Energy analysis as part of production planning
COMPONENTA CORPORATION STOCK EXCHANGE ANNOUNCEMENT 25.1.2005 at 15.00
Energy analysis as part of production planning One of the key environmental goals of the metal sector Componenta Group is to reduce energy consumption. Industrial energy analyses have been used at nearly all of Componenta's production plants in Finland to investigate the energy consumption of buildings and production processes as well as opportunities for improving energy efficiency. As a result of the analyses, the annual heating costs of, e.g., the Componenta Karkkila foundry, have fallen by one fifth. At Componenta, the energy analyses promote the development and introduction of operating models that help make energy efficiency an established part of the Group's operations. - The energy analyses have revealed many small-scale measures to be implemented immediately, the repayment term of which has been short. When investments in production are prepared and approved, attention is paid to their energy-related and environmental impacts, states Componenta's Unit Manager Kalervo Saarimaa. The first energy analysis for Componenta was carried out as early as 1995, at which time the cooperation partner was the Energy Department of the Ministry of Trade and Industry. Componenta joined the industrial energy conservation agreement in 2002 and updates the energy analyses as needed, but at least every five years. It is essential to optimize energy consumption already during production planning. Key objects of energy efficiency-improvement: ventilation and compressed air Componenta is a metal sector Group with international operations which manufactures components for the heavy truck, off-road, machine building and power & transmission industries. In addition to Finland, it has production plants in Sweden and the Netherlands. The Group's turnover is EUR 316 million and it has around 2,200 employees. Over 90 per cent of the energy consumed by Componenta is electricity. In 2004, the Group's Finnish production plants consumed 131 GWh of electricity. The plants consume nearly the same amount of electricity in an hour as two electrically heated single-family houses in a year. At the production plants, ventilation and compressed air are the key objects in improving energy efficiency. Optimization of these functions requires good maintenance practices for the equipment, proper controls, appropriate use as well as automation. For example, the centralized real estate monitoring system introduced at the Componenta Karkkila foundry and the heat recovery equipment installed in connection with the ventilation equipment reduced the annual heating costs by one fifth. At the same time, it was possible to reduce environmentally hazardous emissions and improve working conditions. - In Karkkila, we utilize the process heat originating from the melting and reprocessing of iron in the heating of production facilities as well as in the drying and preheating of the iron refuse to be used as raw-material, Saarimaa explains. Simpler methods of reporting and more concrete feedback data needed Electrowatt-Ekono Oy belonging to the Jaakko Pöyry Group has been responsible for the practical implementation of the energy analyses for Componenta. Product Manager Kimmo Kohtamäki emphasizes the importance of continuity in energy conservation work. - An energy analysis should not be a one-off measure; instead, it should be included in the company's normal operating processes. In conjunction with the energy analysis, we created a tool for Componenta for updating the profitability calculations concerning the objects of energy-efficiency improvement indicated by the analyses, with regard to production, energy consumption and prices. Continued improvement of energy efficiency is possible, when cooperation is smooth and plant-specific requirements are taken into account. Kalervo Saarimaa of Componenta praises the smooth cooperation with the Ministry of Trade and Industry, Employment and Economic Development Centres and Electrowatt-Ekono. - The goals have been considered more important than the paperwork. As regards the energy conservation agreement activities between the Ministry of Trade and Industry and industrial enterprises, I would appreciate a simpler method of energy reporting and more concrete feedback data. We consider it important to be able to compare our own achievements in energy conservation with the results of other companies. Finland - a pioneering country in the field of energy audits and analyses The aim of energy audits and analyses is to investigate the present situation and saving potentials in energy consumption. They are tools for real estate maintenance, energy efficiency- improvement and the environmental management system in the industrial and service sectors. The energy audit models developed for objects of different types guide the clients to purchase energy in a sensible manner and to economize on its use. The measures proposed in the audit report, together with the cost and savings calculations, create a good basis for permanent savings and continued activities. It has been estimated that the measures based on the industrial energy analyses supported by the Ministry of Trade and Industry reduce energy consumption by 4 TWh annually. The figure corresponds to the annual energy consumption of approx. 200,000 single-family houses. - Finland is one of the leading countries in the world in the development and productification of audit methods and in the monitoring of their effects. As an indication of this, an international energy audit conference, Audit 06, will be arranged in Finland in autumn 2006 - during the next Finnish presidency of the EU, states Customer Service Manager Janne Hietaniemi of Motiva Oy. Helsinki, 25 January 2005 COMPONENTA CORPORATION Kalervo Saarimaa Unit Manager FURTHER INFORMATION: Unit Manager Kalervo Saarimaa, Componenta Corporation, tel. +358 9 2250 2601. Product Manager Kimmo Kohtamäki, Electrowatt-Ekono Oy, tel. +358 9 469 1460. Customer Service Manager Janne Hietaniemi, Motiva Oy, tel. +358 9 8565 3108.