THE ECHO - Ferrostaal
THE ECHO - Ferrostaal
THE ECHO - Ferrostaal
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<strong>THE</strong> <strong>ECHO</strong><br />
<strong>THE</strong> MAGAZINE OF <strong>THE</strong> MAN FERROSTAAL GROUP<br />
AUgUst 2007<br />
Spain<br />
new solar power plant in the testing phase<br />
Trinidad<br />
record investment in petrochemicals<br />
Venezuela<br />
More power for energy supply
Ammonia plant in Trinidad<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Editorial<br />
Dear Readers,<br />
The Scientific Advisory Council of the German Government<br />
estimates that, by the end of the 21st century, global energy<br />
demands will mainly be met by solar power plants.<br />
Solar power is where the future lies. Thanks to key projects,<br />
we are currently taking up the pole position in this growth<br />
industry – this applies equally to the biofuel and petrochemical<br />
markets. We are forming close partnerships with<br />
technology providers and our efforts are creating added<br />
value for our customers. We are well known for our expertise<br />
in the field of methanol plants, which we construct in conjunction<br />
with long-standing partners. Methanol is not<br />
merely a useful chemical substance – it is also a fuel source<br />
for the future. We are now in a position to enhance this<br />
expertise even further with two large projects involving<br />
the production of fertilisers. Such fertilisers are absolutely<br />
vital with regard to meeting the rising demand for food<br />
worldwide.<br />
These projects are clear examples of the focus on energy,<br />
fuels and petrochemicals which we initiated some time ago<br />
under the “projects” banner. As a general contractor with<br />
notable skill in the area of project development, we develop<br />
and construct large-scale industrial plants, thereby enhancing<br />
our technological expertise for the benefit of our<br />
customers. Some recent examples of this would be our<br />
joint venture with Solar Millennium, the purchase of a<br />
stake in the Solar Power Group and the takeover of Eurotecnica.<br />
All of these companies are technology leaders in<br />
their various sectors. At the same time, we are constantly<br />
Dr.-Ing. Wolfgang Knothe, Member of the MAN <strong>Ferrostaal</strong> Executive Board<br />
enhancing our competence in the area of processing. This<br />
is not only achieved by the focussed expansion of staff<br />
knowledge and skills, but also by external growth. To this<br />
end we recently purchased Koch de Portugal, a proven specialist<br />
in the EPC business for power plant construction. All<br />
of these strategic moves increase our value proposition in<br />
our projects and provide us with a long-term competitive<br />
edge.<br />
However, this strong focus on future technology does not<br />
mean that we are neglecting our core business, which also<br />
involves energy to a large degree. You can read about current<br />
examples of power plant projects and compressor stations<br />
in this magazine. Our core business involves concentrating<br />
on projects in “our own” countries such as Venezuela<br />
or the Middle East North Africa (MENA) region, which<br />
other companies consider to be difficult markets. In these<br />
regions we are particularly able to rely on excellent customer<br />
contacts and professional project management. Given<br />
our strengths in these countries, we are also keen to support<br />
other subgroups in the internationalisation process.<br />
This explains why we are currently assuming management<br />
duties in the establishment of a number of MAN Houses,<br />
which will bundle the operations of all MAN subgroups.<br />
I hope you enjoy reading <strong>THE</strong> <strong>ECHO</strong>, which includes interesting<br />
features on all these topics.<br />
Yours, Wolfgang Knothe<br />
3
4 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
5<br />
CoNtENtS<br />
24 14 22<br />
24<br />
38<br />
38<br />
ProjECtS<br />
TRINIdAd: record investment in the petrochemical<br />
industry<br />
A new plant complex for the production of fertilisers<br />
and melamine is being set up on this Caribbean<br />
island. Seven individual plants and an investment<br />
volume of 1.5 billion US dollars make this the largest<br />
ever completely private single investment on the<br />
island.<br />
ProjECtS<br />
SPAIN: new solar power plant in the testing phase<br />
A new solar power plant commenced its testing<br />
phase at the Plataforma de Solar in Almería in July.<br />
The innovative technology promises a high degree<br />
of cost-effectiveness and should be market-ready in<br />
two years’ time.<br />
6<br />
14<br />
18<br />
20<br />
22<br />
NEWS<br />
Around the globe: project news from all our business<br />
activities<br />
ForUm<br />
MAN <strong>Ferrostaal</strong> takes over plant constructor Koch<br />
de Portugal<br />
Adding to our expertise in power plant construction,<br />
particularly in the booming renewables sector<br />
maN PlatForm<br />
One face to the market<br />
Think global – act local: the MAN Group’s internationalisation<br />
strategy unites the subgroups scattered<br />
across the world under one banner.<br />
“We have a good reputation in the region”<br />
The MAN House in Dubai – servicing 16 key countries<br />
Over a century of MAN tradition in China<br />
The MAN House in Beijing: a key location in a rapidly<br />
growing market<br />
50 54<br />
58<br />
18 56<br />
44<br />
46<br />
48<br />
50<br />
54<br />
56<br />
ProjECtS<br />
Expert interview<br />
Prof. Robert Pitz-Paal, Head of Solar Research at the<br />
German Aerospace Centre, on commercial solar<br />
power and power imports from Africa<br />
Solar Millennium and MAN <strong>Ferrostaal</strong> found joint<br />
venture<br />
Both companies are combining their strengths to construct<br />
large-scale solarthermal power plants with the<br />
aim of becoming the leading supplier in this sector.<br />
Stake in the Solar Power Group<br />
A further strategic alliance in solar power: MAN <strong>Ferrostaal</strong><br />
purchases 25 per cent of the company shares.<br />
“A milestone in Venezuela’s energy sector”<br />
President Hugo Chávez inaugurates Termozulia I – the<br />
gas-steam power plant expanded by MAN <strong>Ferrostaal</strong>.<br />
SErviCES<br />
Record sales in the metal processing segment<br />
Successes in Brazil, Pakistan and China<br />
Gas pipeline for LUOC in Uzbekistan<br />
The country’s future wealth lies in the oil and gas business.<br />
64<br />
58<br />
62<br />
64<br />
66<br />
3<br />
4<br />
68<br />
71<br />
“Market leadership through quality leadership”<br />
Dr. Ralf Becker, Managing Director of MAN <strong>Ferrostaal</strong><br />
Automotive, talks about key success factors and the<br />
markets of the future.<br />
CoUNtriES aNd PEoPlE<br />
Living and working in foreign cultures<br />
A profile of Reinhard Hönsch, Managing Director of<br />
MAN <strong>Ferrostaal</strong> Perú<br />
Working with Beethoven in the fight against<br />
poverty<br />
In Venezuela, children from poor families have<br />
received free training as orchestral musicians for the<br />
past 30 years.<br />
“Fair treatment for customers and employees<br />
alike”<br />
Introducing: Bernd Ahlmann, Head of the Equipment<br />
Solutions Business Unit<br />
rEGUlar SECtioNS<br />
Editorial<br />
Contents<br />
Trade fair calendar<br />
Imprint<br />
62
6 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
NEWS<br />
Rail cranes for Indonesia<br />
Within the context of the “Railway Sector<br />
Programme”, funded by the Kreditanstalt<br />
für Wiederaufbau (the German<br />
state-owned development bank), MAN<br />
<strong>Ferrostaal</strong> AG supplied approximately<br />
54,430 metres of track and two KI-<br />
ROW rail cranes to the Ministry of<br />
Transport in Indonesia between 2004<br />
and 2005. After the expiry of a twoyear<br />
warranty period, MAN <strong>Ferrostaal</strong><br />
AG handed over the cranes complete-<br />
ly to the customer in Jakarta at the beginning<br />
of 2007. Since their delivery in<br />
2005, Indonesian State Rail has used<br />
the cranes regularly for track maintenance,<br />
as well as in salvage operations<br />
after rail accidents. Thanks to these<br />
cranes, the amount of time needed for<br />
work on the tracks, reconstruction<br />
work and salvage operations has been<br />
considerably reduced in Indonesia,<br />
where most routes are still single-<br />
New propulsion system for<br />
Argentine training ship<br />
The “A.R.A. Libertad” has already won the Boston Teapot<br />
Trophy a total of eight times. The Argentine navy sailing<br />
ship, which is used for training purposes, has also held<br />
the speed record for crossing the Atlantic between Cape<br />
Race (Canada) and Dursey Island (Ireland) since 1996. In order<br />
to ensure that the frigate stays moving at a snappy<br />
pace even during calm spells, MAN Diesel has equipped<br />
her with a completely new propulsion system. Besides a<br />
control system and a propeller, this comprises a power<br />
generator and two new diesel engines. MAN <strong>Ferrostaal</strong><br />
signed the supply contract with the Argentine navy in<br />
2004. Both L23/30-A engines were delivered at the end of<br />
2006. Each of them boasts an impressive 960 kilowatts of<br />
power, is highly reliable and easy to maintain. The Argentine<br />
navy chose the MAN system due to the exceptional<br />
characteristics of the engines, which are particularly suited<br />
to sailing ships. Similar engines are used by the Chilean<br />
and Colombian navies on their training ships. Thanks<br />
to the new engines, the Libertad can reach a speed of almost<br />
14 knots.<br />
The Argentine navy puts its trust in MAN technology.<br />
track. In most cases, this means normal<br />
services can resume after only a<br />
short delay.<br />
The “Railway Sector Programme” is<br />
making a major contribution to the<br />
country’s economic recovery by ensuring<br />
the mobility of both people and<br />
technology.<br />
Expansion of rail<br />
network in Croatia<br />
MAN <strong>Ferrostaal</strong> is supporting the Republic<br />
of Croatia in the expansion of<br />
the pan-European rail network, thus<br />
contributing to the development of<br />
infrastructure in Croatia and consequently<br />
helping to lay the foundations<br />
of economic growth in south-eastern<br />
Europe. Following approaches made<br />
by MAN <strong>Ferrostaal</strong>, the Kreditanstalt<br />
für Wiederaufbau (the German stateowned<br />
development bank, KfW) in<br />
Frankfurt is funding the modernisation<br />
of the Croatian railway line between<br />
Zagreb and Split. Since 2003,<br />
the KfW has granted loans amounting<br />
to around 180 million euros to Croatia<br />
for the purposes of rail network development.<br />
A large part of this funding for modernising<br />
the “Lika line” between Ostar-<br />
Power for Leticia<br />
Trieste<br />
Leticia is a town in the extreme south of Colombia. It has a<br />
population of 28,000 and is surrounded by tropical forests.<br />
Due to its peripheral location, energy provision is difficult.<br />
It is now hoped that a new MAN Diesel generator will remedy<br />
this situation. The engine achieves an output of 3,122<br />
kW which is transferred to a generator. MAN <strong>Ferrostaal</strong> organised<br />
shipment from the Danish port of Frederikshavn<br />
across the Atlantic and then through the Amazon region.<br />
The engine finally reached Leticia in April, and MAN Diesel<br />
specialists are about to install it in the municipal power<br />
plant.<br />
Ljubljana<br />
Adria<br />
Oštarije<br />
ije and Split was linked to MAN <strong>Ferrostaal</strong><br />
as supplier. Involving a total<br />
sum of 130 million euros, divided into<br />
three distinct delivery phases, MAN<br />
<strong>Ferrostaal</strong> concluded contracts with<br />
the Croatian railway company for delivery<br />
of materials for track superstructure,<br />
signalling systems and fur-<br />
Zagreb<br />
Split<br />
CROATIA<br />
ther capital equipment. The first two<br />
supply phases, worth 40 million and<br />
60 million euros respectively, have already<br />
been successfully completed.<br />
The third and final supply phase, worth<br />
30 million euros, commenced at the<br />
beginning of February 2007 and will<br />
take about 18 months to complete.<br />
7<br />
Sarajevo
8 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
9<br />
NEWS<br />
Germany’s strongest tugboat<br />
MAN <strong>Ferrostaal</strong>, in its capacity as general contractor,<br />
has concluded contracts for the construction of a<br />
new series of ocean-going tugboats to be built by Mützelfeldtwerft<br />
GmbH in Cuxhaven. These vessels will be used<br />
offshore for towing oil platforms, as well as for anchor handling.<br />
The “Taurus” was launched in Cuxhaven in April, subsequently<br />
consigned to the Harms Offshore AHT “Taurus”<br />
GmbH & Co. KG single-ship company, and then put into<br />
service. Shortly afterwards in Aberdeen, the Taurus commenced<br />
a North Sea charter with BP. The ship is 58 m long<br />
and 14 m wide and can hold 1,000 tonnes of heavy oil. The<br />
On the right wavelength<br />
Chile is in the process of modernising<br />
its fleet. Seven second-hand<br />
frigates of Dutch and British origin are<br />
to be put into service between 2006<br />
and 2008. Some alterations will have to<br />
be carried out to make it possible to<br />
supply them with power from the<br />
shore. The four Karel Doormann and<br />
Jacob van Heemskerck ships and the<br />
three Type 23 British ships are equipped<br />
with generators which have a frequency<br />
of 60 hertz, whereas the Chilean<br />
power grid is based on 50 hertz. Up to<br />
now this has meant that the frigates,<br />
even when at base, have had to be supplied<br />
by onboard generators. This results<br />
in high diesel consumption and<br />
huge costs. It is expected that a modern<br />
system using rotating frequency<br />
converters will lead to low costs. The<br />
Taurus has a tow rope pull of 219 tonnes, making it the<br />
strongest German tugboat at present. The main propulsion<br />
comprises two 14V32/40 MAN diesel engines which have a<br />
combined output of 14,000 kW. The variable pitch propeller<br />
is also courtesy of MAN Diesel. Two further tugboats –<br />
“Janus” and “Ursus”, boasting 220 tonnes of tow rope pull<br />
each – are set to follow this year. In 2008, a pair of even<br />
stronger tugboats – the “Uranus” and the “Orcus”, with 280<br />
tonnes of tow rope pull each – will be delivered to the corresponding<br />
single-ship companies.<br />
project will be carried out by MAN <strong>Ferrostaal</strong><br />
Chile in conjunction with Piller<br />
Power Systems of Germany and Emelta<br />
S.A. of Chile. Two converters are already<br />
in operation at the Valparaiso naval<br />
base. It is planned that a further converter<br />
with an output of 1,250 kilovoltamperes<br />
will be connected at the Talcahuano<br />
naval base at the end of 2007.<br />
About five million tonnes of fertiliser are used in Latin America every year<br />
New CFO<br />
MAN <strong>Ferrostaal</strong> AG gained a new Executive Board Member<br />
in January 2007. Michael Beck was appointed as successor to<br />
Jens Gesinn who went into retirement. 43-year-old Mr. Beck,<br />
a business studies graduate who held a number of leading<br />
posts at MAN Nutzfahrzeuge prior to being appointed to the<br />
Board, is responsible for Finance, Accounting, Controlling,<br />
Tax and IT.<br />
Large contract<br />
in Venezuela<br />
The Venezuelan government would<br />
like to turn the country into one of<br />
Latin America’s leading fertiliser producers.<br />
With this aim in mind, an old<br />
fertiliser factory run by the stateowned<br />
PEQUIVEN company in the Caribbean<br />
town of Morón is to be replaced<br />
by a modern, efficient plant. In<br />
the tendering process, a consortium<br />
comprising MAN <strong>Ferrostaal</strong>, Toyo Engineering<br />
and VEC prevailed against a<br />
whole series of competitors and landed<br />
the contract, worth one billion euros.<br />
MAN <strong>Ferrostaal</strong>’s involvement relates<br />
to the construction of the ammonia<br />
plant that forms part of the complex.<br />
The company already has a<br />
wealth of in-depth knowledge and a<br />
great deal of experience in this area<br />
following the construction of ammonia<br />
plants in Trinidad. A comprehensive<br />
report on this petrochemical<br />
project will be included in the next issue<br />
of <strong>THE</strong> <strong>ECHO</strong>.
10 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
11<br />
NEWS<br />
Dutch industrial ports are hotspots of the world economy.<br />
Biodiesel plant in Amsterdam<br />
MAN <strong>Ferrostaal</strong> is building a biodiesel<br />
plant with an annual capacity<br />
of 200,000 tonnes for J&S Bio<br />
Energy B.V. at the port of Amsterdam.<br />
The method used is based on the internationally<br />
renowned “Connemann<br />
process” for which MAN <strong>Ferrostaal</strong><br />
owns a worldwide patent. This application<br />
process involves transforming<br />
vegetable oil into fatty acid methyl ester,<br />
and the end-product, biodiesel,<br />
fulfils the European EN 14214 quality<br />
standard. The Connemann process<br />
has been tried and tested over many<br />
years in the industry and is characterised<br />
by good product quality, low consumption<br />
and high reliability. J&S Bio<br />
Energy B.V., based in Utrecht in the<br />
Netherlands, is a subsidiary of the international<br />
oil and gas group J&S Energy<br />
S.A. in Warsaw, Poland.<br />
MAN <strong>Ferrostaal</strong> acts as general contractor<br />
for the supply and assembly<br />
work. The plant is set to be completed<br />
by July 2008 and is designed for a daily<br />
capacity of 600 tonnes. The project<br />
entails an overall investment of 42<br />
million euros. Parallel to this, another<br />
biodiesel plant with an annual capacity<br />
of 100,000 tonnes is being built<br />
for our Polish customer Lotos Bio-<br />
paliwa at the Lotos Biopaliwa site in<br />
Czechowice, Poland. Completion is<br />
scheduled for the 2nd quarter of<br />
2008. Total investment amounts to 25<br />
million euros.<br />
450,000 550,000<br />
340,000<br />
2000<br />
2001<br />
800,000<br />
2002<br />
1,200,000<br />
2003<br />
1,800,000<br />
2004<br />
2005<br />
Biodiesel sales in Germany (in t)<br />
Source: Union zur Förderung von Öl- und Proteinpflanzen e.V.<br />
(Union for the Promotion of Oil Seed and Protein Plants, UFOP)<br />
MAN <strong>Ferrostaal</strong>’s expertise helps Syrian power plants to “breathe”<br />
In October 2004, MAN <strong>Ferrostaal</strong> was commissioned by<br />
the Koch/Siemens consortium to air-condition and extract<br />
smoke from two power plants in Zayzoun and Nasserieh<br />
in Syria. The power plants are operated by the “Public<br />
Establishment of Electricity for Generation and Transmission”,<br />
Syria’s energy production and supply company.<br />
MAN <strong>Ferrostaal</strong> was able to call on all of its expertise in power<br />
plant construction. The planning and implementation of<br />
heating, ventilation and refrigeration systems ran smoothly<br />
and the turnkey handover of the project followed in April<br />
2007. The job was worth 3.7 million euros.<br />
Syria’s increasing energy requirements mean that several<br />
new gas-steam power plants need to be built. Gas-steam<br />
power plants are incredibly efficient. They tend to involve<br />
low investment and low CO2 emissions. The two power<br />
plants have been expanded from “open” to “combined cycle”<br />
operations. Gas and steam turbine processes have now<br />
been combined.<br />
The expansion at the power plant also called for the construction<br />
of new functional buildings. MAN <strong>Ferrostaal</strong>’s activities<br />
thus comprised the natural and mechanical ventilation<br />
of the technical buildings, air-conditioning of buildings<br />
and rooms for switching systems, administration, storage<br />
and workshops. The remit also included natural smoke<br />
extraction for technical buildings and mechanical smoke<br />
extraction for all other areas.<br />
The Heating, Ventilation & Air-Conditioning concept as<br />
well as the smoke extraction system are connected to an<br />
instrumentation and control unit, which was also supplied<br />
by MAN <strong>Ferrostaal</strong>. This unit is integrated into the building<br />
control system. The secure and reliable operation of the<br />
air-conditioning and smoke extraction processes is indispensable<br />
for the smooth running of the plant and, by extension,<br />
for its cost-effectiveness.<br />
The power house roof complete with four 135,000 m 3 /h supply air installations<br />
as well as wind baffle ventilators for heating and smoke extraction<br />
MAN <strong>Ferrostaal</strong>’s complete and integrated solution impressed<br />
all concerned. Moreover, by virtue of staff knowhow<br />
and flexibility on the part of the company, the extremely<br />
tight deadlines could be met. The first deliveries<br />
were made in December 2005 and completion was achieved<br />
on schedule in April 2007.<br />
In March 2007, MAN <strong>Ferrostaal</strong> received a further order<br />
from Siemens Power Generation in Vienna: providing airconditioning<br />
for a third power plant in Syria.
12 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
13<br />
NEWS<br />
Construction of a compressor station in Thailand<br />
Whenever a new source of fossil fuels is found, the question<br />
arises of how to deliver the gas to consumers<br />
quickly and in a form that meets their needs. It was against<br />
this background that the partially state-run Thai oil and gas<br />
utility PPT Public Company Ltd. commissioned MAN <strong>Ferrostaal</strong><br />
with the construction of a compressor station in Map<br />
Tha Put. Gas turbine compressors are designed to prevent bottlenecks<br />
in supply, and primarily have a storage function.<br />
Timely completion of the compressor station in Map Tha Put<br />
The new compressor station forms part of the Third Transmission<br />
Pipeline Project. This entails linking two newlytapped<br />
offshore gas fields located off the Thai coast with onshore<br />
consumers by means of pipelines. The MAN <strong>Ferrostaal</strong><br />
specialists had a period of only 18 months between the date<br />
the contract came into effect and the mechanical completion<br />
of the plant in December 2006.<br />
The scope of the contract encompassed engineering work and<br />
the delivery of equipment. It also included technical documentation<br />
as well as construction, assembly and commissioning<br />
measures. Having established a “Bangkok Branch” especially<br />
for this project, MAN <strong>Ferrostaal</strong>, in conjunction with<br />
local building contractor IBC, operated as part of an open consortium.<br />
In this regard, 85 per cent of the joint and several<br />
liability was carried by MAN <strong>Ferrostaal</strong> and 15 per cent by IBC.<br />
The contractual obligations of IBC, the consortium partner,<br />
comprised construction and assembly work as well as customer<br />
invoicing. The plant-specific engineering measures<br />
were carried out by the Bangkok-based Worley Parsons Ltd.<br />
under the project leadership of MAN <strong>Ferrostaal</strong>.<br />
In order to ensure that the schedule proceeded smoothly,<br />
the entire MAN <strong>Ferrostaal</strong> Project Task Force was based in<br />
Thailand. They were always located at the relevant project<br />
“hotspot”, that is, Bangkok and later Map Tha Put, thus enabling<br />
the company and IBC to adhere precisely to the deadline<br />
for mechanical completion. The customer assumed<br />
complete control of the entire compressor station subsequent<br />
to a 30-day performance test phase under continuous<br />
operation.<br />
On the basis of work done and the superior levels of constructive<br />
cooperation achieved with our customer PPT, MAN<br />
<strong>Ferrostaal</strong> is confident that the foundation has been set for<br />
further common projects in Thailand.<br />
Specifications<br />
Flow rate: 1,200 MMSCFD<br />
Gas inlet pressure/temperature: 42 bar (g) at +35 °C<br />
Gas outlet<br />
pressure/temperature: 86 bar (g) at < +52 °C<br />
Turbines/compressors: 3 x 21 MW gas turbines RB211<br />
6562 DLE (Rolls-Royce) with RB45<br />
centrifugal compressors (MAN<br />
TURBO); turbines are operated with<br />
gas from import pipeline<br />
Design: 3 compressors (2 in operation, 1 on<br />
standby) with intake-side gas filters<br />
and pressure-side gas coolers as<br />
well as a separate flare system<br />
Energy supply: Transformer in existing sub-station<br />
plus diesel generator for emergency<br />
power<br />
Control system: Digital control system (DCS) and<br />
electrostatic discharge (ESD) with<br />
local operation and remote control<br />
from the control room<br />
Clean air for a radiation-free future<br />
The decommissioning of nuclear<br />
power stations means that we are<br />
faced with a difficult long-term legacy.<br />
After an operational life of 21 years, the<br />
Jülich Experimental Reactor, one of<br />
the first nuclear reactors in Germany,<br />
was finally shut down in 1988. Since<br />
then, the reactor site has gradually<br />
been returned to a greenfield state. The<br />
specially built material lock on the reactor<br />
building plays a central role in<br />
this process. It ensures the safe containment<br />
of radioactively contaminated<br />
reactor components which are<br />
sealed in the lock. The lock’s ventilation<br />
system must be steadily adapted<br />
in keeping with the decommissioning<br />
process.<br />
At the end of 2004, MAN <strong>Ferrostaal</strong><br />
won the contract from the Jülich Experimental<br />
Reactor Consortium to<br />
build new ventilation systems and a<br />
chimney flue with an activity monitoring<br />
system. The contract was worth<br />
around 2.5 million euros. The systems<br />
were delivered to the operator on<br />
schedule at the end of 2006.<br />
The new ventilation systems were deployed<br />
inside the material lock. To this<br />
end, the waste air of the new ventilation<br />
system has been merged with the<br />
rest of the plant’s waste air via parallel<br />
filtering units containing prefilters and<br />
air filters. This is then discharged into<br />
the atmosphere via a newly erected 65metre-high<br />
chimney flue.<br />
Bioshield and water tower; material lock with chimney flue<br />
The chimney flue itself is equipped<br />
with an integrated activity monitoring<br />
system. This system allows isokinetic<br />
samples to be taken and can also be<br />
used to measure the volumetric flow<br />
and continuously monitor and control<br />
the waste air for radioactive particles<br />
such as tritium or C14. MAN <strong>Ferrostaal</strong><br />
also installed all the new instrumenta-<br />
tion and control equipment for the<br />
ventilation systems. All the on-site<br />
work was carried out exclusively by<br />
personnel who had received special<br />
training in radiation protection.
14<br />
ForUm<br />
MAN <strong>Ferrostaal</strong> takes over plant<br />
constructor Koch de Portugal<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Companies who wish to compete on the international stage must ensure<br />
that they are constantly enhancing their know-how and finding healthy<br />
growth opportunities. By purchasing the well-known plant constructor Koch de<br />
Portugal Lda., not only was MAN <strong>Ferrostaal</strong> able to gain a stronger knowledge<br />
base in the projects segment, but Koch de Portugal can now also benefit<br />
from membership of the MAN Group. Prior to the purchase, the company<br />
had three owners, the majority shareholder being Koch Transporttechnik<br />
GmbH. The purchase agreement was signed on March 26, 2007.<br />
Koch de Portugal has been viewed as one of the leaders<br />
in power plant engineering expertise for over 25<br />
years and enjoys an excellent reputation in the industry.<br />
The 130 employees of the Lisbon-based company,<br />
which also has premises in Saarlouis, specialise in planning<br />
and managing large-scale industrial projects. In this connection,<br />
Koch de Portugal deploys both conventional and alternative<br />
technologies. The company builds diesel, gas and<br />
steam power plants, solarthermal power plants and plants<br />
for petrochemical products and for producing biofuels.<br />
It is mainly in the latter three areas – and particularly in the<br />
booming renewables sector – that the Portuguese wish to<br />
benefit from cooperation with MAN <strong>Ferrostaal</strong>. For example,<br />
Koch de Portugal provides engineering and construction<br />
services, supplies heat recovery boilers as well as several<br />
main and secondary plants and looks after assembly and<br />
start-up operations. The company is recognised as a highly<br />
professional EPC contractor. Similar to MAN <strong>Ferrostaal</strong>,<br />
Koch de Portugal operates in international consortiums and<br />
is also involved in helping to fund certain projects. There<br />
are obvious synergies in the approaches of both companies<br />
and these will come into play in future project acquisition<br />
and implementation.<br />
Lothar R. Somborn, Dieter W. Frank and Jean Claude Hecht,<br />
Managing Directors at Koch de Portugal, report directly to<br />
the MAN <strong>Ferrostaal</strong> AG Executive Board. Cooperation with<br />
the individual MAN <strong>Ferrostaal</strong> business units takes place as<br />
required within the various projects. For instance, one focus<br />
will be on the construction of solarthermal power plants.<br />
In association with partners, MAN <strong>Ferrostaal</strong> has completed<br />
the construction of a preliminary pilot plant in the Spanish<br />
city of Almería that operates on the basis of cost-effective<br />
Fresnel technology. The Essen-based group can now call on<br />
the support of Koch de Portugal for future projects.<br />
15
16<br />
ForUm<br />
Locations where Koch de Portugal is strong: Nigeria, Iran, Jordan, Mauritania,<br />
Syria, Brazil, Argentina, Venezuela, Thailand, Malaysia.<br />
By teaming up with MAN <strong>Ferrostaal</strong>, Koch de Portugal has<br />
expanded its horizons not only in terms of product range<br />
but also in geographical terms. Hitherto, the legendary Portuguese<br />
spirit of adventure and discovery has brought the<br />
company to Nigeria, Jordan, Mauritania and Syria. Moreover,<br />
Koch de Portugal has experience operating in Brazil,<br />
Venezuela, Thailand and Malaysia. Koch de Portugal is currently<br />
working with MAN <strong>Ferrostaal</strong> on projects in Iran, Venezuela<br />
and Argentina. But even in its home country of Portugal,<br />
with the assistance of MAN <strong>Ferrostaal</strong>, the company<br />
has set its sights on new markets – plants processing bioethanol<br />
for fuel being one example.<br />
On a number of different levels, this leads to win-win scenarios<br />
for both companies, whereby each benefits from the<br />
excellent reputation of the other. There have already been<br />
direct and indirect relations between Koch de Portugal and<br />
MAN <strong>Ferrostaal</strong> for quite some time.<br />
Koch de Portugal holds excellent credentials. For instance,<br />
the company constructed the first gas-steam turbine power<br />
plant in Portugal at the end of the 1990s. Some prestigious<br />
recent projects include the construction and putting<br />
into operation of the large-scale Ribatejo power plant, which<br />
was completed in 2006 and is located some 30 kilometres<br />
from Lisbon. It has an output of three times 400 megawatts.<br />
Koch de Portugal carried out this project, which was commissioned<br />
by the Portuguese electricity concern Termoeléctrica<br />
do Ribatejo S.A. in a consortium with Siemens. The<br />
project was worth around 500 million euros, with Koch de<br />
Portugal responsible for roughly half this amount.<br />
The customer’s expectations as to quality and results were<br />
greatly exceeded at Ribatejo. The performance test for the<br />
final unit took place three months ahead of the agreed deadline.<br />
Furthermore, the Ribatejo team received an award for<br />
achieving two million accident-free man-hours. Appropri-<br />
ate assignment of tasks and optimised workflow processes<br />
ensured that the construction phase was a complete success.<br />
The Ribatejo project provides some insight into the capabilities<br />
of Koch de Portugal. A pronounced team spirit<br />
along with a commitment to efficiency and quality are hallmarks<br />
shared by Koch de Portugal and MAN <strong>Ferrostaal</strong><br />
alike.<br />
Both companies are characterised by flat hierarchies, short<br />
communication channels and sophisticated quality management<br />
systems. Koch de Portugal has been officially EN<br />
ISO 9001:2000 certified since June 2007. The necessity for<br />
the company to receive its own certification arose after it<br />
separated from the “mother company”, and it was obtained<br />
within 6 months. Koch de Portugal also holds Boiler and<br />
Pressure Vessel Code certification from the American Society<br />
of Mechanical Engineers (ASME). The “ASME” code is regarded<br />
as the leading set of regulations for pressure equipment<br />
and components. The certificate also allows Koch de<br />
Portugal to construct boilers on assembly stands. Management<br />
is also endeavouring to obtain safety area certification<br />
in the next few months.<br />
The employees of both Koch de Portugal and MAN <strong>Ferrostaal</strong><br />
view the merger in a very positive light. In the case<br />
of Koch de Portugal, it provides the company with an opportunity<br />
to expand its core business with the support of a<br />
strong partner. Against a backdrop of healthy growth rates,<br />
management is already considering recruiting new employees.<br />
MAN <strong>Ferrostaal</strong> not only benefits from the expertise<br />
and reputation of the Portuguese company, but can also<br />
supplement its pool of highly qualified specialists. Given<br />
the current shortage of qualified engineers on the labour<br />
market, this is a very positive factor. The combined experience<br />
of Koch de Portugal’s employees can be directly integrated<br />
into the day-to-day business of MAN <strong>Ferrostaal</strong>.<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Ribatejo – a schedule for success<br />
March 2002 Setting up of construction site begins.<br />
May 2002 Construction work commences on the twin cooling towers for the first two power plant<br />
units.<br />
December 2002 Gas turbine, steam turbine and condenser arrive. At the now almost fully equipped power<br />
house, the 370-tonne crane is firmly fixed in place and waits for assembly to begin.<br />
March 2003 At peak periods, up to a thousand employees are at work on various tasks. The demineralisation<br />
and coolant water systems are virtually completed; the trickle system and<br />
ventilators are installed at the cooling tower. The heat recovery boiler is also fitted out internally:<br />
when completed, this will include 40 kilometres of closely entwined piping in just one<br />
boiler.<br />
May 2003 The heat recovery boiler stack gradually rises to its final height of 75 m.<br />
September 2003 All construction work on the cooling towers, heat recovery boiler, power house, coolant water<br />
system and other functions for unit 1 have been completed. The gas turbine is ignited on<br />
September 5, and the first 16 megawatts of electricity enter the grid a week later. Commissioning<br />
of the steam turbine also proceeds smoothly<br />
December 2003 Unit 1 of the Ribatejo power plant is operating at full power.<br />
Unit 2 is on the verge of completion.<br />
March 2004 Current operator Companhia Portugesa de Produçã de Electricidade, S.A. (CPPE) opts for<br />
unit 3. The objective is completion by the end of February 2006.<br />
April 2004 On April 20 at an inauguration ceremony, Dr. José Manuel Durão Barroso, the Portuguese<br />
Prime Minister, sets the first of the three power plant units into operation.<br />
October 2004 Unit 2 of the power plant has a problem-free start to commercial operations.<br />
July 2005 The gas turbine of unit 3 is ignited on July 18 and the warm commissioning phase begins.<br />
As early as August the first 80 megawatts are dispatched to the grid during purging of the<br />
steam pipeline.<br />
September 2005 Unit 3 is connected to the grid at full output.<br />
POWER magazine (July/August issue) nominated the Ribatejo power plant as one<br />
of the “Top Plants 2004” worldwide.<br />
17
18 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
19<br />
maN PlatForm<br />
One face to the market<br />
One face to the market – that is the motto of MAN’s new internationalisation<br />
strategy. In future, the national representations of all the subgroups<br />
are to be united under one roof in so-called MAN Houses. In Latin America,<br />
the Near and Middle East, Africa and South-East Asia, 19 such central contact<br />
points for the group are planned. The MAN Houses represent globalisation<br />
in practice for international customers and partners. Within the<br />
framework of this internationalisation process, MAN <strong>Ferrostaal</strong> plays a<br />
leading role as mediator, organiser and contact partner.<br />
In future, the MAN Group wants to bundle its forces and<br />
make use of synergies. Where previously the individual<br />
subgroups acted separately, central addresses will be<br />
created to gather all the subgroups in one building. “The<br />
MAN Houses are a visible sign of the strength of our group<br />
and the door into the product world of the whole group,”<br />
says Martin Everding, responsible at MAN <strong>Ferrostaal</strong> for the<br />
new MAN Sales and Service Platform. The pioneers of this<br />
concept, apart from MAN House Mexico, are the MAN<br />
Houses in Dubai and Beijing, opened in June this year. The<br />
MAN Houses offer innovative, holistic concepts from one<br />
source and, in this way, increase the level of service for the<br />
customer. At the home base, MAN is a consulting partner,<br />
not just a seller of products and industrial services. In this<br />
way, the group generates added value for the customer.<br />
More than a new office<br />
The MAN Middle East FZCO has leased one floor of a modern<br />
office complex in Dubai. These new premises are much<br />
more than just a new office – they form the MAN House<br />
Dubai. It is to become a sales hub for MAN Nutzfahrzeuge<br />
in the region. While MAN Nutzfahrzeuge takes care of the<br />
delivery of buses and trucks, MAN <strong>Ferrostaal</strong> will control its<br />
sales and service. The regional representations of MAN<br />
TURBO and MAN Diesel have already moved into the MAN<br />
House Dubai.<br />
Customers from Oman at the opening celebration<br />
Laying of the foundation stone for a new aluminium foil rolling mill:<br />
Thomas Buschmann, Manager of the MAN House Beijing, and Hu Jun, President of Kunshan Aluminium<br />
Central address in China<br />
In China, the MAN Group can look back on a tradition of<br />
more than a hundred years. In the capital Beijing, all four<br />
subgroups have moved into a shared building. The MAN<br />
House Beijing is the central address for MAN’s business activities<br />
in China. In Changchou, 150 kilometres south of<br />
Shanghai, MAN TURBO is currently building a service workshop<br />
for turbomachines, in which up to 300 jobs will be created.<br />
MAN Nutzfahrzeuge operates a Trucknology Centre in<br />
Beijing.<br />
MAN <strong>Ferrostaal</strong> as forerunner<br />
With its international networks and intercultural experience,<br />
MAN <strong>Ferrostaal</strong> is serving as a forerunner for the other<br />
MAN subgroups in foreign countries. “With our structures,<br />
facilities and know-how, we create a basis for important<br />
business transactions. For example, if MAN Diesel<br />
wants to send an employee to Argentina, we take care of all<br />
the organisational matters,” says Martin Everding. The internationalisation<br />
concept promises a clear presentation<br />
of the brand and a sustained improvement in the market<br />
presence of MAN as a group. “Thanks to the work of the<br />
MAN Houses, the whole group will be better perceived<br />
abroad,” says Everding. The first MAN House opened in<br />
2006 in Mexico City. The openings of the Houses in Beijing<br />
and Dubai represent two important milestones in MAN’s<br />
internationalisation strategy. Three more events are coming<br />
up at the end of 2007. That is when the MAN Houses in<br />
Lima, Kuala Lumpur and Jakarta officially open their doors,<br />
to be followed at the beginning of 2008 by Teheran and<br />
Moscow. The opening of a series of other MAN Houses is<br />
planned by the end of 2008 under the coordinating management<br />
of MAN <strong>Ferrostaal</strong>.
20<br />
maN PlatForm<br />
“We have a good<br />
reputation in the region”<br />
MAN AG is bundling the competences of its subgroups in the Middle East<br />
and, in this way, is taking advantage of the synergies in a prosperous economic<br />
area. The new MAN House in Dubai serves 16 important countries<br />
and is a valuable contact point for every business partner in the Middle East.<br />
the next few years, we shall be at full stretch. At<br />
the moment, we are working on various lucrative<br />
“For<br />
projects in countries like Oman, Saudi Arabia and<br />
Qatar. These are certain to be followed soon by a number of<br />
others. Our diversified product range fits the Arabian region<br />
very well,” reports Alexander Smola, General Manager of<br />
MAN Middle East Freezone Company (FZCO) and Manager of<br />
the MAN House in Dubai. The 53 employees in this boom city<br />
of the United Arab Emirates serve some of the most important<br />
growth markets for MAN AG in the Near and Middle East.<br />
The new premises at Dubai Airport are more than just a new<br />
office building for the MAN Middle East FZCO, founded in<br />
2006 by MAN Nutzfahrzeuge and MAN <strong>Ferrostaal</strong>. The new<br />
MAN House generates synergies for the whole group. Instead<br />
of acting separately in the region as has been the case up to<br />
now, the MAN subgroups can now combine their forces more<br />
effectively.<br />
Highly professional local partners<br />
Due to its high investment volume, the Middle East is par-<br />
The MAN House offices in Dubai<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
ticularly attractive to the MAN Group. The local cooperation<br />
also works very well, as Alexander Smola reports: “Our partners<br />
in the Arabian region have a very holistic setup and<br />
work extremely professionally. We have gained a good reputation<br />
in the region with what we have already achieved<br />
here. Therefore MAN has, for example, become the leading<br />
truck manufacturer in many markets”. In order to get employees<br />
qualified, there are training schemes in Dubai, special<br />
courses in Germany and even a mobile training truck.<br />
Largest single investment on the Arabian Peninsula<br />
Among MAN <strong>Ferrostaal</strong>’s activities in the region, the construction<br />
of the methanol plant MO3000 in Oman is at<br />
present one of the most prestigious projects. This plant, with<br />
an investment volume of about 400 million US dollars, is currently<br />
the largest single investment on the Arabian Peninsula<br />
and is planned to produce over a million tonnes of methanol<br />
per year. Its completion is scheduled for the third quarter<br />
of 2007. The customer is the Oman Methanol Company<br />
LLC (OMC).<br />
Restructuring of dubai’s local transport<br />
In addition to this, MAN Middle East supplies practically the<br />
complete range of MAN commercial vehicles, also including<br />
special vehicles like airport buses, fire service vehicles and<br />
catering vehicles. MAN is profiting from the complete restructuring<br />
of local public transport for the expanding metropolis<br />
of Dubai, with its population of 2.6 million: the city<br />
has ordered 400 Neoplan buses, the majority of which are<br />
to be delivered in 2008. The order volume is in the three-figure<br />
million range. Dubai also covers the entire range of MAN<br />
<strong>Ferrostaal</strong> activities in the region. Altogether, MAN’s activities<br />
for 16 rapidly growing markets are controlled from Dubai.<br />
Moving Middle East<br />
The opening celebration of the MAN House managed by<br />
MAN <strong>Ferrostaal</strong> took place on June 17 with the motto “Moving<br />
Middle East”. The new group representation in Dubai is<br />
situated in the Dubai Airport Freezone. There are three different<br />
free trade zones in Dubai at present: the Jebel Ali<br />
Freezone, the Dubai Airport Freezone and the Dubai Technology,<br />
Electronic Commerce & Media Freezone. A subsidiary<br />
in such a zone offers foreign investors an opportunity<br />
to found a subsidiary of their own without the local participation<br />
usually required in the United Arab Emirates. An<br />
FZCO in the United Arab Emirates is deemed not to be a regional<br />
subsidiary, but a legal person with its own legal personality<br />
and is comparable with a GmbH (comparable with<br />
a limited company). The MAN Middle East FZCO sees itself<br />
as primarily responsible for the Arabian Peninsula, as well<br />
as for a few states in neighbouring regions, North and East<br />
African countries, for example, and the Caspian region.<br />
Further information about the MAN House Dubai is avail-<br />
able at www.man-middleeast.com.<br />
21
22<br />
maN PlatForm<br />
Over a century<br />
of MAN tradition in China<br />
There is hardly another country in the world with a<br />
faster growing economy than China: its gross domestic<br />
product grew by 10.6 per cent in 2006. Similar figures<br />
are to be expected for 2007. The MAN Group wants to<br />
take advantage of this enormous potential and to improve<br />
its position in the Chinese market. So, in June, with the motto<br />
“We are committed to China”, the new MAN House in the<br />
capital Beijing was opened.<br />
The MAN Group can look back on a long tradition in China.<br />
The group has been delivering high-quality technical products<br />
and services to Chinese industry for more than 100<br />
years. This business is to be expanded in future. Thomas<br />
Buschmann, spokesperson for the new MAN House and<br />
Manager of MAN <strong>Ferrostaal</strong> in Beijing, has great expectations<br />
for the facility: “I hope that, through a regular exchange of<br />
information and by acting together, we can develop new<br />
business potentials and intensify our contact with our customers<br />
and partners”.<br />
Symbolic handover of the key<br />
At the opening ceremony on June 7, MAN Board Member<br />
and CEO of MAN <strong>Ferrostaal</strong>, Dr. Mitscherlich, handed over<br />
the symbolic key to Thomas Buschmann. More than 200<br />
guests attended the ceremony and celebrated the new Beijing<br />
MAN House. The Chinese press also showed great interest<br />
in the event.<br />
New Trucknology Centre<br />
The Chinese market really does offer great opportunities for<br />
the group. Only last year, MAN strengthened its commercialvehicle<br />
business by opening a Trucknology Centre near Beijing<br />
Airport. This service centre for commercial vehicles is<br />
designed according to the most modern international spec-<br />
Ultra-modern: the new MAN House in Beijing<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
At the opening ceremony on June 7, the CEO of MAN <strong>Ferrostaal</strong>, Dr. Matthias Mitscherlich, delivered the opening address to more than 200 guests.<br />
ifications and sets new standards for similar facilities in the<br />
Asian region. At the beginning of 2007, the licence agreements<br />
with local partners for the construction of MAN Diesel<br />
two-stroke engines were also extended and an additional<br />
licence agreement was concluded. And in Changzhou, in<br />
the province of Jiangsu, MAN TURBO constructed a production<br />
and service unit.<br />
Local specialists<br />
The new MAN House in Beijing contributes greatly to facilitating<br />
the work of the group in China, says Thomas<br />
Buschmann: “When someone becomes aware of us for the<br />
first time or wishes to extend their existing business contacts<br />
with us to other areas of business, they only have to approach<br />
one central location. When someone comes to us,<br />
they are supplied with qualified information on the various<br />
possibilities of cooperation. If more details are needed, the<br />
specialists from the different subgroups take over”.<br />
MAN <strong>Ferrostaal</strong> brings partners from China and other countries<br />
together and, in order to promote sales to China, has<br />
“We are committed to China” was the motto of the opening ceremony:<br />
MAN has been supplying the Chinese industry for more than 100 years.<br />
for many years cooperated with high-profile machine constructors<br />
like Achenbach Buschhütten, Schuler and the<br />
Swiss firm ERNST GROB AG. In view of the tangible improvements<br />
in quality, the collaboration with Chinese suppliers<br />
and service providers from various branches of industry for<br />
the supply of other MAN <strong>Ferrostaal</strong> markets will be greatly<br />
extended in the future.<br />
You will find the homepage of the MAN House Beijing at:<br />
www.man-china.com.<br />
23
24 <strong>THE</strong> <strong>ECHO</strong> August 2007 25<br />
ProjECtS<br />
Record investment in Trinidad
26 DAS <strong>THE</strong> <strong>ECHO</strong> JULI/2007 August 2007<br />
27<br />
ProjECtS<br />
Economic boom<br />
in the island state<br />
MAN <strong>Ferrostaal</strong> is currently working on a billion-dollar contract for<br />
Methanol Holdings Trinidad (MHTL). On this Caribbean island, the<br />
company is constructing a plant complex for the production of fertilisers<br />
and melamine. It consists of seven different plants and represents an<br />
investment volume of 1.5 billion US dollars – the largest purely private<br />
investment on the island to date.<br />
From 2009, in the new petrochemical complex in<br />
Trinidad, 4,300 tonnes of liquid fertiliser and 180<br />
tonnes of melamine will be manufactured daily. At<br />
two nearby ports, the two products will be loaded on to<br />
tanker or container ships and exported – mainly to the USA<br />
and Europe. The source material, natural gas, with which<br />
the plants will be supplied, is present in large reserves off<br />
the coast of Trinidad. A number of private and state enterprises<br />
will extract the gas and supply it for the petrochemical<br />
industry, for gas liquefaction, for the steel industry and<br />
for the island’s power generation. On the basis of today’s<br />
total consumption, the verified and surveyed reserves will<br />
last for about 50 years – not counting newly discovered and<br />
suspected gas fields.<br />
For the new petrochemical complex, MAN <strong>Ferrostaal</strong> is responsible<br />
for the complete construction of the seven plants,<br />
that is, for the engineering, the delivery of all components<br />
and the assembly. The company undertakes the guarantee<br />
for punctual completion and adherence to costs. Since all<br />
the plants constructed in Trinidad to date by MAN <strong>Ferrostaal</strong><br />
have been completed within the planned time and<br />
budget, in some cases even before time, the prospects for<br />
successful progress in the project are good.<br />
The construction time for the whole industrial complex is<br />
set at 34 months. The first section of the plants, in which<br />
ammonia will be produced, should be completed and ready<br />
to start production after 28 months. Construction of the<br />
second section of the plant complex, the plant for the manufacture<br />
of UAN (urea and ammonium nitrate) and two<br />
melamine plants, will then be completed by 2009. Melamine<br />
is a powder that is further processed to produce melamine<br />
resins. These resins are primarily used for surface finishing<br />
in the automobile and furniture industries and as<br />
an adhesive in the wood industry.<br />
Greater value creation in the country<br />
The new plant complex is very important for the operating<br />
company MHTL, as it will extend its range of products.<br />
Whereas its activities have hitherto concentrated on the<br />
production of methanol, melamine and UAN represent a<br />
much greater added value for the source material natural<br />
gas. This is good, not only for the firm, but also for the<br />
country, since, with the increasing creation of value, additional<br />
jobs are also created.<br />
The new plant complex is an important step in Trinidad’s<br />
progress to becoming an industrial nation. Trinidad & Tobago<br />
wants to officially achieve this status by 2020. While<br />
in the 70s the country mainly supported upstream industry<br />
(which concentrates on the extraction of mineral oil and<br />
natural gas), the focus has now moved to downstream<br />
NH 3<br />
NA<br />
Urea<br />
UAN<br />
Downstream expertise<br />
H 2<br />
AN<br />
Melamine<br />
AUM<br />
MEOH<br />
Formaldehyde<br />
DME<br />
MTO<br />
M to power<br />
industry (in which the natural gas is processed and refined),<br />
for this is much more profitable for the country.<br />
With this plant complex, MAN <strong>Ferrostaal</strong> is also expanding<br />
its own product range. While, in the field of petrochemicals,<br />
the company previously mainly constructed plants for the<br />
manufacture of ammonia, methanol, fuels and basic chemicals,<br />
the two basic materials fertiliser and melamine have<br />
now been added. In 2006, in order to realise this step, MAN<br />
<strong>Ferrostaal</strong> had acquired the Italian-Luxembourg firm Eurotecnica,<br />
a company that possessed the only licence available<br />
at the time for the production of melamine.<br />
Natural gas<br />
GTL<br />
Acetic acid<br />
MTG<br />
Fuel cell<br />
(Only C 2 ethane)<br />
LNG Ethylene<br />
Polyethylene
28<br />
ProjECtS<br />
Natural<br />
gas<br />
AUM ammonia plant<br />
1,850 t/d NH3 and 2,270 t/d CO2<br />
839 t/d NH3<br />
903 t/d NH3 and<br />
1306 t/d CO2<br />
426 t/d NH3<br />
Urea solution<br />
plant<br />
2,076 t/d urea<br />
as 70% solution<br />
106 t/d NH3 and 8 t/d CO2<br />
The structure of the new plant complex<br />
The structure of the plant complex follows the intensity of<br />
the added value. Its construction is carried out according to<br />
state-of-the-art environmental and safety guidelines. From<br />
the raw material natural gas, ammonia (NH3) is first recovered.<br />
This, together with the carbon dioxide (CO2) also produced,<br />
is then converted to urea solution ((NH2)2CO). Urea<br />
is the source material for both fertiliser and melamine. In<br />
the UAN plant, nitric acid (HNO3) is first produced from ammonia<br />
and atmospheric oxygen. In a second process step,<br />
this is neutralised with ammonia, producing ammonium ni-<br />
Nitric acid plant<br />
1,500 t/d (100%)<br />
2,500 t/d (60%)<br />
413 t/d NH3<br />
Off solution,<br />
equivalent to 280 t/d NH3,<br />
230 t/d CO2<br />
and rest water<br />
576 t/d urea<br />
as 70% solution<br />
1,500 t/d<br />
nitric acid<br />
as 60% solution<br />
Melamine plant 1<br />
90 t/d Melamine<br />
UAN plant<br />
Ammonium nitrate<br />
solution plant<br />
1905 t/d (100%)<br />
1,500 t/d urea as 70% solution<br />
Melamine plant 2<br />
90 t/d Melamine<br />
trate (NH4NO3). This is then mixed with the urea solution<br />
to make UAN, one of the main products of the plant complex.<br />
UAN is characterised by a high content of nitrogen (typically<br />
32 per cent by weight).<br />
The second plant section is used for the manufacture of<br />
melamine. From a chemical point of view, melamine has a<br />
relatively simple structure. Here, “only” pure urea, recovered<br />
from the thickened urea solution from the urea plant, reacts<br />
under pressure and temperature to form melamine. Ammo-<br />
1,905 t/d<br />
AN as 91%<br />
solution<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
UAN mixing tank<br />
4,274 t/d (UAN 32)<br />
UAN-32 solution<br />
Melamine powder<br />
Cold ammonia<br />
Normal 4,274 t/d<br />
Design 4,300 t/d<br />
Normal 180 t/d<br />
Design 180 t/d<br />
Normal 0 t/d<br />
Design 1,850 t/d<br />
nia and carbon dioxide are added to the process in small<br />
quantities for regulation of the chemical balance and for purification<br />
of the reaction product. A feature of Eurotecnica’s<br />
melamine process is that all the ammonia and carbon dioxide<br />
produced in the reaction and added to the process is returned<br />
to the urea process as input material. The technical<br />
process behind this, however, is very complex.<br />
29<br />
Chemical manufacturing processes<br />
AMMONIA MANUFACTURE<br />
KAAP Process (KBR, USA)<br />
(Pressure = 90 barg and temperature = 400 °C)<br />
3 H 2 + N 2 2 NH 3 + heat of reaction<br />
UREA MANUFACTURE<br />
ACES21 Process (Toyo Engineering Corporation, Japan)<br />
(Pressure = 150 barg and temperature = 180 °C)<br />
2NH 3 + CO 2 (NH 2 ) 2 CO + H 2 O - heat of reaction<br />
UAN MANUFACTURE<br />
A) NITRIC ACID MANUFACTURE<br />
Dual Pressure Process (Uhde GmbH, Germany)<br />
(Pressure = 4–6/10–12 barg and temperature = 890 °C)<br />
(I) 4 NH 3 + 5 O 2 4 NO + 6 H 2 O<br />
(II) 2 NO + O 2 2 NO 2<br />
(III) 3 NO 2 + H 2 O 2 HNO 3 + NO<br />
b) AMMONIUM NITRATE MANUFACTURE<br />
Vacuum Neutralisation (Uhde GmbH, Germany)<br />
(Pressure = 0.35 bar abs. and maximum temperature = 145 °C)<br />
NH 3 (gas) + HNO 3 (aqueous)<br />
NH 4 NO 3 (aqueous) + heat of reaction<br />
C) AMMONIUM NITRATE-UREA SOLUTION (UAN)<br />
Mixing Unit (Uhde GmbH, Germany)<br />
Ammonium nitrate solution + urea solution UAN<br />
MELAMINE MANUFACTURE<br />
Non-Catalytic Process (Eurotecnica, Italy)<br />
(Pressure = 80 barg and temperature = 380 °C)<br />
6 (NH 2 ) 2 CO C 3 H 6 N 6 (Melamine) + 3 CO 2 + 6 NH 3 - heat<br />
of reaction (return of NH 3 and CO 2 to the urea plant)<br />
H<br />
N +<br />
H H<br />
H<br />
H H<br />
O<br />
C<br />
N<br />
H<br />
H2 N NH 2<br />
O<br />
N +<br />
- O OH<br />
+ O -<br />
N<br />
N<br />
O O<br />
2 HN-C C-NH 2<br />
N N<br />
C<br />
NH 2
30 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
31<br />
ProjECtS<br />
Products and Markets<br />
Distillation columns of a methanol plant<br />
The demand for fertilisers is developing disproportionately<br />
to the growth in population. The faster the population<br />
grows (currently approximately 1% per year), the greater the<br />
demand for food and the more that has to be grown. On top<br />
of this, there is the increasing prosperity that, in many<br />
countries, leads to an increased consumption of meat and<br />
so to more intensive cultivation of feed crops. The rule of<br />
thumb here is that the consumption of meat takes ten times<br />
as many plants for feeding the animals as the consumption<br />
of a vegetarian diet. Both these developments taken together<br />
result in a sharp rise in the demand for fertilisers. In many<br />
countries, the effect of state support for the production of<br />
biofuels such as biodiesel and bioethanol is also an increase<br />
in demand in the fertiliser market.<br />
UAN currently has a share of about 15% of the market for nitrogen<br />
fertilisers. The reason why the share is still relatively<br />
small is that UAN is a liquid and, in most cases, can therefore<br />
only be applied where irrigation systems already exist.<br />
Urea, on the other hand, an intermediate product of the<br />
plant and also a fertiliser, is a solid and can be applied without<br />
an irrigation system. In the long term, it may be anticipated<br />
that the market share of UAN will grow as the modernisation<br />
of agricultural production processes in emerging<br />
and developing countries increases, for liquid fertilisers can<br />
also be mixed with other substances, such as pesticides,<br />
thus reducing the number of applications required. Climate<br />
change is also leading to an increase in the use of irrigation<br />
systems, as many areas are suffering from reduced rainfall<br />
in the summer.<br />
Over three-quarters of the worldwide production of UAN (16<br />
million tonnes per year) are sold in the USA and France. The<br />
largest buyer is the USA. But the demand from Australia and<br />
Argentina is currently growing very quickly, even if from a<br />
low base level. The largest exporter of UAN is Russia. There,<br />
the gas price has up to now been relatively low, so the manufacture<br />
of UAN is cheap. In the USA itself, the supply can<br />
be expected to fall in the years to come. Some of the production<br />
plants are being closed due to their age, and the construction<br />
of new plants is unlikely because of the high<br />
price of gas. Part of this gap is to be filled by the new plant<br />
in Trinidad.<br />
ProjECtS<br />
Versatile in use<br />
Melamine resins are resistant to UV light, fire, water, impact<br />
and scratches and are therefore suitable for a wide range of<br />
surface finishes. Melamine resins are important for the<br />
wood and furniture industry. In the production of laminate<br />
flooring, for example, the actual floor surface is melamine<br />
resin. It is also frequently used in the wood industry as an<br />
adhesive. Melamine resins also have high electrical resistance,<br />
so they are used as insulating elements in the electrical<br />
industry. The textile industry also makes use of resins to<br />
make textiles resistant to water and creasing. In the automobile<br />
industry, the resistance of melamine to water, scratches<br />
and impacts is valued, especially in the paints sector.<br />
Melamine is used for surface finishing.<br />
The demand for melamine is currently a little over a million<br />
tonnes per year and is rising, on average, at an annual<br />
rate of about six per cent. Against this background, the demand<br />
is expected to double by the year 2020. The plant in<br />
Trinidad is intended to serve both the US American and the<br />
European markets. For the US market, melamine from<br />
Trinidad is attractive because US production plants have<br />
had to be closed because of the high price of natural gas.<br />
The low manufacturing costs in Trinidad also make the<br />
product interesting for the European market. Neither does<br />
the construction of new melamine plants in China (some<br />
on the basis of a licence from Eurotecnica), the United Arab<br />
Emirates or Qatar make much difference here. While the<br />
gas prices are also low there, export from Asia or the Near<br />
East is less attractive because of the high transport costs.
32 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
33<br />
ProjECtS<br />
Urea<br />
Ammonia<br />
Gas<br />
Heat<br />
Exhaust gas<br />
condensate<br />
Reactor Cooling CO2<br />
wash<br />
Hydrolysis<br />
Burner<br />
Condenser<br />
Fresh water<br />
Melamine technology<br />
The process for the production of melamine<br />
used in the new plant in Trinidad<br />
comes from Eurotecnica, a firm based<br />
in Luxembourg and Milan. Altogether,<br />
about a third of the world production<br />
of melamine is based on licences from<br />
Eurotecnica. This one-step process<br />
Cleaning Crystalliser Melamine<br />
separation<br />
Ammonia<br />
Ammonia<br />
column<br />
which works without catalysts is characterised<br />
by high reliability. In the 70s,<br />
Eurotecnica used a licence from the<br />
American company Allied Signal to<br />
construct its first melamine plant. After<br />
acquisition of the patent rights<br />
from Allied Signal, Eurotecnica extend-<br />
Water<br />
flow<br />
By-product<br />
separation<br />
Melamine<br />
drying<br />
Water<br />
treatment<br />
Melamine<br />
Wastewater<br />
ed and improved the process. In 2006,<br />
MAN <strong>Ferrostaal</strong> acquired Eurotecnica<br />
and integrated it into its own activities.<br />
Parts of a methanol plant in Trinidad<br />
Cooperation with partners<br />
Since the completion of the first methanol plant in 1993,<br />
MAN <strong>Ferrostaal</strong> has now constructed five more ammonia<br />
and methanol plants in Trinidad. In 2009, when the new<br />
plant complex is to be completed, the number of plants<br />
built by MAN <strong>Ferrostaal</strong> in Trinidad will have risen to 13 –<br />
within 16 years.<br />
With this new plant complex, MAN <strong>Ferrostaal</strong> is continuing<br />
a close collaboration with partners of many years’ standing.<br />
The construction and assembly work is undertaken by Proman<br />
AG, a firm based in Trinidad. The most important partners<br />
for the engineering are Uhde, Toyo, Eurotecnica and<br />
KBR, which are also the technology providers for important<br />
components. The finance has been raised with the help of<br />
the Kreditanstalt für Wiederaufbau (the German state-owned<br />
development bank, KfW) and Hermes. Another important<br />
partner is the National Gas Company (NGC) in Trinidad,<br />
which provides the gas. Long-term supply contracts exist between<br />
the NGC and the MHTL, so the operating costs of the<br />
plant complex, the greatest part of which is represented by<br />
the gas, are easy to calculate. As in the case of previous<br />
projects, there is a link between the price of natural gas and<br />
the price of the finished products, which ensures that the<br />
NGC profits from very high prices for the end products. The<br />
plants are operated by the Trinidadian company IPSL (Industrial<br />
Plant Services Ltd.), while the German firm Helm AG<br />
looks after the product marketing in the USA and Europe.<br />
Financing<br />
With an investment volume of 1.5 billion US dollars, the new<br />
plant complex represents the largest private investment in<br />
the country. Of this, approximately 990 million US dollars<br />
are covered by export credit guarantees, the order value for<br />
MAN <strong>Ferrostaal</strong> amounting to 1 billion US dollars. The financing<br />
of the complex is based, because of the high volume,<br />
on a combination of elements of project and corporate<br />
financing.<br />
In the case of the first plant, which MAN <strong>Ferrostaal</strong> constructed<br />
for the MHTL or its legal predecessor, CMC (Caribbean<br />
Methanol Corporation), no third party securities<br />
could be provided to the creditors. Therefore, the company<br />
had to develop a very specific financing model. In order<br />
to realise this, financing partners were needed who carefully<br />
analysed the risks and chances of the project. In the end,<br />
the financing was largely based on asset values yet to be<br />
created and an anticipated future cash flow from operation<br />
of the plant.<br />
The basic conditions in Trinidad were right: a low natural<br />
gas price, a geographically favourable position for the supply<br />
of the major markets, Europe and the USA, low taxes,<br />
non-existent customs barriers and qualified local manpower.<br />
So, since MAN <strong>Ferrostaal</strong>’s first plant in Trinidad, the<br />
Kreditanstalt für Wiederaufbau and Hermes have been on<br />
board as credit guarantors. Since 1993, the first methanol<br />
plant, like all the projects following it, has been operating<br />
at a profit.<br />
MAN <strong>Ferrostaal</strong> is also an investor, through its participation<br />
in the operating company, and therefore has a great interest<br />
in the reliable and profitable performance of the plant.<br />
With this business model, in which the general contractor<br />
becomes a partner, MAN <strong>Ferrostaal</strong> differs substantially<br />
from most of its competitors.
34<br />
ProjECtS<br />
Liquid natural gas 56%<br />
Methanol 15%<br />
Natural gas use in Trinidad and Tobago in 2006<br />
Ammonia 15%<br />
Other trade &<br />
industry 9%<br />
Power generation 5%<br />
Natural gas – the gold of the Caribbean<br />
Natural gas is an extremely versatile resource which, in the<br />
form of its key precursors ammonia, methanol and ethylene,<br />
can be further processed into hundreds of different<br />
end products.<br />
It is frequently transported to other regions in the form of<br />
liquid gas, where it is converted back into gas and then<br />
used as fuel or as source material for the local downstream<br />
Petroleum<br />
Industry 39.3%<br />
GDP generated in Trinidad and Tobago in 2005<br />
industry. Nowadays in Trinidad, natural gas is mainly used<br />
for liquefaction and subsequent export. This means, however,<br />
that only a much smaller fraction of the value of the<br />
natural gas is used for the benefit of the country than<br />
might otherwise be the case.<br />
In Trinidad, gas liquefaction plants (LNG – Liquid Natural<br />
Gas) compete with petrochemical plants. Rampersad Motilal,<br />
CEO of MHTL, fears that the liquefaction of gas and<br />
its subsequent sale as LNG could restrict the availability of<br />
natural gas for the petrochemical industry in Trinidad.<br />
While he does not question the benefits of gas liquefaction<br />
for the country, he believes that a strong petrochemical industry<br />
would bring greater long-term benefits for the local<br />
economy: “We believe that the revenue from petrochemical<br />
plants is considerably more beneficial than that<br />
from LNG plants, especially when the effects in the whole<br />
value-added chain are taken into account”.<br />
In actual fact, the results of the analyses are clear. An LNG<br />
plant requires a similar level of investment as a fertiliser/melamine<br />
complex, but consumes ten times as much<br />
natural gas. On the other hand, the revenue which can be<br />
generated from UAN, for example, assuming the same<br />
Natural gas tanks<br />
Agriculture 0.5%<br />
Construction and quarrying 8%<br />
Manufacturing industry 7.3%<br />
Financal services,<br />
real estate 14.3%<br />
Other services 30.5%<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Jobs<br />
Indirect jobs<br />
Permanent staff<br />
Sale price<br />
in USD/MT<br />
0<br />
70<br />
208<br />
280<br />
260<br />
200 400 600 800 1000 1200<br />
Liquid natural gas in comparison with the ammonia chain<br />
MAN <strong>Ferrostaal</strong> has made a significant contribution to the positive economic development of the country with its investments.<br />
1050<br />
1000+<br />
level of natural gas consumption, is several times greater<br />
than the yield generated by liquid gas. The employment<br />
situation should also be considered: in a petrochemical<br />
complex such as the new UAN/melamine plant,<br />
about three times as many people are employed as in an<br />
Value added<br />
in USD/mmBTU<br />
Use of liquid<br />
natural gas<br />
in mmBTU/MT<br />
Ammonia + Urea + Melamine Liquid natural gas<br />
0<br />
0*<br />
4<br />
13.5<br />
*No additional use of gas, calculation of liquid gas consumption not possible because of the<br />
product mix<br />
LNG plant. This is not even considering the jobs which are<br />
created indirectly. In the final analysis, the sustainable<br />
benefits of the new plant complex for Trinidad‘s economy<br />
are extremely positive.<br />
52<br />
10 20 30 40 50 60<br />
35
BAHAMAS<br />
36 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
37<br />
ProjECtS<br />
Trinidad – the country and its people<br />
The islands of Trinidad and Tobago form the Caribbean island<br />
state of the same name. The climate is tropical, with<br />
average temperatures of around 30 degrees. Unlike most<br />
other Caribbean islands, Trinidad and Tobago lie to the<br />
south of the hurricane zone. Nearly all of the population<br />
speaks English, while Spanish is widely spoken as a second<br />
language. Trinidad is the most industrialised island in the<br />
Caribbean, due mainly to the extraction of mineral oil. Other<br />
important sectors of industry include foodstuffs and<br />
light industry for local requirements and supply of the<br />
neighbouring islands. The service sector is characterised by<br />
financial service providers such as banks and insurance<br />
companies. The national sport on both islands is cricket.<br />
Trinidad is also famous for its carnival, which is comparable<br />
in size and colour to the one in Rio de Janeiro. The national<br />
musical instrument is the steel drum.<br />
14,000<br />
12,000<br />
10,000<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
3,487<br />
3,123<br />
GDP per capita (in USD)<br />
2,656<br />
2,164<br />
3,654<br />
4,789<br />
2004 2005<br />
5,427<br />
4,354<br />
10,509<br />
12,625<br />
Cuba Colombia Brazil Venezuela Trinidad<br />
History<br />
CUBA<br />
JAMAICA<br />
Originally colonized by Spain, the islands came under British<br />
rule at the beginning of the 19th century. The sugar industry<br />
on the islands was dealt a severe blow by the liberation<br />
of slaves in 1834. Between 1845 and 1917, these were replaced<br />
by contract workers from India, leading to a boom<br />
both in sugar production and in the cocoa industry. With<br />
the discovery of oil on Trinidad in 1910, a further important<br />
export commodity was added. Trinidad gained its independence<br />
in 1962. Primarily thanks to the production and<br />
processing of mineral oil and natural gas, the country is now<br />
one of the most prosperous of the Caribbean States. Tourism,<br />
which is mainly concentrated on Tobago, is set for expansion<br />
and continues to grow.<br />
AREA: 5, 100 km 2<br />
POPULATION: 1.3 million<br />
POLITICAL SYSTEM: Parliamentary democracy<br />
PRIME MINISTER: Patrick Manning<br />
GOvERNING PARTY: People’s National Movement<br />
The foreign relations of the country are stable<br />
OFFICIAL LANGUAGE: English<br />
INDUSTRY: Oil and gas industries<br />
(main source of revenue),<br />
foodstuffs, services<br />
ANNUAL RATE OF GROWTH: 7.5% on average<br />
in the last 5 years<br />
NATURAL GAS RESOURCES: About 19 billion cubic feet<br />
have been confirmed; plus about<br />
14 billion cubic feet of identified<br />
and potential reserves<br />
HAITI<br />
Golf of Paria<br />
VENEZUELA<br />
DOM. REPUBLIC<br />
The Caribbean<br />
VENEZUELA<br />
Caribbean Sea<br />
Port-of-Spain<br />
San Fernando<br />
PUERTO RICO<br />
Arima<br />
Point Lisas<br />
BARBUDA<br />
ANTIGUA<br />
TOBAGO<br />
TRINIDAD<br />
GUADELOUPE<br />
MARTINIqUE<br />
TOBAGO<br />
The carnival in Trinidad is just as legendary as the one in Rio de Janeiro.<br />
TRINIDAD<br />
Atlantic Ocean
38<br />
ProjECtS<br />
Plataforma Solar de Almería, parabolic trough process in the background and Fresnel technology in the foreground<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Harnessing the sun<br />
39
40<br />
ProjECtS<br />
Sunny days ahead for field trials<br />
Fossil raw materials for power production are gradually running out. In<br />
future, we will require renewable energy sources. Theoretically, the sun<br />
alone can supply the whole world with energy. Just one per cent of the area<br />
of our deserts, occupied by solarthermal power plants, would be sufficient<br />
to meet the entire electricity needs of mankind. MAN <strong>Ferrostaal</strong> started the<br />
test phase of a new solar power plant in Almería in southern Spain in July.<br />
The new technology promises to be extremely cost-effective and is set to be<br />
market-ready in two years.<br />
Flat mirrors – the new generation of solarthermal power plants<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Arevolution is taking place in the energy market. Wind,<br />
water and sun are the new shooting stars. According<br />
to a study by the German Aerospace Centre (DLR),<br />
Europe will be able to draw 80 per cent of its power from renewable<br />
energy sources and reduce carbon dioxide emissions<br />
by 70 per cent by the middle of this century. There is<br />
a particularly bright future in store for solarthermal power<br />
plants. “In the Mediterranean region, they could supply<br />
twice as much power as all the wind, photovoltaic, biomass<br />
and geothermal systems together,” says Jürgen Beigel who is<br />
responsible for Solarthermal Power Projects at MAN <strong>Ferrostaal</strong>.<br />
The Bank Sarasin, one of Switzerland’s leading private<br />
banks, predicts rapid expansion. There are currently<br />
about 50 solar power plants in operation worldwide. In the<br />
coming ten years, the number is expected to rise to over<br />
2,000. Government-sponsored environmental and energy<br />
programmes are increasingly supporting solar power – so<br />
rapid growth is also expected in the years to come. MAN <strong>Ferrostaal</strong><br />
is keen to take advantage of this enormous potential.<br />
As a plant constructor, the firm is in a good position to exert<br />
a major influence on the development of this market:<br />
MAN <strong>Ferrostaal</strong> is not tied to specific technologies and possesses<br />
all the know-how required for the construction of solar<br />
power plants.<br />
New technology for harnessing the sun economically<br />
There is one specific problem in the production of large<br />
quantities of electricity from solar energy: conventional<br />
technology is very cost-intensive. With parabolic mirrors or<br />
so-called solar towers, viable generation of electricity is<br />
scarcely possible without subsidies at current market prices.<br />
At present, solarthermally generated power is about 10 to<br />
15 eurocents more expensive per kilowatt-hour than fossilgenerated<br />
power. Photovoltaic units, common on the roofs<br />
of houses, are unsuitable for producing electricity in largescale<br />
power plants. MAN <strong>Ferrostaal</strong> is therefore pursuing a<br />
new technology: In Almería, Spain’s sunniest city, the first<br />
solarthermal power plant using Fresnel mirrors has been in<br />
the test phase since mid-July. The pilot plant is 100 metres<br />
long and 25 metres wide – the same size as a single typical<br />
power plant collector module. On a mirror surface of about<br />
1,500 m², it is planned that this will produce a megawatt of<br />
thermal power. Fresnel technology, which shall demonstrate<br />
its suitability for routine use in Almería, is characterised by<br />
particularly low manufacturing costs as it works with flat<br />
mirrors rather than curved or parabolic collectors. It is mainly<br />
constructed using inexpensive standard components,<br />
which are also available worldwide. Its operation is also relatively<br />
inexpensive. MAN <strong>Ferrostaal</strong> is therefore expecting<br />
the pilot operation, which is planned to last 18 months, to be<br />
highly cost-effective. The aim of the plant is to show that<br />
this method of power production is cheap and also to<br />
achieve commercialisation of the Fresnel technology from<br />
2009 onwards.<br />
Partnership for success<br />
MAN <strong>Ferrostaal</strong> brings essential experience in the construction<br />
and operation of a wide variety of power plants to the<br />
project, thus minimising the risks of an unfavourable development.<br />
The pilot plant on the site of the Plataforma Solar<br />
de Almería research centre was jointly constructed with<br />
the German Solar Power Group (SPG), in which MAN <strong>Ferrostaal</strong><br />
owns a 25 per cent stake. SPG’s Fresnel concept has<br />
proven itself, in two previous research and development<br />
projects, to be an advanced and economically interesting<br />
option for use in solarthermal power plants. The company<br />
gained valuable experience at a Fresnel pilot plant in Belgium:<br />
a 2,500 m² mirror panel was constructed and its design<br />
continually improved over a number of years. Its stake<br />
in SPG assures MAN <strong>Ferrostaal</strong> access to one of the most innovative<br />
power production technologies currently available.<br />
Both firms are now jointly pursuing the goal of making<br />
the Fresnel collector suitable for use in commercial<br />
steam power plants. The investment volume for the pilot<br />
power plant is approximately 2.6 million euros. MAN <strong>Ferrostaal</strong><br />
is supporting the construction and operation of the<br />
plant as both investor and project manager.<br />
From field trial to proof<br />
The scientific supervision of the pilot operation is being undertaken<br />
by leading research facilities: the Fraunhofer Institute<br />
for Solar Energy Systems and the German Aerospace<br />
Centre (DLR). In this manner, an experiment-based validation<br />
of the Fresnel concept can be attained. Reliable figures<br />
41
42<br />
ProjECtS<br />
and data are a precondition for verification of promising future<br />
prospects, thus helping to create confidence in the<br />
technology on the part of future investors. On the basis of<br />
measurements at the pilot plant, the Fresnel technology is<br />
set to be further optimised, enabling it to be used as soon<br />
as possible in large-scale plants. Various countries from the<br />
Mediterranean region have already expressed an interest.<br />
MAN <strong>Ferrostaal</strong> wishes to gradually develop this business<br />
Opening ceremony for the pilot plant in Almería, Spain, in July 2007<br />
area. However, for Jürgen Beigel, Executive Director Solar at<br />
MAN <strong>Ferrostaal</strong>, other values also play a role: “Solar power<br />
plants along the north coast of Africa can generate power<br />
for the whole of Europe and create better living conditions<br />
for the people of Africa,” he says, describing his vision.<br />
“Moreover, environmentally friendly power generation also<br />
advances the cause of climate protection – a good thing for<br />
all of us”.<br />
DAS <strong>ECHO</strong> August 2007<br />
Suitability for solarthermal power plants: ■ excellent ■ good ■ suitable ■ unsuitable<br />
“Solar power plants along the north coast of Africa can generate power for the whole of Europe,” says Jürgen Beigel, MAN <strong>Ferrostaal</strong> Executive Director Solar.<br />
Solar power from the Fresnel collector<br />
Fresnel technology, which is now being tested for the first<br />
time under real conditions, is relatively simple in its production,<br />
its construction and its operation. The mirrors which<br />
capture and concentrate the sun’s rays are flat. Set up in a<br />
line, they form long movable mirror arrays. Arranged in parallel,<br />
they direct the radiant energy of the sun onto a pipe<br />
which is located eight metres above the mirrors. This absorber<br />
pipe contains water which is heated to temperatures of<br />
up to 450 degrees Celsius. This generates steam which, by<br />
means of a steam turbine, is converted into electrical energy<br />
– in very much the same way as in a conventional power<br />
station. Fresnel collectors are advanced in many respects:<br />
they are not affected by wind and require less ground area<br />
than previous solar collectors. For a demonstration of this<br />
technology, Almería in southern Spain offers the best conditions<br />
– it enjoys 3,000 hours of sunshine per year.<br />
How Fresnel technology works<br />
Sun rays<br />
43<br />
Secondary reflector<br />
Primary Fresnel<br />
reflector<br />
Absorber pipe
44<br />
ProjECtS<br />
“Solar power will<br />
become much cheaper”<br />
Professor Robert Pitz-Paal, Head of Solar Research at the German Aerospace<br />
Centre, on cost-effective solar power and power imports from Africa<br />
Mr. Pitz-Paal, you predict a bright future for “Concentrating<br />
Solar Power Technology”. What does that mean exactly?<br />
Hold a magnifying glass between the sun and a sheet of paper<br />
– you can start a fire like that. Concentrating Solar Power<br />
Technology works similarly: solar radiation is concentrated<br />
and, using mirror technology, such high temperatures<br />
are generated at a focal point that the heat can be used, for<br />
example, to drive a conventional steam turbine power<br />
plant.<br />
What technologies already exist for this purpose? How<br />
do they differ from each other?<br />
In the case of parabolic trough collectors, the concentrator<br />
is a trough in the shape of a parabola, along the focus line<br />
of which a pipe is heated. The new linear Fresnel systems<br />
are closely related to these. They represent a simplified approach<br />
– the parabolic trough is divided into slices, so to<br />
speak, and arranged on one plane. Then we also have the socalled<br />
tower power plants with central receivers. In this case,<br />
mirrors are moved to follow the sun and concentrate the ra-<br />
diation at the top of a tower equipped with a heat exchanger.<br />
There is also a system with parabolic dishes fitted with a<br />
radiation receiver at the focal point which passes the solar<br />
energy directly to an interfaced engine. Collectors of this<br />
type, however, can only generate a few tens of kilowatts.<br />
That is not very much. Which technologies are suitable<br />
for large-scale power plants?<br />
Parabolic trough collectors are already relatively well established.<br />
They have been used commercially in the USA since<br />
the mid-80s. Early this year, the first commercial tower power<br />
plant went into operation, a 10 megawatt plant in Seville.<br />
All the other technologies are still in the pilot phase – we<br />
can’t really speak of commercial use yet.<br />
What does the economic viability of solarthermal power<br />
plants depend on?<br />
One essential factor is the location – the incident solar radiation<br />
which occurs there. The more radiation, the better. The<br />
differences are great. In Germany, solar radiation is not even<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
half as high as in southern Spain. In the Californian desert<br />
it is another thirty or forty per cent higher - three times as<br />
high as in Germany in other words. That makes power generation<br />
much cheaper. Another important factor is the size<br />
of the solar power plant. The larger the plant, the more viable.<br />
And then, of course, the technology is also crucial - it<br />
has to be as inexpensive as possible while nevertheless being<br />
efficient. If higher temperatures can be achieved at lower<br />
cost, the viability can be increased. That is exactly the aim<br />
of Fresnel technology.<br />
How realistic are solar power plants in Africa? The sunshine<br />
is very reliable there.<br />
There have already been invitations to tender in various African<br />
states. In Algeria, construction of the first power plant<br />
is just starting. Morocco and Egypt will probably conclude<br />
contracts this year. The potential in North Africa is enormous.<br />
There are really large open spaces there, with very<br />
high radiation combined with a rapidly growing demand<br />
for energy. Particularly in the case of Africa, it is important<br />
that solar technology be developed quickly and for it to<br />
become competitive. This is due to the fact that in Africa,<br />
unlike here, there are very few subsidies for regenerative<br />
energy.<br />
If we bundle solar power generation for Europe in that<br />
region, are we not making ourselves as dependent in future<br />
on the sunny countries of Africa as we now are on<br />
the oil states?<br />
No. The DLR has carried out a series of studies. The scenarios<br />
assume that, by 2050, about 15 per cent of our energy requirements<br />
can be covered by solar imports from Africa and that<br />
the remainder will largely be directly generated in Europe using<br />
our own renewable resources. Today we are still 60 per<br />
cent dependent on imports.<br />
But renewable resources are still relatively expensive to<br />
produce, so there is little demand. According to dLR forecasts,<br />
production costs for solarthermal power plants will<br />
be halved by the year 2020. How will this be achieved?<br />
The Scientific Advisory Board to the German Federal Government<br />
estimates that, by the end of the century, energy requirements<br />
will mainly be met by solarthermal power plants.<br />
By the mass production of components, by the construction<br />
of very large plants and by the achievement of better<br />
efficiency by means of higher temperatures – for example<br />
by direct steam generation using Fresnel technology – and<br />
by the integration of large thermal energy storage units. All<br />
of these factors are already feasible. But until we have reached<br />
that stage, we will be dependent on subsidised markets.<br />
do firms who invest now have to accept that they will<br />
make losses in the initial phase?<br />
I think not because, fortunately, there are feed-in tariffs and<br />
other incentives. The market introduction of solar technology<br />
has political support, the additional costs for renew-<br />
able energies in Spain and Germany, for example, are borne<br />
by all power consumers – an essential mechanism which<br />
costs the individual citizen very little but which will benefit<br />
national economies in the long term, as prices for fossil<br />
fuels are rising.<br />
Example of the global energy<br />
mix in 2100<br />
Primary energy use (exajoules per year)<br />
1600<br />
1400<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
Geothermics<br />
Other renewables<br />
Solar collectors<br />
Solarthermal power plants<br />
and photovoltaic units<br />
Wind<br />
Biomass (modern)<br />
Biomass (traditional)<br />
Hydropower<br />
Gas<br />
Coal<br />
(Source: Wissenschaftlicher Beirat der Bundesregierung für globale Umweltveränderungen<br />
– Scientific Advisory Board to the German Federal Government on Global Environmental<br />
Change – 2003)<br />
Oil<br />
45
46 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
47<br />
ProjECtS<br />
Solar Millennium and<br />
MAN <strong>Ferrostaal</strong> found<br />
joint venture<br />
MAN <strong>Ferrostaal</strong> and Solar Millennium AG, Erlangen, are combining their<br />
forces to construct solarthermal power plants. MAN Solar Millennium is<br />
the name of the joint venture company founded in May for the construction<br />
of solarthermal power plants, in which both companies hold a 50 per<br />
cent stake. The aim is to establish the joint venture as the world’s leading<br />
supplier of solarthermal power plants.<br />
As a project developer and a provider of technology,<br />
Solar Millennium possesses technology which is already<br />
in commercial use and holds many years of<br />
experience in the development of solarthermal power<br />
plants. MAN <strong>Ferrostaal</strong>, as plant constructor and general<br />
contractor with financial expertise, is in a position to realise<br />
large-scale power plant projects. Solar Millennium and<br />
MAN <strong>Ferrostaal</strong> are combining their know-how in the development<br />
and construction of large-scale solar plants in a<br />
common company.<br />
In Spain, Solar Millennium developed the very first parabolic<br />
trough power units in Europe and two plants based<br />
on this technology are already under construction. Further<br />
projects with an output of several hundred megawatts are<br />
in the planning stage worldwide. Solar Millennium regards<br />
the joint company as a continuation of its strategy of optimally<br />
exploiting market potentials through cooperation<br />
with strong partners in the respective business areas.<br />
Through this joint venture, Solar Millennium is establishing<br />
an additional business area along the value-added chain<br />
involved in solarthermal power plants, thereby expanding<br />
its know-how to the areas of power plant construction and<br />
delivery. MAN <strong>Ferrostaal</strong> is contributing valuable experience<br />
as a general contractor and plant constructor as well<br />
as the requisite financial strength in international operations.<br />
MAN <strong>Ferrostaal</strong> views the founding of this company as an<br />
important step for the strategic realignment of the company.<br />
Within the plant construction segment, the company<br />
focuses on the areas of fuel and energy. Solarthermal power<br />
generation plays a key role in this strategy as it is set to<br />
become one of the strong growth markets of the future.<br />
With the support of Solar Millennium, MAN <strong>Ferrostaal</strong> can<br />
considerably shorten the time necessary to become established<br />
in the solar market.<br />
Share price development since IPO<br />
Jul Sep Nov Jan<br />
2006<br />
Mar May Jul Sep Nov Jan<br />
2007<br />
Parabolic trough power plant in California<br />
Mar May Jul<br />
Solarthermal power plants have the potential to make a major<br />
contribution to global energy supply in the future. Studies<br />
have confirmed their huge market potential. In a study<br />
commissioned by the Bundesministerium für Umwelt,<br />
Naturschutz und Reaktorsicherheit (Federal Ministry for<br />
the Environment, Nature Conservation and Nuclear Safety),<br />
the Deutsche Zentrum für Luft und Raumfahrt (the German<br />
Aerospace Centre, DLR) estimates that by 2050 solarthermal<br />
power plants in the Mediterranean region will<br />
be able to supply twice as much energy as wind, photovoltaic,<br />
biomass and geothermal energy combined. Thus MAN<br />
Solar Millennium is already meeting the challenge of future<br />
energy supply head on.<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
Solar field Steam turbine<br />
Storage unit<br />
How a parabolic trough power plant works.<br />
Solar<br />
steam<br />
generator<br />
Condenser
48<br />
Solar Power Group know-how: Fresnel collector with direct vaporisation<br />
Stake in the<br />
Solar Power Group<br />
MAN <strong>Ferrostaal</strong> continues to expand its solar business.<br />
Following the foundation of the joint venture with<br />
Solar Millennium AG, the company has acquired 25 per<br />
cent of the equity shares of the Solar Power Group GmbH<br />
(SPG). The SPG, which specialises in the development of<br />
technology and the engineering of solarthermal power<br />
plants based on Fresnel technology, is the partner for a new<br />
pilot plant in Almería, which was officially presented on<br />
July 9, 2007. Of the four solarthermal technologies available<br />
today, Fresnel technology is the least expensive to<br />
manufacture and, from 2008, is set to be used commercially<br />
in large-scale plants for the first time.<br />
SPG has already constructed and operated two Fresnel test<br />
plants and has advanced the technology greatly in recent<br />
years. Dr. Wolfgang Knothe, Member of the MAN <strong>Ferrostaal</strong><br />
Executive Board and responsible for the company’s plant<br />
construction business, regards the investment as a logical<br />
step for the expansion of this business: “We are acting on<br />
the basis that the solar sector will experience a major boost<br />
to growth in the years to come. We are therefore entering<br />
strategic alliances with technology leaders in the field of<br />
solar energy and, by extension, are positioning ourselves<br />
as a project developer and general contractor for the construction<br />
of solar thermal power plants”. On the basis of<br />
its worldwide organisation and its existing technology<br />
partnerships, MAN <strong>Ferrostaal</strong> is planning to supply such<br />
power plants in southern Europe, the Middle East, Africa,<br />
Asia and America.<br />
Regenerative energies and fuels play a major role in the<br />
corporate strategy of MAN <strong>Ferrostaal</strong>. The company is<br />
among the first globally active plant constructors to develop<br />
and construct power plants for the generation of solar<br />
power and plants for the production of biofuels. As in the<br />
case of other sectors related to plant construction, the<br />
company does not develop the technologies itself, but<br />
works with leading technology partners for the joint realisation<br />
of projects.<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
The pilot plant is located in Europe‘s sun belt.<br />
49
50<br />
ProjECtS<br />
The expanded Termozulia I power plant<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
“A milestone in<br />
Venezuela’s energy sector”<br />
On June 16, Venezuela’s President Chávez opened the Termozulia I gas<br />
and steam turbine power plant near Maracaibo after it had been expanded<br />
by MAN <strong>Ferrostaal</strong>. For ENELVEN, state-owned customer and<br />
operator of the plant, the power station represents a strategic milestone<br />
in the energy supply of the country.<br />
The prominent guest came from above. President<br />
Hugo Chávez’ helicopter hovered over and finally<br />
landed on the heliport especially constructed for the<br />
official commissioning of the gas and steam turbine power<br />
plant Termozulia I. From far away, he could already see the<br />
giant Venezuelan flag flying over the plant. Once on the<br />
ground, he was greeted by a red sea of supporters who had<br />
travelled there especially for the occasion. In the course of<br />
a comprehensive guided tour, the head of state had the<br />
plant functions explained to him by the customer, stateowned<br />
ENELVEN (Energía Electrica de Venezuela). He appeared<br />
to be visibly impressed by its complexity. The President<br />
allowed himself a good three and a half hours for his<br />
opening speech and pronounced the plant to be “a milestone<br />
for the energy sector in Venezuela”. The country was,<br />
in his view, not only reinforcing its independence from previous<br />
energy sources, which – as in the case of the hydroelectric<br />
power plant on the Guri Dam, did not always work<br />
reliably, but was also setting new technological standards.<br />
Very special guest: Venezuela’s President Hugo Chávez arriving at the<br />
plant. The head of state held a three and a half hour speech and praised<br />
Termozulia I as a “milestone for the energy sector in Venezuela”.<br />
51
Caribbean Sea<br />
PANAMA<br />
Panama<br />
ECUADOR<br />
Bogotá<br />
Maracaibo<br />
COLOMBIA<br />
San Cristobal<br />
Caracas<br />
BRAZIL<br />
VENEZUELA<br />
Puerto Ayscucho<br />
In actual fact, the Termozulia project was the first time in<br />
Venezuela that a plant had been converted from an opencycle<br />
to a combined-cycle power plant which, without addi-<br />
PERU<br />
tional fuel resources, achieved a much higher power output.<br />
In combined-cycle plants, gas turbine and steam turbine<br />
processes are combined. The finished plant feeds about 500<br />
megawatts, instead of the previous 320 megawatts, into the<br />
Venezuelan electricity grid. The total duration of the project<br />
was 30 months. Up to 1,300 workers were employed on the<br />
site, 90 per cent of whom came from the oil-rich region of<br />
La Cañada. The local share of added value in the Termozulia<br />
plant came in the form of 1,300 tonnes of steel structure,<br />
470 tonnes of raw material and assembly of a total of 15,000<br />
tonnes of material. The components came from Japan, Brazil<br />
and the Netherlands, among other sources.<br />
ENELVEN, the customer who commissioned the project, is<br />
set to play a key role in the national energy concept presented<br />
by Energy Minister Rafael Ramirez. The aim is a more efficient<br />
and more stable power supply for Venezuela. The<br />
population of this Latin American country still has to put<br />
up with bottlenecks in supply. The government is, however,<br />
keen to improve this state of affairs as quickly as possible.<br />
The enlargement of Termozulia is a step in this direction<br />
and when President Chávez left the hall in the evening, having<br />
thanked those responsible for the project, he was cheered<br />
and applauded by those present.<br />
MAN <strong>Ferrostaal</strong> is also involved in social projects in Venezuela,<br />
thereby contributing to an improvement in the standard<br />
of living. In this context, the company has equipped<br />
three schools in structurally weak districts with PCs and<br />
complete Internet access, providing the children with the<br />
opportunity to broaden their horizons. MAN <strong>Ferrostaal</strong> is<br />
currently organising an education workshop intended to facilitate<br />
youth access to structured education.<br />
The expanded Termozulia I power plant<br />
feeds 500 megawatts into the national grid.<br />
Tucupita<br />
GUyANA<br />
Georgetown<br />
Atlantic Ocean<br />
Paramaribo<br />
SURINAM FRENCH<br />
GUyANA<br />
Cayenne<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
53
54 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
55<br />
SErviCES<br />
Record sales in the<br />
metal processing segment<br />
MAN <strong>Ferrostaal</strong> is pleased with its good results in the machine tool and metal<br />
forming sectors. The company is supplying a number of CNC turning and<br />
milling centres for the manufacture of components with the highest demands<br />
for precision. Among others, two CNC milling machines for the manufacture<br />
of gear wheels with workpiece diameters of up to 2,500 mm for use in<br />
shipbuilding are being delivered to China to a licensee for diesel engines of<br />
the sister company MAN Diesel.<br />
MAN <strong>Ferrostaal</strong> has sold machines for the aircraft<br />
industry to Brazil and Pakistan. The company has<br />
signed new long-term agreements for the maintenance<br />
and service of CNC machines with the firms GROB<br />
from Switzerland and WFL from Austria, contributing to an<br />
improvement of its services in Brazil and China. For the gearbox<br />
manufacturers SEW and ADDN, MAN <strong>Ferrostaal</strong> has concluded<br />
two contracts with its German business partner<br />
HÖFLER for the supply of CNC gearwheel grinding machines.<br />
A record rounds off the good situation in the machine tool<br />
business: in 2006, MAN <strong>Ferrostaal</strong> sold 16 CNC laser cutting<br />
machines in Brazil for the Swiss firm BYSTRONIC. It has already<br />
sold seven BYVENTION models so far this year. The total<br />
number of machines sold in Brazil has risen to well over<br />
the 100 mark.<br />
In China, MAN <strong>Ferrostaal</strong> is very successful in the sale of machines<br />
for metal forming. Aluminium foil rolling mills, including<br />
the new separator and Doppler technology of the<br />
supplier Achenbach Buschhütten, are achieving particularly<br />
large earnings in the People’s Republic.<br />
The demand for minting machines is also high at present.<br />
This is particularly true of the Chinese market. There, because<br />
of the forthcoming Olympic Games, coin manufacturers<br />
are increasing their investments, especially in machines<br />
for the manufacture and processing of commemorative<br />
coins and medals. In Latin America, this business is<br />
similarly strong, especially in Colombia, where the company<br />
has been able to establish a solid business in the coin segment.<br />
Its cooperation with reputable machine manufacturers<br />
makes it possible for MAN <strong>Ferrostaal</strong> to offer practically<br />
the whole spectrum of machines required for the various<br />
working processes involved in coin production.<br />
Aluminium foil rolling mill from Achenbach Buschhütten in China
56<br />
SErviCES<br />
Gas pipeline for<br />
LUOC in Uzbekistan<br />
Pipelines on the way to Uzbekistan:<br />
transfer of pipes from ship to railway<br />
trucks in the harbour of Kleipeda<br />
<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
Caspian Sea<br />
IRAN<br />
For most people, Uzbekistan conjures up images of a<br />
country somewhere in Central Asia, and of the Silk<br />
Road, with cities such as Samarkand and Bukhara. Today<br />
Uzbekistan is one of the world’s leading producers of<br />
cotton. But the country’s future wealth will be in the oil and<br />
gas trade. While Azerbaijan and Kazakhstan opened up for<br />
international oil and gas firms very soon after the collapse<br />
of the Soviet Union, the Uzbek President Islam Karimov initially<br />
decided to go his own way. Now, as the economies of<br />
the neighbouring states are growing rapidly, the door is also<br />
open for foreign companies in Uzbekistan.<br />
The largest Russian and second largest oil company worldwide,<br />
Lukoil, is expanding its oil and gas business in Uzbekistan.<br />
For this purpose, the Russians have formed a subsidiary,<br />
Lukoil Uzbekistan Operating Company (LUOC). The<br />
location for LUOC’s first activities is the region of Bukhara<br />
in the south-west of Uzbekistan. Together with the local<br />
joint venture partner Uzbekneftegaz, the company has begun<br />
development of the Dengizkul and Kandymsk gas<br />
fields. In the first phase, the Khamzak and Shady sections<br />
within the Kandymsk field are to be developed for an annual<br />
production and transport capacity of four billion cubic<br />
metres of natural gas. In addition, LUOC, together with<br />
CNPC from China, PETRONAS from Malaysia and the Korean<br />
firm KNOC have initiated new investments. In the next<br />
ten years, the oil and gas business is therefore likely to<br />
grow rapidly, now that GAZPROM has also decided to enter<br />
this market.<br />
LUOC has already begun the construction of a gas pumping<br />
station and its next task will be to lay the necessary<br />
pipelines to the Mubarek gas refinery complex. There, a<br />
gas purification plant will be constructed shortly, as the<br />
natural gas has a high sulphur content. Because of this sul-<br />
Aral Sea<br />
TURKMENISTAN<br />
Nukus<br />
Registan, Samarkand<br />
UZBEKISTAN<br />
Urgench<br />
Tashkent<br />
Bukhara<br />
KAZAKHSTAN<br />
TAJIKISTAN<br />
phur problem, LUOC has decided not to cooperate with<br />
Russian or Ukrainian manufacturers, but to follow the path<br />
of “Western Technology Piping”, introduced by MAN <strong>Ferrostaal</strong><br />
for high technical demands of this nature. This label<br />
stands for high-quality technology from western Europe.<br />
MAN <strong>Ferrostaal</strong> has become a partner of LUOC. Large<br />
pipes, 711 millimetres in diameter and 20 millimetres<br />
thick, the corresponding ball valves, pipe bends, fittings<br />
and pigging stations are currently being delivered. The entire<br />
pig launcher and receiver material has reached the Kandymsk<br />
field and will be assembled to construct a pipeline.<br />
The order has a volume of over 30 million euros, the pipes<br />
accounting for the lion’s share. The steel of the pipes is capable<br />
of resisting the high H 2S content. The pipeline has a<br />
length of 46 kilometres and the total weight of the pipes,<br />
including their polyethylene outer coating, is about 17,000<br />
tonnes. LUOC chose MAN <strong>Ferrostaal</strong> because of its experience<br />
with similar pipelines in Turkmenistan and because<br />
of its good reputation for “Western Technology Piping”.<br />
Namangan<br />
Lake Balkhash<br />
KyRGyZSTAN<br />
CHINA<br />
PAKISTAN
58 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
59<br />
SErviCES<br />
“Market leadership through<br />
quality leadership”<br />
For nine years, Dr. Ralf Becker has been heading the company MAN<br />
<strong>Ferrostaal</strong> Automotive, together with Detlef Castro. For the 46-year-old<br />
engineer, everyday top performance is the basis of his business.<br />
How long has the Automotive segment existed and how<br />
has it developed since then?<br />
Since 1983, we have successfully operated steel magazines for<br />
various automobile manufacturers (OEMs); in 1996 we entered<br />
the field of so-called system logistics. That means that,<br />
apart from steel, we also deliver other materials and even sequentially<br />
assembled systems just-in-time to our customers.<br />
The company’s development can be well illustrated by the development<br />
in the number of employees. When I started at<br />
MAN <strong>Ferrostaal</strong> in 1998, we had about 220 employees in our<br />
segment; today we have more than 2,700, including temporary<br />
workers. Our turnover has also developed, rising continuously<br />
and consistently, in line with our workforce.<br />
How has the automobile industry changed and how has<br />
MAN <strong>Ferrostaal</strong> adapted to these changes?<br />
The automobile industry has changed enormously in the<br />
last ten years. The classic vehicles, of which models like the<br />
Opel Astra or the VW Golf achieved more than 600,000<br />
sales per year, no longer exist. Today the automobile industry<br />
has to operate a multi-model policy (3-, 4-, 5-door, estate,<br />
coupé, convertible and so on) in order to maintain a steady<br />
level of sales. What is more, every model is also supplied in<br />
a wide range of variants, for each customer wants to have<br />
an individual vehicle. So we have to be in a position to assemble<br />
completely different vehicles and the corresponding<br />
variants in the accessory components. That has to be<br />
mastered in order to keep the complexity at the point of installation<br />
as low as possible. It is right here that our concepts<br />
come into play.<br />
What are the essential factors for your success? Which<br />
areas of competence have you specialised in?<br />
It is important to us that we really understand how the automobile<br />
industry works. For example, why there are specific<br />
requirements, what equipment is needed and so forth. IT<br />
is another important component here. This is the only way<br />
that the customer’s requirements can be fulfilled. We have<br />
to know how the OEM ticks. We adapt to the permanent<br />
changes that affect the OEM by developing new concepts<br />
and contributing with our ideas to the success of the automobile<br />
industry. We specialise in offering a corresponding<br />
added value all along the supply chain. This extends from<br />
the material flow and assembly planning to the planning of<br />
entire factories, the development of specialised transport<br />
concepts and the development and operation of corre-<br />
Drive train assembly at Ford, Cologne<br />
sponding IT systems, always with the aim of handling these<br />
operations over the long term. What is really important for<br />
us here is the quality. Everything we undertake must be one<br />
hundred per cent in order.<br />
How do you keep the know-how of your staff up to date<br />
and develop them into experts?<br />
First of all, we have very good people, with a pronounced affinity<br />
for vehicles and the automobile industry. So they<br />
know exactly what the OEM requires. But the standard we<br />
set for ourselves is: we must do it a bit better than the others.<br />
This means that we must continually keep our people<br />
informed of the relevant trends and developments, so that<br />
we can develop new concepts when necessary. At our rate of<br />
growth, that means we have to develop, train and coach our<br />
people. New people are immediately allowed to work together<br />
with experienced employees on projects at our operative<br />
locations. For experience is only gained through<br />
experiences.<br />
How would you convince a potential customer to take<br />
advantage of your services and not those of a competitor?<br />
Our motto is: market leadership through quality leadership.<br />
It is vital that the customer’s assembly line is not stopped,<br />
that there are no hitches in his production and that the parts<br />
and systems we deliver are one hundred per cent in order.<br />
That is the indicator for immediate operative success. That<br />
is why we also put great emphasis on quality assurance. We<br />
are certified according to the latest standards. In some cases,<br />
the certified systems are subjected to another acceptance<br />
test by the customer. In the case of Ford, for example, our<br />
sites have been accredited with the Ford Q1 Award. But quality<br />
systems on paper are not enough, of course. It is important<br />
for quality assurance to be put into everyday practice.<br />
So our watchword in this case is: as little as possible, as much<br />
as necessary. But everything that is specified on paper must<br />
also be practised one hundred per cent. It has to be the case<br />
that any audit could be passed without preparation at any<br />
time. Only in this way can we continuously deliver quality<br />
and work effectively and reliably. That is our aspiration and<br />
also our advantage over the competition.<br />
What was the most challenging task up to now?<br />
That was in the year 2000. Almost simultaneously we won<br />
two major orders: the SILS Centre for Opel in Rüsselsheim<br />
and the Pony Pack assembly for Ford in Cologne. Two huge
60 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
61<br />
SErviCES<br />
projects, with an investment totalling over 40 million euros<br />
for the two sites. In Rüsselsheim we had to set up a complete<br />
infrastructure, which today covers an area of 33,000<br />
square metres. We were able to implement our complete<br />
plan with the colleagues from Opel and succeeded in making<br />
a good start here. In Cologne, it was also the start of a<br />
greenfield project. In both projects, we took over extensive<br />
assembly units. It really is an enormous challenge when,<br />
overnight, you have to employ and train 300 people at each<br />
site, because you also need the corresponding management<br />
capacities capable of supervising something like this. Not<br />
many people are capable of this, but we successfully mastered<br />
the task at both sites.<br />
In general terms, what must a firm in the automobile sector<br />
take into account when selecting a service provider?<br />
It is most important that everything that has been specified<br />
on paper is also verifiable, for there are very great differences<br />
between theory and practice. We are proud to be able to<br />
say that we have been very successful in the realisation of<br />
all our projects. That means without constraints on the customer<br />
and in an extremely limited amount of time. So, the<br />
customer should ask for references, for these provide cru-<br />
cial proof, and not merely look at the costs that he sees in a<br />
tender at first glance.<br />
MAN <strong>Ferrostaal</strong> is primarily known as a general contractor<br />
for industrial plants. So how does the Automotive<br />
segment fit into the company?<br />
Very well, because MAN <strong>Ferrostaal</strong> is a worldwide service<br />
provider and, with our services in the Automotive segment,<br />
we are right at the forefront. We can just as easily be directly<br />
compared with Plant Construction. When we conclude<br />
contracts for a certain amount of assembly, involving setting<br />
up the whole infrastructure, constructing the building,<br />
making the investments, installing the entire assembly<br />
equipment in the building, the screw technology, all the<br />
transfer systems and control systems, all of this can be imagined<br />
as being a small factory. Then it is a matter of project<br />
management, just as it is in plant construction. In the Automotive<br />
segment we are also general contractors. Here too,<br />
we show our customers new business models and suitable<br />
methods for dealing with their many tasks and challenges,<br />
so we are also carrying out project development here.<br />
Where will your markets be in future?<br />
When considering strategies for the future, you must keep<br />
an eye on several aspects. Firstly, I assume that a reasonable<br />
volume of vehicles will continue to be produced in Germany<br />
or western Europe in the future. For this purpose, intelligent<br />
concepts must be found to make or to keep the labour<br />
costs and production hours per vehicle competitive. Here I<br />
believe we can make an important contribution with our<br />
ideas. In addition, of course, if we look at the forecasts up to<br />
2015 or 2020, there will be a marked change in the world.<br />
But even in Europe there is still sure to be growth. The new<br />
markets of India and China are the markets with the greatest<br />
growth rates. But if we look at today’s total added value,<br />
they are still relatively small markets. Eastern Europe is certainly<br />
one of the largest growth markets, not just in percentages,<br />
but also in absolute terms. For us, the USA is also very<br />
interesting, because the value creation processes there are<br />
not as advanced as they are in Europe. We see a huge potential<br />
for us here. To sum up, the strategic orientation for our<br />
segment means: consolidation of the position in western<br />
Europe, expansion in Eastern Europe, particularly in the<br />
Polish and Russian markets, and a new orientation with regard<br />
to the USA.<br />
The automobile industry there is in crisis…<br />
In every crisis there is naturally an opportunity. If we look<br />
at the vehicles on the roads in the USA, it quickly becomes<br />
clear that, against the background of discussions about rising<br />
energy costs and the necessity of reducing CO2 emissions,<br />
growth is certainly possible in the smaller-vehicle segment.<br />
On the other hand, the population as a whole and,<br />
therefore, the demand for vehicles is still rising. So, for the<br />
US market, two tendencies are apparent: firstly, absolute<br />
growth and, secondly, a trend towards other vehicle models<br />
with lower consumption and therefore less impact on the<br />
environment. On top of this, an important parameter for<br />
viability in the automobile industry is the work time per vehicle<br />
in the final assembly, which still holds considerable potential<br />
for improvement. So there is plenty of scope for our<br />
activities.<br />
Are the Europeans ahead of the Americans here?<br />
Yes, some Europeans are ahead of the Americans. Naturally,<br />
every new works built on a greenfield site has the advantage<br />
of possessing better structures. But I believe that, even<br />
in developed structures, we can do better by means of intelligent<br />
supply concepts, and this is where we come in. In Europe,<br />
with our assembly services, we hold a leading position<br />
as a supplier-neutral service provider. It does not really matter<br />
to us who delivers the components. The important thing<br />
is that the components are supplied to the correct level of<br />
quality. Our service models can be introduced at any automobile<br />
plant. We create structures that allow a reduction in<br />
the production times of the final assembly.<br />
Will there be an expansion of services on your part?<br />
The service we provide is subject to a continuous improvement<br />
process. In other words, we continuously check whether<br />
what we are doing is “state of the art”. We work constantly<br />
on new concepts, so that we can stay ahead of our imitators.<br />
Steel magazines can be adapted and various sequential<br />
operations can be copied. So we have to consider now what<br />
the market will look like tomorrow, so that we can offer additional<br />
services and maintain our competitive advantage.
62 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
63<br />
CoUNtriES aNd PEoPlE<br />
Living and working<br />
in foreign cultures<br />
Reinhart Hönsch: Managing Director of MAN <strong>Ferrostaal</strong> Perú<br />
The year is 1973. After his training as a wholesale and<br />
international trade specialist at MAN <strong>Ferrostaal</strong>, Reinhart<br />
Hönsch, then 30 years old, had made his first<br />
trip abroad to Morocco, where he was to prepare a study on<br />
this new undeveloped market. This journey predestined<br />
him for Africa. Hönsch was transferred to the F-Africa department,<br />
as it was then. His mission: to handle the remainder<br />
of an order for the delivery of 250 ore transport trucks<br />
to the Congo (then Zaire).<br />
So he soon found himself on his first tour through the African<br />
jungle. After a long, extremely exhausting trek, he and<br />
his colleagues arrived in a village where the chief was sitting<br />
in front of his hut, cooling his feet in a bowl of cold water.<br />
As an honoured guest, the travellers were invited to<br />
have a cool beer – a welcome refreshment. But Hönsch<br />
could hardly believe his eyes when he saw that the glasses<br />
quickly fetched for them were rinsed in the same bowl in<br />
which the village chief had been bathing his feet. He could<br />
hardly bring himself to take his first gulp – but politeness<br />
and the heat prevailed...<br />
Then, in 1975, came an assignment to Nigeria, where the<br />
further enlargement of the Sokoto cement factory needed<br />
commercial supervision. Until 1978, Hönsch controlled the<br />
fortunes of the offices in Lagos and Kaduna. In this time,<br />
the foundations were laid for the contracts for a railroad<br />
for the transport of ore and for the Ajaokuta steelworks. The<br />
working environment was not easy, with power failures<br />
lasting for hours, a shortage of petrol and a telex line to<br />
Germany only available for two or three hours per day, but<br />
Hönsch adapted himself to this and successfully concluded<br />
a number of transactions.<br />
It is these special adventures and experiences which enable<br />
people to get along with other people from different<br />
cultures and living environments – and what is more, to<br />
live in a wide variety of countries and to establish an existence<br />
there.<br />
“My first long spell abroad in Nigeria<br />
had a decisive effect on my later professional<br />
life. These experiences<br />
stood me in good stead in my later<br />
foreign assignments,”<br />
says Hönsch. Altogether, he has only spent ten years of his<br />
professional life in Germany. In this, he is a typical MAN<br />
<strong>Ferrostaal</strong>er: someone who is at home all over the world.<br />
Hönsch lived in Africa and Asia for the company between<br />
1975 and 1987. By doing so he was also able to gain experience<br />
in Shanghai and Beijing in the project negotiations<br />
and handling of the contract for the dismantling of a rolling<br />
mill in Dortmund and its reassembly in China. “In my<br />
years of work, mostly spent abroad, I have learnt to listen<br />
to other people and to adapt myself to other cultures. If I<br />
make an effort to understand my counterpart, if I can win<br />
his trust, I shall be successful both in business and in my<br />
private life,” says this man of the world.<br />
Today Peru is his home. He lives in the capital city Lima together<br />
with his Peruvian wife and two sons. In 1988 his<br />
wish to get to know his wife’s country became ever stronger,<br />
so the ambitious German left MAN <strong>Ferrostaal</strong> because<br />
Reinhart Hönsch, Managing Director of MAN <strong>Ferrostaal</strong> Perú<br />
at that time the company had no vacancy in his adopted<br />
country. He found a job at a Peruvian and Swiss company<br />
where, as head of department, he built up the machine<br />
business between 1988 and 2001 and gained a thorough<br />
knowledge of the Peruvian market.<br />
This experience led him to return to MAN <strong>Ferrostaal</strong> in<br />
2001, to the company’s oldest South American subsidiary.<br />
He has been Managing Director there since 2005. Mr.<br />
Hönsch sums up the major projects of recent years as follows:<br />
“Above all in the fishing sector we have made an excellent<br />
name for ourselves by supplying MAN diesel engines.<br />
With our former subsidiary MAN Takraf we constructed<br />
and commissioned a copper ore conveyor system<br />
for the largest Peruvian copper mine between 2004 and<br />
2006. We also contributed to developing hydroelectric<br />
power generation by modernising the Callahuanca and El<br />
Platanal power plants. We also play an important role in<br />
the graphics industry – for example we installed complete<br />
lines of MAN Roland at the largest Peruvian newspaper<br />
group, ‘El Comercio’”.<br />
It was with satisfaction that Mr. Hönsch received the news<br />
in February 2007 that MAN AG had decided to confirm<br />
MAN <strong>Ferrostaal</strong> S.A.C. as the first MAN House in South<br />
America. “This is the recognition for the performance of<br />
my staff and for the successful work of my predecessors<br />
who began marketing the products of the MAN Group early<br />
on”.<br />
In view of this much success it is not surprising that the<br />
64-year-old no longer wants to return to Germany. But he<br />
still has close ties to friends and former colleagues and values<br />
many of the accomplishments made by his native<br />
country, for example, the dual training system. He promotes<br />
this form of training in his adopted country Peru in<br />
conjunction with the Peruvian-German Chamber of Commerce<br />
and the Humboldt School Institute, a vocational<br />
school, as well as with German-Peruvian companies for<br />
typical commercial professions. Of course, MAN <strong>Ferrostaal</strong><br />
Perú is also involved: “Each year we have two apprentices<br />
who work in the various departments in the company,”<br />
says Mr. Hönsch.<br />
“One result of our training: every head<br />
of department has a trilingual personal<br />
assistant!”<br />
His unsalaried post as Vice-President of the German Alexander<br />
von Humboldt School is only one of many such posts<br />
for this natural communicator. As a networker, he is also on<br />
the boards of the Lima Chamber of Commerce and of the<br />
Peruvian-German Chamber of Commerce. He gets to know<br />
many of his Peruvian customers here. It is much easier to<br />
discuss ideas about cooperation over a Pisco Sour, the national<br />
drink of Peru, than in a sterile office atmosphere.<br />
When he does this today he is fortunate enough to be able<br />
to sit in an air-conditioned restaurant where the glasses<br />
come sparkling clean from the dishwasher.
64 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
65<br />
CoUNtriES aNd PEoPlE<br />
Working with Beethoven<br />
in the fight against poverty<br />
Music can provide a way to escape poverty. Children from poor families in<br />
Venezuela have received free training as orchestral musicians for the past<br />
30 years. The best of the 240,000 currently active young musicians play in<br />
the famous Simón Bolívar youth Orchestra. MAN <strong>Ferrostaal</strong> sponsors this<br />
social and musical project.<br />
Gustavo Dudamel: “The energy of this music is fantastic for young musicians”.<br />
When you stroll through the streets of Caracas, it<br />
is impossible to escape the cacophony of reggaeton,<br />
salsa and the cries of the CD sellers. You have<br />
to pass through the doors of an unimposing green building<br />
in order to hear the more harmonious tones of the Montalbán<br />
School of Music. This is the heart of the “Fundación<br />
del Estado para el Sistema Nacional de las Orquestas Juveniles<br />
e Infantiles de Venezuela” (FESNOJIV). This foundation,<br />
which was established 30 years ago by José Antonio<br />
Abreu, combines social commitment with the promotion<br />
of classical music.<br />
FESNOJIV offers children from difficult social circumstances<br />
free music lessons and newfound self-confidence. The<br />
foundation has already trained over 300,000 young musicians.<br />
There are now 125 youth orchestras throughout<br />
Venezuela. Audiences around the world fall under the spell<br />
of the shining vanguard of this movement, the Simón Bolívar<br />
Youth Orchestra. Under the leadership of the exceptionally<br />
gifted 26-year-old conductor Gustavo Dudamel, the 11- to<br />
19-year-old virtuosos gave a concert at the Essen Philharmonie<br />
at the end of September 2006. The orchestra thrilled<br />
the audience with its remarkable sound quality of the highest<br />
level combined with South American temperament. The<br />
audience showed the talented young musicians their appreciation<br />
with a standing ovation.<br />
Gustavo Dudamel’s career began at the tender age of 12<br />
when he stood in for an absent conductor in a rehearsal.<br />
Just five months later he was appointed as an assistant. The<br />
26-year-old particularly admires the works of Beethoven:<br />
“His music is important for young people. For us it is new<br />
music, because we do not have a ready-made version of it<br />
in our heads. The energy of this music is fantastic for young<br />
musicians,” enthuses Mr. Dudamel. Like most members of<br />
the Simón Bolívar Youth Orchestra, conductor Dudamel<br />
also comes from a poor background – and today is a celebrated<br />
star.<br />
240,000 children are currently involved in the Venezuelan<br />
orchestra movement – a remarkable figure given the pop-<br />
Gustavo Dudamel, conductor of the Simón Bolívar Youth Orchestra<br />
ulation of 25 million. In Caracas alone there are eleven socalled<br />
“Nucleos”, FESNOJIV music schools. No entrance examination<br />
is required, because the motto of the initiative<br />
is: “Every child has musical talent”. The primary objective<br />
is not to train professional musicians, but to show children<br />
prospects. “Poverty means loneliness, sorrow, anonymity.<br />
An orchestra means joy, motivation, teamwork, striving for<br />
success,” says José Antonio Abreu. The Venezuelan government<br />
supports the orchestra system because of its social<br />
orientation. Mr. Abreu, who established the foundation,<br />
was honoured for his dedication in 1998 and was appointed<br />
a special UNESCO ambassador. MAN <strong>Ferrostaal</strong> wants to<br />
sponsor this unique youth project that combines culture<br />
and social commitment and has supported the Simón Bolívar<br />
Youth Orchestra with a donation. An investment that<br />
not only benefits the orchestra but also helps a charitable<br />
cause.<br />
On August 21, it was a case of “da capo”, because the Simón<br />
Bolívar Youth Orchestra returned to give another concert<br />
at the Essen Philharmonie to open the 2007/2008 season.<br />
MAN <strong>Ferrostaal</strong> AG sponsored this event with a donation<br />
and invited numerous partners and customers to the European<br />
Capital of Culture 2010 for an extra-special<br />
musical experience. Directed by Gustavo Dudamel, the<br />
young musicians played works by Leonard Bernstein, some<br />
South American composers and – not to be forgotten –<br />
Beethoven.
66 <strong>THE</strong> <strong>ECHO</strong> August 2007<br />
67<br />
CoUNtriES aNd PEoPlE<br />
Bernd Ahlmann, Head of the Equipment Solutions Business Unit<br />
“Fair treatment for customers<br />
and employees alike”<br />
At MAN <strong>Ferrostaal</strong> he is an old hand: Bernd Ahlmann has been working<br />
for the company for nearly 30 years. The Head of the Equipment Solutions<br />
business unit is not fond of set solutions. The 50-year-old from Essen<br />
prefers to rely on pragmatism and his knowledge of human nature.<br />
are the backbone of MAN <strong>Ferrostaal</strong>’s foreign<br />
companies”. And, in fact, none of the<br />
“We<br />
company’s other business units is represented<br />
in so many countries. The Equipment Solutions<br />
business unit serves customers in 40 states, predominantly<br />
in the southern hemisphere. The comprehensive<br />
service includes everything, from consulting and planning<br />
right up to delivery. And after the installation and<br />
the training of the customer’s personnel on site, the unit<br />
also provides the customer with after-sales service, including<br />
maintenance and deliveries of replacement<br />
parts.<br />
Bernd Ahlmann can rely on a well-established team. There<br />
is little staff turnover here. Most of his employees have remained<br />
true to their boss for many years. Mr. Ahlmann describes<br />
his management style as informal and pragmatic.<br />
He doesn’t just take the guiding principle of MAN <strong>Ferrostaal</strong><br />
literally – that its own employees are its most valuable<br />
asset – he also puts it into practice. “If we want to be<br />
able to perform well, a good working climate is essential,”<br />
says Mr. Ahlmann. “No boss can earn the respect of his employees<br />
if he is too authoritarian. What is important is the<br />
right teamwork”. Neither does he have a great opinion of<br />
patent recipes for business. “In South America and Asia,<br />
contracts cannot be concluded by sticking to the manual.<br />
You simply have to know what to do and know your customers<br />
well. Without a well-founded knowledge of the local<br />
markets, it is very hard to do business there at all. This<br />
valuable knowledge is not written down anywhere: it has<br />
to be learnt the hard way,” he explains. And that is exactly<br />
what Mr. Ahlmann has done. He has been active in this field<br />
for 27 years – and he has been very successful.<br />
“Anyone can be his own boss”<br />
Mr. Ahlmann’s career began in 1978 with an apprenticeship<br />
at MAN <strong>Ferrostaal</strong>. Another apprentice in that year’s intake<br />
was Stefan Deuster, now Head of MAN <strong>Ferrostaal</strong> México.<br />
Three years later, Mr. Ahlmann was given a permanent po-<br />
sition and, over time, he made a convincing impression<br />
with constantly good results and a feel for his customers.<br />
Bernd Ahlmann is a fine example of the fact that you do<br />
not necessarily need a university degree to be successful in<br />
your profession. “What counts most of all at MAN <strong>Ferrostaal</strong><br />
is entrepreneurial activity,” he declares. “Good common<br />
sense and a feeling for business are indispensable”. What<br />
he values at MAN <strong>Ferrostaal</strong> is the wide variety of activities<br />
and the business possibilities that these open up.“Here, anyone<br />
can be his own boss. For someone who can show good<br />
planning and continuous growth in his sector, there is practically<br />
no limit”.<br />
Growth through the right<br />
acquisitions<br />
The growth in the machinery business took place as a result<br />
of systematic acquisitions. Here, Mr. Ahlmann was always<br />
successful: “In our acquisitions, we never had a flop,<br />
but always bought only those firms which fitted well with<br />
us”. So, even in times of economic uncertainty, his business<br />
remained steady. What is the secret of his success? “It is extremely<br />
important to treat customers and employees fairly<br />
and with respect, to face them on a level footing”. Mr. Ahlmann<br />
has always succeeded in integrating new acquisitions<br />
into MAN <strong>Ferrostaal</strong>. There is one thing, however, that he<br />
cannot stand: “What irritates me is the type of person who<br />
can’t make up their mind, spending so long debating<br />
everything that a good opportunity is allowed to slip by.<br />
Missing a good business deal through carelessness is really<br />
annoying. You have to analyse the risks in good time and<br />
then manage them”. For the future, Mr. Ahlmann is hoping<br />
for further expansion in the machinery business. He has<br />
already laid the foundations for this growth.
68<br />
aPPENdiX<br />
International Trade Fairs<br />
August to December 2007<br />
Giro<br />
Brazil, Sao Paulo, 15/08<br />
ANJ<br />
Brazil, Sao Paulo, 26/08 – 28/08<br />
Naval design and Engineering Symposium<br />
Colombia, Cartagena, 29/08 – 31/08<br />
Grafinca<br />
Peru, Lima, 20/09 – 23/09<br />
SINPROdE<br />
Argentina, Buenos Aires, 26/09 – 28/09<br />
49th International Mechanical Engineering<br />
Trade Fair,<br />
Czech Republic, Brno, 01/10 – 05/10<br />
K 2007<br />
Germany, Düsseldorf, 24/10 – 31/10<br />
Andinapack<br />
Colombia, Bogotá, 06/11 – 09/11<br />
Exposorma<br />
Chile, Concepción, 07/11 – 10/11<br />
Expo Pesca<br />
Peru, Lima, 15/11 – 17/11<br />
Power-Gen International<br />
USA, New Orleans, 11/12 – 13/12<br />
FaX +49.0201.818-3525<br />
MAN <strong>Ferrostaal</strong> AG<br />
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<strong>THE</strong> <strong>ECHO</strong> August 2007<br />
WWW.maNFErroStaal.Com imPriNt<br />
Publisher:<br />
MAN <strong>Ferrostaal</strong> AG<br />
Hohenzollernstrasse 24<br />
45128 Essen<br />
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Oliver Haastert<br />
Contact: echo@manferrostaal.com<br />
Other authors in this issue:<br />
Birgit Baltes, Helmut Brand, Alain Chevaillier, Dirk Demtroeder,<br />
Dirk Donges, Jaime Fuentes, Dorian Hernández,<br />
Lars Höbenreich, Kai vom Hoff, Manfred Immink, Katrin<br />
Kasper, Thomas Kaup, Sylwia Krawczynska, Martina<br />
Kreutz, Eduardo Larrinaga, Dietmar Pracht, Marius Silalahi,<br />
Lennart Smend, Manfred Schreier, Thomas Suckut<br />
Photo credits:<br />
Armada Argentina (Argentine Navy): p. 6; AVR Jülich: p.<br />
13; Jim Connor: pp. 24/25; Peter Danford: p. 22/23; Karsten<br />
De Riese: pp. 2, 30, 33, 35, 38-44, 48/49; Getty Images:<br />
pp. 9, 10, 14/15, 17, 20/21, 31, 34, 36, 37, 60; Michael Kneffel:<br />
pp. 64/65; MAN Diesel SE: p.7; Catrin Moritz: pp. 59,<br />
61; Andreas Pohlmann: p. 63; Andri Ramos: pp. 50-53;<br />
Helge Reinke: pp. 18, 20; Solar Millennium AG: p. 47;<br />
Transchart Schiffahrtsges. mbH: p. 56<br />
design and Layout:<br />
BOROS<br />
Printing house:<br />
Woeste Druck, Essen<br />
Printed on a MAN Roland 705<br />
Frequency:<br />
Half-yearly<br />
71
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