(November 29) - It's just amazing how the best run companies just find a way in spite of market movements. You'll recall the recent third quarter loss from American Axle...well, it turns out they're still paying a Q4 dividend to shareholders and pressing forward with product expansion. Here's the PR:
American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today announced a cash dividend of $0.15 per share payable on December 28, 2006 to stockholders of record on all of the Company's issued and outstanding common stock as of December 7, 2006.
AAM is a world leader in the manufacture, engineering, design and validation of driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom.
Certain statements contained in this press release which are not historical facts contain forward-looking information with respect to the Company's plans, projections or future performance, the occurrence of which involves risk and uncertainties that could cause the Company's actual results or plans to differ materially from those expected by the Company which include risk factors described in the Company's filings with the Securities and Exchange Commission.
Strong Bookings for VFS Corp.
(November 28) - Business continues to be strong for vacuum furnace manufacturer and Ipsen sister company VFS Corp. Here's their press release from today:
SOUDERTON, PA (November 28, 2006) – Vacuum Furnace Systems (VFS) Corporation reports the sale of three Horizontal External Quench (HEQ) vacuum furnaces in October, continuing a strong trend for the year. Honeywell Aerospace and PCC Airfoils purchased systems for facilities in Mexico, while Wayne Wire Cloth will take delivery at their plant in Michigan.
VFS was able to meet the rapid December 2006 delivery requirement for Honeywell as the furnace was already in process as a speculation furnace prior to the order. VFS routinely lists speculation furnaces for immediate sale on its web site, www.vfscorp.com.
VFS designs and manufactures high performance vacuum furnaces for a variety of thermal processing applications in the metal treating and brazing technologies. VFS also provides advanced supervisory furnace controls, application assistance and installation, start-up and aftermarket support services.
For more information, contact Geoffrey Somary, Acting President, Vacuum Furnace Systems Corp., 1946 East Cherry Lane, Souderton, PA 18964-1008.
(November 28) - We have exclusive word today of a significant merger in the heat treating business. It turns out that the two owners of MMI-Corp, the parent company of Marathon Sensors and Marathon China, wed this last Sunday in a relatively small ceremony of friends, family and colleagues. Dr. Eric Boltz and Yvonne Spooner (now Boltz) have officially made MMI a family owned business. Here's a HeatTreatNews.com exclusive photo of the happy couple:
Solar Manufacturing Installs Replacement Hot Zone
(November 27) - After the holiday week we're in the process of recovering from too much food, family and house guests! Today the news is from Solar Manufacturing of a replacement hot zone installed at Williams International in Ogden, UT. Here's the PR from Solar:
Souderton, PA – A replacement hot zone has been installed by Solar Manufacturing at Williams International, in Ogden, UT. Installed in a VFS Model HL-50x72, the hot zone passed uniformity survey for aerospace requirements.
The hot zone was installed without modifications to the chamber or power supply, but various improvements were made. Energy efficiency increased by more than 25% and high velocity graphite gas nozzles improved cooling and reduced cycles, while durable graphite curved elements replaced the molybdenum ribbon type. The Daley ring element jumper system was added as well, which is available exclusively through Solar Manufacturing.
Solar Manufacturing offers replacement hot zones for various vacuum furnace brands and manufactures vacuum heat treating and brazing furnaces. To learn more about their diverse product line, contact Peter Reh, Vice President of Sales, Rick Jones, International Sales Manager or Dennis Hiddemen, Aftermarket Sales Manager at 267-384-5040 or pkr@solarmfg.com , rick@solarmfg.com, or drh@solarmfg.com. More information can also be found at www.solarmfg.com.
Ipsen / VFS Reorganizations
(November 22) - Hendrik Grobler, Chairman of Ipsen International has recently rearranged the group's management team. John Schmitt is now promoted from acting president & CFO to president and CEO. Furthermore, Geoffrey Somary, who has been running sister company VFS as their acting president, has been promoted to COO of Ipsen International.
This further blurs the line between VFS and Ipsen and makes it appear as though VFS is one its way to becoming a brand within Ipsen...a good move for both Ipsen and customers as they can now provide a broad spectrum of solutions to the marketplace.
I am pleased to announce the following promotions being an important step in the development of the company. Effective immediately, John Schmitt is appointed President and CEO of Ipsen International Inc. John is being promoted from his current position of Acting President and CFO. John has done an outstanding job to guide the company through our well thought out initiatives to strengthen Ipsen. Geoffrey Somary, current Acting President of VFS, is appointed as COO of Ipsen International, Inc. In this position, he will be responsible for Purchasing, Sales, and Aftermarket. Geoffrey will report directly to the CEO. For the time being, he will remain in his current position at VFS in support of the Ipsen North American initiatives. Please join me in welcoming and supporting both of these gentlemen in their new roles. Hendrik Grobler, Chairman, Ipsen International, Inc.
John Searle Quits Eurotherm for Eclipse Combustion
(November 22) - We've just got word the John Searle, who headed up Eurotherm's US presence for the last few years, has departed for the greener pastures of Eclipse, a prominent manufacturer of burners for heat treating furnaces.
We know that Eurotherm has a new, intense program to "capture" the heat treating controls market and that Eurotherm was recently bidding on a big job to supply most of Bodycote's plants with SCADA systems, but we've no idea if John's departure is related.
Eurotherm, a British company owned by Invensys, has certainly been "staffing up" lately having recently brought Nigel Tucker, former Managing Director of Marathon Monitors UK into their fold, but no word on John's replacement is known.
John, by the way, is a very personable guy and has done a great job for Eurotherm since taking over in 2003.
Heat Treat News Welcomes CareerBuilder!
(November 21) - We're pleased to announce that Heat Treat News is now a careerBuilder.com partner. We now offer job seekers and hiring companies a direct link to careerbuilder with a custom page tailored to the heat treat market. We're just getting started with this, so give us time! For now feel free to click the logo and see our new Job Center page:
Thanksgiving Day Week on Heat Treat News
(November 20) - Happy (early) Thanksgiving Day to our U.S. readers. This Thursday marks that holiday for US readers (Canadian Thanksgiving Day was the second Monday in October). That means most of our US readers will probably be taking a long weekend and relaxing, eating too much, watching football and, for the brave, starting their holiday shopping.
This week we have some changes here at Heat Treat News. For one we have a new sponsor who will be adding functionality to our site. Another addition will be a photo album of sorts from a good friend to Heat Treat News.
Stay tuned!
Timken Set to Launch Aerospace Center in China
(November 16) - Timken is one of many companies finding success in China these days. Today's announcement covers a substantial investment on Timken's part and will raise their presence in this emerging market to a total of six plants. It's a long release which you can read on the Timken site here. We've included most of it:
The Timken Company (NYSE: TKR) today announced an important investment in its ability to serve the Chinese and global aerospace markets. Timken's new aerospace precision products center, the first investment of its kind by an international company, will initially employ approximately 200 people in aerospace products manufacturing. Across time, it is expected to include sales, engineering support and customer service capabilities for a range of aerospace bearings and other precision products.
Located in the High Technology Development Zone in Chengdu, the capital city of Sichuan province, the new center aligns with China's goal of investing in West China and focusing on key strategic industries for the country. Timken selected Chengdu as the location for its sixth plant in China in part because it is a major Chinese aerospace center with a good technical infrastructure and educated workforce.
"This investment is directly tied to Timken's strategic initiatives to expand our presence in industrial markets in Asia, as well as to build an increasingly diverse portfolio of aerospace precision components and services worldwide," said Michael C. Arnold, president of Timken's Industrial Group. "Timken is proud of its progress in China. The addition of new capabilities and technology to this booming market will help us to serve the aerospace industry in China and around the world."
Initially, more than 200 associates will manufacture ball and cylindrical roller bearings up to 12 inches (30 centimeters) in diameter. The first product shipment from Chengdu is anticipated for late 2007.
"The city of Chengdu is proud to welcome Timken as a new partner in our community and in the rapidly growing Chinese aerospace industry," said Ge Honglin, mayor of Chengdu. "Timken's confidence in our workforce and history of good corporate citizenship, since their arrival in China in 1992, are the ingredients of a strong future relationship with our city."
Timken's social activities in China have included sponsoring cultural exchange with an exhibit at the Beijing World Art Museum, the Special Olympics, which will hold their world games in China in 2007, and ongoing support to the educational charity, Junior Achievement.
Since its entry into China in 1992, The Timken Company has brought its state-of-the-art products and technology as well as innovation to international and local customers. With China headquarters in Shanghai, Timken has an established network of seven sales offices in Shanghai, Beijing, Shenyang, Wuxi, Chengdu, Hong Kong and Taipei. The company has invested in five large-scale manufacturing sites in Wuxi (3), Yantai, and Suzhou, a logistics center and an engineering training center to better serve its Chinese customers.
"This new location in the capital city of Sichuan province builds on our existing 3,500 employees nationwide, and demonstrates our commitment to help our customers here in China to improve their performance by applying Timken's friction management and power transmission knowledge," said James Gresh, president of Timken in China.
Timken has made significant investments over the past year to expand the range of aerospace components and services it provides to original equipment manufacturers and to the aerospace aftermarket. The company today offers a comprehensive line of products and services, known for consistent performance in critical applications and backed by one of the most stringent quality standards in the world. Timken produces aerospace products that are found in aircraft engines, gearboxes, helicopter transmissions, auxiliary power units, landing wheels, airframes and instrumentation.
CHS Asia Ships 4 Mesh Belt Lines
(November 13) - A bit back we wrote about the military coup in Thailand and what impact it might have on the heat treating business in Thailand. Well, while some foreign investments may have slowed, business appears to be good still. CHS-Asia is a rapidly growing supplier of furnaces and spares to the heat treating industry throughout Southeast Asia. Over the last 2-3 years we've seen them grow from a start-up service company to one that competes head-to-head with the world's largest furnace companies.
The latest news is that CHS-Asia just yesterday loaded up nine semi trucks with 4 continuous mesh belt lines and accessories and shipped them off to TRW Chonburi in Thailand.
The furnaces were designed by CHS-Asia's international design team (with engineers from five different countries) and build at CHS-Thailand's new furnace facility. Turkey installation is scheduled to be completed by December 1, 2006.
Here's a shot of the trucks being loaded:
Here's the CHS-Asia furnace team. Principals Randy Simmons and David Pickup are third and fifth from the left front respectively:
Monday Rant Against Those Who Take Advantage of Our Parents
(November 12) - I believe in capitalism. That said, I have to say I think the companies who prey on our elderly are not just shameless, but despicable.
I found out this weekend that some good friends, who are in their late seventies, have been victimized by our credit industry. The wife needed a new hearing aid a while back and they signed up for financing to help pay for it since they're retired and on a fixed income. Now, over two years later and having paid the invoices every month, they actually owe more than the original purchase price. We're talking a $1,500 hearing aid that they've paid over $1,500 for and now owe close to $2,000 on.
Outrageous.
Now I know they probably signed something and legally owe these loan sharks this kind of money, but I don't believe they understood what they were being set up for...uh...I mean sold.
I did some digging and the elderly and their fixed incomes represent BILLIONS of dollars in profit for these types of "finance" companies. Personally I think they are shameless.
Do the world a favor and read the fine print for an elderly friend this week. Maybe make them an interest free term loan too. We owe them so much as it is.
CAN-ENG FURNACES Acquires GASMAC's IP
(November 9) - CAN-ENG FURNACES is a market leader in North America and parts of Europe. They're probably best known for their mesh belt and continuous lines but they do a lot of everything. Today's news is about their purchase of GASMAC's intellectual property. Here's the PR:
CAN-ENG FURNACES LTD., is pleased to announce the acquisition of GASMAC Incorporated’s (Guelph, ON) intellectual property, (including engineering drawings/ records and spare parts) in a transaction completed November 6, 2006.
GASMAC has a rich history, reaching back to the 1920’s, as a designer and manufacturer of industrial furnaces. GASMAC’s industrial thermal processing designs include that of Wayne Forge, The Gas Machinery Company, Heat Engineering and Technology, and Scarborough and Grant. CAN-ENG is proud to include the intellectual property of GASMAC and these firms with that of its own. GASMAC’s main product offerings included Aluminum Stack Melters and Holders, Infra-Red Process Heaters, as well as custom designed Batch and Continuous Heat Treating Furnaces.
CAN-ENG FURNACES has operated continuously from its Niagara Falls location for the past 42 years and supplies industrial thermal processing equipment and services around the globe.
CAN-ENG FURNACES looks forward to providing GASMAC customers with a high level of support for aftermarket service, spare parts, field service and new industrial furnace equipment. The design and experience gained by this acquisition will allow CAN-ENG FURNACES to provide a wider product range to new and existing customers alike.
New Nitrex Turnkey Nitriding System
(November 8) - Canadian-based Nitrex Metal, with their Nitreg® compensation systems, have been the leaders in high-end nitriding and nitrocarburizing for some time. As we understand it their methods are proprietary and difficult, if not impossible, to copy. Today's PR is about a new installation of one of their systems in Germany:
Nitrex Metal Inc. (Montreal, Canada, www.nitrex.com) has installed a turnkey nitriding system at Erbslöh Aluminium GmbH. The system is fully automated and preprogrammed with Nitreg® technology to accurately nitride aluminum extrusion dies. The equipment includes a 31.5" Ø by 43" H (800 mm by 1100 mm) furnace with vacuum purge, a water cooling system, an ammonia station, and an IN-65 effluent neutralizer. Erbslöh decision to move to in-house nitriding, previously outsourced, was fueled by the need for better quality and consistent results of treated dies. The new installation came on stream at the Velbert, Germany plant the third quarter of 2006.
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.
Furnace Controls & Sensors 2007 Conference
(November 7) - 2006 was the first year for this new conference focused on furnace controls and sensors and it was a resounding success. While some of the talks were a bit to "sales-ish," for our tastes, the majority focused on solving control problems and helping users better understand available technology.
For 2007, the conference returns for two days of sessions. It will be held May 1 and 2 in Cleveland, Ohio. For more information click here.
Bodycote Receives Manchester Evening News Award
(November 6) - You probably don't get the Manchester Evening News in your neck of the woods (unless you live in Manchester, UK), but their annual award for most entrepreneurial companies is highly regarded in the UK. Here's Bodycote's press release about their having recently won the award:
Each year the North West’s regional daily newspaper – ‘The Manchester Evening News’ (MEN for short) organises an awards competition to find the most successful entrepreneurial companies in the region. The awards are sponsored by Barclays Bank, Greater Manchester Chamber of Commerce, law firm Hammonds and accountants PricewaterhouseCoopers and this year attracted a record entry.
Bodycote won the premier award in the large business category. “Entrepreneurial skills exhibited throughout Bodycote” was particularly remarked upon, as was our “highly regarded customer service”.
The award ceremony was held on 2nd November at the Midland Hotel in Manchester city centre and over 300 of the regions leading business people attended. In 1904 the hotel was the venue for the historic meeting between the Hon. Charles Rolls and Henry Royce, which resulted in the foundation of the world famous Rolls-Royce marque.
Jon Culshaw, the Dead Ringers star and ace impressionist hosted the evening with his unique style of wit and brought a humorous touch to the event.
We are proud to have been singled out for this award, which is an accolade to all 10,000 Bodycote employees, and well earned by all, as acknowledged by John Hubbard in his speech of thanks, following the presentation.
Major Acquisition News from Bodycote
(November 3) - To be honest, we've been chomping at the bit to put some of this news up for the last couple weeks. As Bodycote is publicly traded, it's critical that big news like this come out in an orderly fashion and they did a great job not confirming the various rumors that have been floating around. While the official release is very long, that's because it covers multiple recent acquisitions. Most of these will not have a big impact this year, but will contribute substantially in the future.
By far the most important bit of news (only because the rest has already come out) is Bodycote's acquisition of Brasimet - an acquisition some three years in the making. Brasimet, for those who don't know, is the company that purchased Lindberg do Brasil back in 1992/1993 when Lindberg USA decided to exit the Brazilian market. Brasimet then took the assets and business of Lindberg do Brasil and closed the company some two years later.
For the last three years Brasimet has been preparing itself for acquisition by selling off or spinning out those portions of the company not related to commercial heat treating. So here's the full (and quite long) Bodycote PR (or read their web site here):
EMBARGOED UNTIL 0700 HOURS 3 NOVEMBER 2006
Bodycote Corporate Developments
Bodycote International plc, the specialist thermal processing and testing services company, is pleased to announce further progress in the implementation of its stated corporate strategy. As we are now late in the year, these acquisitions will not have a significant impact on 2006 sales and profits. The Group has acquired six new businesses: -
• Brasimet, the market leading metallurgical services company with six plants in Brazil
• Consult-us, a County Cork based analytical chemistry and microbiology laboratory
• Prova, a Camberley situated pharmaceutical testing laboratory
• Foodscan, a food analysis and microbiological testing company based in Glasgow
• Norpath, a County Durham food and consumer products testing business
• ISTAS (60% equity stake), Turkey’s largest heat treatment group
These investments advance Bodycote’s strategy of expanding its Thermal Processing strategic business unit (SBU) into emerging economies and increasing the scale of its Testing SBU. The total cash consideration for the six acquisitions is £25.0m, with forecast 2006 sales of £31.8m and net assets of £10.9m. As we are in November, these acquisitions will not have a significant impact on 2006 sales and profits. The multiples paid remain within the previously indicated target range. In addition Bodycote has sold its Espoo, Finland coatings plant, which had sales of £1.1m in 2005.
In 2007 Bodycote will also invest approximately £12m in heat treatment and testing greenfield start-ups in India, Singapore and Mexico to increase its geographical reach and help realise its strategy for growth in emerging economies. This expenditure is in addition to the previously announced investment in Wuxi, China and will be accommodated within previously indicated levels for capital spending by Bodycote in 2007.
Bodycote expands into emerging markets (Brazil, Turkey, India, Singapore, Mexico, China)
Brazil - Brasimet
Bodycote has acquired Brasimet Comercio e Industria S.A., the premier metallurgical services company in Brazil, offering heat treatment, brazing, PVD coatings and testing services from six facilities. This acquisition will expand Bodycote’s network into the major industrial centre for South America. Brazil has a cluster of automotive and aerospace industries, including many of Bodycote’s existing global customers.
Turkey - ISTAS
Bodycote has completed the acquisition of 60% of the equity of ISTAS, Turkey’s leading heat treatment business, which has facilities in Istanbul (2), Izmir, Bursa, Ankara and Adana. ISTAS is ideally placed to service the growing number of engineering manufacturers moving to Turkey and provides Bodycote with a footprint in an important developing market.
India - Pune
Bodycote announces the launch of an initial investment in India comprising a greenfield production facility with heat treatment and metallurgical testing capabilities in Pune, which will be the largest full service commercial heat treatment facility in India.
Bodycote’s rationale for entering the Indian market is principally driven by the existing Western customer portfolio and also by the strong growth of Indian economy which is currently running at over 9% per annum. Bodycote intends to continue its controlled expansion in India by adding five further facilities by 2011 to service the main manufacturing regions.
Singapore – Thermal Spray Coatings and Testing
Bodycote acquired Ceramet Plasma Coatings Limited, a leading supplier of thermal spray coatings, in April 2006. Bodycote is now establishing a facility in Singapore to provide these coatings for critical valves and rotors used in the oil and gas industry. Singapore is the Asian centre for oil rig construction and refurbishment.
In the same facility Bodycote Testing will establish a laboratory to service its global oil and gas client base providing a full scope of metallurgical, forensic, corrosion, fracture mechanics and analytical testing capability.
Mexico – Heat Treatment and Testing
Bodycote is currently establishing a leading-edge technology centre for low pressure carburising (LPC) heat treatment in Silao, Mexico initially to support next generation GM transmission production in central Mexico. This follows on from a successful LPC investment in Livonia, Michigan.
In addition Bodycote Testing has been awarded an outsourcing contract and is establishing a new laboratory to supply FRISA with materials testing services for its aerospace activities in Monterrey, Mexico.
China – Heat Treatment and Testing
Initial production has commenced in the Wuxi facility and is expected to be at sales of £3m in 2008. An increasing number of Bodycote’s global aerospace and automotive customers have expressed interest in services from this facility. Bodycote plans to continue its controlled growth in China by adding five new facilities over the next five years.
In addition the Testing SBU is evaluating various opportunities to establish service capability in China.
Testing – acquisitions provide further scale
Consult-Us
Bodycote has acquired Consult-Us, based in County Cork, Ireland. Consult-Us is an analytical chemistry and microbiology laboratory that provides testing services to a wide range of food and environmental customers throughout Ireland. The acquisition means Bodycote Testing is able to offer its customers localised services over a wider geographic area.
Prova
Bodycote has acquired Prova, a pharmaceutical development laboratory based in Camberley, UK. The acquisition strengthens Bodycote’s offer in the pharmaceutical industry with the addition of pre-formulation, formulation and regulatory services in the areas of licence applications, preparation of drug master files, technical files and quality summaries. Prova also takes Bodycote into the biotechnology market. The addition of regulatory advisory services will provide additional support to the existing Bodycote pharmaceutical client base.
Foodscan
Bodycote has acquired Glasgow based Foodscan Laboratories, which carries out chemical food analysis and microbiological testing for food manufacturers and retailers.
Norpath
Bodycote has acquired Norpath Laboratories, based in County Durham. Norpath is an analytical laboratory that provides research and consultancy services to a wide range of food and consumer products clients throughout the UK and Europe.
These Testing acquisitions contribute to the strategy of expanding Bodycote’s Health Sciences division both in the UK and internationally.
John Hubbard, Chief Executive of Bodycote International said:-
“We are pleased that an additional six companies have been acquired by Bodycote and we extend a warm welcome to all the staff in these businesses. Along with the greenfield start-ups we have made a significant advance in our strategy to enter emerging markets with both Thermal Processing and Testing and to build the scale of our Testing business.
Finally, we were delighted to be named winners of the 2006 Manchester Evening News, Business of the Year Award at a ceremony yesterday evening."
Process-Electronic Upgrades Sandvik, Lahti, Finland
(November 2) - Process-Electronic is part of the Nitrex Group and the top heat treat controls supplier in Europe. Here's their latest PR:
Process-Electronic GmbH completed this past summer the installation and configuration of an automation package at Sandvik carburizing operations in Lahti, Finland. The Protherm 9000 automates material handling, work sequencing, and real-time data collection, and also includes lights-out monitoring / control capabilities. The order was one part of a project to upgrade the company's carburizing operations. The other was to outfit the newest carburizing furnace with a Protherm 500 controller for real-time process control and integrate it to the Protherm 9000 at the plant.
Bodycote China Opening Celebrations Scheduled for Feb '07
(November 1) - We recently heard that, in addition to adding a continuous line from France to its batch lines in China, Bodycote has planned to hold its opening celebrations in February of next year. As with all ventures in China, Bodycote's is moving slowly, but the consensus amongst Chinese heat treaters is that Bodycote will be formidable force very quickly.
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