Metso investment in South Korea

In the December INSIDER, page 2, Metso reported a breakthrough, with new orders in the South Korean energy market for boiler control systems. They now are following this up with investment into a new green-field global valve technology centre in Chungju, South Korea, to open in September. It is anticipated that this will strengthen the Metso control valve and service capabilities for customers in the oil and gas and power industries. The new centre will also house research and development, engineering, and service support units for South Korean EPC companies, which play a major rôle in many projects worldwide. 

The new technology centre builds on the foundation provided by the globe valve technology and service company that Metso acquired in South Korea in 2012. This investment is a continuation of the ambitious growth strategy to develop the Metso valve business, which saw a globe valve technology centre opened in Shanghai in 2010 and another opened in Finland in 2011. In 2012 there followed in a new valve supply and service centre in India, and the completion of expanded valve production premises in the USA. Cutting-edge industrial valve technology and supply centres are operating in Brazil and Germany, and there are also 55 service hubs and 30 valve service centres around the world.

Emerson acquires Enardo LLC

Emerson announced today it has acquired Enardo LLC, a leader in safety and environmental control equipment for the oil and gas, petrochemical, wastewater, refining and other industries.

Enardo, with approximately $65 million in sales last year, employs 140 people at its headquarters and operations in Tulsa, Oklahoma, USA. It manufactures tank and terminal safety equipment, including hatches, vent, pressure and vacuum relief valves and flame arrestors used in the oil and gas, petrochemical, chemical and other industries. Enardo was previously a division of HMT, a leading provider of above ground storage tank products and services based in The Woodlands, Texas, USA.

“Enardo’s expertise in tank vapour controls applications is highly complementary with our industry-leading regulator technologies portfolio, including our Fisher Regulator product line,” said Steve Sonnenberg, president of Emerson Process Management. “Enardo, which has an excellent reputation for quality and customer satisfaction, extends our expertise and capabilities in the upstream and downstream markets.”

Emerson Process Management makes pressure regulators, relief valves, and related products in McKinney, Texas, and in other locations in the United States and around the world. These technologies help control pressure and flow of industrial gas and liquids, natural gas and propane gas.

“Enardo is a market leader with strong brand presence. Together, we look forward to better serving the needs of our storage tank and terminal customers and markets worldwide,” said Randy Page, president of Emerson Process Management’s Regulator Technologies business.

Emerson buys Virgo Valves in India

Emerson ha  announced it has signed an agreement to purchase Virgo Valves and Controls, Ltd, a leading manufacturer of ball valves and automation systems based in Pune, India.  

A privately held company, Virgo serves diverse markets worldwide, including the oil and gas, power and mining industries. In addition to ball valves, Virgo also manufactures high performance butterfly valves and severe-service valves for critical applications. Virgo will operate within Emerson Process Management’s final controls business, serving customers in the energy and process-related industries.

“Virgo’s leadership in the engineered, on-off valve market is a great strategic fit within our business and strongly complements our Fisher® control valve business,” said Steve Sonnenberg, Emerson’s executive vice president who heads its Emerson Process Management segment. “Their ‘customer first’ focus on meeting or exceeding customer expectations in innovation, quality, performance and on-time delivery, aligns perfectly with the solutions that customers have come to expect from Emerson. We are excited about the synergy between our two companies and the opportunities for global business growth.”

Mahesh Desai, co-founder and chairman of Virgo, citing the advantages of Virgo being part of Emerson, said: “The alliance with Emerson, and in particular the Fisher line of products, is a continuation of our growth as a global brand. We appreciate the support of customers, employees and other stakeholders that have been part of our company.”

Since starting operations in 1986, Virgo has focused on the manufacture and sales of engineered on-off valve products, and today has manufacturing locations in Europe, the United States and India. Its sales in more than 60 countries last year were about $250 million USD, more than 80 per cent outside India. The deal is expected to close early next month.

Emerson $67m contracts on Gorgon LNG

Emerson Process Management has been awarded contracts by Chevron Australia Pty, valued at US $67 million, to provide control valves and valve actuators to help ensure the efficient and safe flow of natural gas at the Gorgon Project, one of the world’s largest natural gas projects. Emerson Process Management is providing the majority of the control and shutdown valves for this natural gas project.

Emerson valve and valve automation technologies provide the ability to accurately manage the production of gas, resulting in tighter and more accurate control that increases overall system efficiency and safety, and helps ensure environmental compliance. Fisher FieldVue digital valve controllers provide automated configuration as well as improved control valve calibration and tuning. Their built-in diagnostics enable technicians to remotely monitor the health of a valve assembly and can alert them to pending issues before they affect operations.

“Our customers are undertaking increasingly larger and more complex projects in challenging on-shore and off-shore sites, where they require sophisticated, reliable gas flow solutions,” said Steve Sonnenberg, president of Emerson Process Management. “Prior to installation, we were able to verify the performance of highly critical valves that will be used at Gorgon, through real-world flow testing at the Emerson Innovation Center at the Fisher plant in Marshalltown, Iowa, USA – the largest flow facility in the world capable of providing this kind of reliability testing.”

The contracts include over 1000 control valves, valve controllers and actuators for applications ranging from inlet gas processing, acid gas removal, liquefaction and fractionation, to anti-surge and cryogenic. The wide scope of applications is matched by various valve materials, to withstand harsh conditions, extreme changes in pressure, and corrosive environments. Severe service conditions within many of the processes are met by a high number of Fisher noise reduction and anti-cavitation trims.

Additionally, Emerson Roxar subsea wet gas meters will be used to provide real-time, accurate measurements of hydrocarbon flow rates and water production.

In addition to support from Emerson Process Management engineering, development and manufacturing facilities in Australia, Emerson is working with its local business partner of 20 years, Perth-based Western Process Controls, to provide training that will help the Gorgon Project instrument and valve technicians, ensure smooth commissioning and maintenance best practices.

GE $1Bn wellhead deal with Petrobras

GE Oil & Gas and Brazilian energy company Petrobras have signed the world’s largest subsea wellhead production contract, worth nearly US$1.1Bn. This includes the delivery of approximately 380 subsea wellhead systems and installation tools needed in oil well exploration, and more than 75 percent of the parts will be made in Brazil.

GE announced the award of the contract at the 2012 Rio Oil & Gas being held September 17-20 in Rio de Janeiro.

“This new agreement between two of the world’s largest companies shows our commitment to collaborate in the development of the oil and gas sector in Brazil,” said João Geraldo Ferreira, president and CEO of GE Oil & Gas for Latin America. “In recent years our investments and efforts have been focused on preparing our company to support market growth and to be ready for contracts of this size, developing the entire supply chain. We want to grow with the country.”

“The new contract builds on our existing relationship with Petrobras and follows previous successful projects,” said Rod Christie, vice president of GE Oil & Gas Subsea Systems. In 2009, GE Oil & Gas and Petrobras signed what was then the biggest wellhead contract in history to date (in terms of number of wellheads), worth US$250 million.

“Through the acquisition of VetcoGray in 2007 and Wellstream in 2011 and ongoing investments in technology, GE has become an established player in the offshore industry,” said Christie. “With more than 5,000 subsea employees operating in more than 50 countries we are supporting some of the industry’s largest and most challenging projects.”

Petrobras plans to install the subsea wellhead systems in various oil and gas fields in Brazil, including sub-salt. The equipment will be produced at the GE plant in Jandira (São Paulo), where GE has invested US$30m to expand production capacity.

“The Jandira facility has been crucial in allowing GE Oil & Gas to provide world-class technology and has prioritized Brazilian-based production, which is a critical component in local social and economic growth,” said Fernando Martins, president of Subsea Systems for GE in Latin America. In the last 30 years, more than 1,200 GE wellhead systems and 180 subsea Christmas trees have been produced and installed in Brazil.

Petrobras is an integrated energy company that operates in 27 countries on five continents. It is a world leader in deepwater and ultra-deepwater oil production and operates approximately 100 production platforms, 15 refineries, 30,000 kilometers of pipelines and more than 6,000 service stations.

GE Oil and Gas is committed to business growth in Brazil and continues to invest in new capacity to take on orders and new industry demands. The US$30 million invested in Jandira (SP) was used for capacity expansion and modernization of the operation. In Niterói (Rio de Janeiro), GE is investing US$200m to expand its flexible line plant, to serve the new sub-salt fields.

In June 2012, GE announced the completion of the US$32m expansion of its plant in Macaé (Rio de Janeiro), tripling the size of the facility and making it GE Oil & Gas’s most modern subsea system services provider in the world. This expansion increased the workforce at the site by 150%.

New Metso valve service centre in India

Metso has opened a new valve supply and service center in Vadodara, India. The new supply center supports company’s strategy to grow valve business globally and strengthens Metso’s service capabilities in India for major petrochemical, energy, and oil and gas companies such as Reliance Industries Ltd, Indian Oil Corporation, Technip, Praxair India Pvt Ltd and PRAJ Industries Ltd.

“The market in India is growing. Last year we doubled our order intake for valves and related services, and expect the good development to continue. Establishing a new supply center to India is a step going forward in widening manufacturing and service capabilities in India”, says Alok Kishore, Country Manager India, Metso Automation.

This investment is in line with Metso’s long-term strategy to develop and expand its valve offering, delivery and service capabilities for customers in oil and gas, power, pulp and paper industries. It was preceded by a series of investments in Metso’s global offering and presence. Last month Metso announced acquiring a valve technology and service company, Valstone Control Inc. in South Korea. Currently Metso is expanding its valve production premises in the US. Last year, Metso opened a new valve technology center in Finland. In 2010 Metso opened a new valve facility in Shanghai, China. Metso also has high-class industrial valve facilities in Brazil and Germany.

The new valve supply center is located in Vadodara city, 400 km north of Mumbai in the state of Gujarat, where Metso’s service center has been in operation for more than two years. The state of Gujarat has the fastest growing economy in India, and it is also one of the most industrialized states, having per capita GDP almost the double of the national average. The industrial city of Vadodara houses major customers and engineering, procurement and construction companies such as Reliance Industries Ltd., Indian Oil Corporation, L&T and Linde.

Experienced in valves
Metso is a leading valve solutions and services provider. Metso’s Flow Control solutions include control valves, automated on/off and emergency shut-down valves, as well as smart positioners and condition monitoring. Metso’s world-leading brands include Neles, Jamesbury and Mapag.

Due to Metso’s strong position in advanced valve technology, services are a major part of the offering. For example, customers like Petrobras and Arcelor Mittal have awarded Metso with large service contracts. For valve customers alone, Metso already has 31 service centers around the globe on top of this new one now being opened in India.

Metso acquires Valstone globe valves

Metso has signed an agreement to acquire South Korean valve technology company, Valstone Control Inc. (Valstone). The acquisition strengthens Metso’s control valve and service offering for customers in the oil and gas and power industries. Valstone’s globe valves add to Metso’s current wide portfolio of control valves. The acquired technology plays a key role in most critical processes with extreme pressures and temperatures. The acquisition follows Metso’s strategy and strengthens Metso’s market position in the growing Asian markets.

Valstone is a privately owned globe valve and service specialist company. Its customers include many of the leading South Korean petrochemical and power generation companies and engineering, procurement and construction (EPC) companies. Valstone’s net sales are less than Euro10m.

Metso has an ambitious growth strategy to develop its valve business.The Valstone acquisition is preceded by a series of investments in Metso’s global valve offering. Last year Metso opened a new valve technology center in Finland, and the previous year in Shanghai, China. Currently, Metso is expanding its valve production premises in the US as well as building a new supply and service center in India. Additionally, Metso has high-class industrial valve facilities in Brazil and Germany.

Commitment to meeting customer needs has also made Metso a leading valve technology service supplier. For example, customers like Petrobras and Arcelor Mittal have awarded Metso with large service contracts. Valstone strengthens Metso’s service capabilities in the growing South Korean market. For valve customers alone, Metso has 31 service centers around the globe.

‘’The acquisition of Valstone and the preceding investments confirm that we are in the business with a long-term strategy to continuously improve our technology offering and services to benefit our customers. Asian growth markets have a key role in our strategy. We invest heavily in these markets in order to serve our customers better, both locally and globally’’, says Perttu Louhiluoto, President, Metso Automation.