Metso Outotec is launching a versatile Linear Metallurgical Sampler (LMS), which enables the measuring of material balances as well as reporting to investors and other stakeholders in compliance with AMIRA P754 and other sampling standards. The solution enables integration with Metso Outotec Courier® on-line analyzers to further improve process control.
“The Linear Metallurgical Sampler incorporates versatile functions to monitor both sampling integrity and sample quality. Its self-diagnostic and self-cleaning system ensures representative metallurgical samples for improved process audits and production transparency. Maintenance personnel can use self-diagnostics and reporting data to enhance predictive maintenance and spares management strategies,” says Tapio Korpela, Product Manager, Samplers, Separation at Metso Outotec.
Integration of on-line analyzers will enable different types of sampling data to be combined for production analysis purposes. By combining process history data with different process scenarios, the process control philosophy can be quickly adapted according to the ore type being processed, for instance. This enables improvement of production predictability and control of metallurgical mass balance.
A single LMS unit can collect multiple metallurgical samples to suit different production reporting and management purposes. Each sample can have its own timing, and the system can manage multiple buckets. A simultaneous flexible spot sample can also be taken without any system changes.
Key benefits of the Linear Metallurgical Sampler in brief:
- Improved process audits and production transparency
- Improved production predictability and control of metallurgical mass balance
- Reduced need for manual laboratory assays
- Reliable and efficient production reporting
- High integrity of samples and maximized equipment availability
Find out more about the Linear Metallurgical Sampler on our website.
Metso Outotec is a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing, metals refining and recycling industries globally. By improving our customers’ energy and water efficiency, increasing their productivity, and reducing environmental risks with our product and process expertise, we are the partner for positive change.
Headquartered in Helsinki, Finland, Metso Outotec employs over 15,000 people in more than 50 countries and its pro forma sales for 2019 were about EUR 4.1 billion. The company is listed on the Nasdaq Helsinki. mogroup.com
Cortec® Corporation is pleased present powerful EcoShield® VpCI®-380 topcoat for industrial painters. EcoShield® VpCI®-380 is a fast drying, water-based fluoropolymer modified acrylic one-coat system that can be applied direct to metal and provides corrosion protection and weatherability on metals in harsh outdoor environments. Whether for coating railcars, structural steel, or assembly line parts, EcoShield® VpCI®-380 is an outstanding water-based outdoor protective coatings option from Cortec’s portfolio of Micro-Corrosion Inhibiting Coatings™.
As a water-based fluoropolymer modified acrylic one-coat system, EcoShield® VpCI®-380 has many special advantages for protection in challenging environments. With excellent UV resistance (color and gloss retention), it gives optimal outdoor performance without cracking or chipping upon prolonged exposure to sunlight. Its hardness (H-2H Pencil Hardness), moisture resistance, and fast-dry properties make it an excellent choice for air-dry/force-dry industrial finishes. EcoShield® VpCI®-380 also exhibits good corrosion protection, having passed more than 1,000 hours in ASTM B117 salt spray conditions and ASTM D1748 humidity conditions at 4.0-4.5 mils (100-112.5 µm) DFT.
EcoShield® VpCI®-380 can be applied direct to metal (DTM) on carbon steel and top-coated over a wash primer (e.g., VpCI®-373 Green) on stainless steel, galvanized steel, and aluminum. It shows excellent 5B adhesion and even adheres well to some engineered plastics for greater versatility. It is thixotropic and exhibits alkyd-like gloss, flow, and leveling properties with good resistance to sag. It can be tinted to most custom colors and has a VOC of 1.6 lbs/gal (192 g/L).
The possible applications for EcoShield® VpCI®-380 are endless. Originally designed for the railcar industry, the most obvious use of EcoShield® VpCI®-380 is to coat railcars or shipping containers for protection against corrosion and the elements. However, it also makes an excellent choice for mass-produced parts needing to be force-dried with a high durability, high gloss coating for outdoor use. Structural steel, tanks, and any other metal equipment that will sit exposed to harsh conditions outdoors are good candidates, as well—particularly for anyone desiring a water-based, Micro-Corrosion Inhibiting Coatings™ alternative to solvent-based, zinc rich coatings. Those in the following industrial painting markets should especially take note:
- Power plants
- Heavy equipment users
- Outdoor storage yards
Whether industries need a protective coating that adheres well to a metal roof, that does not sag on the side of a railcar, or that resists cracking on equipment stored outdoors, EcoShield® VpCI®-380 is an outstanding water-based Micro-Corrosion Inhibiting Coatings™ option for good weatherability and corrosion protection in harsh outdoor environments. Be sure to take advantage of this coating for your next outdoor metals painting project and learn more here:
Contact Cortec® directly for further assistance selecting the right coating for your application:
Cortec® Corporation is the global leader in innovative, environmentally responsible VpCI® and MCI® corrosion control technologies for Packaging, Metalworking, Construction, Electronics, Water Treatment, Oil & Gas, and other industries. Our relentless dedication to sustainability, quality, service, and support is unmatched in the industry. Headquartered in St. Paul, Minnesota, Cortec® manufactures over 400 products distributed worldwide. ISO 9001, ISO 14001:2004, & ISO 17025 Certified. Cortec Website: http://www.cortecvci.com Phone: 1-800-426-7832 FAX: (651) 429-1122
Researchers at Uppsala University, in collaboration with Swedish graphene materials company Graphmatech, have demonstrated a potential breakthrough in the printability of copper for laser additive manufacturing (AM), significantly lowering the reflectivity of copper powder to achieve more dense printed parts.
Additive manufacturing of metals has seen rapid uptake across a range of industries due to its ability to produce customized and complex designs on demand, as well as offering more sustainable manufacturing with reduced waste and lower material requirements.
However, some metals, including pure copper, have proven a challenge due to their high reflectivity. At the wavelengths commonly used in laser powder bed fusion (the dominant technology in metal AM), only a small part of the energy is absorbed by the material, resulting in low density printed parts.
Graphene technology offers a solution
“By modifying the surface of the copper powder using Graphmatech’s patented graphene technology, we successfully reduced the reflectance by up to 67%”, explains Graphmatech CEO Dr Mamoun Taher. The graphene incorporated also survived the printing process to positively impact the density of the printed copper-graphene parts, significantly reducing their porosity.
The research is being undertaken by Professor Ulf Jansson’s research group at Ångström Laboratory, Uppsala University, with PhD student Simon Tidén having recently been awarded a poster prize at the Swedish Arena for Additive Manufacturing of Metals Conference for the work.
The new process developed to coat metal powder with graphene opens up very interesting perspectives for the design of new materials in various applications
“The new process developed to coat metal powder with graphene opens up very interesting perspectives for the design of new materials in various applications”, states Professor Jansson.
“This 3D printable hybrid material has the potential to add value in a range of sectors such as e-mobility, electronics and defence,” adds Dr Taher.
Graphmatech are now actively scaling up this technology, having already made significant advances in other graphene-metal composites and coated powders for additive manufacturing with project partners, due to the potential for graphene in enhancing the processability of powders and the properties of printed parts.
Graphmatech AB is a privately held graphene materials technology company, with a mission to deliver next generation materials to help build a brighter future. We are a proudly Swedish company made up of a diverse, international team spanning 9 nationalities. Our investors include ABB Technology Ventures, Walerud Ventures, EIT InnoEnergy and Almi Invest GreenTech Fund.
ArcelorMittal North America Holdings LLC, a wholly-owned subsidiary of ArcelorMittal S.A. (‘ArcelorMittal’ or ‘the Company’), has just announces an agreement to sell 40 million Cleveland-Cliffs common shares through a fully underwritten public market offering. The transaction is a part of a combined primary and secondary public offering of Cleveland-Cliffs’ shares.
This divestment crystalizes additional proceeds from the transaction with Cleveland-Cliffs announced on 28 September 2020 and completed on 9 December 2020. The proceeds from the sale of Cleveland-Cliffs common shares will be used for a new share buyback programme of ArcelorMittal common shares. The details and conditions of the buyback will be announced following the expiry of the Company’s current closed period on 15 February.
Following the sale of 40 million of Cleveland-Cliffs common shares ArcelorMittal North America Holdings LLC will continue to hold approximately 38 million common shares in addition to shares of non-voting preferred stock redeemable at Cleveland-Cliffs’ option for an equivalent value of approximately 58 million common shares.
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries. In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes. Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/http://corporate.arcelormittal.com/
Research facility European Spallation Source (ESS), the most powerful neutron source in the world, to use DeltaV-Seal
Norway’s Pipeotech has taken gasket tightness to new microscopic levels by going atomic as it is supplying its guaranteed leak-proof DeltaV-Seal to ESS, the world’s most powerful neutron source, in Lund, Sweden.
The new research facility is one of the largest and most advanced technology infrastructure projects being built anywhere in the world today and it will enable a more powerful range of experiments using neutrons than previously possible, providing a significant step forward in the science of everyday life.
Advanced research requires advanced tools and Pipeotech’s unique DeltaV-Seal will play an important role in this exciting new development.
When producing neutrons for research in a spallation process, ionising radiation is generated. For this reason, safety is always the top priority at ESS, and first and foremost is to meet all the requirements and safety regulations set out by the regulatory authorities.
The incredible guaranteed tightness and durability of the DeltaV-Seal are vital components in the safe and efficient running of the key water-cooling system in the ESS target area, where the water will become activated in the neutron production process.
Ionising radiation can cause a high attrition rate in polymeric seals and the fact Pipeotech’s gasket can be made in the same stainless steel material as its surroundings negates all galvanic corrosion in such a sensitive environment.
The seal also arrives having been extensively tested and type-approved so its 10-year warranty is especially useful for ESS as it seeks to avoid disruption, downtime and costly maintenance at the facility.
Neutrons have been used in scientific studies since the 1930s as they can penetrate deeper than X-rays and can be used to analyse different structures and functions within a material at an atomic or molecular level in a ‘soft’ way, meaning samples are not altered or damaged.
This opens the door to a wide range of study areas, including in the fields of life sciences, materials science, experimental physics, nano-technology, cultural heritage and pharmaceuticals. Research using neutrons is being used today in the world to study Covid-19.
Funding of the new multi-disciplinary research facility ESS is provided by 13 member countries organised as a European Research Infrastructure Consortium, with Sweden hosting the facility and Denmark the data management centre, which is located in Copenhagen.
Hundreds of scientists from across Europe have been working in collaboration on the concept and design of the new facility. Building work in Lund began in 2014 and when the research facility starts operating in 2023 it will deliver 20 times more sensitive instrument performance on average than the current leading neutron sources.
Around two to three thousand guest scientists and researchers will carry out experiments each year using this powerful new tool to analyse basic atomic structures and forces, leading to many potential break-through discoveries.
ESS in Lund will be the world’s brightest neutron source, and is based on the most powerful linear proton accelerator ever built.
The process to generate neutrons at ESS starts in the accelerator’s ion source, where rapidly varying electromagnetic fields heat hydrogen gas to ‘boil off’ the electrons from the hydrogen molecules. Hydrogen is the simplest element of nature and consists only of protons and electrons, so when the electrons have evaporated a plasma of protons remains.
The protons are guided from the ion source into a series of various types of accelerator cavities, using magnets to steer the beam. The protons are accelerated to about 96% the speed of light using electromagnetic fields as they are directed through the 602.5-metre accelerator towards their target.
That target is a 4.9-tonne, 2.6-metre diameter rotating wheel made of 7,000 neutron-rich heavy metal tungsten bricks encased in stainless steel shielding. The high-speed protons collide with the tungsten and split the nuclei, kicking out high-energy neutrons in the process known as spallation.
Those neutrons are then slowed to the speed of sound and guided through a fan of up to 42 beam ports towards a range of 15 tailor-made instruments, where the samples to be studied are placed for data to be collected for analysis.
When the heat is on
The target area inside the monolith, which contains almost 6,000 tonnes of shielding, poses some serious engineering challenges as ionising radiation and large amounts of heat are produced when the protons collide with the wheel and split the tungsten nuclei.
The tungsten target itself is cooled using a flowing helium gas system to keep it below 500 degrees Celsius, but the stainless steel shielding and the surrounding components and instruments are also affected by heat and are required to be water cooled at between room temperature and 60 degrees Celsius.
The intention is for neutron production to run 24/7 for about 5,400 hours a year at the facility and so any unscheduled maintenance will cause significant disruption for the researchers.
It is therefore essential that the pipes carrying the water-cooling system are leak-proof and resistant, so the seals employed must display state-of-the-art tightness and be guaranteed trustworthy.
The safety and verification requirements are set out by the regulatory body, the Swedish Radiation Safety Authority, and the components and materials used at ESS have to comply with these requirements in order for the facility to get the licence to operate.
It is important for ESS to have a seal delivered that already has been tested so rigorously and comes as type-approved with verification from classification society DNV GL.
Pipeotech’s DeltaV-Seal is a solid piece of metal made in the same material as the stainless steel piping surroundings so it is immune to galvanic corrosion and can resist ionising radiation as it is non-organic, giving peace of mind when installed in a sensitive closed system.
ESS sources its seals indirectly through a supplier and has chosen Pipeotech’s DeltaV-Seal for the water-cooling system in the most challenging area for gaskets in the whole facility.
Extreme tightness, reliability and durability are all key factors in why the ESS has chosen Pipeotech. Leaks are simply not acceptable in this environment. The DeltaV-Seal can deliver such guaranteed tightness, though it may not be able to stop the news of its unique properties from disseminating out to other industries.
Pipeotech has secured a partnership agreement with Spanish industrial supplier Esinsa that will provide a springboard to expand its deliveries of the ground-breaking DeltaV-Seal gasket to a diversified industrial market in the Iberian Peninsula.
Esinsa will serve as the regional supplier partner of the Norwegian developer of premium industrial sealing solutions to promote and deliver the innovative gasket across its territories in Spain and Portugal.
Tarragona-based Esinsa will act as the local point of contact for Pipeotech clients, providing sales, support and training.
This key deal is a door-opener for Pipeotech to gain access to Esinsa’s extensive distribution network in the region that encompasses a broad range of industrial sectors spanning petrochemicals, oil and gas processing, water treatment, engineering and nuclear energy, as well as the food and pharmaceuticals, agricultural, public works and naval sectors.
Esinsa is a family-run business with a strong track record of more than 35 years in delivery of sealing solutions for plants and other infrastructure designed to optimise the efficiency of industrial processes through close collaboration with the client.
Platform for growth
Pipeotech’s head of business development Andrew Patrick believes Esinsa’s regional reputation for high-quality and reliable deliveries, aligned with its own revolutionary sealing technology for industrial piping, will give the company a strong platform for growth beyond its core Scandinavian market.
“This alliance represents a strong vindication of Pipeotech’s technology from a tried and trusted regional supplier of gaskets and other industrial products, while it also positions us to expand our reach both into the Iberian Peninsula and wider EU market,” Patrick says.
“It is truly a seal of approval for the DeltaV that has already proved its worth for a range of prominent industrial clients and is rapidly gaining recognition as the next generation of gaskets designed for zero fugitive emissions.”
The DeltaV has so far been delivered to industrial facilities for high-profile clients including the Fincantieri-owned Vard shipyard group, Fortum and GE Healthcare.
The head of Esinsa’s technical department Ronald Clijnk sees the alliance with Pipeotech as a win-win deal for both companies, underpinning its goal to deliver value-accretive technology that can boost efficiency and provide competitive differentiation for its clients.
“We believe the DeltaV-Seal is the optimal solution to resolve today’s challenge of industrial leakages by eliminating them altogether,” Clijnk says.“As such, we are totally confident this gasket solution fits perfectly with Esinsa’s ambition to offer high-quality products to its customers and are therefore very pleased to have reached this agreement with Pipeotech.”
Eliminating emissionsThe DeltaV-Seal has unique characteristics as it is a one-piece, CNC manufactured gasket made from the same metal as the flanges it mates with and has three sealing rings that deform on installation to fill any surface irregularities on pipe flanges to form the perfect seal.
It means a permanent static and leak-proof seal is created between connecting flanges in pipework, making the joints as strong as the pipes themselves to ensure complete pipe integrity with no risk of disintegration.
This is set to make old-fashioned flange gaskets, based on 100-year-old technology, a thing of the past in line with more stringent environmental demands on industry to eliminate dangerous and pollutive emissions.
The DeltaV-Seal obviously can also bring major economic and safety benefits to industrial clients by removing the need for pipe maintenance work, such as retightening of flanges, and the risk of blowouts or fires from leakages.
Rather than leak and fix, the seamless gasket enables the operator to install and forget, backed by a 10-year gas-tight warranty that is a first for the industry.
Through its alliance with Esinsa, Pipeotech is now taking the bull by the horns by entering the ring to challenge competitors in the Spanish market.
he leading technology company transfluid from Schmallenberg has for many years been offering machines to cut tubes, in addition to machines to bend and form tubes. “There is always a cut before a bending and forming process, so it was a logical step for us to offer this option to our customers”, explains Stefanie Flaeper, Sales and Marketing Director. “The strong demand in this area has confirmed this and driven the development of our machine technology in this area.”
The sustainability starts with the technical equipment and includes the quality of the cuts. The robust build of the machines makes the tube cutting machines from transfluid durable and timeless. The cutting results are impressive, and the tubes can be used without further de-burring, depending on the requirements. Setting up the machine is easy, making it is quick to make the changes for different tube diameters. The performance is around 1,800 cuts/hour, depending on the length of the section and the diameter of the tube.
The transfluid t cut machines also have very efficient peripherals, which make it possible to process, for example, small numbers with a loading table or as bundles with automatic feeding and separation. Tube processing straight from a coil is also possible, of course. Very accurate straightening devices make sure that the tubes are perfectly straight.
The sorting of the tubes that have been cut can be done with different removal devices: they are grouped and removed at four or eight positions. If necessary, each individual tube can be labelled, to make sure that the tube is identified correctly at each stage of the process ahead. When very long tubes are used, which are longer than the magazine, it is possible to use automated nesting with these machines. This means that when the machine is fed enough length and number of pieces, the tubes are cut with the minimum amount of waste.
The cutting process is done with cutting blades with an orbital movement. Throughout the process, the tube is pulled in a controlled manner from both sides at the cutting position and pulled apart at the appropriate time. This means most of the cutting is done in with a rotating blade and the last few hundredths of millimetre of tube thickness are pulled apart while the blade is still operating. Both the pulling moment and the timing of the cut can be selected with great accuracy in the control system. The pull and tear method can be used either with electric or hydraulic drives. These specifications, which can be found in the RTO 628 from the transfluid t cut series, improve the cutting results for different materials and diameters in a significant manner.
This also means a shorter cycle time and a considerable benefit for the whole production: clean, efficient, accurate and fast.
This type of machines is often included in a production unit. This makes it possible to feed the tubes directly into a complete manufacturing process, including the fully automated forming and bending steps.
As stand-alone machine or as part of a production unit, the transfluid cutting machines can be equipped with Industry 4.0 and offer many properties that combine innovation and sustainability.
transfluid t cut cutting machines. The features at a glance:
- Cut tubes chipless and cleanly
- Forming and bending can be done straight after the tube cutting
- Depending on the tube cutting machine model it is possible to achieve an output of up to 1,800 tubes/hour
- No loss of material between cuts
- Cut optimization and reduction of waste
- The blade cutting method of this special tube cutting machine delivers sharp edges and square cut sections with long-lasting rotating blades
Rick McQueary elected president. Four members re-elected to the board and two new members join the board of directors of the International Magnesium Association
Members of the International Magnesium Association (IMA) have cast their ballots for leadership for the 2021-2022 terms.
New leaders elected to three-year terms on the board of directors include:
- Jon Weiler, Meridian Lightweight Technologies
- Fusheng Pan, Chongqing University, China
In addition to the newly elected board members, the following members were re-elected to serve on the board of directors:
- David Klaumunzer, Volkswagen AG
- Fernando Franca, Rima Industrial
- Jan Guy, Amacor
- Michael Just, GF Casting Solutions AG
IMA thanks Kazumasa Yamazaki of Japan Magnesium Association, Ronald Chang of Foxconn Technology Pte. Ltd, and Shi Lei of Shaanxi Magnesium Association (SXMA) for their service and leadership as their terms expire on the IMA Board of Directors.
The 2021 IMA Executive Committee elected by the Board of Directors is as follows:
- President: Rick McQueary, Mag Specialties Inc.
- Vice President: Jan Guy, AMACOR
- Secretary/Treasurer: Nic Andrews, MAGONTEC GmbH
- At-Large: Hartmut Fischer, Andreas-Stihl AG & Co. KG Magnesium Druckguss
- Ex-Officio/Past President: Todd Olson, Twin Cities Die Castings
Prior to his election as President, Rick McQueary served on the IMA Board of Directors, as the Chair of the IMA Safety Committee and he is actively involved in the IMA Americas Committee. Rick McQueary is the Senior Vice President and COO of Mag Specialties Inc with over 37 years of experience in the Magnesium Industry.
“It has been an honor to serve as the IMA President for the past three years. I am grateful for the strong base of member support. l am looking forward to helping Rick transition into his role as president.” - Todd Olson, Past President IMA
Full details on the organization and board are available at the IMA website.
About the International Magnesium Association (IMA)
IMA was founded in 1943 and works to promote the use of magnesium in material selection and to encourage innovative applications of this versatile metal. Among the members of IMA are primary producers of magnesium, recyclers, foundries, fabricators, end-users and suppliers. As a global voice for the magnesium industry, IMA serves members through a variety of avenues.
EUV and Electronics with double-digit sales revenue growth // Return of 8.9 per cent almost at previous year's level // Leibinger-Kammüller: Indications that the economic downturn is coming to an end.
High-technology company TRUMPF presents figures for the fiscal year 2019/20: Sales revenues down 8 percent from 3.8 to 3.5 billion euros / Order intake down 11 percent from 3.7 to 3.3 billion euros / Germany, the US, Netherlands, and China largest single markets for TRUMPF / Partnership with Munich Re for pay-per-part model / Oliver Maassen new member of the Group Management Board, responsible for Human Resources
At the end of fiscal 2019/20 on June 30, 2020, the TRUMPF Group recorded a decline in sales revenues of 8 percent to 3.5 billion euros (fiscal year 2018/19: 3.8 billion euros). The order intake fell to 3.3 billion euros (fiscal year 2018/19: 3.7 billion euros). This represents a drop of 11 percent. TRUMPF benefited from its high order backlog, with sales revenues exceeding incoming orders by 210 million euros.
At 309 million euros, the Group's operating earnings before taxes (EBIT) also declined in line with sales and fell by 11.5 percent compared to the fiscal year 2018/19 (349 million euros). However, thanks to the consistent implementation of its “Koyer” earnings improvement program, TRUMPF was able to significantly dampen the decline in the EBIT margin. Due to the scaling back of capital expenditure and non-personnel costs as well as efficiency improvements, the company achieved a good overall return of 8.9 percent (previous year: 9.2 percent).
TRUMPF also responded to the consequences of the coronavirus pandemic in spring 2020 through further cost-cutting measures, such as the utilization of excess balances on working time accounts and accumulated vacation days, and from April onwards, the introduction of short-time working and an additional cutback in non-personnel costs and expenditure on fixed assets. As a result, the decline in the Group's return was further cushioned.
Nicola Leibinger-Kammüller, Chair of the Group Management Board of TRUMPF: “We have been experiencing a slowdown in the global economy since fall 2018. Coronavirus has further intensified the decline – as a crisis within a crisis. However, our sales revenues fell much less than in the mechanical engineering sector as a whole. In addition, consistent cost management allowed us to keep the return almost at the previous year's level.”
Commenting on the outlook for fiscal 2020/21, which started on July 1, 2020, Mrs. Leibinger-Kammüller continued: “The decline in sales revenues and new orders was halted in the first three months. We see cautious signs that the economic downturn is coming to an end, although there is still no upturn.”
TRUMPF’s largest single markets
TRUMPF's three largest single markets worldwide were Germany with sales revenues of 610 million euros, followed by the US with 490 million euros and the Netherlands with 480 million euros, due to the EUV business with ASML. In fourth place was China with 350 million euros. In many European core markets such as Italy and Spain, but also in Eastern Europe, sales revenues fell – in some cases by double digits – as a result of the weak global economy and the coronavirus shutdown.
EUV and Electronics strong again
Once again, the Ditzingen-based EUV business field was the driving force behind this positive result. TRUMPF supplies its Dutch customer ASML with special lasers for systems that use extreme ultraviolet radiation to expose surfaces of chips for the computer industry. Here, TRUMPF once again increased sales revenues by 19 percent from 388 million euros in the previous year to 460 million euros. As a result, EUV contributed almost as much to Group sales as TRUMPF's entire US subsidiary.
Electronics, which is located in Freiburg at TRUMPF Hüttinger and in Warsaw, again exceeded expectations with sales revenues of 230 million euros. This represents an increase of 15 percent over the previous year (199 million euros). The main reasons for this were the increasing demand for the solar industry in China and the semiconductor industry in the US and Japan.
Development of employee numbers and short-time working
Measured against the previous year, the number of TRUMPF employees remained roughly the same at 14,325. In Germany, 7,437 people were employed as of the reporting date of June 30, 2020, 4,353 of them at the Group’s headquarters in Ditzingen. In the year under review, 513 young people completed a training course or co-op work-study program, meaning that the training ratio of 3.6 percent was even higher than in the previous year (3.4 percent).
Between April and June 2020, 30 percent of employees, with the exception of EUV, were on short-time working. The proportion of employees on short-time working at TRUMPF was 27 percent in October 2020, compared with 30 percent in the two previous quarters. TRUMPF currently has a working ratio of 80 percent again.
Regarding the debate about home office and a "New Normal", Nicola Leibinger-Kammüller affirmed that TRUMPF as a production company remains a company with a presence: "We do not want to fall into the blind activism we see in other companies. We want to think through the processes from top to bottom and, based on comparative studies, first form a well-founded opinion about how the home office has a proven effect on productivity. But we also want to understand the cultural and social consequences of people not meeting for weeks or months at a time.”
To reflect the strategic importance of the Human Resources and employee development topic, Oliver Maassen (56), Head of Human Resources at TRUMPF since 2017, was appointed as member of the Group Management Board with responsibility for Human Resources effective October 1, 2020. Before joining TRUMPF, he worked for the consulting company Pawlik and was responsible for Human Resources at HypoVereinsbank/UniCredit.
Low coronavirus numbers at TRUMPF
In the period to June 30, 2020, there were 70 positive coronavirus cases and 843 people in quarantine throughout the TRUMPF Group. In Ditzingen there were 26 infections and 158 quarantine cases in the same period. The TRUMPF Group currently has 15 active coronavirus cases and 70 people in quarantine. Of these, 15 people are purely in “technical quarantine” after a service visit abroad – i.e. without symptoms.
Investments and acquisitions, high R&D ratio
As a result of the Koyer savings program, investments were cut back by 33 percent to 194 million euros (previous year: 288 million euros). TRUMPF also strengthened its technological competence through acquisitions in the period before March 2020: Effective July 1, 2019, the Group took over Aixtooling through its subsidiary INGENERIC. On October 31, 2019, TRUMPF Photonics in the US acquired a 100 percent stake in Stellar Industries. In December 2019, TRUMPF acquired a minority stake in French laser technology start-up GLOphotonics; in January 2020, it finally acquired HBH Microwave.
TRUMPF remained a research-intensive company in the fiscal year 2019/20, with R&D costs amounting to 377 million euros, compared with 396 million euros in the fiscal year 2018/19. In relation to the decline in sales revenues, the R&D ratio increased to 10.8 percent (previous year: 10.5 percent).
New smart factory at Ditzingen
In October 2020, a new smart factory, in which 6 million euros have been invested, will be opened at the Group's headquarters in Ditzingen. There are now 30 networked machines on an area of 5,000 square meters. The new smart factory is open to customers so that they can see for themselves the efficiency improvements in production and new networking solutions. Together with the smart factory in Chicago in the US and in Taicang in China, TRUMPF is now represented in all major markets with state-of-the-art factories.
Strategic partnership with Munich Re for sheet metal production
TRUMPF is also breaking new ground in business models. Together with the reinsurance company Munich Re Group, TRUMPF has signed a strategic partnership for the first time in the history of both companies for a new type of laser cutting machine distribution. It enables customers to use full-service laser machines such as the commercially superior TruLaser Center 7030, for sheet metal processing without having to buy or lease them. Instead, customers pay a previously agreed price for each cut sheet metal part – also known as the pay-per-part model. The Munich Re Group will finance the machine, and its subsidiary Relayr will facilitate the financing model using data analyses. TRUMPF will supply the machines, software and services for manufacturing the sheet metal components. The operational headquarters of the project will be at the TRUMPF site in Neukirch, Saxony. From there, access to the machines will be coordinated.
The high-technology company TRUMPF offers production solutions in the machine tool and laser sectors. It is driving digital connectivity in manufacturing industry through consulting, platform and software offers. TRUMPF is the world technological and market leader for machine tools used in flexible sheet metal processing, and also for industrial lasers.
The TRUMPF Group and the Munich Re Group (Munich Re) are entering into a strategic partnership for an innovative service offering of laser cutting machines. The jointly developed "pay-per-part model" enables customers to use a full-service laser machine without having to buy or lease any equipment. Instead, customers pay a previously agreed price for each cut sheet metal part – in other words, they only pay for what they need. This allows customers to make their production processes more flexible and react faster to market changes.
Initially, the partnership will commence as a project with a learning phase whose length is to be agreed upon by the contractual partners. Munich Re acts as a business enabler of this model: the Group finances the machine and bears the resulting investment risk. The IoT service provider relayr, a subsidiary of Munich Re, provides the data analysis for the financing model. TRUMPF supplies customers with the required production components, namely the machines for their factory lines and the corresponding software and services for manufacturing sheet metal parts. Klöckner & Co., one of the world's largest producer-independent steel distributors, will be a development partner of the business model.
As a part of the service offering, the production process is fully tailored to the customers’ requirements. The performance promise of the offering includes access to a fully automatic laser cutting machine, a storage system, TRUMPF’s production know-how, and the necessary service components, as well as equipment maintenance and the required raw materials.
Thus, the pay-per-part model offers companies in the sheet metal processing industry entirely new and disruptive business and production opportunities. Customers gain access to the latest automated laser cutting technologies without the need for massive investment, and the production volume is easily adjustable based on demand. Thanks to the planned performance guarantee offered by Munich Re, customers will also be insured against the financial impact of potential production downtime.
"With this partnership, we are venturing into new business models more prominently than ever before," said Mathias Kammüller, TRUMPF’s Group Managing Director and Chief Digital Officer. "It is the first step towards providing our customers with an alternative to the traditional purchase of machines, enabling them to increase their production capacity without massive up-front investments. Furthermore, we believe that this offering will not only help our existing customers grow but also enable the acquisition of new customers."
"The cooperation with TRUMPF is an outstanding example of how the combination of Munich Re Group's various offerings – risk solutions, IoT technology and financing – makes it possible to develop innovative business models for the industry,” said Torsten Jeworrek, Member of the Board of Management of Munich Re. “We are convinced that such partnerships represent a forward-looking response to the challenges of an increasingly dynamic market environment."
"We are excited to be part of this great partnership," added Josef Brunner, CEO at relayr. "Relayr provides the necessary IoT infrastructure and enables comprehensive data analysis and optimisation on which, in turn, the financing and guarantee model of the project is based. It is no longer enough for industrial companies to produce quality products. Business models must be transformed to remain future-proof. In taking this step, TRUMPF has demonstrated that it is future-oriented and prepared to explore innovative approaches to offer its customers entirely new opportunities."
"We are proud to be able to support the pay-per-part offering of TRUMPF and Munich Re as a development partner since this confirms our conviction that the future belongs to digital business models," said Gisbert Rühl, CEO of Klöckner & Co. "We believe the market is more than ready for pay-per-part offerings and have absolute confidence in this new model. The cooperation in this digital business model is an important step towards the future for us, and we are confident that many interesting opportunities will arise from it."
The partnership between Munich Re and TRUMPF is subject to merger control clearance by the responsible authorities.