More Than 50 Percent Of The World’s Ultrapure Water Products Will Be Purchased
By Just 50 Companies
Power plants, electronics manufacturers and pharmaceutical producers will spend
$4.6 billion in 2015 on products and services to purify water to such an
exceptional degree that there is a whole classification called “ultrapure”
water. This purity is obtained with a combination of chemicals and
physical process steps such as reverse osmosis (RO) and ion exchange.
The purchases will be concentrated among relatively few companies.
The top 20 companies will purchase 37 percent of the total products and
the top 50 companies will average more than 1 percent each ($23 million).
The top 8 semiconductor companies will account for purchases of $795 million.
The top 10 power generator purchases will total $625 million. The top 4
flat panel and other electronics manufacturers will spend $284 million.
The Top 10 Purchasers Will Be
# |
Company |
Semi |
Other Electronic |
Power |
1 |
Samsung |
x |
x |
|
2 |
Intel |
x |
|
|
3 |
TSMC |
x |
|
|
4 |
EDF |
|
|
x |
5 |
LGE |
|
X |
|
6 |
Sony |
X |
x |
|
7 |
SK Hynix |
X |
|
|
8 |
Micron |
x |
|
|
9 |
China Datang |
|
|
X |
10 |
China Guodian |
|
|
x |
Pfizer is the top pharmaceutical purchaser but is only ranked #23 on the list of
the 40 largest purchasers.
The large ultrapure water product purchasers are moving toward global
sourcing for several reasons. One is the importance of the products to the plant
operations. A single small particle can cause rejection of a $300
chip. Contaminated drugs are one of the biggest concerns of pharmaceutical
companies. The ultra supercritical power plants which are now under
construction require water purity levels far greater than the sub critical power
plants which they are replacing.
The second reason for global sourcing is to facilitate evaluations on total cost
of ownership. The high cost of these evaluations is spread out among a number of
purchases. The benefits of buying the best rather than lowest price
products far outweigh the costs.
The combination of concentration of buying power and emphasis on highest quality
products creates a new and major opportunity for ultrapure water system, product
and service providers. McIlvaine has created a new route to market to take
advantage of this opportunity. It combines N029
Ultrapure Water: World Market
with other McIlvaine services to provide detailed forecasting of Markets,
Prospects and Projects.
For more information contact Bob McIlvaine at
rmcilvaine@mcilvainecompany.com.
DETAILED FORECASTING OF MARKETS, PROSPECTS AND PROJECTS
It is now possible to precisely segment and predict markets, identify the
prospects, and track the most important projects.
A few hundred companies make most of the flow control and treatment purchasing
decisions. McIlvaine is identifying them and reporting on their
activities.
Detailed forecasting of markets, prospects and projects provides the following
benefits:
Improve decisions on allocation of direct sales, promotion and development
expenditures
Increase orders cost effectively
Review strategy with better insights as to improvement
Find out the details with:
Why International Suppliers Should Focus On Top 200 Purchasers
Many companies recognize the importance of large customers and have assigned
personnel and resources to them. By providing precise forecasting and organized
information on large customers, this major opportunity can be maximized.
McIlvaine achieves this with the
Detailed Forecasting, Large Project Tracking Program.
The important parameters are:
·
The top 200 suppliers buy more than 60 percent of the products and services.
·
A special program should be created to sell to this group.
·
International suppliers have the best opportunity selling to large international
customers.
·
International customers want global suppliers.
·
Large customer are willing to pay higher prices for higher quality equipment and
services and are willing to expend the effort to make a total cost of ownership
evaluation.
·
Precise forecasting by product, company and project coupled with timely
information will provide the supplier with the tools he needs.
The Arcelor Mittal example:
Arcelor Mittal is one of the top 200 flow control and treatment purchasers.
Arcelor Mittal produces 98 million tons of steel per year at 194 sites.
It produces twice as much as the nearest competitor or 6 percent of the
1.6 billion tons of steel produced last year.
It is also one the largest mining companies with both iron ore and coal
mining capacity. The company has production sites around the globe making it one
of the top 200 purchasers of flow control and treatment equipment.
Last year it purchased 1.3 percent of the fabric filters and bags.
It is a major valve purchaser with some plants operating more than 50,000
valves.
The company has adopted a global procurement program based on total cost of
ownership. This program launched in
2007 places emphasis on life cycle cost and not initial price.
It seeks long term relationships pooling knowledge and deploying
specialized technical knowledge.
This means that companies with better products have the opportunity to charge
the prices commensurate with product value.
They also have an opportunity to provide global service to help ensure
the lowest cost of ownership.
Air programs: The Company is
focused on reduction of dust, NOx and SO2.
The capital investment in steel plant air pollution control projects in
2014 was $180 million. Dust
emissions were 621 grams per ton of steel produced which is down 24% percent of
the 2010 level. NOx
emissions fell 4 percent in 2014 to 1.1 kg/ton of steel and SOx
emissions decreased 3 percent.
Dust emissions from mining operations fell 6 percent to 5.3 million tons in 2014
while NOx fell 3 percent and SOx 26 percent (mainly due to
a fuel change).
In 2014 ArcelorMittal R&D division worked on 13 air emission projects to improve
dedusting systems and also processes.
Water Programs: The steel plants
use large quantities of water for cooling and are located adjacent to lakes or
rivers. Of 134 steel sites, 20 are
located in regions which are experiencing water stress or scarcity. As a result,
the Global R&D group is focused on water reuse and zero liquid discharge.
The water treatment laboratory in Asturias, Spain is investigating green
technologies to minimize pollutants.
Water at the mines needs to be treated before discharge.
Water is also used for dust suppression, transporting tailings and
concentrating ores. Some mines such
as El Volcan in Mexico use special thickeners to avoid the use of tailing ponds.
The Indiana Harbor Works has installed a zero liquid discharge system (ZLD).
The Newcastle, S.A. site has just commissioned a $40 million facility to
treat wastewater. ZLD is already
being accomplished at Saldanha and Vanderbijlpark. Two mine water treatment
plants are in design and construction in Kazakhstan.
A major water reduction program has been underway in Romania.
Arcelor Mittal in McIlvaine Program
Several McIlvaine project tracking systems cover the large ArcelorMittal
projects around the world.
Location |
Timing |
Project Description |
Aviles/Gijon
Spain |
2016-2019 |
Reconstruction of two of 45 coke
oven batteries with collection
and scrubbing system. |
Ghent, Belgium |
2016-2017 |
$100 million bio ethanol plant
using CO gas from steel with
eventual capacity of 47,000 tons
of ethanol/yr. |
Germany |
2016 |
Minor projects in Bremen,
Duisburg, Brandenburg and
Hamburg including galvanizing
lines and new pre heat furnace. |
Bosnia -Herzegovina |
2015-
2016 |
New dust filters for BOF furnace
with mid 2016 completion date.
New filters for sinter
plant are already installed.
Sinter machine #4 precip
internals also replaced. |
Calvert Alabama |
2015-
2016
|
$6.7 million for coating line
with pumps and $40 million for
slab yard expansion. |
Ostrava
Czech Republic |
2014-2016 |
Valmet is supplying new CFB
coal-fired boiler to replace old
existing coal-fired boilers.
Fabric filters will be used for
dust capture. |
Ostrava
Czech Republic |
2014-2016 |
ZVVZ-Enven Engineering is
supplying $25 million DeSOx
project and CKD Phraha is
supplying a $50 million DeNOx
system. |
Hunan Valin
China |
2014-2017 |
New $832 million automotive
steel plant. |
Acindor
Argentina |
2013-
2017 |
400,000 ton/yr. rolling mill was
initiated in 2013 with
expectation of a two year
completion date.
Five other production
lines at the site produce 1.7
million tons/yr. |
Dunkirk
France |
2013-2015 |
New $110 million revamp of blast
furnace #2 to be completed this
year. |
There is also detail on specific plants.
ArcelorMittal Burns Harbor LLC
Unit ID:
Hot Dip Coating Line Annealing Furnace Click
on Unit ID to view Emissions Data
Equipment:
Selective Catalytic Reduction - SCR
Installation Year: 1999
Primary Contact Name:
Robert Maciel Manager, Environmental Services
Telephone:
219-787-4973 E-mail: robert.maciel@arcelormittal.com
Unit ID:
Boiler 3
Click on Unit ID to view Emissions Data
Operating Hrs. /Yr.:
8760 Fuel: natural gas, coal
Equipment:
Electrostatic Precipitator
ArcelorMittal Indiana Harbor LLC
There are links to air and water permits with considerable detail on each
emitting source:
·
Arcelor Monessen coke plant Air
permit from 2014-2019 covering coke oven pushing and quenching the
desulfurization plant, the coke pushing baghouse and benzene NESHAPS control
system but an environmental group PennEnvironment is suing the plant for
emitting excess soot, acidic gases and noxious
odors since the decades-old facility went back into operation in April 2004.
·
Minorca Mine Virginia City Minnesota air permit with requirements for fabric
filters and scrubbers used in the concentrating and pelletizing of 9 million
tons/yr. of taconite ore to manufacture 3 million tons/yr. of pellets.
·
Weirton West Virginia 3 small oil- and gas-fired boilers air permit expires in
2016. A 2012 Title V permit expiring in 2017 covers the reheat furnaces, hot
strip mill pickling lines and HCl regeneration.
An NPDES permit on the water side covers 18 mgd of cooling water
discharge and 9 mgd of treated wastewater.
·
Dofasco Ontario facility paid $390,000 penalty in 2014 for excess blast furnace
emissions.
·
ArcelorMittal Steel USA, Inc. - IN Harbor East, Permit No. IN0000094 - RENEWAL
covers iron & steel, rolling mill operations and finishing operations with
additional support operations: power generation, wastewater treatment with
discharge to the turning base and ship canal.
Several storm water outfalls which have the potential to discharge to
these waters are also covered by this permit.
There are details on specific flow control and treatment products:
Pumps: Hydro descaling pumps are used at the Indiana plant. Weir received an
order for $2.8 million for Warman slurry pumps for tailings transfer at Krivoy,
Ukraine.
Sedimentation/Centrifugation: Dawco
installed a 43m diameter thickener, a 25m diameter water tank, a pump house
building and a piperack that connects to the concentrator sector of the Mount
Wright Iron Mining Complex in Fermont, Québec.
Monitoring: CiDRA SONARtrac®
Process Monitoring Technology is used for product transfer measurement on a 27
km hydrotransport slurry pipeline in Mexico that runs from nearby mines to steel
plant in Lázaro Cárdenas City, Michoacán. A high pressure pump injects the
slurry into the steel pipeline for the 27 km transit to the pelletizer plant.
Valves: ArcelorMittal Tubarăo (formerly CST-Arcelor) Brazil, had Life Cycle
contracts with Metso for all automated control, manual and safety valves
throughout the ArcelorMittal Tubarăo’s plant in Serra City. The total is almost
40,000 valves and included over 700 control valves.
In 2015, ArcelorMittal Tubarăo, awarded SGS a four-year contract for the
maintenance of security and control valves. A specialist team of 30 experts will
detect the type of maintenance required for each valve. Valves will then be
removed, opened, serviced and reinstalled. If major repairs are required, the
valve will be taken to the dedicated SGS workshop in the city of Serra.
ArcelorMittal Gent is using 25 Econ-ARI Stevi®
control valves and accessories from Econosto
in order to reduce power consumption in a series
of heat exchangers. With this investment, the
steel producer expects to reduce its energy bill
by between € 60,000 and € 80,000 per year.
For more information on
Detailed
Forecasting, Large Project Tracking Program
contact
Bob McIlvaine at:
rmcilvaine@mcilvainecompany.com
847-784-0012 ext. 112. |
OEM Networking Directory Has the Contacts at Consulting and Supplier Companies
If you sell systems, scrubbers nozzles, packing or corrosion resistant materials
you will use the McIlvaine OEM
Networking Directory daily. Check it out at: 53DI
OEM Networking Directory.
Here are some headlines from the Utility E Alert:
§
Nederman China receives Order for Boiler Flue Gas Cleaning Project
§
Barapukuria Coal-fired Power Plant adds Third Unit
§
ABB wins Orders worth $300 Million for China Power Projects
§
China to finance Second Coal-fired Power Plant at Thar Block II
Huaneng Bayanbaolige 1,320 MW proposed Coal-fired Power Plant in Inner Mongolia
Autonomous Region, China
§
Clean Power Plan is unfolding
§
This Year 133 Companies will buy 55 Percent of Fabric Filters
§
Seventeen Power Plant Owners have Purchased 56 Percent of all the World’s FGD
Systems
§
Carbonxt and United Conveyor Corporation launch Joint Air Quality Control
Offering
§
Precipitators can compete with Fabric Filters – Hot Topic Hour Thursday October
22, 2015Upcoming Hot Topic Hours
The Utility E-Alert is issued weekly
and covers the coal-fired projects, regulations and other information important
to the suppliers. It is $950/yr. but is included in the $3020
Utility Tracking
System which has data on every plant
and project plus networking directories and many other features.
State by State Forecasts Needed by Suppliers of Flow Control and Treatment
Products and Services
The market for flow control and treatment (N064
Air/Gas/Water/Fluid Treatment and Control: World Market)
will be over $350 billion this year. The market has been segmented into 80
countries and sub regions. Some of the smaller countries account for less than
0.1 percent of the total. By contrast, California accounts for 2 percent
of the total, so international suppliers need to segment the U.S. by region and,
in many cases, by State. This is accomplished in a supplemental report,
Analysis & Forecast by
Industry & State.
The food segment provides an example. The U.S. flow control and treatment in the
food industry represents more than 22 percent of the world total.
Expensive pumps and valves are needed to meet the sanitary requirements of food
processors. Cross-flow membranes
not only provide high purity water and clean wastewater but are concentrating
liquids such as juices and corn syrups.
Fabric filters are used not only for air pollution control but to capture
product in hot gas streams e.g. coffee spray driers.
The U.S. will purchase two hundred and twenty times more food flow control and
treatment products and services than Guatemala this year.
FOOD INDUSTRY(%s)
BASE YEAR 2014 |
||||||||
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
United States |
21.80 |
22.30 |
22.82 |
23.36 |
23.92 |
24.50 |
25.09 |
25.69 |
Canada |
1.95 |
1.98 |
2.02 |
2.06 |
2.09 |
2.13 |
2.18 |
2.22 |
Mexico |
2.39 |
2.49 |
2.61 |
2.73 |
2.87 |
3.01 |
3.17 |
3.35 |
Argentina |
0.98 |
1.01 |
1.04 |
1.07 |
1.10 |
1.13 |
1.17 |
1.20 |
Brazil |
3.11 |
3.17 |
3.23 |
3.30 |
3.36 |
3.43 |
3.51 |
3.59 |
Chile |
0.44 |
0.45 |
0.47 |
0.48 |
0.50 |
0.52 |
0.54 |
0.56 |
Colombia |
0.69 |
0.72 |
0.76 |
0.79 |
0.83 |
0.86 |
0.90 |
0.94 |
Ecuador |
0.21 |
0.22 |
0.23 |
0.23 |
0.24 |
0.26 |
0.27 |
0.28 |
Guatemala |
0.11 |
0.11 |
0.11 |
0.12 |
0.12 |
0.13 |
0.13 |
0.14 |
The state analysis segments each industry by state and aggregates it into nine
regions. California represents 10 percent of the U.S. food industry flow
control and treatment market while the Pacific states account for more than 14
percent.
FIGURE I-2B: U.S. Food
Industry - Percent of U.S.
2014 Total |
|
|
|
|
||||
STATE |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2029 |
2021 |
Alaska |
0.32 |
0.33 |
0.35 |
0.36 |
0.37 |
0.39 |
0.40 |
0.42 |
California |
10.26 |
10.67 |
11.10 |
11.54 |
12.00 |
12.48 |
12.98 |
13.50 |
Hawaii |
0.22 |
0.23 |
0.24 |
0.25 |
0.26 |
0.27 |
0.28 |
0.29 |
Oregon |
1.21 |
1.26 |
1.31 |
1.36 |
1.42 |
1.47 |
1.53 |
1.59 |
Washington |
2.08 |
2.16 |
2.25 |
2.34 |
2.43 |
2.53 |
2.63 |
2.74 |
TOTAL Pacific States |
14.09 |
14.65 |
15.24 |
15.85 |
16.48 |
17.14 |
17.83 |
18.54 |
McIlvaine continues to adjust forecasts based on a number of its own reports
plus U.S. census data such as the number of employees in each facility in each
industry.
NAICS |
Alabama Food manufacturing
facilities--- # of employees |
25 |
50 |
200 |
300 |
500 |
3111 |
Animal Food Manufacturing |
39 |
20 |
16 |
3 |
0 |
3112 |
Grain and Oilseed Milling |
8 |
2 |
4 |
2 |
0 |
3113 |
Sugar and Confectionery Product Manufacturing |
14 |
13 |
1 |
0 |
0 |
3114 |
Fruit and Vegetable Preserving and Specialty
Food Manufacturing |
8 |
6 |
1 |
0 |
1 |
3115 |
Dairy Product Manufacturing |
8 |
4 |
1 |
3 |
0 |
3116 |
Animal Slaughtering and Processing |
79 |
34 |
9 |
16 |
20 |
3117 |
Seafood Product Preparation and Packaging |
22 |
9 |
9 |
4 |
0 |
3118 |
Bakeries and Tortilla Manufacturing |
74 |
61 |
9 |
4 |
0 |
3119 |
Other Food Manufacturing |
26 |
11 |
8 |
6 |
1 |
3121 |
Beverage Manufacturing |
43 |
37 |
2 |
4 |
0 |
Analysis & Forecast by Industry & State
is available as a supplement
to (Air/Gas/Water/Fluid
Treatment and Control: World Market) or
to any of the other McIlvaine reports on pumps, valves, filtration, air
pollution control, etc. Customized excel spreadsheets can be provided for
specific products e.g. diaphragm pumps, ball valves, or polymers for water
treatment. For more information contact Bob McIlvaine at
rmcilvaine@mcilvainecompany.com.
300 Large Oil and Gas Projects Account For 80 Percent of the Flow Control
and Treatment Purchases
Some oil and gas projects include hundreds of millions of dollars of pumps,
valves, filters, compressors and other flow control and treatment equipment.
The top 300 projects each year account for more than 80 percent of the
purchases. McIlvaine tracks these in the bi-weekly
Oil, Gas, Shale, Refining E-Alert.
October 30 Oil and Gas E
Alert covering two week period |
||||
Project Name |
Description |
Total Amount
$ Millions |
Flow
Control
Treat
$ Millions |
Order
Yr
20+ |
Enbridge |
Canadian pipeline |
38,000 |
300 |
16-19 |
Odebrecht |
Pipeline in Peru |
4,000 |
40 |
17-19 |
Golar |
FLNG off Cameroon |
8,000 |
90 |
17 |
Saudi Arabia's PetroRabigh |
Petrochemical and refining
complexes |
10,000 |
200 |
16-18 |
Dung Quat Refinery |
New refinery in Vietnam |
4,000 |
90 |
16 |
Rosneft |
New refining and petrochemical
complexes in Eastern Russia |
10.000 |
200 |
17-19 |
10 additional large projects |
LNG, refining, extraction |
50,000 |
1,000 |
16-19 |
Total |
|
124,000 |
1,920 |
|
Sixteen projects reported in the latest bi-weekly issue account for close to $2
billion of purchases of flow control and treatment equipment. The scope
includes oil and gas extraction, LNG, gas-to-liquids processing, and tar sands
processing.
The Alert is available separately but is also available as part of
N049 Oil, Gas,
Shale and Refining Markets and Projects, which
provides a complete program for detailed market, prospect and project
forecasting. For more information on
Oil, Gas, Shale, Refining E-Alert:
click on:
http://home.mcilvainecompany.com/index.php/databases/28-energy/991-71ei.
-------
You can register for our free McIlvaine Newsletters at:
http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm.
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com