June 2015 - Industrial Valve Insights 50

Providing the Interface between End Users and Suppliers

The McIlvaine Company has a number of initiatives to create high level discussions among end users and suppliers. The purpose is to enhance the decision making process. McIlvaine participated in a global sourcing panel discussion at the Industrial Valve Summit in Italy last month. The major oil companies and consultants all referenced the loss of experienced personnel and the need to rectify this continuing loss of knowledge.

The panelists included some of the most knowledgeable valve experts who make or influence decisions on many projects around the globe.

0.00 Round Table: Global sourcing in the changing energy industry
Room: Caravaggio

Keynote:
Robert McIlvaine,
CEO, McIlvaine Company

Panelist

Bader M. Al-Jarallah,
Valve Engineering Specialist, Saudi Aramco

Ray Bojarczuk,
Senior Engineering Advisor, Exxon Mobil Corporation

Are Halvorsen,
Managing Director, Nordic Valve Services AS

Ron Merrick,
Director of Piping Material Engineering, Fluor Enterprises

Jean-Michel Rivereau,
Head of the Piping, Valves and Vessels Department, Technology Division, Total E&P

Yusuke Sakurai,
Managing Director, Jgc Italy

Chaired by
Maurizio Brancaleoni,
Valve Campus

This live discussion in Italy was followed two weeks later by a recorded webinar on power plant valves with various problems resulting from fast cycling of gas turbine HRSGS and the next week with a discussion of the whole wet limestone FGD system options. Three valve suppliers debated butterfly vs. knife gate valves for slurry control

McIlvaine webinars in the past have been two thirds presentations and one third discussions. However beginning two months ago the webinars are 80% discussion and only 20% presentations. The visual background each discussion is a decision guide with as many as 90 power point displays. As the discussion progresses the relevant information is displayed. The schedule of upcoming hot topic is available at: Click here to view schedule and register

OEMS and Consultants Purchase or Influence Nearly Half of All Flow Control and Treatment Products and Services

In 2015 Original Equipment Manufacturers (OEM), Engineering, Procurement and Construction (EPC) companies, consultants and architect engineers will purchase or influence the purchase of air, gas, water and liquid flow control and treatment products and services valued at $147 billion. This represents nearly half all the purchases of these products.

Product	Industry Revenues ($ Billions)	OEM and Consultant Orders and Decisions ($ Billions)
Pumps	53	25
Valves	86	40
Liquid Filtration	46	20
Other Liquid Treatment	39	15
Indoor Air	11	4
Stack Gas Treatment and Flow	73	35
Monitoring	15	8
Total	323	147

Twenty thousand companies will average over $7 million in purchases and decisive influence. They include some of the largest EPCs who purchase $ billions to small OEMS with purchases of less than $1 million.

Identifying these companies, their products and their locations is a challenge made increasingly difficult by the continuing acquisitions and divestitures. In order to track this activity on an organized basis, McIlvaine has created a corporate identification number. All subsidiaries can then be immediately displayed with their products, services and locations. Product Analysis by Financial Entity

One active acquirer is CECO. Here is an example of how one finds the contacts for a location. (Alternatively you can start with products or locations.)

First you identify the parent:

Cecil Lue-Hing & Associates

Ceco Compressor Engineering Corp.

CECO Environmental

Cecos International

CEDA International

Cedar Corporation

Cedarapids, Inc./Raytheon Co.

CEECON

CEEJAY International Ltd.

You then see the list of subsidiaries:

CECO Environmental/ Busch International - PA, USA

CECO Filters, Inc. - PA, USA

CECO Environmental/ Met-Pro Envr. Air Solutions/ Duall Division - MI, USA

CECO Environmental/ Fisher-Klosterman, Inc. - KY, USA

CECO Environmental / Met-Pro Corp./ Dean Pump Dv./Fybroc Dv. - IN, USA

CECO Environmental/ Met-Pro Envr. Air Solutions/ Flex-Kleen Div. - IL, USA

CECO Environmental Corporation - OH, USA

(More than 20 other subsidiaries are listed including those in the Netherlands and China. The acquisition of Peerless is not yet complete, so none of these locations is listed.)

The sales manager will want to analyze the potential for all the subsidiaries and can do so as follows.

CECO is a significant OEM purchaser of valves. One group also makes valves but only fiberglass, so they cannot supply their needs internally. Duall, Fisher, Klosterman, Bush Zhongli and HEE are all potential valve purchasers for scrubber systems. When you click on Duall, you see the products and the contacts:

Air Handling - FANS

Fabric Filter - SPRAY DRYER

Sedimentation - ODOR

Wet Scrubber - ADSORPTION

Wet Scrubber - AIR TOXICS

Wet Scrubber - ODOR CONTROL

Wet Scrubber - PACKED TOWERS

Name	Title	Email	Telephone	Fax	Source
Name	Title	Email	Phone	fax	xxxx
xxxxxxxxxx	Purchasing Mgr.xxxxxxx.	xxxxxxx	xxxxxxxx	xx	xxxxx
xxxxxxx	Design Chemical Engineer	xxxxx	xxxxxxxxx	xx	xxxx
xxxxxx	General Manager	xxxx	xxxxxxxxx	xx	xxxx

Individual sales people will use the system in various ways. One is by location. Here is an example by zip code:

60085 - Cardinal Health, IL, USA, 4

· 60085 - Yaskawa Electric America, Inc., IL, USA, 1

60085-6753 - United Conveyor Corporation/ Global Operations, IL, USA, 14

60085-8309 - Pristine Water Solutions, Inc., IL, USA, 2

The corporate identification approach is particularly valuable in pursuing opportunities in China. The multiple ways subsidiaries are listed and spelled makes it very confusing. So McIlvaine provides the corporate identification link for the Chinese subsidiaries in both English and Chinese.

English Name	Corporate Identifier	Name in Mandarin
Shanghai Da Gong New Materials	690	上海大宫新材料有限公司
Shanghai Dongfang Boiler Group	1287	上海东方锅炉厂
Shanghai Duomile Photoelectric Instrument	671	上海多米乐光电仪器有限公司
Shanghai Feng Cheng Machinery Engineering	687	上海峰晟机械设备有限公司
Shanghai Fengwei Knitting Needle Manufacturing	786	上海丰威织针制造有限公司
Shanghai Filtair Air Filter	732	上海飞特亚空气过滤有限公司
Shanghai Flow Valve & Fitting	1405	上海富乐阀门管件有限公

More information on the McIlvaine OEM Networking Directory is found at:
53DI OEM Networking Directory

Industrial Valve Revenues Will Reach $68 Billion This Year

Industrial valve sales will be $68.4 billion in 2015 according to the latest forecasts in N028 Industrial Valves: World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

The McIlvaine forecasts are displayed in constant 2010 dollars. The forecast for 2015 is $58 billion with a 1.18 multiplier to account for inflation. McIlvaine forecasts are based on end use. These are compared to analyses displayed at the recent Industrial Valve Summit in Italy.

Country	McIlvaine point-of-use revenues in 2015 $ millions	Confindusria Bergamo estimates of exports $ millions
China	13,500	8,200
Italy	1,200	7,800
USA	11,900	7,500
Germany	2,100	6,500
Japan	3,200	2,700

These figures show that some of the EU countries are major exporters of valves with Italy being the leader. China and the U.S. are large exporters but even larger consumers. Robert McIlvaine, president of the McIlvaine Company participated in a global sourcing panel discussion along with representatives of several of the major oil companies. The main message in the McIlvaine presentation is that exporters can enhance their position by providing total solutions. He used the example of Pentair which provides valve systems to deliver compressed air in a unique manner to maximize cleaning of filter elements.

The company has the engineering expertise to deliver complete pulse jet cleaning solutions and takes responsibility for valve sizing and configurations. This total solutions approach provides maximum value to the purchaser and also increases the revenues and profits of the supplier. Several of the other panelists and attendees expressed similar opinions relative to total solutions.

The key to success is understanding the processes. This has not been a traditional skill of valve companies but is one which they would be well served to pursue. For those companies who want to carve out an international presence, the knowledge and products to uniquely make the process better are very good ways to increase penetration throughout the world.

A major theme at the Industrial Valve Summit was the loss of knowledge as many of the experts within the consulting companies and end users are retiring. This makes the process knowledge even more important. McIlvaine has decision programs to provide this process and product knowledge. One is for coal-fired power plants and the other for gas turbine combined cycle power plants.

The conference included a number of unique and invaluable papers. They can be purchased from the conference organizers for $325. Contact: http://www.industrialvalvesummit.com/

For more information on the valve market, click on: N028 Industrial Valves: World Market

For the program with process knowledge on valves for coal-fired power plants, click on: 44I Power Plant Air Quality Decisions

For the similar program on gas turbine combined cycle plants, click on: Gas Turbine and Combined Cycle Decisions

INDUSTRIAL VALVE MARKET UPDATE

May, 2015

TABLE OF CONTENTS

Acquisition

Spirax Sarco Watson Marlow Acquires Asepco

Joint Venture

Victaulic and Bermad Announce New Joint Venture

New Division

GE Creates New Marine Division

Financials

Emerson Reports Second Quarter Sales 7 Percent Lower

IMI Announces 4 Percent Lower Revenues in First Quarter

Lupatech Files for Bankruptcy a Second Time

People

ValvTechnologies Appoints New Upstream Director

Projects

Velan Wins Major Order for Valves in Chinese Nuclear Plant

Voith Sends Largest Spherical Valve to Portuguese Pumped Storage Facility

CAT Pump Supplies Valves to UK Offshore Reverse Osmosis Plant

Metso Supplying More Valves for Finnish Cardboard Plant

Rexa Actuators Help North American Pipeline Move Faster

Rotork Actuators Chosen for Thames Project

Bestobell Valves Wins Contract for Chinese Pipeline

New Products

Baker Hughes Releases New Subsea Valve

Emerson Introduces New Pipeline Valve

DeZurik Brings Out New BiDirectional Knife Gate Valve

GWC Announces New API Check Valve

Crane ChemPharma Releases Two New Valves

WORLD WATER AND WASTEWATER DESALINATION

INDUSTRY NEWS

Environmental Executive Moves: Aquarius, Cambrian, Tomi, SERI

NEW PLANT CONSTRUCTION NEWS

Hyflux-led venture wins deal for giant Oman desalination plant

Abengoa Desalination Plant to Supply Water to 500,000

Reverse Osmosis Desalination Kick-started in Qatar with Ras Abu Fontas A3 Project

Mott McDonald to advise on Moroccan Desal Plant

Veolia-led Group Refinances Oman Project

Inovateus completes Caribbean Project

Desalitech System Boosts Paper Manufacturer’s Water Recovery

TECHNOLOGY/NEW PRODUCT NEWS

Evoqua launches Reverse Osmosis System into Asian Industrial Markets

Israel Scales Up Reverse Osmosis Desalination to Slash Costs with a Fourth of the Piping

GE to Install Mobile Reverse Osmosis System at Power Plant

Pelican Water Launches New, Greener Reverse Osmosis System

ORNL-Led Team Demonstrates Desalination with Graphene Membrane

Many projects are detailed in monthly updates under Industry Analysis in the Report’s Chapters

CHEMICALS
ETHANOL
FOOD & BEVERAGE
METALWORKING
MINING

OIL & GAS
OTHER ELECTRONICS
PHARMACEUTICAL / BIOTECH
PULP & PAPER
REFINERIES
SEMICONDUCTOR

POWER

Huge pump expenditures are forecast for flue gas desulfurization systems in the U.S. and China. The specific reports are available separately in Fossil & Nuclear Power Generation: Analysis and Forecast (formerly World Coal Fired) and in Utility Environmental Upgrade Tracking System.

For more information on Industrial Valves: World Market, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028.

PHARMACEUTICAL & BIOTECHNOLOGY

INDUSTRY UPDATE

April 2015

TABLE OF CONTENTS

UNITED STATES

Baxter Expanding Arkansas Medical Products Plant

NeoStem Announces Expanded Cell Therapy Manufacturing

Catalent Pharma Solutions (CTLT)' Expansion in Kentucky

PPD Opens New Chinese Central Lab

First Emerald Cloud Lab Production Facility Unveiled

Regene Acquires New Laboratory Facilities in U.S.

Genentech Announces Expansion in Hillsboro

Tennessee’s LabConnect to Triple Laboratory Space

New Catholic Hospital in Maryland

New Parkland Hospital

Unique Pharmaceuticals Launches Sterile Operations

PRA Health Sciences Launches Early Phase Expansions

G-CON Manufacturing Selected to Build for UTHSC

Bayer Invests in Berkeley, CA Site

Bayer Opens Facility in Pikeville, NC

Ipsen Opens R&D Center

GSK to Establish Global Vaccines R&D Centre in Rockville, MD

REST OF WORLD

New Lab Unveiled at Mintek NIC

Merck & Co.'s Plans for Facility in County Carlow, Ireland

AbbVie Expanding Facilities in Barceloneta, Puerto Rico

Almac to Relocate Protein Business

Novo Nordisk Opens New Insulin Manufacturing Facility in Russia

Ireland Aims to Attract Biomanufacturing with R&D Grants

Sigma-Aldrich Opens Latest Singapore Biopharma Investment

LabCorp, Quintiles and Quest Diagnostics Combining Clinical Trials Lab Operations

South Africa Unveils Cleanroom to Fight Deadly Diseases

Theravectys Opens New Facility

Onyx Scientific Expands GMP Capabilities

Intertek Clinical Research Services Moves to New Laboratory Facility

UK's Leading Disease Lab Offers New Designs

Green Cross to Expand Biologics Market in Russia

SEMICONDUCTOR INDUSTRY UPDATE

April 2015

TABLE OF CONTENTS

CSOT and BOE Expand Facilities

ClassOne Enters ECD Lab Partnership with Shanghai Sinyang

Entrepix Adds 300 mm CMP Capabilities to Phoenix Foundry

For more information on Industrial Valves: World Market, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028.

OIL & GAS SALES LEADS HEADLINES

Oil and Gas Project Tracking is available at a discount to Industrial Valves: World Market subscribers.

Treatment chemicals are an important addition to most oil and gas processes. Access to details on worldwide oil and gas projects is provided at a substantial discount to Industrial Valves: World Market subscribers.

May 22, 2015

(Listed by most current date)

ASCO Wins Shell Prelude Logistics & Supply Base Management Contract

Revision Date: 5/22/2015

Anadarko Considers Selling Mozambique Gas Assets to Exxon

Revision Date: 5/22/2015

Research Report Forecasts LNG Market Demand at 400M Tonnes

Revision Date: 5/22/2015

Total-led LNG Project in Papua New Guinea Targets 1st Gas in 2021

Revision Date: 5/21/2015

Philippines to Get Regas Terminal amid LNG Sector Uncertainty

Revision Date: 5/21/2015

Pioneering LNG-powered Containership Launched in San Diego

Revision Date: 5/21/2015

Petronas to Deliver LNG from World's First Floating Facility in Q1 2016

Revision Date: 5/20/2015

Total-led Papua New Guinea LNG Project Targets 1st Gas in 2021-InterOil VP

Revision Date: 5/20/2015

Japan's Toho Gas to Buy Cameron LNG from Mitsubishi

Revision Date: 5/20/2015

LNG Takes Off in Gas-Rich Mideast as Conflicts Endanger Pipelines

Revision Date: 5/20/2015

French Utility, Engie Considers Acquisitions to Expand in Renewables, LNG Market

Revision Date: 5/20/2015

Hoegh LNG to Deliver FSRU, Vessels to UK's Meridian Project

Revision Date: 5/20/2015

Freeport LNG Closes Financing and Commences Construction of Third Liquefaction Train

Revision Date: 5/19/2015

Venture Global LNG Announces Manufacturing and Engineering Team for Calcasieu Pass Project

Revision Date: 5/19/2015

Petronas Awards FVSB Contract for PFLNG1 Facility

Revision Date: 5/19/2015

Shell to Raise India LNG Plant Capacity by 50 Percent in 2016/17

Revision Date: 5/19/2015

Parallax Energy Purchases Louisiana LNG, Its Second Mid-Scale LNG Facility This Year

Revision Date: 5/19/2015

EPA and Dominion Cove Point Settle Violations at Maryland Natural Gas Distribution Facility

Revision Date: 5/18/2015

Apache Completes Sale of Kitimat LNG to Woodside

Revision Date: 5/18/2015

Bestobell Marine Receives Third Valve Order from China’s Hudong Zhonghua Shipyard

Revision Date: 5/18/2015

Shell to Buy BG Group in $70 Bln Energy Deal

Revision Date: 5/18/2015

Engro Corp and Excelerate Energy Commission Pakistan’s Port Qasim LNG Terminal

Revision Date: 5/18/2015

State Agency Upholds Clatsop County Decision against Gas Pipeline to Oregon LNG Plant

Revision Date: 5/18/2015

Pacific NorthWest LNG & Progress Energy Canada Welcome Approval of North Montney Mainline Project

Revision Date: 5/18/2015

Dominion and Business Partners Celebrate Construction of Cove Point Liquefaction Project

Revision Date: 5/15/2015

Sempra Energy Submits Port Arthur Liquefaction-Export Facilities for FERC Pre-File Review

Revision Date: 5/15/2015

CB&I, Chiyoda and Zachry Group Awarded Contract for LNG Liquefaction and Export Facility

Revision Date: 5/15/2015

Poland Expects LNG Terminal to Launch between Q2 and Q3

Revision Date: 5/15/2015

Texas LNG Initiates FERC Pre-filing for Brownsville Project

Revision Date: 5/15/2015

GE Oil & Gas Wins Long-Term Gas Services Contract

Revision Date: 5/15/2015

GE Wins Twenty Year Contract for Sabine Pass LNG Trains

Revision Date: 5/14/2015

U.S. LNG Projects Hit by Energy Price Slide

Revision Date: 5/14/2015

Delfin LNG Signs Memorandum of Understanding with LITGAS

Revision Date: 5/14/2015

Shell, Chevron Focus on Making Australian LNG More Competitive

Revision Date: 5/14/2015

Dutch Gasunie in $216 Mln Project to Boost Foreign Gas Imports

Revision Date: 5/14/2015

Top U.S. and Canada Officials to Have Oil Train Safety Plan May 1

Revision Date: 5/13/2015

Bechtel Plant Moves to Gas-fired Electricity at its Curtis Island LNG Plant

Revision Date: 5/13/2015

Deep Down Receives Orders Totaling $4.8 Mln