Manufacturing Industry News: News from the week of Dec. 27, 2004
Twisted wire may protect soldiers from explosives
OSHA unveils chemical reactivity Web page
Textron Fastening Systems to market intelligent fasteners
Dana Corp. to close facilities in North Carolina, Michigan
Durable goods orders climb in November
Steel price increases pervade in 2004
Twisted wire may protect soldiers from explosives
The Defense Advanced Research Projects Agency (DARPA) awarded funding to Hardwire LLC to explore the application of their proprietary high-tensile steel reinforcement products as an armament for military vehicles.
Based on the steel-belted technology commonly found in tires, Hardwire was successfully implemented as a solution for structures and other infrastructure components seeking blast-resistance and blast-mitigation retrofit.
A family of reinforcements made from ultra-high strength twisted steel wire cords, 11 times stronger than a typical steel plate, Hardwire easily reinforces various materials and provides high strength (up to 8 kips/inch) and high modulus (up to 30 million psi) in a very thin, ductile envelope.
The product can be molded into or on virtually any structure or part. Because of the global economies of scale afforded from mass production of steel belted tires, Hardwire is produced at a small fraction of the cost of typical aramid and carbon reinforcements. The innovative system uses high-strength steel wires twisted together to form reinforcing steel cords that are twice as strong as the cables holding up the Golden Gate Bridge.
George C. Tunis, chairman and CEO of Hardwire LLC, said using Hardwire as a solution for ballistic armor systems is a natural extension and use of the technology and that it is a great honor to have received this funding from DARPA.
"What makes Hardwire such a compelling material is its low cost and immediate availability," said Tunis.
Tunis said that the development of blast-resistant protective panels has created great interest from the U.S. military, government contractors and other interested suppliers. In concert with traditional armor components such as ceramics or other available hardened strike-face materials, Hardwire may provide additional protection for multiple-strike ballistic scenarios.
Since Hardwire is essentially moldable steel, the material can be integrated into a wide variety of composite and plastics processes, allowing it to be mass-produced in complex geometries that are common with vehicle or building systems.
"Our testing of the Hardwire material shows real potential for its application as reinforcement for and strengthening of military vehicles, ballistic-proof housing, protected infrastructure and more," said Tunis. "Its lightweight property is advantageous since steel armor can be too heavy for the suspension of military trucks, and suitable composites are often too expensive or not readily available. Because of Hardwire's open construction, thermoplastic resins can be used to manufacture stronger, tougher and recyclable armor. The thermoplastic systems open the door to high throughput automotive processes that will afford our military new economies of scale and massive capacity, taking advantage of our nation's existing industrial capabilities. Our goal is to work to lower the cost and weight of armor to provide improved protection for our men and women in uniform."
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OSHA unveils chemical reactivity Web page
Workers and employers involved in the manufacture, distribution, use and storage of chemicals will benefit from a new Occupational Safety and Health Administration (OSHA) Web page: Chemical Reactivity Hazards.
The page is a product of two national alliances with OSHA: the Dow Chemical Company and the Reactives Alliance. The Reactives Alliance consists of the Environmental Protection Agency (EPA) and six organizations involved in the chemical industry.
"This new page is a continuation of the many new resources and initiatives we're undertaking to address the hazards associated with reactive chemicals," said OSHA administrator John Henshaw. "The cooperative relationships we've established with chemical safety stakeholders throughout the nation are reaping benefits, and this Safety and Health Topics page is a prime example of how the alliance program can leverage resources to assure proper handling of reactive chemicals. Dow Chemical and the organizations within the Reactives Alliance are helping us develop best practices and effectively communicate these practices so incidents involving reactive chemicals don't occur."
Chemical reactivity is key to the chemical manufacturing industry. Still, such reactions do present serious and oftentimes catastrophic results to workers and process equipment when the hazard is not thoroughly understood and controlled. The purpose of the Chemical Reactivity Hazards page is to provide relevant information to employers and workers in order to ensure safe chemical operations.
The page addresses particular standards that apply to the industry, including those from OSHA, EPA, the Department of Transportation and more. Detailed sections are offered that describe hazard recognition and incident investigation reports. Other sections describe hazard evaluation, control and prevention, and training. References to other sources of information are also a click away.
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Textron Fastening Systems to market intelligent fasteners
Textron Fastening Systems Inc. signed a technology and partnership agreement with Telezygology Inc. (TZ) for exclusive global rights to develop, commercialize and manufacture products using its proprietary intelligent fastening technology.
Textron Fastening Systems will market the intelligent fastening systems and products under the Intevia brand name.
Equipped with embedded microprocessors remotely controlled by intelligent tools, Intevia intelligent fasteners represent a new approach to assembly technology. Customized software systems can control, manage, diagnose and document each fastener process and total lifecycles.
"Intevia intelligent fastening represents the future of fastening, and is the centerpiece of a series of new value-added systems and technologies we are introducing to change the ways products are assembled, maintained, serviced and recycled," said Rick Clayton, president of Textron Fastening Systems. "We expect more than a quarter of future Textron Fastening Systems revenues to be generated by Intevia and the other new products and technologies being launched."
Textron Fastening Systems and TZ began working together 15 months ago to develop automotive and aerospace applications for intelligent fastening. Their new contract gives Textron Fastening Systems exclusive rights to market Intevia in all global markets.
Textron Fastening Systems is paying TZ an up-front, $10 million license fee and will also compensate TZ through royalties derived from sales of Intevia products. In addition, TZ offered Textron Fastening Systems Inc. an option to purchase up to 20 percent of TZ shares, or under certain circumstances the shares of TZ affiliates, under terms and conditions to be agreed upon.
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Dana Corp. to close facilities in North Carolina, Michigan
Dana Corp. will consolidate the manufacturing of its off-highway transmissions and axles, resulting in the closure of its facility in Statesville, N.C.; a work force reduction in Brugge, Belgium; and the realignment of machining and assembly operations in North America and Europe.
Dana Corp. will consolidate the manufacturing of its off-highway transmissions and axles, resulting in the closure of its facility in Statesville, N.C.; a work force reduction in Brugge, Belgium; and the realignment of machining and assembly operations in North America and Europe.
The consolidation and related transfer of production assets are expected to be completed by December 2005. Production in Statesville is scheduled to end in September. These actions will eliminate approximately 300 jobs and result in an after-tax charge of approximately $25 million, of which $22 million will be recorded in the fourth quarter of 2004.
"The decision to consolidate manufacturing was necessary to strengthen the competitiveness of this business long term," said Nick Cole, president of Dana's heavy vehicle technologies and systems group. "We're committed to sustaining and growing our leadership position among off-highway vehicle manufacturers."
Dana Corp. also signed a long-term agreement with Federal- Mogul Corporation to supply it with grey iron castings from Federal-Mogul's western Michigan facility. Grey iron castings are used in the manufacture of piston rings.
Consequently, Dana will close its Muskegon, Mich., foundry operations. Production is expected to end in the third quarter of 2005, eliminating approximately 240 jobs. This action will result in an after-tax charge of approximately $12 million, of which $11 million will be recorded in the fourth quarter of 2004.
"This decision was necessary due to the excess capacity for grey iron piston ring castings," said Mike Laisure, president of Dana's automotive systems group. "Our foundry is severely underutilized and no longer a viable operation. This action will strengthen our overall competitiveness."
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Durable goods orders climb in November
New orders for manufactured durable goods increased $3.1 billion in November, or 1.6 percent, to $198.9 billion, according to the Commerce Department. This followed a 0.9 percent October increase.
Year-to-date, new orders for 2004 were 11.1 percent above the same period a year ago. Transportation equipment had the largest increase in November, $4.3 billion , or 8.2 percent to $57.1 billion, due to non-defense aircraft and parts, which increased $3.8 billion.
New orders for machinery fell 3.3 percent to $23.7 billion, and new orders for computers and electronic products fell 4.2 percent to $33.2 billion.
New orders for electrical equipment, appliances and components increased 4.6 percent to $9.3 billion, and orders for capital goods increased 1.6 percent to $78.7 billion.
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Steel price increases pervade in 2004
The median steel price increase for construction and agricultural equipment manufacturers was 60 percent in 2004, according to a survey conducted by the Association of Equipment Manufacturers (AEM).
Many respondents reported increases of 100 percent or more, and 45 percent anticipated steel prices would continue to rise through the first quarter of 2005, while 5 percent expected price drops.
About 85 percent of survey respondents absorbed some or all of steel price increases instead of passing them along to machinery buyers. As manufacturers have diverted resources to pay for increased raw material costs, 32 percent reported moving production capacity offshore or outsourcing; 23 percent postponed hiring plans; 28 percent put off planned investments; and 15 percent reduced work hours or shut down some or all of their operations.
The off-road equipment manufacturing industry is a major steel consumer, and every manufacturer responding to the AEM survey reported paying higher steel prices in 2004 compared to the previous year.
Manufacturers also continued to experience reduced steel availability and longer delivery times. As a result, many survey respondents have delayed hiring new workers, scaled back business expansion plans and shifted some production to non-U.S. sources. Half of the AEM survey respondents said they depend on domestic steel sources; the remainder obtain steel from a combination of domestic and overseas sources.
"Our survey underscores the adverse impact of steel pricing on our members. We are very concerned about the potential dampening effect this situation will have on the continued economic recovery of the off-road equipment manufacturing industry," said AEM president Dennis Slater.
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