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AAAS O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S

GLOBAL

March 2014FEATURES

MEN OF STEEL

An electric-driven, vertical centrifugal pump used in steel

production at LBTEC INDUfinish was “rotted away by the

chemistry we were pumping” in only six months, the com-

pany said, before replacing it with a solid-body plastic air-

operated double-diaphragm (AODD) pump. Plastic AODD

pumps work on a principle of positive displacement, hav-

ing a diaphragm in each of their two pumping chambers.

These diaphragms are connected by a shaft so that when

the compression stroke takes place in one chamber, the

suction stroke takes place simultaneously in the other. The

result is efficient operation when handling corrosive liquids.

LBTEC INDUfinish says it’s never seen any leakage from

the pump or its connections. Read more on page 3.

SA PETROCHEMICAL 2014 OUT-

LOOK SOMEWHAT OPTIMISTIC

Columbia oil refining looks at naptha de-

liveries, and Brazil sees volume and value

increase. Read the story on page 9.

ASIA GIANT AWAKENS TO

STEEPER WATER ISSUESBeijing is developing reclamation projects to

reduce con-

sumption

and is also

launching a

resources

cleanup

program.

Learn more

on page 7.

Click Here to Compare Hundreds of Products & Services

S O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S

GLOBAL

1 GlobalProcessinG•march2014

ADVERTISING REPRESENTATION

mikeWasson,Publisherphone: 001+973-539-7715

email: mikew@grandviewmedia.com

ProductivityPersPectives ..............................................2

euroPemenofsteelAir-operated double-diaphragm pump solution applied

in the pre-treatment of raw steel ............................................................ 3

ASIA

asiagiantawakenstosteeperwaterissuesBeijing develops reclamation projects to reduce consumption;

launches resources cleanup program ..................................................7

southamericasapetrochemical2014outlooksomewhatoptimisticColumbia oil refining looks at naptha deliveries; Brazil sees volume

and value increase ................................................................................. 9

northamericachem-industry,o&Gandshale-gasexpansionhandinhandMarcellus shale is the big gorilla with potential to impact

European energy cost ...........................................................................11

CONTENTS

S O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S

GLOBAL

3

7

9

11

Jayhaas,districtmanaGer phone: 001+205-572-1058 email: jay@grandviewmedia.com

elizabethmarloWe,accountmanaGerphone: 001+205-408-3736 email: liz@grandviewmedia.com

Grain-bin explosions were one big safety prob-

lem in the United States until 1987, when OSHA’s

grain-handling facilities standards yielded major

improvements.

No comparable OSHA standards exist today to

cover combustible-dust explosion risk. However, the

U.S.’s National Fire Protection Association advocates

NFPA 654 as the standard for prevention of fire

and dust explosions from handling combustible

particle solids. The ATEX directives in the Euro-

pean Union cover similar ground.

Moreover, OSHA’s national emphasis program

for combustible dust has performed more than

2,600 inspections since 2008, when some major

combustible dust explosions occurred. More than

12,000 violations were identified and more than

$22 million in fines levied.

In the years between 1980 and 2005, the U.S.

Chemical Safety Board reported 281 explosions

caused by ignited combustible dust, resulting in

near 200 deaths and more than 700 injuries.

Combustible dust explosions over the past

decade in U.S. plants are blamed for well over

100 fatalities and hundreds more injuries. Sadly,

experts believe these accidents could have been

prevented if the companies involved had followed

best practices for fire and explosion protection. A

wide range of problems can contribute to explo-

sion risk in a facility, but some common denomi-

nators exist.

Experts say one of the biggest threats to safety is

unnecessary insistence on maintaining the status

quo. A dust hazard can accumulate over time, and

just because a plant explosion hasn’t happened

doesn’t assure it won’t happen.

If all this causes you to think, please know that

on April 10, Processing will host a webinar and

update on NFPA standards for combustible dust,

with a focus on NFPA 654.

Learn about the five elements that lead to dust

explosions, active and passive control devices and

Kst values for estimating risk. General tips on

explosion prevention, latest housekeeping require-

ments and avoiding common compliance shortfalls

will be discussed. You’ll also have an opportunity

to ask questions.

We hope to see you there. Register at:

processingmagazine.com/combustible-dust-rules.

KEVIN PARKEREditorial DirectorKParker2@grandviewmedia.com

COMBUSTIBLE DUST EXPLOSIONS OCCUR ALL THE TIME

PRODUCTIVITY PERSPECTIVES

2 GlobalProcessinG•march2014

S O L U T I O N S F O R T H E P R O C E S S I N D U S T R I E S

GLOBAL

GLOBAL PROCESSING

GLOBAL PROCESSING Magazine is published by Grand View Media Group. Edito-rial and Executive Offices: 200 Croft Street, Ste 1, Birmingham, AL 35242. Send address changes to PROCESSING Magazine, PO BOX 2174, Skokie, IL 60076-7874. © Grand View Media Group, 2014. GLOBAL PROCESSING Magazine assumes no responsibility for validity of claims in items reports.

For Subscription Questions/Inquiries:U.S. – 866-721-4807 Outside U.S. – 847-763-1867Email – processing@halldata.comSubscribe / Renew / Change of Address:www.processingmagazine.com/subscribe

Publisher, Mike Wasson Ph: 973-539-7715, Email: mikew@grandviewmedia.com

Editorial Director, Kevin Parker Email: kparker2@grandviewmedia.com

Managing Editor, Nick Phillips Email: nphillips@grandviewmedia.com

Associate/Web Editor, Christy Underwood Email: christy@grandviewmedia.com

Art Director, Julie Flynn Email: julie@grandviewmedia.com

Marketing Manager, Mary Beth Romano Email: marybeth@grandviewmedia.com

Advertising Customer Service, Cookie Rayford Email: cookie@grandviewmedia.com Administrative Team:General Manager, Barry LovetteVice President of Operations, Brent KizzireVice President of Finance, Brad Youngblood Group Director of Circulation & Fulillment, Delicia PooleCirculation Manager, Anna Hicks

3 GlobalProcessinG•march2014

Steel possesses the

strength and structural

integrity to support a 100-

story skyscraper or a mile-

long extension bridge. Yet

the process used to manu-

facture steel is an extremely

delicate one.

One person very familiar

with steel-making intrica-

cies is Wim Brandsema,

director and an owner

of LBTEC INDUfinish, Emmen, The Netherlands. Founded in 1991,

LBTEC INDUfinish supplies systems used in surface-treating steel.

“We currently sell our equipment mainly throughout Europe and we are

starting to pick up business in Northern Africa and the Middle East,” said

Brandsema. “LBTEC INDUfinish specializes in hot-dip galvanizing, par-

ticularly the pre-treatment stage of the hot-dip galvanizing process.”

hottotrotThe pre-treatment that leads to the actual hot-dip galvanizing of steel is

precise and exacting:

• A piece of raw steel is pre-treated with a degreaser to remove any oil and grease from its surface.

• The steel is “pickled” in a hydrochloric acid bath.• The steel is dipped in flux fluid to ensure the zinc will react correctly

with the steel.

• The steel is placed in a melted zinc bath at 450 degrees C (about 840 degrees F); if the previous three steps were not followed properly, the zinc

will not adhere to the raw steel.

• The piece of steel is hot-dip galvanized.LBTEC INDUfinish’s system houses the flux fluid used in the pre-

treatment. The system includes four compartments: the first contains the

flux fluid; the second mixes the flux fluid with certain chemicals to obtain

the correct pH level; the third receives the flux fluid after it passes through a

filter press to en-

sure that any iron

in the flux fluid

is collected, al-

lowing only clean

flux fluid to come

out; and the

fourth gathers the

used flux fluid

before transfer to

the flux-cleaning

unit and back to

the first flux-fluid

Men of steelEUROPE

Flux-fluid systems are used to pre-treat raw steel before it is intro-

duced to the hot-dip galvanizing process.

LBTEC INDUfinish Sales Manager Erik van der Staaij,

left, and Director Wim Brandsema, center, with one of

the company’s flux-fluid systems.

By Bernd Reitemeyer

Air-operated double-diaphragm pump solution applied in the pre-treatment of raw steel

4 GlobalProcessinG•march2014

EUROPE Almatec continued

tank. The system’s heartbeat is the four individual pumps keeping the flux

fluid flowing amongst the four compartments.

“We began producing these units in 2006 and the most important issue

is that you have to make sure it is not going to be corroded when oper-

ated,” said Brandsema. “Flux fluid

is very aggressive so we have to

have a pump that that will last

at least 10 years. We knew that

to manufacture our products we

would need plastic pumps that

would have to deal with very cor-

rosive fluids like hydrochloric acid.

Steel, carbon steel and stainless

steel aren’t compatible with these

very aggressive fluids, so you need

plastics like PE, PP, PVCs and

PVDF.”

challengesearlyon“An electric-driven, vertical

centrifugal pump for the second

stage lasted only six months,” said

Erik van der Staaij, sales manager

for LBTEC INDUfinish. “At that

point, the engine was rotted away by

the chemistry we were pumping.”

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The solid-body, plastic construction of AODD

pumps make them well-suited for handling

aggressive and corrosive fluids used during the

hot-dip galvanizing process for steel, including

flux fluid and hydrochloric acid.

EUROPE Almatec continued

As it happened, the other three pumps contained in the system were solid-

body plastic air-operated double-diaphragm (AODD) pumps from Almatec, Kamp-Lintfort, Germany. In 2008, Almatec became a founding member of the Dover Corp.’s Pump Solution Group, Oakbrook Terrace, Ill.

“We looked at the other three pumps,” said van der Staaij. “We didn’t

see any corrosion, so we mounted another Almatec pump for mixing the

chemical solution and it worked fine. We have never seen any leakage from

the pump or connections, not on the thread or the pump body itself; ev-

erything sits tight.”

Plastic AODD pumps are positive-displacement pumps that have a dia-

phragm in each of their two pumping chambers. These diaphragms are

connected by a shaft so that when the compression stroke takes place in one

chamber, the suction stroke takes place simultaneously in the other. This re-

sults in efficient operation when handling any type of corrosive liquid.

The pump features solid-body design. Typically, construction is of

polyethylene (PE), which offers abrasion-resistance said to be seven times higher than pumps made with polypropylene (PP) — while still having similar chemical-resistance characteristics — and are 1.6 times more du-

rable than stainless-steel pumps.

apumpperformsSolid PE also delivers better sealing, higher static weight, smoother

operation and better torque retention than other popular materials of

construction. For specific applications, E-Series pumps can also be con-

structed of PE, PE conductive, polytetrafluoroethylene Teflon (PTFE) and PTFE conductive. All of the pump’s cylinder valves are constructed

with PTFE; diaphragms are made of ethylene propylene diene monomer

(EPDM), PTFE/EPDM and nitrile butadiene rubber (NBR); and ball

5 GlobalProcessinG•march2014

Wim Brandsema, left photo, and Sales Manager Erik van der Staaij, right photo, oversee operations at LBTEC INDUfinish.

EUROPE

6 GlobalProcessinG•march2014

Almatec continued

valves are made of EPDM, PTFE, NBR and stainless steel.Since 2006, LBTEC INDUfinish has produced more than 50 flux-fluid

systems used in steel-making applications around the world.

“The first pump from 2006 we overhauled in 2012 and we changed the

membranes, we changed the valves, we changed everything, but there was

no need to change them,” says Brandsema. “It was still running perfectly

with the valves and membranes of 2006, even handling an aggressive fluid.

At the heart of our units you will find Almatec E-Series plastic pumps. We

rely on them, and we would choose nothing else.”

Bernd Reitemeyer is regional manager – Western Europe for Almatec® and

Pump Solutions Group (PSG®). He can be reached at Bernd.Reitemeyer@

psgdover.com. Based in Kamp-Lintfort, Germany, Almatec is one of the world’s

leading manufacturers of air-operated double-diaphragm (AODD) pumps and

is an operating company within Dover Corporation’s Pump Solutions Group

(PSG®). Find more information on Almatec at www.almatec.de and PSG at

www.psgdover.com.

almatecwww.almatec.de

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MORE THAN EQUIPMENT

7 GlobalProcessinG•march2014

ASIA

With rapid industry growth in China,

domestic demand for water and waste-

water treatment solutions has been

increasing. In a bid to provide a more

sustainable water system to industrial

and individual consumers, the Beijing

Water Authority has set out a plan to

start the construction of 16 new water

reclamation plants over the course of

this year.

Meanwhile, the country is launching

a massive $330-billion project in an

ambitious attempt to deal with severe

water pollution, according to state

media quoted by Reuters.

According to the website Quartz,

many rivers in China are so polluted

the water is dangerous to touch, thousands of rivers have dried and disap-

peared due to declining rain and drought, population and industry growth

and past reservoir building. Water tables in the northern provinces around

Beijing are falling two or three meters a year.

Officials with the Beijing Water Authority say the huge demand for

water in the capital will be met with a reliable alternative source, adding

to the 14 reclamation facilities already

under construction.

Pressing problems

According to Jin Shudong, director

of the authority, the quality of the re-

claimed water will be improved thanks

to the upgrades that the authority has

been planning and implementing. The

city is hoping to include more social-

sector capital in water reclamation

projects and in its sewage treatment

plants, which at the moment are mostly

funded by the government, Jin added.

At present, there are 16 functioning

reclamation plants in Beijing that con-

tribute to a reduction of the amount

of freshwater used. By the end of 2014 the estimated consumption of re-

claimed water in the capital city is likely to have reached 860 million cubic

meters, Eco-Business said.

Last year the city of Beijing consumed a total of 3.6 billion cubic me-

ters of water, of which 800 million cubic meters were produced by recla-

mation facilities.

Asia giant awakens to steeper water issues

Beijing develops reclamation projects to reduce consumption; launches resources cleanup program

Guang Niu/Getty Images Asia Pac/Thinkstock

ASIA Beijing continued

The most populated country in the world has relatively small water reserves

and the problem of water scarcity has become particularly pressing over the

past few years. The situation in the northern part of China is especially alarm-

ing as there is less water available per capita than in the Middle East.

The problem is further aggravated by the fact that parts of the country’s

groundwater reserves are heavily polluted by industrial activities, potentially

putting residents at risk. Government data quoted by Reuters shows that

57.3 percent of 5,000 groundwater checkpoints surveyed in 2012 were

heavily polluted and contamination could flow into drinking water supplies.

Big bucks, what bang?

According to the China Securities Journal, citing the Ministry of Environ-

mental Protection, authorities are still working on the final draft of the plan

but the financial details have already been decided. The project will see $330

billion invested in various programs, including water treatment, membrane

technology and recycling, aiming to improve the country’s water quality by

between 30 and 50 percent.

The projects are not without controversy, as some experts believe the efforts

to move water from the south of the country to the north will cause more prob-

lems than it solves, perhaps permanently damaging the region’s eco-system.

Previous estimates by the government predicted that over the next five

years 60 billion yuan would have to be invested in constructing sludge treat-

ment plants, Reuters said.

8 GlobalProcessinG•march2014

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9 GlobalProcessinG•MarcH2014

SA petrochemical 2014 outlook somewhat optimistic

soutHaMerica

Analysis by global research firm BMI re-

veals that current transformations in the Co-

lombian oil-refinery industry might open up

significant opportunities for a rise in naphtha

feedstock available to downstream petrochem-

ical businesses.

Meanwhile, Brazil is set to increase its

plastics production in 2014, according to an

analysis by local plastics industry association

Abiplast. The forecast predicts a rise in both

volume and value, Business News Americas

reported.

The BMI report, published by Fast Market

Research, says that Colombian rubber and plastic production fell in 2013,

despite a slight uptick in output in the second half of the year. The over-

all poor performance of the country’s petrochemical industry was linked

to deterioration in market conditions and lower average spending.

Overall in 2013, Colombia’s petrochemical facilities operated at a maxi-

mum capacity of 500,000tpa PP, 400,000tpa PVC, 120,000tpa ethylene,

45,000tpa benzene, 20,000tpa toluene, 35,000tpa xylenes, 45,000tpa PET

and 60,000tpa LDPE. BMI has forecast that these capacities are unlikely

to change over the next five years.

However, the report expects that Colombian market conditions will

improve in 2014, leading to growth in indus-

trial production and better performance of

petrochemicals-consuming sectors.

Not all roses

Nevertheless, expansion of petrochemical

capacities is not considered viable at present

and will only be possible when the upgrades

of two refining facilities at Barrancabermeja

and Cartagena are completed in 2014 and

2015. The planned expansion of the country’s

second largest refinery, Ecopetrol’s refinery in

Cartagena, will take place this year..

In related news, Colombia’s state-owned oil company Ecopetrol is plan-

ning to invest nearly $10.6 billion over the next 12 months, with the bulk

of this allocated to exploration and production, the company announced.

The sum represents an 11-percent hike in the investment budget on

2013, Ecopetrol said. The increase will be used to add more crude oil

reserves to the company’s portfolio and to fund the drilling of 20 explor-

atory wells, most of which will be located onshore. The company also

stated that its two main refineries will undergo upgrades in 2014. Overall,

some $6.47 billion will be invested in company projects, while a further

$4.13 billion will go to subsidiary operations.

Photo credit: CelsoDiniz/iStockphoto/Thinkstock

Expansions of existing refineries continues; $10 billion+ slated for oil E&P

10 GlobalProcessinG•MarcH2014

soutHaMerica

Turning to South America’s largest country, Abiplast estimated Brazil

will increase its total output of plastics in 2014 up to 1.8 percent in terms

of volume, following a 1.6-percent increase in 2013. Meanwhile, demand

for plastics in Brazil will rise 9 percent in value — an increase that is simi-

lar to the one predicted for this year, the website said.

Plastics performing

The Brazilian plastics market is expected to become more favorable and

profitable to local plastics producers. Over the past few years the increase

in demand for plastics has been met by imported products mostly, but

Abiplast said that 2014 will see the start of a reversed trend that will ramp

up domestic production.

Commenting on the predictions, Abiplast president José Ricardo Roriz

Coelho stated that demand for plastics is expected to rise following the

depreciation several months ago of the Brazilian currency, which will af-

fect imports of food products, especially those that are already packaged.

Since food packaging accounts for the largest proportion of demand for

plastics, the sector will be the main driver of plastics production growth

in the country next year.

Roriz added that one of the main challenges for the Brazilian plastics

sector was the rise in thermoplastic resin prices last year. Globally, costs

increased by 18 percent between January and September 2013, while Bra-

zilian plastic manufacturers only hiked product end prices by 4.55 percent

over the same period.

Petrochemical continued

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Marcellus Shale is the big gorilla with potential to impact European energy cost

11 GlobalProcessinG•march2014

Chem-industry, O&G and shale-gas expansion hand in hand

Total investments in the U.S. chemical indus-

try linked to natural gas and natural-gas liquids

projects have broken the $100 billion barrier,

according to the latest data from the American

Chemistry Council (ACC).

Cal Dooley, president and CEO of the ACC,

commented that the figures represented an

“historic milestone” for the chemical industry

of the United States and served as proof of

the enormous potential of shale gas. Because

of the abundance and affordability of U.S.

natural gas, the country is now a magnet for

chemical industry investments, he said.

Despite ongoing political controversy, these shale fields are proving

prolific. According to an analysis by investment and consultancy firm

Morningstar, the Marcellus Shale will be producing this year an extra 3

billion cubic feet per day and a further 2 billion cubic feet per day in 2015,

bringing the total gross production from the play to between 14 billion

and 20 billion cubic feet per day. Even at that rate, the play has an esti-

mated 30 to 75 years of resource potential, the analysis said.

Other developments in the rapidly unfolding saga include Oklahoma

City-based energy company Devon Energy Corp.’s February purchase of

82,000 net acres in the Eagle Ford Shale from GeoSouthern Energy. U.S.

refineries are benefiting from rising crude

production. And, the U.S. Congress, by con-

sidering expansion of export capabilities, is

looking at U.S. shale gas as a possible means

to limit Russia’s ability to influence events in

Europe.

Building infrastructure

As of February, 148 chemical industry

projects have been announced, to a total

value of $100.2 billion, with over half of the

sum coming from companies based overseas.

These include plans for new facilities, expansions

of existing facilities and process changes to production lines. The ACC

estimated that the current rate of investment might result in up to $81

billion in new chemical industry output annually.

Students of the industry have pointed out that it is inevitable that a

considerable percentage of these projects will never be realized.

Nevertheless, this level of investment could create about 637,000 per-

manent new jobs by 2023, including 55,000 jobs in the chemical industry,

a further 314,000 jobs in supplier industries and an extra 267,000 payroll-

induced jobs where those hired in the chemical industry will spend their

money. The ACC also estimated that an additional 222,000 temporary

northamerica

Photo credit: anek_s/iStockphoto/Thinkstock

12 GlobalProcessinG•march2014

northamerica Marcellus continued

jobs could be created during the capital investment phase.

Production of natural gas from the Marcellus Shale is expected to ac-

count for about a quarter of the total U.S. natural gas production by 2015,

says Morningstar.

marcellusmain-lineThe Marcellus Shale, which spans from New York to West Virginia, is

among the most prolific sources of natural gas, along with the Eagle Ford

Shale in the south and the Bakken Shale in North Dakota, but its impor-

tance as a driver for gas production is set to increase even further over

the next couple of years, the report found.

The Marcellus Shale currently accounts for about 20 percent of total

natural gas production, with an average output of 10.4 billion cubic feet

per day in 2013, according to data from the Energy Information Admin-

istration. Morningstar explained that the “astounding” growth of the

Marcellus Shale could be put down to the vastly improving efficiency of

operations, such as pad drilling and 24-hour operations.

Confirmation of the Devon Energy Corp. deal comes three months

after the initial agreement between it and GeoSouthern Energy was re-

ported.

The site is located in DeWitt and Lavaca counties in Texas and makes up

a significant part of Devon’s plans to invest about $1.1 billion in the Eagle

Ford play and to drill more than 200 wells. Devon expects its net produc-

tion in the play to come in at an average of between 70,000 and 80,000 bar-

rels of oil equivalent per day over the remaining months of 2014.

20ANNIVERSARY

th

1994-2014

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A n n u a l F a c t o r y C a l i b r a t i o n

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northamerica Marcellus continued

Refined capacity

Although the United States has not built a large refinery for decades,

existing processing facilities are expanding capacity in a bid to supply

increasing fuel production. Construction of major facilities is partly im-

possible because of tight environmental regulations, so refiners are either

building small, highly specialized plants, or are looking for ways to adapt

their existing refineries to higher output rates and production lines, The

Wall Street Journal reported.

According to data gathered by the news service and consultancy IHS,

U.S. refineries are projected to add capacity of more than 400,000 bar-

rels of oil per day to operational facilities through 2018. This is roughly

the capacity that a major new refinery would have, according to the news

source. Capacity expansion is on the agenda for a number of large com-

panies, including Valero Energy and Marathon Petroleum Corporation.

A relatively new industry trend is the construction of so-called “split-

ters” or “toppers,” which are used to process the superlight oil from the

Eagle Ford Shale in Texas. Building a splitter is relatively inexpensive and

the facility is not actually considered a refinery because it is not suitable

for a wide range of crude types. Because crude cannot be exported from

the United States, these small plants can be used to process oil to an ex-

tent that allows the refined product to be shipped to refineries in Latin

America, Europe and Asia for further processing.

The current conflict in Ukraine, in a considerable degree driven by

energy geo-politics, is lending support to those who want to ease export

restrictions on various forms of petroleum.

13 GlobalProcessinG•march2014 Click here for the ad in German

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A History Steeped in Innovation.

Cashco, Inc.

P.O. Box 6, Ellsworth, KS 67439-0006

Ph. (785) 472-4461, Fax: (785) 472-3539 | www.cashco.com

The all new

PGR-1 Pressure Regulator

from Cashco

Model PGR-1 is a high accuracy, pressure loaded,

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The flow to open design includes an internal

pressure balancing piston-cylinder that

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design allows the same basic unit to cover a

broad range of pressure settings.

Performance meets or exceeds that of

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operated designs. The PGR-1 regulator is

applied primarily in clean natural gaseous

service and fuel gas – sweet or sour.

Learn the full story on the new

line of Control Valves by visiting

www.cashco.comModel PGR-1

CELEBRATING 100 YEARS