< PreviousCOVER STORY PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 10POWERING SUSTAINABLE PATH INVESTMENTS IN POWER GENERATION BY THE GCC HAVE CREATED A CONDUCIVE ENVIRONMENT FOR THE GROWTH OF LOCAL ANCILLARY INDUSTRIES AND PAVED THE WAY FOR RAPID INDUSTRIALISATION I f economic diversifi cation is the linchpin of future growth in the Gulf Cooperation Council (GCC) region, then industrialisation is the blueprint, the World Economic Forum (WEF) says in its report titled ‘How industrialisation could future- proof MENA’s Gulf economies.’ This conviction is guiding national strategies in the GCC with increasing force, as governments in the region aspire to develop resilient, knowledge-based economies, the report says. Most analysts and industry captains believe that the proposed and continued investments in power generation in the GCC region could act as catalysts to boost industrial activities, particularly for local manufacturing. The WEF report, while quoting fi gures from the audit fi rm KPMG, reveals that in the last quarter of 2022, the United Arab Emirates announced plans to increase its industrial revenues to $81 billion over the next decade – more than double the manufacturing sector’s current contribution to the local economy. Similarly, Saudi Arabia, which is the largest economy in the region, launched its ‘Made in Saudi’ programme, which aims to support industries to grow their local footprint and boost exports to priority markets. The manufacturing industry in Qatar is anticipated to employ more than 100,000 people by 2025 and will experience a 30% rise in the value of output between 2019 and 2025 under the National Vision 2030 of the country. According to the WEF research, its regional partners are essential in fostering a local industry environment that will increase economic diversifi cation. According to KPMG, the availability of excess power is frequently regarded as the fi rst requirement for starting industrialisation in any country. Following the example set by the GCC economies, which decided to increase their investments in power generation years ago, this can be seen as the fi rst step toward advancing industrialisation. RAISING ELECTRICITY According to The World Bank, surplus earnings from energy exports helped GCC countries push their economic diversifi cation strategy, which required raising electricity production and expanding the industrial sector. In order to strengthen the region’s economy, practically all of the countries in the region have launched mega power and water projects over the past 20 years, such as big independent water and power plants (IWPP), independent COVER STORY 11 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023power plant (IPP) projects, large petrochemical complexes, and other large and small manufacturing facilities, the WEF report says. As per an APICORP report, GCC countries have invested more than $250 billion in installing power generating capacities in the past two decades. The government’s push for industrialisation and the predicted rise in demand are expected to result in them continuing to invest billions of dollars in boosting power production capacity. As for the MENA region, electricity demand increased by over 3% in 2021 after a 3.7% contraction in 2020. Power demand is projected to rise by around 3.6% in 2022 in line with the strengthening economic momentum where it is expected to sustain its growth trajectory at an average rate of around 2% for the upcoming years. Steep rise in power consumption for air conditioning and saltwater desalination, as well as the upsurge in energy-intensive Surplus power availability can be help GCC countries to push industrialisation. Ancillary industries benefi t from higher investments in power projects. COVER STORY PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 12industrial sectors, particularly in the GCC area, are the main causes of this constant population growth. As of 2021, the residential sector represented around 34% of MENA’s total power demand, followed by the commercial sector at 25% and the industrial sector at 19%, with the remaining Renewable sector has been attracting huge investments in the past two decades. 22% including agriculture, transport, and network losses. Over 78% of the region’s total power consumption is still accounted for by the residential, commercial, and industrial sectors, which are also the primary drivers of rising power demand. BOOST TO SMES As the GCC economies are pumping money into ramping up power generation, a host of othe services including maintenance, transportation, component suppliers, and other ancillary industries also get a boost. These ancillary industries ranging from small welding, plumbing, electric components, and their maintenance work, switchgear and other tools, to producing high capacity wires. Most of them, who have sprung up in the past few years with the support of local authorities and contractors, are proving to be crucial links in providing ready support to future industries, the WEF report says. Moreover, with the increase in electricity production other ancillary industries related to power transmission and distribution are also getting a boost. According to Monsha’at, Saudi Arabia’s general authority for small and medium enterprises, the total number of small and medium enterprises (SMEs) operating in the country grew in tandem with the power generation capacity and crossed 750,000 mark by the end of 2022. Similarly, as per Oman’s National Centre for Statistics and Information (NSCI) data, the total number of SMEs) registered with the SME Development Authority in the country increased by 42.7% to reach 73,741 at the end of March 2022, compared to 51,663 establishments during the same period in 2021. Unlike other sectors, power generation requires constant monitoring, upgrades, and sevevices, thereby providing ample opportunities for the both local SMEs and industrial houses to grow their businesses, an analyst from KPMG, who didn’t wished to be named, said. FUTURE TRENDS According to APICORP, power sector investments in MENA are expected to continue to thrive, characterised by an accelerating shift towards renewables. Collectively, the region is expected to add nearly 20 GW of solar power over the next fi ve years. However, given the intermittency of renewables and the lack of utility-scale grid storage solutions to date, fossil fuels and nuclear will remain indispensable in the power supply mix in the foreseeable future. According to a white-paper published by General Electric, renewable power is produced at a much cheaper rate. and it could help in further boosting industrialisation in the region by making the local companies more competitive in the long-term. GCC countries are investing billions of dollars in installing power generating capacity. COVER STORY 13 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023VOLVO CE EXPANDS MID-SIZE ELECTRIC OFFERING A s part of an industry-leading ambition to advance its electromobility off ering with speed and reliability, Volvo Construction Equipment (Volvo CE) has developed a solution to convert the L120 wheel loader to electric, fulfi lling market appetite for more sustainable solutions in the mid-size range. Developed in conjunction with partners – Parker Hannifi n and converted by Volvo Group’s own CE Engineering Solutions , the 20-tonnes L120H electric conversion will be commercially available for selected customers in Europe during 2023. Using the market recognised conventional machine as the base, which will still be off ered to customers, the electric conversion model will deliver the same performance with the upside of doing so emission free. PARTNERSHIP TO ACCELERATE CLIMATE ACTION The company explains that it understands that when it comes to delivering a carbon neutral construction industry, we must act now. Which is why it partners with CE Engineering Solutions and selected electromobility partners to accelerate the availability of commercialized electric solutions across all segments and applications. This latest collaboration to expand its line of electric wheel loaders follows Volvo CE’s investment in Dutch manufacturer Limach, announced back in June, to broaden the company’s electric excavator portfolio. This partnership approach, which allows for speedier implementation to the market, happens in parallel with the company’s continued development of more electric solutions – like the EC230 Electric, a 23-ton battery electric excavator, built on Volvo CE’s own advanced technology. Both approaches are needed if the industry as a whole is expected to reach carbon reduction targets, like Volvo CE has set out in its commitment to achieve net zero greenhouse gas emissions by 2040, with signifi cant emission reductions as early as 2030, as part of the science based targets initiative. Carl Slotte, head of sales region Europe at Volvo CE, said,“There is no time to wait – we need to deliver solutions that allow our customers to achieve their decarbonization goals. Change starts here. Our commitment to partnership allows us to take a leading position in transforming our industry, with electric solutions that are built to fulfi l market demand and tailored to suit the changing needs of our customers. Working together, we are scaling up our portfolio of electric machines, extending the versatility of our range and transforming our industry towards a carbon neutral future.” NEW DRIVELINE, NEW BUSINESS MODEL The L120H Electric conversion will be available this year. Customers will benefi t from a new business model, which makes it easy to go electric, the company said. 100% POWER WITH 0% EMISSIONS The L120H Electric Conversion delivers the same powerful performance as its diesel counterpart, but with zero exhaust emissions and near silent operation. These benefi ts combine to off er enhanced comfort for both the operator and those working near the machine. Powered by 240 kWh batteries, it provides a runtime of approximately fi ve hours in most medium duty applications. Consistent with Volvo’s existing charging solutions, it is estimated to charge from 0-100% in just 1.5-2 hours. With the L120H electric conversion, customers can enjoy the following features as standard: comfort drive control, load assist with on-board weighing plus radar detection with our new collision mitigation system. In addition, the L120H electric conversion will be supported by dedicated electromobility applications which allow the operator to check battery and charging status and to preheat the cab. 14 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 SUSTAINABILITY INITIATIVECIRCULAR ECONOMY TO DRIVE GROWTH Ruchin Garg, regional manager – Middle East & Africa-at CDE Group W et processing experts CDE broke fresh ground in the Middle East in 2006 when it won a contract to install the world's largest sand washing plant in Qatar. Since then they have grown from strength to strength in the region, recently announcing plans to support the remediation eff ort in Kuwait, one of the largest environmental projects of its kind. CDE is a leading supplier of sand and aggregate wet processing solutions for the waste recycling and natural processing sectors, working across fi ve strategic regions, from North America to Australasia. In an exclusive interview to PMV Middle East, Ruchin Garg, regional manager, Middle East & Africa at CDE Group said CDE spearheaded the region with its sand and aggregates washing solutions for the construction sector – with plants in Kuwait, Saudi Arabia, Oman, Bahrain, South Africa, and Tanzania. He said the group, driven by 30 years of engineering expertise, is focused on delivering more projects focused in the waste recycling sector. Referencing the recently awarded project in Kuwait, which sees CDE supplying two contaminated soil wash plants to support the clean-up eff ort of an estimated 114 sq km of polluted land, Garg commented, “The scale and ambition of this remediation programme cannot be understated. It is a true test of our engineering excellence and a demonstration of how robust and eff ective CDE technology is at processing contaminated soils. In Kuwait alone, we have over 30 CDE plants working on a range of innovative projects.” In each of the fi ve strategic markets, CDE has dedicated teams on hand to deliver proven solutions and aftersales support for their customers. On scope of business in the GCC region, Garg said that the company installed its fi rst project in the region in 2006. Since then, CDE has installed over 100 projects in the region with diff erent applications. And as the countries in the region are bustling with expected infrastructure growth and greater adoption of the circular economy, “We are very excited to contribute to the overall growth of region.” He explained that the company has ambitious growth plans in the Middle East, with ongoing investment and a strong pipeline of projects. As there is a growing awareness and drive to create circular economies, CDE’s waste recycling business is likely to register hefty growth in coming years, with global economies recognising the value that can be unlocked from waste recycling. “Construction is one of the major sectors in the region, so the commissioning of new projects and re-development of old projects will provide ample growth opportunities for us. CDE products have been developed to wash C&D waste and create a clean product that can be reused in the sector,” Garg said. In Kuwait, the company has supplied M2500 mobile sand washing plant to Associated Construction Company, to improve on the quality of washed sand produced from an existing sand processing plant at a site in Kuwait. The company recently announced that it will design and engineer a contaminated soil wash plant for Estedama in Saudi Arabia. On challenges, he explained lack of clear regulations regarding the usage of recycled materials is one of the major problems. 'We’re working very closely with the industry to advise on legislation and highlight the potential of recycled materials to meet the demands of the construction market while also supporting long-term waste reduction targets. CDE’s expertise in the development of sustainable washing solutions can help customers to reduce carbon footprint through signifi cant effi ciency gains ” Garg concluded. 15 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 INTERVIEWP owertech Mobility, one of the leading electric vehicle (EV) charger distributors and system integrators in the UAE is pioneering eff orts in end-to-end electric charging deployment to support the nation’s vision in achieving net zero emissions by 2050, enhancing the shift towards electric mobility and serving the rapid local demand for EV infrastructure. Established in 2017 as a subsidiary of Powertech Switchgear Industries, a leading homegrown service provider for low voltage (LV) switchgear power distribution boards and services over the past 30 years, Powertech Mobility provides a one-stop-shop for EV charging solutions including hardware and software. It claims that it combines experience in the UAE market, and expert knowledge in electrical systems and a supply of state-of-the- art electric charger products from prominent global suppliers to facilitate the same. POWERTECH MOBILITY TO EXPAND OPERATIONS Electric vehicle charging solutions fi rm Powertech Mobility is spearheading the advancement of local EV Charging Infrastructure catering to rapidly increasing demand for EV Chargers, aligning with the nation’s sustainability goals With the emergence of electric mobility and sustainable transport methods, Powertech Mobility is at the forefront of EV charging infrastructure off ering a broad spectrum of EV charging units, ranging from alternating current (AC) to direct current (DC), energy monitoring and management, and LV switchgear maintenance. Covering supply, installation, maintenance and after-sales services, the fi rm provides comprehensive end- to-end services for EV charging infrastructure. It has also partnered with the Switzerland- based global technology company ABB, to supply ultra-modern electric chargers incorporating the latest reliable technology for EV charging including fast and ultra-fast charging options to fully charge an EV in a few hours or even minutes. By satisfying the needs of both B2B and B2C markets Powertech Mobility has gained a reputation for supplying reliable and revolutionary EV charging solutions. Its customers include private homes and various commercial spaces such as automotive dealerships, service centres, petrol stations, hotels, malls, offi ces and residential buildings seeking to install EV chargers in parking lots to provide value-added services to tenants and visitors. The increase in demand from such INFRASTRUCTURE 16 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023customers has also made Powertech Mobility the go-to supplier for retrofi t projects. Some of its previous projects include electrifi cation of facilities for leading automobile dealerships and residential communities in Abu Dhabi, Dubai and Ras Al Khaimah for leading developers, and infrastructure for truck and passenger fl eet electrifi cation. “The UAE is paving the way for Electric Mobility with its ambitious vision and we are excited to be a part of its journey while contributing to its sustainability goals. We have witnessed rapid growth over the past fi ve years and expect it to continue as the EV market matures. The UAE already has a network of charging stations and with favourable policies and strategic initiatives continually being implemented by the government, we aim to support the nation to become a positive testament for the global energy transition,” Arthi Srinivasan, director of EV charging solutions at Powertech Mobility said in a statement. “The electrifi cation of transport has revolutionized mobility for the better. By providing a broad spectrum of EV charging infrastructure including passenger vehicles, fl eet solutions, heavy-duty electric vehicles (e-buses and trucks) along with the software technology for remote monitoring and optimization of Electric Vehicle Supply Equipment (EVSE) assets, we are well-equipped to support the increasing demand for innovative and customized EV charging solutions in the UAE,” Vinay Premachandran, director of sales at Powertech Mobility, said. With an accomplished workforce, a history of highly successful projects, and superior EV charging hardware and software, Powertech Mobility is confi dent in the UAE’s visionary leadership and the local EV market and aims to deploy infrastructure that meets the needs of the next generation for smarter, reliable and emission-free mobility. ABOUT POWERTECH MOBILITY Founded in 2017, Powertech Mobility is one of the leading providers of upstream Electric Vehicle Infrastructure solutions in the UAE including hardware and software. As a one-stop- shop systems integrator, it combines extensive experience in the UAE market, expert knowledge in electrical systems and a supply of state-of-the- art electric charger products from prominent global suppliers for pioneering advancement in EV charging solutions in the nation while championing sustainable electric mobility. It is also an authorized channel partner of the Switzerland-based global energy and technology company ABB, to supply ultra-fast electric chargers incorporating the latest reliable technology for EV charging. INFRASTRUCTURE 17 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023T he liquid silicone rubber market is anticipated to register a CAGR of 3.9% between 2023 to 2033 period. The market is expected to hold a valuation of $6.9 billion in 2022 and by 2033, the value is expected to cross $10.1 billion, according to a report by Future Market Insight. Liquid Silicone Rubber (LSR) is a two- component system, where long polysiloxane chains are reinforced with specially treated silica. Due to the thermosetting nature of the material, liquid silicone rubber injection moulding requires special treatment, such as intensive distributive mixing, while maintaining the material at a low temperature before it is pushed into the heated cavity and vulcanised. According to a report by the Paris-based energy watchdog, International Energy Agency, (IEA), electric vehicles are the key technology to decarbonise road transport, a sector that accounts for 16% of global emissions. ELECTRIC VEHICLES TO PUSH DEMAND FOR LIQUID SILICONE RUBBER Recent years have seen exponential growth in the sale of electric vehicles together with improved range, wider model availability and increased performance. “Passenger electric cars are surging in popularity - we estimate that 13% of new cars sold in 2022 will be electric; if the growth experienced in the past two years is sustained, CO2 emissions from cars can be put on a path in line with the net-zero Emissions by 2050 Scenario. However, electric vehicles are not yet a global phenomenon. Sales in developing and emerging countries have been slow due to higher purchase costs and a lack of charging infrastructure availability,” the IEA report said. Electric car sales reached a record high in 2021, despite supply chain bottlenecks and the ongoing Covid-19 pandemic, the IEA said while adding, compared with 2020, sales nearly doubled to 6.6 million (a sales share of nearly 9%), bringing the total number of electric cars on the road to 16.5 million. The sales share of electric cars increased by 4 percentage points in 2021. The Net Zero Emissions by 2050 Scenario sees an electric car fl eet of over 300 million in 2030 and electric cars account for 60% of new car sales. Getting on track with the Net Zero Scenario requires their sales share to increase by less than 6% per year. INDUSTRY STUDY 18 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023APPLICATION IN THE AUTOMOTIVE INDUSTRY According to the Future Market Insight report, the ability to withstand extremely high and low temperatures makes it highly fl exible for many applications. Enduring long-term exposure to UV rays, thereby providing resistance from weathering. Expansion of production capacity at both local and global levels is one of the key industry trends currently being observed. In addition to this, key players aim to launch new & advanced products to expand their product portfolio. Medical manufacturers are currently having a massive demand for liquid silicone rubber. This can be attributed to its ability to function effi ciently at extreme temperatures and display chemical resistance. As per the sources, the liquid silicone rubber is capable of meeting FDA, ISO, and Class VI medical-compliant grades, which makes it reliable. Within the medical sector, it is used in general surgery, cardiology, neurosurgery, ENT, etc. The report also looked at the key trends in key markets, which are likely to drive the growth in the consumption of liquid silicon rubber in the next few years. GROWTH IN THE US MARKET Rising number of body implantation surgeries to elevate the sales of liquid silicone FMI states that the USA is anticipated to remain a lucrative liquid silicone rubber market in North America. A substantial rise in the number of body implantation surgical procedures has been witnessed owing to the growing emphasis on enhancing body aesthetics across the country. According to a report by the American Society of Plastic Surgeons, nearly 193,073 breast augmentation and 1,179 buttock implantation surgeries were conducted across the USA in 2022. As liquid silicone is used in the production of body implants due to its high biocompatibility, the rise in implantation surgeries is estimated to bolster the growth in the US market. An increase in the sales of liquid silicone rubber in the US assisted North America, accounting for nearly 25% of the revenue share in 2022. GROWTH DRIVEN BY THE AUTOMOTIVE MARKET Growing applications in the automotive industry to fuel the demand for liquid silicone rubber The United Kingdom is home to a few famous automotive manufacturers. Liquid silicone rubber is fi nding applications in the automotive industry owing to its high thermal stability, superior compression set, and excellent chemical resistance. It is increasingly being used in sensor cover assembly, sealing covers, vehicle interiors, and others during the production of automotive vehicles.Increasing production and sales of automobiles in the United Kingdom is anticipated to create strong demand for LSR in the forthcoming years. CHINESE MARKET? Growing popularity in the consumer electronics industry to bolster the liquid silicone rubber sales China had a dominant market share of more than 34.9% in the Asia Pacifi c excluding the Japan region in 2022. Liquid silicone rubber has become one of the prime manufacturing materials owing to its chemical inertness, electrical resistance, and ability to withstand extreme temperatures. It is extensively gaining popularity across the consumer electronics industry for manufacturing the components such as remote buttons, phone covers, wristbands, smartwatch belts, and others. Hence, the growing penetration of innovative devices, such as wearable technologies, across the country is estimated to favor the growth of the liquid silicone rubber market in China. JAPANESE MARKET: BACKED BY THE SURGING SALES OF ELECTRONIC VEHICLES The electric vehicle market in Japan is expected to witness a massive CAGR of nearly 23% during the forecast period. The market is projected to reach $ 5.67 billion in 2023. The manufacturing of electric vehicles involves extensive usage of liquid silicone rubber. The seat covers, coatings, spark plug wires, and a lot of other components are manufactured by the application of liquid silicone rubber. The construction sector in Japan has always displayed positive sentiments. Being prone to a number of natural disasters, the nation’s construction sector has always been creating innovative alternatives. Liquid silicone rubber is used in sealants and adhesives, which are very crucial for all kinds of buildings. INDIA: HOME TO A MAMMOTH CONSUMER ELECTRONICS MARKET India is one of the largest buyers of consumer electronics. As of 2021, the valuation of the Indian consumer electronics market stood at US$ 75 billion. During the pandemic, the sales were even signifi cant due to the imposition of the lockdown. The massive demand for consumer electronics might boost the sales of liquid silicone rubber. These are mainly used as integrated circuits for miniaturising the size of the device and improving the speed as well. Apart from that, there are a number of overseas electronics companies which are investing huge funds in India. This creates massive opportunities for the Indian liquid silicone rubber market. Liquid silicone rubber is fi nding applications in the automotive industry INDUSTRY STUDY 19 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023Next >