FABRIC
FILTER       NEWSLETTER 

 

August, 2020
No. 538

MARKETS 

GAS TURBINES

WASTE -TO-ENERGY

PHARMACEUTICAL

IRON AND STEEL 

COMPANY NEWS

PRODUCT NEWS

 

MARKETS 

Air Filter Market and Proactive Program for Suppliers

In order to win the battle against COVID there will need to be massive investment in air filters and laminar flow air systems. McIlvaine is providing enough information in the daily alerts and analysis to make it possible to justify the investment in a specific type of filter for a specific location in a specific process and determine the risk reduction. Many influencers and purchasers do not understand the differences in filter efficiency and are therefore not investing in the right products to reduce their risk to levels they believe acceptable.

As a result, the market for efficient filters and systems is much smaller than it will be when buyers and influencers are presented with reliable cost/benefit information. There is the opportunity for the suppliers to greatly increase sales by joining in a program to:

·         Ascertain reliable cost/benefit information for every application in every country for each type of process

·         Communicate that information to the influencers and decision makers with webinars, magazine articles, and white papers

·         Receive market forecasts for the thousands of individual opportunities with an understanding of competitive advantages and    disadvantages

One hundred twenty three thousand forecasts are supplied and continually revised for 80 geographical segments including 72 countries and 8 small country aggregations.

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There will be a big market to upgrade systems from MERV 8 and lower filters to MERV 9-13 and higher. Based on recent evidence of small aerosol travel the largest increase will be in MERV 14-16 and MERV 17-20. The market for large room purifiers will grow faster.

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The program includes a number of routes for communication with customers and other decision makers as well as others within the company. Webinars, white papers and a custom website are included as described in 4 Lane KnowledgeBridge

Click here to view a video description or Click here for the power point display.

Proactive HVAC Suppliers can Boost Revenues by $60 Billion

The year 2019 HVAC revenues were $300 billion.  2020 revenues are down due to the impact of COVID.  With a reactive HVAC program revenues could slump to $290 billion in 2021. With a proactive program to increase air changes per hour in combination with other techniques revenues would increase to $360 billion in 2021.

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It is recommended that homes receive 0.35 air changes per hour (ACH) but not less than 15 cubic feet of air per minute (CFM) per person. Isolation rooms in hospitals utilize 6 air changes per hour. Recommended ACH for malls is 6 to 10 and 4 to 10 for municipal buildings.

In a mall setting the recommended air changes per hour will be a function of the number of emitters and their viral load, the mask type worn by the emitters, the efficiency of the HVAC filters, the dilution which is a function of air changes per hour, and the masks worn by the recipient. Masks can make a 90 percent reduction at very low cost. Increasing filter efficiency can result in another 90 percent reduction. Dilution can cause a 99.9 percent reduction or more but the cost is very substantial.

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Viral Particle Discharge from Sequential Removal Devices

An ACH increase is only effective if the air flow patterns are beneficial. This means ductwork changes and other investments.

The greatest ROI is in the masks. There is a high ROI in the HVAC filter upgrades. Dilution through increasing the ACH is the most expensive. In the above example if the emitter is wearing an N30 mask the virus load entering the HVAC will be 1.4 million.  Even with  a 95 percent efficient filter the discharge would be 70,000 viral particles. To reduce that to 5 would require a dilution rate of 14,000 or 14 times as much as if the high efficiency mask is used.

Another consideration is the amount of outdoor air utilized. Some infiltration of outdoor air is needed to keep CO2 levels lower than 1000 ppm and closer to the 480 ppm which is the average for ambient air.

The quality of outdoor air must be considered. An individual will inhale and exhale 7.8 million 0.1 micron or larger particles every minute in standard air. If the equivalent of a MERV 16 filter is installed in the HVAC the individual will inhale a few hundred thousand particles per minute. The loading on the filter will be a function of the particulate concentration in the outdoor air and particulate generated in the space. On the average day in Delhi, India the individual will inhale 178 million particles larger than 0.1 micron each minute.

The COVID load in the outdoor air may not be zero but in most cases it can be assumed to be so low as not to be a consideration. 

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The ROI for the investment in HVAC should take into account the removal of air pollutants along with COVID. In Beijing, Delhi, and other polluted cities the investment can be justified just on the improvement in air quality.

The temperature and humidity of outdoor air also impact the cost of infiltrating outdoor air. In the summer in the Southern U.S., the cost of treating outside air is substantial.

The 2019 market for HVAC worldwide was $300 billion. A proactive COVID mitigation program could increase sales to $360 billion in 2021 versus $290 billion with a reactive program and a virus which disrupts the economy for several more years.

 The proactive program, Coronavirus Technology Solutions is explained at www.mcilvainecompany.com.

Bob McIlvaine can answer your questions at 847 226 2391.

GAS TURBINES

AAF High Efficiency Intake Filters Used on BP Clair Platform

“When it comes to protecting gas turbines from offshore air, and all that is contained within, air filtration systems play a critical role, operating on the front line of defense” says Graeme Turnbull of AAF International. Currently, around 85 percent of offshore gas turbines are protected by small high velocity filtration systems that use low efficiency filter bags. These only provide protection against coarse particles and fail to capture sub-micron particles offshore. It is worth noting that the air quality at platform level is significantly different to sea level. At the height of an offshore platform the majority of particles in the air are sub-micron in size. The vast majority of particles of this size will pass through high velocity filter bags; in fact, only 5 percent will be captured. This can lead to lost production revenue, unplanned gas turbine shutdowns, reduced component and engine life, premature engine failure, and low turbine compression efficiency and high CO2 emissions, especially unwanted given today’s current market dynamics and the low price of oil. By contrast, high efficiency particulate air filter (EPA) 12 technology captures 99.95 percent of sub-micron particles. This protects and enhances the performance of expensive gas turbine components.

As operators have become aware of the benefits of EPA E12 air intake filtration, there has been a push to upgrade existing high velocity units installed offshore. However, traditional EPA E12 filtration technologies—with much larger equipment envelopes—have necessitated that the air intake housing is replaced in its entirety. This increases foundation loads and incurs significant costs and down time. However, there is another route, using a new EPA E12 system which provides all the associated benefits of EPA E12 air filtration, but can be quickly and seamlessly installed within the existing high velocity air intake filtration system.

BP’s Clair platform operates three Titan 130 gas turbines (GTs 1, 2 and 3) employed in power generation application to provide power to the asset. Each gas turbine was experiencing compressor blade fouling, corrosion and erosion, as well as turbine section hot gas path corrosion. Operationally, this resulted in poor engine reliability, reduced availability and premature engine overhaul and/or replacement; all of which severely impeded the long-term strategic planning for the platform for both production and maintenance.

Eventually, the poor filtration provided by the high velocity bag system resulted in a catastrophic failure of GT2 after 12,000 operating hours, which equated to only one-third of the engine design life. The root cause of the failure being inlet guide vane seizure and in turn compressor section imbalance and ultimately blade liberation. This resulted in irreparable damage and a new replacement engine was required, incurring unplanned long-term shutdown and significant unbudgeted costs. 

BP was aware that AAF International was in the final stages of developing a new EPA E12 high velocity filtration solution. Critically this new design could be installed within an existing high velocity housing with no penalty in differential pressure (dP), therefore negating the need for a larger housing replacement. Because of this failure on GT2, BP was expediting the GT original equipment manufacturer (OEM) for fast-track delivery of a replacement engine and approached AAF to determine if this new technology (N-hance) could be urgently deployed in a field trial as a technology collaboration initiative.

Thanks to a longstanding relationship between the two companies, BP was able and confident to pilot AAF’s N-hance technology. The N-hance filters and conversion parts were delivered to the operator within five weeks and commissioned along with the new GT2 engine on the Clair platform in February 2017.

The pilot delivered excellent results. There was an increase in engine availability resulting from a reduction in unplanned downtime and shortened shutdown periods. There was also a decrease in CO2 emissions improving sustainability, as well as retained power output (compressor efficiency) and heat rate. Critically, BP has also eliminated the risk of potential GT failure due to corrosion at just one-third of design life.

Commenting on the project, BP’s asset team said: “The upgrade project has enabled improved reliability, cost savings and will feed into the reformation of outdated air filtration standards as well as playing a part in helping to achieve offshore asset efficiency of 90 percent.”

EPA E12 air filtration is currently available within low velocity systems and already in use on assets owned by super majors. However, few operators are aware that EPA E12 filtration is now supported within high velocity systems. This is partially due to the fact there needs to be significantly more support for the widespread adoption of the technology used on the Clair platform. This includes the adoption of EPA E12:EN1822 standards within OEM offshore turbine specifications to extend the life of all new gas turbines operating in the offshore environment and provide the operator with the added benefit of a small and lightweight filter housing in comparison to the traditional low velocity large E12 filter housings. Operators also have their part to play and need to question why they are repeatedly offered low efficiency filter bags for high velocity systems. The accepted norms of poor air filtration in offshore environments can be redefined, and operators can benefit from the improved technology.

Immediately, the result will be to eliminate frequent water washing of the gas turbine, increasing production efficiency while at the same time providing a longer operational life of the gas turbine. Furthermore, a sustained effort is needed to communicate the evolution in filtration performance and demonstrate the findings, which support the use of new proven EPA E12 technologies.

Graeme summarizes in an Offshore article with “Collectively if adopted by the offshore oil and gas industry, these measures trigger a new “front end” approach to gas turbine reliability and availability, which is beginning to gain momentum in some areas of the sector. With cost control and environmental improvements, such as CO₂ reduction now more critical than ever, taking the necessary steps to address current technology adoption should be delayed no further.  

”You can view the full article at https://www.offshore-mag.com/business-briefs/equipment-engineering/article/14176563/air-filtration-system-helps-improve-gas-turbine-performance-on-bps-clair-platform.

Gas Turbine Inlet Filters for LNG Plants

Gas turbine inlet filters for LNG plants were analyzed in a recent Diesel and Gas Turbine Worldwide by Peter McGuigan, Global LNG Market Manager for the Parker Gas Turbine Filtration Division.

Land-based refrigerant compressor stations for the liquefaction of methane are always located near coastlines to facilitate onward tanker transport of the LNG. This means gas turbines will be exposed to dust, moisture, salt and many other airborne contaminants, all of which will put gas turbine operations in jeopardy if not addressed.

“Gas turbines ingest enormous amount of air, and the operators realize that any salts or hydrocarbons, any nasty stuff getting into their gas turbines will significantly impact operations. And then they connect the dots in terms of lost potential, lost revenue,” McGuigan said. “And they’re very, very risk averse as a result.”

With the colossal volumes of air passing through a gas turbine air inlet, having the correct inlet filtration system in place is vital for ensuring ongoing reliable operations. To handle these various, contaminants, protect the turbines and avoid shutdown on the basis of either pressure loss (DP) increase or degradation in output, LNG filtration systems typically have multiple stages. Ensuring the right stages of filters are selected has a huge impact on the overall process availability, reliability and profitability. A filtration system that is correctly designed and engineered to meet the real-world conditions of the gas turbine installation can mean shutdowns are limited to scheduled maintenance periods only. Choosing the wrong system, however, can have major financial repercussions. For LNG applications, the turbine needs to be protected from the corrosion, erosion and fouling which would be caused by salt and particulate getting downstream, with a primary focus on keeping the turbine operating reliably and predictably over long periods of time.

The inlet filtration system for an LNG process turbine can have three, four or even five unique stages, providing an ability to change filters online without the need to shut down the turbine. The first few (prefilter) stages are designed to remove larger particles and extend the life of the later (high efficiency) stages. As prefilters can typically be changed out without taking the turbine offline, designs that facilitate quick change out need to be incorporated. The final filtration stage should use high efficiency hydrophobic media, typically rated F9 (EN779) to E12 (EN1822) to achieve optimum results. Options to use an extended 24-in. deep final filter (compared with traditional 12- in. to 17-in. vCell filter depths), provides for extended filter service life if required. Another area for consideration in correct filter selection is the type of high efficiency media used. Levels of moisture are obviously going to be high in offshore and coastal environments, and small moisture droplets can quickly block thin ePTFE membranes. Sudden blockages equate to sudden and unpredictable pressure spikes (the ‘hockey stick’ effect), which can result in complete turbine (and therefore plant) shutdown.

Microfiber glass media, however, offers the same efficiency but is around 10 times thicker, making it more resistant to blockage and more predictable in its performance, with slow, gradual, pressure increases as contaminant is captured. To avoid unplanned maintenance activities, filters should be designed for long life. Prefilters should require changing no more than around once per year. Second stage filters once every two years, and third or fourth stage filters around just once every three to four years. If a filtration system requires more regular maintenance, a review of its design and the choice of filter grades used is recommended.

Filter system designers are continually developing and improving technology to enhance performance in challenging offshore and onshore installations. When considering the result of an unexpected shutdown, investment in the right filtration solution offers operators lightening quick return on investment.

McGuigan said operators tend to understand the importance of filtration but aren’t always able to keep abreast of developments and new technologies.

“They absolutely get right from the outset, every single one of these LNG operators get the quality of air entering the gas turbine is one of the things that, if they don’t adequately control, they’re in big trouble,” McGuigan said. “But a lot of them aren’t aware of the latest technologies. So that’s my job to educate and tell them what’s new and what extra incremental benefits new technologies can bring to their operations.

“What I’m feeling, and my genuine belief is that LNG operators want more than just the filter, they want the expertise, the recommendations, the new product development, all the kind of stuff that goes with a customer-operations focused, leading-edge company.”  The full article can be viewed at

https://dieselgasturbine.com/clearing-the-air-at-lng-processing-facilities/.

WASTE -TO-ENERGY

MHIEC Receives Order to Refurbish Core Equipment of the Kushiro Wide Area Federation WtE Plant in Kushiro

Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC), a Group company of Mitsubishi Heavy Industries, Ltd. (MHI), has received an order from the Kushiro Wide-Area Federation, comprising the city of Kushiro and five other Hokkaido municipalities, for repair and improvement of core equipment at the Kushiro Wide-Area Federation Waste-to-Energy (WtE) Plant in Takayama, Kushiro. The facility has a total waste treatment capacity of 240 tonnes per day (tpd). MHIEC will refurbish and improve the fluidized bed type gasification and ash melting furnace*1 and related equipment, extending the working life of the facility and enhancing its energy efficiency. The contract is valued at 3,993 million Japanese yen. Completion is scheduled for September 2023.

The Kushiro Wide-Area Federation was established in 2002 under the provisions of the revised Local Autonomy Act. It currently manages the incineration of waste for the municipalities of Kushiro-shi, Kushiro-cho, Akkeshi-cho, Teshikaga-cho, Tsurui-mura, and Shiranuka-cho. The WtE plant was designed and built by MHI. It was completed in March 2006 and began operations in April that year. Kushiro Eco-Creation Co., Ltd., in which MHIEC holds a 90 percent stake, provides operations and maintenance work under a 15-year, long-term comprehensive contract. The plant comprises two lines of fluidized bed type gasification and ash melting furnace and related equipment, each with capacity of 120 tpd. It has an electricity generating capacity of 4.6 megawatts (MW).

The core facilities renovation contract comprises the renewal of superannuated key components of the facility, including the waste receiving and feeding equipment, gasification and ash melting furnace, waste heat boiler, and flue gas treatment system. The renovation will introduce high-efficiency motors and invertors to increase energy efficiency, as well as hybrid bag filters with dioxin decomposition functionality, and a low-temperature catalyst for the denitrification equipment to increase the heat recovery rate. These measures will reduce CO2 emissions by around 15 percent annually, helping to curb global warming. This is the first order for repair and improvement of core equipment MHIEC has received for a WtE plant for which it has a long-term comprehensive contract for operations and maintenance by MHIEC Group.

Renovation of WtE plants is increasing as operators aim to extend the service life of facilities and reduce their environmental impact. The Japanese national government also established a related subsidy system in fiscal 2010, further accelerating this trend.

In addition to removing toxic substances, the hybrid bag filters have coatings of a catalyst on the bag filter fibers that provide additional functionality to decompose gaseous dioxins and nitrogen oxide (NOx).

MHIEC Also Receives Order to Refurbish the Minato WtE Plant in Tokyo

 Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. has also received an order from Clean Authority of TOKYO for facility renovation to extend the service life of its Minato Waste-to-Energy (WtE) Plant. The facility has a total waste treatment capacity of 900 tonnes per day (tpd). MHIEC will refurbish and improve the stoker type incinerators*1 and related equipment, extending the service life of the facility and enhancing its energy efficiency. The contract is valued at 7.6 billion Japanese yen, with completion scheduled for January 2023 (three-year project). MHIEC received a similar order from Clean Authority of Tokyo in fiscal 2016 to extend the service life of its Ariake WtE Plant, which was completed in fiscal 2019. This order succeeds that previous project.

Clean Authority of Tokyo was established in fiscal 2000 to handle waste treatment for Tokyo’s 23 wards. Located in the Chiyoda Ward main government building, the organization manages 21 plants throughout the city, including facilities undergoing renovation. The Minato WtE Plant was designed and built by MHI and completed in January 1999. The WtE facility comprises three stoker type incinerators and related equipment, each with capacity of 300 tpd, and can generate up to 22 megawatts (MW) of electricity.

The plant facility renovation contract to extend service life covers refurbishment of superannuated main equipment, including the refuse feeder and incinerator furnace, along with equipment for ash treatment, bag filter, scrubber, boilers, power generators, and steam condensers, as well as electric instrumentation and water supply systems. The adoption of nickel base alloy cladding technology to counter boiler tube thinning, upgrading of main equipment for steam turbines and power generators, and improved combustion with control technologies utilizing infrared (IR) sensors, will allow for long-term stable incineration and operation. The facility will also utilize high-efficiency motors and inverters for electric components to increase energy efficiency. These measures will reduce CO2 emissions by around 4% annually, helping to curb global warming.

PHARMACEUTICAL

Systec Supplies Filters for Autoclaves

Steam sterilization in autoclaves is used — especially in biological and medical laboratories — to inactivate natural or genetically modified microorganisms. However, during the heat-up phase, in which air is removed from the pressure vessel, biological agents can potentially escape into the work area as aerosols.

This means that exhaust air filtration is extremely important, especially in light of the current coronavirus epidemic. And while FFP masks and various filters with a pore size of 0.2 μm are theoretically incapable of catching pure SARS-CoV-2 particles due to the small size of the particles (between approx. 0.1 and 0.14 μm), tests show that the exhaust air filtration system in Systec autoclaves reliably prevents hazardous aerosols from escaping during the autoclaving process.

Systec products filter exhaust air by means of an autoclavable sterile air filter inside a filter housing and a PT-100 temperature sensor – the combination of these elements ensures reliable filtration of exhaust air: All air displaced from the autoclave is passed through the filter and, as a result, the microorganisms are retained in the filter. The filter is also sterilized “inline” during the sterilization process in order to inactivate the microorganisms contained in it. The temperature inside the filter housing is monitored by the above-mentioned PT-100 temperature sensor. During the heat-up and sterilization phases, the condensate is retained in the pressure vessel and also sterilized safely. Exhaust air filtration and condensate sterilization prevent any viruses or germs from escaping before the end of the sterilization phase. This ensures that all gases/liquids that could represent a potential hazard to the environment when displaced from the autoclave are filtered.

The filtering medium used by Systec GmbH is an autoclavable sterile air filter in the form of a PTFE membrane filter cartridge with a pore size of 0.2 μm. The filter cartridge is located in a pressure-resistant housing and can be replaced quickly at any time. The PTFE membrane is additionally protected by polypropylene nonwoven fabrics on the upstream and downstream sides. External support bodies and end caps made of a special, heat-stabilized polypropylene as well as internal support bodies made of stainless steel ensure exceptionally high thermal resistance and mechanical strength. The filters are monitored via a maintenance counter, with a replacement interval of 150 cycles.

To ensure a validatable filtration, the heating temperature of the autoclave is monitored throughout the process via a PT-100 temperature sensor (class A). At the same time, this sensor ensures that the filter cartridge is heated to a temperature that enables the safe inactivation of filtered particles. In the event of any deviation from the prescribed process sequence, the autoclave is put into a fault mode, which prevents the outflow of contaminated exhaust air. Furthermore, the integrated user management functionality prevents unauthorized access.

Evalar Russia Installed ATEX Compliant Dust Extraction and Industrial Vacuum Cleaning Systems for Pharmaceutical Dust

In 2019 Evalar was increasing its production capacity by installing new production lines of solid dosage form. Such type of production generates fine dust at different processes. Organic pharmaceutical dust is potentially explosive therefore, it is extremely important to provide safe and clean workplace both to meet GMP (Good Manufacturing Practices) and occupational safety and health standards.

Evalar company is the biggest Russian producer of dietary supplements. The company is located in Altai region, South-West Siberia. Altai is a unique place, which includes six natural landscapes: tundra, forest, steppe, semi-desert, sub-alpine and alpine zones. The diversity of valuable plants of Altai includes more than 600 plant species of medicinal, edible and honey plants.

“Authorities place very high demands to pharmaceuticals producers with relations to prevention of environmental pollution and prevention of cross-contamination of raw materials during production. For these reasons, clean air is very important to provide quality and safe production,” Alexey Sergievich said.

Dust extraction systems are used to extract airborne contaminants at the source, which prevents dust dispersion inside production area. Central vacuum cleaning systems are used to keep production areas clean by regularly removing dust that has not been captured by dust extraction systems. Having a combination of these systems provides safe and clean production.

The customer chose Nederman for both types of systems not just as a supplier of a high quality equipment, but also as a provider of knowledge about right system’s design to meet all requirements.

 The dust is captured by NEX 8 extraction arms  , which fulfills all requirements for use in environments containing explosive dust and with extremely high hygienic demands. Open support arm system and hood made of acid proofed polished stainless steel and easily removable hose allow regular cleaning which is mandatory for GMP.

The dust and spilled powders are collected by cleaning kits and hand brushes with hoses connected to flap valves. Air is transported inside Nederman high vacuum pipes to ATEX compliant filter unit type FlexFilter EX.

IRON AND STEEL 

EVRAZ NTMK (Nizhniy Tagil) completed the overhaul of Blast Furnace 6. Together with Blast Furnace 7 launched in April 2018, they form the most up-to-date and environment-friendly steel-making facility in Russia.

The project has taken $176 mln in investments and 16 months to complete. The volume of the furnace is 2,200 m3, its scheduled annual production capacity — 2.5 mln tonnes of pig iron. Blast Furnace 5 reached the end of its useful life and was idled, decision on its further use pending.

Blast Furnace 6 has two casting yards, featuring closed-type main and transportation chutes, automated top and bottom charging systems, shaftless air heaters, and aspiration units that contain more than 34,500 filters. The total capacity of the aspiration systems servicing the casting yard and stock-conveying system is 3.1 mln m3/hour.

During the overhaul, Blast Furnace 6 was fitted out with modern gas treatment stations; the project, along with EVRAZ’s other environmental initiatives, was listed as part of the federal project Clean Air within the national project Environment.

An expert system is used at Blast Furnace 6 to analyze and adjust the manufacturing processes. Using over 12,000 parameters, it can select the optimal conditions and manage the melting process in an automated mode.

COMPANY NEWS

Babcock & Wilcox Launches Strategic Organizational and Branding Initiative

In the 2nd quarter:

·     Consolidated revenues were $135.4 million; COVID-19 negatively impacted all segments by delaying anticipated projects

·    GAAP consolidated operating loss was $7.7 million; GAAP loss from continuing operations was $18.1 million, a $10.2 million improvement compared to 2nd quarter 2019

·     Consolidated adjusted EBITDA was $1.4 million

·    The Babcock & Wilcox segment reported adjusted EBITDA margin of 9.1 percent as compared to 9.5 percent in 2nd quarter 2019, while segment adjusted gross profit margin improved to 27.9 percent compared to 18.8 percent  in 2nd quarter 2019

·    Company launched B&W Environmental, B&W Renewable, and B&W Thermal brands as part of a strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders improved visibility into its renewable and environmental growth platforms

·    Company is expanding its sales, service and business development team in key international markets to capitalize on more than $5 billion in identified project opportunities over the next three years, with a focus on bidding renewable and environmental projects world-wide.

 

Babcock & Wilcox Enterprises Inc. said it was launching a strategic organizational and branding initiative that will see it introduce three new brands.

The company said its new brands — B&W Environmental, B&W Renewable, and B&W Thermal — are "part of a strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders improved visibility into its renewable and environmental growth platforms."

The company said Babcock & Wilcox Environmental will offer "emissions control and environmental technology solutions for utility and industrial steam generation applications around the world."

Babcock & Wilcox Renewable will offer technologies for efficient and environmentally sustainable power and heat generation, the company said, while Babcock & Wilcox Thermal will provide "Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. 

Babcock & Wilson also said it is expanding its "sales, service and business development team in key international markets to capitalize on more than $5 billion in identified project opportunities over the next three years, with a focus on bidding renewable and environmental projects world-wide."

The company also said Jimmy B. Morgan was named as chief operating officer, effective immediately.

CECO Holding its Own in Tough Market

CECO Environmental Corp., reported its financial results for the 2nd quarter and first six months of 2020.

Revenue of $75.2 million, compared with $81.2 million 

·      Gross profit of $25.8 million (34.3 percent margin), compared with $26.8 million (33.0 percent margin)

·      Operating income of $4.4 million, compared with $2.0 million

·      Non-GAAP operating income of $7.4 million, compared with $4.4 million

·      Net income of $3.3 million, compared with $5.5 million

·      Non-GAAP net income of $5.1 million, compared with $3.0 million

·      Net income per diluted share was $0.09, compared with $0.15

·      Non-GAAP net income per diluted share of $0.14, compared with $0.08

·      Adjusted EBITDA of $8.2 million, compared with $6.0 million

·      Bookings of $60.0 million, compared with $103.0 million

·      Backlog of $204.6 million, compared with $208.9 million as of March 31, 2020

Todd Gleason, CECO's Chief Executive Officer, commented, "During the 2nd quarter, the CECO team delivered focused execution and solid customer service while adjusting for the disruptions associated with the wide-spread COVID-19 pandemic. The company enacted proactive measures to reduce costs in anticipation of the market declines, which maintained strong profitability and margin rates while streamlining operations for future quarters. Additionally, we executed the EIS acquisition, which advances our industrial solutions portfolio and positions us for growth in the European industrial markets."

Mr. Gleason added, "As I come to the end of my first month with the company, I have enjoyed connecting with our talented team members, and immersing myself in how we will collectively create more value — for our customers, employees, and shareholders. I am excited to be on the CECO team and look forward to driving new growth and sustainable business processes as we build upon our strong foundation."

Parker Reports Fiscal 2020 Fourth Quarter and Full Year Results and Issues Guidance for Fiscal 2021

Parker Hannifin Corp. reported results for the fiscal 2020 4th quarter and full year ended June 30, 2020. Fiscal 2020 4th quarter sales were $3.16 billion, compared with $3.68 billion in the prior year quarter. Net income was $295.7 million, compared with $413.7 million in the 4th quarter of fiscal 2019. Fiscal 2020 4th quarter earnings per share were $2.27, compared with $3.17 in the prior year quarter. Adjusted earnings per share were $2.55, compared with adjusted earnings per share of $3.31 in the 4th quarter of fiscal 2019.  A reconciliation of non-GAAP measures is included in the financial tables of this press release.

For the full year, fiscal 2020 sales were $13.70 billion, compared with $14.32 billion in fiscal 2019.  Net income was $1.21 billion, compared with $1.51 billion in fiscal 2019. Fiscal 2020 earnings per share were $9.29, compared with $11.48 per share in the prior year. Adjusted earnings per share were $10.79, compared with $11.85 per share in fiscal 2019. Cash flow from operations for fiscal 2020 was a record at $2.07 billion or 15.1 percent of sales, compared with $1.73 billion or 12.1% of sales in the prior year period. Excluding a discretionary pension contribution, cash flow from operations for fiscal 2019 was 13.5 percent of sales.

“In light of the economic crisis resulting from the ongoing COVID-19 pandemic, our global team delivered outstanding performance in the fiscal 2020 4th quarter,” said Chairman and Chief Executive Officer, Tom Williams. “The improvement of Parker’s portfolio through transformative acquisitions, continued execution of The Win Strategy™, and near-term actions to reduce costs and preserve cash, have positioned us to achieve exceptional levels of performance during such a steep decline in demand. Despite an organic sales decline of 21 percent, adjusted total segment operating margin was 17.4 percent and our adjusted EBITDA margin was impressive at 20.4 percent in the quarter. Our full year cash flow from operations was a record, surpassing the $2 billion mark for the first time. We continued to aggressively reduce our debt by making repayments totaling $687 million in the 4th quarter and $1.3 billion year to date, which is approximately 25 percent of the acquisition related debt issued.”

Parker reported the following orders for the quarter ending June 30, 2020, compared with the same quarter a year ago:

·         Orders decreased 22 percent for total Parker

·         Orders decreased 29 percent in the Diversified Industrial North America businesses

·         Orders decreased 21 percent  in the Diversified Industrial International businesses

·         Orders decreased 5 percent  in the Aerospace Systems Segment on a rolling 12-month average basis

 

 

Donaldson Company Provides COVID-19 Business Update

Donaldson Company, Inc., a leading worldwide provider of innovative filtration products and solutions, provided a business update in response to the COVID-19 pandemic.

Our employees are doing an excellent job responding to the dynamic environment brought on by the pandemic, and we continue to prioritize the health and safety of our employees, fulfilling customer commitments and doing our part to help lessen the spread of COVID-19,” said Tod Carpenter, Chairman, President and Chief Executive Officer. “While the ultimate impact of the pandemic remains uncertain, we are focused on those things under our control: expanding into new and strategically important markets, implementing optimization initiatives to increase gross margin, managing expenses and maintaining a strong financial position. Additionally, our front-line employees have shown incredible dedication to our customers, further strengthening our reputation as a top-tier partner. We are successfully navigating the operational complexities created by COVID-19, and I am confident that our foundation for creating long-term value for our stakeholders remains strong.”

Donaldson’s businesses have been deemed “essential” or “critical,” so the Company has continued to operate during the pandemic. Donaldson continues to benefit from its region-to-support-region production footprint and supply chain strategy, which provides the flexibility to adjust to local circumstances while mitigating the potential for global disruption. The Company remains in close contact with its network of high-quality suppliers, and the level of disruption is currently at the lowest level since the pandemic began. Overall, Donaldson has avoided meaningful operational interruptions as a result of the pandemic.

Donaldson has maintained a strong financial position. As of June 30, 2020, the company’s net-debt-to-EBITDA leverage ratio was 1.0, which is consistent with the ratio at the end of third quarter 2020 and in line with Donaldson’s long-term target. Total liquidity, as defined by cash on hand, availability under a $500 million revolving credit facility and a recently closed 364-day credit facility, was $560 million at the end of June. Based on these metrics, the company continues to believe it has ample liquidity for meeting its operational and financial obligations.

Consistent with the company’s previously stated investment plans, the pace of capital expenditures is decelerating as its capacity expansion projects related to manufacturing and supply chain optimization are completed. Through June 30, 2020, quarter-to-date and year-to-date capital expenditures were down 55 percent and 14 percent, respectively, from 2019.

Donaldson remains committed to its dividend, which has been paid every quarter for 65 years and increased annually for more than 20 years. Year-to-date 2020, the company has paid dividends of $106 million, compared with $100 million in 2019. Donaldson’s approach to share repurchase is also unchanged. At a minimum, the company intends to offset the annual dilution of approximately 1 percent from stock-based compensation. Repurchase beyond that amount is weighed against all potential uses of cash. Donaldson has not repurchased any outstanding shares quarter-to-date, which is consistent with the previously issued expectations, and year-to-date repurchase remains at 1.6 percent of outstanding shares.

The 4th quarter 2020 sales declined about 15 percent from 2019, including the previously disclosed decline in May 2020 of about 24 percent, combined with less significant year-over-year sales declines in both June and July. July 2020 sales were the highest of the quarter, following a sequential sales increase in June versus May.

The 4th quarter 2020 sales performance was uneven across geographies. Compared with the prior year, Asia-Pacific sales declined at a more modest rate than other regions, due primarily to sales growth in China as the country continues to recover from COVID-19. Year-over-year sales trends in the EMEA region have improved versus third quarter but remain down from the prior year, and Eastern Europe continues to outperform other parts of the region. The Americas region is still under the most pressure as the economic impact from COVID-19 is compounded in the U.S. by lower oil and gas activity and increasing geopolitical uncertainty in Latin America.

In terms of product categories, new equipment remains under greater pressure from COVID-19 than replacement parts. Quarter to date, replacement parts accounted for more than 64 percent of Donaldson’s total revenue, and sales of these products continue to outperform new equipment. Engine Aftermarket sales are performing notably better than the On-Road and Off-Road first-fit businesses, while replacement parts in Process Filtration and Gas Turbine Systems are outperforming sales of new equipment in the Industrial segment.

Quarter-to-date 2020 operating profit as a rate of sales was down from the prior year, reflecting loss of operating expense leverage on lower sales that was partially offset by higher gross margin. The company’s gross margin continues to benefit from its initiatives related to manufacturing, supply chain and procurement optimization. Additionally, and consistent with 3rd quarter 2020, a favorable mix of sales and lower raw materials costs are contributing to the gross margin improvement. Donaldson remains focused on disciplined management of its costs, including matching production labor with demand and maintaining tight control of headcount and discretionary expenses. The  company also remains focused on long-term profitable growth and has continued making investments in support of core strategic initiatives, like technology development and expanding into new markets and geographies.

While Donaldson continues to believe the magnitude and the duration of the impact from COVID-19 on its business are still not reasonably estimable, the Company is contemplating the following items in its fiscal 2021 planning assumptions:

·   Sales trends are expected to vary widely by geography and market, and year-over-year performance of replacement parts in both segments and products related to new markets, like Food and Beverage, should continue to be better than the company average,

·    Initiatives related to manufacturing, supply chain and procurement initiatives are expected to continue benefitting gross margin,

·   Operating expense is expected to include a year-over-year increase of $13 million to $15 million associated with the standard process for resetting the annual incentive plans following a lower level of incentive compensation in the prior year,

·   Capital expenditures are planned meaningfully below fiscal 2020 as manufacturing and supply chain optimization projects are completed and Donaldson’s new R&D facility is brought online, and

·   Free cash flow conversion is expected above 100 percent.

Chris Cummins Named President and CEO of the Micronics Engineered Filtration Group

Micronics Filtration Holdings, Inc. announced that Christopher G. Cummins (Chris) has been appointed President and CEO of the Micronics Engineered Filtration Group which consists of leading wet and dry filtration companies and brands: Micronics, Southern Filter Media (“SFM”), C.P. Environmental (“CPE”), United Process Control (“UPC”), and AeroPulse®. Chris officially joined the team in early April.

Chris brings 27 years of manufacturing expertise with highly-engineered products to his leadership role at Micronics. Prior to Micronics, he has held senior leadership roles including President, COO, SVP – Global Operations, and General Manager for a range of diverse, privately held and public companies including Danaher Corporation, Colson Group, Symmetry Medical, and Abaco Systems.

His areas of expertise include Lean principles & Six Sigma deployment, driving global manufacturing strategies, supply chain optimization, and continuous performance improvement. Throughout his career, Chris has successfully worked with diverse teams in North America, South America, Europe, and Asia. His experience includes Metals & Mining/Mineral Processing, Industrial, Medical Device, Energy infrastructure, and Aerospace industries.

Chris holds a Bachelor of Science degree in Electrical Engineering from Purdue University, an Executive Management Certificate from Harvard Business School, and an MBA focused on Logistics, Materials, and Supply Chain Management from Arizona State University.

PRODUCT NEWS

ULT AG Expands Scope of Services for Large-Scale Systems

ULT AG, vendor of fume extraction systems for industrial air cleaning, has expanded the performance range around the system series ULT 1500/2000/2500 for laser fume, dusts of any kind and welding fume.

From planning to installation to commissioning, ULT advises and accommodates the users of extraction and filtration systems. The services, coordinated centrally, have been extended: on the one hand by the expansion of services, and on the other through special system configuration options.

In the service area, the company offers three service packages of different levels. Users can determine the scope of services and run times themselves, for example when it comes to maintenance or emergency assistance. Among others, a warranty extension is possible. Furthermore, an emergency hotline is available 24/7. 

The processing of different materials generates different air pollutants. They vary, e.g., in size, composition and physical as well as chemical properties. For such cases, ULT has developed an individual qualified format. If necessary, a metering unit can be added to increase the service life of the filters. The powdered filter aid creates a protective layer on the surface of the filter cartridges and binds the dust particles into an easy-to-clean filter cake.

For vapor or odor removal, there is also the option of connecting post-filter boxes or another filter system. The size and system configuration result from the application itself, i.e. ULT advises customers on the selection of solutions regarding the process.

The extraction systems of the ULT 1500/2000/2500 series with air volumes between 1,000 and 3,000 mł/h are based on an optimally configured, modular device and filter concept that guarantees high pollutant separation rates, simplified filter handling and long filter service life. In addition to cost and time savings, users benefit from individual solutions for any installation situation.

If required, the systems are equipped with safety technology for extracting flammable or explosive substances. They score with other advantages such as the use of gate valve technology, high quality filter materials, access to the system from the front or a remote-control cabinet with control and operating elements.

 Back to Fabric Filter Newsletter No. 538 Table of Contents