Rich Reimels
is president of Babcock & Wilcox Canada Ltd., a wholly-owned subsidiary
of The Babcock & Wilcox Company (B&W). He is also responsible
for Babcock & Wilcox Volund, in Denmark. Prior to being named president
of B&W Canada in April 2002, Reimels was vice president of B&W
International Service, including international joint ventures. Previous
positions included acting general manager of Babcock & Wilcox Volund,
director of Project Services for the B&W Fossil Power Division, and
general manager of Allen-Sherman-Hoff, which is a division of B&W's
Diamond Power International, Inc. subsidiary. Reimels holds a bachelor's
degree from State University of New York Maritime College, and a master's
degree in mechanical engineering from the University of Houston. He is
a Registered Professional Engineer in the State of New York.
Babcock & Wilcox Canada
engineers, manufacturers, and services steam generation equipment for
the Canadian electric utility and industrial markets and the global nuclear
utility market.
Established in 1844, B&W
Canada has grown from a small foundry manufacturing industrial machinery
to a world leader in the design, manufacture, construction, and service
of steam generation products. As Canada's largest manufacturer of these
products, the company's portfolio includes a complete line of large fossil-fuel
and biomass-fired boilers, nuclear steam generation systems, plus associated
construction and after-market services. B&W Canada is able to tailor
its dedicated engineering, manufacturing, and construction capabilities,
and works with customers to deliver products and services according to
their needs.
W-G: What
are the key factors driving change in today's power generation marketplace?
RR: Today's marketplace is
much more aggressive and we have seen a noted increase in global competition.
With fewer power plants being built worldwide, suppliers are bidding for
more international contracts, resulting in more competition for each contract.
Also, as plants age, we see
an increase in the demand for maintenance and improvements. Plant owners
are looking for complete service packages. And our customers are looking
to increase the efficiency and lower production and operating costs of
the equipment they have. So, while we are seeing fewer contracts for OEM
equipment, there are more opportunities for service work.
Risk management has become
another key factor-customers are looking to reduce their exposure to risk.
As a result we have developed innovative contracting methodologies involving
risk/reward scenarios that create closer project teams that share risks
and rewards amongst all parties involved.
Safety concerns from accidents
and terrorist threats continue to play a key role in the industry. New
materials, tools, services, and processes that limit exposure for employees
continue to be developed. B&W Canada's service and training programs,
featuring extensive mock-ups and simulations, have been developed to help
address these concerns.
As spent fuel pools at nuclear
plants reach capacity, there will be renewed emphasis on the need to safely
store and transport radioactive waste, particularly as Yucca Mountain
develops. While B&W Canada's expertise with dry storage casks will
provide an important opportunity in this area, companies specializing
in transportation and security will also be monitoring these developments.
W-G: What
impact does the political focus on decreasing environmental emissions
have on the industry?
RR: The increasingly stringent
environmental regulations (Kyoto ratification in Canada, and the Clean
Air Act and "Clear Skies" Bill in the U.S.) have resulted in
new opportunities to work with our customers to develop solutions. B&W
Canada's recent $280-million (CDN) contract for New Brunswick Power's
Coleson Cove Power Plant is a good example of this. Coleson Cove will
be the second plant in North America to use Orimulsion(r) (a liquid fossil
fuel). It will feature the largest wet electrostatic precipitator in a
utility service application in North America, and a state-of-the-art combustion
system, utilizing B&W technology, to minimize NOx emissions. The need
to reduce emissions in both the U.S. and Canada will result in the continual
development of environmental technology and equipment.
There has also been a greater
public acceptance of nuclear power as an airborne emission-free power
source. This could result in more nuclear power plant proposals over the
next decade, which would be a significant boost for nuclear OEM suppliers.
W-G: How have
the changes in the marketplace affected B&W Canada?
RR: While economic
factors have led to downsizing, our diversification, experience, and innovations
mitigated the effect on our workforce. We recently diversified our nuclear
product lines, including our recent first shipment of eleven dry fuel
storage casks. In addition, our launch into supplying reactor vessel closure
heads has been very successful-we are the first company to supply replacement
heads for all types of Pressure Water Reactors (PWRs) in North America.
Having a global employee base
and highly skilled workforce presents significant advantages. We have
considerable international experience in fossil and nuclear power plants,
including every CANDU 6 plant, and in servicing every type of PWR. We
have a workforce with a high level of expertise staffing our world-class
manufacturing facilities. In fact, we nurture this by offering our employees
professional development opportunities and encourage them to train in
other areas to increase our flexibility and their career development.
We have earned our reputation
for top quality products and unmatched customer service because of our
employees. We encourage them to be innovative and forward thinking and
to offer suggestions in support of our goals to improve processes, quality,
and safety. For example, our Welding Training Centre, originally developed
to provide high-quality training for our own workforce, was simply a cost
of doing business. Then an employee suggested we look at it as a business
opportunity and open it to the public. The initiative has been very successful
and today the centre is a recognized private career college.
So, although global change
and uncertainty can be difficult for any organization, a dynamic company
with an international reputation, such as B&W Canada, can adapt.
W-G: How is
B&W Canada meeting the challenge of a more competitive marketplace?
RR: We have always taken it
for granted that our superior quality, technology, and experience would
speak for itself. However, in today's aggressive marketplace we need to
be much more proactive with our marketing programs and ensure that our
current and potential customers are fully aware of the breadth of services
and products we now offer. To this end, we have re-organized our marketing
and sales talent into a team that will identify and analyze new opportunities
and put together comprehensive, targetted marketing and sales strategies.
Becoming more competitive also
means looking at every process we do and analyzing whether we can perform
more effectively and efficiently. This is what our process improvement
program is all about. We are focusing on strategic process improvements
on several key issues. In addition, we have a permanent process improvement
team and we encourage the submission of ideas from our employees at every
level and department in the organization. Every idea is analyzed in a
formal program that ensures all suggestions are carefully considered.
In the past couple of years, we have been able to implement many initiatives
with very positive results.
W-G: How important
are ethics and accountability to success in the industry?
RR: The recent revelations
of wrongdoing and resulting failure of several companies and has certainly
demonstrated how vital ethics and accountability are to a company's success.
I believe that we must be completely
committed to operating in an ethical manner throughout the organization.
At B&W Canada and our parent organization, The Babcock &Wilcox
Company, we reflect this commitment in our strict ethics policies and
in annual ethics and compliance training.
In addition, we have embraced
a more open and accountable relationship with our customers-collaborating
with them to work through a project. The customer's project team and resident
inspectors are involved in all day-to-day issues and operations concerning
the project. We work side-by-side with them to strive for improvements
in all areas of quality, safety, schedule performance, and cost control.
In this respect, our commitment to being ethical and accountable has enabled
us to forge strong relations with our customers, which can only help us
succeed in the industry.
W-G: What
role do you think research and development programs have in the industry's
future?
RR: Power plant owners are
looking at longer life spans and improved efficiencies for their facilities.
This requires high quality, durable products, and modern technologies.
Innovative, customer-based
solutions will be critical to the success of R&D programs in the industry.
Our investment in Integran Technologies Inc., which resulted in the development
of the successful GBEST(r) and Electrosleeve(r) technologies, has proven
this true.
In addition, our in-house R&D
program is looking at new materials, new design methods, new manufacturing
methods/processes, better tools, and new products for existing and emerging
markets. This program has become more market driven, placing priority
on projects with a definite market need.
The political focus on emissions
regulations will also result in new R&D initiatives because an essential
component in controlling environmental emissions is the development and
implementation of new technologies.
I believe the key to success
and growth in today's marketplace is the willingness and ability to adapt
to, and embrace, change. At Babcock & Wilcox Canada, our positive
response to market change has enabled us to maintain our position as an
industry leader for over 150 years.
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