C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb
C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb
C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb
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value proposition to ESD’s market and improve the efficiency of alternative feedstock<br />
as an important contribution to achieving grid parity. <strong>Mo</strong>no2 is expected to<br />
increase the efficiency of cells produced from ALD’s SCU systems to above 17%<br />
at a competitive cost.<br />
Nuclear<br />
In 2010, ESD generated an increase of 100% over 2009 in nuclear order intake,<br />
albeit from low levels. In addition to the recycling of weapon grade plutonium<br />
on behalf of the United States Department of Energy in the Shaw AREWA MOX<br />
project, attractive new business was generated in the field of annealing of tubes<br />
for this segment. The division continues to develop Impermeable Graphite Matrix<br />
(“IGM”) technology in cooperation with European governmental agencies. Field<br />
testing of the IGM product and processes are expected to accelerate in 2011.<br />
Aerospace<br />
ESD is the world’s leading provider of vacuum furnaces used to produce high<br />
purity titanium and superalloys for the aerospace industry. Demand for these<br />
products increased in 2010 as the global markets began to rebound and commercial<br />
aerospace demand returned to pre-crisis levels. China, in particular,<br />
saw significant demand for high purity stainless steel and titanium vacuum<br />
systems. As the demand for more fuel-efficient aircraft continues to increase,<br />
ESD’s vacuum furnaces are well positioned to serve this market.<br />
Transportation<br />
ESD provides vacuum case hardening and heat treatment and other services<br />
through Own & Operate facilities in Germany, the United States and Mexico.<br />
These facilities utilize ESD’s proprietary vacuum heat treatment furnaces to<br />
provide tolling services to the transportation and aerospace industry. The division<br />
was able to overcome a difficult financial situation in the transportation market<br />
and grow its revenue by 55% in 2010 to $28.2 million. After years of development<br />
and expansion of the Own & Operate facilities, gross margins achieved are now<br />
fulfilling the expectations. The launch of new products and services in this segment<br />
should continue to improve margins and increase the positive contribution<br />
of the Own and Operate facilities.<br />
Outlook/Strategic Update<br />
Regional<br />
Breakdown<br />
<strong>Al</strong>though investment funding is still be dependent on global credit markets,<br />
increased demand from all segments and especially in countries like China and<br />
India provides a solid base for 2011. Innovation and expansion in the solar field<br />
will contribute to ESD’s improved performance in 2011 and beyond. The Engineering<br />
Systems Division remains well positioned for long term growth, predominantly<br />
based upon organic growth.<br />
$1.4M South America<br />
$37.1M North America<br />
$81.3M Europe<br />
$125.8M Asia<br />
$0M ROW<br />
End Market Uses<br />
/// ENERGY<br />
Solar vacuum furnaces<br />
Vacuum furnaces used to<br />
produce nuclear fuels<br />
Vacuum melting and precision<br />
casting systems for industrial<br />
gas turbines<br />
/// AEROSPACE<br />
Vacuum furnaces for titanium<br />
Electron beam coating systems<br />
for aerospace turbines<br />
/// INFRASTRUCTURE<br />
Vacuum furnaces for<br />
specialty steel<br />
/// SPECIALTY METALS & CHEMICALS<br />
Vacuum systems for high<br />
performance materials<br />
Report of the Management Board | Engineering Systems Division 29
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