A PUBLICATION OF THE KAHL GROUP

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1 A PUBLICATION OF THE KAHL GROUP

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3 / kahl group 02/03 PREFACE Dear Business Friend, We are pleased to inform you on current developments of our Group in this new journal. Also in this issue of our journal we give priority to innovations within our Group. To be able to implement the new developments we need you, dear business friend, and your readiness to tread new paths with the assistance of our employees. After all, the success of your investment also matters to us. We are particularly proud of having won the Apprenticeship Award 2009 by the IHK (Chamber of Industry and Commerce) for our exemplary performance in in-company training. For one thing is certain: The qualification of our employees is a decisive factor for future success. Your Jan Behrmann & Joachim Behrmann Photo: Hamburger Abendblatt Birgit Jaklitsch / Birgit Schcking.

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5 04/05 TABLE OF CONTENTS amandus KAHL 06»Kahl reinvents the wheel«08 Large-scale plants for wood pelleting Plantation Energy Australia 09 Residue-free recycling of waste tyres From tyres to granulate 10 Recycling of polyethylene terephthalate (abbreviation PET) 11 Research & Development at Amandus Kahl 12 The sports activities of the Kahl Group 14 Application the flat die pelleting press A complete feedmill with innovative technologies in Tatarstan 18 Coke dust pellets for steel smelting furnaces 19 Success in the oil palm industry Kahl has taken the first flat die pelleting press for pellets from empty fruit bunches into operation 19 The Crown Expander Pelleting without a pelleting press 20 HoweE Eberswalde The first pan grinder mill applied in practice SPECIAL neuhaus NEOTEC 21 Finer than fine 22 Energy saving due to preheating of coffee beans 23 new drum roaster CTR Particle technology 25 GMP - Grinders 25 Heinen Freezing 25 Sunflower seeds perfectly roasted 27 The perfect espresso 28 Paulig 29 Enlargement of Premises SCHULE 30 Oilseed processing plant for sunflower, soya and rape 30 Start-up of a rice mill in Peru 32 High nutritional value of durum wheat (bulgur) 32 new ways of oats processing in Belarus 33 Precision of separation at 1,000 tons per day in the oil industry 33 Schule Food Technology 34 Bioethanol Higher profit without shell 34 nigeria promotion and development of agricultural resources FROM OUR MANUFACTURING DEPARTMENT 36 Expansion of die manufacturing building 37 new bending machine for apparatus construction 37 Award for exemplary vocational education and training

6 / amandus kahl»kahl REINVENTS THE WHEEL THE PAN GRINDER MILL!«Our competitors say that the energy consumption of our pelleting presses is higher as cylindrical pan grinder rollers run on a circular path and the resulting shearing effect makes our machine an energy guzzler. For decades we have been proving every day that this is not true. Partly, we have eliminated this effect by using conical rollers, mainly in order to achieve a further temperature reduction for example during hop pelleting. Meanwhile we have acted on our competitors' suggestions and remembered what pan grinder rollers originally have been used for: for crushing various products, mainly grain. Even when driven by muscle power pan grinder rollers have been a well-proven technology for centuries. But joking aside also in the recent past Kahl pelleting presses have always had the edge on other processes when it comes to pelleting fibrous products such as straw, grass or dried beet pulp. Thanks to the much-maligned shearing effect, the machine can process also coarse particles without any problem. The fact that it is used for crushing waste tyres impressively proves the efficiency of the Kahl pelleting press. Nowadays, wood pelleting has gained worldwide acceptance. Wood pellets are trading goods and in their quality as a fuel they definitely compete with oil and gas. As the demand for pellets increases, the demand for saw dust and wood shavings increases as well. As an alternative, wood chips can be processed which, however, have to be crushed in wet condition before drying. Traditional methods such as knife ring flakers or hammer mills can be used, yet they have several disadvantages. In fast running mills there is a tendency to product clogging if the input product is too wet. Wood chips may have a water content of up to 50 % and hammer mills have to be aspirated, the exhaust air being discharged through a filter. enough to have fitted through the die holes before! Intriguing, isn't it? Of course, it is not as easy as that. But this questionand-answer game led to first trials in the pilot plant and later in practice successful tests which raised new questions: Which throughput is reached at which moisture content? Which influence do the input particle sizes G 30 or G 50 have? Which are the optimum perforations of the die? How can the output product be dried? Can we even do without wet grinding? What shall we call this new technology? How will the markets react to this new technology? Fast running mills produce sound emissions which are far beyond the limit of 85 dba. Knife ring flakers, well-proven machines in the chipboard industry, require regular maintenance at short intervals. The match-like structures of the product may cause problems in conveying elements and the downstream pelleting plant. Questions often generate ideas: What happens to wet wood chips in a Kahl pelleting press? Answer: Due to the high moisture content the pellets will disintegrate. So what? If the pellets disintegrate, this means that the particles are small View into the pan grinder mill

7 06/07 This new idea aroused immense enthusiasm in our technical and sales departments so that numerous measurements were carried out in various fields of application and the majority of all open questions could be answered rapidly. The markets' reaction to this new technology has been more than positive. A customer in Poland bought the first»pan grinder mill«before the machine had been officially released for sale. Today, this pan grinder mill type processes 6 7 t/h of G30 wood chips. The crushed wood chips are dried to a residual moisture content of approx. 10 % in a drum drier and subsequently they are directly pelleted. Thus, the answer to the question if dry grinding can be dispensed with is yes. Later, this was confirmed in our plant at HoWee at Eberswalde. Our live demonstrations of the pan grinder mill at trade fairs in Stuttgart and Hanover were a complete success and Kahl was awarded an innovation prize for the pan grinder mill in Stuttgart. Which advantages does the pan grinder mill have when used for crushing wood chips? The following arguments are convincing: Nothing now can stop a rapid market relaunch of the pan grinder mill. This»new«machine has been used successfully as a pelleting press all over the world and has been optimised throughout decades. The wide-ranging type series covers every capacity requirement. After a demonstration at a trade fair, a large German sawmill cancelled the hammer mill that had already been ordered and ordered a pan grinder mill for about 20 t/h wood chips G30 instead. We receive inquiries for the new technology from the woodprocessing industry almost every day. New complete plants are equipped now with Kahl technology including wet grinding lines of wood chips, the belt drier and pelleting lines. Amandus Kahl is the only manufacturer to cover such a wide range of processes in a modern wood pelleting plant with their own machines. No aspiration is required. The sound emissions are below 75 dba Drying of the defibered wood is more economic. The fibres produced by the pan grinder mill ensure an improved pellet quality. Dry grinding can be dispensed with if the die perforation is 6 mm High moisture contents do not cause problems but reduce the specific energy consumption The capacity of the pan grinder mill is up to 40 t/h

8 / amandus kahl POWERFUL LARGE-SCALE PLANTS FOR WOOD PELLETING IN AUSTRALIA In the meantime 2 plants have started production. Plantation Energy Australia, one of the largest Australian manufacturers in the international wood pellets business, has chosen Amandus Kahl as their exclusive partner for the production of wood pellets. The plants will produce industrial and high-quality premium pellets on the basis of eucalyptus and pine wood from local plantations. The central part of every production line is the pelleting plant with 4 flat die pelleting presses type each - the flagship among the wood pelleting presses. With its sturdy design and a drive power of 2 x 200 kw, this pelleting press is the most suited machine for the high demands arising from these enormous production capacities. Plantation Energy is based in Western Australia with offices in Melbourne and Perth and is funded by Denham Capital, a leading private equity firm in the energy sector operating world-wide. The company with production facilities in Albany, Western Australia, is managed by an experienced executive team. Further manufacturing capacity is under development in the "Green Triangle" region between Victoria and South Australia. Plantation Energy Australia has positioned itself as a market leader in the production and supply of biofuel.

9 08/09 ENVIRONMENTALLY FRIENDLY AND RESIDUE-FREE RECYCLING OF WASTE TYRES FROM TYRES TO THE GRANULATE IN ONLY 2 STEPS For more than 10 years, the Kahl technology has been well known in waste tyre recycling. The convincing technology of granulation using flat die pelleting presses has established itself in the market. With the foundation of the public recycling association Signus Ecovalor in May 2005, Spain introduced comprehensive legal provisions for tyre recycling. The plant supplied to our customer in the north-east of Madrid (annual capacity 30,000 t of waste tyres) is based on a design with a two-stage grinding plant and has been started-up in record time. The produced granulates are to be used for sports venues surfaces, impact protection devices and for road construction. In the United Arab Emirates, tyres used to be disposed to an ever-expanding landfill (20 million tyres) outside the city limits for decades. The company Emirates Recycling LLC, a member of the Al Rostamani Group, charged Amandus Kahl with the construction of the largest waste tyre plant to date with an input capacity of 10 t/h. 1 2 Another plant made by Kahl was put into operation in northern Greece in the year Close to the border with Bulgaria, a waste tyre recycling plant with a capacity of 15,000 tons per year was built. The Kahl technology has also been convincing in our neighbouring country Austria. In 2009, the granulators and cutting mills in Austria's largest waste tyre recycling plant were dismantled and two new granulation lines equipped with Kahl pelleting presses of the type were erected. This exchange allows the production of granulate in only two crushing steps. Figure 1 2 Granulation plant, Spain

10 / amandus kahl RECYCLING OF POLYETHYLENE TEREPHTHALATE (ABBREVIATION PET) The development of the process for PET recycling has been underway for more than 2 years now. In cooperation with the company LCI, the Amandus Kahl representation in the USA in the field of chemistry, and a well-known U.S. company, a process was developed that allows the production of a granulate from shredded PET bottles which can be directly reused for the production of PET bottles. Since the newly developed process is very sensitive, it was necessary to adapt the corresponding machines to the process. The process functions with very short effective bores at relatively high temperatures (about 130 C); thus the machines have to be operated with oil cooling and special lubricants as well as with special devices. The development is based on the pelleting press type the data of which was used to design the current production presses type Since the beginning of 2009, two plants have been put into operation, which achieved the calculated expectations of quality and quantity right from the start.

11 10/11 RESEARCH & DEVELOPMENT AT AMANDUS KAHL In the highly dynamic environment of a medium-sized company with a vast field of activities, the classical department of research & development (R&D) has to be open-minded and flexible in order to meet the high demands of our customers with regard to innovations in process engineering and plant and mechanical engineering. The success in recent years, and in fact for decades, proves that the company's high investments in the field of R & D and in the pilot plant have been justified. Our philosophy in research and development is to advance the well-known main machines such as flat die pelleting press, expander, belt drier, etc. and to modify and optimise them for new markets and processes so that they can be used also in new and yet to be discovered niche industries. The ideas and developments are the result of the cooperation of many departments and of the interaction with institutions, our customers, prospective buyers and associates of our company. The development is never completed when the first machine is fabricated or the first process is implemented. These innovations are always accompanied by the staff of our R & D department or the pilot plant who assist our customers during start-up and production. In the following some examples of the adaptation of such plants to new industrial sectors: Grinding concepts for cereals for the production of bioethanol Optimisation of the pelleting presses for wood pelleting Shaping of distillers grains (bioethanol) Extruder in the semi-luxury items industry Pan grinder mill for grinding (article in this Journal) Fabric belt drier Crown Expander Other examples of process engineering solutions with optimum adaptations of the machines: Extruder (on the basis of the expander) => fish feed plants Pelleting press 1500 Eco-processor Flat die pelleting press in the pharmaceutical sector Continuous cooker / vacuum coater Waste tyre recycling plants Batch mixer for preheating of green coffee

12 / amandus kahl THE SPORTS ACTIVITIES OF THE KAHL GROUP It started about 10 years ago: Our former works manager, Mr. Gallus, had infected some of his colleagues with his enthusiasm for bicycle racing: They signed up for the HEW Cyclassics as the event was called back then, a cycling classic held in Hamburg every year. They started training together in spring and divided into several»kahl teams«competing over the distances of 50 km, 100 km or 150 km. This enthusiasm has grown every year; nowadays the participation in the Cyclassics has become a tradition in the company Kahl with a steadily increasing number of participants (unfortunately, only one female colleague has taken part in the race, so far). Even some of our agents from abroad let themselves be infected with our enthusiasm, for example Mr. Götti from Switzerland and Mr. Codega from Italy. We always appreciate their support! 1 In 2009, four colleagues put the icing on the cake with an extraordinary performance: They took part in the»vätternrundan«, a non-stop (!!!) 300 km bicycle ride around the lake Vättern in Sweden. Not only the 300 km ride is a fabulous performance also braving the weather is a real challenge: Wind, rain, 9 C. All four colleagues crossed the finishing line safe and sound. Congratulations! Cycling was not to remain the only activity. Some years ago, our football players decided that they wanted an opportunity to play a match»within the company«: Now, it has become a tradition to arrange a football tournament with subsequent barbecue right before the summer holiday every year. The last tournament was won by the team of our managing director Mr. Joachim Behrmann (70) who never fails to take part. Sport keeps you young that is his motto and he himself is the best proof of it! Those colleagues who prefer moving their brains to moving their legs have started yet another tradition: Every year, we arrange a skat tournament (a card game passionately played in Germany) which has become so popular that even our retirees enter the date in their diaries well in advance. Fig. 1 "Magic dribblers" in action Fig. 2 4 Our team of cyclists is remarkably successful every year» Sport keeps you young - that is his motto - and he himself is the best proof of it! «

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14 / amandus kahl THE FLAT DIE PELLETING PRESS IN GMP/FDA CONFORMING DESIGN Due to the increase of the world population and the higher life expectancy combined with the desire for a better quality of life, the pharmaceutical industry holds a good position in the market. The high demand for drugs earned the pharmaceutical enterprises high sales and profits. Apart from the drug discovery, the pharmaceutical enterprises have to attach great importance to optimising their production processes to meet the demand for low costs. Yet, the possibilities for cost reduction are limited. The goals of granulation are: No segregation of the individual components Improved flowability Improved proportioning accuracy due to small granules Good tabletability Modification of properties in the tablet (for example increase of abrasion resistance and improvement of decomposition characteristics) The production costs account for a significant proportion of the total costs. In connection with optimisation measures, flexibility and automation are important tools for cost reduction. Also alternative processes or new machines even from outside the industry but well-proven ones, are discussed. All plant components, however, have to conform to the high requirements on hygienic standards. This includes also constructional features such as the absence of dead space, electropolished surfaces, or validated cleaning concepts. They have to conform to GMP (Good Manufacturing Practice) and FDA (Food and Drug Administration) standards. Mainly, we distinguish between two process variants in the production of granules: Moist granulation Dry granulation / melt extrusion. Moist granulation (i.e. of a powder mixed with water or a water-binder solution) is realised for example with: Fluid bed agglomerators High shear-intensity mixers (batchwise). Extruders (continuously). The following description of the process of agglomeration by compression using flat die pelleting presses explains the advantages of this process over traditional processes as well as the experience with the production of granules gained in this industry, so far. Basically, granules are preparations that consist of solid and dry grains, each grain being an agglomerate of powder particles with a sufficient stability to allow for different manipulations. Granules contain one or more active agent. They can either be used directly as drugs or as an intermediate product for the production of other dosage forms such as capsules or tablets. The granulation of powdery tablet masses is a common and necessary process. However, drying of the wet granules is required. Drying is usually realised batchwise in the fluid bed (-> see page 24 - Particle Technology). The extrusion process is also a proven technology for the compaction of bulk products. In the pharmaceutical sector, for example twin-screw extruders with subsequent spheronisation are used. Due to the cost constraints mentioned above, machines for agglomeration by compression can be considered. Apart from roller compactors (production of oblong strands or flakes), also extrusion presses or flat die pelleting presses can be used. For this purpose, Amandus Kahl GmbH & Co. KG has further developed the well-known laboratory machine

15 14/ Fig. 1 Pelleting press type Fig.2 Pelleting elements pan grinder rollers and die For many years, the flat die pelleting press has been successfully used for granulation /compaction in the pharmaceutical industry- also on a production scale. It offers important advantages. The latest generation of the flat die pelleting press in GMP / FDA conforming design has not only been advanced constructionally. Its process technology has also been examined in other pharmaceutical applications. This press type was extensively examined at the Faculty of Pharmaceutical Technology at the University of Düsseldorf (Prof. Kleinebudde) with regard to moist extrusion and melt extrusion processes. The flat die pelleting press was declared an appropriate machine for pharmaceutical applications. It was also used successfully for processing lipid formulations in a research project of the University of Düsseldorf. The compression or extrusion of the lipids was realised under pressure and at a temperature below the melting temperature of the lipids (thermomechanical process). The decisive advantage over melt extrusion lies in the fact that the lipids are treated gently and thus the lipid structure largely remains intact.

16 / amandus kahl A COMPLETE FEEDMILL WITH INNOVATIVE TECHNOLOGIES IN TATARSTAN The feed plant was designed by Amandus Kahl with the main machines being of their supply. The entire plant was built in the record time of one and a half years and has been designed as a seven-storey building with a height of 40 meters. 24 silos for raw materials and 24 silos for finished products are available. The silos are 19 m high, have a diameter of 2.5 m and a volume of 95 m³ (Fig. 1). 1 The automated production line achieves a capacity of about 20 t/h of finished product. The innovative batch system allows for rapid formula change. The raw materials are proportioned into the batch weigher and ground using the hammer mill (Fig. 3). The ground mixture is either fed into the plant for finished products or into the pelleting line with expander. This pelleting and/or expansion process is automated and commences with the mixture of the crushed raw materials in a mixing conditioner (Fig. 1). Feedstuff for all species of production animals of differing ages and for different production targets are produced. Mash feed, crumbles (pellets), expanded feed or structurised expanded feed can be produced. Expandat is produced with an annular gap expander. Expandat is a compound feed which has been exposed to hydrothermal treatment by the expander (Fig. 4) and which has been produced as a granulate, without pelleting. Fig. 1 The factory has a capacity of 20 t/h Fig. 2 3 Pelleting press and hammer mill Fig. 4 Annular gap expander, Fig. 5 Conditioner MK, Fig. 6 Belt drier The specialists of the feedmill can individually optimise the feed formulae according to the customer's demands. This optimisation will not only take into account the age, but also the performance as well as the husbandry method of the animals. Furthermore, the customer's production targets are observed by optimising the feed rations. If needed, the specialists of the feedmill visit their customers in their factories in order to analyze and solve problems on site.

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18 / amandus kahl ASIA: COKE DUST PELLETS FOR STEEL SMELTING FURNACES The pellets are fed into blast furnaces for steel production. Acting as a service contractor of the major Asian steel manufacturer, our customer processes coke dust from the filters of coke lines. The coke dust is provided free of charge. The value of the pellets might correspond to that of coke which has varied between $ , and $ in recent years. Our customer imports mainly coking coal for his own coking plants, to a certain extent he also imports ready made coke. The aim is to reduce the coke import and to optimise his own coke production process in order improve the quality of the produced coke. This includes a more efficient use of the dust produced in the coking plants. At present 8 pelleting lines equipped with pelleting presses type are in operation. Their throughput capacity is 5 6 t/h each. Pellets with a diameter of 4.5 mm are produced. Fig. 1 Pelleting press type Coke dust pellets meet two important goals. First, full-value coke is obtained and the dusts do not have to be sold below their value - after all, the dusts have caused high cost for raw material, transport and the coking process. Second, due to their homogeneity, the pellets have a defined sinking behaviour in the blast furnace, which improves the steel production process. Fig. 2 Empty fruit bunches (l.) and biomass pellets (/r.) 3 Fig. 3 Crown expander

19 18/19 SUCCESS IN THE OIL PALM INDUSTRY - KAHL HAS TAKEN THE SECOND FLAT DIE PELLETING PRESS FOR PELLETS FROM EMPTY FRUIT BUNCHES INTO OPERATION In 2009, the first flat die pelleting press for the production of biomass pellets from Empty Fruit Bunches was put in operation in Malaysia. Meanwhile our customer successfully commissioned the second pelleting press type for Empty Fruit Bunches - a pelleting press with a drive power of 315 kw for a capacity of up to 5 t/h. The pellets are intended for example for energy production and for refinement into ethanol in the BTL process. With pelleting plants for oil palm fronds, Amandus Kahl has already gained an excellent reputation in Malaysia and regularly delivers pelleting presses to that country. EFBs have been the centre of interest of the biomass industry for some time as large quantities of EFBs are produced as a residue in palm oil mills, which means that they do not produce any transport costs for raw material supply. The largest producers of palm oil are Malaysia and Indonesia. Palm oil is also produced in Africa, South America and other Southeast Asian countries. The Crown expander: Pelleting without a pelleting press Our customers operate more than 600 expanders worldwide. In the U.S.A. for example, turkey fattening feed is expanded before pelleting in most cases. The annular gap expander has proved to be a good solution also in other fields such as starch modification or the oilseeds-processing industry. And last but not least, we have developed our Kahl extruder on the basis of the expander. With the extruder even higher mechanical energy inputs and modification degrees can be realised, and the products fish feed, petfood, and snacks can be pelleted or given other defined shapes. For quite some time, there has been a clear tendency towards coarse grinding of feed. Amandus Kahl remembered that in the annular gap expander, coarse grinding structures remain largely unchanged, although the product is exposed to a strong pressure and kneading effect. The pressure load in the expander acts on all sides of the coarse particles. The homogeneous pressure distribution on the entire particle circumference is supported by embedding these coarse particles in a pasty moist matrix of fine particles. Another advantage lies in the fact that the finer particles are agglomerated during expansion and thus are transformed into coarse structures. It occurred to our engineers that they might equip the expander outlet with an annular die similar to that of a pelleting press. A die without pan grinder rollers to be more precise, as they wondered: Should the high internal pressure of the expander not be able to press the finished product right through the round or oblong bores in the die ring, thus making the pressing and crushing effect of pan grinder rollers superfluous? A rotating cutter was designed, meant to cut the product strands leaving the die to uniform pellet lengths. So the»crown Expander«was born. The machine owes its name to the crown form of the first dies which were provided with slits instead of bores. One important component of the annular gap expander remained unchanged in the Crown expander: The hydraulically moveable cone. This cone can be moved into and out of the crown die at the outlet end. Depending on the position of the cone in the die, more or less die bores are open for the production of pellets. Thus the pelleting process is easy to control by simply varying the cone position in contrast to conventional extrusion processes which require die changes or far more complicated control mechanisms. The results obtained so far, have met every expectation, which means that we succeeded in the proverbial»squaring of the circle«: The Crown expander produces pellets or other regularly shaped structures while preserving coarse particles and simultaneously agglomerating fine and finest components. The positive nutritional effect of expansion is an additional advantage which traditional pelleting does not offer. The crown expander an ideal example of a successful further development taking into account aspects of animal nutrition and process technology.

20 / amandus kahl HOWEE EBERSWALDE THE FIRST PAN GRINDER MILL APPLIED IN PRACTICE For years, the wood pelleting plant of the company HoweE near Eberswalde (north of Berlin) has worked perfectly. The main components of this plant are a belt drier with a length of 40 m and three pelleting presses type The KAHL scope of supply includes the belt drier with prebin, the silo for dried wood chips, the pelleting and cooling plant as well as the loading silos. The plant has been designed for a capacity of 7.5 t/h of pellets in its final construction stage. A special feature of the plant is the fact that there is no dry grinding unit. A chopper and a pan grinder mill type are arranged upstream of the drier. Both devices provide a product with excellent conveying and pelleting properties. About 165 tons of DIN Plus pellets are produced in this plant with three pelleting presses in threeshift operation every day. View into the pellet production plant

21 20/21 Finer than fine Ultrafine coffee grinding is a technology that requires a lot of know-how and precision. Neuhaus Neotec roll grinders set technical standards for this type of grinding. 1 For the preparation of Turkish mocca for example, the roasted coffee is crushed to an almost floury fineness. Ultrafine grinding takes it one step further the roasted coffee is very finely ground so that there is no granular structure to be felt when rubbing the ground coffee between the fingers it is simply ultrafine. With more than 40 years of experience in coffee grinding, Neuhaus Neotec offer roll grinders that represent state-of-the-art technology. The particle size of ultrafine grinding is approx. 50 µm, with the gap width between the special rolls being below 10 µ. With this process, a particularly fine and homogeneous ground product can be produced thanks to special roll drives and high-capacity cooling during the grinding process. A touch screen control system and a sensitive temperature monitoring system facilitate the control of the grinders. The special roll geometry and surface design in combination with separate drives ensure an extremely precise adjustment of the grinding degree. Furthermore, built-ups which can occur when grinding fine coffee, can be overcome by using a dynamic scraper system. Different sizes of the Neuhaus Neotec roller mills for ultrafine grinding with capacities ranging from 100 to 1000 kg per hour are available. Fig. 1 Roll grinder WMS 2 Fig. 2 Superfine coffee

22 / neuhaus neotec ENERGY SAVING DUE TO PREHEATING OF COFFEE BEANS In times of high raw material and energy costs, coffee roasters do not only have to consider the quality of their roasting processes; they also have to optimise these processes in terms of energy savings and cost reduction. An efficient way to save energy is preheating of the green coffee, which further optimises the already energy-efficient Neuhaus Neotec roasting plants. This is the functional principle of green coffee preheating: Prior to the actual roasting process, the green coffee batch is preheated to a temperature of about 100 C in a preheating chamber before it is fed into the roasting chamber. The thermal energy stored in the beans can not only shorten the subsequent roasting process but also reduce the quantity of consumed energy during roasting, which in turn causes a reduction of CO2 emissions. Neuhaus Neotec offer two different systems which reduce energy costs by up to 25 % and CO2 emissions by about a quarter. Preheating does not only reduce costs and emissions, it also increases the capacity of the roasting machines by up to 20 %. Green coffee preheating in a coffee roasting plant in Southern Germany

23 22/23 The New Drum Roaster CTR Neuhaus Neotec complement their range of products by a roasting machine for traditional speciality roasting. The roasting plants of Neuhaus Neotec stand for an innovative and progressive convection roasting technique. About 20 years ago, the introduction of the RFB roaster covering the entire range of roasting times and qualities laid the foundations of the international success of the roasting plant manufacturer. For the traditional recipes of speciality roasters, Neuhaus Neotec now complement their range of products by a new drum roaster that has been tailor-made for longer roasting times and classical roasting concepts. The CTR has a capacity of more than 3 t/h and roasts batches from 480 kg to 640 kg. However, roasters for lower capacities are also available. Even though the drum roaster is especially suited for traditional roasts, it also offers new technical solutions, high-quality safety technology and a modern energy concept. With the new CTR , Neuhaus Neotec can provide also those roasting plants with complete lines which favour the drum roaster. Thus they profit from Neuhaus Neotec's well-known competence as well as from considerably easier and more reliable planning, installation and start-up. Meanwhile, the first CTR has started production in a major German roasting plant. Now it works round-the-clock to the customer's complete satisfaction. The CTR-3000

24 / NEUHAUS NEOTEC PARTICLE TECHNOLOGY With the establishment of the new department»particle TECHNOLOGY«Neuhaus Neotec has set the course for a successful future. With our process-oriented research we open up fields of application not only in the coffee industry but also in the pharmaceutical, chemical, and food and semi-luxury items industry. In doing so we profit from synergy effects with the KAHL Group. In May 2009, we presented ourselves jointly for the first time on the occasion of the world's largest trade fair for process engineering, the ACHEMA in Frankfurt. The core competence of the new department are continuous fluidized bed processes and roller mills for low-dust grinding. Fluidized bed processes are efficient and due to the intensive exchange of heat and material they are the first choice if thermal treatment of bulk products (drying and cooling) and the formation of particles from powders (agglomeration) or liquids (spray granulation) are concerned. Top and bottom spraying processes in the fluidized bed have gained acceptance for the production of instant products and granulates for subsequent compaction, for example. There is no reason not to use continuous processes (reproducible, fully automatic, product quality). Even for capacity ranges of 10 kg/h and less this process has been applied successfully in the pharmaceutical industry, since a better understanding and control of the process are possible due to the constant conditions. For this reason the department»particle Technology«of Neuhaus Neotec Maschinen- und Anlagenbau GmbH has developed a new continuous fluidised bed pilot plant for the capacity range of 5 to 50 kg/h, with which an upscale is possible without difficulties due to the flexible plant configuration and on the basis of a long-standing know-how. The outstanding feature of this modular and thus mobile plant is an exchangeable product bin which is designed individually for the different processes, such as drying, agglomeration and spray granulation, and which covers different capacity ranges due to variation of the distribution plate. The plant is installed in the GMP area of the pilot plant building and has been available for tests since the beginning of Pilot plant 20/4

25 24/25 gmp-grinder heinen freezing Our roller mills are used for applications in the chemical, mineral and metal industry, in the food industry and in the pharmaceutical industry. The well-established laboratory grinder LWM 100 has been developed and improved especially for demanding applications in the pharmaceutical and chemical industry or in the food industry. The new design with drive system and control elements housed together in one stainless steel case allows quick and easy cleaning. All product-contacting parts are designed in stainless steel (316 L) with a surface quality of < 0.8 μm. The Heinen Freezing GmbH has more than 25 years of experience with regard to the process steps of pasteurization, freezing, cooling and conditioning in industrial food processing. Since January 1, 2010 the KAHL Group has held a majority of shares in this company. GMP conforming roller mill type LWM Neuhaus Neotec continues the brand»heinen Drying«since the beginning of 2010

26 / NEUHAUS NEOTEC Sunflower Seeds perfectly roasted In Eastern Europe, roasted sunflower seeds are a popular»in between«snack. With the RG roasters of Neuhaus Neotec these treats can be processed without problems. Flexibility and simple operation are two characteristics that define the RG specialty roasters of Neuhaus Neotec. But these attributes do not only relate to the roasting of coffee beans. Also other products, such as sunflower seeds, Pumpkin kernels, nuts and Chicory can excellently be processed with the innovative and flexible hot-air roasting technology of the Neuhaus Neotec roasters. Recently the fourth project for an RG roaster for sunflower seeds could be completed in Eastern Europe. The RG 100 and RG 150 roasting machines are designed to roast 1000 or 1500 kg per hour. Roasting is realized exclusively in a rotating motion in the hot-air current. This process and the excellent mixture provide uniform roasting of the product. The simple design of the plant, without mobile parts in the roasting or cooling chamber, ensures low maintenance requirements.

27 26/27 The Perfect Espresso Neuhaus Neotec has proved over and over again that the tried and tested RFB (Rotating Flexible Batch) roasting system meets the most varied requirements. Not only does this process combine maximum production consistency with low energy consumption and maintenance requirements RFB roasters also stand out due to their flexibility covering the whole range of roasting conditions. In particular, the very short response times, which the system owes to the low heat capacity of the roasting chamber, enable advanced methods of exerting influence on the roasting process to be applied, such as profile roasting and copy roasting processes which were developed and tried by Neuhaus Neotec a long time ago. Today, many big coffee roasters prefer the RFB especially for their espresso roasts. The low air temperature and gentle product treatment ensure a result that is second to none. As espresso market requires varied nuances of flavour, the RFB is the appropriate machine when it comes to producing perfect espresso. Capacities for espresso roasting: up to 4 t/h.

28 / NEUHAUS NEOTEC paulig Advanced technology with a spectacular architecture In summer 2009, one of the largest newly built coffee roasting plants in the world started operation in Helsinki, Finland. Neuhaus Neotec supplied almost the complete logistics and technology for the new roasting plant of Gustav Paulig Ltd. flexibility and redundancy in five grinders and have to be rapidly packed. Now he has every reason to be satisfied with himself and his staff. Meanwhile, the factory produces more than a hundred million coffee packs per year. In summer 2009, the largest roasting plant that had been built worldwide in that year started operation. The coffee roasting plant is located in the Vuosaari Harbour in the Finnish capital Helsinki and produces up to 5 tons of roast coffee per hour. This was a huge project which required not only the construction of one of the largest roasting plants in the world but also the integration of individual lines of the former Paulig roasting plant in Finland.The interior of the roasting plant as well as the silo building was planned and constructed by the German company Neuhaus Neotec which planned and supplied the entire logistics and technology from the green coffee receiving facilities to the packing lines with the exception of the roasting machines. Project manager Wilhelm Mittelstädt of Neuhaus Neotec refers to the construction of the new roasting plant as»one of the biggest projects I have ever planned and realised«. The preparatory works of this construction project lasted several years. The actual cooperation for the project began with the submission of a first offer in summer Three years later, the major part of the new roasting factory was finished and could be put into operation. Until the end of September, the new roasting plant already exceeded the roasting capacity of the former Paulig roasting plant in Finland. The main packing lines for ground coffee, for example, have a capacity of four tons per hour. Five large grinders crush the roasted beans. In total, there are 45 silos for the storage of ground coffee. Data on the roasting factory Area: approx. 32,000 m² Volume: approx. 345,000 m 3 Length x width: approx. 300 x 150 m 2 Highest point: approx. 40 m Lowest point: approx. 12 m - Green coffee receiving and storage - Coffee roasting process - Coffee grinding process and transport - Packing and palleting - Storage unit - Control room - Storage for mechanical equipment - Production offices Total investment: approx. 120 million Euro Paulig divided the project into three process sections: (1) the green coffee process (receiving, quality control, storage, and blending), (2) the roasted coffee process and (3) the ground coffee process including packing. The project manager characterizes the ground coffee transport as the most complicated task of the entire construction of the new plant. The complexity of the task consisted of planning and achieving a line capacity of five tons of coffee per hour which are ground with high

29 28/29 Enlargement of Premises 1 For some months now, the 105 employees of NEUHAUS NEOTEC do not only have had more workspace, but also a new pilot plant where the two most important fields of activity coffee processing and particle technology are united under one roof. Fig. 1 Conveying plant for ground coffee at Paulig 2 Apart from a new generous entrance area, the ground floor of the annexe building mainly accommodates the central part, i.e. the new pilot plant with a surface of about 400 m². Enough space for the research and development department where plants and installations are tested according to the customers' demands and adapted to the customers' products. These customers are mainly companies from the food and semi-luxury items industry and the chemical and pharmaceutical industry. The upper floor has a surface of 500 m² for new offices and modern conference rooms. Thanks to the the seven-digit investment in the annexe building the managing director Mr. Gustav Lührs considers the location Ganderkesee to be well prepared for future orders and projects. Should NEUHAUS NEOTEC ever be running out of space in the industrial area Hoykenkamp (Ganderkesee), the foundation for a further extension will already have been laid - as the construction of another storey is possible at any time. Fig. 2 Conveyor for ground coffee at Paulig New building with pilot plant at Ganderkesee

30 / schule COMPETENCE IN THE FIELD OF EDIBLE OIL OILSEED PROCESSING PLANT FOR SUNFLOWER, SOYA AND RAPE Recently, a combined sunflower, soybean and rapeseed oil mill has been put into operation. The Schule scope of supply comprises the entire conditioning unit including the oil-press as well as the fully automatic control system of the plant. a capacity of 12 t/h. The process steps include cleaning, grading, and flaking upstream of the oil press. Using the innovative Schule process and high-quality machines all the customers' requirements could be exceeded. The respective products are processed in the plant with the following process steps and throughputs: Sunflowers are processed at a capacity of about 15 t/h. The process steps include cleaning, grading, husking, separation of husks, sorting with variably adjustable residual husk content in the husked grain fraction, and flaking upstream of the oil press. Soybeans are processed at a capacity of about 10 t/h. The process steps include cleaning, grading, granulation, separation of husks on demand, and flaking before oil extraction. Rape is processed with The process ensures a controlled crude fibre content (protein content) of the extraction meal varying as required, as well as a minimal residual grain content in the shells/husks. START-UP OF A RICE MILL IN PERU In September, a rice mill (shelling, whitening, polishing, and colour sorting) with a capacity of 15 t/h, equipped with machines of the company Schule was started up in Peru. A new whitening technology is used in this mill. This innovative process is realised by means of the Verticone (VPC). Due to the flexibility and ease of operation of this machine, rapid optimisation of the process is possible, both for changing the types of rice to be processed and for varying quality requirements on the final product. Another advantage of the machine is its low energy consumption. Currently, the Verticone VPC 480 is the shelling machine with the highest capacity on the market. shelling degree of more than 95 % was achieved. Because of the nature of the raw material processed in Peru, characterised by a high degree of impurities (chalky), and the high demands of the local market, the colour sorting machine DCD 320 was integrated into the plant. The polishing machine RPM 2A with the round screen basket, newly developed by the company Schule, is also used in the mill. With the use of this screen basket a uniform and improved polishing effect is achieved. The new shelling machine SHA has proven its high capacity when shelling tropical paddy. Although tropical paddy is difficult to shell, a capacity of 5 t/h with a

31 30/31 1 Fig. 1 Air sifter at Ulerum 2 3 Fig. 2 View into the new rice mill in Peru Fig. 3 Plant Ulerum

32 / schule HIGH NUTRITIONAL VALUE OF DURUM WHEAT (bulgur) NEW WAYS OF OATS PROCESSING IN BELARUS Due to its durability, its good storage and flow properties as well as its high nutritional value and easy preparation, bulgur has met with great interest in many parts of the world. In comparison with other wheat products bulgur belongs to the nutritionally most valuable dishes. Bulgur is produced by means of soaking, continuous cooking and drying with subsequent husking and groating of the durum wheat. Recently, the company Schule has successfully started up a complete plant for the production of bulgur for the company Al-Gurair in Dubai. 1 Schule received the order for the modernisation of an existing oat mill and the installation of a quick-cooking and groating plant on the basis of the new continuous pressure-cooking process by Schule. After the implementation of this project the customer achieved a significant increase in quality of the final product. The new Schule steaming and cooking process is energy-saving and thus increases the economic efficiency of the plant. 1. Scope of supply of the oat processing plant It consists of the groups: Cleaning, husking, cutting, and control system 2. Scope of supply of the continuous quick-cooking plant It consists of the groups: Preparation, cooking, drying and control system 3 Fig. 1 Bulgur plant in the United Arab Emirates 2 Fig. 2 Belt cooker during start-up Fig. 3 Belt cooker in our pilot plant

33 32/33 PRECISION OF SEPARATION AT 1,000 TONS PER DAY IN THE OIL INDUSTRY Schule has once again supplied table separators type TH3 for the separation of sunflower seeds with this capacity to the new factory of the customer Mironowski in Yerki, Ukraine. The table separator is used to separate hulled sunflower seeds from unhulled seeds. The advantage of this machine over that of other manufacturers lies in the fact that even with extremely varying raw material, the residual husk content for the oil presses can be exactly adjusted. Schule has already supplied table separators to three factories of the company Mironowski. 1 2 Fig. 1 Table separator Fig. 2 Plant Mironowski Schule Food Technology For more than 100 years, F.H. SCHULE Mühlenbau GmbH have supplied machines, plants, and turnkey factories for the food industry worldwide. In past decades, Schule has successfully integrated new fields of activity such as shelling and processing of cereals, legumes, oilseeds and spices. In the pilot plant at Reinbek near Hamburg, Schule develops new efficient machines and technologies such as hydrothermal treatment (for example for processing bulgur, quick-cooking products, hygienic treatment,...) and protein shifting. Schule offer innovative solutions also in the field of alternate energies production of bioethanol.

34 / schule BIOETHANOL HIGHER PROFIT WITHOUT SHELL Ethanol that has been made exclusively from biomass (renewable carbon carriers) or from the biodegradable fractions of waste products, and which is destined for use as biofuel or for alcohol production is referred to as bioethanol. Like conventional alcohol, ethanol is obtained by (alcoholic) fermentation of sugar with the action of microorganisms, and then purified by thermal separation processes. The raw materials used are mostly locally available plants with high contents of sugar or starch: In Europe, these are wheat and sugar beet. Starch-containing raw materials such as cereals are ground. By means of enzymatic decomposition, starch is converted into sugar during liquefaction /saccharification. In the Verticone shelling machines by Schule, wheat or barley are shelled prior to grinding, which means the outer shell layers containing only crude fibres (non-fermentable substances) are removed. As a consequence, the quantity to be treated in the thermal separation process is reduced so that less energy is required for cooking, distillation and drying, which increases the economic efficiency of the process. In existing plants, in which for example barley with a shelling degree of about 10 %, is processed, an increase of 10 to 15 % of the throughput quantity and a higher efficiency can be achieved by means of pre-shelling. NIGERIA PROMOTION AND DEVELOPMENT OF AGRICULTURAL RESOURCES Nigeria occupies second place in the ranking of the world's greatest rice importers. The annual rice consumption amounts to 3.5 million tons, with about 1.5 million tons being imported. In recent years, it became more and more obvious that Nigeria is highly dependent on rice-exporting countries and has to put up with a tremendous price volatility on the global market. As a consequence, the poorest could no longer afford the drastically increased prices for rice, which caused considerable tension in the country. On the other hand, Nigeria has sufficient arable land that could be cultivated for rice production, so that the country might completely abandon the import of rice. Furthermore, due to poor technical standards in the areas of harvesting, drying, storage, and processing in the rice mills, about 30 to 50 % of the local rice harvest is lost every year. For the future, the government plans a massive promotion of local rice cultivation and treatment processes by modernising technical equipment. For this purpose, large-scale promotion programmes are provided. For more than 50 years, Schule have supplied parboiling plants and rice mills to Nigeria and other African countries. At the moment, a turnkey rice processing plant with a parboiling plant and a rice mill is being assembled in the North of Nigeria. When the plant was designed, particular attention was paid to a sturdy design of the machines and to a control system that is adapted to the local personnel. Economic efficiency was an important aspect in the project realisation. This plant is an important contribution to the promotion of the rice industry. Technically, the plant is able to convert locally cultivated paddy rice into rice with a final quality comparable to that of imported rice without any loss during processing. The supply of further plants might help processing the available agricultural resources more gently so that they may contribute to achieve food security. At present, further orders for the modernisation /extension of existing Schule rice processing plants are being processed and will be completed shortly. With their experience in the fields of drying, cleaning, and parboiling and rice milling technology, Schule is an important partner for the Nigerian rice industry.