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AO Smith moves into China's residential filtration market
INDEX/NEWS
Filtration Company Index AAF International Ahlstrom Alfa Laval Amiad Amploi Amplio Filtration Andritz AO Smith PS Aplicor Asahi Kasei Basin Water Biorem Bord na Mona BWT Calgon Carbon Camfil Farr Cantel Medical Ceco Environmental Christ Water Clarcor Clorox Crane Cummins Daikin Industries Dantherm Donaldson Dow Chemical Duoyuan Global Water DuPont Dürr Eaton Entegris Envirogen Technologies ESCO Technologies Fiberweb Filtran Flanders FLSmidth Freudenberg Gamma Holding GE GEA GLV GUD Holdings H2O Innovation Hamworthy Hitachi Plant Technologies HLTH Hyflux inge ItN ITT Kaydon Koch Membrane Systems Kubota Larox Layne Christensen Lydall 3M Mann+Hummel Memstar Met-Pro Metso MFRI Millipore Mott Nippon Muki Nitto Denko OYL Industries Pall Parker Hannifin Pentair Pirelli PMFG Polypore Porex Porvair ProSep Puradyn RWB Waterservices Sartorius Seccua Seprotech Severn Trent Services Seychelle Environmental Siemens Siemens Water Technologies Sinomem SPX Strauss Group Suez Environnement Sulzer Tana Industries Tianlong Holding Tomoe Engineering Toray UltraViolet Devices United Envirotech UOP Watts Water
2
Filtration Industry Analyst
6 14,15 14,15 4,15 2 2 14,15 2 5 15 2 5,13 12 6,14 5,13 3 15 15 1,6,12,14 4,15 4 15 15 6 14,15 9,15 3.16 15 15 14 15 15 2 15 15 1 13,15 15 3 15 15 4,14,15 1,9,13,15 15 3,15 5,14 14 4 13,15 14 14,15 4,15 15 14 7,14 6,10,15 5 10,15 15 3,8 4,15 11,13,15 14 11,15 15 14 6 15 6 4,14,15 14,15 15 16 15 15 4 15 3,15 15 3 15 5 6 5 15 14,15 13 5,15 1,15 6 12 14 6 2 15 13,15 12 13,15 4 15
Amplio forms AO Smith moves into Envirogen Technologies China’s residential from Basin Water filtration market assets
T
he UK’s Amplio Group has completed its acquisition of substantially all of the assets of Basin Water Inc for US$2 million (see Filtration Industry Analyst, August 2009). The sale to Amplio Filtration Holdings Inc and Envirogen Technologies Inc, subsidiaries of Amplio Group, was completed under Section 363 of Chapter 11 of the US Bankruptcy Code. Amplio has now formed Envirogen Technologies Inc from the acquired Basin Water assets. The new Envirogen Technologies will offer a broad but targeted range of technologies, supported by operating service options for a number of environmental treatment applications, including potable water treatment, groundwater remediation, process water treatment, wastewater treatment and odour control. Envirogen Technologies’ business model focuses on “lifecycle performance”, providing guaranteed, payfor-performance, long-term contracts at predictable costs. Envirogen Technologies is headquartered in Kingwood, Texas, with regional offices in Southern California, Illinois, New Jersey and Tennessee and with Michael Stark as president & chief executive officer (CEO). “The technologies acquired, together with the experienced team at Envirogen Technologies, provide an excellent opportunity to develop Amplio’s filtration business initially in North America and then globally. We expect to achieve revenues of US$25 million and US$2 million EBITDA for the 2010 financial year and Amplio is currently targeting potential acquisitions,” said Andrea Davi, an Amplio partner. Riccardo Segat, Amplio CEO and founder, said: “Amplio is committed to developing our water and solar businesses where we are looking to build significant platforms that will require additional capital during 2010. Despite the current economic turmoil, these sectors are more resilient and the possibility for consolidation is very attractive for an experienced operator like Amplio.”
For further information, visit www.ampliopartners.com
A
O Smith Corp is to purchase a majority interest in the water treatment business of Hong Kongbased Tianlong Holding Co Ltd. A newly formed company, AO Smith (Shanghai) Water Treatment Products Co Ltd, will supply reverse osmosis (RO) water filtration products to China’s residential and commercial markets and to export markets throughout the world. AO Smith will pay approximately US$77 million for an 80% share in the new company, which will be a wholly-owned foreign enterprise under Chinese law. The investment will be funded out of AO Smith’s existing cash flow and credit facilities, and the company is expected to earn in excess of its cost of capital in the first full year under AO Smith’s ownership. Within three years, AO Smith expects to have a business that will generate over US$100 million in sales with double-digit operating profit. The transaction is expected to close in the fourth quarter of 2009. “We are excited about investing in the leading residential and commercial water purification company in China,” said Paul Jones, AO Smith chairman and CEO. “Entering the water treatment industry has been an important strategic initiative for AO Smith, and, in Tianlong, we have an experienced and well regarded partner who understands the market.” “One of the biggest issues facing much of the world is securing clean drinking water, and Tianlong has experienced significant growth over the last several years meeting this demand. We expect customer demand will continue to grow in the future. We also believe water treatment and filtration complement our existing water heating business, particularly in Asia,” added Jones. Tianlong, with operations in China, manufactures reverse osmosis appliances, reverse osmosis elements, water softeners, industrial and commercial water treatment equipment, filters and components. The company markets its products under multiple brand names in China, including Chanitex, Pucakon, Datangwi, Lintangniao, Zhichenhe and Yongxianglai, and exports to more than 30 countries worldwide. AO Smith plans to introduce a line of water treatment products in China to be sold under the AO Smith brand name. “This
October 2009
NEWS/IN BRIEF expansion will enable us to take advantage of the strength of the well-known AO Smith brand as well as our extensive distribution network,” said Jones. “Many of our major customers in China want us to expand our product line, and water treatment helps to fill the need. We also expect sales of consumables to increase as the installed base of product grows over time.” With 2008 sales of US$2.3 billion, AO Smith is one of the largest manufacturers of electric motors for residential and commercial applications in North America and is one of the world’s leading manufacturers of residential and commercial water heating equipment. For further information, visit www.aosmith.com
American Water goes Dutch on Clean Operator desalination project
A
merican Water Works Co Inc is partnering with Netherlandsbased organizations Vitens, RWB Waterservices, University of Twente and WE Consult to launch a project on innovation in desalination technology. The “Clean Operator” project aims to reduce the costs, environmental impact and carbon footprint of desalination. Under the Clean Operator project, the partners will develop new technologies for seawater desalination and the treatment of surface water and wastewater using reverse osmosis (RO) membranes. With a budget of E1.5 million–2 million for 2009–2011, the Clean Operator project will deliver operational technology for use in existing and new membrane plants. The fundamental research will be performed by the University of Twente, assisted by Vitens, the largest water supply company in the Netherlands, and WE Consult, a Dutch water technology consultancy firm. RWB Waterservices, a Dutch supplier of water treatment equipment, and WE Consult will focus on the development of the new technology, while Vitens and American Water will concentrate on applying the technology in their water treatment plants. “Many desalination plants suffer from membrane fouling, and in some cases the
October 2009
membranes need frequent chemical cleaning, which increases operational costs and the emission of waste chemicals and carbon dioxide to the environment,” said Dr Mark LeChevallier, director of Innovation and Environmental Stewardship at American Water. “The goal of the Clean Operator project is to reduce operational costs through a sustainable operation resulting in cleaner membranes.” This project is the first official partnership in American Water’s new Innovation Development Process, an initiative that leverages the company’s expertise to develop, test and produce new technologies for industrial use. It combines American Water’s research and development, technical expertise, and infrastructure assets with innovations from within the company and from business partners to create greater efficiencies in the areas of water reuse, desalination, wastewater operations and bio-energy. For further information, visit www.amwater.com, www. rwbwaterservices.nl, http://mtg.tnw.utwente.nl, www. vitens.nl and www.we-consult.info
Mann+Hummel expands into ceramic diesel particulate filters
M
ann+Hummel has entered the market for ceramic diesel particulate filters. A pilot installation in Ludwigsburg, Germany will start producing ceramic diesel particulate filters at the end of 2009, manufacturing around 60 000 filters per year, with large-scale production planned for 2012. The new Mann+Hummel filter contains aluminium titanate, an aluminium and titanium ceramic oxide compound, instead of the currently used cordierite and silicon carbide. Mann+Hummel says that aluminium titanate has a higher temperature resistance than cordierite and does not expand as significantly as silicon carbide, making it possible to produce a temperature-resistant one-piece filter. Mann+Hummel is also employing a novel concept to produce its own diesel particulate filter. During production, Mann+Hummel will use CCP (Ceramic Coated Paper) technology, where the paper carrier medium is immersed in a ceramic suspension which
In Brief UÊ -Üi`Ã Ê >ÀÊ vÌÀ>ÌÊ Ã«iV>ÃÌÊ Camfil Farr has published its first corporate sustainability report. The report describes Camfil Farr’s sustainability actions, goals and performance indicators. Camfil Farr’s 2008 Sustainability Report can de downloaded at www.camfilfarr.com/campaign/ UÊ H2O Innovation Inc and ProSep Inc have both won the Deloitte Technology Green 15 Award. The Award recognizes 15 Canadian companies that are leading the way in green technology. Candidates must be headquartered in Canada and devote a significant portion of their operating revenues to creating proprietary technology or intellectual property. www.h2oinnovation.com, www. prosepinc.com and http://en.fast50.ca/ winners/technology/g152009 UÊ Freudenberg has set up Freudenberg Fuel Cell Component Technologies to serve the growing fuel cell market as a component supplier. “Freudenberg nonwovens are used in fuel cell technology, as are new sealing concepts, filters and humidifiers from our company. We think that the fuel cell has a bright future - not just in the mobility sector - and we aim to play a leading role as a component manufacturer,” said Dr Martin Stark, a member of Freudenberg management board. www.freudenberg.com UÊ Dow is to market BioPetroClean’s BPC Water Treatment system to refinery and produced-water markets exclusively in various regions. “The selection of the BPC solution by a worldwide leader such as Dow is a great endorsement from a company that can help us take advantage of the worldwide opportunity and enable massive deployment of our new and exciting technology,” said David Amir, CEO of BioPetroClean. “Dow BPC Water Treatment technology has immense potential - for communities, the oil and gas industry, the environment and our business,” said Janet Giesselman, president and general manager of Dow Oil & Gas. The two companies are working on a first field application of the Dow-BPC Water Treatment system. BioPetroClean’s Automated Chemostat Treatment (BPCACT) consists of three elements: a bacteria cocktail customized for specific water types, a control unit, and a basin or tank that serves as the reactor. www.biopetroclean.com
Filtration Industry Analyst
3
Filtration Company Index AAF International Ahlstrom Alfa Laval Amiad Amploi Amplio Filtration Andritz AO Smith PS Aplicor Asahi Kasei Basin Water Biorem Bord na Mona BWT Calgon Carbon Camfil Farr Cantel Medical Ceco Environmental Christ Water Clarcor Clorox Crane Cummins Daikin Industries Dantherm Donaldson Dow Chemical Duoyuan Global Water DuPont Dürr Eaton Entegris Envirogen Technologies ESCO Technologies Fiberweb Filtran Flanders FLSmidth Freudenberg Gamma Holding GE GEA GLV GUD Holdings H2O Innovation Hamworthy Hitachi Plant Technologies HLTH Hyflux inge ItN ITT Kaydon Koch Membrane Systems Kubota Larox Layne Christensen Lydall 3M Mann+Hummel Memstar Met-Pro Metso MFRI Millipore Mott Nippon Muki Nitto Denko OYL Industries Pall Parker Hannifin Pentair Pirelli PMFG Polypore Porex Porvair ProSep Puradyn RWB Waterservices Sartorius Seccua Seprotech Severn Trent Services Seychelle Environmental Siemens Siemens Water Technologies Sinomem SPX Strauss Group Suez Environnement Sulzer Tana Industries Tianlong Holding Tomoe Engineering Toray UltraViolet Devices United Envirotech UOP Watts Water
2
Filtration Industry Analyst
6 14,15 14,15 4,15 2 2 14,15 2 5 15 2 5,13 12 6,14 5,13 3 15 15 1,6,12,14 4,15 4 15 15 6 14,15 9,15 3.16 15 15 14 15 15 2 15 15 1 13,15 15 3 15 15 4,14,15 1,9,13,15 15 3,15 5,14 14 4 13,15 14 14,15 4,15 15 14 7,14 6,10,15 5 10,15 15 3,8 4,15 11,13,15 14 11,15 15 14 6 15 6 4,14,15 14,15 15 16 15 15 4 15 3,15 15 3 15 5 6 5 15 14,15 13 5,15 1,15 6 12 14 6 2 15 13,15 12 13,15 4 15
Amplio forms AO Smith moves into Envirogen Technologies China’s residential from Basin Water filtration market assets
T
he UK’s Amplio Group has completed its acquisition of substantially all of the assets of Basin Water Inc for US$2 million (see Filtration Industry Analyst, August 2009). The sale to Amplio Filtration Holdings Inc and Envirogen Technologies Inc, subsidiaries of Amplio Group, was completed under Section 363 of Chapter 11 of the US Bankruptcy Code. Amplio has now formed Envirogen Technologies Inc from the acquired Basin Water assets. The new Envirogen Technologies will offer a broad but targeted range of technologies, supported by operating service options for a number of environmental treatment applications, including potable water treatment, groundwater remediation, process water treatment, wastewater treatment and odour control. Envirogen Technologies’ business model focuses on “lifecycle performance”, providing guaranteed, payfor-performance, long-term contracts at predictable costs. Envirogen Technologies is headquartered in Kingwood, Texas, with regional offices in Southern California, Illinois, New Jersey and Tennessee and with Michael Stark as president & chief executive officer (CEO). “The technologies acquired, together with the experienced team at Envirogen Technologies, provide an excellent opportunity to develop Amplio’s filtration business initially in North America and then globally. We expect to achieve revenues of US$25 million and US$2 million EBITDA for the 2010 financial year and Amplio is currently targeting potential acquisitions,” said Andrea Davi, an Amplio partner. Riccardo Segat, Amplio CEO and founder, said: “Amplio is committed to developing our water and solar businesses where we are looking to build significant platforms that will require additional capital during 2010. Despite the current economic turmoil, these sectors are more resilient and the possibility for consolidation is very attractive for an experienced operator like Amplio.”
For further information, visit www.ampliopartners.com
A
O Smith Corp is to purchase a majority interest in the water treatment business of Hong Kongbased Tianlong Holding Co Ltd. A newly formed company, AO Smith (Shanghai) Water Treatment Products Co Ltd, will supply reverse osmosis (RO) water filtration products to China’s residential and commercial markets and to export markets throughout the world. AO Smith will pay approximately US$77 million for an 80% share in the new company, which will be a wholly-owned foreign enterprise under Chinese law. The investment will be funded out of AO Smith’s existing cash flow and credit facilities, and the company is expected to earn in excess of its cost of capital in the first full year under AO Smith’s ownership. Within three years, AO Smith expects to have a business that will generate over US$100 million in sales with double-digit operating profit. The transaction is expected to close in the fourth quarter of 2009. “We are excited about investing in the leading residential and commercial water purification company in China,” said Paul Jones, AO Smith chairman and CEO. “Entering the water treatment industry has been an important strategic initiative for AO Smith, and, in Tianlong, we have an experienced and well regarded partner who understands the market.” “One of the biggest issues facing much of the world is securing clean drinking water, and Tianlong has experienced significant growth over the last several years meeting this demand. We expect customer demand will continue to grow in the future. We also believe water treatment and filtration complement our existing water heating business, particularly in Asia,” added Jones. Tianlong, with operations in China, manufactures reverse osmosis appliances, reverse osmosis elements, water softeners, industrial and commercial water treatment equipment, filters and components. The company markets its products under multiple brand names in China, including Chanitex, Pucakon, Datangwi, Lintangniao, Zhichenhe and Yongxianglai, and exports to more than 30 countries worldwide. AO Smith plans to introduce a line of water treatment products in China to be sold under the AO Smith brand name. “This
October 2009
NEWS/IN BRIEF expansion will enable us to take advantage of the strength of the well-known AO Smith brand as well as our extensive distribution network,” said Jones. “Many of our major customers in China want us to expand our product line, and water treatment helps to fill the need. We also expect sales of consumables to increase as the installed base of product grows over time.” With 2008 sales of US$2.3 billion, AO Smith is one of the largest manufacturers of electric motors for residential and commercial applications in North America and is one of the world’s leading manufacturers of residential and commercial water heating equipment. For further information, visit www.aosmith.com
American Water goes Dutch on Clean Operator desalination project
A
merican Water Works Co Inc is partnering with Netherlandsbased organizations Vitens, RWB Waterservices, University of Twente and WE Consult to launch a project on innovation in desalination technology. The “Clean Operator” project aims to reduce the costs, environmental impact and carbon footprint of desalination. Under the Clean Operator project, the partners will develop new technologies for seawater desalination and the treatment of surface water and wastewater using reverse osmosis (RO) membranes. With a budget of E1.5 million–2 million for 2009–2011, the Clean Operator project will deliver operational technology for use in existing and new membrane plants. The fundamental research will be performed by the University of Twente, assisted by Vitens, the largest water supply company in the Netherlands, and WE Consult, a Dutch water technology consultancy firm. RWB Waterservices, a Dutch supplier of water treatment equipment, and WE Consult will focus on the development of the new technology, while Vitens and American Water will concentrate on applying the technology in their water treatment plants. “Many desalination plants suffer from membrane fouling, and in some cases the
October 2009
membranes need frequent chemical cleaning, which increases operational costs and the emission of waste chemicals and carbon dioxide to the environment,” said Dr Mark LeChevallier, director of Innovation and Environmental Stewardship at American Water. “The goal of the Clean Operator project is to reduce operational costs through a sustainable operation resulting in cleaner membranes.” This project is the first official partnership in American Water’s new Innovation Development Process, an initiative that leverages the company’s expertise to develop, test and produce new technologies for industrial use. It combines American Water’s research and development, technical expertise, and infrastructure assets with innovations from within the company and from business partners to create greater efficiencies in the areas of water reuse, desalination, wastewater operations and bio-energy. For further information, visit www.amwater.com, www. rwbwaterservices.nl, http://mtg.tnw.utwente.nl, www. vitens.nl and www.we-consult.info
Mann+Hummel expands into ceramic diesel particulate filters
M
ann+Hummel has entered the market for ceramic diesel particulate filters. A pilot installation in Ludwigsburg, Germany will start producing ceramic diesel particulate filters at the end of 2009, manufacturing around 60 000 filters per year, with large-scale production planned for 2012. The new Mann+Hummel filter contains aluminium titanate, an aluminium and titanium ceramic oxide compound, instead of the currently used cordierite and silicon carbide. Mann+Hummel says that aluminium titanate has a higher temperature resistance than cordierite and does not expand as significantly as silicon carbide, making it possible to produce a temperature-resistant one-piece filter. Mann+Hummel is also employing a novel concept to produce its own diesel particulate filter. During production, Mann+Hummel will use CCP (Ceramic Coated Paper) technology, where the paper carrier medium is immersed in a ceramic suspension which
In Brief UÊ -Üi`Ã Ê >ÀÊ vÌÀ>ÌÊ Ã«iV>ÃÌÊ Camfil Farr has published its first corporate sustainability report. The report describes Camfil Farr’s sustainability actions, goals and performance indicators. Camfil Farr’s 2008 Sustainability Report can de downloaded at www.camfilfarr.com/campaign/ UÊ H2O Innovation Inc and ProSep Inc have both won the Deloitte Technology Green 15 Award. The Award recognizes 15 Canadian companies that are leading the way in green technology. Candidates must be headquartered in Canada and devote a significant portion of their operating revenues to creating proprietary technology or intellectual property. www.h2oinnovation.com, www. prosepinc.com and http://en.fast50.ca/ winners/technology/g152009 UÊ Freudenberg has set up Freudenberg Fuel Cell Component Technologies to serve the growing fuel cell market as a component supplier. “Freudenberg nonwovens are used in fuel cell technology, as are new sealing concepts, filters and humidifiers from our company. We think that the fuel cell has a bright future - not just in the mobility sector - and we aim to play a leading role as a component manufacturer,” said Dr Martin Stark, a member of Freudenberg management board. www.freudenberg.com UÊ Dow is to market BioPetroClean’s BPC Water Treatment system to refinery and produced-water markets exclusively in various regions. “The selection of the BPC solution by a worldwide leader such as Dow is a great endorsement from a company that can help us take advantage of the worldwide opportunity and enable massive deployment of our new and exciting technology,” said David Amir, CEO of BioPetroClean. “Dow BPC Water Treatment technology has immense potential - for communities, the oil and gas industry, the environment and our business,” said Janet Giesselman, president and general manager of Dow Oil & Gas. The two companies are working on a first field application of the Dow-BPC Water Treatment system. BioPetroClean’s Automated Chemostat Treatment (BPCACT) consists of three elements: a bacteria cocktail customized for specific water types, a control unit, and a basin or tank that serves as the reactor. www.biopetroclean.com
Filtration Industry Analyst
3