Refractories

Insulation

Plant ServicesVolume 5, Issue 2

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BUSINESS CLIMATEOverall, the U.S. refractory businesshas been extremely vibrant since2000. What you may not realize isthat this spike in refractorydemand, fueled by lower interestrates and a rising GNP, follows adecade of consolidation. In thistime of consolidation, many largeand small producers of refractory

were combined and/or closeddown. This consolidation

phase was a result of a combinationof industrial downturns of the‘80’s and ‘90’s, plus the increasedefficiencies of end-users andrefractory products. In essence,higher quality refractory productsbegan to last longer in processesthat were run more efficiently,resulting in drastic overcapacity inproduction throughout the U.S.refractory industry. Since 2000, theremaining U.S. refractory companieshave begun to reach equilibriumwith demand, with most currentrefractory producers running atnear practical capacities in 2007.

RAW MATERIALSOver its long history, the U.S.refractory industry has overcomemany challenges. Today, the current

problem deals with raw materials.In essence, raw materials,

ranging from aluminas tocements to silicon carbide,

are both expensive anddifficult to acquire. Why?First of all, many refrac-tory raw materials arethe primary building

blocks for global productsthat make the suppliergreater margins than sellingto refractory producers.For example, 95% of

The Refractory Industry: On TargetThe refractory industry, with roots that reach centuries beyond theindustrial revolution, is still a dynamic business that focuses on bet-ter products and services for its customers. While the formal defini-tion of refractories has not changed (inorganic materials that resistdestructive conditions at high temperatures), modern opportunitiesand challenges have dramatically shaped the industry.

Newsletter

To all of our valuedcustomers,I want to take a moment to letyou know about some of the bigchanges that are coming toZampell this coming year thatwill help us really emphasize howvalued you are as customers.Since the company’s humblebeginnings, the people at Zampellhave always maintained anentrepreneurial spirit to doanything for our customers. Thismentality has been a continualsource of success since we startedin 1966, in addition to definingthe mission of our company.

To refocus our efforts on thecustomer with a single, consoli-dated approach, Zampell is goingto be undergoing a brandingchange and focusing itself oper-ationally around its customers.

President’sMessage…

– continued on page 4 – continued on page 3

The Refractory Industry: On TargetInside This Issue:Page 2 Zampell Adds Scaffolding

to List of Services

Page 2 Zampell Crew Rises tothe Challenge

Page 3 Zampell Craftsmanship…for Unique Customers

Page 4 2007 Supervisor Training

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Zampell Refractories is known forits work in the waste-to-energyindustry. Customers appreciate thequality, craftsmanship andprofessionalism thatwe bring to theirfacilities, andbecause ofthis, oppor-tunities toexpand ourservicesinto existingplants areoften presentedto Zampell. Wefind that if an addi-tional service fits withinour capabilities, we are happy tosupport the facility and expand ourpartnership.

Recently, in just such a case, Zampellwas offered the opportunity todesign, supply and erect system

scaffolding into a 350 TPD waste-to-energy furnace at CamdenCounty Resource Recovery.

Zampell worked with itsengineering staff

to develop adesign to suit

the cus-tomer’srequire-ments.Next, ourpersonnel

erectedthe custom

scaffolding,which extended

100 feet from the trav-eling grates to the furnace rooftop.

Zampell’s qualified and trained per-sonnel completed the project safelyand on time. We can now add thisscaffolding installation to our existingportfolio at this site, which already

includes our previous work involvingrefractory installation.

At the conclusion of this project,Zampell was pleased to hear thefacility manager comment,

When our customer contacted usrecently to design a louver coverat a power plant, our crew arrivedon-site ready to meet the highexpectations required for thisunique job. Zampell was called into address a problem with anexisting louver because it was notprotected against the driving rain.

There were several challengesassociated with this job, not theleast of which was the sheer heightof the louver, located 126 feet upthe outside of the building.

Because there were no drawings,the Zampell crew had to scale thisheight to take the measurementsneeded to fabricate a customlouver cover. Further adding to

the difficulty: the lift would shutdown at winds greater than 20miles per hour.

The Zampell crew overcame eachobstacle, designing and installinga custom louver cover in a two-dayperiod. The occasional rainstormis no longer an issue now that thelouver is adequately protected,allowing the power plant tocontinue operation under allweather conditions.

Zampell CrewRises to theChallenge

Zampell Adds Scaffolding to List of Services

“Zampell adding scaffolding tothe services they provide allowsmore flexibility during a tightlyscheduled outage, and allows usto safely work on multiple jobsin our furnaces without the safetyand reliability concerns or dis-ruptions involved with cable-suspended platforms. We haveexpanded the list of projectswhere Zampell builds scaffoldingfor us beyond refractory areas,and they have exceeded ourexpectations on every project.”

Zampell Adds Scaffolding to List of Services

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the world’s processed alumina isused in the production of aluminum.Alumina, processed from bauxite,is a critical refractory raw material,but refractory needs are of littlesignificance to worldwide aluminaprocessors. Secondly, China controlsthe world’s supply of alumina andother refractory necessities.Considering China’s own productionof aluminum, steel and other products,plus their supply to the Chineserefractory industry (there are over1000 refractory companies in China),the U.S. refractory producers arecurrently struggling with both highcosts and uneven supply.

PRODUCT IMPROVEMENTSFor most of history, brick-shapedrefractory were used to line high-wear furnaces due to theirdependability and integrity relativeto other options. However, recentdevelopments in special castables,gun mixes and ceramic fiber haveclosed the gap with improvementsin installation, dry-out, heat-up andoverall performance.

Pumping/ShotcretingSpecial low-moisture castables,sharing densities and properties veryclose to brick, are designed to bemixed and pumped with a specialrig, resulting in faster installationswith high quality linings. The samerig can shotcrete or spray thematerial, potentially offering a fasterinstallation that offers the customerexcellent properties with evenless downtime.

Advanced Low-CementGun MixesOver the last year, refractory sup-pliers have made great advances inlow-cement gun mixes, which areproducts that can be gunited withstandard gunning equipment.These products share propertiesthat are similar or better than castproducts and are installed 2 to 4times faster than casting.

Faster Curing/Faster Heat-upTechniquesUntil now, all water-containingcement-based refractories requireda 24-hour air cure prior to heat-up,thereby lengthening furnace down-time. Today, some suppliers offerlow-cement castables and gun mixesin a special formulation that onlyrequires air cures in the range of 4to 6 hours. Depending on the liningconfiguration, these linings can alsobe heated up much faster, therebyfurther reducing downtime andcutting operators’ costs.

Ceramic Fiber Gunning MixesWhen a low-conductivity back-upinstallation is required, the traditionalchoice has been mineral woolblock insulation or a low densitycastable or gun mix. Today, a ceramicfiber gunning product isavailable that offers in-placedensities of 20 to 25 pcfand an extremely fast andneat installation that forms amonolithic backup with veryefficient thermal properties.

CLOSING REMARKSIn summary, the refractoryindustry has been a workhorse forthe U.S. industrial base that hasbeen a key component to industrialimprovement through the evolutionof U.S. industry. This industry ispositioned to continue this servicewell into the future with a solidgroup of suppliers that emphasizegood business practices, technicalsupport, and innovative productsolutions.

– continued from page 1 – The Refractory Industry: On Target

ZampellCraftsmanship…for UniqueCustomers

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ZampellCraftsmanship…for UniqueCustomersCruise Ship IncineratorsWhen Zampell craftsmen walk ontoa cruise ship, they rarely bringtheir bathing suits and formalwear…most of the time, they bringtheir tools! Why? Because one ofZampell’s areas of expertise is therepair of on-board incinerators.

Current environmental regula-tions require ocean vessels likecruise ships to operate at least

one incineratorto eliminate oldpractices likedumping. Zampellcraftsmen,working bothat dry dock andat sea, repairthe incineratorlinings with

products such as low-cementcastables, gun mixes and high-tech plastics.

Pizza OvensMany pizza shops in New Englandpride themselves on having“wood-fired” pizza ovens that givethe food a special taste. Theseovens, utilizing gas and wood,require refractory linings that arevery different from any industrialfurnace. Luckily, Zampell crafts-men know good pizza and pizzaoven linings.

In addition to requiring FDA-approved hearth tile that contacts

the food, the ovens requirespecial installation techniques

ranging from expansionallowance to special

insulation.

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The change is already starting totake place at the end of 2007with a full change beginning in2008. The key changeis that ZampellRefractoriesand ZampellInsulationwill now existunder theconsolidatedbrand of“Zampell.” As a company, we feelthat this unified approachaddresses our mission of handlingour customers’ needs, whether it isrefractory, insulation, or one of themany plant services we provide. Itgives our company a consolidatedbrand around which we can rallyour efforts towards growing ourrelationships, expanding ourbusiness, and focusing more onyour needs.

By having one parent brand tothe company, we will be able toemphasize that we are all ultimately

one company, and whateverthe customer needs, we will

find a way to provideit. Regardless of thework we provide,whether it is refrac-tories, insulation, oranother service, webelieve that our service

will remain consistent as long as wekeep true to our core motto:

I wish you all the best for thecoming holiday season and for youto all have a great year in 2008.Thank you for your continuedpartnership with Zampell.

Sincerely,Jim Zampell

So the next time you enjoy a pizza,know that Zampell craftsmen helpedmake it happen!

School BoilersWhen Tom Zampell started ZampellRefractories in 1965, one of hisimportant customers was the BostonSchool District. At that time, all schoolshad a steam boiler to supply heatfor the classrooms. These boilers hadcomplicated refractorybrick linings that requireda craftsman’s touch.Today, many of these old

boilers still exist, and Zampellcraftsmen still do the work. However,to maximize thermal efficiency,today’s linings utilize a combinationof high-tech products and techniques.Since some of the brick are no longermade, Zampell makes its own specialshapes from high-tech castables tofit the current design.

So even after 40 years of work,Zampell craftsmen still like to go

to school!

– continued from page 1 – President’s Message

– continued from page 3 – Zampell Craftsmanship…for Unique Customers

“True CraftsmanshipEndures”

Refractories • Insulation • Plant Services

Zampell conducted its annualsupervisor training sessions inAugust and September. This year,three separate sessions were held atthe division offices in Massachusetts,Pennsylvania and Florida in orderto accommodate a smaller, morepersonalized setting.

Much time was spent training thesupervisors on the new shotcreterigs assigned to the divisions. Inaddition, small-group exerciseswere conducted on topics rangingfrom safety details to understandingZampell’s definition of accountabilityon the jobsite.

2007 SupervisorTraining

Mark Reed Honoredwith PIMA Award

Congratulations to Mark Reed whowas recently awarded the Gil BerubeAmbassador Award from PIMA(Paper Industry Management Assoc.).Mark received this award in recognitionof his continuing support of themembers of Northeast PIMA and for hisdemonstrated commitment to ensur-ing the success of this association.

“True Craftsmanship Endures”

Refractories • Insulation • Plant Services

Main Office:3 Stanley Tucker Drive

Newburyport, MA 01950 USA

Tel: 1-877-ZAMPELL

Email: moreinfo@zampell.com

Other Locations:

www.zampell.com

MassachusettsMaineVirginia

ConnecticutPennsylvaniaFlorida

2007 SupervisorTraining