Commercial Marine Presentation 2010
Company Overview 2008 Revenue $605M ~2,000 associates worldwide 16 production facilities - 7 countries 300+ direct sales and marketing associates 450+ authorized distributors - 79 countries Headquartered in Richmond, VA NYSE: CFX 2 & 3 Screw Pumps Commercial Marine Centrifugal Pumps Oil & Gas Progressive Cavity Pumps Products End Markets Power Generation Fluid Handling Systems Precision Gear Pumps Global Navy Specialty Valves General Industrial 25% 14% 14% 6% 41% Colfax is strategically focused on serving key infrastructure end markets in the fluid-handling industry 2
Historical Milestones Acquired Ameridrives Colfax Formed Acquired Imo Industries, Nuttall Gear, Industrial Clutch Acquired Allweiler Acquired Warner Electric Acquired Zenith Pump and PVI Acquired Tushaco Acquired LSC and Fairmount Automation 1995 1997 2000 2004 1996 1998 2001 2005 2007 2008 Divested Gems Sensors Divested Roltra Morse Divested Warner Motion Control Divested Morse Controls Divested Colfax Power Transmission Group Initial Public Offering Colfax is strategically and solely focused on the fluid-handling industry 3
Colfax Business System Drives Business Improvement Derived from the proven Danaher Business System Utilizes Voice of the Customer ( VOC ) to target breakthrough growth initiatives, new products and applications Conducts root-cause analysis, develops process improvements and implements sustainable systems Culture of continuous improvement All aspects of operations and strategic planning CBS is how we manage our business and has been the key driver to our success 4
Well Positioned to Serve our Customers Global Leader in Specialty Fluid-Handling Products Proven Application Expertise in Solving Critical Customer Needs Extensive Global Sales, Distribution and Manufacturing Footprint Portfolio of Leading Product Brand Names Experienced Management Team Focused on Meeting Customer Needs Global Strength and Strong Financial Position 5
Colfax Solutions Commercial Marine Colfax helps keep the ocean s freight dependably moving around the world with on-site service virtually anywhere. Technology and application expertise Oil, Lube, hydraulics and fuel Water and ballast Sludge and Bilge Trimming and cooling Product Brands Allweiler Houttuin Imo AB 6
Product Overview 3-Screw Pump Centrifugal Pump 2-Screw Pump Progressing Cavity Pump Pump units Automation 7
EMISSION REGULATION MARPOL Annex VI
Regulatory Time Line 9
ECAs and Sulfur Limits California Air California + 24 nautic miles Phase I Resources Board 1.5 % MGO (DMA) after 1.7.2009 0.5% MDO (DMB) after 1.7.2009 Phase II 0.1% MGO/MDO after 1.1.2012 EU DIRECTIVE 2005/33/EC EU at berth 0.10 % after 1.1.2010 IMO MARPOL, ECA under development Pushing to be approved for earlier dates. ECA since 2007 Annex VI Global limit sulphur % 4.50 % Today 3.50 % on or after 1.1.2012 [ ] 0.50 % on or after 1.1.2020 Emission Control Areas 1.50 % Today 1.00 % on or after 1.3.2010 0.10 % on or after 1.1.2015 10
Changes and Trends in Fuel Specs SULPHUR LIMITS OF MARINE FUELS Enforcement date Sulphur limit Grade Operating area Reference (% m/m) 4.50 All grades Global limit MARPOL Annex VI Already in force 0.10 MGO EC territory and waters Directive 1999/32/EC as amended by Regulation 1882/2003 and Directive 2005/33 1.50 All grades Baltic ECA Directive 1999/32/EC as amended by Regulation 1882/2003 and North Sea ECA Directive 2005/33 MARPOL Annex VI 1.50 MGO (DMA) CARB (mandatory use of either MGO or MDO with the set Early 2009 0.50 MDO (DMB) California waters and 24 NM of maximum sulphur limits to auxiliary engines) 1 July 2009 1.50 MGO (DMA) the California baseline CARB (mandatory use of either MGO or MDO with the set 0.50 MDO (DMB) maximum sulphur limits to main propulsion engines and boilers) 1 January 2010 0.10 All grades EC inland waterways and at berth for > 2 hours Directive 1999/32/EC as amended by Regulation 1882/2003 and Directive 2005/33 Baltic ECA Revised MARPOL Annex VI 1 July 2010 1.00 All grades North Sea ECA adopted by Resolution MEPC.176(58) 1 January 2012 3.50 All grades Global limit Revised MARPOL Annex VI adopted by Resolution MEPC.176(58) 1 January 2012 0.10 MGO (DMA) MDO (DMB) California waters and 24 NM of the California baseline CARB (mandatory use of either MGO or MDO with the set maximum sulphur limits to all engines) Baltic ECA 1 January 2015 0.10 All grades North Sea ECA Revised MARPOL Annex VI adopted by Resolution MEPC.176(58) 1 January 2020 0.50 All grades Global limit Revised MARPOL Annex VI adopted by Resolution MEPC.176(58) MGO: ISO 8217-DMA and DMX MDO: ISO 8217 DMB and DMC A review, to be completed by 2018, will establish whether this grade of fuel oil will be available. If not, this implementation date may be changed to 1 January 2025. 11
ISO 8217 ISO 8217 Fuel Standard, Third edition 2005-11 Parameter Unit Limit DMX DMA Density @ 15 C Kg/m 3 Max - 890 Viscosity @ 40 C mm 2 /s Max 5,5 6,0 Viscosity @ 40 C mm 2 /s Min 1,4 2,0 1,5 2,0 Sulfur %(m/m) Max 1,0 1,5 Flash point C Min 43 60 Lubricity, HFRR µm Max - 520-520 Subject to change in the new revision Not regulated in existing spec. subject to change Not allowed onboard due to low flash point Values that have been discussed and that are subject to changed in the new revision marked in red. Revision is expected to be launched in June/July 2010. 12
Typical DMA Visc. Temp Diagram Ambient temperature in an engine room easily reaches 40 C. Sometimes even higher, in some cases as much as 55 C. Excessive heat from pipes and engines will raise the temperature even further Viscosity will fall causing significant change of operating conditions in the system. DMA visc. acc. to ISO 8217 1.5 typical DMA visc. 13
Low Pressure Applications Transfer Pumps Affected applications 14
Low Pressure Applications Supply & Circulation Pumps Affected applications 15
Fuel Switching (Wärtsilä) Cooler FO return MGO Engine HFO Mixing tank Heater Heater Circ. Pumps 16
Fuel Switching, MAN Solution Automatic switch over valve min time for switching 1 hour or max cooling of 2 C/min. HFO Service Tank MGO Service Tank FO return Engine Mixing tank Heater Heater Cooler Viscometer Circ. Pumps Cooler to be as close to engine as possible but before the viscometer in order to have control of viscosity at engine. 17
High Pressure Applications, Boiler HFO Tank Boiler Pumps Filter Cooler MGO Tank Cooler Burner 18
Viscosity/Differential Pressure Pressure (Bar) Low pressure applications are most likely not a high risk as the change in P is not that significant at 1,6cSt compared with 1,4cSt. However it leads to reduced life time of the pump. Standard booster requires a P of 6bars on the circulating pumps. FO transfer and purifier feed application requires a P 4bars. 7,35 6,90 1,4 1,6 Visc. (cst) 19
Screw vs. Gear Bearing surface of sleeve bearings Bearing surface of rotors Total bearing surface of the screw pump is much larger means less pressure/mm 2 Screw pumps are better in handling low viscosity than gear pumps. 20
Colfax Solution - Differential Pressure / Viscosity OptiLine Applications Low pressure Circulating pump Supply pumps Transfer pumps Low pressure less critical than High High pressure Boiler feed/supply High pressure more critical than low Colfax solution Surface treated rotors and housings! 21
TEST RESULTS IMO AB Test on ACE Pump
Background and Testing Background Due to new standards and regulations the Marine Gas Oil might have lower viscosity and will have lower sulphur content in the future. Can we use IMO AB low pressure pump for these Marine Gas Oils? If not, what changes will we make? The Test This presentation is based on the result after 735 hours test; the test will continue and a new evaluation will be done later. We tested 10 ACE 038N pumps with different rotor materials, with and without heat treatment together with standard nodular cast iron houses with and without heat treatment. The oil is a worst case DMX Marine Gas Oil. Running conditions were tougher than a worst case for the application. 23
Oil and Testing Conditions The Oil The Oil was designed by Preem to be a worst case oil within the standard and regulation. No additive Viscosity at 40 C 1,349 cst Standard min 1,4 cst Sulphur content 0,0905 % Regulation max 0,1 % Lubricity (HFRR) 513 µm Possible coming standard 520 µm Running Conditions Rotation speed 2950 rpm Differential pressure 7,3 bar Our theoretical pressure limit is 7,3 bar at 1,6 cst Temperature 55 C Worst Case in a machine room Viscosity 1,13 cst Running Time 735 Hours 24
Results - Leakage The Leakage C0 60,00 50,00 40,00 C0 30,00 20,00 10,00 0,00 0 1 2 3 4 5 6 7 8 9 10 11 Pump number Before test After 735 hour Data book 25
Results - Leakage The Leakage Changes in C0 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 1 2 3 4 5 6 7 8 9 10 11 Pump number 26
Results - Wear The Wear Lobe wear (power rotor + idler) 0,08 0,07 0,06 0,05 mm 0,04 0,03 0,02 0,01 0,00 0 1 2 3 4 5 6 7 8 9 10 11 Pump number 27
Conclusion Conclusions All changes are normal run in wear except pump #1 The differences between the results for pump 2-10 are too small to relatively measure the accuracy. Based on this test, pumps will be able to handle the low visc. low sulphur fuel. Temp. (C) during test run in Pumps during test at IMO AB lab 28