hfi global rz english.qxd:mfr€¦ · 14 hfi global · 01/2008 salzgitter mannesmann international...

HFIGLOBALThe magazine of Salzgitter Mannesmann Line Pipe for customers and partners

Cover topic Change of name for Mannesmannröhren-Werke

Mannesmann Fuchs Rohr becomes Salzgitter Mannesmann Line Pipe

Issue 01 · April 2008

InterviewMarc Rasquin:»Two strong brandsmove closer together«Page 8

DubaiA portrait of the sales of fice of Salzgitter Mannes-mann International4

FranceThe Zénith in Strasbourg.France’s biggest concert hallPage 10

HFI_Global_RZ_English.qxd:MFR 26.03.2008 16:11 Uhr Seite 1

EDITORIAL

Dear Reader,

You are looking at the latest issue of ourmagazine for customers and partners.

In view of the change of name fromMannesmann Fuchs Rohr to SalzgitterMannesmann Line Pipe, we decided toredesign the layout of this publication.And together with the new design comesa new name: HFI Global. This is both apromise and a program, as in future weintend to continue to report on interestingprojects and successful cooperation withcustomers and partners around the world.

The new issue takes us from Siegen toStrasbourg in France and the »HintertuxerGletscher« in the heights of the Alps. Wethen go somewhere very different, toDubai in the United Arab Emirates, for anon-the-spot report on the local Sales Officeof Salzgitter Mannesmann International.

A look back in history takes us to Aus-tria again, and demonstrates impressively

that successful business relationships cancome into being under the most difficultof circumstances, and can also be main-tained over many decades.

On pages 4 to 9 we provide you withinformation and background facts andexplain how our customers profit from thecloser ties between the two strong brands»Salzgitter« and »Mannesmann«.

Last but not least, we report on furtherinvestment in new technologies. In the report on the new QT facility, we explainhow we intend to break into additionalmarket segments in the field of HFI-weldedOCTG pipes.

As always, our aim is to continue toreport on innovative and exciting productsand projects from around the world.

Happy reading!

Marc Rasquin, Chief Executive Officer

2 HFI GLOBAL · 01/2008


Contents

Cover topic

04 Mannesmann Fuchs Rohr becomes Salzgitter Mannesmann Line Pipe

06 Optimal customer benefit

08 »Two strong brands move closer together«Interview with Marc Rasquin

Projects

10 UFO, sculpture, Chinese lantern – Zénith in Strasbourg

18 Snow assured – The Hintertux glacier lift

Sales partner

14 Salzgitter Mannesmann International Dubai

History

22 Good connections – Erne Fittings, Austria

Technology

24 New QT facility at Hamm Works

Cooperation

25 Logstor and Salzgitter Mannesmann Line Pipe

HFI GLOBAL · 01/2008 3

04

10

18

24

GESIS/TELCATMULTI-COM

IT, data processingTelecommunications

Mannesmann-röhren-Werke

StrategyFinancing

EUROPIPE/Salzgitter

MannesmannGroßrohr

SalzgitterMannesmann

Grobblech

HüttenwerkeKrupp

MannesmannStarting material


Precision


Seamless TubesB.V.


Stainless Tubes SalzgitterMannesmanInternationa

Trading/Marketing


Line Pipe

SalzgitterFlachstahl

Startingmaterial


HandelTrading/

MarketingPurchasingLogistics

Salzgitter AGInvestmentsFinancingStrategy


ForschungResearch andDevelopment

06

14

22

25


Mannesmann Fuchs Rohr becomesSalzgitter Mannesmann Line Pipe

After seven highly successful years, the »Salzgitter« and »Mannesmann« brands aremoving closer together. Therefore, like all fully consolidated subsidiaries in the Tubesdivision of Salzgitter AG, Mannesmann Fuchs Rohr will also change its name and will

in future be known as Salzgitter Mannesmann Line Pipe.

Cover topic



ince Salzgitter AG acquired Mannesmann-röhren-Werke in 2000,

the Tubes division has becomean important part of the groupand is today responsible for a large pro-portion of its turnover.

Reason enough for this »marriage ofsteel«, as the merger was christened,which is now in its eighth year, to bemade more visible to the outside world.

All fully consolidated subsidiaries inthe Tubes division are therefore being renamed and will in future include both»Salzgitter« and »Mannesmann« in theirnames as a unifying feature. »The tubecompanies are outstandingly positionedin their fields of business«, emphasizes

Dr. Wolfgang Leese, Chairman of the Exec-utive Board of Salzgitter AG, referring tothe decision.

The fusion of Salzgitter and Mannes-mann reflected in the change of name willalso have an effect on the HFI weldedsteel tubes specialists. »The name ›Salz-gitter Mannesmann Line Pipe‹ will makeclear within our company, too, that thetube producers of Mannesmannröhren-Werke have experienced a very success-ful integration into the Salzgitter groupover the past seven years and more«,

says Jörg Hernando.As a result of this develop-

ment, Salzgitter MannesmannLine Pipe GmbH, with its head-quarters in Siegen, formerly

known as Mannesmann Fuchs Rohr, hasan excellent market position. »With twoplants in the heart of Germany, we wereable to position Salzgitter MannesmannLine Pipe more strongly in the individualproduct sectors in recent years, to thebenefit of our customers. The advantagesresulting from the integration into theSalzgitter-Group have been and are a keyfactor in expanding the range of productsand services of the Tubes group andSalzgitter Mannesmann Line Pipe itself«,declares Hernando.

S


»The tube companies are outstandingly positioned in their fields of business.«Dr. Wolfgang Leese, Chairman of the Executive Board of Salzgitter AG


GESIS/TELCATMULTI-COM

IT, data processingTelecommunications

Mannesmann-röhren-Werke

StrategyFinancing

EUROPIPE/Salzgitter

MannesmannGroßrohr


Grobblech

HüttenwerkeKrupp

MannesmannStarting material


Precision


Seamless TubesB.V.


Stainless Tubes SalzgitterMannesmannInternational

Trading/Marketing


Line Pipe

SalzgitterFlachstahl

Startingmaterial


HandelTrading/

MarketingPurchasingLogistics

Salzgitter AGInvestmentsFinancingStrategy


ForschungResearch andDevelopment

Synergy effects result from many links tothe Mannesmannröhren-Werke companies.To a large extent, these effects benefit the customers of Salzgitter MannesmannLine Pipe. Moreover, there are direct andindirect relationships with companies ofthe Salzgitter AG group and the parentcompany itself.

Combining forces to benefit customersSteel tubes from the Tubes division of Salz-gitter AG satisfy demand from customersin the energy and water sectors, the auto-motive industry, the plant and mechanicalengineering sectors and the constructionand steel engineering industry.

The Tubes division includes top companiessuch as Salzgitter Mannesmann Precision,

the market leader in precision tubes; Euro-pipe, the world market leader in large-dia-meter pipes; and Salzgitter MannesmannLine Pipe, the specialists for HFI-weldedsteel pipe.

It is not only the individual producers inthe group that profit from the more than100 years of combined experience andcompetence in the production of steeland seamless and welded steel pipes.»We can improve and combine thestrength and experience of all the groupplants and successfully focus them tomeet the needs of existing and futurecustomers« says Jörg Hernando, SalesDirector of Business Unit 2 for Water Pipeand Commercial Tubing at SalzgitterMannesmann Line Pipe

Synergy effect of the Salzgitter GroupWithin the group, customers and compa-

Optimal customer benefit

From supply chain management to know-how transfer and major investments. Not only Salzgitter Mannesmann Line Pipe benefits from integration into the

Salzgitter AG group of companies – so do its customers.

Cover topic Name change at Mannesmannröhren-Werke


»We are able to focus the combinedstrength and know-how of all the Salz-gitter Group’s plants, trading companiesand research to achieve maximum benefit for our customers.«

Jörg Hernando, Sales Director ofSalzgitter Mannesmann Line Pipe


In late 2007 there was a change of management at Salzgitter MannesmannLine Pipe. On 1 October 2007, MarcRasquin took over as Chief ExecutiveOfficer. At the same time the manage-ment tasks within the company were reorganised:

Marc RasquinChief Executive OfficerSales and StrategyQuality and Controlling

Jörn WinkelsTechnology and ProductionGeneral Administration and Data ProcessingHuman Resources

Ulrich KillFinance and accounting

Changes in the business unitsIn Sales, Jörg Hernando became SalesDirector of the newly created BusinessUnit 2. The new Sales Director of Busi-ness Unit 1 since 1 January 2008 is

Salzgitter Mannesmann Line Pipe profitsfrom its membership of the Mannesmann-röhren-Werke group of companies and theSalzgitter AG Group.

An overview of the new sales structure. Detailed up-to-date information on areas ofresponsibility and contacts can be found onthe Internet at www.smlp.eu

Business Unit 2: J. Hernando

Line Pipe, Water Commercial Pipe

[email protected]. +49 271 691-215

Business Unit 1: M. Kosfeld

Line pipe (on- and offshore) OCTG


Sales Division 1.1: W. Pollaert

Central Asia, Russia, Belarus, Ukraine, Ireland, South America, Eastern Europe, Southeast Europe, Spain, Portugal, England, Scandinavia


Sales Division 1.2: K. Thannbichler

Germany, Austria, Switzerland, Italy, France, Belgium, Netherlands


Sales Division 1.3: A. Neumann

USA, Canada, Mexico, the Baltic countries, Africa, Middle East, Far East, Rest of World


In addition to the name changes, the sales structure of Salzgitter Mannesmann Line Pipe has also been reorganised.

nies profit from the parent company interms of strategy, investment, IT, dataprocessing and telecommunications. Inaddition, there are benefits in relation toquality management, certification, humanresources development, environmentalprotection, occupational health and safety,and trade and sales structures.

The accumulated know-how and ex-perience gained during many years of research and devel opment in the fields ofsteel and steel pipes have been channelledinto the Salzgitter Mannesmann ResearchInstitute and are available to all groupcompanies for product innovations andcontinued development.

The link between Salzgitter Mannes-mann Line Pipe and Salzgitter Mannes-mann Trading sets previously unsurpas-sed benchmarks for purchasers of pipesand accessories. »Commodity or specialproduction – our motto is ›Everythingfrom a single source for optimal customerbenefit‹«, says Jörg Hernando as he des-cribes the many advantages accruing tocustomers as a result of the alliance bet-ween the Mannesmannröhren-Werkecompanies and the Salzgitter Group.


Changed sales structure

The new sales structure at Salzgitter Mannesmann Line Pipe

Sales Division 2.1: F. Meyer


District Heating- andDistrict Cooling Line Pipe water Surplus Pipe

Sales division 2.2: H. Dix


Michael Kosfeld, who was previously atSalzgitter Mannesmann International inHouston.

As a result of the changes in BusinessUnit 1, all three business units now marketline pipes (on- and offshore) and OCTGcasings independently, each within theframework of regionally organised struc-tures. Business Unit 2 (Water Line Pipeand Commercial Tubing) is now dividedinto two sales areas. Both areas haveworldwide product responsibility.

Continued customer proximity»Basically we will continue to adhere tothe successful principle of ›one face tothe customer‹. Many milestones oftechnical progress are based on directcustomer contact, which will continueto be at the heart of our future activities«,states Jörg Hernando.

You can find an up-to-date, clearlyarranged list of direct contacts on theInternet at www.smlp.eu under ›Contact/Who’s who‹.

Commercial TubingStructural TubesMSH Section


Mr Rasquin, where is the SalzgitterMannesmann Line Pipe company in thespring of 2008?Our products are of a high technical qualityand are in great demand, as they can beused for a wide range of applications.Thanks to the incorporation of 24-inchpipes into our product range and the coor-dination of production in Hamm and Sie-gen, we are now well prepared to face thechallenges of the future. Nevertheless, weare of course aware that we are in a verycompetitive market. However, the conside-

rable increase in starting material costs willsoon force us to adjust our sales prices.

What are your priority targets and the ar -eas on which you are primarily focused?I see a need to act in several areas. Themain priorities are the establishment of anew sales structure and the alignment ofthis structure and the associated organisa-

»Two strong brands move closer together«

Marc Rasquin has been CEO of Salzgitter Mannesmann Line Pipe since October 2007.He knows the sector through and through, having decades of experience behind him insteel production and processing. In Siegen we talked about the key areas of his newjob, and the new company name.

Cover topic Interview mit Marc Rasquin

»We are of course aware that we are in avery competitive market.«

tion process to the market and customerstructures, and the introduction of SAP.

What does the change of name meanfor the company and its customers?Under our new name we present ourselveson the market in a uniform manner, togetherwith all fully integrated pipe companiesand the main trading companies. For ourcustomers, in particular, there is moretransparency with regard to the productsand services offered by the works and thetrading companies.



Are you not caught between the Groupon the one hand and the Mannesmann-röhren-Werke companies on the other?On the contrary. The new names makeeverything clear. Two strong brands aremoving closer together. Our customersbenefit from the synergy effects generatedby the intensive exchanges with MRW asa shareholder and the various pipe mills.Take research and development, for ex-ample, or quality management and know-how transfer. Within the Group we profitfrom the fact that we can make flexibleuse of all its resources. We can obtainstarting material, for example, from HKMor from Salzgitter Flachstahl. The completevalue chain from steel production throughprocessing to marketing is under thesame umbrella. This gives assurance toour customers, together with major bene-fits in terms of quality and short deliverytimes.

Keyword quality: Will excellent productquality be the decisive competitive ad-vantage in future?Yes, most definitely. We see our marketpositioning, also in the future, in the mix of commodities and technically superiorpipes. In addition, however, we want tospecialise and establish ourselves in nichemarkets. We are working above all to satis-fy high and very high product requirements,

Marc RasquinBorn 31.12.1955 in Luxemburg,married, 3 children

CareerMarc Rasquin has 25 years of professional experience as an engineer and manager at variouscompanies in the steel industry.

After studying the metallurgy of ferrous metals at RWTH AachenUniversity, he worked from 1980to 2004 as a rolling mill engineerand a quality control unit manager,in product research in companiesin Luxemburg, and as a productionmanager and subsequently mana-ging director at STUL (Société duTrain Universel de Longwy), a girderrolling mill in France, where hespent 7 years. In the early 1990she followed a masters course inhis spare time, which he completedin 1995, when he was awarded hisMBA from the Sacred Heart Uni-versity, Fairfield, Connecticut.

From 2004 to 2007 he wasmanaging director of StahlwerkThüringen, an electric steel-makingplant with a connected rolling mill.

HobbiesMarc Rasquin enjoys spending hissparse leisure time with his family.He plays tennis, reads and is anenthusiastic pilot.

which is why, for example, we have in -vested again in a quenching and temperingsystem for HFI-welded OCTG pipes at theHamm plant. Furthermore, we want to develop the described synergy effectsmore strongly so that our customers canbenefit from product solutions offeringcutting-edge quality at competitive prices.

What advantages does the new salesstructure offer to the customers?In reorganising our sales structure, we haveconsciously responded to the results thecustomer satisfaction analysis of 2007. In Business Unit 1, under Sales DirectorMr. Kosfeld, all three sales divisions arenow responsible for the marketing of allline pipes for onshore and offshore gasand oil activities. The same applies toOCTG pipes. The three regionally separatesales divisions, managed by Mr. Pollaert,Mr. Thannbichler and Mr. Neumann, aretherefore totally responsible for theseproducts.

In Business Unit 2, »Water Line Pipeand Commercial Tubing«, under Sales Director Mr. Hernando, we have embeddeda global responsibility for all products. Mr.Dix manages commercial tubes, structuraltubes and MSH sections. Mr. Meyer is incharge of water and district heat line pipeand surplus pipe.

»In reorganising our sales structure, wehave consciously responded to the re-sults the customer satisfaction analysis«

»This gives assurance to our customers,together with major benefits in terms ofquality and short delivery times.«


10 HFI GLOBAL · 01/2008

Project Zénith in Strasbourg

UFO, sculpture, Chinese lantern

France’s largest concert hall, the »Zénith« in Strasbourg, opened in early 2008. Themost striking feature of the ellipsoid structure designed by top Italian architect Massi-miliano Fuksas is the orange-coloured textile membrane that encloses the core of thebuilding and makes the hall glow in the dark. The special tubes for this spectacular ef-fect were supplied by Salzgitter Mannesmann Line Pipe.


HFI GLOBAL · 01/2008 11

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okyo Hotel, James Blunt, MarkKnopfler and the Chinese State Circus

have already performed at the Zénith, andmany other international stars will follow.

After 6 years of planning and building,France’s biggest and most modern con-cert hall is now up and running on theout skirts of Strasbourg. During the day, it exudes the calmness of a sculpture. At night, when it comes to life, it glowslike the structural tubes of its exoskeletondur ing their production in the steel mill.With out these tubes, the total load-bearingstructure could not have been realised.

The tubes supplied by SalzgitterMannes mann Line Pipe were produced atthe Hamm mill in exact lengths of 1780 mmwith 30-degree weld bevels and deliveredto the Sturm company in Daaden. Theywere erected outside a central concrete

core – the actual concert hall – with a wallthickness of 36 cm, leaving a generousspace between the outer and inner shells.These S355 J2H grade tubes were prefab -ricated in the diameter 406.4/20 mm on3-roller bending machines using the coldbending method. As the architectural design did not require simple circularsegments, the tubes had to be bent toindivid ual specifications involving radii ofbetween 50 and 90 metres. The tubeswere then transported to Aigle, in Switzer-land, where they were provided with attachment fittings for the membrane, andthen painted, before they were deliveredto the building site in Strasbourg.

Total investment of 78 million eurosThe building alone is estimated to havecost about 48 million euros, and another

Left: As it comes to life, thesculpture starts to glow in the dark.

Top: Between the externalmembrane and the core of the building is a generous pedestrian area. The structure,incorporating tubes from Salz-gitter Mannesmann Line Pipe,is both exciting and decorative.

Right: The seating can be flexi-bly arranged to accommodateup to 10,000 spectators. Thestage can be extended to asize of 600 square metres.

T


12 HFI GLOBAL · 01/2008

The Zénith during the build phase. In the foregroundare the tubes supplied by Salzgitter MannesmannLine Pipe. They were supplied in exact lengths 1780 mm with 30-degree weld bevels at both ends.

30 million euros were invested in new infra-structure facilities and outdoor installations.Whether as a symbolic gesture or just bychance, a new tree was planted for eachof the 3000 parking spots. Besides sport -ing and cultural events, trade fairs andconferences can also be staged, thanksto the generous indoor area, where up to 10,000 seats can be flexibly accom -

modated, and the multifunctional stage,which can be extended to a size of 600square metres.

Varied program of events for 5 million inhabitantsThe versatility of the Zénith and its variedprogramme of cultural, sporting and busi-ness events make it a major attraction for

The new TGV station, which was completed in 2007 and offers 50 rapid national and inter -national rail connections every day, came at just the right time for the Zénith’s opening.

Right: Attaching the special membrane overthe exoskeleton of structural tubes.

Below: The building site from the start of thework through to completion in January 2008.


HFI GLOBAL · 01/2008 13

the five million inhabitants of NorthernFrance and the neighbouring regions ofSwitzerland and Baden-Württemberg inGermany. The new TGV station, whichwas completed in 2007 and offers 50rapid national and international rail con-nections every day, came at just the righttime for the Zénith’s opening. Like the Zénith itself, the station is part of »Viaropa«,

an imaginary axis from the western edgeof Strasbourg to the Europa Bridge inKehl. A number of flagship projects havealready been completed along this axis.Further large-scale building projects in-volving millions of euros of investment,such as the Rivétoile shopping centre,will follow, changing the face of the cityas it moves into the 21st century.


14 HFI GLOBAL · 01/2008

Salzgitter Mannesmann International Dubai

Welcome to DubaiWhen it comes to ambitious construction projects and rapid growth, scarcelyany other city has made the headlines as often in recent years as Dubai. Reason enough for Salzgitter Mannesmann International to have its own local sales office there.


HFI GLOBAL · 01/2008 15

f my mother, almost 40 years ago, hadnot said ›Son, do your training at Man-nesmann – that is a sound German

steel company‹, then I probably wouldn'tbe where I am today.«

The speaker is Rainer Terlinden. Hegoes on to sum up his career succinctlyas »More than 35 years of gaining experi-ence in the steel and steel pipe trade«.

He is now responsible for the operativebusiness of Salzgitter Mannesmann Inter-national in the Middle East. The salesarea covers almost the whole ArabianPeninsula. From Kuwait through Bahrainand Qatar to Saudi Arabia, and fromYemen through Oman to the United ArabEmirates.

It is soon clear that the 58-year-old stillenjoys his work enormously and regardsDubai as both a personal challenge and ahome from home. »I know the region frommy first travels in my early years at Mannes-mann. At that time the Dubai Trade Centerskyscraper stood almost alone in themiddle of the desert. Today you have tolook carefully to find it between all thenew high-rise buildings.« The things thatimpress him most in Dubai are its rapidgrowth and polite manners, and the peace -ful way in which widely different nation -alities live and work together.

»In principle, we are still establishingourselves here« says Terlinden. And weare doing this very successfully. Althoughthe Dubai sales office has only existedsince 2006, and Rainer Terlinden has onlybeen in Dubai as sales office managersince June 2007, two large orders havealready been acquired. They concern an

I oil and natural gas pipeline across theUnited Arab Emirates. Europipe will supplyabout 220,000 tonnes of 48-inch pipesfor the Dolphin and IPIC projects. Thematerial will all be delivered by the startof 2009.

Terlinden also sees excellent oppor -tunities for Salzgitter Mannesmann LinePipe, especially with the new 24-inchheavy-wall pipes. »The potential is there.The price advantage relative to the lowerlarge-diameter pipe dimensions will inevi-tably make itself felt in the medium term,although the competition in the regionshould not be underestimated«, says Ter-linden. He has great faith in the good con-tacts to his sales agents in the individualregions. There are contacts with almostall large oil and natural gas companies inthe Middle East, including Aramco in SaudiArabia, Petroleum Development Oman,ADNOC in the United Arab Emirates, QatarPetroleum, Calvalley Petroleum in theYemen, and the Kuwait Oil Company, aswell as the major internationally operatingpipe-laying companies.

Terlinden’s view of the region's futurepotential is shared by the Salzgitter Group.This is why staff numbers at the Dubai office were recently boosted. Since Feb -ruary 2008, Björn Steffes has come fromSalzgitter Mannesmann Handel, and twonew female staff members have been recruited. Steffes is responsible mainly forsteel, sheet and plate, and sections. Withthis, Salzgitter Mannesmann Internationalnow sells all Salzgitter Group products.The only thing left to say is »Welcome toDubai«.

Head of the sales office in Dubai since mid 2007:Rainer Terlinden, Salzgitter Mannesmann International


16 HFI GLOBAL · 01/200816 TITEL 00 · MONAT 2008

From the desert into the sea

Faster, higher, ever more utopian – Dubai stands for high-tech, skyscrapers, rapidgrowth and huge construction projects. The background to this is the Emirate’s transition from an oil-based economy to become the global finance, trade and tourism metropolis of the 21st century.

Background Dubai – city of superlatives


HFI GLOBAL · 01/2008 17

he seven-star »Burj al Arab« hotelsymbolises Dubai to the world. Nevertheless, it will soon be over-

shadowed by the world’s tallest building,the »Burj Dubai«. The name translates asTower of Dubai, and its construction willbe completed in 2009. At 818 metres, itwill easily be the world’s highest building,and will be about twice as high as theEmpire State Building in New York.

Even more ambitious projects are inthe pipeline, however. There have longbeen plans to exceed the magical 1000metre mark, and the »Al Burj« (»TheTower«) will probably do so in 2010. It willhave 228 floors and stand 1050 metres tall.

There may be those who regard thesedimensions as unrealisable – a crazy dreamof over-ambitious investors – but they willalmost certainly be proven wrong. The smallEmirate on the Persian Gulf regularly suc-ceeds in astonishing the rest of the world.

Finance, trade and tourism metropolisRealising that Dubai’s oil reserves, esti-mated at about 10% of the world total,would continue to yield billions in incomefor just a few more decades, the ruling family Al Maktoum took steps to establishthe economy on a different basis. By crea-ting free-trade zones, they succeeded inattracting almost all internationally signifi-cant financial and trading institutions to Du bai. Together with a skilful policy ofinvest ment in »faster, higher, ever more

utopian«, the Emirate consistently succeedsin attracting the attention of the world.

No project is too ambitious. For in-stance, the plans for restructuring thetourism sector include an extension of thecoastline to ten times its current length ofabout 80 km. The first project, the »PalmIsland« will probably be completed thisyear. At record speed, a seemingly im-possible vision has become reality. Withinseven years an artificial island has beenplanned, created, protected, opened upand developed while, almost unnoticed,the population has grown from 60,000 toabout 150,000. From the very beginning,international stars and sportsmen havebeen among the affluent clientele attractedby the highly successful marketing.

The future: Living and working on the waterfrontFurther projects are already in progress.Two more, even bigger, palm islands arebeing created, and the Dubai Waterfront,where between 450,000 and 750,000people will be able to live and work, isunder construction. The latest project isthe creation of islands that will togetherform a map of the world when viewedfrom the sky. The concept of marketingcountries rather than islands has been soeffective that most countries were soldeven before work started. The desertstate is therefore well on the way to becoming a high-tech water state.

T

Dubai in figures� 85% of the population of the Emirate of

Dubai live in Dubai City� About 10 % of the citizens are nomads� Only 20 % of the population are UAE citizens� According to the World Wealth Report, there

are 68,000 US dollar millionaires in Dubai� By 2012, Dubai will have more than

300 five-star hotels� The »ADIA« is the world’s biggest state fund,

with a volume of 875 billion dollars

Background information

Dubai City is the dominant centre of the

Emirate of Dubai, in the UAE, and lies di-

rectly on the Persian Gulf. Under the pro-

visional constitution of 1971, the UAE is a

federation of seven autonomous emirates.

Each emirate has a hereditary ruler, who also

occupies the highest office in the emirate.

Dubai – City of superlatives

More than 200 skyscrapers with a height of

over 100 metres – 20 of them over 300 me-

tres – are now under construction. The Emir

personally awards construction permits for

major projects that meet his approval.


18 HFI GLOBAL · 01/2008

Snow assured, even when it doesn’t snow

Arrival at the 3250 m high glacier hut by the »frozen wall«. Step out of the lift and look around. An unforgettable view of the Grossglockner and over the Dolomites to the Zugspitze, 100 kilometres away – welcome to the Hintertux glacier.

Project The Hintertux glacier lift

Due to the topographicalconditions, most of thematerials had to betransported by helicopter.

HFI GLOBAL · 01/2008 19

he Hintertux glacier in the heart ofthe Zillertal valley in Tyrol is Austriaʼsonly all-year skiing area with guar -

anteed snow. All wishes are catered for –skiing, snowboarding, cross-country skiingand tobogganing are all available.

The area has 86 km of downhill skiruns in a wide variety of categories andhas often been singled out by skiingmaga zines as the top glacier skiing area.

T It is embedded in the »Zillertal 3000 Skiand Glacier World«, where there are morethan 225 km of piste in total.

In view of the excellent outdoor condi -tions, in the autumn many top skiers andnational teams come to the glacier skiingarea to train and prepare for the winterseason.

Even in Hintertux, however, the effectsof climate change are being felt. Winters

are shorter and, above all, there is lesssnow, so that artificial snow is needed ifthe area is to uphold its reputation for all-year skiing. The operators of the Hintertuxglacier lift lines faced up to this challengesome years ago. Sections of piste arebeing continuously equipped with artificialsnow systems, so that even in summer,18 km of piste are still available for use.In view of the exacting demands on the

The snow system sections are supplied

via several compressorstations. This makes

the installation of separate supply lines necessary.

20 HFI GLOBAL · 01/2008

line pipes for snow systems, the Hintertu-xer Gletscherbahn company decided touse steel pipes. The following factorswere decisive:

High resistance to mechanical stressesHigh quality long-term corrosion protectionHigh resistance to pressureFlexible connection techniquesLow dead weight

he greatest challenge encoun teredso far was that the artificial snowsystem had reached a height of

approximately 3100 m, where installa tionconditions were extremely difficult, as thepipes had to be laid on steep slopes andrough, rocky terrain.

Since the materials could usually onlybe transported by helicopter, the weight of the pipes also played a major role. Afterdue consideration, DN 150 (steel gradeSt.37.0) and DN 200 (steel grade St.52)pipes from Salzgitter Mannesmann LinePipe were used.

To protect the 12 to 14 metre long pipesagainst the rocky substrate they werecoated with fibrous cement, to preventmechanical damage and corrosion attack.As the »snow pond« that supplies the artificial snow system with water is at aheight of about 2000 m, the necessarywater has to be pumped to a height of3100 metres at pressures of up to 130bar. This high internal pressure preventsthe water from freezing inside the pipe,

even at temperatures below minus ten degrees. When the artificial snow systemis not in operation, the water in the pipesis simply allowed to drain away.

The pipes were installed in the latesummer and autumn of 2007. No difficul-ties were encountered, despite the toughconditions, so that the most of the newsection could be operated during the win-ter season of 2007/2008. Snow lanceswere used, consisting of a pole and a

spray nozzle at a height of 5 to 6 metres.The pressure of about 30 bar that is need edto operate the spray nozzle is generat edin a separate compressor station.

Another extension, using pipes fromSalzgitter Mannesmann Line Pipe, is planned for the late summer and autumnof 2008.

Extremely difficult in-stallation conditionsat a height of up to3100 metres

T

HFI GLOBAL · 01/2008 21

Hintertux glacier area

The glacier

The Hintertux glacier has a length of

about 4 km. At its deepest point, the ice

is 120 metres thick. In total it consists of

190 million cubic metres of ice. It travels

up to 40 metres each year.

The ski area

The Hintertux glacier is Austriaʼs only all-

year skiing area. Leading skiing maga zines

have often singled it out as the top

glacier skiing area.

Height of valley station: 1500 mHeight of middle station: 2660 mHigh mountain station: 3250 mPiste km (total): 86 kmLongest downhill Frozen wall,ski-run: 12 km

The skiing areaArtificial snow systemAn artificial snow system is a technicalsystem with a number of components,the purpose of which is to generate snowartificially. The components in cludewater reservoirs, pumps, compressors,supply lines for water, air and electrici-ty, and a snow generator.

Technical methodSnow cannon:The key element is a fan, which is supplied with water and electricity, andgen erates a powerful flow of air. Aroundthe outlet of the housing are severalnoz zles, which inject water into the fanair stream, where it forms small droplets,and small compressed air nozzles, whichare fed with a mix of water and com-pressed air, producing nucleation pointsaround which ice crystals can form.The size of the water droplets must beadjusted to the external temperatureand humidity and the spraying distanceso that the artificial snow has ideal properties. At 30% humidity, this meth odworks at 1 °C above zero, where as thetemperature has to be below –4 °Cwhen the humidity is 80%. This methodis widely used, but con sumes largeamounts of energy. More over, the fan isvery noisy.

Snow lance:Water and nucleator nozzles are lo cated

at the tip of an aluminium tube. Com-pressed air is blown into the water as itis sprayed out of the water nozzle. Thiscauses it to expand suddenly and cooldown. Ice seeds therefore form and actas nuclei around which the at omisedwater can crystallise. The lance con -sumes far less energy and is quieterthan the snow cannon.

Discovery The basic principle was discovered byaccident in Canada in the late 1940s,when a research team under the leader-ship of Canadian Raymond T. Ringersprayed water into a wind tunnel at lowtemperatures in order to study the icingof jet engines – and observed that snowformed. The first commercial compressedair snow cannon was developed in 1950by Art Hunt, Dave Richey and WaynePierce – partners in an American skimanufacturing company – in responseto a winter without snow.

Snow cannon Snow lance

22 HFI GLOBAL · 01/2008

n 1948, for example, the small familycompany of Josef Erne in the Vorarlberg

village of Schlins had just started to pro-duce small pipe bends. Founded by OttoErne’s father in 1920 as a coppersmithshop, it was looking for new sources ofstarting materials.

After processing scrap pipes fromVienna and then steel pipes from Hungaryinto pipe bends for plumbing purposes inthe first two years after the war, the com-pany started to do business across the»green border« in nearby Lindau on LakeConstance with the company whose name

was taken from the inventor of the seam-less steel tube process: Mannesmann.

In great demand after the war»High-quality pipes from Mannesmannwere already in great demand at that time.Trade was basically difficult, as more or less all heavy industrial goods werescarce«, remembers Otto Erne. »Neither a new state nor a new, stable currencywere yet in existence. It may be utterlyunimaginable nowadays, but a large partof the trade in those years was done on a barter base.«

But what did the small Vorarlberg familycompany have to offer? Initially therewere stocks of round and sawn timber. In addition, local agriculture could also be harnessed to enable the sought-afterMannesmann pipes to be obtained. Fatstock and breeding stock changedowners, and there were even takers forproducts derived from the reeds of theNeusiedler Lake. Both companies there-fore exchanged goods under the terms ofan agreement between the new Austrianprovince of Vorarlberg and the Germantown of Lindau.

More than 80 years of good connections

Otto Erne took his well deserved retirement several years ago. He had managedErne Fittings for many years, and remained active in the family business until the1990s. He enjoys reminiscing about his experiences and has a fund of anecdotesfrom the company’s history.

Erne Fittings and Salzgitter Mannesmann Line Pipe

I


Excellent business relationship since 1948What started under the most difficult ofcircumstances is today more than a suc-cessful business relationship. Three grand-children of company founder Josef Ernestill work for the one-hundred-percent fam -ily company. »They were difficult times«,remembers Otto Erne. »But our efforts thento build up the company were worth it«.

World market leader Erne FittingsErne Fittings is now a group of companieswith some 750 employees, which manu-factures pipe connections for power stati-ons, pipelines, refineries, tankers, offshoreplatforms and other industrial applications,as well as fittings for the automotive in -dustry. The companies in the group includethe parent company in Schlins, the plant in

Mürzzuschlag, the Germancompany Siekmann Fittings inLohne, and ELB-Form in Van-dans. In the field of weld-onsteel pipe connections, thegroup has an annual turn overof more than 100 million eurosmaking it the world marketleader.

Pipe connections a specialityPipe connections are the moststressed components in pipingsystems and pipelines. Alongside techno-logical competence, therefore, high-qualitystarting materials are crucial to obtainingfirst-class results. Salzgitter MannesmannLine Pipe supplies Erne Fittings with pipesin all available outside diameters in bothstandard and special grades and with

customer-specific geometries.The first processing trials withthe new 24-inch pipes fromHamm have also been carriedout successfully.

To be able to supply thewidest possible range of pro-ducts, Erne can carry out and

has full mastery of all important productiontechnologies in the fittings industry. De-pending on the type of product and mate-rial, cold or hot forming methods are used.

Intensive research and efficient pro-duction and logistics processes, sup portedby a modern logistics centre with a fullyautomatic high-bay warehouse, are cru cialto Erne’s efforts to maintain its position ofmarket leadership in the long term.

Given that only the best quality mate-rials, processing and service are goodenough for Erne, excellent connectionswill certainly endure for the next 80 yearstoo.

»We believe in internationality andgrowth. The strong demand in theenergy sector and a brand namethat stands for excellent qualityand reliability are the engine thatdrives our expansion.«

Dr. Ernst Bitsche, Managing Director of Erne Fittings

HFI GLOBAL · 01/2008 23

»The friendly contacts to Hermineand Otto Erne have not only en-sured successful cooperation buthave given a human dimension tothe long relationship between thetwo companies.«

Michael Bick, Head of Technical CustomerAdvisory Services, Salzgitter MannesmannLine Pipe


24 HFI GLOBAL · 01/2008

This investment was made against thebackground of the current situation on theenergy market. Demand for OCTG pipesis expected to increase worldwide andthe USA, which is the biggest market inthe world, taking a volume of 3.5 milliontonnes per year, will play a key role. WeldedOCTG pipes have been an accepted pro-duct in the US for many decades, andhave a 50% share of the market. In recentyears, Salzgitter Mannesmann Line Pipehas sold an average of 20,000 tonnes per

year in grades J55 and K55 in the USAthrough the Houston sales office of Salz-gitter Mannesmann International.

Strengthened market positionThese group 1 grades in accordance withAPI 5CT are increasingly being replacedby cheap imports of seamless pipes,especially from China. To strengthen andexpand the market position, therefore,Salzgitter Mannesmann Line Pipe decidedit would have to acquire the capability tosupply the higher quality grades N80,P110 and L80, whose sales are increasingat a disproportionately rapid rate. To dothis, it upgraded the existing 4.4 Megawattinduction annealing system by adding a 9 MW unit with downstream quenching in order to create a quench and temperfa-cility for HFI-welded steel pipes.

Quench and temper processThe five ring inductors heat the pipes totemperatures of 900 °C to 1000 °C by thefull annealing method. Immediately after

heating, the pipes are quenched withwater to about 100 °C. In the downstreamsecond annealing section, the pipes areagain tempered to 600 °C and are thencooled slowly in air. The quench and tem-per process imparts better mechanicaland technological properties and ductilityto the materials used.

Subsequent quality testingAfter completion of the QT process, thepipes are transferred to the finishingshop, where they are finished and tested.The dimensional accuracy of the pipes is important with regard to thread cut-ting. Narrow wall thickness tolerancesand excellent ovality also enable high-collapse grades such as N80 Q HC to be produced.

The new grades will enable SalzgitterMannesmann Handel and the internationalsales offices to penetrate additional marketsegments. The first orders for the N80 Qand N80 Q-weldable grades have alreadybeen completed and delivered.

Technology New quench and temper (QT) facility at Hamm

Major leap in OCTG pipe quality

With the start-up of the Q&T facility at Hamm, Salzgitter Mannesmann Line Pipe isnow able to produce high-quality steel grades for HFI welded oilfield pipes. At theheart of the plant are 5 ring inductor rings, which heat the pipes to up to 1000 °Cbefore they are quenched and tempered.

The full-annealed pipes are cooled to 900 °C at highwater pressure. Top: Temperature control at the interface to the water cooling.


Until just a few years ago the Danish com-

pany »Logstor« was mainly active on the

district heating market. The situation now is

very different. Today, Logstor’s core compe-

tences are the field of pre-insulated pipes for

oil and gas pipelines, including conventional

pipelines, pipe-in-pipe systems, onshore

applications and the transport of liquefied

natural gas (LNG) anywhere in the world.

>>> www.logstor.com

Logstor

The two companies have worked togetheron joint projects in the past, gaining agood impression of each other’s compe-tence and professionalism. The first timewas in the year 2000, on Texaco’s Erskineproject. Their cooperation in supplyingpipes for a 16/20-inch pipe-in-pipe systemwas so efficient that an intensive dialogueresulted, and further projects and activitiesfollowed.

The two companies intend to utilise theirhigh synergy potential to optimise theirproduction and logistics in the field of pre-insulated pipes for the oil and gas industry.This common approach will be focusedmainly on the consultancy-intensive oiland gas sector for onshore and offshorepipelines. The first step, therefore, will bethe development and implementation of a joint marketing programme, oriented towards the oil and gas industry.

»Our agreement with Salzgitter Mannesmann Line Pipe is a great opportunity forLOGSTOR to offer its customers increased supply and service capacity. For us, this decision is the next step towards becoming the world's number one supplierof pre-insulated pipes to the oil and gas industry.«

Jakob Jespersen, Managing Director of Logstor Oil & Gas

Leading manufacturers are to work together

Logstor, the world’s largest manufacturer of pre-insulated pipes, and SalzgitterMannesmann Line Pipe, Germany’s leading producer of longitudinally HFI-weldedsteel pipes, intend to work together on selected projects for the oil and gas industry. The first steps have already been taken.

»Logstor and Salzgitter Mannesmann Line Pipe have worked closely together onjoint project planning in the past, jointly solving demanding challenges and thusbenefiting our clients. We therefore welcome the prospect of implementing a shared marketing programme.«

Marc Rasquin, CEO of Salzgitter Mannesmann Line Pipe

HFI GLOBAL · 01/2008 25

Cooperation


26 HFI GLOBAL · 01/2008

This year, too, Salzgitter Mannesmann Line Pipe will be present at numerous trade fairs through out the world. We will also organise two customer conventions of our own. Further information and details of these events can be found on the Internet at www.smlp.eu under »News«.

Trade fairs and customer conventions

23. – 25.04.2008Salon de l'Aménagement en Montage 2008Grenoble, FranceStand: Fontalp

07./08.05.2008118. ÖVGW-JahrestagungInnsbruck/AustriaJoint stand with ALPE Kom-munal- & Umwelttechnik

05. – 09.05.2008IFAT Munich, GermanyHall B6Stand no.: 526

April 2008 May 2008 May 2008

13. – 15.05.2008Oil & Gas Uzbekistan Taschkent, Uzbekistan

21. – 23.05.2008H2O Ferrara, Italy

08. – 12.09.2008World Water Congress andExhibition Vienna, Austria

25./26.09.2008Customer convention, water

Salzgitter MannesmannLine Pipe, Siegen

07. – 10.10.2008KIOGEAlmaty, Kazakhstan

16./17.10.2008Customer convention, gas

Salzgitter MannesmannLine Pipe, Siegen

November 2008OGT Ashgabat, Turkmenistan

May 2008 May 2008 June 2008

September 2008 September 2008 October 2008

October 2008 October 2008 November 2008

November 2008 November 2008 November 2008

08. – 12.06.2008AWWA Annual Conference & Exposition (AmericanWater Works Association)Atlanta, Georgia (USA)

19. – 22.10.2008WEFTEC 2008Chicago, Illinois/USA

03. – 06.11.2008ADIPEC, Abu Dhabi, UAEJoint stand with SalzgitterMannesmannInternational

11./12.11.2008gat 2008 Dortmund, GermanyStand: FIGAWA (joint stand)

09. – 12.09.2008Saudi Water Technology ’08Riyadh, Saudi Arabia


Credits

PublisherSalzgitter Mannesmann Line Pipe GmbH

Head OfficeSiegen WorksIn der Steinwiese 3157074 SiegenGermanyPhone: + 49 271 691-0Fax: + 49 271 691-299

[email protected]

Concept, editing and designKümpel Lorenz GbR, Büro für Gestaltungwww.kuempellorenz.de

English translationRuth Baldwin, Mönchengladbach

Authors and co-workersJörg Hernando, Marc Rasquin, JochenBerkemeier, Michael Bick, Horst Dix, Rainer Dünnweller, Dorothee Karches,Alexander Neumann, Rainer Terlinden,Konrad Thannbichler

HFI GLOBAL · 01/2008 27

The next issue of HFI Global will appear in late 2008

HFI GLOBALThe magazine of Salzgitter Mannesmann Line Pipe for customers and partner

Salzgitter Mannesmann Line Pipe supplies 20,000 pipes for a 370 km ethylene pipelineacross Southern Germany. Find out all about the EPS project /// New method ready forseries production in record time – Salzgitter Mannesmann Line Pipe supplies tubes fora new and unique method of producing supporting roller tubes for the Gurtec company/// Project management at Salzgitter Mannesmann Line Pipe in theory and practice

Salzgitter Mannesmann Line Pipe GmbH

Head OfficeSiegen WorksIn der Steinwiese 3157074 SiegenGermanyPhone: + 49 271 691-0Fax: + 49 271 691-299

Postal address:Postfach 12 01 5257022 SiegenGermany

Hamm WorksKissinger Weg59067 HammGermanyPhone: +49 2381 420-701Fax: +49 2381 420-719

Postal address:Postfach 17 1359061 HammGermany

[email protected]


hfi global rz english.qxd:mfr€¦ · 14 hfi global · 01/2008 salzgitter mannesmann international...

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