Fluid Machinery & Systems Company

Transcription

1 Message from the Company s President Human rights Labour The environment The Fluid Machinery & Systems Company conducts business with a focus on the fluid machinery products and systems including pumps, a core product since our founding, as well as compressors, steam turbines, and chillers. It is our corporate social responsibility to respond to issues concerning people s lives, industry and social infrastructure in regions around the world based on the technology that we have cultivated to date and our extensive experience. In the pumps business, we developed new products with the aim of raising customer satisfaction and released global core products that include regional products tailored to the conditions of each region as well as those that can be used in markets around the world. In order to respond promptly to customer needs, we have established several new business sites in the Middle East, Southeast Asia, and other regions and enhanced the sales, packaging, and service functions of existing sites. In the compressors and turbines business, we further expanded our global network of sales and service sites and began operating service shops in China and India to reinforce customer-oriented service and support systems. In the chillers business, we reinforced product sales systems in China, Southeast Asia, and other regions to expand the supply of products to overseas customers. We will continue providing products that meet customer needs (quality, price, and delivery time) while creating service and support businesses that encompass the entire product life cycle to raise customer satisfaction even further. Main Fluid Machinery & Systems Company The Fluid Machinery & Systems Company has established 58 local subsidiaries in Japan and numerous regions around the world. These subsidiaries serve as the base for global supply of products and services for facilities that support society, industry and life. They operate in countries and regions globally in the fields of social and economic infrastructure for oil, gas, electricity, Europe and Africa Ebara Pumps Europe S.p.A. Sumoto S.r.l. Ebara Pompy Polska sp. z o.o. Ebara Espana Bombas S.A. Ebara Pumps RUS Limited Liability Company and others (8 in total) Atsuo Ohi Senior Managing Executive Officer President Fluid Machinery & Systems Company China and East Asia Ebara Machinery (China) Co., Ltd. EBARA MACHINERY ZIBO CO., LTD. EBARA GREAT PUMPS CO., LTD. YANTAI EBARA AIR CONDITIONING EQUIPMENT CO., LTD. EBARA DENSAN (KUNSHAN) CO., LTD. EBARA DENSAN (QINGDAO) TECHNOLOGY CO., LTD. Ebara Fluid Machinery Korea Co., Ltd. and others (13 in total) water and sewer systems as well as various industrial production facilities and building services for apartment buildings and other structures. Through our close connection to customers we contribute to the improvement of living conditions and the development of industry in each region. Japan EBARA CORPORATION Elliott Ebara Turbomachinery Corporation Ebara Refrigeration Equipment & Systems Co., Ltd. EBARA DENSAN LTD. EBARA MATERIAL CORPORATION Ebara Hamada Blower Co., Ltd. Ebara Byron Jackson Co., Ltd. and others (12 in total) North America Ebara International Corporation Elliott Company and others (7 in total) 30 Middle East Ebara Pumps Middle East FZE and others (4 in total) South Asia Kirloskar Ebara Pumps Limited and others (2 in total) Southeast Asia and Oceania Ebara Vietnam Pump Company Limited P.T. Ebara Indonesia Ebara (Thailand)Limited Ebara Pumps Malaysia Sdn. Bhd. Ebara Engineering Singapore Pte. Ltd. Ebara Pumps Philippines, Inc. Ebara Pumps Australia Pty. Ltd. Ebara Thermal Systems (Thailand)Co.,Ltd. and others (10 in total) South America Ebara Industrias Mecanicas e Comercio Ltda. and others (2 in total)

2 Goals for 2019 We are building efficient business structures in order to enhance our presence (market shares) in global markets, by engaging in the priority tasks of expanding our business scale in growing overseas markets and improving profitability in the mature market in Japan. In keeping with the perspective that thorough examinations of customer needs are the source of product competitiveness, we will enhance our Business Strategy under E-Plan2016 Opportunities Growth potential of pump demand in emerging-market countries, particularly in Asia Expansion of ethylene plants and oil refineries, particularly in North America and Asia Offering a diverse range of service and support to customers Risks Declining price competitiveness as a result of yen appreciation Rapid change in energy markets, particularly in the oil and gas markets Pumps Business Compressors and Turbines Business Chillers Business Eliminate conservative corporate culture Become number one in Asia Top three in the world Orders / Net Sales billion Spread of the Elliott brand Achieve sales of 200 billion Sales target 393 functionality that will enable us to offer quality, prices and delivery that meet customer needs while creating service and support business across the entire lifestyle of the product. Additionally, we will reinforce our core technologies* 1 in an ongoing and strategic manner, while enhancing our market coverage through product development. billion Improve profitability in Japan Achieve the top share of the chillers market in China and Southeast Asia Achieve overseas sales percentage of at least 50% Operating Income / Operating Income Ratio % or more % The environment Labour Human rights E-Plan2016 Targets Orders Net Sales 2016 Targets Operating Income (left scale) Net Sales (2016) Targets Operating Income Ratio (right scale) 393 billion Operating Income (2016) 33 billion Operating Income Ratio (2016) 8.0% or more For further details, see the Integrated Report. 0 *1: [ Our core technologies] Hydro and-aero design technology, oscillation-and-structural analysis technology, material application technology, electrical and electronic technologies, production and quality control technology associated with molding, bonding, processing, measuring, and automation, etc. 31

3 Human rights Labour The environment Pumps Business Basic Policies (1) We will engage in speedy product development that meets customer needs (quality, price and delivery), and launch competitive new products on the market. (2) We will increase the number of locations equipped with sales, service and packaging functions on a global basis and establish a new business model by aligning sales and S&S* 1 (including S&S of other companies products). (3) We will thoroughly reduce costs by such means as the revision of basic product design, while globally optimizing the procurement system and the product supply system through the coordination of data among the production, sales and service locations. Main Results in 2014 and Future Plans Development of Overseas In 2014, we established sales locations in the Netherlands, Dubai, Brazil and Vietnam. In the future, we will establish new locations with particular priority on those regions with high delivery results (Saudi Arabia, Indonesia, Brazil, India, etc.) We currently have regional headquarters in three regions (China/East Asia, Southeast Asia, and the Middle East) in order to respond promptly to the diverse customer needs of each region. We will establish regional headquarters in all eight regions globally by the end of Product Development In the field of custom pumps, we developed and improved water pumps for water infrastructure and power generation facilities, seawater intake pumps, boiler feed water pumps for power stations, and other pumps and received orders from customers in China and the Middle East. With regard to standard pumps, we released new stainless steel vertical multi-stage pumps (EVMS model) as part of our core global products. In the Japanese market, we redesigned HPE model household pumps for the first time in seven years and began sales in October HPE models are used in ordinary households to supply water from wells and to provide additional pressure to city water. The new models use 48% less energy compared to earlier models and are quieter at 41 db. Other energy-saving products with IE3-compatible motors include the SE (Save Energy) series, launched in advance of the top runner regulations introduced in April 2015, and in April 2015 all applicable products were redesigned. Overseas-based Development in the Pumps Business Overall Image of Business Europe/Africa North America Netherlands July 2014 Dubai Full-scale operations in April 2014 Middle East New locations (established) Blue frame Established locations Central Asia New locations (planned) Red frame China/East Asia South Asia Vietnam January 2015 Southeast Asia/Oceania New locations (planned) to be established during 2015 Location establishment plans under E-Plan2016 Headquarters Green frame Existing pumps business locations To be established by 2019 Brazil October 2014 South America 32 *1: [S&S ] Service & Support

4 HPE model household pump 2014 Topics Water Supply Pipeline Pump with EBARA s Highest Ever Electric Motor Output (C-Type Double-Suction Single-Stage Volute Pump) We received an order from the Saline Water Conversion Corporation in Saudi Arabia for 24 water supply pipeline pumps to be used in a major national project. The pumps will transport approximately 710,000 m 3 of desalinated water each day from a desalination plant on the coast of the Red Sea through a pipeline with a total length of 610 km to cities such as Medina, a holy city of Islam in the Saudi interior, and will serve as crucial products that determine the success or failure of the project. These pumps are based on the advanced technological capabilities and operating experience that EBARA has gained through the manufacture of large high-pressure pumps over many years. The pump models selected for this project are in a world-leading class and boast the highest lift and highest electric motor output in EBARA s history. New Stainless Steel Vertical Multi-Stage Pumps Released In March 2015, EBARA released new stainless steel vertical multi-stage pump (EVMS model) as a core global product that can be used in markets worldwide. EVMS model pumps are used as water supply units in industrial fields such as industrial water supply, washing water, hot and cold water circulation and building services. The main improvement was adopting a pump impeller in the shape of a throwing star to reduce the load on the motor, which increases the life of the motor bearing and makes it possible to select a standard motor. In addition, energy savings were achieved by increasing pump efficiency and we were able to meet a broad range of customer needs including reliability and lower cost. Going forward, by rapidly introducing competitive products that meet customer needs, we can expand our core global product lineup and regional products tailored to local needs. New stainless steel vertical multi-stage (EVMS model) pump Concurrent discharge: 1 m 3 /h 20 m 3 /h The environment Labour Human rights The water supply pipeline construction site (the pipeline will have a total length of 610 km) New impeller design * A registered trademark in Europe 33

5 Human rights Labour The environment Compressor and Turbine Business Basic Policies (1) Comprehensively carry out group operations through global organizations and build global integrated production management systems to accelerate decision-making. (2) Increase product competitiveness and reinforce productivity to steadily link market expansion to increase orders and reinforce service and support capabilities while achieving both quantitative and qualitative growth. (3) Implement a global productivity innovation movement based on scientific approaches to promote optimization of manufacturing processes, increase adaptability with regard to prices, delivery times, and quality, and enhance competitive superiority. Main Results in 2014 and Future Plans Elliott Group, which is active in the compressor and turbine business, is currently expanding and developing its global network of 34 business sites in accordance with its basic principle of reinforcing service and support capabilities. In 2014, the Group constructed new service bases in China and India and began operations. Preparations are also underway for a new site in Saudi Arabia which is scheduled to begin operations in Topics The compressors and turbines supplied by Elliott Group are positioned among the most important equipment for oil and gas production, petrochemicals and many Elliott Group Facilities others. As a result, high reliability and efficiency as well as prompt after-sale service are required at all times. To give some examples of activities undertaken in 2014, an order was received from a customer in Saudi Arabia to disassemble, inspect, and repair a compressor and turbine manufactured by another company. All of the work was completed without incident during the planned shutdown period, and Elliott was praised by the customer as its best service provider. In Kuwait, an order was received to inspect, repair, and modify one of the region s largest ethylene manufacturing lines. The work was completed with a limited shutdown period, and Elliott Group received praise from the customer for being an exceptional inspection and modification service provider. Elliott Group also received an order from a business site of a global oil company in Thailand to conduct technical training including maintenance of a steam turbine manufactured by another company. Working without manuals or instructions the Group conducted a detailed investigation of the steam turbine and provided a fiveday training program. The Group was evaluated highly by the customer for its specialized knowledge and the content of the training. In this way, Elliott Group does not just supply products, but also provides a wide variety of highly reliable services including after-sales services for both its own products and the products of other manufacturers according to customer needs, contributing to customer value creation. Manufacturing facilities 2016 Dammam 2015 Tianjin Service facilities Sales & service offices 2015 Bangalore 34

6 Chillers Business Basic Policies (1) With regard to business in Japan, improve the profitability of product sales and expand and enhance the product lineup to meet user needs and establish a stable profit structure. (2) With regard to overseas business, set China and Southeast Asia as priority areas and introduce and increase sales of products that meet market needs in each area in order to expand the scale of business and increase presence. (3) Establish development and production systems at bases in Japan and China, efficiently use resources at both bases, and release products that meet market needs in a timely manner. Main Results in 2014 and Future Plans In 2014, the first year of the E-Plan2016, we expanded service offerings in the service and support business in Japan and reinforced orders received with a focus on our areas of specialization regarding chiller products. In the cooling tower business, we increased market share by capturing market demand. Business in China was affected by market stagnation in some industries, but sales of cooling towers and electrical chillers increased in a broad range of industries. In Southeast Asia, we conducted business through an integrated system ranging from product sales to service and support centered on the local base in Thailand. In 2015, we have optimized production systems throughout the chillers business to enhance product appeal and bolstered development and technology production systems to reinforce technology relating to products, services, and support. In overseas business, we have developed systems for supplying products overseas and reinforced operations in Europe, the Middle East, and the CIS region. We will also use group resources to accelerate development and will take measures to expand overseas business Topics A greenhouse gas emissions reduction project being implemented by Ebara Refrigeration Equipment & Systems Co., Ltd. (ERS) and NIPPON KOEI CO.,LTD. in Indonesia was registered on October 31, 2014 as the first project facility support program under the Joint Crediting Mechanism (JCM)* 1 of the Ministry of the Environment. ERS and Nippon Koei enlisted and participated in the JCM facility support program in 2013 and delivered an RTBF050 energy-saving Centrifugal chiller to PT. Primatexco Indonesia. On September 17, 2014, the methodology (greenhouse gas reduction confirmation method) was approved by the Japan-Indonesia JCM Joint Committee, and following a review of the project design statement by a third-party organization, it was registered as a JCM project. Registered as first JCM project (October 2014) Representative model type As a result of this project, greenhouse gas emissions will be reduced by 800 tons of CO2 by 2020, contributing to achieving Japan s greenhouse gas emissions reduction target through the JCM. ERS will continue contributing to global warming countermeasures through our high-quality products and services. Chillers Business Bases Yantai Ebara Air Conditioning Equipment Co., Ltd. Plants: 3 sites in Yantai City Sales offices: 28 sites in Beijing and other locations in China EBARA THERMAL SYSTEMS (THAILAND) CO.,LTD Sales office: Bangkok Ebara Refrigeration Equipment & Systems Co., Ltd. Plants: 3 sites Sales offices: 18 sites in Japan *1: [ Joint Crediting Mechanism (JCM)] The JCM quantitatively evaluates Japan s contribution to the reduction and absorption of greenhouse gases achieved by expanding the use of greenhouse gas reduction technologies, products, systems, services, infrastructure, and so on and taking measures in developing countries and is used to achieve Japan s reduction targets. Projects are comprised of feasibility studies made up of project planning studies (PS) and feasibility studies (FS) as well as facility support projects. The feasibility studies are investigations to determine whether a project can be implemented and are intended mainly to develop JCM methodologies (methods of confirming greenhouse gas reductions) and preparing project design documents (PDD). Facility support projects provide financial subsidies for delivery of the actual equipment and are intended to reduce greenhouse gas emissions. The environment Labour Human rights 35