enumerates, and Mauri nods. Mauri’s contacts from his employment period at the HVAC factory helped to obtain business partners, as well as the very first customers and business. Familiar companies dared to try out a poorly known product of a new company, as they knew Mauri and others involved in Vahterus’ operations. “A special mention goes to a boiler manufacturer in Turku. The significance of their purchases to the survival of Vahterus was absolutely essential,” Mauri says. The machines required for production were assembled by themselves, using parts of old machines. “When my father-in-law gave me a small drill for Christmas, we made it into a welding machine.” It was difficult to obtain money for developing a new business. An alternative was to put their own property up as security for the loans. “We really realised only later, what a huge risk we took. We couldn’t pay ourselves a salary
VAHTERUS NEWS 1/2015
from our business at first, but we strongly believed that Vahterus would make progress,” Mauri and Sinikka ponder.
Fortune favours, and then abandons the company During the early days of Vahterus’ business operations, a Swedish distributor arrived on a visit to Kalanti, together with a Swiss customer. “I was presenting our fine production premises,” Mauri says. “We went from the lathe and the welding workshop, through the sheep barn, to another room where we pressed plates. The salesperson told us later that if there had been an earthquake in Kalanti at that time, he would have jumped immediately if the earth opened up, because he was so ashamed. He took the client from Turku to Stockholm on a ship, and said he would make sure that the client wouldn’t remember anything about his trip to Finland.” The story does not say whether the plentiful liquid catering helped to erase the smell and noise of sheep from the Swiss client’s memory. When the economic depression made the engineering firm close down, Mauri moved on to Vahterus full-time, and became the CEO of the company. The times were tough, but he had plenty of courage. Vahterus started introducing their plate & shell heat exchangers elsewhere at trade fairs around Europe. A whole team represented the company at the HVAC fair in Germany. “There, a few people became really interested in the product, and wanted to try to sell it.” At the same trade fair, Vahterus’ heat exchangers were also spotted by a Dutch buyer of refrigeration technology, who traced the contact information of the Finnish company through the embassy. He persisted because he had noticed the potential of Vahterus’ product with regard to applications in industrial cooling. “At that time, we hardly had any knowhow in the field of refrigeration,” Mauri says. “Today, 60 – 70 % of our business operations come from the refrigeration sector.” The company which had had a great start experienced a major setback in October 1993, when a fire that probably started from a spark destroyed the production premises. The factory that was being renovated destroyed completely, and production was halted for several months. “There was no financial capital. We came
really close to shutting everything down,” Mauri reminisces with a serious tone.
A new beginning in an old dairy However, the company arose from the ashes, and soon became stronger than before. Money matters were sorted with the
The salesperson told us later that if there had been an earthquake in Kalanti at that time, he would have jumped immediately if the earth opened up, because he was so ashamed.
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25 YEARS EXPERIENCE WORLDWIDE
Vakka-Suomi has a unique history regarding the historical production of wooden vakkas, and foreign trade, already from the middle ages. Before any agriculture even existed in this region, thousands of vakkas were mass-produced here, and taken elsewhere to Europe. Indeed, the town of Uusikaupunki was founded namely in Kalanti, in the year 1617. “In this place, I have started to respect traditions in a new way. It
tion facility with the world’s top technology inside an old building.”
Growing pains and the pulse of Shanghai
feels good to be a part of this continuation,” Mauri ponders. A telling sign of the management’s love for their home region, and traditions, is that all of Vahterus’ offices have been named after the villages of Kalanti. Foreign visitors consider the country-style milieu and the area of the old dairy to be exotic. “They almost cannot believe their eyes. The contrast is rather great, if there is a produc-
In the late 1990’s, Vahterus experienced rapid growth. People were working round the clock when sales had been made, before the machinery was even ready for it. The company’s internationalisation process had started in the year 1991, when representatives for Vahterus’ exchangers were found in Germany and in Great Britain, but both of these partnerships failed. “There were problems on both sides. Our production facilities were not ready for such large markets, and the distributors did not focus on the marketing of our products to the extent that we had required. The contracts were terminated,” Mauri says. Later, internationalisation continued in more favourable terms. Collaboration with
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help of a local insurance company and a bank, and agreements were made with the customers as well, even though previously agreed orders were delayed. New production premises were found in the centre of Kalanti, in a former dairy. The dairy, which was built in the early 20th century, has a significant cultural history, which is very important to the local residents. The generation of their parents and their grandparents had spent time at the dairy’s clubhouse, where there were dances and theatre performances. The young men of Kalanti left from the courtyard of the dairy, to fight in the Winter War. Vahterus has cherished these old buildings, and all new buildings constructed on this plot have been designed to match the style of the existing buildings, even though this has resulted in increased expenses.
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a Dutch distributor resulted in a Kold trofee award for Vahterus in the 1997 trade fair of refrigeration technology in Holland. Vahterus is still collaborating with that company. Subsidiary companies were founded in Germany and in Great Britain. Finland’s ascension to the EU, and the replacement of national regulations with a common pressure equipment directive were significantly beneficial for Vahterus’ business operations. Vahterus also started to aim towards Asia. The company was able to find an agent and a distributor from China, which was a great help from the year 2002 onwards, marketing Vahterus’ products actively. As the Asian business deal progressed, the company started to consider establishing their own assembly factory in that re g i o n . L a rg e heat exchangers are heavy to transport, and they cannot be transported by air. The journey of a heat exchanger from Kalanti to Asia is so long and slow that Vahterus lost business due to the delivery times. An extensive survey was carried out regarding South Korea and China, but due to the economic recession that
began in 2008, the project was postponed. The book of orders, which had become quite thin around 2010, was full again. The successful deal in China and the collaboration with the distributor influenced the fact that after the recession, the company decided to establish a factory in China, instead of South Korea. The sales company Vahterus Heat Exchangers (Shanghai) Co. Ltd China was established in Shanghai. The assembly factory started operations near Shanghai at the beginning of 2013. The inner parts of the heat exchangers, i.e. the plate packs, arrive there ready-welded from Finland, and shells are added to these in China. Currently, Asian markets account for more than 20% of Vahterus’ production. “With this factor y, deliveries became 2 – 3 weeks quicker. It is a really big market for products of the energy field, and we can see that it is a large growth
made circular, and they were fully welded into a pack, with a protective shell around it. Only two holes were made into the heat exchanger plate. “We tested several alternatives, and through trial and error, we found an excellent solution. Once we discovered the right
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Companies have been manufacturing heat exchangers for a long time. In the German exchanger patented in the 1890’s, there were rubber seals between moulded steel plates. However, these seals did not handle high temperatures and operating pressures well. This problem was solved by Vahterus Plate & Shell: a fully welded heat exchanger, the first of its kind, and the outcome of completely original product development. Throughout all these years, the basic idea behind the product has remained the same. The range of sizes has grown from products the size of a bucket to products the size of a delivery van. Before Vahterus, plate heat exchangers were rectangular, and they had four holes. This presented a challenge with regard to welding. Vahterus developed a completely new structure for exchangers: the plates were
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A circular heat exchanger arouses interest and passion
The range of sizes has grown from products the size of a bucket to products the size of a delivery van.
Large heat exchangers are heavy to transport, and they cannot be transported by air.
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opportunity for us. The pulse around Shanghai is definitely very different than at the centre of Kalanti,” Mauri chuckles.
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YEARS EXPERIENCE EXPERIENCE WORLDWIDE 2525 YEARS WORLDWIDE
option, we started developing manufacturing From a moonshine pot to equipment and technology. The best invendrilling rigs tions are simple,” Mauri says. “A moonshine pot from Vehmaa,” Mauri However, broadly speaking, plate heat Kontu smirks, when he is asked about referexchangers only seem to be simple. ences that the people of Vahterus are par“It takes a lot of theoretical competence ticularly proud of. to understand how heat moves in the plates Indeed, a part has been made for a moonthrough the heat exchanger; what are all the shine pot, but it was such a long time ago that things that influence it. There are very many Mauri thinks the crime has already expired. technical details. You need top-category Since then, Vahterus’ products have been material and welding expertise. The impleincluded in slightly bigger circles. The commentation and measurement of the shell pany has supplied technology to large ice also needs solid know-how of the strength arenas around the world, including NHL arenas of materials.” and the ice hall built for the Turin Olympic Already from the start, Vahterus has carried out a lot of research in Finland and internationally, to gain knowledge and know-how, collaborating with universities, companies and other expert groups. Collaboration with Mauri’s study place, Tampere Institute of Technology (currently a university) started a long time ago, and has resulted in a shared refrigeration laboratory that was opened on Vahterus’ premises in 2005, for example. “I myself am no scientist, and I am a very poor theorist. My strength has lain in practical implementa“Send us a proper heat exchanger, tions, and finding applicathis isn’t some sort of a tions. Vahterus has a good kindergarten” product development team, but I want to be involved, when new solutions are being made. Besides collaboration with customers, it is an important part Games. In Switzerland, the Post of this work,” the CEO says. Finance arena in Bern switched Collaboration with researchers and stufrom ammonia to carbon dioxide dents has been very fruitful for Vahterus. with the help of Vahterus’ heat “A circular plate & shell heat exchanger exchangers. causes suspicion, and passions, and is sciIn the skiing tube opened in entifically very fascinating,” Mauri chuckles. 2005 in Uusikaupunki, the longest Vahterus’ heat exchangers are always sports facility in the Nordic countailor-made according to the customer’s tries, carbon dioxide is likewise requirements. It is through collaboration with used for cooling. customers that new applications have been Vahterus’ heat exchangers are found for these heat exchangers. used on oil rigs, for cooling proBecause this product can be used with cesses in gas fields, power plants. natural refrigerants, Vahterus has been invited In France, a 15-year development to participate in development projects for project is currently ongoing natural refrigerants, in Europe and elsewhere regarding a new type of nuclear in the world. power plant, which requires large “Being included in these “carbon dioxide water cooling equipment. groups” has opened many doors for us, and A skiing slope in the Nethergiven credibility to our products.” lands, a giant French cosmetics’ manufacturer, an aircraft carrier, the world’s largest beer brewery,
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the world’s largest 4-stroke diesel engine. Vahterus’ heat exchangers have been delivered to really challenging conditions, as well, such as for the cooling of a South African platinum mine, and for a coal mine in Poland. In 2012, Vahterus UK, in collaboration with another company, delivered refrigeration technology for the European laboratory of particle physics (CERN). Through the American subsidiary, Vahterus LLC, the company’s customers include large corporations of the food industry, and as far as the South American side is concerned, a Brazilian oil giant. “It makes me humble just thinking about these things,” Mauri Kontu says. There are satisfied customers at thousands of sites around the world, but it is not at all infrequent for a customer who has just received the product to make an angry phone call to Kalanti. Customers are often shocked when they receive such a small product to replace a previous heat exchanger that was roughly the size of a house. “Send us a proper heat exchanger, this isn’t some sort of a kindergarten,” Mauri gives an amusing summary of the angry feedback.
VAHTERUS NEWS 1/2015
Customers find it hard to believe at first that the new heat exchanger can function at their site, despite being only a fraction of the size of the previous exchanger. Indeed, the CEO likes saying that Vahterus sells empty space.
Salespeople no longer need to wish for an earthquake when they bring clients to the factory, because the production facilities are full of cutting-edge technology.
Success and inspiration pay off The premises that seemed spacious in the year 1993 soon filled up, and once there was no room to build anything else on that plot, new production premises were built a kilometre away. Salespeople no longer need to wish for an earthquake when they bring clients to the factory, because the production facilities are full of cutting-edge technology. Like already at the very beginning, all the machines and programmes required for production are created on site. Over the years, Vahterus has been awarded with several entrepreneurial prizes, export awards and environmental awards, including the Regional Entrepreneur Award 2010. The company’s reputation as an employer is good. Vahterus has hardly made any employees redundant, or terminated their contracts. “As the company has grown, the relationship with the employees has changed a bit,” Mauri states, slightly worriedly. “I no longer have the time to visit the factory as often as I used to, and I don’t remember everyone’s names anymore.” The management strives to look after and hold on to their employees. It is important to keep the motivation up. “Employees don’t enjoy their work environment, and don’t give their best effort if they feel that their work is not appreciated,” Sinikka Kontu says.
How can you keep your own motivation even after 25 years of entrepreneurship? “From things progressing constantly,” Sinikka says. “As we grow and succeed, it is really inspiring. I interact with the staff a lot, and as I see people succeeding and inspiring, that inspires me, too. Even if we experience problems, we are able to solve them, and move forward.” “I’m happy to be involved with many international customers and technology,” Mauri says. “The constant development
potential in this field is truly inspiring. When you have a product with which you can develop the environment, and build the future, your work has a meaning. Your own crew, employees and customers are the top priority. Through them, we can achieve success. I breathe through these people,” Mauri puts it poetically.
Money is not the answer for everything When Mauri and Sinikka Kontu are talking about the company, they often use the word “family”. Indeed, the significance of family has been great in Vahterus’ operations, as well. Mauri and Sinikka have been the best colleagues for one another throughout the company’s entire life span. Mauri considers himself to be a bit of a daydreamer, while Sinikka has her feet firmly on the ground. The encouragement and upbringing of their childhood home has paid off. Mauri’s twin brother Aappo has been included in Vahterus’ operations from the very beginning, as the chairman of the board, and initially as a co-owner. Mauri’s sister, Kristiina, worked for the company for 10 years. Currently, the company employs Sinikka’s and Mauri’s son Matti, who spent a year in China launching the assembly factory. The Kontus’ daughter is currently finishing her thesis on brands and online marketing, and is also included in the board of the company. Vahterus wants to remain a family business. “In a family business, money does not
solve everything,” Sinikka says. “It seems very strange to think that someone would redevelop a company and lay people off just because of money, just like large listed companies do. I couldn’t bare to think that these people here would be treated only with regard to money. The company is interested in and obliged to achieve a financial result, because we are after growth, but we do not consider matters only from the perspective of money”.
A look forward “The slowness and conservatism of the field have been an advantage for Vahterus,” Mauri Kontu says. “Even in 25 years from now, our products will still be a novelty in the world. If we were involved in electronics or in the mobile phone business, our own resources would definitely not have been enough. Our competitors have not brought much new to this field, so we have been able to continue with our own product development in peace, growing customer relationships and competence. The heat exchanger market is huge, and despite its rapid growth, Vahterus is still a rather small player; Mauri Kontu said that when the processes are in order, an annual growth rate of 20 – 30 % is still possible. The market is so big, and heat exchange has its own large part to play as companies strive to reach objectives related to environmental protection. It is likely that there more assembly facilities will be built abroad, similar to the factory in China, because more than 90% of the production is exported. However, the core welding processes remain in Kalanti, because the company needs to protect its manufacturing technique, and to ensure the high quality. “Our growth objectives are rather big. In a relatively short time, we should expand 2 – 3-fold. I don’t know if that’s possible,” Mauri ponders, but then adds with a smile, “yes, it will be possible, but it will always be up to the customers.” The CEO never tires to emphasise the role of customers in Vahterus’ success story. All development has occurred through customers. With their help, the Vahterus of today has been created: delivering heat exchangers around the world, for countless different sites. The people at Vahterus trust their own competitiveness and competence. Innovation is the resource for keeping competitors at bay. “Growth is important, it creates jobs and well-being in this place,” Mauri Kontu says. “In my view, my task is to influence the progress of this region, and Finland in general. We want to show people that we can do things here, too. We have to be better than people in Helsinki and Sweden, all in the spirit of good sportsmanship!”
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Vahterus&Us
QUALITY THROUGH PEOPLE Vahterus has renewed the organization 2014 to improve the customer service. Sales and design teams were divided according to three business areas: Chemical&Process, Energy and Refrigeration. According to Chemical&Process business manager Marko Rantala, the new structure centralizes the know-how of selected industries and customers’ needs within sales and design teams.
Business manager’s job is to guide the team forward and further improve Vahterus presence in Chemical and process market. Besides Rantala, the Chemical&Process sales team includes four key account managers, two sales engineers and sales coordinator. In addition to the sales group the chemical and process business area also has its own design team led by principal designer Tommi Järvelä. There are several sub-segments in
ferences in order to improve the knowledge of subsegment – and of course getting to know with more people. -As Vahterus heat exchangers are tailor made for each customer request, the people in sales need strong technical knowledge on heat transfer, materials and manufacturing techniques. Thus, the majority of our sales people actually have a background in engineering, Rantala says.
Selling is all about understanding customer needs - Our ultimate goal is to offer more value to customers. This is achieved by better understanding of our customers and their processes. We can now make better thermal designs that fit the application needs and our mechanical designers know the specific requirements for the industry or specific customer. This makes the whole process more efficient.
Chemical&Process industry: oil refining, petrochemical, industrial gas, pulp and paper, vegetable oil, pharmaceutical, food&beverage and fertilizer. Every sales person is responsible for a sub-segment as well as for geographical area. Besides talking and visiting with customers in Chemical&Process sector, sales people participate in industry trainings and con-
Process and chemicals team 10
Cooperation beyond team limits Heat exchangers are crucial components in many different process plants, therefore, the design of heat exchangers must fulfil all requirements of the customer. Requirements of the customers are based on their knowledge of process conditions that the heat exchanger is going to experience during its lifetime. In case of failures
VAHTERUS NEWS 1/2015
in service, especially in capital intensive Chemical&Process industry, the losses on production could easily exceed the cost of equipment. This requires us to closely communicate with the customer and take into consideration hundreds of pages of specifications. Each enquiry is handled by one of sales persons according to their specialization. He or she then makes thermal calculation based on the specifications from the customer. Design department is needed as well. - Co-operation is very important. Together with our distributors, colleagues and design team we go through all technical details that impact the offer, key account manager Suvi Veräjänkorva says. - When offer is done properly and leading to purchase order, then the realization of the project is easier. If all details (e.g. welding seams and welding techniques) are clarified in the offer phase, then the detail engineering is easier to finalized by the designer, principal designer Järvelä continues. Often big and demanding offers are done jointly in order to serve the customer
on time. According to business manager Rantala, the most important function of the sales team is to filter the right information for the use of design and production personnel. That is why a lot of effort is put on the offer phase. - We have gotten a lot of positive feedback of actually listening to our customers’ needs and using resources in order to fulfil them, Rantala says.
The order process When the offer turns into an order the key account manager reviews it once again. Then sales coordinator Sanna Utrila is entering order into ERP system. After production engineer has allocated the capacity for the manufacturing, then sales coordinator sends the acknowledgement of order. In bigger and more complicated orders Vahterus allocates a project manager, who is taking care that all customer requirements are followed in design, purchasing, manufacturing and inspections. These special customer requirements are discussed and controlled during the internal kick off meeting with all parties
involved. Then design team starts to work on strength calculations, drawings and other documents. In some projects it is necessary to hold kick of meeting or preinspections meeting with the customer. The best way to clear out the questions is to sit around the same table, states Järvelä. After the design is ready and accepted by the customer the order goes into production. The purpose of the well-knit order chain is to transfer information efficiently from one phase to another. Therefore, the role of cooperation and smooth communication between all parties is vital throughout the process. Even though the various and very specific requirements of clients make the work of the Process&Chemicals sales team challenging sometimes, it also makes it more interesting. - We have wonderful customers, colleagues at our own sales offices and distributors with whom it is pleasure to work with. That makes our jobs meaningful as well, sales coordinator Utrila sums up.
Sales team Marko Rantala, Business Manager Suvi Veräjänkorva, Key Account Manager Tuomas Aikkinen, Key Account Manager Ville Kesälä, Key Account Manager Krista Laaksonen, Key Account Manager Grigory Konkov, Sales Engineer Edson Martins, Sales Engineer Sanna Utrila, Sales Coordinator
Design team Tommi Järvelä, Principal designer Elina Ahola, Senior designer Tero Lahdenranta, Senior designer Sami Pesonen, Designer Tuomas Hokkanen, Designer (not in the photo)
”When offer is done properly and leading to purchase order, then the realization of the project is easier. If all details (e.g. welding seams and welding techniques) are clarifi ed in the offer phase, then the detail engineering is easier to fi nalized by the designer”
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Picture from Taiwan: Linde Gas Hungary
VAHTERUS NEWS 1/2015
“PSHE
Author: Tuomas Aikkinen, Key Account Manager, Vahterus Oy Interview: Zsolt Kövessy, Managing Director, Polycool Kft.
– A COMPACT AND FLEXIBLE SOLUTION FOR THE PRODUCTION OF LAUGHING GAS The strong benefits of Vahterus Plate & Shell Heat Exchangers (PSHE) have been proven in refrigeration installations over the years. For customers working in the refrigeration sector, PSHE brings safety and flexibility for the manufacturing of process skids. As there are clear similarities with the industrial gas sector, the benefits proven in the refrigeration industry also apply to this area of business. PSHE is a compact and flexible solution when designing and constructing process skids; particularly since with PSHE, condensate and/or inert removal can be done within the heat exchanger itself, and there is no need for an external separation vessel. In the industrial gas sector, the materials used for the heat exchangers are predominantly stainless steel. This makes PSHE a
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more cost-efficient alternative with shorter delivery time, especially when compared to shell & tube technology. From a process point of view, further advantages are possible due to improved thermal efficiency, since it is possible to achieve close approach temperatures between the hot and cold side, whilst still maintaining a low gas side pressure drop. In addition, the PSHE construction copes very well with the low temperatures typically used in industrial gas processes. The suitability of PSHE within the industrial gas sector has been proved, for example, in Hungary, where Vahterus has many years of experience and cooperation with Linde Gas Hungary Co. Cltd., who are a producer and distributer of a variety of industrial and medical gases. Particular references of note are in installations for nitrous oxide (N2O)
production. Cooperation has been built together with Vahterus’ official Hungarian distributor, Polycool Kft. and its Managing Director, Zsolt Kövessy. At Linde Gas Hungary, the Plant Engineering Manager, László Silóczki, has also been in close co-operation with Vahterus from the beginning. Linde Gas Hungary is responsible for designing and building complete N2O production process skids. The production process of nitrous oxide is based upon thermal decomposition of ammonium nitrate. Liquid ammonium nitrate is injected into the reactor, causing the evolution of gas, which is then cooled and from which H2O is condensed in the cooler/condenser unit. This gas is then refined in the purification towers, before being compressed to the liquefaction pressure. In the final stage of the
VAHTERUS NEWS 1/2015
process, the gas stream is liquefied before going to storage and delivery. In the process described above, Vahterus PSHE are used for the gas cooler, condensing water, and in the liquefaction of nitrous oxide gas. Due to the corrosive nature of ammonium nitrate gas, the cooler-condenser and liquefier units in the process, are manufactured fully from stainless steel materials. Previously, Linde Gas Hungary used shell & tube technology in their process. In 2004 a Hungarian design office introduced them PSHE-technology, which resulted in immediate interest. “Vahterus PSHE technology gives us a clear advantage with its compact size. Compact size makes the product easier to handle and the final size of the process skid, smaller. It is also more economical for us considering the over-seas shipping of our process skids. Plate & shell heat exchangers used in the skid are manufactured from fully stainless steel materials, so the price advantage of PSHE compared to shell & tube technology is clear” says Silóczki, the Plant Engineering Manager of Linde Gas Hungary. Linde Gas Hungary are very pleased with Vahterus PSHE heat exchangers, and according to Silóczki, “the units have been reliable and trouble free”. Silóczki is also pleased with the close cooperation with Polycool and Vahterus. Over the years, detailed discussions concerning heat exchangers have taken place and modifications to the design have been carried out, according to Linde Gas Hungary’s wishes. Linde Gas Hungary has customers all around the world. In addition to Hungary, skids utilizing Vahterus PSHE have been sold to countries including Malaysia, Thailand, Singapore, Australia, India, South-Africa, South-Korea, Taiwan, China and Algeria. In total approximately 50 Vahterus PSHE have been supplied to Linde Gas skids operating around the world. There are a lot of different design and documentation demands for the heat exchangers around the world and Mr. Silóczki states to be happy about the help of Vahterus with these matters. “Sometimes it is very difficult to know all the project specific needs in the beginning of the project but Vahterus is happy to assist in this matter – sometimes even after the actual delivery of the units” Silóczki continues. Under the current circumstances, Silóczki is happy to continue the co-operation with Vahterus. In addition to the current N2Oproduction skids, there will be demand for smaller N2O production lines in the future. In these smaller process skids, the compact size of Vahterus PSHE is even a more important factor.
FACT SHEET - PARTIAL CONDENSER - Compact size - Possibility for inert / condensate removal - Suitable for low temperatures - Low pressure drop - Close approach temperatures - Economical price and short delivery time - Reliable
László Silóczki, Plant Engineering Manage, Linde Gas Hungary Zsolt Kövessy, Managing Director, Polycool Kft. 13
VAHTERUS NEWS 1/2015
PSHE USED IN COOLING AND HEATING COATING PASTE AT
VALMET Valmet is the world’s leading technology and service supplier of pulp, paper and energy industries. With its 200 year history, Valmet now operates in around 30 countries and employs in excess of 10,000 professionals all over the world. Chemical pulp factories, power plants producing bioenergy and production lines of chemical pulp, tissue, cardboard and paper and hold a central position in Valmet’s operation. Vahterus PSHE are used at the circulation of a paper machines, curtain-coating station. The purpose of the heat exchanger is to either cool or heat the coating paste used for coating paper or cardboard. The cooling or heating is carried out by circulating water on the primary side of the heat exchanger. To ensure quality, machine circulation requires a demanding air-removal process. The coating paste needs to fulfil strict quality standards at the curtain-coating station as bubbles in the paste can decrease the quality of the paper or cardboard. To stabilize this process, Valmet uses Vahterus’ Plate & Shell heat exchangers. Even though the temperature of the paste coming from the coating process may vary, the heat exchanger stabilises the temperature for the air-removal process. 14
The long term cooperation between Vahterus and Valmet started ten years ago when the first Plate & Shell heat exchangers were delivered to Valmet’s paper factory in Kauttua. The heat exchanger has been designed to be installed directly onto the main process line leading to the air-vent, which means that in the case of failure the whole coating process would have to be paused. However, in this demanding environment, Vahterus PSHE has proved to be a good solution. The design is openable so that the pack of plates can easily be washed with a pressure washer. The procedure is simple and easy to do when needed. The unique solution that was developed by Vahterus is based on a cross flow heat exchanger. It enables high-viscosity medium to be used through the heat exchanger without introducing high pressure losses or contaminating the product. The solution makes the product practically maintenance free, which is naturally cost efficient for the customer. Stopping a paper machine due to a failure in the heat exchanger would cause considerable losses in the production. And the fully
Ville Kesälä Key Account Manager Vahterus Oy welded structure of Vahterus PSHE is more reliable compared to heat exchangers with gaskets or brazed plates. Compared to shell and Tube heat exchangers the Vahterus PSHE is a notably more space-efficient and also cost-efficient solution due to its acid-proof structure.
PAPER COATING PASTE • dynamic viscosity 200-800cp • solids 30-60%
MASLO-DEL LLP “MASLO-DEL” LLP is the largest domestic manufacturer of edible oils in Kazakhstan and the leader of food market with more than 100 types of manufactured products. In Kazakhstan the company is represented by 4 plants and its own developed distributor sales network. Furthermore, the company has its own sales network in Kyrgyzstan and China and constantly committed for innovation in the manufacturing. In autumn of 2014 our Sales Engineer visited two production facilities of “MASLO-DEL” LLP in Almaty. Of the most interest there was a survey of Vahterus PSHEs at the premises of raw edible oil processing. There are six Vahterus heat exchangers made of fully stainless steel on the line of edible oil preparation, which are related to sunflower oil deodorization process handling. The deodorization process is known for very extreme conditions in terms of temperature. Moreover, in this case, when PSHEs are used as recuperative interchangers, the mean temperature difference between cold and hot oils on the inlet is 130°C, and it was designed up to 190°C. Previously installed brazed plate heat exchangers were not able to withstand this temperature difference and had had leakages every now and then. Therefore, according to factory technician in “MASLO-DEL” LLP – reliability is the most evident benefit of implementing PSHEs into their technological process. And absence of gaskets to be replaced over time makes the utilization of Vahterus heat exchangers even smoother than ever. Apart from high temperature difference between two inlets, there is also a requirement for close approach temperatures. Therefore, we had to contemplate multipass solution, when the mediums are in closer contact to each other. With fully welded construction Vahterus can produce as many passes inside PSHE as needed, whereas with openable construction there is a need to implement external circulation (piping) together with dual platepack inside one shell, thus, receive even number of passes with multiple units Company “MASLO-DEL” LLP had requested heat exchangers with openable design in order to facilitate cleaning. However, in those 3-4 years, while these heat exchangers are in operation, there was no need for opening and withdrawal of platepacks from the shell. There is a need for cleaning maintenance, which customer does every second month, but it is handled with backflushing and washing. For those PSHEs it is needed only for the shell side, due to the process handling. Cold side is in the shell and this cold “dirty” oil before deodorization results in greater fouling, whereas hot oil (after the process of deodorization) has no impact on contamination disposition inside the platepack. As a usual procedure they make cleaning on the shell side with use of alkali solution first and wash with the lemon acid at the last stage. Cleaning process entails combination of rinsing and backflushing. Overall, the installation of PSHEs in premises of “MASLO-DEL” LLP allowed to amplify production capacity and to place all needed equipment for increased output within constrained space (on the 3rd and 4th floors) thanks to compact size of Vahterus heat exchangers. And it still provides possibility for further extension of production capacity without need to increase production area.
Grigory Konkov Sales Engineer Vahterus Oy
Welcome to visit your stand to see the latest innovations!
ACHEMA 15-19.6.2015 4.0 G32
Fully welded
PLATE &
SHELL Heat Exchangers
www.vahterus.com 16
VAHTERUS NEWS 1/2015
VAHTERUS PLATE AND SHELL HEAT EXCHANGERS
IN OIL REFINERIES
-DESIGN YOUR ENERGY EFFICIENT PROCESS WITH PSHE Vahterus Plate and Shell heat exchangers (PSHE) are excellent choice for many kinds of applications within oil refineries. In this article we focus on feed/effluent and feed/ feed interchangers as they are important in improving energy efficiency of oil refineries.
efficiency and close approach temperatures are needed to maximize the heat recovery of the process unit. With Vahterus Plate and Shell heat exchangers those requirements can be optimized with the customized design of PSHE.
in process units and avoid CO2 emissions. Vahterus PSHE heat exchangers can withstand high pressures; our standard design pressure classes are 25, 40 and 60 bars but with new thicker plates, even 150 bars can be achieved.
In old days, different effluents from process units were cooled with river or sea water depending what was available. Such systems are nowadays mostly replaced with using feed from the same process unit or from another process unit (Picture); using heat integration of different process streams. Synergy between power plants and refineries is another approach to increase the energy effi ciency of oil refinery. Depending on the location and local energy prices, the excess heat can be sold to district heating if the network is nearby. In a Feed/Effluent heat exchanger, feed to column (fractionator, debutanizer etc.) is heated with hot effluent coming from the same column. Whereas in Feed/Feed interchangers, one feed from one column is heated with other feed from another column of another process unit. Applications for such heat exchangers can be found in and between several process units e.g. in Fluid Catalytic Cracking (FCC) Unit, Gas and Gasoline Fractionating Units and Hydrodesulphurization Units.
SPACE SAVINGS
MAINTENANCE
Plate and Shell heat exchangers are very compact heat exchangers with small footprint. Customized and optimized design of PSHE will not only maximize the effectiveness of operation but they are easily fitted to existing space; it will also make Retro-fitting easier.
SAFETY
In PSHE construction with the fully welded plate pack even up to 1.5 mm plate thickness with standard AISI316L plates or some high-alloyed material inside the robust fully welded shell increases operational safety. As all refiners are looking for higher yields which in turn lead to more severe operational conditions with higher pressures and/or temperatures in refineries, it is important to find solutions where we can recover the most of the heat created
The maintenance depends on the process conditions but also very much on the design of the heat exchanger. In the PSHE units, all units are individually designed to be optimized for that particular application. With the turbulent flow with high shear stress, fouling is reduced compared to other types of heat exchangers. From Openable PSHE unit, the plate pack can be pulled out for inspection and maintenance. In really heavy fouling applications, where the dirt is burned on the surface of the plate, it is possible to make the Stretchable Plate Pack where the mechanical cleaning can be done with good access between plates. As economic and environmental requirements get more stringent, optimizing the refinery is more and more important. With PSHE heat exchangers you can improve the thermal balance of a refinery.
EFFICIENCY
Efficient Feed/effluent or feed/feed interchangers are often plate type heat exchangers because in this application the true counter current flow, high heat transfer
Instead of cooling products using externally supplied cold utilities; streams can be cooled by preheating the feed streams.
APPLICATIONS FOR PSHE IN REFINERIES:
Suvi Veräjänkorva Key Account Manager Vahterus Oy
• • • • • • •
Crude oil preheaters Feed/effl uent or feed/feed interchangers Overhead condensers Evaporators / re-boilers Product coolers and heaters Sample coolers Steam generators 17
IMPROVEMENTS IN CUSTOMER SERVICE Vahterus has made improvements to its phone services with an in-house telephone switchboard. Formerly the telephone switchboard was an outsourced service, but from now on all un-answered phone calls will be transferred to Vahterus’ new customer service coordinator, Minja Silén. Besides unanswered calls, the switchboard serves those who don’t have a direct number to the person they want to reach, or don’t know who they should call. The in-house service enabled by mobile technology is believed to improve customer service. The presence and absence of Vahterus personnel can be checked from internal calendar software during phone calls, which improves efficiency and ensures that customers reach the right people. Vahterus is continuously improving the calendar software and its use to make it more accurate. After a long period of absence, Vahterus is also getting a reception room for visitors. In addition to managing the switchboard, the customer service coordinator will also take care of the needs of visiting customers. Silén who started her job as a customer service coordinator in March perceives that her most important task is to warmly receive all calls and visitors and to make sure their needs are heard and forwarded. - Anyone who calls the switchboard or visits Vahterus is my customer – whether they come from inside or outside Vahterus, Silén states.
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NEWS New production lines in use
New equipment for welding quality control
Vahterus has put two new production lines in operation: the PSHE 3 pressing line and the PSHE 9 line. The new production lines enable the production of thicker plates; Vahterus can now produce plates from 0,7mm to 1,5mm thick. Thicker plates endure higher pressure, which makes them more applicable for demanding circumstances. The new production lines are fully automatic, which improves quality and increases production capacity. On the PSHE 9 production line capacity has increased a full 100 %. Formerly the plates were cut mechanically but with a new laser cutting station mechanical cutting is no longer needed. Due to the automation, a single operator can now operate five production lines at the same time. The increase in production capacity has been warmly welcomed, as the demand for PSHE 9 has rapidly grown. To serve the increase in demand Vahterus has also added a few new welding robots for welding thicker plates.
Vahterus has purchased a microscope and related equipment for analysing the macro- and microstructures of steel plates. Formerly similar tests were purchased as outsourced service, but with the investment Vahterus wants to grow its own expertise and know-how related on materials and welding quality. Pictures and magnifications taken with the microscope enable very close examination of the welding quality and the structure of the metal. The tests can also be used to reveal causes for damages, which increases the quality of the products in the future. Vahterus is building a laboratory for the examination purposes, which should be completed in the near future. Meanwhile test exams have already been made. R&D Engineer Michael Nganga and Quality Engineer Anssi Myllymaa will be in charge of using the microscope at Vahterus.
Investments in modeling of fluid dynamics and heat transfer Kalle Vähätalo, Msc Techn., was employed as an R&D Engineer at Vahterus in the beginning of the year. The employment was due to his distinguished master’s thesis about modeling of fluid dynamics and heat transfer in plate heat exchanger. According to Technology Director Paavo Pitkänen the results were so promising they led to investments for modeling software as well as to employment of Vähätalo. - We are purchasing the required software and technology for computational fluid dynamics. It increases the reliability of our heat exchangers and helps us to further develop our products, says Pitkänen. The investment is rather big, but it is believed to pay for itself. Modeling of fluid dynamics decreases the need for physical prototypes and measurements. The software calculates how changes in different parameters affect the operation of a heat exchanger. Gradually, this leads to improvements in products. The modeling software is also used to improve Vahterus’ own sizing software. It enables the measurement of the values of different quantities when physical meas-
urement is not possible. Vähätalo believes that computational modeling will be increasingly important in the future. - In all design industries modeling is the way of the future. It reduces costs in the long run and makes research and development more efficient. Vähätalo studied fluid dynamics at the Tampere University of Technology in the programme of Environmental and Energy Technology when he heard about the opportunity of doing his master’s thesis for Vahterus. He contacted Vahterus and soon they worked out a mutually beneficial and interesting topic. Vähätalo will work with the topic also in the future, as his job as an R&D Engineer is to be in charge of the modeling of fluid dynamics and heat transfer at Vahterus. Diversity and development are the very things that interest Vähätalo the most about his job. - Working with new products and improving existing ones make this job rewarding. Even though the processes can be long, success brings new energy and enthusiasm every time, Vähätalo states.
SERIAL NUMBER 40 000 DELIVERED
The Vahterus Plate&Shell heat exchanger with serial number 40 000 was delivered in April 2015 to one major European chemical company. The use of this exchanger is reactor temperature control, for both heating and cooling cycles using thermal oil as heat transfer fluid. The reactors are processing ingredients for sun screening products. Besides this new investment in their Swiss site, this chemical company has some 400 Vahterus Plate&Shell heat exchangers in use at their facilities worldwide. Vahterus is grateful for the long cooperation.
& EVENTS Vahterus steam laboratory installed at Naantali Vahterus has installed its steam laboratory at a power plant in Naantali run by Turun Seudun Energiantuotanto Oy. The 10-megawatt laboratory is unique in its size and is built for testing steam condensers for the purposes of research and development. The contract made with the power plant includes the space and the steam needed for the laboratory. The heat energy gathered from the steam used by the laboratory is returned to Turun Seudun Energiantuotanto Oy’s district heating network. The steam laboratory is primarily used to test steam condensers in terms of improving their structure and sizing. The tests made in the laboratory will also give insight about desuperheaters and control systems. The first tests have already been carried out and Tatu Laajalehto, an R&D Engineer who has been involved with the project from the beginning, states that the expectations are high. - The results will give us insight about the durability of our heat exchangers in different circumstances. The tests will be made using various plates, structures and sizes of exchangers. The laboratory is unique in its size, as similar power is difficult to reach in other
than power plant circumstances. Laajalehto doesn’t know of any other similar-sized test laboratories. The steam laboratory is just one example of Vahterus’ investment in research and development in the recent years. Also the amount of personnel at R&D department has been increased. Laajalehto himself started working at Vahterus two years ago after graduating as a Master of Science in Technology from the program of Energy Technology at Aalto Uni-
versity. Now he works as an R&D Engineer and perceives research and development as an important factor for Vahterus’ success but also as an interesting field to work on. - In R&D one gets to research new things, to analyse results and to use that knowledge in developing products. After all, R&D is an important part of any company’s competitiveness, Laajalehto states.
Vahterus Oy designs and manufactures fully welded Plate&Shell Heat Exchangers in Kalanti, Southwest Finland. Over 90% of the production is exported all over the world, mainly to energy technology, process and chemical industry and refrigeration industry. Vahterus’ turnover is 40 million euros and the number of personnel is 230. Subsidiaries Vahterus LLC, America Vahterus GmbH Vahterus Heat Exchangers Shanghai Co., Ltd Vahterus UK Ltd www.vahterus.com