China - KHL Group
Transcription
China - KHL Group
JANUARY-FEBRUARY 2016 Vol 55 No 1 international construction A KHL Group publication www.khl.com REGIONAL REPORT China P22 SHOW PREVIEW Bauma P29 SECTOR Drilling P49 SECTOR Compact equipment P37 ICON 01-02 2016 Front Cover.indd 1 28/01/2016 15:15:05 ® CAT F-SERIES PAVERS THE NEW STANDARD 70 KW INTEGRATED GENERATOR SAVES TIME AND FUEL. UÊ £xÊÕÌiÊÃVÀii`Ê«>ÌiÊ i>Ì} UÊ £x]äääÊ ÕÀÊÃiÀÛViÊvi UÊ -ÞÃÌiÊÌÀ}Êii«ÃÊ«iÀ>ÌÀÊvÀi` i>ÀÊÀiÊ>ÌÊwww.cat.com/F-SeriesPavers facebook.com/CATPaving youtube.com/CATPaving VISIT US AT BAUMA ÊÈ R QEXC1902-02 © 2016 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. Untitled-3 1 28/01/2016 12:40:24 KHL OFFICES UNITED KINGDOM (HEAD OFFICE) Southfields, Southview Road, Wadhurst, East Sussex TN5 6TP, UK. Tel: +44 (0)1892 784088 Fax: +44 (0)1892 784086 www.khl.com USA OFFICE KHL Group Americas LLC 3726 East Ember Glow Way, Phoenix, AZ 85050 USA Tel: +1 480 659 0578 e-mail: [email protected] SOUTH AMERICA OFFICE KHL Group Américas LLC Manquehue Norte 151, of 1108. Las Condes, Santiago, Chile Tel: +56 2 2885 0321 e-mail: [email protected] CHINA OFFICE KHL Group China Room 768, Poly Plaza, No.14, South Dong Zhi Men Street, Dong Cheng District, Beijing 100027, P.R. China. Tel: +86 (0)10 6553 6676 e-mail: [email protected] KHL SALES REPRESENTATIVES ADVERTISEMENT MANAGER and USA/CANADA Alister Williams Tel: +1 312 860 6775 e-mail: [email protected] CORPORATE ACCOUNT MANAGER David Stowe, UK Head Office Tel: +44 (0)1892 786217 e-mail: [email protected] USA Thomas Kavooras Tel: +1 312 929 3478 e-mail: [email protected] UK Lynn Collett, UK Head Office Tel: +44 (0)1892 786219 e-mail: [email protected] GERMANY/AUSTRIA/SWITZERLAND Simon Battersby, UK Head Office Tel: +44 (0)1892 786232 e-mail: [email protected] BENELUX Steve Walters, UK Head Office Tel: +44 (0)1892 786223 e-mail: [email protected] FRANCE Hamilton Pearman Tel: +33 1 45 93 08 58 e-mail: [email protected] ITALY Fabio Potestà Tel: +39 010 570 4948 e-mail: [email protected] NORDIC COUNTRIES Peter Gilmore Tel: +44 (0)20 7834 5559 e-mail: [email protected] TURKEY Emre Apa Tel: +90 (0)532 324 36 16 e-mail: [email protected] SPAIN Mike Posener Tel: +353 86 043 1219 e-mail: [email protected] CHINA Cathy Yao Tel: +86 10 6553 6676 e-mail: [email protected] JAPAN Michihiro Kawahara Tel: +81 (0)3 3212 3671 e-mail: [email protected] KOREA CH Park Tel: +82 2 730 1234 e-mail: [email protected] COMMENT auma is coming – in case you hadn’t noticed. I am possibly not alone when I say I’m approaching my first visit to the world’s largest trade exhibition with a mixture of excitement and dread, as well as with comfortable shoes and a hip flask. The KHL publishing group will, of course, be there in force – and please do put a reminder on your electronic device of choice to visit the KHL stand on Thursday afternoon, and be part of the obligatory (not to say legendary) Champagne and strawberries free-for-all. If my shoe leather fails me and I don’t make it to your stand, I and deputy editor Joe Malone will be delighted to see you there. Our own build-up to Bauma starts in this issue, with a first look at some of the major equipment and technological innovations to be showcased in Munich. In the two issues of International Construction that follow, Bauma news will again feature heavily, and the combined KHL team will also be producing daily digital news items from the show itself. Life, of course, goes on beyond Bauma – in this issue we also look at the current state of the construction industry in China, including an economic report on the world’s number one built-asset market. While growth in the Chinese construction market has decreased dramatically, some of the world’s biggest contracts are still to be found in this land of incredible opportunities. Speaking of life going on, it’s all change at Terex, with long-standing CEO and chairman Ron DeFeo stepping down, and former Bell Helicopters CEO John L Garrison taking the reins. In an exclusive interview with International Construction, Mr DeFeo discusses his business philosophy, the highlights of his time with Terex and the company’s current merger with Finnish company Konecranes. I hope you enjoy this issue of the magazine, which is always available in print, but also downloadable at khl.com, where you will find daily updated news, as well as podcasts, videos and, as they say, much more… B Best wishes Mike Hayes Editor International Construction (USPS No: 021-895) is published 4 February 2016 by KHL Group and distributed in the US by DSW, 75 Aberdeen Rd, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. Postmaster: send address changes to International Construction, PO Box 437, Emigsville PA 17318-0437. ISSN No: 0020-6415 USPS No: 021-895 © Copyright KHL Group 2016 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. january-february 2016 internationalconstruction 3 ICON 01-02 2016 Comment.indd 3 28/01/2016 15:16:01 KOBELCO CRANES STRENGTH THROUGH EXPERIENCE Since 1930 KOBELCO G-Series • EURO Stage 4 compliant Power Plant • Up to 25% reduction in fuel consumption thanks to G-mode, 3 new Energy Saving Systems from KOBELCO: G-Engine, G-Winch and Auto-Idle-Stop • Ergonomic, luxurious, spacious cab with Joysticks • Dual pump flow for clamshell, bucket or material handling* • Tractor-type crawlers* • Large, colour monitor with pictograms provides outstanding visibility and immediate comprehension of essential operating data • Innovative, low weight upper frame and body within 3m transport width • Over-swing preventative device* • Machine inclination sensor* • Counterweight detect system* • Unrivalled smooth operating comfort • High precision in positioning loads • Fast assembly and disassembly • Efficient transport • Wet-type disk brakes for powerful, stable braking • Low maintenance • Wide, large-capacity winches improve spooling and extend wire rope life • Excellent reliability • Worldwide service * optional items +3 7/1 1 8 N F nd Sta KOBELCO G-Series for crane owners looking for increasing operating ratio, while reducing operating cost, instant access to smooth and effcient transport, increasing resale value, providing operators with even greater operating comfort, while saving the environment by consuming up to 25% less fuel and by lowering emissions, with upto 25% less CO2, 90% less NOx and 90% less particle emissions. KOBELCO CRANES Co., Ltd. TOKYO, JAPAN Tel: 00-81-(0)3-5789-2130 [email protected] KOBELCO CRANES MIDDLE EAST FZE Sharjah, U.A.E. Tel: 00-971-(0)-6-557-8114 [email protected] KOBELCO CRANES INDIA PVT Ltd Tel: 00-91-(0)-11-40151900 [email protected] Untitled-1 1 Kobelco CKE1100 G-Series Bauma 2016.indd 1 KOBELCO CRANES NORTH AMERICA INC Houston, Texas, U.S.A. Tel: 00-1-(0)-713-856-5755 [email protected] KOBELCO CRANES SOUTH EAST ASIA PTE. Ltd Singapore Tel: 00-65-(0)-6268-1308 [email protected] KOBELCO CRANES CO., Ltd. Shanghai, CHINA Tel: 00-86-(0)-21-5382-0120 [email protected] www.kobelco-cranes.com KOBELCO CRANES EUROPE Ltd.: FOR EUROPE, AFRICA, RUSSIA, CIS Tel: 00-31-(0)-36-549-5510 [email protected] KOBELCO CRANES EUROPE Ltd.: FOR U.K. IRELAND AND SOUTH AFRICA Tel: 00-44-(0)-1342-301122 [email protected] 28/01/2016 19/01/2016 09:14:18 12:24:02 JANUARY-FEBRUARY 2016 Vol.55 No.1 international construction I t International ti l C Construction t ti , iincorporating ti Construction Industry International and World Construction, is available free of charge on request to anyone who falls within the controlled circulation criteria. The official issue publication date is 4th February 2016. The magazine is published 10 times a year. It is available to anyone who does not meet the criteria at an annual subscription rate of UK£215, US$345, €260. INSIDE JANUARY-FEBRUARY 2016 Vol 55 No 1 international construction A KHL Group publication China OUTSIDE P22 SHOW PREVIEW Bauma P29 SECTOR Drilling P49 WORLD NEWS 6 A new report from analysts Off-Highway Research predicts global sales of construction equipment will grow +3.9%, in unit terms in 2016, to well over 760,000 machines. All roads lead to Munich – and Bauma... p. 29. SECTOR Compact equipment P37 ICON 01-02 2016 Front Cover.indd 1 BUSINESS NEWS www.khl.com REGIONAL REPORT 28/01/2016 15:15:05 10 Demonstrating an increased focus on the Latin American market, Swedish construction firm Sandvik has appointed Unevol S.A. as its first official equipment distributor in Cuba. STAFF LIST Editor Mike Hayes e-mail: [email protected] Direct tel: +44 (0)1892 786224 Deputy Editor Joe Malone e-mail: [email protected] Direct tel: +44 (0)1892 786211 Editorial Director Paul Marsden BSc Editorial Team Lindsey Anderson, Alex Dahm, Steve Ducker, Sandy Guthrie, Fausto Oliveira, Cristián Peters, Murray Pollok, D.Ann Shiffler, Anna Sun, Helen Wright, Euan Youdale Advertisement Manager Alister Williams e-mail: [email protected] Direct tel: +1 312 860 6775 Corporate Sales David Stowe e-mail: [email protected] Direct tel: +44 (0)1892 786217 Production & Circulation Director Saara Rootes Print & Digital Production Manager Ross Dickson e-mail: [email protected] Direct tel: +44 (0)1892 786245 Design Manager Jeff Gilbert Events Design Manager Gary Brinklow Junior Print & Digital Designer Mitch Logue Financial Controller Paul Baker Financial Assistants Alison Filtness, Gillian Martin Credit Control Josephine Harewood e-mail: [email protected] Direct tel: +44 (0)1892 786250 Office Manager Clare Grant e-mail: [email protected] Direct tel: +44 (0)1892 786201 Business Development Director Peter Watkinson Circulation Manager Helen Knight Publisher James King MEMBER OF WWW.KHL.COM 15 The final total for the Lift & Move USA careers day in Houston, Texas, could be more than 350 attendees with more than 250 students and high-school children having already registered to attend. ECONOMIC OUTLOOK 6 19 Scott Hazelton reports on the outlook for the construction market in China, where growth is continuing to weaken and a lengthy period of uncertainty seems likely. REGIONAL REPORT 22 22 Is China’s construction market in genuine crisis, or are we simply seeing a move to a safer, more sustainable pattern of growth? Efforts by the Chinese government to stimulate growth include supporing numerous infrastructure mega-projects and the development of green energy. BAUMA PREVIEW 29 The three-year wait for the world’s largest construction equipment trade exhibition is almost over. iC takes a first look at the Munich behemoth, with an overview of some of the major new and imporoved equipment to be showcased this April. COMPACT EQUIPMENT 29 37 Technical standards in compact equipment continue to improve, from increased dumping angles to increased loading capacities. DRILLING 49 37 Drilling is a vital element of quarry, mine and construction projects, modern drilling equipment must provide fast, precise and efficient service – and technology is a key component. EQUIPMENT 57 South Korean manufacturer Doosan has added to its crawler excavator range with the 14-tonne DX140LC-5, a machine that meets the latest Stage IV emssion regulations. 49 january-february 2016 internationalconstruction 5 ICON 01-02 2016 Contents.indd 5 28/01/2016 15:17:25 WORLD NEWS HIGHLIGHTS GLOBAL US/MEXICO Cemex has announced that its Mexico branch has played a role in the restoration of the MonterreyNuevo Laredo highway – the main export-import route between Mexico and the US. Located in north-east Mexico, the Monterrey-Nuevo Laredo highway connects Mexico with the state of Texas, where 52% of Mexico’s imports and exports take place. Cemex Mexico supplied 98,000 m³ of hydraulic concrete to restore around 9.75 miles of the highway. Global construction equipment market to improve in 2016 CANADA Project manager, Vadim Kazenelson, from Canada has been sentenced to three-and-a-half years in jail following an incident in which four workers died and another was critically injured. The incident happened after the workers fell 13 storeys from a scaffold outside a Toronto apartment building in 2009. The 40-year-old was found guilty in June 2015 of four counts of criminal negligence causing death and one count of criminal negligence causing bodily injury. Kazenelson was the project manager for Metron Construction on the apartment balcony repair job when the incident occurred. EU/CHINA The European Commission has ordered that steel imported to the European market from China is to be subject to registration, meaning that tariffs will be put in place if the product is found to have been dumped in Europe. The Commission launched an anti-dumping investigation into imports of highfatigue performance (HFP) rebar from China last April, following a complaint from the European steel association Eurofer. Dumping is the practice of selling a product on export markets at either below its price on home markets or below its cost of production. VIETNAM Doosan Heavy Industries has been awarded a US$ 560 million contract, to build a coal-based power plant in Vietnam. The 600 mW thermal power plant operation, known as the Vinh Tan IV extension coal-based power station construction project, is an extension to the original plant, commissioned in 2013. Doosan’s contract with Vietnam Electricity is made on an engineering, procurement and construction basis, with work due to be completed by August 2019. Research predicts sales of construction equipment will grow +3.9% in unit terms in 2016 lobal sales of construction equipment are forecast to grow +3.9% in unit terms in 2016, to 760,508 machines, according to specialist economic forecasting and market research consultant, Off-Highway Research. The expected improvement follows a weak performance in 2015, when global unit sales fell more than -10% from the total of nearly 818,000 machines sold in 2014. In 2016, growth is expected in the European, North American and Indian equipment markets. Off-Highway Research also forecasts a stabilisation in China, where sales of construction equipment have fallen from a peak of 435,070 units in 2011 to a projected 131,345 machines in 2015 – a decline of -70% in the space of four years. Off-Highway Research managing director David Phillips said, “Unit sales fell to their lowest since the crisis years and the drop in the Chinese market was particularly brutal. However, there were improvements in several developed countries which helped offset some of these losses.” The gradual improvement in Europe which began in 2014 is expected to continue this year, with unit sales rising from a provisional 125,705 units in 2015 to 130,503 machines. Similarly, the buoyant North American market should rise a further four per cent to 186,025 machines. Continued steady improvements are expected in the Indian construction equipment market, with unit sales expected to rise to 46,414 machines, compared to 38,554 in 2015. Meanwhile in China, the market is expected to show an uptick of around four per cent, with sales stabilising at 137,820 units. In Japan, construction equipment sales are expected to fall from 79,998 units in 2015 to 73,825 machines in 2016. The key drivers of this are a tailingoff of reconstruction work following the 2011 earthquake and Tsunami and the winding-down of the government’s economic stimulus programmes. G GERMANY Bauma director Moser dieswas Martin Moser, exhibition director at Messe München, has died suddenly at the age of 34. He joined the Munich-based organisation in April 2009, and at the start of 2015 was promoted to exhibition director for the Bauma China, bC India (now Bauma Conexpo India) and Bauma Conexpo Africa exhibitions. Managing director Stefan Rummel said, “In Martin Moser, we have lost a popular, warm-hearted colleague who was greatly esteemed everywhere. His death leaves a void in our lives and we will miss him greatly.” married last year, and also leaves a daughter of three months. AUSTRALIA Rap for unions The recommendations of a new Royal Commission report into trade union practices, have been welcomed by Australian materials producer Boral. The report follows a court case last year, which resulted in the Construction, Forestry, Mining and Energy Union (CFMEU) being ordered to pay up to A$ 9 million in damages to Boral, after a dispute over an alleged ‘black ban’ on the company’s products. Boral claimed the CFMEU had initiated an illegal ban after Boral refused to stop supplying concrete to construction company Grocon, with whom the union was in dispute. The company claims that until now there has been no legal protection preventing the CFMEU’s control of market activity. Speaking about the new report and an interim report, produced in 2014, Boral’s CEO and MD, Mike Kane, said, “It is abundantly clear that the rule of law has been trampled on by an organisation that prides itself in taking the law into its own hands,” adding that there had been “a longstanding malignancy or disease” within the union. 6 internationalconstruction january-february 2016 ICON 01-02 2016 News.indd 6 28/01/2016 15:19:11 WORLD NEWS CHINA Eleven people have been arrested and another has reportedly committed suicide in connection with a landslide of construction waste in Shenzhen, China. On December 20, earth from a construction waste dump collapsed, engulfing nearby buildings, factories and workers’ dormitories. A total of 77 people were reported missing, with 58 bodies found so far, according to reports. Early indications pointed to human error being to blame for the disaster. One week later, Xu Yuanan, director of the Shenzhen Guangming New District Urban Management Bureau, which approved the waste dump, jumped to his death from a building in an apparent suicide. Of the 11 people arrested, one was a legal rep of the company in charge of the landfill, another was its deputy general manager. UAE SRI LANKA Colombo City Port project in Sri Lanka will now go ahead, according to the Sri Lankan ambassador to China. The US$ 1.4 billion development, comprising a 230-hectare complex, with hotels, apartments and office buildings, will be built on landfill near the harbour seafront in Colombo, the country’s largest city. In 2013, the former Sri Lankan government had reached agreement with the state-owned developer, China Communications Construction Company (CCCC), giving them control of 108 hectares of the development, including 20 hectares on a freehold basis and the remainder on a 99-year lease. Sri Lanka was to retain ownership the other 125 hectares. Following pressure from India and the US, the newly-installed government of Sri Lanka suspended the project early in 2015, citing issues with environmental reports. Now, following the release of data from a new environmental impact assessment – and in the face of growing national debt – all suspensions have been lifted. 2016 World of Concrete February 2 – 5, 2016 (Seminars February 1 – 5) Las Vegas, US www.worldofconcrete.com World of Asphalt March 22 – 24, 2016 Nashville, USA www.worldofasphalt.com Bauma April 11 – 17, 2016 Munich, Germany www.bauma.de Hillhead June 28 – 30, 2016 Buxton, UK www.hillhead.com Bauma China November 22 – 25 Shanghai, China www.bauma-china.com US Low-cost Port back on Construction Dubai track stutters Dubai is a cheap place to build The development of the suspended Construction spending in the US compared to other global cities, according to the latest International Construction Cost Index published by market research company Arcadis. The index analyses the cost of construction across 44 major cities and found that the impact of strong currency performance and the fall in oil prices have benefited the global market. Regionally, the Qatari capital is the most expensive city for construction in the Middle East, followed by Jeddah and Dubai. Over the next ten years, Qatar looks set to spend $150 billion in Doha on roads, railways, stadiums and ports, as well as hospitality and social infrastructure, according to Arcadis. The country also has plans for further investment in transport, water and electricity infrastructure by 2020. Dubai’s airport has surpassed London Heathrow as the busiest airport in the world, and the emirate is expected to strengthen by 2020. The Arcadis index is based on construction costs only and excludes land and finance. EVENTS DIARY fell in November 2015 from a month earlier to US$ 1.122 trillion, but maintained a strong rate of year-on-year growth in all major categories, according to a report by the Associated General Contractors of America. The Association noted that the new spending data demonstrated uncertainty within the private sector about the need for new projects, while government officials are worried about budget constraints. Construction spending in November 2015 was 0.4% lower than the October total, but 10.5% higher than in November 2014. However, the November 2015 total was only 0.5% higher than in August, indicating construction has levelled off recently, according to Ken Simonson, the association’s chief economist. He said, “The November data shows divergent trends for residential, private non-residential and public construction. Compared to October levels, spending dipped overall but climbed for homebuilding, school and office construction. Bauma ConExpo India Dec 12-15, 2016 Delhi, India www.bcindia.com 2017 Samoterin February 22 – 25, 2017 Verona, Italy www.samoter.it ConExpo-Con/Agg March 7 – 11, 2017 Las Vegas, US www.conexpoconagg.com SMOPYC April 4 – 7, 2017 Zaragoza, Spain www.smopyc.es APEX (International Access Equipment Exhibition) May 2-4, 2017 Amsterdam, The Netherlands www.apexshow.com International Rental Exhibition (IRE) May 2-4, 2017 Amsterdam, The Netherlands www.IREshow.com january-february 2016 internationalconstruction 7 ICON 01-02 2016 News.indd 7 28/01/2016 15:19:24 WORLD NEWS IRELAND CHINA/PAKISTAN UGANDA CRH sell-off China calls for unity over US$ 46bn economic corridor Misconduct claims The World Bank has withdrawn its Irish-based CRH said it had made around € 1.4 billion (US$ 1.52 billion) in 2015 by divesting parts of the group. This includes the sale of its clay and concrete products operations in the UK and the group’s clay business in the US for € 43 million ($ 46.6 million), plus several additional sales across Europe and America for a total of € 53 million ($57.5 million). During 2015, the group also completed 20 acquisitions and investments. These deals, together with the acquisition of assets from Lafarge and Holcim, the CR Laurence acquisition (completed in August for € 1.2 billion ($ 1.3 billion) and deferred payments, brings its spend for 2015 to around € 8 billion ($ 8.67 billion). BRAZIL Solar power Italian company Enel Green Power has announced the construction of a US$ 400 million solar power plant in Brazil. The Ituverava solar plant will generate 254 mW of power and is the largest of a number of renewable energy projects currently being undertaken in the country by Enel Green. Expected to be in service by 2017, the Ituverava plant will contribute to a total of 1.65 GW of electricity generated in Brazil by Enel Green projects. When completed, the plant will supply more than 550 GWh per year, enough to meet the annual energy consumption needs of around 268,000 households in Brazil. The Ituverava project was awarded to Enel Green through a competitive auction in November 2014. A second auction, in 2015, saw the company win 553 mW of a potential 834 mW capacity on offer. It is reported that Enel Green plans to invest almost US$ 10 billion over the next five years, primarily in the enhancement of generation capacity. The company will look to add over 7 GW of new capacity before the end of this decade, predominantly in Chile, Mexico, and Brazil. Political discord in Pakistan over proposed infrastructure mega-project hina has waded into the heated debate in Pakistan over proposals for the US$ 46 billion China-Pakistan Economic Corridor (CPEC). The proposed route of the infrastructure mega-project – set to including road and rail development, gas pipelines and fibre-optic cables – has sparked a war of words between the country’s federal government and Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party. The CPEC, will run from northwest China’s Xinjiang Autonomous Region, through Pakistan to the port of Gwadar on the Arabian Sea, and China has promised the Pakistani government heavily-subsidised loans of around US$ 11 billion for the project. Tensions, however, have been raised, following criticism of the Pakistani government’s alleged rerouting of the corridor in favour of the Sindh and Punjab provinces, at the expense of the northwestern Khyber-Pakhtunkhwa province. In 2014, the first CPEC project was a 60-km motorway, running through the Khyber-Pakhtunkhwa province, but this has done little to ease the concerns of the PTI, who recently sent a delegation to the Chinese embassy. A spokesperson from the embassy reminded all parties that, “The CPEC is the consensus reached between China and Pakistan, and has won popular support from the two peoples. The CPEC faces Pakistan as a whole, and will bring development and benefits to the people of Pakistan.” C UK JCB has produced its 100,000th mini excavator since its first – an 801 model weighing in a 1.4 tonnes – rolled off the production line in 1989, with just over 450 machines made that year. By 1992, there were four models in the range and annual production rates had risen to 1,000 units. The 100,000th compact excavator – a 10-tonne 100C-1 – is one of 22 models in the company’s current line, which ranges from 1 to 10 tonnes. All are manufactured at the JCB compact products factory in Cheadle, Staffordshire, UK. JCB said that the global mini excavator sector was one of the most competitive areas of the global construction equipment market and was worth an estimated £4 billion (€5.4 billion) annually. funding for a major road scheme in Uganda, following claims from local residents about the conduct of construction workers. The US$ 265 million KamwengeFort Portal Road project was largely funded by a World Bank loan of US$ 190 million, which was cancelled at the end of December on the grounds of ‘serious allegations of sexual misconduct and abuse by contractors’. Awarded to state-owned China Railway Seventh Group in 2013, the project, launched last February by President Yoweri Museveni, has been run under the auspices of the Uganda National Roads Authority. It was due to have been completed this year. In December 2014, residents of the town of Bigodi, first raised concerns about the conduct of road workers, but World Bank officials were unaware of the complaints until September 2015, when 58 handwritten notes from members of the local community were brought to their attention. In the notes, were allegations of underage sex and teenage pregnancies caused by the workers, while some spoke of a fear of retaliation if complaints were made. CANADA Nuclear deal Canadian construction companies SNC-Lavalin and Aecon Group have won a joint contract worth around CAN$ 2.75 billion (US$ 1.94 billion), to refurbish a nuclear power station in Ontario, Canada. The 10-year project, to be undertaken on a 50-50 basis by SNCLavalin and Aecon, will commence this year and involves replacing the main reactor components at the Darlington nuclear power station. According to the two companies, each of the station’s four reactors will be taken out of service sequentially over a period of three years, allowing for the replacement of fuel channels, feeder pipes, calandria tubes and end fittings. 8 internationalconstruction january-february 2016 ICON 01-02 2016 News.indd 8 28/01/2016 15:19:34 VALUE WHEREVER YOU ARE No longer satisfied with being the world leading producer of bulldozers, Shantui’s pedigree of bulldozer mastery has been passed on to a full line of products, such as earthmoving machinery, road machinery, concrete machinery, and more. Now, no matter the situation, be it rocky quarries, sandy deserts, or thick jungles, Shantui has a machine to suit your needs. Furthermore, our broad sales network reaches over 150 countries and regions, so our customer service is there for you whenever you need it. From mountain high to valley low, Shantui goes wherever you go. Visit your local Shantui dealer to find out how Shantui’s value can work for you. Visit us at www.shantui.com Untitled-1 1 28/01/2016 09:15:16 BUSINESS NEWS BUSINESS HIGHLIGHTS CHINA/INDONESIA The Indonesian Chamber of Commerce and Industry (ICCI) has signed a cooperation framework agreement to work with XCMG, China’s largest construction machinery manufacturer. The ICCI will become the formal advisor to XCMG in Indonesia and promote the company’s business development in the country and beyond. GLOBAL Gray cement prices fell -11% year-on-year, according to CW Research, the US-based market researcher. The figures were released in its Global Cement Trade Price Report (GCTPR), assessing the monthly worldwide trade of gray cement, white cement, clinker, and slag, as well as figures for ex-works and effective market prices. SOUTH AFRICA Global mining company Anglo American has announced that it has completed the sale of its joint venture, Tarmac. Tarmac, a road and transport infrastructure construction company, is a subsidiary of Colas SA which forms part of the Bouygues group. GLOBAL The global earthmoving machinery market can expect a recovery to start in 2016, according to Veronafiere, the organiser of the Samoter exhibition in Italy. It said recovery would be followed by consolidation in 2017 with sales of 880,000 units – an increase of 33% compared with the estimated results for 2015. CUBA US/AFRICA Sandvik in for Latin American business Cat’s into energy Swedish construction firm appoints Unevol S.A. as its first official equipment distributor in Cuba andvik Construction has announced its intention to give focus to the growing construction market in Cuba, appointing Unevol S.A. as its first distributor of equipment in the country. In a statement from the company, Sandvik described its commitment to offering ‘locally-focused customer support’ to customers in Cuba, along with the benefits of trading with a global company. Unevol has been selling and servicing Volvo equipment in Cuba, since its inception in 1998 - from its headquarters in La Lisa, La Habana, and from branches in Holguin and Moa. Unevol’s general manager, Per Hundevad, said, “Becoming a Sandvik Construction distributor is an important development of our company. With Sandvik’s portfolio of products, Unevol S.A. will now be able to provide drilling, crushing and screening equipment and consumables to our existing customers.” S GERMANY EIB loan for German roads The European Investment Bank (EIB) has provided a loan of €160 million to help finance the construction of a 33km motorway section in Southern Germany. Connecting Pastetten and Heldenstein in Germany, the section will be part of the A94 project which, once finished, will help to improve the traffic flow between the Bavarian capital Munich and the Austrian city of Linz. The four-lane motorway section will be built as part of a publicprivate partnership between the Free State of Bavaria, and a consortium of three contractors – BAM, Eiffage and Berger Bau. The loan will cover 50% of the project cost, and the consortium is responsible for designing and building the motorway, as well as operations and maintenance, which is part of the 30-year contract. The construction is scheduled to start in February this year. Caterpillar Venture Capital, part of Caterpillar, has announced that it has made an equity investment in Powerhive, an energy solutions provider for emerging markets. Caterpillar Ventures is one of eight investors in a US$ 20 million firstround venture, which was led by Prelude Ventures and also includes First Solar, Total Energy Ventures and Tao Capital Partners. The financing will support Powerhive’s global expansion and continued growth in East Africa, where the company has operated rural microgrids since 2012. SWITZERLAND Hilti sees growth Revenues generated by manufacturer Hilti in 2015 grew in line with expectations, according to preliminary results. The firm said while sales in local currencies showed 5.8% growth, revenues in Swiss Francs remained 2.5% below the level of the previous year thanks to currency differences. As such, revenues declined by CHF113 million (€104 million) year-on-year to CHF4.38 billion (€3.98 billion). The company said 2015 was a challenging year as a result of the massive appreciation of the Swiss Franc and volatile markets, especially in emerging countries. EUROPE Exchange rates: January 2016 VALUE OF 1: Symbol Australian Dollar AU$ Brazilian Real BRL British Pound UK£ Chinese Yuan CNY Euro € Indian Rupee INR Japanese Yen YEN Mexican Peso MXN Russian Ruble RUR Saudi Riyal SAR South African Rand ZAR South Korean Won KRW Swiss Franc CHF US Dollar US$ For example: US$ 1 = AU$ 1.4 AU$ 2.89 2.00 0.213 1.52 0.021 0.012 0.076 0.018 0.373 0.085 0.001 1.37 1.40 BRL 0.35 5.78 0.616 4.41 0.059 0.034 0.219 0.052 1.080 0.247 0.003 3.97 4.05 UK£ 0.501 0.173 0.107 0.76 0.010 0.006 0.038 0.009 0.187 0.043 0.001 0.69 0.701 CNY 4.70 1.62 9.4 7.16 0.097 0.055 0.356 0.084 1.755 0.402 0.005 6.45 6.58 € 0.656 0.227 1.31 0.140 INR 48.7 16.8 97.2 10.35 74.1 YEN 85 29.3 169 18.0 129 1.7 0.013 0.008 0.574 0.050 3.69 6.42 0.012 0.87 1.52 0.245 18.163 31.640 0.056 4.158 7.244 0.001 0.057 0.099 0.90 66.77 116.32 0.919 68.11 118.7 MXN 13.19 4.56 26.3 2.81 20.1 0.271 0.156 RUR 55.7 19.3 111.3 11.85 84.9 1.145 0.657 4.22 EU plan backed SAR 2.68 0.93 5.35 0.570 4.08 0.055 0.032 0.203 0.048 0.237 4.925 20.800 1.128 4.762 0.229 0.015 0.065 0.003 18.11 76.47 3.68 18.47 78 3.75 ZAR 11.70 4.04 23.4 2.489 17.82 0.240 0.138 0.887 0.210 4.37 KRW 859 297 1716 183 1309 17.7 10.1 65 15.4 321 73 CHF 0.729 0.252 1.46 0.155 1.11 0.015 0.009 0.055 0.013 0.272 0.062 0.001 0.014 16.06 1179 16.38 1202.9 1.02 US$ 0.714 0.247 1.43 0.152 1.09 0.015 0.008 0.054 0.013 0.267 0.061 0.001 0.980 The European Commission’s Circular Economy Action Plan has been given a warm reception by FIEC (the European Construction Industry Federation), following the release of the plan in December. Welcoming the proposals on waste, standards for secondary raw materials and reliable data contained in the action plan, FIEC vice president Kjetil Tonning said, “FIEC has always supported the concept of the circular economy and supports the action plan, which shuld help address resistance in the market to use recycled and reused raw materials. 10 internationalconstruction january-february 2016 ICON 01-02 2016 Business News.indd 10 29/01/2016 10:44:39 CLOSE TO OUR CUSTOMERS CLOSE TO OUR CUSTOMERS5 Find out more: www.wirtgen-group.com Find out more: www.wirtgen-group.com WIR Anzeigen A4 rechte Seite EN 3mm indd 1 Untitled-5 1 20 11 15 14:53 01/02/2016 16:08:22 CLOSE TO OUR CUSTOMERS For your success. ROAD AND MINERAL TECHNOLOGIES. Having welcomed BENNINGHOVEN into the fold, the WIRTGEN GROUP is now a one-stop supplier of leading technologies encompassing the entire road construction cycle: From processing, mixing, paving and compaction back to rehabilitation. Our new branding now visualizes this cohesion and strength even more vividly. We look forward to continuing to provide you, not just with products, but also with tailored solutions developed in partnership with you and a long-term service for your projects. This is how close to our customers5 works in the WIRTGEN GROUP. 1 WIR Anzeige A3 5 Marken BEN EN 3mm indd Alle Seiten Untitled-5 2 01/02/2016 16:08:35 WIRTGEN is the market leader in milling machines and recyclers for road construction, as well as the quality and technology leader in slipform pavers and surface miners. VÖGELE offers a complete range of road pavers, paving screeds and feeders and is the world market leader and pacesetter in the industry. HAMM is the roller specialist and the No. 1 in asphalt compaction. KLEEMANN is the worldwide technology leader in the mobile crusher and screen market. BENNINGHOVEN constructs the world’s leading asphalt mixing plants. Find out more: www.wirtgen-group.com 19 11 15 17:05 Untitled-5 3 01/02/2016 16:09:03 Visit us at Booth FS.909 MEET THE AMMANN FAMILY OF PRODUCTS AT BAUMA A BROAD LINEUP ON DISPLAY What do the smallest Ammann plate compactor, the largest asphalt plant and every product in-between have in common ? šInnovation that boosts productivity and efficiency, ultimately improving your bottom line šParts and components that ensure long life to maximise your investment šThe commitment of a family business that has thrived in the construction industry for nearly 150 years by keeping promises today – and knowing what customers will need tomorrow Many of these products will be on display at bauma 2016, along with the latest family addition, Ammann Elba concrete mixing plants. Please stop by booth FS.909 and say hello. For additional product information and services please visit : www.ammann - group.com GMP-1293-00-EN | © Ammann Group Untitled-1 1 28/01/2016 09:19:26 KHL.COM Demand for Lift & Move USA event Final total for Lift & Move USA careers day could INSIDE KHL.COM CONSTRUCTION www.khl.com/sector/construction/ News from the Construction Sector CRANES & LIFTING www.khl.com/sector/cranes/ News from the Cranes Sector DEMOLITION www.khl.com/sector/demolition/ News from the Demolition Sector be more than 350 attendees ACCESS he second Lift & Move USA takes place in Houston, TX, February 10, 2016. More than 250 students and high school kids and students have already registered to attend the second Lift & Move USA careers day in Houston, Texas, on 10 February 2016. The event is on course to attract more than 350 attendees. Lift & Move USA, which is a joint effort between SC&RA, industry publisher KHL Group, and NCCCO, highlights career opportunities in the crane, rigging and specialized transport industries and is targeted at high school kids, students at technical and vocational colleges, and military veterans. The first event in Chicago in June last year attracted more than 150 attendees and was a great success but the Houston event looks likely to attract at least double the number. “We are very excited about Houston”, said Brett Melvin, Lift & Move director at SC&RA. “We launched Lift & Move USA to promote careers in our industry and to help plug the skills gap. The first event in Chicago was a great start but the fantastic number of advance registrations for Houston show that we are on the right track. “Hundreds of potential future employees in the Houston area will be exposed to the great career opportunities available in our industry. The support of industry companies, including TNT Crane & Rigging, who will host the Houston conference, means that the attendees will also get the chance to get an up close look at a wide range of lifting and transportation equipment.” The registration fee for industry professionals is US$ 150 (SC&RA members), with booking completed online at: www.liftandmoveUSA.com Lift & Move USA is free for college students, high school kids, parents, teachers, and military veterans. T Construction market data for Europe now available The 2015 European Construction Survey special report – for many years regarded as an unmissable guide to the construction industry across the continent – is available. The European Construction Survey, which is available in a digital format, contains a multitude of facts and figures about the market across the continent. Construction Europe’s editor, Sandy Guthrie, presents a market outlook, where he suggests a brighter future. Then there is a review of stock market performance in 2014 to put the year into perspective, plus a business review cataloguing all the major stories that made the industry what it was at that time. Leading international law firm Pinsent Masons examines how as trends alter globally, different contractual models will come to the fore. It looks at some of the impacts of these differences. A European statistical review is followed by the annual CE-100, and the popular A to Z listing of contractors across Europe is also available, structured to give readers a clear overview of the European construction sector. It includes The European Construction Survey is available for €96, £80 or US$130, from www.khl-infostore. com. Further information on the report can be obtained by emailing [email protected]. www.khl.com/sector/access/ News from the Access Sector RENTAL www.khl.com/sector/rental/ News from the Rental Sector HEAVY TRANSPORT www.khl.com/sector/heavy-transport/ News from the Heavy Transport Sector NEWS www.khl.com/news/ Breaking news BUSINESS & FINANCE ★UPDATED www.khl.com/business-and-finance/ Breaking business and finance news EQUIPMENT NEWS ★NEW www.khl.com/equipment-news/ New equipment launches PROJECT NEWS ★NEW www.khl.com/project-news/ The latest projects from around the world FEATURES ★NEW www.khl.com/features/ Find the latest features from all KHL Group’s magazines CE BAROMETER www.khl.com/ce-barometer/ Construction Europe’s unique gauge of business confidence E-NEWSLETTER www.khl.com/enewsletter/ Subscribe to KHL.com’s e-newsletters USED CRANES www.khl-group.com/khlcranemarket/ KHL.com’s on-line crane market Monthly podcast DIRECTORIES Every issue of iC is accompanied by a podcast, which can be downloaded from iTunes for free. Alternatively you can listen to it on the Podcast page of www.khl.com, or click on the image below in the iPad edition of the magazine. Each podcast sees iC editor Mike Hayes and deputy editor Joe Malone look at key stories, including the news making the headlines at the front of the magazine to more in-depth discussions stemming from features. Go to ‘Podcasts’ under the ‘Audio & Video’ tab of www.khl.com or scan the QR code to access the latest edition. www.khl.com/directories/ Download or buy one of KHL’s unique Directories EXHIBITIONS ★UPDATED www.khl.com/exhibitions/ KHL.com’s global exhibition diary ASSOCIATIONS www.khl.com/associations/ KHL.com’s global associations database SUBSCRIBE www.khl.com/subscriptions/ Subscribe to any or all of KHL Group’s international construction magazines NEWS FEEDS ★NEW www.khl.com/feeds/ Subscribe to one of 17 RSS feeds january-february 2016 internationalconstruction 15 ICON 01-02 2016 KHL page.indd 15 28/01/2016 15:21:25 INTERVIEW Ron DeFeo talks Terex Ron DeFeo talks Terex After 23 years with Terex, Ron DeFeo is stepping down as chairman and CEO, making way for former Bell Helicopters CEO John L Garrison. Ron spoke with Mike Hayes about his company’s past, present and future. ased in Westport, Connecticut, Ron DeFeo’s reputation with Terex was built on his uncanny ability to acquire underpriced and overlooked companies when the time – and the price – was right. His business acumen earned him the nickname ‘the Wizard of Westport’. Perhaps most famously, Terex paid around US$ 75 million for aerial work platform company Genie Holdings in 2002. So successful was the Genie acquisition for Terex, it went on to account for a third of the company’s annual revenue and more than half of its operating income. B Ron DeFeo, former Terex chairman and CEO Perhaps, along with Genie, Powerscreen was among DeFeo’s most notable purchases, of which he said, “When we acquired Powerscreen in 1999, we acquired a jewel that hadn’t been polished, and we acquired it for a very attractive price, and got a management team embedded in Northern Ireland that was a leader in its field. “So it helped us realise that finding a product category where you can be a leader, such as Powerscreen was in mobile crushing and screening, makes a tremendous amount of sense. “I would categorise that as probably our second best acquisition. The best was Genie, because we bought Genie at the right time, at the right price, and managed it in the right way. “The right time? It was during a substantial downturn of 2000 to 2002, where half a dozen or more aerial work platform companies had gone bankrupt, so that’s the right time to make an acquisition. “Which is why, point two, we got it at the right price. And we got it at the right price because it was in trouble and it needed a home with a stronger balance sheet; not that the Terex balance sheet was strong, but it was stronger than Genie’s. “The third point – we did it in the right way. There were great people at Genie – we just unleashed their potential. We kept them, we empowered them, and they did wonderful things for Terex and wonderful things for the Genie customers.” Of another Terex acquisition, Demag Mobile Cranes, DeFeo said, “I think the Demag acquisition is a story that is still unfolding. It could potentially be one of the best things Terex has ever done, but it’s not demonstrated it yet.” Product improvement On the subject of products, DeFeo said, ‘I love the CC8800 – the twin boom. And I think the boom booster product that we put out is a wonderful execution of working with our customers to make our product better. “You know, every time I see that product, it puts a smile on my face – because it’s crafty.” Many would say ‘crafty’ nicely sums up DeFeo’s knack of navigating the vagaries of the construction industry over the past two decades. Would he be passing on his ‘craft’ to new CEO, John Garrison? He said, “The worst thing former CEOs can do is think they have all the advice and want to impart it. What I learned a long time ago is, get out of the way. “From what I’ve seen, what John is going to do is focus on the fundamentals and by focusing on the fundamentals he’s going to do just fine.” While stepping down as CEO, DeFeo has been asked to remain as a consultant to the Terex board while the company’s merger with Finnish manufacturer Konecranes goes through. The CC8800 twin boom is the Terex product that will always put a smile on Ron DeFeo’s face ICON 01-02 2016 Interview - Ron DeFeo.indd 16 29/01/2016 10:50:33 INTERVIEW Ron DeFeo talks Terex Speaking of his time with Terex, he said, “We took what others would believe to have been unsolvable problems and throwaway businesses and turned them into real competitors in real markets across the world. That’s an accomplishment I feel pretty good about, but I had a lot of help.” Regarding DeFeo’s ‘wizard’ status in company acquisitions, he said, “In my view it was pretty simple; there were too many players in the industry and the ability to change physics was pretty limited – we weren’t going to invent a new way to lift something up or to dig a hole, so critical to success was finding the value that was existing in assets, but eliminating those things that were getting in the way. “Many people will wax eloquently about the values of technology; we thought in the early days, make it simpler, make it lower cost and deliver it in a way the customer could use to improve their bottom line. If you apply those simple ideas, there’s a good chance there’ll be a place for you in the market.” DeFeo describes the challenges that faced Terex from the end of 2007, saying, “We had grown 25% a year, compounded annually for 12 years, and the financial crisis basically cut the company in half. “In that time period, we had to recalibrate about what we were trying to achieve. We did and I’m proud of how we survived; a lesser company that had grown the way we had grown might not have, but we had to adapt.” Merger of equals Now Terex will adapt again, as the ‘merger of equals’ deal with Konecranes goes through. On Terex’s future, DeFeo said, “It’ll be a different company, which is why we have made the Konecranes merger, to reduce the volatility that is embedded in our end markets – to try and buttress our service value proposition inside the company. “You say to yourself, how can I balance this portfolio of businesses into something with a more reliable cash flow that can take us through the times when new equipment isn’t going to be sold in the same quantities. That’s when you start looking at businesses like the industrial crane, the overhead crane, the port business. “The Demag Cranes acquisition was a direct result of that thinking and the Konecranes merger is a direct result of trying to be the best in those categories.” Discussion of decreasing sales of equipment brought us onto the subject of rental, which DeFeo expects to increase for the foreseeable future. He said, “Interest rates are low; other than some small hikes in the near term, I don’t see them spiking up. Access to capital for rental companies is excellent, and technology is allowing rental companies to know where their fleet is and manage their fleets intelligently. “You combine economics and uncertainty and a customer makes a decision to defuse risk,” he said. “If I don’t know how long I will have a job and I don’t know exactly what the next job will be, it’s better for me to temporarily acquire the equipment I need than to permanently put that equipment on my balance sheet, hoping that I can sell that equipment or monetise that equipment down the road, at an attractive price. It’s a fundamental.” iC january-february 2016 internationalconstruction 17 ICON 01-02 2016 Interview - Ron DeFeo.indd 17 29/01/2016 10:50:51 Untitled-1 1 28/01/2016 09:20:10 ECONOMIC OUTLOOK China Slow road to recovery The outlook for the construction market in China is challenging, but opportunities still exist. Scott Hazelton reports. hina’s economic slowdown will continue, with growth weakening more sharply in the coming quarters, as the country continues to struggle with a major cyclical downturn owing to the glut in the housing market, industrial capacity and debt. The situation is made more challenging due to a lack of organic growth engines because of forgone productivityboosting structural reforms over the past decade. The most recent and glaring example has been the inability of China’s private sector to access capital in China’s deficient financial system. The government attempted to partially address the issue by promoting the stock market to expand funding resources for Chinese firms. However, without first establishing a proper regulatory infrastructure and setting clear expectations on the boundary of the government’s role in the stock market, such promotion quickly led to a speculative bubble and the inevitable crash. Even so, a financial crisis triggering a hard landing is not highly probable, a more likely concern is that China will enter a period of prolonged low growth. Several factors work against a financial debacle. Firstly, China’s closed capital account prevents mass capital flight, as Russia has experienced. Secondly, the central government possesses the resources to bail out troubled financial entities if necessary. While local government indebtedness has risen greatly, the central government’s fiscal conditions remain sound, with debt of only 15.7% of GDP. C Furthermore, government control over a largely state-owned banking sector will prevent the type of uncertainty-led credit crunch seen in the United States during its 2008-09 financial crisis. While safeguards can prevent a financial crisis in the short term, in the absence of financial sector reform, either bad loans will re-accumulate or the economy will suffer slower growth due to insufficient access to capital in the long term. Bounce back We expect China to slow further in 2016, before bouncing back marginally in 2017. The continued digestion of industrial sector excess capacity, a glut of housing inventory, and a debt bubble will limit domestic demand. For 2017, a modest recovery in construction and investment will be the main driver for a modest rebound. The recent divergence in housing sales rebounding and construction contracting follows the normal housing market cycle, namely sales activities will first recover before inventory is digested to a degree that would induce a rebound in construction. Since the latest housing market recession is already the longest in China’s recorded history, both in terms of sales and starts, it is reasonable to expect continued construction weakness in 2016, followed by a modest rebound in 2017. Similarly, investment should begin to rebound modestly in 2017. Nine provinces have released their investment projects for 2016, with combined investment Construction by sector 4.3% 4.1% Non-Residential 14.2% 6.1% Infrastructure 7.6% 6.8% 4.6% Residential 2.4% 10.3% 5.0% 4.6% Total Construction 10.4% 0% 5% 2019-2024 2009-2014 10% 15% over 14 trillion renminbi (US$ 2.1 trillion), reports Shanghai Securities News. Shaanxi and Fujian released over 3 trillion renminbi ($ 455 billion) in projects; Henan, Jiangsu, and Jiangxi planned over 1 trillion renminbi ($ 152 billion) each; Anhui, Hebei, and Zhejiang released over 600 billion renminbi ($ 91.2 billion) each; and Sichuan released around 420 billion renminbi ($ 63.8 billion) in projects. Moreover, Sichuan and Zhejiang have already commenced projects during the first week of the year. Most of the major projects are infrastructure, including water, transportation, and energy. Industrial investment, particularly new industry and modern services, expanded rapidly. However, some provinces, including Anhui and Sichuan, cut investment from 2015, largely because of the fiscal shortage of local governments. Local debt pressure, limitations on local government financing vehicles, as well as declining tax revenue in the recession worsened the local government’s investment ability. That suggests limited infrastructure expansion to soften the slowdown in 2016, compared with 2015, although it does not mean shrinking fiscal stimulus. Indeed, China is expected to expand its fiscal deficit in 2016, according to the Ministry of Finance (MOF). Non-residential Besides interest rate and reserve requirement cuts, the government has rolled out stimulus policies targeting the housing market, including continued public housing construction and targeted reduction in the down-payment requirement. The scope and size of the new stimulus will remain constrained by the need to deleverage the excess credit unleashed into the economy from the massive stimulus during the global financial crisis downturn. The chart indicates the dramatic slowing of residential construction and the continued importance of infrastructure over the forecast. Indeed, while we have significantly lowered our forecast for total construction spending to 4.2% in 2016, our view of infrastructure remains largely unchanged. The 2015 expectation for residential construction growth was been revised downward, from 3.1% to -1.1%, and the 2016 forecast was revised to 1.1%. Some industries will fare better than others, notably those favored by the market or China’s central plan. Mining and energy-intensive january-february 2016 internationalconstruction 19 ICON 01-02 2016 Economic Outlook - China.indd 19 28/01/2016 15:24:47 ECONOMIC OUTLOOK China About IHS Established in 1959, IHS is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world. Total construction 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 2018 2016 2014 2012 2010 2008 2006 2004 2002 2000 0% Construction Growth (Real US$2000) industries are the main drag. More advanced industries, on the other hand, have fared better during the current downturn. Equipment manufacturing growth accelerated 0.9% to 6.8%, according to the most recent data, while high-tech manufacturing growth rose to 10.8% from 10.4%. Similar to China’s macroeconomic transition from industrial sector to service sector, China’s industrial sector is undergoing a shift from heavy and labor-intensive/low value-added industries to technology and higher value-added industries. Other favored structures will include social facilities, agricultural and water conservancy, telecommunications and information technology and education and health care. China has moved into a slower growth phase which this will last a considerable time. Our medium term outlook – the five year compound growth rate – has been reduced by 180 basis points from a year ago. Opportunities exist, but greater care is required to find them and the risk of poor returns has increased. Infrastructure projects, particularly rail, offer the greatest potential, and the larger cities have become safer bets than medium to small cities and the hinterland. iC 20 internationalconstruction january-february 2016 ICON 01-02 2016 Economic Outlook - China.indd 20 28/01/2016 15:25:08 MORE POWER. MORE SPEED. LESS NOISE. VERMEER S3 NAVIGATOR® DRILLS DELIVER WHAT DRILL OPERATORS NEED — AND WHAT THE WORLD DEMANDS. There’s more work than ever to be done installing 1 gig fiberoptic cable in communities around the world. The Vermeer S3 line of horizontal directional drills delivers what you need to take on these challenges with enhanced speeds, increased power, significant sound reductions and simplified controls. It’s more of what you need to do the work quickly and accurately. Check out the Vermeer S3 drills in action at bit.ly/VermeerS3. Visit Vermeer.com, or contact your local dealer to schedule your demo. Vermeer, the Vermeer logo, Equipped to Do More and Navigator are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries. © 2016 Vermeer Corporation. All Rights Reserved. Untitled-1 1 28/01/2016 09:20:54 REGIONAL REPORT China er a What China crisis? When growth in the world’s largest construction market slows down, the effect on the industry is seismic. Perhaps the world’s largest construction projects can turn the tide. Mike Hayes reports. escribing the Chinese construction market as depressed is not overdramatising the situation; relative to the huge growth in the country over the past 12 or so years, it is now experiencing a significant downturn in almost all sectors of the industry. Yet, looking at the diminishing growth in many other world markets gives a more balanced perspective, as well as noting that China is ultimately moving towards a safer, more sustainable pattern of growth. After sharp declines in construction equipment sales in 2015, one of the country’s leading manufacturers recently said he believes the end of the downturn is in sight. Liugong Group chairman Zeng Guang’an said, “I think we are very close to the bottom of the market in China. It may drop a little next year [2016], but then it will pick up. The problem is that the machine population is very high.” He added, “I believe some companies will move out of the industry. The strong companies will get stronger and the weak companies will get weaker.” Mr Zeng also said that Liugong’s perceived conservatism in investment in the boom years up to 2011 was now serving the company well. He said, “Many companies over-invested. Five years ago people said Liugong was moving too slowly, but today Liugong is a Strong company.” A report released by consultancy firm Arcadis in October last year, revealed that China had leapfrogged the US to become the D One of the new Potain MCT 205 cranes. world’s richest country in built assets, with a value of US$ 47.6 trillion placed on its buildings and infrastructure, compared with the US’s $ 36.8 trillion. The reason for China’s step up to the top of the wealth list is explained by the country’s determined and long-standing efforts to underpin its rapid economic growth with buildings and infrastructure. Worth more than double Since 2000, China has invested some US$ 33 trillion in its built assets – more than all other world economies combined and equating to 9% of its GDP. The picture of China’s economy today may not be rosy, but given its current growth model, the country’s built asset stock will nonetheless be worth more than double that of the US by 2025. As we can see, while the decline in construction output growth has hit construction equipment manufacturers hard – there does appear to be light at the end of the tunnel. For one thing, the Chinese government’s revision of the old one-child policy will, in the long-term, aid construction growth. A variety of Potain cranes at work on the construction of the Haixi Jinggu Square financial complex in China. 22 internationalconstruction january-february 2016 ICON 01-02 2016 Regional Report - China.indd 22 28/01/2016 15:27:23 REGIONAL REPORT China waterways will reroute almost 45 billion cubic metres of water annually, and link China’s four main rivers – the Yangtze, Yellow River, Huaihe and Haihe – at a cost of more than US$ 60 billion. The three routes – eastern, central and western – will run to a combined length of around 3,000 km, an enormous technical feat. The plan for the central route, for example, is for water to flow some 1,100 km, from the Danjiangkou reservoir to Beijing, by gravity, negating the need for any pumping stations. This concept threw up a number of major engineering challenges, including the need for a tunnel beneath the Yellow River. At a length of 585 m and with a 9 m diameter, the tunnel was completed in d 22012, and is now aiding the transfer of 14.8 billion m3 of water a year from the Yangtze River Basin to the provinces of Y Shandong and Hebei, as well as to the S Tinjian Municipality. T TTransitioning The largest hydropower project ever constructed, the Three Gorges Dam contains around 16 million m3 of concrete in its structure. A newlyconstructed section of the South-to-North Water Diversion Project. This combined with its recently reported US$ 1 trillion package of construction projects, could breathe some life into the market. Reportedly, in 2015 alone, private investors were offered opportunities to take part in over 1,400 infrastructure projects, worth over US$ 300 billion. Encouragingly for both contractors and manufacturers, the government recognises the urgent need for infrastructure development, particularly in the areas of rail, power and water utilities. According to China Railway Corporation, China spent 820 billion yuan (US$ 126 billion) on rail projects in 2015, and put more than 9,000 km of new track into operation. With a newly completed high-speed railway in the southern Hainan province, China now has a total of around 19,000 km of high-speed rail. Following the construction of the vast Three Gorges Dam – the world’s largest hydropower project – the even more ambitious South-to-North Water Diversion Project is another good example of how construction undertakings – and therefore opportunities – in China can dwarf similar schemes in other parts of the world. This project is the largest of its kind ever undertaken, and involves drawing water from southern rivers and transporting it to the dry north of the country. The scheme took 50 years to move from concept to construction – with Mao Zedong first proposing the project in 1952, and work beginning on the eastern route of the project in 2002. With completion expected in 2050, the system of three new E Economists generally agree that China’s ggrowth is transitioning from investment aand manufacturing to services and cconsumption. At the recent World Economic Forum gathering in Davos, E SSwitzerland, numerous experts spoke positively about the future growth of China. Christine Lagarde of the International Monetary Fund said, “We see the transitions as manageable.” Ray Dalio of Bridgewater Associates said China was going through “a cyclical adjustment. “This may last two to three years,” he said, adding, “the future of China is vibrant and young, and any volatility is global and linked to monetary policy.” The changing face of China’s economy can be seen in construction developments such as Haixi Jinggu Square, set to become the largest financial complex in Xiamen, Fujian Province. Over a period of just one month, eight Potain tower cranes were installed within the 430,000 m2 site, to aid with the construction of a hotel, office space and a commercial centre. In stark contrast to the duration of mega-projects such as the South-to-North Water Diversion Project, the cranes at the US$ 500 million Haixi Jinggu Square development are expected to be on site for no more than 24 months, lifting building materials to heights of around 180 m. The main contractor, China Construction, is using the cranes in overlapping patterns, and > China is investing heavily in its high-speed rail network, with over 19,000 of high-speed railway lines already constructed. january-february 2016 internationalconstruction 23 ICON 01-02 2016 Regional Report - China.indd 23 28/01/2016 15:27:32 REGIONAL REPORT China chose the cranes specifically for their modular designers, allowing for reduced assembly times and maximum productivity. Renewable energy Another change in direction for China – and more specifically, the Chinese government – sees it turning towards renewable energy. At the end of last year, construction began on the country’s The City Point residential development in Tsuen Wan, Hong Kong, is seen as a potential turning point in the city’s housing sector. ‘One Belt, One Road’ 2,000 years on, China looks to reinvent the Silk Road irst unveiled in 2013, President Xi Jinping’s grand ‘One Belt, One Road’ plan to revivify the ancient Silk Road and beyond, is slowly taking shape and gathering pace. To give the initiative its full official title, it is the Silk Road Economic Belt and 21st Century Maritime Silk Road. The ‘Belt’ element of the plan concerns a land-based economic corridor designed largely to enhance trade, starting in Xian in Shaanxi province, and running through central Asia and Europe. Infrastructure along the route will be developed and enhanced – including road and rail routes, as well as oil and gas pipelines – with help from both Chinese coffers and Chinese contractors. As for the ‘Road’ part of the equation, this will in fact be a sea-based route – or perhaps more realistically, a network of port and coastal infrastructure projects – running from South and Southeast Asia to East Africa and on to Europe. While the mammoth initiative will doubtless present mouth-watering opportunities to Chinese construction companies working on the international stage, it is perhaps within China itself that the government would like to see most benefits. The trade route will run through some of the country’s poorest and least developed regions in the south and west, connecting them with richer areas. It will be hoped that major domestic construction projects will play a role in improving China’s internal economic integration and competitiveness. The ‘One Belt’ One Road’ strategy is being presented to the rest of the world as a ‘winwin’ opportunity – and there is much excitement, especially in Europe, about the possibility of winning major construction contracts. In other quarters, however – specifically Japan, Russia and India – there are serious concerns about the amount of influence the new routes could give China in regions they have long considered their ‘backyards’. When all is said and done, it must be remembered that this this is just an initiative, not a detailed proposal. It is hoped that the countries in Asia, Africa and Europe will respond to this initiative, but the implementation of any specific projects will depend strictly on bilateral negotiation. Domestic industries are encouraged to develop business in these regions and, under the initiative, they may enjoy increased opportunities if the relevant countries improve their cooperation with the Chinese government. F largest wind power project, the 400 mW installation on Nanri Island, in Fujian Province, around 750 km north of Hong Kong. Expected to be completed in 2018, the installation is set to deliver 1.4 billion kW/h of electricity a year, equivalent to burning 450,000 tonnes of coal. This form of energy is expected to save 4.4 million tonnes of water, which would otherwise be used for thermal power generation. The dedication with which China is pursuing the development of renewable energy can be seen in the fact that it brought some 35 gigawatts of renewable power generation online in 2014 more than the US, the UK and France combined. All this in the face of strong opposition within the country, between political and economic stakeholders across multiple bureaucratic units, including the oceanic administration, the military and coastguard, as well as fishing and shipping industries. China is also no slouch when it comes to construction technology, now seen as an essential element within major projects. An example is the US$ 13 billion development of Beijing’s new international airport – with US construction technology company Trimble recently announcing it will continue to supply a construction information management system to the project. Based on the success of the solution to date, the contract has been extended to include additional machine control systems for soil stabilisation. Development in central Shanghai, overlooking the Yangtze river. 24 internationalconstruction january-february 2016 ICON 01-02 2016 Regional Report - China.indd 24 28/01/2016 15:28:04 REGIONAL REPORT China Construction in Hong Kong, where infrastructure projects such as the Hong Kong section of GuangzhouShenzhen-Hong Kong Express Rail Link are key to continued growth. When completed, the new airport will be the world’s largest, catering for around 72 million travellers, two million tonnes of shipping and 620,000 flights by 2025. Trimble is implementing a browser-based, locally-hosted digital construction information management system for tracking and monitoring construction operations in real-time. The solution allows users to create 3-dimensional constructible models, perform soil stabilisation, automate construction The newlycompleted Shanghai Tower, featuring an ‘intelligent skin’ façade to assist with wind tolerance and capture moisture. > The new General Catalogue is available! now The most complete range of testing equipment for concrete and cement, asphalt and bituminous mixture, soil and rock, further to general laboratory apparatus. From basic to advanced testing solutions. ...discover more! Download our free mobile APP visit www.controls-group.com january-february 2016 internationalconstruction 25 ICON 01-02 2016 Regional Report - China.indd 25 28/01/2016 15:28:39 REGIONAL REPORT China Beijing's new airport will serve the world’s fastest-growing aviation sector and ultimately have capacity for 72 million passengers. processes and effectively manage information. Another record-breaking development is the recently completed 632-metre-high Shanghai Tower, China’s tallest building and second only in the world to the Burj Khalifa in Dubai. Engineering and project management company Aurecon was engaged to perform a number of tasks, including façade engineering design. Aurecon undertook geometric analysis and wind tunnel testing to address complex design issues and allow for the integration of sustainable objectives. The ‘intelligent skin’ of the tower boasts an innovative upward spiral design, allowing it to tolerate strong winds and also capture rainwater for air-conditioning and central heating. Architect's impression of the world’s largest airport passenger terminal – at the Beijing New Airport. Hong Kong boasts another huge construction market, hoping for a general upturn in the economic situation. While its prospects are inextricably linked to the economic performance of the country as a whole, a Timetric report recently forecast annual growth of 6.91% from 2015 to 2019. The forecast cited improving investor confidence and global economic conditions as factors, as well as the government’s aim to improve access to transport networks, tourism infrastructure and housing projects for the fast-growing population. The report states that, for the forecast to become a reality, major infrastructure projects, such as the Guangzhou-Shenzhen-Hong Kong Express Rail Link, must move forward without disruption and delay. iC INNOVATIONS.PRODUCTS.WEB.MOVIE Curtain up for unique innovations, new functions and height access technology in proven GEDA quality. Visit us at bauma 2016 and join us in the premiere celebrations of our four new stars. 11 - 17 April 2016 Booth FS.1004/1 www.bauma-geda.de 26 internationalconstruction january-february 2016 ICON 01-02 2016 Regional Report - China.indd 26 28/01/2016 15:31:15 Untitled-1 1 28/01/2016 09:22:06 Leica PaveSmart 3D Advanced paver control system for asphalt finishers i nt e l l i g e n t C O ns t r uc t i o n Leica PaveSmart 3D is the result of 15 years knowledge and experience from the world’s first provider of stringless concrete and asphalt paving, trimming and milling technology. With Leica Geosystems’ unique PaveSmart 3D control system, the machine is controlled without stringlines. Starting from the project data, the actual 3D position is measured by robotic total stations and/or GPS receivers and transmitted to the machine computer. Visit us at bauma 2016 and learn more about Leica Geosystems’ solutions for professionals on any construction site. Leica PaveSmart 3D – Fully automatic grade, slope, width and heading control. Leica Geosystems AG Heerbrugg, Switzerland www.leica-geosystems.com Untitled-1 1 28/01/2016 09:26:59 EXHIBITION PREVIEW Bauma Munich Gearing up for Bauma Munich At a glance What? The largest construction equipment exhibition in the world When? 11-17 April, 2-16 Where? Over half a million visitors are expected to descend on Munich in April for the behemoth of construction equipment exhibitions – Bauma. International Construction previews the show. Messe München trade-fair centre, Munich, Germany For more information go to: www.bauma.de he largest construction equipment exhibition in the world returns this year from 11 to 17 April in Munich, Germany – taking place every three years, Bauma will have around 3,400 exhibitors and is expected to attract half a million visitors. The show will take up an enormous 605,000 m2, and it is booked to capacity again for 2016, with over 700 companies on the waiting list. There are plenty of new launches planned for Bauma, including Caterpillar, one of the best-known names in the construction equipment industry, which said it would have over 60 products on show. Together with its German dealer, Zeppelin Baumaschinen, it will exhibit a suite of technologies, services and equipment under the theme Built for It. In display space totalling more than 8,200 m², the company will showcase safety, productivity and equipment management T Caterpillar have announced that three new pavers will be showcased, including the AP300F january-february 2016 internationalconstruction 29 ICON 01-02 2016 Bauma Preview.indd 29 28/01/2016 15:32:18 EXHIBITION PREVIEW Bauma Munich What you need to know Important travel and hotel informaiton s far as travelling is concerned, the nearest airport is Munich Airport. During Bauma a shuttle bus service will run from the airport to Messe München, the show site, every 30 minutes. The journey takes 45 minutes and tickets are €8 (US$9.00) oneway or €13.50 (US$15.00) for a return journey. The airport shuttle bus stops are located directly in front of the areas A and Z at Terminal 1, and in front of Terminal 2. From 08:00 to 18:00 shuttle buses travelling to the exhibition grounds depart from the airport every 30 minutes. From 9:30 to 19:00 the shuttle busses run every 30 minutes from the exhibition grounds to the airport. These times are provisional, however, so it is advised that visitors refer to the specific information about shuttle bus service during the show. Taxis from the airport to the Trade Fair Centre cost an agreed fixed rate of €59 (US$ 65.00). For journeys into Munich city centre from the airport, take the S1 or S8 urban rail lines to the Hauptbahnhof (central station) or Ostbahnhof (eastern station), or stations and connections along the route. Several bus services are also available, serving different parts of the city – check information counters at the airport, depending on your destination. A limited number of hotels offer a shuttle bus service. Taxis are also available, but as the airport is some 30km from the city centre, fares to the city centre are likely to be €65 (US$70.00) or more. Rental cars are available at Munich airport from Avis, Europcar, Hertz, National/Alamo and Sixt. Service counters and pick-up/drop-off points are located in Terminal 1. Munich is also well served by rail and road networks. A JCB are promising the international launch of its 3CX Compact backhoe loader solutions, a large selection of work tools and a full complement of dealer-delivered support services. In line with many manufacturers, Caterpillar was keeping tightlipped on the details of all its major launches at the exhibition, but did say that three new pavers would be showcased. It said the AP300F, AP355F and AP555F were built with intuitive, accessible technology and a quick-heating screed system that increased productivity and reduced crew idle time. It said all were powered by engines that met EU Stage IV/US Tier 4 Final off-highway diesel exhaust emission standards. Largest-ever model Volvo Construction Equipment, meanwhile, said it would have its new 60 tonne class articulated dump truck on show – the A60H – which is its largest-ever model. And it said new excavators, wheeled loaders, pavers, haulers and compactors would also be introduced. Volvo CE is planning 16 product launches in total. Volvo CE is joined at Bauma by sister companies Volvo Penta, Volvo Financial Services and Volvo Trucks. Other large earthmoving launches are also planned, with Liebherr launching a 70 tonne dozer at the show in the form of the PR 776 Litronic crawler tractor, which is designed for tough mining and quarry operations. The company said other new launches were also on the cards at Bauma, including a mobile compressor with electric drive, and a new excavator (the M125) which closes the gap between its M115 and M130 models. For its part, JCB said Bauma would see the international launch of a range of new products – including its 3CX Compact backhoe loader. Designed for road resurfacing and repair contractors, utilities, ground-workers and municipalities working in the confines of congested urban construction projects, the new model is 1.9m wide and 2.74 m wide – compact dimensions to maximise manoeuvrability, according to JCB. Hotels Bauma’s popularity means hotel rooms are hard to come by in Munich during the show, and visitors can expect to pay five to ten times the normal advertised rate for a room. Reservations can be made through: Tradefairs Phone: +49 69 95883616 Fax: +49 69 95881913 e-mail: [email protected] www.tradefairs.com Munich Metro The New Munich Trade Fair Centre is served by the U2 underground metro line, part of Munich’s extensive public transport network. The Messestadt West station is at the main entrance to the trade fair, and is convenient for the lower numbered exhibitions halls (A1 to A3, B0 to B3 etc.). The Messestadt Ost station is more useful for the outside exhibition areas and the higher numbered halls (A4 to A6 etc.). There is also car parking available at the trade fair centre and a steady flow of taxis. The huge numbers of visitors to Bauma can lead to heavy traffic and delays, particularly at peak times. ■ Help planning a journey on public transport can be found at: www.mvv-muenchen.de ■ Munich Airport’s website is also a useful source of travel information, at: www.munich-airport.de ■ There is also plenty of useful information on the Munich Tourist Information website at: www.munich-touristinfo.de IPAF plans to highlight the safe loading and unloading of aerial work platforms at the show 30 internationalconstruction january-february 2016 ICON 01-02 2016 Bauma Preview.indd 30 28/01/2016 15:32:42 TAKE THE LEAD DINO KNOWS THE MOVES Combining the largest coverage area in its class with excellent mobility and agility, our new Dino DC400Ri top hammer drill rig is ready to show some serious moves to get the job done at any construction site. All you need to do is to take the lead – with Dino. For more information on the new Dino DC400Ri drill rig, please go to www.sandvikdino.com CONSTRUCTION.SANDVIK.COM Untitled-1 1 28/01/2016 09:28:14 EXHIBITION PREVIEW Bauma Munich Volvo Construction Equipment will have its new 60-tonne class articulated dump truck on show in Munich – the A60H – together with 16 further product launches The 3CX Compact can travel at 40km/h and is powered by a 55 kW Tier 4 Final/Stage IIIB-compliant JCB Diesel by Kohler engine. And the show will also see the manufacturer’s range of site dumpers from 1 to 10 tonnes launched for the German market, according to the manufacturer. Engine outputs range from 15.5 kW to 90 kW and both synchro-shuttle and hydrostatic transmissions are available. Chicago Pneumatic said it would launch two new lighting Bauma Charity Alliance The charity will launch at Bauma this year new Bauma Charity Alliance is intended to highlight the fact that the companies in the construction sector are actively engaged both in combating hunger and poverty and in promoting education and the environment in the third world in addition to their day-to-day business. The launch of the charity will be at Bauma this year. The construction and construction machinery industry has been one of the driving forces of the global economy for years. Internationally-orientated companies have become increasingly involved in developing and emerging countries. Many companies are not just interested in pure profit maximisation and expansion but are actively involved worldwide in social projects of every description. Klaus Dittrich, chairman and CEO of Messe Klaus Dittrich, CEO of Messe München München, the company behind Bauma, said, “Corporate societal and social commitment is no contradiction. On the contrary, longterm success requires both factors to go hand-in-hand. He added, “Many Bauma exhibitors have long since taken this on board and are acting accordingly.” The charity is inspired by the Pilosio Building Peace Award, and the intention is to create a strong network and presentation platform to draw attention to social commitment by companies within the construction machinery industry. The network intends to promote dialogue between members on the implementation of social projects and to attract additional interested parties to become actively involved in the Bauma Charity Alliance. Applications are restricted to companies exhibiting at Bauma 2016 who are carrying on projects in the fields of education, nutrition, health, social integration or the environment, and which bring about a lasting improvement in the living conditions of people in need living in, or hailing from, crisis areas, emerging or developing countries. To date Atlas Copco, Aumund Fördertechnik, Man, Pilosio, Terex Latin America, Wirtgen, Volvo Construction Equipment, Zeppelin Baumaschinen and ZF Friedrichshafen have notified their projects to the Bauma Charity Alliance. A towers at Bauma. The new V15s are the first models in the Chicago Pneumatic range to use a heavy-duty polyethylene (PE) canopy. The V15 range has two models – the CPLT V15 comes with metal halide technology, while the CPLT V15 LED features LED lighting technology and can light an area approximately 25% larger, while proving additional fuel efficiency benefits, according to the company. Both are powered by a Kubota Tier 4-compliant engine. Peak performance Chicago Pneumatic said the new PE canopy protected vital internal components to ensure peak performance, and offered optimised lifespan and resale value. It also said the wide wing Chicago Pneumatic is launching its V15 lighting tower range at Bauma 32 internationalconstruction january-february 2016 ICON 01-02 2016 Bauma Preview.indd 32 28/01/2016 15:33:06 OUR WORK HAS ALWAYS BEEN ABOUT YOURS. CAT® INDUSTRIAL ENGINES No matter what technology your jobsite requires, we have an engine to meet your needs. Browse our lineup, ranging from 5.7 kW (7.6 hp) to 6100 kW (8180 hp), and find models designed for your day’s demands and your equipment’s configuration. INNOVATION ISN’T JUST IN OUR PRODUCTS – IT’S IN OUR PROCESS. Seamless installation • Anytime support For more information visit CatIndustrialPower.com See us at Booth 137 Hall A4, Bauma 2016, April 11-17, Germany © 2016 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. Untitled-1 1 28/01/2016 09:28:50 EXHIBITION PREVIEW Bauma Munich Bauma Open Innovation Networking at the biggest construction show n time for the show, Messe München is launching a new service for the sector – the Bauma Open Innovation online platform. Bauma participants and other professionals interested in the sector can use this platform to solve their innovation-related challenges, by calling on Messe München’s entire crossdisciplinary network of contacts. Companies can engage in applications or technology scouting. For example, companies can seek out new industries or fields of application for their existing products and services, and/or find appropriate technological solutions to meet specific challenges they are facing. I doors allowed easy maintenance access to the machine. Chicago Pneumatic also plans to showcase its latest generation of rig-mounted hydraulic compactor attachments at Bauma – the RC range – which includes five new models for use on 1 to 40 tonne operating weight carriers. Hatz has announced that a complete line-up of industrial engines up to 56 kW will be presented at Bauma. For the first time, the manufacturer is showing the three-cylinder models as a completion of the H-series, solutions for the coming Stage V emissions regulations, as well as modern generating sets and hydraulic power packs. Hatz has announced a complete line-up for industrial engines up to 56 kW Europower plans to launch a new 3000rpm rental generator range Europower said it planned to launch a new 3000rpm rental generator range at Bauma. The company said the thinking behind the new range was the development of more compact but highly reliable machines. It said the Kubota engines had lifespans of at least 7500h in 3000rpm, with planned maintenance intervals. It said parallel operation between generating sets, remote monitoring, automatic oil filling, spark arresters and much more would also be present on the latest rental models. And the International Powered Access Federation (IPAF) plans to highlight the safe loading and unloading of aerial work platforms at the show, share good practice and provide a meeting point for members to network and discuss the industry. This is just a first glance at what will be on show at Bauma. The full show guide will be available in the March issue of International Construction, followed by a stop-press guide in the April issue for further coverage of Bauma launches. iC The HL970 is powered by Scania DC09 085A stage IV engine producing 232kw 34 internationalconstruction january-february 2016 ICON 01-02 2016 Bauma Preview.indd 34 28/01/2016 15:33:15 HANDCRAFTING THE FINEST IN UNDERGROUND CONSTRUCTION EQUIPMENT The performance and reliability you expect from the biggest names in the business. AMERICAN AUGERS DD-110 TRENCOR T1060 Maxi-Rig Directional Drills • Auger Boring Machines • Product Tooling & Accessories • Mud Pump & Cleaning Systems Mid-Size Directional Drills • Chain Trenchers • Wheel Trenchers • Rock Saws • Road Miners americanaugers.com • trencor.com © 2016 American Augers, Inc. Untitled-1 1 Charles Machine Works Companies 28/01/2016 09:29:42 BIG NEWS It is hard to keep secrets under wraps, especially when they are big secrets. Explore more at Bauma. Munich 11th – 17th April Hall C4:327 Outdoors: FM510 Untitled-1 1 28/01/2016 09:30:19 COMPACT EQUIPMENT Mighty small Technical standards Kubota’s RT100 deposits earth into its KC110 in compact equipment continue to improve, from increased dumping angles to increased loading capacities. Joe Malone examines the latest machines to hit the global market. Mighty small ompact equipment such as wheeled loaders, mini excavators and skid-steer loaders generally ranges from 4 to 10 tonnes in weight, and is improving in capabilities all the time. One company to keep up with the improving trend is Japanese equipment manufacturer Kubota, which is lining up its new range of wheeled loaders and track dumpers this year. A total of 11 new machines will enter the UK market throughout the next few months, marking the first time that the company has launched a whole range of wheeled loaders at once. It is hoped the development of the machines will cement the company’s C Hitachi’s new ZW65-6, ZW75-6 and ZW95-6 wheeled loaders range from 4.9 to 5.4 tonnes position in the construction market across the UK and Ireland, said Kubota. The RT Series wheeled loaders have been designed to ensure efficiency and flexibility across a range of tasks and incorporate a 45-degree articulation-oscillating angle for easy access into small spaces without damaging surfaces. The new track dumpers added to the line-up include the KC250HR-4, suitable for construction professionals wanting a compact and powerful machine with the ability to transport large amounts of material in a short space of time with its 84-degree dumping angle. Neil Winfield, Kubota Construction’s business development manager, said, “At Kubota we’re always developing highly versatile machines that can be used alongside our mini-excavators and utility vehicles for a complete onsite solution. He added, “Kubota Original engines can boost performance and enhance productivity when used in conjunction with different types of machinery.” The new additions to Kubota’s construction equipment offering will sit alongside its oil cooled diesel, watercooled diesel and dual fuel engines. OEM agreement Liebherr’s new a914-300dpi wheeled excavator Hitachi Construction Machinery Europe (HCME), has announced it has entered into an OEM agreement with Mecalac Baumaschinen. The agreement covers the manufacture of compact articulated wheeled loaders that comply with EU emissions Stage IIIB by Mecalac at its factory in Büdelsdorf, Germany. Moriaki Kadoya president and CEO of HMCE, said, “HCME is continuously striving to offer the most reliable solution to our existing and prospective customers across all of our European territories. This > january-february 2016 internationalconstruction 37 ICON 01-02 2016 Compact Equipment.indd 37 28/01/2016 15:35:39 COMPACT EQUIPMENT Mighty small V-power will provide Hitachi customers with the best technology in this market sector in combination with the consistently high level of after-sales support supplied by HCME’s dealer network.” Three new high-performance models – ranging from 4.9 to 5.4 tonnes – are included within the agreement. These are the ZW65-6, ZW75-6 and ZW95-6. These will be sold under the Hitachi brand in its distinctive orange colour through HCME’s authorised dealer network, said the company. All the machines offer a self-stabilising articulated pendulum joint that increases the stability and allows for a perfect driving experience, an overall height of less than 2.5 m, and a 100% differential lock in the front and rear axles that can be engaged on demand for unconditional traction of all wheels, even when working on rough ground. Each model is equipped with a mono-boom, which provides excellent all-round visibility on busy job sites. Marchetta said, “This range of articulated wheel loaders has been continuously updated and offers the best design on the market. For Mecalac, this cooperation with HCME recognises the technical level of these products, an emphasis on the environment and operator safety, and the overall quality of our production capabilities.” Unique manoeuvrability Swiss-based manufacturer Liebherr has five wheeled loaders, four wheeled excavators and three crawler excavators in its compact product range. The wheeled loaders are manufactured at Liebherr’s Bischofshofen plant, in Austria. Wheeled loaders, L 507, L 509 and L 514, which have bucket sizes between 0.9 and 1.5 m³, are characterised by their stereo steering system, which provides these Stereo loaders with their unique manoeuvrability. Its compact wheeled loaders, L 506 and L 508, provide a completely new machine concept within the wheeled loader family and with bucket sizes between 0.8 and 1.0 m³, they complete the range of small Liebherr wheeled loader products. The company’s range of wheeled excavators, A 910 Compact, A 912 Compact, A 914 Compact and A 918 Compact, as well as the crawler excavator, R 914 Compact, are developed Yanmar aims to expand its product portfolio anmar Construction Equipment Europe has launched two new compact wheeled loaders – the V7 and V8. The company said that the aim is to expand the product portfolio with products complementary to the renowned hydraulic excavators, and to strengthen the position of Yanmar and their partners in the compact equipment sector. The V7 and V8 will be powered by Yanmar engines, known for their reliability and low fuel consumption. The V7 model has an operating weight of 4100kg, and offers a payload of 1.800 kg. While the V8 model has an operating weight of 4350kg, and offers a payload of 2.100 kg. With their high bucket capacities of 0.7 m³ for the V7 and 0.8 m³ for the V8, the two loaders cover a wide range of applications. A powerful hydrostatic transmission ensures excellent traction – and loading forces at 2300 kg for the V7 and 3000 kg for the V8. Additionally, Yanmar offers an inch-break-pedal in order to adjust the performance between the transmission and working hydraulics. The lifting frame follows the Z-bar concept, raising breakout force and lifting forces. This concept also increases visibility, especially to the front of the machine. The machines have a straight articulation joint with an oscillating rear axle, offering good stability while driving on uneven grounds. Together with the differential lock 100% on demand – on the V8 – the driver can use the traction force of the loader even in the worst ground conditions. Visibility has also improved through the use of bigger windows. This 360° visibility leads to greater safety on the jobsites. Y The V8 has a height bucket capacity of 0.8 m³. Wacker Neuson’s new WL32 and manufactured in Kirchdorf an der Iller, Germany. They boast operating weights from around 12 tonnes for the A 910 Compact up to 20 tonnes for the A 918 Compact. Their particular strengths are in heavy continuous operation when used in mining, water management, landscaping and in city centre locations, said Liebherr. With the crawler excavator R 926 Compact built for tougher applications, operators get a machine that combines the properties of a standard crawler excavator with the advantages of a compact excavator. The R 926 Compact has an operating weight of approximately 25 to 29 tonnes and is produced in Colmar, France, as is the tunnel excavator R 924 Compact, which Liebherr has developed specifically for tunnel applications. This latter model has an operating weight of 33 to 34.5 tonnes. five-star German manufacturer Wacker Neuson has announced five new models with bucket capacities from 0.45 to 1.1 m³ and an operating weight of between 3.4 and 7 tons. With these five new models – WL32, WL38, WL52, WL60 and WL70 – Wacker Neuson is now offering eleven articulated wheeled loaders for various application areas. Dieter Freisler, regional president Europe, said, “With the new wheeled loaders, we cover the entire range from compact models up to powerful machines for challenging work. In addition, cabin comfort and ergonomics are emphasised with all wheeled > 38 internationalconstruction january-february 2016 ICON 01-02 2016 Compact Equipment.indd 38 28/01/2016 15:35:55 Visit us at Hall A4, Booth 137B You can rely on our compact engines to improve machine efficiency and fuel consumption Want to learn more about the productivity benefits Perkins engines deliver? www.perkins.com/industrial Untitled-1 1 28/01/2016 09:31:05 Untitled-1 1 28/01/2016 09:32:33 COMPACT EQUIPMENT Mighty small Caterpillar’s new 918M compact wheeled loader loaders so that fatigue-free working is possible.” The smallest of the newly introduced wheeled loaders is the WL32, with an operating weight of 3,400 kg. Despite its compact dimensions, it is a powerful machine with a hydraulic performance of up to 100 litres. The dimensions allow for a high level of manoeuvrability and a low clearance height. The ability to connect a variety of attachments makes the wheeled loader of interest for various industries and applications. The WL38 has 4,200 kg of operating weight, and the company also offers support for gardening and landscaping. The high tipping loads and the easy handling offer many advantages for civil engineering applications. The combination of P and Z-kinematics is also time-tested and proven here and provides for a safe parallel guidance. Three powerful engine versions are available, which meet the exhaust standards of IIIB. The comfortable cabin has a newly designed display and provides a quick and improved overview of all parameters, while the centrally placed switch panels provide a clear and simple operation, which makes work easier for the operator. range of attachments additionally offers an enormous variety of capabilities, it said. The new Mecalac AX series boasts robustness, low running costs, ease of operation and simplified maintenance. All the loaders are equipped with the latest stage IIIB Deutz turbo diesel engines. The articulated AX 700 with a bucket volume of 0.7 to 1.2 m³ is an efficient machine for every rental fleet. With a height of 2.47 m and a bucket width of 1.60 m, the AX 700 is ideal for confined construction sites. A highlight of the machine is the temperature-dependent hydraulic fan control. It ensures the lowest noise emission and minimal fuel consumption, said the company. Confined spaces French manufacturer Mecalac now offers 13 models of wheeled loaders in the compact range with a bucket capacity of 0.5 to 3.0 m³. Its features include the four-wheel steered Mecalac swing loaders. They are the world’s only swing loaders without a decrease of tipping load when swivelling the boom, claims the company. With a working range of up to 180°, they are ideally suited for process-oriented work in confined spaces. Another great advantage is their versatility. They can be used as a wheeled loader, off-road forklift, an excavator, or for lifting operations in confined spaces. A wide > Doosan’s DX19 has an operating weight of 1,894 kg Caterpillar has added many new products to its compact equipment range > january-february 2016 internationalconstruction 41 ICON 01-02 2016 Compact Equipment.indd 41 28/01/2016 15:36:15 COMPACT EQUIPMENT Mighty small 250,000 units per year Off-Highway Research provide the latest global market update n the region of 250,000 units of compact construction equipment are sold around the world each year, with a total value of US$ 12 billion, according to specialist market research and forecasting company Off-Highway Research. As these machines replace manual workers in many cases, the biggest markets for compact equipment are developed regions such as Europe, Japan and North America, where labour is more expensive and often less abundant than in emerging countries. As a result, some 70% of global compact equipment sales, with a Europe, Japan and North America value of US$ 8 billion are to these parts of among biggest markets in the world the world. for compact equipment Mini excavators are by far the most popular type of compact machine around the world, with sales of 168,063 units in 2014, representing about 70% of the compact equipment sector in both volume and value terms. The biggest market for these machines is Europe, where one in three pieces of construction equipment sold is a mini excavator. However, the manufacturers which dominate the sector are Japanese companies like Hitachi, Komatsu, Kubota Takeuchi and Yanmar, reflecting the roots of this type of machine. The appeal of other types of compact equipment is more selective. For example, some 75% of the global skid-steer loader market is in North America, and it is US-based manufacturers like Bobcat, Case (CNH Industrial), Caterpillar, Gehl (Manitou), John Deere and New Holland (CNH Industrial) which dominate. Meanwhile, compact wheeled loaders, which is to say machines with engines of about 60 kW or less and 1 m3 buckets enjoy greater popularity in Japan and Europe, particularly Germany. The leading manufacturers in this sector are split between European specialists Japanese long liners, and other global players working out of their European factories. For more information, visit www.offhighway.co.uk I Bobcat’s 49 horsepower S450 has a 20% increase in auxiliary hydraulic pressure Solutions Among the new mini excavators to hit the market over the last 12 months is Caterpillar’s 307E2. This machine expands the mini hydraulic excavator machine range to include an additional solution for the seven to eight tonne weight class. The 37.7 kW Cat C2.4 turbo engine, which complies with US Tier 4 Final regulations and EU Stage IIIB regulations, and the High Definition Hydraulic System, which is load sensing and flow sharing, allows the machine to offer superior performance and overall operational effectiveness. The 307E2 offers maximum stability, reach, and lift capacity with its standard tail swing and fixed boom design. The cab delivers superior comfort with an air suspension seat, retractable seat belt, and compass monitor with colour display. The compass monitor allows the operator to quickly enable and modify machine features such as adjustable auxiliary flow for enhanced work tool control, hydraulic quick coupler selection to change work tool attachments at the touch of a button, auto engine idle for improved fuel efficiency, and security system features to protect equipment on the job site. Additionally the 100% pilot controls assist overall machine control with modulation, while eliminating the need for linkage and cable maintenance, thus lowering owning and operating costs and resulting in less downtime. The company also launched its new 303E CR mini hydraulic excavator which is designed for the user looking for productive and reliable performance in a functional design, at a low cost per hour. With a maximum operating weight of 3,530 kg, a width of only 1.55 m across the blade, and a compact radius design that limits the tail swing to 127 mm, the 303E CR is ideal for working effectively > Bobcat’s new E32 mini excavator 42 internationalconstruction january-february 2016 ICON 01-02 2016 Compact Equipment.indd 42 28/01/2016 15:36:36 We provide reliable, fuel efficient power... ...so you can make more progress everyday FG Wilson rental generator sets range from 20 - 1250 kVA. Fuel efficient, easy to operate and robust, they will meet the rigorous requirements of your temporary power needs. Our galvanised, sound attenuated enclosures ensure excellent noise reduction for residential areas and are hard-wearing to withstand the www.FGWilson.com/Rental Untitled-1 1 LO TA ONE G N DARD harshest on-site conditions. BAL S Superior Product Quality Expert Local Support Global Product Availability 28/01/2016 09:33:22 INTERNATIONAL CONFERENCE ASIA 4th International Rental Conference (IRC) SAVE THE DATE 21 November 2016 (Day before Bauma China exhibition) Double Tree by Hilton, Shanghai, China SPEAKERS KEYNOTE SPEAKER Bill Whitehouse Chief Operating Officer – Kennards Group TOPIC: Rental management: building a market leading business Matt Fearon President – Terex AWP/Genie TOPIC: Growing China’s rental business: Important lessons from mature markets The future is rental Cyril Drouin Chief eCommerce Officer, Greater China – Saatchi & Saatchi TOPIC: Creating a B2B eCommerce business Desmond Soh Vice President - Asia – JLG Industries TOPIC: Rental trends in Asia; health and safety regulations in China The International Rental Conference (IRC) is the gathering place for China and Asia’s equipment rental community Gary McArdle Executive Vice President/Chief Operating Officer – Rouse Services TOPIC: Rental metrics: the key performance measures Fei Xiaodong Vice general Manager, Sales & Operations Director – Jiangsu Xugong Guanglian Machinery Rental Co. Ltd TOPIC: China’s state owned contractors: changing attitudes to rental Speaker to be confirmed Hertz Equipment Rental Co (HERC) TOPIC: Strategies for expanding the Chinese rental market Created and organised by Khun Tan Founder, Chief Executive – Guangzhou Liluo Mechanical Equipment Leasing Co Ltd TOPIC: Building a sustainable access rental business in China GOLD SPONSORS SPONSORSHIP OPPORTUNITIES (CHINA) EVENT PROGRAMME Cathy Yao, China office Tel: +86 10 6553 7678 [email protected] Murray Pollok Tel: +44 (0)1505 850 043 [email protected] SPONSORSHIP OPPORTUNITIES BOOKING INFORMATION David Stowe, UK office Tel: +44 (0)1892 786217 [email protected] Julia Bossie Tel: +44 (0)1892 786204 [email protected] IRC2016-Ad-Jan 2016.indd 1 Supported by Held the day before www.khl.com/irc 28/01/2016 09:39:33 COMPACT EQUIPMENT Mighty small JCB’s 3CX backhoe loader has top speed of 40 km/h and safely on width restricted job sites. The new model’s 17.5 kW Cat C1.3 engine is fuel efficient and combines with the load-sensing hydraulic system to provide smooth and precise operation, said Caterpillar. Increased productivity South Korean manufacturer Doosan Construction Equipment has launched the new DX19 1.9 tonne mini excavator. Providing a unique combination of high performance and compactness, the new DX19 model is designed to offer increased productivity and operator comfort in a large and easily accessed cab, as well as improved durability and serviceability. The optimised hydraulic system in the DX19 mini excavator makes the best possible use of the engine power available from the Kubota D722 diesel engine, providing an output of 9.9 kW. This results in fast cycle times, which are combined with smooth control of breakout forces, and a digging force over the bucket of 20.8 kN. Equipped with a cab, rubber tracks, long blade and bucket, the DX19 has an operating weight of 1,894 kg. With the long arm, the maximum digging depth of the DX19 is 2.56 m, the maximum dump height is 2.69 m and the maximum reach at ground level is 4.21 m. This working range aids performance and versatility in operating a wide range of attachments, while the overall smoothness of the hydraulic system is further enhanced by boom and arm cylinder cushioning. An optional certified ‘object handling package’, which consists of a safety valve for the boom and for the arm, a hooking device and an overload warning device is also available for the DX19. Comfort and performance The latest skid-steer loaders to hit the market include the S450 from US manufacturer Bobcat. This machine provides operators with improved comfort GREAT BANKRUPTCY CRANES and CONSTRUCTION EQUIPMENTS FOR SALE IN ITALY AUCTION auction in CURNO (BG) MARCH 2016 auction in MORTEGLIANO (UD) WINDING UP OF AN ITALIAN CRANE RENTAL COMPANY: • No. 86 SELF-ERECTING POTAIN CRANES • No. 55 POTAIN TOWER CRANES • No. 1 POTAIN TOPKIT K 5/50C CRANE • EARTHMOVING MACHINERY • CONSTRUCTION EQUIPMENT and much more CONDITIONS AND CATALOG AVAILABLE ON REQUEST Ph.: +39 030 72 50 26 – mail: [email protected] – skype: michelazoldan january-february 2016 internationalconstruction 45 ICON 01-02 2016 Compact Equipment.indd 45 28/01/2016 15:37:04 COMPACT EQUIPMENT Mighty small and performance – and is just 1.52 m wide, for working in tight jobsites. The S450 has a 20% increase in auxiliary hydraulic pressures from its predecessor and features a non-diesel particulate filter (non-DPF) engine solution. The radius-lift-path loader has a low operating weight and optimal reach for loading or unloading palletised materials from trucks or backfilling around foundations. The S450 has an optional two-speed drive, with a top speed of 6.5 mph in low range and 9.2 mph in high range, when equipped with optional Selectable Joystick Controls (SJC). In addition, the hydraulic systems on the M-Series loaders, including the S450, are designed for higher pressure – at 3,300 psi – which provides a 22% increase in attachment performance. Bobcat has also launched the S595 skid-steer loader. The 500-frame-size loader boasts a 908 kg-rated operating capacity (ROC), making it ideal for those who need to lift and carry more material, without moving up to a larger machine size. The vertical-lift-path S595 skid-steer loader offers customers a variety of M-Series loader features, including exceptional operator comfort, machine performance and enhanced visibility. Caterpillar’s new 272D2 skid-steer loader builds on the engineering advances in performance, operator comfort, visibility, control, and machine security of its D Series Liebherr’s wheeled loaders have bucket sizes between 0.9 and 1.5 m³ predecessors. Now standard on all six D2 Series models is the exclusive Caterpillar heads-up advanced display, and all feature a new engine-compartment sealing system for enhanced airflow debris control. All models have a vertical-lift loader linkage and use a Cat C3.8 engine meeting US EPA Tier 4 Final and EU Stage IV emissions standards. Finally, JCB’s 3CX Compact backhoe loader has recently been launched, which is powered by a 55kW low emission Tier 4 Final/Stage IIIB JCB Diesel Kohler engine. The 3CX Compact produces a top speed of 40 km/h and has compact dimensions of 1.9 m wide by 2.74 m high. These features ensure the 3CX Compact is useful for road maintenance, urban construction and utility work. iC Connecting Global Competence The world speaks bauma. Join the conversation! Experience trends, innovations and enthusiasm up close at the industry’s most important international exhibition. This is where the world comes together, so you can’t miss out! Prepare your business success and look forward to: 3,400 exhibitors More than half a million visitors 605,000 m² of space Get your ticket now: www.bauma.de/tickets/en 31st Edition of the World’s Leading Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment 46 internationalconstruction january-february www.bauma.de bauma2016 Official ICON 01-02 2016 Compact Equipment.indd 46 April 11–17, Munich 28/01/2016 15:37:35 The new Rockster R1100S! POWERFUL - FLEXIBLE - COMPACT  Transport height: only 3,2m  Dimensions: Length=13,3m, Width=2,75m  Weight = 34,9t  New central control unit for automatic start up, continuous regulation of feeder, etc.  New radio remote control: with display, including adjustment of engine, rotor and vibro speed  Fully hydraulic gap adjustment  NEW screening box RS114: increased length (3100mm), hydraulic cylinders to lower box for cleaning  NEW double functional return belt  Available with TIER3 and TIER4f engine Rockster Recycler AUSTRIA Tel.: +43 7223 81000 [email protected] www.rockster.at REGISTER FOR THE FREE DIGITAL ISSUE Pile Driving Analyzer ® PDA model 8G - Trust, Period. l intnesrntrautciiotnioan in co 55 No 1 ARY 2016 Vol JANUARY-FEBRU CAPWAP® www.khl.com Grroup KHL Group A KHL n on io publication RTT NAL REPOR NAL ION EGIO REGIO R i a ina hin C2h Ch The best system for Dynamic Load Testing of any type of deep foundation got sleeker, faster and more powerful. 2 P22 P P2 W EW PREVIE SHOW SHOW PREVI On site or remotely with a ma um um au a Ba B 9 2 P29 P P2 R CTOR SECTO SEC n ng illin D9rilli Dr 49 P49 P Foundation capacity by Case Method or iCAP® in real time. Compact pment equiip R SECTO SECTOR 37 P37 P 28/01/2016 w/ CAPWAP® for reliable total capacity, resistance distribution and simulated static load test. 15:15:05 1 Delivered D lii d instantly i t tl anywhere anyw in the world ■ Interactive ■ Searchable ■ Archiveable For more details and to register for your own, FREE, digital copies go to: www.khl.com/subscriptions/icon FIRST FOR GLOBAL CONSTRUCTION INFORMATION Untitled-1 1 www.khl.com [email protected] +1 216-831-6131 www.pile.com/pda 29/01/2016 11:02:16 Untitled-1 1 28/01/2016 09:44:43 DRILLING Service below the surface The geoSURE system provides views from inside the rock. Sandvik’s onboard system sends real-time information and analysis directly from the drill rig. Service below the surface As a vital element of quarry, mine and construction projects, modern drilling must be fast, precise and efficient. Mike Hayes picks up the thread. onstruction drilling can be a thankless task – lacking glamour and often shouldering the blame when projects are delayed. Yet, certainly in mature markets, the construction drilling industry has an enviable record of being safe, precise and at the cutting edge, so to speak, of technology. It needs to be, as timescales and efficiency are vital elements in the financial viability of projects. One area in which the appliance of technology has become particularly important is tunnelling, where accurate analysis of rock mass is crucial for the safe and timely progress of jobs. Traditionally, geological mapping has been based on visual sighting combined with measurements from laboratories, which can be a time-consuming process. Now, however, companies are turning to advanced technology to give them the required geological information quickly and easily. Sandvik recently unveiled a rigintegrated online rock mass analysis and visualisation system called geoSURE. The system works with the iSURE tunnelling project management software to provide C Himal Hydro in Nepal acquired a Sandvik Commando DC125R surface drill rig to improve its operations. rock mass information and a view inside the drilled rock. The system effectively makes the drill rig the analyser, as the information is provided in real time on the rig, with no need for any third-party devices, sensors or data transfer. The geoSURE software is able to analyse rock fracture and strength, while the Isure SYSTEM provides an overall view of the relevant tunnel section. Tools such as this can have numerous advantages, for speeding up both the tunnelling process and the increasingly time consuming reporting requirements of the industry. Currently, another piece of Sandvik technology is being used by Himal Hydro, a company that has successfully undertaken a number of hydropower projects in Nepal, including the 60 mW Khimti plant – one of the few hydropower construction projects in the world to be completed ahead of schedule. Himal recently acquired a Sandvik Commando DC125R surface drill rig to further improve its operations. The quality of the product was obviously important to Himal, but so too was the expertise that comes with it. The Sandvik surface top hammer drill rig boasts leading penetration rates and is renowned for its reliability, even in challenging conditions experienced in countries such as Nepal. Other benefits of the Sandvik machine for Himal Hydro – which is jointly owned by the government of Nepal, United Mission to Nepal and Nepal Jalabidyut Prabardhan Tatha Bikas – include its fuel economy and low operating costs of the self-propelled drill rig. Elementary decisions Where rock sensitivity is an issue, or the danger of destabilising the surrounding area exists, air-powered drilling can be problematic. Such is the case with the expansion of the Metro system in Copenhagen. Here, the City Circle Ring will comprise 17 new stations beneath the city centre. Plans were made for hydro mills to dig > january-february 2016 internationalconstruction 49 ICON 01-02 2016 Drilling.indd 49 28/01/2016 15:43:01 DRILLING The cutting edge Casing advancing with Wassara inside the Corvette Museum’s skydome building in Kentucky, US. (Photo courtesy of Hayward Baker Inc.) down to the bedrock, but a flint layer first needed to be identified and weakened. Wassara’s water-powered DTH hammer proved to be the answer. During drilling, the water loses pressure as it leaves the hammer, keeping the flush velocity down, lowering the risk of pressurising the formation, while still having enough force to bring cuttings to the surface. Maintaining the integrity of the formation around the drilling area was of vital importance, as this would ensure there would be no damage to the surrounding infrastructure in the heart of the city. Another sensitive operation carried out by Wassara followed an incident in Kentucky in the US, when, towards the end of 2014, a sinkhole opened beneath the National Corvette Museum, causing a large section of the floor to collapse – with at least eight one-of-a-kind automobiles falling into the chasm. Inspection of the sinkhole showed a distinctive karst formation of soluble rocks such as limestone, dolomite and gypsum, not uncommon in that part of the US. On this occasion, after filling the hole (first rescuing the cars, of course), Wassara’s DTH hammers were deployed inside the museum’s iconic skydome building. The remit was to drill 46 holes to a depth of between 24 and 75 m, into which micropiles were installed. Again, the water-powered nature of the drill was preferred, to ensure the integrity of the surrounding skydome, as well as to limit the possibility of further instability in the rock formation. Wassara’s water-powered DTH hammer working on site at the Metro system in Copenhagen. Quality under pressure Atlas Copco’s Flexiroc T15 R rig is built to cope with rough terrain and locations with limited access. In Ontario, Canada, the Detour Gold Corporation has its flagship god mining operation, and Atlas Copco has been the company’s drilling partner for over 21 years. Recently, nine rigs have been delivered to the site and put to work to rapidly expand the current pit, which is 700 m wide by 2.5 km long and 100 m deep. Mine manager, Craig Rintoul said of the PV 271 and Smart ROC D65 rigs currently at work there, “We’re currently getting 80 to 85% use on all drills. We have to maintain a minimum of 70 to 85% to meet our goals.” Some two-and-half years previously, the first of the drills had arrived on site, and had already logged 18,000 hours of uninterrupted service. Of the drill’s reliability, Atlas Copco’s support specialist Derek Walsh said, “18,000 hours and no issues? It wasn’t babied, and it needed no rolling, no injectors. That’s really something.” Another piece of equipment from Atlas Copco has recently been updated and upgraded: the FlexiROC T15 R drill rig. New > A drill rig moves the Wassara DTH hammer into position at the Copenhagen Metro expansion site. 50 internationalconstruction january-february 2016 ICON 01-02 2016 Drilling.indd 50 28/01/2016 15:43:14 HALL C2, STAND 436 COME AND MEET US! Padley & Venables Rock Drilling Tools – EXCELLENCE SINCE 1911 – ROCK DRILLING DEMOLITION [email protected] CONTRACTORS’ TEL: +44 (0) 1246 299 100 WWW.PADLEY-VENABLES.COM Untitled-1 1 28/01/2016 09:45:25 THOMAS TURTON A LEADING MANUFACTURER OF TOOLS FOR MORE THAN ONE HUNDRED YEARS CONTRACTORS’ TOOLS DEMOLITION TOOLS WWW.THOMAS-TURTON.CO.UK TEL:+44 (0) 1246 290 000 Drill More with RockMore The all NEW 4” Hammer Patented design features High performance drilling up to 35 bar / 500 PSI Air consumption figures amongst the best in its class The first of a new generation of DTH hammers. 3.5” and 5” models launching in 2016! Bits Rods Couplings Shanks DTH Mining Construction Quarrying Tunneling Water-well VISIT ON ST AND US C2 10 7 ® R o c k M o r e® International Rock Drilling Tools Wilsonville, Oregon USA Tel +1 (503) 682-1001 [email protected] Judenburg, Austria Tel +43 3572-86300 [email protected] www.rockmore-intl.com Untitled-1 1 www.bulroc.com Turnoaks Business Park, Burley Close, Chesterfield, Derbyshire, S40 2UB, UK T: +44 (0)1246 544700 E: [email protected] 28/01/2016 10:00:43 DRILLING Service below the surface A curiously robotic revolution Has NASA’s Martian rover shown us the future of drilling? n drilling, time is just one of many important factors; another is the elimination of human error. The fact that eliminating human error could also mean reducing costs and the risk of accidents, is a bonus. A number of companies are currently undertaking research and development into automated drilling systems. The notion of intelligent drill bits, which can instantly respond to different rock formations, temperatures and pressures, would have been science fiction not long ago, but is now believed to be the logical next step for the industry. In fact, companies have for some time been looking at the activities of NASA’s Mars rover, Curiosity, and considering the prospect of emulating many of its functions – with fully automated drill rigs using satellite navigation to make their way to construction sites, then carry out complex drilling operations, before moving on to the next job. Norwegian company Robotic Drilling Systems has actually worked in collaboration with NASA on the design of an autonomous robotic drill floor. Ronald Valen, a control system manager at the company, clarified the practical application of the technology, saying, “The first reason to have the autonomous function is to prevent the big stops, the critical stops.” Canadian integrated energy company Suncor is one of those believed to be developing robotic drilling systems. The company’s media relations manager, Sneh Seetal, said, “If we proceed with the technology, implementation would take place over a number of years.” I Rockmore’s new XT thread design promises major overall cost savings in the drilling cycle. features include a 2.8 Cummins Tier 4 Final engine, a 2.4 Hz Bluetooth radio remote control unit, an extended feed of 3.66 m and a sturdy foot attachment. The T15 R has a boom reach of 4,500 mm and holes can be drilled in almost any position, thanks to the machine’s 360 degree roll-over feed system. Productivity is improved and drilling is made smoother via the control system which automatically adjusts impact and feed speed in proportion to rotation torque. E-Z Drill rigs drilled nearly 1,000 holes per day at the shipping terminal at the Port of Rotterdam. The rig can be used in rough terrain and locations with limited access and has an advanced hydraulic rock drill from the COP 1020 range. Rockmore International, experts in mining and tunnelling drills, spent years perfecting a new thread design for its soon-tobe-launched Vector Rod system for extension drill tools used in percussive drilling applications. Called XT, the new thread design incorporates guided cylindrical contact zones between the male and female thread joints. These guided surface features are located in the nose and rear of the thread connections. The company promises a number of performance and reliability benefits with the new system, which it says will lead to major overall cost savings in the drilling cycle. Rockmore’s executive vice president, Pejman Eghdami, said, “We specifically P targeted to increase thread service life t while enhancing drilling performance in w extension drilling applications.” e > The Maasvlakte 2 expansion at the Port of Rotterdam, set to handle more than 2.3 million containers a year. > january-february 2016 internationalconstruction 53 ICON 01-02 2016 Drilling.indd 53 28/01/2016 15:43:53 DRILLING Service below the surface Trevi at work in Manila in the Philippines, installing foundations on the Skyway overpass. While championing the breakthrough elements of Rockmore’s new thread design, Mr Eghdami said it is equally important that the new XT design is “… fully reverse compatible with industry standard “T” style threads, enabling the Vector Rod System to be truly remarkable, yet a practical choice for premium drilling tools.” The need for speed On many projects, success is measured equally by the speed and accuracy of drilling. When the Port of Rotterdam, Europe’s largest port identified an urgent need for expansion, BEMO Betonboor & Zaagtehniek was called in to drill 180,000 holes for the new harbour’s requisite infrastructure. With such a huge amount of drilling required in a short timescale, the company – which traditionally used handheld rock drills – opted for three-gang and five-gang slab riders from E-Z Drill. The company wanted to make use of features such as auto alignment systems and the machines’ quick-release bit guides, making replacing worn drill bits and guide bushings simple and fast. Working under the port authorities environmental requirements, another important aspect of the machines was their concrete dust collection system, with a dust boot that gathers dust directly from the drilled holes. The system was effective, both in clearing the air and minimising exposure to silica dust that is known to cause breathing problems. The appliance of drilling science may be forging ahead in the first world, but logistical issues can still cause headaches wherever in the world projects are taking place. In Manila in the Philippines, Skyway, a huge highway overpass project, is underway, with a total length of 14 km. The complications with the project include the fact that it cuts Liebherr’s LB36, one of the rigs installing foundations for a roadbridge on the Bach Dang River in Vietnam. through the centre of Manila, one of the world’s busiest cities. The highway will also have to cross the Pasig River, using a viaduct being built specifically for Skyway. Trevi Foundations Philippines won the contract to undertake all of the foundation work for the two companies jointly constructing the highway, and began work on the installation of over 2,000 piles, with diameters ranging from 1.2 m to 3.5 m. The piles would have to withstand the pressure of enormous overhead structures – made difficult both by the heterogeneous nature of the ground and the fact that the piles would need to span the river. It was clear from the outset that meticulous planning would be key to the success of the project – and so it proved, when the presence of a high-voltage line that might disrupt the piledriving process was noted. To avoid what could have been lengthy delays waiting for the line to be relocated, Trevi immediately began reconfiguring two rigs to work within height restrictions of 12 and 15 m. Currently, Trevi has six groups working on the project and has already successfully executed around a quarter of all the piles on the highway project. When Dua Fat Foundation Join Stock Company won the contract to install the foundations for a roadbridge on the Bach Dang River in Vietnam, it chose four Liebherr LB rotary drilling rigs to bore the piles. With a total construction schedule of 32 months, speed of installation, setup and operation was of the highest importance, and the Liebherr rigs, with their comparatively compact design, were selected for their quick and easy transportation to the site and operation. One of the rigs ordered was the new LB 36, the second largest rig in the Liebherr range and optimised for all common drilling applications, such as Kelly drilling, continuous flight auger drilling, double rotary drilling and drilling with partial or full displacement tools. Each rig was tasked with completing at least one bored pile a day, with depths of between 60 and 64 m, and each being 1.5 m in diameter. iC 54 internationalconstruction january-february 2016 ICON 01-02 2016 Drilling.indd 54 28/01/2016 15:44:35 CONFERENCE AWARDS The eighth year of the major international event celebrating excellence and innovation within the demolition industry. In 2016 the event will be held in Miami, USA. NETWORKING DEMOLITION S U M M I T 2 O1 6 MARRIOTT BISCAYNE BAY HOTEL, MIAMI, USA. SAVE THE DATE Friday October 14 World Demolition Summit Conference & Awards Saturday October 15 NDA Board Meeting www.demolitionsummit.com HEADLINE SPONSOR SUPPORTING ASSOCIATIONS IN COOPERATION WITH CREATED AND ORGANISED BY DEMOLITION & RECYCLING INTERNATIONAL WDS - full page advert - save the date.indd 1 29/01/2016 09:20:23 JANUARY-FEBRUARY 2015 Vol 54 No 1 international internatio in construction st cote rnauticotinoanl nstructinoal inte tr s n n co MARCH 2015 2 Vol 54 No DECEMBE R 2014 Vol 53 No 10 A KHL Group publication www.khl.com EQUIPMENT A KHL Group Compact equipment Com com www.khl. publicatio n P37 EQUIPMENT Crush shing g& screening g P27 EXHIBITION PREVIEW A KHL Group n publicatio EXHIBITION P35 SHOW GUIDE EXHIBITION WoC previe ieew P27 www.khl. com EQUIPMENT Bauma Chi na review P51 EQUIPMENT P52 Component s SECTOR Breakers P59 P43 EQUIPMENT Haulers P49 SECTOR Drilling Drillin D ng SECTOR Concre rette P46 Cranes SECTOR P27 ICON 01-02 2015 Front Cover.indd 1 30/01/2015 09:07:13 ICON 12 03/03/2015 09:14:21 2014 Front Cover.indd 1 P69 08/12/2014 ICON 03 2015 Front Cover.indd 1 12:12:39 FREE MAGAZINE SUBSCRIPTION 1 CHOOSE YOUR MAGAZINES AND/OR E-NEWSLETTERS: MAGAZINES International Construction Access International Access, Lift & Handlers American Cranes & Transport Construction Europe Construction Latin America Demolition & Recycling International International Construction Turkey International Cranes and Specialized Transport International Rental News Cranes & Project Transport Turkey Yikim E-NEWSLETTERS World Construction Week e-newsletter Access International e-newsletter Access, Lift & Handlers e-newsletter Construction Latin America e-newsletter Demolition & Recycling International e-newsletter International Rental News e-newsletter International Construction China e-newsletter World Crane Week e-newsletter KHL Crane Market e-newsletter 3 YOUR DETAILS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Name: Job title: Company: Address: Country: County/State: Post code/Zip code: ■ ■ ■ ■ ■ ■ ■ ■ ■ e-mail: 4 Do you purchase or influence the purchase of construction products or services? ■ Yes ■ No 5 FORMAT OF MAGAZINE PRINT_■ 2 ORGANISATION TYPE Contractor / Sub-Contractor Consulting Engineer/Architect/Quantity Surveying Mining/Quarrying/Aggregate Production Petroleum Producer Authority / Government - National/Local Airports / Ports / Docks / Offshore Public/Private Utilities Manufacturer Distributor / Agent / Equipment Sales Construction Department of Large Industrial / Commercial Concern Association/Education/Establishment/Research Equipment Rental Finance / Regulator ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ FIRST FOR GLOBAL CONSTRUCTION INFORMATION ICON Free Subs 2015.indd 1 DIGITAL_■ BOTH_■ 6 SIGN AND DATE: 2/16 Signature: Date: POST TO: KHL Group, Circulation, Southfields, Southview Road, Wadhurst, East Sussex, TN5 6TP, UK FAX BACK: +44 (0)1892 786260 REGISTER ONLINE: www.khl.com/subscriptions/icon E-MAIL: [email protected] www.khl.com 28/01/2016 15:54:33 EQUIPMENT Doosan ■ Atlas Copco Doosan adds crawler excavator to LC-5 range The Doosan DX140LC-5 14 tonne crawler excavator boasts improvement on the LC-3 range. oosan Construction Equipment has added to its new LC-5 range of machines, which meet the latest Stage IV emission regulations, with the DX140LC-5 14 tonne crawler excavator. The DX140LC-5 model acts as an improved version of its LC-3 Stage IIIB model. The crawler excavator has a 5% increase in engine power and 4% greater torque. In addition, traction has been boosted with an increase in drawbar pull of around 18% and front lifting capacity has been increased on average by 10% and side capacities are 12.5% higher. Together with these improvements, the fuel consumption in the DX140LC-5 has been lowered by 3% compared to the previous generation machine. The DX140LC-5 is fitted with D The DX140LC-5 has 5% increase in engine power and 4% greater torque a Perkins 1204F engine, which combines reduced fuel consumption with the power and torque of larger engines with a smaller displacement. The new Perkins 1204F engine provides an output of 84.5kW at 2000rpm and uses an electronically controlled, high-pressure commonrail fuel system – which reduces particulate matter emissions from the cylinder – and a waste-gate turbocharger. Increased comfort and controllability The cab offers a new system that enables attachments to be operated from either the joystick or a twoway pedal. The controls for the auxiliary lines on the joysticks have been repositioned, with the rotation and shear rollers positioned for left/right movement. The joysticks have also been shortened to reduce Atlas Copco listens to its customers Atlas Copco has launched its new FlexiROC T20 R drill rig after requests from customers for improved performance. A new rig control system that consists of electrical and hydraulic components as well as the radio remote control (RRC) has been installed. Other upgrades includes a new cylinder feed in three different lengths, new reinforced drill steel support, new hose routing with three bulk-heads, new front facing feed holder and better service access. The FlexiROC T20 R has now been equipped with the COP 1435 rock drill. It has almost 30% higher impact energy and 30% higher rotation torque than the previous model. With an impact power of 14kW together with smooth cylinder feed action, the drilling performance has increased by up to 40%. The FlexiROC T20 R has almost 30% higher impact energy and 30% higher rotation torque than its predecessor the effort required to operate them and an additional pedal for straight travel has now been installed on the left of the main travel pedals, aiding straight travel over longer distances. New gauges, functions and menus have been added to the control panel, including a new AdBlue gauge. A new quick menu bar has been installed which allows key functions to be accessed quickly, without having to go through all the menus and validations. A side-view camera is available as an option and the control panel allows the views from both the rear and side view cameras to be combined on the same screen, simply by pressing a button on the control panel. For more safety when using the cameras, a menu bar now stays open so that the operator can keep an eye out for warning symbols and the levels of key gauges. The auto-idling rpm on the DX140LC-5 automatically increases from 800 rpm to 1100 rpm when the temperature goes below 10 °C, boosting the efficiency of the heating inside the cab. iC january-february 2016 internationalconstruction 57 ICON 01-02 2016 Equipment.indd 57 28/01/2016 15:45:20 EQUIPMENT Volvo ■ Screen Machine Industries New models for Volvo CE Volvo CE’s New B-Series soil compactors keep up with the latest trends in performance. olvo Construction Equipment has launched its new B-Series SD75B, SD115B and SD135B soil compactors. The machines comply with Stage IV/ Tier 4 Final engine emissions regulations. Volvo’s advanced drum control system allows the operator to adjust the frequency and amplitude, compensating for changing soil types and conditions. Two frequency settings come as V Volvo CE’s new B-Series soil compactors come with two frequency settings as standard standard but five can be included as an option. High or low amplitude can Simultaneous rewards Screen Machine Industries LLC has launched its new Spyder 514TS screening plant. This unit is a patented, track-mounted reverse style screening plant designed for secondary screening of rock, sand & gravel, and other materials. Equipped with a 5 by 14-inch double-deck screen with smooth start technology, this heavy-duty machine is capable of producing up to three different finished sized products simultaneously. The 514TS can be used as a stand-alone screen, or in conjunction with a crusher and offers the ability to close circuit the oversized material back into the crusher for further reduction without the need for additional conveyors. Spyder 514TS screening plant is equipped with a 5 by 14-inch double-deck screen with smooth start technology be selected to adjust the drum’s dynamic force based on the job and material depth. Meanwhile, the centrifugal force and auto-vibration feature also improve performance, ease of operation and productivity. The traction system provides climbing and traction capabilities in difficult applications, such as steep inclines or slippery surfaces, preventing wheel or drum spin for efficient gradeability, performance and productivity. The B-Series compactors can be set up in three different configurations and are available with a smooth or padfoot drum. The compactor can also be easily converted from a smooth drum by clamping on a padfoot shell. ECO mode ECO mode now comes as standard on the SD75B, SD115B and SD135B models and can achieve up to a 40% reduction in fuel consumption by matching engine speed to operation mode. The new design also provides quicker rampup speeds at lower pressure also for increased fuel efficiency. The passive regeneration automatically cleans the filters during normal operation without any input from the operator or negatively impacting on performance. Lower fan speeds reduce noise, resulting in greater operator comfort and a lower cost. The cabs have floor to ceiling glass for an improved view and clear sightlines down to the forward drum, while the adjustable seat rotates and slides for extra comfort. The new colour operator display, showing operational information and key diagnostics, is easily visible at all times even in bright sunlight. A tilting cab comes as standard on the B-Series models to provide easy service access to all hydraulic components. The engine hood lifts electrically for ground level access to the engine compartment. Maintenance and inspections can be conducted easily, increasing productivity and reliability. iC 58 internationalconstruction january-february 2016 ICON 01-02 2016 Equipment.indd 58 28/01/2016 15:45:30 The Construction Equipment Industry in China ■ Reports and database subscriptions ■ Agricultural, construction, mining & quarrying sectors ■ Five-year forecasts ■ Market Reports, Equipment Analyses & Company Profiles ■ Comprehensive sales & production databases going back to 1998 ■ Researched & written by experts FOR MORE INFORMATION, SAMPLE REPORTS AND BUYING OPTIONS, VISIT: Off-Highway Research Southfields, Southview Road, Wadhurst, East Sussex, TN5 6TP, United Kingdom T: +44 (0)1892 786 270 F: +44 (0)1892 784 086 E: [email protected] www.oighway.co.uk OHR Services Untitled-1 1 Corporate Product.indd 1 www.offhighway.co.uk Off-Highway Research is a management consultancy specialising in the research and analysis of international construction, and agricultural equipment markets. 15/01/2016 09:46:25 10:17:38 28/01/2016 Introducing the GP3, the World’s Most Intelligent Paver Stand 1210/3, Open Air Area FS April 11-17, 2016 The new GOMACO GP3 is designed for paving up to 9.14 meters (30 ft) wide and will be on display at Bauma 2016. It features Smart Frame Widening, Smart Leg Positioning, and Smart Steering. You will never need a tape measure again because G+® knows the width of its dual telescoping frame. The operator can take this paver to the transport mode in minutes without assistance. GP3 features G+ Quiet Technology for low-noise comfort and more all-new time-saving features. Come see the latest in technology for right-side and left-side pour curb and gutter and safety barrier, grooved slabs, and other concrete paving applications. You’re invited to visit our booth and discuss your projects for 2016. CONCRETE STREETS AND HIGHWAYS ❘ AIRPORT RUNWAYS ❘ CURB AND GUTTER ❘ SIDEWALKS RECREATIONAL TRAILS ❘ SAFETY BARRIER ❘ BRIDGE PARAPET ❘ BRIDGE DECKS ❘ IRRIGATION CANALS GOMACO CORPORATION IN IDA GROVE, IOWA, USA ❘ 712-364-3347 [email protected] ❘ www.gomaco.com Untitled-1 1 28/01/2016 09:48:02