PE Business Briefing July

Strong demand for contractors as engineering orders grow

Demand for engineering contractors, particularly white collar designers and project managers, is strengthening as the latest Government figures show new engineering orders are up 4.1% in the three months to April 2008 compared to the same period last year, according to contractor services provider giant group plc. The group cites figures just published by National Statistics showing that the value of new engineering orders were £7.6 billion in the three months to April 2008, compared to £7.3 billion in the same period last year. The value of export orders was 17.7% higher, rising from £2.8 billion to £3.3 billion. Read more

Plimsoll forecasts consolidation

Up to 3630 jobs could be lost as the UK Process Plant Engineering industry consolidates over the next 12 months, according to the 3rd edition 2008 Plimsoll Analysis.  Plimsoll's analysis of the 217 UK process plant engineering firms found that as many as three quarters of the firms analysed will need to reduced their head count with one of the largest firms could see up to 877 jobs lost alone. Based on an estimate that companies need to earn at least £133,000 sales per employee in order to stay competitive, it rated 40 companies, rated as danger and needing to take drastic action;69 companies needing to only “tweak” their business; 08 companies are currently leading the market with sales per employee figures of well over ££183,000 and generating over £10,000 worth of profit per employee.

Endress+Hauser teams up with Routeco

Endress+Hauser has entered an alliance partnership with Routeco plc, which distributes industrial control and automation products. Through this new alliance, Routeco will sell Endress+Hauser’s E-direct product range, which includes level, pressure, flow, temperature, recorders and system components and represents Endress+Hauser’s simplest devices that can be easily replaced in your process.

Profibus claims breakthrough

PROFIBUS & PROFINET International (PI) has issued figures showing that in April 2008, the number of installed PROFIBUS nodes in manufacturing and process plants broke the 25 million barrier, marking a 25% increase year-on-year. "With more than 25 million installed devices - probably more than all other rival systems com-bined - PROFIBUS now dominates all sectors of industrial automation", claimed Jörg Freitag (PI Chairman). "The total value of the PROFIBUS market is estimated at 50 billion US dollars with every indication that this is still a growing market. We fully expect PROFIBUS to exceed 30 million nodes by the beginning of 2009".

Technip acquires Erodim

Technip has acquired Eurodim, an engineering and consulting company with solid technological expertise, notably in the offshore oil and fluid transfer sectors.  Based in Rueil Malmaison, France, Eurodim benefits from strong industry experience with a team specializing in the design and execution of mobile systems and equipment (rotary joints for liquefied natural gas transfer, mechanisms and connectors for marine structures and offloading buoys, among other applications.

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.

Solution 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.

SHAPA: Changes to Czech mission

Following feedback from several companies that the BulkEurope conference 11-12 Sept in Prague, is not relevant or is too technical to justify attendance it has been agreed that there will be a change to allow companies to book just for the mission only, without committing to BulkEurope, SHAPA has announced. Participants, it said, will still have the benefit of attending the Reception at the ambassador's residence when there will be selected delegates from the BulkEurope conference in attendance. Trevor Owen will be attending SHAPA's general meeting next week to give more details and answer any questions. The UK Trade & Investment is providing sponsorship for the event to get UK suppliers in front of end users and provide them with mentoring from experienced players to help them secure orders.

Picme forum targets North West

Picme is inviting companies in the North West to take advantage of its expertise at the North West Plant Improvement Forum. The event, which takes place at The Heath, Runcorn, on Tuesday 15 July is supported by Chemicals Northwest and the North West Regional Development Agency and is tailored specifically for those businesses using chemicals. Michael Glass, Picme’s chief executive, said “Like numerous other sectors, the UK chemical industry is finding it tough ... The purpose of this Forum is to encourage companies to look at internal processes in order to eliminate waste and improve efficiency – which should ultimately lead to cost savings and greater profitability.”

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.