DEMM Engineering & Manufacturing
MHM AUTOMATION ACQUIRES SOUTHERN CROSS ENGINEERING
TWO OF New Zealand’s leading engineering companies are set to become one, with NZX-listed MHM Automation (MHM) purchasing fellow Christchurch-based business Southern Cross Engineering (SCE).
Like MHM, SCE has a long history of designing and supplying leading technology-led solutions. Established in 1954, SCE is a diversified engineering firm that designs, manufactures and distributes a range of high-quality equipment into the meat, dairy, timber and infrastructure sectors.
MHM Automation itself designs and supplies automated systems and equipment for the global food processing and logistics sectors. It is headquartered in Christchurch, with offices in Hastings, Auckland, Brisbane and Green Bay, Wisconsin. Its key operating brands include
Milmeq, H&C Automated Solutions and Mercer Stainless.
The acquisition is conditional, with the conditions expected to be satisfied on or before 18 December. If confirmed, the acquisition is due to settle on 11 January 2021. The purchase price will be calculated through an earn out over the next two years. The acquisition does not include SCE’s Rocktec business or its Australian based service business.
MHM Automation chief executive Richard Rookes said the acquisition would provide scale and diversification for MHM’s manufacturing base and cross selling opportunities in new primary and infrastructure sectors.
“We’re excited to bring the SCE brand and IP into the MHM Automation group. SCE has a long track record of the design and supply of innovative engineered solutions to New Zealand and Australian primary and infrastructure sectors.”
The SCE business will continue to operate out of its existing premises. MHM is offering employment to key SCE staff, being a mix of design, engineering, controls, electrical and workshop-based staff, Rookes said.
“It was important to us that we retain the key SCE staff as they’re the heart of the business. We are bringing across a cross section of sales, engineering, design, controls and workshop staff to ensure that the key knowledge and relationships are retained. MHM Automation look forward to working with the SCE customers to continue to provide leading solutions and services to them.”
Areas of focus related to SCE for
MHM Automation going forward include industry-leading grain stackers, pressure vessels and related boiler solutions, key agencies for the timber industry, specialised solutions for Antarctica and an established service and spare parts business.
“Both SCE and MHM Automation value our customer relationships and across all of our businesses we have built a reputation for innovation and delivery of high- quality products and solutions – this will not change,” said Rookes.
“We expect to be able to invest more in our operations across the Group to ensure we remain innovative and competitive, which will ultimately benefit our customers.
“MHM Automation’s stated strategy remains to grow the technology and automation end of its business.”
COLLABORATIVE ROBOTS – or cobots – remain the fastest growing segment of industrial automation, projected to grow at a Compound Annual Growth Rate (CAGR) of 30.37 percent between 2020 to 2025. Recently, cobot market pioneer Universal Robots (UR) solidified its frontrunner position today by selling the 50,000th UR cobot, which was purchased by a German manufacturer to enable higher productivity and improved employee safety.
The milestone cobot was specially handed over to VEMA technische Kunststoffteile GmbH and VEMA Werkzeug- und Formenbau GmbH located in Krauchenwies- Göggingen, Germany, at a ceremony held at VEMA in December.
James McKew, Regional Director of Universal Robots Asia-Pacific comments that this momentous occasion showcases Universal Robots commitment to the market. “Covid-19 has certainly accelerated the need to automate and we have seen an increased demand for cobots in the ANZ market,” he said.
McKew attributes this increase to a number of influences as a result of the pandemic. “The change in labour availability due to borders being shut has certainly a played a part in this uptick. Further we have seen so many customers pivoting their production to adapt to new consumer demands. The flexibility of cobots to move from one application to another makes them very well suited for quick changeovers.”
According to McKew, other factors such as the ease and affordability of adding a cobot to the production has seen companies who need to increase productivity in the same footprint with a smaller workforce (due to social distancing requirements), embrace cobots as a cost- effective solution.
Over the past 15 years, the company has worked hard to develop an entirely new market segment with a mission to enable especially small and medium sized companies to automate tasks they thought were too costly or complex.
This further emphasizes how UR has created a new global distribution network, a new ecosystem of developers, and ultimately a completely new business model. As a pioneer in this market, Universal Robots has put a lot of work into creating awareness, influencing standards, and changing customers’ perceptions influenced by their experience of traditional robots.
VEMA GmbH is a great example of UR’s mission realised. VEMA was looking for a cost- effective, flexible, easy-to-use automation solution they could implement, program, and manage on their own. They found exactly that in the UR cobot.
COBOTS ENHANCE BOTH PRODUCTIVITY AND QUALITY
VEMA’s new cobot will join a fleet of three other UR cobots already deployed in pick and place tasks in end-of-line applications at the company.
Christian Veser, managing director at VEMA GmbH, said the company is thrilled to be the recipient of the milestone cobot and said cobots have enabled the company to add a third shift, now operating around the clock. “We have enhanced our productivity remarkably and also achieved better quality,” he said. “Our employees are freed from ergonomically straining work to focus on quality testing. In navigating Covid-19 challenges, it has also been a great advantage that the cobots don’t need to keep a safety distance or undergo quarantine. They always work!”
AFTER AN earlier postponement due to Covid-19 restrictions, the winners of this year’s Steel Construction NZ (SCNZ) Excellence in Steel Awards were announced in Queenstown in November. Almost 170 structural steel industry leaders and specialists gathered at Skyline, to celebrate the best of the best at an event that showcases the sector’s commitment to innovation, best practice and collaboration.
Judges pared back 35 award entries to just 15 finalists, which demonstrate the exceptional design and execution possible when steel is used as the primary construction material.
SCNZ chair Frank Van Schaijik said: “The high calibre of projects showcased in this year’s awards is testament to the knowledge, expertise and dedication of our people. It’s what distinguishes New Zealand’s structural steel industry from other countries, which is vital in light of Covid-19 when local skills and capability are so highly sought after.”
The awards also saluted the outstanding new blood in the industry with the Apprentice of the Year and Young Achiever of the Year awards.
These awards are a nod to the increasing number of talented workers emerging in the structural steel industry, and celebrate those whose skills, drive and willingness to learn has helped them to achieve outstanding outcomes. They recognise well-rounded people who demonstrate not only talent and a good attitude, but display traits important to the industry – commitment, innovation and agility.
The awards also reflect the industry’s commitment to upskilling young members of the trade and investing in the future of the local structural steel industry, which is crucial given the impact of Covid-19 on New Zealand-grown capability.
“As a well- established industry we have a responsibility to ensure we pass on our skills and experience to the next generation of structural steel specialists to safeguard the future of the sector and support our economic recovery,” said Van Schaijik.
“Of the total workforce employed by local structural steel contractors, 9.1 percent are in a training programme, and 69 percent of structural steel contractors employ an average of four apprentices.
So it’s fantastic to see SCNZ’s Apprentice of the Year and Young Achiever of the Year awards gather momentum, year on year. Our industry should be proud of its commitment to fostering our bright, young talent.”
Judging the awards was made difficult by the high standard of each of the finalists, who are all deserving of an accolade. The judges noted that the calibre of people coming through points to a great future for the industry.
The 2020 winners and finalists were:
Apprentice of the Year Winner: Joshua Jackson, Global Engineering
Global Engineering Business Development Manager Will Mahon says that Jackson is a great asset to the business thanks to his constant drive to do the best job he can.
“Joshua has risen to the challenge with some complex and architecturally demanding projects and has successfully come up with smart ways to apply his engineering knowledge,” says Mahon.
Jackson credits his success to being surrounded by highly skilled and committed mentors in the workshop. Now he’s keen to pay it forward, sharing his knowledge with the new apprentices.
Apprentice of the Year finalists:
• Archie Morales, John Jones Steel.
• Gavin Neal Menzies, Red Steel.
• Leighton Dewar, John Jones Steel.
• Micah Swindells, Petone Engineering.
Young Achiever of the Year Winner: Kieran Houssenloge, Petone Engineering
Houssenloge joined Petone Engineering as a fabricator in 2018, and Managing Director Chris Molenaar says he turned out to be a particularly good one.
“It was clear early on that Kieran had leadership skills and he quickly became the workshop supervisor without needing a formal title. He started organizing the work as it came through the shop and the fabrication team was happy to do as he instructed,” says Molenaar.
One standout attribute is
Houssenloge ‘s willingness to embrace change, improvements and innovative technology. It’s an asset to anyone in a rapidly growing company,” says Molenaar. “He is a quick learner and takes responsibility for his own personal development.”
One of Houssenloge’s early challenges was successfully managing the fabrication of 30 K-frames that Petone Engineering made for the Chinese Embassy in Wellington.
“At the time we had a small shop and the logistics of handling the steel in a small area was his greatest challenge. and we had just added two new fabricators to our team so Kieran was training the new staff at the same time,” says Molenaar.
“Kieran leads by example and sets high standards for his team. With his willingness to learn and his proactive approach to personal development, there is no ceiling to limit where he could go in this industry.”
Young Achiever of the Year finalists:
• Blair Neverman, Global Engineering.
• Luke O’Brien, Steel Pencil.
• Petrus Barkowitz, Waikato Steel Fabricators.
Steel Construction NZ (SCNZ) Chair’s Award
Greg MacRae, Associate Professor
of Civil Engineering at the University of Canterbury, is this year’s recipient of the prestigious Steel Construction NZ (SCNZ) Chair’s Award. The annual award recognises individuals who have made a significant and lasting contribution to New Zealand’s structural steel industry. See page 7. Supreme Winner and Under $500K category: Global Engineering for NZ Blood Atrium
The project involved installation of a new atrium roof within the central compound of an existing building. Originally planned as a timber structure, the design soon changed to structural steel to accommodate the complex geometries and the desired spans. To achieve the desired aesthetic, the final roof form is a combined space-truss and diagrid featuring architecturally exposed structural steel. $500K-$1.5M: VIP Steel for Redcliffs School
The new Redcliffs School in Christchurch uses structural steel to overcome numerous site and ground challenges, resulting in an extremely robust and efficient building. The site sits in a flood plain and a coastal inundation zone, and is subject to lateral spread and liquefaction settlement. Steel’s light weight and flexibility were ideal for the design and detailing of the structure. $1.5M-$3M: Eastbridge for Manawatu River Cycleway Bridge
This low-maintenance bridge is comprised of superstructure elements fabricated from weathering steel, and handrail and balustrade elements manufactured from grade 316 stainless steel. In total, 300 tonnes of steelwork were delivered to site over three months. The result is a standout bridge with a slender profile and a low aesthetic impact. Over $3M: Eastbridge for Bridge 20 – Transmission Gully
This bridge was designed to be launched over Cannons Creek Gully. The lightweight steel structure kept the piled foundations and piers slim and, due to the material’s lower mass, allowed for longer spans and improved seismic performance. The project required more than two years’ worth of continuous fabrication time in the workshop. The design challenge was how to span the new four-lane alignment 50m above the Gully – the solution was a steel box girder bridge. Standalone Residential: VIP Steel for The Spur
Glenelg Spur is a small lane in the hills of Christchurch. Steel allowed clear spans, providing extensive views over the city. During the design process, VIP Steel put considerable thought into how the steel would be transported to site and the detailers designed in such a way that no steel member was longer than 13m. The bolt-up steel design enabled rapid construction – the total build time was just two weeks.