Transcript Document

Industrial Market, Strategic Industries
Speakers
• Rakesh Makhija
President
Industrial Market, Strategic Industries
• Bernd Stephan
Director
Business unit Renewable Energy
• Robert Law
Director
Business unit Lubrication
© SKF Group
CMD 2014
Agenda
1. Strategic Industries overview
2. Strategy and market direction
3. Significant news
4. Growth drivers
• Asset life cycle and service
• China
5. Manufacturing
• Cost reduction programs
• Footprint
• Application specific offers
6. Renewable Energy business unit
7. Lubrication business unit
8. Outlook and key business message
© SKF Group
CMD 2014
1
Strategic Industries overview
Strategic Industries
Net sales 2013 = SEK 18,929 million
Number of employees = 17,628
Full responsibility for sales to both OEM and end users, as well as
business development, manufacturing and engineering
% of net sales by geographical area (2013):
Asia, Pacific
23%
North America
27%
© SKF Group
CMD 2014
Europe
50%
2
Strategy and market direction
Our mission – “clear leadership”
• Leadership in everything we do
– Value
– Innovation
– Cost
• Strong financial performance
– Profit
– Cash flow
• Customers are first priority
• An entrepreneurial culture – seeking new horizons
• Execution with speed
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CMD 2014
Value & cost leadership
“Market leadership &
profitable growth”
“Meet customer needs
through speed & innovation”
• Asset life cycle per industry
• New market offers
• Service business
• Application specific offers
• Strategic customer relationship
• New technologies
• Customer service levels
• China, India, USA and Germany
• Position technology
leadership
• Geographic expansion
• New processes
• Acquisitions
• SKF BeyondZero
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CMD 2014
“Cost leadership
& flexibility”
• Cost reduction
• Integrated cost reduction
and manufacturing supply
optimization
• Asset utilization
• Manufacturing footprint
• Business Excellence/Lean
• Quality
• Safety
3
Significant news
Aerospace
•
SAFRAN announced the award of the strategic LEAP program to SKF
•
Renewed long-term agreements with major partners such as GE Avio SrL, Rolls-Royce,
AgustaWestland, HAL and Techspace Aero
•
Reinforced partnering with Boeing with a new contract for advanced sealing solutions
•
SKF Aerospace Innovation Centers: Falconer (US) and INSA Lyon (France) on major
topics such as condition monitoring and next generation of airframe and aero engine
bearings
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CMD 2014
Renewable Energy
•
Strategic partnerships in China with Envision
Energy, a global leading provider of wind
turbines, and with Longyuan, the largest IPP
wind farm owner and operator in China
•
Gained several significant supply agreements
with Goldwind
•
Received the Best Technical and Service
Award 2013 from Envision Energy, Technical
Cooperation Award from Goldwind and the
Supplier of the Year 2013 from Nanjing
Gearbox China
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CMD 2014
Precision
•
Inauguration of a super-precision bearings
manufacturing channel in Pinghu, China
•
Increased number of orders in the automation
industry, including an order worth of SEK 33 million
•
Launched a new pillar CPMT (SKF Telescopic
pillar for medical procedure equipment) with
great market response
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CMD 2014
Railway & Off-highway
Photo: BEUMER Group GmbH & Co. KG
•
Order for 40,000 compact tapered bearing units for
Russian freight car OEM, Tikhvin Freight Car
Assembly Plant (TVSZ)
•
Continued very strong development of the
passenger train segment business in China
•
Ongoing tests of SKF Insight with three European
railway customers
•
Slewing bearing orders from several major OEMs
in China and strengthened SKF position for tunnel
boring applications
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CMD 2014
Lubrication
•
Secured a 70% share for automatic lubrication
systems from a major European wind turbine
producer (2014 & 2015)
•
Secured SEK 16 million order for firefighting reels
•
Secured a major contract from TPC Wire & Cable
(US) for storage reels (supply power to nuclear sites
in the event of a natural disaster)
•
Secured significant business for
automatic lubricating screw jacks
for marine industry
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CMD 2014
Traditional Energy
•
SKF magnetic bearings installed its 1,000th system in an oil & gas application,
which is the largest installed base in the industry
•
Received an order for SKF super grip bolts for turbine couplings for seven power
plants in three countries from Doosan Heavy Industries valued at SEK 18 million
•
Integrated condition monitoring and protection system commissioned at a large
Asian petrochemical complex and received letter of intent for similar system for new
refinery in Middle East
•
A new low torque operator valve concept was introduced with several significant
prototype orders received from key manufacturers of subsea valves used in the
offshore oil & gas industry
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CMD 2014
Industrial Drives
Received a large order of bearings and condition
monitoring from a major Chinese fan and blower
manufacturer
Landed a three-year contract with a major global
compressor manufacturer, which increased market
share and secured SKF’s role as their major bearing
supplier
Won an order of 72 slewing bearings for seismic
isolation system in ship to shore cranes from a
leading Indian crane manufacturer
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CMD 2014
4
Growth drivers
- Asset life cycle and service
- China
Customer testimonial
Seakeeper
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CMD 2014
Customers create and capture value
• Rule 1: Customers pay for what they value
• Rule 2: Value is a moving target, what they value today
may not be valued tomorrow
• Rule 3: Value must be tangible and measurable
Our responsibility is to ensure that SKF provides sustainable
customer value now and in the future!
Customers derive as much, if not more value
from HOW they interact with SKF, and this
results in a more sustainable basis for
competitive advantage.
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CMD 2014
Sustainable profitable growth
Optimizing the asset life cycle with SKF solutions
Specification
Close cooperation with
regulatory bodies, institutes
and agencies, enables support
in defining and meeting
standards and requirements
Design and develop
Engineering services to
enable new design and
minimize risk of machinery
failures and warranty costs
Manufacture and test
A one-stop source for
proven, world-class
products, delivered and
available worldwide
Maintain and repair
A range of maintenance
engineering and consulting
services to boost asset
uptime
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CMD 2014
Install and commission
Operate and monitor
Safer and more profitable
operations with increased
availability through class
approved solutions for
condition-based maintenance
Optimized operational
performance through
best practice installation
services
Asset life cycle management
Example: Pinion stand concept
Pinion stands used for rotary drums
with major focus on rolling mills &
kilns.
Today’s situation:
• Gearbox OEMs are responsible
for delivering major part of the
driveline (including the pinion
stand)
• The pinion stand selection and
delivery is seen as a necessity
outside many of the gearbox
OEMs core competence
Lubrication
system
Locating
bearing
SRB
Tomorrow:
• SKF is a full pinion stand
supplier with additional upgrade
services
SNL
housing
Sealing
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CMD 2014
Condition monitoring
for pinion bearings
Non-locating
bearing
CARB
Asset life cycle management
Example: Fan upgrade services in Nordic region
Increased performance and reliability for critical
industrial fans and blowers.
Reference cases:
Renova Göteborg (Refuse disposal unit)
• Reduced maintenance cost with
SEK 125 thousand/year
• Reduced downtime and increased lifetime
for bearings and oil
US paper mill
• ROI 483% in 16 months. Verified by SKF
Documented Solution Program (DSP)
Renova Göteborg
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CMD 2014
New Industrial Market SKF BeyondZero market launches
SEK 4 billion
(Industrial Market forecast 2014)
35 Solutions
30% of new offers
High speed permanent magnet
motor solutions
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10 to 40% lower energy use
Improved service life and reliability
Oil-free environment with no contamination
Up to 30% lower noise levels
Extended life plain bearings
Telescopic pillar for infant care
•
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Greased-for-life product
Up to 90% grease reduction
Increased uptime
Reduced total cost of ownership
Eliminate grease leakage to environment
Lower noise level
Reduced energy use by 80%
Higher load carrying capacity
Higher stability
Greater comfort, smoother operation
SKF BeyondZero solutions and launches 2012–2013
LubriLean for
cutting process
SKF ConRo
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CMD 2014
Food line
Y-bearings
Active magnetic
systems
Cylinder
lubrication unit
Sour gas compressor
bearings
Titanium bearings
for aerospace
High endurance
slewing bearings
Spherical roller
bearings + CARB
toroidal roller
bearings
SKF Solar Hub
SKF solar linear
actuator
SKF Flowline
Dry lubrications
for conveyor belts
CTBU low friction
seal
SKF Nautilus
Servo actuator
SKF Energy Efficient
(E2) deep groove
ball bearings
SKF Agri-HUB
Customer testimonial
Envision Energy
© SKF Group
China overview
• Strong development in passenger rail and wind segments
• Stable demand in key segments – e.g. industrial electric motor, fluid
power and machine tools
• Increased local production acceptance
• Value selling works in a tough environment
• Increasing manufacturing
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CMD 2014
China footprint
Railway & Off-highway
Beijing Nankou SKF
Renewable Energy
SKF (Dalian)
Large Size
Bearing Factory
Harbin
Lubrication
Reelcraft
(Changzhou)
Shenyang
Urumqi
Baotou
Lincoln Lubrication
Equipment
(Changshu)
Wafangdian
Beijing
Dalian
Tianjin
Taiyuan
Qingdao
Jinan
Xi’an
Nanjing
Zhenzhou
Wuhu
Changzhou
Changshu
Chengdu
Wuhan
Pinghu ABBA
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CMD 2014
Shanghai
Ningbo
Changsha
Precision
SKF Actuation
System (Pinghu)
Pinghu
Industrial Drives
Xiamen
Kunming
Guangzhou
Hongkong
Shenzhen
Taipei
SKF (Dalian)
Medium Size
Bearing Factory
China strategic direction
Accelerate China development
Asset life cycle
growth
● Enhance local service
expertise and market
coverage
● Utilize SKF Solution
Factory infrastructure
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CMD 2014
Accelerating marketbased offerings
● Strengthen “local for local”
product offerings
● Develop segment-specific
platform offerings
Improved
competitiveness
● Localize sourcing and
production of key
components
● Enhance engineering
capabilities - product and
application engineering
5
Manufacturing
- Cost reduction programs
- Footprint
- Application specific offers
Manufacturing
Lean
manufacturing
Manufacturing
processes &
benchmarking
Manufacturing
footprint
Manufacturing
supply
optimization
• Technology review
• Review core KPIs
• Benchmark
• Balanced to demand
• Better service
• Cost efficiency
• Flexibility
• Value added
• Lean
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CMD 2014
Integrated cost
reduction
• Design review
• Purchasing
• Application specific
performance
Manufacturing footprint
2012
6%
14%
2016
30%
79%
13%
57%
Example: Spherical roller bearings
• Balancing the global manufacturing footprint based on
growth and demand is an ongoing exercise
• This covers all major product lines – bearings, lubrication
and mechatronics
© SKF Group
CMD 2014
Americas
Europe
Asia
Manufacturing supply optimization program
Objectives 2016
Improved service
< 5% availability failures
Sustainable
competitiveness
Standardize best-practices
Reduce inventory
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CMD 2014
Reduce manufacturing cost
Application specific performance market
New optimised designs that enable cost efficient solutions and deliver the right
performance. Penetrate the “mid-market” with top quality products, best adapted to
customers’ application specific performance needs
Electrical motor
High performance in noise & vibration
(internal geometry and grease)
Pulleys in elevators
Adapted sealing and lifetime
Attachment in agriculture
Medium deep groove ball bearing ISO-dimension
Improved sealing and adapted grease
Screws in air compressor
Optimized design
Cylindrical roller bearing ISO-dimension