ARC study states that new projects in heavy process industries, power generation contributed to overall market growth

In the newest version of ARC Advisory Group’s “Distributed Control Systems Worldwide Outlook,” study, ABB retained its leading worldwide market position in this core automation market. According to the study, the DCS (distributed control system) market in 2010 rebounded from 2009; the overall market for DCS (distributed control system) increased by 3.3 percent, in part due to an increase of new projects in the heavy process industries.

ARC forecasts that market growth, while improved compared with 2009, will not reach peak 2008 levels until next year, and then will resume normal slow but steady growth. The increase in new projects in the heavy process industries such as oil & gas and petrochemical, as well as a resurgence in power generation projects, helped to drive global demand for DCS in 2010.

Many of the larger projects that contributed to 2010 growth were booked throughout 2009. ABB booked a number of large process industry and power generation orders, which included major greenfield projects as well as system upgrades and expansions for existing installations.

“Innovation, quality products, extensive industry knowledge and application expertise has enabled ABB to establish a large and loyal customer base,” said Barry Young, Principal Analyst at ARC and author of the report. “ABB brings together a product, system and service capability that allow them to deliver complete automation and production solutions across a broad range of industries.”

According to the study, ABB was also the regional market share leader for Latin America, Europe/Mid East/Africa (EMEA), and the worldwide leader in key global verticals including Upstream Oil & Gas, Pulp and Paper, Mining and Metals, and Cement and Glass.

The report also notes that the DCS business has continued to be primarily a services business over the past few years, with combined project, engineering and operational services accounting for more than half of total revenues. In particular, the Main Automation Contractor (MAC) approach, in which the automation vendor manages the overall project and includes a strong project execution and services component, continues to grow stronger and expand in scope.

“ABB’s deep process industry knowledge, extensive global and local resources, and world-class services organization provide the project execution capabilities needed to successfully manage complex projects as the Main Automation Contractor,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “In addition, we offer our customers a diverse portfolio of DCS solutions to help any process perform better, from the smallest operation to large integrated operations.”

ABB’s portfolio of DCS includes its flagship System 800xA Extended Automation platform, Symphony Plus control system, Freelance process control system for small to medium process applications, as well as its prior generation systems. All ABB control systems offer a secure evolution path forward to next generation technologies to protect and enhance the control system investment over its lifetime.

Additional information on the DCS Worldwide Outlook, as well as other studies on the global automation market, is available at www.arcweb.com

Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. ARC analysts have the expert industry knowledge and first-hand experience to help clients find the best answer to complex business issues. ARC focuses on simple yet critical goals: improving clients’ return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value.

Cellier Activity of ABB France, Process Automation Division, received the order from Clairefontaine for the supply of the feeding station of the film press to be installed on the PM5 in Etival, France. This line will be used for the production of white and coloured papers.

Cellier Activity is in charge of the process and automation engineering, as well as the procurement, the site supervision and the start-up assistance. The feeding station includes two in-line self-cleaning pressure filters, type Filtercel™ LHP. It enables the production of high added-value paper whilst reducing variable costs. The Filtercel™ LHP is designed for the treatment of high-requirement and varied preparations. The optimal filtration quality achieved significantly reduces the number of paper breaks on the paper machine. The Filtercel™ LHP is automatically cleaned during a high pressure cleaning cycle without any intervention from the operator, nor dismantling works. Not only does this mean that it remains available for the production but also it results in important operating and maintenance cost savings.

The start-up successfully took place at the beginning of September 2011.

In July this year, ABB agreed to acquire Lorentzen & Wettre from ASSA ABLOY AB (publ). After customary regulatory approvals, the deal is now approved and Lorentzen & Wettre is since Friday 30 September 2011 officially a part of ABB.

It is with great confidence we go into this new and exciting time for Lorentzen & Wettre. During Lorentzen & Wettre’s 116-year history we have had different owners, and at a glance in the rear-view mirror we can see that each owner, in its own way, has helped to develop the company. Summing up – every change has led to improvements.

ABB is the first owner that works within the same industry as Lorentzen & Wettre. With the mutual knowledge, we definitely will develop into something new and unique. With ABB as owner we have the possibility to realize more projects. Our products excellently complement each other, and together we will be able to offer our customers within the pulp and paper industry more complete solutions.

Reliable, efficient automation and power solutions for JK Paper production expansion 

ABB, the leading power and automation technology group, has won an order worth more than $15 million to supply integrated automation and power equipment and related engineering and commissioning services to JK Paper Ltd for its expansion project. The Company is a major player in the Indian Paper industry and is the largest producer of Branded Copier papers in India.

The order is for capacity enhancement for one of its units, JK Paper Mills. Located in Rayagada in the state of Orissa, southeast India, this mill annually produces 125,000 tons of branded printing, writing and copier paper. The mill expansion and modernization project will more than double its production capacity. It will add a new paper machine with a capacity of 165,000 tons per year, a pulp mill that will produce 215,000 tons of wood pulp per year, and a 55 MW power plant. This expansion project is one of the largest in the Indian Paper industry involving close to USD $400 million

ABB’s delivery for the mill will help to improve its overall production efficiency and capacity. While maximizing energy efficiency and ensuring a reliable source of power, it will provide further impetus to the Company’s resource conservation efforts in energy and water.

“Our ability to deliver a complete mill solution, with leading edge automation and power technology and industry standard equipment, and related pulp and paper industry expertise will help this project to be implemented and operated successfully from design to start-up," said Veli-Matti Reinikkala, head of ABB’s Process Automation division.

ABB will deliver energy efficient drive systems for the new paper machine, standalone drives and motors, and intelligent motor control centers (MCCs). The scope of supply also includes electrical infrastructure equipment such as transformers, transmission lines, other power equipment, and power management system for the pulp mill & paper machine. ABB’s flagship automation System 800xA will control the new pulp mill and provide a common control and visualization platform for all mill systems to optimize energy efficiency, the use of production resources and overall mill maintenance.

ABB will also provide design, engineering, commissioning and related on-site services. Project commissioning is scheduled for the early fourth quarter of 2012.

ABB’s Process Automation division delivers industry specific solutions and services for industrial automation and plant electrification. These solutions help customers meet their critical business needs in the areas of energy efficiency, operational profitability, capital productivity, risk management and global responsibility. Available industry specific solutions include process control, instrumentation, analytics, safety, plant optimization, telecommunications, energy management and power distribution.

Automation and power equipment to improve efficiency of pulp production facility in Indonesia

ABB recently won an order from Marubeni Corporation, Tokyo to de-bottleneck the pulp production facility at their PT. Tanjungenim Lestari Pulp and Paper in South Sumatra, Indonesia. ABB will provide electrical and automation equipment to help the mill improve its energy efficiency and production processes.

ABB’s solution will optimize the equipment at PT. Tanjungenim Lestari Pulp and Paper. The project is part of an ongoing process to update automation and optimization at the mill.

ABB’s scope of supply includes 6.3 Kv Medium Voltage MCC’s, 400V Low Voltage MCC’s and accessories. ABB will also deliver several 415V Low Voltage and 6Kv Medium Voltage Motors for this project along with a drive cabinet and control boxes.

The project will be implemented by ABB’s Pulp and Paper Regional Center in Singapore. ABB will engineer and commission the system and will also provide project management.

Founded more than 150 years ago, Marubeni Corporation, Tokyo, Japan, has provided products and services to a broad range of industries. These fields encompass importing and exporting, as well as transactions in the Japanese market related to food, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery and offshore trading.

ABB’s automation and electrification systems help create an environmentally friendly, reliable and efficient operation

ABB, the leading power and automation group, has won an order for the electrification and automation system of a new bioboiler and turbine, including fuel management, from Bomhus Energi in Gävle, Sweden.

Bomhus Energi AB, a joint venture of Gävle Energi AB and Korsnäs AB, will supply steam and electricity to the Korsnäs plant in Gävle as well as district heating to the Gävle town district, with the new bioboiler. “The new boiler will replace an older boiler at Korsnäs, and will be both more environmentally friendly and more efficient,” says Mats Törnkvist, technical manager at Korsnäs and Bomhus Energi AB board member.

The ABB supply scope includes low-voltage switchgears for energy-efficient motor control and monitoring of more than 400 motors, 18 energy-efficient and environmentally friendly Resibloc transformers and shunt capacitors to improve power quality. Bomhus has also ordered an ABB Automation System 800xA for controlling and monitoring the boiler.

“The automation system will control and monitor a complex process with high safety requirements. The boiler, the fuel management, a new turbine and the integration of adjacent process sections must be monitored and 100% controlled, a function that now will be significantly simplified with the new automation system,” says Törnkvist.

In addition to advanced control and monitoring functions, the automation system includes new operator stations, integration of switchgear and motor operations and an environmental report system, as well as real-time monitoring of every instrument circuit. System 800xA will be based on virtual servers, saving space and considerably simplifying system testing and future upgrades.

To create a new joint operator environment, older operator stations will be replaced with new 800xA units for adjacent process sections. The project includes all system work, programming, test runs and commissioning.

The new boiler will be fully operational by fall 2012.

ABB's paper machine fingerprinting, Identifies opportunities for machine performance improvement. Paper Machine benchmarking establishes current machine performance and provides a basis for evaluating and identifying improvement opportunities.

The resulting diagnostic report provides improvement recommendations and associated estimated ROI. Typical savings potential: $150,000 – $350,000

Benefits

-Facilitates management decision process by focusing on high impact opportunities for improvement
-Provides clear path to quickly close the performance gaps by using the proposed improvement plan
-Provides a solid foundation for continuous improvement based on data

Features

-Access to ABB optimization experts
-Process performance benchmarking
-Detailed ROI-based improvement plan
-Clear communications during data collection and diagnosis activities

Paper Machine Fingerprint

The ABB Paper Machine Fingerprint is ABB’s process performance diagnostic service for paper machine optimization. The fingerprint generates both a performance benchmark and an improvement plan, consisting of a set of improvement opportunities, which are prioritized based on estimated economic benefits. It is a platform-independent, non-invasive service that can be applied to any paper machine.

Process Performance Indicators

The fingerprint involves comprehensive testing and analysis designed to measure four key performance indicators. These performance Indicators are used to assess machine performance and improvement area potential (see Figure 1).

-Product Variability
-Machine Response
-Stock Approach Stability
-Profile Capability

Historical data is used to validate test results.

Machine Testing

Each performance indicator includes a series of indexes derived from specific machine tests. Each test is performed inside product specifications, utilizing ABB’s diagnostic tools and methodologies. The resulting index is used to evaluate the performance level of different areas of the paper process including:

-Mechanical vibration and rotational frequencies
-Machine and cross direction controls
-Lab testing procedures
-Sheet break recovery
-Process control system performance
-Coordinated speed control
-Grade change control

Identifying machine area under-performance is the first step in the improvement process. Understanding the problem and having the expertise to provide solutions is assured through ABB’s extensive experience in paper machine control.

Implementation Modules

In order to provide practical solutions for problems often identified in the paper making process, ABB has developed defined, logical optimization steps for each machine area.

The numerical result or index of each test points to the machine area problem and also points to the bottleneck location in the optimization sequence.

Once the entry point has been established for each machine area, the solution to the performance bottleneck and the remaining steps to optimize the process become clear. The Machine Response indicator is used to determine a performance index for the machine direction controls (see Figure 2). The test entry point is defined by the specific machine tests and data analysis associated with this performance indicator.

The Machine Response indicator includes multi-level testing and analysis applied to Dry Stock, Weight, Moisture, Rush/Drag, and Ash Controls. Similar testing methodologies are involved with each performance indicator. Complete Machine Area testing sequences require three to five working days to collect the data required for the diagnosis and to compare improvement recommendations.

Reporting

An Executive Report and a Technical Report are provided to disclose the findings and recommendations of the process performance diagnosis.

-Technical Report provides supporting data collected during the machine diagnosis.
-Executive Report provides benchmark results, summary of findings, financial impact of recommendations, and an actionable improvement plan, based on the machine diagnosis.

Improvement Plan

The improvement plan defines how to resolve the performance bottleneck and improve performance. In addition, the associated financial impact for each recommendation is provided. Based upon the findings, recommendations may include valve replacement, isolating high frequency machine problems related to: rolls, pumps, screens, machine clothing, cleaning up signal conditioning problems, optimizing or adding control logic, updating standard operating procedures, or re-tuning controls for optimal performance.

The Paper Machine Fingerprint is the first step in achieving and sustaining higher performance levels. Annual Fingerprint, Implementation, and Sustaining services are recommended as part of your service contract agreement to achieve and continue the improvement process. These can be scheduled within a single- or multi-year service contract agreement. ABB is the world leader in pulp and paper applications. In depth knowledge and experience in this area allows comprehensive evaluation, diagnosis, remedial recommendations and implementation, and the ability to manage and sustain process performance improvement.

ABB, the leading power and automation technology group, has won an order to supply process electrification and power distribution infrastructure as well as equipment for a new pulp mill in southwestern Uruguay.

The Montes del Plata pulp mill is a joint project of Finnish pulp and paper manufacturer, Stora Enso, and the Chilean forestry company, Arauco. At an estimated cost of $1.9 billion, it is the largest private investment ever made in Uruguay..

The mill is scheduled to be begin production in the first quarter of 2013, and will have an annual capacity of 1.3 million metric tons of bleached eucalyptus kraft pulp sourced from Montes del Plata's own forestry plantations. The project includes the pulp mill, a deepwater port and a biomass-based power generation plant to convert waste from pulp production into electricity.

“ABB has delivered and managed large, complex electrification projects for the pulp and paper industry for more than 40 years," said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “Our advanced technology can also help customers efficiently tap into local renewable energy sources, ensuring this state-of-the-art mill has a reliable, self-sufficient electrical supply.”

ABB will provide power distribution and process electrification for the pulp mill, including the main transformers, 33 kilovolt (kV) power distribution system and control system, smart motor control switchgear, all motors and frequency converters. ABB will also deliver the sectional drive systems for the two pulp dryer machines, including hardware and software engineering, as well as on-site services for customer training, start-up and commissioning.

ABB’s Process Automation division delivers industry specific solutions and services for industrial automation and plant electrification. These solutions help customers meet their critical business needs in the areas of energy efficiency, operational profitability, capital productivity, risk management and global responsibility. Available industry specific solutions include process control, instrumentation, analytics, safety, plant optimization, telecommunications, energy management and power distribution.

ABB to acquire Swedish manufacturer of quality control and process optimization solutions

ABB, the leading power and automation technology group, has agreed to acquire Lorentzen & Wettre from ASSA ABLOY AB (publ) for a price of about $119 million (SEK 750 million), to strengthen its business in the pulp and paper area.

Based in the Kista district of Stockholm, Sweden, Lorentzen & Wettre manufactures equipment for quality control, process optimization and test instrumentation for the pulp and paper industry. It has production facilities in Kista and Kajaani, Finland, and sales and service offices across Europe and in Canada, China, Japan, Singapore and the US. The company has approximately 190 employees, and will be incorporated into ABB’s Process Automation division.

“This acquisition will nicely complement our existing portfolio of pulp and paper industry offerings,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “This is an excellent strategic fit as Lorentzen & Wettre’s products and services will enable us to address the broad spectrum of pulp and paper production challenges.”

Founded in 1895, Lorentzen & Wettre has technology that contributes to improving paper quality, reducing manufacturing costs, and cutting the consumption of raw materials and energy. The company’s offering includes automated fiber and pulp analysis devices, consistency transmitters, moisture sensors, laboratory paper testing instruments, automated paper testing systems, and industry specific services.

"We are very excited to continue to develop our business as part of the global Process Automation business of ABB,” said Patrik Stolpe, CEO of Lorentzen & Wettre.

Lorentzen & Wettre reported revenues of SEK 307 million ($49 million) in 2010 and expects an increase to SEK 335 million ($53 million) in 2011.

The transaction is subject to customary regulatory approvals. ABB expects the acquisition to be completed during the second half of the year.

Sappi’s Somerset Mill is on a mission to continually improve its reel building quality, and the ABB Optical Caliper Sensor has helped Sappi to effectively manage optimum reel-building conditions in real-time.

Uniform caliper is extremely important for good roll-building on coated and calendered papers. Because the paper is so dense and smooth, very little caliper profile deviation can be tolerated before the effect is seen on the hardness profile of the reel, and subsequently in the quality of the rolls coming off the winder. PM2 at Sappi’s Somerset Mill used to rely on manual off-line testing of reel hardness profiles using a hand-held hardness tester to assist with the process of troubleshooting reel-building. While this approach was sufficient to enable Sappi to meet its quality targets, the infrequency of these hardness tests represented an opportunity for Sappi to further optimize reel-building conditions, and their available manpower.

“The stability and repeatability of the Caliper Sensor allows the operator to trust the profile shape and make reel-building corrections in real-time rather than wait for an off-line hardness profile test,” says Dave Moore, Senior Process Engineer at Sappi Somerset Mill.

The Optical Caliper Sensor contacts the sheet on one side using a smooth ceramic stabilizing plate with vacuum applied by concentric rings. On the other side of the sheet is a unique optical (confocal) measurement. The confocal measurement is combined with a magnetic reference measurement, and the result is caliper measurement. The simplicity of this design provides reliable performance day after day in the harsh paper mill environment.

Even with the sensor applied very soon after the calendering process on high-gloss grades, Moore adds that, “We have not seen any sheet marking issues with this design.”

Caliper correlation within ±1% between the laboratory and the Optical Caliper Sensor was one goal of the project: “The optical sensor has met our requirement of reproducible CD profile correlation without marking the sheet surface,” reports Moore.

Equally important for Sappi was the correlation to the hand-held hardness instrument. Figure 1 shows that the correlation was good enough to allow operators to make corrections before out of specification limits were reached.

ABB has been working with the Sappi Somerset Mill to implement service and evolve its Quality Control Systems (QCS) for more than 25 years on its three paper machines. Over that period of time, ABB and Sappi have worked together to evolve the systems in a step-wise approach, with manageable capital investments.