South-East European Industrial Market 1/2022


south-east european INDUSTRIAL MARKET 2 South-East European Industrial Market is a bimonthly industrial products & services magazine for the South-East European countries - Bulgar ia, Croat ia, Greece, Northern Macedonia, Romania, Slovenia, Serbia, Montenegro, Turkey, Albania. It is distributed free of charge among the working specialists in the industrial sectors in the region, and the engineering, manufacturing and trade companies in South-Eastern Europe. Editorial Department Dilyana Yordanova - Lead Editor % (+359 2) 818 3823 Lyuben Georgiev % (+359 2) 818 3808 Hristina Vuteva % (+359 2) 818 3822 Marketing & Distribution Dept. Mirena Russeva - Head of Department % (+359 2) 818 3812 E-mail: Advertising & Communications Marieta Krasteva % (+359 2) 888 956 150 Petya Naydenova % (+359 2) 818 3810 Anna Nikolova % (+359 2) 818 3811 Gergana Nikolova % (+359 2) 888 595 928 Elena Dimitrova % (+359 2) 818 3843 Boryana Valcheva % (+359 2) 818 3813 ISSN 1312-0670 TLL Media Ltd. © All rights reserved.The artwork, layout design, the articles and all the graphical and text materials used - images, photos, texts, etc., are copyrighted and protected by the law. Unauthorized and unpermitted use is illegal and a copyright infringement. The Publisher shall not be held liable for the contents of the advertisements, advertising layouts and banners, video advertising publications, advertorials and company articles. Copyrights of all mentioned trademarks, registrated trademarkes, etc. belong to their owners.  IN THIS ISSUE: www . SEE - i ndus t r y . com Publishing House 104, Acad. Ivan Geshov Blvd., entr. A, office 9, 1612 Sofia, Bulgaria % (+359 2) 818 3838, Fax: (+359 2) 818 3800 E-mail: ® 4 Microchip VP Rod Drake: Pandemic accelerates shift to machine learning and edge IoT 6 PCB manufacturing in Turkey 9 950 exhibitors demonstrated technological innovation at TIMTOS x TMTS 2022 12 Renewable energy oppor tunities in Albania 16 Romania’s chemical industry 20 Metal Show & TIB 2022 to present the future of technology 20 Belgrade Fair of Technics to be held at the end of May 21 Solarex Istanbul to showcase the latest trends in PV technology 21 Konya Machine Technologies Fair to gather metal processing sector exper ts in Anatolia 22 Slovenian steel producer SIJ Group plans further decarbonisation 22 A1 Bulgaria and Renalfa sign a Power Purchase Agreement for green energy 23 EBRD invests in urban regeneration and green buildings in Greece

south-east european INDUSTRIAL MARKET 3 PAID ARTICLE Connected "smart" devices – Applying E-IoT in practice – The "smart" doorbell project Zoltán Kiss, Export Director e-mail: Written by Zoltán Kiss, Export manager - Endrich Bauelemente Vertriebs GmbH Since Bob Rafelson’s iconic film „The Postman Always Rings Twice” we all know that postmen never gives up, unfortunately not as in reality. You all must have experience that missing the long-expected magic doorbell may result in a waiting a long queue at the post office late evening after work to pick up the important parcel or registered mail. What if your doorbell would generate a pop up message on your mobile device or you would get an SMS about someone’s waiting in front of your door? Of course, today in the era of IoT it is all possible, such as an intelligent garbage bin telling if it is full, or the flower in the garden would cry for irrigation, your pond reporting critical water level in the hot summer…Let us see how we can call the narrow band LTE communication technology for help. For above mentioned solutions the blocking point is always the cost. Most of the mainstream connected solutions therefore use the local networking possibilities to reach the Internet by using the infrastructure’s (house, shop, social area) Wi-Fi hot spot for internet access. However, network security does not make it easy to accept to connect all kind of devices for a company network, so this solution widely used in air conditioning systems, security cameras and other commercial products are only designed for private use. What if industrial applications require Internet access? Of course, it is possible to use GSM modems, connecting devices through the 2G, 3G or legacy LTE networks to the Internet. This is costly way as the urban sanitation company may not afford to integrate a “mobile phone” economically to your garbage bin to optimize their garbage collecting routes, you will not have for all your flower beds to install an another one to report ground soil moisture level, and definitely you cannot use a mobile phone instead of your doorbell…. The other issue is the battery lifetime. You need to use high-capacity lithium disposable batteries, in most of the cases you cannot use rechargeable batteries such as in the mobile devices, or only those with low capacity, which can be recharged by a photovoltaic solar cell. The narrow band GSM technology (NB-IoT a 3GPP radio technology standard) offers a solution: these modems are cheaper, as all unnecessary functions are kicked out from their feature list. No voice communication, no 7/24 connection to the GSM network, no SMS, no fast data transfer is needed when you only have to send small data package every now on then.. As the bandwidth offered is low, magnitude higher number of such devices may be placed in the same GSM cell and can share a part of the LTE band. Therefore, the costs will be reduced on both hardware and connectivity side. The modem is a way cheaper, consumes much less energy as most of the lifetime it spends in sleep mode, usually in the range of 5 USDs. On the other hand, the used NB-IOT SIM card offers also low cost, the usual business model is 10 EURs for 10 years and 100 Mbytes data. This makes it possible to use this technology for all purposes when sensors’ data have to be sent to a Cloud Database with as low price as possible. Additional advantage of this system is the availability in lower sub-gigahertz frequencies, such as the 450 MHz band (Band31). Since NB-IoT uses narrowband (180KHz), it allows for an increased density of transmission power and that, along with other coverage enhancement capabilities makes indoor penetration and reach far better than other technologies. Although there are full duplex protocols used in combination with NB-IoT such as MQTT, we have to use NB-IoT in the right use-cases: when you need to SEND small package of (sensor) data for limited times a day. When 7/ 24 connection is required, for example you need to remote control devices such as A/C systems or home equipment from application, NB-IoT is not always the best solution as it does not provide (easily) constant presence of your connected device on the Internet. However with a cheap low power consumption microcontroller and the right sensor in combination NB-IoT offers and affordable solution for tasks such as the above mentioned cases (“smart” garbage bin, flower irrigation or doorbell). So let us see an example how to create a „smart” doorbell! In an earlier issue of SEEIMwe have talked about Endrich’s E-IoT evaluation platform, which contains all the necessary components we need to have for making a conventional device SMART. The hardware platform offers an evaluation board having a RISC-V based MCU and a 2G/ NB-UIoT/ LTE-M modem on board with lots of different sensors and also the possibility to contact external sensors to it. The underlaying software services such as the Endrich Cloud Database and the Endrich Visualization Gateway offer solution for handling the data received through the Internet via the GSM connection. So let us combine them and use this board to create a “SMART” doorbell, as a proof of concept. This models perfectly an independent wireless NB-IoT Button, which can be used in harsh industrial environment as an alarm button for example. Opening our mind and replacing the switch with a load cell/force sensor (garbage bin), a soil moisture (irrigation) or liquid level sensor (pond), we have the solution for the examples brought up in the beginning of this writing. Using a reed relay or any other opening detection a simple NB-IoT intrusion detection system can be realized. As the recent design is a PoC, we used a three band modem, so one can make a balance between battery lifetime, power consumption, latency time (using LPWA) versus wider services access (using 2G). Using an NB-IoT SIM card we can send in the status of the push switch to the Cloud Database at every moment the button is pushed. Our app on the mobile device may pop up messages based on the data stored in the ECDB real time. Using a 2G (GPRS) SIM card in the E-IoT board we do not even need to connect to the database, the modem is used in 2G mode, meaning features of direct SMS sending is possible (in reality this mode has no economic meaning as battery lifetime and modem and communication costs will be problematic).

south-east european INDUSTRIAL MARKET 4 The Covid-19 pandemic has shaken up the embedded industry, not least with a dramatic shift to more automation, sensing and edge processing with machine learning. While customers have accelerated their digitalisation plans, the semiconductor industry is running hard to keep up with demand. This means flexibility is key, from the design of a board or system all the way through the supply chain. This will be more apparent through the challenges the industry will face throughout 2022. Meeting these challenges will not only require flexibility in how the edge processing is implemented, the types of devices and techniques that are used, but also the way edge systems are rolled out across the IoT. Microchip’s wide range of technologies with its own manufacturing capability provides an advantage in being able to deliver the technology that the end customers need. One example is smart image sensors with local machine learning on programmable FPGAs. This puts the key machine learning algorithms for image processing at the edge by the cameras, rather than sending streams of data to the cloud. This reduces the latency of response, the power consumption and the data requirements across the IoT network. Using FPGAs also allows engineers to develop their own machine learning or tweak existing ones for their particular application. That can provide more efficiency for specific applications at the edge, from defect detection for quality control on a production line to control systems. For example, the latest Microchip FPGA development platform adds new sensors with an interface that links industrial cameras with 1 Gbps per lane while receiving up to 1.5 Gbps per lane. There is increasing demand for higher performance interfaces as developers use cameras with higher resolution to capture more detail and need to perform the processing locally. This avoids overwhelming the local network and allows a boost in productivity with the existing infrastructure. While high speed Ethernet networks are increasingly common in industrial edge applications, an FPGA solution at the edge also allows developers to configure the system to specific industrial networks such as Profibus and Hart. The flexibility of adding network protocols to an FPGA reduces the size and complexity of network nodes and gateways, and this is a key trend for 2022 and beyond. Machine learning can also be implemented on a wide range of microcontrollers for applications such as predictive maintenance at the edge. Microchip works closely with the developers of software algorithms to run sophisticated pattern recognition code on microcontrollers close to the sensors. These allow for more local monitoring of equipment, identifying patterns in the data that can indicate that equipment is starting to fail, and even the location of the problem. This allows machines to be taken off-line in an organised way as part of scheduled maintenance with time to order replacement parts. This avoids unexpected failures that can bring a production line to a halt and can cost millions of dollars in lost production, hitting delivery schedules to customers. These machine learning frameworks are constantly improving, using data from the suppliers or from the application itself, boosting the accuracy of signal detection and classification and improving the performance of the overall system. Outlook 2022 – Edge IoT Pandemic accelerates shift to machine learning and edge IoT Rod Drake, vice president at Microchip Technology The high level data from these edge systems is also fed back to cloud services that are growing in importance through 2022, and as a result security is also key for these systems. With more and more devices connected across the IoT, designers are realising that applications are vulnerable to being taken hostage and edge nodes are generally very susceptible to security hacks. This is driving demand for over the air (OTA) updates to keep edge IoT device security up to date. OTA updates are basically a required feature now and that needs security, otherwise the network is open to someone inserting unqualified code into an edge node. Microchip has relationships with all the major cloud suppliers and adheres to the latest security standards. This is an area that is growing fast and will continue to do so through 2022. Functional Safety is also moving into industrial applications, taking the design methodologies used for driver assistance technologies and driverless cars and applying them to the factory floor. A lot of industries followed automotive with adopting the ISO9000 quality standard and Microchip sees the same thing happening with the ISO26262 standard moving to industrial designs. Having the ability to understand in the system how something is going to fail and what will happen and that it fails in a safe manner – this is the most mature and most widespread in automotive and a key technology for edge IoT in 2022 and beyond. Through 2022 there will continue to be a constrained environment for the availability of components, and this means communication with suppliers is key. Microchip has always worked closely with customers on their designs and this will be a key area of focus over the next year. As Microchip has its own production capacity, it has more control over availability of parts, and the programmability of microcontrollers and FPGAs gives developers more flexibility in avoiding supply constraints. What is clear is that digitalisation is a vital part of industrial designs, particularly at the edge, and that will continue to be a significant driver of growth. From smart sensors at the edge with high speed interfaces and FPGA processing to machine learning algorithms running on microcontrollers, there are many different options for customers to consider. Working closely with semiconductor suppliers such as Microchip will be key to ensuring the successful roll out of edge IoT systems. Early communication and detailed planning will help the supply chain deliver the technologies that are needed to meet the drive to edge IoT that is happening all around the world.

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south-east european INDUSTRIAL MARKET 6 According to the U.S. Department of Commerce’s International Trade Administration Turkey’s young, sizeable population, dynamic entrepreneurial class, and advantageous geographic position as a bridge between Europe and Asia have made the country an important manufacturing and distribution hub. Turkey positions itself in the global value chain by leveraging its logistical advantage, offering lower labour costs and flexible production capabilities. Manufacturing’s share of GDP has increased to 18,83% in the last decade and Turkey aims to boost it to 21% by 2023 through its 2023 Industry and Technology Strategy. Advanced manufacturing technologies are increasingly used in the country, with international companies leading the way. Early adopters of advanced manufacturing in Turkey include the automotive and aviation industries, both dominated by major international companies with many local suppliers who must meet the latest standards and technological requirements. In addition, the consumer goods, electronics, chemicals, machinery, steel, construction, textiles, energy, and mining industries are focused on adopting advanced manufacturing technologies to remain competitive. Through more advanced manufacturing technologies, Turkey can move further up the global value chain, ensure its future global competitiveness, and provide a boost to a faltering economy. Currently, 36% of Turkey’s manufacturing exports consist of medium-tech products and 3% hightech products. The country aims to increase the former to 44% and the latter to nearly 6% by 2023. In 2019, the Ministry of Science, Industry and Technology announced Turkey’s 2023 Industry and Technology Strategy detailing incentives for R&D and digital transformation of industrial enterprises. Turkey plans to invest heavily in over 300 product groups in the machinery, semiconductor, aerospace, defense, transportation technology, software, electronics, chemistry, and pharmaceutical industries. Incentives will be provided for the development of new technologies involving artificial intelligence, 5G, big data and data analytics, IoT, blockchain, robotics and autonomy, nanotechnology, cybersecurity, additive manufacturing, quantum computing and energy technologies. The electronics sector The Turkish electronics industry began to develop rapidly in the second half of the 80’s. The PCB manufacturing in Turkey introduction of colour TV broadcasting and the acceleration in telecommunication investments boosted development. Furthermore, the revolution in telecommunication technologies which took place during those years, increased the growth of the sector. Most of the Turkish companies started operations through foreign license agreements. The licensors originated from the Netherlands, Germany, Japan, the USA, Canada, France, the United Kingdom, Denmark and Italy. Today the sector is a mature industry and has reached a significant level in technical knowledge. There are approximately 2033 manufacturing companies in the field of electronics, shows data from the country’s Ministry of Trade. The Turkish electronics industry manufacturers/exporters follow European and international standards and norms. The obligation to affix the CE Mark to products began in the local market in 2002. At the same time, Turkish manufacturers have been closely following the developments in international quality and environmental standards. The Turkish electronics industry, founded on high added value, innovation, creativity, and extensive research, develops products not only for the local market but also for overseas. The exports of the sector have demonstrated a constant increase since 1990. This is mainly due to intensive R&D efforts and production aligned with the needs of the export markets. Electronics industry products having the most recent technology are supplied to the Turkish market simultaneously with Europe. Turkish electronics industry exports are primarily directed to European markets. In 2017, the Turkish electronics industry realized exports to roughly 200 countries. The total value of electronics exports sector increased by 3,9% compared to the previous year and reached USD 10,2 billion in 2017. As in production, consumer electronics and telecommunication equipment were the main items in exports. An analysis by Turkey’s Ministry of Trade indicates that the European Union is the most important market for the Turkish electronics sector. England is the top exporting country of the sector with a 13,0% rate, followed by Germany (10,8%) and France (6,9%). Apart from the European Union countries, peripheral countries (such as Iraq, Turkmenistan) and the USA are the other important exporting countries for the sector. In 2017, the total import of the electronics sector increased by 3,1% compared to the previous year and reached USD 26,5 billion. The import value of the components, integrated circuits and other machines had the biggest ratio in 2017 total import with 20,5% ratio and USD 5,4 billion. Telecommunication equipment (16,8% ratio) and electrical machines and energy group (13,7% ratio) were the other important imported goods in electronics sector. China (32,7%) had the highest ratio in total imports. Although the export countries are concentrated in the European Union, the import countries are diversified.

south-east european INDUSTRIAL MARKET 7 PCB manufacturing companies The printed circuit board (PCB) manufacturing process requires a complex procedure to ensure the performance of the finished product. Though circuit boards can be single-sided, double-sided or multi-layered, the fabrication processes used only differ after the first layer’s production. Due to differences in the structure of the PCBs, some may require 20 or more steps during manufacturing. The number of steps required for producing printed circuit boards correlates to their complexity. Skipping any step or cutting back on the procedure could negatively impact the performance of the circuit board. However, when successfully completed, the PCBs should perform their tasks properly as key electronic components. In the following section we will present a short description of the main companies producing a wide range of PCBs in Turkey. Asik Elektronik Asik Elektronik Import Export and Trade was founded in 1995. The company started its operations in order to satisfy the demand for plated through-hole PCBs on the Turkish market. With the advancements in technology, the company offers single-sided, double-sided, multi-layer, gold coated, flexible and aluminium PCBs. In 1996 in accordance with the needs on the Turkish market and the developing world trends, Asik Elektronik started import and export operations of flexible membrane switches. The company also carries out research and development activities. It performs, by automatic machines, the assembly of every kind of electronic circuit that is made up of SMD and THT components according to customers’ needs and requests. In addition to its services for customers in the PCB field, Asik Elektronik also supplies stencils that are required for the assembly of PCBs on request. Baski Devre Baski Devre was founded in 1977. The company constantly invests in technology, increasing its capacity. Its production capacity reaches up to 180 000 square metres for single sided PCBs and 80 000 square metres for double sided PCBs. Baski Devre has developed strong business relationships with its partners in the Far East which further expand the company’s capacity for double-sided, up to 32 layers multi-layer, flexible, heavy copper, hybrid and long LED PCBs. Baski Devre recently finalized its efforts in the field of lead free solder and green materials and is ready to meet customers’ demands in that aspect. The firm has almost one thousand customers all around Turkey, as well as in Europe, the Middle East and even in South Africa. Baski Devre exports to more than 100 companies in 14 countries. The company regularly takes part in major exhibitions in Europe and Turkey. Delron Electronic Industry and Trade Delron Electronic was established in 1994 and manufactures high quality single-sided, double-sided, multi-layer, flexible and rigid flexible PCBs in its 12 000 m2 premises, located in the industrial zone of Manisa. The company offers a fully integrated service to its customers including design, SMT, axial and radial through-hole assembly technologies, up to full product building. The PCB and assembly production facilities are certified with BVQI’s ISO 9001:2000 total quality system. The company is a member of IPC and products are UL approved. Delron has become an approved manufacturer for the Turkish defence industry and its products conform to MIL SPEC 810 norms. The company is an approved manufacturer for Siemens, Alcatel and the only approved PCB manufacturer in Turkey for Tusas Aerospace Industries.

south-east european INDUSTRIAL MARKET 8 SEE NEWS Net Elektronik Design Net Elektronik Design has been serving the sector with computer aided design (CAD/CAM) printed circuit design, hardware and software applications, PCB production and PCB assembly and installation services in Turkey’s electronics field since 1999. Net Elektronik Design aims at 100% customer satisfaction and claims to be the only company that provides simultaneously PCB design, PCB production and PCB settling services in the sector. With its projects on renewable energy, it has adopted to work without compromising the correct, principled production and reliability ethics in all service areas. Odak PCB Odak PCB was established in 1983 as a small shop to produce simple PCB prototypes. The dedicated work and visionary approach of its founders have shaped the way of doing business, prioritizing continuous improvement and customer satisfaction. Today, with 180 members of the Odak PCB family, the company is one of the biggest PCB manufacturers in Europe. Odak PCB manufactures LED, single-sided, double-sided, multi-layer, flexible, and rigid-flex PCBs, that are widely used in industries such as LED lighting, automotive, household appliances, medical and military and defense. Samples and prototypes are produced on the same production line to make sure all PCB specifications fully match. Samples and low volume batches can be produced with 24, 48, 72-hour or 5-day options depending on urgency. Medium and high volume batches can be produced in 5 to 10 days with Odak PCB’s expedited production capabilities. OME Elektronik Founded in 1995 OME Elektronik provides electronic card design and production services. Since its establishment, it has not aimed to produce and market any own-brand product, but has produced only with the aim of serving as a subindustry. The company strives to constantly improve itself in production techniques, design and procurement services and has the most advanced equipment. OME Elektronik is able to design, to produce PCBs and electronic cards for all kinds of needs, serving over 400 customers from different sectors. The firm has nearly 200 employees in its Istanbul based production facility spread over 6000 m². OME Elektronik has commissioned RoHScompliant production lines since 2005 and since then it has been producing in full compliance with the Directive. The company established the Quality Management System by obtaining the ISO 9001 certificate the same year. As of 2018, by establishing ISO 14001 Environmental Management System and ISO 18001 Occupational Health and Safety Management Systems, it has switched to the Integrated Management System and further expanded the quality scope of its services. Production, warehouse, shipment, etc. ESD and MSD requirements are met at every stage. Production is carried out in accordance with IPC Standards and requirements, especially IPC-A610 and J-STD-001 standards, and OME Elektronik’s entire facility works in accordance with its production tracking system that ensures traceability. Printronics PCB Printronics PCB was established in 2007 and produces single-sided, double-sided, aluminium, multi-layer, flexible and hybrid PCBs. Within a few years after its establishment, Printronics PCB increased its market share in the PCB sector and has now become one of the largest companies in the field. In order to increase service quality and meet customer expectations and needs at a higher level the company regularly invests in its Istanbul based plant. Hexonic to take part in Romtherm 2022 Hexonic announced it will be among the exhibitors at the upcoming edition of Romtherm 2022. The event will take place between March 24 and 27 in Bucharest. The exhibition presents the novelties in the field of water supply, sanitary and sewerage installations, gas supply installations, technological installations, thermal installations, heating, ventilation installations, air conditioning, refrigeration, etc. „We would like to invite all our distributors and customers to the upcoming fair in the Romanian capital. Visitors at the exhibition will have the opportunity to meet the area sales managers, responsible for Romania, Bulgaria and the Balkans. At the company stand (41 in hall B2) Hexonic will show some of its newest heat exchange solutions. Everyone will have access to the new free software for product selection. Our representatives will be there looking for new business relations and possibilities“, the company said. Hella Saturnus to build EUR 108 million logistics centre in Slovenia Hella Saturnus Slovenija, a subsidiary of German group Hella, plans to build a EUR 107,7 million logistics centre according to a document, published on the Slovenian government’s website. The company has applied for a EUR 5,4 million government incentive for the project and intends to open 50 jobs at the logistics centre by the end of 2024, the document showed. Hella Saturnus will make an investment of EUR 69,8 million euro in machinery and equipment. The centre will include a laboratory, logistics and production facilities, as well as a high rack warehouse. Its purpose will be to diversify the company’s electronic components manufacturing activities. Hella Saturnus manufactures auxiliary lamps, sports car lighting equipment and single-function lamps. French automotive supplier Faurecia acquired an 80% stake in the capital of Hella Saturnus’ owner Hella in January. Photo: Hexonic Photo: Hella Saturnus Slovenija

south-east european INDUSTRIAL MARKET 9 TIMTOS x TMTS 2022, the first co-branded machine tool mega show in Taiwan, closed on February 26 with huge success. The physical exhibition was held in Taipei Nangang Exhibition Halls 1 and 2 over six consecutive days while the online exhibition remained open until March 21. Organizers Taiwan External Trade Development Council (TAITRA), Taiwan Association of Machinery Industry (TAMI) and Taiwan Machine Tool & Accessory Builders’ Association (TMBA) informed that the show had attracted more than 40 000 online and offline visitors at home and abroad. Notably, the online exhibition reached visitors from more than 20 countries/regions. Featuring 950 exhibitors in 5100 booths, TIMTOS x TMTS was not only the largest trade show held in Taiwan since the outbreak of the pandemic but also the world’s first machine tool mega show in 2022. In response to border controls, the show included an array of online services for international visitors and media, including “On-site Guide for Online Visitors”, “Sourcing Taiwan Machinery”, “On-site Guide for Media Tour”, “Live Tour @ Showground”, “Media Eye on TIMTOS x TMTS”, “Podcast Live”, and TIMTOS x TMTS Online.”Live Tour @ Showground”, “Media Eye on TIMTOS x TMTS” and “Podcast Live” delivered daily live updates from the exhibition floor. The videos and podcast episodes have enjoyed over 25 000 views and listens. Furthermore, major attendees such as Mighty USA, EMIL Macchine, Faustino Pittori SRL, Hommel GmbH and Siemens Turkey, were guided to the showground and made real-time connections with selected exhibitors during 500 online sessions. Processing machines, multi-axis machining centers and laser cutting machines were amongst the most sought after items for foreign buyers. Mr. Max Martinelli from Faustino Pittori in Italy gave thanks to the organizers, TAITRA, for arranging the “On-site Guide” service and noted that the video guided tour created a great opportunity for him to learn about the latest products from important suppliers and discuss potential cooperation in a timely manner. What impressed Mr. Bo Jean from Mighty USA during the video guided tour was the ability to get a 360-degree view of each machine and converse with the exhibitors at the same time. International media was also deeply impressed by the strong R&D capabilities of Taiwan’s machine tool manufac950 exhibitors demonstrated technological innovation at TIMTOS x TMTS 2022 turers. In addition, the “On-site Guide for Media Tour” proved to be very helpful for facilitating remote interviews during the pandemic. The machine tool industry is aware of the latest development of future trends and accelerates digital transformation and upgrades. New models and solutions are aimed at emerging business in sectors such as semiconductor industry, green energy, electric vehicles, healthcare and aerospace. This year’s TIMTOS x TMTS welcomed a wide range of visitors from different industrial fields. Among the major domestic visitors were TSMC, AIDC (Aerospace Industrial Development Corporation), Formosa Heavy Industries, Hon Hai Precision Industry, Chang Gung Medical Technology, Nan Ya Plastics, and CSMC (China Steel Machinery Corporation). During the show plenty of business conversations, networking and deals took place. Many exhibitors were delighted with the orders placed onsite. KAO MING, one of the leading Taiwanese vendors of hydraulic radial drills, sold out all of the drills on display at their booth within the first three days of the show. RONG FU, a leading band saw provider, CASTEK, an expert in EDM drilling machines, MYLAS, an outstanding lathe maker, HEAKE, which is recognised for its 5-axis mill, and SUN FIRM, a leader in flat bed lathes, also received on-site orders. The online exhibition for TIMTOS x TMTS 2022 kept on running until March 21. The most popular exhibitors at TIMTOS x TMTS Online featured HIWIN, VICTOR TAICHUNG, Hartford, FANUC and SAN YUAN. Overall, exhibitors at TIMTOS x TMTS showcased the very best solutions they had developed over the last three years, both on-site and online. TIMTOS is scheduled to return in March 2023. Taiwan Machine Tool Industry Awards celebrated technological innovation The 15th Taiwan Machine Tool Industry Awards for Excellence in Research & Innovation recognized the best products with outstanding design and engineering for research and design innovation across several categories: Machining Center and Manufacturing Cell, CNC Lathe and Manufacturing Cell, Other CNC Machine Tool and Manufacturing Cell, Components for CNC Machine Tools and Other NC Machine Tools. For 2022, a total of 38 research innovations were submitted from 36 manufacturers. The judges strived to select the best products based on their technology merits that also meet the theme of Intelligent Technological Innovation. Among the recognized honorees, the Supreme Excellence award is given to the highest-rated product in All CNCMachine Tools category. This year, one special prize and three excellent work awards were

south-east european INDUSTRIAL MARKET 10 selected from all entries to recognize the team of this year’s intelligent machine tool or parts research and development innovation. “The past two years have been a challenge like no other for everyone in the world. We have seen the strain firsthand on our health systems, our schools, our businesses, large andsmall. But in this time of uncertainty, technology has been a stabilizing, unifying force. The pandemic has sparked astounding innovations in the machine tool technology. There has been an improvement in the research and development level of the core technologies in the industry this year. The judges found the entries more defined; and the total number of submissions in the Components for CNC Machine Tools significantly went up, and many have intelligent functions, which is an improvement”, said organizers TAITRA. The award ceremony was attended by Pa-Hsi Ko, Chairman of Taiwan Machine Tool Foundation, Leonor F. M. Lin, President and CEO of TAITRA, Larry T. W. Wei, Chairman of TAMI, Habor Hsu, Chairman of TMBA, Chih-Ching Yang, Deputy Director General of Industrial Development Bureau, Ministry of Economic Affairs (MOEA), and Guann-Jyh Lee, Deputy Director General, Bureau of Foreign Trade, Ministry of Economic Affairs (MOEA). Chairman Pa-Hsi Ko, Taiwan Machine Tool Foundation, said, “The core value of a company is R&D, and to win an award requires the company’s competence. Taiwan is moving towards becoming a global high-end production center. Even semiconductor production relies on machine tools. As to net-zero, machine industry can do more and will contribute more.” Chairman PaHsi thanked all engineers working on R&D and bosses who support R&D. “Your contribution makes Taiwan even better,” he added. Leonor F. M. Lin, President and CEO of TAITRA expressed her happiness to see the show kicked off and the first hybrid machine tool tradeshow in the world during this pandemic. “As of today, about 300 online procurement meetings were completed,” she disclosed. Leonor F. M. Lin projected 700 online procurement meetings will be the final number. She ended her speech by showing her gratitude to all the innovative contributions submitted by the companies in R&D and for keeping Taiwan an important part of the world. Chairman Larry T. W. Wei of TAMI was in awe by the meticulousness and brilliance of the products at the show. “We can clearly see the diligence and hard work all the companies went through in order to deliver the best product. The judges had a difficult time shortlisting the winners.” On another note, Chairman Habor Hsu of TMBA believes the TIMTOS x TMTS joint mega show acknowledges the contributions of Taiwan’s machine tool industry not just locally but the whole world. “The last two years have just been unprecedented. Any which way you look at it, the constraints that have been put on the broader society and the economy have been enormous because of the pandemic. But at the same time, the judges were quite stunned by the level of research and development activities all companies who joined shared, despite of all these constraints. And we have the digital technology and platforms to thank for.” The Supreme Excellence Award went to Yeong Chin Machinery Industries for its UV650-FlexCell Intelligent Multi-Axis Flexible Manufacturing Cell which provides excellent cutting performance and high accuracy for simultaneous 5axis applications with just one setup. Designed to reduce part handling, setup, and overall leadtime, while improving part quality, precision, and surface finish of complex shapes and contours required for multiple industries such as job shop, medical, aerospace, and die & mold. Ching Hung Machinery & Electric Industrial was the winner of the Grand Champion Award in the Machining Center and Manufacturing Cell category. The company impressed with its CHMER HM1080L high speed milling machine, designed with a full-moving column structure that will not be affected by workpiece weight. Therefore no machine adjustment will be needed for different workpiece weight during processing. Working hours for operators to calibrate the machine are then reduced and thus finished product accuracy is increased. Ching Hung Machinery & Electric Industrial also won the Grand Champion Award in the Other CNC Machine Tool and Manufacturing Cell category for the company’s PL6880 high precision linear drive laser cutting machine. Equipped with self-developed patent high thrust linear motor, PL6880 generates zero contact friction and backlash that would come from a ballscrew drive to affect working accuracy. The linear motor drive is a permanent guarantee for no backlash and common wear and therefore provides advantages like high accuracy, high efficiency, high stability and longevity, notes the manufacturer. In the Components for CNC Machine Tool and Other NC Machine Tools the Grand Champion Award went to HIWIN Technologies for its i4.0BS (intelligent 4.0 ballscrew) which can be used in machine tools and other industrial machinery, the semiconductor industry, automation, etc. The function of i4.0BS stabilizes the machining quality and saves 30% productivity losses, while the smart lubrication saves between 40% to 70% in oil consumption, claims the manufacturer. HIWIN i4.0BS supports IoT applications, allowing multiple users to monitor the status of the machine on a webpage through their mobile device. Moreover, it shows the priority of machines according to critical condition, thus helping the user to arrange the maintenance schedule. HIWIN i4.0BS is also designed to be ecofriendly – all of its parts are in compliance with RoHS. HIWIN i4.0BS won the international innovation award in 2018 and the Taiwan Excellence Silver Award in 2021. Intelligent Machining Technology Seminar Looking for the best solution to new tooling requirements can be an overwhelming task, including analyzing current tooling glitches. This year, TIMTOS x TMTS 2022 went a stage further and featured a Tool and Intelligent Machining Technology Seminar, sponsored by Taiwan Cutting-tool Engineering Association (TACEA). Manufacturing industries are continually overstretched by market demands to manufacture low-cost, high-quality products. Market demands tend to be multifaceted and full of variations, especially in fast-paced industrial settings. To cope with the expanding market demands, traditional manufacturing techniques are forced to develop and adapt advanced practices and methods. However, as developments in manufacturing technology rise, so does the prerequisite to im-

south-east european INDUSTRIAL MARKET 11 plement them in an effective and cost-saving manner. The outcome of this pressing need is a combination of traditional manufacturing tools and modern technologies, hardware, or software that transforms traditional manufacturing into intelligent manufacturing. Intelligent machining systems are complex systems in which optimization methodologies are combined with sensor-based control systems. Such intelligent and optimized systems can produce high-quality products at fast production rates and lower cost. Dr. Chiu Song-Mao of Metal Industries Research & Development Center (MIRDC) had been selected to offer valuable insights into the latest developments across multi-alloy coatings and cutting tools and to provide intuitive market intelligence to the people who attended the seminar and visited this year’s first co-branded machine tool mega show in Taiwan. Discussing the “Development of multi-alloy coating and cutting tools”, Dr. Chiu said, “Aside from pursuing better performance and price, the market is now asking for eco-friendly options. The production value of cutting tools is TWD 7,3 billion, while machine tools are at TWD 117,6 billion. The aerospace, PCB and IC industries are the major application industries for cuttings tools, and are also a contributor to Taiwan’s economic growth. Thanks to the financial support from the Ministry of Economic Affairs (MOEA), Dr. Chiu disclosed that they were able to gather experts from various industries, universities, and officials to form Team Taiwan. The team aims to form a platform to support interdisciplinary exchange and cross-industry alliance. According to Dr. Chiu, the biggest market for metal cutting tools at present is North America. But he sees a bright future for Asia Pacific in the next five years. He explained that the driving force comes from the automotive, aerospace, defense and 5G. Moreover, Dr. Chiu explained that physical vapor deposition (PVD) coating material is going to replace chemical vapor deposition (CVD), application of multi-alloy materials – one may observe these trends in the U.S., France, and Japan. Dr. Chiu hopes to align academia and industry to solve their problems in following these trends. The team will also help customize products for domestic companies to amplify their strength. Photos: TAITRA

south-east european INDUSTRIAL MARKET 12 The Republic of Albania is a coastal country in South East Europe, bordering Montenegro and Kosovo to the north, North Macedonia to the east, Greece to the south, and the Adriatic and Ionian Seas to the west. Its capital, Tirana, is the largest city and the political and economic centre of the country. The second largest city is the port city of Durres. The country is predominantly mountainous, with the more densely populated lowland coastal region spanning the western part of the country. Albania’s climate is typically Mediterranean with warm, dry summers and mild, wet winters. Average rainfall varies seasonally and across the country with about 95% of the annual precipitation occurring in the winter season, predominantly in the North Albanian Alps, while the southwestern part of the country commonly experiences droughts in the summer. AWorld Bank study, published in 2013, indicates that Albania is one of South East Europe’s most vulnerable countries to climate change. Changing weather patterns have already resulted in increased temperatures, decreased precipitation and more frequent extreme events such as floods and droughts. Albania has a population of approximately 2,9 million. Tirana’s population of around 896 000 has doubled in the past three decades and amounts to almost a third of the country’s population. Durres accommodates about 10% of the population. More than 98% of the population aged 15 years and older is literate according to the United Nations Educational, Scientific and Cultural Organization. In 2018, unemployment rates stood at just over 12% and were highest among young people (15 – 29 years; 23%). Albania has made significant economic progress during the past three decades, moving from a low-income economy to a middle-income country in Europe, with gross domestic product (GDP) per capita increasing from its lowest point of USD 200 in 1991 to USD 5268 in 2018, shows data from the World Bank and the Organisation for Economic Co-operation and Development. The real annual GDP growth rate in 2018 was 4,15%, one of the highest in the South East European region. According to UN data, the structure of the Albanian economy has remained relatively unchanged over the past decade, with the services sector dominating, contributing to over half (54,1%) of the country’s gross value added in Renewable energy opportunities in Albania 2019. The industrial and agricultural sectors contributed 21,7% and 24,2%, respectively, in the same year. Albania is a net importer of goods and services, although exports continue to rise and support economic growth. In 2018, Albania exported almost one-third (31,7%) of its GDP in goods and services, World Bank data shows. However, energy imports place a considerable weight on economic growth and the country’s trade deficit, specifically in the energy sector. A drought in 2017 exposed the electricity sector’s over-reliance on hydropower and resulted in electricity imports that cost the country USD 240 million and put public utilities in the power sector into severe financial difficulty. This expenditure reportedly forced the government to revise its budget to financially assist the imports and use emergency loans for power imports. According to a Renewables Readiness Assessment by the International Renewable Energy Agency (IRENA), strong and sustained economic growth is a main component of the country’s sustainable economic and social development agenda, and in nurturing this growth the energy sector plays an increasingly critical role. Establishing energy security, energy sector sustainability and an ensured energy supply at costcompetitive prices are some of the key challenges for the country to address in the near term. In comparison with neighbouring countries in the South East Europe region, Albania’s energy mix has one of the highest shares of renewable energy. Ensuring a cost-competitive, secure energy supply in Albania can be achieved by further increasing the renewable energy share and diversifying the country’s electricity sector. The diversification of the country’s electricity sector is critical, as the current system is almost entirely hydro-based and thus susceptible to climatic variations. In recent years, the Albanian government has taken commendable steps for the promotion of non-hydro renewable energy use. Energy sector profile Albania’s primary energy production is dominated by fossil fuels – mainly crude oil – whose share has ranged between 46% and 68% over the last five years. Hydropower is the second largest contributor, with a share ranging from 20% to almost 40%, depending on annual rainfall. This vulnerability to climatic externalities for electricity production creates notable fluctuations in domestic energy production. For example, for the last five-year period, the lowest primary energy production was recorded in 2017, which was a particularly drought-stricken year, whereas the highest primary energy production was recorded in 2015 – a year of considerable rainfall. Other domestic energy sources for primary energy production include biomass (including wastes, residues, non-food cellulosic material, and lignocellulosic material), lignite and natural gas. Because domestic energy production is not

south-east european INDUSTRIAL MARKET 13 able to meet demand, Albania is on average a net energy importer. In 2018, Albania’s total primary energy supply (TPES) amounted to 2131 kilotonnes of oil equivalent (ktoe). It remains predominantly fossil fuel based (68% composed of natural gas, oil and lignite), followed by electricity (24%), which is both produced from hydropower domestically and imported. Biomass and other energy sources (such as solar thermal) account for 8% of the TPES. IRENA data shows that Albania’s electricity demand grew rapidly in 1995 – 2000. This was due to demographic, economic and social trends, including rural-to-urban migration, increased use of electricity for space heating and cooling, and rising living standards. To meet the growing electricity demand, the country has increased its installed electric capacity over the past decade from 1455 megawatts (MW) in 2007 to 2204 MW in 2018. The majority of the installed capacity (1448 MW) is owned by the Albanian Power Corporation (KESH), while private producers account for about a third of the installed capacity (755 MW). As stated before, the Albanian power system is dominated by hydropower, representing 95% of the country’s installed capacity with a total of 2096 MW installed. The installed hydropower capacity comprises mainly large hydropower installations (i.e., above 10 MW in size) amounting to 1904 MW, while small hydropower installations amount to 192 MW. The Drin River in northern Albania is the largest river in the country. It hosts three of the largest hydropower stations owned by KESH: Fierze (500 MW), Komani (600 MW) and Vau I Dejes (250 MW), which are also referred to as the Drin River cascade. The country has a 98 MW fossil-fuel thermal power plant representing 4% of the total installed capacity that has not been put into use since its construction in 2011 due to a failure in its cooling system. In January 2019, the Ministry of Infrastructure and Energy (MIE) issued a tender for a public-private partnership (PPP) for a concession contract to revive the power plant, potentially converting it to a natural gas-fuelled plant to be supplied with gas from the planned Trans Adriatic Pipeline. The remaining 1% (10 MW) of installed capacity in 2018 comprised small-scale (i.e., each less than 2 MW) solar photovoltaic (PV) plants. Albania’s domestic electricity production has fluctuated in recent years due to the electricity sector’s over-reliance on hydropower and annual precipitation. Despite the steady capacity additions over the years, domestic electricity production during the drought of 2017 fell to 63% (4,5 terawatt hours [TWh]) of the previous year’s production (7,1 TWh). This forced the country to net import 39,2% of its electricity consumption in 2017 to meet demand. This signals the power sector’s extreme vulnerability to climatic changes and the urgent need to diversify away from hydropower to ensure energy supply security. The electricity system in Albania is also suffering from high losses. Although the country has taken measures to gradually reduce these losses over the past few years, they accounted for around 21,7% of the total electricity consumption in 2019. Comparison of the net monthly domestic electricity production in 2018 to the average values for the same months over the ten-year period from 2007 to 2017 shows that the difference between the months of lowest and highest electricity production, which in 2018 was three times the average difference of the ten years prior, is notable. This indicates increased seasonal variations of electricity production. Also notable is that, despite the additions in installed capacities, net domestic electricity production in October, November and December 2018 was below the ten-year average. This signals increasingly drier months of the last annual quarter and, despite additional hydropower capacities, an increasing inability to meet electricity demand in the second half of the year. When monthly electricity consumption profiles in 2018 are compared with the ten-year average, peak consumption months tend to be during the hottest and coldest months of the year due to electricity demand for space cooling and heating, respectively. In 2018, compared to the tenyear average, higher electricity demand is evident in the summer months, particularly in July and August, largely due space cooling. This is further compounded by the fact that electricity production decreases significantly from June onwards and is unable to meet domestic demand in the second half of the year. Thus, partially offsetting electricity demand for heating and cooling would allow for domestic production to better meet demand from June to December. Hydropower Hydropower dominates Albania’s electricity sector with 2096 MW of installed capacity at the end of 2018, representing 95% of total installed power generation capacity. The River Drin alone generates about 90% of Albania’s domestic electricity supply. Of the total installed hydro capacity, large hydro power plants (more than 10 MW) account for 1904 MW, while small hydro power plants (less than 10 MW) account for 192 MW. As of 2018, the total installed capacity of hydropower amounted to just under half (47%) of estimated hydro potential capacity. According to the National Agency of Natural Resources’ (AKBN) estimates, total hydro potential capacity is estimated at 4500 MW, with an estimated annual output potential of up to 18 TWh. However, climate change is already having an adverse effect on hydropower production, which is likely to continue in the future. By 2050, annual average electricity output from Albania’s large HPPs could decrease by about 15% and from small HPPs by around 20% compared to 2010 levels. IRENA’s 2020 study for the South East Europe region, Renewable energy prospects for Central and South-Eastern Europe energy connectivity (CESEC), estimates that in fulfilling an overall 48% renewable energy share of the gross final energy consumption, the total installed capacity of hydro by 2030 is targeted at 2150 MW. In other words, no further hydropower capacities are proposed by 2030 in addition to existing plans. However, by the end of 2018, a total of 185 concession contracts were signed for the construction of 525 small HPPs nationwide. Of these, 165 are in production, 316 are under construction and the rest are obtaining the necessary permits. By the end of 2020, 184 MW of hydropower capacity was added with the commissioning of the newly constructed Moglica HPP. This is the largest independent power producer plant in Albania.

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