Soaring Market for High Efficiency Air Filters

Hollingsworth & Vose Raising Media Prices

University of Waterloo (Ontario) Upgrades to MERV 13

Mitsubishi Electric, India Combines Efficient Air Filtration and Cooling

Camfil Air Purifiers are Effective in Poorly Ventilated Rooms

Camfil Australia Consolidates Acquired Businesses, Airepure and FilterTech

Glatfelter is Acquiring Jacob Holm

Delta Variant  will Result in Lots of High Efficiency Masks

Daikin Announces Strategic Management Plan "FUSION 25"

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Soaring Market for High Efficiency Air Filters

The public views about air quality are changing and are creating a large long term market for high efficiency filters in HVAC systems. Celebrities are telling us in TV advertisements that you should enter buildings only if they have a Well Health Safety Seal.

Wildfires in Siberia and the Western U.S. are creating unhealthy air just at the time the medical profession is advising the intake of more outside air.

The Delta variant is wreaking havoc around the world. The latest thinking is that vaccinations alone are not going to be adequate. Better indoor air quality along with other measures will be needed.

Upgrades to HVAC systems will typically result in MERV 8 filters being replaced by MERV 13 or even MERV 16.  HEPA filters will be utilized in spaces where large numbers of people will be passing through or congregating.

The use of HEPA room air purifiers has grown rapidly and the trend is likely to continue.

The market for high efficiency filters is very strong in countries where there are large numbers of unvaccinated people. In Asia and Africa it will be years before there is any chance of herd immunity even for a virus less virulent than the Delta variant.

McIlvaine is continually revising air filter and media forecasts in four different efficiency ranges for each country and also segmented by commercial, residential, education, and various  industries. The report also includes forecasts for gas turbine intake filters which use the same media.

The excel based report has more than 20,000 forecasts and is available for $4,000. 

Bob McIlvaine can answer your questions and provide details.  His email is rmcilvaine@mcilvainecompany.com.  You can also reach him at 847 226 2391.

Hollingsworth & Vose Raising Media Prices

The North & Latin American filtration media markets continue to experience significant demand recovery since the downturn in 2020. The global market strength has led to rapidly increasing commodity costs in raw material, transportation and energy.

H&V is committed to its long-standing relationships including consistent supply, ongoing capacity investment and product innovation; therefore, it is necessary to implement a significant price increase in the Americas, subject to contractual obligations. The changes will be effective on filtration media orders shipped on or after August 15, 2021. Regional sales account managers will contact customers to provide additional details about the implementation of the price increase.

University of Waterloo (Ontario) Upgrades to MERV 13

Waterloo’s campuses have 63 major buildings with 398 HVAC units, supporting a variety of research, teaching and staff and student activities. Since November 2020, every building has been retrofitted to accommodate MERV13 filters. MERV13 filters are recommended by the American Society of Heating, Refrigeration and Air-Conditioning Engineers and over the pandemic have become standard across the industry because they are more effective at filtering small droplets and particles that travel through the air (at least 85 per cent efficient at capturing particles in the 1 µm to 3 µm size range).

MERV14 may provide slightly better performance, but are physically too large for the school’s ventilation systems. HEPA filters, although very efficient, may strain ventilation systems and reduce air flow.

Air exchange rates in campus buildings vary, for example, wet science and engineering labs are typically supplied with 100 per cent outside air and have high air exchange rates to limit exposure to various chemical and biological agents. This makes lab environments inherently safe when it comes to filtration of virus particles. Other spaces such as dry labs and classrooms have been designed with comfort in mind and therefore have lower air exchange rates. The mechanical engineering team is reviewing the air flow for all classrooms in preparation for fall.

Mitsubishi Electric, India Combines Efficient Air Filtration and Cooling

With the tropical India summer season on the rise, Mitsubishi Electric has been consistent in understanding its customers’ Air Conditioning needs. Mitsubishi Electric is a premium brand for Air Conditioning systems for residential, commercial, and industrial use. The company aims to capture the market and provides its customers with their latest range of Air Conditioning products inverter and non-inverter categories. 

Its complete Room Air Conditioner (RAC) product range comes with 5-year PCB warranty and 10-year Compressor warranty. Mitsubishi Electric Air Conditioners also provides powerful and advanced multistage air filters – Plasma Quad Connect. These filters effectively prevent viruses, bacteria, molds, allergens, dust & PM2.5 to give clean and healthy air. It is a high-performance air purifying device which can even be installed on existing units, contributing to a better air quality in the  room.

Camfil Air Purifiers are Effective in Poorly Ventilated Rooms

A new study by global air filtration provider, Camfil in conjunction with University College Dublin (UCD) and the Mater Misericordiae University Hospital (MMUH) has found that Camfil's City M air purifiers remove aerosols from poorly ventilated rooms at four times the normal rate. Experiments conducted by leading UCD researcher and lecturer, Dr. Kevin Nolan of the School of Mechanical and Materials Engineering, on the presence of aerosol in poorly ventilated spaces, used Camfil’s City M air purifiers to rapidly clean a room of aerosol. For this experiment, a room at the MMUH in Dublin measuring 4m x 2.5m x 2.6m was filled with aerosol for thirty seconds, with the use of a smoke wand. The presence of aerosol was measured by observing the average image intensity of laser light scattered by the aerosol.

These experiments found that when untreated, aerosol slowly dissipated over 500 seconds. When the City M air purifier was at its maximum speed, the aerosol was cleared in under 160 seconds. When a small heater was used to provide added natural convection flow, the untreated aerosol particles dissipated in an alarming 800 seconds, which was reduced to below 200 seconds with the use of Camfil City M.

The results of these experiments show that Camfil’s City M air purifier can greatly reduce the presence of airborne particles compared to no treatment.

These findings are significant because on April 30th, 2021, the WHO declared that COVID-19 is transmitted mostly through the inhalation of airborne aerosols within close range. Camfil’s air purifiers can reduce the spread of COVID-19, while also tackling more long-standing health problems. The International Agency for Research on Cancer has classified air pollution - particularly PM2.5 - as a leading cause of cancer. High--Efficiency Particulate Air filtration (HEPA) technologies are capable of greatly reducing the circulation of airborne particulate matter by over 99 percent.

Camfil Australia Consolidates Acquired Businesses, Airepure and FilterTech

Following Camfil’s acquisition of Airepure Australia in March 2020, the clean air solutions manufacturer is now consolidating  its Australian businesses.

Airepure Australia Pty Ltd and FilterTech Australia ceased trading, and operate as Camfil Australia Pty Ltd.

Since entering the Australian market in 1999, Camfil has grown its local presence, with operations now located in Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra, and The Gold Coast.

Camfil Australia offers an extensive range of products and technical services supporting a wide range of industry applications. These industries include HVAC, healthcare, pharmaceutical, life science, food and beverage, mining, gas turbines, and many more.

Its combined experience and resources allow it to comprehensively manage and facilitate capital projects and subsequently provide specialist services to customers. Services such as NATA accredited testing complement the core air filtration portfolio.

Glatfelter is Acquiring Jacob Holm

Glatfelter Corporation has entered into a definitive agreement to acquire Jacob Holm, a global leading manufacturer of premium quality spunlace nonwoven fabrics for critical cleaning, high-performance materials, personal care, hygiene and medical applications, for an enterprise value of approximately $308 million including the extinguishment of debt. The deal is subject to post-closing adjustments.

Jacob Holm offers high-performing and innovative spunlace nonwoven technologies and advanced fiber-based sustainable solutions that will meaningfully increase Glatfelter’s diversification into attractive and complementary segments serving the growing wipes, healthcare and hygiene categories.

With the acquisition of Jacob Holm, Glatfelter will acquire four additional manufacturing facilities and six sales offices located in the Americas, Europe and Asia, and approximately 800 employees worldwide. Jacob Holm’s broad product offerings and blue-chip customer base will expand Glatfelter’s portfolio to include surgical drapes and gowns, wound care, face masks, facial wipes and cosmetic masks. The acquisition of Jacob Holm’s Sontara business, a leading brand of finished products for critical cleaning wipes and medical apparel, will also enhance Glatfelter’s technological capabilities.

Jacob Holm generated approximately $400 million in revenue and about $45 million of EBITDA on an LTM basis as of June 30, 2021, supported by strong pandemic tailwinds.  

 “Today’s announcement represents another significant step forward in Glatfelter’s transformation. The combination of Jacob Holm’s quality spunlace and advanced fiber products along with Glatfelter’s industry-leading airlaid and composite fibers products will provide a best-in-class suite of nonwovens technologies, applications, and expertise to serve customers’ growing global demand. By acquiring Jacob Holm, we will further diversify our nonwovens and substrate offerings and enhance our overall innovation capabilities,” says Dante C. Parrini, chairman and chief executive officer of Glatfelter.

Martin Mikkelsen, CEO of Jacob Holm, comments: “We are excited about the prospects and possibilities this combination will present for the combined company and look forward to taking the next step of this new journey. We are pleased to have identified a home for the business with shared values, the proven capability to grow businesses and a clear view to supporting the next growth phase prepared by the Jacob Holm management team."

This isn't the first acquisition for Glatfelter this year. In May the company completed the acquisition of Georgia-Pacific’s U.S. nonwovens business for $175 million. Glatfelter also purchased G-P's European nonwovens business in 2018.

 

Delta Variant will Result in Lots of High Efficiency Masks

The debate over masks is heating up again, with increasing calls for all Americans, regardless of coronavirus vaccination status, to return to wearing face coverings in indoor public places to help thwart the spread of the highly contagious delta variant. But some experts say the recommendations should specify the kind of masks people should be using. The Washington Post interviewed multiple people.

“Delta is so contagious that when we talk about masks, I don’t think we should just talk about masks,” Scott Gottlieb, former commissioner of the Food and Drug Administration, said during a recent appearance on CBS’s “Face the Nation.” “I think we should be talking about high-quality masks,” such as N95 respirators.

In an interview with The Washington Post, Monica Gandhi, a professor of medicine and an infectious-disease expert at the University of California at San Francisco, expressed a similar sentiment: “We can’t say we’re going back to masks without discussing type of mask.”

Vaccinations, experts emphasized, remain the first line of defense against the coronavirus. “Far and away the best prevention we have are still the vaccines,” said Paul Sax, clinical director of the Division of Infectious Diseases at Brigham and Women’s Hospital in Boston. “All of these things pale in comparison to getting the remaining people who are eligible for vaccination vaccinated.”

But amid concerns about the rapid spread of the delta variant, “it’s a fantastic idea at this point in time to move toward higher-quality masks,” especially if you’re unvaccinated or otherwise vulnerable to severe disease, said Chris Cappa, an environmental engineer and professor at the University of California at Davis. And for fully vaccinated individuals who may still be at risk of breakthrough infections, he noted, “the delta variant is a good reminder that we shouldn’t necessarily quit wearing masks when we’re in environments that might be prone to transmission.” 

Here are factors that Cappa and other experts say you should consider about the use of N95 masks.

Not all masks are created equal

The efficacy of a mask is based on its material and fit. Medical-grade respirators, such as N95 masks, can provide greater protection from infectious coronavirus particles than surgical masks or cloth masks, said Linsey Marr, an aerosol expert at Virginia Tech who studies airborne virus transmission.

And because the delta variant is much more easily transmissible than previously circulating strains of the coronavirus, “we really need highly protective masks along with everything else,” Marr said. “Where a simple cloth mask was helpful before, it’s not helpful enough now,” particularly for people who remain unvaccinated.

The woven material of many cloth masks isn’t as effective at filtering particles as the nonwoven, meltblown polypropylene used to make surgical masks and respirators, Marr said. And properly worn N95s have a leg up on standard surgical masks because they are designed to fit snugly to the face — which allows them to filter at least 95 percent of airborne particulates.

“A surgical mask is just a rectangle and you’re trying to pull it to your face,” she said. “Obviously, our faces aren’t in the shape of a flat rectangle, so you inevitably end up with lots of leaks.” 

But, Marr noted, it’s important to be wary of counterfeit respirators. The Centers for Disease Control and Prevention has an online guide with lists of N95 masks approved by the National Institute for Occupational Safety and Health, and tips for spotting counterfeit ones.

KN95 masks, which are manufactured in China and can be equivalent to N95s in effectiveness, have not gone through the NIOSH approval process. But the Food and Drug Administration had authorized some KN95s for emergency use by health-care workers when there was a shortage of N95 masks during the pandemic. While you can refer to that list to find effective and not counterfeit KN95 masks, Cappa said he would still recommend a NIOSH-approved N95. “I can have higher confidence that it is high quality,” he said, and “the ability and ease to get N95s has gone way up.”

Fit and mask care matter

It’s also critical to wear N95s properly, experts said: There should be no gaps between the edges of the mask and your face. To test the seal of your mask, Marr suggested putting on your mask and cupping your hands around it to hold the edges down. If breathing becomes noticeably more difficult, that’s a sign that the mask likely isn’t well-fitted. People who wear glasses can also gauge if their mask is leaky by how much their lenses fog up, Cappa said.

Unlike cloth masks, N95s can’t be washed, so pay attention to the state of your mask. Gandhi said she typically swaps out an N95 every three days as long as it doesn’t become soiled. Between uses experts suggested letting masks air out, preferably in the sun. If there’s any visible signs of wear and tear, it’s time to get a fresh one.

When handling your mask, try to avoid touching the front and make sure to wash or sanitize your hands after, Marr said.

Some people are more at risk

Switching to an N95 mask may especially be a good idea for more vulnerable people, experts said. This includes the unvaccinated as well as those who are vaccinated but may still be at increased risk, Sax said, such as the elderly and the immunocompromised or people with multiple medical problems. “If they need to be in settings where they’re mixing with unvaccinated people or they don’t know the vaccination status, then upgrading their mask is very reasonable.”

It may be less important for fully vaccinated healthy people to have a high-performance mask, experts said. Combining “really almost any mask-wearing” and vaccination still “provide generally quite good protection,” Cappa said.

He recommended that vaccinated, low-risk individuals make decisions about upgrading their masks based on situational factors. Keep in mind, he said, that the longer you’re in an enclosed space in proximity to other people, the more your odds of catching something go up. Community rates of transmission and hospitalizations should also be considered.

There are other ways to boost protection

Although N95s are considered by many experts to be the gold standard, the respirators — which can become uncomfortable after prolonged use — may not be appropriate for all vulnerable populations. Take, for instance, children who are not eligible to receive vaccines but old enough to wear masks.

https://www.washingtonpost.com/lifestyle/wellness/n95-mask-delta-variant-kn95/2021/07/23/ee849e6c-eafe-11eb-97a0-a09d10181e36_story.html

Daikin Announces Strategic Management Plan "FUSION 25"

Daikin Industries, Ltd. has recently formulated its strategic management plan "FUSION 25," which extends from fiscal year 2021 to fiscal year 2025.

In recent years, enormous structural changes have occurred in the economy, industry, and society with faster-than-expected speed and variability. These changes have widely impacted the business activities of the Daikin Group and even the way people live their lives.

With the growing importance of environmental and social contributions, companies are called upon to not only pursue profits but also to take the initiative in resolving the social issues set forth in the SDGs. At the same time, customer needs and values have changed, including a shift from goods to experiences, and market needs have expanded for indoor air quality and ventilation due to the COVID-19 pandemic. Additionally, digital technology advances have greatly impacted corporate activities, and their transformation of business activities has become an issue.

In the strategic management plan "FUSION 25," Daikin sees these dramatic changes as an opportunity and explored themes leading to sustainable growth and development by viewing the world and its goals in the coming 10 to 20 years from a long-term perspective and then utilized the back casting method in deciding which themes to adopt.

To expand its business and continue to grow and develop while contributing to the environment and society, Daikin has established three growth strategy themes: "Challenge to Achieve Carbon Neutrality," "Promotion of Solutions Business Connected with Customers," and "Creating Value with Air."

In addition to these, it set "AC Business in North America" as one theme from the perspective of strengthening existing businesses. Also, in India, where large market growth is expected, it strengthens local production and expands its business aiming to make the region one of the major bases of its global business. Furthermore, Daikin raised five themes to enhance the management foundation: "Strengthening Technology Development Capabilities," "Establishing a Robust Supply Chain," "Promoting Digital Transformation Supporting Innovation," "Creating Market Value and Enhancing Advocacy Activities," and "Improving HR Capabilities Through Advanced Diversity Management" for a total of nine key themes that aim to ensure Daikin success in the era of the new normal.

In terms of the quantitative targets, Daikin has set a sales target of 3.1 trillion yen and an operating profit margin of 10.5% in fiscal year 2023, the third year of "FUSION 25," as a mid-term implementation plan and will make upfront investments that exceed 800 billion yen for further business expansion. Targets for the final year of fiscal year 2025 are sales of 3.6 trillion yen and operating profit of 430 billion yen (for an operating profit margin of 12%).

For carbon neutrality, with the base year set at 2019, Daikin aims for a reduction (in terms of market ratio) of 30% or more in net emissions in 2025 compared with emissions during business growth without implementing reduction measures, and 50% or more in net emissions in 2030 toward achievement of 2050 carbon neutrality.

Through "FUSION 25," a management strategy that focuses on implementation, Daikin will provide new value for the environment and air and realize contributions to a sustainable society and Group growth.

9 Key Group Strategies

(1) Challenge to Achieve Carbon Neutrality

With the base year set at 2019, Daikin aims to reduce actual greenhouse emissions (in terms of market ratio) by 30% or more in 2025 and 50% or more in 2030, compared with emissions during business growth without implementing reduction measures, as it works toward target achievement of “Realizing carbon neutrality by 2050” that was declared in 2018. To this end, Daikin will strive to fulfill its social responsibility by establishing environmentally advanced technologies and setting a course toward carbon neutrality while contributing to reductions in electrical consumption by widespread acceptance of energy-saving products such as heat-pump space and hot water heaters and inverter units, conversion to low GWP refrigerants, and creation of a refrigerant eco-cycle of recovery and reclamation. The heat-pump space and hot water heater business is positioned with a focus on Europe and North America and will accelerate the shift from combustion space and hot water heaters by utilizing the technology cultivated in the air conditioning business. Daikin is also taking on the challenge of new environmental businesses such as participation in smart city projects and energy creation, which are expected to contribute to market expansion and CO2 reductions.

Net CO2 emissions reduction target

(2) Promotion of Solutions Business Connected with Customers

For air conditioning solutions, Daikin is changing to a business model of providing experiences that combine equipment sales with sales of controls, engineering design, and services to fully meet customer needs. By directly connecting with users by application and market such as hospitals and factories, utilizing equipment operation data, and combining energy management and IAQ technology, it works to provide new value such as providing optimal space for each individual and improving comfort and safety.

For refrigeration solutions, Daikin will horizontally develop the energy-saving and environmental technology that have been cultivated in the air conditioning business. In this way, the company intends to contribute to solving social issues, such as food loss along with food safety and security, by establishing a unique store solutions business that includes air conditioning and refrigeration equipment, store design, and maintenance. At the same time, it will take on the challenge of connecting the entire cold chain from place of production to place of consumption.

(3) Creating Value with Air

By creating new products and services to meet the growing needs for indoor air quality (IAQ) and ventilation due to the COVID-19 pandemic, Daikin aims to establish a major IAQ and ventilation business on a global basis. In addition to taking on the challenge of the healthcare sector through the accumulation and analysis of air conditioner and vital data that serve to improve health, the company will strive to create value for IAQ and air environments in order to enrich people’s lives.

(4) Air Conditioning Business in North America

Daikin will expand development of its air conditioning business in each region. In the air conditioning business for North America, the largest market in the world, the company will promote market adoption of inverters, heat pumps, and low GWP refrigerants to meet the stricter environmental policies, such as for environmental and energy efficiency regulations, that are expected to set in the future. Aiming for the No. 1 position in the North American market in fiscal year 2025, it intends to expand energy-saving equipment in the residential and light commercial businesses and implement a full-scale expansion of the solutions business.

(5) Strengthening Technology Development Capabilities

In the rapidly changing external environment, Daikin is shifting resources to technology domains and themes relating to a growth strategy. The Technology and Innovation Center (TIC), which is the technology control tower of the Daikin Group, works together with relevant divisions, including its global R&D bases, to create differentiated technologies and engages in collaborative innovation with external organizations to produce differentiated technologies and products.

(6) Establishing a Robust Supply Chain

Daikin will work to bolster its supply system amid rapidly growing uncertainties that include global supply chain disruptions and the advance of decoupling on a global scale. It further pursues local production for local consumption by shifting to local-based procurement, prepares a production backup system for risks, and leverages digital technologies to reform the supply chain.

(7) Promoting Digital Transformation for Innovation

Digital investments will significantly grow. Together with providing value corresponding to diversifying customer needs, Daikin will increase the speed of digital technology development, build digital platforms, connect equipment, and promote monozukuri and SCM reforms. In-house HR training centered on the Daikin Information and Communications Technology College (DICT) will develop 1,500 people by 2023 to facilitate the creation of new products, services, and business models.

(8) Creating Market Value and Enhancing Advocacy Activities

Daikin will work to gain broad stakeholder support for its technologies and products that contribute to the resolution of social issues, including achieving carbon neutrality and IAQ, and enhance market value. It will promote the widespread adoption of R32 and inverter products where their penetration rate is still low, accelerate the use of heat pumps to mitigate the effects of global warming, and perform refrigerant recovery and reclamation.

To create new value with air, Daikin will seek the involvement of universities, research institutes, and industries to establish new safety and security standards.

(9) Improving HR Capabilities Through Advanced Diversity Management

Daikin will enhance the corporate culture based on "People-Centered Management," which is the foundation of its company growth and development, by further adapting the organizational DNA to the changing times and promote it throughout the entire Group. The company will develop human resources measures in which all members around the world can grow and fully exhibit their diverse individuality and infinite potential. In the era of the new normal in which workstyles and way of life have changed from the impact of COVID-19, Daikin will implement a system that leads to an increase in productivity and new value creation.

FUSION 25 Overview