Mini excavators - KHL Group

Components p27

Samoter p23

Miniexcavators

C O N S T R U C T I O N

p35

THE MAGAZINE FOR EUROPE’S CONSTRUCTION INDUSTRY www.construction-europe.comA KHL Group publication May 2014 Volume 25 Number 4

THE MMAAAGGGAAAZZINE FOORRR EEEUROPE’S CE CONSTRUCS C CTION INNNDDDUUUSSTRYCT wwwwwww.constru i

CE 05 2014 Front Cover.indd 1 28/04/2014 10:02:18

R

Find us online at www.cat.com/paving

facebook.com/CATPaving

youtube.com/CATPaving

CONFIDENCE

QEXC1769-02© 2014 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

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Full page.indd 1 28/04/2014 10:54:33

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CONTENTS

CONSTRUCTION EUROPE MAY 2014

EDITOR Sandy Guthriee-mail: [email protected]

direct tel: +44 (0)1892 786234

DEPUTY EDITOR

Helen Wrighte-mail: [email protected]

direct tel: +44 (0)1892 786209

EDITORIAL DIRECTOR

Paul Marsden BSc

EDITORIAL TEAM

Lindsey Anderson, Alex Dahm, Lindsay Gale,

Laura Hatton, Cristián Peters, Murray Pollok,

D.Ann Shiffler, Chris Sleight, Euan Youdale

LAW & CONTRACT CORRESPONDENTVirginie Colaiuta

CECE REPORT

Produced in co-operation with the

Committee for European Construction

Equipment

FIEC REPORT

Produced in co-operation with the

European Construction Industry

Federation

PUBLISHER James King

PRODUCTION AND CIRCULATION DIRECTOR

Saara Rootes

PRODUCTION MANAGER

Ross Dicksone-mail: [email protected]

Direct tel: +44 (0)1892 786245

DESIGN MANAGER

Jeff GilbertDESIGNER

Gary BrinklowDESIGN ASSISTANT

Grace Pullinger

PRODUCTION ASSISTANT

Louise Kingsnorthe-mail: [email protected]

Direct tel: +44 (0)1892 786246

SUPPORT SERVICES

Julie Wolstencroft

FINANCIAL CONTROLLER Paul BakerFINANCE DEPARTMENT

Gillian MartinCREDIT CONTROL Josephine Day

e-mail: [email protected]

Direct tel: +44 (0)1892 786250

BUSINESS DEVELOPMENT DIRECTORPeter Watkinson BA (Hons)

OFFICE MANAGER/EVENTS COORDINATOR

Clare Grante-mail: [email protected]

direct tel: +44 (0)1892 784088

CIRCULATION MANAGER

Hayley Gente-mail: [email protected]

direct tel: +44 (0)1892 786233

KHL TEAM

ADVERTISEMENT MANAGER

David Stowe, UK Head Office

Direct tel: +44 (0)1892 78 6217

[email protected]

AREA SALES MANAGER: BELGIUM, THE NETHERLANDSAlister Williams, UK Head Office

Direct tel: +44 (0)1892 786223

[email protected]

AREA SALES MANAGER: UKLynn Collett, UK Head Office

Direct tel: +44 (0)1892 786219

[email protected]

FRANCEHamilton PearmanTel: +33 1 45 93 08 58

[email protected]

GERMANY, AUSTRIA, SWITZERLANDSimon Battersby, UK Head Office

Direct tel: +44 (0)1892 786232

[email protected]

ITALYFabio Potestà

Tel: +39 010 570 4948

[email protected]

SPAINMike Posener, UK Head Office

Direct tel: +353 86 043 1219

[email protected]

SWEDEN, FINLAND, DENMARK, NORWAY Peter GilmoreTel: +44 (0)20 7834 5559

[email protected]

TURKEYEmre ApaTel: +90 (0)532 214 68 18

[email protected]

CHINACathy Yao

Tel: +86 10 6553 7678

[email protected]

JAPANAkiyoshi Ojima

Tel: +81 (0)3 3261 4591

[email protected]

KOREA CH ParkTel: +82 2 730 1234

[email protected]

AMERICASGary Hynes

Tel: +1 312 929 3478

[email protected]

MEMBER OF

ISSN 0964–0665© Copyright KHL Group 2014

Volume 25 Number 4 MAY 2014


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NEWS & BUSINESS 4

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FINANCE & CE BAROMETER 13

LAW & CONTRACT 17

FIEC 18

CECE 21

EQUIPMENT 43

SUBSCRIPTIONS 50

ON THE COVERA 2.6 tonne Bobcat E25 owned by R Durtnell & Sons. See mini excavator feature, page 35

REGULARSComponents

p27

Samoter p23

Miniexcavators


p35

THE MAGAZINE FOR EUROPE’S CONSTRUCTION INDUSTRY www.construction-europe.comA KHL Group publication May 2014 Volume 25 Number 4

THE MMAAAGGGAAAZZINE FOORRR EEEUROPE’S CE CONSTRUCS C CTION INNNDDDUUUSSTRYCT wwwwwww.constru i

I N T H I S I S S U E

The paper in this magazine originates from timber that is sourced from sustainable forests, managed to strict environmental, social,

and economic standards. The manufacturing mill has both FSC & PEFC certification, and also ISO9001 and ISO14001 accreditation.

KHL OFFICESUNITED KINGDOM (HEAD OFFICE)KHL Group LLCSouthfields, Southview Road, Wadhurst, East Sussex TN5 6TP.

Tel: +44 (0)1892 784088 Fax: +44 (0)1892 784086 e-mail: [email protected]

www.khl.com/ce

AMERICAS

KHL Group Americas LLC3726 East Ember Glow Way, Phoenix, AZ 85050, USA.

Tel: +1 480 659 0578 Fax: +1 480 659 0678 e-mail: [email protected]

CHINA

KHL Group ChinaRoom 768, Poly Plaza, No.14, South Dong Zhi Men Street,

Dong Cheng District, Beijing 100027, P.R. China.

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KHL SALES REPRESENTATIVES

FEATURESSAMOTER 23The 29th edition of the Italian construction equipment exhibition takes place from 8 to 11 May, and this time it is teamed with the Asphaltica road paving technology event. The 2011 Samoter trade show attracted 98,000 visitors from 110 countries

COMPONENTS 27Clearly the right components are always a crucial element for any manufacturer

of constuction equipment, with quality and cost among the key factors. Sandy Guthrie looks at some of the latest innovations that could help make a new machine stand out from the crowd

MINI EXCAVATORS 35Many manufacturers are forecasting growth in mini excavator sales this year and are keen to ensure customers get value for money when investing in new machines. Helen Wright talks to the companies at the centre of the sector to find out more

CE 05 2014 Contents.indd 3 28/04/2014 10:20:59

4

NEWS


2014Samoter 2014May 8 - 11, 2014Verona, Italywww.samoter.com

APEX (Access Platform Exhibition)June 24 - 26, 2014Amsterdam, The Netherlandswww.apexshow.com

International Rental Exhibition (IRE)June 24 - 26, 2014Amsterdam, The Netherlandswww.ireshow.com

Hillhead 2014June 24 - 26, 2014Buxton, UKwww.hillhead.com

EuroplatformSeptember 25, 2014 Berlin, Germanywww.europlatform.info

ICEF – International Construction Economic Forum October 30-31, 2014London, UK www.icef.biz

World Demolition Summit November 6, 2014Amsterdam, NL www.demolitionsummit.com

ALH Conferece & AwardsNovember 11, 2014Miami, USwww.khl.com/alh-ca

Bauma China 2014November 25 - 28, 2014Shanghai, Chinawww.bauma-china.com

bC India 2014December 15 - 18, 2014Delhi, Indiawww.bcindia.com

2015Intermat 2015April 20 - 25, 2015 Paris, Francewww.intermat construction.com

EVENTS DIARY

Construction output grows again according to EurostatConstruction output grew 6.7% year-on-year in the Eurozone in February, and was up 5.5% across all member states (EU28), according to the latest data from Eurostat – the statistical arm of the European Union.

The figures continued the strong start to the year reported in January, and marked a break in the long-standing trend of falling year-on-year construction output that dominated 2013.

The strongest year-on-year increases in February were registered in Slovenia (33.1%), Hungary (28.3%), Spain (23.9%), Poland (14.4%) and Germany (14.1%). The largest decreases were seen in Romania (14.7%), Portugal (11.5%) and Italy (7.9%).

In terms of sectors, building construction output increased 6.6% in the Eurozone and 5.9% in the EU28 in February this year compared with February 2013. Civil engineering output was up 7.6% in the Eurozone and 3.9% in the EU28. ce

Optimism for European equipment marketData from Off-Highway Research suggests that restrained growth is possible for Western Europe over next five years

S ome “cautious optimism” is being seen in the Western European construction equipment market despite the latest data falling to 22%

below the 10-year average, with a period of “restrained growth” forecast across the region for the next fi ve years.

Data from Off-Highway Research has found that while the 10-year historical average level of sales in the region had been in the order of 142,000 units a year, the forecast this year suggested that nobody saw the industry getting back to that level in the next five years, with it struggling to around 125,000 units.

Off-Highway Research said that the market, unable to sustain the strong recovery of 2010 and 2011, posted declines of 4% in 2012 and 6% in 2013. It said that many suppliers believed the bottom had been reached in 2013, and “a cautious note of optimism was evident” during discussions held by Off-Highway Research with manufacturers and dealers in the compilation of its Annual Review.

It said it now appeared likely that future demand

would undergo a period of restrained growth across the region for the next five years, settling at around 120,000 to 125,000 units per year.

There was a warning, however, that hopes of a more robust resurgence in demand would have to be tempered by several considerations, notably the disparate economic forecasts for several of the region’s markets, “which are doing little to bolster the confidence of potential equipment buyers”.

Off-Highway Research said, “Business confidence is absolutely fundamental to the long-term health of the industry, and political leaders will need to demonstrate that they can solve the economic challenges facing Europe before business confidence can be fully restored.

“Of equal concern to suppliers of construction equipment is the fact that there appears to be an increasing dearth of large infrastructure projects throughout much of the region or, perhaps more frustratingly, unwillingness on behalf of governments to sanction the requisite funds to implement them.” ce

A lack of relevant information is being blamed for public opposition to large infrastructure projects in the UK, along with a failure to tackle residents’ legitimate concerns, and using the wrong decision-makers and spokespeople.

Research commissioned by the CBI (Confederation of British Industry) looked at the reasons behind public opposition which can often result

in large infrastructure projects – such as new roads, rail, power generation and aviation capacity – being delayed substantially.

The research found that the public needed to be convinced that tough choices on upgrading national infrastructure were necessary.

The CBI said its poll of more than 1,000 members of the public by Ipsos MORI showed that the government

and businesses needed to do a much better job of explaining the UK’s infrastructure investment needs, shifting the focus to why it mattered locally and what benefits such projects would bring.

It revealed that 65% agreed that decisions should be delayed so that the public’s views could be heard properly, even if this meant that infrastructure weaknesses were not tackled when they need

to be. That compared with only 24% who did not think decisions should be delayed.

Nearly half of respondents said they were satisfied with the state of national infrastructure, with only a quarter (27%) dissatisfied.

However, according to the World Economic Forum, the UK ranks only 28th in the world when it comes to the quality of infrastructure. ce

UK infrastructure delays examined

CE 05 2014 News.indd 4 28/04/2014 10:22:26

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NEWS

The Russian federal government is reported to have approved the construction of the third runway of Moscow’s Domodedovo airport, at a cost of RUB13 billion (€264 million). Research firm PMR said that the airport’s management had been seeking approval and funding for the project for more than three years. One of the two existing runways is in need of repair as it has not been overhauled in 20 years, the other runway having been improved in 2007. It was said that the airport was unlikely to be able to cope with the passenger flow on just one runway while repair work was done, so a third runway was suggested. PMR expects the results of the tender for the construction of the new runway to be known within a few weeks. Civil engineering company Transstroy, which belongs to the Russian businessman Oleg Deripaska, is said to be interested in the contract.

■ VOLVO UPVolvo Construction Equipment reported net revenues of SEK13.4 billion (€1.47 billion) for the first three months of 2014, up 10% compared to the same period last year. First quarter operating income also increased to SEK647 million (€71.1 million), compared to SEK500 million (€54.9 million) in 2013. The manufacturer said it had seen higher sales of smaller equipment during the period, while demand for large equipment remained relatively low.

■ FLAT CATCaterpillar reported revenues of US$13.2 billion (€9.5 billion) for the first quarter of 2014 – a flat result compared to 2013. Net profit for the period was up 5% year-on-year to US$922 million (€666 million). The modest overall figures masked a jump in revenues from the company’s construction industries division, where sales were up 20% to US$5.06 billion (€3.65 billion), fuelled by a 36% increase in North American sales to US$2.09 billion (€1.51 billion).

■ CEMENT MERGERThe world’s two largest construction materials producers, Lafarge and Holcim, have proposed to merge in an all-share deal. The transaction would create a €32 billion per year company with EBITDA of €6.5 billion and a presence in 90 countries. The deal, which has been approved by both companies’ boards and their core shareholders, face regulatory hurdles, particularly in Europe, where there are already various national concerns about the lack

of competition in the cement and aggregates sector. The companies acknowledged that they would have to sell businesses to make the transaction acceptable to competition authorities.

■ BID REJECTEDCrushing and screening equipment manufacturer Metso has rejected an all-share takeover offer from UK engineering company Weir Group. Weir made an approach to Metso at the end of March to open discussions on a possible merger. Under the proposal, Metso shareholders would have received 0.84 Weir stocks for every share they held, resulting in Metso shareholders owning 37% of the combined entity.

■ ‘UNSATISFACTORY’Berndt Brunow, chairman of Finnish contractor Lemminkäinen said its 2013 operational results were “extremely unsatisfactory”. It reported an operating loss of €90.9 million, compared to profit for 2012 of €50.4 million. The result was affected by fines of €65.6 million from a cartel case it is currently appealing, and write-downs of €20.1 million on commercial properties. Lemminkäinen’s president and CEO Timo Kohtamäki, as well as CFO Robert Öhman, left the company this month.

■ MOSCOW PROJECTContractor LSR Group has been awarded a €568 million contract to redevelop a derelict industrial zone in Russia’s capital, Moscow, building a new 1.57 million m2 residential district.

BUSINESS NEWSSlovak cartel fines upheldIn the largest cartel case in the history of Slovak competition law, a judgement made in 2006 has been upheld by the Supreme Court of the Slovak Republic, and the six construction companies involved have had to pay a total of nearly €45 million.

There is no opportunity for a further ordinary appeal, and the conclusions set out by the Antimonopoly Office of the Slovak Republic have been upheld.

In 2006, the Antimonopoly Office imposed the fine on Strabag, Doprastav, Betamont, Inžinierske stavby, Skanska, Mota-Engil, and Engenharia E Construcao, for concluding a cartel agreement.

Two years later the Regional Court in Bratislava, Slovakia, annulled the decision of the Antimonopoly Office. However, in December 2013, the Supreme Court overruled the decision of the Regional Court and dismissed all actions made by the construction companies, upholding the conclusions of the Antimonopoly Office.

The companies had to pay the fines within 30 days from 30 March, the day the judgement became valid.

In 2006, the Antimonopoly Office concluded the companies had engaged in a cartel agreement, violating the provisions of the Act on Protection of Competition and Art, in the Treaty on the Functioning of the European Union.

The Antimonopoly Office said illegal conduct had been associated with the tender for the execution of works for the construction of the D1 highway from Mengusovce to Jánovce – the stretch from 0 to 8 km. It said the companies co-ordinated their behaviour in this tender.

The Antimonopoly Office received an indication of possible anti-competitive conduct from the provider – Národná diaľničná spoločnosť. Suspicions of anti-competitive conduct committed by bidders in the tender were raised by the high prices they submitted.


Reshuffle at CNH Election adviceCNH Industrial CEO

Richard Tobin has assumed responsibility as brand president for Case Construction Equipment and New Holland Construction Equipment.

Tobin takes over from Mario Gasparri, the former president of CNH’s construction equipment businesses, who will remain with the company and take over responsibilities for all of CNH Industrial’s operations in South Africa.

FIEC has issued a 10-point manifesto for action ahead of this month’s European elections.

FIEC president Thomas Schleicher said, “Our industry would be able to play a decisive role in relaunching EU economic growth and in creating jobs, provided the EU and national governments allocate the required resources to achieve their ambitions and reduce existing barriers.” There are more details in the FIEC column on page 18.

Gasparri had been head of the CNH construction equipment business since April 2012.

Tobin has been group COO of Fiat Industrial and CEO of CNH. He joined CNH in 2010 as chief financial officer. ce

Richard Tobin

CE 05 2014 News.indd 5 28/04/2014 10:22:40

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NEWS


Road and rail projects could be driving force Mixed fortunes for Russia, and Central and Eastern European construction markets

I nvestments in civil engineering and infrastructure, or lack of them, are proving to be the main driving forces behind prospects for construction markets in Russia, Central and Eastern Europe, according to fi ndings from European market research fi rm PMR.

In Russia, it said the industry’s slowdown looked set to continue this year after contracting 1.5% year-on-year in 2013. PMR attributed the slowdown to a poor performance in civil engineering, as new developments continued to be postponed.

Meanwhile, it said road and rail projects looked set to drive construction in central Europe. It said Bulgaria’s construction market was on the way to positive growth after a consolidation period in 2011 to 2013. Civil engineering is expected to lead, with €5.6 billion to be invested in 800km of motorways and 900km of expressways by 2020.

It said the Czech Republic would start seeing the rewards in 2014 of civil engineering construction projects launched in 2013. PMR felt roads and railway development would lead this growth, as work began on a government-approved nationwide strategy of infrastructure improvements, with an annual spend of at least €2.6 billion by 2020.

Slovakia is set to receive €3.9 billion in EU funds for transport infrastructure works between 2014 and 2020, according to PMR. It said €850 million was to be spent on rail construction while €1.6 billion has been allocated to road construction. In addition, Slovakia is to receive €743 million from the EU’s new Connecting Europe Facility fund.

The Hungarian construction market is also predicted to grow 10% in 2014, with civil engineering and non-residential most likely to drive the industry up till 2019.

Finally, PMR said construction in heavy industry and railway development looked set to propel Slovenia’s construction industry in the years ahead. Its construction output dropped by 5% in 2013 and is expected to fall by up to 3% in 2014, though, according to PMR, macroeconomic forecasts show encouraging signs of improvement in 2015. ce

ICEF 2014 awards open for entriesEntries are now being invited for the 2014 International Construction Economic Forum (ICEF) awards, with a closing date of 30 June, and the winners will be announced at the ICEF gala dinner on the evening of 30 October.

ICEF will run from 30 to 31 October, 2014, at the Millennium Gloucester Hotel in London, UK. The conference, networking event and awards dinner will focus on core themes for internationally active construction contractors.

There are four categories, including the prestigious International Construction Project of the Year, for schemes of global significance with a value of more than US$100 million (€72 million). In addition to this award, which was won last year by Brookfield Multiplex’s JW Marriott Marquis hotel in Dubai, UAE, a further category has been added for projects on a more modest scale.

The International Construction Award for Innovative Smaller Schemes is for construction projects with an innovative solution or approach from the contractor, worth US$100 million (€72 million) or less. The award is designed to recognise that construction performance can be improved with gains in safety, sustainability and efficiency on any size of project.

In addition, there are two ICEF awards recognising advances in the construction equipment sector. The ICEF Construction Equipment Innovation Award is for new or cutting-edge construction machinery, while the ICEF Construction Equipment Design Innovation Award is for ground-breaking design in equipment components or sub-systems, which deliver a significant benefit to the final machine.

More details of the awards and the downloadable entry form can be found in the Awards section of the ICEF website www.khl-group.com/events/icef

Also, a smart phone can be used to scan the QR code to go straight to the page.

KHL.COM

This month’s podcast for Construction Europe will be available online within a few days of the magazine’s publication. To listen, go to: www.khl.com/audio-podcasts

Tata Steel raises its profile in UKTata Steel has opened the UK’s largest profiling centre for steel plate, and is increasing its processing capacity by about 50%.

The European operations of Tata, which has its headquarters in Mumbai, India, are in the UK and the Netherlands.

The new profiling centre is at its Steelpark plant in Wednesfield, West Midlands. Mick Horan, director of heavy gauge decoiling and

plate profiling, said that by relocating profiling from other Tata sites, it was increasing its capacity from 32,000 tonnes a year to 47,000 tonnes. He said the £3.1 million (€3.8 million) investment was “to respond better to customer requirements”.

Tata said the profiling centre transformed steel plate into shaped and machined components, from high-volume production runs for off-

road vehicle wheels and booms for earth-moving equipment, to large one-off components for construction projects and specialist engineering applications.

The company has invested in two new high-definition plasma profiling machines which it said would reduce lead times and increase responsiveness.

Paul Steele, managing director of Tata Steel Distribution UK & Ireland, said that having both its mill and processing operations in the UK and Ireland “means that not only do we know our products and services inside out, but we can offer customers consistent quality and repeatability”. ce

Tata Steel’s profiling centre has an annual capacity of 47,000 tonnes

CE 05 2014 News.indd 6 28/04/2014 10:22:55

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TO U G H W O R L D. TO U G H E Q U I P M E N T.

TOUGH WORLDTOUGH EQUIPMENT

LiuGong has been selling machines in Europe for more than seven years. In June 2012 LiuGong

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Full page.indd 1 28/04/2014 10:55:08

Hitachi Construction Machinery (Europe) NV www.hcme.comSiciliëweg 5 – haven 5112 1045 AT Amsterdam The Netherlands T: +31-(0)20 44 76 700 F: +31-(0)20 33 44 045

The technological choice

Hitachi is renowned for the reliability and versatility of its mini excavator range.

The new Zaxis-5 models benefit from several technologically advanced features

that deliver unrivalled levels of productivity and efficiency. Take the advanced

energy-saving system: it combines the ECO mode, auto idle and electric governor

features to significantly reduce fuel consumption. This has a huge impact on

profitability to prove that Hitachi is the technological choice.

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WORLD NEWS


USUS manufacturer Astec Inc has acquired Telestack, an Omagh, UK-based manufacturer of material handling systems for the port, aggregate and mining industries. The value of the deal is US$36 million (€26 million). Astec said it expected to see synergies between Telestack and its own aggregates product lines, with benefits to both companies. Astec CEO Benjamin Brock said, “Telestack will help us provide a broader product line to the infrastructure, mining and energy industries, in addition to material handling at ports around the globe. From 1999 to today, Telestack has sold equipment into six continents.”

SINGAPORESingapore’s Land Transport Authority (LTA) has awarded a string of contracts worth SG$1.15 billion (€664 million) for the expansion of the city state’s underground rail network. The contracts are for the new Thompson Line, a planned 30km driverless metro line with 22 stations. It will run north to south through the city from Woodlands through the central business district area and to Marina Bay. Contractors RSEA Engineering Corporation, Eng Lee Engineering, Wai Fong Construction, Daewoo Engineering & Construction and Hock Lian Seng Infrastructure won all or part of the civil works contracts.

QATARHabtoor Leighton Group (HLG), the 45%-owned Middle East subsidiary of contractor Leighton, has reached a financial settlement over a contract dispute in Qatar. HLG began legal action last year over money owed by a client in Doha for a construction project – reported to be the US$325 million (€235 million) Doha City Centre Expansion project, which involves the construction of five hotel towers. The contractor said the Qatari client had agreed to repay 40% of the funds it owed HLG, with the full balance to be repaid over 18 months following the handover of the project to the client. Meanwhile, HLG, in a joint venture with Al Jaber Engineering, has been awarded a QAR6.15 billion (€1.23 billion) contract to design and construct a 56km road in Qatar. Awarded by Qatar’s public works authority, Ashghal, the contract is for package three of the New Orbital Highway and Truck Route near Doha. This part of the highway connects the Mesaieed industrial area and new port projects to Salwa Road, including five main interchanges. Design and construction is expected to take 36 months to complete.

IRAQThe Islamic Development Bank (IDB) has approved a US$217 million (€157 million) loan to support construction of a 1,300km road in Iraq, connecting it to neighbouring countries. Expressway No 1 is planned to begin from the city of Umm ul Qasr in the southern Iraqi Province of Basra. The IDB said the total cost of the project was estimated at US$1 billion (€724 million), of which its funds covered 22%, or around 258km. The other major backers of the project are the World Bank (financing 32% of the project), the Iraqi government (29%) and other partners (17%).

WORLD IN BRIEF

SOUTH KOREA

Fines for canal colluderswhere many of the same chaebols (conglomerates) colluded on price.

Prior to his 2008 to 2013 term in office, Lee was in the 1970s and 1980s chairman and CEO of Hyundai Engineering & Construction (E&C) – one of the companies named in both scandals.

Four companies will face fines in excess of KRW10 billion (€6.88 million) – Daewoo E&C, SK E&C, Daelim Industrial and Hyundai E&C. Lesser

penalties were imposed on Samsung C&T, Hyundai Amco, GS E&C, Hyundai Development, Dong-A Industrial, Dongbu and Halla E&C.

In addition, five unnamed senior executives from among these companies are expected to face penalties. They are said to have met in a restaurant in 2009 to discuss bids and the division of work on the project through collusion on bids. ce

South Korea’s competition authority, the Fair Trade Commission (FTC), has fined nine construction companies a total of KRW99.1 billion (€68 million) for price collusion and bid rigging on the country’s canal construction project.

The scandal has many parallels with the Four Rivers Restoration project, also a pet scheme of former President Lee Myung-bak,

GLOBAL

Equipment sales to grow 5% in 2014GLobal industry set to come out of second downturn of double-dip recession

S ales of construction equipment in China, Europe, India, Japan and North America are set to grow 5% in unit terms this year, according to specialist consultant Off -Highway Research.

It said all five key regions were expected to see increased equipment sales this year, with Japan leading the way in percentage terms. The last time this happened was 2004.

The industry fell 1% in 2013, with sales in these territories totalling 713,363 machines. This year is expected to see more than 747,000 pieces of construction equipment sold in these five major markets.

Despite two years of declines, China remained the biggest construction machinery market in the world in unit terms, with 301,200 pieces of equipment sold last year. Off-Highway Research forecast a 1.5% increase in volumes in 2014 to 305,605 machines.

A more compelling good-news story was North America, where Off-Highway Research expected a fifth consecutive year of growth this year. A 5.7% increase in unit sales is expected to take the equipment market to 162,660 machines in 2014.

Japan, meanwhile, is expected to see a fifth consecutive year of double-digit growth, with sales rising 12% in 2014 to 101,718 machines. This would be the highest the market has been for some 20 years.

Finally, Off-Highway Research said equipment sales in India were expected to return to growth in 2014 after two years of declines, with a rise of 8.4% to 60,655 machines.

Overall, Off-Highway Research’s figures indicated the global market was returning to growth after the second downturn of a double-dip recession. ce

A consortium headed by Spanish contractors ACS and FCC has been awarded a €3.9 billion contract to expand the Lima Metro in Peru. The contract is to build Line 2 of the metro system as well as a connection between Line 4 and the Peruvian capital’s airport, with a total of 35 underground stations along 35km of tunnel. Construction is expected to take five years, after which the consortium will operate the lines for 30 years. The Nuevo Metro de Lima consortium is headed by ACS subsidiaries Dragados and Iridium (which holds 25% of the contract), and by FCC subsidiary Vialia (19%), together with Salini-Impregilo.

CE 05 2014 World News.indd 9 28/04/2014 10:24:03

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WORLD NEWS


CANADAA partnership made up of Bechtel, Barnard Construction and EllisDon has been awarded a CA$1.4 billion (€905 million) contract to build the Keeyask Generating Station on the lower Nelson River in northern Manitoba, Canada. BBE Hydro Constructors was awarded the contract by Manitoba Hydro. Work is expected to start on the project later this year. The Keeyask Generating Station will have a 695MW capacity and produce on average 4,400GW hours of electricity, enough to power 400,000 homes. The plant will begin power production in 2019 and will be fully completed by 2020.

KENYAThe European Investment Bank (EIB) has approved funding worth €200 million to Kenya to support the Lake Turkana Wind Power project. The €600 million power project is the largest single wind farm in Sub-Saharan Africa. Lake Turkana is expected to generate 20% of Kenya’s power and provide 300MW of reliable, low cost wind power to the Kenyan national grid. The project, located in remote northern Kenya, is the largest private investment in Kenya and includes 365 wind turbines, each capable of generating 850kW, as well as associated power and road connections.

QATARA €850 million contract to build a highway in Qatar has been awarded to a joint venture led by QDVC, a company comprising 51% local developer Qatari Diar and 49% Vinci Construction Grands Projects, and including Qatari Bin Omran Trading and Contracting. The JV has been awarded the second works phase of the 200km New Orbital Highway, work on which starts in May and is scheduled for completion in 36 months. The road will skirt the capital city of Doha and includes 47km of motorway, six viaducts, 17 bridges and underpasses and a 320m cut-and-cover tunnel.

BURUNDIThe World Bank has approved a US$100 million (€72 million) grant to the Republic of Burundi to finance a 48MW hydropower project. The funds will support construction of two run-of-the-river hydro stations – one on the Jiji River and the other on the Mulembwe River, located about 5km apart. The Jiji is a tributary of the Mulembwe River. On Jiji River, plans are for a 13.5m high concrete dam to be built, producing an 80,000m3 reservoir. On the Mulembwe River, a 14m high concrete dam will be built to hold 40,000m3 of water.

INDONESIADevelopment of the 320MW Sarulla Geothermal Power Development Project in North Sumatra, Indonesia, has been supported by a US$1.17 billion (€847 million) loan package from international investors. The Asian Development Bank provided US$350 million (€253 million), while six commercial banks – Bank of Tokyo-Mitsubishi UFJ, ING Bank, Mizuho Bank, National Australia Bank, Société Générale, and Sumitomo Mitsui Banking Corporation – are also invloved in financing the 30-year energy sales deal.

WORLD IN BRIEF

CHINA

€434 million for infrastructureThe World Bank has approved loans totalling US$600 million (€434 million) to support upgrades to public transport services in two major cities in China’s north-eastern Heilongjiang Province.

The funds will also be used to expand

railway capacity along a key transport corridor in Heilongjiang, and increase gas usage in Shanxi Province.

Harbin and Mudanjiang in Heilongjiang Province are set to benefit from the Heilongjiang Cold Weather Smart Public Transport System Project,

financed in part through a loan of US$200 million (€145 million).

This project aims to improve pavement conditions, install bus stops, provide heated indoor bus waiting facilities, construct passenger hubs, terminals, bus depots, and facilities for maintenance.

The HaJia Railway Project, also in Heilongjiang Province, will be boosted by a US$300 million (€217 million) loan. This will support a construction of a 343km double-track, electrified railway line between the cities of Harbin and Jiamusi.

The project will include construction of 12 new stations and upgrading the existing Jiamusi one.

Finally, the Shanxi Gas Utilisation Project will be supported by a loan of US$100 million (€72 million). ce

GLOBAL

Cement demand to pass €15 billion by 2017Asia Pacific expected to remain largest consumer of cement and concrete additivesAverage growth of 9.3% a year has been forecast for global consumption of cement and concrete additives, with demand set to hit US$21.2 billion (€15 billion) in 2017, according to research company Freedonia.

The Asia Pacific region is expected to remain the largest consumer of cement and concrete additives in Freedonia’s data set, with demand expected to increase 9.2% a year, reaching US$10.6 billion (€7.67 billion) by 2017.

But the strongest growth between 2012 and 2017 is forecast for Africa and the Middle East, where increases of 10.6% a year are expected, reaching a value of US$1.37 billion (€992 billion) by 2017.

In Central and South America, annual demand is expected to increase 10.3%, reaching US$633 million (€458 million) by 2017, while demand in North America is forecast to jump 10% a year, reaching US$4.12 billion (€2.98 billion) by 2017.

Consumption in Eastern Europe is forecast to see 9.2% growth between 2012 and 2017, reaching a value of US$1.38 billion (€999 million), and Western Europe is expected to see 7.8% annual growth reaching US$3.15 billion (€2.28 billion).

Freedonia said growth in cement use in the US, Italy, Spain and several other developed markets would rebound as construction markets recovered from recent disastrous periods, fuelling above-average gains for additives.

In contrast, it said the construction markets of many developing countries were not affected – or much less so – by the recent economic downturn. ce

US contractor Crane Rigging and Rental Corp of Lockport used two Terex AC 350/6 and Terex AC 500-2 all-terrain cranes to support construction of a new dry dock on the US side of the Niagara Falls. An old power station site was chosen for the US$32 million (€23 million) project for the dock for the Maid of the Mist ships. The new dry dock has two platforms – one at the top of the gorge and a second alongside the Niagara River.

CE 05 2014 World News.indd 10 28/04/2014 10:24:16

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FINANCE

13CONSTRUCTION EUROPE MAY 2014

Mergers lift construction

A pril saw the announcement of the most signifi cant merger

in the construction industry since the merger of SGE and Groupe GTM in 2001 to form Europe’s largest contractor, Vinci.

The proposed all-share “merger of equals” between Lafarge and Holcim would create by far the largest cement and aggregates company in the world, with annual revenues in the region of €32 billion.

Although both boards have approved the deal and say they have secured the agreement of core shareholders, there are still formidable hurdles. There would have to be significant divestments to satisfy competition concerns – figures of €4 billion of divestments are being bandied about.

Although both companies have recognised they will have to shed businesses, there could still be opposition from competition authorities around the world. Unfortunately, the

cement and aggregates industry is no stranger to prosecutions for anticompetitive behaviour and operating cartels.

On top of this, there are several countries where both Holcim and Lafarge operate in which authorities are already taking the view that the industry is over-consolidated and harming competition. The UK is one example where this issue has been rumbling on for several years.

However, within days of the merger announcement, Brazil’s anti-trust regulator Conselho Administrativo de Defesa Econômica (CADE) said it would

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Company Currency Price Price Change Change at start at end (%)CEC Index 195.72 199.42 3.70 1.89%Acciona € 59.30 57.98 -1.32 -2.23%ACS € 26.69 29.73 3.04 11.39%Astaldi € 6.84 7.66 0.83 12.07%Balfour Beatty UK£ 2.78 2.90 0.13 4.57%Ballast Nedam € 9.37 8.91 -0.46 -4.91%Bam Group € 4.23 3.89 -0.34 -8.04%Bauer € 18.85 18.19 -0.67 -3.53%Bilfinger € 88.86 90.48 1.62 1.82%Bouygues € 29.54 29.21 -0.34 -1.13%Carillion UK£ 3.45 3.70 0.25 7.27%Eiffage € 52.08 53.47 1.39 2.67%FCC € 15.68 15.53 -0.15 -0.96%Ferrovial € 15.06 15.61 0.55 3.65%Hochtief € 63.60 64.27 0.67 1.05%Salini Impregilo € 4.88 4.88 0.00 0.00%Keller Group UK£ 10.31 10.34 0.03 0.29%Kier UK£ 16.57 17.17 0.60 3.63%Lemminkäinen € 12.84 14.40 1.56 12.15%Morgan Sindall UK£ 7.69 7.75 0.06 0.78%Mota Engil € 5.68 5.24 -0.44 -7.74%NCC (B) SEK 221.70 222.40 0.70 0.32%OHL € 30.23 31.09 0.86 2.84%Peab (B) SEK 43.45 47.66 4.21 9.69%Sacyr Vallehermoso € 4.47 4.46 -0.01 -0.27%Skanska (B) SEK 143.80 143.70 -0.10 -0.07%Strabag SE € 19.04 19.50 0.46 2.42%Taylor Wimpey UK£ 1.16 1.08 -0.08 -7.20%Tecnicas Reunidas € 38.26 41.22 2.96 7.74%Trevi Group € 7.89 8.20 0.31 3.93%Veidekke NOK 59.25 63.50 4.25 7.17%Vinci € 53.13 53.93 0.80 1.51%YIT € 7.22 7.53 0.31 4.29%Period: Week 12 - 16

force asset sales equivalent to 24% of the country’s cement capacity to encourage competition. The biggest impact will be for Brazilian companies Votorantim, Inter Cement and Itabria. Holcim and Lafarge will also be affected.

So divestments will definitely take place, and it remains to be seen if they are piecemeal sales, or whether Lafarge and Holcim will seek to spin-off all the assets they need to dispose of in a single transaction. The latter approach looks like it would be quicker and cleaner, and it may be feasible if a private equity investor can be found or if the new company could be launched by way of an

CONTRACTORS

EQUIPMENT MANUFACTURERS

Company Currency Price Price Change Change at start at end (%)CEE Index 252.37 261.47 9.10 3.61%Astec Industries US$ 45.07 42.36 -2.71 -6.01%Atlas Copco (A) SEK 176.90 191.10 14.20 8.03%Bell Equipment ZAR 18.45 17.50 -0.95 -5.15%Caterpillar US$ 97.39 102.93 5.54 5.69%CNH Industrial € 7.89 8.09 0.20 2.47%Deere US$ 89.84 93.15 3.31 3.68%Doosan Infracore WON 14300 13300 -1000 -6.99%Haulotte Group € 15.02 13.63 -1.39 -9.25%Hitachi CM YEN 1903 1911.00 8 0.42%Hyundai Heavy Industries WON 206000 207500 1500 0.73%Kobe Steel YEN 134 133 -1 -0.75%Komatsu YEN 2030 2152 122 6.01%Kubota YEN 1310 1343 33 2.52%Manitou € 11.82 12.11 0.29 2.45%Manitowoc US$ 32.57 30.98 -1.59 -4.88%Metso € 22.82 28.97 6.15 26.95%Palfinger € 28.96 28.50 -0.46 -1.59%Sandvik SEK 88.60 92.75 4.15 4.68%Tadano YEN 1292 1244 -48 -3.72%Terex US$ 43.71 41.87 -1.84 -4.21%Volvo (B) SEK 101.30 103.40 2.10 2.07%Wacker Neuson € 11.82 12.44 0.62 5.28%Period: Week 12 - 16

The prospect of a merger between Lafarge and Holcim drove Construction Europe’s share index to its highest since late 2007. Chris Sleight reports

CE 05 2014 Finance.indd 13 28/04/2014 10:27:03

FINANCE

Company Currency Price Price Change Change at start at end (%)CEM Index 157.72 166.02 8.30 5.26%Buzzi Unicem (Ord) € 13.22 12.81 -0.41 -3.10%Cemex (CPO) MXP 17.05 17.07 0.02 0.12%Cimpor € 2.87 3.34 0.47 16.34%CRH € 19.56 20.95 1.39 7.11%Heidelberg Cement € 61.38 62.01 0.63 1.03%Holcim CHF 70.65 78.95 8.30 11.75%Italcementi € 8.52 8.92 0.40 4.76%Kone (B) € 28.91 30.41 1.50 5.19%Lafarge € 54.21 66.07 11.86 21.88%Saint-Gobain € 42.50 43.93 1.43 3.37%Schindler (BPC) CHF 127.70 129.90 2.20 1.72%Schneider Electric € 64.25 65.39 1.14 1.77%Titan Group (Common) € 25.31 21.50 -3.81 -15.05%Vicat Group (Common) € 58.25 60.84 2.59 4.45%Wienerberger € 13.71 13.31 -0.40 -2.90%Wolseley UK£ 33.60 32.58 -1.02 -3.04%Period: Week 12 - 16

MATERIALS PRODUCERS

(CEM) index was up 5.26% between weeks 12 and 16.

At 166.02 points at the end of week 16, the CEM was the highest it has been for almost seven years. During week 13, it broke through the 170 point barrier for the first time since August 2007, taking it to within about 9% of the all-time high of 187 points, set in July 2007.

Growth in other parts of the construction industry pushed the CET Index for the whole sector up 3.78% over the four-week period to 203.58 points. It was the first time the CET has been above 200 points since November 2007.

EQUIPMENT SHARESThe proposed Holcim-Lafarge merger was such big news that it overshadowed another significant development in the equipment sector. UK engineering company Weir Group made an unsolicited offer to take over Metso in an all-share deal at the start of April. Although Metso ultimately rebuffed the offer on the grounds it did not reflect the company’s true value, it had the effect of pushing up the company’s share price by more than 25%.

At the time of writing, it

was unclear how this would play out. Weir’s statement in response to the rebuttal voiced disappointment, but did not rule-out an improved offer.

Metso’s board may come under pressure, having turned down one offer, to find ways of demonstrating it can deliver better value to shareholders. It may have to go out and find a suitor that would pay a bigger premium for the company or look at other ways of sustaining its elevated share price, such as a buy-back or special dividend.

Metso’s surge was, of course, the stand-out performance in the equipment sector between weeks 12 and 16. However, it was a generally good four weeks for the sector. Caterpillar for example saw a 5.69% increase in its share price, which was equivalent to about a 3 point rise for the CEE Index as a result of the company’s high capitalisation.

Overall the CEE Index was up 3.61% over the four-week period to 261.47 points. Again, this was a notable high-tide mark for the industry. You would have to go back to late 2007 to see the CEE Index at a similar level.

initial public offering (IPO) – a stock market floatation.

Given the competition concerns and debt burden in the heavy materials sector, it seems unlikely that one of the other current major players – the likes of Heidelberg, CRH, Cemex and so on – would make a bit for such a big business.

But whatever the concerns, the announcement of the merger gave the construction sector something of a lift. The announcement of the merger added about €7 billion to the combined stock market valuation of Holcim and Lafarge. In terms of the wider impact, the Construction Europe Materials

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FINANCE


Life was relatively subdued for contractors‘ shares by comparison, with the CEC Index for the sector rising 1.89% to 199.42 points. The stand-out performance came from Lemminkäinen – up 12.15% between weeks 12 and 16.

This was a little surprising given that the company announced results that its own chairman described as “extremely unsatisfactory.” However, this announcement came with the news that both Lemminkäinen’s CEO and CFO would leave the company, so the hike in its share price could be seen as expectation of a turnaround in the Finnish contractor’s fortunes.

Elsewhere in the sector, companies mostly saw their share prices rise in April. There were a few losses, most notably for Bam, Mota Engil and Taylor Wimpey, but these were of the order of -7% to -8%, so nothing disastrous.

CURRENCIESApril was a period of moderate decline for the Euro, which lost ground against the UK Pound in

RESERVE CURRENCIES Beginning End Change Change of period of period (%)British Pound 0.8365 0.8225 -0.0140 -1.67%Japanese Yen 141.50 141.23 -0.27 -0.19%Swiss Franc 1.2197 1.2176 -0.0021 -0.17%US Dollar 1.3797 1.3805 0.0008 0.06% EUROPEAN CURRENCIES British Pound 0.8365 0.8225 -0.0140 -1.67%Bulgarian Leva 1.9562 1.9558 -0.0004 -0.02%Czech Koruna 27.462 27.472 0.010 0.04%Danish Krone 7.4642 7.4663 0.0021 0.03%Hungarian Forint 312.90 308.30 -4.60 -1.47%Norwegian Krone 8.3509 8.2574 -0.0935 -1.12%Polish Zloty 4.1928 4.1956 0.0028 0.07%Romanian Lei 4.4851 4.4648 -0.0203 -0.45%Swedish Krona 8.8631 9.1044 0.2413 2.72%Swiss Franc 1.2197 1.2176 -0.0021 -0.17%Period: Week 12 - 16

Index Beginning End Change Change of period of period (%)CEE (Equipment) 252.37 261.47 9.10 3.61%CEM (Materials) 157.72 166.02 8.30 5.26%CEC (Contractors) 195.72 199.42 3.70 1.89%CET (Total) 196.17 203.58 7.41 3.78%Dow 16303 16425 122 0.75%FTSE 100 6544 6570 26 0.39%Nikkei 225 14475 14418 -58 -0.40%CAC 40 4313 4401 88 2.03%DAX Xetra 9321 9297 -24 -0.26%Period: Week 12 - 16

VALUE OF €1

KEY INDEXES

High confidence continuesResults of April’s CE Barometer survey underlined the strong sense of optimism in the European construction sector that was first seen in February and was sustained in March.

February saw confidence in the sector hit its highest levels since the start of the global financial crisis, with the CE Climate, a broad measure of sentiment, reaching a balance figure of +36.4% – the percentage of positive responses, minus the number of negative ones.

March saw this fall back a little, but it still stood at a high level. However, there was a rebound in April, with the CE Climate moving back up to +37.7%.

This was driven by increased confidence about the future. A huge balance of +57.6% of respondents said they thought activity would be higher in a year’s time than it was in April. It is not since the height of the boom years in early 2007 that this level of confidence in the European construction sector’s future prospects could be found.

In addition to this, a balance of +31.5% of respondents said activity was better in April than a year previously. Again, this was about the same as February’s result, after a dip down in March.

Meanwhile, a balance of +23.9% of respondents said activity levels were better in April than a month previously. This month-on-month measure of confidence has been around this level throughout February, march and April.

This all reinforces the view that the European construction sector is entering a period of sustained growth. As the clock diagram illustrates, the sentiment for a relative boom is very strong. However, it is important to interpret this correctly. The clock only indicates which way the market is heading, and how many people share that view – the length of the arrow is the strength of the sentiment. It does not indicate how big market growth will be. ce

CE BAROMETER

particular, as well as the Japanese Yen, Swiss Franc and one or two other European currencies. What gains it did manage – the 0.06% rise against the US Dollar, for example – tended to be minimal.

This all seemed to be in reaction to very low inflation in the Eurozone, which at just 0.5% in March is seen as being in a dangerous area which could tip over into deflation. This is a big worry. Deflation – prices that fall, rather than rise over time – is a serious economic problem for several reasons.

It means that the real cost of debt rises over time, making it more difficult for governments, companies and individuals to pay off their borrowings. It also stifles investment because people predict that things will be cheaper in the future, so they sit on their money rather than spending it. This deflationary problems tend to get worse over time, with bold (expensive) economic policies like the current Abenomics at work in Japan required to break out of the downward spiral.

TAKE PARTThe survey, which takes just a one minute to complete, is open to all construction professionals working in Europe. The CE Barometer survey is open from the 1st to the 15th of each month on our website. ■ Full information can be found at www.cebarometer.eu

RECESSION

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it will make their goods cheaper and/or more profitable outside the currency bloc.

OUTLOOKThe Lafarge-Holcim deal has been taken as a positive sign by stock markets in general that massive mergers and acquisitions are back in vogue after the barren years of the financial crisis.

It is also significant that it is an all-share deal, rather than the type of cash offer that in the past has saddled companies with unsustainable debts.

This could be said to augur well for stock market buoyancy and a falling Euro could provide an additional boost for European companies’ shares. ce

This has prompted the European Central bank (ECB) to announce it was planning a programme of quantitative easing (QE) to help re-inflate the Eurozone economy.

This policy, practised by the US Federal Reserve and Bank of England among others, involves electronically creating new money and using it to buy-up bonds and other assets.

With more money in the economy, but the same supply of goods and services, the theory is that prices should rise.

The downside of this in some eyes is that this will push down the value of the Euro.

While this will make imports to the Eurozone more expensive, it will be welcomed by exporters as

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2 Half pages horiz.indd 1 28/04/2014 15:42:22


LAW AND CONTRACT

“permanent establishment” which would be fully liable to local tax. Some incentives may be available to reduce the tax bill, particularly for major projects which are approved by the Investment Authority.

Compliance would be required with local filing requirements for corporate income tax, and employment taxes and social security contributions must be withheld under pay-as-you-earn (PAYE) rules. Any employees being seconded to work on the project would need advice on their personal tax position, which EU Construct would usually provide as part of their service to expatriate employees.

SERVICESWhere any services are provided to the local company by a related party, an arm’s length price must be charged, calculated in accordance with OECD guidelines.

So, for example, if the head office provides administrative support for accounting and financial record-keeping, the price charged should be in line with what a third party supplier would charge for these services.

A particular issue to watch out for is withholding tax. Rwanda imposes a 15% withholding tax on technical service fees – a tax that can often be reduced in other countries under the terms

of a tax treaty. However, Rwanda has a very limited treaty network – the only treaty with an EU country is with Belgium, where the rate for technical service fees is reduced to 10%.

Withholding taxes also apply to payments of interest, dividends and royalties. Thin capitalisation rules would limit the amount of debt (generally to four times equity), and a withholding tax of 15% applies to interest payments.

However, using debt rather than equity to the extent this is possible, generally gives a more flexible route to repatriating funds during and at the end of the project.

EU Construct may decide to hold its investment via an intermediate holding company, for example in Mauritius. Mauritius is often used as an intermediate location, as it has built up a reputation as a stable financial centre, and has a good network of both tax treaties and investment treaties.

In the case of Rwanda, there is a tax treaty, but it has not yet been ratified – and the position is similar for the bilateral investment agreement. Nevertheless, Mauritius may still be attractive, particularly if EU Construct is planning to invest in a series of projects in other countries in the region.

A word of caution is necessary concerning the use of low tax jurisdictions such as Mauritius, however. The OECD is currently carrying out a major project on the application of international tax rules to multinational companies, known as the Base Erosion & Profit Shifting project.

This has led to something of a backlash against the use of low tax jurisdictions, even where there are good commercial reasons – including the availability of a treaty network. Some countries are seeking to ignore the existence of an intermediate holding company, arguing that it

is a mere conduit and should not be entitled to Treaty benefits.

Recently, non-government organisations such as ActionAid have been campaigning particularly against Mauritius, saying that it is depriving the ultimate investment country (Rwanda in this case) of much-needed tax revenues.

While the arguments are sometimes over-simplistic, there are potential reputational risks to be considered, and companies which decide that they will establish an entity in a low-tax jurisdiction should take care to ensure that it has an appropriate level of real substance, and be ready for potential challenge.

Finally, it is important to be prepared for the risk of tax disputes. Developing a constructive relationship with the local tax authority, and building trust by being prepared to share information and explanations, is a good first step.

TAX REVENUESHowever, with governments keen to maximise tax revenues, and local tax authorities being short of resource (and sometimes of business awareness), disputes can still arise.

If so, it is important to approach these as you would with a commercial dispute – seek a shared understanding of the facts, and agreement on the scope of any technical differences of view. Keep control of the issue, and whenever possible use negotiation and mediation to seek to reach an outcome which is acceptable to both parties.

There are significant opportunities in construction projects in Africa, but inevitably there are also risks to be managed. Tax issues need to be well-understood, so that they can be built into the project plan, and a pro-active and co-operative approach should be taken. ce

African opportunities for Europe's contractors

F orecasts of rapid growth for many economies in Africa will lead to a

signifi cant need for investment in infrastructure projects such as road, rail, energy and urban infrastructure.

But for European contractors considering bidding for such projects, some key tax issues must be considered.

Consider a hypothetical road project in Rwanda, for instance. Many of the points that a contractor would have to consider when bidding for such a project in Rwanda would apply with equal force elsewhere in Africa – and indeed to any international construction project.

Rwanda is a relatively small, poor country which has shown a keen commitment to transform itself from a primarily subsistence agricultural producer to a knowledge economy, with increased urbanisation and a need for modern infrastructure.

So let us assume that a European construction company, EU Construct, has decided to bid for a road infrastructure project. The first choice would be whether to use a resident or non-resident company to carry out the project.

In either case, the local profits would be subject to Rwandan corporate income tax at 30%.

The activities would be sufficient to constitute a local

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There are tax issues to be considered when bidding for projects in Africa, says Heather Self, tax partner (non-lawyer) at Pinsent Masons

CE 05 2014 Law and Contract.indd 17 28/04/2014 10:28:30

18

FIEC


Euro election call – no investment, no future

FIECAvenue Louise 225,B - 1050 Brussels, Belgium.Tel: +32 2 514 55 35;e-mail: [email protected]

With the European elections about to take place, FIEC has issued a manifesto and is looking for action from the new administration

Ahead of the European elections this month and the nomination of the

new European Commission in the autumn, FIEC has published a 10-point manifesto for action during the EU term 2014 to 2019.

It defines areas for action, which play a key role in establishing an adequate framework for ensuring that the construction sector can be an efficient lever for growth and jobs, in a sustainable way.

Here are some of FIEC‘ s points:

INVESTMENT FOR GROWTH AND JOBS, DESPITE NEED FOR BUDGET DISCIPLINEThe cost of non-investment would be much higher than the cost of investment, considering that it would actually damage economic growth in the short term and competitiveness in the long term.

Real life examples show that every Euro invested in energy efficiency renovation leads to income or savings of €5 to 7 for public authorities.

The EU “investment clause” introduced in 2013 has had extremely limited impact compared to the real needs.Action:■ Allow greater flexibility in the Growth and Stability Pact calculations when Member States implement EU policy decisions and invest in infrastructure and building projects■ Take into consideration that such

investment creates growth and jobs (multiplier effect: 1 job in construction sector equals 2 jobs in other sectors)■ Effective use of EU funds taking into account economic, social and environmental benefits generated by such investment

FINANCING INVESTMENTWithout the necessary financing, no investment will take place. Without incentives, available financing means will not be sufficient.Action:■ Improve access to business loans/mortgages for viable companies, especially SMEs, and for sound private investors, including households■ Oblige banks that receive public money, to lend … to viable companies ■ Use innovative measures and fiscal incentives at all levels, such as the application of reduced rates of VAT on renovation works

INFRASTRUCTURE INVESTMENT FOR SUSTAINABLE GROWTHIn spite of the Connecting Europe Facility, Europe lacks a decisive approach to the construction and maintenance of infrastructure. Sound infrastructure that is fit for purpose is a pre-requisite of a vibrant and sustainable EU economy.Action:■ Use public and private funding – both traditional and innovative instruments – including PPPs (public-private partnerships), to lever projects that will have pan-European benefit■ Promote “user pays” schemes as a way of part-financing new projects and maintenance of existing infrastructure■ Increase the share of EU funding available for the upgrading and maintenance of existing infrastructure■ Exempt banks from Basel III rules for the percentage of loan made to infrastructure projects that contribute to the increase of national GDP or increase the level of employment

ENSURE FAIR COMPETITION AT ALL LEVELS Contractors face unfair competition, such as public entities competing with private enterprises both on public and private markets; foreign contractors not respecting EU or local regulations; contractors coming from third countries, the markets of which are not open to EU firms (reciprocity).Action:■ Ensure that such public entities do not benefit from illegitimate advantages■ Accelerate efforts to reach convergence of fiscal and social regulations in the EU■ Ensure genuine reciprocity in opening markets, as well as respect of EU and national law by all enterprises alike

PROMPT PAYMENT FOR VIABLE BUSINESS Correct and timely payment needs to be respected all over the supply chain. However, a significant share of construction activity depends on public investment. Public sector clients, therefore, play a crucial role in enabling companies to stay solvent, particularly during an economic crisis.Action:■ Make sure that the Late Payment Directive is properly implemented and respected by both private and public clients ■ Prevent the directive being abused in order to increase payment periods up to the maximum period allowed■ Consider getting rid of hidden payment delays, such as the indefinite start date of the payment period, in the next revision of the Late Payment Directive

UNRESTRICTED INNOVATION FOR THE EUROPE OF TOMORROW The construction industry is constantly innovating. For

contractors, every new project started presents challenges, which can be overcome by opportune innovation. However, barriers exist for the industry.

In particular, insurers are risk averse when it comes to underwriting innovative solutions.

Furthermore, innovation in construction comes in forms that are not necessarily deemed as such in prescriptive EU-funded programmes.Action:■ Remove barriers to innovation in the construction industry, eg allow variants in public procurement as the default situation■ Improve participation of construction industry in EU-funded RTD (research and technological development) programmes■ Introduce incentives to encourage insurers to support the use on site of innovative products and methods

REDUCTION OF BUREAUCRACY AND SIMPLIFICATION OF LEGISLATIONContractors are often faced with an unreasonable administrative burden, caused by inadequate legislative provisions, which do not properly take into account the conditions in the sector, nor the practical consequences for the industry.Action:■ The EU institutions should continue the assessment of existing legislation in the framework of the REFIT initiative, in close collaboration with the social partners, and subsequently undertake appropriate action■ Member States should avoid gold-plating EU legislation during the implementation process

The FIEC manifesto: EU term 2014-2019 can be downloaded from the FIEC website at www.fiec.eu/en/news/news-2014/fiec-manifesto-eu-term-2014-2019.aspx. ce

CE 05 2014 FIEC.indd 18 28/04/2014 10:37:17

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21

CECE

Concerns over possible new emissions laws

After more than a year of intensive discussions with stakeholders – the public consultation on the revision of the present exhaust emission Directive 97/68/EC was launched in January 2013 – the EU Commission is now determined to present this new legislative project.

The European Parliament and the Council have to agree to the proposal, and discussions in both EU institutions could start in September. The main elements of the proposal were presented to Member States and expert stakeholders in the spring, and the Commission appears to be following a new approach regarding the scope of future regulations.

PETROL AND DIESELThe law will no longer differentiate between spark ignition (SI) petrol engines and compression ignition (CI) diesel engines above 56kW. Instead, all fuel types and ignition methods of engines above 56kW will be grouped together.

Limit values for the new Stage V will include a particulate number limit (PN limit) for power classes between 19kW and 560kW, while the limits for nitrogen oxides (NOx) will not be changed.

CECE has strongly opposed lower NOx limits in the past – advocacy that has been successful. Indeed, secretary general Ralf Wezel said, “We called upon the European Commission to align the limit values with the corresponding US legislation.

“It is important for the competitiveness of European manufacturers to achieve harmonisation with an important external market, thus reducing trade barriers and allowing manufacturers to use economies

of scale. It is good to note that the Commission followed this approach at least for the small power classes and engines above 56kW.”

The European Commission envisages a lead time of only three years (four years for engines rated 56kW to 130kW) between the regulation being introduced and the new emissions stage coming into force.

Provided that the legislative process runs smoothly, Stage V could come into force in 2019 and 2020 respectively. For CI engines below 19kW, the new stage of legislation would be fixed to come into force for 1 January, 2019, thanks to a link between the upcoming NRMM exhaust regulation and regulation (EU) No 167/2013 for agricultural and forestry vehicles.

The transition scheme for the new regulation is of core importance for construction equipment manufacturers. In order to allow manufacturers enough time for machine redesign, CECE has always asked for sufficient transitional provisions.

However, it now seems as if the European Commission will opt for a radical change of the system. The present provisions for flexibility and sell-off will be merged into a sell-off scheme for engine and machine manufacturers with very ambitious deadlines.

Wezel said, “CECE proposed a new transition scheme based on a concept Sweden had presented last year, but unfortunately it was not taken into account.”

CECE, together with its European sister associations CEMA (Agricultural Machinery) and FEM (Materials Handling), has therefore developed a proposal for a small series provision to be included in the transition

CECE SecretariatDiamant Building – Bd A Reyers 80B – 1030 Brusselswww.cece.eu Tel:+32-2-706 82 26Fax: +32-2-706 82 10AEB www.aebrus.ruAGORIA www.agoria.beANMOPYC www.anmopyc.esAPCEMPwww.apcemp.pl CEAwww.coneq.org.ukCISMAwww.cisma.fr COMAMOTERwww.comamoter.it FMIB-CWMwww.fme.nlIMDERwww.imder.org.trSACEwww.sace-se.org SVSS

Teknologiateollisuuswww.techind.fiUCOMESAwww.ucomesa.itUnaceawww.unacea.orgVDMAwww.vdma.org/construction

The European Commission is expected to adopt a proposal for new off-highway exhaust emissions laws, but CECE feels the transition could be challenging for manufacturers

W hile Brussels is preparing for the European Parliament

elections, the Commission is expected to present new draft regulations for exhaust emissions from engines installed in non-road mobile machinery (NRMM) before the summer break.

scheme, giving manufacturers at least more time for products manufactured in small numbers.

This would take into account the fact that machine manufacturers source engines in very small quantities and, as a result, could experience difficulties in receiving the new engines in time. It would also allow for more time for the redesign of a very limited number of machines.

PROVISIONSA small series provision would be particularly beneficial for small- and medium-sized companies (SMEs), but would not be restricted to SMEs.

Another topic still under discussion is the replacement engine provision. The Commission indicated that the replacement engine derogation in the present Directive 97/68/EC would not be continued in the proposed new NRMM emission regulation.

This is a major concern for CECE. It would mean that prior-stage engines could not be produced for replacement purposes after the new stage has come into force.

“CECE requested that the Commission included a replacement engine provision for various reasons,” Wezel said. “The quantity of replacement engines sold is extremely small compared with the overall quantity of machines operating in Europe, but the ability to obtain a replacement engine is critical for machine owners and operators.

“Current stage engines cannot generally be used as replacements for prior-stage engines, and the re-manufacture of only those engines already placed on the EU market is not a feasible solution,” Wezel added. ce


CE 05 2014 CECE.indd 21 29/04/2014 09:04:34

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>

A test for the market

The 29th edition of Italian construction

equipment exhibition Samoter is taking

place in May, and this time it has teamed up

with the Asphaltica road paving

technology event

T he last Samoter trade show attracted 98,000 visitors from 110 countries. That was in 2011, when there were

900 exhibitors at the show, taking 109,000m2 of space.

This year, the show kicks off on 8 May, running through to 11 May at the Verona Exhibition Centre, Italy. it is teaming up with the Asphaltica infrastructure and road safety exhibition. However, much has changed in the industry since the last Samoter, with the global economic downturn taking a severe toll on the Italian construction equipment industry.

According to Italian trade association UNACEA, the Italian construction equipment market fell 18% last year to 6,192 machines – the sixth consecutive year of declining sales, from a pre-crisis high of more than 30,000 machines per year.

Veronafiere, the organiser of Samoter, said that no one was hiding the difficulties facing the industry – not only in Italy – “but no one is willing to throw in the towel”.

Indeed, it highlighted several large investments in the Italian construction market that were planned for this year – including tenders worth €2.5 billion for rail projects, and an expected €500 million worth of roadbuilding projects.

In short, Veronafiere said the market was moving – although it said it remained to be seen if the changes in the overall scenario that the market had been hoping to see for so long would actually come about. It said Samoter would provide a good opportunity to find out more about how the market is doing, with over 450 companies in the sector confirming their attendance.

Director general of Veronafiere Giovanni Mantovani said the country was at a crossroads. He said that Veronafiere believed in the show, with its strong 50-year history, and that the producer associations were also supporting it.

He added that North Africa, the Mediterranean region, Eastern and Northern Europe, as well as Italy, were the key areas for the show, but a great deal of attention also needed to be paid to product innovation and conferences. Trade delegations are expected from more than 40 countries.

INDUSTRY SUPPORTWell-known names from the international construction equipment industry are supporting the Samoter exhibition. Komatsu, for instance, will showcase 11 machines, including its new third generation HB215LC-2 Hybrid excavator, a 22 tonne class machine.

Other machines on Komatsu’s stand will include the 14 tonne class PC138US-10 excavator, 18 tonne class excavator and 2.4 to 3.2m³ bucket capacity WA320-7 wheeled loader.

Enrico Prandini, managing director for Komatsu Italia Manufacturing, said, “In view of the current economic situation of the industry in Europe, the decision for Komatsu to attend Samoter was taken after considerable thought.

“In the end, it was positive, first of all because Komatsu builds machines in their own manufacturing plant in Italy, and we felt it was important to put this forward to the market and the country.

“Secondly, Samoter is a main event for the earth-moving and construction


Samoter in briefWHEN:8 to 11 May, 2014

TIME:Thursday to Saturday 9:30 – 18:00Sunday 9:30 – 16:00

WHERE:Verona Exhibition Centre

GETTING THERE:Verona is at the crossroads of the Venice (115km) to Milan (160km) motorway and the Brennero (220km) to Bologna (140km) motorway, and can be reached by road or rail.

The Exhibition Centre is about 3km out of the city centre, and a few minutes’ drive from the Verona sud exit (Venice to Milan motorway).

A dual carriageway connects the Exhibition Centre to the local airport (Valerio Catullo).

There is a shuttle bus to and from the airport, and to and from the railway station.

Veronafiere (Verona Exhibition Centre)Viale del Lavoro, 8 - 37100 VeronaTel: +39 045 8298111 Fax: +39 045 8298288www.samoter.com

SAMOTER

Samoter kicks off on 8 May, running through to 11 May, at the Verona Exhibition Centre

CE 05 2014 Samoter.indd 23 28/04/2014 10:38:56

24 CONSTRUCTION EUROPE MAY 2014

SAMOTER

equipment sector and is strategic for our Italian distribution network. Thirdly, as this is Samoter’s 50th anniversary, the historical aspect and our uninterrupted attendance was also a factor – Samoter is a milestone for our company and an ideal stage to present previews of the latest Komatsu innovations.”

Meanwhile, UNACEA will have a lounge area at Samoter, acting as a meeting point for all members and visitors as well as hosting debates and round tables discussing the issues affecting the construction machinery industry and market.

MEMBER COMPANIESAnother exhibition area will be dedicated to its member companies, with exhibits from firms including Canginibenne, CGA, Cifa, Euromecc, Fiori, GF Gordini, Lameter, Mantovanibenne, Messersì, Palazzani, Samep Tools, Sci Editrice, Simex, Turbosol and Uemme.

Veronafiere also signed a co-operation agreement with Siteb, the association in Italy for the road building sector, so that Asphaltica would take place at the same time as Samoter. Veronafiere said this simultaneous scheduling had the objective of increasing Asphaltica’s international visibility and building on Samoter’s status and international reputation.

Asphaltica will occupy 23,000m2 of exhibition space, and the main theme of this show will be green roads – an emphasis on recyclable roadbuilding materials and low energy consumption technologies. The Asphaltica show will stick to its traditional

schedule in November 2015 and then return alongside Samoter in 2017.

Manufacturer Controls will exhibit at this year’s Asphaltica through its new asphalt division, Pavelab Systems. This part of the company specialises in developing systems for advanced testing of pavement materials – from sample preparation, to tests for mix design determination and research, durability tests, production and process control.

The company’s new 75-PV50A05/S automatic closed-system asphalt analyser will be on display, together with the 75-PV0008 asphalt binder analyser, the 77-PV0077/B Bitumix automatic laboratory mixer, 76-PV2522 gyratory compactor for bituminous mixtures and 77-PV33B05 double wheel tracker for sampling.

Controls said it also planned to launch its Academy Centre at Asphaltica – a programme offering targeted courses in laboratory pavement techniques for laboratory technicians and operators. ce

Conference on quarries and excavationA conference on quarrying, soil remediation, overburden removal and excavation will be held on 8 May during the Samoter exhibition.

It will take place in the Vivaldi hall at the Verona Exhibition Centre from 10am to 4.45pm, and includes a trip away from the fair to a quarry for a demonstration of some of the new technologies.

Manufacturer Vermeer Italy, the main sponsor of the event, will present the latest technological innovations in quarrying and excavation operations. Crushing plant automation specialist Maestro will also present at the conference.

Topics to be covered include markets and opportunities on the horizon, and new methods for quarrying and surface mining.

More information, including a full itinerary and list of speakers, are available at www.samoter.com.

A conference on quarrying, soil remediation, overburden removal and excavation will be held during the Samoter exhibition

Controls, at Asphaltica through its new Pavelab Systems division, will show the 77-PV33B05

double wheel tracker for sampling

Komatsu will showcase 11 machines, including its new third generation

HB215LC-2 Hybrid excavator

CE 05 2014 Samoter.indd 24 28/04/2014 10:39:08

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COMPONENTS

Parts of the process

T o some extent, a machine is only as good as its component parts, and whether this is a fundamental requirement like

tyres or engine parts, or the kind of additional equipment that is increasingly being seen on equipment, such as cameras and weighing systems, they all have a key role to play.

Quality and cost are clearly important at the manufacturing stage, but this has to continue throughout the life of the machine. No manufacturer can afford to wash their hands of the machine as soon as it is sold, as the aftersales service offered can be a decisive factor in the choices made by the customer.

While the boxes for comfort, low fuel costs and high efficiency will need to be ticked before a customer selects a model, the ongoing costs are as important.

SKF deals in roller bearings, seals, mechatronics, services and lubrication systems. It has extended its range of sealed spherical roller bearings, increasing their number of applications.

It said that as a result of their sealed construction, the bearings could reduce maintenance, while offering consistently high performance under demanding conditions. in most cases, said SKF, the sealed variant

was interchangeable with open bearings, which therefore enabled applications to be upgraded simply and cost effectively.

The company made the point that improved cleanliness increased bearing service life.

During installation, maintenance and operation, open bearings can be exposed to contaminants, it said, which can significantly reduce bearing service life. It claimed, however, that with sealed SKF spherical roller bearings, a high degree of cleanliness was maintained inside the bearing, increasing bearing service life.

In contaminated environments, sealed bearings can last up to four times as long as open spherical roller bearings, it said.

SKF claimed that under certain operating conditions, sealed SKF Explorer spherical roller bearings could be considered relubrication-free. As the bearings do not require external seals in all but the most aggressive environments, installation is simplified, further reducing downtime and maintenance costs. Additionally, the seals are said virtually to eliminate the risk of lubricant leakage often associated with conventional open bearings and external seals, minimising their environmental impact.

SKF said that its complete range of Explorer spherical roller bearings had been upgraded with a new patented heat treatment process, further increasing service life in contaminated environments or poor lubrication conditions.

Minimising downtime is something that the manufacturers of turbochargers are well aware of too.

Phil Wild, manager of advanced engineering at Cummins Turbo Technologies said that the debate around turbocharger and engine technologies in construction and the wider off-highway sector had historically been one that focused on reliability and durability.

He said, “Operators in these markets need to minimise the downtime of their equipment to ensure there isn’t a commercial impact on their businesses.”

CHALLENGEHe said that construction companies faced the challenge that they consistently needed to identify and prevent issues in advance, as well as scheduling periods of repair to mitigate against equipment failures, which may then impact on efficient and effective delivery.

“Although this remains a vital consideration for the sector,” said Wild, “there are likely to be other changes in the market that OEMs of construction vehicles and machinery need to prepare for to ensure that their customers are ready for the future.”

Emissions regulations have dominated both the on- and off-highway sectors.

Wild said that as governments continued their efforts towards a low-carbon community, it was only natural that other vehicles and fuel-consuming machinery would need to be addressed more rigorously.

“At Cummins Turbo Technologies, we rigorously test and trial technologies in a range of environments throughout the design phase to ensure that they are fit for market and meet stringent emissions standards while retaining their reliability and durability.

“We also spend time getting under the skin

SKF said that in contaminated environments, sealed bearings can last up to four times as long as open spherical roller bearings

1

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CE 05 2014 Components.indd 27 28/04/2014 10:48:53


COMPONENTS

of how the equipment will be used so that technologies suit the operator’s usage.”

He said the company could supply integrated system solutions to optimise efficiency of turbo machines with aftertreatment and filtering, delivering performance, emissions reduction and robustness in harsh environments.

“There are technologies that exist that will be introduced to off-highway markets to achieve greater savings on emissions and fuel efficiency,” he said. “For example, the new generation of turbochargers for 16 litre and above applications – series 800/900/1000 – has incorporated the latest turbocharger componentry which will improve the efficiency of the turbocharger by 10%.”

He said there were a number of ways to adapt turbochargers to create both a cleaner and more efficient exhaust, adding that fuel efficiency was the priority for the sector.

Wild said, “We need to be prepared for future legislation and consider the challenges these sectors will face when developing these technologies. We need to consider the cost implications for construction operators in ensuring their machinery ticks the emissions box, while fuel costs continue to soar.

“And, importantly, we must not lose sight of the core fundamental concern of the sector – to continue to minimise downtime.”

The off-highway market is the focus of Oerlikon Drive Systems, with its two brands

– Oerlikon Graziano and Oerlikon Fairfield. It manufactures engineered drive products concentrating on four regions – Americas, EMEAR (Europe, Middle East, Africa and Russia), China and India.

For Russia, Oerlikon is planning to exhibit at the CTT Moscow show in June, where it will be presenting Oerlikon Fairfield’s new patent-pending hybrid electric drivetrain technology.

It described this technology as a complete series electric driveline system from engine to wheel, which featured an innovative energy recovery system – claiming it was the first of its type to be designed by a company specialising in drive solutions.

For off-highway axles, it will also be showing its Shifting Solutions, providing integrated solutions for demanding construction machinery applications.

The Oerlikon Graziano GA axle portfolio for grader machines consists of a new generation of complete drivelines. The range consists of five different models fulfilling the requirements for motor graders with operating weights from 10 to 20.5 tonnes.

These models have been designed with a complete tandem system and with wet disc brakes on the wheels, which it said optimised braking performance without overheating issues and satisfied all safety regulations.

Oerlikon has developed a complete product

Training engineers for the future

UK polymer engineering company Nylacast has opening its Engineering Training Academy. It said that with talk of a skills shortage in engineering in the UK, the investment in a training academy was the next progressive step for the company, building on the success of its engineering apprenticeship scheme.

The Nylacast Engineering Training Academy will be used by young students coming into engineering, but it is also able to improve the skills and knowledge of the current workforce.

The academy features a number of dedicated teaching rooms, including a state of the art engineering simulator room, which allows students to learn, practice and build up their confidence working with machines in a controlled, simulated environment before heading out to the live production facilities.

The machine room features a number of scaled down manual machines. Nylasast said that in an age where CNC machines are controlled by computers, it was important to remember that computers will only do what they are programmed to do.

Nylacast apprentice Jack Nurse in the machine training room

Oerlikon Fairfield’s new hybrid electric drivetrain technology will be demonstrated in Russia

range of PR axles for wheeled loaders up to 32 tonnes. It said the advantages for end users included wet disc brakes mounted before the final reduction with less workload and maximum working life, guaranteeing the best performance with low overheating when the vehicle was used at high speed for a long time.

Paolo Ramadori, chairman and CEO of Oerlikon Graziano Group and head of the EMEAR business unit of Oerlikon Drive Systems, said, “Technological innovation is always strategically important for Oerlikon Drive Systems. In recent years, we worked to enhance human capital by investing in the training of workers at every level and job.

“The competitiveness was enhanced through product innovation, investment in new technologies, the reorganisation of production sites, standardisation and modernisation of business processes,” he said.

RELIABLE UPTIMEJohn Deere PowerSight is offered for John Deere engines installed in OEM equipment. The company said the technology represented a John Deere Power Systems solution that provided reliable uptime and low cost of operation in off-highway applications.

PowerSight features four technologies that are said to integrate seamlessly to help customers manage their John Deere-powered OEM equipment.

There is the JDLink machine monitoring system, machine health prognostics, remote diagnostics and programming, and the PowerAssist free app for iPhone, iPad and Android devices that provides access to John Deere engine information.

JDLink connects equipment owners, fleet managers and distributors or dealers to equipment in the field by automatically collecting, transmitting and managing information about where, when and how equipment is being used, as well as critical machine health data.

The machine health prognostics component of John Deere PowerSight is said to be capable of proactively discovering improper engine operation that could lead to downtime, while remote diagnostics and programming allows



COMPONENTS

John Deere PowerSightis offered for John Deere engines

a John Deere service representative to read and reset engine diagnostic trouble codes and record performance readings remotely.

The solution is available for John Deere Stage IV/Tier 4 Final, Stage IIIB/Tier 4 Interim and Stage IIIA/Tier 3 engines.

German-based Hawe Hydraulik, has launched a new size for its V60N axial piston pump series. It said that the key parameters – displacement of up to 1,300m3/rev and peak pressures of up to 450 bar – indicated the power of the pump, but that its specific advantage was that it was the only axial piston pump of this size that offered a standard torque limitation for the vehicle’s gearbox.

It said the V60N-130 type was particularly suited for load-sensing systems working at operating pressures of up to 400 bar and supplying hydraulic consumers with different pressure levels and/or variable volume flows.

According to Hawe, its field of deployment included construction machinery, concrete pumps, general cargo cranes, communal and waste vehicles, cranes or forestry vehicles.

It said the load-sensing system and a selection of intelligent controllers turned the pump into an energy-efficient drive for hydraulic systems, which helped with emissions regulations compliance.

The high operating pressure from the design of the hydraulic system, was said to allow the company to reduce the size and weight of all components in the hydraulic control.The company said that among other uses, this was of interest for crane cantilever arms or concrete pumps, both of which are being made longer and longer.

The pump is flanged directly to the power take-off of the vehicle’s gearbox. The company said that this way, the engine’s power was transmitted directly to the pump without losing energy unnecessarily.

Hawe said that with a width of 130mm, the pump was an ideal format for tight small spaces. Its two-part casing is said to be robust and long lasting.

SMOOTH RUNNINGLubrication plays an important part in the smooth running of a machine, and Evonik Oil Additives has been conducting a series of field tests with different types of hydraulic construction equipment and their operators.

The tests are designed to measure the improvement in equipment fuel consumption when the hydraulic fluid is changed out from a standard monograde fluid to a commercially-available, multi-grade fluid formulated to Evonik’s Dynavis technology standards.

Equipment operators are asked to record fuel consumption before and after the change in hydraulic fluid. They are also asked to provide their personal impressions of any differences they notice in the equipment’s performance when operating with the two different fluids.

Evonik said that on average, operators reported fuel consumption reductions of 10%.

Tests are being conducted with two civil engineering and highway construction companies in Germany, a pipeline construction company in Italy, and with a demolition and recycling company in Belgium. Additional field testing is planned for outside Europe.

The use of biodegradable hydraulic fluids is more accepted these days. The canola oils first used in the early years were replaced in the 1990s largely by synthetic esters.

At Hermann Bantleon, based in Ulm, Germany, the company said that for about five years, the use of hydraulic oils based on PAO (Polyfaoline) has also increased. These

are synthetic hydrocarbons (HEPR). Hermann Bantleon said an accurate

definition of the term bio-oil still did not exist.

“Discussions on this topic are often dominated politically and often not scientifically,” it said. “It is clear that bio-oils have to be non-toxic and bio-degradable

so that they do not pollute the environment. As one might expect, by using bio oils, valuable resources can be saved.”

It said that as performance and diversity of machines increased, components were

subject to greater power transmission and longevity.

“Oils and operating materials are often taken into account at the very end of a design process. Important interactions are not taken


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COMPONENTS

into account,” it said, adding that this often led to high costs in the warranty or repair service.”

It suggested the early involvement of the lubricant in a machine’s concept provided significant added value for manufacturers and end consumers.

“Negative influential factors can be detected in an early phase and also be removed at an early development stage. The equipment and installations in the final stage include tailor-made and tested components that enable high power density.”

The developers at Hermann Bantleon claimed to have taken a new step with the development of a hydraulic oil based on PAO.

It said that as well as offering good performance, the oil was biodegradable.

It claimed its Avia Syntofluid PE-B had good cold start behaviour at temperatures as low as -40°C, with no warm up phase required. It claimed a wide temperature and use spectrum, and said that it was not aggressive towards seals and hoses. It said there was no hydrolytic instability in the presence of water and that it showed very good temperature and viscosity characteristics, while also demonstrating fuel saving potential.

FUEL FILTERRacor Filter Division Europe, a division of Parker Hannifin, recently introduced the Snapp fuel filter and water separator which has been designed to clean fuel in diesel, petrol and biodiesel engine applications.

Harmann Bantleon would like to see early involvement of the lubricant in a machine’s concept

Racor said that as airborne particulates in the environment could pollute on-site fuel supplies or on-board tanks, it was imperative that the fuel delivered to the engine was as clean as possible before expensive damage was done to precision components.

In recommending that quality filtration was fitted, it said the new Snapp fuel filter/water separator offered a breakthrough in the field of high performing quick-change filtration.

The filter, like other spin-on fuel filter/water separators, consists of a one-piece engineering plastic body with a clear bowl section that allows for visual fuel inspection. However, the company claimed that the design did not have seals to swell or threads to bind, making filter change-outs quick, clean and painless.

The housing can be snapped into the included steel bracket, with quick connect fittings to snap into place, which can ensure that service times and equipment downtime is minimised. It can be used on small engines up to 104kW or 98 litres/h fuel flow.

Talbert Manufacturing, which operates in the trailer and transport industry, has introduced its new E3Nitro – a nitrogen-assisted equalising system.

The new E3Nitro is part of a series including the E2Nitro and E1Nitro, with three, two or one pin-on axles. An ENitro system, with its nitrogen accumulator, oscillates around a central self-tracking pivot point providing proportionate weight distribution in each axle grouping.

With the E-Nitro series, Talbert said it was able to build trailers with capacities well beyond what could be achieved with simple mechanical or rigid axle extensions.

The E3Nitro is designed for trailers with

capacities of up to 85 tonnes. E-Nitro is the new name for nitrogen-assisted systems that Talbert previously called the Equalizer series.

Tamtron – producer of digital, dynamic and onboard weighing equipment, vehicle PC and data handling systems – said the development of its

Power wheeled loader scale had been fast. New features have been added and the user interface has been renewed.

The Power family has also grown with two new products – Power 50 and PowerPC.

Power 50 is an entry‐level scale when a scale for control weighing without advanced features or commercial approval is needed. It has, for example, basic weighing function, log memory for 10,000 receipts, and sum report function. It can be upgraded anytime into a more advanced Power 100 to 300 models.

TOUCH SCREENPowerPC can be installed on the on‐board computer, and is identical to the Power wheeled loader scale, but instead of the scale instrument, it can be used from the on‐board computer. Tamtron said that when used with a touch screen computer, PowerPC reduced the amount of the equipment in the cabin.

Cameras and monitors are increasingly be used on construction equipment. Orlaco said its camera and monitor systems were shockproof and presented a sharp image under extreme conditions.

The company said that as operators can have minimal vision around a vehicle, it was essential to deal with large blind spots. It said all of its camera systems consisted of high-quality products which had been developed with the aim of improving safety, efficiency,

comfort and damage reduction. Orlaco products are IP69

waterproof, shock- and vibration-resistant, and claim to be able to perform constantly under extreme conditions.

Among the latest Orlaco development are the advanced Amos camera series, 305mm waterproof monitor, the iPad Remote and the Communicator.

It said AMOS stood for Advanced CMOS, claiming that the improved camera offered higher photo sensitivity properties.

Vehicle operators who constantly work in dusty, dirty, snowy or rainy conditions can now receive non-stop vision feedback with the All Time Vision Camera, the newest Orlaco addition. The camera allows the operator to receive uninterrupted real-time camera images from the rear of the vehicle, no matter

Hawe Hydraulik’s new axial piston pump, V60N-130, shown here as cutaway model

Tamtron’s Power wheeled loader scale’s new target load function

Racor’s Snapp fuel filter and water separator has been designed to clean fuel in diesel, petrol and biodiesel engine applications



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what the weather or working conditions are.Nokian Heavy Tyres is introducing a new

winter contracting tyre for winter road maintenance and snow clearing. Nokian Hakkapeliitta TRI is said to offer totally new technologies and user benefits for these applications.

It claimed revolutionary tread design, tread block siping with siping activators, and specially-designed winter tread compound to ensure superior traction and the best possible handling without compromising the economy of use.

The company said that Nokian Hakkapeliitta TRI test results showed that compared to “the already high traction levels” of the TRI2, the Hakkapeliitta TRI had 25% more grip on ice and 23% more grip on snow.

When it comes to accessing turned metal parts, UK-based Blue Diamond said it

specialised in the design and supply of high quality engineering components from low cost sources outside the UK. With nearly 40 years of experience in sourcing, importing, stocking and distributing turned metal parts, Blue Diamond claims to be able to meet

exacting demands for quality, price and delivery.

Its service includes all aspects of design and manufacture, including the

development of existing designs to reduce cost and improve appearance or functionality. Turned parts can be supplied in a range of materials including stainless steel, brass, ferrous and non-ferrous metals. Parts can be supplied unfinished or anodised and plated – a range of matt or polished finishes are available.

William Hughes, a specialist manufacturer of springs and wire components, has introduced an overmoulding capability for wire parts. It said the new process dispensed with the need for metal retaining clips in assemblies such as vehicle seats – providing an assembly that is both strong and fast to manufacture.

The components are brought together using special tooling designed by William Hughes, and two vertical injection moulding machines perform the moulding process to complete the assembly.

The overmoulding process allows for variations in the finished assembly – for example, in seat assemblies, retaining bars for the seat cloth can be included. Where heated

seats are required, connectors and cabling can be incorporated so that heating elements can simply be plugged into the encapsulated boots.

Emma Burgon, engineering director said, “Our expertise is in the design and manufacture of a wide range of bent wire components to high accuracy, and this is critical for the manufacture of overmoulded assemblies. This means that the overmoulding process can be applied to a wide range of assemblies across many industries, providing benefits to our customers in terms of strength, versatility and speed of manufacture.”

It said it had high-tech manufacturing facilities in Dorset, UK, and Plovdiv, Bulgaria. ce

Orlaco claimed that its Amos series offered higher photo sensitivity properties

A new winter contracting tyre for winter road maintenance and snow clearing – the Nokian Hakkapeliitta TRI


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Full page.indd 1 28/04/2014 11:19:18

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MINI EXCAVATORS


E urope’s market for construction equipment is expected to increase from an estimated €8 billion in 2013

to more than €9 billion by 2017, according to Off -Highway Research fi gures, and with one in three machines sold in the region a mini excavator, demand for these popular machines seems set to rebound.

In this competitive market, many manufacturers are putting huge efforts into making their latest machines more efficient in order to reduce ownership costs for contractors.

Indeed, the relevant off-highway diesel exhaust emissions laws affecting compact equipment are now in place (EU Stage IIIB/US Tier 4 Final). Many expect these regulations to be the final big step in emissions laws for some time – and now research and development spends can be refocused elsewhere.

From load-sensing hydraulics to telematics systems and new travel modes, manufacturers are working hard to introduce new technology to these compact machines. And plenty of

Many manufacturers are forecasting growth in mini excavator sales this year and are keen to ensure customers get value for money when investing in new machines. Helen Wright finds out more

new mini excavators – both conventional tailswing models, which have an overhanging counterweight, and zero tailswing models, which do not – have been launched in recent months.

For its part, JCB said it was gearing up for “massive growth” in the compact excavator market. The manufacturer has launched the first three machines in a new line up of compacts – the 6.7 tonne class 67C-1, and 8.5 tonne class 86C-1 conventional tailswing models, and the 85Z-1 zero-tailswing excavator.

It said the new launches were part of its push to grab a bigger share of a market, which it said was expected to grow at least 16% over the next four years.

JCB chief innovation and growth officer Tim Burnhope said, “The compact excavator

Reducing the cost of mini ownership

Hanix’s new H09D micro and H17D are designed with the rental industry in mind, and have steel body panels and a top-mounted boom cylinder to protect it from damage

Yanmar Construction Equipment’s Reynaud, “Fuel consumption on the new SV26 – which replaces the B25V – has been reduced by 20%”

JCB’s 8.5 tonne class 85Z-1 zero-tailswing excavator is said to consume 10% less fuel than previous models

CE 05 2014 Mini Excavators.indd 35 28/04/2014 10:46:43

MINI EXCAVATORS

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market is expected to increase to over 200,000 units by 2017 and with this fantastic new range, JCB is ready to seize the opportunities presented by such massive growth.”

REDUCTIONSReduced operating costs were at the heart of the design process, according to the company. All three models sport Stage IIIB/Tier 4 Final-compliant engines, and JCB claims

they consume 10% less fuel than previous models. Engine rpm also automatically drops below the idle speed when the operator’s arm console is lifted, which JCB said helped with saving fuel and also reducing noise levels.

Meanwhile, production has now begun on Yanmar’s latest mini excavator – the 2.6 tonne SV26, an ultra-short radius machine. The new mini is aimed at a wide range of applications, including urban renewal, agriculture and landscaping.

Power comes from a 3 cylinder, 1.4 litre Yanmar diesel that generates 17.4kW at 2,400rpm. The machine is available with an

UK contractor R Durtnell & Sons has bought its first excavator in the form of a 2.6 tonne Bobcat E25 from dealer Bobcat of London.

Plant supervisor Jim Packer said the company had been looking to buy a new 1.5 or 3 tonne excavator for some time as an alternative to hiring this type of machine.

“We talked to all the manufacturers and their agents, but David Sawicki and Daren Bigg at Bobcat of London were able to clinch the deal with their presentation of the E25 model. It is the best fit for us, with its zero tail swing and its transportability – we have also purchased a new plant trailer to carry the new machine to and from site.”

As soon as it was delivered, the E25 was put straight to use by Durtnell to support groundworks on a new plant yard. The yard had been purchased by the company near Tonbridge in Kent, and the excavator was used to dig trenches for new piping and drainage systems.

Equipped with cab and standard bucket, the E25 is part of the new generation E Series range from Bobcat. Its maximum digging depth is 2.58m, with a maximum reach at ground level of 4.55m and dump height of 3.06m.

The 2.6 tonne E25 is part of the new generation

E Series range from Bobcat

Finding the best fit for a compact job

Caterpillar’s 308E2 compact radius excavator claims a more efficient engine and hydraulic system

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MINI EXCAVATORS

auto-idle option to reduce further the fuel consumption, which Yanmar said was less than 4 litres/h.

Yanmar Construction Equipment Europe managing director Jean-Marc Reynaud said fuel consumption on the new model – which replaces the B25V – had been reduced by 20%.

“We are targeting the European rental market with the SV26,” Reynaud said. “We are at the beginning of a new fleet replacement cycle in Europe, and this year we are forecasting growth particularly in the UK and French rental markets. We aim to sell up to 400 SV26s this year both to direct buyers and rental companies.”

And David Wood, Caterpillar product application specialist

for mini-excavators, said 2013 had been a relatively good year for sales.

“We continued to see growth in Northern Europe and the UK. In addition, in

Poland the mini-excavator is starting to replace manual labour. The 8

tonne mini excavator market has seen particularly good sales, with the Cat 308E2’s versatility and

compact dimensions perfectly suited to on-highway utility projects.

Caterpillar has a manufacturing alliance with Wacker Neuson, which itself has introduced a new dual power version of its

803 mini excavator. This 900kg machine can – in addition to the standard diesel engine – be connected to the external HPU8 electro-hydraulic drive unit.

However, the dual power option will not be available on the mini excavators supplied to Caterpillar through the manufacturing alliance.

INDOOR APPLICATIONS“The use of alternative power in mini-excavators will continue to grow for indoor applications,” Wood said. “Although we

Volvo CE has updated its mini excavator line-up with the introduction of the 5 tonne class ECR50D short tailswing radius model

Wacker Neuson’s 900kg dual power 803 mini excavator

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HHIE UK | Unit 15 Bilton Industrial Estate | Lovelace Road | RG128YT Berkshire | +44 (0) 1344484 034 | [email protected] | www.hyundai.eu

Build a better future

Reduced operating costs were a key factor in Kubota’s latest launch – the 2 to 3 tonne class, near-zero tail swing U27-4



MINI EXCAVATORS

Factory-fitted tiltrotators for minisFrom May 2014, Volvo CE started offering a factory fit tiltrotator option on its 5 and 8 tonne compact excavators in Europe – the Steelwrist couplers feature a front pin lock (FPL) and integrated control system, as well as a tilt angle of up to 450o.

Attachment product manager for Volvo CE Sales Region EMEA (Europe, Middle East and Africa) Gilbert Ray said, “Symmetrical type attachment systems are now the leading type of quick coupler used on excavators in the majority of European markets, and this factory fit option again sees Volvo at the forefront in the industry.”

The installation includes integration with the excavator’s own safety systems, as well as ergonomic, multifunctional joysticks and a colour display. The FPL system is also said to exceed regulatory requirements and means that attachments are engaged through two separate mechanical locks.

“The risk of dropping a bucket immediately after a tool change is considered by leading construction companies to be one of the greatest safety risks on a construction site,” said Ray.

“The patented positive lock indicator means the coupler indicates to the operator that the coupler is locked in position and therefore greatly reduces the risk of dropping. This innovative system differs from other symmetrical quick couplers in that they only have a negative indication, which signals that the coupler is open.

“The factory-ready option means uniform installation of the tiltrotator system. Dealers will not have to use workshop facilities to fit the system, and customers will have the reassurance that fitment is identical time and again, and fully supported by Volvo in respect of warranty and parts.”

A similar system will be available from Steelwrist for retrofit on existing excavators in both established and new markets.

monitor developments with interest, we have no immediate plans to introduce a model in this area.

“We will continue to focus on delivering higher efficiencies and lower operating costs to customers. Caterpillar is committed to increasing customers’ return on investments by providing machines that deliver the best productivity to fuel use in the market.”

He added, “Our new [8.4 tonne class] 308E2 compact radius benefits from a more efficient engine and hydraulic system, and delivers up to 13% less fuel consumption than the

previous model, with no impact on digging performance or productivity.”

Volvo CE has also updated its mini excavator line-up with the introduction of the 5 tonne class ECR50D short tailswing radius model. The manufacturer claimed this model too was more efficient than its predecessors, boasting a 10% reduction in fuel consumption thanks to an ECO mode, load-sensing hydraulics, and an automatic idling system and engine shut-down function.

The latest compact excavator from Hyundai comes in the form of the 6 tonne class R60CR-9A, a short tailswing model that replaces the previous R60CR-9. Here, too, reduced operating costs were a key design goal.

The machine is powered by a 48.3kW Yanmar 4TNV98C, Tier 4 Final/Stage IIIB-compliant diesel engine, which Hyundai said offered a 10% increase in power over the previous model, while reducing fuel consumption by 14%.

MICRO MACHINESMeanwhile Hanix, which is a brand owned by Japanese manufacturer NKK and its parent, China’s Beijing Jingcheng, is one of several players offering micro excavators (less than 1 tonne operating weight).

Its latest machines include the 990kg H09D micro and the 1.7 tonne H17D mini, both of which are designed for space-restricted

urban sites, and also targeted towards the

rental industry. Body panels are all steel construction to

withstand everyday site knocks, and the boom cylinder is located above the boom to protect it

against accidental damage when digging.

Hydraulically expanding tracks provide stability for

digging operations, as well as improving balance when traversing, and easy “pin-on” dozer blade extensions match the increased track width. Both models feature pilot-controlled hydraulics and are equipped with extra hydraulic lines as standard.

One of Kobelco’s newest models is the 5 tonne SK55SRX short radius excavator. Listed as “coming soon” to the company’s European base, the machine comes with a dozer blade as standard and a new blade shape is said to boost speed and efficiency by forming material into an arc that always falls forward – eliminating the need for multiple passes.

Power comes from a 28kW Yanmar diesel engine and there is an Energy Conservation Mode, which can be engaged with the push of a button, when the application allows the operator to run the equipment at lower power and performance levels.

SWITCHING MODESSwitching to an idling state can be achieved with a one-touch deceleration button, while another key feature is Kobelco’s iNDR Cooling System for quiet operation and dust protection.

The SK55 also comes with Kobelco’s KOMEX telematics system, which allows owners

to access critical machine data including location, operating

hours, fuel consumption and maintenance status.

Case’s new CX75C SR short radius excavator features three work modes and an automatic engine shut-off system

Kobelco launched the short radius SK55SRX

The latest compact excavator from Hyundai comes in the form of the 6 tonne class R60CR-9A, replacing the previous R60CR-9


MINI EXCAVATORS

The latest new additions to Case’s excavator line up are slightly larger in terms of weight class. The Tier 4 Final-compliant versions of its 7.4 tonne CX75C SR short radius machine and 8.5 tonne CX80C conventional machine are said to be 5% more fuel efficient than their predecessors, with faster cycle times, larger fuel tanks, more hydraulic power and wider cabs.

MATCHING REVSEach has three work modes – Auto, Heavy and Speed – and these match the match the engine revs to the task in hand. There are also different idle rates, according to the work mode, and an automatic engine shutdown also helps with fuel economy.

Reduced operating costs were also a key

factor in Kubota’s latest new launch – the near-zero tail swing U27-4. This is a 2 to 3 tonne class machine that the company said it designed after extensive research and development with operators worldwide.

Neil Winfield, Kubota Construction business development manager, said the machine had been designed to exceed market needs.

He said the feedback that the manufacturer received in the 2.5 tonne class highlighted that users wanted more space in the cabin and increased comfort levels, while not compromising on performance levels.

"The new Kubota U27-4 machine has been manufactured to exceed these requirements," Winfield said.

New phase of production beginsAt its plant in Tuscany, Italy, Ihimer has started production of the first model in its new V4 series of mini-excavators.

Ihimer, which is a joint venture between Japanese manufacturer IHI Construction Machinery and Italy’s IMER Group, presented the first prototypes from the new range last year. The first production model to roll out of the factory is the 2.7 tonne class 27V4.

Ihimer said the production start marked the beginning of a phase of industrial development of vital importance to the Italian construction equipment sector as a whole.

The manufacturer said 200 27V4 units would be produced before December this year, with orders already placed for more than 70% of this total. It said the machines would be distributed throughout Europe.

Available in both canopy and cab versions, the 27V4 boasts a 13.6kW IHI S773-C engine that the company said kept fuel consumption and emissions to a minimum, and has a front swing radius of 2,030mm and tail swing radius of 775mm.

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"It features a newly-designed spacious cabin and a deluxe interior, including a relaxing suspension seat that reclines to accommodate an operator’s posture and offers weight compensation. This helps to reduce strain, minimise fatigue and increase operator productivity, particularly over extended periods of use.”

In addition, a wider and lower entrance is said to make the cabin simple to enter and exit, while anti-theft technology increases fleet security.

Terex, meanwhile, has the new 8.4 tonne class TW85 wheeled excavator – a machine that adheres to Stage IIIB/Tier 4 Interim diesel exhaust emissions legislation, and comes equipped with a host of other technology as well.

POWER INCREASESporting an 85kW engine, Terex said the TW85 demonstrated an increase in power of between 10% and 14%, and also boasted reduced fuel consumption as well as lower emission levels.

The machine also features Terex’s Smart Control system – a new control and operating system that includes new instrument and joystick design, and new control electronics.

Maik Schulze, construction and development manager, said, “The Terex Smart Control

system was developed in-house. Our requirement was to optimise operation and comfort, power and ergonomics from the perspective of the operator. The operator shouldn’t have to adapt to the excavator, the excavator should meet the needs of the operator.”

Terex said its Generation 2014 compact excavators promise the owner a combination of high performance and precise, sensitive control. It said the design of these new models made them economical, versatile construction machines – whatever the operating conditions. ce

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EQUIPMENT


emissions and less fuel than conventional models.

Designed to be more economical for owners, easier for operators and better for the environment, the ZH210LC-5 hybrid incorporates technologies adopted from hydraulic, electric and battery-powered excavators. The result is the Trias HX system.

The Trias HX system combines a hybrid system with an energy-efficient Trias hydraulic system to achieve lower fuel consumption.

The hybrid system incorporates a swing motor that converts energy generated during swing braking into electrical energy. This is transferred via the Power Control Unit and stored in the capacitor unit, before being used to help the engine accelerate and move the upper structure.

Hitachi hybrid for Europe

H itachi has launched a hybrid excavator into the European market,

claiming that the combination of a hydraulic motor and an eco-friendly electric motor could give the same high levels of effi ciency and smooth swing motion as all Zaxis-5 hydraulic models, while reducing fuel and CO2 consumption by up to 31%.

The launch took place in Tampere, Finland, at an open day held by Hitachi’s Finnish dealer Rotator, which is celebrating its 60th anniversary.

Hitachi Construction Machinery (Europe) said it had launched the first of a new generation of excavators, the ZH210LC-5 hybrid, and that it had been designed to deliver reliable performance with fewer

He said, “You need swing movement of more than 40% to get the benefits, for example loading trucks, waste management, etc. Using our GPS system, we can target customers by analysing the usage, and help our dealers by providing the data.

“Other contractors want to be seen to be green,” he added.

The Trias hydraulic system is said to enhance the performance of the Hitachi ZH210LC-5 hybrid excavator. This employs a three-pump/three-control valve system, which the company claimed resulted in greater accuracy and reduced pressure loss that consequently saved energy.

The ZH210LC-5 also has an electric power assist system that comes into force for small swing operations. It uses energy from electric swing motors to carry out such movements, further reducing the machine’s fuel consumption.

Meanwhile, the company also introduced a new wheeled loader for European customers in the form of the maximum 2.8m3 bucket capacity ZW180-5.

The ZW180-5 is powered by a 6.7 litre six cylinder air cooled turbocharged diesel developing 126kW to provide powerful digging performance and high travel speeds but with reduced fuel consumption. Indeed, Hitachi says that the new machine uses 10% less fuel than the model it replaces. ce

Excavator launched by Japanese manufacturer claiming fuel savings up to 31%, plus new wheeled loader

Hitachi Construction Machinery (Europe) said its ZH210LC-5 hybrid had been designed to

deliver reliable performance with fewer emissions and less fuel than

conventional models

A fresh look at EU recycling processesA new project, backed by the EU Eco-Innovation Fund, will be operating in Germany from May 2014 with the aim of enhancing the infrastructure for the recycling of construction, demolition and excavation waste in Europe.

The project – known as CANDY (CompAct, highly mobile, Next generation, CD&E waste recoverY system) – is a partnership between materials washing specialists CDE Global and the Eco-Innovation Fund.

It will see the introduction of a new construction, demolition and excavation waste recycling system which CDE said would deliver on a number of key objectives. It said these included reduced plant footprint, enhanced mobility and an increased return on investment from CD&E waste recycling operations.

The Eco-Innovation Fund supports environmental technologies that have been introduced extensively in one EU Member State, but have not as yet been widely adopted throughout the EU.

All of the equipment for the CANDY project is ready to leave the CDE factory and is bound for the Stuttgart area in South West Germany. The new plant will be operational by the end of May, and an open week will be hosted at the site where potential customers, EU representatives, members of CD&E waste recycling associations and other interested stakeholders will visit the site to watch the new technology in action.

Among the key aims that the project hopes to demonstrate are at least 91% water recycling for recirculation in to the washing plant, maximum material recovery and minimal waste resulting in a

reduced requirement to transport and dispose of waste material, and an increase in the share of the aggregates market made up from recycled sand and aggregates. ce

Among the key aims that the project hopes to demonstrate are at least 91% water recycling for recirculation in to the washing plant

Sales manager Wilbert Blom said that the hybrid excavator was being targeted at those customers who would use the machine in the best way in order to benefit from the fuel saving technology.

CE 05 2014 Equipment.indd 43 28/04/2014 09:56:08

44

EQUIPMENT


Detailed 3D scans

L eica Geosystems has launched the ScanStation P15 – a new 3D laser

scanner which it claimed was the ideal entry into 3D scanning.

The company said businesses could benefit significantly by offering 3D scanning presentations to customers – it said they offered clear and realistic visualisations which are easily to understand, enabling them to make better decisions faster.

Based on the advanced ScanStation P20, the P15 is

said to offer the same high performance 3D scanning technology with high measurement speed and accuracy up to 40m, at an optimised price. Leica said the ScanStation P15 could capture entire scenes within minutes, and create detailed scans with overlaid images of the real 3D world.

Leica said upgrades to the new scanner would be made available in authorised Leica Geosystems technical service centres.

Jürgen Mayer, HDS program director at Leica Geosystems, said, “Traditionally, the perceived complexity of scanning has been a barrier to customers looking for an easy route into the 3D world. The new Leica ScanStation P15, however, is designed to be an accessible, trusted entry-level product, combining quality with simplicity, and no specialist surveying knowledge necessary.” ce

Heavy duty screening for more flexibilityTerex Finlay has introduced the new 893 forward facing inclined modular screen – a machine that it said had been designed for heavy-duty quarrying, mining, construction, demolition and recycling applications.

It features a 6.1m by 1.83m top deck, and a 5.5m by 1.83m bottom deck. Depending on the working application of the machine, Terex Finlay said hydraulic adjustment could be used to vary the working range angle of the screen box between 14o and 18o.

The screenbox top deck can be fitted with a variety of screening media, including mesh, punch

plate, bofor bars and tines. The bottom deck can also be fitted with mesh, punch plate and cascade fingers.

A high performance 1,100mm apron feeder and hydraulic gearbox drive is fitted to the machine as standard, while the hopper has a standard 10m³ capacity.

According to Terex Finlay, the 893 machine is powered by either a Tier 3/Stage IIIA Caterpillar C6.6 151kW or a Tier 4i Caterpillar C4.4 129kW, and is equipped with three hydraulically folding discharge conveyors allowing for maximum stockpiling capacity

Leica said upgrades to the new scanner would be made available in authorised Leica Geosystems technical service centres

and associated benefits of rapid set up and tear down times.

Terex said a key feature of the machine was the ability to raise the screenbox hydraulically by 600mm at the discharge end. This provides additional clearance for changing screen

media, as well as routine maintenance of the screenbox and fines transfer.

The plant has the capacity to process at a rate of up to 800 tonnes/h and can be fed either by a tracked mobile crusher or an excavator. ce

Terex said a key feature of the machine was the ability to raise the screenbox hydraulically by 600mm at the discharge end

The headsets are said to allow up to eight users to communicate simultaneously with no delay when transmitting

Simultaneous communicationEartec has launched a new generation of wireless headsets known as Comstar, said to allow up to eight users to communicate simultaneously with no delay when transmitting.

The manufacturer said the headsets were designed to enhance industrial job site productivity and safety by providing instantaneous, hands-free voice communications within a 732m range.

For instance, the XTreme is a specialty hardhat-compatible Comstar headset that features

miniaturised wireless circuitry and antenna installed inside the ear

cup. Eartec said this design eliminated the need for cables and belt pack transceivers. ce

A new entry-level laser scanner claims to offer a detailed and accurate 3D view of the world


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Keep on rolling

T he new RD27 asphalt roller from Wacker Neuson is compact and has been

designed with manoeuvrability fi rmly in mind.

The manufacturer said the articulated machine was 2.5m long and 1m wide with no overhang, and featured a turning radius of 3.6m for flexible movement in limited spaces.

Technology is also a key element of the RD27’s design – operators can switch between low and high compaction force, for example, while the driver’s cabin is vibration damped and features a new multi-function lever that allows control of all vibration options and the water supply with one hand.

The vibratory roller RD27 is available in two versions. The base variant has the forward and backward folding roll-over

protective structure and the ergonomic driver’s seat.

The second version additionally offers a central lifting point for the simple transfer of the roller, a left-sided armrest, drum-edge lighting, and a fold-down scraper bar, plus an optional automatic vibration connection and water cut-off.

Wacker Neuson said improved all-round visibility had been achieved through the modified shape of the hood and high seating in the cab. It said the roll-over protective structure could also be folded forward or backward if needed, so the user could work in restricted spaces, for instance under eaves.

In addition, the foldable roll-over protective structure is said to make transporting the machine easier for the contractor. ce

A new articulated roller has been designed to be flexible in restricted spaces

EQUIPMENT

Wacker Neuson said improved all-round visibility had been achieved through the modified shape of the hood and high seating in the cab

Upgraded remote demolition robot

Excavators for EuropeLiugong has launched a new excavator for the European market, available from May. The manufacturer’s E-Series includes the 922E and 925E models – upgrades from the current 922LC and 925LC machines – and the larger, entirely new 930E machine.

In line with current European Union emissions standards, the 922E, 925E and 930E are fitted with Stage IIIB engines.

The smaller 922E has an operating weight of 22 tonnes and a maximum digging depth of 6,595mm, while the 925E has an operating weight of 25.5 tonnes and a maximum digging depth of 6,925mm, and the 930E has an operating weight of 31.3 tonnes and a maximum digging depth of 7,300mm.

Each E-Series model is equipped with a Tier IV Interim/Stage IIIB Cummins 6.7L engine, and Liugong said that, compared with the previous 922LC and 925LC machines, the 922E and 925E models boasted reduced fuel consumption of 8% and 5% respectively.

These models are also said to feature increased bucket digging forces of 5% and 11.8% each.

Six working modes are available to optimise the machines’ performance and fuel consumption – power, economy, fine, lifting, breaker and attachment. In addition, the new excavators feature a two-speed automatic shift enabling them to go from fast in general circumstances to slow when driving over obstacles.

Should extra power be required while excavating, a power boost control system can also be activated temporarily to increase breakout force by 7% for a greater lifting capacity. ce

Brokk has upgraded its electric Brokk 400 remote-controlled demolition machine to include a larger undercarriage for heavy-tracking applications like tunnelling and mining, and for enhanced stability when operating with heavier attachments.

The manufacturer said it had also improved the hydraulic system – providing more efficient fluid flow when the machine was operating a drill attachment so there was more consistent power. A larger drive axis, rollers and

side-tracks, and a bigger undercarriage with tracks that are 10% longer than its predecessor are also said to contribute to a 60% improvement in stability when operating with heavier attachments.

Indeed, the Brokk 400 can handle attachments up to

644kg, and also boasts an hydraulic quick-hitch

system. ce

The updated Brokk 400 can handle attachments up to 644kg

The smaller 922E has an operating weight of 22

tonnes and a maximum digging depth of 6595mm


EQUIPMENT

Komatsu’s third generation hybridLaunch of HB215LC-2 onto the European market will offer increased operating weight and bucket capacity of 1.68m³

K omatsu Europe International’s new HB215LC-2 hybrid

hydraulic excavator, just released on the European market, is a third generation model, with an operating weight of 22.55 tonnes and a bucket capacity of 1.68m³.

Komatsu’s hybrid system works on the principle of swing energy regeneration and energy storage

Komatsu said that since 2008, when it claimed to be the first in the industry to introduce this hybrid construction equipment, over 2,500 Komatsu excavators have been bought worldwide.

Jim Venerus, deputy general manager for European product

marketing at Komatsu Europe, said, “The Komtrax monitoring system, standard on Komatsu models, shows that our customers are saving, on average, 25% fuel with their Komatsu hybrid machine, along with a significant reduction of CO2 emissions.”

The new excavator claims enhanced hybrid components and a new Komatsu EU Stage IIIB engine.

Yoshihiro Kobayashi, product manager for hybrid excavators at Komatsu Europe, said, “We estimate that the extra investment into a Komatsu hybrid machine can typically be recovered in two years or less.”

The latest Komtrax technology on the HB215LC-2 sends machine operating information to a secure website via wireless technology. Data such as operating hours, fuel consumption, location,

cautions and maintenance alerts are relayed to the web application for analysis.

Komatsu’s hybrid system works on the principle of swing energy regeneration and energy storage.

It includes Komatsu’s electric swing motor, power generator motor, ultra-capacitor and a 104kW SAA4D107E-2-A diesel engine. Komatsu’s Ultra-Capacitor is said to provide fast energy storage and instantaneous power transmission.

The kinetic energy generated during the swing-braking phase is converted to electricity, which is sent through an inverter and captured by the Komatsu Ultra Capacitor. When accelerating under workload conditions the captured energy is discharged quickly for upper structure rotation and to assist the engine as commanded by the hybrid controller. ce


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Mini excavators - KHL Group

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