THE ECHO - Ferrostaal

THE ECHO
THE MAGAZINE OF THE MAN FERROSTAAL GROUP
AUgUst 2007
Spain
new solar power plant in the testing phase
Trinidad
record investment in petrochemicals
Venezuela
More power for energy supply

Ammonia plant in Trinidad
THE ECHO August 2007
Editorial
Dear Readers,
The Scientific Advisory Council of the German Government
estimates that, by the end of the 21st century, global energy
demands will mainly be met by solar power plants.
Solar power is where the future lies. Thanks to key projects,
we are currently taking up the pole position in this growth
industry – this applies equally to the biofuel and petrochemical
markets. We are forming close partnerships with
technology providers and our efforts are creating added
value for our customers. We are well known for our expertise
in the field of methanol plants, which we construct in conjunction
with long-standing partners. Methanol is not
merely a useful chemical substance – it is also a fuel source
for the future. We are now in a position to enhance this
expertise even further with two large projects involving
the production of fertilisers. Such fertilisers are absolutely
vital with regard to meeting the rising demand for food
worldwide.
These projects are clear examples of the focus on energy,
fuels and petrochemicals which we initiated some time ago
under the “projects” banner. As a general contractor with
notable skill in the area of project development, we develop
and construct large-scale industrial plants, thereby enhancing
our technological expertise for the benefit of our
customers. Some recent examples of this would be our
joint venture with Solar Millennium, the purchase of a
stake in the Solar Power Group and the takeover of Eurotecnica.
All of these companies are technology leaders in
their various sectors. At the same time, we are constantly
Dr.-Ing. Wolfgang Knothe, Member of the MAN Ferrostaal Executive Board
enhancing our competence in the area of processing. This
is not only achieved by the focussed expansion of staff
knowledge and skills, but also by external growth. To this
end we recently purchased Koch de Portugal, a proven specialist
in the EPC business for power plant construction. All
of these strategic moves increase our value proposition in
our projects and provide us with a long-term competitive
edge.
However, this strong focus on future technology does not
mean that we are neglecting our core business, which also
involves energy to a large degree. You can read about current
examples of power plant projects and compressor stations
in this magazine. Our core business involves concentrating
on projects in “our own” countries such as Venezuela
or the Middle East North Africa (MENA) region, which
other companies consider to be difficult markets. In these
regions we are particularly able to rely on excellent customer
contacts and professional project management. Given
our strengths in these countries, we are also keen to support
other subgroups in the internationalisation process.
This explains why we are currently assuming management
duties in the establishment of a number of MAN Houses,
which will bundle the operations of all MAN subgroups.
I hope you enjoy reading THE ECHO, which includes interesting
features on all these topics.
Yours, Wolfgang Knothe
3

4 THE ECHO August 2007
5
CoNtENtS
24 14 22
24
38
38
ProjECtS
TRINIdAd: record investment in the petrochemical
industry
A new plant complex for the production of fertilisers
and melamine is being set up on this Caribbean
island. Seven individual plants and an investment
volume of 1.5 billion US dollars make this the largest
ever completely private single investment on the
island.
ProjECtS
SPAIN: new solar power plant in the testing phase
A new solar power plant commenced its testing
phase at the Plataforma de Solar in Almería in July.
The innovative technology promises a high degree
of cost-effectiveness and should be market-ready in
two years’ time.
6
14
18
20
22
NEWS
Around the globe: project news from all our business
activities
ForUm
MAN Ferrostaal takes over plant constructor Koch
de Portugal
Adding to our expertise in power plant construction,
particularly in the booming renewables sector
maN PlatForm
One face to the market
Think global – act local: the MAN Group’s internationalisation
strategy unites the subgroups scattered
across the world under one banner.
“We have a good reputation in the region”
The MAN House in Dubai – servicing 16 key countries
Over a century of MAN tradition in China
The MAN House in Beijing: a key location in a rapidly
growing market
50 54
58
18 56
44
46
48
50
54
56
ProjECtS
Expert interview
Prof. Robert Pitz-Paal, Head of Solar Research at the
German Aerospace Centre, on commercial solar
power and power imports from Africa
Solar Millennium and MAN Ferrostaal found joint
venture
Both companies are combining their strengths to construct
large-scale solarthermal power plants with the
aim of becoming the leading supplier in this sector.
Stake in the Solar Power Group
A further strategic alliance in solar power: MAN Ferrostaal
purchases 25 per cent of the company shares.
“A milestone in Venezuela’s energy sector”
President Hugo Chávez inaugurates Termozulia I – the
gas-steam power plant expanded by MAN Ferrostaal.
SErviCES
Record sales in the metal processing segment
Successes in Brazil, Pakistan and China
Gas pipeline for LUOC in Uzbekistan
The country’s future wealth lies in the oil and gas business.
64
58
62
64
66
3
4
68
71
“Market leadership through quality leadership”
Dr. Ralf Becker, Managing Director of MAN Ferrostaal
Automotive, talks about key success factors and the
markets of the future.
CoUNtriES aNd PEoPlE
Living and working in foreign cultures
A profile of Reinhard Hönsch, Managing Director of
MAN Ferrostaal Perú
Working with Beethoven in the fight against
poverty
In Venezuela, children from poor families have
received free training as orchestral musicians for the
past 30 years.
“Fair treatment for customers and employees
alike”
Introducing: Bernd Ahlmann, Head of the Equipment
Solutions Business Unit
rEGUlar SECtioNS
Editorial
Contents
Trade fair calendar
Imprint
62

6 THE ECHO August 2007
NEWS
Rail cranes for Indonesia
Within the context of the “Railway Sector
Programme”, funded by the Kreditanstalt
für Wiederaufbau (the German
state-owned development bank), MAN
Ferrostaal AG supplied approximately
54,430 metres of track and two KI-
ROW rail cranes to the Ministry of
Transport in Indonesia between 2004
and 2005. After the expiry of a twoyear
warranty period, MAN Ferrostaal
AG handed over the cranes complete-
ly to the customer in Jakarta at the beginning
of 2007. Since their delivery in
2005, Indonesian State Rail has used
the cranes regularly for track maintenance,
as well as in salvage operations
after rail accidents. Thanks to these
cranes, the amount of time needed for
work on the tracks, reconstruction
work and salvage operations has been
considerably reduced in Indonesia,
where most routes are still single-
New propulsion system for
Argentine training ship
The “A.R.A. Libertad” has already won the Boston Teapot
Trophy a total of eight times. The Argentine navy sailing
ship, which is used for training purposes, has also held
the speed record for crossing the Atlantic between Cape
Race (Canada) and Dursey Island (Ireland) since 1996. In order
to ensure that the frigate stays moving at a snappy
pace even during calm spells, MAN Diesel has equipped
her with a completely new propulsion system. Besides a
control system and a propeller, this comprises a power
generator and two new diesel engines. MAN Ferrostaal
signed the supply contract with the Argentine navy in
2004. Both L23/30-A engines were delivered at the end of
2006. Each of them boasts an impressive 960 kilowatts of
power, is highly reliable and easy to maintain. The Argentine
navy chose the MAN system due to the exceptional
characteristics of the engines, which are particularly suited
to sailing ships. Similar engines are used by the Chilean
and Colombian navies on their training ships. Thanks
to the new engines, the Libertad can reach a speed of almost
14 knots.
The Argentine navy puts its trust in MAN technology.
track. In most cases, this means normal
services can resume after only a
short delay.
The “Railway Sector Programme” is
making a major contribution to the
country’s economic recovery by ensuring
the mobility of both people and
technology.
Expansion of rail
network in Croatia
MAN Ferrostaal is supporting the Republic
of Croatia in the expansion of
the pan-European rail network, thus
contributing to the development of
infrastructure in Croatia and consequently
helping to lay the foundations
of economic growth in south-eastern
Europe. Following approaches made
by MAN Ferrostaal, the Kreditanstalt
für Wiederaufbau (the German stateowned
development bank, KfW) in
Frankfurt is funding the modernisation
of the Croatian railway line between
Zagreb and Split. Since 2003,
the KfW has granted loans amounting
to around 180 million euros to Croatia
for the purposes of rail network development.
A large part of this funding for modernising
the “Lika line” between Ostar-
Power for Leticia
Trieste
Leticia is a town in the extreme south of Colombia. It has a
population of 28,000 and is surrounded by tropical forests.
Due to its peripheral location, energy provision is difficult.
It is now hoped that a new MAN Diesel generator will remedy
this situation. The engine achieves an output of 3,122
kW which is transferred to a generator. MAN Ferrostaal organised
shipment from the Danish port of Frederikshavn
across the Atlantic and then through the Amazon region.
The engine finally reached Leticia in April, and MAN Diesel
specialists are about to install it in the municipal power
plant.
Ljubljana
Adria
Oštarije
ije and Split was linked to MAN Ferrostaal
as supplier. Involving a total
sum of 130 million euros, divided into
three distinct delivery phases, MAN
Ferrostaal concluded contracts with
the Croatian railway company for delivery
of materials for track superstructure,
signalling systems and fur-
Zagreb
Split
CROATIA
ther capital equipment. The first two
supply phases, worth 40 million and
60 million euros respectively, have already
been successfully completed.
The third and final supply phase, worth
30 million euros, commenced at the
beginning of February 2007 and will
take about 18 months to complete.
7
Sarajevo

8 THE ECHO August 2007
9
NEWS
Germany’s strongest tugboat
MAN Ferrostaal, in its capacity as general contractor,
has concluded contracts for the construction of a
new series of ocean-going tugboats to be built by Mützelfeldtwerft
GmbH in Cuxhaven. These vessels will be used
offshore for towing oil platforms, as well as for anchor handling.
The “Taurus” was launched in Cuxhaven in April, subsequently
consigned to the Harms Offshore AHT “Taurus”
GmbH & Co. KG single-ship company, and then put into
service. Shortly afterwards in Aberdeen, the Taurus commenced
a North Sea charter with BP. The ship is 58 m long
and 14 m wide and can hold 1,000 tonnes of heavy oil. The
On the right wavelength
Chile is in the process of modernising
its fleet. Seven second-hand
frigates of Dutch and British origin are
to be put into service between 2006
and 2008. Some alterations will have to
be carried out to make it possible to
supply them with power from the
shore. The four Karel Doormann and
Jacob van Heemskerck ships and the
three Type 23 British ships are equipped
with generators which have a frequency
of 60 hertz, whereas the Chilean
power grid is based on 50 hertz. Up to
now this has meant that the frigates,
even when at base, have had to be supplied
by onboard generators. This results
in high diesel consumption and
huge costs. It is expected that a modern
system using rotating frequency
converters will lead to low costs. The
Taurus has a tow rope pull of 219 tonnes, making it the
strongest German tugboat at present. The main propulsion
comprises two 14V32/40 MAN diesel engines which have a
combined output of 14,000 kW. The variable pitch propeller
is also courtesy of MAN Diesel. Two further tugboats –
“Janus” and “Ursus”, boasting 220 tonnes of tow rope pull
each – are set to follow this year. In 2008, a pair of even
stronger tugboats – the “Uranus” and the “Orcus”, with 280
tonnes of tow rope pull each – will be delivered to the corresponding
single-ship companies.
project will be carried out by MAN Ferrostaal
Chile in conjunction with Piller
Power Systems of Germany and Emelta
S.A. of Chile. Two converters are already
in operation at the Valparaiso naval
base. It is planned that a further converter
with an output of 1,250 kilovoltamperes
will be connected at the Talcahuano
naval base at the end of 2007.
About five million tonnes of fertiliser are used in Latin America every year
New CFO
MAN Ferrostaal AG gained a new Executive Board Member
in January 2007. Michael Beck was appointed as successor to
Jens Gesinn who went into retirement. 43-year-old Mr. Beck,
a business studies graduate who held a number of leading
posts at MAN Nutzfahrzeuge prior to being appointed to the
Board, is responsible for Finance, Accounting, Controlling,
Tax and IT.
Large contract
in Venezuela
The Venezuelan government would
like to turn the country into one of
Latin America’s leading fertiliser producers.
With this aim in mind, an old
fertiliser factory run by the stateowned
PEQUIVEN company in the Caribbean
town of Morón is to be replaced
by a modern, efficient plant. In
the tendering process, a consortium
comprising MAN Ferrostaal, Toyo Engineering
and VEC prevailed against a
whole series of competitors and landed
the contract, worth one billion euros.
MAN Ferrostaal’s involvement relates
to the construction of the ammonia
plant that forms part of the complex.
The company already has a
wealth of in-depth knowledge and a
great deal of experience in this area
following the construction of ammonia
plants in Trinidad. A comprehensive
report on this petrochemical
project will be included in the next issue
of THE ECHO.

10 THE ECHO August 2007
11
NEWS
Dutch industrial ports are hotspots of the world economy.
Biodiesel plant in Amsterdam
MAN Ferrostaal is building a biodiesel
plant with an annual capacity
of 200,000 tonnes for J&S Bio
Energy B.V. at the port of Amsterdam.
The method used is based on the internationally
renowned “Connemann
process” for which MAN Ferrostaal
owns a worldwide patent. This application
process involves transforming
vegetable oil into fatty acid methyl ester,
and the end-product, biodiesel,
fulfils the European EN 14214 quality
standard. The Connemann process
has been tried and tested over many
years in the industry and is characterised
by good product quality, low consumption
and high reliability. J&S Bio
Energy B.V., based in Utrecht in the
Netherlands, is a subsidiary of the international
oil and gas group J&S Energy
S.A. in Warsaw, Poland.
MAN Ferrostaal acts as general contractor
for the supply and assembly
work. The plant is set to be completed
by July 2008 and is designed for a daily
capacity of 600 tonnes. The project
entails an overall investment of 42
million euros. Parallel to this, another
biodiesel plant with an annual capacity
of 100,000 tonnes is being built
for our Polish customer Lotos Bio-
paliwa at the Lotos Biopaliwa site in
Czechowice, Poland. Completion is
scheduled for the 2nd quarter of
2008. Total investment amounts to 25
million euros.
450,000 550,000
340,000
2000
2001
800,000
2002
1,200,000
2003
1,800,000
2004
2005
Biodiesel sales in Germany (in t)
Source: Union zur Förderung von Öl- und Proteinpflanzen e.V.
(Union for the Promotion of Oil Seed and Protein Plants, UFOP)
MAN Ferrostaal’s expertise helps Syrian power plants to “breathe”
In October 2004, MAN Ferrostaal was commissioned by
the Koch/Siemens consortium to air-condition and extract
smoke from two power plants in Zayzoun and Nasserieh
in Syria. The power plants are operated by the “Public
Establishment of Electricity for Generation and Transmission”,
Syria’s energy production and supply company.
MAN Ferrostaal was able to call on all of its expertise in power
plant construction. The planning and implementation of
heating, ventilation and refrigeration systems ran smoothly
and the turnkey handover of the project followed in April
2007. The job was worth 3.7 million euros.
Syria’s increasing energy requirements mean that several
new gas-steam power plants need to be built. Gas-steam
power plants are incredibly efficient. They tend to involve
low investment and low CO2 emissions. The two power
plants have been expanded from “open” to “combined cycle”
operations. Gas and steam turbine processes have now
been combined.
The expansion at the power plant also called for the construction
of new functional buildings. MAN Ferrostaal’s activities
thus comprised the natural and mechanical ventilation
of the technical buildings, air-conditioning of buildings
and rooms for switching systems, administration, storage
and workshops. The remit also included natural smoke
extraction for technical buildings and mechanical smoke
extraction for all other areas.
The Heating, Ventilation & Air-Conditioning concept as
well as the smoke extraction system are connected to an
instrumentation and control unit, which was also supplied
by MAN Ferrostaal. This unit is integrated into the building
control system. The secure and reliable operation of the
air-conditioning and smoke extraction processes is indispensable
for the smooth running of the plant and, by extension,
for its cost-effectiveness.
The power house roof complete with four 135,000 m 3 /h supply air installations
as well as wind baffle ventilators for heating and smoke extraction
MAN Ferrostaal’s complete and integrated solution impressed
all concerned. Moreover, by virtue of staff knowhow
and flexibility on the part of the company, the extremely
tight deadlines could be met. The first deliveries
were made in December 2005 and completion was achieved
on schedule in April 2007.
In March 2007, MAN Ferrostaal received a further order
from Siemens Power Generation in Vienna: providing airconditioning
for a third power plant in Syria.

12 THE ECHO August 2007
13
NEWS
Construction of a compressor station in Thailand
Whenever a new source of fossil fuels is found, the question
arises of how to deliver the gas to consumers
quickly and in a form that meets their needs. It was against
this background that the partially state-run Thai oil and gas
utility PPT Public Company Ltd. commissioned MAN Ferrostaal
with the construction of a compressor station in Map
Tha Put. Gas turbine compressors are designed to prevent bottlenecks
in supply, and primarily have a storage function.
Timely completion of the compressor station in Map Tha Put
The new compressor station forms part of the Third Transmission
Pipeline Project. This entails linking two newlytapped
offshore gas fields located off the Thai coast with onshore
consumers by means of pipelines. The MAN Ferrostaal
specialists had a period of only 18 months between the date
the contract came into effect and the mechanical completion
of the plant in December 2006.
The scope of the contract encompassed engineering work and
the delivery of equipment. It also included technical documentation
as well as construction, assembly and commissioning
measures. Having established a “Bangkok Branch” especially
for this project, MAN Ferrostaal, in conjunction with
local building contractor IBC, operated as part of an open consortium.
In this regard, 85 per cent of the joint and several
liability was carried by MAN Ferrostaal and 15 per cent by IBC.
The contractual obligations of IBC, the consortium partner,
comprised construction and assembly work as well as customer
invoicing. The plant-specific engineering measures
were carried out by the Bangkok-based Worley Parsons Ltd.
under the project leadership of MAN Ferrostaal.
In order to ensure that the schedule proceeded smoothly,
the entire MAN Ferrostaal Project Task Force was based in
Thailand. They were always located at the relevant project
“hotspot”, that is, Bangkok and later Map Tha Put, thus enabling
the company and IBC to adhere precisely to the deadline
for mechanical completion. The customer assumed
complete control of the entire compressor station subsequent
to a 30-day performance test phase under continuous
operation.
On the basis of work done and the superior levels of constructive
cooperation achieved with our customer PPT, MAN
Ferrostaal is confident that the foundation has been set for
further common projects in Thailand.
Specifications
Flow rate: 1,200 MMSCFD
Gas inlet pressure/temperature: 42 bar (g) at +35 °C
Gas outlet
pressure/temperature: 86 bar (g) at < +52 °C
Turbines/compressors: 3 x 21 MW gas turbines RB211
6562 DLE (Rolls-Royce) with RB45
centrifugal compressors (MAN
TURBO); turbines are operated with
gas from import pipeline
Design: 3 compressors (2 in operation, 1 on
standby) with intake-side gas filters
and pressure-side gas coolers as
well as a separate flare system
Energy supply: Transformer in existing sub-station
plus diesel generator for emergency
power
Control system: Digital control system (DCS) and
electrostatic discharge (ESD) with
local operation and remote control
from the control room
Clean air for a radiation-free future
The decommissioning of nuclear
power stations means that we are
faced with a difficult long-term legacy.
After an operational life of 21 years, the
Jülich Experimental Reactor, one of
the first nuclear reactors in Germany,
was finally shut down in 1988. Since
then, the reactor site has gradually
been returned to a greenfield state. The
specially built material lock on the reactor
building plays a central role in
this process. It ensures the safe containment
of radioactively contaminated
reactor components which are
sealed in the lock. The lock’s ventilation
system must be steadily adapted
in keeping with the decommissioning
process.
At the end of 2004, MAN Ferrostaal
won the contract from the Jülich Experimental
Reactor Consortium to
build new ventilation systems and a
chimney flue with an activity monitoring
system. The contract was worth
around 2.5 million euros. The systems
were delivered to the operator on
schedule at the end of 2006.
The new ventilation systems were deployed
inside the material lock. To this
end, the waste air of the new ventilation
system has been merged with the
rest of the plant’s waste air via parallel
filtering units containing prefilters and
air filters. This is then discharged into
the atmosphere via a newly erected 65metre-high
chimney flue.
Bioshield and water tower; material lock with chimney flue
The chimney flue itself is equipped
with an integrated activity monitoring
system. This system allows isokinetic
samples to be taken and can also be
used to measure the volumetric flow
and continuously monitor and control
the waste air for radioactive particles
such as tritium or C14. MAN Ferrostaal
also installed all the new instrumenta-
tion and control equipment for the
ventilation systems. All the on-site
work was carried out exclusively by
personnel who had received special
training in radiation protection.

14
ForUm
MAN Ferrostaal takes over plant
constructor Koch de Portugal
THE ECHO August 2007
Companies who wish to compete on the international stage must ensure
that they are constantly enhancing their know-how and finding healthy
growth opportunities. By purchasing the well-known plant constructor Koch de
Portugal Lda., not only was MAN Ferrostaal able to gain a stronger knowledge
base in the projects segment, but Koch de Portugal can now also benefit
from membership of the MAN Group. Prior to the purchase, the company
had three owners, the majority shareholder being Koch Transporttechnik
GmbH. The purchase agreement was signed on March 26, 2007.
Koch de Portugal has been viewed as one of the leaders
in power plant engineering expertise for over 25
years and enjoys an excellent reputation in the industry.
The 130 employees of the Lisbon-based company,
which also has premises in Saarlouis, specialise in planning
and managing large-scale industrial projects. In this connection,
Koch de Portugal deploys both conventional and alternative
technologies. The company builds diesel, gas and
steam power plants, solarthermal power plants and plants
for petrochemical products and for producing biofuels.
It is mainly in the latter three areas – and particularly in the
booming renewables sector – that the Portuguese wish to
benefit from cooperation with MAN Ferrostaal. For example,
Koch de Portugal provides engineering and construction
services, supplies heat recovery boilers as well as several
main and secondary plants and looks after assembly and
start-up operations. The company is recognised as a highly
professional EPC contractor. Similar to MAN Ferrostaal,
Koch de Portugal operates in international consortiums and
is also involved in helping to fund certain projects. There
are obvious synergies in the approaches of both companies
and these will come into play in future project acquisition
and implementation.
Lothar R. Somborn, Dieter W. Frank and Jean Claude Hecht,
Managing Directors at Koch de Portugal, report directly to
the MAN Ferrostaal AG Executive Board. Cooperation with
the individual MAN Ferrostaal business units takes place as
required within the various projects. For instance, one focus
will be on the construction of solarthermal power plants.
In association with partners, MAN Ferrostaal has completed
the construction of a preliminary pilot plant in the Spanish
city of Almería that operates on the basis of cost-effective
Fresnel technology. The Essen-based group can now call on
the support of Koch de Portugal for future projects.
15

16
ForUm
Locations where Koch de Portugal is strong: Nigeria, Iran, Jordan, Mauritania,
Syria, Brazil, Argentina, Venezuela, Thailand, Malaysia.
By teaming up with MAN Ferrostaal, Koch de Portugal has
expanded its horizons not only in terms of product range
but also in geographical terms. Hitherto, the legendary Portuguese
spirit of adventure and discovery has brought the
company to Nigeria, Jordan, Mauritania and Syria. Moreover,
Koch de Portugal has experience operating in Brazil,
Venezuela, Thailand and Malaysia. Koch de Portugal is currently
working with MAN Ferrostaal on projects in Iran, Venezuela
and Argentina. But even in its home country of Portugal,
with the assistance of MAN Ferrostaal, the company
has set its sights on new markets – plants processing bioethanol
for fuel being one example.
On a number of different levels, this leads to win-win scenarios
for both companies, whereby each benefits from the
excellent reputation of the other. There have already been
direct and indirect relations between Koch de Portugal and
MAN Ferrostaal for quite some time.
Koch de Portugal holds excellent credentials. For instance,
the company constructed the first gas-steam turbine power
plant in Portugal at the end of the 1990s. Some prestigious
recent projects include the construction and putting
into operation of the large-scale Ribatejo power plant, which
was completed in 2006 and is located some 30 kilometres
from Lisbon. It has an output of three times 400 megawatts.
Koch de Portugal carried out this project, which was commissioned
by the Portuguese electricity concern Termoeléctrica
do Ribatejo S.A. in a consortium with Siemens. The
project was worth around 500 million euros, with Koch de
Portugal responsible for roughly half this amount.
The customer’s expectations as to quality and results were
greatly exceeded at Ribatejo. The performance test for the
final unit took place three months ahead of the agreed deadline.
Furthermore, the Ribatejo team received an award for
achieving two million accident-free man-hours. Appropri-
ate assignment of tasks and optimised workflow processes
ensured that the construction phase was a complete success.
The Ribatejo project provides some insight into the capabilities
of Koch de Portugal. A pronounced team spirit
along with a commitment to efficiency and quality are hallmarks
shared by Koch de Portugal and MAN Ferrostaal
alike.
Both companies are characterised by flat hierarchies, short
communication channels and sophisticated quality management
systems. Koch de Portugal has been officially EN
ISO 9001:2000 certified since June 2007. The necessity for
the company to receive its own certification arose after it
separated from the “mother company”, and it was obtained
within 6 months. Koch de Portugal also holds Boiler and
Pressure Vessel Code certification from the American Society
of Mechanical Engineers (ASME). The “ASME” code is regarded
as the leading set of regulations for pressure equipment
and components. The certificate also allows Koch de
Portugal to construct boilers on assembly stands. Management
is also endeavouring to obtain safety area certification
in the next few months.
The employees of both Koch de Portugal and MAN Ferrostaal
view the merger in a very positive light. In the case
of Koch de Portugal, it provides the company with an opportunity
to expand its core business with the support of a
strong partner. Against a backdrop of healthy growth rates,
management is already considering recruiting new employees.
MAN Ferrostaal not only benefits from the expertise
and reputation of the Portuguese company, but can also
supplement its pool of highly qualified specialists. Given
the current shortage of qualified engineers on the labour
market, this is a very positive factor. The combined experience
of Koch de Portugal’s employees can be directly integrated
into the day-to-day business of MAN Ferrostaal.
THE ECHO August 2007
Ribatejo – a schedule for success
March 2002 Setting up of construction site begins.
May 2002 Construction work commences on the twin cooling towers for the first two power plant
units.
December 2002 Gas turbine, steam turbine and condenser arrive. At the now almost fully equipped power
house, the 370-tonne crane is firmly fixed in place and waits for assembly to begin.
March 2003 At peak periods, up to a thousand employees are at work on various tasks. The demineralisation
and coolant water systems are virtually completed; the trickle system and
ventilators are installed at the cooling tower. The heat recovery boiler is also fitted out internally:
when completed, this will include 40 kilometres of closely entwined piping in just one
boiler.
May 2003 The heat recovery boiler stack gradually rises to its final height of 75 m.
September 2003 All construction work on the cooling towers, heat recovery boiler, power house, coolant water
system and other functions for unit 1 have been completed. The gas turbine is ignited on
September 5, and the first 16 megawatts of electricity enter the grid a week later. Commissioning
of the steam turbine also proceeds smoothly
December 2003 Unit 1 of the Ribatejo power plant is operating at full power.
Unit 2 is on the verge of completion.
March 2004 Current operator Companhia Portugesa de Produçã de Electricidade, S.A. (CPPE) opts for
unit 3. The objective is completion by the end of February 2006.
April 2004 On April 20 at an inauguration ceremony, Dr. José Manuel Durão Barroso, the Portuguese
Prime Minister, sets the first of the three power plant units into operation.
October 2004 Unit 2 of the power plant has a problem-free start to commercial operations.
July 2005 The gas turbine of unit 3 is ignited on July 18 and the warm commissioning phase begins.
As early as August the first 80 megawatts are dispatched to the grid during purging of the
steam pipeline.
September 2005 Unit 3 is connected to the grid at full output.
POWER magazine (July/August issue) nominated the Ribatejo power plant as one
of the “Top Plants 2004” worldwide.
17

18 THE ECHO August 2007
19
maN PlatForm
One face to the market
One face to the market – that is the motto of MAN’s new internationalisation
strategy. In future, the national representations of all the subgroups
are to be united under one roof in so-called MAN Houses. In Latin America,
the Near and Middle East, Africa and South-East Asia, 19 such central contact
points for the group are planned. The MAN Houses represent globalisation
in practice for international customers and partners. Within the
framework of this internationalisation process, MAN Ferrostaal plays a
leading role as mediator, organiser and contact partner.
In future, the MAN Group wants to bundle its forces and
make use of synergies. Where previously the individual
subgroups acted separately, central addresses will be
created to gather all the subgroups in one building. “The
MAN Houses are a visible sign of the strength of our group
and the door into the product world of the whole group,”
says Martin Everding, responsible at MAN Ferrostaal for the
new MAN Sales and Service Platform. The pioneers of this
concept, apart from MAN House Mexico, are the MAN
Houses in Dubai and Beijing, opened in June this year. The
MAN Houses offer innovative, holistic concepts from one
source and, in this way, increase the level of service for the
customer. At the home base, MAN is a consulting partner,
not just a seller of products and industrial services. In this
way, the group generates added value for the customer.
More than a new office
The MAN Middle East FZCO has leased one floor of a modern
office complex in Dubai. These new premises are much
more than just a new office – they form the MAN House
Dubai. It is to become a sales hub for MAN Nutzfahrzeuge
in the region. While MAN Nutzfahrzeuge takes care of the
delivery of buses and trucks, MAN Ferrostaal will control its
sales and service. The regional representations of MAN
TURBO and MAN Diesel have already moved into the MAN
House Dubai.
Customers from Oman at the opening celebration
Laying of the foundation stone for a new aluminium foil rolling mill:
Thomas Buschmann, Manager of the MAN House Beijing, and Hu Jun, President of Kunshan Aluminium
Central address in China
In China, the MAN Group can look back on a tradition of
more than a hundred years. In the capital Beijing, all four
subgroups have moved into a shared building. The MAN
House Beijing is the central address for MAN’s business activities
in China. In Changchou, 150 kilometres south of
Shanghai, MAN TURBO is currently building a service workshop
for turbomachines, in which up to 300 jobs will be created.
MAN Nutzfahrzeuge operates a Trucknology Centre in
Beijing.
MAN Ferrostaal as forerunner
With its international networks and intercultural experience,
MAN Ferrostaal is serving as a forerunner for the other
MAN subgroups in foreign countries. “With our structures,
facilities and know-how, we create a basis for important
business transactions. For example, if MAN Diesel
wants to send an employee to Argentina, we take care of all
the organisational matters,” says Martin Everding. The internationalisation
concept promises a clear presentation
of the brand and a sustained improvement in the market
presence of MAN as a group. “Thanks to the work of the
MAN Houses, the whole group will be better perceived
abroad,” says Everding. The first MAN House opened in
2006 in Mexico City. The openings of the Houses in Beijing
and Dubai represent two important milestones in MAN’s
internationalisation strategy. Three more events are coming
up at the end of 2007. That is when the MAN Houses in
Lima, Kuala Lumpur and Jakarta officially open their doors,
to be followed at the beginning of 2008 by Teheran and
Moscow. The opening of a series of other MAN Houses is
planned by the end of 2008 under the coordinating management
of MAN Ferrostaal.

20
maN PlatForm
“We have a good
reputation in the region”
MAN AG is bundling the competences of its subgroups in the Middle East
and, in this way, is taking advantage of the synergies in a prosperous economic
area. The new MAN House in Dubai serves 16 important countries
and is a valuable contact point for every business partner in the Middle East.
the next few years, we shall be at full stretch. At
the moment, we are working on various lucrative
“For
projects in countries like Oman, Saudi Arabia and
Qatar. These are certain to be followed soon by a number of
others. Our diversified product range fits the Arabian region
very well,” reports Alexander Smola, General Manager of
MAN Middle East Freezone Company (FZCO) and Manager of
the MAN House in Dubai. The 53 employees in this boom city
of the United Arab Emirates serve some of the most important
growth markets for MAN AG in the Near and Middle East.
The new premises at Dubai Airport are more than just a new
office building for the MAN Middle East FZCO, founded in
2006 by MAN Nutzfahrzeuge and MAN Ferrostaal. The new
MAN House generates synergies for the whole group. Instead
of acting separately in the region as has been the case up to
now, the MAN subgroups can now combine their forces more
effectively.
Highly professional local partners
Due to its high investment volume, the Middle East is par-
The MAN House offices in Dubai
THE ECHO August 2007
ticularly attractive to the MAN Group. The local cooperation
also works very well, as Alexander Smola reports: “Our partners
in the Arabian region have a very holistic setup and
work extremely professionally. We have gained a good reputation
in the region with what we have already achieved
here. Therefore MAN has, for example, become the leading
truck manufacturer in many markets”. In order to get employees
qualified, there are training schemes in Dubai, special
courses in Germany and even a mobile training truck.
Largest single investment on the Arabian Peninsula
Among MAN Ferrostaal’s activities in the region, the construction
of the methanol plant MO3000 in Oman is at
present one of the most prestigious projects. This plant, with
an investment volume of about 400 million US dollars, is currently
the largest single investment on the Arabian Peninsula
and is planned to produce over a million tonnes of methanol
per year. Its completion is scheduled for the third quarter
of 2007. The customer is the Oman Methanol Company
LLC (OMC).
Restructuring of dubai’s local transport
In addition to this, MAN Middle East supplies practically the
complete range of MAN commercial vehicles, also including
special vehicles like airport buses, fire service vehicles and
catering vehicles. MAN is profiting from the complete restructuring
of local public transport for the expanding metropolis
of Dubai, with its population of 2.6 million: the city
has ordered 400 Neoplan buses, the majority of which are
to be delivered in 2008. The order volume is in the three-figure
million range. Dubai also covers the entire range of MAN
Ferrostaal activities in the region. Altogether, MAN’s activities
for 16 rapidly growing markets are controlled from Dubai.
Moving Middle East
The opening celebration of the MAN House managed by
MAN Ferrostaal took place on June 17 with the motto “Moving
Middle East”. The new group representation in Dubai is
situated in the Dubai Airport Freezone. There are three different
free trade zones in Dubai at present: the Jebel Ali
Freezone, the Dubai Airport Freezone and the Dubai Technology,
Electronic Commerce & Media Freezone. A subsidiary
in such a zone offers foreign investors an opportunity
to found a subsidiary of their own without the local participation
usually required in the United Arab Emirates. An
FZCO in the United Arab Emirates is deemed not to be a regional
subsidiary, but a legal person with its own legal personality
and is comparable with a GmbH (comparable with
a limited company). The MAN Middle East FZCO sees itself
as primarily responsible for the Arabian Peninsula, as well
as for a few states in neighbouring regions, North and East
African countries, for example, and the Caspian region.
Further information about the MAN House Dubai is avail-
able at www.man-middleeast.com.
21

22
maN PlatForm
Over a century
of MAN tradition in China
There is hardly another country in the world with a
faster growing economy than China: its gross domestic
product grew by 10.6 per cent in 2006. Similar figures
are to be expected for 2007. The MAN Group wants to
take advantage of this enormous potential and to improve
its position in the Chinese market. So, in June, with the motto
“We are committed to China”, the new MAN House in the
capital Beijing was opened.
The MAN Group can look back on a long tradition in China.
The group has been delivering high-quality technical products
and services to Chinese industry for more than 100
years. This business is to be expanded in future. Thomas
Buschmann, spokesperson for the new MAN House and
Manager of MAN Ferrostaal in Beijing, has great expectations
for the facility: “I hope that, through a regular exchange of
information and by acting together, we can develop new
business potentials and intensify our contact with our customers
and partners”.
Symbolic handover of the key
At the opening ceremony on June 7, MAN Board Member
and CEO of MAN Ferrostaal, Dr. Mitscherlich, handed over
the symbolic key to Thomas Buschmann. More than 200
guests attended the ceremony and celebrated the new Beijing
MAN House. The Chinese press also showed great interest
in the event.
New Trucknology Centre
The Chinese market really does offer great opportunities for
the group. Only last year, MAN strengthened its commercialvehicle
business by opening a Trucknology Centre near Beijing
Airport. This service centre for commercial vehicles is
designed according to the most modern international spec-
Ultra-modern: the new MAN House in Beijing
THE ECHO August 2007
At the opening ceremony on June 7, the CEO of MAN Ferrostaal, Dr. Matthias Mitscherlich, delivered the opening address to more than 200 guests.
ifications and sets new standards for similar facilities in the
Asian region. At the beginning of 2007, the licence agreements
with local partners for the construction of MAN Diesel
two-stroke engines were also extended and an additional
licence agreement was concluded. And in Changzhou, in
the province of Jiangsu, MAN TURBO constructed a production
and service unit.
Local specialists
The new MAN House in Beijing contributes greatly to facilitating
the work of the group in China, says Thomas
Buschmann: “When someone becomes aware of us for the
first time or wishes to extend their existing business contacts
with us to other areas of business, they only have to approach
one central location. When someone comes to us,
they are supplied with qualified information on the various
possibilities of cooperation. If more details are needed, the
specialists from the different subgroups take over”.
MAN Ferrostaal brings partners from China and other countries
together and, in order to promote sales to China, has
“We are committed to China” was the motto of the opening ceremony:
MAN has been supplying the Chinese industry for more than 100 years.
for many years cooperated with high-profile machine constructors
like Achenbach Buschhütten, Schuler and the
Swiss firm ERNST GROB AG. In view of the tangible improvements
in quality, the collaboration with Chinese suppliers
and service providers from various branches of industry for
the supply of other MAN Ferrostaal markets will be greatly
extended in the future.
You will find the homepage of the MAN House Beijing at:
www.man-china.com.
23

24 THE ECHO August 2007 25
ProjECtS
Record investment in Trinidad

26 DAS THE ECHO JULI/2007 August 2007
27
ProjECtS
Economic boom
in the island state
MAN Ferrostaal is currently working on a billion-dollar contract for
Methanol Holdings Trinidad (MHTL). On this Caribbean island, the
company is constructing a plant complex for the production of fertilisers
and melamine. It consists of seven different plants and represents an
investment volume of 1.5 billion US dollars – the largest purely private
investment on the island to date.
From 2009, in the new petrochemical complex in
Trinidad, 4,300 tonnes of liquid fertiliser and 180
tonnes of melamine will be manufactured daily. At
two nearby ports, the two products will be loaded on to
tanker or container ships and exported – mainly to the USA
and Europe. The source material, natural gas, with which
the plants will be supplied, is present in large reserves off
the coast of Trinidad. A number of private and state enterprises
will extract the gas and supply it for the petrochemical
industry, for gas liquefaction, for the steel industry and
for the island’s power generation. On the basis of today’s
total consumption, the verified and surveyed reserves will
last for about 50 years – not counting newly discovered and
suspected gas fields.
For the new petrochemical complex, MAN Ferrostaal is responsible
for the complete construction of the seven plants,
that is, for the engineering, the delivery of all components
and the assembly. The company undertakes the guarantee
for punctual completion and adherence to costs. Since all
the plants constructed in Trinidad to date by MAN Ferrostaal
have been completed within the planned time and
budget, in some cases even before time, the prospects for
successful progress in the project are good.
The construction time for the whole industrial complex is
set at 34 months. The first section of the plants, in which
ammonia will be produced, should be completed and ready
to start production after 28 months. Construction of the
second section of the plant complex, the plant for the manufacture
of UAN (urea and ammonium nitrate) and two
melamine plants, will then be completed by 2009. Melamine
is a powder that is further processed to produce melamine
resins. These resins are primarily used for surface finishing
in the automobile and furniture industries and as
an adhesive in the wood industry.
Greater value creation in the country
The new plant complex is very important for the operating
company MHTL, as it will extend its range of products.
Whereas its activities have hitherto concentrated on the
production of methanol, melamine and UAN represent a
much greater added value for the source material natural
gas. This is good, not only for the firm, but also for the
country, since, with the increasing creation of value, additional
jobs are also created.
The new plant complex is an important step in Trinidad’s
progress to becoming an industrial nation. Trinidad & Tobago
wants to officially achieve this status by 2020. While
in the 70s the country mainly supported upstream industry
(which concentrates on the extraction of mineral oil and
natural gas), the focus has now moved to downstream
NH 3
NA
Urea
UAN
Downstream expertise
H 2
AN
Melamine
AUM
MEOH
Formaldehyde
DME
MTO
M to power
industry (in which the natural gas is processed and refined),
for this is much more profitable for the country.
With this plant complex, MAN Ferrostaal is also expanding
its own product range. While, in the field of petrochemicals,
the company previously mainly constructed plants for the
manufacture of ammonia, methanol, fuels and basic chemicals,
the two basic materials fertiliser and melamine have
now been added. In 2006, in order to realise this step, MAN
Ferrostaal had acquired the Italian-Luxembourg firm Eurotecnica,
a company that possessed the only licence available
at the time for the production of melamine.
Natural gas
GTL
Acetic acid
MTG
Fuel cell
(Only C 2 ethane)
LNG Ethylene
Polyethylene

28
ProjECtS
Natural
gas
AUM ammonia plant
1,850 t/d NH3 and 2,270 t/d CO2
839 t/d NH3
903 t/d NH3 and
1306 t/d CO2
426 t/d NH3
Urea solution
plant
2,076 t/d urea
as 70% solution
106 t/d NH3 and 8 t/d CO2
The structure of the new plant complex
The structure of the plant complex follows the intensity of
the added value. Its construction is carried out according to
state-of-the-art environmental and safety guidelines. From
the raw material natural gas, ammonia (NH3) is first recovered.
This, together with the carbon dioxide (CO2) also produced,
is then converted to urea solution ((NH2)2CO). Urea
is the source material for both fertiliser and melamine. In
the UAN plant, nitric acid (HNO3) is first produced from ammonia
and atmospheric oxygen. In a second process step,
this is neutralised with ammonia, producing ammonium ni-
Nitric acid plant
1,500 t/d (100%)
2,500 t/d (60%)
413 t/d NH3
Off solution,
equivalent to 280 t/d NH3,
230 t/d CO2
and rest water
576 t/d urea
as 70% solution
1,500 t/d
nitric acid
as 60% solution
Melamine plant 1
90 t/d Melamine
UAN plant
Ammonium nitrate
solution plant
1905 t/d (100%)
1,500 t/d urea as 70% solution
Melamine plant 2
90 t/d Melamine
trate (NH4NO3). This is then mixed with the urea solution
to make UAN, one of the main products of the plant complex.
UAN is characterised by a high content of nitrogen (typically
32 per cent by weight).
The second plant section is used for the manufacture of
melamine. From a chemical point of view, melamine has a
relatively simple structure. Here, “only” pure urea, recovered
from the thickened urea solution from the urea plant, reacts
under pressure and temperature to form melamine. Ammo-
1,905 t/d
AN as 91%
solution
THE ECHO August 2007
UAN mixing tank
4,274 t/d (UAN 32)
UAN-32 solution
Melamine powder
Cold ammonia
Normal 4,274 t/d
Design 4,300 t/d
Normal 180 t/d
Design 180 t/d
Normal 0 t/d
Design 1,850 t/d
nia and carbon dioxide are added to the process in small
quantities for regulation of the chemical balance and for purification
of the reaction product. A feature of Eurotecnica’s
melamine process is that all the ammonia and carbon dioxide
produced in the reaction and added to the process is returned
to the urea process as input material. The technical
process behind this, however, is very complex.
29
Chemical manufacturing processes
AMMONIA MANUFACTURE
KAAP Process (KBR, USA)
(Pressure = 90 barg and temperature = 400 °C)
3 H 2 + N 2 2 NH 3 + heat of reaction
UREA MANUFACTURE
ACES21 Process (Toyo Engineering Corporation, Japan)
(Pressure = 150 barg and temperature = 180 °C)
2NH 3 + CO 2 (NH 2 ) 2 CO + H 2 O - heat of reaction
UAN MANUFACTURE
A) NITRIC ACID MANUFACTURE
Dual Pressure Process (Uhde GmbH, Germany)
(Pressure = 4–6/10–12 barg and temperature = 890 °C)
(I) 4 NH 3 + 5 O 2 4 NO + 6 H 2 O
(II) 2 NO + O 2 2 NO 2
(III) 3 NO 2 + H 2 O 2 HNO 3 + NO
b) AMMONIUM NITRATE MANUFACTURE
Vacuum Neutralisation (Uhde GmbH, Germany)
(Pressure = 0.35 bar abs. and maximum temperature = 145 °C)
NH 3 (gas) + HNO 3 (aqueous)
NH 4 NO 3 (aqueous) + heat of reaction
C) AMMONIUM NITRATE-UREA SOLUTION (UAN)
Mixing Unit (Uhde GmbH, Germany)
Ammonium nitrate solution + urea solution UAN
MELAMINE MANUFACTURE
Non-Catalytic Process (Eurotecnica, Italy)
(Pressure = 80 barg and temperature = 380 °C)
6 (NH 2 ) 2 CO C 3 H 6 N 6 (Melamine) + 3 CO 2 + 6 NH 3 - heat
of reaction (return of NH 3 and CO 2 to the urea plant)
H
N +
H H
H
H H
O
C
N
H
H2 N NH 2
O
N +
- O OH
+ O -
N
N
O O
2 HN-C C-NH 2
N N
C
NH 2

30 THE ECHO August 2007
31
ProjECtS
Products and Markets
Distillation columns of a methanol plant
The demand for fertilisers is developing disproportionately
to the growth in population. The faster the population
grows (currently approximately 1% per year), the greater the
demand for food and the more that has to be grown. On top
of this, there is the increasing prosperity that, in many
countries, leads to an increased consumption of meat and
so to more intensive cultivation of feed crops. The rule of
thumb here is that the consumption of meat takes ten times
as many plants for feeding the animals as the consumption
of a vegetarian diet. Both these developments taken together
result in a sharp rise in the demand for fertilisers. In many
countries, the effect of state support for the production of
biofuels such as biodiesel and bioethanol is also an increase
in demand in the fertiliser market.
UAN currently has a share of about 15% of the market for nitrogen
fertilisers. The reason why the share is still relatively
small is that UAN is a liquid and, in most cases, can therefore
only be applied where irrigation systems already exist.
Urea, on the other hand, an intermediate product of the
plant and also a fertiliser, is a solid and can be applied without
an irrigation system. In the long term, it may be anticipated
that the market share of UAN will grow as the modernisation
of agricultural production processes in emerging
and developing countries increases, for liquid fertilisers can
also be mixed with other substances, such as pesticides,
thus reducing the number of applications required. Climate
change is also leading to an increase in the use of irrigation
systems, as many areas are suffering from reduced rainfall
in the summer.
Over three-quarters of the worldwide production of UAN (16
million tonnes per year) are sold in the USA and France. The
largest buyer is the USA. But the demand from Australia and
Argentina is currently growing very quickly, even if from a
low base level. The largest exporter of UAN is Russia. There,
the gas price has up to now been relatively low, so the manufacture
of UAN is cheap. In the USA itself, the supply can
be expected to fall in the years to come. Some of the production
plants are being closed due to their age, and the construction
of new plants is unlikely because of the high
price of gas. Part of this gap is to be filled by the new plant
in Trinidad.
ProjECtS
Versatile in use
Melamine resins are resistant to UV light, fire, water, impact
and scratches and are therefore suitable for a wide range of
surface finishes. Melamine resins are important for the
wood and furniture industry. In the production of laminate
flooring, for example, the actual floor surface is melamine
resin. It is also frequently used in the wood industry as an
adhesive. Melamine resins also have high electrical resistance,
so they are used as insulating elements in the electrical
industry. The textile industry also makes use of resins to
make textiles resistant to water and creasing. In the automobile
industry, the resistance of melamine to water, scratches
and impacts is valued, especially in the paints sector.
Melamine is used for surface finishing.
The demand for melamine is currently a little over a million
tonnes per year and is rising, on average, at an annual
rate of about six per cent. Against this background, the demand
is expected to double by the year 2020. The plant in
Trinidad is intended to serve both the US American and the
European markets. For the US market, melamine from
Trinidad is attractive because US production plants have
had to be closed because of the high price of natural gas.
The low manufacturing costs in Trinidad also make the
product interesting for the European market. Neither does
the construction of new melamine plants in China (some
on the basis of a licence from Eurotecnica), the United Arab
Emirates or Qatar make much difference here. While the
gas prices are also low there, export from Asia or the Near
East is less attractive because of the high transport costs.

32 THE ECHO August 2007
33
ProjECtS
Urea
Ammonia
Gas
Heat
Exhaust gas
condensate
Reactor Cooling CO2
wash
Hydrolysis
Burner
Condenser
Fresh water
Melamine technology
The process for the production of melamine
used in the new plant in Trinidad
comes from Eurotecnica, a firm based
in Luxembourg and Milan. Altogether,
about a third of the world production
of melamine is based on licences from
Eurotecnica. This one-step process
Cleaning Crystalliser Melamine
separation
Ammonia
Ammonia
column
which works without catalysts is characterised
by high reliability. In the 70s,
Eurotecnica used a licence from the
American company Allied Signal to
construct its first melamine plant. After
acquisition of the patent rights
from Allied Signal, Eurotecnica extend-
Water
flow
By-product
separation
Melamine
drying
Water
treatment
Melamine
Wastewater
ed and improved the process. In 2006,
MAN Ferrostaal acquired Eurotecnica
and integrated it into its own activities.
Parts of a methanol plant in Trinidad
Cooperation with partners
Since the completion of the first methanol plant in 1993,
MAN Ferrostaal has now constructed five more ammonia
and methanol plants in Trinidad. In 2009, when the new
plant complex is to be completed, the number of plants
built by MAN Ferrostaal in Trinidad will have risen to 13 –
within 16 years.
With this new plant complex, MAN Ferrostaal is continuing
a close collaboration with partners of many years’ standing.
The construction and assembly work is undertaken by Proman
AG, a firm based in Trinidad. The most important partners
for the engineering are Uhde, Toyo, Eurotecnica and
KBR, which are also the technology providers for important
components. The finance has been raised with the help of
the Kreditanstalt für Wiederaufbau (the German state-owned
development bank, KfW) and Hermes. Another important
partner is the National Gas Company (NGC) in Trinidad,
which provides the gas. Long-term supply contracts exist between
the NGC and the MHTL, so the operating costs of the
plant complex, the greatest part of which is represented by
the gas, are easy to calculate. As in the case of previous
projects, there is a link between the price of natural gas and
the price of the finished products, which ensures that the
NGC profits from very high prices for the end products. The
plants are operated by the Trinidadian company IPSL (Industrial
Plant Services Ltd.), while the German firm Helm AG
looks after the product marketing in the USA and Europe.
Financing
With an investment volume of 1.5 billion US dollars, the new
plant complex represents the largest private investment in
the country. Of this, approximately 990 million US dollars
are covered by export credit guarantees, the order value for
MAN Ferrostaal amounting to 1 billion US dollars. The financing
of the complex is based, because of the high volume,
on a combination of elements of project and corporate
financing.
In the case of the first plant, which MAN Ferrostaal constructed
for the MHTL or its legal predecessor, CMC (Caribbean
Methanol Corporation), no third party securities
could be provided to the creditors. Therefore, the company
had to develop a very specific financing model. In order
to realise this, financing partners were needed who carefully
analysed the risks and chances of the project. In the end,
the financing was largely based on asset values yet to be
created and an anticipated future cash flow from operation
of the plant.
The basic conditions in Trinidad were right: a low natural
gas price, a geographically favourable position for the supply
of the major markets, Europe and the USA, low taxes,
non-existent customs barriers and qualified local manpower.
So, since MAN Ferrostaal’s first plant in Trinidad, the
Kreditanstalt für Wiederaufbau and Hermes have been on
board as credit guarantors. Since 1993, the first methanol
plant, like all the projects following it, has been operating
at a profit.
MAN Ferrostaal is also an investor, through its participation
in the operating company, and therefore has a great interest
in the reliable and profitable performance of the plant.
With this business model, in which the general contractor
becomes a partner, MAN Ferrostaal differs substantially
from most of its competitors.

34
ProjECtS
Liquid natural gas 56%
Methanol 15%
Natural gas use in Trinidad and Tobago in 2006
Ammonia 15%
Other trade &
industry 9%
Power generation 5%
Natural gas – the gold of the Caribbean
Natural gas is an extremely versatile resource which, in the
form of its key precursors ammonia, methanol and ethylene,
can be further processed into hundreds of different
end products.
It is frequently transported to other regions in the form of
liquid gas, where it is converted back into gas and then
used as fuel or as source material for the local downstream
Petroleum
Industry 39.3%
GDP generated in Trinidad and Tobago in 2005
industry. Nowadays in Trinidad, natural gas is mainly used
for liquefaction and subsequent export. This means, however,
that only a much smaller fraction of the value of the
natural gas is used for the benefit of the country than
might otherwise be the case.
In Trinidad, gas liquefaction plants (LNG – Liquid Natural
Gas) compete with petrochemical plants. Rampersad Motilal,
CEO of MHTL, fears that the liquefaction of gas and
its subsequent sale as LNG could restrict the availability of
natural gas for the petrochemical industry in Trinidad.
While he does not question the benefits of gas liquefaction
for the country, he believes that a strong petrochemical industry
would bring greater long-term benefits for the local
economy: “We believe that the revenue from petrochemical
plants is considerably more beneficial than that
from LNG plants, especially when the effects in the whole
value-added chain are taken into account”.
In actual fact, the results of the analyses are clear. An LNG
plant requires a similar level of investment as a fertiliser/melamine
complex, but consumes ten times as much
natural gas. On the other hand, the revenue which can be
generated from UAN, for example, assuming the same
Natural gas tanks
Agriculture 0.5%
Construction and quarrying 8%
Manufacturing industry 7.3%
Financal services,
real estate 14.3%
Other services 30.5%
THE ECHO August 2007
Jobs
Indirect jobs
Permanent staff
Sale price
in USD/MT
0
70
208
280
260
200 400 600 800 1000 1200
Liquid natural gas in comparison with the ammonia chain
MAN Ferrostaal has made a significant contribution to the positive economic development of the country with its investments.
1050
1000+
level of natural gas consumption, is several times greater
than the yield generated by liquid gas. The employment
situation should also be considered: in a petrochemical
complex such as the new UAN/melamine plant,
about three times as many people are employed as in an
Value added
in USD/mmBTU
Use of liquid
natural gas
in mmBTU/MT
Ammonia + Urea + Melamine Liquid natural gas
0
0*
4
13.5
*No additional use of gas, calculation of liquid gas consumption not possible because of the
product mix
LNG plant. This is not even considering the jobs which are
created indirectly. In the final analysis, the sustainable
benefits of the new plant complex for Trinidad‘s economy
are extremely positive.
52
10 20 30 40 50 60
35

BAHAMAS
36 THE ECHO August 2007
37
ProjECtS
Trinidad – the country and its people
The islands of Trinidad and Tobago form the Caribbean island
state of the same name. The climate is tropical, with
average temperatures of around 30 degrees. Unlike most
other Caribbean islands, Trinidad and Tobago lie to the
south of the hurricane zone. Nearly all of the population
speaks English, while Spanish is widely spoken as a second
language. Trinidad is the most industrialised island in the
Caribbean, due mainly to the extraction of mineral oil. Other
important sectors of industry include foodstuffs and
light industry for local requirements and supply of the
neighbouring islands. The service sector is characterised by
financial service providers such as banks and insurance
companies. The national sport on both islands is cricket.
Trinidad is also famous for its carnival, which is comparable
in size and colour to the one in Rio de Janeiro. The national
musical instrument is the steel drum.
14,000
12,000
10,000
8,000
6,000
4,000
2,000
3,487
3,123
GDP per capita (in USD)
2,656
2,164
3,654
4,789
2004 2005
5,427
4,354
10,509
12,625
Cuba Colombia Brazil Venezuela Trinidad
History
CUBA
JAMAICA
Originally colonized by Spain, the islands came under British
rule at the beginning of the 19th century. The sugar industry
on the islands was dealt a severe blow by the liberation
of slaves in 1834. Between 1845 and 1917, these were replaced
by contract workers from India, leading to a boom
both in sugar production and in the cocoa industry. With
the discovery of oil on Trinidad in 1910, a further important
export commodity was added. Trinidad gained its independence
in 1962. Primarily thanks to the production and
processing of mineral oil and natural gas, the country is now
one of the most prosperous of the Caribbean States. Tourism,
which is mainly concentrated on Tobago, is set for expansion
and continues to grow.
AREA: 5, 100 km 2
POPULATION: 1.3 million
POLITICAL SYSTEM: Parliamentary democracy
PRIME MINISTER: Patrick Manning
GOvERNING PARTY: People’s National Movement
The foreign relations of the country are stable
OFFICIAL LANGUAGE: English
INDUSTRY: Oil and gas industries
(main source of revenue),
foodstuffs, services
ANNUAL RATE OF GROWTH: 7.5% on average
in the last 5 years
NATURAL GAS RESOURCES: About 19 billion cubic feet
have been confirmed; plus about
14 billion cubic feet of identified
and potential reserves
HAITI
Golf of Paria
VENEZUELA
DOM. REPUBLIC
The Caribbean
VENEZUELA
Caribbean Sea
Port-of-Spain
San Fernando
PUERTO RICO
Arima
Point Lisas
BARBUDA
ANTIGUA
TOBAGO
TRINIDAD
GUADELOUPE
MARTINIqUE
TOBAGO
The carnival in Trinidad is just as legendary as the one in Rio de Janeiro.
TRINIDAD
Atlantic Ocean

38
ProjECtS
Plataforma Solar de Almería, parabolic trough process in the background and Fresnel technology in the foreground
THE ECHO August 2007
Harnessing the sun
39

40
ProjECtS
Sunny days ahead for field trials
Fossil raw materials for power production are gradually running out. In
future, we will require renewable energy sources. Theoretically, the sun
alone can supply the whole world with energy. Just one per cent of the area
of our deserts, occupied by solarthermal power plants, would be sufficient
to meet the entire electricity needs of mankind. MAN Ferrostaal started the
test phase of a new solar power plant in Almería in southern Spain in July.
The new technology promises to be extremely cost-effective and is set to be
market-ready in two years.
Flat mirrors – the new generation of solarthermal power plants
THE ECHO August 2007
Arevolution is taking place in the energy market. Wind,
water and sun are the new shooting stars. According
to a study by the German Aerospace Centre (DLR),
Europe will be able to draw 80 per cent of its power from renewable
energy sources and reduce carbon dioxide emissions
by 70 per cent by the middle of this century. There is
a particularly bright future in store for solarthermal power
plants. “In the Mediterranean region, they could supply
twice as much power as all the wind, photovoltaic, biomass
and geothermal systems together,” says Jürgen Beigel who is
responsible for Solarthermal Power Projects at MAN Ferrostaal.
The Bank Sarasin, one of Switzerland’s leading private
banks, predicts rapid expansion. There are currently
about 50 solar power plants in operation worldwide. In the
coming ten years, the number is expected to rise to over
2,000. Government-sponsored environmental and energy
programmes are increasingly supporting solar power – so
rapid growth is also expected in the years to come. MAN Ferrostaal
is keen to take advantage of this enormous potential.
As a plant constructor, the firm is in a good position to exert
a major influence on the development of this market:
MAN Ferrostaal is not tied to specific technologies and possesses
all the know-how required for the construction of solar
power plants.
New technology for harnessing the sun economically
There is one specific problem in the production of large
quantities of electricity from solar energy: conventional
technology is very cost-intensive. With parabolic mirrors or
so-called solar towers, viable generation of electricity is
scarcely possible without subsidies at current market prices.
At present, solarthermally generated power is about 10 to
15 eurocents more expensive per kilowatt-hour than fossilgenerated
power. Photovoltaic units, common on the roofs
of houses, are unsuitable for producing electricity in largescale
power plants. MAN Ferrostaal is therefore pursuing a
new technology: In Almería, Spain’s sunniest city, the first
solarthermal power plant using Fresnel mirrors has been in
the test phase since mid-July. The pilot plant is 100 metres
long and 25 metres wide – the same size as a single typical
power plant collector module. On a mirror surface of about
1,500 m², it is planned that this will produce a megawatt of
thermal power. Fresnel technology, which shall demonstrate
its suitability for routine use in Almería, is characterised by
particularly low manufacturing costs as it works with flat
mirrors rather than curved or parabolic collectors. It is mainly
constructed using inexpensive standard components,
which are also available worldwide. Its operation is also relatively
inexpensive. MAN Ferrostaal is therefore expecting
the pilot operation, which is planned to last 18 months, to be
highly cost-effective. The aim of the plant is to show that
this method of power production is cheap and also to
achieve commercialisation of the Fresnel technology from
2009 onwards.
Partnership for success
MAN Ferrostaal brings essential experience in the construction
and operation of a wide variety of power plants to the
project, thus minimising the risks of an unfavourable development.
The pilot plant on the site of the Plataforma Solar
de Almería research centre was jointly constructed with
the German Solar Power Group (SPG), in which MAN Ferrostaal
owns a 25 per cent stake. SPG’s Fresnel concept has
proven itself, in two previous research and development
projects, to be an advanced and economically interesting
option for use in solarthermal power plants. The company
gained valuable experience at a Fresnel pilot plant in Belgium:
a 2,500 m² mirror panel was constructed and its design
continually improved over a number of years. Its stake
in SPG assures MAN Ferrostaal access to one of the most innovative
power production technologies currently available.
Both firms are now jointly pursuing the goal of making
the Fresnel collector suitable for use in commercial
steam power plants. The investment volume for the pilot
power plant is approximately 2.6 million euros. MAN Ferrostaal
is supporting the construction and operation of the
plant as both investor and project manager.
From field trial to proof
The scientific supervision of the pilot operation is being undertaken
by leading research facilities: the Fraunhofer Institute
for Solar Energy Systems and the German Aerospace
Centre (DLR). In this manner, an experiment-based validation
of the Fresnel concept can be attained. Reliable figures
41

42
ProjECtS
and data are a precondition for verification of promising future
prospects, thus helping to create confidence in the
technology on the part of future investors. On the basis of
measurements at the pilot plant, the Fresnel technology is
set to be further optimised, enabling it to be used as soon
as possible in large-scale plants. Various countries from the
Mediterranean region have already expressed an interest.
MAN Ferrostaal wishes to gradually develop this business
Opening ceremony for the pilot plant in Almería, Spain, in July 2007
area. However, for Jürgen Beigel, Executive Director Solar at
MAN Ferrostaal, other values also play a role: “Solar power
plants along the north coast of Africa can generate power
for the whole of Europe and create better living conditions
for the people of Africa,” he says, describing his vision.
“Moreover, environmentally friendly power generation also
advances the cause of climate protection – a good thing for
all of us”.
DAS ECHO August 2007
Suitability for solarthermal power plants: ■ excellent ■ good ■ suitable ■ unsuitable
“Solar power plants along the north coast of Africa can generate power for the whole of Europe,” says Jürgen Beigel, MAN Ferrostaal Executive Director Solar.
Solar power from the Fresnel collector
Fresnel technology, which is now being tested for the first
time under real conditions, is relatively simple in its production,
its construction and its operation. The mirrors which
capture and concentrate the sun’s rays are flat. Set up in a
line, they form long movable mirror arrays. Arranged in parallel,
they direct the radiant energy of the sun onto a pipe
which is located eight metres above the mirrors. This absorber
pipe contains water which is heated to temperatures of
up to 450 degrees Celsius. This generates steam which, by
means of a steam turbine, is converted into electrical energy
– in very much the same way as in a conventional power
station. Fresnel collectors are advanced in many respects:
they are not affected by wind and require less ground area
than previous solar collectors. For a demonstration of this
technology, Almería in southern Spain offers the best conditions
– it enjoys 3,000 hours of sunshine per year.
How Fresnel technology works
Sun rays
43
Secondary reflector
Primary Fresnel
reflector
Absorber pipe

44
ProjECtS
“Solar power will
become much cheaper”
Professor Robert Pitz-Paal, Head of Solar Research at the German Aerospace
Centre, on cost-effective solar power and power imports from Africa
Mr. Pitz-Paal, you predict a bright future for “Concentrating
Solar Power Technology”. What does that mean exactly?
Hold a magnifying glass between the sun and a sheet of paper
– you can start a fire like that. Concentrating Solar Power
Technology works similarly: solar radiation is concentrated
and, using mirror technology, such high temperatures
are generated at a focal point that the heat can be used, for
example, to drive a conventional steam turbine power
plant.
What technologies already exist for this purpose? How
do they differ from each other?
In the case of parabolic trough collectors, the concentrator
is a trough in the shape of a parabola, along the focus line
of which a pipe is heated. The new linear Fresnel systems
are closely related to these. They represent a simplified approach
– the parabolic trough is divided into slices, so to
speak, and arranged on one plane. Then we also have the socalled
tower power plants with central receivers. In this case,
mirrors are moved to follow the sun and concentrate the ra-
diation at the top of a tower equipped with a heat exchanger.
There is also a system with parabolic dishes fitted with a
radiation receiver at the focal point which passes the solar
energy directly to an interfaced engine. Collectors of this
type, however, can only generate a few tens of kilowatts.
That is not very much. Which technologies are suitable
for large-scale power plants?
Parabolic trough collectors are already relatively well established.
They have been used commercially in the USA since
the mid-80s. Early this year, the first commercial tower power
plant went into operation, a 10 megawatt plant in Seville.
All the other technologies are still in the pilot phase – we
can’t really speak of commercial use yet.
What does the economic viability of solarthermal power
plants depend on?
One essential factor is the location – the incident solar radiation
which occurs there. The more radiation, the better. The
differences are great. In Germany, solar radiation is not even
THE ECHO August 2007
half as high as in southern Spain. In the Californian desert
it is another thirty or forty per cent higher - three times as
high as in Germany in other words. That makes power generation
much cheaper. Another important factor is the size
of the solar power plant. The larger the plant, the more viable.
And then, of course, the technology is also crucial - it
has to be as inexpensive as possible while nevertheless being
efficient. If higher temperatures can be achieved at lower
cost, the viability can be increased. That is exactly the aim
of Fresnel technology.
How realistic are solar power plants in Africa? The sunshine
is very reliable there.
There have already been invitations to tender in various African
states. In Algeria, construction of the first power plant
is just starting. Morocco and Egypt will probably conclude
contracts this year. The potential in North Africa is enormous.
There are really large open spaces there, with very
high radiation combined with a rapidly growing demand
for energy. Particularly in the case of Africa, it is important
that solar technology be developed quickly and for it to
become competitive. This is due to the fact that in Africa,
unlike here, there are very few subsidies for regenerative
energy.
If we bundle solar power generation for Europe in that
region, are we not making ourselves as dependent in future
on the sunny countries of Africa as we now are on
the oil states?
No. The DLR has carried out a series of studies. The scenarios
assume that, by 2050, about 15 per cent of our energy requirements
can be covered by solar imports from Africa and that
the remainder will largely be directly generated in Europe using
our own renewable resources. Today we are still 60 per
cent dependent on imports.
But renewable resources are still relatively expensive to
produce, so there is little demand. According to dLR forecasts,
production costs for solarthermal power plants will
be halved by the year 2020. How will this be achieved?
The Scientific Advisory Board to the German Federal Government
estimates that, by the end of the century, energy requirements
will mainly be met by solarthermal power plants.
By the mass production of components, by the construction
of very large plants and by the achievement of better
efficiency by means of higher temperatures – for example
by direct steam generation using Fresnel technology – and
by the integration of large thermal energy storage units. All
of these factors are already feasible. But until we have reached
that stage, we will be dependent on subsidised markets.
do firms who invest now have to accept that they will
make losses in the initial phase?
I think not because, fortunately, there are feed-in tariffs and
other incentives. The market introduction of solar technology
has political support, the additional costs for renew-
able energies in Spain and Germany, for example, are borne
by all power consumers – an essential mechanism which
costs the individual citizen very little but which will benefit
national economies in the long term, as prices for fossil
fuels are rising.
Example of the global energy
mix in 2100
Primary energy use (exajoules per year)
1600
1400
1200
1000
800
600
400
200
0
Geothermics
Other renewables
Solar collectors
Solarthermal power plants
and photovoltaic units
Wind
Biomass (modern)
Biomass (traditional)
Hydropower
Gas
Coal
(Source: Wissenschaftlicher Beirat der Bundesregierung für globale Umweltveränderungen
– Scientific Advisory Board to the German Federal Government on Global Environmental
Change – 2003)
Oil
45

46 THE ECHO August 2007
47
ProjECtS
Solar Millennium and
MAN Ferrostaal found
joint venture
MAN Ferrostaal and Solar Millennium AG, Erlangen, are combining their
forces to construct solarthermal power plants. MAN Solar Millennium is
the name of the joint venture company founded in May for the construction
of solarthermal power plants, in which both companies hold a 50 per
cent stake. The aim is to establish the joint venture as the world’s leading
supplier of solarthermal power plants.
As a project developer and a provider of technology,
Solar Millennium possesses technology which is already
in commercial use and holds many years of
experience in the development of solarthermal power
plants. MAN Ferrostaal, as plant constructor and general
contractor with financial expertise, is in a position to realise
large-scale power plant projects. Solar Millennium and
MAN Ferrostaal are combining their know-how in the development
and construction of large-scale solar plants in a
common company.
In Spain, Solar Millennium developed the very first parabolic
trough power units in Europe and two plants based
on this technology are already under construction. Further
projects with an output of several hundred megawatts are
in the planning stage worldwide. Solar Millennium regards
the joint company as a continuation of its strategy of optimally
exploiting market potentials through cooperation
with strong partners in the respective business areas.
Through this joint venture, Solar Millennium is establishing
an additional business area along the value-added chain
involved in solarthermal power plants, thereby expanding
its know-how to the areas of power plant construction and
delivery. MAN Ferrostaal is contributing valuable experience
as a general contractor and plant constructor as well
as the requisite financial strength in international operations.
MAN Ferrostaal views the founding of this company as an
important step for the strategic realignment of the company.
Within the plant construction segment, the company
focuses on the areas of fuel and energy. Solarthermal power
generation plays a key role in this strategy as it is set to
become one of the strong growth markets of the future.
With the support of Solar Millennium, MAN Ferrostaal can
considerably shorten the time necessary to become established
in the solar market.
Share price development since IPO
Jul Sep Nov Jan
2006
Mar May Jul Sep Nov Jan
2007
Parabolic trough power plant in California
Mar May Jul
Solarthermal power plants have the potential to make a major
contribution to global energy supply in the future. Studies
have confirmed their huge market potential. In a study
commissioned by the Bundesministerium für Umwelt,
Naturschutz und Reaktorsicherheit (Federal Ministry for
the Environment, Nature Conservation and Nuclear Safety),
the Deutsche Zentrum für Luft und Raumfahrt (the German
Aerospace Centre, DLR) estimates that by 2050 solarthermal
power plants in the Mediterranean region will
be able to supply twice as much energy as wind, photovoltaic,
biomass and geothermal energy combined. Thus MAN
Solar Millennium is already meeting the challenge of future
energy supply head on.
40
35
30
25
20
15
10
Solar field Steam turbine
Storage unit
How a parabolic trough power plant works.
Solar
steam
generator
Condenser

48
Solar Power Group know-how: Fresnel collector with direct vaporisation
Stake in the
Solar Power Group
MAN Ferrostaal continues to expand its solar business.
Following the foundation of the joint venture with
Solar Millennium AG, the company has acquired 25 per
cent of the equity shares of the Solar Power Group GmbH
(SPG). The SPG, which specialises in the development of
technology and the engineering of solarthermal power
plants based on Fresnel technology, is the partner for a new
pilot plant in Almería, which was officially presented on
July 9, 2007. Of the four solarthermal technologies available
today, Fresnel technology is the least expensive to
manufacture and, from 2008, is set to be used commercially
in large-scale plants for the first time.
SPG has already constructed and operated two Fresnel test
plants and has advanced the technology greatly in recent
years. Dr. Wolfgang Knothe, Member of the MAN Ferrostaal
Executive Board and responsible for the company’s plant
construction business, regards the investment as a logical
step for the expansion of this business: “We are acting on
the basis that the solar sector will experience a major boost
to growth in the years to come. We are therefore entering
strategic alliances with technology leaders in the field of
solar energy and, by extension, are positioning ourselves
as a project developer and general contractor for the construction
of solar thermal power plants”. On the basis of
its worldwide organisation and its existing technology
partnerships, MAN Ferrostaal is planning to supply such
power plants in southern Europe, the Middle East, Africa,
Asia and America.
Regenerative energies and fuels play a major role in the
corporate strategy of MAN Ferrostaal. The company is
among the first globally active plant constructors to develop
and construct power plants for the generation of solar
power and plants for the production of biofuels. As in the
case of other sectors related to plant construction, the
company does not develop the technologies itself, but
works with leading technology partners for the joint realisation
of projects.
THE ECHO August 2007
The pilot plant is located in Europe‘s sun belt.
49

50
ProjECtS
The expanded Termozulia I power plant
THE ECHO August 2007
“A milestone in
Venezuela’s energy sector”
On June 16, Venezuela’s President Chávez opened the Termozulia I gas
and steam turbine power plant near Maracaibo after it had been expanded
by MAN Ferrostaal. For ENELVEN, state-owned customer and
operator of the plant, the power station represents a strategic milestone
in the energy supply of the country.
The prominent guest came from above. President
Hugo Chávez’ helicopter hovered over and finally
landed on the heliport especially constructed for the
official commissioning of the gas and steam turbine power
plant Termozulia I. From far away, he could already see the
giant Venezuelan flag flying over the plant. Once on the
ground, he was greeted by a red sea of supporters who had
travelled there especially for the occasion. In the course of
a comprehensive guided tour, the head of state had the
plant functions explained to him by the customer, stateowned
ENELVEN (Energía Electrica de Venezuela). He appeared
to be visibly impressed by its complexity. The President
allowed himself a good three and a half hours for his
opening speech and pronounced the plant to be “a milestone
for the energy sector in Venezuela”. The country was,
in his view, not only reinforcing its independence from previous
energy sources, which – as in the case of the hydroelectric
power plant on the Guri Dam, did not always work
reliably, but was also setting new technological standards.
Very special guest: Venezuela’s President Hugo Chávez arriving at the
plant. The head of state held a three and a half hour speech and praised
Termozulia I as a “milestone for the energy sector in Venezuela”.
51

Caribbean Sea
PANAMA
Panama
ECUADOR
Bogotá
Maracaibo
COLOMBIA
San Cristobal
Caracas
BRAZIL
VENEZUELA
Puerto Ayscucho
In actual fact, the Termozulia project was the first time in
Venezuela that a plant had been converted from an opencycle
to a combined-cycle power plant which, without addi-
PERU
tional fuel resources, achieved a much higher power output.
In combined-cycle plants, gas turbine and steam turbine
processes are combined. The finished plant feeds about 500
megawatts, instead of the previous 320 megawatts, into the
Venezuelan electricity grid. The total duration of the project
was 30 months. Up to 1,300 workers were employed on the
site, 90 per cent of whom came from the oil-rich region of
La Cañada. The local share of added value in the Termozulia
plant came in the form of 1,300 tonnes of steel structure,
470 tonnes of raw material and assembly of a total of 15,000
tonnes of material. The components came from Japan, Brazil
and the Netherlands, among other sources.
ENELVEN, the customer who commissioned the project, is
set to play a key role in the national energy concept presented
by Energy Minister Rafael Ramirez. The aim is a more efficient
and more stable power supply for Venezuela. The
population of this Latin American country still has to put
up with bottlenecks in supply. The government is, however,
keen to improve this state of affairs as quickly as possible.
The enlargement of Termozulia is a step in this direction
and when President Chávez left the hall in the evening, having
thanked those responsible for the project, he was cheered
and applauded by those present.
MAN Ferrostaal is also involved in social projects in Venezuela,
thereby contributing to an improvement in the standard
of living. In this context, the company has equipped
three schools in structurally weak districts with PCs and
complete Internet access, providing the children with the
opportunity to broaden their horizons. MAN Ferrostaal is
currently organising an education workshop intended to facilitate
youth access to structured education.
The expanded Termozulia I power plant
feeds 500 megawatts into the national grid.
Tucupita
GUyANA
Georgetown
Atlantic Ocean
Paramaribo
SURINAM FRENCH
GUyANA
Cayenne
THE ECHO August 2007
53

54 THE ECHO August 2007
55
SErviCES
Record sales in the
metal processing segment
MAN Ferrostaal is pleased with its good results in the machine tool and metal
forming sectors. The company is supplying a number of CNC turning and
milling centres for the manufacture of components with the highest demands
for precision. Among others, two CNC milling machines for the manufacture
of gear wheels with workpiece diameters of up to 2,500 mm for use in
shipbuilding are being delivered to China to a licensee for diesel engines of
the sister company MAN Diesel.
MAN Ferrostaal has sold machines for the aircraft
industry to Brazil and Pakistan. The company has
signed new long-term agreements for the maintenance
and service of CNC machines with the firms GROB
from Switzerland and WFL from Austria, contributing to an
improvement of its services in Brazil and China. For the gearbox
manufacturers SEW and ADDN, MAN Ferrostaal has concluded
two contracts with its German business partner
HÖFLER for the supply of CNC gearwheel grinding machines.
A record rounds off the good situation in the machine tool
business: in 2006, MAN Ferrostaal sold 16 CNC laser cutting
machines in Brazil for the Swiss firm BYSTRONIC. It has already
sold seven BYVENTION models so far this year. The total
number of machines sold in Brazil has risen to well over
the 100 mark.
In China, MAN Ferrostaal is very successful in the sale of machines
for metal forming. Aluminium foil rolling mills, including
the new separator and Doppler technology of the
supplier Achenbach Buschhütten, are achieving particularly
large earnings in the People’s Republic.
The demand for minting machines is also high at present.
This is particularly true of the Chinese market. There, because
of the forthcoming Olympic Games, coin manufacturers
are increasing their investments, especially in machines
for the manufacture and processing of commemorative
coins and medals. In Latin America, this business is
similarly strong, especially in Colombia, where the company
has been able to establish a solid business in the coin segment.
Its cooperation with reputable machine manufacturers
makes it possible for MAN Ferrostaal to offer practically
the whole spectrum of machines required for the various
working processes involved in coin production.
Aluminium foil rolling mill from Achenbach Buschhütten in China

56
SErviCES
Gas pipeline for
LUOC in Uzbekistan
Pipelines on the way to Uzbekistan:
transfer of pipes from ship to railway
trucks in the harbour of Kleipeda
THE ECHO August 2007
Caspian Sea
IRAN
For most people, Uzbekistan conjures up images of a
country somewhere in Central Asia, and of the Silk
Road, with cities such as Samarkand and Bukhara. Today
Uzbekistan is one of the world’s leading producers of
cotton. But the country’s future wealth will be in the oil and
gas trade. While Azerbaijan and Kazakhstan opened up for
international oil and gas firms very soon after the collapse
of the Soviet Union, the Uzbek President Islam Karimov initially
decided to go his own way. Now, as the economies of
the neighbouring states are growing rapidly, the door is also
open for foreign companies in Uzbekistan.
The largest Russian and second largest oil company worldwide,
Lukoil, is expanding its oil and gas business in Uzbekistan.
For this purpose, the Russians have formed a subsidiary,
Lukoil Uzbekistan Operating Company (LUOC). The
location for LUOC’s first activities is the region of Bukhara
in the south-west of Uzbekistan. Together with the local
joint venture partner Uzbekneftegaz, the company has begun
development of the Dengizkul and Kandymsk gas
fields. In the first phase, the Khamzak and Shady sections
within the Kandymsk field are to be developed for an annual
production and transport capacity of four billion cubic
metres of natural gas. In addition, LUOC, together with
CNPC from China, PETRONAS from Malaysia and the Korean
firm KNOC have initiated new investments. In the next
ten years, the oil and gas business is therefore likely to
grow rapidly, now that GAZPROM has also decided to enter
this market.
LUOC has already begun the construction of a gas pumping
station and its next task will be to lay the necessary
pipelines to the Mubarek gas refinery complex. There, a
gas purification plant will be constructed shortly, as the
natural gas has a high sulphur content. Because of this sul-
Aral Sea
TURKMENISTAN
Nukus
Registan, Samarkand
UZBEKISTAN
Urgench
Tashkent
Bukhara
KAZAKHSTAN
TAJIKISTAN
phur problem, LUOC has decided not to cooperate with
Russian or Ukrainian manufacturers, but to follow the path
of “Western Technology Piping”, introduced by MAN Ferrostaal
for high technical demands of this nature. This label
stands for high-quality technology from western Europe.
MAN Ferrostaal has become a partner of LUOC. Large
pipes, 711 millimetres in diameter and 20 millimetres
thick, the corresponding ball valves, pipe bends, fittings
and pigging stations are currently being delivered. The entire
pig launcher and receiver material has reached the Kandymsk
field and will be assembled to construct a pipeline.
The order has a volume of over 30 million euros, the pipes
accounting for the lion’s share. The steel of the pipes is capable
of resisting the high H 2S content. The pipeline has a
length of 46 kilometres and the total weight of the pipes,
including their polyethylene outer coating, is about 17,000
tonnes. LUOC chose MAN Ferrostaal because of its experience
with similar pipelines in Turkmenistan and because
of its good reputation for “Western Technology Piping”.
Namangan
Lake Balkhash
KyRGyZSTAN
CHINA
PAKISTAN

58 THE ECHO August 2007
59
SErviCES
“Market leadership through
quality leadership”
For nine years, Dr. Ralf Becker has been heading the company MAN
Ferrostaal Automotive, together with Detlef Castro. For the 46-year-old
engineer, everyday top performance is the basis of his business.
How long has the Automotive segment existed and how
has it developed since then?
Since 1983, we have successfully operated steel magazines for
various automobile manufacturers (OEMs); in 1996 we entered
the field of so-called system logistics. That means that,
apart from steel, we also deliver other materials and even sequentially
assembled systems just-in-time to our customers.
The company’s development can be well illustrated by the development
in the number of employees. When I started at
MAN Ferrostaal in 1998, we had about 220 employees in our
segment; today we have more than 2,700, including temporary
workers. Our turnover has also developed, rising continuously
and consistently, in line with our workforce.
How has the automobile industry changed and how has
MAN Ferrostaal adapted to these changes?
The automobile industry has changed enormously in the
last ten years. The classic vehicles, of which models like the
Opel Astra or the VW Golf achieved more than 600,000
sales per year, no longer exist. Today the automobile industry
has to operate a multi-model policy (3-, 4-, 5-door, estate,
coupé, convertible and so on) in order to maintain a steady
level of sales. What is more, every model is also supplied in
a wide range of variants, for each customer wants to have
an individual vehicle. So we have to be in a position to assemble
completely different vehicles and the corresponding
variants in the accessory components. That has to be
mastered in order to keep the complexity at the point of installation
as low as possible. It is right here that our concepts
come into play.
What are the essential factors for your success? Which
areas of competence have you specialised in?
It is important to us that we really understand how the automobile
industry works. For example, why there are specific
requirements, what equipment is needed and so forth. IT
is another important component here. This is the only way
that the customer’s requirements can be fulfilled. We have
to know how the OEM ticks. We adapt to the permanent
changes that affect the OEM by developing new concepts
and contributing with our ideas to the success of the automobile
industry. We specialise in offering a corresponding
added value all along the supply chain. This extends from
the material flow and assembly planning to the planning of
entire factories, the development of specialised transport
concepts and the development and operation of corre-
Drive train assembly at Ford, Cologne
sponding IT systems, always with the aim of handling these
operations over the long term. What is really important for
us here is the quality. Everything we undertake must be one
hundred per cent in order.
How do you keep the know-how of your staff up to date
and develop them into experts?
First of all, we have very good people, with a pronounced affinity
for vehicles and the automobile industry. So they
know exactly what the OEM requires. But the standard we
set for ourselves is: we must do it a bit better than the others.
This means that we must continually keep our people
informed of the relevant trends and developments, so that
we can develop new concepts when necessary. At our rate of
growth, that means we have to develop, train and coach our
people. New people are immediately allowed to work together
with experienced employees on projects at our operative
locations. For experience is only gained through
experiences.
How would you convince a potential customer to take
advantage of your services and not those of a competitor?
Our motto is: market leadership through quality leadership.
It is vital that the customer’s assembly line is not stopped,
that there are no hitches in his production and that the parts
and systems we deliver are one hundred per cent in order.
That is the indicator for immediate operative success. That
is why we also put great emphasis on quality assurance. We
are certified according to the latest standards. In some cases,
the certified systems are subjected to another acceptance
test by the customer. In the case of Ford, for example, our
sites have been accredited with the Ford Q1 Award. But quality
systems on paper are not enough, of course. It is important
for quality assurance to be put into everyday practice.
So our watchword in this case is: as little as possible, as much
as necessary. But everything that is specified on paper must
also be practised one hundred per cent. It has to be the case
that any audit could be passed without preparation at any
time. Only in this way can we continuously deliver quality
and work effectively and reliably. That is our aspiration and
also our advantage over the competition.
What was the most challenging task up to now?
That was in the year 2000. Almost simultaneously we won
two major orders: the SILS Centre for Opel in Rüsselsheim
and the Pony Pack assembly for Ford in Cologne. Two huge

60 THE ECHO August 2007
61
SErviCES
projects, with an investment totalling over 40 million euros
for the two sites. In Rüsselsheim we had to set up a complete
infrastructure, which today covers an area of 33,000
square metres. We were able to implement our complete
plan with the colleagues from Opel and succeeded in making
a good start here. In Cologne, it was also the start of a
greenfield project. In both projects, we took over extensive
assembly units. It really is an enormous challenge when,
overnight, you have to employ and train 300 people at each
site, because you also need the corresponding management
capacities capable of supervising something like this. Not
many people are capable of this, but we successfully mastered
the task at both sites.
In general terms, what must a firm in the automobile sector
take into account when selecting a service provider?
It is most important that everything that has been specified
on paper is also verifiable, for there are very great differences
between theory and practice. We are proud to be able to
say that we have been very successful in the realisation of
all our projects. That means without constraints on the customer
and in an extremely limited amount of time. So, the
customer should ask for references, for these provide cru-
cial proof, and not merely look at the costs that he sees in a
tender at first glance.
MAN Ferrostaal is primarily known as a general contractor
for industrial plants. So how does the Automotive
segment fit into the company?
Very well, because MAN Ferrostaal is a worldwide service
provider and, with our services in the Automotive segment,
we are right at the forefront. We can just as easily be directly
compared with Plant Construction. When we conclude
contracts for a certain amount of assembly, involving setting
up the whole infrastructure, constructing the building,
making the investments, installing the entire assembly
equipment in the building, the screw technology, all the
transfer systems and control systems, all of this can be imagined
as being a small factory. Then it is a matter of project
management, just as it is in plant construction. In the Automotive
segment we are also general contractors. Here too,
we show our customers new business models and suitable
methods for dealing with their many tasks and challenges,
so we are also carrying out project development here.
Where will your markets be in future?
When considering strategies for the future, you must keep
an eye on several aspects. Firstly, I assume that a reasonable
volume of vehicles will continue to be produced in Germany
or western Europe in the future. For this purpose, intelligent
concepts must be found to make or to keep the labour
costs and production hours per vehicle competitive. Here I
believe we can make an important contribution with our
ideas. In addition, of course, if we look at the forecasts up to
2015 or 2020, there will be a marked change in the world.
But even in Europe there is still sure to be growth. The new
markets of India and China are the markets with the greatest
growth rates. But if we look at today’s total added value,
they are still relatively small markets. Eastern Europe is certainly
one of the largest growth markets, not just in percentages,
but also in absolute terms. For us, the USA is also very
interesting, because the value creation processes there are
not as advanced as they are in Europe. We see a huge potential
for us here. To sum up, the strategic orientation for our
segment means: consolidation of the position in western
Europe, expansion in Eastern Europe, particularly in the
Polish and Russian markets, and a new orientation with regard
to the USA.
The automobile industry there is in crisis…
In every crisis there is naturally an opportunity. If we look
at the vehicles on the roads in the USA, it quickly becomes
clear that, against the background of discussions about rising
energy costs and the necessity of reducing CO2 emissions,
growth is certainly possible in the smaller-vehicle segment.
On the other hand, the population as a whole and,
therefore, the demand for vehicles is still rising. So, for the
US market, two tendencies are apparent: firstly, absolute
growth and, secondly, a trend towards other vehicle models
with lower consumption and therefore less impact on the
environment. On top of this, an important parameter for
viability in the automobile industry is the work time per vehicle
in the final assembly, which still holds considerable potential
for improvement. So there is plenty of scope for our
activities.
Are the Europeans ahead of the Americans here?
Yes, some Europeans are ahead of the Americans. Naturally,
every new works built on a greenfield site has the advantage
of possessing better structures. But I believe that, even
in developed structures, we can do better by means of intelligent
supply concepts, and this is where we come in. In Europe,
with our assembly services, we hold a leading position
as a supplier-neutral service provider. It does not really matter
to us who delivers the components. The important thing
is that the components are supplied to the correct level of
quality. Our service models can be introduced at any automobile
plant. We create structures that allow a reduction in
the production times of the final assembly.
Will there be an expansion of services on your part?
The service we provide is subject to a continuous improvement
process. In other words, we continuously check whether
what we are doing is “state of the art”. We work constantly
on new concepts, so that we can stay ahead of our imitators.
Steel magazines can be adapted and various sequential
operations can be copied. So we have to consider now what
the market will look like tomorrow, so that we can offer additional
services and maintain our competitive advantage.

62 THE ECHO August 2007
63
CoUNtriES aNd PEoPlE
Living and working
in foreign cultures
Reinhart Hönsch: Managing Director of MAN Ferrostaal Perú
The year is 1973. After his training as a wholesale and
international trade specialist at MAN Ferrostaal, Reinhart
Hönsch, then 30 years old, had made his first
trip abroad to Morocco, where he was to prepare a study on
this new undeveloped market. This journey predestined
him for Africa. Hönsch was transferred to the F-Africa department,
as it was then. His mission: to handle the remainder
of an order for the delivery of 250 ore transport trucks
to the Congo (then Zaire).
So he soon found himself on his first tour through the African
jungle. After a long, extremely exhausting trek, he and
his colleagues arrived in a village where the chief was sitting
in front of his hut, cooling his feet in a bowl of cold water.
As an honoured guest, the travellers were invited to
have a cool beer – a welcome refreshment. But Hönsch
could hardly believe his eyes when he saw that the glasses
quickly fetched for them were rinsed in the same bowl in
which the village chief had been bathing his feet. He could
hardly bring himself to take his first gulp – but politeness
and the heat prevailed...
Then, in 1975, came an assignment to Nigeria, where the
further enlargement of the Sokoto cement factory needed
commercial supervision. Until 1978, Hönsch controlled the
fortunes of the offices in Lagos and Kaduna. In this time,
the foundations were laid for the contracts for a railroad
for the transport of ore and for the Ajaokuta steelworks. The
working environment was not easy, with power failures
lasting for hours, a shortage of petrol and a telex line to
Germany only available for two or three hours per day, but
Hönsch adapted himself to this and successfully concluded
a number of transactions.
It is these special adventures and experiences which enable
people to get along with other people from different
cultures and living environments – and what is more, to
live in a wide variety of countries and to establish an existence
there.
“My first long spell abroad in Nigeria
had a decisive effect on my later professional
life. These experiences
stood me in good stead in my later
foreign assignments,”
says Hönsch. Altogether, he has only spent ten years of his
professional life in Germany. In this, he is a typical MAN
Ferrostaaler: someone who is at home all over the world.
Hönsch lived in Africa and Asia for the company between
1975 and 1987. By doing so he was also able to gain experience
in Shanghai and Beijing in the project negotiations
and handling of the contract for the dismantling of a rolling
mill in Dortmund and its reassembly in China. “In my
years of work, mostly spent abroad, I have learnt to listen
to other people and to adapt myself to other cultures. If I
make an effort to understand my counterpart, if I can win
his trust, I shall be successful both in business and in my
private life,” says this man of the world.
Today Peru is his home. He lives in the capital city Lima together
with his Peruvian wife and two sons. In 1988 his
wish to get to know his wife’s country became ever stronger,
so the ambitious German left MAN Ferrostaal because
Reinhart Hönsch, Managing Director of MAN Ferrostaal Perú
at that time the company had no vacancy in his adopted
country. He found a job at a Peruvian and Swiss company
where, as head of department, he built up the machine
business between 1988 and 2001 and gained a thorough
knowledge of the Peruvian market.
This experience led him to return to MAN Ferrostaal in
2001, to the company’s oldest South American subsidiary.
He has been Managing Director there since 2005. Mr.
Hönsch sums up the major projects of recent years as follows:
“Above all in the fishing sector we have made an excellent
name for ourselves by supplying MAN diesel engines.
With our former subsidiary MAN Takraf we constructed
and commissioned a copper ore conveyor system
for the largest Peruvian copper mine between 2004 and
2006. We also contributed to developing hydroelectric
power generation by modernising the Callahuanca and El
Platanal power plants. We also play an important role in
the graphics industry – for example we installed complete
lines of MAN Roland at the largest Peruvian newspaper
group, ‘El Comercio’”.
It was with satisfaction that Mr. Hönsch received the news
in February 2007 that MAN AG had decided to confirm
MAN Ferrostaal S.A.C. as the first MAN House in South
America. “This is the recognition for the performance of
my staff and for the successful work of my predecessors
who began marketing the products of the MAN Group early
on”.
In view of this much success it is not surprising that the
64-year-old no longer wants to return to Germany. But he
still has close ties to friends and former colleagues and values
many of the accomplishments made by his native
country, for example, the dual training system. He promotes
this form of training in his adopted country Peru in
conjunction with the Peruvian-German Chamber of Commerce
and the Humboldt School Institute, a vocational
school, as well as with German-Peruvian companies for
typical commercial professions. Of course, MAN Ferrostaal
Perú is also involved: “Each year we have two apprentices
who work in the various departments in the company,”
says Mr. Hönsch.
“One result of our training: every head
of department has a trilingual personal
assistant!”
His unsalaried post as Vice-President of the German Alexander
von Humboldt School is only one of many such posts
for this natural communicator. As a networker, he is also on
the boards of the Lima Chamber of Commerce and of the
Peruvian-German Chamber of Commerce. He gets to know
many of his Peruvian customers here. It is much easier to
discuss ideas about cooperation over a Pisco Sour, the national
drink of Peru, than in a sterile office atmosphere.
When he does this today he is fortunate enough to be able
to sit in an air-conditioned restaurant where the glasses
come sparkling clean from the dishwasher.

64 THE ECHO August 2007
65
CoUNtriES aNd PEoPlE
Working with Beethoven
in the fight against poverty
Music can provide a way to escape poverty. Children from poor families in
Venezuela have received free training as orchestral musicians for the past
30 years. The best of the 240,000 currently active young musicians play in
the famous Simón Bolívar youth Orchestra. MAN Ferrostaal sponsors this
social and musical project.
Gustavo Dudamel: “The energy of this music is fantastic for young musicians”.
When you stroll through the streets of Caracas, it
is impossible to escape the cacophony of reggaeton,
salsa and the cries of the CD sellers. You have
to pass through the doors of an unimposing green building
in order to hear the more harmonious tones of the Montalbán
School of Music. This is the heart of the “Fundación
del Estado para el Sistema Nacional de las Orquestas Juveniles
e Infantiles de Venezuela” (FESNOJIV). This foundation,
which was established 30 years ago by José Antonio
Abreu, combines social commitment with the promotion
of classical music.
FESNOJIV offers children from difficult social circumstances
free music lessons and newfound self-confidence. The
foundation has already trained over 300,000 young musicians.
There are now 125 youth orchestras throughout
Venezuela. Audiences around the world fall under the spell
of the shining vanguard of this movement, the Simón Bolívar
Youth Orchestra. Under the leadership of the exceptionally
gifted 26-year-old conductor Gustavo Dudamel, the 11- to
19-year-old virtuosos gave a concert at the Essen Philharmonie
at the end of September 2006. The orchestra thrilled
the audience with its remarkable sound quality of the highest
level combined with South American temperament. The
audience showed the talented young musicians their appreciation
with a standing ovation.
Gustavo Dudamel’s career began at the tender age of 12
when he stood in for an absent conductor in a rehearsal.
Just five months later he was appointed as an assistant. The
26-year-old particularly admires the works of Beethoven:
“His music is important for young people. For us it is new
music, because we do not have a ready-made version of it
in our heads. The energy of this music is fantastic for young
musicians,” enthuses Mr. Dudamel. Like most members of
the Simón Bolívar Youth Orchestra, conductor Dudamel
also comes from a poor background – and today is a celebrated
star.
240,000 children are currently involved in the Venezuelan
orchestra movement – a remarkable figure given the pop-
Gustavo Dudamel, conductor of the Simón Bolívar Youth Orchestra
ulation of 25 million. In Caracas alone there are eleven socalled
“Nucleos”, FESNOJIV music schools. No entrance examination
is required, because the motto of the initiative
is: “Every child has musical talent”. The primary objective
is not to train professional musicians, but to show children
prospects. “Poverty means loneliness, sorrow, anonymity.
An orchestra means joy, motivation, teamwork, striving for
success,” says José Antonio Abreu. The Venezuelan government
supports the orchestra system because of its social
orientation. Mr. Abreu, who established the foundation,
was honoured for his dedication in 1998 and was appointed
a special UNESCO ambassador. MAN Ferrostaal wants to
sponsor this unique youth project that combines culture
and social commitment and has supported the Simón Bolívar
Youth Orchestra with a donation. An investment that
not only benefits the orchestra but also helps a charitable
cause.
On August 21, it was a case of “da capo”, because the Simón
Bolívar Youth Orchestra returned to give another concert
at the Essen Philharmonie to open the 2007/2008 season.
MAN Ferrostaal AG sponsored this event with a donation
and invited numerous partners and customers to the European
Capital of Culture 2010 for an extra-special
musical experience. Directed by Gustavo Dudamel, the
young musicians played works by Leonard Bernstein, some
South American composers and – not to be forgotten –
Beethoven.

66 THE ECHO August 2007
67
CoUNtriES aNd PEoPlE
Bernd Ahlmann, Head of the Equipment Solutions Business Unit
“Fair treatment for customers
and employees alike”
At MAN Ferrostaal he is an old hand: Bernd Ahlmann has been working
for the company for nearly 30 years. The Head of the Equipment Solutions
business unit is not fond of set solutions. The 50-year-old from Essen
prefers to rely on pragmatism and his knowledge of human nature.
are the backbone of MAN Ferrostaal’s foreign
companies”. And, in fact, none of the
“We
company’s other business units is represented
in so many countries. The Equipment Solutions
business unit serves customers in 40 states, predominantly
in the southern hemisphere. The comprehensive
service includes everything, from consulting and planning
right up to delivery. And after the installation and
the training of the customer’s personnel on site, the unit
also provides the customer with after-sales service, including
maintenance and deliveries of replacement
parts.
Bernd Ahlmann can rely on a well-established team. There
is little staff turnover here. Most of his employees have remained
true to their boss for many years. Mr. Ahlmann describes
his management style as informal and pragmatic.
He doesn’t just take the guiding principle of MAN Ferrostaal
literally – that its own employees are its most valuable
asset – he also puts it into practice. “If we want to be
able to perform well, a good working climate is essential,”
says Mr. Ahlmann. “No boss can earn the respect of his employees
if he is too authoritarian. What is important is the
right teamwork”. Neither does he have a great opinion of
patent recipes for business. “In South America and Asia,
contracts cannot be concluded by sticking to the manual.
You simply have to know what to do and know your customers
well. Without a well-founded knowledge of the local
markets, it is very hard to do business there at all. This
valuable knowledge is not written down anywhere: it has
to be learnt the hard way,” he explains. And that is exactly
what Mr. Ahlmann has done. He has been active in this field
for 27 years – and he has been very successful.
“Anyone can be his own boss”
Mr. Ahlmann’s career began in 1978 with an apprenticeship
at MAN Ferrostaal. Another apprentice in that year’s intake
was Stefan Deuster, now Head of MAN Ferrostaal México.
Three years later, Mr. Ahlmann was given a permanent po-
sition and, over time, he made a convincing impression
with constantly good results and a feel for his customers.
Bernd Ahlmann is a fine example of the fact that you do
not necessarily need a university degree to be successful in
your profession. “What counts most of all at MAN Ferrostaal
is entrepreneurial activity,” he declares. “Good common
sense and a feeling for business are indispensable”. What
he values at MAN Ferrostaal is the wide variety of activities
and the business possibilities that these open up.“Here, anyone
can be his own boss. For someone who can show good
planning and continuous growth in his sector, there is practically
no limit”.
Growth through the right
acquisitions
The growth in the machinery business took place as a result
of systematic acquisitions. Here, Mr. Ahlmann was always
successful: “In our acquisitions, we never had a flop,
but always bought only those firms which fitted well with
us”. So, even in times of economic uncertainty, his business
remained steady. What is the secret of his success? “It is extremely
important to treat customers and employees fairly
and with respect, to face them on a level footing”. Mr. Ahlmann
has always succeeded in integrating new acquisitions
into MAN Ferrostaal. There is one thing, however, that he
cannot stand: “What irritates me is the type of person who
can’t make up their mind, spending so long debating
everything that a good opportunity is allowed to slip by.
Missing a good business deal through carelessness is really
annoying. You have to analyse the risks in good time and
then manage them”. For the future, Mr. Ahlmann is hoping
for further expansion in the machinery business. He has
already laid the foundations for this growth.

68
aPPENdiX
International Trade Fairs
August to December 2007
Giro
Brazil, Sao Paulo, 15/08
ANJ
Brazil, Sao Paulo, 26/08 – 28/08
Naval design and Engineering Symposium
Colombia, Cartagena, 29/08 – 31/08
Grafinca
Peru, Lima, 20/09 – 23/09
SINPROdE
Argentina, Buenos Aires, 26/09 – 28/09
49th International Mechanical Engineering
Trade Fair,
Czech Republic, Brno, 01/10 – 05/10
K 2007
Germany, Düsseldorf, 24/10 – 31/10
Andinapack
Colombia, Bogotá, 06/11 – 09/11
Exposorma
Chile, Concepción, 07/11 – 10/11
Expo Pesca
Peru, Lima, 15/11 – 17/11
Power-Gen International
USA, New Orleans, 11/12 – 13/12
FaX +49.0201.818-3525
MAN Ferrostaal AG
THE ECHO Editors
Hohenzollernstrasse 24
d-45128 Essen
Germany
Sender
Surname First name
Position Department
Company
Street
Postcode City
Country
E-mail
■ Annual Report 2006 of MAN Ferrostaal AG ■ German issue
■ English issue
■ Spanish issue
■ Company Report 2006 of MAN AG ■ German issue
■ English issue
■ “MANforum”, the customer magazine of MAN AG
■ German issue
■ English issue
■ THE ECHO, Issue 02/2006 ■ German issue
■ English issue
■ Spanish issue
■ Brochures of MAN Ferrostaal AG
Do you have any requests, ideas or suggestions
for topics? We look forward to your e-mail:
echo@manferrostaal.com
■ Countertrade, English
■ Oil & Gas, English
■ Power Solutions, English
■ Pulp and Paper, English
The customer magazine of MAN Ferrostaal AG
appears half-yearly.
■
Please include me on your distribution list and send me future
issues free of charge until further notice.

THE ECHO August 2007
WWW.maNFErroStaal.Com imPriNt
Publisher:
MAN Ferrostaal AG
Hohenzollernstrasse 24
45128 Essen
Germany
Member of Initiativkreis Ruhrgebiet
(Ruhr Region Initiative Group)
Responsible for contents:
Daniel Reinhardt
Editors:
Angela Kanders (Managing)
Oliver Haastert
Contact: echo@manferrostaal.com
Other authors in this issue:
Birgit Baltes, Helmut Brand, Alain Chevaillier, Dirk Demtroeder,
Dirk Donges, Jaime Fuentes, Dorian Hernández,
Lars Höbenreich, Kai vom Hoff, Manfred Immink, Katrin
Kasper, Thomas Kaup, Sylwia Krawczynska, Martina
Kreutz, Eduardo Larrinaga, Dietmar Pracht, Marius Silalahi,
Lennart Smend, Manfred Schreier, Thomas Suckut
Photo credits:
Armada Argentina (Argentine Navy): p. 6; AVR Jülich: p.
13; Jim Connor: pp. 24/25; Peter Danford: p. 22/23; Karsten
De Riese: pp. 2, 30, 33, 35, 38-44, 48/49; Getty Images:
pp. 9, 10, 14/15, 17, 20/21, 31, 34, 36, 37, 60; Michael Kneffel:
pp. 64/65; MAN Diesel SE: p.7; Catrin Moritz: pp. 59,
61; Andreas Pohlmann: p. 63; Andri Ramos: pp. 50-53;
Helge Reinke: pp. 18, 20; Solar Millennium AG: p. 47;
Transchart Schiffahrtsges. mbH: p. 56
design and Layout:
BOROS
Printing house:
Woeste Druck, Essen
Printed on a MAN Roland 705
Frequency:
Half-yearly
71

www.MANFERROSTAAL.cOM