The company very recently invested in a brand new endothermic generator to replace two older units. The “Tru-Mix” gas fired endothermic generator is being provided by McLaughlin Furnace Group of Avilla, Indiana USA. Delivery and installation is expected mid 2023.
About Copper State; “Copper State Bolt & Nut is committed to being the finest manufacturer and distributor of fasteners and related products in North America. We are dedicated to excellence in all phases of our business through a strong commitment to quality, customer service and return on equity. Our philosophy is aimed at creating an enriching and fulfilling environment for our employees and maintaining long term relationships with our customers and vendors. Our focus on the future is towards continuous improvement. Company Overview | About Us | Copper State”
About McLaughlin Furnace Group; “McLaughlin Furnace Group, based in Avilla, Indiana, USA is a leading provider of heat treatment solutions. Whether it is an Endothermic Generator, Batch IQ Furnace, Nitriding system or Carbottom furnace McLaughlin prides themselves on being able to provide the best solution with the fastest delivery. McLaughlin Furnaces | American Made | Global Reach (mclaughlinsvc.com)
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Ben Tackett, Ryan McLaughlin With a Typical McLaughlin “Tru-Mix” Generator
Matt Moldvay, a long time employee of commercial heat treater Akron Steel Treating in Akron, Ohio, USA has just started in his new position as President of the company. Akron Steel Treating has regularly made the list of the 50 largest commercial heat treats in North America a list which can be found at https://themonty.com/project/t
The firm has a very interesting history, a brief summary can be found below;
“The history of Akron Steel Treating in Akron, Ohio makes for fascinating reading. In 1943, the U.S. army helped Prosper P. Powell convert his garage at 654 Glenwood Avenue in the North Hill area of Akron into a mini-heat treating facility for firing pins. Operating in the secrecy of soaped windows and late-night deliveries, with overflow work conducted in the family’s kitchen oven, Powell launched a successful company. When World War Two was over Prosper asked the US government when they wanted the furnaces back. The answer was “they are yours now” and thus one of the oldest commercial heat treaters in the USA was born. Akron is still a family owned business and offers a very wide variety of heat treating.”
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This wide ranging interview with Mr. Kent Zuo, President of Owner of Shanghai Heat Treatment covers far more than just commercial heat treating. Kent’s thoughts on which technologies are growing, the effects of COVID both over the past two years and where the overall market is going are open and candid. If you have an interest in the Chinese heat treatment market this interview will be of a great deal of interest.
Dear colleagues, happy new year to all of you. After receiving my master’s degree from Fudan University in Shanghai in 2000, I worked in the Shanghai government department for several years. As part of China’s reform and opening-up generation, I always had a strong desire to start my own business. In 2003 I quit my job and started my own business, and in 2006 I acquired Shanghai Heat Treatment Co., Ltd and have taken the heat treatment industry as my lifelong career.
Originally, I stated that you were with Shanghai Heat Treatment Company, but I know that is not 100% correct as you involved in with several commercial heat treats. Please give us some background on your various companies and their capabilities. If possible, could you please tell us what your annual sales are and the number of employees?
Sure, I have been working in Shanghai Heat Treatment Co. Ltd., which is one of the oldest commercial heat-treating companies in China with a history going back more than 70 years. Shanghai Heat Treatment Co. Ltd was a private company until 1956, a government enterprise from 1956 to 2006, and then became private again when I bought it. During that whole time, it has been a commercial heat-treating company and that will never change.
We have all types of heat-treating processes, such as Carburizing, carbonitriding, all kinds of induction and flame hardening, laser hardening, vacuum hardening, vacuum brazing, vacuum nitriding, gas nitriding, ion nitriding and aluminum solution treatment. In 2023 we will be adding low pressure carburizing. We are a certified heat treater for companies such as GE, CAT, Schlumberger, Baker Hughes, Halliburton and so on.
Our commercial heat-treating services have annual sales of over $20 million USD and currently we have over 150 employees.
How large is the commercial heat-treating market in China on a % basis? To give some perspective it is estimated that commercial heat treating in Canada and the US is approximately 10% of the total heat-treating industry. Europe tends to be higher while Mexico and India are lower than 10% largely because of logistics problems. What would you guess it is in China?
China’s commercial heat treatment capacity was roughly 20% over the years. However, in recent years, more and more Chinese enterprises, especially larger enterprises, have been investing in their own heat treat departments which means outsourcing has dropped, currently it would be about 15%.
The last question leads us to this one, how do your companies rank out of all the commercial heat treaters in the country in terms of sales?
What changes have you seen in the market over the years in terms of equipment, business trends or attitudes?
There have been many developments in the heat treatment industry in China over the years and a large one has been the drop in energy consumption. The average energy consumption of commercial heat treaters will drop to below 350kW-h/t, and the electricity consumption of RMB 10,000 output value will drop to less than 2300kW-h.
In the next 5 years or so, we expect the percentage of vacuum carburizing will reach 20% and the percentage of vacuum nitriding will reach 10% of the market. Vacuum cleaning is another technology which is expected to see very significant growth. It is expected that Greenhouse gas emissions will be reduced by 50%, and zero emissions of pollutants from heat treatment production will be achieved.
The Chinese government will increase investment in the defense industry, so in the field of spacecraft, launch vehicles, navigation satellites, space laboratories, strategic missiles and tactical weapons, etc., very advanced heat-treating processes will be required which will require a great deal of innovation by heat treaters. New materials such as aluminum-lithium alloy, magnesium alloy, titanium alloy and other non-ferrous metals, high-temperature alloys, precision alloys, precious metals, etc. will pose challenges to all heat treaters.
In the field of nuclear power, the heat treatment of large forgings for the main equipment of AP1000 nuclear island, large forgings for the main equipment of high-temperature gas-cooled reactor nuclear island, and the heat treatment of thick-walled seamless steel tubes with high temperature and pressure resistance for thermal power generation equipment above 60MW have achieved the effect of small deformation of the overall heat treatment of ultra-long workpieces and consistent microstructure and hardness of all parts, which is essential to ensure the high reliability and long life of nuclear power units.
In the field of wind power, especially offshore wind turbine high precision gear quenching also has a very big change.
In the high-speed railway gears application induction hardening has been extensively used preceded by process simulation software. Scanning and quenching tooth by tooth has achieved the ideal effect of full tooth profile hardening, which has solved the problem of pressure quenching deformation control of large gear ring of high-speed railway locomotives.
In the field of electric vehicle auto parts, China is the world’s largest production base. Most of the supply chains of Tesla and BYD are manufactured in China, which is also one of the biggest highlights of China’s heat treatment industry over the past three years.
Let’s talk COVID and its effects on manufacturing and consequently heat treating. First question-what measures did you have to put into effect at your plants and how did it effect productivity?
Since the pandemic in 2020, China’s manufacturing industry, including the heat treatment industry, has experienced two years of ice and fire. In the first two years, the impact on China’s manufacturing industry was very small, possibly it even boosted production because of our domestic growth and are very hot export market. But since 2022, more than 100 cities in China have been in quarantine and lock down. I believe you all know that Shanghai’s has been closed for more than 2 months, during which our factories were closed. Despite the recent opening up of Shanghai, our production, including that of our customers, has often been disrupted. In 2022, the Chinese market will suffer damage.
Next question, are things back to normal yet? We are certainly hearing that a COVID wave is sweeping the country these days.
As you know on December 7, 2022, the Chinese government decided to abandon control of theCOVID-19 epidemic, and it can be said that the country is facing a very chaotic situation with a full-blown outbreak of positive infections, and most of the reports you see are objective. The proportion of positive infections in our company has exceeded 70%, and at the lowest point less than half of our personnel were working in the company. We are currently just at the peak of the first wave. It is expected that such a situation will continue for about six months before it is possible to reach North American and European levels.
Is this going to have a long term effect on your business? Perhaps we should ask what you are expecting business to be like for the next 2 or 3 years.
The current impact is very significant and is having a large impact on our business. But we expect China to gradually return to normal in 2023. And I’m still very optimistic about the next three years. Although China’s economy can hardly grow as fast as it did in the past 30 years, it is optimistically estimated to stay at about 5% growth per year. However, for high quality heat treatment services, the market is expected to maintain a growth rate of more than 10%.
We are going to switch gears and talk about technology. The first time I visited China was over 20 years ago and at that time most furnace builders were western based-is this still the case or have local builders been gaining market share?
The Chinese heat-treating industrial furnace market has changed a lot in the last 5 years, and this change will become more obvious. At present, more and more Chinese local industrial furnace companies are developed and recognized, whether it is atmosphere furnace, or vacuum furnace, or even vacuum carburizing furnace, the market share is growing rapidly.
My personal estimate is that at least 90% of the atmosphere furnace market and at least 60% of the vacuum furnace market are provided by local furnace companies. In the next 5 years, Chinese companies are expected to provide more than 50% of all vacuum carburizing systems in the county.
And what technology are heat treaters investing in? What would you estimate is the top selling heat treatment technology in China these days?
Heat treatment companies in China are heavily investing in digital and intelligent technologies to ensure product quality and improve production efficiency. All companies whether they are captive or commercial are looking at systems to automate the entire process. As an example, process simulation technology is being employed more and more often especially in areas such as bearings, and auto parts.
Kent what does the future hold for you and your companies? Do you have plans to expand into other geographic areas or perhaps into other areas associated with heat treating such as coatings?
After a painful 2022, we are still very optimistic about the future growth of the Chinese economy. High quality heat treatment in particular will continue to grow so we plan to upgrade each of our facilities over the next 5 years. This will include an increasing use of automation technologies and increasing production capacity.
We have a co operation agreement with a US company, Interpower Induction which means we will be working with them to provide induction systems in China. So far, we have orders from Caterpillar and Schaeffler in China.
Kent, I appreciate the time and look forward to seeing you again in person one of these days.
Now the door of China is reopened, and we welcome all of you to come to China and we are willing to cooperate with you to develop the Chinese market. My email is [email protected] , Look forward to meeting you soon.
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Andy Chen, PowerMax, Gord Montgomery, Kent Zuo, Shanghai Heat Treat
L&L SPECIAL FURNACE CO., INC. ANNOUNCES NEW OWNERSHIP It is with great excitement that we are announcing a change in ownership of L&L Special Furnace Co., Inc. Beginning January 1, 2023, the assets of “L&L Special Furnace Co, Inc.” will be acquired by “Specialized Thermal Solutions, Inc.” We will, however, maintain operations under the name “L&L Special Furnace,” with David Cunningham serving as both Owner and President. Since its beginnings in 1946 as a kiln manufacturer by a pottery entrepreneur and her husband, L&L has undergone many changes, including its relocation in 1979 to a new and larger facility that allowed it to focus on high-end, specialty Industrial Furnaces.
Throughout its history, L&L has always remained a family-oriented business dedicated to the needs of its customers. Gregory Lewicki, son of L&L’s founders, began at the company after completing his B.A. from Hobart College in 1973. Together with his brother, Stephen, he purchased L&L Special Furnace Co., Inc. from their father and moved to a new plant in Aston in 1979. The company grew under the leadership of the two brothers, and in the mid-1990’s the pair was able to buy their father’s pottery kiln company as well. In 2012, Gregory purchased Stephen’s share of L&L Special Furnace Co., Inc., Stephen acquired Gregory’s share of L&L Kiln Mfg., Inc., and the two companies became totally separate entities.
David Cunningham has been with L&L Special Furnace Co., Inc. since December 2005. In his initial role, he focused on Furnace Design and Purchasing while attending Drexel university in the evenings. David graduated from Drexel in 2009 with a B.S. in Applied Mechanical Engineering, to go along with his A.A.S. in Architecture/Civil Engineering from Pennsylvania Institute of Technology (2003) and A.A.S. in Robotics/Automated Manufacturing from Delaware County Community College (2009). In 2010, he assumed the majority of the Furnace Design Role, handling Mechanical Design, Electrical Schematics, Controller Programming, and some Field Service. In 2021, David was appointed General Manager of L&L Special Furnace Co., Inc, the title he currently holds. Aside from the name change, everything else about L&L Special Furnace will remain the same. All of our contact info and email addresses will remain the same. Specialized Thermal Solutions, Inc. will be absorbing all of L&L Special Furnace Co., Inc.’s order history and will continue to service any of its products. We are all thrilled about this new chapter and look forward to a bright future
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In Racine, Wisconsin we find commercial heat treater Hestia Heat Treat (formerly called Racine Heat Treating), this is how the company describes themselves; “Racine Heat Treating had been offering heat treat services to the Southeast Wisconsin/Northern Illinois area for over 50 years, under a few different owners. The company was purchased by Darius Szczekocki in 2017, and rebranding the company began, along with improvements in company culture, equipment, and facilities. Hestia, Greek goddess of the hearth, seems a fitting name for a heat treating company providing manufacturers with quality product meeting their precise specifications. https://hestiaheattreat.com/#o
Under owner Darius Szczekocki the company has grown substantially since he acquired it in 2017. Our understanding is that in 2023 the firm will be bringing on line 3 batch IQ furnaces each with working dimensions of 36″ X 48″ X 36″ and a weight capacity of 3500 pounds. The AFC-Holcroft built furnaces were originally bought by oil field company Haliburton in Texas, but became redundant a year ago when Haliburton made some changes.
This photo shows a very clean installation which appears to be largely completed.
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For many years now The Monty Heat Treat News has worked closely with International Search Partners, a US firm which we believe is the only recruiting agency in the world working exclusively in the heat treatment industry. In the past, ISP has provided us with fascinating articles sharing their expertise about compensation within the industry, the hardest to fill positions, and tips on finding and keeping good people.
For 2023, The Monty is pleased to announce that ISP will offer a regular exclusive feature where they will answer questions about salaries, interviewing, negotiations, and a host of other topics related to recruiting and job searching for companies and/or individual professionals in the heat treat industry. This is our first article, we look forward to your questions about hiring and keeping good employees in the heat treatment industry.
“Recently, Mike L., VP of Sales for an equipment OEM, posed a question about “passive vs active” candidates. In Mike’s experience, he’s had better success when a recruiter reached out to him, versus if he’s found himself in a bad place professionally and was actively looking to make a change himself.
He asks, how does a recruiter determine if a prospective candidate is reaching out because they are trying to leverage other opportunities for a raise and to stay with their current employer or if they are motivated by legitimate reasons to leave?
Jessica Maier, Sr. Recruiter: Mike is right, there is a difference between what we call “active candidates,” those applying to positions and reaching out to recruiters to try to leave their company, versus those we term “passive candidates,” who may be open to hearing about potential openings but are generally in a good spot. For the passive candidate, there might be some points of contention with their boss or employer, but for the most part they’re manageable and these candidates are not in a position where they MUST make a change – in short, they’ll be very selective.
Josh Hale, Managing Recruiter: That’s all very true. Where the problem arises is in the stereotype that passive candidates are somehow better than active candidates. This is often the case – the best employees are usually doing well and getting rewarded for their efforts, so don’t have a real motivation to move. However, it is NOT ALWAYS the case! It’s important for active candidates to spell out their reasons for leaving so they don’t get wrongly labeled as a job hopper or tire kicker.
Jessica: Yes, tire kickers are the worst! Luckily, years of recruiting experience has taught us how to sniff those out early in the process.
Josh: As always, it all boils down to open and honest communication…
Jessica: YEP! Passive candidates tend to be more attractive to companies than active candidates because active candidates often wreak of desperation. Think of it this way: if you went on a date with someone what would be more attractive to you – someone who is confident in themselves and leaves you wanting more or someone dripping in desperation that proposes on the first date? It’s easier for the passive candidate to exude confidence when they’re not in a dire situation.
My recommendation for active candidates is that they need to prepare themselves to avoid coming across desperate in an interview. You want to come off confident and curious about the position and the company without appearing too cocky. This is where working with a good recruiter can really help. ISP consistently does interview prep prior to any interview… by talking to your recruiter and bringing up these feelings, they’ll guide you through how to explain your situation in a way that will resonate with the hiring manager.
Josh: This is also why a good recruiter is often a blunt recruiter. I know we will flat out ask the candidate what their motivations are and address any red flags early in the process. At the end of the day, there are good active candidates and there are good passive candidates, but it takes experience, intuition, and a proven recruiting methodology and process to sift them out.
Jessica: Exactly!
Josh Hale has been collaborating with companies to identify, engage, and hire top performers as a professional “headhunter” since the early 2000’s. He’s focused exclusively on the thermal processing industry since acquiring the only search and placement firm to specialize exclusively in heat teat, International Search Partners, in 2015. Soon after, he hired Jessica Maier to support the practice, and, together, they’ve helped dozens of companies make hundreds of hires in a variety of roles within the industry, including engineering, sales, quality, metallurgy, and management.”
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Here’s wishing you all a very Happy New Year, from our family to yours!
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One of the photos we have shows Daniel at Nordic Traction Group in Finland which recently installed a UPC EndoFlex generator. We expect he will do well in his new position.
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