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· New Industrial Dust Collection System Safely Contains Food Processing Dusts

· Dürr Acquisition of Megtec Expands Portfolio in Exhaust Air Purification Technology

· Donaldson Company Breaks Ground for New Material Research Center at its Corporate Headquarter in Bloomington, MN

There are significant changes underway in the Combust, Flow, and Treat (CFT) industry. They are triggered by the following:

· The profit opportunities are in high performance rather than general performance products

· The large international purchasers will shape the market rather than countries or regions

· Individual companies need to develop organic and acquisition growth strategies taking into account these factors

Combust, flow, and treat (CFT) suppliers have to deal with the reality that Asia is where the game will be won or lost. 1n 1946 the U.S. generated most of the coal fired power. It produced most of the steel, chemicals, and pharmaceuticals. Today China produces more than half the world’s coal-fired power, cement and steel. Asian countries are rapidly building generic drug plants. Taiwan, South Korea, China and Japan dominate semiconductor wafer fabrication.

European suppliers such as KSB and Metso have long coped with the reality of small domestic markets. They have become true international suppliers with substantial Asian market share. U.S. companies have not fared so well. GE, Babcock & Wilcox, and a number of the pump and valve companies have failed to become Asian leaders.

There are exceptions. Thermo Fisher has set up its world air pollution research center in China. Let’s consider the intellectual property implications. The company is affirming that they have loyal employees who will guard intellectual property regardless of where they are located. In fact, international business is based on trust.

In the coal-fired power business MHPS based in Japan and Doosan based in South Korea have built relationships with partners around the world and have succeeded whereas Combustion Engineering, Foster Wheeler and Babcock & Wilcox who once dominated coal fired power are now part of other companies or have a reduced role. The Chinese boiler system suppliers are playing a large role not only within China but in the rest of Asia.

The U.S. has one big advantage. It is producing low cost oil and gas thanks to hydraulic fracturing. However, U.S. CFT suppliers will look over their shoulder to see Sinopec in pursuit. Sinopec is supplying complete fracking truck systems in the U.S. using Chinese made pumps and valves. Sinopec has just purchased some of stock of Boqi, who is one of the three largest air pollution companies in China.

The profit opportunities are in high performance rather than general performance products.

For high performance products, International suppliers will justify greater R&D based on the expanded sales potential. This will lead to better products and higher margins. Local suppliers of general performance products will reduce the international opportunities in this segment.

Higher performance products are purchased based on life cycle costs. Purchasers are increasingly relying on data analytics and remote monitoring to enable them to accurately determine the TCO.

China is now a manufacturer of high-performance products. The fact that Neway Valve is supplying valves to the nuclear industry around the world is one example. China is now operating far more ultra-super critical coal fired boilers than the rest of the world combined. The air pollution systems are subject to the tightest standards worldwide.

In possibly the most important initiative China is encouraging ultra-low emissions by supporting third party operation of air pollution control systems. This is allowing system suppliers such as Boqi to transform their business model from build to build, maintain and even own. Contracts are let based on meeting emission limits for a fixed fee. This creates a big opportunity for international suppliers with better pumps, valves, nozzles, filter bags, or fans to participate in the Chinese market. The BOO operators become major CFT product purchasers.

The development has downside risks for international suppliers. Since China operates close to 50 percent of the world’s coal fired boilers, the development of the best products will most likely happen in China. Therefore, the international suppliers will need to have superior R&D and superior products to win.

The large international purchasers will shape the market rather than countries or regions.

End users such as BASF and Arcelor Mittal are making CFT decisions for plants scattered throughout the world. More than half the CFT purchases will be made by just 10,000 companies. Suez and Veolia are major worldwide CFT purchasers because of their third part operation initiatives. Now a whole new wave of Chinese companies will also be in this category. This includes not only operations within China but all along the new Silk Road with the Chinese Belt and Road Initiative (BRI).

Taking into account these factors, individual companies need to develop organic and acquisition growth strategies.

Success is not going to be predicted from the extension of past financial results. Companies such as B&W, Eastman Kodak, IBM, U.S. Steel and many others have learned this the hard way. When one valve or pump company is considering acquisitions, a major question should be “how will this impact market share in Asia.” A CFT company will not be able to dominate regions representing 40 percent of the world while allowing competitors to dominate the other 60 percent.

A program to effectively pursue the international CFT markets is outlined under Most Profitable Market Program at www.mcilvainecompany.com.

The capacity of installed coal-fired power plants will increase from 2 million MW to close to 2.3 million MW between 2018 and 2022. For some countries such as Belgium, coal has been phased out. But for others such as Bangladesh, there will be sixteen times as much coal-fired capacity in place in 2022 as in 2018.

Coal Plants by Country (MW) Installed Base
Country	2018	2019	2020	2021	2022	2023	2024
Albania	0	0	0	0	0	0	0
Argentina	350	350	350	350	350	350	350
Australia	24,442	24,442	24,442	24,442	24,442	24,442	24,442
Austria	635	635	635	635	635	635	635
Bangladesh	525	1,200	2,500	5,500	8,000	10,000	12,000
Belarus	0	0	0	0	0	0	0
Belgium	0	0	0	0	0	0	0
Bosnia & Herzegovina	2,073	2,073	2,073	2,073	2,073	3,000	4,000
Botswana	600	600	732	732	732	1,200	1,200
Brazil	2,804	2,804	2,804	2,804	2,804	3,400	3,400
Bulgaria	4,889	4,889	4,889	4,889	4,889	4,889	4,889
Cambodia	505	505	505	505	1,200	1,200	2,000

McIlvaine has published a new database for coal-fired power capacity additions through 2024 for every country of the world. This database is included in 42EI Utility Tracking System.

Coal-fired power represents the largest single opportunity for suppliers of combust, flow and treat (CFT) equipment. The replacement and repair for existing plants far exceeds that of any other application. There is so much new plant construction in Asia that coal-fired generators remain the leading purchasers of new systems and components. The market is very challenging for CFT suppliers because the geographies and decision makers keep changing.

Who would have predicted that in terms of CFT products for new plants, the U.S. would not be in the top 50 countries and that India, Vietnam, Indonesia and Turkey would be near the top behind China? Who would have predicted that China would have tougher standards for the combination of greenhouse gases and air pollutants than any other country?

Non-Chinese suppliers of instruments, valves, pumps, nozzles, seals, mist eliminators, filter bags, precipitator rappers and DeNOx catalyst need to be innovative to keep leadership positions when more than 50 percent of the market is in China. The emergence of Chinese coal-fired generator and APC system suppliers on the world stage has both negative and positive implications for the international CFT suppliers. The negative aspect is that the suppliers will tend to use Chinese components. The positive aspect is that many of these companies are now supplying build, own, operate systems. If an international supplier has the lowest total cost of ownership (LTCO) product, then he has a chance to sell to Chinese system suppliers who are charging owners a fixed price per kW.

This opportunity can be seized with the aid of tools developed by the McIlvaine Company which are outlined in the Most Profitable Market Program explained at www.mcilvainecompany.com.

The future is in total solutions. A valve or a pump is no better than the way it is used in a system. Many of the opportunities will take place in countries where the supplier does not have a strong sales presence. Working with local entities is one option. Another is to collaborate with other suppliers of complimentary products and jointly chart a sales strategy for a particular country. McIlvaine will be participating in a half-day session at PowerGen to discuss these options.

In many cases the supplier already has representatives or company personnel in the target country. These people can be most effectively used by busting the geographical and application silos. These people can become more effective if there is a forecast of the product sales potential at each major prospect. In most cases a successful sale needs the efforts of multiple people at disparate locations. Maximizing their contribution is a goal of the SiloBuster program.

Success is contingent on providing the lowest total cost of ownership (LTCO) and then validating it (LTCOV). With remote monitoring and data analytics the cost and performance of each CFT product will be tracked. Suppliers need to understand the processes, adapt their products to make them superior and then validate this superiority through all the means available including exhibitions, media and some innovative routes to market as explained in 44I Coal Fired Power Plant Decisions.

Purchases at each large power plant are large enough that a specific revenue opportunity can be generated and a program to pursue it put in place.

Corporate Name: EVN	Unit Size: MW 660
Plant Name: Genco 3 Vinh Tan 2	Vĩnh Tân commune, Tuy Phong district, Bình Thuận province. Vietnam
Unit # 1	Specific product purchases 2019
Forecasts can be supplied for sixteen types of valves, four types of pumps, actuators, limestone, lime, precipitator internals, dust bags, gas instrumentation, liquid instrumentation, controls, treatment chemicals, ammonia, urea, catalyst, cartridges, dewatering filter belts, membrane modules, linings, nozzles, mist eliminators, fans, air compressors, oxidation compressors, motors, VFD, seals, packing, hose, couplings, compressed air filters, lubrication filters.	Ball Valves - $170,000
	Butterfly Valves - $120,000
	Globe Valves - $190,000
	Plug Valves - $100,000
	Gate Valves - $150,000

A complete profile on EVN as well as every major utility is provided in the Utility Tracking System along with capacity in MW for thousands of operators and 15,000 individual units.

The Utility Tracking System 42EI Utility Tracking System provides coal-fired capacity forecasts for each country. The capacity will increase from 2 million MW to close to 2.3 million MW between 2018 and 2022. For some countries such as Belgium, coal has been phased out. But for others such as Bangladesh, there will be sixteen times as much coal-fired capacity in place in 2022 as in 2018.

Coal Plants by Country (MW) Installed Base
Country	2018	2019	2020	2021	2022	2023	2024
Albania	0	0	0	0	0	0	0
Argentina	350	350	350	350	350	350	350
Australia	24,442	24,442	24,442	24,442	24,442	24,442	24,442
Austria	635	635	635	635	635	635	635
Bangladesh	525	1,200	2,500	5,500	8,000	10,000	12,000
Belarus	0	0	0	0	0	0	0
Belgium	0	0	0	0	0	0	0
Bosnia & Herzegovina	2,073	2,073	2,073	2,073	2,073	3,000	4,000
Botswana	600	600	732	732	732	1,200	1,200
Brazil	2,804	2,804	2,804	2,804	2,804	3,400	3,400
Bulgaria	4,889	4,889	4,889	4,889	4,889	4,889	4,889
Cambodia	505	505	505	505	1,200	1,200	2,000

The Alert 41F Utility E-Alert provides project news. Background details can be found in the tracking system database. The SiloBuster program can be used to coordinate the sales effort. The revenue forecast for specific products at each plant provides a long-range tool for which this updated information is just a small piece of the puzzle. The program is geared to provide maximum value to those suppliers selling high performance products. Success comes with a long-term program that convinces the customer to include the supplier on a bid list whenever the opportunity arises.

Although the coal-fired market is challenging the Most Profitable Market Program provides a route to market to maximize success. For more information on the program contact Bob McIlvaine 847-784-0013; rmcilvaine@mclvainecompany.com.

Andritz supplied dry scrubbers to the Chilean electricity generation company AES Gener S.A. and its subsidiary Norgener S.A. It supplied two turnkey flue gas desulfurization (FGD) plants, including two fabric filters, for the 280-MW Tocopilla coal-fired power plant owned by the Chilean electricity generation company AES Gener S.A. and its subsidiary Norgener S.A. Andritz also supplied an FGD plant and a fabric filter for Unit 1 and a bag filter plant for the Ventanas coal-fired power station.

This contract generated over €100 million ($131.7 million) in revenue for Andritz. Both plants use the Andritz Energy and Environment (AE&E) TurboSorp dry desulfurization technology. The scope of supply included design, engineering, manufacture, installation and startup of the plants on an EPC basis. The units have been operating since 2014.

A new scrubber technology that does not use water to remove sulfur from exhaust gases has been installed without drydocking on La Méridionale ro-pax ferry, Piana.

The 42,180-GT ferry, which sails between Marseille and Bastia on the island of Corsica, had one of two exhaust channels fitted with a dry scrubber system from supplier Andritz in April 2019. By eliminating water, the system reduces power consumption (by water pumps, for example) while avoiding regulatory uncertainty concerning wash water discharge.

The exhaust ducts on the Piana are routed through two casings in its starboard and port funnels. In the first installation phase, three scrubber chambers were connected to the starboard side funnel ducts, which handle part of the exhaust from the vessel’s seven Wärtsilä engines, with a total power output of 42.18 MW.

Andritz Sales Manager for southern Europe, Marco Dierico, explained that Piana was a good candidate for the first dry installation because its two side funnels meant that the retrofit could be performed with no loss of cargo space and no impact on the ship’s appearance from the side. The fixed sailing route will allow the companies to optimize the supply chain for the reagent, sodium bicarbonate. Truck loading is easier for ferries than for most other vessels and big ferries also offer greater stability, which can be a concern when installing heavy scrubber technologies on a higher deck of the ship.

The installation was completed in less than two weeks without drydocking, and the ship’s acceptance and performance tests will take place over June and July this year.

Because a dusty food processing facility is hazardous to both workers and consumers, Camfil APC has introduced the Gold Series X-Flo (GSX) industrial dust collection system. It handles toxic, nuisance and combustible food dusts including fine, fibrous and heavy dust loads. The GSX system collects airborne dust particles to provide a clean work environment and prevent cross-contamination of food products.

The GSX system is ideal for dry food ingredients like coarse grains, fine spices, and additives, as well as sticky dusts like sugar and whey. It can capture food dust at its source using stainless steel pickup hoods at each production station or by directly hooking to batch mixers or high-velocity slot hoods behind weigh stations. Capturing dusts at their source prevents worker exposure to airborne contaminants and keeps dust from travelling throughout the facility.

The GSX system helps food processing and manufacturing facilities exceed OSHA indoor air quality standards. When equipped with a Camfil explosion vent, the GSX system offers the highest combustible dust explosion protection in accordance with MFPA and ATEX standards. Other explosion protection options are available including isolation valves, integrated safety monitoring filters and fire-retardant filter cartridges.

The GSX is built modularly, and each module handles airflows up to 6000 cubic feet per minute using four HemiPleat Gold Cone™ filter cartridges. The filters stay cleaner and last longer than conventional pleated filters, because they eject the maximum amount of dust into the hopper with each pulse of compressed air.

Donaldson Company, Inc. reported 3^rd quarter net earnings of $75.2 million, an increase of 7.6 percent from $69.9 million in 2018. The 3^rd quarter 2019 GAAP earnings per share (EPS) increased 9.4 percent to $0.58 from $0.53 last year.

“We remain on pace to deliver record levels of sales and profit in 2019, with third quarter performance reflecting strong growth in our strategically important ‘Advance and Accelerate’ businesses and modest year-over-year gross margin improvement in both segments,” said Tod Carpenter, Chairman, President and Chief Executive Officer. “While we built momentum in gross margin, a notable decline in customer backlogs and orders toward the end of the quarter resulted in lower-than-expected sales against our already modest forecast.

“Volatility continued into this quarter as uneven demand and apparent destocking suggest that our customers are taking an increasingly cautious stance in light of market uncertainties. Given these dynamics, we revised our 4^th quarter sales and profit projections for Off-Road, Aftermarket and Industrial Filtration Solutions to reflect the current operating environment.

“In all market conditions, we focus on operational excellence and strong execution of our strategic priorities. To deliver our sales targets and meaningful operating margin growth through fiscal 2021, we are balancing cost-optimization with further investments in strategically important businesses, like process filtration and our innovative air and fuel products. We also remain committed to returning cash to shareholders, illustrated by the recently announced 10.5 percent increase to our quarterly dividend and a new share repurchase authorization. With our focused approach to planning and disciplined capital deployment, we believe we are well-positioned to deliver long-term profitable growth.”

The 3^rd quarter sales of Industrial Products (Industrial) decreased 1.9 percent from last year, including benefits of 4.4 percent from BOFA and 1.1 percent from pricing, partially offset by a negative impact from currency translation of 4.2 percent. Sales of Industrial Filtration Solutions (IFS) increased 1.9 percent, reflecting benefits from BOFA and replacement parts, partially offset by lower sales of new equipment. Gas Turbine Systems (GTS) sales were down due to lower new equipment sales, and the Special Applications (SA) sales decline was due to Disk Drive filters.

Donaldson now expects fiscal 2019 EPS between $2.20 and $2.24, compared with prior guidance of $2.27 to $2.41.

The company now expects full-year sales will increase between 3.5 and 4.5 percent, which includes a negative impact from currency of approximately 3 percent and a benefit from BOFA of 1 percent. The midpoint of the revised sales guidance range is approximately 3 percent below prior guidance, driven by changes to the Aftermarket, Off-Road and IFS forecasts. Sales forecasts for all other business units are consistent with prior guidance.

Fiscal 2019 Engine sales are projected to increase between 3.5 and 4.5 percent, including a negative impact of approximately 3 percent from currency that is partially offset by 1 percent from revenue recognition. Fiscal 2019 sales of On-Road, Aftermarket and Aerospace and Defense are expected to increase from 2018, while Off-Road sales are expected to decline.

Fiscal 2019 Industrial sales are projected to increase between 4.0 and 5.0 percent, including a benefit from BOFA of approximately 4 percent that is partially offset by a negative impact from currency translation of 3 percent. Fiscal 2019 sales in IFS are expected to increase from 2018, while the Company continues to forecast sales declines in GTS and SA.

Fujian Longking Co., Ltd is the largest manufacturer of air pollution protection equipment in the world with total assets of more than 2.1 billion USD and over 6000 employees. The annual sales exceeded 1.2 billion USD. Moreover, it has built manufacturing bases and R&D centers at Shanghai, Xi'an,Wuhan, Tianjin, Zhangjiagang, Suqian, Yancheng, Urumchi and Xiamen in China.

Longking became the China’s first listed company in air pollution control industry in Shanghai stock market in December 2000 (Stock Code: 600388). The company has been focusing on the R&D and application of air pollution control technology and equipment for more than forty years, and it has become one of a few companies that can provide not only innovative equipment like flue gas dust collection, FGD, SNCR, bulk material conveying, and electrical control equipment, but also the one package solutions for flue gas pollutants and project BOT operation mode. Longking is now active in more than 40 foreign countries and regions.

Longking supplies conventional type ESP, low-low temperature ESP, Wet ESP, electromechanical two-stage ESP, moving electrode, power-off rapping, non-leakage GGH device etc. The BEH type ESP independently researched and developed by Longking, a combination of advanced technologies and capable to realize the low dust emission requirements, has been applied to more than 750 projects with an installed capacity of more than 300GW.

Longking has a separate group providing dry scrubber systems. This group is the world’s largest supplier of dry scrubber systems. The company has presented in several McIlvaine webinars and will be attending the Dry Scrubber Users Group meeting in Kansas City in September.

Dürr Acquisition of Megtec Expands Portfolio in Exhaust Air Purification Technology

Dürr will present an expanded portfolio of exhaust air-purification at LIGNA 2019. It is the world’s leading trade fair for woodworking and wood processing plant, machinery and tools. With the acquisition of Megtec, Dürr combined the environmental resources of both companies and created a single-source supply platform offering a complete solution for the engineered wood products industry. Clean air solutions from Dürr address regulations such as the National Emission Standards for Hazardous Air Pollutants (NESHAP) issued by the US Environmental Protection Agency. They are also in compliance with European as well as the forthcoming stricter German Technical Instructions for Air Quality Control (TA Luft) regulations.

Treatment and processing of wood gives rise to different emissions. The main pollutants are wood dust, volatile organic compounds (VOCs) and hydrocarbons. For many years Megtec’s core expertise has been the effective control of VOCs and hazardous air pollutants (HAPs) from dryers and press vents in the engineered wood products industry. With the newly expanded range of environmental solutions, Dürr now provides an even stronger global platform for serving customers. At LIGNA, Dürr will present its expanded suite of environmental control technologies and services needed for this industry.

Regenerative thermal and catalytic oxidizers control VOCs and HAPs. Dürr’s CleanSwitch^® regenerative thermal oxidizer (RTO) is a highly efficient solution for VOC destruction. It has an annihilation efficiency of 99 percent or more and a thermal efficiency of 95 to 97 percent. The successful deployment of CleanSwitch^® in a yellow pine OSB dryer application in Southern USA has delivered a VOC destruction efficiency up to 99 percent. The product properties are the very latest, well matched to the highest standards and guarantee durability. Alkali-resistant heat exchange media and corrosion-resistant materials of construction match the specific application and help maximize uptime and equipment life. The engineered ceramic heat recovery beds offer a low-pressure drop and excellent bed-washing characteristics. The electric motor valve drive provides quiet operation and is reliable in virtually all climate conditions. In addition, the modular construction minimizes installation time.

The venturi and cyclonic pre-scrubber designs from Dürr ensure water saturation of exhaust stream, as well as achieving considerable removal of coarse filterable particulates. This step is important in many applications to reduce particulate build-up on the connecting ductwork and downstream wet ESP. The wet ESP can, therefore, operate at a higher corona power for improved collection efficiency. Pre-cleaning of coarse particulates allows for a longer period between washdowns. A dry ESP is used in the control of particulates on biomass-based heat generators. Additional particulate control is provided by pulse jet fabric filters (baghouses) and cyclonic dust collectors. This ESP of Dürr has high reliability and performance, a design utilizing proven collector-plate designs, rigid discharge electrodes, and top-mounted electrically driven, externally maintainable collector and discharge electrode rappers.

Together with Megtec, Dürr’s environmental control solutions include turnkey installations as well as equipment rebuilds, upgrades, preventive maintenance programs and energy optimization services. The company has installed thousands of easy to use and clean oxidizer systems in many process industries across the globe. It is also experienced in engineering and service for exhaust air-purification systems, including those from other manufacturers. Dürr leverages its process knowledge and technology capabilities to deliver an integrated solution for dryers with a complete system including scrubber, wet ESP and RTO.

CECO Environmental Corp. announced the successful closing of a new $190 million credit agreement that includes a $140 million five-year revolving credit facility and a $50 million five-year term loan.

"We are very pleased to have completed this new credit agreement as CECO has been able to lower its costs, increase our financial flexibility and further strengthen our balance sheet. In addition, our banking syndicate now includes several multi-national banks that will further enhance our global operations and growth requirements," said CECO's Chief Executive Officer Dennis Sadlowski.

"Our performance in the 1^st quarter of 2019 reflects the impact of the strategic actions we have taken over the past several months. Combined with the settlements we reached in March 2019 and our additional financing, we have momentum on our path to profitability," said Kenneth Young, Chief Executive Officer. "Our Babcock & Wilcox segment continues to perform well, and our change in strategy for the SPIG segment is beginning to drive results. As 2019 progresses, we expect the core strengths of our businesses to continue to become more visible to our customers and shareholders. We are also making progress on our cost-savings initiatives, and looking forward, we continue to target a run-rate adjusted EBITDA of approximately $100 million as we exit 2020, not including corporate overhead."

“Over the past six months, our customers and employees have seen a major transformation at Babcock & Wilcox Enterprises and are responding positively as we have made significant changes to improve our business and have shared new information about our strategic path to profitability," Young continued. "We are optimistic as we see new opportunities emerging as a result of our recent efforts. Going forward, we expect to see improvement each quarter as our cost-savings initiatives continue to impact bottom-line results and as we minimize EPC contract losses under the terms of the settlements we achieved in March 2019. Our dedicated employees continue to deliver world-class products and services that reflect the strengths of our more than 150-year heritage. We are laser-focused on delivering high-quality technologies that provide solutions for our customers and strong results for our shareholders.

Consolidated revenues in 1^st quarter 2019 were $231.9 million, down 8.4 percent compared to 1^st quarter 2018 primarily due to several EPC contracts being in the final stages of completion in the 1^st quarter of 2019 The GAAP operating loss in 1^st quarter 2019 was $32.0 million compared to an operating loss of $106.4 million in 1^st quarter 2018. Prior to the 1^st quarter of 2019, the most significant drivers of the company's operating losses were the charges for the six European engineering, procurement and construction (EPC) loss contracts. In the 1^st quarter of 2019, the most significant drivers of our operating losses were settlement costs, restructuring activities, and advisory fees. Adjusted EBITDA was negative $5.0 million compared to negative $77.6 million in 1^st quarter 2018.

Babcock & Wilcox segment revenues increased 18.5 percent to $188.6 million in the 1^st quarter of 2019 compared to $159.1 million in the prior-year period, mainly driven by large construction new build and industrial projects, partially offset by a decrease in parts sales. Gross profit in the Babcock & Wilcox segment in 1^st quarter 2019 was $31.1 million, compared to $30.9 million in the prior-year period, reflecting the increase in lower-margin construction revenue as a percentage of total revenue including construction services at no margin for the SPIG segment on its single loss project in the U.S. Gross profit margin was 16.5 percent, compared to 19.4 percent in the same period last year. Adjusted EBITDA in 1^st quarter 2019 increased 115 percent to $9.0 million, compared to $4.2 million in last year's quarter; this increase is mainly attributable to the impact of cost-savings initiatives partially offset by an approximately $2.3 million increase in the level of corporate overhead being absorbed by the segment compared to the prior-year quarter. Adjusted EBITDA margin was 4.8 percent compared to 2.6 percent in the same period last year.

SPIG segment revenues decreased 21.3 percent to $28.9 million in 1^st quarter 2019 compared to $36.7 million in 1^st quarter 2018, mainly due to lower volume of new build cooling system projects as expected following the change in strategy to improve profitability by more selectively bidding and focusing on core geographies and products, and a lower volume of aftermarket services. Gross profit improved to a positive $3.7 million in 1^st quarter 2019, compared to a gross profit of negative $2.8 million in the prior-year period. This improvement was primarily due to the effects of the new strategy and to continued progress made on the small number of remaining legacy new build cooling systems contracts in the quarter without significant increases in estimated costs, compared to the 1^st quarter of 2018 when higher estimated costs to complete were incurred. Adjusted EBITDA improved by $8.0 million to positive $0.7 million compared to negative $7.3 million in the same period last year, driven by the improvement in gross profit and the benefits of cost-savings initiatives.

Vølund & Other Renewable segment revenues in the segment were $29.5 million for 1^st quarter 2019, compared to $60.0 million in 1^st quarter 2018. The 1^st quarter revenues were lower compared to the prior year quarter as several of the European EPC loss contracts were in the final stages of completion in 2019, resulting in lower construction revenue being recognized than in 2018. The quarter-over-quarter variance was also driven by the sale of Palm Beach Resource Recovery Corp. (PBRRC) in September 2018 and the previous decision to limit bidding on Vølund renewable energy contracts.

Donaldson Company Breaks Ground for New Material Research Center at its Corporate Headquarter in Bloomington, MN

Donaldson Company, Inc. broke ground recently on a $15-million Material Research Center at its corporate headquarters in Bloomington, MN.

At the groundbreaking ceremony, Michael Wynblatt, Vice President and Chief Technology Officer, said, “The secret to leading in the filtration market is having great filter media, and that's enabled by having great scientific fundamentals. This new Material Research Center will enable our continued growth and leadership in filtration innovation for years to come.”

As customers' equipment and technology advance, Donaldson's engineering, technology and operations staffs continually develop original solutions that anticipate and exceed these evolving requirements. The company currently holds more than 1,800 active U.S. and international patents, has over 100 technical laboratories and employs hundreds of engineers, scientists and technicians. Research and development investments like the Material Research Center help Donaldson attract the technical talent necessary for Donaldson’s success in innovation and commercialization of materials and technologies.

On May 10, 2019, the Dept. of Justice lodged a proposed Consent Decree with the United States District Court for the Western District of Michigan in the lawsuit entitled United States v. Empire Iron Mining Partnership, Civil Action No. 19–096.

The United States filed a Complaint in this lawsuit under the Clean Air Act (CAA), naming Empire Iron Mining Partnership as the defendant. The Complaint seeks injunctive relief and civil penalties for violations of the environmental regulations that govern taconite mines and processing plants and the emission of particulate matter from certain sources at defendant’s taconite processing plant in Palmer, Marquette County, MI. Under the proposed Consent Decree, Empire Iron Mining Partnership agrees to implement procedures to improve future compliance with the CAA and State regulations and pay $75,000 in civil penalties. In return, the United States agrees not to sue the defendant.

On May 13, 2019, the Dept. of Justice lodged a proposed Consent Decree with the United States District Court for the Northern District of Indiana in the lawsuit entitled United States, State of Indiana, and State of Ohio v. ArcelorMittal USA LLC, ArcelorMittal Burns Harbor LLC, and ArcelorMittal Cleveland LLC, Civil Action No. 2:19–cv–00179.

The proposed Consent Decree resolves a Complaint filed against ArcelorMittal USA LLC, ArcelorMittal Burns Harbor LLC, and ArcelorMittal Cleveland LLC as the owners and operators of the three steel plants in Indiana and one plant in Ohio that are the subject of the action. The Complaint asserts 18 claims pursuant to the Clean Air Act (‘‘CAA’’) for violations of: (1) National Emission Standards for Hazardous Air Pollutants; (2) the New Source Performance Standards, and the regulations governing electric arc furnaces at steel facilities, (3) Title V of the CAA, and Title V’s implementing federal, Indiana, and Ohio regulations; and (4) the federally enforceable CAA State Implementation Plans for Indiana and Ohio, which incorporate and/or implement the above-listed federal requirements.

Under the proposed Consent Decree, ArcelorMittal USA, ArcelorMittal Burns Harbor, and ArcelorMittal Cleveland shall pay a total aggregate civil penalty of $5,002,158. Of the total civil penalty, $2,594,829 will be paid to the United States; $2,035,469.50 will be paid to the State of Indiana; and $371,859.50 will be paid to the State of Ohio. The proposed Consent Decree includes injunctive relief in the form of various compliance monitoring activities and recognizes that during the course of the negotiations, defendants expended an estimated $22 million to address sulfur dioxide, nitrogen oxide, particulate matter, volatile organic compounds and carbon monoxide emission concerns. Additionally, the proposed Consent Decree provides for the transfer of five acres of Lake Michigan beachfront property, appraised at $350,000, from ArcelorMittal USA LLC to the City of East Chicago, IN, for community benefit as a State of Indiana Supplemental Environmental Project.