AIR FILTRATION MARKET UPDATE
November 2011
McIlvaine Company
www.mcilvainecompany.com
TABLE OF CONTENTS
CONSTRUCTION
October U.S. Housing Starts Flat, Permits Up
FILTRATION 2011
INDUSTRY NEWS
Protecting High-Risk Farms with Filtration
FINANCIALS
Ahlstrom Reports Demand Decline Impacted 3rd Q Performance
Buckeye Reports Strong Q1, Plans FL Expansion
COMPANY NEWS
PGI Unveils New Platform Technology to Produce Nonwovens with Submicron Fibers
Superior Felt & Filtration Expands Ingleside, IL Operations
Hollingsworth & Vose Opens Warehouse in India
Cross Creek Partners Acquires Milwaukee, WI Filter Manufacturer Airsan
Cummins Divests Light Duty Filtration Business
Entegris Inaugurates Filtration Facility in Taiwan
NEW PRODUCTS
LG Introduces Residential Air Care Product Range
The Philips GoPure Automotive Clean Air System
Many projects, mergers and acquisitions are detailed in monthly updates in the
Market Report’s Chapters under Industry Analysis. Click on the links below to
view current updates for each industry.
AEROSPACE
FOOD
DISK DRIVE
FLAT PANEL
METALWORKING
OTHER ELECTRONICS
PHARMACEUTICAL
POWER
PULP MILLS
SEMICONDUCTOR
TRANSPORTATION
CONSTRUCTION
October U.S. Housing Starts Flat, Permits Up
The U.S. residential construction statistics for October, 2011 showed that
combined housing starts in October were essentially flat, with a decline by 0.3
percent to a rate of 628,000 units. The single-family sector posted a 3.9
percent gain to 430,000 units, and the multifamily sector posted an 8.3 percent
decline to 198,000 units following a large gain in the previous month.
Combined starts activity was up in three out of four regions in October. Gains
of 17.2 percent, 9.7 percent and 1.6 percent were registered in the Northeast,
Midwest and South, respectively, while the West posted a 16.5 percent decline.
Permit issuance, which can be an indicator of future building activity, rose
10.9 percent to a seasonally adjusted annual rate of 653,000 units in October on
gains in both the single- and multifamily sides. Single-family housing permits
rose 5.1 percent to 434,000 units – their highest level since December of 2010 –
while multifamily permits rose 24.4 percent to 219,000 units – their highest
level since October of 2008.
On a regional basis, combined permitting activity was down 1.6 percent in the
Northeast and 3.7 percent in the Midwest, but up 21.5 percent in the South and
5.4 percent in the West.
FILTRATION 2011
Filtration 2011 International Conference and Exposition, recently held at
Chicago’s Navy Pier, featured more than 120 exhibitors from all links in the
global filter supply chain.
Product introductions include:
Hollingsworth & Vose presented two new filtration media products — NanoWave HVAC
Pocket Media and Inviscint Hydraulic Filter Media.
NanoWave is a synthetic alternative to glass mat media that offers increased
sustainability and high discharge efficiency. Produced with a single-polymer,
the media’s stiff design results in enhanced processability and creates rigid
pockets for filters. With low pressure drop and high dust-holding capacity, the
media fits a broad range of HVAC applications. Charged NanoWave is also offered,
which provides increased submicron particle retention, as well as higher MERV
classifications.
The new Inviscint Hydraulic Filter Media combines peak performance with
incredibly low pressure drop. New Inviscint media reduces fluid flow restriction
by up to 50%.It cuts overall system energy requirements while delivering
increased reliability, less maintenance, and longer life for filters and
hydraulic systems. Inviscint is designed as the next-generation media for
construction, agriculture, and industrial equipment. End users looking for
optimal energy savings and system performance should consider Inviscint filter
media.
Ahlstrom’s recent efforts in its filtration business include new capacity in its
gas turbine and high efficiency air business in Tampere, Finland as well as new
capacity for transportation filtration applications in Brazil. With roots in the
transportation market, Ahlstrom has made several investments and acquisitions to
expand its role in the filter media market. Its most recent acquisition was
Shandong Puri Filter & Paper Products Ltd., a Chinese producer of transportation
filtration media.
Ahlstrom recently launched a renewed brand identity that is the visual
expression of the company’s new business strategy developed in response to the
changing needs of its customers. A new logo and brand promise, Stay Ahead,
reflect the company’s commitment to renewal and delivering results.
Nonwovens manufacturer Kem-Wove launched new line of advanced no drip, no melt
flame retardant products. These products have excellent FR properties and are
able to withstand temperatures up to 500°F. Pending official test results (in
process now) materials should pass both horizontal and vertical burn. Materials
have great insulation properties and can be supplied either bare or laminated to
various lining fabrics. Applications can be found in filtration, apparel,
furniture, industrial and building markets, protective gear, portable
structures, sleeping bags, fire fighters products, tents, possible electric
spark absorber, vehicle protection, tarps and others.
Universal Air Filter highlighted its new 0.125 inch filter design applicable for
any industry or market where a filter is required to fit in smaller spaces. In
addition to using the thinnest media available to need UL flame safety
standards, this filter can be applied to unique designs requiring multi-sided,
special shaped frames.
FibeRio Technology Corporation launched its new 1.1 meter wide continuous
nanofibre production system, Cyclone Fiber Engine 1.1. The company states it is
the first full scale production model utilizing Forcespinning technology, which
offers both melt and solution spinning capabilities, increased productivity and
a significant reduction in production costs.
The system has been designed to be integrated into a nonwoven production line
further enhancing its productivity gains, or it can be delivered as a discreet
roll-to-roll system for specialty products or limited runs (Fiber System
configurations).
Webex featured examples of custom machinery used in converting and producing
filtration material. Examples displayed included custom converting modules and
complete converting lines, along with Webex’s versatile line of REM slitter
rewinders.
Milliken & Company demonstrated a number of products with applications for the
filtration industry, including a variety of high loft products using a broad
range of fibers, fiber distributions and orientations. Needle felts used for
high temperature filtration media including traditional PPS felts as well as
pleatable, topically and chemically treated fabrics for high temperature
cartridges are being featured. Milliken also used the show to introduce Eminus
nanofiber products for high efficiency filtration with patented high volume webs
with controlled fiber size distribution, engineered depth and filtration
properties.
Jentschmann introduced its ultrasonic welding machine, Weldsonic Filter, for
closing pleated filter packs. This machine operates with a continuous welding
process and bonds the first and last filter pleat directly together. For non-weldable
materials, such as cellulose, the machine uses hot melt adhesive tapes to ensure
a strong bond.
Innovative Resin Systems, a custom formulator and manufacturer of one and two
component epoxies, two component polyurethane and radiation cure adhesives for
chemical, industrial, reverse osmosis and air filter applications, debuted its
Acrylic-Cure AC 8810.
Textest AG of Switzerland introduced its FX 3300 Air Permeability Tester LABAIR
IV, the latest addition to the complete family of Air Permeability Testers.
Meltog launched two key machines in the U.S. during Filtration 2011. The
UK-based specialist manufacturer of both spiral and linear lock seam filter tube
machines and seaming and coil handling equipment will be unveiling its STM125
and STM350 spiral tube machines.
Nordson featured its family of foam technology equipment including the SureFoam
dispense systems that combine hot melt adhesives or sealants with inert gas to
create a closed-cell foam. Gas content can be up to 50% by volume, so up to 50%
reduction in adhesive consumption.
Franklin Adhesives & Polymers’ FilterFAB line launches three adhesives that meet
many bonding applications in the assembly of air and liquid filters. The line
includes two water-based Polyvinyl Acetate (PVA) adhesives for assembly and a
polyurethane filtration adhesive that can handle end cap potting and edge/frame
sealing.
Quantachrome Instruments showcased its Porometer 3G capillary flow porometer,
the latest generation through-pore size analyzer in a line of instruments that
can trace its origins to the popular Coulter porometer.
Blue Heaven Technologies talked about its development of a flat sheet air filter
media testing protocol tailored specifically to HVAC applications. The FST-1 has
unique features enabling it to assess media performance in terms of resistance,
efficiency and dust holding, thereby avoiding flat sheet testing issues that
arise with procedures used for HEPA filters.
Filtration Technology Systems focused on the latest addition to its extensive
line of filter production equipment. The CC-1-ATCF is a pleat assembly line with
auto feed and auto load compression chamber and it has a much smaller footprint
than any other pleat assembly line.
P2i demonstrated the benefits of its nano-coating technology for the filtration
sector. The technology, which was originally designed to make soldiers’
protective clothing more effective against chemical attack while maintaining
levels of comfort and breathability, is now applied to five key filtration
applications: Aviation Fuel, Diesel Fuel, Gas Turbines, Industrial Compressors
and Hard Disk Drives.
INDUSTRY NEWS
Protecting High-Risk Farms with Filtration
More sow farms are being filtered as producers seek protection from repeat PRRS
infections in hog-dense regions, National Hog Farmer reports.
Air filtration systems have become the final piece of the biosecurity puzzle,
and are being implemented increasingly in sow farms to protect them from
repeated outbreaks of porcine reproductive and respiratory syndrome (PRRS) in
swine-dense regions of the United States, according to Darwin Reicks, DVM, Swine
Vet Center, St. Peter, MN.
In his southern Minnesota practice where hog density is an issue, he oversees a
database of filtered sow farms. Seventy-two sow farms have been filtered for at
least six months. These farms pretty consistently break with PRRS at a rate of
about 5% per year due to a variety of causative factors and biosecurity
breaches.
“Those same farms before filtration were breaking at a rate of about 68%, but
with filtration this is an 85% reduction, so it really does pay for itself,” he
reported at the Leman Swine Conference in September in St. Paul, MN.
Scott Dee, DVM, also reported at the conference on the results of a 36-month
field study to test the efficacy of filtering incoming air as a means of
reducing the risk of airborne transport of the PRRS virus. The virus has been
documented to travel by air from 3-5 miles. Dee conducted the study while at the
University of Minnesota. Recently, he has joined the Pipestone (MN) Veterinary
Clinic.
“These results suggest that air filtration is an effective means to reduce the
risk of external PRRS virus introduction to large breeding herds located in
swine-dense regions,” he states.
Studies are currently underway to continue assessing the sustainability of air
filtration and calculate its cost:benefit ratio.
In one study, Reicks and Dale Polson, DVM, Boehringer Ingelheim Vetmedica, Inc.
used a net present value (NPV) model to assess the long-term financial impact of
site-level air filtration. NPV is defined as the difference between the present
value of cash inflows and the present value of cash outflows.
Using data compiled from actual filtered farms, Reicks calculated that 92% of
sow farms broke with PRRS infection per year before full filtration (essentially
one break every year), but only 16% broke per year after installing full
filtration (or one break every 6+ years).
Using Reicks’ filtration cost estimates, the non-discounted cost to install and
maintain full air filtration in a sow farm was calculated at $40.93/sow/year
over a 10-year period for a conventional ventilation scenario, and
$52.66/sow/year for a tunnel-ventilated scenario over 10 years.
The model estimated that reducing breaks from once per year to once every 6+
years over a 10-year period in a fully-filtered, tunnel-ventilated, 2,400-sow
farm resulted in an average net present value (NPV) of $3.3 million or
$1,384/sow over 10 years.
Reicks and Polson concluded that “although filtration of incoming air holds
excellent potential to advance the control and elimination of PRRS for the North
American swine industry, it also must be appropriately evaluated and justified
in terms of value.
FINANCIALS
Ahlstrom Reports Demand Decline Impacted 3rd Q Performance
Ahlstrom’s net sales for the 3rd quarter July–September 2011 were EUR 389.7
million, down compared to EUR 413.0 million for the same period last year. The
company reported an operating loss of EUR 17.3 million (EUR 14.1 million profit
same period last year) and operating profit excluding non-recurring items of EUR
8.0 million (EUR 13.8 million).
Filtration sales volumes for the 3rd quarter were down 6.8% partly due to the
divestment of Dust Filtration business and lower demand for transportation
filtration materials.
In August Ahlstrom signed an agreement to divest its Home and Personal business
area to Suominen Corporation during this period. The total value of the
transaction is approximately EUR 170 million.
After the review period, Ahlstrom initiated a profit improvement program to
address its underperforming businesses. The program aims to generate an annual
profit improvement of approximately EUR 15 million and may affect about 400
employees. As part of the program, initiatives in Karhula, Turin and Osnabrück
were announced.
On October 18, 2011 Ahlstrom updated its outlook for this year. Net sales from
continuing operations are expected to be EUR 1,565-1,645 million. Operating
profit excluding non-recurring items from continued operations is expected to be
EUR 46-56 million.
Buckeye Reports Strong Q1, Plans FL Expansion
Buckeye Technologies announced first quarter adjusted net income of $29.9
million, which excludes net income of $11.2MM from cellulosic biofuel credits
generated in 2009. Adjusted net income rose 118% as compared to the prior year
period's $13.7 million, which excluded net income of $51.3 million from
cellulosic biofuel credits generated in 2009.
Net sales of $240 million were up 19% versus last year's first quarter sales of
$202 million. Sales benefited from higher selling prices and increased cotton
linter pulp shipment volume. Aside from significantly higher cotton linter
costs, cost inflation for chemicals, transportation and other raw materials was
modest with energy prices stable.
Buckeye also announced that its Board of Directors approved funding to increase
the high-end specialty wood pulp capacity by 42,000 tons at its Buckeye Florida
"Foley" operation. The cost of the project is expected to be approximately $79
million with an anticipated rate of return of 15% to 20%. Engineering and design
work is nearing completion, and construction is expected to begin in January
2012 with project startup planned for December 2012. This investment will be
funded by cash flow from operations.
Buckeye's chairman and CEO John Crowe, says, "This specialty expansion project
will provide much needed high-purity specialty volume for strategic customers in
all of our high-end markets including casings, tire cord, ethers, filtration,
micro-crystalline cellulose, and acetate. Additionally, this will improve our
overall plant product mix from 42% specialty wood pulp to just over 50%
specialty wood pulp while maintaining the Foley plant's existing total capacity
at 465,000 tons per year. This is the type of high-return organic growth
opportunity that we will continue to target as we allocate our free cash flow to
its highest and best use. We believe this project will provide excellent value
to our customers and our shareholders."
COMPANY NEWS
PGI Unveils New Platform Technology to Produce Nonwovens with Submicron Fibers
Polymer Group, Inc. (PGI) recently unveiled a new platform technology to produce
nonwovens containing submicron fibers that can deliver improved performance
properties for healthcare, industrial, filtration and new emerging market
applications.
PGI's proprietary Arium™ technology produces a matrix of fibers predominately
sized under one micron in diameter.
"Arium is a completely new technology platform for the industry that will enable
us to meet the market need for increasingly cost-effective fabrics with improved
performance at a value proposition unmatched by any other submicron fiber
technology," said Veronica "Ronee" Hagen, PGI's chief executive officer. "Just
as we did with our Apex® and Spinlace® technologies, PGI is leading the industry
and investing in game-changing platforms."
PGI has improved the process of producing submicron fibers with its new process
after significant R&D efforts. "While other processes can generate fibers at the
submicron level, none can do it as efficiently, and with the same commercial
level of throughputs, as Arium™ technology," said Bob Dale, PGI's senior vice
president of research and development.
PGI has invested in a pilot line in the U.S. at its Waynesboro, Va. facility to
produce fabrics using the Arium™ technology. The technology can stand alone or
be retrofitted to PGI's existing meltblown equipment.
"Our Arium technology™ allows us to be more competitive in our core markets
while opening up new opportunities in other markets," said John Heironimus, the
company's senior vice president, chief marketing and chief sustainability
officer. "By combining technologies, or utilizing Arium™ technology alone, PGI
can deliver innovative product solutions to the market."
The submicron fibers contained in materials produced with the Arium™ technology
can provide higher surface area, biosafety and tunable porosity that enhance
performance benefits such as absorbency, adsorption, opacity, softness, barrier
protection, acoustic performance and high-efficiency filtration.
Superior Felt & Filtration Expands Ingleside, IL Operations
Superior Felt & Filtration, LLC continues to expand its operations in Ingleside,
IL. Several new facilities have been opened this summer which have expanded
Superior's nonwoven distribution capabilities.
Already stocking the largest inventory of micron, CFM, synthetic and SAE wool
felts in North America SFF also distributes and converts Technostat, a
sub-micron, high-efficiency filter media to meet the most demanding tribo-electric
filtration needs. SFF has also added a new white room which includes converting
capabilities to further support its position in slitting, heat die-cutting and
other value added services.
Additionally, Superior announced that its manufacturing division, NonWoven
Solutions, is installing another needle punch line to double production and
strengthen its position in the medical and filtration textile industry. The new
line will be operational by year’s end, evidence that Superior Felt continues to
position itself as a leader in the felt and filtration market.
Hollingsworth & Vose Opens Warehouse in India
Filter media manufacturer Hollingsworth & Vose has set up a warehouse operation
in India under the name Hollingsworth & Vose Trading Company (India) Private
Limited.
The new warehouse means Hollingsworth & Vose can offer Indian customers one week
lead times instead of the more typical 4-6 week lead times for products
purchased directly by customers from Hollingsworth & Vose mills outside India.
Hollingsworth & Vose vice president, International, David von Loesecke said:
“The new trading company, along with the previously announced joint venture with
the Nath Group, is a significant milestone in establishing our physical presence
in India and growing our business in the surrounding region.”
Cross Creek Partners Acquires Milwaukee, WI Filter Manufacturer Airsan
Cross Creek Partners, LLC, a private equity firm with a focus on manufacturing
and distribution companies in the upper Midwest, has announced the acquisition
of Airsan Corporation, a Milwaukee-based manufacturer of permanent filters.
Airsan annual sales are estimated at $2 million.
Airsan manufactures both permanent metal and dry type air filters for a number
of applications, including filtration products in the defense, wind turbine,
waste treatment, electric motor and cogeneration markets.
“Airsan products are shipped worldwide to OEMs (original equipment
manufacturers) and distributors for a number of applications in the filtration
market,” explains Kurt Glaisner, vice president and co-owner of Airsan prior to
the acquisition. “With the support of Cross Creek Partners and the increased
demand for cleaner air, Airsan’s future looks very promising.”
Cummins Divests Light Duty Filtration Business
US private equity firm Industrial Opportunity Partners (IOP) has acquired
Cummins Inc’s light duty filtration assets. IOP has renamed the business Kuss
Filtration Inc.
Headquartered in Findlay, Ohio, Kuss provides light duty automotive and
industrial filtration solutions serving approximately 250 customers worldwide in
the automotive, industrial equipment, materials handling, lawn and garden,
agricultural, and motorcycle industries. The Kuss product range includes in-tank
fuel filters, embedded pleated paper filters, specialty automotive filters,
specialty industrial filters, and intake and cabin air panel filters.
Hasnain Merchant, formerly general manager of the Findlay, Ohio location, is the
new chief executive officer of Kuss.
“Although Kuss was non-core to Cummins due to its primary end markets, the
company has developed a strong product portfolio, has talented and dedicated
employees, and presents attractive growth opportunities. We look forward to
partnering with IOP to focus on continuing to grow the business,” said Merchant.
Cummins will remain a key customer of and supplier to Kuss.
Entegris Inaugurates Filtration Facility in Taiwan
Entegris Inc has opened a new manufacturing and research facility in Hsinchu
City, Taiwan to design and produce advanced filtration and materials handling
components for the semiconductor industry and other high-tech industries.
The new Entegris facility will also provide lab services to customers in Taiwan
and across Asia.
Gideon Argov, president and CEO of Entegris, said: “We believe we will be the
first world-class manufacturer of filters designed for the most demanding high
technology manufacturing environments to establish a manufacturing presence in
Taiwan.”
Paul Yang, Entegris’s regional director for Greater China, said: “Our decision
to open this facility reflects our commitment to be close to our customers in
Taiwan and around Asia. We can now support these customers with products that
are produced locally, as well as jointly develop filtration technology needed
for their most advanced manufacturing processes.”
NEW PRODUCTS
LG Introduces Residential Air Care Product Range
LG Electronics (LG) has introduced an extensive range of air purifiers aimed at
providing cleaner and healthier indoor breathing air. LG's Air Purifiers provide
proper humidification which prevents the proliferation of dust, germs and
viruses thereby preventing various respiratory diseases. This multiuse air
purifier functions as three different air-solution devices: an air cleaner, an
NPI (Nano Plasma Ion) sterilizer and a natural humidifier.
The range includes the Aqua 3 in 1 Air Purifier, Black Hole Air Purifier, Air
Bus Air Purifier, Virus Pro Nano Plasma Ionizer and Air Washer 3 in 1 Natural
Humidifier.
The sterilization process of the LG purifiers is based on Nano Plasma Ion (NPI)
technology. NPI destroys the molecular structure of floating germs and viruses.
Research has also shown the NPI system being capable of effectively eradicating
nearly 100% of viruses from indoor air.
All LG Air Purifiers have been certified by Intertek Testing Services, Auburn
University, British Allergy Foundation and Korea Food & Drug Administration.
The Philips GoPure Automotive Clean Air System
The portable Philips GoPure Automotive Clean Air System is ideal for drivers
with allergies and small kids, as well as smokers. This system uses a
three-stage filtration process. The first takes care of large airborn particles
that are floating around your car. The second is a HEPA filter that captures
finer particulates (dust, pollen and bacteria), while the third features three
HESA filters that get rid of the stink. Air is circulated through a two-speed
fan, and the car can smell fresh in about 10 minutes when the system is cranked
up to high.
The GoPure system can be held in place on the dash with a suction cup, and can
also be secured under or behind a seat as well. It’s powered from a 12V plug
that automatically turns on and off with the vehicle’s ignition. Sensor and LED
indicators alert the driver to what the current air quality in the car is. It
also comes with a filter replacement indicator.
The Philips GoPure Automotive Clean Air System costs about $249.99.
McIlvaine Company
Northfield, IL 60093-2743
Tel: 847-784-0012 Fax: 847-784-0061
E-mail: editor@mcilvainecompany.com
Web site: www.mcilvainecompany.com