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AUTOMOTIVE AUTOMOTIVE NEWS
The Cars You Won't See in the U.S.
Differences in emissions and safety standards, as well as consumer preferences, have kept some fuel-efficient superminis off U.S. shores. Automobiles and apple pie: about as American as you can get, right? Well, no. The U.S. gave up the global car crown years ago. While Detroit cranked out gas-guzzling behemoths, carmakers elsewhere worked toward building smaller, more fuel-efficient models. When gas prices hit dizzying new heights in September of 2005, American consumers realized they could admire all sorts of vehicles they would never be able to buy. "Why can't we get that car here?" has become a common refrain.
U.S. auto consumers may have only themselves to blame. Critics have been quick to decry the glut and poor planning of the Big Three automakers, but manufacturers have pointed the finger right back at consumers, charging that the huge vehicles they made were simply a response to demand. A Sept. 9, 2009, survey of 32,000 new car and light-truck buyers in the U.S. conducted by AutoPacific, a Tustin, (Calif.)research firm, concluded that American consumers still want cars that are "bigger, faster, and with more bells and whistles." Why then, the automakers figured, should they bother with cars such as the tiny Ford Ka (F), now available in the U.K., Latin America, and Mexico but missing from U.S. lots?
Wary of Diesel. Tough fuel economy and emissions standards in the U.S. also make it hard to import cars designed for less stringent markets. Fuel-efficient diesel vehicles designed for Europe used to spit out lots of greenhouse gases. In the U.S., states such as California cracked down on emissions because of smog problems, and so diesel was a nonstarter. Despite improvements in diesel technology, it's still not a sought-after fuel supply, so Americans might not find the Mini Cooper D (BMWG.F) for sale near them any time soon. "Americans can't figure out that diesel is more efficient, cleaner, and has better performance," says Karl Brauer, editor-in-chief of Edmunds.com, a Web site that tracks the auto industry.
Safety standards are another reason European and Asian superminis don't make it to U.S. shores. Vehicles in America have to reach a certain weight. The bare bones design of Tata's Nano (TTM) would not likely meet the restrictions necessary to be considered roadworthy in the U.S.
Then there's the bottom line. It's neither practical nor profitable for companies to make all vehicles for all countries. Much of the time, it's cheaper to make cars in countries such as China or India, where labor costs are low. Having to ship vehicles across oceans adds costs too high to pass on to U.S. consumers. For now, consumers will have to content themselves with looking but not driving.
ENERGY ENERGY
Germany Will Halt 25% of Nuclear Capacity for Safety Review.
Germany will halt nuclear reactors accounting for 25 percent of its atomic energy capacity as part of a safety review after explosions at reactors in Japan.
The country will keep its seven oldest nuclear reactors offline as part of a nationwide safety review to run through June, Chancellor Angela Merkel told reporters in Berlin today. Two of the seven are currently offline, while the remainder totals 5.2 gigawatts of the 20.7 gigawatts installed over Germany’s 17 reactors.
Germany, which relies on reactors for 23 percent of its power, is the first European country to take such measures after explosions at Japan’s Fukushima plant sparked safety concerns. German electricity, a European benchmark, rose on the outlook for lower supply while European Union carbon dioxide permits gained as utilities may burn more fossil fuels to meet demand.
“A general re-think on nuclear power is on the cards,” UniCredit SpA analysts including Lueder Schumacher wrote in a note today. The Japanese incident has “country-specific aspects that are unlikely to apply to Europe, but the nuclear debate, especially in Germany, is not governed by reason.”
The federal government and premiers of the German states where nuclear-power stations are located have agreed that facilities “that began operation before the end of 1980 are being stopped for the duration of the moratorium,” Merkel said after a meeting in Berlin today.
The seven reactors are E.ON AG’s Isar 1 and Unterweser, RWE AG’s Biblis A and B, EnBW Energie Baden-Wuerttemberg AG’s Phlippsburg 1 and Neckarwestheim 1 as well as Brunsbuettel, which is co-owned by E.ON and Vattenfall AB. Biblis B is already offline for maintenance, while Brunsbuettel has been shut since June 2007 following a short circuit in a nearby power network.
E.ON has begun preparations to halt Isar-1, the Dusseldorf- based company said. EnBW said it will voluntarily shut down Neckarwestheim 1 on a temporary basis. RWE said it will halt Biblis A. The companies commented in separate e-mailed statements today.
CHEMICAL CHEMICAL
BASF to explore new investment in Brazil.
Feasibility study on world-scale production of acrylic acid, butyl acrylate and BASF is exploring opportunities for a new investment in Brazil. Projects under consideration include the production of acrylic acid, butyl acrylate and superabsorbent polymers (SAP). The company is conducting a feasibility study to evaluate the technical, commercial and economic viability of operating a world-scale complex in Brazil.
Decision on the plants to be built as well as on their capacities will be taken after the completion of the feasibility study, which is planned to be concluded in 2011. With this investment BASF is targeting at the growing South American market with special focus on Brazil.
“BASF is currently producing butylacrylate in Brazil, but at the moment there are no production plants for acrylic acid and superabsorbent polymers (SAP) in South America at all – all product is imported,” said Dr. Alfred Hackenberger, President of BASF for South America. “With these new investments we will be the first company to produce acrylic acid and SAP in South America, which will enable us to better serve our customers, further foster our position in these markets and open up additional opportunities for our businesses in South America,“ concludes Hackenberger.
To secure the competitiveness of the investment under consideration, BASF and Braskem S.A. have signed a Memorandum of Understanding (MoU). This MoU defines the long-term supply conditions for propylene, which is used as feedstock for the acrylic acid production, as well as the supply of utilities by Braskem to BASF.
AIR FOCUS AIR FOCUS
Airbus and EADS' Airbike is 'future of manufacturing'European Aerospace and Defence Group unveils bike made of nylon.
EADS, the European Aerospace and Defence Group, has unveiled the 'Airbike', a bicycle that uses a revolutionary new manufacturing process. The Airbike is made of nylon which is strong enough to replace steel or aluminium and requires no conventional maintenance or assembly. It is the world's first bike to use Additive Layer Manufacturing (ALM) technology where nylon is 'grown' from high-strength nylon powder.
Called the Airbike because Airbus was the first EADS company to use the technology, the growing process means that complete sections can be built as one piece; the wheels, bearings and axle are all incorporated and manufactured at the same time. It can also be built to rider specification so no adjustment is required.
ALM technology allows single products to be grown from a fine powder of metal (such as titanium, stainless steel or aluminium), nylon or carbon-reinforced plastics from a centre located next to Airbus' site at Filton. Similar to 3D printing, the bike is computer-aided designed to perfection and then constructed by using a powerful laser-sintering process adding successive, thin layers of chosen structural material until a solid fully-formed bike emerges.
Robin Southwell, Chief Executive of EADS UK said: “The Airbike is a fantastic example of British innovation at its very best. The team at EADS in Bristol includes world-class engineers who continue to push boundaries by working at the forefront of technology. I believe that ALM technology represents a paradigm shift.”
Compared to traditional, machined components, parts produced by ALM are up to 65 percent lighter but still as strong. Although the Airbike is only a demonstration, the technology could also be applied to aerospace, the automotive industry and engineering. Potentially, this technology could save airlines around $3500 worth of fuel over the lifespan of an aircraft as well as significantly lowering carbon emissions with every 1kg reduction in weight that ALM is capable of.
STEEL STEEL
Redcar Corus plant deal.
A deal to sell the Teesside Corus steel plant is ‘close’ Corus said.Corus UK Limited and Sahaviriya Steel Industries (SSI), Thailand’s largest steel producer, have today signed a memorandum of understanding to buy the Teesside Cast Products (TCP) from Corus.
The potential transaction is valued at $500 million.If successfully concluded, the deal is “expected to create a significant number of new jobs at the plant in addition to TCP’s existing workforce of over 700 and will provide a considerable boost to the local economy,” Corus said.
The assets covered by the MoU include the Redcar and South Bank coke ovens, TCP’s power generation facilities and sinter plant, the Redcar Blast Furnace and the Lackenby Steelmaking facilities.
A sale agreement would also result in Corus and SSI operating Redcar Wharf as a joint venture, giving Corus “the flexibility to use Teesside to serve its other steelmaking operations, while also meeting SSI’s requirements on Teesside”.
Corus MD and CEO Kirby Adams said: “We are very pleased to announce this significant progress in our long-held objective to sell the TCP assets to a strategic industry investor.
“This is the first of several steps required to reach a definitive sale agreement in the coming months which, with the anticipated co-operation of Government, employee representatives and the North East community, should result in the restart of steelmaking on Teesside in the first half of 2011 “Having known SSI for the past ten years, I am confident that our collaborative efforts in the period ahead will provide a more sustainable business for the people of Teesside.”
Win Viriyaprapaikit, President of SSI said: “We have great respect for the tradition of steelmaking on Teesside and for the highly skilled Teesside workforce, having previously purchased slab from Teesside Cast Products. For the past year we have held very constructive negotiations with Kirby Adams and the Tata Corus team and we look forward to engaging with all stakeholders in the same spirit of co-operation to secure a final agreement.
“This transaction will enable SSI to fulfill its long-standing objective of becoming a fully integrated steel producer with both primary steelmaking and rolling facilities.”
Corus and SSI will continue their negotiations, as well as holding talks with trade unions and the Government in coming weeks and months with the aim of finalising the terms of a sale agreement as soon as possible.
MEDICAL MEDICAL
GlaxoSmithKline to invest £500m in UK manufacturing.
GSK will invest in UK R&D and production operations with a focus on boosting bio-manufacturing capacity.
Pharmaceuticals giant GlaxoSmithKline is to invest £500m in UK manufacturing projects as a result of the Chancellor’s announcement of a special low tax on patent income.
GSK is the number one private funder of research and development in the UK, spending £1.5bn of its £3.9bn global budget here.
The investment fits with the deal GSK announced with Lonza earlier this year and, more generally, with the direction in which the UK drug major's business is moving, given that biopharmaceuticals represent about 20 per cent of its clinical pipeline.
GSK will add manufacturing capacity at its existing facility in Ware, Hertfordshire for respiratory disease treatments and solid-dose tablet products.
Chief executive Andrew Witty announced a £50m venture capital fund investing in early stage healthcare companies and spin-outs from universities.
The tax change, known as the ‘Patent Box’, will allow GSK to build a new facility at the University of Nottingham, focussing on “green chemistry”.
GSK is also planning a dermatology-focused production centre of excellence in Barnard Castle, County Durham.
Under the Patent Box regime, scheduled to come into effect from 2013, the tax on income from patents will be reduced to 10pc from 28pc.
