August 2022, No.562

MARKET

•  Life Quality and ESG

• Niche Market Share Analyses Provide Unique Insights

WOOD WASTE

• Five Issues Associated With Dust Removal In Wood Pellet Plants

• Challenges of Wood Waste Management in a Leading Furniture Manufacturing Company

ALUMINUM

•   Hydro Aluminum Henderson Facility Announces $15 Million Investment

ASPHALT

• Global Meta-Aramid Fiber Shortage Puts Asphalt Producers At Risk For Meeting Environmental Compliance

COMPANY NEWS

• Alkegen Announces Plans to Increase Micro-Fine Glass Fiber Capacity To Support Growing Battery and Filtration Demand

• Advanced Emissions Solutions Announces Merger with Arq Limited

• GE Unveils Brand Names for Three Planned Future Public Companies

• CECO Environmental Expands Industrial Air Offering with UK-Based  Acquisition

MARKETS

Life Quality and ESG

Environmental, social, and corporate governance (ESG) is a theoretical approach to evaluating the extent to which a corporation works on behalf of social goals that will supposedly go beyond the role of a corporation to maximize profits on behalf of the corporation's shareholders. The initiative launched by the United Nations now represents more than US$30 trillion in assets under management.  Capital totaling more than US$18 billion has flowed into ESG-linked products. One of the goals is to increase corporate values among average stock holders and not just an elite group.  In this regard personal life quality metrics is paramount

· Many companies make products which improve life quality but not longevity. They may rate their ESG status based on what they believe is best for individuals rather than what  the individuals  necessarily want.

· Decisions are made in democratic countries based on what voters and consumers want rather than what is best for them.

· A new metric is needed to help voters and consumers predict the government or corporate actions which will best achieve their desires.

·  If people are going to be persuaded to alter their desires, it is necessary to help them predict the long term consequences.

· A novel metric entitled Quality Enhanced Life Days (QELD) along with tribal values and discounted future values can greatly assist individuals and corporations  to chart the best  course.

Many countries are concerned with both drought and climate change. They can install desalination systems which provide them with high quality water but increase CO2 emissions substantially.  A beautiful lawn improves life quality for the owner and neighbors but may be detrimental 50 years from now for coastal citizens in distant countries.

McIlvaine has been contracted by Fortune 500 companies to utilize the life quality metric to help them with decision making or promotion. One study dealt with single use versus reusable cleanroom and hospital garments. Comfort, safety, water pollution and greenhouse gases vary  between the two options. The life quality/tribal value/discounted future  approach provided guidance.

Several companies contracted with McIlvaine  to analyze the value of multi metals analyzers. Today regulators have to be content with one weight measurement for  all the metals. However some metals are thousands of times more harmful than others. Some such as mercury can be avoided by not eating large fish. Others cannot be avoided. Each can be rated based on life quality impacts. Life quality is the major issue in regional haze or the deterioration of the view for residents who can see wind turbines on the horizon..

Religions, cults, abortion rights, and eating habits are all driven by personal life quality metrics. Solutions to climate change improve life quality in the future but are discounted in the present for poor families hoping for electricity.

McIlvaine can assist companies who are assessing their ESG progress. The benefits for different groups dependent on their life quality metrics can be determined.

Background information is available at

http://www.mcilvainecompany.com/SURS/subscriber/Default.htm

For more information on ESG analyses contact Bob Mcilvaine at rmcilvaine@mcilvainecompany.com

Cell: 847 226 2391

Niche Market Share Analyses Provide Unique Insights

Market share analyses can be provided for a single company or many in any segment of air, water, and energy. For sales managers the purpose can be to assess one or more competitors.

For senior management it can be to analyze a market or an acquisition. Relevant current acquisitions can also be included.

McIlvaine  generates many millions of forecasts tor 80 countries, 17 major industry segments, 100 sub segments and hundreds of products. So the market share denominator is already established.  All that is needed is to determine the numerator.

This Emerson example shows what is immediately available.

The industry groupings are based on the following  segments.

In the Global Knowledge Orchard there are process trees such as gas turbine design and operation. One leaf may be turbine bypass valves.

There are product trees in the orchard with market share information. They can be progressively analyzed from trunk to branch to leaf.

McIlvaine is analyzing the market shares in the process trees such as gas turbines. This makes the task of analyzing specific products much easier.

The Emerson example is included in “ trunk  Market Shares”. The next level is branch shares and the most detailed level is leaf

Trunk Market Share  analyses are available in 20 categories.

Other trunk areas are shown below.

It is important to identify niche market share leadership at the leaf level. For example knife gate slurry valves for power plant FGD is an $80 million/yr market. When Tyco (acquired by Emerson) bought Clarkson Valve it became the leader in knife gate valves for mining and FGD. Acquisitions by others have also shaped the knife gate market. Relevant acquisition information in this market niche can be supplied. 

Examples of the leaf level focus are:

Aeration blowers:  http://home.mcilvainecompany.com/index.php/silobusters/municipal-wastewater-services

High Performance Valves:  http://home.mcilvainecompany.com/index.php/silobusters/high-performance-valves-and-iiot

Market shares at the trunk level are relatively inexpensive and very useful. They can precede evaluations at the branch and leaf level.

Bob McIlvaine can provide more information on this program. He can be reached at 847 226 2391 or rmcilvaine@mcilvainecompany.com

WOOD WASTE 

Five Issues Associated With Dust Removal In Wood Pellet Plants

Airex asks if the popularity of wood pellets, is an opportunity? They describe the issues related to capture of the dust.

 1. The Dust Load

Biomass, often derived from forest residues, creates a considerable volume of fine particles throughout manufacturing. The challenge? Capturing this dust as soon as possible to prevent it from building up and damaging the plant’s processes!

Therefore, the baghouse dust collector with cyclonic effect is ideal for managing such a load of particles coming from all workstations, usually configured in a continuous stream.

 2. The Ligneous Nature Of The Particles

When ground up, bark and wood tend to break down into small filaments that can complicate dust collection. These ligneous particles can clog ducts (forming the same way as spider webs) or even get tangled around filter elements, which adversely affects the effectiveness of the declogging within the dust collector.

3. Moisture In The Material During Primary Crushing

At this first manufacturing stage, the wood residue has not yet been dried. Full of moisture, they are sent by pneumatic conveyor, where the air stream temperature is usually high.

Due to this combination of heat and moisture, the dust going through the dust collector is likely to prematurely clog the baghouses.

4. Fire And Explosion Hazards During Secondary Crushing

After drying, crushing the materials involves a significant fire and deflagration hazard due to the friction itself associated with the process. Proper protection and prevention equipment must be put in place for exhausting the fine wood particles.

5. Material Recovery Using A Screw Conveyor

With an Airex Industries design, the material captured is not lost! With a bi-directional screw conveyor installed under the dust collector’s hopper, the wood dust is recovered and conveyed to the granulation zone.

If embers are detected in the air stream, the screw conveyor reverses direction, and the material is diverted out of the plant to avoid igniting a significant amount of material that could be used in manufacturing wood pellets.

Airex teams are proud to have worked on the dust collection and fire and explosion prevention systems of La Granaudière and Granule 777, two of the most recent wood pellet manufacturing plants in Quebec.

In addition to these design, manufacturing and installation experiences, we benefit from the expertise of our sister company, Airex Energy, which produces biocoal pellets.

Challenges of Wood Waste Management in a Leading Furniture Manufacturing Company

Millennium Furniture Co., Ltd., is a key company in the supply chain of one of the world’s largest furniture manufacturing companies and has recently expanded their production with two new plants. To meet the challenges of handling the large volumes of air needed due to combustible dust from MDF and particle board in the production, and to meet the strict requirements of safety, efficiency and aesthetics, the company chose Nederman to provide a complete solution for wood waste management, dust collection and recycling for both plants.

 With a distribution network reaching out to more than 123 countries, the company faced challenges in the capacity to filter the large volume of air that was needed. Combustible dust from MDF and particle board in the production has to be extracted to prevent the risk of explosions and to create a safe, compliant and efficient working environment. In addition to the strict requirements of safety, efficiency and aesthetics the company also has to fulfill special safety requirements to pass the global FM approved safety ratings and ATEX regulations.

The chosen wood waste management solution offered, supplied and installed by Nederman was made in two phases for the two factories. In the first phase 14+3 Modules of the ATEX compliant and FM approved LBR-C SmartFilter, 3 pcs of Combifab Fan 75 Kw and 3 pcs of CARZ 800 was installed to handle 164,000 m3/h air. In the second phase another installation of 12+3 LBR-C SmartFilter Modules and 3 pcs each of the Combifab Fan and CARZ 800 was designed and installed to handle an additional 140,000 m3/h air.

The installation provides a safe and healthy working environment for the employees as well as protects the facilities and the production, by minimizing the risks of fires and explosions from combustible dust - which is one of the most serious risks caused by dust in woodworking environments. The dust collection systems also contributes to improved production efficiency with low operation and maintenance costs as well as reduces the environmental impact of the industrial process.

ALUMINUM

Hydro Aluminum Henderson Facility Announces $15 Million Investment

Hydro Aluminum announced it plans to invest $15 million into its Henderson facility and retain around 47 full-time employees in an effort to increase production of certified, low carbon recycled aluminum and reduce the plant’s environmental impact. The investment will finance two projects. According to a news release from the company, the money will be used to install a new homogenization furnace to “improve the plant’s capabilities to meet the specifications of the growing U.S. automotive market.” It will also be used to install a new baghouse that will allow the plant to work with greater volumes and different types of scrap metal. A new baghouse would also improve air quality inside the plant and reduce its overall environmental footprint.

ASPHALT

Global Meta-Aramid Fiber Shortage Puts Asphalt Producers At Risk For Meeting Environmental Compliance

The Albarrie website reports asphalt producers and baghouse manufacturers are forced to seek out alternative high-heat fabrics for particulate dust filtration amidst the Global Nomex/Meta-Aramid shortage. There are a few factors at play when it comes to the supply shortage, making it harder for OEMs to see the light at the end of the tunnel.

Factories belonging to two of the four major fiber suppliers in Zheng Zhou, China have been part of the city-wide lockdown since 2021. The city-wide lockdown took effect months before the new Omicron variant became widespread, adding to the strain on supply in September/October 2021. The shutdowns are responsible for the raw material shortage of polymers and finishing agents for coating fibers.

According to Chris Plotz, Director of Education and Technical Affairs at the International Nonwovens and Disposables Associations (INDA), “the merger of Dow and Dupont and America’s 5G wireless expansion plan have significantly contributed to the shortage of fibers we’re seeing today”.

Dow and Dupont; one of the largest manufacturers of plastics, and finishing agents are unable to meet their usual demand for raw materials needed to manufacture fibers. Plotz also says that the Dow Dupont merger has been slow to advance due to covid-related issues. Dupont’s only significant expansion has been in Japan, but the move or expansion hasn’t helped the supply chain issues in North America.

The ongoing shortage is creating problems for the Asphalt industry, that relies heavily on Nomex/Meta-Aramid filter bags to meet their environmental compliance mandates in their baghouse operations at their plants.

Asphalt plant managers can look into a few alternative solutions if they need their meta-aramid filter bags replaced this year. According to Richard Watson, Purchasing Manager at Albarrie Canada, plant managers could seek Polyphenylene Sulfide (PPS) or Polyimide (P84) fabrics, depending on the plant’s environmental conditions and materials processing.

Alternatively, plant managers can prolong their existing baghouse filter bag life with High-Efficiency Cleaning (HEC) by Albarrie. The cleaning service uses a pressurized air impulse to release filter bag dust-cake buildup to clean existing baghouse filter bags while they remain in place. High-Efficiency Cleaning can help double the lifespan of filter bags by up to one year. Long enough to hopefully see us through the shortage.

Industry experts are not optimistic and don’t see any changes until the end of 2022. “Supply chain is a huge problem with meta-aramid and many other fibers; there doesn’t seem to be any changes in that issue until the end of 2022,” says Plotz.

COMPANY NEWS

Alkegen Announces Plans to Increase Micro-Fine Glass Fiber Capacity To Support Growing Battery and Filtration Demand

Alkegen, one of the largest specialty materials platforms in the world that provides high performance materials used in advanced applications including filtration media, battery technologies, high temperature insulation and fire protection, announced expansion efforts aimed at increasing its total micro-fine glass fiber (MFGF) manufacturing capacity by 30%.

“Our advanced micro-fine glass fibers are critical components in many of the world’s most innovative products, from medical devices to battery packs for electric vehicles,” said John Dandolph, president and chief executive officer, Alkegen. “These latest investments reflect Alkegen’s ongoing commitment to our partners in the fiber technology space, increasing supply in anticipation of future demand as we continue to develop compelling new specialty applications for these advanced glass fiber chemistries.”

Alkegen plans to accelerate enhanced MFGF capacity by adding a total of eight manufacturing lines in its facility in Bahrain and 22 lines to its US-based facility located in Summerville, SC. The company also plans to expand and improve MFGF capacity and operations in China, including doubling its current rotary capacity in the region.

“Our MFGF expansion in Bahrain, Summerville, S.C., & Songyuan, China keeps Alkegen positioned globally as the best option for customers that value quality and security of supply,” said Chris McPhillips, general manager of MFGF, Alkegen. “The addition of over 30 manufacturing lines will not only help alleviate some of the supply chain strains we’ve seen over the first half of the year, but they will also ensure that Alkegen continues to address growing demand for MFGF in rapidly-growing industry sectors like batteries, High End Air and Liquid Filtration, and Medical Testing Media.”

Advanced Emissions Solutions Announces Merger with Arq Limited

Advanced Emissions Solutions, Inc. announced that it has entered into a definitive merger agreement with Arq Limited, pursuant to which Arq and ADES will combine their respective businesses. ADES shareholders may elect to receive up to an aggregate of $10.0 million of cash proceeds in the merger (at a price of $0.52 per share) and will retain at least 47.4% of the outstanding shares of the combined company and could increase up to 49.5% based upon 100% equity elections by ADES Investors. Concurrent with the merger, there will be a committed equity placement of $20.0 million from current Arq investors and members of Arq management.

 Arq developed and owns a novel manufacturing process for producing patent-protected carbon products from remediating coal waste sites. The merger creates a North American based, integrated environmental technology company with access to diverse growth markets and a competitively advantaged position supported by patent-protected intellectual property (“IP”) and products. Access to Arq’s unique carbon feedstock will allow ADES to produce higher value activated carbon (“AC”) at the company’s Red River plant.

 Arq’s technology and unique feedstock provide significant growth opportunities into high-growth granular activated carbon (“GAC”) markets as well as large, adjacent markets including, but not limited to, additives to be utilized within the Carbon Black, Asphalt and Marine Fuel markets. The combined company will seek to leverage Arq’s existing strategic partnerships with Peabody, Vitol, Hafnia and Mitsubishi.  

The merger provides secured access to unique, waste-derived feedstock, which can be used to produce higher performance and environmentally beneficial AC products that, when combined with a vertically integrated supply chain, provides a distinct competitive advantage in the North American AC market. In addition, the utilization of waste-derived feedstock results in lower manufacturing emissions and promotes the reclamation of property for future use. Further, with Arq’s feedstock, the combined company’s vertically integrated supply chain will enable highly efficient production and distribution of an expanded portfolio of both GAC and powdered activated carbon (“PAC”) products.

 The combination of ADES and Arq provides entry into broader, higher performance and higher value AC markets by leveraging ADES’ existing organizational infrastructure, large scale manufacturing capabilities, established distribution network, world-class research, technical support, market-leading sales channels and customer base, while integrating Arq’s unique patent-protected and environmentally sustainable feedstock. The merger also provides for the optimization of the Red River plant to produce additional GAC made from Arq’s feedstock, thereby allowing entrance into growing and diverse markets, as well as improving the plant’s economics.

 Combined company projected to generate annual revenue of $196 million and annual EBITDA of $61 million by 2026, with potential to expand growth through additional financed capital raises.

GE Unveils Brand Names for Three Planned Future Public Companies

 GE announced the brand names of the future companies it will create through its planned separation into three industry-leading, global, investment-grade public companies focused on the growth sectors of healthcare, energy, and aviation.

 GE HealthCare will be the name of GE’s healthcare business. GE’s existing energy portfolio of businesses, including Renewable Energy, Power, Digital, and Energy Financial Services, will sit together under the brand name GE Versova. GE Aerospace will be the name of GE’s aviation business. All three planned companies will continue to benefit from GE’s heritage and global brand valued at nearly $20 billion.

 Additionally, GE announced that following the completion of the planned spin-off, shares of GE HealthCare will be listed on The Nasdaq Global Select Market under the ticker symbol “GEHC.” By listing on Nasdaq, GE HealthCare will benefit from the exchange’s profile and track record as a market for innovative, technology-led public companies, particularly in the healthcare sector.

 H. Lawrence Culp, Jr., Chairman and CEO, GE, and CEO, GE Aerospace said, “Today marks a key milestone in GE’s plan to become three independent, laser-focused companies. Leveraging GE’s multi-billion-dollar global brand gives us a competitive advantage in our end markets, allowing these businesses to win in the future. Built on a foundation of lean and innovation, these brands will continue our mission of building a world that works and provide our customers with an important reminder of the strengths they value in GE.”

 GE intends to execute the tax-free spin-off of GE HealthCare in early 2023, creating an independent company driving innovation in precision health to improve patient outcomes and address critical patient and clinical challenges. Building on a more than 100-year history, the GE HealthCare name and Monogram will serve as an enduring badge of safety, quality, trust, and innovation. The new brand color for GE HealthCare is called “compassion purple” to reflect more humanity and warmth and achieve greater distinction. The company will continue to be at the forefront of provider and patient care with more than four million product installations and over two billion patient exams a year.

 In early 2024, GE plans to execute the tax-free spin-off of GE Vernova, GE’s portfolio of energy businesses, which together with its customers provides one-third of the world’s electricity and is focused on accelerating the path to reliable, affordable, and sustainable energy. The new name is a combination of “ver,” derived from “verde” and “verdant” to signal the greens and blues of the Earth, and “nova,” from the Latin “novus,” or “new,” reflecting a new and innovative era of lower carbon energy that GE Vernova will help deliver. These attributes also are reflected in GE Vernova’s new “evergreen” brand color. With an installed base of more than 7,000 gas turbines and 400 GW of renewable energy equipment, GE Vernova’s Monogram will serve as a reminder of the company’s lasting commitments to deliver quality, partnership, and ingenuity to its customers.

 Following these planned spin-offs, GE will be an aviation-focused company called GE Aerospace. With an installed base of 39,400 commercial and 26,200 military aircraft engines, the company will continue to play a vital role in supporting the industry through a historic recovery while shaping the future of flight. The GE Monogram, new name, and new “atmosphere blue” brand color—representing the upper limits of the atmosphere—maintain the brand’s strong standing in the aviation sector, while setting forth a confident vision to compete and advance in the field of aerospace and defense for future generations. Following the planned separations, GE Aerospace would own the GE trademark and would provide long-term licenses to the other companies.

 GE Chief Marketing Officer Linda Boff said, “Over the course of the last six months, we engaged in a thorough, customer-led process to understand the intrinsic value of the GE brand for our planned future companies. Based on data and analysis drawn from thousands of conversations, it became clear that the GE name and our century-plus old Monogram represent a legacy of innovation, symbol of trust by global customers, pride for our team, and a talent magnet for future leaders. We’re proud these future businesses will be able to build on GE’s DNA of innovation.”

 By creating three separate companies, each will benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value.

 CECO Environmental Expands Industrial Air Offering with UK-Based Acquisition

 CECO Environmental Corp. ("CECO"), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, announced it has completed the acquisition of industrial air quality consultancy and engineering firm, Western Air Ducts Ltd. ("Western Air"), and its patented air control system Inteliair^®. Effective immediately, both brands will be folded into CECO's industrial air platform.

 Western Air is a leading global firm in dust and fume extraction solutions, providing industrial air consultation, design, manufacturing, installation, and aftermarket parts and services. The acquisition adds a complementary line of standard size cartridge and bag dust collectors that expand CECO's ability to immediately provide in-stock solutions and quick shipment.

Additionally, the Western Air's Inteliair Intelligent Control System utilizes smart sensor technology to sense demand, and automatically adjust and control air flow, particulate matter, and help customers reduce energy costs by 40 percent or more while simultaneously reducing their carbon footprint. Inteliair has been recognized by the UK Carbon Trust for energy savings and environmental impact. Applications include, but are not limited to, hydrogen extract systems for offshore wind, waste extraction for aerospace composites, and dust collection for engineered wood manufacturing.

"This is another strategic and accretive acquisition for CECO and expands our industrial air addressable market by more than $150 million," said Todd Gleason, Chief Executive Officer, CECO Environmental. "The acquisition adds a standard product offering to our extensive dust collector portfolio, and the Inteliair energy-efficient smart logic controls provide significant opportunity for growth and global product introductions."

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