ENERGY HEAT TREAT

Voestalpine Invests Millions in Aerospace

Aerospace is a key strategic growth area for Voestalpine, and is therefore a high priority in the coming years. Over the medium term the company expects to increase Group revenue in this technologically challenging customer segment from its current level of EUR 300 million to around EUR 500 million. In the next two years Voestalpine will invest over EUR 40 million in a new high-tech, high-speed forging line at Group company Böhler Edelstahl GmbH & Co KG in Kapfenberg in order to literally give additional thrust to this growth. The state-of-the-art facility is scheduled to go into operation as early as in 2018, and will primarily be used to manufacture forgings as pre-materials for extremely high load-bearing aircraft components, such as engine parts, or as workpieces for sophisticated products used in the oil & gas industry.

Over the next one and a half decades global demand for almost 40,000 new aircraft is forecast. The major investment in a new, state-of-the-art forging line demonstrates that Voestalpine is again staying abreast of the dynamic developments in the aerospace sector.

The aerospace industry is one of the key drivers of our international growth strategy in the future market of mobility. All most important aircraft manufacturers already rely on technologies and products from Voestalpine. By intensifying our innovation and investment activities we aim to further expand our position as a leading provider also in this sophisticated customer segment-

Wolfgang Eder, Chairman of the Management Board of voestalpine AG Wolfgang Eder, Chairman of the Management Board of Voestalpine AG

Fully automated facility sets new standards

The Special Steel Division of the Voestalpine Group is one of the leading global suppliers of high-performance materials and special forgings for the aerospace industry. Its highly stress-resistant products include structural parts, engine components and mounts, landing gear parts, and door segments that are used in the aircraft programs of manufacturers including Airbus, Boeing, Bombardier, and Embraer.

The new high-tech forging line will not only play a key role in increasing volumes in the aerospace business segment, but it will also set new standards in product quality, process automation, and digitalization. As a result, this investment significantly strengthens the technological leadership enjoyed by our Styrian production companies. Investment in a new special steel plant is also in planning as a means of opening up new dimensions in materials production. This is in addition to, and independent of, the current project. A final decision on the location of the special steel plant is expected for the second half of 2017.

Franz Rotter, Member of the Management Board of voestalpine AG and Head of the Special Steel Division Franz Rotter, Member of the Management Board of Voestalpine AG and Head of the Special Steel Division

Moreover, the new facility will produce forged components for oil and gas exploration which are required to withstand extreme conditions both on land and at sea. The high-tech forging line will process the material with a pressing force of 4,400 tonnes and a speed of up to 120 strokes per minute, or 2 strokes per second.

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Inauguration Day For Siemens’ Newest Turbine Blade Factory

Siemens has officially inaugurated the new rotor blade factory for offshore wind turbines in Hull, UK, in an event attended by the Secretary of State for Business, Energy and Industrial Strategy Greg Clark and representatives of the local community. The site at Alexandra Docks has been transformed in under two years from a derelict industrial wasteland to a busy high-tech manufacturing hub. Now, the state-of-the-art factory has completed the first 75-meter-long blades which are currently stored on racks on site. Shipping to the first offshore wind project Race Bank is expected in early 2017.

“Our new factory in Hull which we are today officially inaugurating is located in one of the most significant markets for offshore wind power and will produce rotor blades for our 7 and 8-megawatt wind turbines,” said Michael Hannibal, CEO Offshore of Siemens Wind Power. “The new manufacturing plant is part of our efforts to establish offshore wind power as a key pillar of a sustainable energy mix in Europe. At the same time we are creating 1,000 attractive jobs here and thereby supporting sustainable regeneration in the Humber region.”

With its partner Associated British Ports (ABP), Siemens is investing £310 million in Hull to create a world-class center for offshore wind manufacturing, assembly and logistics. The centerpiece of the investment, the wind turbine blade factory, is now fully operational. The full Alexandra Dock site, including a new harbor for pre-assembly and load-out of wind turbine components, will be fully on stream in 2017. Siemens had employed almost 700 people in Hull so far. A further 100 permanent staff are employed at Alexandra Dock working for Siemens’ suppliers and additional recruitment up to a total of 1,000 people will continue into 2017 as the site becomes fully operational. Hundreds more jobs have been created during construction and in the supply chain.

The new production site has an area of 540,000 square meters, including an area reclaimed from a wet dock. The new factory itself covers 40,000 square meters and has an optimized material flow based on the Siemens Production System (SPS). Storage, supply chain and assembly work are interconnected with modern database systems to produce 75–meter-long rotor blades for offshore wind turbines of the seven and eight-megawatt class.

Offshore wind manufacturing sites such as Hull in the UK or Cuxhaven in Germany are efficiently linked by new transport vessels and embedded in Siemens’ logistics concept with the goal to leverage innovation and industrialization on the way to lowering the costs of offshore wind energy. A key element of the concept is an improved transport solution, utilizing dual-purpose transport vessels to avoid both heavy component lifting through innovative Ro/Ro handling and cost intensive shipping of heavy components.

There is a growing market for wind turbines designed for erection off shore. Offshore wind power plants are currently being built primarily in the North Sea and Baltic Sea off Europe’s northern coastline. However, wind power projects are being developed in other regions as well, such as along the East Coast of the United States and in Asia off the coast of China and Taiwan.

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Siemens Celebrates Commissioning of Power Project in Pennsylvania

Siemens and Panda Power Funds celebrated the commissioning of the Panda Liberty Power Project in Bradford County, Pennsylvania – an 829 megawatt natural gas-fueled power plant featuring Siemens advanced H-class gas turbines. Harnessing Marcellus Shale gas, “Liberty” is the first of two new Panda Power Funds generating stations to be commissioned in Pennsylvania this fall, with the Patriot Power Project in Clinton Township set to be dedicated in November. Combined, the two projects will be able to supply power for about two million households in large regional power markets, including Pennsylvania.

For “Liberty” and “Patriot,” Siemens’ scope of supply features advanced power generation technology, financing, and long-term service. The single shaft power plant blocks include two SGT6-8000H gas turbines, two SST6-5000 steam turbines, two hydrogen-cooled SGen6-2000H generators, and two heat recovery steam generators, along with the control system SPPA-T3000. The gas turbines and generators were manufactured at Siemens’ Charlotte Energy Hub, the global base for the company’s 60 Hz power generating equipment.

Siemens will provide maintenance and service for the main components associated with the gas turbine under a long-term service program. Parts, inspections, and scheduled service/maintenance, along with Siemens’ Power Diagnostics™ remote monitoring and diagnostics, are included in the comprehensive service agreement. For “Liberty,” Siemens Financial Services provided financing to aid in the project’s construction through a $50 million term loan.

“The commissioning of this highly-efficient power plant marks another milestone in our successful relationship with Panda Power Funds. This project demonstrates the full spectrum of Siemens’ portfolio, from our leading edge H-class technology, to financing, to service and maintenance,” said Martin Tartibi, Senior Executive Vice President, Energy Solutions Americas, Siemens Power and Gas. “As America continues to turn to cleaner-burning natural gas, we are proud that our world-class power generation technology can provide affordable, efficient and reliable power to about one million households – using the latest, most advanced emissions-control technology.”

“Designed to harness gas from the Marcellus Shale, this state of the art power plant represents the next chapter in Pennsylvania’s energy renaissance,” said Todd Carter, Chief Executive Officer of Panda Power Funds. “Working with Siemens over the last several years has proven they ‘walk the talk’ with their customer service and technological innovation, helping to bring online a world-class power asset in the Keystone State. We are very pleased to reach another important milestone in our collaboration with Siemens.”

The H-class technology in a single-shaft configuration, used in the “Liberty” and “Patriot” power stations, means that both the gas turbine and steam turbine are arranged on one shaft and drive the same generator. This design offers economic advantages as a result of low investment costs, excellent efficiency and a high degree of flexibility during operation.

The “Liberty” power project is one of seven for Siemens and Panda Power Funds in the United States, totaling over 5,800 MW. In addition to selecting Siemens to supply three Flex-Plants in Texas, Panda Power Funds chose Siemens to deliver three CCPPs in Pennsylvania – including “Liberty” and “Patriot” – and one CCPP in Virginia.

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GE to Purchase LM Windpower

LM Group Holding A/S announces today that Doughty Hanson, the European private equity firm, has agreed to sell its stakes in LM Wind Power Holding A/S to GE for an enterprise value of EUR 1.5 billion.  The transaction is expected to close in the first half of 2017, subject to regulatory approvals. The acquisition is valued at 8.3 times 2016 forecast EBITDA. LM Wind Power Holding A/S is the parent company of LM Group Holding A/S. The closing of the transaction will constitute a change of control under LM Group Holding A/S’s EUR 130 million fixed rate notes due 2019 and NOK 475 million floating rate notes due 2020.

Originally founded in 1940 as a furniture manufacturer, LM Wind Power has evolved to become one of the leading manufacturers of rotor blades for the wind industry. It has a global manufacturing footprint of 13 sites in eight countries across four continents and continues to expand.

For the first half of 2016, the company reported sales of EUR 491 million and EBITDA of EUR 87 million which represented year-on-year growth of 40% and 81% respectively.  In June of this year, LM Wind Power unveiled the world’s longest ever blade at 88.4 meters long, demonstrating the Company’s continued strength in technology and manufacturing.

Commenting on the transaction, LM Wind Power CEO Marc de Jong, said:

“The offer from GE makes clear commercial sense for the growth of LM Wind Power and we are absolutely delighted with the prospects of having a world leader as our owner. It provides us with the necessary stability, visibility and strength to continue to realize the ambitious growth plans of the business and fully utilize our advanced design and technology, improve our manufacturing capabilities and reliability, expand our global footprint and reduce the Levelized Cost of Energy. It’s a great day for LM Wind Power and for the wind industry!”

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Ampco-Pittsburgh Acquires ASW Steel Inc.

 

John Stanik CEO Ampco-Pittsburgh

John Stanik - CEO Ampco-Pittsburgh

Ampco-Pittsburgh said it would pay $3.5 million in cash and assume $9.6 million of the Welland, Ontario, company's liabilities. ASW will become a part of the Union Electric Steel Corp. division of Ampco-Pittsburgh. The manufacturing plant, with an electric arc furnace, is located close to the U.S.-Canadian border near Niagara Falls, N.Y., and Buffalo. It was founded in 1918 as the Dillon Crucible Steel Alloy Co. and was acquired by MMFX in 2010.

"This acquisition is a very important element in Ampco-Pittsburgh’s strategic diversification plan," said John Stanik, CEO of Ampco-Pittsburgh, in a statement. "ASW’s proven broad expertise in flexible steel refining methods will provide us with the capabilities to manufacture the additional chemistries needed to expand our reach in the open-die forging market. The transaction also enhances our ability to grow in markets in which we currently participate and to add new markets for customers in the oil and gas, power generation, aerospace, transportation, and construction industries.”

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Nuclear Company Takes Delivery of Oxidizing Oven

A nuclear energy industry company recently took delivery of an electric oxidizing oven from Baker Furnace. The oxidizing oven will heat treat Inconel support trays that are used to hold nuclear fuel cell rods in place. The heat treating process provided by the industrial oven will extend the life of the trays and reduce production costs for the manufacturer.

The heat treating oven has a maximum temperature rating of 1350°F and work zone dimensions of 5’W x 5’H x 5’D. The unique Baker Furnace door design offers a lifetime no sag guarantee along with a pneumatic door locking mechanism. A recirculation fan provides approximately 25 air changes per minute through adjustable air distribution via sidewall ducts with the return air at the rear of the work chamber for temperature uniformity of ±25°F at 1300°F. The oxidizing oven utilizes a programmable temperature controller with ramp and soak capabilities.

 “At Baker Furnace, our design team focuses on durability and innovation. We have utilized our unique no sag door design with lifetime guarantee on equipment for years and now we are improving it with the added pneumatic door locking mechanism.” – Tim Bacon

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Weldaloy’s Aluminum Heat-treating Capacity Increased

On the heels of a recent expansion of their seamless rolled ring capabilities, Weldaloy continues to grow with the addition of a new low temperature aluminum aging oven. The new oven will increase Weldaloy’s aluminum heat-treating capacity.

Ovens created specifically for aluminum can reduce cycle times and increase productivity by optimizing temperature uniformity through adequate airflow. This translates to a better product that can be made in a repeatable recipe.

“We’re receiving more and more requests for large aluminum work, so we needed to add this low temperature aluminum aging oven to be able to increase our capacity and meet production needs. This addition will allow us to produce more parts in the same amount of time for our customers while maintaining quality,” said Kurt Ruppenthal, Vice President & General Manager at Weldaloy.

Many of the new opportunities for aluminum work have come from the oil and gas industry and the aerospace industry, as well as from the private space sector. Weldaloy recently achieved the AS9100C certification for their Quality Management System, which has opened the door for them to work with more aerospace companies that require certification of their suppliers.

“We look forward to continuing to grow our aluminum capabilities to meet the increase in demand,” said Ruppenthal.

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