MTUasianewsletter - MTU Online · 6 MTUasianewsletter DeceMber 2008 MTU enTers sTraTegic JVs wiTh JaPan, Malaysian ParTners TOGNUM Group units have signed two landmark deals with

MTUasianewsletter

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DeceMber 2008

FroM The ceo PeTer KneiPP, wiTh ThanKsSeasons greetings, everyone.

As 2008 draws to a close and we issue our final newsletter for the year, I want to begin by acknowledging the hard work of our staff in the past year, without whom we could not have achieved another successful year for MTU Asia.

Many of you have worked beyond your call of duty outside office hours, and some even traversed the globe frequently to attend to our projects and customers’ needs - the kind of attention and care MTU is known for.

That MTU has grown in so many ways this year is also thanks to the good leadership by MTU’s management team.

And not forgetting our customers, I thank all of you for your support and the trust you place in MTU products.

This year has been a very busy one for MTU, with many exhibitions and seminars around the region. Following MTU’s launch of the Onsite Energy brand in Augsberg, Germany, the MTU team in Asia seized the opportunity to launch this same brand on October 21 at the Power Gen Asia 2008 which was held in Malaysia. This was officially launched by board member Christof von Branconi.

MTU Onsite Energy is the new conglomeration of several of Tognum Group’s subsidiaries, dedicated to providing clean, efficient energy to any remote facility that is not on the power grid, with Singapore taking the operational lead in Asia.

Inside this issue:• HistoricS’poremeetingforMTU boardmembers•Newdirector,andseniormanagerfor MTUOnsiteEnergyAsia•OnsiteEnergylaunchedatAsia’s PowerGen2008•MTUentersstrategicJVswithJapan, Malaysianpartners• Tognum’sonsitebusinessboomswith majororder• TognumtodeliverEmergencyPower GensetsforIndianAirTrafficHub•MTUAsiaholdsinauguralmining,oil andgasworkshops•MiningworkshopinSuzhouasuccess•DIMOLaunchestheMTUSeries4000 DieselEngine•MTUAsiakeepsbusywithshowsall overAsia•MTUappointsDirectorofDistributors/ SubsidiariesManagement• Customers’AppreciationEvenings

BoMwithMTUAsia’sManagementTeam

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The newly assembled team will be driving this aspect of MTU’s business in this region, where countries such as Singapore could see the use of MTU Onsite Energy’s fuel cells powering hospitals by 2011.

With the recent awareness of climate change and environmental protection, super-efficient technologies such as those MTU Onsite Energy offers will only be more crucial to the world’s future energy mix. Needless to say, I am very bullish about this new exciting development for MTU.

Also at the same time, we entered into a significant partnership with Malaysia’s Motor Teknologi & Industri (MTI) to create an engine remanufacturing plant based in Rawang, Malaysia. Members of the media were invited to the momentous ceremony, where MTU and MTI cemented their relationship.

With this venture, MTI will be part of the global remanufacturing landscape, while current owners of MTU power plants will be able to remanufacture their plants at a fraction of the cost of a new power plant.

As you can see, MTU has kept busy even with the financial crisis and economic recessions unfolding in the global markets. Despite the difficult conditions ahead, I am fully confident that MTU will power through, especially with all the support from our staff and customers alike.

We have every reason to be merry this festive holidays, as MTU will be looking forward to celebrating its 100th birthday in 2009 – a milestone for the group, and also one for MTU Asia, which turns 35 in Singapore.

We look forward to 2009 as we bid adieu to 2008 – which has been a memorable one for MTU.

On behalf of the management team, I would like to take this opportunity to wish everyone a Happy 2009!

Yours sincerely, Peter Kneipp

MTUAsiaManagementteamwithfamilymembers@AnnualDinner2008

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DeceMber 2008

hisToric s’Pore MeeTing For MTU boarD MeMbersFOR the first time in MTU Asia’s history, all of MTU’s board members visited Singapore’s shores on 11th September 2008.

Chief executive of MTU, Mr Heuer also addressed the 200-strong MTU staff in a CEO address, which highlighted the importance of the Asian market for Tognum today and in the future.

He outlined Tognum’s vision and comprehensive strategy, speaking in particular about the group’s new “Onsite Energy” brand and its strategy, and Tognum in the eye of the capital market. Mr Heuer also shared the board’s expectations of the Asian market and its operations.

After the address, MTU’s board members mingled with the local staff in a get-to-know-you session, where they fielded questions from employees.

The board also toured MTU Asia’s plant facilities and customer service centre, and came away from Singapore impressed with MTU Asia’s progress and growth.

BoMinSingapore,September2008

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DeceMber 2008

new DirecTor, anD senior Manager For MTU onsiTe energy asiaHermann Roehm has been appointed as Director of MTU On-site Energy Asia in September. Hermann, 39 is married with young children and is no stranger to Singapore. Since August 2006, he has led the Sales & Application Engineering department for Marine, Industrial, Powergen and Gas within MTU Asia in the city state.

He now moves on to head the newly launched Onsite Energy Sales and Application engineering department.

Hermann studied Mechanical Engineering at Technical University in Munich and was sponsored by a scholarship to under practical training in Australia for eight months.

He joined MTU Friedrichshafen’s Marine Sales Department in 1997 and was promoted head of the team “Minehunters and Submarines” in 2003.

Together with this newly launched division, Hermann has engaged a Senior Manager, Maurice Steijger who would help him manage the Gas section.

Maurice studied mechanical engineering at The Hague University in Netherlands in 1994 and graduated with an MBA from the same university in 2003.

The married 39-year-old has a wealth of experience in the oil and gas industry, and worked for Dutch Caterpillar, and Cameron before joining MTU Onsite Energy in September as senior manager, sales and application engineering.

We warmly welcome Maurice!

HermannRoehm(firstrow,thirdfromleft)andtheMTUOn-SiteEnergyteam

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onsiTe energy laUncheD aT asia’s Powergen 2008MTU’s Onsite Energy brand was born in Asia at this year’s POWER-GEN show, with MTU’s senior management symbolically “turning on the power” - breathing life into the brand with the hit of a button.

Tognum AG Board Member Christof von Branconi, MTU Asia President & CEO Peter Kneipp and Hermann Roehm, Head of Sales & Application Engineering “Onsite Energy” at MTU Asia, did the honours at the MTU Trade Show stall at the show, held in Kuala Lumpur from October 21 to 23.

With the Asia launch, the journey of this new brand (initially launched in Europe and the United States) has reached the last legs of its travels and concludes in the booming Asian market, which is particularly significant for the Tognum Group.

POWER-GEN Asia is the most important and largest PowerGen specialist trade show in this region which features 150 exhibitors, providing a platform for a local and global audience to gain information on a range of products.

At the MTU trade show stall, experts from Vietnam, Indonesia, Thailand and many other Asian emerging countries got the opportunity to get up close with numerous “MTU Onsite Energy” products, such as the gas engine system Genset with a Series 4000 gas engine.

As a precursor to the trade show, MTU Asia also invited distributors and their representatives to KL on October 20 to brief them about the new MTU Onsite Energy brand and how onsite power generation solutions will be marketed in the future.

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MTU enTers sTraTegic JVs wiTh JaPan, Malaysian ParTnersTOGNUM Group units have signed two landmark deals with Malaysia’s Motor Teknologi & Industri (MTI) and Japan’s leading trading company Marubeni Corp.

In Malaysia, MTU Asia has signed a joint-venture agreement with MTI to build an engine remanufacturing plant in Rawang.

This venture will enable MTI to be a part of the global remanufacturing landscape – on level with the highly sophisticated facilities of MTU’s parent group, Tognum, in Germany – while current owners of MTU power plants will be able to remanufacture their plants at a fraction of the cost of a new power plant.

“We are excited about the potential of this strategic alliance. Remanufacturing is extremely viable – it is booming and lucrative. It is already a multi-billion dollar industry in both Europe and the USA,” said Group Executive Chairman of MTI Dato’ Sri Mahamad Fathil Dato’ Mahmood.

Remanufacturing an engine costs 60 per cent less than a new engine, and performs at OEM specifications. “It is the perfect alternative in these troubled times,” added Dato Sri Fathil.

The agreement will see MTU Asia holding a 45 per cent stake in MTI, through the enlargement of MTI’s paid-up capital Dato Fathil expects the company will triple its turnover in the near future.

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The client list of MTI reads like a roster of blue-chip institutions. They include the Malaysian army, Tenaga Nasional Berhad and the Royal Malaysian Navy. Additionally, there will be a new focus on corporations as well, as the potential customer base in Malaysia is huge.

In Japan, Tognum has sealed a deal with Marubeni Corp, a leading trading company with a corporate history of 150 years and total assets of more than five trillion Yen (36.5 billion Euros).

The JV will enable MTU to gain enhanced access to the Japanese market for off-highway applications.

“With this joint venture we intend to drive the MTU and MTU Onsite Energy brands forward decisively in the industrial, navy and defense and distributed energy sectors”, says Peter Kneipp, Director of Tognum subsidiary MTU Asia.

In future, the joint venture will assume sole and exclusive responsibility for the sale of MTU products in Japan.

Fromleft:ChristofvonBranconi,PeterKneipp,Dato’SriMahamadFathilDato’Mahmood,ZainalAbdulGhani

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TognUM’s onsiTe bUsiness booMs wiTh MaJor orDerTOGNUM’s unit MTU Friedrichshafen and its partners have won a € 65 million deal to supply ten emergency power supply gensets for two Chinese nuclear power stations.

The contract, announced on November 19, testifies to the growing strength of Tognum’s onsite energy generation business in Asia.

The MTU Friedrichshafen-led consortium includes a joint-venture between MTU and Chinese Norinco Group, Shanxi North MTU Diesel, and energy generation supplier AREVA NP.

MTU’s December 2007 JV with Norinco Group ensured that MTU complied with the requirement for local partners. This deal will enable the MTU consortium to command a significant share in the highly coveted Chinese market for emergency power supply gensets in nuclear power plants.

The Chinese nuclear power market is buzzing with developments, as a considerable number of new plants are planned for the near future.

“This contract both serves to expand our onsite energy business, as well as providing a significant contribution to our Asian operations“, explains Volker Heuer, Chairman of the Executive Board and CEO of Tognum AG. “It goes to show that our strategic growth initiatives are paying off.“

Other strategic Tognum group drivers include the expansion of the product portfolio in the area of drive and propulsion systems and the focus on the high-margin After Sales business.

Within the consortium, MTU is the main contributor to the development and the engineering of the entire emergency power supply system – signaling the competence in MTU’s systems.

Other components for the diesel engines and genset accessories are provided by Chinese suppliers, while other parts are manufactured in the MTU plant in Friedrichshafen and by other European suppliers.

The gensets will be assembled and tested in the MTU JV’s new factory in Datong, China. The emergency power supply gensets will be delivered from 2011 to 2014.

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DeceMber 2008

TognUM To DeliVer eMergency Power genseTs For inDian air TraFFic hUbMTU’s power gensets are rapidly sprouting all over Asia – the latest being India’s air traffic hub.

Indian energy systems manufacturer Sterling Generators has awarded a contract for 14 large diesel engines for emergency power supply gensets to Tognum business unit Onsite Energy & Components in November.

These gensets are designed to supply the new Terminal 3 at the Indian air traffic hub Indira Gandhi International Airport when power outages occur. This order comes with an option for the delivery of eight additional engines.

These 14 20V 4000 G63L diesel engines will be delivering an electrical output of 33.6 megawatts – enough to power 90,000 households in Germany.

Tognum’s quality engines trumped other competitors to win this award. “The Indian market represents a huge potential for the products of our new brand MTU Onsite Energy”, said Christof von Branconi, Member of the Executive Board of Tognum AG. “It is now time to make full use of this potential.“

The New Delhi Airport, which serves more than 23 million passengers every year, is currently being modernized and undergoing expansion by operator Delhi International Airport Private Limited. The operator consortium includes the German Fraport AG, among others.

Four additional passenger terminals are in the pipeline, to be built by 2026. Current plans envisage an expansion of the current capacity to roughly 27 million passengers per year.

The new third terminal, which will be furnished with MTU Onsite Energy diesel engine-based emergency power gensets, is to be finished by 2010.

Other components for the diesel engines and genset accessories are provided by Chinese suppliers, while other parts are manufactured in the MTU plant in Friedrichshafen and by other European suppliers.

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MTU asia holDs inaUgUral Mining, oil anD gas worKshoPs AS a major player in technological solutions in the energy sectors, MTU Asia recently held two workshops in Kuala Lumpur, Malaysia and Suzhou, China.

Held on August 21, the inaugural oil and gas workshop organized by MTU Asia and MTU Services Malaysia was a two and a half day programme which included a one-day seminar specifically crafted for customers.

Presentation topics included Onshore & Offshore products, systems packaging and more importantly, MTU’s commitment towards Aftersales Support for the Oil & Gas industry.

The seminar saw Tognum’s in-house speakers from its M1, M2 & M3 Oil & Gas Team and also MTU Services Malaysia’s chief executive, Mr Hassan Basma, present to more than 80 participants.

OEMs, operators, boat builders and M2 distributors alike came away from the seminar with a solid understanding of business solutions and challenges facing this business in Asia.

The workshop cum seminar was MTU’s first in a series of events in the near future.

Grouppicture—participants@Oil&GasSeminar,KualaLumpur

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Mining worKshoP in sUzhoU a sUccessIn Suzhou, stronger alliances were forged between MTU departments at a regional mining strategy and engineering workshop at the Suzhou and Bauma Exhibition in Shanghai on November 20 to 22.

The seminar aimed to link different MTU units such as MTU-Asia, MTU China, MTU-F & MTU-Australia to leverage on each other’s experience and expertise. Key mining sector staff from various departments across Asia also mapped out the strategy and action plan to meet the growing demand and expectation of Mining customers and OEM in Asia.

Despite the current financial crisis, the group remained optimistic that the growing economy in China and India, and some parts of Southeast Asia will rebound faster than the rest of the world, leading to the next commodity boom.

The seminar was held in conjunction with the biggest Bauma China exhibition was held from November 25 to 28 at the Shanghai New International Expo centre, which drew a large audience of Chinese manufacturers.

The international trade fair for construction machinery, building material machines, construction vehicles and equipment, attracted more than 113,000 visitors, 17,000 of which came from 123 countries outside China.

MTU Asia’s booth at the exhibition displayed the OM 457 engine, the SCR system on the OM904 to meet the Euro III B emission and the 16V4000 C23 engine.

Various China OEMs, like Puyuan, Sany, XCMG, Dalian Excavator were invited to the MTU booth to meet for general discussion, potential opportunities and share with them on MTU future engine development and SCR system by Mr. Gerhard Kramer, Mr. Norbert Eisenblätter and Mr. Gregor Holland from MTU-F, together with the MTU Asia team.

MiningSeminarheldinSuzhou,November2008

Ourbooth@BaumaExhibitioninShanghai

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DiMo laUnches The MTU series 4000 Diesel engine MTU’s new Diesel Multiple Units (DMUs) - powered by the Series 4000 diesel engines - received a grand launch at the Galadari Hotel by DIMO on Octotber 10 to celebrate the success of these products, made possible by MTU’s team.

And it was a launch befitting the success of the Series 4000 engine - which is the best selling engine in its respective category around the world, used in some of the world’s largest locomotives, yachts, ships and military vehicles.

The Series 4000 will be the powerhouse driving the latest locomotives to run on Sri Lankan railroads which will be visible in the near future.

Dieter Schoenfeld, head of sales and aftersales operations at MTU Asia, highlighted the qualities of the Series 4000 engine, which has two distinct advantages: fuel efficiency and unparalled power weight-ratio.

A memento was presented to the General Manager of Sri Lanka Railways, Dr Lalithasiri Gunaruwan by Dieter Schoenfeld. And guests mingled at the launch which ended with a cocktail reception.

Check out the pictures in the Customers’ Evenings page!

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MTU asia KeePs bUsy wiTh shows all oVer asiaVietnam, elenex exhibition, september 17 to 19 MTU Asia showcased its quality engines at this year’s second Elenex Exhibition in Ho Chi Minh City, which draws the participation of 180 companies from 21 countries.

The show displayed the latest innovation and technologies on electrical transmission and distribution, lighting technologies, and building management.

The building industry is rapidly developing, contributing to the new face to Vietnam’s modern infrastructure and urban traffic systems.

Besides modern large-scaled building works, it is crucial for the economy to develop electric power supply, both in terms of grid and standby. MTU took the chance to display its 18V2000G63-powered diesel genset (1000kVA Prime) which garnered much interest from trade visitors in the infrastructure, energy and building industries.

Korea energy show, september 28 to october 2 ENERGY efficiency is the latest buzz word, and at Korea’s largest energy show, MTU Asia and Meksan showed just how we can play a part.

Amid high oil prices and climate change awareness, energy efficiency and renewable energy adoption are high on the agenda for many countries and organizations.

MTU Asia and Meksan displayed the efficient MDE 3042 engine model at a 36 sq metres booth at the energy show, which is the sole comprehensive energy trade exhibition in Korea since it started in 1975.

Although the Korean exhibition is losing its appeal to gas engines manufacturers, it is still important for Meksan, as a Gas CHP Genset provider, to participate annually to ensure its presence in this industry.

interferry conference, hong Kong, october 5 to 7 MTU director Stefan Mueller, of MTU Friedrichshafen’s Application Center Marine, was a speaker at this year’s InterFerry Conference, presenting the topic “Low Emission Diesel Engine Technology”.

The international conference is held at different country every year and attracts more than 200 delegates from 22 countries.

Mr Mueller’s presentation gave an overview the gradual reduction of exhaust emission limits from diesel engine set by the authorities for the next few years and how the diesel engine manufacturers plan to improve the diesel engine performance to meet the stringent requirements.

TurboJet (Shun Tak group), the main sponsor and conference partner for this year, said it was optimistic the ferry business in this area will remain busy despite the global economic crisis.

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Madex 2008 Korea Maritime and Defence exhibition, october 6 to 8 MTU Asia attracted a large crowd of navy end-users from various countries and shipyards at this year’s Maritime and Defense Exhibition, held from October 7 to 10 at BEXCO in Busan.

Korea Coast Guard (KCG) officials visited MTU’s 36 sq m booth, where MTU exhibited the 16V4000 and 20V8000 engine model. MTU met its objective of promoting its new engine models and IMCS for projects in the Naval, paramilitary and coast guards sectors.

Chief of Naval Operations Republic of Korea Navy, Admiral Jung, Ok-Keun visited MTU’s stand and was briefed on the 20V8000 engine, its advantage in efficient fuel consumption, service accessibility and the world’s navy vessels reference lists which are currently in operation.

The exhibition attracts renowned companies all over the globe to showcase cutting-edge technologies related to defense industries and naval ship building. About 100 local and foreign companies in Defence-related business and research centres participated in the exhibition.

MTU’s presence was crucial as we demonstrated our leadership in the Naval markets, and showed support to the Korea Navy who is the host of this event. It also served as a vital platform to reach out to the markets important to the expansion of our business.

MTU debuts engine at sri lanka boat showONE of the most powerful and efficient marine engines in the world – The MTU Series 2000 engine - made its debut at the recently concluded Boat Show in Sri Lanka.

The brand new engine was specially flown from Germany for the show and was unveiled by managing director and chief executive of Colombo Dockyard, Mr Mangala Yapa.

Also present at the unveiling were Diesel and Motor Engineering’s chairman and CEO Mr Ranjith Pandithage, its director Mr Suresh Gooneratne and Mr Roshan Fernando, general manager of Power Systems Department DIMO.

MTU Friedrichshafen supplies diesel engines and complete drive systems for various ships, heavy land and rail vehicles, including industrial applications and decentralized power generation plants. Its product range is the widest and most advanced in the sector, covering diesel engines from 20 to 9,000 kW and gas turbines up to 31.2 MW.

The top-selling product in its wide range of products include the Series 2000 (300 to 1,500 kW) and 4000 (700 to 3,500 kW) engines.

These powerful, economical, clean and rugged units - which Sri Lankan industry players got to view at the Boat Show - were jointly developed by MTU Friedrichshafen GmbH and Detroit Diesel Inc.

One of the major technological features behind the huge success of this Series is the electronically controlled Common Rail injection system which was introduced on the Series 4000 making it the first diesel engine in its class to be to be fitted with Common Rail injection as standard.

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DeceMber 2008

The Series 2000 Common Rail has sparked extremely enthusiastic reactions on the market and already, more than 1000 engines in this series have been ordered.

(The 16V 2000 Common Rail engine with 1,790 kW (2,400 bhp) is 20 percent more powerful than predecessor. It includes a common rail injection with 1,800 bar injection pressure, a new engine management and high performance turbo charging. This leads to an exceptionally lightweight and compact design and improved fuel economy.

Delivering 2400hp and weighing in at less than 3.4 tonnes, the 16V 2000 Common Rail boasts a remarkable power-weight ratio of 0.71 hp/kg, placing it in a new performance class.

It is unique in this sector. In the 2000+hp yacht engine class, its closest competitor weighs 6.5 tons and produces 2250hp giving it a power-weight ratio of 0.34 hp/kg - barely half of what the new MTU engine achieves.

MTU asia Marine sales Training 2008, october 29 to 30 NEW sales staff from MTU distributors and units in Region 2 were given an induction course by the MTU Asia Marine Sales & Application team.

In the span of 2 days, participants were trained on a range of topics from MTU engines (S60/S2000/S4000) to MTU Electronics for marine application. This training also allowed for interaction between our team and the new staff from our region.

“I particularly like that the training covered very well on engine selection criteria, series 4000 and series 2000. “, said Mr. Iwamoto. “Positive feedback from the participants gave the training a rousing conclusion.”

MTU aPPoinTs DirecTor oF DisTribUTors/sUbsiDiaries ManageMenTMTU Asia veteran Frankie Ku, who has been with the firm since 1989, has been appointed head of Distributors/Subsidiaries Management for a year now.

Frankie, who is married with two boys, first moved to Singapore in 1989 to join MTU and has moved all over the region including Suzhou, China and Hong Kong to head up some of MTU’s operations. In 2004, he took up the post of Regional Distributor Management back in Singapore.

Frankie has a degree in management from University of London, and has been a marine engineer in various companies, rising through the ranks to take on management roles in the shipping industry.

We wish Frankie all the best in this role!

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cUsToMers’ aPPreciaTion eVeningsIn recognition of our customers’ support, we went to Hong Kong, Sri Lanka, Malaysia and back in Singapore to host various appreciation evenings for our customers. Here are the pictures…

in hong Kong

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in MalaysiaThank you dinner, with compliments from MTI

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in sri lanka

in singapore