China's growing economy, investment friendly policies, and a
manufacturing industry that caters to the domestic and export markets
creates an immense growth opportunity for AC drives. China's low power AC
drives market will grow at a Compounded Annual Growth Rate of 12.1% over
the next five years.
METI (Ministry of Economy, Trade and Industry) of Japan released the
final statistics for May, 2004 with upward modifications from those
previously reported on an interim basis.
Specifically, industrial production in May recorded an increase of 0.8
percent compared to the previous month, which is the upward correction by
0.3 points from the number already reported on an interim basis.
Industrial shipment index recorded 1.3 increase compared to the
previous month. The inventory index recorded 1.8 decrease compared to the
previous month, which is the upward correction by 0.2 points from the
===== COMPANY NEWS & BRIEFINGS =====
The Honeywell Users Group (HUG) recently gathered in Phoenix, AZ for
their annual 5-day event. More than 600 participants, from 26 countries,
gathered to exchange ideas and discuss industry challenges and
opportunities. The symposium was developed by and for industrial users of
Honeywell automation solutions. A 12-member, customer-led steering
committee determined the symposium theme and agenda. Over 50 customers
presented at this year's symposium. Presentation topics ranged from legacy
system migration to alarm rationalization and management to the benefits
of wireless technology. Representatives from Anheuser Busch, Georgia
Pacific, DuPont, and many other Fortune 500 organizations delivered
presentations on a variety of topics. The agenda offered high-level
general sessions, networking sessions, and industry breakout sessions for
refining/petrochemicals; pulp, paper and printing; power generation;
chemicals; consumer goods; metal, minerals and mining; oil and gas; and
An unusual presentation took place by way of a keynote address by
Honeywell International Chairman and CEO, David Cote. This is the first
time that a Honeywell Chairman addressed HUG and underscores the
commitment that the corporation has to industrial automation solutions in
general and the Honeywell Process Solutions group (HPS). This was
reaffirmed in Cote's speech both in terms of HPS R&D investments and
also by highlighting that the Corporation is a significant global
manufacturer and end-user in its own right.
New products introduced at this year's symposium included Honeywell
Integrated Operator Node (I.O.N.) The latest component of Honeywell's
portfolio of kits and enhancements, Honeywell I.O.N. transforms legacy
Honeywell TDC Universal Stations (US) into operator consoles with Experion
The Operations Management Pro (OM Pro) R200 provides refinery workers
with the information they need to maintain normal plant operations. OM Pro
sends immediate notifications of process disturbances, enabling operators
to continuously monitor plant performance and steer operations closer to
The new POMSnet production management tool optimizes operational
performance in the Life Sciences industry. POMSnet also complies with CFR
21 Part 11 and ISA manufacturing standards. Profit Suite R220 is a new
suite of advanced control and optimization applications.
Three more international Users Group gatherings are scheduled for 2004.
Honeywell Asia Pacific customers will gather in Australia Aug. 22-25. A
conference for customers in Europe, the Middle East, and Africa is
scheduled for Oct. 4-10 in France. Customers from across Southeast Asia
will meet in China Nov. 9-12.
By Andy Peters, ARC Advisory Group
>> Schneider Electric completes
acquisition of Andover Controls
Schneider Electric completed the acquisition of Andover Controls, a
Balfour Beatty company. Andover Controls offers Building Automation and
Security and had sales of $169 million in 2003. Schneider Electric views
Building Automation as one of their new growth platforms and strategically
important for their growth. The acquisition complements its position in
this market with the previous acquisition of TAC in June 2003.
ARC Senior Analyst Dave Clayton says, "The acquisition of Andover
Controls is a continuation of Schneider Electric's goal to strengthen its
presence in the global BAS and building securities markets through
acquisition. With the acquisition of Andover Controls, Schneider Electric
significantly strengthens its position in the global building securities
business as well as the company's position in the overall BAS market in
North America. Security and access control is a key application for
Andover Controls, which was strengthened by the company's acquisition of
Integral Technologies in 2000."
Clayton continued, "Andover Controls' business is a good
complement for TAC's geographic focus and Schneider Electric's vertical
focus. Geographically, Andover Controls' strength and strong reputation in
the North American BAS market is a good complement to TAC's strong
presence in the European BAS market. From a vertical industry perspective,
Andover Controls' strength in the pharmaceutical, food & beverage, and
biotech markets is a good complement to Schneider Electric's target focus
on the pharmaceutical and food & beverage verticals."