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CCME.NEWS, covering the regional and global HVACR industry with an unwavering commitment to providing in-depth news and analyses on policy, business and technology

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Premium Story

Stiebel Eltron signs up for Bayer’s programme

Bayer’s EcoCommercial Building initiative adds domestic and system technology supplier to sustainable construction network

Bayer’s EcoCommercial Building initiative adds domestic and system technology supplier to sustainable construction network

Stiebel Eltron, a German-based supplier of domestic and system technology, has announced that it has joined the EcoCommercial Building Programme of Bayer MaterialScience. In future, the two companies will closely cooperate in the area of sustainable construction, complementing Stiebel Eltron’s strength in systems engineering, ranging from domestic hot water and central heating to air conditioning and renewable energy solutions,
the announcement said.

Bayer MaterialScience, it will be remembered, has initiated the EcoCommercial Building Programme together with other companies and service providers in planning, modernisation and construction of energy-efficient and economic commercial buildings.

Speaking in the context of the partnership, Karlheinz Reitze, Member of the Management Board, Stiebel Eltron, said: “Our heat pumps contribute to substantial energy, and thus cost savings, and also help to create a comfortable atmosphere within buildings. As a market and technology leader in domestic and system technology, we are convinced that sustainable construction requires a holistic approach — covering everything from materials and energy generation to interior technology. In sustainable construction, we have to look beyond individual lighthouse projects. More so, we have to focus on realistic and cost-efficient implementation.”

Endorsing the view, Dr Thomas Braig, Regional Drector of the EcoCommercial Building Programme for Europe, the Middle East and Africa said: “We see a strong and growing demand for renewable energy solutions. The key today is to further increase the energy-efficiency of such solutions in a joint effort. Therefore, we are delighted to welcome another renowned network member. This helps us to expand the portfolio of our initiative with additional energy-efficient systems engineering, making use of renewable energy solutions of the highest technical standard.”

In Europe, the EcoCommercial Building Programme currently includes members such as, Bolidt Kunststoftoepassing, FIM Kernkompetenzzentrum Finanz & Informationsmanagement, Ingenieurbüro P Jung, Linzmeier Bauelemente, Silence Solutions, Solon SE, Puren, as well as Bayer Sheet Europe and Bayer Technology Services, the announcement said.

According to Bayer MaterialScience, it also supports the planned ‘Climate city of the future’ in the Ruhr region, with its network. The objective of the large-scale project ‘InnovationCity Ruhr’ is to transform a complete urban district of the German City of Bottrop into a low-energy community. Through sustainable modernisation, a role-model district for climate protection and energy-efficiency is created. MaterialScience said that it provided technologies, materials and expertise from its EcoCommercial Building Programme.

Premium Story

Systemair signs licensing agreement with Mosen

Claims Mosen’s tunnel jet ventilation system cuts installation costs and increases energy efficiency

Claims Mosen’s tunnel jet ventilation system cuts installation costs and increases energy efficiency

Systemair has announced signing an exclusive licensing agreement for the production and marketing of a new type of tunnel ventilation system, developed by Dr Fathi Tarada, Managing Director of Mosen. The innovative ventilation system was developed in order to reduce the space requirements for fans and, thus, increase energy efficiency and reduce the number of required fans in tunnels, the announcement said.

Kurt Maurer, Managing Director of Systemair and Dr Fathi Tarada, Managing Director of Mosen, after the signing the agreement in Boxberg-Windischbuch, Germany

Kurt Maurer, Managing Director of Systemair and Dr Fathi Tarada, Managing Director of Mosen, after the signing the agreement in Boxberg-Windischbuch, Germany

According to Systemair, The set objectives have been achieved through the development of the MoJet, for which UK and International PCT (Patent Cooperation Treat) patent applications have already been filed. The innovation permits the aerodynamic thrust to be significantly enhanced, while simultaneously reducing power requirements, the announcement claimed.

In this context, Dr Fathi said that it was possible to increase the thrust by up to 20%, and depending upon the installation, the efficiency could be improved by up to 40%. He believed that a particular advantage was the reduced installation height, which could be reduced by up to 15%. This minimised place requirements while avoiding encroachment into the traffic space. This could be achieved with a smaller diameter and reduced fan weight of up to 20% than conventional jet fans, while still delivering the same thrust, Dr Fathi emphasised. The innovation would allow the fans to be installed closer to the tunnel walls and soffit and permitted lower installation and cabling costs (through reduced longitudinal distances between fans), the announcement said.

Premium Story

Good news for MicroGroove technology

Evaporator coils with small diameter copper tubes deliver same performance with less materials, conclude ICA design study

Evaporator coils with small diameter copper tubes deliver same performance with less materials, conclude ICA design study

According to an announcement by MicroGroove, the International Copper Association (ICA), an organisation for promoting the use of copper worldwide, has concluded that manufacturers continue to reduce materials requirements in designs of heat exchangers for air conditioning and refrigeration products through the use of MicroGroove technology. Products made with inner-grooved, small tubes of copper use less material yet deliver the same performance as products made with larger tubes, the announcement added.

Citing an example to corroborate the claim, MicroGroove said that a design study from the Chigo Air Conditioning Company, Foshan, Guangdong, China, had demonstrated the benefits of using small tube copper with microgrooves. Chigo is a member of a small tube copper research consortium that includes the ICA, two universities and several major manufacturers of air conditioning and refrigeration products. The design study was for a residential air conditioning product.

Explaining the process, MicroGroove said that two evaporator coils were made with the same arrangement of tubes, but different tube sizes. The smaller tubes allowed for a more compact design, a reduction in the heat exchange area of the evaporator, and an overall reduction of materials usage, including less fin, tube and refrigerant. The reduction of tube wall thickness for the smaller diameter tube further reduced tube material. The incremental decrease in tube size reduced the estimated cost of materials by 40%, it claimed.

Taking the process further, the cooling capacity, power consumption, energy efficiency ratio, air volume and refrigerant charge were compared for the two designs, said MicroGroove. Despite reductions in heat exchange area, tube and fin materials and refrigerant volume, the product made with small tubes of copper operated at a slightly higher efficiency than similar product made with larger tubes, the MicroGroove claimed. Some modifications were made in the design and width of the plate fin. The flow path was optimised for smaller tubes in the evaporator design. The report also included an analysis of the manufacturing process and measures taken to ensure high-quality production of coils with smaller diameter copper tubes, it added.

Making concluding remarks on the study, Shunyi You, the Chief Engineer at Chigo’s Technical Centre in Foshan, and the lead author of the report, said: “With the same performance, small tube copper replaces seven millimeter copper tubes, leading to the cost reduction, so there are good expectations for the market potential. The products are sold widely abroad, including Europe, USA and South East Asia.”

More information about the design study is available online at www.microgroove.net, and for more information about heat exchanger coils made with small tube copper, readers could visit www.microgroove.net, the announcement added.

Premium Story

DSI wins Dh340 million MEP project

Abu Dhabi Presidential Palace work expected to be completed by early 2013

Abu Dhabi Presidential Palace work expected to be completed by early 2013

In an announcement, Drake & Scull International Abu Dhabi, a subsidiary of Drake & Scull International (DSI) PJSC, has revealed that it has been awarded a Mechanical, Electrical and Plumbing project worth Dh340 million for the Presidential Palace in Ras Al Akhdar, Abu Dhabi.

According to the announcement, while DSI will oversee and manage the complete MEP works on the Presidential Palace – which will be used as the headquarters of His Highness the President, His Highness the Vice President, His Highness the Crown Prince of Abu Dhabi and other Cabinet Ministers for governmental and ceremonial purposes – the Consolidated Contractors Co (CCC) will undertake the main construction contract for the project. Work was scheduled to start immediately, with completion expected at the start of 2013, the announcement added.

Terming it an honour to be identified and selected to undertake the development of such a governmental project, Khaldoun Tabari, CEO, DSI, said, “We believe our vast and accumulated local experience will not only allow us to deliver the highest quality standards, but will also enable us to realise and fortify the legacy of the Abu Dhabi government through the development of this iconic project.”

DSI added that it has secured nine projects in Abu Dhabi since the beginning of the year, and its business in the capital accounted for 25% of the company’s Dh 5.5 billion backlog, as of September 30, 2010.

Premium Story

Bayer MaterialScience and Asklepios ink green hospital partnership

Will cooperate on sustainable and cost-effective solutions

Will cooperate on sustainable and cost-effective solutions

Bayer MaterialScience and Asklepios Kliniken have announced setting up a cooperation project to implement environmentally friendly solutions in hospitals and healthcare facilities. As part of this collaboration, the EcoCommercial Building Initiative established by Bayer MaterialScience, will support the hospital operator’s ‘Green Hospital’ programme in achieving sustainable development in its healthcare facilities, the announcement said.

Bayer MaterialScience reportedly runs the EcoCommercial Building programme in cooperation with selected companies and service providers with the aim of promoting the development, renovation and construction of energy-efficient and cost-effective industrial and office buildings. This principle of sustainable construction has now been transferred to hospitals, the announcement elaborated.

The Asklepios programme is said to pursue a holistic approach that regards environmental performance, energy consumption and the comfort of patients as equally important. It can be applied to both new and existing hospital buildings, it said.

According to Bayer MaterialScience, during the current first stage of the collaboration with Asklepios, member companies of the EcoCommercial Building programme run by it (Bayer) are developing a hygienic and yet robust floor coating for the hospitals. It is simple to apply, cures quickly and is easy to clean, claimed Bayer.

“The main focus in healthcare is on cost-efficiency, sustainability and quality for patients,” said Dr Tobias Kaltenbach, Chairman of Corporate Management of Asklepios Kliniken, commenting on the programme. “Hospital buildings are among the most energy-intensive of all facilities. Our approach to improving energy and cost efficiency is to establish collaborations with experienced partners in the field of sustainable construction.”

Peter Warmbier, Head of Marketing and Business Development at Bayer MaterialScience’s Coatings, Adhesives, Specialties segment for the Europe, Middle East, Africa (EMEA) Region, added: “High-performance materials used during the construction and renovation of hospitals have a major impact on patient health, environmental performance and costs. High-performance floor coatings in particular enable us to raise standards in hygiene and comfort. What’s more, hospitals can also benefit from the comprehensive expertise offered by other members of the EcoCommercial Building programme.”

Hailing the Green Hospital programme a pioneering healthcare project, Dr Thomas Braig, Head of the EcoCommercial Building programme in the EMEA Region, said that the collaboration was further evidence of its network’s flexibility for sustainable construction.

Explaining the global EcoCommercial Building programme, Bayer MaterialScience said that it was part of the Bayer Climate Programme, which offered  decision-makers in the construction industry a portfolio of services and material solutions for energy-efficient and cost-effective building. The portfolio ranged from financing to energy efficiency assessments and concrete measures, such as building insulation, glazing and coatings, said Bayer. The initiative also offered solutions that harnessed energy from renewable sources, with other offerings, including acoustic wall elements for sound systems or noise reduction and developments aimed at improving the indoor climate in healthcare buildings, it added.

Premium Story

Elapco ties up with Midea

Will distribute its air conditioning range to UAE, Iraq and Sudan

Will distribute its air conditioning range to UAE, Iraq and Sudan

Elapco Group, a UAE-based company, has announced signing a marketing and distribution agreement with Midea, a China-based manufacturer of domestic appliances and commercial and domestic air conditioners. Elapco will distribute its products in the UAE, Iraq and Sudan. Key officials were present during the signing of the MOU between the two companies, the announcement said.

Elapco added that the addition of Midea’s product line to its existing Fujitsu-OGeneral (Japan), Zamil-Cooline (KSA) and Sampo Copper products (South Korea) and MDV will enable it to comprehensively address and satisfy market demands for both residential and commercial use.

According to Elapco, its distribution line will now consist of Midea’s full range of air conditioning systems – window, split, ducted split, roof-top package – apart from AHU and VRF units and chillers. The products range from one tonne (1.5HP) to 2,000 tonnes (2500HP). All the products of the company have been awarded the ISO9001 certification, it added.

Commenting on the tie-up, Hasan Alami, Managing Director of Elapco Group, said: “Our valued customers will now have access to more comprehensive green-compliant air conditioning products from Midea and MDV. In addition, the new range also offers tailor-made solutions as per environmental needs and customers’ requirements. Through this tie-up, we aspire to reach new prospects in these emerging markets.”

Peter Guan, President, Midea, HVAC, added: “At Midea we are committed to provide global consumers with more energy-conserving green products. We make sure that we carry the green philosophy throughout the product lifecycle, right from the product R&D and designing stage to manufacturing, installation and maintenance. Through this agreement, we will continue our effort to expand our green line to newer markets. We choose to work very closely with Elapco and provide them with our entire range of CAC solutions with the most advanced technology available today.”

Premium Story

Tabreed cancels 970 million shares

Move intended to elevate company’s share price above Dh1 and help raise new equity capital

Move intended to elevate company’s share price above Dh1 and help raise new equity capital

National Central Cooling Company PJSC (Tabreed), the Abu Dhabi-based utility company, has announced that it has received regulatory approval from the Ministry of Economy and the Emirates Securities and Commodities Authority to reduce the company’s share capital through the cancellation of 970,000,000 (970 million) shares. The cancellation of shares would be on a pro-rata and equal basis among shareholders at a ratio of 5:1 – in effect a ‘reverse share-split’– and would apply to all Tabreed shareholders, the announcement said. Each shareholder would, in effect, retain one share for every five original shares they held. The remaining shares would be cancelled.

Tabreed clarified that the percentage holding in the company of each shareholder would be the same after the capital reduction as before, subject only to minor adjustments as fractional shares would not be issued. For example, if a shareholder owned 102 shares, then they would be entitled to 20 shares post-capital reduction, and the remaining fractional interest of .4 post capital reduction shares would be combined with other fractional shares and returned to the company’s treasury account. The maximum value foregone by any shareholder as a result of this process would always be less than the value of 1 share (post capital reduction), Tabreed explained. The number of treasury shares would depend on the combined fractional interests.

The capital reduction would take effect on the opening of business on December 12. In effect, the new shares would start trading on the day on the Dubai Financial Market, it added.

According to the announcement, the cancellation of shares through a capital reduction was a key component of Tabreed’s recapitalisation programme that was approved by shareholders at the Company’s EGA on May 30.

In a Q&A session, Tabreed explained the reason for implementing the capital reduction programme by saying that a company was not permitted to issue shares at below par value, ie, Dh1. As the company’s share price was currently trading below Dh1, the company’s ability to raise new equity was limited. The capital reduction was, therefore, designed to raise the share trading price above Dh1, which would facilitate the company’s objective of raising new capital.

Answering the question about how shareholders would be financially affected by this move, Tabreed reiterated that theoretically, the capital reduction would be value neutral, as the shareholders would each own the same percentage of the company, both before and immediately after the capital reduction. No money would leave the company as a result of the capital reduction, but only a reduction in the outstanding number of shares, it clarified.

Subject to usual market fluctuations, the reduced number of new shares being held should be compensated for by an increase in the share price, so that the aggregate value of the holding would remain the same after capital reduction, Tabreed added.

To the question, if trading in the company’s shares would be suspended during the capital reduction, Tabreed responded by saying that it was expected that the capital reduction would be executed by the Dubai Financial Market, following close of trading on the date that final approvals were received from the regulatory authorities. Accordingly, Tabreed said that it did not expect a suspension of trading of the company’s shares.

Throwing light on the impact on the balance sheet, Tabreed elucidated that the new issued share capital figure would be Dh243,380,000 and a reserve arising from the capital reduction would be created with a value of Dh970,000,000.

Allaying the anxiety of shareholders about the course of action, if any, they needed to take in the present scenario, Tabreed assured the shareholders that no action was required on their part.

Tabreed currently owns and operates 49 district cooling plants, joint ventures and subsidiaries, with operations in Bahrain, Qatar, Oman and Saudi Arabia.

The following key points emerged in a Q&A session on capital reduction:

  • The total issued share capital will be reduced from 1,213,380,000 to 243,380,000 shares following completion of the capital reduction.
  • Taking a pre-capital reduction share price of Dh0.40, a 5:1 reduction would theoretically increase the share price to Dh2, however the share price would be subject to the usual market fluctuations and might trade either above or below this level after the capital reduction takes effect.
  • Regarding the Tabreed 08 Financing Corporation (Sukuk 08 convertible) conversion price and number of shares issued, currently, the minimum exchange price is Dh2.52 and the maximum exchange price being Dh2.7468, with a corresponding number of shares to be delivered on exchange of between Dh619 million and Dh675 million shares. Following the capital reduction and completion of the relevant adjustment procedures, the minimum exchange price would be Dh12.6 and the maximum exchange price, Dh13.734, with a corresponding number of shares to be delivered on exchange of between Dh124 million and Dh135 million shares. This was without taking into account any restructuring in relation to the non-payment of the annual distribution amount.
Premium Story

Carrier gets ESMA certification

Covers complete range of residential air conditioning units manufactured at SAMCO

Covers complete range of residential air conditioning units manufactured at SAMCO

According to a news release issued by Carrier Corp, it has become the first HVACR manufacturer to be awarded the ESMA (Emirates Authority for Standards and Metrology) quality mark for air conditioning units sold in the UAE market. ESMA is a federal body, tasked with developing and issuing standards and technical regulations in the UAE, and is the sole reference in the country in terms of quality standards.

Mohammed Saleh Badri, Acting Director General, ESMA, and Philippe Delpech, President, Carrier, EMEA

Mohammed Saleh Badri, Acting Director General, ESMA, and Philippe Delpech, President, Carrier, EMEA

The ESMA certification covers the complete range of Carrier’s residential air conditioning units manufactured at its Saudi Air conditioning Manufacturing Company (SAMCO) in Jeddah, Saudi Arabia, and is applicable to ESMA’s Emirates Conformity Assessment Scheme (ECAS), said Carrier.

Explaining the certification process, Carrier said that a team from ESMA had visited SAMCO for a first-hand assessment of the quality of Carrier products manufactured at the facility. The team also evaluated quality of manufacturing processes and the factory, in line with ESMA’s procedure.

Presenting the award to Carrier, Mohammed Saleh Badri, Director General ESMA, reportedly said: “HVAC has an important contribution to make towards our quest for energy efficiency in the UAE. We are glad to acknowledge Carrier’s product quality and safety standards, demonstrably in full compliance with our requirements. We see this award to Carrier as making a strong contribution in our efforts to motivate all HVAC manufacturers to meet the ECAS thresholds.”

Receiving the award from ESMA, Philippe Delpech, President, Carrier EMEA, stated: “Carrier has a proud history of being an integral part of several prominent organisations all over the world, dedicated to quality and sustainability, including the Green Building Councils in the Unitede States, China and India, Eurovent, and AHRI, to name a few. We have continued to demonstrate our commitment to Carrier’s core values of performance, quality and environmental stewardship. We are deeply honoured to be recognised by ESMA as the first HVACR manufacturer to be awarded the prestigious ESMA quality mark.”

Delpech added that ESMA’s efforts would go a long way in ensuring higher and consistent levels of quality and sustainability in products available to the consumer in UAE.

Paul Fraipont, Managing Director, Carrier Middle East, said that Carrier saw the certification as an endorsement of the company‘s effort to drive the highest level of quality and performance in the products it brought to its customers in the Middle East. “The rigorous process by which ESMA validates product quality and performance under ECAS will be of great benefit to the environment and the economy of the UAE,” he added.

Premium Story

DSI and Zamil Group join hands in KSA

Partnership expected to strengthen and diversify DSI presence in Kingdom

Partnership expected to strengthen and diversify DSI presence in Kingdom

Drake & Scull International (DSI) has announced its partnership with Saudi-based Zamil Group Holding Company. The joint venture, Drake & Scull International Saudi, will provide MEP services across the Kingdom, the announcement added.

Commenting on the partnership, Khaldoun Tabari, CEO, DSI, said: “This partnership will contribute significantly to expanding both DSI’S business portfolio and geographical reach. We strongly believe that with Al-Zamil’s strong presence and leading position in the Kingdom, we will create a stronger and diverse company, while generating additional opportunities for sustainable business growth and increased shareholder value.”

He expressed hope that DSI’s ongoing projects in the Kingdom, worth SR1.3 billion, would double in the next six months as a result of the partnership.

Zamil Group Holding is a global investment company with interest in industrial, petrochemical, commercial and consumer products.

Premium Story

RWI focuses on eco-friendly products

Claims that manufactured without CFCs or HFCs, they meet sustainability and green building codes

Claims that manufactured without CFCs or HFCs, they meet sustainability and green building codes

Rubber World Industries (RWI), manufacturer of closed-cell rubber insulation, Gulf-O-flex, in the Gulf and South-East Asia, and part of the international business conglomerate, the Shaikhani Group of Companies, has claimed in an announcement that its eco-friendly rubber products are playing a major role in its efforts to leverage the growth in the Emirates, as developers across the country heed to calls for sustainability and green building codes.

It further claimed that RWI’s products were manufactured without the use of harmful CFCs or HFCs, and were formaldehyde-free, had low levels of volatile organic compounds (VOCs), in addition to being dust-free, fibre-free and mould and mildew-resistant.

According to RWI, the Gulf-O-flex line, which include tubes, sheet rolls, sheets, coils, glue and tape, are non-toxic, lightweight, can be easily installed, are manufactured according to the set quality standards, making it the choice for projects such as Al Raha Beach Development, Saadiyat Island Project and Yas Island in Abu Dhabi.

Muzammil Shaikhani, Managing Director, RWI, in a statement said:  “We are the only producer of rubber insulation in the Middle East region that offers a versatile range of rubber insulation products to meet the requirements in the oil and gas fields, construction, shipping and automobile industries, not only in terms of quality and functionality, but also as far as sustainability credentials are concerned. Our products are also designed with a high capacity to retard heat loss for hot water plumbing, liquid heating and dual temperature piping, having a flame spread rating of less than 25 and a smoke spread rating of less than 50. Given the huge regional market for eco-friendly rubber insulation and HVAC products, we are confident that we will be able to reach our target revenues for this year.”