Justice Department Files Antitrust Lawsuit Against Parker-Hannifin Regarding the Company’s Acquisition of CLARCOR’s Aviation Fuel Filtration Business

Lawsuit Seeks to Restore Competition in Markets for Aviation Fuel Filtration Products

The Department of Justice filed a civil antitrust lawsuit today against Parker-Hannifin Corporation, challenging its acquisition of CLARCOR Inc.  The department said that the $4.3 billion transaction substantially lessened competition in markets for aviation fuel filtration products in the United States, which threatens to result in higher prices, less innovation, and less favorable terms of service.

The department’s lawsuit seeks to restore the competition that this transaction eliminated by asking the U.S. District Court for the District of Delaware to order Parker-Hannifin to divest an aviation fuel filtration business sufficient to replace CLARCOR’s competitive significance in the marketplace.

“Parker-Hannifin bought CLARCOR knowing that this transaction raised serious antitrust concerns under Section 7 of the Clayton Act in the development, manufacture and sale of aviation fuel filtration products,” said Deputy Assistant Attorney General Donald Kempf of the Department of Justice’s Antitrust Division.  “The Division is committed to vigorous and sound enforcement of the antitrust laws, and will do its job to protect American customers regardless of whether a merger has already been consummated,” he added.

“Parker-Hannifin’s acquisition of its only U.S. rival for these types of aviation fuel filtration products has effectively created a monopoly in these critical safety products, depriving their customers of the benefits of competition,” said Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division.

Aviation fuel must be filtered properly to remove particulate contaminants and water droplets before such fuel is delivered into commercial or military aircraft.  The failure to filter aviation fuel properly can result in engine failure, with potentially catastrophic consequences.  To protect public safety, the U.S. airline industry mandates the use of aviation fuel filtration systems and filtration elements that have been subjected to rigorous testing and qualification requirements.  Only those aviation fuel filtration products qualified by the Energy Institute (EI) may be used to filter aviation fuel for use in U.S. commercial and military planes.

According to the department’s complaint, Parker-Hannifin and CLARCOR were the only two manufacturers of EI-qualified aviation fuel filtration systems and filter elements in the United States and were engaged in vigorous head-to-head competition.  That competition enabled customers to negotiate better pricing and to receive more innovative products and better terms of service.  The transaction eliminated this competition.

During the pendency of the department’s investigation, Parker-Hannifin failed to provide significant document or data productions in response to the department’s requests.  In addition, the company has not agreed to enter into a satisfactory agreement to hold separate the fuel filtration businesses at issue and to maintain their independent viability pending the outcome of the investigation and, now, this litigation.

Parker-Hannifin Corporation is an Ohio corporation headquartered in Cleveland, Ohio.  It is a diversified manufacturer of filtration systems, and motion and control technologies for the mobile, industrial and aerospace markets with operations worldwide.  In 2016, Parker-Hannifin’s sales revenues were approximately $11.4 billion.  Parker-Hannifin sells its aviation fuel filtration products under the Velcon brand.

CLARCOR Inc. was a Delaware corporation headquartered in Franklin, Tennessee.  CLARCOR was a leading provider of filtration systems for diversified industrial markets with net sales of approximately $1.6 billion in 2016.  CLARCOR manufactured and sold aviation fuel filtration products under the PECOFacet brand.

INDA Expects Strong Booth Traffic for Exhibitors Oct. 10-12 in Chicago

Preview the Newest Innovations Coming to Filtration 2017 on the INDA Event Website

With the Filtration® 2017 International Conference & Exposition less than a month away, engineers, product developers and business managers can now preview many of the product introductions and innovations that will be introduced Oct. 11-12 in Chicago on the INDA website for the event.

The “Product Preview” feature on the Filtration 2017 site includes new products that some of the 140-plus exhibitors will showcase at this year’s event at Chicago’s Navy Pier. Excitement is mounting for Filtration 2017 and INDA is expecting a strong turnout of about 1,500 industry participants with a new earlier date and continued growth in the filtration segment.

Among the innovations that will be launched in air and liquid filtration are filter pockets that help lower energy consumption, multi-layer filters from new synthetic materials, filter assembly systems engineered for extreme duty performance, and new intelligent equipment that makes pleats in heavy duty materials.

Product Previews

A sample of the exhibitor innovations that participants will see on the show floor at Filtration 2017 include:

  • Allied Group (Booth 625): A new line of 100 percent glass coalescing filters for the compressed air and gas industries made using the vacuumed formed (cast) process
  • Bdtronic (Booth 814): A new atmospheric pressure plasma device to optimize the surface tension on a wide variety of materials in standard and high-performance applications
  • Bondex (Booth 624): A new technology for the industrial filtration market that combines the benefits of needle loom fiber entangling with hydro-entangling technology to deliver industry leading dust collection performance
  • Franklin Adhesives & Polymers (Booth 612): A new efficient filter adhesive that is a self-foaming, two-part polyurethane potting compound supplying high strength without requiring special water, air or nitrogen injection equipment
  • Raleigh Precision Products (Booth 426):  The new 2V Filter Assembly System is a unique four-piece construction engineered to securely hold filter media packs
  • Truetzschler Nonwovens (Booth 115):  A new line including a drum dryer/oven as well as a foulard, a can dryer and a hot flue unit
  • TSI Inc. (Booth 817): New model 8130A Automated Filter Tester for the testing of particulate respirator filters, disposable filtering face pieces and a wide assortment of filter media
  • TTG Inc. (Booth 305): New “Ultima” product line of HD membranes in power and cement applications that do not contaminate under high-peak use

Conference Highlights

In addition to the many business opportunities to generate sales and leads at the exhibition, Filtration 2017 will feature a powerful educational component to learn from world-renowned expert speakers.

Top must-attend sessions include the keynote lunch on recent growth activity in filtration by Phil Whitaker, President and CEO, AAF Flanders; a panel on the Industrial Internet of Things (IIoT) in Filtration; a panel discussion on the ISO 16890 standards; as well as sessions on air purification, media design and measuring air filter energy efficiency.

Filtration 2017 kicks off on Oct. 10 with the one-day acclaimed Nonwoven Filter Media Training Course prior to the exposition on Oct. 11-12. The industry reception will be Oct. 11, from 5 to 6 p.m., on the show floor.

Online registration for Filtration 2017 is open at www.inda.org/events/filt17.

About INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of member companies in the nonwovens/engineered fabrics industry in global commerce. Since 1968, INDA events have helped members connect, learn, innovate, and develop their businesses. INDA educational courses, market data, test methods, consultancy, and issue advocacy help members succeed by providing them the information they need to better plan and execute their business strategies.

For more information, visit inda.org or call +1-919-459-3700.

Evonik and SINOPEC to Collaborate in OSN Membrane Technology

The German specialty chemicals company Evonik Industries AG and the SINOPEC Beijing Research Institute of the Chemical Industry (BRICI) have signed a collaboration agreement to build a process development laboratory for Organic Solvent Nanofiltration (OSN) membrane technology.

Based on its solid technical expertise and comprehensive OSN product portfolio, Evonik will act jointly with BRICI to develop new processes for SINOPEC. “Starting up the OSN lab is a consistent step in our growth plan for the attractive membrane business,” noted Vice President & General Manager of the High Performance Polymers Business Line Asia Pacific, Dr. Dominic Stoerkle, at Evonik. “Based on the close partnership with BRICI and our active participation in the open platform, we anticipate further growth to result from the new joint OSN laboratory.”

Professor Li Hongbo, president of the Yanshan Branch of SINOPEC BRICI, particularly emphasized his organization’s willingness to enter into a more extensive cooperation with Evonik.

“The joint OSN laboratory is a novel approach to fostering collaboration. It is well aligned with our regional innovation strategy and future development vision. Evonik will contribute advanced technology, which SINOPEC will make accessible to various business stages. With Evonik’s support, we will also build up a pilot plant unit in one of SINOPEC’s production sites as an OSN reference plant,” he said.

Founded in1958, SINOPEC Beijing Research Institute of the Chemical Industry (BRICI) is a pioneering institution in China dedicated to comprehensive research for the petrochemical industry. When Evonik initiated the first contact with BRICI in 2015, both parties showed strong interest in potential OSN applications for the petrochemical industry. In the following year, a series of laboratory-scale tests were successfully conducted for a lube oil dewaxing application. To enter into a partnership with the aim of developing more processes and setting up a long-term collaboration, both sides initiated several management-level meetings to discuss a future collaboration strategy. The joint OSN laboratory was officially established in early 2017, when Evonik’s first (lab-scale) equipment arrived at SINOPEC BRICI.

In the future, the laboratory will focus on the etrochemical industry to open up substantial markets in both China and the entire Asian region for OSN applications.

What is OSN?

Organic Solvent Nanofiltration (OSN) is an innovative and environmentally friendly membrane technology, which has a wide range of applications in the petrochemical, pharmaceutical, fine chemicals, and food industry.

DuraMem® and PuraMem® – Integrate solvent-stable membrane technology

ABOUT EVONIK
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 35,000 employees. In fiscal 2016, the enterprise generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.165 billion.

About Resource Efficiency
The Resource Efficiency segment is led by Evonik Resource Efficiency GmbH and supplies high-performance materials for environmentally friendly as well as energy efficient systems to the automotive, paints & coatings, adhesives, construction, and many other industries. This segment employed about 9,000 employees, and generated sales of around €4.5 billion in 2016.

Evonik and SINOPEC to collaborate in OSN membrane technology

DuraMem® and PuraMem® – Integrate solvent-stable membrane technology.

The German specialty chemicals company Evonik Industries AG and the SINOPEC Beijing Research Institute of the Chemical Industry (BRICI) have signed a collaboration agreement to build a process development laboratory for Organic Solvent Nanofiltration (OSN) membrane technology.

Based on its solid technical expertise and comprehensive OSN product portfolio, Evonik will act jointly with BRICI to develop new processes for Sinopec. “Starting up the OSN lab is a consistent step in our growth plan for the attractive membrane business,” noted Dr. Dominic Stoerkle, vice president and general manager of the High Performance Polymers Business Line Asia Pacific at Evonik. “Based on the close partnership with BRICI and our active participation in the open platform, we anticipate further growth to result from the new joint OSN laboratory.”

Professor Li Hongbo, president of the Yanshan Branch of Sinopec BRICI, particularly emphasized his organization’s willingness to enter into a more extensive cooperation with Evonik: “The joint OSN laboratory is a novel approach to fostering collaboration. It is well aligned with our regional innovation strategy and future development vision. Evonik will contribute advanced technology, which SINOPEC will make accessible to various business stages. With Evonik’s support, we will also build up a pilot plant unit in one of Sinopec’s production sites as an OSN reference plant.”

Founded in1958, SINOPEC Beijing Research Institute of the Chemical Industry (BRICI) is a pioneering institution in China dedicated to comprehensive research for the petrochemical industry. When Evonik initiated the first contact with BRICI in 2015, both parties showed strong interest in potential OSN applications for the petrochemical industry. In the following year, a series of laboratory-scale tests were successfully conducted for a lube oil dewaxing application. To enter into a partnership with the aim of developing more processes and setting up a long-term collaboration, both sides initiated several management-level meetings to discuss a future collaboration strategy. The joint OSN laboratory was officially established in early 2017, when Evonik’s first (lab-scale) equipment arrived at SINOPEC BRICI.

In the future, the laboratory will focus on the petrochemical industry to open up substantial markets in both China and the entire Asian region for OSN applications.

What is OSN? Organic Solvent Nanofiltration (OSN) is an innovative and environmentally friendly membrane technology, which has a wide range of applications in the petrochemical, pharmaceutical, fine chemicals, and food industry.

About Evonik

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 35,000 employees. In fiscal 2016, the enterprise generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.165 billion.

 

LANXESS reverse osmosis membrane elements completes test

  • Reverse osmosis membrane elements from LANXESS prove their value in Zellstoff Stendal water treatment
  • Application in Germany’s largest industrial water treatment plant
  • ASD feed spacers impress with a consistently high level of rejection
  • New element grades deliver energy savings of up to four percent

Reverse osmosis membrane elements from specialty chemicals company LANXESS have successfully completed a year-long practical test in Germany’s largest industrial water treatment plant. The new element grades with ASD feed spacers impressed Zellstoff Stendal GmbH based in Arneburg with their performance and consistently high level of rejection. Optimized for applications in brackish water, these Lewabrane-branded elements are characterized by very low energy consumption (LE = low energy) and high fouling resistance (FR = fouling-resistant).

“The outstanding results of our ASD products in benchmark tests with other manufacturers at one of the largest pulp manufacturers in Europe once again underline the extraordinary quality of our products,” said Alexander Scheffler, responsible for LANXESS’s global membrane business.

One year ago, Zellstoff Stendal launched a project to test LANXESS’s newly developed Lewabrane ASD range of membrane elements. This involved installing conventional reverse osmosis (RO) elements with a standard feed spacer and FR elements with LANXESS’s new ASD spacer in parallel in a single pressure vessel. The LANXESS spacers have a special “netting” that reduces biological growth and particle fouling by minimizing dead zones. The netting has an alternating strand design (ASD) of thin and thick filaments, which is what gives the spacer its name.

Frank Gorges, plant technician for water treatment at Zellstoff Stendal GmbH in Arneburg, was excited about the result: “We were very impressed by the performance of the ASD membrane elements from LANXESS. We test a lot of products in our plant and hardly any of them have been able to provide such consistently high results throughout an entire year.”

During the period of the project, the LANXESS RO elements demonstrated excellent performance and impressed with a consistently high level of rejection. This has a positive effect on the service life of the mixed bed and the amount of chemicals required for regenerating the ion exchangers.

After one year, the elements were removed and taken to the applications laboratory LANXESS operates in Bitterfeld for an “autopsy”. Compared to a standard element, there was hardly any increased pressure drop along the element when using the ASD grades. This indicates less blockage from fouling or biological growth.

Improved productivity 

In addition to the fouling-resistant Lewabrane B400 FR ASD grade tested by Zellstoff Stendal, LANXESS also offers Lewabrane B400 LE ASD, another premium product where the innovative feed spacers have improved productivity by four percent. For users, this means potential energy savings of approximately the same percentage.

Computational fluid dynamic (CFD) simulations had previously indicated that RO elements with ASD feed spacers would indeed be capable of achieving higher performance levels than standard grades. Furthermore, the tendency toward fouling in the element is reduced. “As we calculated, using the new elements reduces energy requirements while at the same time increasing service lives,” said Dr. Jens Lipnizki, head of Technical Marketing Membranes in the Liquid Purification Technologies (LPT) business unit at LANXESS.

LANXESS water treatment technologies for pulp manufacturing

Zellstoff Stendal, part of the American-Canadian Mercer International Group, is the largest and most cutting-edge manufacturer of NBSK (Northern Bleached Softwood Kraft) market pulp in Central Europe. With their outstanding properties – especially their high tensile strength and high degree of whiteness – these pulps are used, for example, for high-quality printing and copying paper, wallpaper bases, household paper such as paper tissues and kitchen roll, filter paper and a range of other specialist papers like silicone base paper.

Wood elements such as bark and lignin that are not used for pulp production are incinerated in boiler plants. A combined heat and power process in this case generates heat energy that is used as process steam and electricity. Located in the north of Saxony-Anhalt, the plant generates enough power to cover its own needs and also feeds a large part of the renewable energy generated into the public electricity grid.

More than 50,000 cubic meters of water are needed every day for pulp manufacturing in Arneburg, and this is treated using reverse osmosis and ion exchange resins. The Lewatit MonoPlus S 100 and Lewatit MonoPlus M 600 grades are used in the multistep process, while Lewatit MonoPlus SP 112 H and Lewatit MonoPlus MP 500 are used in the mixed bed.

Detailed information about products from the LPT business unit can be obtained online at http://lpt.lanxess.com.

LANXESS is a leading specialty chemicals company with sales of EUR 7.7 billion in 2016 and about 19,200 employees in 25 countries. The company is currently represented at 75 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through ARLANXEO, the joint venture with Saudi Aramco, LANXESS is also a leading supplier of synthetic rubber. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World) and FTSE4Good.