July 2007 News Archives

For CURRENT News click here.

Bricmont Lands Aluminum Melter Order

(July 29 - evening update) - While an aluminum melter isn't heat treating, it certainly pertains to all those using aluminum alloys. Word is out from Industrial Heating that Bricmont has landed a new order for two top-charge aluminum melters and two tilting holding furnaces. 

Bricmont, of course, is one of the larger North American manufacturers of large furnaces (think pusher times 10) in the steel industry. You can read IH's write-up here.

ELTERMA Pit Furnace Sales in Europe

(July 24 - evening update) - Today's news is from ELTERMA S.A. of the SECO/WARWICK Group. Apparently they've been busy installing a number of pit furnaces in Europe for a variety of applications. Here's their PR:

ELTERMA S.A., a leading member of the SECO/WARWICK Group, has recently completed several pit furnace installations throughout Europe.  ELTERMA Pit Furnaces are used successfully in a wide variety of applications including gas carburizing, carbonitriding, normalizing, hardening, tempering and annealing. 

Romania

ELTERMA commissioned a pit furnace for carburizing in May 2007. The PGGAT – 1000/15x23 furnace is an addition to a complete furnace line that was delivered and started up by ELTERMA in 2004. This is the third furnace purchased by this client, a manufacturer of aircraft subassemblies, specifically transmission gears, with plants located in Belgium and Romania.

The furnace is heated with a recuperative burner system for maximum fuel efficiency.  The system utilizes a flexible cooling system that allows both gradual and step-down cooling to provide the appropriate profile for carburizing. The furnace is rated for loads up 6,000 kg (13,228 lbs.), 1500 mm (59 inches) in diameter, and 2300 mm (90 inches) high.  The furnace was tested after start-up and has met both AMS2750 and Nadcap requirements.

Spain

ELTERMA has completed the start-up of a pit furnace production line for a transmission gears used for wind power stations in Spain.  The system is used for carburizing loads up to 8000 kg (17,637 lbs.), with dimensions 1800 mm (70 inches) in diameter and 3000 mm (118 inches) high.

Finland

A well-known manufacturer of industrial transmission gears in Finland selected an ELTERMA pit furnace line for carburizing loads up to 8000 kg (17,637 lbs.), with dimensions 1800 mm (70 inches) in diameter and 3000 mm (118 inches) high.  The system is scheduled for delivery in January 2008.

# # #

Beth Ryan, Marketing Communications Director
814/332-8437
bryan@secowarwick.com

Beata Tustanowska, Marketing Coordinator
+48 (068) 3819 804
b.tustanowska@elterma.com.pl

Expansion at Ipsen Shanghai

(July 24 - morning update) - This month Ipsen's Shanghai subsidiary began and expansion to their facilities that includes additional workshop, office and warehouse space. As most China companies must provide lunch to their workers it also includes and expansion of the canteen. Here's the PR:

The planning for the third phase workshop, warehouse, as well as the canteen and office extension was completed in early July, 2007. The traditional Ground Breaking Ceremony was held on the 10th of July 2007.

Dr. H. Grobler and Mr. HP. Lankes, who are respectively the CEO and Sales Director of IPSEN INTERNATIONAL, attended the function. Other guests who attended came from the local government authority, the architectural consultancy, the contractor, and the management and employees of Ipsen Shanghai.

In his opening speech the Managing Director Mr. Manfred Wiedenmaier said “Ipsen Shanghai was established in 1994 and has since been expanded twice. This, the 3rd phase extension will double the existing facility. After inauguration, which is planned for January 2008, this benchmark facility will enable Ipsen Shanghai to cope with growing customer demand and enable the start of the new developments planned for this Ipsen location”. Dr. H. Grobler highlighted in his speech the importance of Ipsen Shanghai within the Ipsen Worldwide Group and confirmed the confidence in this location and its management. He assured the full support of the headquarters and wished every success to all involved in the construction project. The company also received congratulations from the local government as well as appreciation for the important contribution to the local economic development in the past years. The Ceremony was concluded with the sound of fire crackers and an enjoyable lunch.

Ipsen Shanghai is currently working on various new developments, these are planned to be introduced into the Chinese furnace market in the near future. These developments are in response to the current strong investment climate in key customer industries such as aeronautical and automotive technology for example.

Ipsen Shanghai will be exhibiting at the approaching Heat Treatment Fair in Beijing, which is to be held in November 2007. At the Heat Treatment Conference in Dalian in September 2007, Ipsen will organize an evening event with several speakers who will give presentations on heat treatment technology and associated developments.

Electronic/Communications Workers Threaten to Strike Delphi

(July 24 - morning update) - It wasn't but a few weeks ago that it seemed Delphi's labor woes were winding down. Well it simply isn't so. Yesterday Delphi's second largest union, The International Union of Electronic Workers-Communications Workers of America, told Delphi it plans to end it contract and strike as soon as October first. According to many experts this is just posturing for a better deal, but a real strike could have a significant impact on General Motors later in the year.

Timken Monitoring System Saves ACP Over $1 Million

(July 24 - morning update) - The concept of continuous, online monitoring of machine vibration and temperature to predict pending failure is not new...only nobody's ever really done it. Sounds like Timken's got that going and more. Here's the PR:

Marathon's PR on "Exporter of the Year" Award

(July 23 - morning update) - Last week we posted the news of Ohio-based Marathon winning that state's "Exporter of the Year" award for their strong sales of Ohio-made products overseas. Today we have the official press release on teh matter from the folks at Marathon along with a photo of the owners receiving the award from Governor Strickland and Leutenant Governor Fisher:

“Marathon Sensors Named 2007 Ohio Exporter of the Year by Governor Strickland”

West Chester, OH (20 July 2007) – Ohio Governor Ted Strickland awarded the highest honor in exporting for 2007 to Marathon Sensors Inc. During a ceremony at the Statehouse Atrium, the Governor awarded 31 Excellence in Exporting Awards, naming Marathon the “Exporter of the Year 2007.”

"Ohio is poised to become a leader in our fast-growing global economy, and we must continue to recognize that opportunities beyond our state borders are vital to Ohio's economic success," Strickland said, in his official release dated 18 July 2007. "These businesses represent the kind of drive, vision, and innovation required to be a leader in Ohio's exporting industry. I'm proud to honor them today."

Accepting the award were Marathon owners Eric and Yvonne Boltz. “Marathon is proud and excited to receive this honor from Governor Strickland. The employees and partners of Marathon share the responsibility deserve the recognition for their hard work. We knew that working with quality partners around the globe and not outsourcing our production and parts to cheaper places was the right way to continue,” said Eric Boltz, President of Marathon. “Our sales and service subsidiary in China and licensee in Mexico have worked hard to increase our market and maintain the quality that makes Marathon the best.” Marathon exports approximately 50% of its products while all manufacturing remains in West Chester, Ohio.

Marathon Sensors, an ISO 9001:2000 registered firm, designs, manufactures and markets atmosphere sensors, instrumentation and control systems for the heat treating, power generation, glass and ceramic, chemical and petrochemical, steel reheat, and incineration industries. For more information about Marathon’s products, visit the website at www.marathonsensors.com, phone 800-547-1055 (+01 513-772-1000 outside the United States), or email at yboltz@marathonsensors.com.

Marathon Honored with Exporter of the Year Award

(July 18 - evening update) - In these days of record trade deficits - especially with Asia - it's nice to see the heat treating market pulling its weight and sending American-made products abroad. 

Today's news is about Marathon (control systems, sensors and analyzers) being honored as the state of Ohio's Exporter of the Year. No doubt in part a result of their sales and engineering offices in many foreign locales including their own service subsidiary in China. Here's the PR from the governor's office (link to original here):

GOVERNOR HONORS OHIO BUSINESSES FOR SUPERIOR EXPORTING
Marathon Sensors Inc. earns "Exporter of the Year" award

FOR IMMEDIATE RELEASE
July 18, 2007

Good Days for Nickel and Natural Gas

(July 17 - evening update) - A few years back if someone had told you that $15/lb nickel was good news they'd have thought you'd been drinking. After weeks above $18 and even $22 nickel is finally crawling down to more reasonable levels.

Right along with more reasonable nickel, natural gas is steadily inching down. Though it's bound to bounce up again with Winter, the lower gas prices are certainly helping the bottom line of many heat treaters. Coupled with nickel finally dropping we should have some solid profit months ahead.

Keep those fingers crossed.

Chrysler Exceeds Goal in First Phase of Restructuring

(July 17 - evening update) - Daimler Chrysler...uh, make that The Chrysler Group, beat its targets for job reductions during the first phase of its restructuring effort. In all, The Chrysler Group shed some 1,100 salaried workers through buyouts and early retirement packages. That's about 100 more than the target for 2007.

As for hourly workers, the Group exceeded its target by about 125 jobs by cutting a total of 6,000 from its workforce. Another 400 hourly workers have applied for early buyouts or retirement. These applications are under review.

In unrelated news, Chrysler also nixed their planned mega-sized Imperial sedan citing high gas prices and looming government mileage requirements.

Diesel Engines to Make Comeback - Displace Hybrids

(July 17 - evening update) - Think hybrids are all the rage? Think again. New consumer surveys show that more people are interested in diesel engine autos than hybrids (last year's rage). The reason is increasing awareness of both the performance and clean burning nature of the newest generation of diesels on Europe's roads (including a really sweet Chrysler 300M turbo diesel that you can't buy in the US).

GM has taken notice and is buying into an Italian company called VM Motori S.p.A. that specializes in diesel engines. VM Motori is currently owned by Penske Corp. 

Six-Year Labor Agreement at AK Steel

(July 13 - morning update) - AK Steel in Rockport, IN have a new, six-year agreement between the company and their UAW union workers. Here are the details:

Employees of AK Steel's Rockport (IN) Works represented by the United Auto Workers union have ratified a new six-year labor agreement. About 190 hourly workers at the carbon and stainless steel finishing complex are affected, according to AK Steel, and the new contract will take effect August 1.

The steelmaker said that it agreed with the union to begin early bargaining in order to reach a new contract before the existing agreement expires in September. A tentative agreement was reached on June 28, and workers voted to approve the new contract July 5-6.

AK Steel said the new contract includes wage increases and lump-sum payments, a signing bonus for early ratification, continued cost-sharing for employee health care, and increases in contributions to the employees' 401(k) retirement plan.

AK Steel chairman, president, and CEO James L. Wainscott stated: "We are delighted that members of UAW Local 3044 have ratified a new, competitive labor agreement that will help Rockport Works continue to serve our valued customers with outstanding quality and productivity. We are especially pleased that the new contract is in place well ahead of the expiration date of the previous agreement."

The Rockport Works converts carbon and stainless steel hot-rolled strips into a variety of finished products, using one or more of the processing lines installed there. These include a continuous pickling line, a continuous cold-rolling mill, a stainless steel continuous annealing line, a hydrogen batch annealing installation, a temper mill, and a continuous hot-dip galvanizing line. The operation also has off-line coil inspection and packaging capabilities. Products finished at Rockport are marketed to automotive and appliance manufacturers.

More Steel Consolidation as Gerdau Buys Chaparral Steel for $4.2 Billion

(July 13 - morning update) - CThe ongoing consolidation in the steel industry either bodes well for customers (higher efficiencies) or spells disaster (more monopolistic). Let's hope for the former. Here's the latest story on the consolidation game:

Two New Heat Treat Auctions Listed in Our Forum

(July 10 - midday update) - Cincinnati Industrial Auctioneers has just posted two upcoming auctions in our forum. One is for the complete heat treat department from Owens Illinois Company (Godfrey, IL) and starts July 18th. The other is for furnaces and plastics equipment from Fiskars Brand, Inc. (Wausau, Wisconsin) and starts Wednesday July 25. You can find out more, including a list of equipment here.

Nitrex Delivers Compact Nitriding System to MPC Products Corp.

(July 10 - morning update) - Below we have the latest PR from Nitrex Metal that talks about their recent installation of a compact nitriding system to MPC Products:

Nitrex Metal Inc. (www.nitrex.com) recently delivered a compact Nitreg(r) nitriding system to MPC Products Corp. (Niles, IL), a manufacturer of high performance electromechanical motion control systems for aerospace applications. The NX-409 model is a scaled down version of the heavy-duty industrial line of NX models and is suitable for general aerospace, laboratory and testing purposes, as well as nitriding production on a small scale. The furnace is equipped with a process management system that provides tight control of nitriding processes and excellent repetition of results to ensure compliance to NADCAP requirements. MPC Products will use the Nitrex system to nitride actuator components made from different alloys, ranging from carbon to stainless steels. The system was successfully installed in July 2007, and its plug-and-play setup significantly reduced installation time and cost.

ABOUT NITREX METAL INC.
Nitrex Metal is a key supplier of automated, turnkey heat treating systems for nitriding and nitrocarburizing applications and operates a network of commercial heat treating facilities across North America. To date, the company has over 200 installations in plants worldwide and has licensed its technology to commercial heat treating companies in Australia, Brazil, UK, France, Italy, New Zealand, Poland, South Africa, Spain, Taiwan, UAE, UK, and USA.

For more information contact Paul Gofas or Jan Potocki by phone: 514-335-7191, fax: 514-335-4160, or
e-mail: events@nitrex.com

 

Dr. Al Gunow Published in Thailand MTEC Journal

(July 10 - morning update) - Here we have a photo of Dr. Al Gunow of Integrated Technologies in Rochester, MI, giving a paper on vacuum carburizing technologies at the 2005 Southeast Asia Heat Treatment Conference, hosted by CHS-Asia in Bangkok (that's David Pickup of CHS and AV specialist on the left).

It turns out that Al's paper has now been translated into Thai and will be published in an upcoming issue of the MTEC Journal in Thailand. MTEC promotes metallurgical technologies in both universities and businesses throughout Southeast Asia.

Slow Week

(July 8) - A quite slow news week was made worse by our inclination to spend more time with family than surfing the net during this holiday week here in the USA. Tune in next week as we get back in the groove of reporting the latest in heat treat news.

Dana News

(July 8) - Two news releases from Dana came in this week. The first was about the sale of their European Fluid Products Operations (sale of the North American arm comes later this quarter):

Dana Corporation Closes Sale of European Fluid Products Hose and Tubing Operations to Orhan Holding, A.S.

Sale of North American Operations Expected to Close Later in Quarter

TOLEDO, Ohio, July 5 /PRNewswire/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN
BOARD: DCNAQ) has closed the previously announced sale of its European fluid products hose and tubing operations to Orhan Holding, A.S., receiving cash proceeds of $66.9 million, and expects to receive $18.1 million of cash proceeds upon closing the sale of the remainder of the hose and tubing business - in North America - to Orhan later in the third quarter.

Dana expects to record an after-tax gain of approximately $34 million in the third quarter of 2007 in connection with the completion of the entire divestiture.

The assets sold to Orhan thus far include:
* A facility in Birmingham, United Kingdom;
* Stock in three companies in Vitry, France; Dolny Kubin, Slovakia; and
Barcelona, Spain;
* Interests in three joint ventures with Orhan, including one operation
in France and two in Turkey; and
* Intellectual property relating to the global hose and tubing business.

The remaining fluid products hose and tubing assets are located in Archbold, Ohio; Paris, Tenn.; Rochester Hills, Mich., U.S.A.; and San Luis Potosi, Mexico.

The global fluid products hose and tubing business reported aggregate revenues of $266 million in 2006 and employs approximately 1,750 people. Its operations manufacture fuel lines; power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under-body products; engine and transmission cooling lines; exhaust gas recirculation tubes; and airbag fill tubes.

Dana Chairman and CEO Mike Burns said, "The divestiture of our fluid products hose and tubing business is an important step in implementing Dana's reorganization initiatives and sharpening our focus on our core axle, driveshaft, structural, sealing, and thermal products businesses for the automotive, commercial vehicle, and off-highway markets."

The second Dana PR is about Dana's settlements with USW and the UAW as well as an agreement with Centerbridge Capital Partners for a major investment in Dana (this one's a long one):

Dana Corporation Announces Settlements with USW and UAW, Agreement with Centerbridge Capital Partners on Major Investment in Dana

TOLEDO, Ohio, July 6 /PRNewswire-FirstCall/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) today announced a series of interrelated agreements that will substantially reduce the company's operating costs and provide important momentum toward its emergence from bankruptcy as a competitive, sustainable business. The agreements consist of:

- A settlement agreement with each of the United Steel Workers (USW) and
the United Auto Workers (UAW), which will lower Dana's labor costs and
replace the company's health care and long-term disability obligations
for retirees and employees represented by these unions with Voluntary
Employees' Beneficiary Association (VEBA) trusts to which Dana will
contribute in aggregate approximately $700 million in cash (less certain
benefit payments made prior to the effective date of the company's plan
of reorganization) and approximately $80 million in common stock of the
reorganized Dana;
- An agreement with Centerbridge Capital Partners, L.P., and its
affiliates on the terms under which the firm will invest up to $500
million in cash for convertible preferred stock in the reorganized Dana
and facilitate an additional investment by other investors of up to $250
million in convertible preferred stock; and
- A plan support agreement with the USW, the UAW, and Centerbridge, under
which these parties will support a plan of reorganization filed by Dana
that includes both the labor settlements and the Centerbridge investment
agreement.

These agreements are subject to approval by the Bankruptcy Court for the Southern District of New York, where the company's Chapter 11 bankruptcy proceeding is pending. The union settlement agreements are also subject to ratification by Dana's USW and UAW employees, which the unions will seek in the near term.

"Through our negotiations with the USW and the UAW, and negotiations with Centerbridge for the investment that will contribute to our ability to fund the VEBAs, we have reached what we believe are fair and constructive agreements," said Mike Burns, Dana's chairman and chief executive officer.
"I am particularly pleased that these agreements were reached as a result of a shared commitment - from all of the involved parties - to the long-term success and viability of Dana Corporation."

"We welcome the investment by Centerbridge, a private equity investor with considerable expertise in the automotive industry and complex restructurings.
Centerbridge brings a long-term perspective and a strong commitment to assisting us in building a solid future for Dana," Burns added. "While there is a good deal of work yet to be done, we are on track to file a reorganization plan by the beginning of September and to emerge from bankruptcy by year end."

Settlements with USW and UAW

Encompassed in the settlements with the USW and UAW are four-year extensions of Dana's collective bargaining agreements with all of its USW- and UAW-organized facilities in the United States and new agreements with several recently organized facilities. Among other items, the extended and new bargaining agreements will provide for the establishment of a two-tier wage structure at certain affected U.S. operations, changes in disability benefits, and a freeze on credited service and benefit accruals under the pension plans for active employees represented by the USW and UAW.

"These agreements will resolve significant ongoing cost issues when implemented and they provide important momentum toward our completion of a reorganization plan that will position us to operate as a competitive, sustainable business after emergence," Burns said.

Each of the union settlement agreements also calls for the establishment of a VEBA to replace the company's current retiree health care plans and long- term disability obligations for employees covered by USW and UAW collective bargaining agreements. A VEBA is a special, tax-deductible trust that can be used to provide certain benefits, such as medical reimbursement, to participants and their beneficiaries.

The settlement agreements provide that upon Dana's emergence from bankruptcy, the company will contribute, in aggregate, approximately $700 million in cash (less certain benefit payments made prior to the effective date of the company's plan of reorganization) and approximately $80 million in common stock of reorganized Dana to the VEBAs in exchange for the termination of Dana's obligation to provide non-pension retiree welfare benefits for USW- and UAW-represented retirees and long-term disability benefits to USW- and UAW-represented employees. The company will continue to provide benefits for these retirees and employees under its existing plans until emergence. Dana currently has an aggregate of approximately $1.1 billion in unfunded non- pension benefit and long-term disability obligations under its U.S. post- retirement health care plans for USW- and UAW-represented retirees and employees.

Dana estimates that the modifications to the USW and UAW collective bargaining agreements and other provisions of the union settlement agreements will collectively result in annual savings of more than $100 million.

Agreement for Issuance of New Equity

Under terms of the investment agreement, Centerbridge will purchase up to $500 million of convertible preferred stock of the reorganized Dana and facilitate an additional investment of up to $250 million in convertible preferred stock.

The conversion price will be based on trading prices of common stock of the reorganized Dana during a short period after emergence. Using preliminary forecasts and a preliminary valuation as an estimate of future market trading prices for the reorganized Dana's common stock, the company estimates that the $500 million of convertible preferred shares would represent less than 25 percent of the fully diluted common stock of the reorganized Dana on an as- converted basis.

Proceeds from the investment will be deployed in part to fund the VEBA trusts that will be established under the settlement agreements with the USW and UAW.

The closing of the Centerbridge investment will be subject to Dana's filing of a plan of reorganization and a disclosure statement by September 3, 2007, as well as other customary conditions, but will not be subject to further due diligence.

Dana will be able to terminate its arrangements with Centerbridge to accept an alternative transaction or plan under certain circumstances, with the reasonable consent of the USW and UAW.

Agreements Keep Company on Track to Achieve Fundamental Changes

"Last November, to address the harsh reality that Dana had generated more than $2 billion in losses over the past five years, we announced a series of interdependent restructuring initiatives," Burns added. "These initiatives, affecting all of the company's constituencies - our customers, suppliers, both union and non-union employees and retirees - were designed to result in an aggregate pre-tax annual income improvement of $405 million to $540 million."

The Dana initiatives call for savings in five interrelated areas:
1. Achieving substantial price recovery from customers;
2. Optimizing Dana's U.S. manufacturing footprint, including the moving
of certain operations to lower-cost sites;
3. Reducing labor costs by creating a more industry-competitive cost
structure;
4. Eliminating retiree health and welfare costs; and
5. Reducing administrative costs.

"Without the settlements with the USW and UAW, essential savings in other areas could be jeopardized," Burns said. "With these settlements, we will be solidly within the range of savings we need to move forward with our plan of reorganization and emerge as a competitive, sustainable business."

About Centerbridge Capital Partners L.P.

Centerbridge is a $3.2 billion multi-strategy private investment firm. The firm is dedicated to partnering with world-class management teams in a range of industry verticals. Centerbridge's investment style provides the flexibility to employ various strategies to help companies achieve their operating and financial objectives. The limited partners of Centerbridge include many of the world's most prominent financial institutions, university endowments, pension funds, and charitable trusts.

US Independence Day

(July 4) - Tomorrow folks in the USA celebrate their Independence Day.

In between visiting with friends and family, BBQ-ing, too much alcohol and setting off fireworks (with subsequent burns for those consuming too much alcohol!) feel free to take a look at this brief history of the 4th of July (click here).

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