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FLOWSERVE FORMS ALLIANCE AGREEMENT WITH DSM
TYCO OUTLINES NEAR-TERM PRIORITIES Following the sudden resignation of Tyco chairman and CEO Dennis Kozlowski (see People, page 10), the company’s new leadership has provided an update on nearterm priorities. John Fort, lead director, who is in charge of the company’s business operations, said Tyco continues to be a fundamentally strong company, with solid finances, hard assets and competitive businesses that are well positioned for future growth. “We have real businesses, real earnings and real cash flow,” said Fort. Priorities include completing an initial public offering for CIT as expeditiously as possible, finding a new chief executive officer, focusing on the organic growth of existing businesses and actively reviewing Tyco’s corporate cost structure. Tyco recently announced plans to consolidate its headquarters facilities in Exeter, New Hampshire, New York City and Europe, and reduce corporate staffing by eliminating non-essential corporate functions. These actions are expected to result in a reduction of approximately 115 corporate staff positions and in US$125 million of savings annually.
CORPORATE CHANGES AT WILO-SALMSON In order to create a more efficient management structure, Wilo-Salmson AG, the Franco-German pump manufacturer based in Dortmund, Germany, is to integrate its strategic holding with Wilo GmbH to form Wilo AG. According to a report in the Frankfurter Allgemeine Zeitung, the company will remain in family hands.
Pump Industry Analyst
For 2001, Wilo-Salmson saw group turnover reach 535.8 million, well up on the 432.3 million reported in 2000, reflecting the newly consolidated business of South Korea’s LG Pumps. The WiloSalmson group, which includes France’s Pompes Salmson and WSC, is also planning further international expansion. Asia now accounts for 17% of group turnover, with Korea currently holding 15%.
HI AND SWPA WORK TOGETHER ON SUBMERSIBLE PUMP STANDARD The Hydraulic Institute (HI) has published a new American National Standard for Submersible Pump Tests (ANSI/HI 11.6-2001), addressing a long-standing challenge in the wastewater pump industry for the development and acceptance of a test standard written specifically for submersible pumps. Recognizing that its members manufacture the majority of submersible wastewater pumps in the US and that most of their companies are also HI members, the Submersible Wastewater Pumps Association (SWPA) took the lead in developing the new test standard, which was then circulated to HI and approved by ANSI. SWPA established a dedicated Test Standards Subcommittee, which worked for more than three years to develop this test standard, based principally on the Centrifugal Pump Test Standard (ANSI/HI 1.6-2000). Similarly, HI organized a Submersible Test Standard Committee that addressed the review of this document, finalizing the standard through the HI/ANSI approval process The 46-page standard applies to the testing of centrifugal submersible pumps that are driven by induction motors. It is limited to close-
coupled impeller pump/motor units, designed to operate submerged in liquid. Submersible pumps operating in either a wet-pit or dry-pit environment are included. Meanwhile HI, under the approval of ANSI, is looking for qualified participants for the review and approval of updated pump standards for NPSH Margin, Allowable Operating Region, Pump Vibration, and Pump Intake Design. Individuals and organizations directly and materially affected by these standards and interested in reviewing the drafts are invited to contact HI, who will assemble a canvass list of all interested parties such as pump users and specifiers, producers, standards developers, government agencies and general interest groups. The scope of the standards update is limited to centrifugal and vertical pumps. It includes types and nomenclature, definitions, design and application, installation, operation and maintenance, and testing. The standards updates are expected to be completed and published by early 2004.
FLOWSERVE FORMS ALLIANCE AGREEMENT WITH DSM Flowserve Pump Division is to supply industry-standard single-stage, sealed, overhung centrifugal pumps and related spare parts and services to DSM Industrial Services BV, a service organization for the DSM Group. The non-exclusive agreement highlights Flowserve as a preferred supplier of general chemical pumps. DSM’s pump requirements currently run at 400–500 units annually, 90% of which are non-API chemical pumps. Flowserve says DSM expects to expand the contract soon to include additional products.
IN BRIEF • Smiths Group has completed the sale of its marine seals business (formerly John Crane-Lips) to Wärtsilä Corp of Finland, for £215 million. • Layne Christensen Co has filed a registration statement with the Securities and Exchange Commission relating to the resale by certain stockholders of up to 1 686 000 shares. The registration statement is a shelf registration which, once declared effective, will permit the selling stockholders to sell the stock in market transactions at such time or times as they deem appropriate. The timing of the offering of the shares has not been determined. Layne Christensen will not receive any of the proceeds from these sales. • German sealing specialist Burgmann has set up a new subsidiary, Burgmann Production Center Americas SA De CV, in Santiago de Querètero, Mexico with an investment of US$1.2 million during the first year. The offices and production facilities have state-of-theat CNC lathes and machining centres and are housed in a rented building. The new company will focus on the manufacture of the ANSI seal product line that is tailored to the specific installation dimensions of ANSI pumps. • Goulds Pumps and its employees have been recognized by the United Way of New York State for its dedication to the local Seneca County community. • Allen Gwynnes Pumps, now part of the MMC group, is once again trading under its original name after a 25-year absence. The company is operating from a new head office in Middlesborough, UK.
11
NEWS/IN BRIEF
July 2002
CORPORATE CHANGES AT WILO-SALMSON In order to create a more efficient management structure, Wilo-Salmson AG, the Franco-German pump manufacturer based in Dortmund, Germany, is to integrate its strategic holding with Wilo GmbH to form Wilo AG. According to a report in the Frankfurter Allgemeine Zeitung, the company will remain in family hands.
Pump Industry Analyst
For 2001, Wilo-Salmson saw group turnover reach 535.8 million, well up on the 432.3 million reported in 2000, reflecting the newly consolidated business of South Korea’s LG Pumps. The WiloSalmson group, which includes France’s Pompes Salmson and WSC, is also planning further international expansion. Asia now accounts for 17% of group turnover, with Korea currently holding 15%.
HI AND SWPA WORK TOGETHER ON SUBMERSIBLE PUMP STANDARD The Hydraulic Institute (HI) has published a new American National Standard for Submersible Pump Tests (ANSI/HI 11.6-2001), addressing a long-standing challenge in the wastewater pump industry for the development and acceptance of a test standard written specifically for submersible pumps. Recognizing that its members manufacture the majority of submersible wastewater pumps in the US and that most of their companies are also HI members, the Submersible Wastewater Pumps Association (SWPA) took the lead in developing the new test standard, which was then circulated to HI and approved by ANSI. SWPA established a dedicated Test Standards Subcommittee, which worked for more than three years to develop this test standard, based principally on the Centrifugal Pump Test Standard (ANSI/HI 1.6-2000). Similarly, HI organized a Submersible Test Standard Committee that addressed the review of this document, finalizing the standard through the HI/ANSI approval process The 46-page standard applies to the testing of centrifugal submersible pumps that are driven by induction motors. It is limited to close-
coupled impeller pump/motor units, designed to operate submerged in liquid. Submersible pumps operating in either a wet-pit or dry-pit environment are included. Meanwhile HI, under the approval of ANSI, is looking for qualified participants for the review and approval of updated pump standards for NPSH Margin, Allowable Operating Region, Pump Vibration, and Pump Intake Design. Individuals and organizations directly and materially affected by these standards and interested in reviewing the drafts are invited to contact HI, who will assemble a canvass list of all interested parties such as pump users and specifiers, producers, standards developers, government agencies and general interest groups. The scope of the standards update is limited to centrifugal and vertical pumps. It includes types and nomenclature, definitions, design and application, installation, operation and maintenance, and testing. The standards updates are expected to be completed and published by early 2004.
FLOWSERVE FORMS ALLIANCE AGREEMENT WITH DSM Flowserve Pump Division is to supply industry-standard single-stage, sealed, overhung centrifugal pumps and related spare parts and services to DSM Industrial Services BV, a service organization for the DSM Group. The non-exclusive agreement highlights Flowserve as a preferred supplier of general chemical pumps. DSM’s pump requirements currently run at 400–500 units annually, 90% of which are non-API chemical pumps. Flowserve says DSM expects to expand the contract soon to include additional products.
IN BRIEF • Smiths Group has completed the sale of its marine seals business (formerly John Crane-Lips) to Wärtsilä Corp of Finland, for £215 million. • Layne Christensen Co has filed a registration statement with the Securities and Exchange Commission relating to the resale by certain stockholders of up to 1 686 000 shares. The registration statement is a shelf registration which, once declared effective, will permit the selling stockholders to sell the stock in market transactions at such time or times as they deem appropriate. The timing of the offering of the shares has not been determined. Layne Christensen will not receive any of the proceeds from these sales. • German sealing specialist Burgmann has set up a new subsidiary, Burgmann Production Center Americas SA De CV, in Santiago de Querètero, Mexico with an investment of US$1.2 million during the first year. The offices and production facilities have state-of-theat CNC lathes and machining centres and are housed in a rented building. The new company will focus on the manufacture of the ANSI seal product line that is tailored to the specific installation dimensions of ANSI pumps. • Goulds Pumps and its employees have been recognized by the United Way of New York State for its dedication to the local Seneca County community. • Allen Gwynnes Pumps, now part of the MMC group, is once again trading under its original name after a 25-year absence. The company is operating from a new head office in Middlesborough, UK.
11
NEWS/IN BRIEF
July 2002