Business Briefing - September

Business Briefing

September

DavyMarkham expands engineering apprenticeship scheme


Sheffield, UK - One year on from re-establishing its in-house apprenticeship scheme - after a 20-year gap - DavyMarkham is forecasting that 20% of its shopfloor workers will be apprentices by 2010. Last Autumn, a first cohort of seven apprentices started a three-year to four-year programme, which will lead to NVQ Level 3 and BTEC diploma qualifications, and the company is now looking to recruit further trainees for the next intake.

According to the company, the scheme has a strong local content, being managed by MetSkill of Sheffield and involving external training delivered by Rotherham College of Arts & Technology and the Strategic Training Partnership (STP) of Rotherham.

“If the first intake is any guide, these apprentices will bring more usable skills to the company than many degree-trained graduates, who still have to grasp the practical aspects of manufacturing," said Kevin Parkin, MD of the Sheffield-based heavy engineering company. "What’s more, if they choose, our apprentices can study to degree level at a later stage, as five of our current employees have already done, but without a huge debt around their necks.”

The scheme has support from Unite the Union, Amicus Sector, whose regional officer Doug Patterson said: “We’re delighted that Kevin and his team have returned to traditional apprenticeships. They equip young people with good transferable skills and are the best way to prepare them for the world of work. For our part, we’re encouraging these apprentices to complete the programme and hopefully join Unite in support of their colleagues.”

DavyMarkham’s works manager, Chris Bowler, who began his own apprenticeship at the same site 27 years ago, has liaised with MetSkill, the strategic skills body for the metals industry, regarding the training of the company’s next generation of machinists, fabricators and fitters. MetSkill’s apprenticeship manager, Simon Prince, assessed the company’s training requirements and put together a bespoke apprenticeship programme, which includes a period of off-site training at Rotherham College and an NVQ Level 2 course in performing engineering operations at STP’s training centre.

“Our first batch of apprentices has returned from intensive off-site training and are now being mentored by our skilled craftsmen, who are passing on their skills and continuing a tradition in Sheffield that dates back to the 15th century,” said Bowler. “We have worked very well with MetSkill and have been highly impressed with their performance and enthusiasm.”

Re-enter the dragon

Chinese appliances giant Haier is to re-enter the UK air conditioning market with a direct presence in February 2009. The move marks a return following the problems with the company's initial joint venture into the UK, which closed in 2006 leaving contractors, distributors and end users without support. "With service and product reliability issues now resolved, Haier is committed to re-launching its brand into the UK and reversing any damage to its reputation within the industry," said a company spokesman. The new Haier UK and Ireland team is being headed by sales director Christian Weavers, who has 23 years' experience in the air conditioning industry, including 12 years as a service /commissioning engineer before moving to a contracting sales role with Denco. He later held manufacturing sales management positions with both Toshiba and a Hitachi distributorship. “We’re sending a clear challenge to the competition, and we fully intend to upset the status quo,” said Weavers. “However, we’re under no illusions as to the scale of the task ahead. We’re aware that product reliability and the closure in 2006 of Haier’s initial UK joint venture left many of our customers with an unacceptable lack of support."

US group swoops or CompAir

Redditch, UK - Compressor manufacturer CompAir Group is being acquired by US firm Gardner Denver Inc., a global supplier of compressor and vacuum products and fluid transfer systems. Illinois-based Garner Denver, which has operations in over 30 countries, sales of almost £1 billion and 6,200 staff worldwide. Jeremy Sykes, MD of Redditch-based CompAir UK, said: "Being part of Gardner Denver gives us the capability to accelerate our future growth plans and to broaden our product offering to customers."

DCS market strong

The global market for DCS (distributed control systems) remained strong in 2007 despite global economic uncertainty, increasing by almost by 13% between 2006 and 2007, with total revenues of $15 billion, according a report from market analysts ARC, which forecasts that the compound annual growth rate for this market through 2012 will be remain stable, at just under 10%. The report states that the process automation market remains poised for long-term growth on several fronts, and that this growth will be sustainable for the next several years. The increasing demand for expanded project and engineering services, as well as the need to modernise the aging installed base of DCS systems, estimated at over $65 billion worldwide, will drive this market growth forward. In addition to control system modernisation services, the ongoing and increasing need for expanded automation project execution capabilities by end users and EPCs is also forecast to drive market growth over the next few years.

Hire higher

The current economic climate does not seem to have affected the market for instrument hire; Ashtead Technology Rentals, reporting a boom in the hire of instruments for environmental monitoring, for health and safety checking, for testing materials in construction and manufacture, and for remote visual inspection in a wide variety of industries. According to Ashtead general manager James Carlyle, testing, monitoring and inspection work is vital for a number of reasons including regulatory compliance, quality control, health and safety, and environmental protection. "So, even in difficult times, this work still has to take place and undertaken using appropriate technology. It follows therefore, that there should be a move to instrument rental rather than purchase as renting lowers financial risk and frees valuable capital."

Baldor acquires Maska

Baldor Electric Co. has acquired Poulies Maska Inc., a Ste-Claire, Quebec-based manufacturer of sheaves, bushings, couplings and related mechanical power transmission components. With 2007 sales of around $33 million, Maska has 180 employees, primarily located in Canada, and a new facility in China. According to John McFarland, chairman and CEO of Baldor, Maska¹s sheaves and bushings complement the company's Dodge line with each having success in different parts of the market.

Autodesk to gain technology from German group

Autodesk has signed a definitive agreement with Mensch und Maschine Deutschland GmbH, a member of the Mensch und Maschine group, to acquire substantially all of the assets – including the ECSCAD product line -- of Elektro-CAE-Software GmbH (ECS), a supplier of electrical CAD software. The agreement is intended to expand the reach of Autodesk electrical CAD solutions to industry segments in the European marketplace that rely on database-driven methods for their designs. The acquisition complements AutoCAD Electrical software, which is used to create accurate schematic-based design.

Spirit with Wireless Logic

Spirit Data Capture Limited, an independent mobile computing consultancy, has gained a new business partner – Wireless Logic. Based in Marlow, Buckinghamshire, Wireless Logic specialises in M2M, SIM-based data communications over GPRS, 3G and HSDPA networks. The company provides a fully managed airtime and connectivity service for transmitting data from device to device. Jon-Paul Clarke, Wireless Logic’s business development manger, said: “We had been looking for a partnership with a market-leading distributor in the rugged PDA sector, and Spirit proved ideal. By developing a close working relationship with them, we will be able to gain experience in this rapidly expanding market sector for cellular communications. This in turn will help us to become the market leader in the provision of M2M airtime.”

PCT acquired by Racine Fed

After nearly ten years as master European distributor for US-based Racine Federated Inc., Premier Control Technologies has announced the company’s acquisition by RFI. This investment is intended to enable PCT to build upon recent growth and provide RFI with a foundation for European sales, service and support for its flow measurement products.

BP deal targets cellulosic ethanol

London -BP and Verenium Corp. have started a joint effort to commercialise cellulosic ethanol by combining their technology and operational capabilities to develop a range of low-cost production facilities in the US, and potentially worldwide. Under the initial phase of the strategic alliance, Verenium is to receive $90 million from BP over the next 18 months for rights to current and future technology held within the partnership to advance cellulosic ethanol - a renewable fuel source produced from biomass-derived products such as sugarcane waste, switchgrass, rice straw and wood chips. Read full article

Foster Wheeler forges ahead

Foster Wheeler Ltd. has reported record net income for the second quarter of 2008 of $160.8 million, compared with $71.9 million, in Q207. Net income in the second quarter of 2008 included a net asbestos-related gain of $18.3 million. Excluding this item, net income in the Q208 was a record $142.5 million. Q2 08 consolidated earnings (EBITDA) was a record $220.4 million, compared with $118.6 million in the prior year period. Excluding the net asbestos-related gain cited above, consolidated EBITDA in Q208 was $202.2 million. Chairman and CEO, Raymond Milchovich, said: "The company's Global Power Group has continued to generate EBITDA well above the levels of a year ago, due to robust market activity as well as the systemic improvements in commercial and operational practices that this group has achieved over the past two years. Our Engineering and Construction Group posted exceptional results without reliance on project incentives or bonuses, which were immaterial during the quarter."

HBM acquires nCode

Darmstadt,Germany-based test and measurement company HBM, part of Spectris plc, has acquired nCode International, a supplier of durability, test and analysis software and mobile data acquisition instruments. The Detroit, Michigan-based company brings new and complementary technologies, expertise and products into the company, adding rugged mobile data acquisition, analysis software, data management systems and predictive CAE fatigue tools, stated HBM. Andreas Huellhorst, HBM’s MD, said: “There is a complementary fit between nCode’s product offering and HBM’s, enabling the supply of the full testing cycle from virtual test to physical test. This acquisition will not only increase HBM’s range of available solutions but will also strengthen our presence in North America and Asia.”

ERIKS UK acquires Seals Packing and Gaskets

ERIKS group nv has acquired the entire share capital of Barnsley-based SPG, which is involved in the marketing, sale and customising of products and services in the areas of gaskets, rubber and moulded parts. With 52 employees and annual sales of £07.0 million, SPG is particularly strong in the OEM heating and boiler market but also has significant business in the OEM pump sector and across various MRO markets such as power, automotive and food.
Sales by product group can be broken down as follows: Gaskets 41%; Moulded parts 38%; Rubber cut parts and sheet 15%; Miscellaneous products and services 6%. The acquisition adds a new element to ERIKS' current core activities of power transmission, sealing technology, hoses and electro mechanical repairs. Additionally, with the acquisition of Econosto in May 2008 ERIKS also now has a significant valve activity in the UK, the Dutch group stated.

Cefic forecasts slowdown

Carry on Chemtura

Chemtura Corp. has terminated discussions on a potential sale, merger or other business combination after determining that such discussions are unlikely at this time to result in an offer at a sufficiently attractive price. After thoroughly exploring the various options for the entire company, it concluded that shareholders' interests would be best served by continuing to operate as a stand-alone company. The company will, however, continue to explore other strategic options, including select business divestitures, acquisitions, joint ventures and changes in the company's capital structure such as a stock repurchase programme. With 2007 sales of $3.7bn, Chemtura is a global manufacturer of specialty chemicals, crop protection and pool, spa and homecare products.

Solutia mulls nylon business sale

Solutia Inc. has retained HSBC Securities (USA) Inc. to explore strategic alternatives with respect to its nylon business, including a possible sale. "We have transformed our nylon business from a North American-focused fibre business into the world's second-largest producer of nylon 66 plastics," said Jeffry Quinn, chairman, president and CEO. "However, given the strength of our high-margin specialty chemical and performance materials businesses and the current industry dynamic in the nylon segment, it is an appropriate time to explore strategic alternatives." In 2007, the nylon business generated net sales of $1,892 million, around 51% of Solutia's total revenue, and adjusted EBITDAR of $106 million, or 28% of Solutia's total pro forma adjusted EBITDAR.

Goverment and industry must pull together, warns IChemE

The IChemE has called on the UK Government and industry to pull together, following the publication of the Government’s Renewable Energy Strategy. Andrew Furlong, director of policy at the IChemE said:: “Global warming is a clear and present danger ... Renewables are a key part of the solution but it’s not a case of wind power versus nuclear, or wave power versus coal. We will need every tool in the box to combat climate change and all of these solutions have one thing in common – skills.” Furlong also wants more government and industry support for science education: “Ultimately politicians won’t stop global warming – but well trained scientists and engineers just might.”

Autodesk completes Moldflow deal

Autodesk Inc. has completed its acquisition of Moldflow Corp. a provider of software that allow designers to predict and optimise how plastic components will perform during each phase of the design and manufacture process. “Autodesk sees plastics and composites as some of the fastest-growing engineering materials,” said Carl Bass, Autodesk president and CEO. Autodesk acquired Moldflow for approximately $297 million, less the amount in Moldflow's cash balance and proceeds from options exercises.

Invensys to train 500 engineers in Egypt

A joint venture between Invensys Process Systems (IPS), ENPPI and GASCO that will train hundreds of Egyptian engineers and establish Egypt's first Industrial Automation Engineering Centre of Excellence. The agreement will develop local technical competence by training Egyptian engineers as part of a knowledge transfer programme. The sharing of IPS' expertise both with existing engineers and Egypt's new engineering graduates is fundamental to the JV, which will help generate a deeper understanding of automation in the oil and gas sector and enable improved productivity within existing Egyptian refineries and production plants. IPS have been active in the Egyptian market for more than ten years and has managed projects such as the MIDOR refinery in Alexandria, UGDC plants and SCADA for pipelines.