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Oil, Gas, Petrochemical Industry News
News Release from: Industrial Automation INSIDER | Subject: July issue
Edited by the Processingtalk Editorial
Team on 13 July 2007
Honeywell acquires Enraf - an 'Insider'
report
The July issue of 'Insider' reports that Honeywell is in acquisition mode, "looking for portfolio expansion" after the agreed acquisition of Enraf, the oil and gas terminal automation system suppliers
This was the message expressed to INSIDER by from Paul Orzeske, Honeywell Process Solutions EMEA vice president and general manager, following the announcement of the agreed USD260m acquisition of Delft, Netherlands based Enraf Holding from Delft Instruments The six Enraf divisions deliver a range of solutions and services for the control and management of transportation, storage and blending operations in the oil and gas industry and will give Honeywell an oil and gas terminal automation capability comparable to that acquired by Emerson when it purchased the (since rebranded) Saab operation in 2001
This article was originally published on Processingtalk on 8 Aug 2006 at 8.00am (UK)
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Honeywell is paying top dollar for Enraf which had sales of approximately USD130m in 2006.
As part of Honeywell Process Solutions it will become their centre of excellence for terminal automation.
"It solidifies our position in oil and gas terminal automation," said Orzeske who explained that the aim will be to maintain the Enraf brand and keep the group intact in Delft.
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The Enraf acquisition is a part of a broader strategy, driven by what Orzeske sees as the need for Main Automation Contractors (MACs) to be able to offer a single source of system solutions and Level 1 field devices.
Where that cannot be met from Honeywell resources the gaps will be filled either by acquisitions, by exclusive arrangements with third party manufacturers or through partnerships under the PKS Advantage programme.
"There's a natural tendency to move into higher value products and away from what are becoming commodity products," said Orzeske who confirmed that further acquisitions could be expected: "We've invested heavily in Experion PKS in recent years and we're now looking to invest in portfolio expansion", while going out of his way to stress that they were not looking to acquire another DCS vendor.
Part of that same strategy is the decision to enter the flowmeter market with a range of high-performance devices manufactured exclusively for Honeywell to its own quality, performance and reliability standards, by German flow specialist Krohne.
Dubbed VersaFlow, the devices will be distributed and supported on a global basis through the existing Honeywell sales and distribution organization.
The range comprises a general purpose electro-magnetic flowmeter, an ultrasonic meter for liquids (using three separate beams to eliminate flow profile effects), a vortex meter which is claimed to be the only two wire device of its type to incorporate integrated pressure and temperature compensation, and a Coriolis mass flowmeter.
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