future by semcon - the chinese product revolution

A MAGAZINE ABOUT ENGINEERING SERVICES & PRODUCT INFORMATION # 3 2011

1 ABB DOUBLES VOLUME AT THE SAME FACTORY

1 MINESTO CREATES ELECTRICITY UNDER WATER

1 SCIENCE FICTION WITH NANOTECHNOLOGY

China doesn’t only manufacture global products. It develops them too.

THE PRODUCT REVOLUTION

Your global partner in engineering services and product information www.semcon.com

future by semcon

#3 2011

2 FUTURE BY SEMCON 3.2011

CONTENTS #3.2011ARTICLES IN THIS ISSUE OF FUTURE BY SEMCON


24 IS A KITE THE FUTURE OF ELECTRICITY?Minesto’s underwater kite generates electricity by surfing on tidal currents. Now it’s the moment of truth. Semcon has been there during the whole journey.

34 INFINITE NANOTECH POSSIBILITIES One of the world’s leading experts on nanotechnology, Christine Peterson,explains how nanotechnology will change … everything. Read more about how the future will look.

48 MEET SEMCON’S SHARPEST MINDS In Semcon Brains you can meet Zhao Jibing and Xin Situ who do business in China, Nina Lönn who refines in-dustrial machines and Mikael Ham-skog who solves plastic problems.

EDITORIAL

Looking to the East

I n the wake of the financial crises in Europe and the US, more and more people are looking towards the East. China has emerged as the global economy’s new engine, with seemingly

limitless resources and ambitions. However, there’s also a very conscious trans formation in China. From production to inno vation, from plagiarism to unique products – and it is not content with its own gigantic market. More and more Chinese companies are looking outside their borders.

SEMCON HAS BEEN ESTABLISHED in China since 2005 and we will be a natural partner for companies in China and for Chinese companies who want to get out in the world. Therefore, we are continuing to expand in China. Today, we are at five locations with over 40 employees and have the ambition of expand-

ing in industries such as telecommunications, life science and automotive.

In this issue of Future by Semcon, we analyze a China in transition, we visit Bombardier, who sup-ply high-speed trains to China and you can also meet two of our talented engineers in Beijing.

THIS YEAR MARKS Future by Semcon’s tenth an-niversary as a customer magazine. For a decade we’ve had the ambition of showing the exciting world of technology and innovation through words and images that we encounter at Semcon every day. Today, you can of course get the magazine on the web or on your iPad, but we hope you still get the exciting sensation of possibilites when you read about our challenging assignments. Happy reading!

KJELL NILSSON, CEO, SEMCON

30 FROM STATION TO LINE WITH ABBTo double its production capacity, ABB Device Components in Ludvika took a radical approach: they went from a station set-up to a production line, with Semcon’s help.

44 THE FUTURE ACCORDING TO SEMCONSemcon’s involved in various research projects to increase its skills in future technologies, especially in the auto-motive sector. Find out what you can expect from tomorrow’s cars.

52 EFG GOT ASSIS TANCE FROM INDIAOffice furniture manufacturer EFG needed help to optimize new height-adjustable furniture. With help from Semcon India they saved both time and money.

FUTURE BY SEMCON 3.2011 3

Website: semcon.com Letters: Future by Semcon, Semcon AB, 417 80 Göteborg, Sverige. Change of address: [email protected] Publisher: Anders Atterling. Tel: +46 70-447 28 19, email: [email protected] Semcon project manager: Madeleine Andersson. Tel: +46 76-569 83 31, email: [email protected] Editorial production: Tidningskompaniet, Göteborg. Project Manager/Editor: Katarina Misic. Designer: Mathias Lövström. Website: tidningskompaniet.se Translation: Cannon Språkkonsult AB, Kungsbacka. Repro: Tidningskompaniet, Göteborg. Printing: Trydells Tryckeri, Laholm. ISSN: 1650-9072.


6 The new ChinaChina wants to replace low-priced products with high-tech. With its own innovations and large-scale production they’re ready to take on the world. Will China succeed with its product revolution?


34PAGE

PEOPLE #3.2011PEOPLE IN THIS ISSUE OF FUTURE BY SEMCON

China doesn’t only want to make the world’s products but also create them. Meet some people in Future by Semcon talking about the theme of China.

30PAGE

zhao jibing, team leader and project manager, semcon beijing, chinaHow do you hope that Semcon will continue to develop in China?“We must succeed in adapting to the enormous speed of China’s economic development. Even companies develop more quickly than in other countries, and Semcon has to keep up.”

magnus häggmar, production engineering manager, abb ludvika, swedenHow important is China as a market for you at ABB? “It is and has been very important to us for a long time because of the large volumes involved. We have had our own manufacturing in China for a number of years. Much of the expansion in China is in the power sector because they need more and more energy.”

christine peterson, nanotechnology expert, foresight institute, usa What is China’s role in the field of nanotechnology today? “China is ramping up rapidly in nanotechnology and their number of patents is increasing very quickly. They are determined to be involved in this space and they will be a major player in the area. They currently don’t have the right levels of talent, but I don’t think we can count on that continuing for long.”

48PAGE


anders jansson, ceo, minesto, göteborg, sweden What potential does China have as a market for tidal power?

“China has major market potential, both for us and our competitors. The challenge for us is that they have relatively shallow waters there.

However, we expect that we could extract 5,000 - 10,000 megawatts off the coast of China, which represents about 20,000 of our tidal power.”

nina lönn, specialist in exhaust treatment,

semcon göteborg, swedenWhat is the potential in China for

the area you work with?“The number of vehicles in China is sky-

rocketing and emissions standards will be tightened. The problem is that they still run on

fuels containing harmful substances for catalytic converters, such as sulphur, which means the converters aren’t working properly. The fuels

must be significantly improved before very low emission levels are achieved.”

mikael hamskog, plastics expert, semcon lund, sweden What is China’s relationship with polymers?“The plastics world is extremely China-oriented. There’s tool- injection moulding at huge factories with 2,500 CNC machines in a row. They can do it all - quickly and cheap.”

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FOCUS:CHINA


MADE IN CHINA.FOR REAL.In just over thirty years, China has gone from being a secretive nation to an economic superpower. Now they want to replace low-price products with cutting-edge technology. With its own innovations and large-scale production, China is ready to take on the world.TEXT JOJJE OLSSON & KATARINA MISIC PHOTOS CHARLIE FONG, BOB SACHA & IMAGINECHINA / SCANPIX

FUTURE BY SEMCON 3.2011 7FUTURE BY SEMCON 3.2011 7

HONGGUANGCUN, 1979: A small street in one of Beijing’s sleepy suburbs, mostly known for its limited, but at the time unique selection of electronics. Three years earlier a decade of cultural revolution had reached its end, during which almost all research was stopped, and the country’s universities were closed. China’s new leaders wanted to catch up with the out-side world, and for the first time in a long while Chinese people were sent to the West to gain ideas and knowledge.

One of them was Chen Chunxian, a physicist and researcher at the Chinese Academy of Sciences, who was invited to the USA in 1979 and visited Silicon Valley, among other places. Silicon Valley at this time consisted of just over three thousand electronics companies, most with fewer than 100 employees. Steve

Jobs, Steve Wozniak, Bill Hewlett and David Packard were already there, but were not yet the legends they would become. Chen Chunxian was very impressed by what he saw.

“We thought, ’Why can’t we do the same thing in China? Why can’t we do it better?’,” he apparently said after his visit.

ON 23 OCTOBER 1980, Chen Chunxian started the first non-state-controlled company in Zhongguancun, with a focus on plasma tech-nology. His company soon shut down, but public interest had been awoken and the way was paved for private companies and entre-preneurs. In 1988 the authorities designated the area a “high-tech experimental develop-ment centre” and Chen Chunxian was recog-nized as the founder of China’s Silicon Valley.

FOCUS:CHINA

Z8 FUTURE BY SEMCON 3.2011

Thirty years later, companies in Zhong-guancun have devel-oped technology used in everything from spacecraft to nuclear power plants. Lenovo, now the world’s second largest PC manufacturer, was founded here. Google, Intel, Ericsson, Motorola, Oracle and Sony all have their Chinese headquarters and devel-opment centres in Zhongguancun. Microsoft’s new Chinese development centre is also being built here and will house 5000 employees. According to state media there are over a million employees here, at

around 20,000 companies. The area is expanding at the moment with a 75 km² innovation park, which will attract yet

more talent and more capital. Over

120,000 patents have already come

from Zhongguancun. “Zhongguancun has

entered a new phase of develop-ment. In the next 20 years, Zhongguancun will have the three top technology industry clusters in the world and will form a grouping

of the world’s top technology entrepreneurs,” Yang Jianhua at the Zhongguancun Science Park told www.cww.net.cn.

Many see China’s Silicon Valley as the incubator for the next Google, Apple or Microsoft, and there is much to indicate that they may be right. Because China has decided that its countless entrepreneurs should also be innovators.

WHEN CHINESE ECONOMIC PROGRESS began in the 1980s, there were not many who believed that the country could seriously challenge the US as the world’s economic superpower. Exports were dominated by textiles, clothing and an increasing amount of hardware and engineering, but chronic electricity shortages often led to widespread power outages all over

China’s Silicon Valley, Zhongguancun in north-western Beijing, buzzes with entrepreneurial spirit and is a symbol of the new China, where innovation and development will be the focus.

China 12.9%

Share of world research budget

Source: Battelle, R&D Magazine

USA 34%

Japan 12.1%

Europe 23.2%

Others 17.8%

“ Within 20 years, Zhongguancun will be one of the three main technological industrial areas in the world” Yang Jianhua, Zhongguancun Science Park


FOCUS:CHINA

China, poor roads were unable to produce the coal required for energy production and raw materials did not arrive at industries.

It had certainly succeeded in producing nuclear weapons and launching its own satel-lites, but industrial equipment was still largely the same as in the 1950s. Soviet experts who helped with this had to leave China hastily for political reasons in the early 1960s, and since then most things had stood still.

Therefore, the liberal politicians responsible for starting Chinese production had a long way to go. They focused on decentralization and getting industry going. But above all, great efforts were made to relaunch research and development in the country. 15 years ago, R&D accounted for 0.5% of China’s GDP. Now the figure is at 1.5%, and in real terms this means that China invested SEK 700 billion on research last year. This is still only just over a third of the USA’s research budget. But this situation may have changed by 2020, when China’s economy is projected to become the world’s largest, and 2.5% of the budget will go into R&D.

In addition to these staggering figures, there are concrete plans to land on the moon, expand nanotechnology and for two million patents an-nually by 2015. A series of bonuses have also been introduced, such as better housing for individuals and tax breaks for companies that produce patents. At the same, over SEK 100 million has been promised to winners of Nobel prizes or similar awards.

SUCCESS HAS NOT BEEN LONG in coming. In recent years the number of Chinese patent applications has increased dramatically in all areas. According to research firm Thomson Reuters, China will pass both the U.S. and Japan this year to become the nation with the highest number of annual patent applications in the world.

“The leadership in China knows that in-novation is its future, the key to higher living standards and long-term growth. They are doing everything they can to drive innova-tion, and China’s patent strategy is part of that broader plan,” David J. Kappos, head of the U.S. patent office, told the NY Times.

In addition to economic growth and less dependence on foreign technology, there are other factors driving the need for innovation. One important factor is the environmental effect of China’s tremendous development in recent decades.

“There is genuine concern among authorities that the ongoing degradation of the environ-ment will influence the country’s stability. To prevent flooding and acid farmland they are

investing more than most countries in these areas,” says Björn Odenbro,

head of Tricorona in China, which deals with emis-

sions. Thanks to these

efforts, the majority of the world’s solar cells are already produced in China, and in 2010 it overtook the United States as the country with the most

wind turbines in the world. Last year

13,000 wind turbines were installed in China:

one every 45 minutes. According to Greenpeace 70%

of these came from domestic manufacturers. The largest Chinese manufacturer is called

Sinovel, and its aim is to be the largest in the world by 2015 (it is currently second after the Danish company Vestas).The company was founded in 2005 in Zhongguancun, but already has its own research centre with over 600 engineers, developing turbines from 1.5 to 6 MW in size with a focus on wind power at sea.

Sinovel’s ambition to expand abroad is partly driven by the fact that the domestic market for wind turbines has declined.

Chinese authorities are currently approving fewer wind farms, to give the national grid time to absorb the thousands of new turbines that have already been built but not yet con-nected. At the annual wind industry confer-ence in Beijing in October, Sinovel CEO and chairman, Han Junliang, said that his goal is to sell as many turbines abroad as in China.

Everything suggests that he may succeed. The technological development that compa-nies like Sinovel are involved in through local production and the acquisition of foreign companies has given them an edge on many global competitors. The fact that Sinovel has gained such a market share in just over six years is due to basing its growth on earlier technology and, above all, being quick to ex-ploit it.

ANOTHER FACTOR LEADING CHINA towards inno-vation is the huge domestic market. China’s domestic needs create a demand which gives their companies the opportunity to gain ex-perience, income, and a wide customer base. Take telecommunications, for example – in the mid-1980s, most traffic still went through six major cities in different parts of the country, and the first fibre-optic networks had yet to be rolled out. Today there are over 400 million land lines and twice as many mobile phone users.

This potential was recognised by a company that was founded in 1987 under the name of Huawei, with start-up capital of less than SEK 20,000. Their resources were so small that Huawei started out as a distributor to a Hong Kong-based company that wanted to sell private branch exchanges to the mainland.

However, in 1990, it started its own indi-vidual research on private branch exchanges and gradually established itself in rural China. Their new customers were small businesses and hotels beginning to spring up along with China’s economic boom.

“ The leadership in China knows that innovation is its future, the key to higher living standards and long-term growth.”

David J Kappos, US Patent Office

VestasDenmark, 14.8%

SinovelChina, 11.0%

GE Wind EnergyUSA, 9.6%

GoldwindChina, 9.5%

Enercon, Germany7.2%

Others47.9% The world's five

largest wind power companies:percentage of

installations, 2010

Source: BTM Consult


Pete Denney is preparing right now to head up a new office in Shanghai, concentrating on the automobile

industry. In September 2011 Semcon was chosen as a long-term partner in the development and production of all after-sales information for Qoros

Auto’s upcoming car models. So, in Janu-ary 2012 Pete will change workplace from the Hungarian capital to China’s largest city.

The multi-year agreement is the start-ing point for the establishment of the new office in Shanghai and in a couple of

years it is estimated that around fifty en-gineers will be involved in delivery glob-ally, of which a significant proportion will belong to the Shanghai office. Having a base in the world’s largest market is a must for Semcon.

“This is where it’s at right now. There

is huge growth in China at the moment and that’s where everyone’s going. The market is huge and the opportunities many. You have to be in China if you want to be part of the future.”

Pete Denney has worked at Semcon since 2007 and has extensive experience in starting new projects. But the China project will be of a completely different scale and pace.

“Of course, it’ll be different in many ways. It’s always a challenge to start something new, and to build something from scratch. But it doesn’t scare me. I’ve done the same in both the UK and Hungary. If I were to choose one word to describe it, I would just say that it feels exciting.”

There is already a building in Shanghai where the Semcon offices will be.

“I have been there and had good meetings with potential clients. Now it’s about starting work on site. There’s a long list of things to do,” says Denney, and continues:

“Our goal is to offer customers something that has not previously been available to them locally, and we will combine our presence there with the international experience we have in the company. The hardest part will probably be the very start, before we know exactly what skills are in place in China.”

His focus will be on recruitment and also delivering products to local customers.

“Perhaps the most important thing for me will be to build my team, and to create a functioning organization during 2012.”

To support him, he will have the expe-rience that Semcon’s other operations in China have accumulated over the years. What are the prospects for the Chinese auto industry?

“Very good. In the past 20 years it has grown enormously. The next step is to target Europe and the rest of the world. We at Semcon will help them prepare when these steps are taken.”1

Pete Denney wants to offer the Chinese car industry something newIn January 2012 Semcon will open a new office in Shanghai, focusing on after-sales for the automotive industry. Then Pete Denney’s biggest challenge yet starts – establishing Semcon in the world’s largest car market.TEXT MARCUS OLSSON PHOTO CSABA JOBBÁGY

THE SPECIALIST

Pete DenneyTitle: Team ManagerOffice: Semcon Shanghai, China



By 1997, Huawei signed its first overseas contract – in Hong Kong, whose revolutionary products it had helped to sell in China a decade earlier. Today, Huawei is active in over 140 countries, and is now competing with Ericsson for the title of the world’s largest telecom-munications company. Half of the company’s 100,000+ employees are said to work on some kind of R&D. Huawei has applied for more than 50,000 patents and is listed in international rankings and magazines as one of the world’s most innovative companies. In 2010, 65% of Huawei’s revenues came from international markets – despite the fact that it has not quite had the success hoped for in the United States.

“It’s pretty impressive that Huawei can almost become a global leader without the US market,” Duncan Clark of the consulting firm BDA China told Businessweek.

China’s market share in telecoms infra-structure in Europe, Africa and the Middle East increased from 12% to 31% between 2008 and 2010. Huawei is now also challenging Ericsson at home: both companies will be involved in the expansion of Norway’s new 3G and 4G networks.

“Huawei will continue to help themselves

and if Chinese companies become world leaders, it means that the Chinese standard will become the global standard. This in turn can further help the often-unknown Chinese companies in the world market,” predicts Frédéric Cho, China advisor at Handelsbanken Capital Markets and vice chairman of the Sweden-China Trade Council.

JTHE RAILWAY IS PERHAPS THE CLEAREST example of how China’s enormous domestic needs spur its development. In the space of a few years, China has rolled out the world’s longest train network, to facilitate the greater need for mobility, for example, on national holidays, when hundreds of millions of migrant workers and students want to return to their home towns.

In time for the Olympic Games in 2008 the first high-speed train in China went into ser-vice between Beijing and Tianjin. By 2015, an incredible SEK 6,000 billion on construction and research will have been invested in this area. According to the magazine Railway Gazette, at least 10,000 engineers are now employed in railway research in China. Exports are also growing in this sector. China South Locomotive & Rolling Stock

Corporation is now the world’s largest manufacturer of electric locomotives, and has already exported trains or parts to over 60 countries. This year it sold its first train in Europe, and has already established a research centre in England.

“More and more of our train parts come from China and other low-cost countries. You can see the same pattern with several of our suppliers,” says Henrik Tengstrand, head of development at the train manufacturer Bom-bardier in Sweden.

He believes that Chinese companies’ rapid development is due their technical ability to “hook onto the very latest trend”, and learn-ing a lot through joint ventures with com-panies in countries such as Japan, Germany and France. Proof of this came when an entirely domestically-produced train set a world record earlier this year, when domestic trains test-drove the new Beijing-Shanghai route at 486 kph.

The rapid development of high-speed trains is mainly due to domestic needs, which makes it worth the investment of hundreds of billions of dollars. The same trend can now be seen with nuclear power to secure the country’s energy needs, and in pharmaceuticals, for the

Last year 13,000 wind turbines were installed in China: one every 45 minutes.

FOCUS:CHINA


realization of China’s new massive nation-wide health insurance reforms.

The above industries are just some where there are ongoing discussions about intellectual property. Chinese authorities have stated a desire to improve protection against the pla-giarism of products and ideas, but still many foreign companies hesitate to invest in R&D in China, according to Frédéric Cho. However, the authorities’ ambition is to improve these laws, and even if progress is currently slow, it will be increasingly important in the future.

“The regulatory framework and understand-ing already exists, but is not followed in practice. However, this could change when Chinese firms reach a level where their own products have to be protected,” says Frédéric Cho.

Some also question China’s patents statis-tics. China’s statistics on patents also include patents of usage, which may be modifications of an existing patent, and thus not as innova-tive as a new patent.

However, these patents of usage and small innovations are also important. This is espe-cially true in China, according to David Breznitz, researcher at the Georgia Institute of Technology and author of the book “Run of the Red Queen.”

“As China’s economy is still based on ex-port manufacturing, small improvements in production and logistics are of great value. By improving processes you can improve your finances and make progress in research without taking drastic measures,” said David Breznitz to the NY Times.

He mentions as an example that Apple laptop chargers have become safer and more efficient over time, thanks to technical modi-fications entirely made in China.

THE AUTOMOTIVE INDUSTRY in China has received more and more attention as the country’s economy has grown. In 2009 China passed the United States as the world’s largest market for passenger cars, but this develop-ment has only occurred in recent decades.

“Until the 1990s, there was no real car industry in China. BMW was the first actual manufacturer, and at the end of the 1990s Geely became the first domestic producer,” says Yang Jian, China editor of Automotive News.

Chinese car manufacturers have recently expanded into many other foreign markets with their low-priced cars.

“Chery QQ has had great success in South Africa and particularly in Brazil. Brazil has recently imposed punitive tariffs on foreign cars precisely because domestic producers have been threatened,” says Yang Jian.

Before tax was increased by 30% you could get a Chery QQ in Brazil with airbags, air conditioning, a CD player and power steering for under SEK 100,000.

All Chinese carmakers have copied foreign companies, just as Japan and Korea did previ-ously, according to Yang Jian. However, he says that many have now outgrown that stage and started to make their own models:

“Manufacturers have realized that merely copying does more harm than good in the long run, because they want to reach global markets.”

In particular, he mentions the brand Great Wall, which has already started to manufac-ture cars in Bulgaria, and has exported SUVs to countries including Italy.

“In a few years’ time, Great Wall could sell their SUVs in the US, which was unthinkable only a few years ago,” says Yang Jian.

Or, as Börje Ekholm, CEO of Investor, put it in an interview with the Swedish magazine Veckans Affärer:

“You know, when I was growing up we used to laugh at Japanese cars. We don’t any more. Then we laughed at Korean cars. We don’t do that any more. Now we laugh at Chinese cars …”

However, Yang Jian believes that domestic companies are a long way behind global brands, but that within ten years they can export on a large scale to the West and then, if the strategy is sound, duplicate the success of Japanese and Korean companies.

“A problem that Chinese car makers have always had is small-scale production, but this may be about to change now that China is the

world’s largest car market,” he says. In recent years there has been investment

in electric cars and hybrids, coinciding with the aforementioned political priorities for the environment and green energy. China may, thanks to its domestic market, soon become the world leader in this area.

“If the infrastructure is built as planned, with charging stations and subsidized vehicles, demand should increase. China will then be the world’s largest market for electric cars and Chinese manufacturers will have an ad-vantage over the others,” says Yang Jian.

ACCESS TO CAPITAL, FOREIGN INVESTMENT and the opportunity to invest in and buy other companies are other key factors for a growing

economy which wants to look outside its borders. This is also true for

China. “Previously, small busi-nesses and innovators

have been dependent on bank loans, which have not always been easy to obtain. Now private wealth has increased, more people can take risks and also invest

in other ventures,” says the author and

China expert Jack Per-owski, who lived in China

for 20 years and is one of many who believe in the coun-

try’s scientific development. In addition, foreign investors have started

to notice China, and stock market listings have increased dramatically. According to Jack Perowski, 321 companies entered the Shenz-hen stock exchange last year, with capitaliza-tion of SEK 300 billion. This is almost three times as many companies and five times as much money as the previous year.

China Railway Construction CoChina, 52.0

China Railway GroupChina, 48.8

VinciFrance, 45.5

BouyguesFrance, 38.1

CSCECChina, 38.1

The world's five largest

construction companies

turnover in billions of US dollars, 2009

Source: International Construction

“ The companies that emerge as winners in China and go into the export market are already ex-tremely strong and capable.”

Frédéric Cho, vice president, Sweden-China Trade Council

A report from the Swedish Embassy in Bei-jing shows that there has been a significant in-crease in Chinese acquisitions abroad for the last few years, not only in automobiles but also in several other sectors. Previ-ously, Chinese international acquisitions were mainly concerned with access to natural resources. Now the focus is on access to Western technology, but also Western brands. An interest in develop-ing countries has also gradually been replaced by a focus on areas such as Australia, Japan, the EU and North America.

Jack Perowski believes that technological develop-ment is not a choice for China, but rather a vital necessity.

“If China can’t invent, it can’t continue to grow. It’s that simple. Chinese companies are past the point of having to copy products or technologies in order to move to a higher stage of development. Chinese engineers are

perfectly capable of developing products that are suitable for the Chinese market. Moreo-ver, any know-how that is needed but doesn’t exist in China can be purchased.”

Chinese companies also have a new self-confidence nowa-

days. Lenovo, which bought IBM’s PC busi-

ness in 2005, is an ex-ample of this. In the battle with Apple, they have devel-oped their own products LePhone and LePad and are fully aware of their importance to the

company. “Anyone who

loses this battle will be phased out from the his-

tory of this industry. His-tory has proved we are good at

catching up with the market’s leaders. Though Apple is winning a significant share in the Chinese market, it has not gained a clearly leading position yet. Our advantage is we know this market better,” Lenovo’s legend-ary chairman Liu Chuanzhi told Bloomberg.

Despite the political situation in China, there is a greater tradition of individualism and risk-taking when it comes to entrepre-neurship than in Japan, a country whose rise and fall China has been able to study closely. But perhaps their biggest advantage is the extremely tough competition for 1.3 billion customers in the domestic market.

“The companies that emerge as winners in China and go into the export market are already extremely strong and capable, a bit like Ericsson or ABB when they expanded away from Sweden,” says Frédéric Cho.

COMPANIES SUCH AS LENOVO and Sinovel both originate from China’s Silicon Valley, Zhong-guancun, and many more global play-ers will probably emerge from there. The development of Zhongguancun symbolizes China’s ambition to move from “Made in China” to “Innovated in China”. Whether it will succeed remains to be seen, but no-one questions China’s future role in the global economy any more. Or as a fund manager at Alfred Berg put it in Veckans Affärer:

“The Chinese have taken over the Americans’ greatest asset – a belief in a better future.” 1

FOCUS:CHINA

Since 2009, China has been the world’s largest car market. In 2010 more than 14 million cars were produced here, many by local car manufacturers.

EricssonSweden, 20%

HuaweiChina, 16%

Alcatel-LucentFrance, 13%

CiscoUSA, 9%

NokiaSiemens

Germany,8%

Others34%

The world's five largest telecom

companies (network)

share of world market

Source: CNN

14 FUTURE BY SEMCON 3.201114 FUTURE BY SEMCON 3.2011

Requirements for quality assurance, documentation and traceability in the production and handling of

drugs in China were sharply tightened in March this year. Regulations are getting closer to U.S. and European requirements, representing a dramatic change for pro-ducers and their subcontractors.

“Semcon has extensive experience with the European regulatory framework and has collaborated with established international customers in the pharma-ceutical industry for many years,” says Eric Östberg, Life Science Manager at Semcon’s office in Shanghai, China. “Both we and our customers have therefore

increased focus on China and are now expanding in the Chinese market.”

China is on the way to becoming the world’s third largest Life Science market, with an incredible turnover of €55 billion and more than 3,000 different busi-nesses. Many of them are not expected to be able to meet the requirements of

the new regulatory framework. There-fore there is an increased need for expert assistance in establishing new plant and processes.

“The Chinese government has stated its ambition for China to be not only a centre of manufacturing, but also of development. They aim to create an envi-ronment conducive to development and increase opportunities for international companies to base elements of their development in China,” he says.

For Semcon and Eric Östberg, this mainly involves project-related services, often in validation - that is, clear docu-mentation of processes to ensure product traceability. Semcon has been active in the Chinese market since 2005.The focus on Life Science is part of our ambition to grow in existing markets.

“The pharmaceutical industry has been slow to expand into China. How-ever, the country is becoming middle-class, which brings with it a number of lifestyle-related diseases. A clearer emphasis on health care reform and increased transparency has made the domestic market more attractive.”

There is great potential in domestic suppliers engaged by Semcon’s inter-national clients and who now have to adapt to stricter requirements. With a natural entry into the market, high quality and extensive experience in Life Science, he should have a lot to do in the future.

“I work on knowledge transfer and the most important thing for us is to build on our core values in a locally-based organization with European governance. There is no difference in our quality whether we take on projects in Europe or here in China,” he says. 1

Erik Östberg transfers knowledge from Europe to ChinaMore stringent quality assurance requirements in the Chinese pharmaceutical industry are increasing the need for expertise in Life Science. With his experience in Europe, Erik Östberg will ensure that his customers can navigate the tangled regulatory frameworks in the production and handling of medicines.TEXT FLORENCE OPPENHEIM PHOTO NICKE JOHANSSON

THE SPECIALIST

Erik ÖstbergTitle: Life Science ManagerOffice: Semcon Shanghai, China



BEIJINGHohhot

Shijianzhuang Jinan

Qingdao

TianjinDalian

Changchun

Harbin

Shenyang

Lanzhou

Yumen

Chengdu

Chongqing

Changsha

Guiyang

Xiamen

Hong KongGuangzhou

Urumqi

Xi’an

Wuhan

Fuzhou

Nanchang

Hangzhou

Shanghai

Nanjing

Hefei

Zhengzhou

Taiyuan


Take hundreds of engineers from eleven countries and give them the task of developing the world’s fastest

and most efficient trains. Add a tight deadline and technical challenges, and you have the

Bombardier Zefiro 380 project in China.TEXT DAVID WILES PHOTOS DAGMAR SCHWELLE, PETER WESTRUP & BOMBARDIER

BEIJINGHohhot

Shijianzhuang Jinan

Qingdao

TianjinDalian

Changchun

Harbin

Shenyang

Lanzhou

Yumen

Chengdu

Chongqing

Changsha

Guiyang

Xiamen

Hong KongGuangzhou

Urumqi

Xi’an

Wuhan

Fuzhou

Nanchang

Hangzhou

Shanghai

Nanjing

Hefei

Zhengzhou

Taiyuan


Jens SplitterTitle: Project ManagerOffice: Bombardier, Germany


JJENS SPLITTER IS approximately one year from seeing his dream come true. That’s when he will fly to China, put on a Chinese train driver’s uniform and sit behind the controls of what he calls his “baby”, the VHS (very high speed) train Bombardier Zefiro 380.

“It’s every engineer’s dream to drive a train like this at high speed. As soon as the team starts testing them at maximum speed I will go there myself and overtake the competition,” says Splitter, project manager at the train manufacturer Bombardier.

Bombardier is approaching an important milestone in its three-year project to develop the world’s fastest mass-production trains through its Chinese consortium Bombardier Sifang (Qingdao) Transportation Ltd (BST).The project’s design and construction phase, which has been implemented with the help of Semcon, is nearly complete, and the testing phase has started.

The tests will continue for about a year, and in early 2013, the first of 40 Zefiro 380 trains with eight carriages will be delivered to the customer, the Chinese ministry of rail-ways. It is expected to take its first passengers during the first quarter of 2013.

“Testing is the most important milestone we have in front of us. We will not compromise, especially when it comes to safety. With a test team of over 40 people, we will start at a very low speed – about 60 kilometres an hour – and then accelerate to maximum speed,” says Splitter.

THE ZEFIRO 380 WILL NOT only reach an operating speed of 350 kilometres per hour, but it will do so with the highest seating capacity in the VHS sector, and with the lowest energy consumption per passenger. However, this performance is not achieved at the expense of reliability or safety.

The Zefiro 380 will be the latest addition to China’s high-speed rail network. With ap-

proximately 10,000 kilometres of track in use, China has the world’s longest high-speed rail network, including 3,515 km where top speeds of 300 kph can be achieved. By 2012 the coun-try is expected to have more track than the rest of the world put together, and China plans to invest around 300 billion dollars in building a high-speed network of 25,000 km by 2020.

Medium and long train journeys are becom-ing an increasingly popular mode of transport as more and more people discover that the train offers a fast, convenient and accessible means of transport, especially in densely populated areas like China, where roads and airports become more congested every year. The rail industry states that carbon emissions from long-distance train travel are almost two-thirds lower than those of cars.

Bombardier is involved in 95% of all high-speed trains in operation in Europe, and is currently working on three VHS projects, of which Zefiro in China will be the first to be brought into service.

“China will be a huge market for us in the

future. Getting this order was a very important step in our history,” says Splitter.

The Zefiro 380 project began in 2008 with a concept phase carried out in Europe, and after that the project moved to Qingdao in China. Jens Splitter, a highly experienced technical project manager, said the Zefiro project was the biggest challenge of his career – and not just because of the myriad of tech-nical obstacles to be overcome.

“From a personal standpoint, the biggest challenge was working in China with a large international team under Chinese conditions. Leading the team for this project was an amazing experience I will never forget, but I could write a book about all the challenges we encountered,” he says.

ONE OF THE CHALLENGES was to find top engineers who were willing to live in China for as long as the project lasted.

“Some of them went home early, some wanted to stay forever. I could never have guessed that I would be spending over 20%

ABOUT

Bombardier in ChinaBombardier was the first foreign train manu-facturer to enter into a joint venture in China in 1998, but the company has worked with China since 1954. Today, they have three joint ventures and seven wholly-owned companies. Bombardier Transportation has around 3,500 employees in China, with offices in Beijing, Shanghai, Guang-zhou and Hong Kong.

“ We are breaking new ground with the Zefiro 380. China will be a huge market for us in the future.”

Jens Splitter, project manager, Bombardier, Germany


of my time just on staff issues. In Europe, my primary focus was on contact with the cus-tomer, but in China the experience was quite different,” says Splitter.

ONE OF THE BIGGEST TECHNICAL CHALLENGES in the project itself was the train’s aeroacoustics.

“We are breaking new ground with the Zefiro,” says Splitter.

Bombardier is contractually obligated to meet certain maximum levels for passenger noise – 65 dB in the saloon and 62 dB in the VIP cabin. Thomas Petersson, the Semcon engineer who worked on the interior of the Zefiro and was later asked to join the senior engineer team, says:

“In the carriage – the skeleton of the train – we used many different materials such as tiles glued in a specific pattern to build up a local mass to reduce noise, such as around the train’s bogie.”

Another important aspect of the project was weight.

“In the first models, the train was too heavy, so we started a weight-loss programme, where Semcon helped us a lot. This is now finished and we believe we are on track,” says Splitter.

One system in which Thomas Petersson managed to save vital kilos was the heating, ventilation and air conditioning (HVAC)

system, mounted in the carriages’ roof. “We had a weight problem there and wanted to

replace the original aluminium panels, which were too large merely to transport air,” says Petersson.

A number of different materials, including textiles, were discussed, but a polymer foam between sheets of aluminium foil was chosen.

“It acts as both insulation and as a structural material. It is also easy to manufacture, to drill and to glue. As it runs along the entire length of the train, it saves a lot of weight,” says Petersson.

ANOTHER SEMCON SOLUTION not only saved weight but also solved a design error. During an inspection it was discovered that a glass door between the vestibule and saloon could

not be removed for maintenance as the assembly was not accessible. Petersson came up with the idea of drilling holes in the structural bracket that held the door in place, both allowing access to the screws and saving weight by reducing the amount of metal needed. His solution is now being implemented in all Zefiro doors.

Splitter says that, given the 30-year lifecycle of rail vehicles, designers and engineers have to think in terms of extremely long-term trends.

“These trends are governed by technical challenges, such as the constant need to op-timize energy consumption, which ultimately affects the design and leads to the introduc-tion of even lighter materials,” he says.

Thomas PeterssonTitle: Mechanical EngineerOffice: Semcon Lund, Sweden

ABOUT

Around China in record timeInvestment in high-speed trains in China has exploded in recent years. Here are some of the more high-profile high-speed routes in China:

BEIJINGSHANGHAI: On 30 June 2011, the world’s longest high-speed route opened between Beijing and Shanghai. 1,318 km can now be covered in 4 hours, 48 min-utes (at 300 kph), compared to the previous 9 hours and 49 minutes.

SHANGHAI TRANSRAPID: On 1 January 2004, the 30.5 km stretch between Shanghai Airport and the suburb of Pudong was opened. With a top speed of 431 kph, it is still the world’s fastest commercial train.

BEIJING–TIANJIN: In 2008 this 117 km long stretch was opened. Commuters can travel between the two largest cities in northern China. With an average speed of 234 kph, the journey takes just over 30 minutes.


THE FACT THAT THE ZEFIRO was developed for the Chinese market means that it will differ from its sister train, being developed for Italy.

“We have to adapt to requirements and accept that this train will operate in China. We can’t pretend that we are in Stuttgart and make it in a Porsche or Mercedes-style. We may have to accept the odd visible screw here, a bracket that doesn’t look so good there, and maybe a few gaps. We are, however, always careful about safety. Whatever happens, you don’t sacrifice it – it does after all have Bombardier’s name on the train,” says Petersson.

Petersson and Splitter agree that there are pros and cons with implementing such a large and complex project in China.

“The good thing with China is that they react very quickly. If the team leader decides that we should go to the right, everyone goes to the right. No questions are asked. That is completely different from the European way of working where people ask: ’Why do we have to go to the right – why can’t we go slightly right, or left instead?’” says Splitter.

Petersson says that Chinese engineers never miss a deadline, but the price of this is that the end result often looks different to what was discussed at the start.

“When I came to China in 2005, I felt that in certain aspects, such as quality, Europe was

way ahead, but now I see thatthey are on it’s way to catch up.”

THE TRAINS COMING FROM THE RAIL depots in Qingdao will meet the customer’s high stand-ards of reliability and availability, and go even further.

“They will have the lowest energy consump-tion per passenger, which is very important to us. We are very proud of this, even if it wasn’t a selling point for us in China,” says Splitter.

Bombardier’s ECO4 technology, which utilizes the company’s expertise in the avia-tion industry, such as advanced aerodynamic design, delivers total energy savings of up to 50%. Bombardier calls the Zefiro range “the fastest way to save the planet”. The HVAC

system uses 38% less energy than competing models. Its power management system uses 10% less, the EBI driver assistance system saves 14% of tensile energy, while the train’s aerodynamic design provides an energy saving of another 12%.

Bombardier is planning further train pro-jects in China, based on the aluminium body components with which they have been able to achieve such efficiency improvements on the Zefiro.

“Semcon is a very important partner for us and will doubtless be invited to participate when we get a new contract. We searched the globe for good people for this project and we know we can trust Semcon’s experienced en-gineers,” says Splitter. 1

“ Whatever happens, you don’t sacrifice safety – it does after all have Bombardier’s name on the train.”

Thomas Petersson, mechanical engineer, Semcon

ABOUT

Zefiro 3801. NOSE. The nose is a critical part of high-speed trains, both for brake force reduction and tunnel aerodynamics. An ideal nose de-sign helps to restore the pressure in the train’s tail and also affects its stability in side winds.

2. BOGIE. The bogie is the part that covers the wheels. It is used to reduce aeroacoustic emissions and can also help to reduce braking force.

3. INTERIOR. The Zefiro’s rigid open tube concept can hold between 450 and 1,300 seats.

With 1,300 seats the Zefiro has the highest VHS capacity in the world.

4. ENERGY EFFICIENCY.Bombardier’s ECO 4 technology delivers total energy savings of up to 50%.The HVAC system uses 38% less energy than com-

peting models and its power management system uses 10% less. Its EBI driver assistance system saves 14% of tensile energy, while the aerodynamic design gives an energy saving of 12%.

5. PANTOGRAPH. The panto-

graph is the part at the top where the trains are powered by overhead cables. Its pres-ence causes aeroacoustic noise and turbulence and therefore creates aerodynamic drag. By covering over most of the com-ponents within the pantograph, this can be avoided.

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THE SOLUTIONHOW SEMCON SOLVED THE CUSTOMER’S PROBLEM

ASSIGNMENT: Oticon Medical wanted to create a unique hearing aid with great demands on tolerances and quality. It had to be user-friendly and intuitive, and available in both right and left versions. In addition, many components had to fit into as a small device as possible. Oticon Medical also wanted the design to be discreet –but also adaptable for individual users.

SOLUTION: Semcon was hired for design work, determining the design and certain parts of the mechanical plastic construction. The Ponto Pro Power is a hearing aid attached to the skull with titanium screws. Semcon’s industrial design work has created a product that is both ergonomic and has an organic feel. Compared to competing products, the Ponto Pro Power is a design revolution in the industry.

RESULT: The Ponto Pro Power is the world’s first fully-digital and programmable hearing aid to be attached to the skull. It has also been awarded the international prize iF Design Award 2012.

TEXT MARCUS OLSSON PHOTOS OTICON MEDICAL

Hearing aid with unique style


THE DESIGN

The challenge with the Ponto Pro Power was to create a more human and positive design. Its organic shape, with stringent edges gives a clear visual profile and harmonizes with the surrounding ear and hair.

BONE-ANCHORED TITANIUM SCREW

This hearing aid is aimed at users who have dam-aged hearing but an intact inner ear. The titanium screw is anchored to the skull bone behind the ear with a simple operation. The hearing aid converts sound into vibrations, which are transferred into the inner ear via the titanium screw.

SMART PROGRAMMING BUTTONThe large programming button is intuitive and user-friendly while having a clear design of its own. With a few presses the user can switch between preset programmes designed for different sound environments.

ADAPTATION TO INDIVIDUAL’S HEAD

The user can put personal stickers on the outside of the hearing aid on top of the programming key to give it a more individual look – contrasting and colourful designs suitable for children, for example. For those who want the hearing-aid to be as invisible as possible, the Ponto Pro Power comes in four colours to suit different hair colours.

BATTERY COMPARTMENT

With its smart design, the battery compartment is both user-friendly and easy to grip. The in-built safety feature in the form of a locking screw forms a durable construction, preventing children from accessing the battery, for example. The in-built snap lock allows the battery to be held securely in place. At the same time, users can change the battery themselves when necessary.


IN JUST FOUR YEARS, Minesto’s underwater kite Deep Green has gone from a basic principle on paper to the moment of truth in the sea off the Northern Irish coast. The goal is to contribute to the world’s renewable energy production on a global level.

There is great untapped potential in tidal power. Unlike wind and waves, tides are predictable regardless of the weather – they return with the same strength day after day and year after year. For example, the UK Energy Agency calculates that tidal power could account for around 10% of the country’s total energy consumption.

“Previously the calculation was only 5%, but when they heard about our technology, they increased this to ten,” says Anders Jansson, CEO of Minesto.

The electricity of the future– underwater?An underwater kite that generates electricity by surfing the tidal currents. This is Minesto’s unique recipe for green energy. After an intensive development phase, contributed to by Semcon, the kite is ready for launch.TEXT INGELA ROOS PHOTO ANDERS DEROS ILLUSTRATIONS MINESTO


With Minesto’s technology, a whole new range of tidal currents will be able to produce energy. With Deep Green, it will be possible to extract electricity from slow tidal currents, unlike the more speed-intensive techniques used by other companies.

The competition’s solutions can be some-what simply described as variations on wind turbines placed on the seabed. Structures with large towers and foundations are costly and require tidal currents of a minimum speed of 2.5 metres per second for the energy to be cost-effective. Nowhere near all tidal currents reach this speed.

MINESTO’S CONCEPT IS instead based on a kite with a wingspan of eight to fourteen metres. It is anchored with a rope at the bottom of the sea and sails around in figures-of-eight and circles in the current. This makes water velocity into the turbine, located under the wing, around ten times greater than the

speed of the current. Thus it is possible to use much slower tidal currents – the Minesto kite is designed to be used in currents of speeds between 1 and 2.5 metres per second.

“We also avoid expensive parts such as towers and foundations, making the power cheaper and more environmentally-friendly,” says Anders Jansson.

The market potential and the excellent prospects for stable, renewable energy have resulted in global attention. Deep Green can be found on both Time Magazine’s list of the 2010 best inventions and among the “Top 15 Utility Solutions 2011” chosen by the Clean Technology and Sustainable Industries Organization (CTSI).

The idea for the tidal kite was originally hatched at Saab Aeronautics in Linköping, when a group of engineers were looking for wind energy solutions that would reduce the problems associated with wind turbines interfering with aviation radar and some-

times being mistaken for aircraft. The kite would be forced underwater as tidal currents, due to the higher density of water, contain significantly more energy than air currents.

HOWEVER, AN UNDERWATER KITE didn’t fit very well with Saab’s other activities, and the idea was spun off in 2007 into a separate company – Minesto, based in Göteborg.

“We had a product on paper and a basic principle,” says Anders Jansson, the only com-pany employee during its first 18 months.

Now there are ten employees in the team turning Deep Green into a finished product, including a flight engineer, as the kite is very much reminiscent of an aeroplane.

“We have skilled, experienced engineers in distinct areas, but developing a product like this is an extremely involved project. It involves the environment, service and maintenance, transmission, control systems, materials and hydrodynamics. It is impossible

Oskar AndreassonTitle: Specialist, embedded systemsOffice: EIS by Semcon, Göteborg, Sweden

Anders JanssonTitle: CEO Office: Minesto, Göteborg, Sweden

Patrik PetterssonTitle: Technical Project Manager for steering systemsOffice: Minesto, Göteborg, Sweden


“ Developing a product like this is an extremely involved project. It is impossible for us at this stage to employ all the skills we need.”

Anders Jansson, CEO, Minesto, Sweden

at this stage for us to employ all the skills we need,” says Jansson.

Therefore they have been working with several subcontractors and consultants. The development work has been intense. Com-puter simulations have been acquired with the testing of models in towing tanks – that is, huge pools normally used for ship devel-opment – at Chalmers University in Göte-borg and the Maritime Research Institute in the Nether lands. Meanwhile, they have examined the environ -mental impact and held discussions with authorities and other stakeholders involved in marine use. For example, you cannot trawl in an area where tidal power is being harnessed.

AT THE TIME OF WRITING, a major development milestone was a few weeks away. It was time to put a 1:10 scale model of Deep Green in the sea and expose it to real-life conditions in an uncontrolled environment. Objective: to test the installation process and to check whether the test results from towing tanks can translate into reality.

“But it is also about proving to the world that it will work. There are people who believe

that our technology is great on paper, but are still sceptical about whether it will work in practice,” says Jansson.

However, there were many things that had to be in place before the launch. An important piece of the puzzle was the steering system.

“Our steering sys-

tem was developed in collaboration with a consultancy firm in Jönköping, and they have given us a good product. But towards the end, there was some work that we thought was easier to do on site,” says Patrik Pettersson, technical project manager for steering sys-tems at Minesto.

THEREFORE, MINESTO TURNED to Semcon in Göteborg – to be exact, the Semcon subsidiary for embedded systems, EIS.

“We know they’re good. In addition, they’re based locally and can work here with us,” says Jansson.

The work needed was the link between the controller and its host computers, and to some extent also the software – the functions at the level between the hardware platform and the control programs.

“Software is our strength,” says Oskar Andreasson, a specialist in embedded systems at EIS by Semcon. Two days a week for three

Advantages of tidal powerPREDICTABLE AND RELIABLE. Tidal currents can be predicted with almost 100% accuracy.INFINITE. Gravity from the sun and moon means that tidal currents provide a constant flow of energy.GLOBAL. Tidal currents exist on every continent.ENERGYRICH. Water in motion is 832 times heavier than air in motion. 0.1% of marine energy could meet five times the global demand.


months, he has been on site at Minesto’s premises next to the quay at Göteborg’s Nya Varvet. Two-masted wooden ships are moored to the pier just outside, and both large ships and small boats pass continually as they enter or leave Göteborg harbour.

HERE, OSKAR ANDREASSON has worked on two main tasks. One was to improve the link be-tween the platform and the code generated by the calculation program MATLAB. The second was to write a sample code for the protocol to manage communication between the kite and the analysis software LabView.

“The protocol works much better now. Semcon managed to improve real-time prop-erties, while the processor load dropped,” says project manager Patrik Pettersson.

In addition, Oskar Andreasson and two consultants from EIS by Semcon have helped investigate and fix certain small problems in the steering system, often with support from the original system vendor. A short project board meeting every morning puts them on track for the tasks of the day.

“It has been an extremely effective time. We have been solving one prob-lem and quickly moving on to the next,” says Andreasson.

One example was a stabil-ity problem that Semcon, in cooperation with the system vendor, was able to localize. The system vendor found that the cause was a defect in the processor which could be by-passed using the software.

“Semcon’s presence was a help with the work in adapting and validating the solution,” says Patrik Pettersson.

Now Minesto have received proof that their goal has been achieved. A rehearsal in a towing tank showed that the steering system worked well and was stable. The kite is ready to go to sea, and, what’s more, on time.

“It’s an amazing achievement by the devel-opment team. The cooperation with our con-sultants has enabled us to stay on schedule and get as far as we had wanted before moving to the sea,” says Anders Jansson.

THE METRELONG KITE MODEL is currently lying on the office floor and wags its rudder obediently as the engineers run their simulations. We will never, however, see any electricity-producing underwater kites in Swedish waters - tidal currents are virtually non-existent here. This does not bother Minesto’s CEO - he has his sights set higher.

“The goal is to become a global player, the world leader in slow tidal currents,” says Anders Jansson.

He expects that Deep Green will be able to start providing electricity to the grid by 2013, and to have the first tidal power station developed and completed by 2016.

“There is a tremendous will within the development team. We know that our product can contribute to a better world,” says Anders Jansson. 1

“It’s about proving to the world that it will work. There are people who believe that our technology is great on paper, but are still sceptical about whether it will work in practice.”

Anders Jansson, CEO, Minesto, Sweden

About MinestoMinesto is a spin-off from the Saab Group. Development of tidal power plants began in 2003, and Minesto was formed in 2007 to make the technology com-mercial. Minesto has offices in Göteborg, Belfast and London.


The electricity from the tidal kites is trans-ported through the line to the bottom. The electricity is collected in transformers (‘hubs’) and sent through a large, single cable to land. Wind farms can be up to 70 km from the shore, before cable costs become too high.

The cable will consist either of Dyneema fibre, carbon fibre or steel.

The kite has a wingspan of 8 to 14 metres, depending on depth and water speed.

Under the wing is a nacelle with turbine, generator and control equipment. The high speeds of the turbine mean that the generator has no gears, which is a great advantage from a service viewpoint.

The cable is attached to the seabed with a spinner, which allows it to rotate. The spinner is in turn rooted either in a heavy concrete foundation on the bottom or with a screw or a “suction pile” in the mudflats.

HOW MINESTO’S KITE GENERATES ELECTRICITY

Minesto’s tidal power concept, Deep Green, generates 120-850 kilowatts, depending on tidal current velocity and the wingspan of the kite. Tidal currents need to be between 1 and 2.5 metres per second. The speed increases tenfold in the turbine due to the kite’s movement in the tide. When the tide turns, the kite rests between the sur-face and the sea bed. It is then in a good position to start up when the tide starts again.

A rudder steers the kite in patterns – figures-of-eights and circles – which are optimized in order to extract as much energy as possible.

The wing is composed of glass and carbon-fibre. There is certain intel-ligence inside the wing, but also a floating system. A pump keeps the kite at the right depth in the water.

The cable is 15% longer than the water depth, so that you can easily get the kite to the surface and take it to land for maintenance work.


ABB LUDVIKA:

BEFORESame factory – double the volume.

For over 100 years, ABB has manufactured on-load tap changers in Ludvika. In order to double the volume, ABB decided to rebuild

its production, from a station set-up to a production line, with the help of Semcon.

TEXT FLORENCE OPPENHEIM PHOTOS KRISTOFER SKOG & ABB


ABB LUDVIKA:

BEFOREA

BB’S DEPARTMENT Components in Ludvika, Sweden, has manufac-tured components for transform-ers since the early 1900s. Volumes

have steadily increased, and with production expected to double within a few years, they decided to try a completely new production set-up. The goal was to increase productiv-ity by changing from stations in a traditional assembly line to a takt production line with parallel flow.

“The challenge was in making the change on an existing site and without changing to shift work, which would have been the only option

with the previous set-up,” says Magnus Häggmar, Technical Production Manager at ABB Components in Ludvika.

To succeed with the conversion into a takt line, they needed help with methodological studies and proposals for production structure and balancing. The basic ideas and the fun-damental direction were there right from the start, but they saw the need for external as-sistance for these unique specifications. They contacted Semcon, who they commissioned to carry out an analysis of the existing situation in the two departments that ABB had chosen to start with.

ABB LUDVIKA:

AFTER


“Analysis of the first section – the installation of on-load tap changers – revealed a number of problem areas that had to be addressed, so that the problems didn’t continue in the new set-up,” says Peter Gartmark, group manager of production development at Semcon in Karlstad.

Along with Thorbjörn Svensson, a produc-tion developer and colleague, he documented the existing production structure, materials management, tools used and so on. Once the analysis was carried out on the first section, they started to work in parallel on a section manufacturing actuators, a large cabinet full of cabling.

They were also given the green light to proceed with a study of job roles and timing individual steps in the assembly.

“The requirement for the new production system was that there should be no pause be-tween stations, called takt flow,” says Svensson.

THEY SOON SAW that there was a need for a spe-cial group that pre-assembled various compo-nents and delivered them to the production line. They also decided to start “kitting”, a way of packing necessary materials in a trol-ley or a rack, to be delivered to the assembly point.

“In our studies, we worked closely with both assemblers and materials workers. We discussed their work with them and received ideas and suggestions for improvement, which we continuously passed on every week. As we were on site so much, we never felt that the production staff felt uncomfortable when we were there analysing,” says Svensson.

Timing has a lot to do with how much valu-able time an employee spends on a product. Adding value in this context is the time it really takes to make the product, i.e. pure as-sembly work. Together with ABB they also defined “non-value added time”, such as going to fetch tools, or various types of production disruption.

“The idea is of course to create a workplace where everything you need to construct is already in place,” says Peter Gartmark.

Using the “as-is” analysis and the timings as a base, both Semcon consultants worked with production staff and management at ABB to find an appropriate production line design. The work was carried out slightly dif-ferently within the two departments.

“With the on-load tap changers section, we developed a proposal, which we presented

on a flip chart on the shop floor. Everyone had the opportunity to discuss it in small groups and provide feedback,” says Thorbjörn Svensson.

With the other section, they discussed things in detail with two coordinators from production before they presented the proposal to the section. Since actuators include a lot of wiring, which requires craftsmanship to make it look good, there was a series of meetings with staff before the proposal was ready.

One of the most important details when creating a new production line with a variety of assembly operations, is to ensure that there is a natural beginning and a natural end on all stations.

“It’s all about individuals who previously

built a product themselves from scratch. When instead they do a few tasks at the same time, it should still feel natural where their tasks begin and end, not least for the sake of quality. So as not to sacrifice job quality, we also decided to introduce job rotation, based on the department’s own specific requirements,” says Peter Gartmark.

A CHALLENGE IN THIS PROJECT was that the products are available in different variants, with different levels of difficulty and com-plexity. With this approach a simpler version of a product will be on the same production line as a complex version.

“We chose to solve this by adding an extra station at the end of the line,” he says.

The new production line for on-load tap changers started before the 2011 holidays.

“There is still fine-tuning to do in the factory, but it works very well, and along the lines of the concept that we developed in the project,” says Magnus Häggmar.

On the actuators section, staff are currently working to obtain the proper tools and on the physical design of the site.

“Our intention is now to introduce the concept to two further section. Semcon has trained our staff in how to carry out the tim-ings, but they will need Semcon’s continued support with the work on the next section. The fourth and final section we think we can manage ourselves, but that project won’t start until we have our new product in place,” he says.

He is pleased with the partnership, which has produced a lot of new insights into the as-sembly process.

“Semcon’s consultants have been an important part of a large project. We have worked well together, with continuous checks, and the cooperation has gone completely ac-cording to plan. We have succeeded in combin-ing a new production set-up with the same staffing and tasks, with a significantly higher volume,” he states. 1

“We presented the proposal on a flip chart on the shop floor. Everyone had the opportunity to discuss it in small groups and provide feedback.”

Thorbjörn Svensson, production developer, Semcon, Sweden

In June 2011, the new takt production line in Ludvika started up. Takt production provides both a more even flow and increased capacity. This was demonstrated in form of cake production at the inauguration.

Magnus HäggmarTitle: Technical Production Manager Office: ABB Components, Ludvika , Sweden

Thorbjörn SvenssonTitle: Production DeveloperOffice: Semcon Karlstad, Sweden


Q&A CHRISTINE PETERSONNANOTECHNOLOGY EXPERT

Nanotechnology has already revolutionized the world, but we have barely begun to imagine its potential. “If it doesn’t look like science fiction you’re not trying hard enough,” says Christine Peterson, one of the world’s foremost experts in the field.

ature perfected long ago the science of manu-facturing matter at the molecular level. Now mankind is itself building materials and structures measured in the billionths of a meter. Nanotechnology has the potential to revolutionize everything from transport to healthcare to infor-

mation and communications technology. Christine Peterson is chair of the Foresight Institute, an American interest group focusing on nanotechnology, and is one of the world’s foremost experts in the field. According to her, there are in fact few areas that will not be affected by the manipulation of matter on an atomic and molecular scale.

What was it about the nanotechnology field that first grabbed you?

“One of my main interests has always been the environment, and as those of us who recall the 1970s will remember, this was a time of

great concern about the limits to growth and serious worries about the environment which of course continue today. We realized back then that the vision of advanced nanotechnology was an answer to the issue of chemical pollution. When we have reached a level of advanced nanotechnology we will be able to basically end chemical pollution, and to me as a young and idealistic chemistry student, this was an extremely exciting vision of the future.”

Why does the world need nanotechnology? “For centuries our species has been manu-

facturing products, and by doing so we have ended up polluting our environment. Although products are improving and we are slowly trying to make them in a cleaner way, the sheer growth in the world population makes it absolutely necessary that we learn how to get pollution down to the lowest possible levels if we want to have a decent planet to live on. It is necessary, it is urgent, and it is a very exciting time to be able to help bring nanotechnology along to the state we need to get to if we are to reach this goal.”

How exactly can nanotechnology help end chemical pollution?

“Right now when we make our products,

TEXT DAVID WILES

FOTO ERIC MILETTE

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ABOUT

Christine PetersonTitle: Co-founder and president of the Foresight InstituteLives: Bay Area, California, USAEducation: Bachelor’s in chemistry from Massachusetts Institute of TechnologyHobbies: oil painting, ballroom dancingCurrently: She’s chairman of the Person-alized Life Extension Conference, which will be holding a two-day event looking into anti-aging strategies and tactics for a long and healthy life. The event takes place at the South San Francisco Confer-ence Center on March 31 2012. For further details visit www.lifeextensionconference.com


we have a lot of leftover materials and those generally end up in landfills or in the water or the air. Not much of it is actually recycled. So what we need to do is to be able to build products such that the molecules that go into them are under control and go to a designed location in the product. Either that or they go back into the process for reuse. We don’t want to keep throwing these molecules out into the air and water.”

How would you sum up the progress made in the field of nanotechnology to date?

“I would say that we are at the end of the first stage. If you divide up the process into three stages, the first stage might be nanoma-terials, where we are making improved mate-rials. The second stage would be nano devices, where we are starting to make more advanced products, and then the third highly advanced stage would be nanomachinery. The last

decade or two has been devoted primarily to materials, and we have got some pretty exciting materials at this point. The materials space is huge and there is always more to do there, but we have made great progress and we are starting to go over to the next phase which will be nanodevices – nanoscale objects made to accomplish a relatively simple task, such as sensors and actuators.”

What nanotechnologybased products could we be using today without realizing it?

“If you define nanotechnologies broadly to include some of the nanoscale-structured ma-terials, then you see it in sporting equipment. You see carbon nanotubes showing up in golf clubs and bicycles. It turns out that sporting equipment is one of the earliest adopters of advanced materials because people are willing to pay a premium for better athletic perfor-mance.”

What current work within the field are you most excited by?

“Some of the most exciting advances are in sensors, and again there is an environmental angle here. If we want to have a really clean environment we have to be able to sense what is out there. The nanotechnology-based sensors are getting to be so sensitive that in some cases they will be able to pick up even a single molecule. That is as sensitive as you can get. Obviously now the goal is to get prices down.”

What nanotechnology applications can we see in areas such as the automotive industry and life science?

“People in the automotive industry are al-ready aware of nanotechnology and how it is beginning to affect them. They will want to in-corporate these wonderful new materials but it is a question of getting the cost down. Within ten years I think that will happen. The main

Q&A CHRISTINE PETERSONNANOTECHNOLOGY EXPERT


benefit in automotive is great increases in strength-to-weight ratio. That means lighter vehicles that are still safe, but with really sig-nificant improvements in fuel efficiency. What we are seeing in life science is some really im-pressive and exciting results in terms of cancer. With cancer you have goals of detection, imaging and treatment. And nanotechnology in the research stages is starting to show some really impressive results in all those areas. If you ask cancer experts to project forwards, I think they would be pretty optimistic in saying yes, we can see a future where cancer is a non-fatal disease, it is something that we can man-age, and part of that is due to nanotechnology.”

Is nanotechnology a revolution or is it just another step in mankind’s technological progression?

“The way I think about it is that for the first two stages, the materials and devices, it is more of an evolutionary process. It is only when you reach the third stage, the nanoma-chines, where we can expect a true revolution in how physical matter is handled by our spe-cies. That will be pretty amazing for those of us who see it.”

What kind of applications could nanomachinery have?

“The way to think about applications for the more advanced types of nanotechnology is to picture all of our products, all physical materials that we deal with, being able to be structured with high precision and basically no chemical pollution. So these products will be built by systems of nanoscale machinery just as nature builds things with nanoscale machinery. So in a way we are taking advantage of biomimicry – imitating nature – to build our products with the kind of precision and the kind of clean, zero-pollution results that nature attains. So you can expect products that are not only highly structured but incorporate computation; these are smart products.”

What is the single biggest challenge facing the nanotechnology field?

“My answer used to be the fundamental physical challenges of handling molecules;

they have a very complex set of rules that govern what they are willing to do for you. Nowadays I would add that there are economic challenges too. The difficult business envi-ronment decreases R&D budgets and this is having an impact. That is unfortunate but progress is continuing despite it.”

Nanotechnology is not uncontroversial; are there legitimate reasons for concerns?

“When you look at the early stages of nano-technology as we are in now, the same types of concerns come up as come up in the chemical industry. In other words, we do not currently have perfect control of our atoms and mole-cules in nanotechnology and we do need to be concerned both about potential waste prod-ucts and even the products themselves. With these new products, just as in the chemical industry, you have to ask are there any po-tential health issues, are there any potential

environmental issues? This is something that we need to do routinely across-the-board, whether it is the chemical industry or the na-notechnology industry.”

Looking forward a few decades, how widely will nanotechnology be used?

“I think in the longer term it will be the way we make our products. It will mean that they incorporate computation, they incorporate the ability to change their shape, they are per-haps multipurpose products. At some point it starts to sound like science fiction, and there is a reason for that. When you look ahead two or three decades, if what you see at that stage does not look like science fiction, then you’re not trying, you’re not thinking ambitiously enough. The future does often end up looking like science fiction. Certainly the Internet today, if you were to go back 30 years, would seem very much like science fiction.”

At what stage are researchers with nanomachinery and when can we expect to see these technologies commercialized?

“Because we’re currently only at the end of stage one and nanomachinery is stage three, we are only at the very early stages. You see today reports out of academic labs where they are doing things like making very tiny devices that are starting to work together, and that is how we define machinery – where you have some kind of complex interaction between devices. Some of these are basically take-offs of motors found in nature. It is very hard to make predictions, but you hear more optimis-

tic estimates of 10 to 15 years, while other people say we are talking 30

years, and then of course there are the skeptics who will give very high numbers. But let’s say that in 25 years maybe we will see some really dramatic stuff happening.”

Are there any technologies that will not be affected by nanotechnology in some way?

“It’s really hard to think of an area that won’t be affected, because it is expected that in the longer term nanotechnology will affect every physical object that we make. Even bulk materials, such as concrete; even if we don’t want ‘smart’ concrete, the way concrete is produced will involve nano-technology, if only to get the environmental benefits of the control that we would like to have. So I personally don’t see a technology area that will not be impacted by nano-technology.” 1

“ In the longer term nanotechnology will be the only way to make products.”

Christine Peterson, nanotechnology expert

1 CHEMOTHERAPY“In the longer term we expect to be able to do smart chemo-therapy with nanotechnology where the chemotherapy

agents are targeted specifically to the type of cancer and perhaps to the individual’s cancer cells. So the chemotherapy agent would go into the body and then only kill that specific person’s cancer cells.”

2 ENERGY“In the longer term nanotechnology will bring us closer to the theoretical limits of energy storability according to the

laws of physics. This could be in the form of improved batteries or nanoscale flywheels, and I think the latter are a very interesting concept.”

3 HOUSEHOLD PRODUCTS“You can imagine a household-level 3D fabricator. You would download some kind of design – a pair of gym shoes

for example – and then use such a device to build the product at home.”

future areas for nano-technology according to Christine Peterson.3


Office furniture manufacturer EFG gave Semcon’s engineers in India the task of optimizing a design for new adjustable furniture. It was a boost for EFG, saving them both time and money.TEXT GITTAN CEDERVALL PHOTOS NICKE JOHANSSON, KARSTEN THORMAELEN & EFG

ONE STEP AHEADVIA INDIA


Product development with the help of engineers in India – can it really work? Many still ask this question. The leading Scandinavian office furniture manu-factur er EFG (European Furniture Group), decided to find out the answer,

which was entirely positive.“Our cooperation with Semcon India has

been excellent and we are very pleased with the results,” said EFG Product Development Manager Marianne Guriby Dahl.

When the idea to hire Semcon India was first discussed within the company, Marianne Guriby Dahl decided first to give them certain simpler tasks to establish the collaboration and check it worked. One of the tasks for Semcon’s Indian office was to create symbols for the company’s office furniture layout program.

“The job was completed very quickly and efficiently, and it was clear to us that it was worth collaborating on a larger development project,” she says.

The development project that Marianne Guriby Dahl and EFG went ahead with was for a new piece of furniture with innovative fea-tures in a new elegant design. EFG takes pride in making office furniture with an exclusive design, furniture that looks great but also pro-vides additional features beyond the usual.

“We want products that differentiate us from other office furniture manufacturers. Among other things, we often use different materials, such as aluminium, and more ad-vanced technical solutions,” she explains.

EFG, which is one of Europe’s largest manufacturers of office furniture, is one of the market leaders in Scandinavia and is currently

focusing on strengthening its position in the European market. The company has subsidiaries in the UK and France in addition to its subsidi-aries in the four Nordic countries.

AN OFFICE CHAIR with a ribbed backrest made in 1885 by K G Andersson in Tranås, where the company still bases its manufacturing, laid the foundations for the furniture manufacturer. Steady growth, followed by a series of mergers and acquisitions, have resulted in a company that today manufactures and supplies more than 2000 complete workstations a week. The product range includes every type of furniture an office may need and more – everything from reception desks to waste-paper baskets.

“Because we work in a wide product sector, we need partners with additional expertise in areas in which we are not specialists. It isn’t easy to be skilled in everything,” says Guriby Dahl.

And this is where Semcon comes in. EFG needed help in optimizing the features of this new innovative office furniture and prepare it for mass production. It involved digital simula-tion, strength and stability testing, calculation of material use, production solutions, and finally, finished manufacturing drawings.

To be competitive in a tough market, it is important for EFG to include as many features as possible in their new office furniture. At the same time they want to have as few components as possible so that the furniture is easy to assemble. However, integrating multiple func-tions into a single component is not always easy.

Office furniture and workstations in partic-ular, also place a great emphasis on ergonomic design and the furniture has to adhere to a number of different standards. Environmental and safety requirements must be met, as well as the requirements for ease of use.

“When we receive a design, it’s our job to maintain it, but at the same time develop a good technical solution that meets all the requirements and specifications,” explains David Orth, office and project manager at Semcon’s office in Bangalore in southern India.

IN ORDER TO SUPPORT the EFG in the best possible way a team of experienced engineers had the task of developing EFG’s product. By optimizing the design using CAE and CAD technology and then choosing a combination of different production techniques, such as casting and moulding, the engineers were able to present an efficient, cost effective and environmentally-friendly solution.

“We started by identifying the mechanisms and features that EFG requested. It took us about two weeks to solve the technical problem of integrating them into the same component. Then we spent another couple of months producing final drawings for produc-tion,” says designer Madanna Ramesh, who was responsible for most of the work.

For Madanna Ramesh, who during his four years at Semcon India mainly has worked on the design of components for the automotive industry, the project was a new challenge.

“The interior of the vehicle is mainly made of plastic, but the frame of EFG’s furniture is made of aluminium. This creates other de-mands, and the main challenge was to reduce weight and material usage and ensure that production costs were not excessive. EFG’s designer also made big demands on how the final result looked and rejected several of our solutions before we found one that was ap-proved,” he says.

“Reconciling the designer’s vision with

“ Because we work in a wide product sector, we need partners with additional expertise in areas in which we are not specialists.”

Marianne Guriby Dahl, Product Development Manager, EFG, Norway


Marianne Guriby DahlTitle: Product Development ManagerOffice: EFG, Sweden and Norway

David OrthTitle: Office Manager and Project Manager

Office: Semcon Bangalore, India

The Scandinavian office furniture manufacturer EFG takes pride in making office fur-niture with an exclusive design, furniture that looks great but also provides additional features beyond the usual.


Madanna RameshTitle: DesignerOffice: Semcon Bangalore, India


practical technical solutions is a common chal-lenge in product development of this kind,” says Guriby Dahl. “You always need a certain amount of give and take between engineer and designer. What the designer wants to achieve is often too expensive and engineers may not always have aesthetics as a guiding principle.”

“But in this case the dialogue between our subcontractors worked very well. Not all contact has gone through me and David Orth – rather our external designers and engineers at Semcon India have been in direct contact with each other. Furthermore, we haven’t experienced any language problems,” she explains.

THE FACT THAT MADANNA RAMESH and other Semcon engineers in India were able to carry out designand simulation work in parallel and in collaboration with the designer saved a lot of time.

“And what we really appreciated was that the Indians were very quick in finding solutions to technical problems. In addition, they gave us several different options that we and our de-signers could choose from,” she says.

The alternative to hiring Semcon engineers in India would have been EFG doing part of the work themselves and also hiring another outside consultant.

“But it wouldn’t have been as effective. It would have taken longer and cost more,” says Guriby Dahl, decisively.

She estimates that what the Indian engineers achieved in three months would instead have taken at least six months. And in reply to a question regarding whether the cost would also have doubled, she only laughed and exclaimed:

“Oh, yes! Time to market is of course very important. When we have a new design, it’s important to get it on the market as quickly as possible,” she says.

Time is money in a market where you have to stay ahead of the competition. Thanks to the effective Semcon engineers in India, EFG expects to be able to sell its new product dur-ing the first quarter of 2012. The design and technical approach is a new design concept which the company plans to take advantage of with several different types of product.

“It’s been a very successful partnership,” Guriby Dahl summarizes, and she has already opened negotiations with David Orth on the next development project.

THE COLLABORATION BETWEEN EFG and Semcon India is a good example of how Semcon India can support leading international companies like EFG by making product development more efficient. An efficiency improvement, which in turn can be utilized for the de-sign and development of more products in less time.

“With a partner like Semcon India, we can concentrate on what we do best, and produce more products faster,” says Thomas Andrén, EFG’s CFO.

He argues that many com-panies have unfounded anxi-eties about working remotely. India may be a long way geographically from Tranås and Sweden, but in today’s globalized world, it makes no

difference, he said. The important thing is to keep costs low while maintaining quality.

“The quality of the work is at least as high as with Swedish engineers. The big difference is that it is faster to get the job done in India. In our case, I was a kind of guarantor that the collaboration would work, but that shouldn’t be necessary,” says Andrén, who previously worked at Semcon and who helped to launch the company’s Indian operations.

INDIAN OPERATIONS STARTED at the turn of 2006-2007 and since 2009 have mainly been based in the Bangalore office. There are now around 110 engineers working there, mostly specializing in mechanical and electrical en-gineering. It is estimated that the engineering workforce will have grown to 150 by the start of 2012.

“It’s important to emphasize that here in India we work in exactly the same manner and to the same quality standards as Sem-

con in Sweden, or Germany, for example. The quality of work is exactly the same, but our costs are lower,” says Orth.

“Unfortunately, many are still reluctant to give us work. Certainly potential clients know that there are many skilled engi-neers in India, but they think it will be difficult to communicate and worry that cooperation will not work as well as with engi-neers at home. The collaboration with EFG is a good example that this is not the case,” he adds. 1

“ The main challenge was to reduce weight and material usage and ensure that production costs were not excessive.”

Madanna Ramesh, designer, Semcon, India

Started with a wooden chairThe history of EFG began in 1885 when K G Anders-son in Tranås produced his first wooden chair. The company currently has over 600 employees and is one of the largest suppliers of office furniture in Europe. Today, EFG manufactures and supplies more than 2000 complete worksta-tions per week.

Starting with the automotive industry, Semcon has moved into the research world. The focus is on four cross-functional areas - Safe, Lean, Light and Smart. Greater expertise is just one of the objectives.TEXT INGELA ROOS, KATARINA MISIC & LINDA KARLSSON ELDH ILLUSTRATION SEMCON

FOR SOME YEARS Semcon has been engaged in various research projects within business area Automotive R&D.

“We are involved in the latest technological developments, and at an early stage,” says Lars A Carlsson, technical director at Semcon’s business area Automotive R&D.

The focus over the past one-and-a-half years has become more structured and a ’Technology Roadmap’ has emerged, with four focus areas – Safe, Light, Lean and Smart.

“These are areas where we already have ex-tensive skills, but we also think will be needed in the future. Moreover, they involve a cross section of Semcon – they include everything from electronics and computation methodology to conceptual design. We see it as an invest-ment,” says Carlsson.

One aim is obviously to increase Semcon’s specialist skills in the four focus areas. How-ever, choosing and investing in strategic areas is also a way to make it clear that Semcon is a forward-looking company that aspires to be at the forefront of technological development.

“Semcon is a large global company and it is

SAFE LEAN

LIGHT SMART

ON THE ROADTO TOMORROW


important to demonstrate to our customers and employees that we have our own ideas about where the future is heading,” Carlsson says.

Better communication possibilities are an-other positive effect of the research projects. Semcon is often involved in advanced, high-tech projects with its customers. However,

they are almost always confidential. By also participating in open research, Semcon is opening the door to freer dialogue.

“It allows us to discuss the future evolution of technology in a different way, both internally and with our customers,” Carlsson says.

Research may involve, for example, electric

power trains, connectivity or lightweight cars of the future, and particularly occurs in Vinnova’s Strategic Vehicle Research and Innovation (SVRI) programmes.

On some projects, Semcon have up to 15 engineers, working more or less full-time. On other projects, they are on a steering group,

SAFE LEAN

LIGHT SMART

“Our ultimate goal is to avoid all accidents”SAFETY IS A TOP priority for car manufacturers. Developments range from improving passive safety – that is, systems that are activated when an accident happens - to increasing active safety, where technol-ogy helps to avoid accidents.

“There are still gaps within active safety. Some

elements are already in place in today’s cars, such as traction control, ABS and ESC but the ultimate goal is vehicles that can avoid accidents completely,” says Nordine Chekaoui, respon-sible for Semcon’s Safe attribute.

Semcon is currently involved in research projects

focusing on the balance between passive and active safety, but is also investing in the analysis of new mate-rials such as composites.

Another growing area is communication between vehicles and the road-side infrastructure. Transmitters in the land scape can serve as reference points for the

car, which can also interpret traffic signs or the colour of traffic lights, for example. At red the car could stop auto-matically or warn the driver to brake in time.

“It’s crash prevention with a smart dimension. The driver is helped to make the right decision,” Cheka-oui says.


while the actual research is performed by graduate students at technical colleges, for example.

Contact with faculties and colleges is another positive aspect of the research – it increases recruitment opportunities.

“There is a shortage of engineers and it’s harder to recruit,” Carlsson says. He also believes that these future-oriented projects make Semcon an attractive employer, more able to attract skilled staff.

The technical roadmap certainly uses the automotive industry as a starting point, but Carlsson sees that the results can be applied to

many other industries. “Lightweight solutions in our Light focus

area, for example, are often completely uni-versal. For example, people want to reduce the weight of wind turbines and blades, and composite materials are of great interest to the train industry,” says Carlsson.

And as for smart vehicles, the technology is also interesting when used with, for example, smart homes and the remote monitoring of wind power stations.

In addition to research and innovation, the roadmap also includes another key ingredi-ent – patents and innovations. Semcon has an

internal patent process and is currently pur-suing a number of patents at various stages.

“Patents cost money, but it’s important to show that we are an innovative company. We can also do business with patents or because of them. It is important to capture the ideas within the company - we have many clever and talented people around the world within Semcon,” Carlsson says. 1

For more information go to: www.semcon.com/technology

THE ERA OF FOSSIL FUELS is coming to an end. Semcon is researching an eco-friendly mo-bility concept in Lean Mobility, which can be realized for a low cost in the near future. Semcon is currently working with pure electric vehicles and plug-in hybrids and researching electric propulsion, power electronics and design approaches for more ef-ficient vehicles. The goal is that tomorrow’s cities and traffic are no longer characterized by COc emis-sions, smog or noise.

“It took us 125 years to design a car with a combustion engine. Over the next 20 years we will redefine the electric car. For

this to be possible we need a new infrastructure. Politi-cians, industry and vehicle manufacturers must work together,” says Thorsten Falldorf, technology leader for Electromobility in

Germany at Semcon Wolfsburg.

Electromobility is the technology closest to hand, and the one that the Semcon Lean Team is concentrating

on. The biggest technical challenge is to increase the range of

electric cars with the help of improved battery technology, reduced vehicle weight and a reduced need for energy.

“We will redefine the electric car”

SAFE LEAN

LIGHT SMART

SMART VEHICLES, and smart products in general, are a very “hot” subject. Today’s car is already online, and developments are placing increasing demands on the car’s communication links. To remain at the forefront Semcon is running a number of research projects within Vinnova’s Automotive Research programme. One of them is to predict how vehicles’ elec-trical architecture will look by 2020.

“There are a huge amount of nodes

which communicate with each other and also with the outside world,” says Johan Kristensson, who works on embedded sys-tems. Johan is also leading the Smart team in Sweden.

“Further consequences of vehicles becoming smarter is that HMI – that is, how interfaces and interaction work – is develop-

ing at a furious pace,” Anders Sundin, a Semcon HMI expert, says.

HMI has become “the window of connectivity.”

This is particularly noticeable in the German car market, but Sweden also has ambitions to take a leading role, including the

HMI research project Efesos (www.efesos.net ).

“Cars will be opened up to apps”

SAFE LEAN

LIGHT SMART


EVER SINCE the birth of the automobile industry, weight has been a major issue. Light vehicles simply use less fuel. And batteries have a longer range in a lightweight electric vehicle than in a heavy one.

In spite of this knowledge, cars have unfortunately tended to get heavier. The focus has been on safety, comfort and driving performance. It is only over the last 10-15 years, as environmental awareness has become more wide-spread, that properties have become more balanced in favour of energy-efficient designs.

The improved efficiency of drivetrains is not only used to increase engine power as before, but also to lower fuel consumption and emissions. The car’s structure has not only been made stronger but also lighter by using high-strength steel in the structural components and aluminium or poly-mers, for example, in the door, bonnet and boot.

THE LATEST TREND is to use com-posite materials such as carbon-fibre reinforced plastic in both structural and exterior details.

“By designing structures so that the new material’s properties are fully ex-ploited, as well as integrating multiple functions, its properties are optimized further. Simply replacing the materials in existing structures is not the whole solution,” says Claus Katt, department manager Design engineering at Semcon in Germany.

The lightweight materials already exist. They are used in exclusive sports cars, but are still too expensive to put

into mass-produced cars. Bringing lightweight technologies

closer to mass-production cars was the aim of the EU-funded research project, Superlight Car (SLC), in which Semcon participated. Semcon is also one of the key players in the Swedish research project “Sånätt”, which has 40% weight reduction as a goal.

FOR EXAMPLE, Semcon engineers were involved in the Volkswagen 1-litre project, XL1, which aimed to build a car that used less than one litre per 100 kilometres. It consisted almost entirely of carbon-fibre reinforced plastic used in Formula One cars. The XL1 weighs only 795 kg and is virtually ready to be launched.

Carbon-fibre reinforced plastic (CFRP), is a material attracting con-siderable interest in the automotive industry right now.

“The advantages of the material, apart from its low weight, are high strength, high resistance to corrosion

and the possibilities of increasing functionality,” says Katt.

CFRP is a so-called anisotrope, which has different physical properties in different directions.

“Depending on the choice of fibre direction and the production method, you can achieve almost any feature you want,” Katt says, continuing:

“There is no doubt that lightweight materials like aluminium, magnesium manganese (MnE21) and carbon-fibre-reinforced plastics will gradually begin to be used in mass-production cars. Just look at the new BMW i3. The challenge now is to find ways to make lightweight solutions cheaper.”

MnE21, in particular, is a material that many have high hopes for.

“The material is a good compromise in terms of weight, durability and envi-ronmental-friendliness. MnE21 is 100% recyclable and may well be the future lightweight alternative to reinforced plastics,” Katt says.

With MnE21, production and assem-

bly processes can be simplified, thereby reducing carbon emissions during production, reducing costs at the same time. A bonnet structure made out of MnE21, for example, could compete in terms of cost with an aluminium structure. Also, the weight reductions are considerable. The use of MnE21 in some car components could reduce weight by over 36 kg in a typical car.

MANY CAR MANUFACTURERS have a goal of reducing overall vehicle weight by 30-40%.

“The challenge in the future is to find the optimal balance of different materials, use the right materials in the right place and also include environmentally-friendly production, recycling and costs in the calculation,” Katt says.

Semcon also participated in concept development in the research project SEVS (Safe, efficient vehicle solutions) at Chalmers University in Göteborg, studying what transport systems might look like by 2030. Here, the light-weight concept is an important part of the vision of a sustainable society.

The need for lightweight solutions unites many different industries. The automotive industry has come a long way, but Semcon has also worked on lightweight solutions in the train, avia-tion, and marine industries.

“Our experience in lightweight solutions, in combination with the knowledge we obtain through our commitment to research, allows us to assist customers with lightweight projects, regardless of the industry,” Katt says.

“The focus is on making lightweight cheaper”

SAFE LEAN

LIGHT SMART


TEXT JOJJE OLSSON, JOSEFINE JACOBSSON & SARA BERNSTRUP NILSSON

PHOTOS STEFEN CHOW, NICKE JOHANSSON & PETER WESTRUP

SEMCON BRAINS


The China builders

XIN SITU AND ZHAO JIBING joined Semcon six years ago, the day that Semcon started in China. Semcon in China has mainly concentrated on product information, especially in the telecommunications industry, but now also in the auto industry – areas of tremendous growth in China.

Situ and Jibing have worked their way up over the years from technical writers to become team leaders and project managers. They have very much been part of Semcon’s journey from a handful of people to around 40 employ-

ees today in five cities – Beijing, Shanghai, Chengdu, Guangzhou and Nanjing.

Their role is to consider various aspects of new projects and from there put together a suitable working group for each task. The toughest challenge for Semcon is adjusting to the speed of China’s technological development.

“If we are successful, the op-portunities for both the company and its employees are almost unlimited,” says Zhao.

Semcon’s Beijing office wants to learn from the Swedish business model.

“Employees should be able to talk to, and even criticize the boss – there should be a democratic atmosphere in the office,” says Situ.

It is not only the atmosphere but also what they have to offer that makes Semcon stand out in China. While the economy is growing fast, there are still many areas that are not developing at the same speed.

“Product information is still an undeveloped area in China. We stand out from our competitors by adding value to the finished product,” states Jibing.

XIN SITU AND ZHAO JIBING, TEAM LEADERS AND PROJECT MANAGERS, SEMCON BEIJING, CHINA

BEHIND THE SCENES AT SEMCON BRAINSZhao Jibing and Xin Situ have been part of Semcon’s Chinese journey. You can hear them talk about their experiences, what it’s like to work for Semcon and how they see the future at www.semcon.com.

A WORLD FREE OF TOXIC gases is still a long way away. However, emissions regulations are constantly tightening, in ever more areas. Chemical engineer Nina Lönn develops catalytic converters for industrial machines. She is currently working on a project at Volvo Penta to provide a catalyser to conform to the 2014 legal requirements for industrial machinery, which means about 95% of exhaust gases purified.

“The challenge is in finding a type of solution that works in a variety of machinery, from forklifts and combine harvesters to water pumps. We are still a long way behind the car industry, but on the other hand they have had 30 years’ head start,” she says.

They are now testing the new engine and the catalytic converter. In order to achieve optimal results you have to look at the engine, after-treatment and the

software as an integrated system, according to Lönn.

“My job is to ensure that the chemical processes in the catalytic converter clean as many exhaust gases as possible. Then, the others in the team look at engine performance and control software to enable us reach the ultimate goal.

Lönn and her team have worked on this project for a year and have two years left.

The environmental link and the large variety in the job are two attractive factors.

“I’ve been banging my head against the wall many times and there’ll be a lot more of that left before we reach the target, but that’s development work. It’s great fun to be involved with these major technological advances. I’m the type who wants to save the world, so the development of catalytic converters is perfect for me.

NINA LÖNN, EXHAUST TREATMENT SPECIALIST, SEMCON GÖTEBORG, SWEDEN

The catalyser expert


SEMCON BRAINS


THE TELECOMS CUSTOMER was desperate. A plastic component was not good enough. 30 million units risked being discarded.

“We did what we usually do: a process, tooling and materials analysis, which identified some er-rors. During the summer, we solved the problem with a series of very small changes. It was one of my first assignments when I came to

Semcon in 2007.” There have been many more

since then. The mechanical engineer and doctor of polymers Mikael Hamskog is unusually doubly-skilled.

“It’s an advantage. I serve Semcon customers who have distinct, thorny problems with polymer materials.”

Quite often he comes in at a later stage. But just as often, he is there when materials are chosen.

A number of factors are considered: temperature, durability, chemical resistance and injection moulding, to name a few.

Today he has many assignments in the life science industry.

“I’m now helping a client who manufactures life support equip-ment. They want to reduce the cost of a component, and I have to find a substitute material - in this case, a

plastic material that will withstand harsh conditions.”

Hamskog helps develop both clients’ and colleagues’ skills and makes sure he is up-to-date.

“I read lots of articles and par-ticipate in forums and conferences to see where trends are heading. My goal is to be a visionary for my customers and to increase the level of innovation.”

MIKAEL HAMSKOG, MECHANICAL ENGINEER AND DOCTOR OF POLYMERS, SEMCON LUND, SWEDEN

The plastics expert


Attention to detail

T he expression Colour & Trim comes from the automobile in-dustry - an expertise in design which is about how spaces are designed with colour, shape and structure and how the combina-

tion of different materials works together.“We work in detail with care on the design

of materials and surfaces and the combina-

tions between them, creating an ultimate feel-ing of quality,” says Åsa Rudberg.

Anna Ekholm Hallberg mentions a wheel-chair project where the stitching was a crucial part of the design.

“We focused on the seat and a simple stitching pattern influenced the form of the chair,” she explains.

Many aspects are considered during their

work. With the wheelchair project, it was about understanding people. The feeling and structure of surfaces, the composition of dif-ferent materials such as fabrics and plastics, and colour selection can be crucial to how the product is perceived by the consumer.

As the automotive industry is a major em-ployer, you can’t avoid mentioning cars in this context.

“When you enter a more expensive car, you can’t always pinpoint what it is that makes it more exclusive, but you get the feeling imme-diately,” says Rudberg.

This is one of the challenges of the job, to explain and defend how essential details are for the whole experience. It is important to know your target group to make the right choices. An exclusive car interior is deco-rated in a sober style, with fine, often woven textiles, leather seats and chrome details and more exclusive material on the surfaces, such as pure metals and real wood.

Decorating industrial vehicles is different –

WHAT INSPIRES ANNA, ÅSA AND HANNA:

The surface of a kitchen towel, the stitching on a wheelchair seat and plastic details in a car. These are things that Åsa Rudberg, Hanna Sterner Lagergren and Anna Ekholm Hallberg work on designing. All three work on Colour & Trim at Semcon.TEXT CAMILLA HENTSCHEL PHOTO LARS ARDARVE

CONCEPT CARS LIKE BMW’S GINA

ARCHITECTS LIKE ZAHA HADID

FURNITURE AND INTERIORS BY MOROSO

BOATS LIKE WILLY’S YACHTS

BOTANICAL GARDENS


GLASS LIKE ORREFORS

WEBSITES LIKE WINDOWFARMS

3 trends in car interiorsTECHNOLOGY in cars is becoming more advanced but also user-friendlier and more easily understandable due to HMI (human machine interface). You shouldn’t need complicated user manuals to understand it.

SUSTAINABILITY. New and stricter re-quirements on the recycling of a car’s various parts is creating new opportunities and challenges.

FOCUS ON MATERIALS AND EXPRESSIVE SURFACES. An example already used is a two-tone foil covering on the dashboard. It is easy to gain market share here as it has previously quite a traditional area.

ABOUT

Anna Ekholm HallbergBackground: Product designer educated at HDK, GöteborgOffice: Semcon Göteborg, Sweden.Hanna Sterner LagergrenBackground: Textile designer educated at the School of Textiles in Borås Office: Semcon Göteborg, SwedenÅsa RudbergBackground: Industrial designer educated at HDK, GöteborgOffice: Semcon Göteborg, Sweden

a truck driver has different preferences.“A professional driver spends more time

in his truck than in his own home and wants softer materials and appreciates more colour,” says Hanna Sterner Lager-gren.

Knowing your customers is about de-tails, like for example that truck drivers often drive in socks.

“Then the pattern on the accelerator cannot be too rough. It becomes too hard,” says Rudberg. Colour & Trim is the part of the design chain that follows the product furthest, as it is the easiest area to renew and improve. One example is so-called facelifts carried out on cars. Renewed fabrics, decor and colours can extend a model’s life.

It is important for the three to have their feelers out constantly to be on top of trends.

“In the automotive industry you work on projects that are up to five years long. Since

most materials are determined early on you have to keep an eye on emerging trends.

On a high-level, the challenges in their work are to put together ideas, taking a count of finances, technology, time limits and the requirements of customers and management. Today there is a big advan-tage with new 3D technology, which makes it easier to explain ideas during the ongo-ing work.

THEY BELIEVE the future will pave the way for increased demand and provide open-ings in more industries, because their design skills can fit into and strengthen various products and brands.

“Life science and telecommunications are interesting areas. This may involve designing a syringe for children so that it is less scary. Colours and materials are important factors when you want to com-municate with the user and strengthen the identity and brand,” says Hallberg. 1

ARCHITECTURE LIKE IN COPENHAGEN

FURNITURE FAIRS LIKE IN MILAN

SEMCON UPDATEWHAT’S HAPPENING IN SEMCON’S WORLD

THIS YEAR, SEMCON WAS AGAIN given the job of supplying a comprehensive range of ideas to Electrolux’s annual design competition, Electrolux Design Lab. This time industrial design students around the world were invited to compete on the theme of intelligent mobility for home appliances.Semcon has worked with Electrolux and the design competition for several years. Semcon’s role consists of developing physical models for competition

entries, creating animations, pictures and movies about the competition along with marketing and exhibition material. For Semcon the project is as much about communication as a design assignment.

“It’s great fun to work on the competition. We can take a holistic approach, as we’re involved with various factors. Now that we’ve been involved with the competition a few times we had the confidence to propose content changes and plan communica-

tions in a way that was not in the original spec. The cooperation between us has really strengthened over time,” says Pär Heyden, chief designer at Semcon.

Over 1300 contributions from more than 50 countries were submitted for the competition. Adrian Mankoveck from Slovakia won with his portable stain remover. The winner gets a six-month paid internship at Electrolux and EUR 5,000 in prize money. 1

Stain remover new design winner


Semcon receives award from MANAt MAN Latin America’s annual awards, Semcon won the prize in the “Business Ex-cellence – Services Purchase” category “We are proud of our very good relationship with MAN Latin America and are very happy to receive this award. I also want to thank and congratulate all Semcon employees here in Brazil. It is thanks to you we have received this award,” says Renato Perrotta, country manager for Semcon in Brazil.

Qoros Auto gets help from SemconChinese car manufacturer Qoros Auto has chosen Semcon as its long-term partner for development and production of all aftermarket information for its future vehicle models. The contract will run for several years and will over time provide assignments for around fifty Semcon employees.

Semcon upgrading hydroelec-tric power stations for FortumThe energy company Fortum has chosen Semcon to upgrade its electricity and control equipment at its hydroelectric power stations in Landafors (Ljusnan) and Viksjöfors (Voxnan) in the county of Gävleborg.The assignments will include new designs of the complex control systems at the power stations. Besides the new designs Semcon will supply new equipment such as generator switchgear, low-voltage switchgear, battery systems and remote control equipment.

From left: Walmir Prieto, MAN LA, Roberto Cortes, MAN LA, Renato Perrotta, Semcon Brasilien and Luiz Alvarez, MAN LA.

SEMCON IN BRAZIL has developed a solu-tion for 3M’s new light technology, which has been used in concept cars for Fiat and Renault. 3M Light String is an optic fiber where a limited LED source at one end produces a long, consistent light source. Common applications include interior dash, door and ceiling trim. However one of the challenges for Semcon was to find an effective way to attach it to surfaces.

“The light string can’t be attached chemically, so the only solution was to find a mechanical fastening method,” says Rodrigo Carneiro, project coordinator at Semcon Brazil. “We had to begin by exploring the strand’s constraints, such as flexibility.”

Using different tests, they found the optimal design for the intended function and results exceeded their expectations.

“Through our success with the concept cars, we’ve now managed to open doors to several other car manufacturers, who have had their eyes opened to the op-portunities our new lighting technology offers,” says Flavia Mateus, 3M Brazil. “It’s all thanks to Semcon’s wide-ranging technological knowledge, understanding of customer needs, and dedication to the project.” 1

Semcon helps 3M with new light technology


THE FIRST EDITION of Semcon’s customer magazine came out in 2001. It was called ‘Future’ with the subtitle “A magazine about the love of tech-nology” and featured articles on the world’s fastest boat built for the Volvo Ocean Race, the ‘Think’ electric car that would conquer the US and Ericson’s new super-mobile that would be a remote control for your life.

A lot has happened since the start; you can now learn about Semcon’s

fantastic world not only through the printed version, but also via the web,

iPad, and web TV. However, one thing remains: our love of

technology.“Our magazine will

convey the passion that we at Semcon feel

about working at the forefront of technology.

Future by Semcon is a way for us to take our readers behind the scenes and show the exciting chal-lenges that our engineers face every day,” says Anders Atterling, publisher and IR & PR manager at Semcon.

Assignment with emphasis on safety Semcon has signed an order with an automotive manufacturer outside Europe worth around SEK 200 million, which includes updating an existing car. The project means that the car will meet future safety requirements.

New assignment in GermanySemcon has received another order from a German automotive manufacturer worth around SEK 80 million. The project involves optimizing engines. “Future demands to cut CO2 emissions means that all auto manufacturers are focusing on this area,” says Stefan Ohlsson, business area manager Automotive R&D.

Future bySemcon

celebrates 10 years

Future by Semcon on your iPadDon’t forget that you can now read Future by Semcon on your iPad. Search for ‘Semcon’ in the App Store.

The first edition of Semcon’s magazine came out in 2001

The 3M Light String produces a long, consistent

light source

Medécins Sans Frontières is a medical, humanitarian organiza-tion that saves lives and eases suf-fering where it’s needed most.

Semcon supports Medécins Sans Frontières

A MAGAZINE ABOUT ENGINEERING SERVICES & PRODUCT INFORMATION # 3 2011

1 ABB DOUBLES VOLUME AT THE SAME FACTORY

1 MINESTO CREATES ELECTRICITY UNDER WATER

1 SCIENCE FICTION WITH NANOTECHNOLOGY

China doesn’t only manufacture global products. It develops them too.

THE PRODUCT REVOLUTION

Your global partner in engineering services and product information www.semcon.com

future by semcon

#3 2011

future by semcon - the chinese product revolution

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