NEWS RELEASE                                   MARCH 2007

The World Market For Sedimentation And Centrifugation Equipment Will Rise To $6 Billion In 2010

The world market for centrifuges, clarifiers, dissolved air flotation systems and hydrocyclones will grow from just over $5.4 billion in 2006 to $6 billion in 2010. Clarifiers and thickeners will generate the most revenues.  These gravity-settling devices are widely used.  They are found in every country from Chilean copper mines to Taiwanese sewage treatment plants.  The second largest equipment category is the disc centrifuge that is used as a dairy separator as well as a purifier of pharmaceuticals, wine and many other products.  Third on the list is the decanter centrifuge.  It dewaters sewage sludge and coal fines as well as food products.

Fourth place belongs to the miscellaneous centrifuge segment.  Basket and pusher centrifuges are widely used in the chemical industry and are used in sugar and other food processing applications as well.  In fifth place is the dissolved air flotation (DAF) system. This device is replacing sand filters in municipal drinking water purification as well as cleaning wastewater in chicken processing plants and drive-in car washes.  Last on the list with just 13 percent of the market is the hydrocyclone which is used in minerals processing and power plant scrubber wastewater cleaning.

There are several hot markets for centrifuges.  One is ethanol.  Double-digit growth rates are being experienced in ethanol investment in the U.S. and Brazil.  Other countries are also planning big investments to mitigate the dependence on Middle East oil.

Tar sands is a big and active market.  A number of multibillion dollar projects are underway in western Canada.  Disc centrifuges are used to process the bitumen froth and separate the water and sand from the product.

Alfa Laval is the leader in both the decanter and disc centrifuge category followed GEA Westfalia who is second in both categories.  Because of the high speed and demanding manufacturing requirements, there is less Asian competition in centrifuges than in the other devices.  The centrifuge market is dominated by U.S., European, and Japanese manufacturers.  In contrast, there are clarifier and DAF suppliers in virtually every country.  GLV is the market leader in thickeners and clarifiers.

The food segment is the largest with sedimentation and centrifugation revenues of over $1.l billion in 2010.  This includes dairy separators.  Municipal wastewater is the second largest market.  Power is the third largest market and growing due to new construction of coal-fired boilers in Asia and the U.S.  The mining industry is the forth largest segment. South America, Africa, and Asia are the high growth regions.

The pharmaceutical industry is one of the smaller segments, but it is the highest growth segment.  This is in part due to the critical role that disc separators play in the production of biotechnology products.

There will be a substantial increase in the purchase of clarifiers/thickeners and hydrocyclones by U.S. power plants as they install flue gas desulfurization systems over the next eight years.  Centrifuges are used for dewatering gypsum.  Clarifiers are used in dewatering and wastewater treatment.

The biggest growth market, however, will be China which is making huge investments to build wastewater treatment plants and coal-fired boilers.  At the same time, China is also experiencing growth in the basic industries which are also major users of sedimentation and centrifugation equipment.