It all began with the War of the Currents…

Today, people greatly appreciate having electrical energy available at the flip of a switch, seemingly at any time and for any occasion. But where does electricity actually come from? The answer most people would give you is: “from the wall socket, of course”. So does this automatically settle the question of security of supply? More on this later.

If we compare the history of electric current with the 75 years of the history of Camille Bauer Metrawatt AG, it is easy to see how they were interlinked at certain times in the course of their development. Why is that?

It all began with the War of the Currents – an economic dispute about a technical standard

It was around 1890 when the so-called War of the Currents started in the USA. At that time, the question was whether the direct current favoured by Thomas Alva Edison (1847-1931) or the alternating current promoted by Nicola Tesla (1856-1943) and financially supported by George Westinghouse (1846-1914), was the more suitable technology for supplying the United States of America with electrical energy over large areas and constructing power grids. Because of Westinghouse’s market dominance at that time compared to Edison General Electric (called General Electric from 1890 on), it soon became clear that the alternating voltage invented by Nicola Tesla was rapidly gaining the upper hand. This was not least because its approximately 25% lower transmission losses weighed unquestionably in its favour. Soon afterward, came the breakthrough for alternating voltage as the means of transmitting electrical energy using. Initially, the main target application was electric lighting, which to be spurred on by the invention of the incandescent lamp by Edison. The reasons for this were logical. Westinghouse was initially a lighting manufacturing company and wanted to secure as great a market share as possible.

As developments continued, it is no surprise that already by 1891, in Germany for example, the first long-distance transmission of electrical energy was put into operation, over a distance of more than 170 km from Lauffen am Neckar to Frankfurt am Main. It was a technological breakthrough using three-phase current technology. However, this has by no means been the end of the story for direct current. Not least because of digitalization, electromobility, decentralized energy supplies, etc., DC voltage has experienced a full-blown renaissance and now is treated almost as a brand-new topic.

The Camille Bauer story.
The foundation of the Camille Bauer company dates back to 1900, immediately after the War of the Currents just described, at a time when electricity was rapidly gaining in importance. At the turn of the century, the Camille Bauer company, named after its founder Camille Bauer-Judlin, began importing measuring instruments for the trendy new phenomenon called “electricity” into Switzerland for sale to the local market. Some years later, in 1906, Dr. Siegfried Guggenheimer (1875 – 1938), formerly a research scientist for Wilhelm Conrad Röntgen (1845 – 1923) and who in 1901, became the first winner of the Nobel Prize for physics, founded what was a start-up company in Nuremberg, Germany, trading under his own name. The company was engaged in the production and sale of electrical measuring instruments. However, due to pressure from the Nazis because Dr. Guggenheimer was of Jewish descent, he had to rename the company in 1933, creating Metrawatt AG.

Four technological segments.

In 1919, a man by the name of Paul Gossen entered the picture. He was so dissatisfied with his employment with Dr. Guggenheimer that he founded his own company in Erlangen, near Nuremberg, and for decades the two rivals were continuously in fierce competition with one another. In 1944, towards the end of the Second World War, Camille Bauer could see that its importing business had virtually come to a standstill. All the factories of its suppliers, which were mainly in Germany (for example Hartmann & Braun, Voigt & Haeffner, Lahmeyer, etc.), had been converted to supplying materials for the war. At this point, a decision had to be made quickly. Camille Bauer’s original trading company located in Basel (CH), undertook a courageous transformation. In order to survive, it turned itself into a manufacturing company. In a first step, the recently formed manufacturing company Matter, Patocchi & Co. AG in Wohlen (CH) was taken over, in order to be get the business up and running quickly with the necessary operating resources at their disposal. Thus the Swiss manufacturing base in Wohlen in the canton of Aargau was born.

The story does not end there. In 1979, Camille Bauer was taken over by Röchling a family-owned company in Mannheim, Germany. At that time, Röchling wanted to quit the iron and steel business and enter the field of I&C technology. Later, in 1993, Gossen in Erlangen and Metrawatt in Nuremberg were reunited in a single company, after Röchling became owner of the Gossen holding company as a result of the acquisition of the Bergmann Group from Siemens in 1989, and Metrawatt was acquired from ABB in 1992. At the same time, Camille Bauer’s German sales operation in Frankfurt-Dreieich also became a part of the company. Today the companies operate globally and successfully under the umbrella brand of GMC-I (Gossen Metrawatt Camille-Bauer-Instruments).

A new era.
The physics of electric current have not changed over the course of time. However, business conditions have changed drastically, especially over the last 5-10 years. Catch phrases such as electricity free market, collective self-consumption, renewable energy sources, PV, wind power, climate targets, reduction of CO2 emissions, e-mobility, battery storage, Tesla, smart meters, digitalization, cyber security, network quality, etc. are all areas of interest for both people and companies. And last but not least, with today’s protest demonstrations, climate change has become a political issue. We will have to see what results from this. At the very least, the catch phrases mentioned above are perfect for developing scenarios for electricity supply security. And it really is the case that the traditional electricity infrastructure, which is often as old as Camille Bauer Metrawatt itself, was not designed for the new types of energy behaviour, either those on the consumer side or the decentralised feed-in side. As a result, it is ever more important to have increasing numbers of intelligent systems which need to work from basic data obtained from precise measurements in order to avoid outages, blackouts and resulting damage.

The overall diversity of these new clusters of topics has prompted Camille Bauer Metrawatt AG to once more face the challenges with courage and above all to do so in an innovative and productive way. In this spirit, Camille Bauer Metrawatt AG develops, produces and distributes its product range globally in 4 technological segments.

These are:
(1) Measurement & Display,
(2) Power Quality,
(3) Control & Monitoring,
(4) Software, Systems and Solutions.

Through its expert staff, modern tools and external partners Camille Bauer Metrawatt is able, for example, to analyse power quality and detect power quality problems. In addition, the Camille Bauer Metrawatt Academy, recently founded in 2019, puts its focus on knowledge transfer by experienced lecturers, with the latest and most important topics as its main priority. Furthermore, we keep in very close contact with customers, authorities, associations, specialist committees, educational institutions, practice-oriented experts and the scientific community in order to continually provide the requisite solutions to the market and interested parties.

#Camille_Bauer_Metrawatt #PAuto @irishpwrprocess

Interesting facts emerge from financial report.

E+H reports sales flat, but sees growth in Ireland, reports Processingtalk.info‘s  Nick Denbow from Basel.

This year, Endress+Hauser expanded the presentation of their annual financial results, inviting journalists from not only Germany and Switzerland, but including others from Belgium, the Netherlands and Great Britain. In all 70+ attendees heard Klaus Endress and Matthias Altendorf say that the consolidated Group sales fell slightly between 2015 and 2016, by 0.2%, achieving Euro2.1Bn. This fall was actually only because of currency fluctuations. “Currencies created a headwind for us last year,” said Altendorf. Working from the value of sales in local currencies, sales in total actually increased by 2.1%. Whilst the Group is family owned, their annual report is published and audited to the standards expected of any other international business.

CEO Matthias Altendorf emphasised that “When compared to overall industry growth, we held our own”. E+H performed well in Europe, but sales in America declined. Africa and the Middle East experienced solid growth, but in the Asia-Pacific region business stagnated.

Within Europe, the best performances for E+H came from Ireland, Italy and Finland. The best performing sectors in all countries were food & beverage, life sciences, and water & waste water. Overall business declined in oil & gas, chemicals and primary industries like metals. The power and energy industry sectors showed good performance outside Germany, where E+H also felt the effect of weak German exports and some internal restructuring. The oil & gas decline badly affected sales in USA, UK and Norway, although the UK sales centre gave a good performance by aligning efforts with other active market sectors.

Investment continues.

Production

E+H plans for investment and growth continue for the current year. Earlier in the week a new factory extension was opened in Reinach, where flow products are manufactured. (see Read-out Signpost – “Flowmeter output growth requires new facilities” – 5 May 2017).  The journalists were given a tour of the manufacturing facility in Maulberg (D), where a new extension to the production area is in operation, and a new NMi level measurement system calibration facility for radar based systems has just been completed. This is certified suitable for calibration of the Micropilot NMR81 radar system, working at 80GHz, which achieves a +/-0.5mm accuracy over a 30m range, for use in oil storage tanks and oil terminals. There are plans now to extend this calibration facility to allow such calibration out to 40metres, as well as to extend the factory yet further: 1912 people work at E+H Maulburg, and 5200 people in the Basel region, out of the total E+H staff of 13,000.

Analytical measurements
The biggest growth area in E+H is actually in the analytical instruments that use Raman spectroscopy to analyse liquid and gas streams on-line. The major industries now applying this technique are within the life sciences sector, where immediate analysis of input and both gaseous and liquid effluent streams enables much closer control of biochemical and fermentation processes. Indeed the 2017 issue of the E+H corporate magazine “Changes” features a major focus on new applications in the Life Sciences industries.

Other new analytical techniques are developed for monitoring water treatment processing, for example in the new Swiss plants which by law have to have a fourth stage of purification, to remove hormones, phosphorus and other drug residues. The strength of E+H here derives from their strategic decision a few years ago to invest in the process analytical area, particularly in the field of spectroscopy, acquiring Kaiser Optical, Analytik Jena and SpectraSensors. “Our analytics strategy has been validated by the market,” said Matthias Altendorf.

Bundling IIoT activities

Digitization

The acquisition of German SensAction AG in early 2017 also ties in with Strategy 2020+ which was rolled out last year. The company, headquartered in Coburg (D), manufactures innovative systems for measuring concentrations in liquids. Endress+Hauser is tackling the challenges of digitalization by bundling a number of activities. A new subsidiary in Freiburg in Breisgau,(D), is working exclusively on products, solutions and services related to the Industrial Internet of Things (IIoT).

The significance of digitalization can also be seen in the growing number of patent registrations. There were 273 first filings in 2016. The intellectual property rights portfolio thus boasts more than 7,000 active patents. R&D spending rose to 7.8 percent of sales. Endress+Hauser introduced 64 new products to the market. “We are investing in innovation for our customers,” underlined the CEO.

Trends in automation.
The focus for E+H sales and their customer base is broadly on automation engineers, so it was interesting to hear Matthias Altendorf comment that the statistics for industrial output show that the Britain has now dropped out of the top 10 countries in terms of automation business activity, whereas they had held a prominent position there some years ago.

The other aspect of interest was that there are distinct differences between countries, in terms of the sex of the engineers involved in the major projects served by E+H. In Germany they are mostly male, whereas the majority of engineers in Turkey are female. In South Korea and India there are high percentages of female engineers (and engineering journalists). Also, by industry, it is noticeable that in the biochemical and life science sectors the engineers are predominantly female.

 @Endress_Hauser #PAuto #IoT

Closing historic gap in machine and factory automation.

B&R, the largest independent provider focused on product- and software-based, open-architecture solutions for machine and factory automation worldwide has been acquired by ABB.

B&R, founded in 1979 by Erwin Bernecker and Josef Rainer is headquartered in Eggelsberg, Austria, employs more than 3,000 people, including about 1,000 R&D and application engineers. It operates across 70 countries, generating sales of more than $600 million (2015/16) in the $20 billion machine and factory automation market segment. The combination will result in an unmatched, comprehensive offering for customers of industrial automation, by pairing B&R’s innovative products, software and solutions for modern machine and factory automation with ABB’s world-leading offering in robotics, process automation, digitalization and electrification.

A video of This announcement and other details here on the ABB Website (4 April 2017)
Benefits for Austria
With this acquisition, ABB becomes the largest industrial automation player in Austria. ABB has operated in Austria for more than 100 years. With the strong future role, B&R and its headquarters in Austria will play as part of ABB, Austria, particularly Upper Austria, will benefit. The planned expansion of the R&D and production activities in Eggelsberg and Gilgenberg will strengthen Austria’s high-tech industrial landscape.
Transaction financials
The transaction multiple is in line with peer valuations. The parties agreed not to disclose the purchase price. ABB will finance the acquisition in cash. The transaction is expected to be operationally EPS accretive in the first year, and is expected to add significant synergies of about 8% of B&R’s stand-alone revenue in year four. The transaction is expected to close in summer 2017, subject to customary regulatory clearances.

Through the acquisition, ABB expands its position in industrial automation and be uniquely positioned to seize growth opportunities resulting from the Fourth Industrial Revolution (Industrie 4.0). In addition, ABB takes a major step in expanding its digital offering by combining its industry-leading portfolio of digital solutions, ABB Ability, with B&R’s strong application and software platforms, its large installed base, customer access and tailored automation solutions.

“B&R is a gem in the world of machine and factory automation and this combination is a once-in-a-lifetime opportunity. This transaction marks a true milestone for ABB, as B&R will close the historic gap within ABB’s automation offering. This is a perfect fit and will make us the only industrial automation provider offering customers the entire spectrum of technology and software solutions around measurement, control, actuation, robotics, digitalization and electrification,” said ABB CEO Ulrich Spiesshofer. “This acquisition perfectly delivers on our Next Level strategy. With our unique digital offering and our installed base of more than 70 million connected devices, 70,000 control systems and now more than 3 million automated machines and 27,000 factory installations around the world, we enable our combined global customer base to seize the huge opportunities of the Fourth Industrial Revolution.”

“This combination offers fantastic opportunities for B&R, its customers and employees. We are convinced that ABB offers the best platform for the next chapter of our growth story. ABB’s global presence, digital offering and complementary portfolio will be key for us to further accelerate our pace of innovation and growth,” said Josef Rainer, co-founder of B&R.

“This is a strong signal for our employees as our operations in Eggelsberg will become ABB’s global center for machine and factory automation,” said Erwin Bernecker, the other co-founder of B&R. “The most important thing to me is that the companies and their people fit so well together and that our founding location will play such a key role.”

Complementary strengths
With the acquisition, ABB will expand its industrial automation offering by integrating B&R’s innovative products in PLC, Industrial PCs and servo motion as well as its software and solution suite. ABB will offer its customers a uniquely comprehensive, open-architecture automation portfolio.

B&R has grown successfully with a revenue CAGR of 11 % over the last two decades. Revenues more than quintupled since 2000 to more than $600 million (2015/16). The company has a rapidly growing global customer base of more than 4,000 machine manufacturers, a proven track record in automation software and solutions and unrivaled application expertise for customers in the machine and factory automation market segment.

Both companies have complementary portfolios: ABB as a leading provider of solutions serving customers in utilities, industry and transport & infrastructure; B&R as a leading solution provider in the automation of machines and factories for industries such as plastics, packaging, food and beverage. The joint commitment to open architecture increases customer choice and flexibility facilitating connectivity in increasingly digitalized industries.

Substantial investments in innovation
Innovation is at the heart of both companies. B&R invests more than 10 percent of its sales in R&D and employs more than 1,000 people in R&D and application engineering. ABB spends $1.5 billion annually on R&D and employs some 30,000 technologists and engineering specialists. Going forward, ABB and B&R will continue to invest considerably in R&D.

Automation of machines and factories is a key driver of the Fourth Industrial Revolution and the IoT. ABB will continue B&R’s strong solution-based business model and build on its deep domain expertise to develop new software-based services and solutions for end-to-end digitalization. ABB’s industry-leading digital offering, ABB Ability, will now capitalize on the large installed base, application and solution know-how, simulation software expertise and advanced engineering tools of B&R.

Proven integration approach
On closing of the transaction, B&R will become part of ABB’s Industrial Automation division as a new global business unit – Machine & Factory Automation – headed by the current Managing Director, Hans Wimmer. Both companies consider B&R’s management and employees as a key driver of future growth and the business integration together with their counterparts from ABB. The co-founders of B&R, Erwin Bernecker and Josef Rainer, will act as advisors during the integration phase to ensure continuity.

The integration will be growth-focused and live by the “best-of-both-worlds” principle, with ABB adding its own PLC and servo drive activities to the offering of the new business unit in a phased approach. ABB underlines its clear commitment to continuing the B&R growth story by articulating a mid-term sales ambition to exceed $1 billion.

ABB is committed to further investing in the expansion of B&R’s operations and to building on the company’s successful business model and brand. B&R’s headquarters in Eggelsberg will become ABB’s global center for machine and factory automation.

@ABBgroupnews #PAuto #Industry4