Vahterus Hot & Cold 2/2017 English by Vahterus Oy

VAHTERUS NEWS 2/2017

PSHE part of the fusion nuclear power plant p. 15

Quality starts with procurement p. 6

Dear partners, Vahterus 2017 Vahterus is the forerunner of Plate & Shell heat exchanger technology and a company known for its innovativeness. Technology developed by Vahterus is utilized worldwide in various demanding processes in the oil and gas, chemical and process, energy and refrigeration industries. Vahterus Oy Pruukintie 7 FI-23600 Kalanti, Finland Tel. +358 (0)2 84 070 Subsidiaries Vahterus LLC, America Vahterus GmbH Vahterus Heat Exchangers Shanghai Co., Ltd Vahterus UK Ltd

This year is set to be a significant year in terms of growth for Vahterus. We have expanded internationally, launching operations in South Korea and Australia. This year has also been one of constant renewal. Even though you have rated our operations as good or even commendable, we would like to assure you that we will continue to develop based on the ideas and feedback you have provided to us. With our new organisation we aim to provide faster and more in-depth customer service, as well as taking even more into account the feedback you have provided to us. The constant streamlining of products and operating processes should be an everyday guiding principle for all Vahterus staff, to ensure competitiveness, renewal and success in future ventures. Development also requires investment in technology. Our investments equated to approximately 8% of our turnover this year. This was only possible because our operations are based around a healthy financial situation. I would once again like to thank you, our partners, for your confidence, and all of our active staff for our fruitful work together. We employ more than 250 staff members around the world, including in Finland, Germany, the UK, the USA, China, Australia and South Korea. This is a good starting point for our 28th year of operations.

Dynamo 100 and 2018 2018 is fast approaching. We have been wondering how we should develop our business and what direction to take in order to be able to serve you even better than before. At Vahterus, the direction of our operations is defined by our Dynamo 100 strategy. Dynamo 100 aims to build on strong, profitable growth with the welded plate heat exchangers that we have developed, based on Plate & Shell (PSHE) technology. We were the first in the world to bring you PSHE heat exchanger technology. I believe that PSHE technology will replace traditional heat exchangers with gaskets and large-scale tube exchangers to a growing extent in many applications, particularly within the chemical and process and energy industries, as well as in industrial refrigeration. We are investing heavily in developing our expertise. Our mission is to become a pioneer of plate heat transfer. The ongoing development of sales channels and investment in digital technology, social media, and personnel expertise will play a particularly important role in achieving this goal. I am convinced that we are world-leading experts in PSHE technology, and this is a position we wish to retain. We are also looking forward to surprising you with our new ideas. We want to find new ways to make our partnership even more efficient and focused on the long-term perspective, taking advantage of selected applications. We look forward to seeing the results. Challenge us. I believe that we will succeed.

Finland 100 www.vahterus.com

Publisher Vahterus Oy Editor-in-chief Sari Kesälä Editorial team Katri Isotahdon, Mauri Kontu, Marko Rantala Orders and feedback sales@vahterus.com

In this issue, we have the pleasure of reading about the growth of the global and Finnish economies in an excellent article written by the President and CEO of Ilmarinen Mutual Pension Insurance Company, Timo Ritakallio. He previously served as managing director of our local OP bank here in Uusikaupunki for 25 years, and was Vahterus’s first credit provider. Despite the risk, he ensured the loan was approved, and we are thankful for this. His career is set to progress even further next year, when he becomes the new President and Group Executive Chairman of the OP Group, Finland’s largest bank. In addition to this, he has a keen love of sports and serves as the President of the board of the Finnish Olympic Committee. We wish him the best of luck. As he says, the world gives us a lot to be optimistic about. In particular, he is keen to emphasise that dealing with climate change will become a key trend in global development, as well as in Finland. For this reason, energy saving and recycling will play vital roles.Vahterus’s PSHE is part of this area of technology. Dear customers, let’s work on this together. This year, our home country of Finland is celebrating 100 years of independence. By working together, we’ve been able to develop our nation into one of the most affluent countries in the world. At the same time, we have also evolved from an agricultural society to a technologically advanced country. For us Finns, 100 years of independence is a source of great pride and appreciation for previous generations. It is also a resource with which we can build our future. Without the generations who came before us, 100 years of independence, and the industrious development work that has occurred would have been impossible. They should be thanked and honoured, and their example should form the inspiration and building blocks for our future. Our company values – Customer is number one, Eagerness to innovate, Will to succeed – are based on our strong local roots and our belief that Vahterus has the right ideas to benefit you for a long time to come. Together we succeed,

Mauri Kontu CEO, Vahterus Oy

CONTENTS

COVER Tommi Järvelä Well planned is half done - the phrase applies also for the design of heat exchangers. Tommi Järvelä has been working at the Vahterus Design Department for over 11 years. At first he worked as a Designer for 5 years until he was promoted to Senior Designer. Currently, Järvelä is Principal Designer of the chemical and processl industry with responsibility of the technical expertise of the business area and the smooth progress of design work. The heat exchangers in the chemical and process industry designed by Järvelä, require special accuracy as they are primarily project heat exchangers. Over the years, the heat exchangers have become more and more customized, as the customers want to have a product that suits best in their pipe layout or machines. In addition, the regulations of pressure vessels are tighter and customer requirements have increased. Well planned design eases work in both Vahterus procurement department and production and contributes to the customer’s approval process. According to Järvelä, besides a good working community, the best thing in his work is that after many years in Vahterus, he is still learning new things and facing interesting challenges.

Finland’s economy finally picking up

Quality starts with procurements

Using the Sizing software to determine

the size of Plate & Shell heat exchangers

In time

Returning a crude oil export cooler

to fully operational condition

PSHE around the world

PSHE CASE Botash

PSHE CASE ITER

PSHE CASE Cryogenic applications

PSHE CASE De Groene Agri

18 3

TEXT TIMO RITAKALLIO, CEO, ILMARINEN (STARTING AS THE CEO OF THE OP FINANCIAL GROUP IN MARCH 2018)

Finland’s economy finally picking up IN PART THANKS TO IMPROVED PRICE COMPETITION

inland’s economy is doing well as measured by several standards. The growth of the national economy has markedly improved thanks to increased domestic consumption, exports and investments. The earnings-related pension insurance company Ilmarinen forecasts a growth of approximately 3% for the current year, and this is expected to continue at a rate of about 2.5% next year. It is good to bear in mind, however, that the GDP is still significantly lower compared to 2008 – nearly ten years ago. The global economy is set to grow both this year and next, with an expected growth rate of 3.7%. According to the IMF, India with 7.4% and China with 6.5% will see the fastest growth rates. Companies are enjoying the best growth projections they have seen in years. The improving global economic outlook has spurred the Finnish export industry on to expand in nearly all market sectors. Europe, our most important market area, is on a path towards stronger growth and our exports to

the USA and China have increased. Rus- steadily growing for quite some time now. sian trade is improving again, although com- Household purchasing power has remained pared to previous years, exports to Russia relatively stable during times of low interest are weaker due to falling oil prices and the rates and inflation. Household and corpoweakened rouble. Ilmarinen expects the rate confidence over the economic prosamount of exports to increase by around pects is high, and in particular several SMEs 10% this year. Finland’s main exports are are planning investments and hiring more wood and paper products and industrial ma- employees. chinery and equipment. Exports are being In the manufacturing industry, machinery boosted in part by the competitiveness pact, manufacturers are enjoying stronger order which has slightly reduced unit wage costs books and a bright economic growth outand improved Finland’s competitiveness. look. After a long period of work intensificaLabour costs are expected to fall by up to tion measures, companies have once again 2.3% in 2017. Economic growth is also being accelerated by domestic investIn the manufacturing industry, ments, which are exmachinery manufacturers are pected to grow by 5% this year. In addition to enjoying stronger order books exports, the increased and a bright economic growth demand is explained by domestic consumpoutlook.” tion, which has been

started investing in order to expand their business and increase their capacity. Structural changes in global growth and the potential slowdown of China’s debt-fuelled growth, on the other hand, are increasing economic uncertainty. The same applies to the metal industry, where China plays a key role as the pacesetter of the growth rate. The forest industry has benefited especially from the increased demand for packaging materials brought on by the popularity of online shopping. The construction industry is still growing rapidly, although the record growth is now behind us and the prices are rising more rapidly than construction costs. The gaming industry has emerged as a new growth sector in Finland and in addition to a couple of big names, there are also numerous start-ups and developing companies in the industry. When assessing a company’s competitiveness, as an investor, Ilmarinen pays attention to factors such as the number of received orders, structure of revenue growth, development of profitability, return on capital, development of cash flow as well as investments and their yield potential. We naturally also evaluate factors that can easily affect a company’s operations, such as exchange rates, interest rates and raw material prices. When deciding whether to invest in a developing company, we assess in particular the team’s competence, technological risks, commercial potential and scalability of innovations. What matters to us in the long run is how the company strategy compares to global economic mega trends. We know, for example, that the strongest growth in production

and consumption is seen in emerging markets, and that this in turn shifts the global economic power balance. From an investor’s point of view, the key is to find the companies and sectors that can benefit from this. Digitalisation, artificial intelligence and robotisation change how we manufacture products, work and spend our free time. So the question is, how will these developments affect different business operation models, sectors and operational environments? Urbanisation is continuing strongly – what kind of infrastructure will be needed and where? Ageing populations are leading to constant shortages and strong competition of working-age skilled workers as well as increased demand for different services tailored to the elderly. Global consumption will increase thanks to the growing middle class. Which companies will emerge as winners? Perhaps the most serious and irreversible threat to humankind is climate change – will companies come up with solutions to meet the challenges of sustainable development, and can they benefit from climate change mitigation measures and the transition to a low-coal economy? These questions are on the minds of retirement investors and they will also ultimately make or break Finnish companies. Ilmarinen is a significant owner and funder in Finland: we have invested nearly 30% of our investment assets, over EUR 10 billion, into the country. The successes of Finnish companies and the work done in Finland, in turn, have a direct impact on Ilmarinen’s operations. The competitiveness and success of Finnish companies benefits everyone in Finland.

TEXT ADVERTISING AGENCY ILME

SUPPLIER MANAGEMENT REQUIRES A FINGER ON THE PULSE

Quality starts with procurement A hundred suppliers. Thousands of items ordered. High-quality products require top expertise not only from Vahterus, but also from its suppliers. As the industry develops, everyone must be involved in the development, both qualitatively and operationally. The procurement department serves as a gatekeeper for every order, product and supplier. Facing new challenges is part of the everyday work of the department, and solutions must often be found within a tight timeframe.

he Plate & Shell heat exchangers manufactured by Vahterus are tailored to the customer’s requirements. This means that a new customer order also requires new ways of solving problems from a procurement perspective. When a new order arrives, the procurement department will not necessarily know the kind of requirements the project entails, and where the solutions for these requirements can be found, which is why internal flexibility and supplier flexibility are key. It is important to ensure that operations work in a way that allow customers’ needs to be met, both in terms of time management and cost efficiency. This means that supplier management at Vahterus is a vital element of the company’s operations. - Vahterus’s personnel need to have a vast knowledge of not only their suppliers, but also what kind of requirements each supplier can fulfil, says Material & Logistics Manager Tommi Kesälä. Creating tailored solutions also increases the number of parts and materials used. Vahterus’s system already contains over 22,000 names of different products. Many of these have been used only once in one specific project. Approximately 9,000 order lines were placed in 2017, which gives some idea of how many orders are processed each day.

Keeping an eye on current and potential future suppliers In materials procurement, quality should not be compromised at any stage. In addition to quality and price, environmental values are playing an ever more important role within Vahterus’s customer base. Thanks to certification schemes, ecological requirements can also be fulfilled for customers based in different parts of the world. Vahterus collaborates with approximately 100 different suppliers each year. The core supplier base consists of approximately 20 suppliers with whom the company collaborates on a regular basis. Part of this cooperation has involved tailoring the service to the company’s needs as well as possible. We also engage in ongoing product development work with our longest-standing suppliers. Vahterus’s procurement department assesses its suppliers annually, classifying them based on factors such as quality, price and delivery reliability. These classifications form the basis for various measures and choices in the following year. Vahterus is very familiar with the strengths of several supplies, with whom they have been working regularly for many years. As part of the process of selecting a

new supplier, it is important to ensure that the supplier is suitable for Vahterus’s exact needs. The first stage involves checking how comprehensive the supplier’s certifications are, and supplier surveys are carried out to provide further information. We also use audits and trial purchases to ensure that functional and qualitative criteria are met. - We are constantly monitoring the sector. We need to always be keeping an eye on current suppliers whilst also making sure we don’t miss opportunities with potential new suppliers. We must be constantly alert to new solutions. For example, challenges can arise in terms of availability, quality or price, and new approaches need to be found quickly. This is part of an ongoing process, says Kesälä. The procurement department is staffed by five people. Some are professionals with many years of experience, whilst others are fresh out of education. - We wanted to bring in new perspectives to make sure we don’t get stuck in a rut. Younger people see things differently, allowing them to develop our operations in new ways. It’s important to be open to new ideas, Kesälä states.

< The procurement department staff: Technical Coordinator Ella Karppi, Technical Purchaser Vesa Kuusisto, Technical Purchaser Sandra Walker and Material & Logistics Manager Tommi Kesälä. Technical Purchaser Manu Hirvilammi missing from the photo.

Sizing software TO DETERMINE THE SIZE OF PLATE & SHELL HEAT EXCHANGERS When Vahterus Plate & Shell heat exchangers entered the market nearly 30 years ago, it was obvious that there was no suitable software for sizing Plate & Shell type heat exchangers. Because of this, Vahterus has invested heavily in developing its own sizing software. TEXT JYRKI SONNINEN, VAHTERUS OY

ver the years, as the products and the functions of Vahterus have improved, the sizing software has also been refined to meet the changing requirements. In order to supply its clients with the best possible heat exchanger solutions, Vahterus designs the exchangers together with the client from beginning. In addition to functional requirements, heat exchangers must fulfil statutory pressure equipment regulations, as well as the client’s own specific requirements. One of the key aspects in developing sizing software has been our own heat transfer and mechanical testing, which have been used to examine performance of heat exchangers, mechanical durability of plate packs, and the usage limits of heat exchangers in different applications. Client feedback and in particular the data measured at different applications have also been valuable when the software parameters have had to be adjusted to match reality. Together with the knowledge of the heat transfer theory and expertise in pressure equipment design, this data has laid the foundation for developing the software. The sizing software is mainly used by Vahterus own sales team and retailers. The sizing process covers thermal and construction design of the heat exchanger and price calculation.

Software structure At the moment, the Sizing software covers 14 applications, including for example liquid-liquid, liquid-gas, evaporators, condensers and cascade applications. Even though different Plate & Shell heat exchangers may look similar in different applications, each application has its own specific features and therefore separate calculation screens for each application are required. All Plate & Shell application programmes are divided into two parts: thermal- and con-

struction design. In thermal design part the thermal input values, fluids and basic construction are selected. The software calculates the required exchanger size, number of plates, flow velocities and other necessary sizing values. In the construction design part, the software checks if it is possible to manufacture a heat exchanger that meets the parameters defined in the thermal and construction design. The software can calculate construction specifications for selected Plate & Shell heat exchanger according to the requirements of the Pressure Equipment Directive (PED) or ASME standards. In the background of the software there is a large amount of pre-calculated type series that determine the dimensions of the main components and materials.

Outputs The programme’s purpose is to allow flexible and accurate calculations for Plate & Shell heat exchangers. Another important function is to automate the quotation process so that we can quickly and flexibly send our clients the quotation documentation detailing the heat exchanger that we intend to offer them. The heat exchanger specification sheet lists a heat exchanger’s technical specifications consisting of thermal design values and the basic construction data such as main materials, pressure class, flange data (if any), coating and classifications etc. The Sizing program also allows users to output a preliminary technical drawing of the heat exchanger. The latest major advancement in this area has been the development of the new 3D modelling system. The previous 3D modelling software was replaced with an automatic drawing programme built upon the Inventor software, making it possible to create more accurate AutoCAD images than before. The Sizing software can be used to order from Vahterus drawing server the ex-

changer’s technical drawings in PDF and DWG formats as well as a three-dimensional ‘Step’ model that can be integrated with client’s own 3D models. The picture above is an example of a 3D model produced by the software. The ‘Step’ model is compatible with most 3D programmes. The Sizing software can also print out a list of a heat exchanger’s components, which makes it often possible to order the exchanger’s main components before the product plans are finalised. The Sizing software can also be used to generate a commercial quotation document. The programme calculates a price for the exchanger based on the price list and generates a quotation, streamlining the sales team’s job.

Future As mentioned in the first section, sizing programmes need to be constantly developed to ensure they meet changing product and client requirements. In order for Vahterus to offer new plate types and product applications to its customers, it is crucial that they can be quickly implemented into sizing programmes. At the same time, the programme’s usability and reliability must be improved. The digital revolution brings about new opportunities, but also new challenges for software development. Our aim is to face these challenges so that we can provide even better service to our clients also in the future.

IN TIME

Sizing training

Finland 100 years celebration

Vahterus arranged Sizing training for the customers and distributors in October. During the two day meeting, participants learned the usage of Sizing program and got the latest information about Vahterus quality, testing and maintenance. If you are interested in taking part in the training in 2018, please contact Vahterus sales team. In the picture: Xuelian Yang, Tuomas Aikkinen and Edson Martins from Vahterus Oy, Juan Enrique Cardozo Battcock from J. Negre C., S.L., Jörgen Gustafson from Alnab Armatur AB, Elizabeth Corcoran and Mauri Kontu from Vahterus Oy, Emilie Fromentoux from Arkema S.A., Almudena Travesi and Manuel Garcia from Repsol S.A.

The Vahterus personnel gathered together to celebrate Finland’s 100 years of independence. Alongside with good food and music, long-term employees of Vahterus were presented with medals. In the picture: Financial Director Sinikka Kontu, Welder Pasi Jussila, Maintenance Foreman Eerik Junnila, Surface Finisher Vesa Saarinen, Welding Operator Toni Marttila, Sales Coordinator Sanna Utrila, Key Account Manager Ville Kesälä, Production Supervisor Tuula Mäki-Arvela, CEO Mauri Kontu, Machinist Leevi Virtanen, Project Manager Anna-Leena Huhta-aho, Maintenance Fitter Eerik Runola, Sales Manager Tobias Häggblom, Welder Jouni Joska, R&D Director Jyrki Sonninen, Principal Designer Tommi Järvelä and Documentation Coordinator Tapio Anttila.

New Sales Director Starting from September 2017 Marko Rantala has taken over the role of Sales Director responsible for Europe, Middle East and Africa. Jonathan Pascoe continues managing Vahterus Americas and Geoff Foster is responsible for the APAC area. Three business sectors remains the same as before. Heikki Oksanen is managing Refrigeration business sector, Tobias Häggblom Energy business sector and Marko Rantala continues managing Chemical and Process business sector until a new leader is named. Each sector has still it’s own OEM customerships which they are responsible for.

New plasma cutting machine

The Spruce of the Future

Vahterus has taken in use a new pipe cutting machine with a plasma process. The modernization of plasma cutting increases the shell productions’ volume and quality. It also reduces the amount of welding as the cutting results are clean. The plasma cutting machine is able to cut saddle surfaces required by the heat exchanger’s shell side nozzles. The plasma cutting of saddle surfaces enables for example transition to robot welding in the future. The machine can cut pipe up to 650 millimeters in diameter and as long as 7 meters. It was supplied by HGG.

A national tree planting campaign in Finland, The Spruce of the Future, commemorates the history of Finnish Independence Spruce (1917) and Home Spruces (1967) but at the same time looks to the future and our new generation, children and youth. The spruce was planted in Vahterus yard to celebrate centenary of Finland independence. 9

Returning a crude oil export cooler to fully operational condition Even the most reliable heat exchangers occasionally need to be serviced. So when a customer had trouble with a plate pack which hadnâ&#x20AC;&#x2122;t been serviced for eight years, they turned to Vahterus Service for help. TEXT VALTTERI HAAVISTO, VAHTERUS OY

he customer had been using a 9HH-324/1/1 openable heat exchanger for cooling crude oil on an oil drilling platform. They used two similar heat exchangers working in parallel and both of these were installed at the platform. They also had backup plate packs on-site to enable smooth servicing. The customer had noticed issues with one of the plate packs and discovered that metallic particles had got into the seawater side of it. They decided to send the plate pack to Vahterus Service for inspection, cleaning and refurbishment. The plate pack had been in use continuously for eight years without a stop before servicing.

Service Work

Crude oil side after cleaning.

As soon as they received the plate pack, Vahterus Service engineers got to work. Before attempting any cleaning, they inspected the unit visually with the aid of mirrors

and an endoscope. Just as the customer reported, the seawater side was contaminated with metal particles. However, it also suffered from seawater-based biological fouling. And on the oil side, they also found heavy contamination with oily material. This appeared to consist of both asphaltines and waxes from the crude oil. During the inspection, the integrity of the plate pack was also tested and no leaks were found. The next step of the inspection was a pressure drop test on the seawater side. This was performed at the Vahterus R&D laboratory to try and understand the condition of the plate pack. The tests involved varying the water flow through the heat exchanger and measuring the pressure drop with various water flows using a standard pressure drop test. In these kinds of tests, the water flow can be as high as 250 t/h. This helps show the real condition of an old plate pack and helps identify which future actions are needed.

Before servicing, the measured pressure drop on the seawater side was over three times higher than the values for a clean heat exchanger. Such a high pressure drop indicated fouling in the unit and it was obvious that the seawater side needed to be cleaned. First, the loose material was manually cleaned from the inlet port of the unit and then alkaline cleaning was performed overnight. Our engineers then performed another pressure drop test, and while the pressure drop had been reduced it was still about 2.5 times higher than the designed specifications. Therefore, they decided to do another round of chemical cleaning. This involved a combination of acid cleaning followed by higher temperature alkaline cleaning. Finally, the unit was backflushed with a large water flow to remove all the loose material between the plates. After this second round of cleaning the seawater side pressure drop was reduced to values close to that of a new plate pack. The oil side also needed to be cleaned. The first step was to select the correct cleaning method. In the lab at Vahterus R&D, our engineers ran various tests to determine how to remove the oily contamination from the plate pack. Their target was to understand the solubility of the contaminants, and then to identify the best choice of solvent and how increasing the temperature would affect the cleaning process. They found that the contaminant was soluble in hydrocarbon solvents and that temperatures over 70Â°C would reduce the wax viscosity to a level close to where it would start to drain. After these tests, the shell side of the plate pack was cleaned. First it was sprayed with solvent to soften the layer of dirt. Then the plate pack was washed with a pressurized water jet.

Heat exchanger's sea water side before the cleaning.

Results After cleaning both the oil and seawater sides, our engineers inspected the plate pack and confirmed that both the plate and shell sides were clean. The flow directors were replaced with new ones and the plate pack was packaged for shipping and sent back to customer in full working order. Depending on our customerâ&#x20AC;&#x2122;s needs, the Vahterus Customer Service team can provide unit inspections, performance tests, cleaning and refurbishment. All our work is accompanied by detailed reports and is followed up by our dedicated Service personnel.

Sea water side after the cleaning.

PSHE around the world VAHTERUS AMERICAS

Cooperation is the key

017 marks another milestone for Vahterus business in the Americas. After establishing our organization here 6 years ago, we have truly become a corner stone in the Vahterus family; thanks primarily to you, our working partners. Vahterus business across all our industrial sector groups – Process/Chemical, Energy/Oil&Gas, Refrigeration – has prospered in the Americas, and continues to do so. Significant recognition must go to the individuals and companies with whom we work; in both global corporations as well as regional organizations, where we have fostered excellent working partnerships. We look forward to serving you all for many years to come. Behind the scenes here at Vahterus Americas, we can only work as we do today, providing service and support to our markets, because of the unfailing support of key individuals within our Finnish organization. Personally, having now been within the Vahterus family for 16 years in various roles, I have

developed strong working relationships with our owners and senior management team. As we look forward, we are starting to identify future managers and key individuals in Finland and I have been fortunate in the USA to have been assigned a great support team from this ‘next generation’. They have brought energy, ideas, experiences and a different dynamic to our Americas Team for which we are very grateful. Many of our clients in this region may have already made contact with our Corporate Support Structure, but I would like here to identify them and recognize their efforts. Tuomas Aikkinen, Mikko Tuomainen and Lauri Bastman, all based in our Raisio Office in Finland, are our ‘go-to’ guys and viewed as an extension of our team. Tuomas’ is our Industrial Gas Specialist who has helped develop the North American counterparts of his European client base, as well as aid our own understanding of these processes. Perhaps the most visible to our Americas client base has been Mikko Tuomainen, who pro-

vides us daily support in our Refrigeration workings. Finally, I would like to recognize Lauri Bastman, who is a great support in my daily workings, and now becoming our LNG Leader. Sincere thanks to you all! There are a multitude of other people I can mention, and they know who they are, but as this year draws to a close, I simply wanted to make you, our collaborators and clients, aware of those who allow us to serve you as well as we can. They are very deserving and fully committed to what we are doing; and without them we would not have been able to develop this region as we have. In closing year 2017, we remain grateful for your continued commitment to Vahterus and the solutions we provide. See you in 2018 as we look forward to all the challenges and opportunities which lie ahead! Dr. Jonathan Pascoe President, Vahterus Americas

VAHTERUS APAC

Understanding customer requirements

PAC Region contain 4 key areas starting with North East Asia Region of the biggest focused countries of China, Japan and South Korea. Central Asia Region that include main countries of Malaysia, Vietnam, Singapore, Thailand and Indonesia. Pacific Region that are predominantly Australia and New Zealand and India along with Pakistan the Western Region. APAC is large area containing approximately 3.8 billion people in 31 different countries with a multiple of religions & languages spoken. This is a unique situation due to the intense culture and economic difference to reach and understand the buying behaviours of our customers’ requirements for Vahterus Oy. The projected addressable market for welded heat exchangers is expected to grow to ~500MEUR by 2020 at

the highest CAGR of all the heat exchangers technology. Vahterus established China Sales department starting 2011 with first locally assemble PSHE produced in 2012 to support the growing China economy. Today, we have a team of over 20 people dedicated for the China operations from sales department, sales support, service, finance and the Vahterus workshop located in Zhangjiagang. Vahterus South Korea office started in 2016 to provide quick local customers support for Refrigeration, Gas & Steam Packages and Marine and offshore platforms. Currently we are interviewing potential Sales candidates for Japan and Central Asia to be managed by a local regional managers by Q1 2018. Asia Pacific is complex where the strong economic countries like China, Japan, In-

dia, Australia, South Korea, Indonesia, Taiwan, Thailand, Malaysia & Singapore exporting & importing within APAC and to global countries. This allows Vahterus a unique position where the requirements within APAC in Energy Savings, High Quality, Compactness, High Pressure & High Temperatures customer applications using Finnish Engineering Technology designed and built for the Asia Pacific region as well as the global standards. Vahterus APAC Team key objectives are to focus on meeting customers “Face to Face” to truly understand their requirements and to grow the Asia Pacific at double the market rate for welded heat exchanger technology. Geoff Foster VP, Vahterus Heat Exchangers Shanghai

VAHTERUS EMEA

Focus on the best welded plate heat exchanger solutions

ahterus starting its operations in the “heart” of Europe, Kalanti Finland 26 years ago, it was going international in very beginning. First exchangers exported outside Finland during the first year of operation. Taking the new role as Vahterus sales director September this year, I am very grateful of the work that has been done earlier in creating the network of distributors and establishing subsidiaries in UK and Germany. Also many customer relationships have lasted for years, and big part of our business today is coming through these long relationships. To be a successful distributor of Vahterus Plate & Shell heat exchangers has certain recipe: Ambition of engineering and heat transfer, and long term commitment of building up the market for Plate & Shell exchangers. To be able to design and sell Plate & Shell heat exchangers is needed good experience of different engineering areas: Heat transfer, materials, customer’s applications, manufacturing methods and many more. The case stories like from companies Wijbenga B.V. or Zonke Engineering

in this magazine demonstrate these skills and result of their dedicated work is the best welded plate heat exchanger solutions working at customers. Thank you very much of sharing these experiences. Besides this magazine, the word of mouth is spreading the good experiences of Plate & Shell heat exchanger inside many customer companies and between the companies. Being part of the HTRI, Heat Transfer Research Institute community and some other industrial associations is possible to hear talks about the Plate & Shell heat exchangers with increasing excitement. In many European countries, there are signs of better economic development 2018. The unemployment rate is decreasing and GDP growth is to be expected strong the next couple of years ahead according to the European Commission Economic Forecast Fall 2017. The interest rates are still low, which further helps the growth and investments. Political uncertainties, like the election in Germany and difficulties of forming coalition and possibility for new elections, is though making forecasting 2018 business somewhat difficult.

Many Middle East countries are pushing for investments to refine hydrocarbons further to become less dependent on fluctuating oil prices. These investments will provide opportunities for Plate & Shell heat exchangers. Vahterus having local partner Tesco Engineering in Saudi Arabia, with engineering capabilities and service workshop, is important to be able to support customers locally. In Africa Vahterus has been mainly active in Sub-Sahara region, trough distributor Zonke Engineering in South Africa. Zonke Engineering has invested in capabilities to provide local after sales services also for Plate & Shell heat exchanger users. According to World Bank’s estimation, the economic growth in Sub-Saharan Africa is expected to grow from 2.6 percent in 2017 to 3.2 percent in 2018. 2018 will be a year of important exhibitions in Europe – Vahterus will be exhibiting in Chillventa and Achema and SMM in Hamburg. We look forward to see you there. Marko Rantala Sales Director, Vahterus Oy

PSHE CASE

Botash

TEXT LEE PILLAY, ZONKE ENGINEERING

Improving yields, efficiency and safety with new heat exchangers

otash is the largest producer of natural sodium products in Southern Africa, yet they’re always looking for ways to improve their operations. They chose Vahterus Plate & Shell Heat Exchangers and instantly saw an increase in their production yields. Botash (Botswana Ash (Pty) Ltd.) is located in Sua Pan in the north eastern part of Botswana, about 180 kilometres from Francistown. Since starting their operations in 1991, they’ve grown to become the largest

producer of natural sodium products in the Southern African region and they currently have a production capacity of 300 000 tonnes of soda ash (sodium carbonate) and 420 000 tonnes of salt (sodium chloride) per year. Botash now has offices in South Africa and Zambia, and the company’s vision is to be Africa’s supplier of choice for natural sodium products.

Intercooling is essential At Botash, efficient intercooling and heat transfer is a crucial part of their sodium bicarbonate production process, determining both its efficiency and the product yield. The first step of soda ash production is carbonation, in which carbon dioxide reacts with a sodium carbonate-rich brine to form bicarbonate crystals. The next step is crystallization. This involves bicarbonate super saturation followed by the crystallization and takes place in crystallizers arranged in series. It is here that intercooling is used to promote the precipitation of bicarbonate crystals. If the intercooling is not efficient, the bicarbonate rich stream is lost in the thickener overflow and this has a direct impact on the throughput of the plant.

Aim to improve

Vahterus units in the crystallisation circuit, 2 x Type PSHE 9HA-496/1/1.

While Botash had successfully expanded their production over the years, they knew that more efficient cooling would improve their yields. In addition, some of their existing plate and frame exchangers were leaking with crystals forming between the gasket and plate within the gasket groove on the hot side. In fact, the gaskets were incompatible with the high temperature of the washing water. And they were also trou-

bled by fluctuating brine pressures on the cold side. These problems led to additional maintenance costs because they needed to replace the gaskets regularly, and the leaks also led to corrosion of their equipment and structures. In addition, the leaks meant a loss of hot washing water, which increased their steam use, as well as a loss of product from the leaking heat exchangers. As a result of all these issues, Botash decided to install more reliable and higher quality heat exchangers. After thorough research, and trials with different heat transfer technologies, Botash selected Vahterus Plate & Shell heat exchangers (PSHEs) as their preferred heat exchanger technology.

Results Botash started up their first Vahterus units in the crystallisation circuit in 2016, and since then their operations have been highly efficient and trouble free. They instantly saw an improvement in their production yields. And, because they were able to deliver more product faster, they experienced a phenomenal payback time for their new Vahterus PSHEs. The interval between hot water back-flushing was also improved compared to the old plate and frame exchangers. In addition, plant safety was improved thanks to Vahterus’ leak-proof heat exchangers, and the moral of their maintenance and operational staff improved too – added benefits of immeasurable value. Thanks to their positive experience, Botash have since decided to replace additional units with Vahterus PSHEs. The latest units, two 9LA- 176/1/1 units and two 9HA –650/11 units are scheduled to start up in the end of 2017.

PSHE CASE

ITER

TEXT TUOMAS AIKKINEN, VAHTERUS OY PHOTO EUROFUSION

PSHE part of the fusion nuclear power plant

TER is an international project with the aim to build up the world’s first full size fusion nuclear power plant. To this aim, a power plant is under construction in the South of France, in the city of Cadarache, at an estimated cost of around 15 billion euros. The objective of the plant is to produce more energy than is consumed, while the process is running. A Tokamak fusion reactor is used, inside which magnetic field reaction plasma will be heated up to 30 million °C. ITER Tokamak is supported by the largest cryogenic plant ever built. Cryogenic helium is required in the plant in large quantities. In addition, a liquid helium plant is already under construction and compressor stations are to be delivered to the site. Within the design phase, Vahterus PSHE was chosen as a component part of the system to reclaim heat from the compressor oil used in compressor stations. The energy recovered will then be utilized in other parts of the plant. When the aim of the project is to produce more energy than consumed, maximum heat recovery from all heat resources at the ITER plant is critical. Using Vahterus PSHE the heat from compressor oil is transferred into a water stream. To achieve a high rate of heat recovery the exchanger was designed with a low temperature approach between the hot oil and cold water (LMTD 4.4°C). Achieving such a tight approach in temperatures was made possible by using PSHE technology. Vahterus scope of supply included 12 large exchangers (PSHE Size 9HA-650) which were designed with a multi-pass construction (5/5) in order to reach the desired temperatures and recover the maximum amount of heat. One more design requirement was that the heat exchanger solution must be com-

pact. Vahterus PSHE-technology is a thermally efficient and compact solution, which fitted well to the tight installation space within the compressor package. Since this entire plant is unique, it was important was important consideration that all collaborators and technologies used must be trustworthy and reliable. Vahterus was able to satisfy all requirements of their cooperation partners for the project. When helium is used at the plant, the integrity requirements for heat exchanger are very demanding. It was crucial for the client to choose a technology where extreme integrity requirements are specifically fulfilled. To support this requirement, Vahterus developed a helium leak test with exception-

ally low leak rate requirement for the ITER compressor oil coolers. Firstly, plate side of the unit was pulled under vacuum to a level of 10-2 mbar. After reaching an acceptable level of vacuum, the shell side was then pressurized with helium to 29.7 bar overpressure. The maximum allowable leakage rate was 10-8 mbar L/s. All 12 Vahterus PSHE’s successfully fulfilled the requirements of the test. Vahterus greatly appreciated the opportunity to be able to participate in this unique and groundbreaking ITER project. We are proud collaborators with all partners in this work and delivering PSHE Oil Coolers of the highest quality was our key objective.

Vahterus developed a helium leak test with exceptionally low leak rate requirement for the ITER compressor oil coolers.

PSHE CASE

Cryogenic applications

TEXT MARKO RANTALA, VAHTERUS OY

Plate & Shell heat exchangers in cryogenic applications

efinition of Cryogenic temperatures is varying, but mostly defined by temperatures below -150°C. Cryogenics is the area of science and technology producing low-temperature environment for applications. The origin of the word Cryogenics is in Greek language where “kryos” means frost or cold, and “gen” is common root for the English verb to generate. It needed the development of stainless steel materials early in the 1900’s to be able to handle the extreme temperatures in industrial applications. Carbon steel materials are very brittle in low temperatures and therefore have limitations in their application. Alloying the carbon steel with chromium and nickel has made stainless corrosion resistant, but also improved the mechanical properties at low temperatures. Fully welded Vahterus Plate & Shell heat exchangers can be made in full stainless steel materials and the geometry of this type of exchanger makes it an excellent choice for cryogenic temperatures. Vahterus exchangers have been by simulated using the latest FEM analysis techniques, and tested both in the laboratory and field conditions.

Thermal cycling test with Liquid N2 / Hot air.

PSHE suitable for cryogenic • Ability to withstand large temperature differences and fast temperature changes. Plates inside the shell can thermally expand to their directions of diameter. • Compare to S&T type exchangers, typically Plate & Shell exchangers are shorter – this makes the effect of thermal expansion on the length of the exchanger less critical (25% of the length of S&T). • Fully welded, all stainless steel construction possible, PTFE flow directors suitable down to -200°C. Welding procedures and stainless steel material testing to -196°C as standard. • As compact heat exchanger, with the need for full stainless steel construction, plate and shell exchanger provides significant cost saving Industrial cryogenic applications where Plate&Shell are used • LNG Vaporizer at LNG terminals, Engine fuel systems and LNG fuelling stations. • Boil of gas heater gas carriers and terminals • Ethane vaporizers at FSRU’s and gas carriers • Cryogenic reactor cooling solutions for pharmaceutical industry

FEM Analysis of Plate pack thermal cyclic test.

TEXT LAURI BASTMAN, VAHTERUS OY PHOTOS WESSELS, TGE MARINE GAS ENGINEERING GMBH

The container ship Wes Amelie, converted for LNG fuel use.

Vahterus heat exchanger as part of LNG vaporizing/heating skid.

Benefits of PSHE technology in LNG applications The use of natural gas around the world is growing and in energy production, the traditional oil and coal are expected to be eclipsed by natural gas use in the coming years. With the introduction of the European Sulphur directive and other regulations over the world, LNG has recently gained an increased relevance as a fuel source for ships due to its relative environmental friendliness. With energy density somewhat comparable to oil, essentially nonexistent particle- and sulfur emissions, and very low NOx emissions, liquefied natural gas is seen by many as a competitive modern fuel. Many cruise liners and passenger ferries have already been converted and many new ships are built with LNG compatibility in mind. One example is the conversion of the container ship Wes Amelie to use LNG as a fuel source, where Vahterus in conjunction with TGE Marine Gas Engineering Gmbh provided the necessary skid and fuel system. The transportation of natural gas has therefore become an increasingly important issue. While natural gas can be pumped through pipelines, these pipes can reach only specific locations and require everything from environmental planning to land use permissions and licenses throughout the entire pipeline. A common alternative is liquefaction. LNG, which is over 400 times denser than the gaseous form, allows it to be stored and transported much like other liquid products. This can be both in bulk in large carrier vessels between terminals, and in smaller quantities by trucks from

terminals to small-scale end users such as factories or refueling stations. However, before LNG can be used it must be regasified and heated back to ambient temperatures. Unlike bulky Shell & Tube units or ambient air LNG vaporizer towers, Vahterus Plate & Shell technology allows for the vaporization and superheating of LNG from its storage temperature directly to ambient and above in a single, small unit. The compact size of the Vahterus Plate & Shell is a major advantage for any vessel conversion, as it leaves more space in the engine room for other necessities, such as instrumentation and piping. As the materials required for cryogenic operations tend to be stainless steel, in comparison to Shell & Tube heat exchangers the small size of Vahterus products usually translates to a cost advantage as well. The same applies for heating or cooling boil-off gas, a problem any cryogenic liquid storage tank, no matter how well insulated, has to account for due to relatively warmer ambient conditions. Vahterus has extensive experience in both cargo condensing and with heaters to make use of naturally evaporated gases. Vahterus PSHE units are at this point well-proven technology on board marine and floating systems, and with cryogenics. Due to the nature of the round plate being highly resistant to thermal stresses and able to handle large temperature differences between the plates, cold recovery for HVAC or freezer systems becomes possible

to use glycol and similar fluids as a secondary circuit. The Plate & Shell heat exchanger is well suited to these applications and can greatly increase the overall efficiency of a smallscale LNG system. Another alternative is to use an indirect system, where an intermediate thermosiphon loop is created. Driven by gravity and thus requiring no pumps, this loop contains some media that is evaporated and condensed in a continuous cycle. With such an indirect system, it is possible to use a wide range of heat sources for LNG vaporization: seawater, engine coolant water and many other possible alternatives exist. A custom manufactured indirect system is designed to fit a customersâ&#x20AC;&#x2122; needs, and is usually no larger than a meter wide and two or three meters tall. The overall duty of these systems is no more limited than any Vahterus heat exchanger. Range of delivered units is wide, beginning with small evaporators onboard tugboats, where LNG use can be only 100 kg/h or even less. Others are helping to fuel large ferries or power systems, providing vaporization of thousands of kilograms per hour of LNG. On the high end of the scale, Vahterus can manufacture even larger units, which are in service in LNG terminals where major regasification operations of over ten thousand kilograms per hour can take place, which have boil-off gas handling corresponding to their largescale storage.

PSHE CASE

De Groene Agri

TEXT JEROEN SCHRÖER, WIJBENGA B.V.

A green choice for De Groene Agri

his typically Dutch story dates back to 1937, when the Dutch government decided to build a dike between the cities of Lemmer and Urk to claim extra land for agriculture. In 1940, the dike was closed, and the land subsequently pumped dry. This new land, called Noordoostpolder, officially became dry on September 9, 1942. The soil in this part of the land, actually the old sea bed of sludge and shells, was very fertile and full of calcium and minerals. Such soil is perfect for the cultivation of potatoes, carrots, onions and corn; and a lot of farmers started new businesses in the Noordoostpolder. All these new agricultural activities required cold stores to preserve the products for a long time. De Groene Agri, situated just outside the village of Rutten, is specialised in refrigerated storage of agricultural products like potatoes, onions, chicory pens and carrots. They offer a wide range of cooling

conditions and temperatures, even the ability for freezing products, and are perfectly placed to support the needs of the area. The total storage capacity covers 85,000 m3 with space for 7,000 pallets. In addition to the storage of products, De Groene Agri has the capability of washing, sorting and packaging products, added to the fact they are certified for the storage of biologically grown products. In the winter of 2017, De Groene Agri started planning the necessary expansion of the cooling capacity. Due to the fact that the stored and chilled products represent a high economic value, the reliability of the system was a key factor in the design of the new cold stores. The demands were that the new cold store must be: • Reliable • Sustainable with natural refrigerants • Provide perfect conditions for the products • Be food and environmentally safe

• Have low energy consumption • A compact design The Dutch company, Dijksma Koudetechniek, initially a small company founded in the seventies, working in cooling and refrigeration, has now grown into an all-round high quality refrigeration contractor, under the supervision of their current director Henk Dijksma. The knowledge and experience passed from father to son, has allowed them to expand into a modern and progressive business. With their professional team, all national and international customers are served from their office in Emmeloord . Dijksma Koudetechniek has many years of experience in the refrigeration and freezing of products in agricultural and fruit farming. Due to the many types of products that can be stored at De Groene Agri, there was a lot of consultation between Dijksma Koudetechniek and De Groene Agri. One year ago, the first discussions began in making the right choices for the refrigeration

system, mainly concerning the storage of chicory pens. The stored pens are the "raw materials" for the actual chicory, which is eventually consumed. Firstly, the type of cooling installation was to be decided, and this is essentially determined by the product. A chicory pen is a product that must remain hydrated, produces a lot of heat and is stored in a thin layer of ice. Because this product is kept year-round, power consumption is also an important part of the system choice. After considering all demands and specifications, the choice was made for an ammonia / CO2 pumped system. Together with Wijbenga B.V. and Cool Green Solutions, both long term partners and suppliers of the contractor Dijksma Koudetechniek, the specifications for the new cold store were transformed into a state of the art industrial cascade system using CO2 and ammonia. Both are natural refrigerants which fitted perfectly into the desired sustainable and energy efficient design concept. Defrost of the evaporators will be done with CO2 hot gas from a generator and the CO2 generator is working with a glycol system connected to the heat recovery system. Typically these kind of industrial cascade installations are characterized as large constructions composed of cascade condensers, separators and liquid vessels with pumps. However, the customer's wish was to build a system as compact as possible, and preferably in containers. Dijksma B.V. created a concept out of two stacked 40 ft. high cube containers.

The first container contains the CO2 liquid vessel, CO2 pumps and a CO2 hot gas generator. The second container was placed on top of the first one and accommodates the compressors and cascade condensers. An aircooled V-shape condenser is placed on top of the two containers. It soon became clear that the Vahterus combined, a heat exchanger/evaporator with integrated separator, was perfect for this job. This eliminated the need for additional ammonia pumps, provided no risk of ammonia leakage due to gaskets, is compact, easy to insulate and offers a long and maintenance free lifetime. In the ammonia / CO2 cascade system, the cascade condenser is a crucial component that separates the ammonia and the CO2 refrigeration cycles. Even if the risk of a leakage is very small, some have experienced that the consequences of a leakage can be very severe. A shutdown of the plant, even if it is only for a short time, must be avoided at all times. The Vahterus separator system inside the Combined, has the unique ability to detect the salts formed during an ammonia - CO2 leakage and works as a big filter that protects the compressors. After detection, further contamination of the ammonia system can be avoided by closing

3D unit layout.

the valves and isolating the affected component. In the De Groene Agri installation, the total cascade condenser capacity of 1 MW is divided between two 500 kW Vahterus Combined PSHE cascade condensers, running at 4K temperature difference. An open flash economiser provides ammonia to the combined cascades and improves the overall performance of the plant. In the unlikely case that one of the cascades is shut down, the other cascade condenser will still be available. The capacity can be temporarily increased by increasing the temperature difference over the cascade condenser. Additional capacity within the internal Vahterus separator system is enough to run the full compressor capacity with one cascade condenser, and can still keep all rooms at the desired temperatures. Wijbenga engineered and supplied the Vahterus combined cascade condensers, economiser, CO2 vessel and CO2 pumps. The containers were assembled in the factory of Cool Green Solutions. Based on the close and effective cooperation of the customer, contractor and manufacturer, it was possible to fulfil the ambitious wishes of the customer. One final point of note was that De Groene Agri also installed 2.7 acres of solar panels. In doing so, the company also contributes to the preservation of our planet and hopes this serve as an example to others in their business sector. This plant is ready for the future!

Unit ready and installed at end customers site. 19

Your evaluations about us Vahterus conducted a Global Customer Satisfaction Survey in October 2017. The aim of the survey was to chart the customer satisfaction of the company and its development, to survey customers’ conceptions of Vahterus and to acquire information on how the customer oriented approach of the company can be improved. The survey was administered by Innolink Research Oy. Vahterus’ Net Promoter Score

The 3 most succesful factors in the actions of Vahterus (scale: 1 = succeeded very poorly … 6 = succeeded very well)

76 5,4

5,4

I trust in Vahterus.

Product quality is high.

The personnel are professionally skilled and customer-oriented.

How customers see Vahterus:

Thank you! It’s good to continue from here. Together we succeed.

Events 2018 Welcome to meet us at: Refrigeration training days

Achema

Offshore Korea

25.-26.1.2018 Espoo, Finland

11.-15.6.2018 Frankfurt, Germany

10.-12.10.2018 Busan, South Korea

IIAR Natural Refrigeration Conference & Expo

eurammon Symposium

Chillventa

18.-21.3.2018 Colorado Springs, USA

28.-29.6.2018 Schaffhausen, Germany

16.-18.10.2018 Nürnberg, Germany

Vaasa Gas Exchange

SMM

Energia

22.3.2018 Vaasa, Finland

4.-7.9.2018 Hamburg, Germany

23.-25.10.2018 Tampere, Finland

Korea Chem

Gastech

17.-20.4.2018 Seoul, South Korea

17.-20.9.2018 Barcelona, Spain