Analysis

Net-zero steel in building and construction: The way forward

As the world transitions to lower greenhouse-gas emissions, construction companies have a major role to play. In making the green buildings of the future, they have a chance to tap into demand that spans geographies and architectures. Indeed, greener business models are potential magnets for trillions of dollars earmarked for sustainable investment. In addition, companies that adapt effectively will ensure they are aligned with an increasingly stringent regulatory agenda. The decisions made by construction executives now will determine how they are positioned for the transition over the coming decade. Those that prepare astutely are likely to seek out emerging pockets of innovation and dial up investment in sustainable technologies and capabilities. To be sure, new materials such as green steel are more expensive, and will therefore demand a new pricing model. However, they can significantly reduce embodied carbon—in commercial buildings by as much as 70 percent by 2030. Amid tight industry margins, a priority for decision makers will be to ensure that there is a solid business case for change. The key in that regard will be to establish market position, while adjusting to a new cost base. They must also ensure that greener business models are aligned with demand that will rise at an uncertain pace over time. A tricky calculation is required, but the prize is a chance to get ahead in a market that is set for a potentially rewarding future. Construction industry emissions From houses to bridges, hospitals, and skyscrapers, the construction industry is responsible for approximately 25 percent of global greenhouse-gas emissions. A third of these are associated with materials and the construction process, or so-called “embodied carbon.” One reason for the industry’s high emissions is that it is a voracious consumer of steel, accounting for more than 50 percent of global demand.2Due to the energy required for its […]

Decarbonising steelmaking

This article, one of many NZ Manufacturer will be sharing on the subject, comes as a result of conversations with companies in the steel industry who require information on decarbonising steel and steelmaking. Seventy five percent of steel is made from high-emissions plants Nearly three-quarters of crude steel today is made from iron ore in blast furnace–basic oxygen furnace (BF-BOF) plants. These plants release carbon when coking coal is burned and used as a reducing agent. One key decarbonisation action could be to replace blast furnaces with electric arc furnaces fed by scrap and/or H2-DRI; powering EAFs with 100 percent carbon-neutral electricity would eliminate energy-related emissions. Moving to low-emissions production would require $4.4 trillion spending over the next 30 years, with the top end spend coming between 2030 and 2040. In this scenario, three-quarters of investment will likely be on new hydrogen-powered DRI-EAF plants, and the rest to equip existing BF-BOF plants with CCS. Thirty percent increase in unit production costs for steel Costs for steel in the net-zero scenario could increase because of up-front capital spending and higher operating costs associated with CCS and hydrogen-based DRI-EAF production. Market opportunities The shift toward net-zero steel production would likely depend on a collaborative effort among regulators, governments, and industry stakeholders to change the economics of production, facilitate access to required capital, and stimulate demand. First movers that manage the transition risks well stand to gain the most. Sixty five percent of steel will come from plants with electric arc furnaces in 2050 and there will be a ten percent increase in global demand for steel compared with today. Getting all the way to net-zero steel Recent developments in regulations, along with commitment among some governments to reduce CO₂ emissions, have led many steelmakers to set high decarbonisation goals in coming years. While […]

Regulated product stewardship driving transition to a circular economy

By Trevor Tutt – GM Innovation, 3R Group Something which will affect almost all New Zealand businesses has mostly flown under the radar since it was announced during the covid pandemic. A swath of products are set to fall under regulated product stewardship for the first time in New Zealand after they were announced as priority products in July 2020. This means, for the first time in Aotearoa New Zealand, regulated product stewardship schemes are being established for tyres, electronic waste, single-use plastic packaging, synthetic refrigerant gases, agricultural plastics, and agrichemicals. So, if you rely on refrigeration, transport, electronics, or plastic packaging for your goods, you may be affected. It’s a big range of products, with more likely to be announced following government consultation on ways to accelerate product stewardship in new waste legislation. What is regulated stewardship? Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of. This usually means a stewardship fee is charged at the point of manufacture or import and is used by a scheme to achieve better environmental outcomes. The pay-off is improved environmental performance and brand reputation, as well as reduced risk from environmental harm. New Zealand has several voluntary stewardship schemes where participation is just as the name suggests – voluntary. These can suffer from limitations due to insufficient data and resources, and free riders – those who don’t contribute but whose products are stewarded through the scheme. Regulated stewardship sees all of industry required to participate. This provides a level playing field with no free riders. Schemes are therefore better resourced financially and through industry support such as knowledge sharing and collaboration. Data capture is also greatly improved. Regulated schemes are better equipped to reduce […]

EMA & Industry 4.0: Company Profile -RML

RML has been providing high-performance innovative robotic and automation solutions to their customers for the past 40 years. From robotic automation systems, cartoning, case packing, conveyor solutions, custom assembly, palletising, lidders, closers and components. RML has worked with large and small production lines throughout New Zealand and Australia. Problem or Opportunity As a machine builder, RML have identified key issues which were stopping their customers from maximising the value of their investments. Primarily, it was difficult to be connected to machines from outside of the customers’ plant. This led to site visits being required to provide customer support and delivering upgrades that increased customers productivity. The lack of network connectivity also meant that machines were generally standalone, with limited integration with the customers business systems, thus not delivering the performance data to the teams that are. The Solution RML identified that current PLC technology is great for controlling plant, but is lacking in the ability to fully control machines and harness the full potential of Industry 4.0. To make their products Industry 4.0 ready, RML moved to using Industrial Controllers (IC’s) about six years ago. IC’s are similar to a Windows computer. They have the ability to run real-time control and allow a suite of additional programs to be installed, beyond simple machine controls. This has also helped them bridge the common access or security issues which machine builders face with PLCs. Using IC’s, it is now easier to support customers in real-time while ensuring security needs are met. The IC’s allow for the remote adjustment of settings to help when troubleshooting, allowing remote support and troubleshooting, and allowing RML to train new operators online. This ensures machines are back up and running quickly, effectively maximising production. Also of benefit is the ability to collect real-time data using the PLC […]

Editorial February issue NZ Manufacturer: Productivity

Aren’t you sick of talking about it? However, I do need to ask “Is your company highly productive, or not productive enough?” We need to talk about it – not in a “we need to talk about Kevin way” – because Productivity is front and centre for all the country needs, and stands for, to get ahead. Let’s be clear, there are plenty of companies hugely invested in the technology and specialist staff to enhance their Productivity. And then there are those, unsure of the investment, unsure of return on investment. Too small to fail, too concerned to move ahead. Overcoming this fear can put the world at their feet. The drive to place Productivity ‘front and centre’ is very much in the mission statement, of such organisations as EMA and HERA, and forward thinker Ian Walsh of Argon. These are all deeply committed to Industry 4.0 and assisting their members and clients to move forward with better tools and outcomes for the future. The crises that have affected New Zealand’s business momentum over recent years are numerous – the Christchurch earthquake, the terrorist attack, climate change and the war in Ukraine. Supply chain issues, inflation and the relentless search for qualified staff to keep moving business forward. Whenever money is needed for flood relief or a crisis, there is a scramble to find it. Whatever party is in power does not solve the reality: money will always be tight. We are a nation that does well with Productivity in a crisis, when we need to clean-up. It is not a financial return! Work with the specialists and experts who can assist move your company forward. If you need to form a conglomerate to share equipment and resources, do it. Do not get left behind without the technology and skilled […]

A story of transformation

Long-standing East Tamaki business, Facteon, is a world leader in planning and building intelligent factories for the internet age. The genesis Facteon’s story begins 40 years ago as the internal engineering divisional capability of Fisher & Paykel Appliances. At the time, New Zealand and manufacturing in general were in a very different place. Fisher & Paykel, by global standards, was a relatively small appliance provider and had a diverse range of markets which required small batch sizes and a wide variety of products. To achieve this, they needed a more flexible approach to manufacturing. The equipment and systems suited to this were not easily purchased then, so Fisher & Paykel Appliances decided to establish their own division of experts, Fisher & Paykel Production Machinery. Over the years, the company became very specialised in appliance lines as well as work in other industries. This work was varied and included such projects as alloy wheel production lines for Ford’s New Zealand factory, building materials and production lines for roof tiles, and even the machinery for pulp thermoforming which is used to make fruit trays and egg cartons. In 2012, Haier Group purchased Fisher & Paykel Appliances, acquiring the Facteon business in the process. During the initial years of the relationship, Facteon and Haier worked together to improve the performance of Haier’s manufacturing function, with a particular focus on automated welding and production lines. In 2018 Haier Group was looking to set up a much wider Industrial Intelligence Division and Facteon became a cornerstone of that group amongst other Haier robotics and software companies. This was the birth of the Facteon brand. The company wanted a name that signified automation and connectivity for Industry 4.0 and didn’t want any confusion with appliances. “We have been here for such a long time that it […]

How good is your productivity?

-Ian Walsh, Partner, Argon & Co ANZ As I have covered previously, New Zealand’s GDP has been declining relative to other OECD countries for over 40 years, sitting at 21st out of 38 countries as of 2021. This concerning situation affects our quality of life, our ability to invest and the provision of the services and amenities we have come to expect. The root causes for this have been provided over many years: geographical separation, access to capital and, of course, productivity. To quote American economist Paul Krugman, ‘productivity isn’t everything, but in the long run, it’s almost everything’. We currently lag significantly behind many OECD countries in output and hours worked. It is simply not possible to work more hours. We are now in a tight labour market, with lack of skills and availability of resources and rising wages as a result and we can no longer rely on the number 8 wire, she’ll be right and just harden up attitude. To keep up with the Irish we would need an extra 10 hours a day! This is our climate change moment. The house is burning and throwing a bucket of water at it won’t fix it. A frontier study comparing us to similar countries in size and scale, and allowing for the geographic differences, found that the key shortfalls are: Industry, government and research/university collaboration Focus on key sectors which there is a natural advantage or capability Support through appropriate technology and capital investment Development of human capital through training, mentoring and adoption of best practices The outcome of having these things has been outstanding performance for Scandinavian countries, Singapore, Ireland and Denmark, amongst others. By contrast, in NZ we have: Underinvested in capital, as it is easier to use flexible labour and avoid the spend Underinvested in […]

Women in Engineering: Lydia Frater

NZ Manufacturer profiles women in engineering, supporting The Diversity Campaign and those who come forward. This profile on Lydia Frater, is a recommendation from HERA. –Doug Green, Publisher. Contact me to take part. What inspired you to pursue engineering? I was inspired by a trip with the rotary national science and mathematics forum. I took my first look into real-life engineering at work and fell in love with the environment and skill set, once this idea came into my life. I took the advantage to learn more about engineering disciplines and talked to engineers and students taking engineering to get a full view which inspired me more. I was mostly inspired by the people and how welcoming and fulfilled they were with their career choice. Civil/Structural engineering – does this mean large projects for you to work on? Being accepted into a Civil/Structural engineering degree at UC I hope in the future to work on large projects and to fill my career with challenges, large accomplishments and teamwork. I particularly enjoy using my people skills, which come in handy with large projects. What is an example of a completed project you admire? I do admire the Sky Tower in Auckland as it has a lot of character. And also the Ngāi Tahu building Te Whare o Te Waipounamu as I work part-time there and am amazed by it inside and out. What would you like to specialise in? I hope to specialise in structural engineering and pursue static and dynamic buildings as I enjoy using creativity with logic and building for the environment. How would you incorporate creativity? I enjoy structures that have character and stand out as a statement. I would like to bring in creativity, using ideas and knowledge already taught, but setting a goal of making it into something more personal. […]

More sustainable and productive steel turning with new carbide inserts

A recent survey by OpenText found that 92% of manufacturers consider corporate social responsibility (CSR) to be important for their overall reputation in the markets. Even though steel turning is, by nature, a waste producing process, it is possible for manufacturers to improve their sustainability without compromising process security — even against the unprecedented challenges of COVID-19. Here is a different approach to steel turning. According to the 17 Global Goals for Sustainable Development set out by the United Nations (UN), manufacturers are expected to minimise their environmental impact while going further than just optimising energy use. Although CSR is important to companies,manufacturers waste between 10% to 30% of material in their machining processes, with a typical machining efficiency of below 50%, which includes at the design, planning and cutting phases. So, what can manufacturers do? The UN’s goals recommend two main avenues that take into account such factors as a growing population, finite resources and the linear economy. The first is to address these challenges with technology. Industry 4.0 concepts — like cyber physical systems, big data or the Internet of Things (IoT) — are frequently cited as being the way forward for manufacturers seeking to reduce waste. Yet, this does not allow for the fact that most manufacturers are yet to apply modern machines with digital capabilities to their steel turning operations. Most manufacturers are aware of how important the choice of insert grade is for making steel turning more efficient and productive; and how this affects overall performance and tool life. However, many are missing a trick by not considering the whole tooling concept; everything from advanced inserts, tool-holders and easy-to-adopt digital solutions. Each of these factors can help to make steel turning more sustainable by reducing energy consumption and minimising waste. Reduced cutting speeds Manufacturers face […]

Choose applications relevant to your needs

From NZ Manufacturer, October 2023 -Adam Sharman, Senior Partner, dsifer As organisations look to embrace the benefits of digitisation through automation, IoT and AI, a trend is emerging that embraces the growing availability, specificity and cost effectiveness of a plug-and-play approach to developing an IT and data architecture. Advances in functionality, connectivity and speed to deployment have resulted in the ability to pick and choose applications that are relevant to the specific requirements of the organisation’s industry, operations and environment at a time when the vast majority of IT professionals report significant time waste due to bloated, generic applications. Whilst this trend towards a plug-and-play system architecture has multiple benefits, it requires careful consideration of the underpinning data architecture to ensure that, not only are data privacy and sovereignty maintained but that the data generated by the plug-and-play ecosystem is collected and utilised as a performance and strategic asset. In our interactions with manufacturing businesses in New Zealand and the UK, we are seeing the importance of establishing an independent, centralised data architecture as an enterprise asset to support the plug-and-play IT architecture, receiving data feeds from the operational systems, and using a combination of these source datasets to create meaningful and actionable insights. There is still much debate on the relative benefits of physical centralisation (data lakehouse) versus a virtually centralised (data mesh). In our experience, both have their place depending on the organisation’s context. However, the key characteristic of the data architecture that supports a plug-and-play IT approach are that the data assets, architecture and governance are independent of the IT applications, data siloes are removed to support integrated enterprise insight and access points are decoupled to accelerate collaboration whilst maintaining data integrity. Organisations who have adopted this approach report multiple benefits, including: Enhanced Data Governance and […]

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