June 2012 : CMI Spreads in India - Cover Story - CMI FPE LTD

CMI Spreads
in India
Indian Growth will Focus on High End Applications
- Jean-Marc KOHLGRUBER,
President - CMI Industry & Chairman - CMIFPE Ltd.
ean-Marc KOHLGRUBER President-CMI Industry & Chairman - CMIFPE
JLtd. is a graduate of the University of Liege, Belgium and holds a master
degree in electro-mechanical engineering. He also holds an MBA of the University
of Chicago, USA.
He joined CMI GROUP BELGIUM in 1996 as Vice President Sales CMI
METALLURGY and as President from 1999 to 2002. He was appointed President
of CMI INDUSTRY from 2002. He is Chairman of the Board from 2008 of CMI FPE
INDIA.
In a candid chat with Steelworld, Jean-Marc KOHLGRUBER shared his insights
on the best available technologies for the industrial processes, future projects and
on the growth charter of CMIFPE Ltd. and CMI Industry for India. Excerpts:
Cover Story
s an expert in industrial processes,
ACMI Industry designs, integrates,
supplies and upgrades Mechanical,
thermal, chemical and biological treatment
industrial equipment and energy efficiency
solutions.
CMI Industry supplies steelmakers with
cold complexes and all their constituent
equipment.
Designed by CMI, these facilities boast
state-of-the-art technologies for the
production of increasingly more
sophisticated flat carbon steel. Some of these
technologies are also available in
equipment for processing other products
such as stainless steel or long products.
For other processing industries, CMI
Industry is a service provider, assuming full
charge of the complete installation of their
new production facilities. The same
comprises of technologies and in all regions
of the world. CMI has in particular
developed sound experience in managing
complex projects in emerging economies
where it has established efficient local
networks.
CMI Industry also offers industry’s multiple
solutions for reducing their environmental
Footprint. Some of these solutions alter the
way facilities function to reduce energy
consumption or polluting emissions. Others
are used to recover waste heat, treat or
recycle polluting effluents or emissions or
give value to industrial waste, while
improving the quality and productivity of
finished products.
In all cases, CMI Industry provides tailored
technological solutions that guarantee a
rapid return on investment, along with
related services such as the transfer of knowhow,
training programmes, support for
commissioning facilities, or performance
audits.
To serve its customers in every corner of the
globe, CMI Industry has technological
centres and commercial / operational
branches in Europe, North America, Latin
America, China, India and Russia.
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June 2012

Cover Story
Are you satisfied with the progress in
the past four years ?
- In a turbulent economic context worldwide,
CMI Industry further reinforced its leadership in
galvanizing lines by demonstrating that its latest
generation '100% CMI technology' lines give
steelmakers a major competitive edge. In India, we
have been actively developing our subsidiaries CMI
FPE and CMI Industry Automation during the last
four years. Beyond the integration and development
of new technologies we have enhanced our 3D
engineering and project management capabilities,
developed automation solutions, invested in safety
equipment and training, marketing supports, the
image of the company in India has dramatically
changed and we received very prestigious orders
from more and more customers.
When we decided to develop the turnover of
CMI FPE, we came to the conclusion that
manufacturing is a bottle neck and decided to
expand the capacity of our workshops. To do that,
we invested in machining centres and built new
sheds with heavy handling capacities while
optimizing the overall lay-out of the plant in order to
improve the production-flow. In addition, by
dedicating each shed to a specific part of the
manufacturing process (machining, assembling,
packaging, expedition...) we now benefit from the
advantages of a more efficient and focused
manufacturing set-up. With such new infrastructure,
CMI FPE is now is now able to house, for instance,
the assembly of up to ten cold rolling mills or even
two 5-stand tandem rolling mills at the same time!
Can you brief us about the expansion
plans of CMI industry in environmental
engineering sector in terms of capacity
building, technology advancement, R&D
activities etc. ?
- CMI Industry has expanded its offer as service
to project provider as well as provider of solutions to
reduce the environmental footprint of industries.
CMI Industry now has a foothold in the industrial
effluents treatment market with the acquisition of a
French company named Proserpol.
CMI Industry continues to develop its energy
efficiency solutions for energy-intensive industries
(steel, glass, paper, etc.). Thanks to these solutions,
the customers of CMI Industry can save up to 50%
on the energy bill for their facilities. In 2011, CMI
Industry booked several orders, particularly in
France and the United Kingdom, for different types
of industries. CMI Industry has also developed new
generations of burners that could dramatically
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June 2012
reduce the consumption of steel furnaces. They are
currently tested in a pilot furnace in Spain.
How do you find market outlook in India
and across the world i.e Europe as well as
Southeast Asia ?
- After three years of constant adapting to the
uncertainties on its traditional markets, CMI
Industry is emerging stronger from the successive
crises that have shaken the world economy. In India,
CMI FPE, the Indian subsidiary of CMI Industry,
registered unprecedented order level in 2011,
capitalizing on the vitality of the local economy. At
the same time, on the operational front, the
execution schedules of certain projects in 2011 were
revised owing to market conditions. CMI FPE thus
closed 2011 with a very strong order backlog.
How do you compare Indian and
Chinese market ?
- Both markets are of capital importance for CMI
Industry. We are expecting these markets to sustain
strong growth patterns in the steel sector and we
have accordingly strengthened our presence in both
geographies in order to capture such growth. While
our development strategy in China has been based
on partnerships and joint ventures, our approach in
India is centered around our own unique

manufacturing capabilities. The majority of the steel
processing equipment we supply to the Chinese
market today is typically for high end applications,
while in India commercial grade steel processing
equipment still represents a big share of our
customer's demand. However we see a definite
change in trends towards higher value added steel
processing, be it tin plate, automotive steel or silicon
steel. Even if cost of financing, infrastructures
development and land acquisition remain key
challenges for the Indian steel industry, we believe
that the steel consumption surge will still drive
considerable capital expenditure in the coming
years.
What are the initiatives taken by CMI
industry to promote environmental
sustainability ?
- CMI combines expertise in steam generation
and thermal processes and a strong experience in
industrial processes. So we are able to offer
industrialists multiple solutions for reducing their
environmental footprint. Some of these resources
efficiency solutions alter the way facilities function to
reduce energy consumption or polluting emissions.
Others are used to recover waste heat, treat or
recycle polluting effluents or emissions or give value
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June 2012
Cover Story
CMI FPE doubles its production capacities by opening its new Center of Excellence
for Cold Rolling Mills Manufacturing in Taloja (India) CMI FPE, one of CMI Industry's
Indian subsidiaries, unveiled on May 30th, 2012, the new layout of its Taloja
(Maharashtra) facility. The expansion doubles the production capacities of this plant,
henceforth known as CMI Center of Excellence for Cold Rolling Mills Manufacturing.
With such a state-of-the-art infrastructure, CMI FPE is now perfectly armed to meet
the needs of the Iron and Steel industry.
The expansion of CMI FPE's facility in Taloja consists of the construction of new sheds, the
extension of existing ones, the installation of new machining capacities as well as the
implementation of a new, optimized production flow. It doubles the production capacity of
the plant, which is now able to house, for instance, the assembly of up to ten cold rolling mills
or even two 5-stand tandem rolling mills at the same time.
The construction of the CMI Center of Excellence for Cold Rolling Mills Manufacturing
started in May 2011 and the new facilities were inaugurated in May 2012. This key
investment follows many actions taken since the Company joined CMI Industry in 2008:
beyond the integration and development of new technologies, it has for instance enhanced
its 3D engineering and project management capabilities, strengthened its internal
processes and controls, and invested in safety equipment and training. Along with this
inauguration, CMI FPE also celebrated the groundbreaking ceremony of a new plot of land
it recently acquired in Hedavali near Khopoli for its future needs.
Jean Gourp, Managing Director of CMI FPE: “CMI FPE closed the year 2011-12 with a
strong order backlog. The expansion of our facilty in Taloja as well as the
reorganization of our production flow are key factors that
will enable us to realize these orders more efficiently and
more rapidly. With such state-of-the-art manufacturing
capacities, we are now able to meet the needs of our
customers on a very fast track basis.
to industrial waste, while improving the quality and productivity of
finished products. In all cases, CMI Industry provides tailored
technological solutions that guarantee a rapid return on
investment, even more enhanced by related services such as the
transfer of know-how, training programs, support for
commissioning facilities, or performance audits. In 2011, CMI
Greenline Europe, the entity of CMI Industry in charge of these
technologies, was the first French company recognized by the
European program 'ChangeBest' as a global supplier for energy
efficiency solutions.
In 2011, CMI Industry Sector
consolidated its leadership in the
treatment of stainless & electrical steel.
Thanks to a strategic agreement signed
last May with Siemens Metal
Technologies (SVAI), CMI Industry is
now able to address customer demands
with the most attractive offer in the
market place by offering best available
technologies for the most cost-effective
and energy efficient solutions.
At the same time, true to its ambition to reduce the environmental footprint of industrial companies, CMI
Industry has used its pilot facility, together with different partners, for a pre-industrialization phase of a new
Nesa Solutions® application: the roasting of various biomass extracts, which is a link in the green electricity
generation chain.
How do you foresee the future of the Indian industry? What is your vision for the
company in the coming years ?
In the years to come, Indian industry, and especially the steel industry, will continue its expansion in order
to meet the growing needs of the population. This growth will be more and more focused on high-end
applications. In this context, we are able to meet the needs quickly as we have doubled the capacity of CMI
FPE. You must also know that last May was groundbreaking for an additional plant to be built in Hedavali, near
Khopoli.
Technologically speaking, given our in-house expertise in the downstream industry, we can accompany
our customers in developing high-end capacities up to the qualification by the automotive manufacturers for
instance. This makes definitely CMI Industry the ideal partner for new facilities, upgrading and consulting to
get the most out of customer's plants and make their projects successful!