BRIGHT FUTURE FOR

news | views | reviews BRIGHT FUTURE FOR Martin Temple CBE Chairman of the EEF was invited to formally open the new machining facilities at Midlands based W H Tildesley (WHT) forging operation. He was delighted to see such significant ongoing investment in the forging sector. Praising the manufacturing sector he welcomed any upturn and called on Government to recognise the contribution manufacturing makes to UK PLC. This was particularly relevant when the finance and service sectors were in such uncertain times. Associated Bodies: The day was also enhanced by the presentations by Hitachi Tool Engineering explaining how they had worked with WHT to develop the high speed machining of the die blocks and Jamie Barnett from Faro UK showed the versatility of the latest coordinate measuring machines. Also Richard Keyte from Innoval Technologies demonstrated the benefit of infrared heating of forging dies to provide more consistent temperatures in the forging operation. Having acquired the machining business last year the decision to integrate this onto the existing site was taken and completed in record time, 4 CNC machining centres, 2 bar-fed lathes and two further lathes plus specialist T- bolt machines were involved in the relocation. The strategic importance to supply fully finished forgings to the customers was necessary to support WHT's mission of rapid production of small batch components and the new facility provides the final link in the chain. This additional capability complements the already established engineering expertise at W H Tildesley, from 3-D CAD modelling and forging simulation, the most modern in house tooling manufacture, to co-ordinate measurement facilities. W H Tildesley is now poised for another period of strong growth in 2008 and with control over the complete production from drawing to finished product the future is looking brighter than ever. www.whtildesley.com Fastener Engineering and Research Association www.fera.org.uk Cold Rolled Sections Association www.crsauk.com International Institute of Forging Technology www.iiftec.co.uk May | 08 Milton Keynes Pressings Ltd are RoSPA Occupational Health & Safety Award Silver Award Winners 2008 David Rawlins, RoSPA Awards Manager said “Milton Keynes Pressings Ltd has shown a commitment to protecting the health and well-being of its employees and others. We hope other businesses and organisations will follow its lead and strive for continuous improvement in health and safety management”. Steve Graves, HR Manager of Milton Keynes Pressings said “The RoSPA Awards are about ensuring that organisations have good health and safety management systems in place with the aim of reducing the number of accidents and cases of illhealth at work. The awards are for the company as a whole, management and employees, working together as a team. They help to reinforce the message that good health and safety is good business and clearly demonstrate an organisation’s commitment to the achievement of high levels of performance in this crucial area”. Milton Keynes Pressings Ltd currently employs 200 staff and is a first tier supplier to General Motors, Bentley, Denso, and Nissan. The workforce is very proud of their achievements being recognised. Previous accolades include the ‘Confederation of British Metalforming Manufacturer of the Year 2006’ and the ‘Queen’s Award for Enterprise for International Trade 2001’. www.mkp.co.uk Experiences and problems with Cr6-free coatings F E R A S E M I N A R 1 3 M A R C H 2 0 0 8 FERA* ran a seminar in March that reviewed experiences and issues since the implementation of the ELV Directive in July 2007, which made the elimination of coatings containing Cr6 mandatory. The speakers were a fastener user, a coating supplier, and a coating sub-contractor. The main speaker at the meeting was Burghard Werthe, of Volkswagen Light Commercial Vehicles, Hannover, who is widely acknowledged as one of the top fastener technologists in Europe, and has been greatly involved in the implementation of Cr6-free coatings in VW. Herr Werthe claimed that there are 40 million bolted joints tightened daily in the 30 VW factories around the world. The average assembly time per joint is about 10 seconds, and the total fastener assembly time for a typical car is about 2 hours. Hence VW regard the tightening of bolts as a major issue in assembly, and anything that disturbs production times is unwelcome. They have had major problems with fastener tightening since the change in coatings. Issues of high torques, low clamp loads, stick slip, and thread non-conformance all occurred during the introduction of the new coatings. Although there have been major improvements, there are still significant problems, particularly with fasteners from the Far East and Italy. VW’s conclusion is that there are very few fastener producers that test each batch under conditions similar to production assembly. Testing with a two stage process is essential, with a high run-down speed followed by tightening at about 20rpm, but unfortunately this is not widely done. Following this, Clive Pearce of Dacral talked about the changes made to the Geomet range of Cr-free coatings in order to overcome user problems, and Andrew Bliss of Anochrome Group discussed the range of coatings that they provide, and reviewed the problems that they had encountered with the new coatings, from the quality issues with the fasteners to increased costs in order to provide adequate performance. The slides used in these presentations can be found on the FERA website www.fera.org.uk. For further information please contact Dr John Newnham at the CBM offices on 0121 601 6350 or email john.newnham@britishmetalforming.com. *FERA = The Fastener and Engineering Research Association. May | 08 www.britishmetalforming.com SECTOR UPDATE The rising cost of energy presents a major challenge to CBM members. The first of CBM events this year focused on energy efficiency and cost management. Presentations included a summary of the Climate Change Levy, reduced electrical consumption through voltage regulation, on-line energy auctions, and renewable options. SHEET METAL CBM EVENTS A REACH Guide tailored to CBM members’ specific requirements has been developed in conjunction with EEF and UK Steel. Copies are available from CBM, email kirsi.lintula@britishmetalforming.com. Following the success of CBM workshop event last year examining tooling costs and increasing tool performance CBM has again teamed up with CruSteel. On 14th May CBM has invited the US Vice President (technology) of Crucible Steel to join the presentation team. The event focuses on getting the best out of tooling and correct diagnosis of tool failure. CBM will be hosting a Mock Tribunal to explore employer liabilities on 5th June, then a Ventilation & Extraction workshop on 26th June. Further topics under consideration include ‘Metallurgy for non-metallurgists’, ‘Robot handling of sheet materials’, and ‘Energy savings for Fossil Fuelled Furnaces’. For further information please contact Alan Arthur at CBM on 0121 601 6350 or email alan.arthur@britishmetalforming.com. At a recent meeting with the CBM Sheet Metal Sector Chairman, Barry Yeomans, it was suggested that instead of focusing on stamping the products CBM would also look into assembly and fabrication of sheet metal products. Added value is always sought after by companies - assembly will offer them an opportunity to grow their margins. CBM will organise a seminar [date tbc] in association with the Welding Institute and the University of Warwick on advanced joining of metal products. For further information please contact Adrian Nicklin at the CBM offices on 0121 601 6350 or email: adrian.nicklin@britishmetalforming.com. The pressure on the manufacturing industry from new or tighter environmental legislation is feeding through in 2008. During March CBM ran two events focused on the REACH regulation and Elimination of Cr6 in the fastener industry. Compliance with REACH is being driven through the supply chain in the automotive and aerospace sectors. Many CBM members are finding that it is already impacting on their ability to supply into the OEMs and 1st tier. The speakers at the REACH event were an environmental lawyer from Cambrensis and a Senior Officer from Rolls Royce Aerospace. The regulations were explained in detail and the implication for suppliers were discussed in an open forum. CBM will keep a watching brief on progress of this regulation. Funding OPPORTUNITY During the recent MACH exhibition at the NEC we were approached by an individual who specialised in assisting companies to obtain grants for capital projects particularly in our industry where he has had several successes. He has already raised over £20m in grant funding for UK SMEs ranging from £20k to £1.5m. If you are considering a major project the Selective Finance for Investment in England (SFIE) scheme is a Government grant scheme aimed at English Manufacturers to help support them make significant new investment in advanced technology, machines and productive space. £120m was offered to English Manufacturers in 2006 and 2007 through the SFIE scheme, if you would a piece of this money and probably need help to make your application successful please contact John Houseman at CBM on 0121 601 6350 or email john.houseman@britishmetalforming.com. CURRENCY MOVEMENTS THREATEN PRICE GAINS Forging companies throughout Europe are having significant success in recovering steel price rises from customers, according to Euroforge. Delegates from ten countries attended the organisation’s April meeting in Berlin, and reported that strong demand, generally over 8 per cent, was helping some forgers even recover energy price increases. Optimism for 2008 also forecast further increases in output. The Czech Republic led the way, with members increasing production by 20 per cent well over double that of the original EU members. However, the Czech delegates also reported that recent currency fluctuations were threatening to reduce the benefit of the recent successes. A report on the Asian forging market revealed that Taiwan had consumed 2.8 million tonnes during 2007, ahead of Japan’s 2.6m tonnes, and China’s estimated 2m tonnes - of which 10 per cent was imported. India had produced 1m tonnes. A representative from the Japanese Forging Association said its domestic forging industry was ahead 4 per cent, but aluminium forging was up 25 per cent. Japanese forgers were looking to enter new markets, notably the United States, China and South-East Asia. Some suppliers reported receiving letters from Daimler-Benz, claiming it would not accept price increases, but this was disregarded as an empty threat. The next Euroforge meeting will be at Frankfurt in October. For further information please contact John Houseman at CBM on 0121 601 6350 or email john.houseman@britishmetalforming.com. www.britishmetalforming.com May | 08 EuroBLECH COLD FORMING SETTER A challenging position for someone looking for job satisfaction. Candidates should have experience with setting single and multi die cold heading machines. This position is double day shift: Mon-Fri 0600-1400hrs / Mon-Thur 1345-2200 and Fri 1330-2030hrs The Company operates a travel allowance + bonus scheme. If you are looking for a position offering a challenge, job security and good prospects please apply in writing to Linda Gwilliam, Personnel Administrator, Barton Cold-Form Ltd, Pointon Way, Stonebridge Cross Business Park, Droitwich, Worcs. WR9 0LP. Email: linda@coldform.it or telephone Carl Blick, Forge Manager for further information (01905) 777030. www.bartoncoldform.co.uk Innovative solutions for sheet metal working 21 - 25 OCTOBER 2008 IN HANOVER, GERMANY The world’s leading technology exhibition for sheet metal working will be held this year from 21-25 October 2008 in Hanover, Germany. Of the 1,350 exhibitors who have booked a stand so far, some 45% come from outside Germany. Currently the largest exhibitor countries are Germany, Italy, the Netherlands, Switzerland, Turkey, Spain, France, Austria, Taiwan and the USA. The previous exhibition in 2006 was attended by more than 64,000 visitors; 36% came from outside Germany, from 73 countries. Specialists in sheet metal working, such as designers, buyers, production specialists and quality managers, will find the complete sheet metal working technology chain at EuroBLECH 2008: sheet metal, semi-finished and finished products, handling, separation, forming/flexible sheet metal working, joining/welding and surface technologies. Tools, process and quality control systems, CAD/CAM applications plus research and development complete the product range. Exhibitors also include suppliers of sheet metal parts as well as subcontractors. www.euroblech.com 2008 Fastener Fair Coventry 1 1 A N D 1 2 J U N E 2 0 0 8 When it opens its doors on Wednesday 11 and Thursday 12 June 2008, Fastener Fair Coventry will offer visitors more than ever before. “We’ve never had this much space booked by exhibitors,” says Organiser Jerry Ramsdale. “And what that means for visitors is that they’ll have more to see than at any previous Fastener Fair event held in the UK and Ireland.” Taking place at Coventry’s Ricoh Arena, the show will have almost 140 exhibitors, including a significant contingent from China and the Far East, which Ramsdale believes demonstrates the importance of the UK and Ireland markets. Networking opportunities include the industry’s ever-popular Gala Dinner, which is being held on the Wednesday night of the exhibition, with entertainment from comedian John Moloney. CBM WILL BE AT THE FASTENER FAIR - COME AND VISIT US [STAND NUMBER B6] 2008 CBM Events May 14 CBM Workshop - Cost reduction by increased too life & performance 16 EIFI Annual Congress in Venice 21 Forging Sector Meeting, Doncasters Bleanavon June 5 Mock Tribunal - Employment Law in action 11-12 Fastener Fair - Coventry 18 10.00am CBM Executive Board Meeting 18-19 SBB Steel Markets Europe 2008 Royal Lancaster Hotel, London 26 CBM Workshop - Ventilation and extraction July 2 10.30am CBM Health, Safety & Environment Group meeting September 3 CBM Workshop - Energy Saving & Management - Furnaces 7-12 International Forging Congress, Chicago, USA 14-17 ICOSPA Congress, USA 24 10.30am CBM Sheet Metal Sector Meeting - venue tbc 24 CBM Workshop - Robotic handling of sheet metal products 23 am CBM Members event October 1 10.00am CBM Executive Board Meeting 7 10.30am CRSA AGM & Members’ meeting 21-25 Euro Blech 2008 - Hanover, Germany. W: euroblech.com December 11 am CBM Sector Meetings - Venues to be confirmed 2009 CBM Events April 8 7.30pm CBM Metals Industry Dinner & Awards Meriden, Nr Birmingham All events are held at the CBM Headquarters, National Metalforming Centre, West Bromwich, B70 6PY, unless otherwise stated. If any member is particularly interested in attending any of the above events, and is not sure of registration details, please contact CBM for further details on 0121 601 6350 National Metalforming Centre | 47 Birmingham Road | West Bromwich | West Midlands | B70 6PY Tel: 0121 601 6350 | Fax: 0121 601 6373 | Email: info@britishmetalforming.com | Web: www.britishmetalforming.com Climate Change Legislation Quarterly Report Climate Change Legislation - Quarterly Report – April 2008 1. Climate Change Bill The Climate Change Bill is expected to gain Royal Assent by mid-year. The Bill will put into law UK targets to reduce carbon dioxide emissions by at least 60% by 2050 and 26-32% by 2020, against a 1990 baseline; the recent budget suggests an 80% reduction by 2050. A Committee on Climate Change, to be set up as an independent, expert body, will play a vital role in advising Government on how to reduce emissions over time and across the economy. Already established in shadow, the committee started taking evidence in January 2008. Chaired by Lord Adair Turner, the first five members of the committee are Sir Brian Hoskins, meteorologist and climatologist, Lord Robert May, ecologist, Professor Jim Skea, research director, Dr Samuel Fankhauser, economist and Professor Michael Grubb, economist. The committee has already been charged with advising on the 2050 target and first three UK carbon budgets by December 1st, 2008. It will be important for industry to make the committee aware of its concerns and needs in respect of climate change legislation. 2. Climate Change Agreements, CCA’s We are now six months into the 4th Reporting Period; companies with relative targets will be expected to report their performance to CBM in November/December 2008. There are currently over 100 facilities in the agreement, with several applications in progress. Defra have announced their intention to hold a consultation on the format of CCA’s for the period 2013 to 2017. They have explained that HM Treasury wants to evaluate the performance of the EU Emissions Trading Scheme, EU ETS, and the Carbon Reduction Commitment, CRC, in 2017 before deciding on the long-term future of CCA’s. Although maintaining the general framework of current CCA’s, Defra see three main areas for possible change when drafting the new CCA’s; • • • Target setting – type of target, target periods, target review. Coverage – overlap with EU ETS, 90/10 rule. Simplification – Current agreements are complex, a result of the lack of precedent when agreements were first established. Experience suggests that much of the complexity could be removed. Perhaps the most important consideration for members is Defra’s suggestion that baselines for the new agreements could be established on a common basis, using the outcome of the 2010 target period. The UK Emissions Trading Scheme will close after the last reconciliation under the current scheme in 2011; surplus allowances will not be carried forward. Under the new agreements, the CRC market could be used by CCA holders to trade in CO2. This proposal emanates from Government’s desire to see the price of carbon rise on the international market. Defra have invited industry to provide informal proposals on the consultation by April 11th, prior to the publication of the formal consultation document in June/July. The legislative process would then rollover to October 2009, when target negotiation with Trade Associations would begin. The first of the new Target Periods would start in 2012, with Target Review Periods of 2012 and 2014. At the plenary meeting for trade association, held on 6th March, Defra were not able to confirm when/how they will conduct a second review of sector targets during 2008; apparently, Ministers are yet to agree. At the last review in 2004/5, CBM’s target was tightened from 7% to 25.6%. It will be necessary to collect company information and compile a fact file to resist further tightening of the sector target. PTO National Metalforming Centre I 47 Birmingham Road I West Bromwich I West Midlands B70 6PY Tel: 0121 601 6350 I Fax: 0121 601 6373 I E: info@britishmetalforming.com I W: www.britishmetalforming.com 3. EU Emissions Trading Scheme, EU ETS Phase III of the EU ETS, from 2012 to 2020, is currently under review by the European Commission. The Commission wishes to; o Ensure a cost-effective contribution of the EU ETS to achieving the 20% Green House Gas, GHG, reduction for 2020, (or to a 30% reduction if an international climate agreement is reached), and 20% renewables content. o Improvement of the EU ETS based on experience so far o Enhanced predictability and certainty for long-term emission reductions o Contribute to developing the international carbon market and encourage global action Although the EU ETS has excluded the metalforming industry to date, the proposed scope of Phase III does include “smitheries”, (forges), with a rated thermal input >20MW. This means that, if the total, rated thermal input of a site exceeds 20MW, the site would be included in the EU ETS. Recognising that this threshold could capture small emitters, the EC proposes a combined exclusion clause. Firstly, combustion installations, e.g., furnaces, with a rated thermal input below 3MW are excluded from the site, aggregate total capacity. Secondly, if the total, rated thermal input of a site is less than 25MW and the site emits less than 10Kt CO2, the site would be excluded from the EU ETS. A significant development in the political debate about the EC Review, is the recognition of the risk of Carbon Leakage, i.e., production, (and jobs), transferred to non-EU countries. Thus, the concept of free allocation of CO2 allowances to industries affected by carbon leakage is being considered, at least up to 2020. The EC is mandated to report on carbon leakage by 2011. Putting the discussion about carbon leakage to one side, the favoured methodology for allocation of EU ETS allowances is 100% auctioning, i.e., companies included in the EU ETS would have to bid in national, or European, auctions to obtain their annual requirements. Again, the political ambition is to force up the price of carbon. There will be no prospect of free allocation for the power generation sector. Therefore, as the international price of carbon increases, power prices are almost certain to rise as the result of pass-through costs. This will affect EU ETS and non-EU ETS industry sectors. 2008 will be a busy year for lobbying and negotiation, not least because there will be a new Commission and a new European Parliament in 2009. 4. Carbon Reduction Commitment This is a mandatory, UK cap-and-trade scheme, similar to the EU ETS, covering energy use emissions from commercial and public sector organisations. The CRC will target emissions from energy use by large organisations whose annual mandatory half hourly metered electricity use is above 6,000MWh; (using the Milestone 3 CCA values, 26 CBM Facilities are above this threshold). However, facilities with more than 25% of their energy use emissions in Climate Change Agreements would be completely exempt from the CRC. 5. Consultation – Climate Change Simplification There are areas of overlap and options for Simplification of Climate Change Instruments, e.g., EU Emissions Trading Scheme (EU ETS), Climate Change Agreements (CCAs) and Carbon Reduction Commitment (CRC). UK Government says that it is committed to eliminating avoidable overlap, simplifying the existing regulation and ensuring that the regulatory burden on the economy is kept to a minimum. Industry response to 11 recommendations was sent to Defra on 19th March, 2008 If you have any questions to ask, or contributions to make, concerning the items included in this report, please contact Geraldine Bolton or Ken Campbell at the CBM, telephone 0121 601 6350 or email gbolton@britishmetalforming.com.